markets. dow is up 76 points, i say only because it comes down after the news of the adp employment report, it is lower than expected we'll see what it means through jobs number on friday. s&p 500 is looking to open 9 or 10 points higher make sure to join us tomorrow, "squawk on the street" begins right now. ♪ good wednesday morning, welcome to "squawk on the street," i am carl quintanilla with david faber and jim cramer coming up, the second biggest rally of the year. adp was a nasty downside surprise only 27,000 jobs added the president heads to ireland, two-year yield falls below 0.8

adp shows jobs growth screech to a near halt in may >> washington is ramping up the pressure on big tech executives are expected to be called to testify on congress. >> senator sanders is set to confront walmart at the annual shareholder's meeting this morning. futures are well off the highs after adp shows private sector added 27,000 jobs last month well below expectations of 173,000. labor shortages impeaching jobs growth small business dowes are down 5d construction are down 36 >> these are numbers indicated that the fed should be

like mark benioff said last night, -- more companies are concerned of wage growth i had chipotle on this they can handle it they have minimum growth wage. whatever they have they can handle because they have scale i think yesterday the fed was not commenting i was trying to debate whether the fed is enough to say they're considering or do they have to take action. if we get a really weak number on friday, people would say i would take action injun. >> the odds of a june cut is now 33%. a week ago 10% >> amazing >> does that speak of that big of an increase in your mind? >> i think it does

>> we got these june 10th tariffs. senator cruz he's breaking the -- >> texas senator ted cruz, it is not a surprise if you are a senator of texas you would not be happy of the idea of a 5% tariffs >> it actually impacts gdp >> 5, 10, 15 and 20, the president was not backing off yesterday at his press conference his opposition within his own party for tariffs could lead to a disapproval vote in the senate not sure where that'll end up. he seems fairly committed to five days from now putting 5%. >> monday morning. >> he could be more higher in the polls if wasn't for the media. >> jim, try to understand what really happens if the slow down

isra is real and his retail numbers what started it? where did it come from we are going gang buster seems like in march. >> the malls really stepped down if you are on that game stop conference call yesterday, you are trying to figure out where game stop can stop >> yes, they do. >> they can't go below zero. >> that's very different than "chernobyl." why are you discontinuing dividend >> there was a downturn in the mall others would say overall retail sales, the mall may be suffering. people are buying plenty of stuff from amazon.

they're buying from walmart.com. >> they're buying from the biggest ones because target has 40% digital commerce when i look at the other stores in the mall, i think it is frie frighten >> does that reflect of a slow down of consumers that would speak to concerns that are raised now >> i think it is dollar general had good numbers. and tjx did not have that good number >> look at lowe's. their numbers are pretty bad i am saying you went from -- one of the things that benioff said hey, it was crazy good last year and now we are back to 2017. >> you think it is classic late cycle. you don't think the administration is switching from a tax cut deregulatory mode to a

tariff increase regulatory mode? >> not to the consumers. more to the business executives who's making decisions that allocate capital, right? >> that's going back to manny tericho, one of those meetings -- come on. it was tariffs and tariffs tariffs is starting to hurt th s companies that i deal with let's hear what mark told you on that subject >> i can see these ceos have anxiety of what's going on with trade. while it has not hurt these companies yet but it could i hope these discussions come to an end now >> you don't have to wait for the wave to hit.

the wave obviously coming. >> you see it in his face. >> he was in minneapolis you look at the large industry companies in minneapolis >> i think we know which one >> and 3m is uniquely suited to be everywhere bad. there is not a single line that's not troubling >> high lever to global growth >> you want to be able to guess who? >> maybe, but 3m is down a lot so it is game stop, it is time to take a shot of that mcdonald's, wendy's, beyond meat, okay, focus? i tried to get the focus on the good economy but he keeps on insists the other 96%.

>> meanwhile leaders of big tech are about to be summon to capitol hill today, google and facebook and amazon are facing greater antitrust scrutiny jim, we had tim cook making comments of not just regulations here >> i think it is interesting that interview was very lengthy. could i be more of a supporter of what apple does i am far more concern that the president is a target. >> as far as apple goes, you are more worried of domestic polici policies >> if you export from china, the president is not crazy about you. now if you go and listen to the sky works, there is a sky works preannouncement last night 12% of the business turned out

to be like huawei. they got shut down i am just saying the president and china or it is already happening. people are taking action, sky works is a big american company. i just don't want the president to say okay, listen, apple makes a lot of stuff in china. until they bring it home of where it was it was never here. it was never here. did you know it was never here >> assembly? >> jobs? >> i am aware of it. not like the automakers. they come directly part of the corrupt media here when i say that they did not remain here. >> by the way, they're never going to >> you are part of the corrupt media, too >> i am looking at the tweet who am i owned by? can somebody tell me other than my wife or my new dog. >> well, you are a dollar sign

>> today, katie huberty, she was bear case 156. the theory would be they would have to get out of media services >> no lawsuit yesterday about the app store. i keep on saying you know, you don't have to sell the app store. there is nothing that says that's a monopoly. not a big part of your apps. mark benioff attacking tech for not playing. i have a friend who quit, i think that's an illusion instagram is really savoring facebosaving books.

our company have gotten -- they don't know who the customers is. one of the big things is facebook does not know the customers. they'll sell out >> well, they know their customers and it is not you. >> you are cynical >> no, i am not. >> you are cynical i am talking about -- >> you are the product and the supplier >> yes >> who's alphabet? is alphabet -- is alphabet a competitor >> are you a customer? therefo therefore, customers are always right. are you being sold that's one of the problems at alphabet we don't know about amazon or facebook clearly >> it is not clear at all what road antitrust enforces will go down to try to win a case. >> you have good sources there a day of conviction?

>> no, they're not there yet >> cvs closes years ago. >> he's trying to hold the doj's feet to the fire i think him and del rahim is no getting along well >> that's kind of done >> it is done. >> he's not trying to do anything did you cut the at&t court in order to get along with the president? >> did i change my wireless service provide snr? >> no, i have not done yet >> i may have to move to at&t. these are all issues were maki we do not want to talk abou about -- we want to talk about

american success hiring people and instead we are talking about corrupt media and mexico >> you got to stop reading those. >> okay, so forget it. who is he? i will get the president on. the president of the united states, very important pu kn you know who washington was or fdr? we are living in a strange time. you have to be informed by twitter. >> you seemed entertain. you think it is kind of fun. >> i have a job. when we come back, presidential candidate bernie sanders is going to the walmart shareholder meeting today with a message to retailers, boost your workers' pay. the best since march >> is the president playing golf >> we'll talk about where eye into meet.

