it is 5:00 a.m. here at cnbc headquarters we are live in washington with more straight ahead. well, there's the beef the hottest ipo of the year sizzling in its first-ever earnings report. we'll have more on beyond meat's big beef we are hours away from the monthly jobs number. could this be the number that seals the deal for an interest rate cut big blue going pink. pink slips and job cuts coming to ibm and walmart upping the ante in the delivery wars. forget about the last mile

the world's largest retailer wants to take it the last inch we'll explain on this friday, june 7th, as "worldwide exchange" begins right now happy friday i am brian sullivan. well done, beyond meat look at that the stock soaring 20% right now. this after its first quarterly number since going public. we're going to go behind the bun to give you more on why investors have been buying the stock in force today wow. look at the number up nearly 400% since the ipo we'll get to that in a minute. but first let's go beyond the border we are following two major dwobing stories on the trade front. first to mexico where the clock is ticking towards the tariff deadline

leaders are expected to meet again today to try to hammer out a deal in the meantime, you're also about to hear from china's president for the first time since trump threatened another $300 billion in chairs on that country. as always, we have team coverage on both these stories. geoff cutmore is standing by in russia that's where china's president is about to speak. but let's begin on where things stand with mexico and nbc's tracie potts in nbc. >> reporter: good morning. things are up in the air as the president returns from europe and negotiators begin day three of trying to figure out if they can come up with an immigration enforcement plan on the mexico side of the border that will convince president trump to back away from this 5% escalating tariff that's supposed to kick in on monday president trump in an interview overnight saying it's the democrats, lawmakers who are making his negotiation tough but that the u.s. is going to make a lot of money off of this. financial experts disagree they think consumers will get

hit and it could throw us into recession. one of the latest things on the table is 6,000 mexican troops headed to the guatemalan board tore try to stop those caravans before they come through mexico. both sides continue to say they are optimistic but as you see, the clock is ticking toward that monday deadline and there is no indication so far that these negotiations will actually stop those tariffs from happening. brian? >> and they are coming on monday and the clock literally is sticking tracie potts, thank you very much now let's get to cnbc's geoff cutmore. he is covering the forum in russia because that's where xi jingping, a man vladimir putin called his best friend this week, is set to speak. geoff? >> reporter: brian, this is all about the visuals. those important meetings between the two presidents which were essentially photo opportunities for the benefit of washington.

just to remind the united states that china can sell its products elsewhere. and of course russia which is still on the sanctions naughty step wants to demonstrate they can also find other markets for their energy and other goods i guess the key point here is there was a deal announced on huawei the russians have said they are willing to look at putting in huawei systems to build their own 5g here in russia. again, you get the feeling that this is a message very much directed at the white house. so we are just a few hours away from president xi and putin taking the stage here and we are looking forward to hear whag the chinese president has to say on the trade story. back to you. >> geoff, what is the timing we know it's much later there so when will xi jingping be speaking >> reporter: it's just after noon here in st. petersburg.

we're expecting the session to kick off at 2:00 such is the way of these things and i've been coming to these events for the last decade it'll probably start late. it'll probably overrun so expect some time within the next three or four hours that we will get some of those headlines hitting the wires. because i don't think the chinese president wants to miss an opportunity on this kind of stage to make some comments that will be picked up in washington. >> geoff cutmore in st. petersburg, russia, always a pleasure thank you. this next piece of news falls into that framework. new reports this morning that google is warning the trump administration that if it moves ahead with sweeping bans on huawei, it risks compromising national security here according to the financial times, google says if it is not allowed to update its android operating system on huawei

phones, it could prompt china to become more self-reliant and that could cause them to develop their own version of the software which could be more susceptible to hackers this news comes as facebook is reportedly halting all pre-installations of its apps, instagram, what ts app on phone. joining us now is tim stratford. he's a former assistant u.s. trade representative it's a pleasure and a perfect day to have you on what is the status of being an american company in china right now? >> i think the overwhelming feeling that people have is one of uncertainty it's not so clear that the two sides can come to an agreement even if they do come to an agreement, it's not so clear they could implement it very smoothly and even if they can implement it smoothly, it's not so clear

there might not be some other actions in the bilateral relationship that would still undermine the business environment for doing business and so we conducted a survey together with the shanghai two or three weeks ago and we found that 40% of our companies are either moving some manufacturing outside of china or they're considering doing so. so i think uncertainty in trying to do risk mitigation is on people's minds here. >> four out of every ten companies is looking to get out either all or in part of china >> they're looking to do at least some change, yes, so susceptible to things that might continue to unfold with the bilateral relationship that would affect their business. >> they're given the indication that if the trade fight is settled, they would change their plans. or are they going to leave anyway >> well, the problem is even if we can reach agreement and of course we hope that they do, we

