good tuesday morning welcome to "squawk alley." a busy morning as we see the dow at session highs up almost 190 tech stocks are rallying google delaying its decision to cut ties with huawei after the white house eases some trade restrictions for 90 days last week the u.s. blacklisted huawei from doing business here in america over national security concerns. the company's founder dismissing the importance of the temporary reprieve though saying that huawei has already made preparations for the u.s. ban. joining us today, early facebook and google investor roger mcnamee, he is joining us from san francisco. good to see you again. how likely is it that we can

turn the temperature down on this whole thing >> i mean carl, your guess is a good as mine the trade thing with china is nuts it has been good for both sides for decades. and the deal is not entirely fair to us, but on balance though, we've done really well from it. so china unwinding that deal in bits and pieces without a really good strategic plan has produced exactly the kind of horrible outcome we've seen for farmers and also for tech companies. and you know, i have no idea where this is going to go, but i find it deeply troubling and i think for investors, you know, the relief we're feeling today has to be tempered at least a little bit by the knowledge that this just keeps happening. >> roger, i'd love to get your take on the ft has a piece out today saying that the white house is miscalculating here

people can disagree if they want but they say that it will prod the chinese to address their own weaknesses and develop their own fully dependent supply chains and bifurcate the global technology universe. is that how the valley sees this right now? >> well, the problem in my mind is that we are the ones who should be doing sxabtsly that. if it is so important for us to be independent of china, and i can see the case that that would be true, then we have to develop our own supply chains. we have to actually radically increase the rate of investments, you know, in manufacturing, in -- you'd have to do this ways that work economically and at the moment, i don't see anybody even talking about that. i think that we are essentially dependent on china without a plan b and is given the current politics, that strategy in my mind is just asking for trouble. >> yeah, roger, i mean back in

2014, china created, what, the national guideline for development of the semiconductor industry it was at the time a $22 billion fund aka the big fund the country has been working towards creating a more self sustaining in-country supply chain, certainly this whole situation with huawei and zte last year really shines a light on the fact that there is still a long way to go but in terms of that situation, in terms of the fact that you do have forced technology transfer, i know there was a report out of europe a couple days ago looking at increased levels of that by companies there too. does the u.s. need to take a more multipronged approach to all of this? i think that you touched on it before, this idea that maybe we need to invest more in manufacturing, in research here. >> i want to be clear, morgan, i wish we could go back to the world where we trusted china i mean, again, they would come in and be industrial espionage and lots of things we didn't like, but on balance we were

getting a great deal now we're in a situation where for whatever reason there is conflict and from this conflict, we either need to have a strategy of going back and trying to fix the relationship or making ourselves independent. which requires a much higher level of investment. which on balance i think would be great for investors in the long run, but in the short run you'd be giving up some earnings because you'd have to make those investments. and i think that you would also see some increase in prices of products but you'd see a lot more independents, a lot more jobs. there would be a lot of benefits that came from it. but i don't see anybody talking that way >> it is interesting to hear you refer to the status quo with china as a great deal because i don't know a lot of executives that i've talked to who would really frame it that way i mean, it was liveable especially for big companies who had figured out exactly how much -- how many millions they were willing to give to fund china's own technology development. we felt like they could sort of hide enough of their ip to make it workable. but i mean a good deal

especially given how much china has been investing in both growing and protecting their own ip wasn't this headed for catastrophe anyway >> no, jon, i misspoke i was speaking relative to consumers. our entire consumer economy is based on this relationship with china. and we have done everything from a policy point of view to make sure consumers got the absolutely lowest prices and greatest variety of choice possible and that meant essentially leaning on our industrial companies to do things that are really bad for them in the long run. so your point is correct if you are a company, the deal with china has been terrible because they steal your intellectual property and don't give free access to their markets. all of that has been a disaster. but we've run our foreign policy around consumer needs entirely and in my mind the point you make is a really important one which is that we are now conducting a foreign policy that says we're not going to do that