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that event, pushing for $15 minimum wage, walmart currently has $11 minimum wage the retail giant is hoping sanders using the meeting as a constructive opportunity rather than a campaign stop >> elizabeth warren talked to me about in the interview earlier this year. what i think is interesting that remember -- he raised wages very big. they don't have a lot of turnover anymore i think that's offering an indicator of a correct pay in the mark, high pay senator sanders obviously, he favors a bit more of -- >> they raised wages twice since 2016 the first time we were down with them when they announced it, it benefits the average of 17.5

>> how about the things they have been doing? they made a lot of changes i know senator sanders is grumpy it is hard to match all the things walmart has done in the west >> they thought it was smart for their business you can reduce terms in employment ranks and increase the satisfaction of our customers by having better employees on the floor who actual linly knows what they are doing. amazon is going up jeff bezos challenged people always strange when you see government sort of mandating we do have a minimum wage, mandating what companies should be paying? >> i always go over what walmart have done for workers. here is one. debt-free college education for about a dollar a day should senator sanders be

talking about that helping remove barriers to high schoolers to get to higher ed. they're making major strive. they're taking a page from jim synagogue's book it is good business, they're doing it because they got a regime that we got to do more for workers. senator sanders is suggesting that walmart is a bad actor. i think walmart is a much better actor than it used to be >> to pay people far more and much better benefits and not suffer as a result >> they have no turnover i remember jim telling me the other guy which is walmart used to have 30% turnover when you have a new employee, they tend to upset -- i went to the same walmart three years

later. can you tell me where pants are and they sent me to washer machines i got the pants and they only had size 38. jesus, you only have 38? that's the average size. do you have something like 32? >> no, we don't carry that i come back years later, they got 32 and 34 and they sent me to pants instead of wash machines w we pay higher than anyone in the area i don't know, senator sanders, we got an e llection. >> markets go down as the crazy democratic way you go that far? >> can you tell us which one is crazy or not crazy >> look, workers is onto

production, then we don't have anything to do we are done, right that's like neio, n-i-o, the chinese market >> you know how i feel about that >> i feel the same as mark cuban. >> no, you are not alone >> i am not alone. look, i am waiting for uber to kick in at 45. >> we really got to go >> cramer's mad dash and the opening bell after the break don't go anywhere. let me ask you something. can the past help you write the future?

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you are watching cnbc's "squawk on the street. opening bell is under two-minutes. busy morning, we talked about disappointments on adp the fed is ready to adjust policy if necessary. we'll get to mexico, u.s. tariff discussion the vice president this afternoon. >> i saw that. you have to watch it because that deadline is coming very fast once again autos, you see ford is on that list of china of the

hurt list so to speak. i keep oncoming back to autos being so weak. autos are the battleground here with mexico because import is fast and figuurious the best acting autocompany related is carmax. why? used cars. >> reuters got their hands out of toyota. it could cause suppliers, a wide range of 200 million to over a million dollars. >> mexico is gigantic. this is it this is what they made i went to a 300 yard toyota plant is being built a couple of week ago i mean you don't understand, these companies felt that napa is going to surpass them >> let's get to the opening bell

here at the cnbc realtime exchange at the big board is kontoor and at the nasdaq is microsoft >> have you noticed microsoft is not apart of the big company, that's because i think microsoft knows who their client is. >> i want to know if you are in the now. >> microsoft is up i heard you. >> okay, thank you >> i am going to hand david the rock >> campbell soup is doing quite

well >> is it really? under the new management >> there could be quite a bit of debates of activism and people put in and pursuing management change i don't think third point, will pursue management changed at sony people make arguments that the guy came in with biogem. what a disaster that has been. >> coming back to campbell's soup i would love to get your thoughts >> stock is up >> getting out of the bad. campbell is under managed. i think campbell got a real shot here david wolff is doing a good job. >> reduction of steel tariffs from canada. remember our famous interview with wilbur ross

it is an important raw material cost if it comes down, it may upsets tariffs and other parts of the world. >> the opposite of what was supposed to happen when we heard all that's going to steal and steal prices have not gone up. they have come down. now with the economy and who knows wast goihat's going to ha. i am waiting for the president to start a full board assault on powell if there is any weakness on friday. >> on powell >> i am sorry. >> powell. >> honestly, that's who's going to be under attack i wish and i am glad by the grace of god that i am not in that mess. man, it is going to be hot boots time jay powell, look out >> she's arguing for cut this

summer and maybe more this fall. one of his points is it is going to look like they cave to the executive branch and it is viewed as a second order mistake. let's worry about the economy first. >> i think he's right. >> we are well out of steps. we never talked about the strong dollar of all these calls. a lot of it is our rate. they're readjusting. it is really rather extraordinary. we are the only currency that teams seems to matter. everybody is getting so much by the strong dollar. the white house would love a weaker dollar going into the election >> no, they have not based on it and it is hard to do i think yeah, you raised rates in december and he's not going to say

hey listen, this is a do over, i am going to do it over, i got it wrong. that's not what they do with the fed. you have a favorite report >> you seem to be anxious for one. i can do one if you would like >> i thought it would fun for you to do a faber's report >> i promise i will do something soon i hope i have something interesting. >> hey, it is not particularly active there had been a pace of it. >> it turns out to be an acquisition that really helped them it is not like the merger of business being that bad. >> navarro is on cnn this morning, the tariffs on mexico may not need to go into effect how much is pivoting around of what's happening on monday morning?

