about the potential for a trade agreement between these two nations, it will not be something with theresa may since she's stepping down later this month. there is been a lot here about the common ground between these two nations. we'll hear more about that in a few moment "squawk on the street" is going to be picking up coverage right now. ♪ >> good tuesday morning, welcome to "squawk on the street," i am carl quintanilla with david faber and jim cramer the president and the prime minister of the u.k., theresa may are due to hold a joint conference we'll see what's on the docket whether it is trade or china or any advice he has for them on brexit >> yeah, there is a lot of people say could we do so much more business with britain that it may offset some of the things with brexit. i don't think so i think there is not a lot of

trade to do. i think the president is ref fren shl to the british. >> i think it is kind of interesting. >> he likes the queen. >> yeah, sure, why not >> tlahat's your deal? >> whatever rocks your boat? >> she's been in office, in that seat for a long time >> do you think if she's a ceo, it is time to change -- >> charles is in no hurry. >> well, i am glad that you summarized it. >> how about talking about antitrust of those companies >> nobody wants to talk about the queen with me this morning what's going to happen on facebook today >> it is number ten down have you no records? >> i have no records >> you will focus on the fact that facebook is pursued boo i the ftc. are you focused on the app store

that's maybe under attack? maybe it is time to look at the antitrust. i was taken awac back by what yu said they did not repatriate enough? >> this is america >> although they may be crazy, too. >> facebook is down. i feel more comfortable that facebook is down we are down 13 yesterday >> david, what can i do, david i just spoke with the people and apple is in good shape apple did not repatriate apple also, the app store, spotify, think of spotify --

>> you are pointing clearly in the political realm. >> oh, you think it is antitrust? >> you speak to experts in the area and you put a list of those most acceptable to antitrust charges, apple would not be at the top. >> you don't think the app store is a way to be able to shut down people by taking 30% don't you think the fact that apple got 2 million people working in china is a travesty when it come to the public >> um, no, i don't think any of those things >> guys as you are talking, we saw the president attending to this space where the press concerns will conference will be held. we saw sara huckabee sanders and john bolton and alistening wion of the state's dinner last night and miller >> they didn't get that call

it would have been more uniformed had they known if that was something they talked about but it was not in the script >> could we imagine anything could be market moving i am sure there will be something on mexico. >> maybe we'll get an answer on that >> how abowe expect there will common ground and an agreement by june 10th >> also, the senate is taking a stand that someone in the senate is really -- upset >> what are you referring to >> i was referring on a story how republicans and senators are not happy. >> about the mexican tariff. >> republicans are looking into ways to limit power. >> the republicans on ohio, on "squawk box," saying he agrees with china

>> he's in the u.k. with a lame duck bm. >> what a great opportunity to trash china? you know we come to an agreement that huawei is -- >> headlines over night suggests that may is not going to play that dpgame with him today. >> the president has not had a lot of -- advices. my friend, xi is his great friend if that's his great friend, what are the enemies like holy cow >> mexico was a friend we endure with mexico, everyone trumps the idea that american investments are going to go impeded. this is our chance that's becoming pretty hard. constellation and every time i think of where modelo can be

made, i get stuck on this mexican thing. >> i think you are focusing on avocado prices >> are you going to find enough? >> i am going to do apple and just sit there and take it i am moving. it would be great to know what they taste like. >> how much do they cost >> i have chipotle on tonight. >> i got a secret plan i am going to source from california >> i am making salad >> i am making guac with beyond avocado. >> there is the first lady any dispute with the u.s. should be solved through dialogue and pretty dubish statement. >> i thought that was a sign for hope did you see the stock that were

up yesterday they were industrials. >> moving beyond the incredible loss of market cap when you add up amazon and facebook and apple and google, what about the sass companies? what was the weakness there? >> was that a reflection on the consumer >> enterprise could be next. we have sales force tonight. if sales force blows a cornequa, do you think any of this matter? >> i have sales force on "mad money," i think the stakes are high prime minister theresa may and the president is making sheer way. it is quite a weekend for the president, his visit there and the tweets leading up to this visit. let's hear what they have to say, the president and the prime minister >> this week we commemorate the

extraordinary coverage and sacrifice of those who gave their lives for our liberty on d-day, 75 years ago. as leaders prepare to gather here, it is fitting that we begin a celebration with a special relationship between united kingdom and the united states and enduring partners and we stood side by side on that historic day and everyday since. for generations at the trans atlantic alliance, we share our democratic values and common interests and commitment to justice. it is not unity of purpose that we'll preserve the deep root of ties between your people for the next 75 years and beyond so i am very pleased to welcome the president of the united states of america on this state's visit to united kingdom.

for the past 2.5 years, the president and i have had the duty and privilege of being the latest guardians of this precious and profound rend friendship between our countries. as for our predecessors when we face threats, we have stood together and act together. when russia used a deadly nerve-agent on the streets, the president expelled 60 russian intelligence officers, the largest of the global response in syria, when innocent men and women were victims of the barbaric chemical attacks, britain and america carried out targeted strikes against the regime we have maintained our support for this crucial alliance. thanks in part to your clear message on burden sharing, do l

donald we have seen members pledge more than $100 billion. i am pleased to announce that nato will soon be able to call on the u.k., queen elizabeth's craft, fighter jet to help tackle around the world. today we discuss the new challenges for our security, values and way of life we share the same views of our objectives in meeting them like prime ministers before us and those that come after, we can differ sometimes on how to confront of the challenges we faced. i have always believed that cooperation and compromise are the bases of a strong alliance and now where it is more true than in a special relationship today we discussed again the importance of our two nations working together to address

iran's destabilizing activities in the region and ensure iran can't acquire a new nuclear weapon i said before the u.k. continue to stand on the nuclear deal it is clear that we want to reach the same goal. it is important that iran meets its obligations and we do everything to avoid escalation which is in no one's interests recognizing our nation is safer and prosper of the biggest challenges of our time, i set out our u.k. approach settling climate change and our continued support. we think of china, recognizing its significance and that we can't ignore actions of our shared interests as we deepen our cooperation on our security and including o our - every morning one million americans get up and go to work

for british companies in america, one million britains do the same for american companies here our trade relationship is worth 900 billion pounds a year. we are the largest investors with mutual investments as much as $1 trillion mr. president, you and i agreed the first time we met we should aim for an ambitious economy i am sure our economic relationship will only grow broader and deeper, building on the conversations we had and the ideas we heard from u.k. and u.s. businesses when we met them earlier today. tomorrow we'll sit down with our fellow leaders to reaffirm the enduring importance of the western alliance and the shared values as we look to the future in the years and in the generations

ahead, we'll continue to work together to preserve the alliance that's the bedrock of our share of prosperity and security, just like it was on the beach of normandy, 75 years ago. mr. president. >> well, thank you prime minister may, melania and i are honored to return to london as our nations commemorate the 75th anniversary of d-day and world war ii we want to thank her majesty, the queen, who i had a lovely dinner with last night, a fantastic presence and fantastic woman for graciously inviting us to this state's visit. it was very special. our thanks as well to the prime minister and mr. may for giving the first lady and me, as we