anymore. but we haven't actually thought through all the implications what that means for consumers rkt, what it means for our industrial capacity in the united states. which at the moment, you know, can't replace what we get in china. >> and i was talking to a public company ceo the other day who said that his new line at investment conferences, his opening line is no exposure to china. and i wonder if entrepreneurs or ceos in the valley who by choice or not were never able to get into china are ghnow sort of stn their stuff. >> well, i mean i guess. i look at this and i think to myself, you know, if we do not have a functional relationship with china, there will be a period of time with less economic output because we can't replace it anywhere else and so what my hope is that we find a soft landing here and that everybody takes the time to pick the strategy that they want and implement it without a hard landing. but you know, i don't think that -- we're not running this

foreign policy at the moment in a way that gives you a lot of confidence that there is a whole plan for transitioning from a china consumer centric model to an independent, you know, industrial centric model >> roger, let's switch gears to tesla. obviously a big story today, shares down 10 of 11 days as morgan stanley cuts the worst case scenario down to $10 a share. it was at $97. the change driven by concerns around chinese demands for tesla products overall their target is still 230, they call it their bear case it is a lot about china demand and missing that forecast, it is about oversaturation in retail what is your take on it today? >> so karl i go ocarkarcarl, dor research analysts having worst case scenarios that is new ground for me. and i have to be honest, that headline obviously gets a

tremendous amount of attention and to me, the thing that makes it sad is that tesla's created this amazing brand i mean, you won't find a product out there with a happier customer base than tesla and yet we're having a conversation about a range of outcomes between 230 bucks a share and nine bucks a share >> bull case, yeah >> and what the hell is going on here this is like -- i look at tesla, again, it is an incredible brand with a ceo who for whatever reason is distracted and mostly focused on other things. and that is a tragedy. and shareholders deserve better than that. the customers of the product deserve better than that and what i'd really love to see is, you know, somebody who is really passionate about making tesla into a world class car company run that company every single day because that doesn't feel like what you got today and for the shareholder, that is -- >> so what happens if they run out of money, what is your kind

of worst case a thescenario does somebody snap them up >> well, wouldn't you? i mean i got to believe there is a lot of people who would love to own tesla the issue is the car companies -- i mean tesla still has a much better valuation than most other car companies, maybe any other car company. so i don't know how that goes down but what i do know, it is a car business and there is a lot of engineering that goes into making cars. it is not like a new thing that people don't understand. it is well traveled i don't understand and they should be able to do so much better in the manufacturing than they are doing right now. if there is a problem in china, i don't see how you fix that because they have really billions of dollars in business in china if they lose access to that market, you will have a hole and they need to have -- they need to have a plan b just like the local economy needs relative to china >> roger, this morgan stanley note, adam also cuffs spaovers n

he writes maybe you see some sort of partnership, strategic, industrial, either either wit c tesla, but maybe that is with spacex and not an auto manufacturer what do you think? >> you know something, weirder things have happened but i just look at this and i go why does silicon valley have to be operating in the lunatic fringe of management style whether it is twitter, facebook, you have all these people whose personal lives are interfering in the business. and i just find it tragic and sad. because these are obviously brilliant people and it is like they need a friend and maybe a pony. >> roger, thanks as we take a look at the board of directors at tesla. obviously a big day for the stock today as it is down 10 of 11 and still above the ipo price

of 17. roger, we'll see you soon. >> i would hope so that care. when we return, the day after a big dip for chips. the sector rebounding in a big way this morning after falling more than 4% on monday the smh etf is up 2% apple trying to avoid a three day losing streak of its own as well we'll discuss tech's china turnaround next. but first, jane wells, what is coming up at the bottom of the hour >> guys, reno 911. the drones have arrived. as the faa projects hundreds of thousands of drones in our air space in four years. nasa trying to figure out how to keep them from hitting each other and you. liveest om r tfreno later on "squawk on the street.

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you need decision tech. listen to your mom, knuckleheads. hand em over. hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning. is that everything? i can see who's online. i'm gonna sweep the sofa fort.