>> i think it is very big. the industry is booming. it will go up top 6 million cars and suddenly that's a very bad tariff it keeps ongoing up. it will be decided of vanir vand if you don't have business there. last night, the cfo at chipotle told me not to worry about hiring people should be watching carmax, that's what you watch. that's how you buy a car without getting hit by tariffs i got a lot of feedback on my comment about germany and the president going after tariffs in nato they say how did you snknow >> what do you make of wti

>> well, oil is around 52? >> i think you got to go with what the great man oil man pioneer. 17 million barrels will be producing the next few years where are we going to put that >> where are we going to put that >> excellent interview with brian sullivan it is an extraordinary moment. if we increase, we are talking about 5 million barrels. there is no demand flow. >> where are we now, 11? >> 12. >> ups had a report out yesterday looking at what could end the credit cycle one of their tipping points would be oil 7.50. >> the five year curve is

showing that we got 55 it is going to change from that. i am less worried of -- when it all goes down, it used to send the futures down jay powell is looking at oil everyone is looking at the cover they need given the fact th that -- it is hard not to bend the president. >> you can't go without one minute without mentioning him. >> what do you want me to talk about? >> we can talk about a lot of things >> i don't know, went reserve and 23% growth >> scott walker. >> he drinks stuff like this >> really? >> i am aware of it. >> he likes all those fancy -- i will keep going. you want more earnings stuff

>> i think they're coming down i don't have a good feel how about aeo. talk about that verses abercrombie. >> how about contour they have a lot of china exposure i am not recommending contour because the whole denim is a battleground denim is a very tough place to be and levi's. >> there you go, david, i mentioned a lot of things and did not mention the president at all. >> now,

apple. >> the united states will be so foolish going after apple. >> you are not talking about antitrust. you are talking aboutfigure a way to penalize them >> you don't think the two are linked >> how else would you put the squeeze on apple the president wants everybody to make everything here you put the 10%, i think it is going to be 10% tariffs. i think they're going to include apple and that's ridiculous. apple got 2 million people that are employed here. how is the justice department and the middle came ou out -- that's maybe the major military of this country i don't understand how you can go after a company that just created jobs if you don't like the tie up, i know senator warren wants to break up apple

>> really? >> huberty did not make it clear. i don't think she likes to tie it a lot of the tech feels that the app store should be separate >> tim cook addressed this topic with norah o'donnel on cbs >> some people would argue if you are selling a good then you can't have a product that it competes with that good. i think that's part of what has been argued there. that's an argument nor it takes you down the path where walmart should not be stocking an alternative or house brand so this is decades of u.s. law here i think scrutiny is good we'll tell stories to anybody that we need to or that wants to

hear it. >> how could you be more right than that? house brands and costco and kroger has huge house brand. >> i am sorry, i am willing to go through huberty's downside $13. i thought tim cook made so much sense last night, he raises a lot of -- >> nothing says they're going to be the subject of a lawsuit from modify >> some things are great i think the app store is great why can't they say some things are great. some companies have done great things >> i mean you are not a developer who's having to pay over 30 for royalty, right >> if you want to go to the app store to get some, you have to pay the piper but it is great. >> you get a lot of subs

>> which is why they have charging you what they are >> why should they you don't have to go there you choose and i know i push tr people in the streets. yes, run it on apple and get a lot of subs. that's how you get it. i don't care if they get their fair share i don't care it is kind of like seeing gerald, they didn't kill their wife >> i don't care. >> mortgage app, jim, purchases are down four weeks in a row >> how can housing not come back >> that means it should be good for retail and good for home depot and lowe's there is only two weekends that you can plan it so far and gardening. wow, the weather really hurt a lot of retail and hurting a lot of farmers right now and coming

deeper and deeper into the season there is going to be potential shortage of corn >> it is going to be knee-high for 4th of july. >> why are you going backup? >> the president recognizes that farmers are a -- >> they rather plant than get a check. >> they rather do their job than to get a hand out? >> okay. >> i mean i am not a farmer. >> we didn't have a lot of them in queens. i come across a few of them. >> i wi >> this is my 30 years gardening. >> i have no tomatoes coming my

way. >> my sauce was a killer last year >> let's get to seema modi good morning >> good morning. we are up 119 for the dow industrial average and yesterday's move the fed share, powell excited of their comments jp morgan putting into perspective, it is the weakest monthly change since may 2010, it does raise the possibility that the labor market is weakening more than anticipated, the big talker this afternoon will be vice president, mike pence, meeting with the mexican delegation that 5% tariffs is expected to kick in on monday. overseas, a strong market reaction to the fed. only 2.0 of a percent.

>> sector is leading us high right now especially tech. apple is the big mover there and now on track for its biggest two-day gain in four months. let's talk about 6% and the best performer on the dow this morning. let's pivot to cruise line stock. buckingham research downgrading shares of norwegian. driven by the -- norwegian cruise line has the most exposure to cuba and therefore they lose the most from this travel restriction, a possible 1 cents i am pmpactimpacting dow is still up 102.

carl, back to you. >> let's get to rick santelli. >> good morning rick, good morning carl we get weak numbers on jobs or you put fed speakers out there in the time of turmoil ding, ding, ding, what do the markets do they expect fed cut and it is going to be a big positive force. how else can one explain it? we continue to wrap pretty well and closing around the week of adp number and adp just disappeared when we come to friday's numbers look at the two-day of twos. absolutely, of course, it has to do with what's going on with regards to the fed and trying to come up with some type of relationship in the feds' role of how they put the pause at the end of this year verses last year

reacting to the market we don't know how trades turn out, it canda disappear quicklyo not. they're down a half, half minus four ten minus twos, it zoomed all the way up to 30 bases points. we have not been there since the end of last year here is something truly fascinating. here is may 1st of fed funds december forget percentages, just remember, is thatrocket puttin mores on the table the long end is hovering is own. we have not closed that since the fall of 2017 if you look at fed fund for december, opening it up, you can see how there is symmetry for what's going on for fed fund futures. carl, david, jim, back to you. >> rick, we'll see you in a

little while still to come, a closer look inside amazon. >> we'll talk to the head company consumer device business we know how yesterday turned out of 500 plus points we are back in a moment. ♪ as your life grows, so do your needs. ♪ and with bank of america and merrill, the benefits you get can grow, too. as a preferred rewards member, you can enjoy priority service and exclusive discounts...

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apple is leading the dow, up 2.3% for the week, up almost 5% as we keep a close eye on regulatory risk there. we'll get stock trading wi jthim in a minute. dow up 81. moving is hard.