remember the heroes who laid down to rescue civilization. tens of thousands of warriors left ashore by the sea to begin the invasion of normandy and the liberation of europe it was a liberation like few people have seen before. among them were more than 130,000 american british brothers in armed, they secured our homeland and safe freedom for the world. tomorrow prime minister may and i will attend a commemoration ceremony ceremony more than 1.5 million americans excerpt v service members were stationed right here in england in advance of a landing that summer the bonds of friendship forged here and sealed in blood on

those hollowed beaches will endure forever our special relationship is grounded in common history values and custom and culture and language and laws. our people believe in freedom and independence as a sacred birthrights and worth defending at any cost. as the prime minister and i discussed in our meetings today and yesterday, the united states and the united kingdom shares many goals and priorities around the world. i want to thank the people of the united kingdom for their service and partnership and their campaign to defeat isis. as we announce a few months ago isis is territorial, syria and iraq have been obliterated, defeated the united kingdom is a key partner in nato, the prime minister and i agreed that our

nato allies must increase their defend spending, we have worked very hard on that end and we are current. some of them are not, we can't allow for that to happen, i appreciate what you have done in that regard. we expect a growing number of nations to meet the gdp requirement. all members of the alliance must fill full their obligations. they have no choice. they must fulfill their obligations. among the threats facing our nation is the development of nuclear weapons. the united state and king dounid kingdom -- in protecting our nations, we also know that the border security is national security today the prime minister and i

discussed our economic relationship, both countries are doing very well and participated in a roundtable with industry business leaders, i can say probably the biggest business leaders in the world our nations have more than $1 trillion invested in each others economics as the u.k. makes preparations to exit the european union, a phenomenal trade deal between the u.s. and the u.k., there is tremendous potential in that trade deal, i say probably two or three times of what we are doing right now, tremendous adventure. 75 years ago this thursday, courageous americans and british patriots set out from this

island towards history's most important battle they storm forward out of ships and airplanes, risking everything to defend our people and ensure the united states and britain would forever remain sovereign and remaining free following this press conference, prime minister may and mr. may and the first lady and my family and i will visit the legendary churchill war rooms, beneath the streets of london. i look forward to that in his famous speech, prime minister churchill urged his country men to defend the island of whatever the cost may be. as we mark this anniversary of d hd-day, we remember our defense does not begin in the battlefield but within the heart of every patriot today, let us renew our pledge

engrav engraved at the american cemetery in normandy and inscribe by eisenhower it has been a honor to work with you, you are a person that loves your country nearly. thank you for the invitation to memorialize our fallen heroes and your partnership in protecting the extraordinary alliance between the americans and the british people it is the greatest alliance the world has ever known thank you prime minister, thank you. >> thank you very much [ applause ]

>> thank you, now we are going to take two questions from the u.k. media and two questions from the american media. >> thank you, prime minister and president trump. for you president trump, have you hold talks with the current prime minister, the leader of her majesty have been addressing a protest rally, he says he's disappointed and he criticized your record on refugees, what do you have to say to him and is this man someone you can do a trade with to you prime minister, do you think dupont is a stone cold loser? >> you are talking about the mayor of london? >> i think he's not a good mayor

from what i understand he's done a poor job i don't think he should be criticizing a representative of the united states that can do so much good for the united kingdom. s he should be positive and not negative if you look at what he said, he hurts the people of this great country. i think you should actual he shs job and he can straighten out some of problems he has and some of the problems he caused. thank you. >> he wanted to meet with me and i told him no. i don't know jeremy corbin, never met him. he wanted to meet today or tomorrow, i decided i would not do that. i think he's from where i come from, some what of a negative

force. i think people should look to do things correctly as oppose to criticize, i don't like extra credit critics. as far as the protest, i have to tell you because i commented it on yesterday, we left the prime minister, the queen and the royal family, there were thousands of people on the streets cheering and everyon cog over today, there were thousands of people cheering i heard there were protests, where are the protests i don't see any protest, i did see a small protest. a lot of it is fake news you saw the people waving the american flag and your flag. it was tremendous spirit and love there was great love it was an alliance i didn't see the protest until a while ago and it was a small group of people put in for political news it was fake news, thank you.

>> i would say to both mayor london and jeremy corbin the discussions we have today is about the future of the most important relationship between the u.s. and the u.k as the president described it as the greatest alliance the world have seen. it is this deep special relationship and partnership ensures our safety and security and the safety and security of others around the world, too it is this relationship that helps ensure jobs employing people here in the u.k. and the united states. our prosperity and our future, that's a relationship we should cherish, it is a relationship we should build on, it is a relationship we should be prod ooproud of >> this is a very big and important license, people should act positively towards it because it means so much for both country it has been so good.

>> thank you, mr. president. what is your current view on brexit, britain leaving the european union if there is no agreement by october 31st. >> well, i don't like to take positions in things that i am not really -- i understand the issue very well, i really predicted what was going to happen some of you remember that prediction, it was a strong prediction made at a certain location on a development. i thought it was going to happen because of immigration than anything else. it happens for a lot of reason i would think it will happen and probably should happen this is a great, great country it wants its own identity, it wants to have its own borders and wants to run its own affairs. this is a very, very special place and i think it deserves a

special place. i thought maybe for that reason and others that reason it was going to happen i think it will happen and i believe the prime minister brought it to a good point where some thing will take place in the not too distance future. i think she's done a very good job. i believe it will be good for the country. yes. >> and from my point of view, i believe it is important for us to deliver brexit. we gave that choice to the british people parliament, overwhelmingly we should now deliver on that choice i continue to believe it is in the best interest of the u.k. to leave the european union with a deal the party and the mps have stopped us from delivering brexit this is an issue that's going to continue here. the important thing is we deliver brexit and we'll be able to do what we have been talking

about today and develop not just that free trade agreement but abroad partnership into the future >> mr. president, are you prepare to impose limits on intelligence sharing with britain if they do not put in place restrictions on huawei >> we'll have an agreement on huawei and everything else we have an incredible intelligence relationship and we'll be able to work out any differences. i think we are not going -- we did discuss it i see no limitations we never had limitations this is a truly great ally and partner and we'll have no problem with that, okay? >> francis do you agree with your ambassador -- you plan to stick around a bit until the trade

deal is done >> i think we'll have a great trade deal i think we'll have a great and comprehensive trade deal >> i can't hear him. >> i think everything with the trade deal is on a table when you are dealing with a trade, everything is on the table. you are a lot more than that everything will be on the table, absolutely >> but the point of making trade deals, of course, both sides negotiate and come to an agreement about what should or should not be in that that i rae deal your second question, nice try, no, look, i am a woman of my word mr. president -- >> john? >> mr. president, thank you. mr. president, domestically in

recent days, mexico has stepped up apprehensions and deportations of central american migrant migrants this could be in response to your threat of tariffs have mexico done enough to avoid tariffs which will be imposed to some six days from now >> no, we have not started yet >> the threat is out there >> this will take effect next week, 5% >> what do you think republicans who say they may take actions in blocking this. >> i don't think they'll do that if they do, it is foolish, there is nothing more important than borders. i had tremendous republican support. i have a 94% approval rating as of this morning in the republican party, that's an all time record, can you believe that i love records we have a 94% approval record. i want to see security and great