think implementation will still be challenging you know, the u.s. government has a list about five pages long single space of items that i think have been agreed on economic matters before. where they feel that the chinese government does not follow through on their commitment. even if we get an agreement, there's an underlying sense that implementation could be a problem. and we have other issues in the bilarp relationships that flow into the economic relationship and the huawei matter, huawei being put on the entity list is a great example of that. that puts a lot of uncertainty into supply chains and so on and there's concern that china has also come up with their own list of unreliable entities. and we don't yet know how that's going to unfold. it's hard to see how in a short period of time the u.s. and the chinese governments will develop so much trust and so much understanding on how to deal with these issues that these risks will go away any time soon >> so what's the takeaway then

what do we do? we know a lot of companies are thinking about leaving they've got a negative impact on their business they are rightfully frustrated whap do they do if this continues on if there's no short-term solution, tim? >> well, i think the business community -- our message to both governments is the bilateral businesship and the bilateral relationship overall is extremely important to both countries. and we shouldn't resort to quick fixes to try to address the problems that would be relatively clumsy. instead, both sides should be very thoughtful and find solutions to each side's legitimate's concerns that nevertheless create a predictable business environment that we can still do together. that's very much in the interest of both companies. and so we're urging both sides

to be very thoughtful. the chinese market is very important to american companies. it's a huge market and if you don't participate in this market, your global revenues will be significantly reduced. you won't have the revenue to do the cutting edge r&d you need to do to stay ahead in your industry, most likely. and chinese investment can make an important contribution to the u.s. economy as well in addition, we think that students going back and forth and other times of cultural exchanges are very important for these two countries to be on the right track. and right now we're in the position of both countries are taking publicly are moving in the wrong direction and won't make settling things so easy and these are things that can be settled if people are very thoughtful on both sides. >> will are we seeing a rise ofn china populism

>> well, first of all, in china for china has been an approach that american and other foreign companies have taken for a long time not just because of nationalism, but because i used to work in the auto industry. auto makers like to manufacture and supply a manufacture base in countries where they do business because they can be more efficient and responsive to domestic needs so a lot of companies -- the chinese market is big enough that it merits thoughts from a company what's the most efficient way to supply that a lot of companies have done that to the extent that's your strategy, you're somewhat immune from tariffs and what each character may bim posing on each other. what we're most concerned about now is if you're sitting in china and you don't really hear a full articulation of what the u.s. interests, it's easy for people here to get the feeling that china is simply being

targeted by the united states. that the u.s. government's objective is to contain china's technological development and the u.s. t hasn't done a great job of rebutting that with a comprehensive strategy explaining what it's doing and hold out an olive branch >> tim stratford, great on the ground intelligence and insight for us here. we appreciate it thank you very much. all right. now from a trade beef to fake beef shares of beyond meat have certainly sizzled since the company went public last month they made early investors more than 300%. and that stock set to pop again today. >> i like what you did there trade beef to fake beef. all right. beyond meat giving investors a lot to sink their teeth into had the maker of plant based burgers with its ipo on may 2nd.

the net loss widened, but beyond meat said it could break even this year and see sales more than doubling. it also calls that forecast conservative because it doesn't include deals with restaurants and other companies that haven't been signed just yet also doesn't include contributions from deals that are still in the trial stage tim hortons, for example, they just launched a test of breakfast sandwiches last month. beyond meat is up nearly 20% in the premarket. and shares of this company have jumped about 50% in the past month. jpmorgan one of two analyst firms bullish on the stock they're raising the price target from $97 to $120 a share saying the company's ability to expand margins is being underappreciated so apparently more to go, brian. >> the only question that matters. have you tried one of the burgers? what do we call them burgers? >> they're a plant based burger. little known secret is i'm a vegetarian so i have had them.

i really like them none of this is shocking to me >> i have some bad news. this is a global show. you just revealed your secret to the world. >> well, it was time. >> well known secret >> yeah. >> thank you very much tough news for ibm on a friday many workers today will get pink slips at big blue. company will lay off 1700 employees. the move follows the deal with red hat. ibm shares are lower now to $131.80. remember this was a $200 stock just six years ago a busy hour ahead on "worldwide exchange. when we come back, we are going to 10 downing street where it is theresa may's last official day as prime minister. plus on the road to el dorado. two iconic casinos inking a

deal and later, much more on your stock of the day we just talked about. beyond meat cooking. we'll speak with an investor who got in early we'll ask the he thinks the company can meet booming demand. we're going to leave you with a little gold on the ceiling by t e black keys wee back after this. andma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