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now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. let's get to jim and stock trading. >> yesterday, told me he cut the cord i'm out, too expensive what do people do when they hear that they buy roku. look at this stock this is a direct play on cutting the cord people say how do i make money on cutting cord? you buy roku the stock has been unstoppable and it is the winner when you want pure play streaming it is as popular as, well, i

guess as beyond meat those two are in a horse race to get to 120. >> i was just -- stevens cut it to equal weight last week, the 28th, because of the near term valuation risk. >> you can not stop roku it is really incredible and has got no -- you don't have to worry about the president. there you go, david. don't have to worry about china. don't have to worry about mexico secular trend of not watching cable. thanks for nothing i informed my trainer he was fired. just kit kdding. we're not that expensive we are reasonable. >> we are. part of the bundle that makes it more expensive that lets people consider moving to another service, a virtual npd, but those prices are going up. youtube tv went from 37 to -- they raised prices a lot raised prices a lot. >> fire stick is what people are using. fire stick another way to kind of watch. >> of course what's tonight

>> naplan. this is a really good business financial planning, not unlike a business that workday has. this is a tough market i wish i -- being fa teercetioun watching the twitter feed of the president. >> we're going to see him in a little bit as he makes his way to ireland >> oh, no. >> it is going to be okay. we'll see you tonight. "mad money" 6:00 p.m when we return, senator bernie sanders versus walmart, pushing the company to boost worker pay. we'll get the latest on the shareholders meeting which kicks off in just a bit here and ism services in a moment dow up 107 -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

♪ good wednesday morning welcome back to "squawk on the street." i'm carl quintanilla with david faber at post nine of the new york stock exchange. sara eisen will join us momentarily. nice open, dow up 124 after yesterday's big gains as we watch adp. some comments from the fed officials and a lot more

>> our road map does start with president trump. he's continuing his tour abroad while mexico's foreign minister makes his way to washington. this, of course, is tariff talks will get under way we'll take you live to d.c. for the latest. >> breaking up big tech, congress calling on america's top ceos to testify. as apple ceo weighs in >> and bernie versus walmart the senator set to confront the company's leaders over worker pay. at that retailer's annual shareholders meeting that's moments from now. >> let's get ism services. rick >> it is about time we have a little good news on the economy. if we look at our may read, on ism nonmanufacturing service sector, biggest swath the u.s. economy, much better than expected 56.9, we're looking for around 55.5 56.9 is the best level going back to august of -- i'm sorry, february of this year when it was 59.7 it is really a solid number. let's see if we get any long end. we see long end ticking up on

rates, down in price a bit do remember, big inversions three months to ten, captured everybody's imagination regarding weakness and recession. but if you look at tens to twos, the long end is holding up and that's now trading around 30, 31 basis points carl, back to you. >> thank you very much for that. job growth meantime screeching to a near halt in may as adp reports the lowest growth in nine years stocks are still rising, though, as you can see investors increasing their bets the fed may cut rates soon with us is bruce casman and paul christopher. gentlemen, good to see you both. thanks for the time today. >> good morning. >> good morning. >> bruce, a lot of hopes swirling around a rate cut do we get one with an. a ism services number like this. >> i don't think we get one in june our view is what is happening on the trade conflict front is going to hit the economy, among some other things and that we're going to see enough slowing and enough concern to get the fed to

be easing later this summer, we think in september we'll get a fed ease >> how are they going to frame that pivot what are they going to uses areasas reasons for a change a lot of the commentary said they can look through tariffs? >> you can look through tariffs as long as the economy is holding up we're expecting growth over the next couple of quarters to slow to below 1.5% pace, job growth to slow to 100,000 i think against that backdrop and with the trade conflicts still going on, that's the recipe to get you a fed cut. >> you think adp is a canary in the coal mine? >> i've never been a big fan of the adp and predicting friday's number i think it is qualitative lly sending the right signal that job growth is slowing. we have 160,000 forecasts for friday and we're looking for job growth to slow to about 100,000 per month in the third quarter >> all right, paul, are you in the same camp that we are seeing signs of slowing and that as the pain persists, the fed will move?

>> yeah, the pain is definitely showing up more and it is definite lly attributable to tariffs and trade around the world and how that impacts business spending. it is not clear to us yet that we are going to get a fed rate cut or when that might happen. there is some signs of strength still in the economy, you saw that in the services number this morning and frankly, you know, a lot of us remember back to 20 16 when there was a lot of hand wringing about fed policy not being effective. well what you really needed at that time was a boost to aggregate demand, a boost to spending around the world, the chinese came through with some massive stimulus, that may not be in the cards quite yet. and until that happens, you might not get the sort of bang for the buck that you would expect from a fed rate cut >> yeah, the chinese may be under some pressure in their economy. do they have the wherewithal to do what you're suggesting if they feel like it is necessary >> they do have the wherewithal, just that rey really don't want do it. it throws more wood on to the

great big pile of kindling that is chinese debt. they're really trying to use a variety of other stimulus measures right now, tax cuts and other things, that we're used to seeing in this country but that aren't probably very effective in china, certainly not if tariffs continue to escalate at some point they may have to reach back to their tool belt and pick up some bigger hammers to hit the economy with to get it going again they don't really want to do that, but the delay between now and the time that they feel forced to do that could be material for investors >> bruce, jpm had a piece yesterday saying if all the tariffs go through, and if you assume full pass through to consumers, it would hurt household purchasing power by almost 300 billion, double the effect of the december 2017 tax cut. is that the base case? >> no, that's not our base case. but i think it is important to recognize that this is the magnitude of what would happen if we got all of the tariffs

that are being threatened. i think equally important, the big call on the tariffs is the indirect effects which we already have been seeing in terms of business confidence and business spending slow the idea that we're changing the rules of the game in terms of the global trading system, the way it could affect supply chains in north america, the way it is already affecting supply chains in asia, that's really the big call here in terms of the risks to global growth >> yeah. i think -- we have been having this discussion a lot. we understand why it would create uncertainty for the managers, but how does that hop, how does that make the leap to the consumer are we seeing that yet, would you expect to see that sometime soon >> i don't think we're seeing it yet. i think the point there is still strength in the economy and the consumers is a big part of it is right. part of it will come from higher prices if the tariffs go up. but the bigger part will be the pullback in business spending that starts to hit the labor market that's really the call we have been thinking that the labor market will not get hit too hard because the business

sector will be holding up in the face of what is still pretty good fundamentals. but we start to throw more tariffs on the system, more uncertainty, you have to worry that's not going to hold quite as well. that's what our change in the fed forecast is about, that there is more of a hit to job growth as we go through next few months >> paul, you think you agree, you think business can withstand tariffs continuing to rise both against china and mexico >> no, they can't. and they made adjustments during the last year, maybe with the idea or the thinking that the tariffs were a negotiating ploy or would be temporary. but if the mind set changes, to the view that well, gee, maybe the tariffs are going to be lasting longer than we thought, or perhaps even permanent, then the supply chain rethink has to take a higher priority and that's when you begin to see higher costs in moving those supply chains and potentially even higher production costs as you move to countries with higher wages than china. so it is not entirely clear that