trade and a lot of great things that's happening and that's happening. as you know mexico call, they want to meet and they'll meet on wednesday. secretary pompeo will be at the meeting along with a few others that are very good at this we are going to see what we can do i think it is more likely that the tariffs go on and we'll probably be talking during the time that the tariffs are on and going to be paid if they don't step up and giver us security for our nation, look, millions of people are flowing through mexico millions and millions of people are coming right through mexico. it is a 2,000 mile journey they're coming up to our border. our border patrol which is incredible, they're apprehending them but our laws have bad because democrats don't want to pass laws that could be passed in 15 minutes or passed quickly. in one day it could changed. beyond the laws, mexico should not allow millions of people to travel into our country and they

can stop it quicklimey. i think they'll will if they won't, we'll put tariffs on every month it will go from 5% to 10%, 15% and 20%. what will happen is all of those companies have left our country and gone to mexico are going to come back to us. that's okay. i think mexico will step up and do what they should have been done i don't want to hear that mexico is run by the cartels and drug lords oroz coyotes a lot of people are saying that. i don't want to hear they are run by the cartels you understand, you report on it a lot of times a lot of people do that'll be a terrible thing. mexico should step up and stop this onslaught of this investigatiinvasion into our country >> prime minister may, you tried three times to get a deal on brexit at this point, do you believe a

deal on brexit is possible or s or -- president trump says you did not take his advice in terms of negotiation, should you have and would that make a difference >> president trump, you had a conversation with boris johnson, could we ask what you spoke about and will you meet with michael today? >> i still believe i personally believe that it is in the best interest of the u.k. to levave the european union with a deal i believe there is a good deal on the table obviously it will be filled whoever succeed to take this forward, delivering on brexit for the british people i seem to remember the president suggested that i sue the european union which we did not do we mentioned the negotiation and we came out a good deal. >> i would have sued and settle maybe, you never know.

she's probably a better negotiator than i am that deal is teed up i think they have to do something and perhaps you won't be given the credit that you deserve. i think you deserve a lot of credit, i really do. i think you deserve a lot of credit >> yes, john i liked him for a long time. i think he can do a good job i no jeremy can do a very good job. i don't know michael, but will he do a good job thank you very much everybody.

>> that's the president and prime minister may four major headlines out of the first conference the president believes brexit will happen and should happen. huawei does not see limits on intelligence sharing that they have talked about a deal on huawei third is is they expect to have a post brexit grade agreement with the u.k. and right there on mexico relatively hard line on mexico >> much harder >> much harder, basically dismissing the entire story that there are some rebellion in the republican party i think it is more cry that nato and everyone got to pay their fair share and germany does 1.25 the president expressed 2017, this is unacceptable it sounds like we can put tariffs on german cars >> that'll be a third country.

>> how else can you compel that? you can't compel the mexicans? >> if tariffs are going to be used in a nato dispute >> why would he mention that that everyone got to pay their fair share the president thinks 1%. >> if that happens, that'll be nuts you know it would. it would paralyze business people they would not know what's coming next. >> then we have trades that we moved to mexico. how is he wanting jeremy germana fair share of nato is he going to say italked to germany and looks like it is

going our way? >> moving in the right direction. >> president trump is trying to compel them and compel them and what have they done? they have done nothing is it not time to teach them a lesson, david? >> you are now speaking the way that you believe trump thinks. >> well, it is no the way i think. germans make a lot of cars here. >> their two big plants in mexico >> that was part of nafta. i should say the usmca which soon to go to congress and headed to the mexican parliament and any of the news that came out from this great press conference, the comments about mexico or the most market relatable without a doubt. that's what investors are partially focused on you saw the future gives up a

little bit interesting to note the big story from yesterday and today, facebook is down again apple, google and amazon all up after that enormous cap yesterday. >> yes >> look, i think while there is a hard line expressed, the stuff you always follow when it comes to mexico is constellation brand. they are very impacted and the stock is up today. when it comes to what i said about nato, i don't know what to say, david, how do you compare the germans s >> you got me thinking that trump is focused on apple and he's upset with them they're going to focus on other area to hurt them, i guess is what you kind of said? that's telling me that nato is going to go after germans with tariffs on their cars. if i didn't know you talked to

people i would think you are like -- >> the president believes that tariffs are something that the american people really liked his popularity in his eyes are soaring? how do i know that i follow his twitter feed? why not put a tariff on germany and teach them a lesson. >> yeah, the story that everybody wants to discuss is amazon and alphabet and apple which is seen at the bottom of the list i remember terms of susceptibility and facebook is down what do you do with these stocks >> i think you ride it out these are companies that are very inexpensive they are companies that -- if you look at alphabet let's say you use a microsoft

mobile then it does go down 250 points netflix, the president does not seem to hate netflix yet >> apple i told you, no one believ believes that. amazon, a year ago the president attacked amazon, the deal with the post office. facebook is not just a president, the house has spoken. there has to be a first class investigation of facebook which we thought had already been done >> potentially another investigation. >> any time you use the word "beyond," you got to be careful. >> it is beyond meat >> that's the farce of this market i think facebook is duo attacked, i don't know -- are you kidding me >> i will tell you one thin

thing -- the biggest gainer on s&p including matel and pbh and mylan, too >> pbh is china and matel was booted from the s&p? it is not that easy because of the sourcing issue facebook is incredible to eliminate. it was down so much yesterday. >> it really was here it is again, there is no level that people want to own facebook i think that's a mistake instagram is doing very well >> yeah, people are trying to understand okay, investigation and i mean this will go on for years conceivably. what are they doing? microsoft started in '98 and did

not finished until '01 hey, the president is being fantastic to the queen he said fantastic. i never heard the queen -- >> fantastic what? >> i like it when people talk about the platform >> buys out of deutsche and targets in the 50 or 58 range. >> all the excitement and the hoopla a lot of it is they can extend that platform beyond being a cab company. uber freight, that can be a remarkable company >> they are getting a lot of attention because they are early in their destination in the ride business >> you can't leave these stocks.

if you leave it here, i think they have 5% down. the justice department does not have a great case. although i do think that when you think about apple and you think of spotify, remember spotify is suing them in europe because they want 30%? no one says you have to go to apple. no one says you have to go to google >> that's hideous. there is a long line to get to the top of that. >> concerns of overall demand for the iphone >> i lean look mean whchina, yo service industry, that's under attack that it is great new hope after the phone cycle -- >> it is very cheap stock. i think it is downside i think the idea that this company written off because of china is a mistake i know that the president wishes

that tim cookpro pro-chi pro-china. >> apple is not going to move their production of iphones to the united states. that fantastic team is no worried about the team fantastic display, amazing fantastic. >> the developers' conference? >> yes did you see the new watch? >> i don't have the old watch. maybe i will take yours when you are getting your new one oh, you don't even have one. >> i bought the new one, this got very hot and died. i had to get a new one, i just bought it. >> it got hot. well, that's all right >> i will ditch this one in a nano second.