well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. semis the big movers today qualcomm, skyworks, micron all up around 2% to 3% apple also up. you see it there doing better this morning after a steep drop this morning. guys, christopher, first on the chips, how much of this is just up a bit because they were down a lot? does this 90 day reprieve for some companies really mean anything >> yeah, i think that the 90 day reprieve is just kind of

openings door to perhaps more negotiations in this area where otherwise as of the call last wednesday night, that door was really closed. so this is just a bit of a relief after what was a pretty bloody couple of days. >> and tom, apple probably the biggest stock with china exposure that lot of people understand and you acknowledge that there is china exposure, but you think the selling in apple is still overdone price target would be 30% up side from here why? >> so i think what investors are overlooking is apple's ability to mitigate china related risks. you think about on the tariff side, they were able to successfully lobby to have some of their products taken off the list for tariffs they could renegotiate new terms with their suppliers to get relief on the tariffs. and to the extent that either apple can move its assembly out of china longer term or have more products from suppliers

move their efforts out of china, i think that is another way to mitigate tariff risks. tim cook is essentially a diplomat and one thing he does so swell manage apple's relation with both the u.s. government and the china government and i think that that is a huge asset that investors are overlooking right now with apple. >> sdrun ahave you done any modg work on what it would take to move supply chain out, how much it would cost, how long it would take >> definitely a multiyear effort >> yeah, i would agree with that it would be very, very difficult. i mean, foxconn is enormous over there. we're talking campus after campus focused on this particular supply chain. so would it be very difficult. >> tom, i'll put the same question to you especially since i know last month foxconn said that it would make more investments in iphones in india for example. >> yeah, so i do think that this

is something that could happen, but i think that it would be more than a year and definitely not quarters but the question is what will be the ultimate outcome of the negotiations between the u.s. and china. well, the ultimate outcome, will it really be that all consumer technology products won't be made in china? i think what we'll ultimately see is a trade deal similar to the one that they almost moved forward with, china agreeing to buy more u.s. products and then the bigger get would be china too honor intellectual property to a greater extent. so i'm not of the belief that there will be no deal ultimately >> how much is this trade war already altering the market? i was surprised to see estimates that huawei stockpiled 12 to maybe 24 months worth of components to be able to continue production despite that i hadn't heard that talked about

in any earnings calls. couldn't that have huge implications in the amount of buying that will happen over the next year or two if they have that much inventory stockpiled >> yeah, we wrote about that when we came back from asia about a month and a half ago we heard up to two years stockpiling supply is. you know, even if this ban were to be lifted, the question is how much did they in fact buy ahead. and really they are brooiing ahead so that they can build their own chips these u.s. chips are really a bridge for them to ramp their own technologies >> and you could say that about all kinds of products that are complex to build airplanes, electric vehicles i mean how close are they do you think to having independent supply chains on chips >> i'm specifically talking about 5g bay stations and also hand set oig com pcomponents th really cutting enlgt right now for other applications like

defense, aerospace, radiation hardened chips, they are more difficult and might take more time but in terms of huawei and communications like they are there. >> tom, in terms of apple specifically, the other piece of this of course could be cooling consumer demand in china especially if you get any kind of a call for a boycott if this trade tension continues. how closely are you watching that and how big of a risk is that >> yeah, so china is a double-edged sword you have the supply chain elements that we've been talking about and then you have a company that generates about 20% of its sales to consumers in china. so i think that it is a big risk that you see the chinese consumer buying in a patriotic manner and not buying u.s. companies products so just something that we continue to monitor closely. the good news for ale up until recently though is that they have been able to get investors to focus more attention on their services business and that has been a really good story

but again, china remains the big risk for ale and it apple and monitoring it closely. >> and chris, button it up for us how do you assess the risk for the semi conduct tore space overall if this trade stuff continues to head south? how big is the risk, how much down side from here? >> yeah, and we wrote that note as soon as this came out last week it seems as there is at least a 10% impact for corvo on the down side from huawei and as we sum it up for the overall industry, we're probably talking at least $10 billion worst of u.s. semiconductors that will be affected here going into huawei. >> so sounds perhaps manageable, but not a negligible amount of money.