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nice shot of hong kong maybe some cocktails being poured on a friday evening it's about 5:17 p.m. there 5:17 a.m. here welcome. today marks the end of an era in the united kingdom prime minister theresa may officially stepping down as leader of the conservative party today. willem marks is live with what to expect from may's last day, kind of. willem >> reporter: brexit is what brought this woman to this building brexit brought her down as well. you remember in june 2016 that referendum result went against david cameron. she took over essentially unopposed of the conservative party. she called an election she lost her governing majority. ever since then, she's struggled to get her brexit deal through parliament she's tried and failed three times.

she's essentially throwing in the towel. what we can expect now is 11 different candidates from her own party, members of parliament, some of them ministers and former ministers competing to try to replace her. they have a range of views on what the country should do in terms of brexit. but there's not a huge amount of clarity going into this process. the deadline now is october 31st there's a potential for hard brex it. some of those are saying they're prepared to follow that path if it's the only way to get them out of the european union. >> it's her last day as leader of the conservative party, but your country still needs a prime minister, willem she stays in office i guess for now. when is the election when will there actually be a new prime minister of the united kingdom? >> reporter: so next week all of these conservative party candidates will begin the process to find a winner, essentially, find a replacement for her. that will be a series of

ballots. there's 11 of them now they've got to whittle them down to two the final two will then be voted on between the end of june and end of july around the country and once a winner is picked there, theresa may kind of has to decide whether that person has a majority in the house of commons. and you may remember, the conservatives don't themselves have a majority. they rely on a small northern irish party to get more than half the seats in parliament going their way. and there's a chance that whoever replaces theresa may as leader of the conservative party will not necessarily have the support of that smaller northern irish party. >> i wish you guys just had a date like we do. on november 6th or whatever there's an election. willem, we're glad you're there. thank you very much. still on deck, from bad to worse. why a rough few weeks was only the beginning for one formerly hot technology stock plus, why beyond meat isn't the

only recent -- we'll give you another stock set to pop on this friday as we come back in less than two mut ines

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that could take 2-dimensional patient imaging and convert it into 3-dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. when we first started, we felt like this might just not be possible because computing power just wasn't there, but verizon 5g ultra wideband will give us the ability to do this. we won't rest until we see this technology being able to change lives. all right. good morning welcome back happy friday stock futures now up 100 points. been a great week for the equity markets. looks like its might continue today. i mean, amazing. what a difference a month makes. june so far has been terrific.

all right. let's get a check on some of the big stocks you need to watch today. number one caesars. they are nearing a deal to merge with el dorado resorts "the wall street journal" reporting the cash and stock deal could be announced this month. terms right now unclear and it is still possible that another suitor could emerge for caesars. shars of zoom video zooming today. reporting better than expected earnings and revenue also gave upbeat guidance. shares up 13% right now. but your disaster is docusign. the company reporting a wider than expected first quarter loss billings rose 27%. the dow is below analyst estimates. company citing a longer sales cycle. all right. let's get a check now on this morning's other top headlines outside of the world of money and business

phillipm phillip mena has thoughse >> speaking exclusively to nbc's cou courtney cubie said the biggest threats are roadside bombs, short range missiles, and drones probing u.s. bases in iraq and syria nearly every day a new salvo in the viegt against these annoying robocalls. allowed cell phone carriers to start automatically blocking by default. but it could cost you. as of now, the plan doesn't prevent carriers from adding more fees to your phone bill to stop those robocalls before they ring designs for a proposed rooftop infinity pool in london raising a lot of questions like how do you get into this thing the designer says they didn't want anything to obstruct the view, so a retasing spiral

staircase will rise from the pool floor when a swimmer wants to get in or out using an air lock system. and camera system is going to replace life guards. although i've never seen a camera perform cpr i don't know how they're going to do that >> the camera is going to replace a human life guard so somebody's not doing well, the camera is going to be like, hello, camera not doing well >> they don't want a life guard obstructing the view >> yeah. we'd like to not obstruct drowning, i guess. all right. >> priorities. okay >> phillip, thank you very much. on deck, the stock of the morning and maybe the stock of the year investors saying well done to beyond meat. but where does it go from here we'll speak to the venture capitalist that got in early

how about the last inch? what walmart wants to do that you're going to either love or say no way plus could it be the number that forces the fed's hand on its summer rate cut? why the uneventful jobs number just got really interesting with the always interesting danielle di martino booth. she's here nex t.