>> i mean look at this thing what the hell is this? it is probably a knock off >> does it give you a heart rate or call your wife? >> it does not give you jack i got the new apple watch and i have to set it up. justice can't stop that. >> no, they can't. >> these cases years in the making of enormous legal teams on the other side of the richest companies in the country >> david, germany is so in trouble with this country in terms of tariffs 1.25% data you know that's not acceptable for the president. >> you really believe that would be -- that would be a bad day for the market >> you know what, david? >> yes, sir. >> i woke up and i heard of the mexican tariffs doing some business in mexico like millions of companies i thought it was surprising, the

step up. june 10th is a big day it didn't sound like june 10th is going to go that way. the queen is fantastic we did have our best day since april 1st. the market came off of those opening highs. you are looking at the best day since may 3rd of the s&p >> yeah, there were a lot of company's stocks that were slaughtered and not faang. there is a lot of companies that i think could benefit something positive in china. anything positive in china i see the sass stocks are downright now. ahead of sales force and mark benioff and key loft had their

words cut-off for them tonight i have mark benioff tonight. >> oh, you do? >> i am not sure he likes you. >> i am not sure he knows my name >> say my name, say my name. he thinks you are fantastic. >> look at that lineup hack hartung is at the center of avocado. >> what was "chernobyl i"? >> it was on hbo >> they have to pay the price.

just because the u.s. looked good in "chernobyl." germany t germany tariffs. >> it is on the record, jim. i am going to look very smart. >> he ends up being right. >> if a nobel prize comes a long too, it will be a double let's get to bob pisani. >> over sold sectors of the ones that is are moving nicely and s&p future here, 7:15. trade disputes should be reso e resolved with talks. does it sound enlightening to you? you can see we are still essentially up right now on the day. the important thing, i think here is all the usual trade suspects moving to the upside so you look at your semiconductors and your micron and everything

else sort of jump on that. that's the obvious one elsewhere sectors, you will notice the stocks, sectors have been the most over sold. transport has been terrible this month. semiand semis and retails are awful this month. china's stocks are not bouncing at all we'll look more into that. where are we right now as i mention market conditions? dramatically over sold in several transports semiss are ve se se semis are very over sole we got expectations of rate cuts you can see the concerns of slower growth in the market. look at the transports look at the bigist logistic.

this is terrible this is a concern of global growth reflected in the u.s. stock mark another one is tiffany, tiffany is trading down -- it is up right now. they generally gave a slightly slower outlook for the new year. they did talk about what was going on in america. the comparable store sales were down 4% in the united states there is the china trade cited chinese buying less products and coming to the united states. there is america at 4% asia/pacific was flat and japan was flat tourists from china should be careful coming to the united states, they talked about high crimes there you see the whole effort of the back and forth starting to impact u.s. stock market here and clearly definitely impact g impacting tiffany.

tiffany has a 2.6% dividend yield, these retailers have been trying to talk to people about being a dividend play that's kind of a bit of a stretch if you take a look at some of the dividends on some of these big companies, macy's and kohl's and l brand and gap, 5% or 6%. we'll see if it sticks along with that. a lot of it is the price we have been seeing. >> carl, back to you >> bob pisani, let's get to rick santelli at the cme group in chicago. good morning, rick >> good morning carl, if you look at yield on the curve, it is like yesterday didn't exists. we are sitting on the level, we settled that on friday the 30-year bond, we settled at 256 on friday or 258. we are up eight bases points as you see on the two-year note

the three-day out does not include the drop that occurs but what we have seen is something important. you see on the right side? today's interday yesterday's that's quite important if you look at a three day of ten's it's a very similar notion today's intraday high, nothing is set in stone, if you're going to challenge that drop, if we're going to take a footing and make a stand here, that is a small way it's going to work if you look at what's going on in boons, the three-day in bunds, we talk about the epidem equities, i have been using the treasury, on the year to date chart it's coming down just a bit. we want to be cognizant of that. interest rates do incite

volatility and the dollar versus the mexican peso let's go to the source of where the friction has been. it's elevated levels off the best levels in november but it is moving a bit down, meaning the dollar i think dendex a bit >> thank you obviously nice open here dow is up 211. as we said, session high at the open was up 284. s&p back to 27.64. we're back in a minute

time for trading he used the cvs ceo, and he said when they do this analyst meeting he's going to have positive things to say take a look at that stock. this is the possibility they can accelerate growth. remember, they're going to have a little story, etna and retail, so larry looks like he's true to his word >> i'm reminded that target set

a 2019 high this morning. >> target had a great quarter and they're the winner because they had such gigantic growth in ecommerce. they have been, you know, brian cornell figured itout rather amazingly, and i think that's still the one that can go higher because he figured it out. >> breaking news from the fed, steve? >> never mind. >> fed chair speaking at the chicago fed conference on looking at strategies for the fed, talks about trades that the fed does not know when the trade issues will be resolved. says he's closely monitoring the implications of trade issues for the economic outlook and the fed will act quote as appropriate to sustain the economic expansion no hint how he will act in that regard declined 2 to 3 percentage points it is much more likely results

will fall to 0 in a downturn and could risk market excesses he said the fed takes seriousl the risk of an inflation shortfall and the last thing inflation shortfall could lower inflation expectations that's about it from this speech here, guys we talked to evans earlier who was concerned about the downdraft and inflation, and they're talking about the tools, the strategies and the communications for the next time the federal reserve hits the zero lower bound, carl >> stooeeve, thank you for that. the notion that rates would go to 0 in a downturn is exactly what dominican republthey said . >> obviously then they would be able to make some money here on the yield curve. you have to be careful, they can't make money on deposits it's being viewed as positive and it's a nice offset from what we're hearing from the president

which is pretty saber rattling, i think retail can rally around this you have to say that housing can come back. apple moving nicely. people starting to reflect on what's going on with the -- facebook, boy, it's going to take more than jerome to fix facebook. >> they're basically saying, listen, we're not going to let this economy go down the drain very important story that's very positive, a nice offset to mexico. >> concerns about retail certainly from the earnings we've gotten, not target and other names but the gap and we can go on and on, have concerned those, or wondering whether it's an early sign of a weaker consumer, and that's morgan stanley talking about it. >> we'll know friday we have an employment number on friday. >> and i think that's going to put a code on all of this talk >> what do you mean by that? >> well, i mean, like if the number's weak, holy cow.

>> we have seen some researchers now say that at least the auto component of employment is starting to manifest itself in mfp. >> auto is tough i would like to see the semiconductors come back i thought the cypress deal was fantastic, nobody cared. it was a european stock. shows you how under valued, nxpi might be to european buyers. >> jim, tonight, chipotle. >> chipotle which we're going to have to talk mexico. look at that come back immersion, they make the spray for when you have opiate and narcan marc benioff, we need a blow ou number it's possible, but, i mean, you put the pressure on any one company, i know that seems wrong but there we go. what a show we did, even within the confines -- >> you shared a couple of very

interesti interesting thoughts this morning, i would assume it will be a reoccurring theme on "squawk on the street. punishing apple and punishing the germans. >> how do you compel the germans, the model 3 is being made in mexico, and the mercedes, beautiful plants, by the way, fantastic plants. >> fantastic >> do you believe that tariffs are now the go-to tool because our diplomatic game is so weak >> no, because the polls go up >> the polls go up we're not seeing that. >> i know. i saw it on twitter in the president's tweet. >> he has a 94% approval rating, he says, the highest of all time since they began recording. >> he tweets -- he tweeted that the tariffs have been very positive and the base loves tariffs, apparently. >> i'll tell you what, the key question remains given their power and their size, what is