thanks cnbc's healthy returns conference is today. and just breaking this morning, google's health care making deals with some of those companies. meg tirrell is live in new york after a busy morning of her own. >> good morning, carl. that's right, alpha bets's life sciences company is announcing partnerships with four big phrma companies to try to modernize the political trial process, it all focuses around verily's baseline program where anybody can enroll who is over 18, you don't have to be sick. and it uses new data collection methods including sensors, mobile technology, self-reporting, electronic health records all putting it in the same place to get a better picture of patient health. so verily will be partnering on this new kind of partnership to focus on modernizing clinical trials and they will focus on a lot of different disease areas from scarred i don't vascular health to cancer, mental health,

determine toll dermatology and diabetes so expect to see a lot more things like this and a lot more coming up here today from healthy returns back over to you >> meg, a big day. a lot of headlines and cnbc's healthy returns conference continues all day, concludes tonight as meg will talk to alex gorsky. still to come, what happened to amazon's kohl's the stock is down today. fifth straight daily loss. winners and losers and a busy morning for retail next. and later, don't miss sean parker this afternoon on "closing bell. in the meantime the dow up 137 points take a look at the names leading

the index higher more straight ahead. is enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

europe set to close momentarily. and seema mody is joining us with the market action >> european markets finishing mostly higher but let's point your attention to the ftse 100 set to close at session lows right now. here is the story. theresa may unveiling her new brexit proposal today and the pound is jumping as may has proposed a vote on whether offe a second referendum. the currency market, the pound has been down 11 straight days against the euro that of course a big story to watch. you see popping up about a third of a percent let's turn our attention to broader markets. those chip stocks in europe breaking a three day losing streak after the u.s. granted a temporary reprieve to huawei suppliers.

keep in mind though in brussels, huawei executives are reportedly discussing the recent fallout and it is worth noting that europe is a key player in the broader u.s./china dispute currently huawei's faster growing market is europe and including the middle east and africa, the eu region generated 28% of huawei's revenue last year analysts say europeans have to now balance security concerns from washington and its investments already made in the company's 5g rollout now, let's switch to the economy. the oecd publishing its latest economic outlook saying any escalation in the u.s./china trade dispute would knock as much as 0.7% off of global ghchlt sdchlt p over the next two years. it is currently seeing output expanding just 3.2%, well below the pace in 2017 and 2018. and keep in mind they also estimate business investment to grow at just 1.75% this year

half the rate we saw in 2017 back to you. now sue herera has a news update >> good morning. here is what is happening at this hour. former white house counsel don mcgahn did not show up at a hearing of the house judiciary committee defying a subpoena president tru president trump directing him to nor the subpoena but jerry nadler threatening to go to court to force mcgahn to testify. >> our subpoenas are not mcgahn has a legal obligation to be here for this scheduled appearance if he does not immediately correct his mistake, this committee will have no choice but to enforce the subpoena against him. >> powerful storms ripping through the southern plain states leaving a wide path of destruction. some homes were completely flattened by the storm the string of storms brought

severe weather from texas to missouri no word yet on deaths or injuries and the airline industry's trade group is predicting another record for summer travel forecasting that 257 million people will fly on u.s. carriers between june 1 and august 31 that is about a 3.5% increase over last summer you are up-to-date that is the news update. back downtown to you guys. >> sue, thank you very much. when we come back, tesla hanging on to 200 this morning after the morgan stanley note. we'll talk more about the challenges facing the automaker. but first, delivery drones are here we'll get a live report and a test from the biggest little city in the world in a moment. what will we do now that servicenow put our workflows in the cloud? how about our jobs? [ mimics explosion ] [ mimics explosion ] our jobs. [ mimics explosion ] servicenow. works for you.

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leave the regulation to the faa qu4e7b it co achla when it s drones are allowed to do in the sky, nasa steps in and jane wells is live in reno, nevada with a live test and more on why delivery drones are already here >> reporter: they are doing something that has never been done before, flying separate commercial drones at won't inside a city beyond line of sight meaning the pilots will eventually not see them. but as we look at tlook at the u

have to figure this out. nasa determines the rules of what an aircraft can do, not the faa which does the regulation, nasa is testing out a new type of air traffic management system for drones specially created flight corridors above downtown >> we're testing out all the various technologies that really hasn't been tested out before. from obstacle avoidance, remote identification, and we're doing this under beyond visual line of sight conditions >> the goal is to have people and cargo, larger cargo, transported through these larger vehicles >> cleared for takeoff >> reporter: all right the faa r achla projects severad thousand in the air in four years. and goldman sachs says just the industry to manage these drones will be worth almost a billion dollars by 2025. google and amazon are working

with nasa. but there are challenges what happens when communications drop, what happens if you lose gps? what if it is windy? and also things like battery life and public acceptance a lot to figure out. >> jane, this is the coolest story. a lot of questions here. certainly we focused on the actual equipment itself, the vehicles being developed to make things like package deliveries in the future. but the actual infrastructure in terms of how those drones are working together, talking to each other potentially, how would air traffic management systems for drones be different than what we currently have for airplanes? >> reporter: it is fascinating and nasa is developing this out of aims. airplane, you have a human pilot talking to a human air traffic controller that controller gives the plane clearance. there will be so many more drones so the new system will be almost the opposite all the drones will put in a flight plan into the system and the system will be communicating with each other.