you can see those impacts right away but we think they'll build, especially if you see new and additional tariffs. >> bruce, corporate credit, high yield spreads prior to yesterday. how much is that -- of that is on your radar and how much of it depends on the price of crude? >> i think corporate credit is a big issue here we have a lot of leverage outstanding. we wanted to worry about recession risk, which, by the way, isn't our call here i think you need to have a credit story as part of it spreads have widened, but i think credit is still flowing pretty well. the backdrop for corporate fundamentals is still good it is not our concern right now. but it is certainly something to keep an eye on. >> if we get the cut, the rate cut that you're looking for, what does that do to appetites and corporate credit if you -- if some people believe we're already in excessive mode? >> i think we're in a world now where what's important, i think, is that the fed provides support for the economy, the chinese

policy supports, they offset the drags coming from the trade conflict and in that environment, business has bees u don't break. they can have access to credit where necessary. there is a lot of leverage in the system we're not looking for a big credit boom, but we're looking for the credit markets to be available to corporates to keep this thing from getting hit much harder >> paul, i'll end with you, given everything we just heard from you and bruce, are you changing the way you think investors should approach global equity markets and/or their approach in terms of fixed income versus equity >> we still like equities here, we do not think there will be a recession in the u.s at least in the next 12 months we have gone to neutral, however. we want clients to stay close to their long-term target allocation in march, we took a little money off the table. we're looking for an opportunity to put a little bit back in. we think that's how you're going to generate returns here not with markets that go straight up. >> guys, great discussion. really appreciate it very much

bruce and paul we'll see you soon amazon's new ai conference for machine learning, automation, robotics and space is under way in las vegas. and jon fortt is there he joins us now after speaking with amazon's worldwide consumer ceo jeff wilkie. jon? >> that's right. there are just two guys at amazon who report to jeff bezos and have the title of ceo. andy jassy, he's the ceo of aws. jeff wilkie is the ceo of almost everything else. amazon's core e-commerce, physical stores including whole foods, all of the logistics operations, that falls under him. he's been ceo of worldwide consumer for three years, his first broadcast interview. i wanted to talk to him about this environment now where regulators and lawmakers were talking about big tech and putting it in the line for questions about whether it has

gotten too big jeff wilkie talked about that mostly in the context of how amazon serves the consumer not necessarily how it affects the competitive dynamic. listen to what he had to say >> we think that all significant entities in the economy should be scrutinized that's not unusual our job is to constructive business and practices that pass that scrutiny with flying colors what we're going to talk about this week at remars is all of the investment we're making in customer services and services that we offer to developers and ai researchers all over the world to build products for customers and we think that's a great thing. i think you're going to get a lot of evidence this week that our business model is producing great things for customers and for the world. >> back to the competition question, because it is on a lot of people's minds, are there areas, things that you and the leadership team have determined that you won't do because you don't think it would be good for competition, even though it might lead to faster delivery or even though it might seem like the sort of thing that you could do to build the business

you just don't think it would be good for the competitive environment. >> you know, we're just focused on customers, really we are trying to invent things that customers are going to love, and that we think that's our primary job. and if we do a good job of that, customers will keep coming back to us. but it is too hard to predict what everybody is going to do. >> and we talked about a lot more including the progress of whole foods, the metrics he's looking at to gauge the progress of that business inside amazon, despite the fact that quarter to quarter revenue is up and down in whole foods we talked about a treatment of workers and the use of artificial intelligence across all of amazon's properties to drive efficiency and new ideas, some interesting stuff, got a lot more coming up in the 11:00 hour with "squawk alley" and we're going to hear from dave limb, also reports to jeff

bezos, senior vice president of devices and services, echo, alexa and so on. >> looking forward to hearing all that stuff, jon. wilkie sounded like he's channelinging bezos. they all say -- they all kind of pray from the same book, i guess, in terms of customer, customer, customer >> yeah. well, jeff wilkie has been at amazon for 20 years since late 1999, back when they had basically just four fulfillment centers. now they have hundreds around the world. so, yes, they have been reading off the same page for quite a while. >> jon, great stuff. important interview. we'll talk to you more later on today. when we return, regulating big tech congress preparing to call some top tech executives to capitol hill to testify. the former acting u.s. assistant attorney general in charge of antitrust will weigh in on breaking up big tech next. dow nghaing on to 120 points here back in a moment the lexus es...

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of focus on the actual law that would be used to potentially prosecute here or try to wage a successful case against a number of these companies. do you think that case can be made >> i think it is very possible that an antitrust case can be made, but you have to understand that antitrust law is not a general tool that can be used to attack big corporations or even economic power the antitrust violation requires finding both anti-competitive conduct which means conduct that doesn't really benefit the economy and the creation of market power as a result of that conduct. i think in all probability, if there are going to be violations, they will be quite narrow and specific violations involving certain kinds of conduct on peripheral aspects of the basic business models of the big platforms. >> a number of people want to try and draw parallels to the government's case against microsoft. there it would seem there was

potentially truly competitive violations that were more or at least easier to see. do you agree >> i'm not sure they were easier to see before the investigation began. the government has tremendous investigation powers to get evidence, see documents, take testimony, not only from the target of the investigation, but from third parties and after an extensive investigation, the government did come up with some substantial evidence of anti-competitive conduct by microsoft. whether that will happen in these cases remains to be seen >> what do you think is going to be scrutinized here, is it digital advertising or other parts of the businesses? >> well, i think the question will be did these -- in any of these companies engage in conduct that harmed competition? so could be aimed at competition in what might be called adjacent markets, for example, the allegations that amazon has somehow engaged in improper conduct to move into product

spaces and displace vendors that have been using its platform, or it could be aimed at the microsoft case was at conduct intended to nip in the bud threats to the core business the search platform inning google's case or the social network in facebook's case or the product platform in amazon's case the latter is less likely, but i'm sure the agencies will investigate that >> a lot of people say that it is going to be hard to build an antitrust case because consumers like these companies and provide services for consumers and we haven't seen much of a pushback against facebook or google when it comes to consumer choice. is that part of the argument or not? >> well, that certainly will be an argument. that's a very limited antitrust significance by the way, i think the consumer ratings now, facebook, are not that great certainly what you said is true about amazon and google but antitrust laws are not