going to happen to the likes of facebook, alphabet, amazon and even apple in terms of these separate investigations that have been undertaken both by the ftc and doj, they will be a long time and coming but facebook shares down 1.4% this morning? alphabet has to say i really like the attorney general and i'm very happy as opposed to steve ballmer who had some really nasty things to say >> let's get factory orders with rick santelli. >> factory orders for the month of april are out it's not a good number it's less negative we were anticipating down 1% close, down 8/10 of a percent. if you take out transportation, though, this is optimistic, we all know the issues going on in the aircraft industry. up 3/10 but we also lost 5/10, from 8/10 our last goollook

we take the half month and we to see it out and that half month was minus 2.1, and guess what it is, it's still minus 2 at any ti.1, that. you remove transportation, unchanged, capital goods orders, down 1%, and of course that is a disappointment and if we look at shipments versus orders, that are unchanged, and i guess on the durable goods orders, it really is depressing if you look at the entire year thus far, our best month was 1.4 right out of the gate in january. it's been soft now it's moving negative carl back to you. >> thank you very much good tuesday morning, welcome back to "squawk on the street," i'm carl cquintanilla at the new york stock exchange. watching the market closely. best someday for stocks in a month, we got headlines from evans, president president, from powell, watching china, mexico,

too. >> starting with a quote, greatest alliance the world has ever known president trump and outgoing british prime minister theresa may speaking this morning, day two of trump's state visit, talking trade, huawei and brexit, we'll take you live to london. china calm, china officials say the trade dispute should be resolved with talks. and technology's big regulation risk, facebook. alphabet, even netflix now in bear market although netflix having a very good day this morning. all of this amidst increased fears of scrutiny. the president spoke a few moments ago, alongside theresa may as protesters are taking to the streets of london. wi v will willem marx is live >> reporter: in terms of what they talked about in this press

conference, brexit was one of the top items on the agenda. britain deserves to have a special place in the global economy, something theresa may no doubt happy to hear as she gets ready to leave her role as conservative party leader and prime minister he weighed against domestic politics saying he liked a new boris johnson, the front runner for replacement of theresa may he knew some of the other candidates but not all of them in terms of trade, interesting, saying the uk deserves a strong and favorable trade deal with the uk but reiterated what his ambassador said, all things will be on the table including britain's hallowed national health service theresa may excited about the idea she will be able to avoid press conferences in the future. she took very few questions. three days until she steps down as conservative leader. >> willem, what is the latest on

huawei are the uk and u.s. at odds over whether to allow the chinese company to work on 5g and to be doing business in their countries. >> reporter: what uk have said recently is they would allow noncore participation from huawei the president was asked about that just a few minutes ago, and what he said was that he expected there would be an agreement between the u.s. and the uk on huawei no more detail on that the implication is the uk would accede to u.s. demands to avoid the equipment maker. we'll have to see whether those promises, vague words translate into action. let's stay with the markets, stocks are higher this morning after chinese officials did point to a possible resolution to ongoing trade talks the outlook remains uncertain. within is brian belsky, and

bruce bittles, brian, what is today, an oversold bounce or is there some real hope >> i think it's an oversold bounce the markets are in, it's impossible to manage money when he a terrible month in may because we run portfolios that are more concentrated, 35 to 40 stocks, we have big positions in finance. obviously we had a terrible month of may i don't manage money, nor do i manage a strategy project. we think we're in a bull market. we know the market is up 9.5%. earnings came in way better than everybody thought. in fact, on march 31st earnings for the first quarter were supposed to be done 4.4%. we had seven companies left in the s&p sfo500. >> you're citing backwards

stuff, earnings that are coming in >> how is that different than people talking about tariffs where you don't know exactly three months down the line what's going to be we continue to focus on factory orders and ma cro stuff. i think the whole notion with respect to an earnings recession, is completely bunk, it's not correct, and people are fearful. all we have to fear is fear itself and we are running this market on fear and not fundamentals. >> we have fear to fear and head winds on trade and negative earnings to worry about too. >> here's the deal f you're trying to manage a portfolio based on a tweet over the weekend, which within the next 24 to 48 hours, all of this mexico stuff could be gone, you are doing yourself a great disservice and more importantly, you're doing your clients a disservice with respect to the tariffs, a tariff tantrum, you think about the timing all this is

happening, it's funny how it's happening during the slowest market period. once we get the tariff situation resolved, in terms of calendar performance. may is always the worst. we think we're going to have a bang up performance on the market later in the year. >> he didn't want to play in the exact environment you're describing, you can't do that, right? >> no, because i'm an equity investor what value am i adding by adding bonds here i simply cannot believe that if rates go to 0, we're all in trouble and i think that's way too much of a binary effect. we think the u.s. economy is in good shape, the u.s. market will continue to be a home for asset sg >> bruce, what's your feeling on the market are you as optimistic as brian >> for the second part of the year the first part, we had a strong rally in the stock market that

likely overshot the fundamentals now we have the same thing going on in the bond mark. we don't think the economy is as weak as the 2% ten-year treasury note would suggest with the trade talks continuing, it's really a question of a confidence, and as long as consumer confidence remains high like it is right now, ipg there's no problem the economy will continue to grow, maybe around 2%, 2 1/4% for the rest of the year, but the market would like you to continue to experience large bouts of volatility until the trade talks are resolved and that kind of fits where our outlook, we had in the beginning of the year, that the market would do well in the first quarter, have a pull back in the second quarter, a testing phase, if you will and then by the time it got to the 4th quarter, i think the markets would begin to start back up and that rally could continue into the middle of

2020 >> there's a new head wind and that is the market leaders are all being investigated by the government around antitrust and anticompetitive behavior i mean, does that represent a challenge for the overall market because they have taken us up through the last few years. >> sorry, bruce. i think there's a challenge quite frankly, sarah to people that are shortsighted, that are crowding into these stocks if you take a look at the stock market performance since the day after christmas to mid february, early march, the market was broadening out and once the momentum train turned on, ran right back in. facebook has other issues with respect to fundamental, google and all of this, netflix, apple, making more invoice right now. we think that those names from a longer term perspective are okay >> buying these on the dips because you're talking about apple with a cash balance sheet. i don't care where the cash is, that has more cash on its balance sheet than certain

states in our country. follow the cash, follow the consistent earnings and this is going to provide an opportunity longer term. >> what were you going to say on the tech stocks? >> this adds another level of uncertainty, the government attacking tech companies you look the at markets, the areas we have been recommending, defensive sectors like utilities, consumer staples, communication services, they're having a great year, and continue to buck this trend, so there's a lot of places in the market where you can make some money. >> bruce just want to end on the fed, got some powell headlines, i don't think there was anything to move the market the fed is going to respond as the economic conditions warrant. the fact that the bond market expects a cut and the federal reserve is not stinging that tune, does that represent a head wind in your view in. >> i think it represents risk. what's being factored into the mountain is at least one cut and maybe two. and powell is sitting on his

hands right now and suggesting that maybe no rate cuts in 2019, so i think that represents a risk in the market expectations cut too high >> bruce thank you for joining us brian belski, nice to see you a well. the government eyeing possible crack downs on very large names that you know. one of the lead government lawyers during the microsoft versus u.s. trials is with us. plus a surge in megadeals stealing the spotlight this year what does this mean for the little guy mark shaffer will join david to discuss. the dow holding on to nice gains, besdat y in the month, like i said, up 24 # -- 241 to a single defining moment...