and basically rather than giving you clearance, will tell you where you can't be so instead of telling the drone where it can go, it will say you can do that, you just can't be here it is the opposite of planes >> these drones will have cameras on them. what about privacy, what are people saying about that >> reporter: it is an issue. the mayor of reno, reno has been very support difference of this, the drones eventually are -- the system is not supposed to allow you to cache, to keep the images, but we asked a couple people what they thought about it, and here's what they said. >> i live downtown at the montage. i can see them flying out like right there when i'm enjoying a glass of wine after work on my deck so that is a little bit weird. but i'm not worried about anything like that >> i mean if it is for the betterment of our community, i'm all for it, but the way things are being taken care of in today's -- i'm a little nervous. >> reporter: i got to tell you, i think that the biggest issue to figure out, battery life. these drones right here can go

for about half an hour if they are carrying a five pound pay load, which is what most amazon packages are, they will have to have extended battery life to do real deliveries in the future amazon drones by the way are a lot bigger >> and we know amazon has a big presence in reno how specific is reno as a trial market and how easy is this to be replicated in other cities around the world >> reporter: we will find out. reno is an faa test site they are very open to it they have got tall buildings here is city hall right next to where this is being tested you have the high wind going through these buildings which is a good replication of what can happen downtown. so in many ways this is the perfect place to test this out not too big, but enough variation for testing. >> jane, in terms of the money, the funding that this would take to roll this out on a national level, any estimates on that >> reporter: well, this program from nasa, which will continue

through july, is a five year, $80 million program. they then hand over their decisions to the faa which then comes up with regulations. but there is a lot of parties involved, private and public, these drones for example, we have one from utah state university, another one out of poland from a company called ilot all of this is costing reno money, which they say nevada is reimbursing them for so we're talking millions, tens ever million of millions right now. it could be larger but goldman sax believes the drone business generally could end up being $1 billion business.sax believes the drone business generally could end up being $1 billion business we'll see, but that is a big number. >> and we're getting all of our drone questions answered this morning. so how about another what did you do for a black box in a drone when inevitably things go wrong, they are so small, how are people going to understand what exactly went wrong and how to prevent it from happening again? >> reporter: this is so

interesting. there is a system that helps it -- in essence the black box for the drone. and the new traffic management system, it is almost like a peer to peer software that aims is working on for nasa where everyone know where everyone is at a particular time that is the plan that is why you need to do testing. >> jane wells, thank you so much for bringing us this story it is really fascinating to look at the infrastructure. guys, i wonder what will be first. autonomous trucks or package deliveries by drones and i bring this up because you have the two simple announcement that they are partnering with the u.s. postal service. so definitely new technologies, new ways to get your deliveries in the future and i wonder how long of it will take >> your guess is literally as good as mine >> coming down the road or

flying through the air let's turn to tesla. morgan stanley is taking their ba bear case down to $10. phil lebeau is watching that story. busy day >> it is a busy day. and there are increasingly questions about elon musk's stake in tesla as the stock continues to move lower. the reason we're asking this question is because when you look at the most recent report from tesla, filed within the last couple weeks, in terms of personal loans that have been extended to elon musk backed by his shares of tesla, it is almost $507 million. there are the three major loans from goldman, morgan stanley, bank of america in the most recent prospectus from tesla, they write about this in their risk disclosure saying mr. musk may be forced by one or more of the banking institutions to sell shares of tesla common stock under the terms of miss lohis l.