concerned as some critics have i think mistakenly said with short-term consumer benefits concerned with maintaining a competitive environment. and those firms have been found in some particular respect with engaged conduct that could be found with antitrust laws evenr product. >> some people look at the acquisitions of facebook, instagram and google by youtube. they were both years ago and they were very small companies and they have grown into incredibly powerful parts of the overall companies. but say that there should have been more done then. shouldn't have been allowed to have been acquired do you think doj and to a lesser extent ftc should have had a sharper edge when it came to allowing certain acquisitions by these technology titans? >> well, perhaps so. though i'm not prepared to say that those acquisitions should have been prevented because i don't know the facts in great

enough detail. i do think antitrust law probably has been a little underenforced in past couple of decades and saw incremental adjustment in the laws are appropriate. but the challenge to those -- raised by those mergers are extremely difficult because you're taking small companies that do not compete head to head with the acquiring platform and you're asking the agencies to project whether the acquisition will nip in the bud a competitive threat on the one hand and perhaps be anti-competitive or on the other hand will enable the assets of the acquired company to be used in their most efficient and economically valuable way. that's a very difficult enterprise so even with some adjustments in antitrust law, it is not clear how many acquisitions of that type would be prohibited. >> and finally, you know there has been an argument made that the presence of these incredibly powerful platforms stifles innovation by stopping the flow

of capital that might normally go towards companies that conceivably would compete with them because there is just a belief that you'll get stamped over by any of them. is that something that could be part of an antitrust argument? >> i think the economic studies do tend to show that substantial economic power tends to be a detriment for innovation in part for the reasons that you said. antitrust law is not used simply to attack big firms, whether they're expressing their power by suppressing innovation or by increasing prices. but rather antitrust intervention depends on finding bad conduct by those firms that led to their market power and that's going to be the challenge facing the agencies. >> thank you for joining us. appreciate it. >> thank you when we come back, a few moments from now, walmart feeling the burn presidential candidate bernie

sanders pushing for a minimum wage increase at walmart's annual shareholder meeting we'll take you there get a check on the major averages at this hour. 2809 on the s&p. ind the dow hanging on to 122 pots don't go away.

welcome back to "squawk on the street." time for our etf spotlight many investors dumping stocks in may, first losing month of 2019, for the equity market. the fallout was evident in etfs across most major markets. spy down over 6% last month. and new figures showing that broadly stock etfs saw a record $20 billion in outflows during the month. corresponds to what we saw in the market action. >> for sure. meantime, democratic presidential hopeful bernie sanders attending walmart's annual shareholders meeting today. courtney reagan joins us with details on what we might expect this morning >> it was originally goinging to be a quiet meeting and turned into quite the opposite. bernie sanders are is -- has

been invited by an employee group to present a proposal at walmart shareholder meeting about an hour from now the proposal was filed by a walmart associate calling for hourly associates to have a seat on walmart's board the proposal wasn't filed in time to be part of the official proxy, but anyone is allowed to present a proposal, doesn't have to be a shareholder. so in this three minutes, sanders will also press walmart executives, board members and walton family members to raise wages. senator sanders has tweeted, quote, i know people who are in government benefit because the pay at walmart is that low and, quote, the waltons earn $25,000 a minute the average walmart employee makes $25,000 a year my message to the waltens is simple, pay your employees a living wage of $15 an hour senator sanders has a history of lobbying big companies like walmart and amazon to pay higher wages. last year you might remember the senator introduced the stop walmart act to prevent corporations from doing stock buybacks unless they pay workers at least $15 an hour

walmart says it will, quote, respond to specific shareholder proposals once they are formally presented. and, quote, if senator sanders attends, we hope he will approach his visit not as a campaign stop, but as a constructive opportunity to learn about the many ways we're working to provide increased economic opportunity, mobility and benefits to our associates the proposal for the board seat for hourly associates not expected to pass the founding walton family owns a majority of those voting shares. back over to you >> court, obviously few years ago they would argue they had gotten in front of all of this how much of that are they likely to employ as an argument later today? >> exactly, carl so they raised their minimum wage two times since 2016, going from $7 to $11 an hour for the starting wage and walmart area ceo told us in april, when you put it all together with our pay, with our benefits, the average hourly pay is actually

$17.50 i imagine those are some of the figures that they're going to come back with today but this is going to be interesting. i've been at shareholder meetings from walmart for many, many years i've never seen something like this before with the democratic hopeful presidential candidate presenting one of the proposals. but they say he'll be treated just like anyone else, gets three minutes to make his case >> courtney, thank you >> when we come back, president trump continuing his tour abroad while at home, mexico's foreign minister is in washington today, meeting with secretary pompeo over those tariff threats. we have the latest for you plus, it is this morning's magic number, $80 million, we'll tell you what ceos are selling and buying homes for that hefty price tag. one ceo in particular, "squawk on the see wtrt"ill be back. dow up 129

welcome back, everyone i'm sue herera here is your cnbc news update at this hour. president trump meeting with veterans following the 75th d-day anniversary ceremony in portsmouth, england. the president read a prayer that franklin roosevelt gave over the radio during the normandy landings. >> i would think that it will happen, and it probably should happen this is a great, great country and it wants its own identity. it wants to have its own borders. it wants to run its own affairs. this is a very, very special place. and i think it deserves a special place. and i thought maybe for that reason and for others, but that reason it was going to happen. >> our apologies that was not the correct sound bite there moving on, chinese president xi jinping meeting with russian

president putin in moscow as part of his state visit to russia putin saying xi's visit was a key event in the relations between the two countries. xi says he was happy to be there. the operation to retrieve the bodies of five climbers is under way. they were photographed by air. the climbers went missing on the himalayan mountains, a team of experienced indo tibetan police are carrying out the search. all eight climbers are presumed dead you're up to date. that's the news update at this hour back downtown to you, carl >> sue, thank you very much. meantime, vice president mike pence spearheading talks between mexico and the u.s. today. in an effort to come to a resolution over the president's proposed tariffs meanwhile, the white house facing some pushback from the hill, republicans warning the president that there will be no support for the new tariffs on mexican goods. joining with us more today is former u.s. trade rep ambassador