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thankful has been a big theme. facebook and alphabet, in the market amidst fears of big government tim apple weighed in on this issue with cbs. >> with size, i think scrutiny is fair. i think we should be scrutinized but if you look at our -- any kind of measure about is apple a monopoly or not, i don't think anybody reasonable is going to come to the conclusion that apple is a monopoly. our share is much more modest.

we don't have a dominant position in any market. >> joining us, steve hawk, one of the lead attorneys in microsoft, when he shared the antitrust bureau, and now counsel at arthur kerman thank you so much for joining us welcome. >> my pleasure. >> same discussion, how seriously should we take it in the frame work of apple specifically. >> well, i think there will be some scrutiny but it's a long hard road for the prosecutors on the case like this where the companies are mainly just big, haven't necessarily engaged in predatory conduct like microsoft. >> are you seeing any analogs through the early days of the microsoft trial. >> certainly government scrutiny we scrutinized and all five commissioners said there wasn't a case >> in your case, how did you know when it was going to get serious? were there clues. >> we started looking at the

documents, the e-mail from microsoft. microsoft did some really bad things, and i don't see those kind of things here, so i think it's going to be a tough case to make for the government. >> when you say here, are you referring to apple >> apple, google, amazon, you know, big tech in general. >> you don't think any of them have anything to worry about >> they do anytime the government is looking at you, it's serious they have a lot of manpower and resources. you have to be careful about what you do. you have large market power. i don't see the hardball tactics that occurred in the microsoft case. >> are there any parts of the law that perhaps have not been used as much as they might otherwise be or be brought back from usage in the 50s and 60s when it comes to antitrust that could be in play here in terms of overall market power. >> a lot of critics, complaining that there hasn't been a large section two case, which is the monopoly section

the fact of the matter is, one of the good things, the positive things about the microsoft case is that we proved that you could apply section 2 to high-tech i think it got the attention of everybody in high-tech, and they have been a lot more careful back in the day, microsoft didn't have any antitrust lawyers working for them, and now they're all lawyered up. and so i think they're much more careful about what they do it doesn't mean they might not have done something wrong, but i think, you know, it's not going to be the kind of thing that we saw back then. >> so you seem dubious as to the government's ability to actually bring a case i understand apple, by the way, most people would put at the bottom of the list of those most susceptible. even with alphabet or facebook, you say it's going to be a tough approach for the government. >> i think it will antitrust laws being big, market share or dollars isn't enough. in fact, one of the rewards of having a good product is you get a large market share

you're a successful competitor, and it's only illegal if you do something predatory or exclusionary to keep your market share and i just don't see that kind of thing here maybe when they look at the documents, they'll reveal something. >> i wonder if any of you provides a road map here looking into google for years, numerous charges and actually fines. and found that they do, you know, have some at least, in her view, anticompetitive behavior when it comes to for instance prioritizing other apps on the android software and that sort of thing is the best case scenario for investors here that they just get more fines >> you know, i'm not sure what the eu guys translates to the united states for several reasons. one is the law is different, and i don't think they have the same conduct requirement that we have here another difference is the facts, so like in europe, i believe, android has a much larger market share than it does here, for

example. and then by my standards, as an american antitrust lawyer, the eu has done some weird things. like in the android case, they ignore the fact that apple is in the market that's how they, you know, got to the end that android had a large market share and you go into a verizon store and you're deciding whether to get an apple or android, and there are different kinds of androids i'm doubtful that will stand up. the law is different over there. >> if we agree the bar is high, do you believe regulators have one company in mind over another, that one company will come under increased pressure even if it ends up not being. >> they seem to be looking at google and amazon these days, right. >> keep adding a new one to the list every weak. >> these are the companies i think they have their sights on in the present. >> there are different

regulatory industries, does it matter if you're getting by the f -- >> one of the things that's peculiar is the ftc investigated google now it's the antitrust division normally an agency develops a particular expertise in a company or product and keep investigating there so it's odd to me that that has shifted over to the department of justice to answer your question, no, it really doesn't make a difference. >> you speak of laws, of course, there is legislation or the possibility you could get congress in on this act. do you have any expectations in terms of whether that would be something that comes to the floor of them trying to sort of act to curb the power of these companies. >> also a strange view of people on the left, elizabeth warren and all the way on the right like ted cruz who seems to be exercised about the market power but it would have to be a very

significant change in the antitrust law, eliminating the bad conduct requirement. that would be very difficult to accomplish in this congress, it would be a major change in laws. >> what do you think about the timing of all this sort of interesting. do you think they're teeing it up as an election issue, potentially. >> one of the unfortunate things about our current president is he gets involved in law enforcement, and evidently he hasn't directly communicated to the dhs division or ftc about google which he doesn't like, or about amazon which he doesn't like but it leaves a bad appearance because he talks about them, and the you know, the heads of the ftc, and doj can read papers like i can and they know what he wants to do. it's very unfortunate. >> we have this same discussion about the fed, i wonder if you think his tweets or his public comments have an impact on their

psyche even at the margin. >> well, you know, just speaking as a human being, and you know, your boss says something, you pay attention to it, right it may not be the thing that makes you make your decision, but it's certainly in the back of your mind at the very least. >> steve, please come back, help us navigate this world thank you very much, steve houck. jay powell wrapping up opening remarks at a research conference in chicago at the fed just moments ago our steve liesman is at that conference and joins us with the highlights, good morning >> fed chair jay powell stepped out of the normal idea he was going to talk about, the conference of looking at fed strategy and tools of communication to address specifically the trade issue and the possibility of greater tariffs, and he said the fed is paying attention >> do not know how or when these issues will be resolved. we are monitoring the

implications for the u.s. economic outlook, and as always, we will act as appropriate to sustain the expansion with a strong labor market and inflation near our 2% objective. >> he did not say what the appropriate act would be he went on to say the economy is growing, unemployment is low, and inflation is stable but the fed takes seriously the inflation short fall risks and a lasting short fall could lower inflation expectations not sure if the market got a bump on that earlier in the day, i talked to kevin evans, to now being 212 and was even lower yesterday here's what he said about the ten-year and what it means. >> the u.s. is a safe haven flow i think there's increased uncertainty. i think investors are responding a little bit to increased uncertainty over the international environment and, you know, i think we just have to think about that.

that doesn't necessarily mean that the u.s. economy is weakening. >> so evans seems more likely than others perhaps to cut rates in order to address the possibility of an inflation shortfall. he said policy is in a good place, and he'll get a feel for how vice chairman richard clarida feels about that issue we'll interview him at 1:15 eastern time there seems to be a menu of opinions for investors to take in terms of rate cut assurance from the fed, whether it's bu bullard. who do we listen to besides the chair? >> when there's conflicting opinions out there, you listen to the chair but i'm not sure everybody is conflicting i think what there is, is there's in the center but i think they're leaning towards at least one cut. now, i think the market is very

aggressively priced. we're talking about a 50% probability priced into the market for a rate cut in july. sorry, 51% and ivory soap pure towards the end of the year, 99.9%, sure of a rate cut by the end of 2019, and by the way, two rate cuts are actually built into those numbers there, so that's very aggressive for what i'm hearing from the fed but certainly if the inflation short fall persists. if trade is seen as a negative for growth, i think the federal reserve will cut, not quite as soon as the markets expected. >> did powell drop transitory, which the market got annoyed with when he used that word. >> right always count on sarah for a great one. >> i noticed the lack of transitory but i also will notice that he's not really addressing the current issue of the inflation shortfall.