any such sales could cause the price of the common stock to decline. we should point out we've reached out to find out has there been a margin call, has elon musk been asked to sell some of this stock because he's had to pay some of these loans because they were sold on margin we have not heard back from tesla. also as you take a look at shares at 204 right now, everybody is talking about th f worst case it could go as low as $10 a share. >> elon musk talked about how bad 2018 was could 2019 be even worse >> sure. easily you've got a company that is burning cash right now you have a stock that is under extreme pressure relative to where it's been in the last three years. a lot of questions that need to be answered in terms of how do they make it through this year which many people call an air pocket in terms of demand for the model 3 into next year that is when they they're

receipt itticly should have the china plant up and running, sales should be improving in china which would help out with the model 3 demand those are some big questions out there. >> wow could the trade war kill tesla i guess is a question that some people have to start asking given that the investment that elon musk has been planning to make there and the pressures that are on tesla specifically because of that market >> huge wild card. there is no way of knowing for sure we do know that the china electric vehicle market, that will continue to grow. so if they get that plant up and running as planned later this year, and that is a big question in itself, if they can do that, then theoretically going into next year, they should be able to have the supply to meet that g demand over there. >> we'll see how much juice they got in those batteries thank you. still to come, a tie between coca-cola and net fliksflix stranger things have happened.

rick santelli, what are you watching >> i'm seeing 92 the 243 for tn year note. and we'll also talk about something really important, how much does it rlleay cost and is it worth it. it worth it. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪

i'm scott watchnepner will the trade war drive the markets lower or is goldie lox

likely to taker your money higher we'll discuss. plus a big warning from gary kaminsky, he is with us. and call of the day sends a retail name closer to a new high we'll discuss that and more coming up. let's get to the cme rick santelli has the santelli exchange >> good morning. thanks, jon. technicals in the treasury complex, many are pondering trying to figure out the next move something easy as presented itself they don't always work, but let's go to the white boards we know we love double bottoms and double tops and we all remember the double top around 3.25 thousand now we have a double bottom going. and of course it is on a closing basis. nothing as is sure e assured in when we were right about here, i are remember saying it is a top,

i'm not sure if it is the top and the same will go through here this is going to be a bottom how much of a bottom well, many times you go kind of mid point. so maybe in the 270 area might be possible. we're done with the white board now. let's talk about something else. let's talk about what is going on with negative global rate you know the "wall street journal" had a good story, many have been writing good stories as the amount of negative instruments in the globe which seemed to be moving lower over the last year or so is starting to move higher not only that, the ecb in particular not only is avoiding any type of removal of stimulus, they are actually making more of these loans again. so one could say not only is there no exit, we are actually going deeper down the rabbit hole and why does it matter because it could be a big positive for the u.s and i'm not saying that the kind of positive that will offset all the negatives with regard to global growth which is impacted by negative rates.

and we all know there is a contagion effect but think about it from a capital stand point. look at the tat the insurer, tht take risk because it affects their requirements with regard to what securities they can hold it creates zombie companies. because rates are so cheap, it creates projects that go nowhere. and think about safers they are still hoarding money. it wasn't supposed to occur, but yet it does. and finally commercial banks, they get charged to put money places the whole thing is crazy and it isn't going to be a positive for europe and japan, but i do think that it will be a mitigating factor as we go through what eventually will be the end of this expansion cycle i had ceo of stanley tools on this morning and what i found interesting is thathe sees it sort of like i see it. we can say a job costs 800,000 when we bring a small amount back on shore. but if it begins to be a trend,

it is a cost that will be moretized over a growing manufacturing base that wants to avoid diversify, all the issues of global trade and supply chains i remember energy in the last administration, it was a go nowhere. now look what has happened sometimes the first step looks expensive, but it leads to opportunity. carl, back to you. >> rick, thank you very much coming up after the break, airbnb, stripe, drop box, reddit, only some of the brand names to once be funded. we'll hear the ceo on the next big idea coming up and meantime take another look at the big earnings mover, it is kohl's it was down as much as 13% but leading a host of retail names lower. back after a break alright boys, time for bed.

listen to your mom, knuckleheads. hand em over. hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning.