karla hills. >> nice to join you. >> peter navarro on the tape this morning saying tariffs on mexican goods may not have to go into effect, quote, because we have the mexicans' attention do we? >> well, i think we have the world's attention. i think people are very concerned about leveling taxes against our southern neighbor. we haven't asked what are the cause of this migration coming north, and tariffs aren't going to deal with the basic causes. >> how do you think the mexicans are going to respond beyond coming to d.c. for these talks >> i hope there say rational discussion about the causes for the migration which the u.n. says is over 80%, poverty, economic issues, and from that comes violence and to develop a plan to deal with that. keep in mind that in 2015 our

nation had a program to help central america deal with both of those issues. and the present administration has cut the budget down more than -- from about -- below $1 billion. it is really remarkable as the need goes up our help goes down but if we sit with mexico and try to develop a plan, i don't think we have told mexico what it is we hope they would do with us but believe me, you can't handle border issues without accommodations among the people on both sides of the border. >> politico has a piece today about senator jim langford, they say in a meeting, they say this administration is trying to use tariffs to solve everything but hiv and climate change to what degree are -- is there a legitimate use of tariffs to solve things that are beyond trade. >> well, tariffs are not going to fix the poverty in central

america. nor is it going to correct the violence in central america. i think you need to have a plan. what could we do to assist a transfer to more rational governance and we did have a plan but we're not carrying it out. and we do need mexico to work with us. we're worried about our southern border you cannot handle the border without a partnership on both sides. >> ambassador, so the president might argue in this conversation that the tariffs are worth the cost and if the cost becomes too great for businesses, then they should look at moving production back to the u.s., or to other places is that realistic? >> how does that deal with the problems in central america. if the problem is to talk to u.s. companies about where they're doing business, that's not an issue that deals with central america. >> well, he's made it about

both yes, he's made it about stemming migration absolutely but he's also made it very clear in tweets that tariffs also incentivize american companies in his view to bring business back home. >> sounds like it violates the usmca where we're eliminating or maintaining zero tariffs with our northern and southern neighbors and that we have increased increased our trade by some six fold. and we have more than 2 million jobs connected to that trade so i'm not seeing the connection between putting tariffs on because mexico is not stemming migration, and increasing it from 5% all the way up to 25%. and trying to put -- giving us credit for creating jobs back home >> finally, we haven't mentioned china much

president xi's in moscow, meeting with putin i wondered to what degree you think our strategy with china has been paying off, if at all >> again, i'm a great believer in sitting down at the table and negotiating. the more you know about the political problems, the historic problems, and the economic problems of the party across the table, the better you can come up with a plan that handles their issues and your issues at the same time. in short, create a win-win situation. and i think we could do that china's economy is slowing the things that we want it to do to abide by national treatment, that will bring in investment, nondiscrimination, that will bring in investment, that will create jobs in china and if we can get china to abide both of those conditions, i think that would be a big plus >> why g-20 will be a big event,

obviously, madam ambassador. please come back always love to get your insight. see you soon karla hills. >> thank you when we come back, two $880 million dollar deals in manhattan. and check out crude oil, a tumble after the weekly data shows a surprise inventory build. now down 2.6%. energy worst performing sector on the s&p, which is still higher, but off the highs. "squawk on the street" will be right back this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do.

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one top technician says there are three big tech stocks for a rebound. more "squawk on the street" coming up. johnson & johnson is a baby company.

but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. breaking ipo news, peloton says it has confidentially

submitted an s-1 with the s.e.c., signaling its intention to go public number of shares to be offered and the price range for the proposed offering have not yet been determined. we should note nbc is an investor in peloton. interesting, one of the more high profile names, david, to come to market, if it does. >> not about the bike. it is a subscription service that is the key for the sort of the cash flow metrics of the business and the content, i guess, yeah >> they shoot a lot of video let's say that using some very experienced tv producers. we'll watch that meantime, couple of $80 million real estate deals in manhattan robert frank joins us with the latest on that. >> rare good news in manhattan real estate. one involving the world's richest man and the other involving a man better known for losing as well jeff bezos working to buy throw adjacent apartments off madison square park. the apartments cover the top four floors and if you combine them, which he probably will,

the apartment would total 17,000 square feet. it would be the most expensive deal ever in downtown manhattan. the main benefit is the outdoor space up at the top, it is actually hidden from public view with a brick wall. so he has a lot better privacy there than some of the new co o condos with the big windows. the wall street journal reporting that a townhouse owned by former hedge fund billionaire phil falcone sold for around $80 million. he bought the double wide townhouse for about $49 million in 2008 from bob guccione, who founded penthouse magazine falcone and his wife expanded the property to over 30,000 square feet. he added a bigger pool and movie theater below ground this would be the most expensive townhouse ever sold in manhattan, falcone made billions in 2007 and fell off the forbes list after getting into regulatory problems and making

wrong bets with the funds. so far, the buyer of falcone's house has not been disclosed he also is trying to sell a smaller house on the same street that he also owns for $29.5 million. we'll see if he gets that. guys, back to you. >> robert, we were just having a discussion here off set about whether some lucky real estate broker actually gets a chunk of that bezos sale or whether they just negotiate the commissions all the way down do you know how it works >> in this case, there are four brokers on the sell side, one broker on the buy side and i'm guessing with 80 million they probably negotiate it down, the usual percentage to one or two percent. but clearly there are a lot of happier and wealthier brokers today on both of these deals at a time when the manhattan market is -- at a time when the manhattan market is really tough. they love this deal. >> is falcone moving to puerto rico or low tax place?