he's talking sarah, if you read the speech theoretical shortfall. i think you are accurate to note the absence of that word i wonder whether it's meaningful it's not there this time around. >> you should find him, corner him and ask him. >> i will try to do that, sarah, and i will say, sara eisen wants me to ask this question. >> i appreciate that as we head to a quick break, shares plunging this morning companies regarding q1 responses, getting a check on where major averages stand, session highs on the dough up 337. s&p at 1.2%. we'll be right back.

if you got cash on the sidelines, you can begin plenty of the work, but slowly and surely and not be a degree of gusto. markets in rally mode, let's talk about our etf spotlight and send it over to mike santoli

>> had a big impact on the growth versus value interplay as we watch all the time. we know it's been a growth dominated market for a long time this is the russell 1,000 growth versus the value version of this index. it peaked in a spread of basically 6 and 7 percentage points back in the market, pete. both declined basically around the same angle, but look in the last month or so and particularly you can see yesterday's action on this yesterday was the biggest bump in value over growth that we have seen this year. so the orange is value, so that big shot up, and this is, you know, a weaker balance that we're seeing today in growth the big question is yesterday, software and faang stocks is that enduring or a representation of that's one of the last places people were hiding and maybe that meant the market as a whole was due to bounce let's see if there's a changing character. >> mike santoli. let's get over to sue herera, and get an update at this hour.

here's what's happening at this hour. president trump meeting with british prime minister theresa may and corporate executives from the u.s. and uk earlier this morning he urged the embattled prime minister to stick around to complete a u.s. uk trade deal. thousands of protesters gathered in london to voice their disapproval of the president's visit. feminist, peace activists demonstrated against the royal welcome given to the president mexico's foreign minister says there's likely to be an agreement wednesday with the u.s. that will avoid a 5% tariff on mexican goods he told reporters that despite his optimism, his team will be ready for a nonagreement scenario. and u.s. customs and border patrol agents shot and killed a man who refused to stop at california's border with mexico. san diego police say the shooting took place monday night at a secondary vehicle inspection area. none of the seven officers

involved was injured. you're up to date. that's the news update this hour carl, back to you. >> thank you so much when we come back, megadeals may be overshadowing a weaker global landscape. david is going to discuss that with mark shaffer. we're up 355 best day since april now stick around, don't go away.

you know where we're going to go here bristol and darco and sun trust, those larger megadeals may be overshadowing a weaker landscape overall. global m and a volume dropped 19%, despite the number of 20

plus building deals that have been hitting an all time high. here to explain what it means and what we can expect to see for the remainder of the year, mark shacheffer we get you once every eight months or so great to have you. >> good to be here. >> what can we expect the rest of the year. >> you got to look at it this way, a lot of talk at how big deals are driving the markets, back to 2007, you got to go back that far transaction values under that are down substantially, so it's not a particularly healthy market but the flip side, it's the fourth fastest start in history, second fastest start since the crisis it's not all bad when i spoke at tulane in march, i talked about 10 to 20% down in volumes, probably toward the lower end of that. maybe worse because it was pr predicated on a pickup >> what does it mean when you

don't see the number of billion plus, billion to $5 billion deals. what is that a reflection of >> it could be confidence. the bad here is, you know, you've got a macro economic situation, to try to trade stuff. fragmented in europe the u.s. is now down 11% also very narrow from an industry perspective, three of the nine industries we cover are up in volume, industrials, engineer and technology so from that regionally and from an industry perspective, you know, that having been said, we're still getting the large transactions may was actually a pretty good month. >> that's funny, i sat down with ken a couple weeks ago, runs a company also very much involved in m and a he wonders whether we're going to see a slow down in the macro, bigger transactions as a result

of the macro fear. some of which you just outlined. you? >> it's certainly possible it's still ticking along. it's not bad, as i said, but you have to look at potentially bigger clouds on the horizon it could get worse you have the summer coming up. it typically slows in the summer what we need is a pickup in the sweet spot, the 1 to 5, 1 to $10 billion, and we haven't seen that to your point, without it, it makes it difficult on a year over year comparison basis to believe the number is going to get better. >> it's not often that a ceo is compelled to do something. sometimes they are, strategically they just have to. maybe the payments industry is one example where we are seeing all of these deals what about ceo confidence right now. you get a tariff potentially on mexico you've got a trade war with china. you've got some concern now about the consumer it would seem to me, but i want to hear obviously what you're hearing that ceo confidence may be waning a little bit. >> is it an inflection point, i don't know the answer to that. it's still, we're still seeing big deals, transactions that

ultimately become actionable, scarce real estate argument, stuff's getting done do i think it's permeating the conversations in the board rooms and senior management about what the outlook is going to be and what could happen in gdp growth, yes, unequivocally, it's coming into those conversations. >> you want to be positive but you can't be that positive it's okay. it's all right i know you've got a job to do. >> i'm always pretty conservative on this stuff. >> you are but you generally have been right. i do want to talk to you about one of the bigger deals of the year that you were involved with, citi was involved with, involving oxy, carl icahn comes out, a complaint, potential lawsuit, wants books and records, says you're paying too much, put on too much leverage, the 8% is ridiculous, and the price of oil is going down

we all could be in trouble what do you say? >> transactions aren't measured in weeks or in a couple of months they're measured over the long-term. the one thing i strongly object to is the notion that the board and management haven't fully vetted this. haven't observed really good due process, which they did. this is very well thought out, and you can't measure this, you know, now or over the next few weeks. you measure it over a longer period of time i can tell you from the standpoint, my interaction with the management and the board, it was extremely deeply thought about, and it's a transaction that there's a lot of belief will lead to really big things. >> he seems to be saying sell the company once you combine is that a possibility? >> you know, it's great legal talk about let's go sell microsoft, let's go sell this. these are publicly traded companies. they trade every day if somebody wants to show up on somebody's doorstep, they will i don't know how to react to that imprond thbeyond that. there's nothing really to say.

>> vicky halb, the ceo of oxy was aggressive, i would assume you would agree and certainl would seem is making a very important bet that she can integrate this asset and get what she needs to out of the permon in a way that is going to obviously reward shareholders. >> yes, unequivocally, vicky is an engineer. she has really done it, literally out in the field at the rig level. her engineering background is, as you saw when you talked to her is really really strong. her management team is strong. they've got a lot of belief. you judge this transaction over years, not weeks or month. >> do you think you could have gotten one if you had needed one? >> i think we probably could have, yes. but this is all at this point, it's a moot point. >> listen, it was one of the more interesting fights a successful one of course you have to be happy with how it ended up. >> listen, i think it ended up in the right place.