is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. welcome back to "squawk alley. toronto's collision conference is under way with mediums like seth rogin, prime minister justin trudeau and more. deirdre joins us with the highlights >> reporter: you guys listed a few of their biggest investments before the break but i'll repeat them here. there's door dash, airbnb, dropbox, pager duty, which just went public so i sat down with

ceo michael siebl and asked him if companies are now waiting too long to go public in a system that is flush with private money. have a listen. >> i think that everyone has to make that decision for themselves i think there's been a lot of interest in this because people feel as though normal investors are not getting access to these companies. i just kind of question in this day and age when so much of the american population doesn't invest in stocks at all whether or not, like, these companies are actually impacting the, you know, everyday person, like the struggling american. i kind of think that that's a really somewhat of a false argument so i think this is -- the decision's up to the ceo and what's best -- if the government wants to make more companies do ipo, they should make the regulation more friendly >> now he also said that softbank's vision fund and some of the other very large funds out there are making it easier for these start-ups to stay private for longer, especially

when the ipo process can be, and these are his words, long, complicated, and intimidating. as for where the next wave of start-ups or the next big idea will come from, he called it government 2.0 he says that the next wave of start-ups are going to come from founders who are willing to address problems that the government has not, problems that the government has dealt with poorly, he says, in areas like education, healthcare, and financial services, and guys, i got to tell you, as he was sitting here, there was lots of people around this conference who have their own companies just waiting to pitch him. back to you. >> fixing government, that's a wide open space, deirdre thanks and for now, let's get to dom chu. >> we've got consumer discretionary stocks up fractionally on the day but one of the relatively underperforming groups today in the trade. several retail stocks in the worst performers kohl's down about 11%, off its

lows after it slashed its outlook for the rest of the year, on pace for its worst day since january of 2017, also seeing weakness in order nordstrom, down 1% or so home depot and tjx both off by about 0.5% or so as well despite the underperformance today, consumer discretionary still the third best performing sector this year so far and morgan, if you look at one etf, ticker xrt, it's up 0.75%, a more equal weighted etf, one to watch in this retail earnings week continues back to you. >> absolutely. thank you. dom chu back at hq nasdaq is up over 1% today as well, on pace to break a two-day win streak frank holland is there at the nasdaq with more >> good morning. you know, chip stocks and f.a.n.g. names making a big rebound today following the use from the u.s. commerce department that it would temporarily ease restrictions on huawei the smh index, the etf, having a

really good day, up more than 2% intel, nvidia, texas instruments also benefitting from that news from the u.s. commerce department and now to the f.a.n.g. names, google, in the positive today on news that it can continue to do business with huawei again, at least temporarily an updated software on huawei phones, good news all around but apple the best performer in the nasdaq 100 despite those calls for a boycott in china the phone maker seeing a boost, apparently, you know, kind of with that conflict of huawei seeing some benefit there, again, despite the bash lash overseas in the world's second largest economy. back over to you >> frank, thank you very much. watching the markets here. session high was about 195 on the dow, so we're offon that just a touch s&p up less than 20. back in less than 3 minutes. it's either the assurance of a 165-point certification proces. or it isn't. it's either testing an array of advanced safety systems. or it isn't.

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coke, which is funny to everybody over 35 or 40. as part of a promotional campaign for its latest season of "stranger things," season three drops on the fourth of july the show's creator said the tie-in came naturally for season three because it's in 1985, the same year new coke launched and then famously flopped. coke is one of about 75 companies netflix has partnered with to market the new season. no money changed hands here but each tie-up has its own revenue possibilities from product placement to a kind of retail sales, reminiscent of other pop culture moments coke has played part in, including its starring role in the series finale of mad men, guys. you remember that. new coke, they're going to sell it online. i want to taste it i bet it's not as bad as i remember >> i was only a toddler when new coke came out for its three-month stint but part of the big kerfuffle was that it

was involving a shift to corn syrup. coca-cola is experimenting here and also with other streaming companies like hulu. >> they should have just called it beyond sugar. it would have been huge. >> the gains would have been incredible let's watch out for nordstrom until after the bell tonight let's get to the judge carl, thanks, i'm scott wapner, the trade war versus goldman-sachs go goldilocks in a fight for your money. it's 12:00 noon, this is "the halftime report." >> announcer: which side of the equation will drive the market, the bears or the bulls, arguing everything is good enough for growth the halftime investment committee weighs in with outspoken gary kminskey joining the team he has a very serious warning for investors, but not everyone agrees get set for the debate of the day. plus