what is his plan here? we have any idea >> he had this place, these were the two houses he had on e 67 street it is unclear where he's going to move. he's running this new company now. i suspect that company is based in manhattan or he's based here, but no plans yet on what he's bought or where he's going to live at for this >> right never know who those buyers are. they always do those limited liability companies, can bezos -- does bezos have a view of long island city? >> i don't know if he can see long island city you can see the cross bronx expressway from there. which is a gorgeous view >> really? >> yes. >> cross bronx, no, no he's downtown. >> the big qe, the big qe, yeah. but i don't know about -- lic, i don't think you can see that far up. >> too bad. >> at least he went downtown that's cool. >> good for that neighborhood. >> absolutely. robert frank, thanks. to bob pisani at the sandler o'neil global exchange

conference sitting down with a special guest. good morning, bob. >> we're here with all the heads of the exchanges and the brokerage firms trying to figure out where business is going, global trading what is going on with crazy markets joe moogly, chairman of td ameritrade, nice to see you. i got to start with the markets. an ugly may, down 6% in may, a lot of outflows. you have, what, 12 million customers out there. what are you flaring your custom -- hearing from your customers now? >> i have very much believed the retail -- a lot of people talk about the markets driven by the institutional retail investor but they're not. it has been a lagging indicator in terms of what goes on when they should be trimming, added cash, they should be buying things, on weakness, they are coming out of the market the retail investors change over the last year or so. we had -- hopefully a lot of

lessons they have learned. i think part of this is the tariffs as well. so if the tariffs work out, going to be tremendous amount of upside, people want to make sure they still hold on for the position so they benefit from that but they're no longer doing that -- we see our clients trimming into strength and moving that monday into fixed income >> that's why the -- that's why the -- are going down. i'm surprised how negative the sentiment is here. these are people that watch all the bit, the retail and big professional business. this could affect trading going into the rest of the year. are you gaining a sense of that from your clients? >> i think there is -- they don't have the energy that they normally would have had with regard to, like, a positive market, a positive rally the issue is that the biggest problem in the marketplace is uncertainty? i don't know how you get a bigger blanket of uncertainty than what is going on with the

tariffs. >> i want to get into your competent tiritio competition, the next gen investment people, they have been presenting here, the millennials are flocking to us, we're getting business, those are your people too. are millennials investing differently than the baby boomers? are you pulling them in? do you have the resources to continue to grow that kind of business they seem to think they're getting the business. >> well, yes, they're different from the baby boomers, but, yes, we're getting -- i think more than our fair share of that. 40% of all of our new accounts are millennials. 40%. now, how do they invest differently? they don't have as much money. number two, they very much evolved with the technology. so i don't know how much they learned, you don't have that much experience. >> race to zero fees, that's something that we go to race to zero on etf fees, race to zero commissions that are out there you're feeling that kind of pressure where do you get the money now

to continue to make profits and grow and invest? >> assuming -- well, number one, i heard about zero commissions back when i first started 2001 and hearing about it today i think the last 15 or 16 years, seven rate cuts. when you have a rate cut, what you're hoping is you get much greater market share the reality, that's not the case you bring the price down, everybody matches you, and you still maintain the same market share but making less money. there is a common sense element, that's one two, the second piece of that is the way to offset issues with commissions is assets under management we have got $1.3 trillion in assets under management now, that's the best -- i can't imagine a better with a eter wa zero commissions than knowing how to manage your asset base. >> china is very much in the news here. there is chinese brokerage firms that want to open businesses here not quite yet, but right there on the horizon is ameritrade interest expanding into china you're a small operation right

now. >> we already have we think that's an important -- if i'm the chinese brokerage firm, i don't know how i would not want to be invested in the united states. and it makes sense for us to be well aware and have some exposure there that willio over ti grow over o one of the rare people out there, announced you're stepping down from a storied football career, really successful in two difficult fields, finance and football give us 20 seconds on what they have in common and what can you tell people about what it takes to succeed >> the leadership, the product is different the product and the financial world is not the product of football but the principles to be a leader, how you handle yourself under stress, how do you inspire your people, motivate them, how do you have a clear thought out strategy you can articulate and monitor how you lenl late, those principles are identical in the world of finance and football. that doesn't change. >> one of the great legends in both areas thank you. i've known you many, many years.

>> thank you, bob. >> great to see you. >> i know you're stepping down from the great football career congratulations. >> thank you. >> carl, we'll be here all day back to you. an good stuff, bob "squawk on the street" will be right back [ alarm beeping ] wake up!

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welcome back to "squawk on the street." i'm kate rogers. stocks are hitting fresh lows and we're seeing some relative strength in defense sectors like utilities while tech stocks continue to rebound after monday's sharp sell-off. let's drill down on the financials off by half a percent the after posting their best day of the year. falling yields in focus after the weaker than expected private sector jobs data that's dragging down shares of names like key corp, regents financial and svp financial. back downtown to you guys. >> and i will take it. thank you. all right. sara, today you've got a story involving carlos ghosn and the future of renault in the talks with fiat chrysler. >> interesting interview coming up new developments in the saga just today as french automaker renault is recommending new legal action in the netherlands against ghosn linked to more than 11 million euros in

expenditures last night i spoke with carol ghosn. she is the wife of the embattled former chairman of renault and mitsubishi and claims her husband's arrested were tied to a conspiracy by nissan's board to avoid a potential merger with renault. >> we know it's a conspiracy nissan did not want this merger. few people within nissan decided to get rid of my husband, that was the easiest way not to do the merger it didn't have to be there was maybe a more civilized way of doing it. >> and now that you see the proposed fiat/renault merger what do you think? >> it's clear how nissan doesn't want to be involved and they want nothing to do with it i think with time we will see more clarity on the story and people now realize that this was a conspiracy against my husband. >> of course we reached out to nissan for a comment on the claim of conspiracy.

a spokesperson said the sole cause of this chain of events is the misconduct led by ghosn. we'll have much more from that interview including mrs. ghosn personal account of her husband's arrest, her plea to president trump to get involved. she is an american citizen coming up on "closing bell." some of the details are really crazy the way he was arrested and rearrested she was there for the second time not to mention, you know, her whole theory about what nissan was doing turning on him and now seeing the french government and the japanese government backing potentially this merger. >> wow we'll tune in for that, sara that's this afternoon. when we come back the ceo of amazon's worldwide consumer division devices and services, s&p trying to hold on to a point. we're back in a minute

good morning it is 8:00 a.m. at amazon as mars conference in las vegas, 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ pump it

♪ pump it ♪ louder ♪ pump it ♪ turn up the radio ♪ blast your stereo good wednesday morning welcome to "squawk alley." i'm carl quintanilla with morgan brennan at post nine jon fortt live in las vegas from amazon's conference where he sat down with amazon worldwide ceo jeff wilkie and soon be joined by the svp of devices and services, david limp we look forward to that. fang names, mostly lower today as the fight against big tech continues. the house judiciary subcommittee says the leaders of major tech companies will be asked to testify on the hill. it comes as google, facebook and amazon are facing greater federal anti-trust scrutiny.