>> back to the bigger picture here, any industry you anticipate will start to see activity heat up in the second half of the year. >> we have seen a little bit more activity in media telecom in may off a fairly low base what's driving all of this, activism is not going away tech disruption is driving technology we see the sponsor activity shifting up, more to the bye side, i think the last three months, we have seen 20 plus billion dollar transactions into the last three months from the sponsor. that's healthy. >> right regulation, though, it would seem to me to be a difficult thing to monitor or figure out at this point. not just antitrust, but if you were trying to do a tech deal. >> we saw two semideals. >> but they were foreign buyers. if you're a board can you step and say we're going to take that

risk. >> unquestionably it's being thought about t. you have to think about it it's not just can you get it done at all, it's do you want to hang out for a year, potentially 18 months or longer because of the business issues that surround that. you're taking your eye off your current business it's hard to say, clearly a deliberation whether people will do them or not how compelling is the opportunity to become actionable for the first time in a long time will it get taken off the table. but i think with a year ago, the business is a example. now we have seen a couple of transactions academies transactions admittedly with offshore buyers. we'll have to see how this turns out. >> mark we appreciate your update. >> mark shafir, cohead of m and a at citi. dow is up 340, best day now since the middle of february, and since the beginning of march for the s&p we're back after this introducing the first of its kind lexus ux

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talk of a fed cut sweeping across wall street and one strategist says it could happen sooner than you think. find outhat at wth could mean for the markets. more "squawk on the street" is coming up.

as we have been covering here on cnbc, the china trade war having a broad impact on industries across the united states contessa brewer is in flemington, new jersey with a look at how tariffs are hiking insurance premiums good morning, contessa. >> hi there, sara, when a car crashes it comes into a service center and the bill gets passed on to the insurance company. take for instance, windshields which are one of the most commonly replaced items. they have gone up 10% because of tariffs. and now the insurance industry says the china tariffs, 25%, have added $3.4 billion in additional costs into what they

pay. president trump has promised 5%, mexico tariffs beginning monday, the american property casualty insurance association is bracing now for as much as a $5 billion impact if those tariffs go up to 25%. let me tell you what that means. this is a cruise control sensor for a volkswagen it retails for about $1,300. if the tariffs went to this imported part from mexico, it would tack on an additional $330 to this part and then there's the secondary cost, for instance, whether a car is totalled or repaired, depends on how expensive it is to fix and more expensive parts means fewer cars repaired, more cars totalled, the replacement vehicles are more expensive, and then there's the supply disruptions as well. if a part can't get to where it's needed to go, it tacks on extra days of rental cars, and the insurance industry says every day of delay means a half

billion dollars to the rental car costs for the insurance industry and who's picking up that tab, oh, the insurance companies right? it's a pass through industry that means the insurance costs are directly passed on to the policy holders in essence, sara, you and i and everybody who has car insurance is paying for tariffs. >> and do we know how vast this is, how many auto parts actually do come from mexico? >> are you ready for this? we imported $158 billion in auto parts last year. mexico, the number one source, $60 billion worth of auto parts, it's three times more than china. this is going to cost consumers big time, and by the way, we're only talking about auto insurance costs. imagine if your car breaks down. that's also a problem. >> in a lot of ways that's a problem, yeah. contessa, thank you. let's send it over now to morgan

brennan, she has a look at what's coming up on "squawk alley". now all the faang names, facebook trading lower we're going to break down regulatory risks and whether or not there are buying opportunities in the mid-of all of this uncertainty. we've got a big show for "squawk ally." stay tuned my degree from snhu has helped me tremendously. the flexible class schedules allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed.

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simple, easy, awesome. go to xfinity.com/moving to get started. . welcome back to "squawkon the street," markets are rebounding off the best levels of the day with significant help from those economically sensitive sectors like tech financials and consumer discretionary. nearly all members high today including shares of citigroup, is parent company of silicon bank, morgan stanley, goldman sachs, they're in the green. they're reversing recent downturns at least for now as interest rates continue to fall. >> that modest bounce in those rates may be helping to cause a little for the bank stocks bank-related trade funds, ticker kbe and the spider regional ticker kre outperforming the broader financial sect ore overall, so keep an eye on the bank stocks specifically if financials, now i will send it

back down to you guys at the new york stock exchange. carl >> all right don, thank you very much. shares of uber relatively flat a bunch of wall street firms initiate coverage, most include gold man stanley, deutsche starting out with buy ratings and their equivalent with price targets above the ipo of 45. citi has a price target of 45. we'll talk to citi and "squawk alley" in a few moments. other comments about best internet ip tounts opportunities, facebook. according to deutsche. >> transformational opportunity, incredible growth rate for now they have a great summary of all the calls, 20 analysts none say sell the stock. four say hold. i get the caveat, guys, is that the stock is still trading lower, below it's ipo price. if you look at the sell side, it's a buying opportunity. >> only one at that price. you see citi at 45

it sold. they also like eats and freight as real opportunities for growth beyond the ride sharing business and seem to like that broader platform better than the purer play that is lyft. >> i think it's interesting how they downplay the profitability question, deutsche bank says it's less of a challenge for uber than getting into mobile laws for facebook at the time of the ipo, which of course is the big skeptical question on wall street that facebook managed to do we'll see if they're right bullish. >> that's bullish. facebook, well, a lot more winded, it's backs one would think. >> not the billions of dollars of losses. that's another caveat, but obviously, we started about the bounce if yields back to 212 on the ten year, s&p made it more interesting getting back to that 200 day do we know for the first time since, sarah >> i don't know exactly. clearly that was sort of the pushed us higher, a leg up now you got most groups in the green, financials, consumer

industrials, a real bounceback, the only sectors that are read is real estate, the defense it plays, the yields or dividend plays working well in this environment and we'll will tracking it to see whether it's a sort of a one-day browns from very oversold conditions or whether the market can find sort of a new leg up here on better prospects for trade, maybe a price and a fed cut. maybe that's good news. >> maybe it's about the fed. i don't know about better prospects for trade, every day that seems to change facebook the only name that is down 1.8%. alphabet, amazon, apple. the new focus apparently of regulators when it comes to at least the market power of facebook is the one suffering the most did yesterday as well when the news was revealed, also that it was in the crosshairs. >> so many analysts say they'd come out and buy we talked to mark mull haney on "closing bell" yesterday, a buying opportunities they expected this they say the companies are ready for it

they're not worried about retail. >> speaking of closing bell, what do you have coming up >> remember. >> former ceo mark fields and uber a good day to have him. also brookefield properties, on reits. we will find out more about his business and earnings, salesforce gamestop, we'll be l er them. >> "squawk alley" is coming up next don't go anywhere.

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good morning, it's 8:00 a.m. at silicon valley, 8:00 a.m. on wall street and "squawk alley" is live. [ music playing ] good tuesday morning, welcome to

"squawk alley" john ford the on assignment. a nice bounce today. dow is up almost 360 you got to go back to the middle of february to see a gain this big. early march, s&p back up above the 200 day. >> tech stocks are rebounding. including many of the fang names, though i would leave facebook out since they're trading more than 1% right now overall, all the major averages in the green >> all right fang stocks mostly higher, this morning a day after tanking and shedding almost $130 billion in market cap, sending alphabet into a bear market as anti-trust investigations weigh on shareholder sentiment, we have wedgewood partners portfolio manager and cio david wolf what a way to start the week how surprised were you by this latest chapter and what does it do to your models across th