beyond belief. the hottest ipo getting hotter today. but was beyond meat's quarter all sizzle and no steak? will this be the number that finally forces the fed's hand to cut rates? and would you let a random person into your home and maybe into your fridge that's what walmart wants to do. you're either going to love it or say no way. it's a story getting a lot of buzz and we've got it as "worldwide exchange" rolls on right now. ♪ teleprompter says that music is a big hint to walmart's plans but i don't understand it either welcome back to "worldwide exchange" on cnbc. i'm brian sullivan happy friday it's a new month and it feels like an entirely new market. remember may everything was selling off everywhere i mean, literally everything

well, guess what we are on pace right now for the best week of the year for stocks and it could get even better. dow futures up 102 points right now. and we can finish the week strong assuming futures stay where they are and the jobs number maybe comes in stronger or comes in weak and put the fed more into play by the way, the bond market which has been a big story for stocks this year the 10-year yield at 2.12% of course today the big number today is going to be the jobs number first friday of every month we do it, it's the monthly jobs number and the magic number to watch is 180,000. that's the average estimate of the economists we've surveyed. they think the u.s. economy will add in jobs next month or this month. or last month. let's bring in danielle dimartino booth. i'm trying to hedge that like if the number's bad, is it good

because it makes the fed rate cut maybe even this month inevitable >> that is really good right now. it is all about june this week has been orchestrated. it's been orchestrated, choreographed, no matter how you slice it jerome powell comes on stage after that the first paper out of the gate at the chicago fed conference said the last time we had a downturn we had only negative 5% interest rates, things would have been that much better in addition to qe the stage has been set yesterday before john williams spoke, hit with a story that said june rate cuts on the table. >> you knew where i was going with this. >> these are not -- there's no such thing as coincidence. you don't have a headline that says it might be june. it is possibly going to be june especially if this morning's number is weak >> so that's what i was going to

do i was thinking about -- so danielle you're so smart and great. how can i make it interesting because you make it interesting? this is what i thought i love "the wall street journal. i thought this is like the fed's sources to "the wall street journal" reporter. here you go. you know what i mean >> that challenger number was really weak. maybe june on the table. >> was it a plant? >> it feels like it. and it's a matter of public knowledge because it's in my book but they have always had a cozy relationship with "the wall street journal." i'm not saying anything out of hand and i don't think it was koi coincidence it hit when it did >> how about this. do we need a rate cut? >> how about this? what are the markets going to do if they don't get the rate cut we've got three rate cuts priced in >> but do we have to get a cut in june? >> i think so. >> there's many more the meetings this year does the market sell off in. >> thanks be to god we go into

fed blackout on monday what if the market prices in a 50%. we're not far. we're at like 33% chance of rate cut in june. while they're in blackout and they can't say anything by june 19th do they defy markets they did that in december. how did that work out for them not very well. they laid the ground work. they did it in chicago kind of confirmed it and i think that they are ready to go. the problem is -- >> i'm going to ask it again do we need a rate cut? >> well, you know, 11 months of increasing layoffs and they moved from retail armageddon into the biggest job cutting sector in may was in technology and then followed by industrials and automotive >> high paying jobs. >> we had three months of automotive production cuts all of 2018 saw retail and autos

decline. they're propping up the number with fleet the american consumer is telling you we need a rate cut >> but is lower rates going to solve that problem >> no, of course not >> it's not going to set the economy on fire. >> it wasn't the price of money in 2000. the worry is when you've got niemann marcus pricing a junk bond at 97 cents on the dollar which by the way it was at 100 last i checked then trades next day down on 86 cents on the dollar then they come out of the gate at this big conference in chicago and talk about rate cut. >> is the fed going to do trump's bidding? >> it's not about that it's about bond market liquidity. >> are you sure? >> i'm very sure but it will look like they are which is terrible optics >> danielle dimartino booth, thank you. who books a flight at this hour? >> who wakes up at this hour >> us.

thankfully you do. thank you very much. danielle, we'll see you soon all right. switching gears. call this an earnings sizzler. shares of beyond meat up 24% after delivering their first earnings and scoring public. topping estimates on the top and bottom lines they also predicted sales are going to more than double this year even before this morning's expected move higher shares of beyond meat have skyrocketed since their ipo back on may 2nd compare that with the likes of uber, lyft, pinterest and others zoom is up 121%. but beyond meat and fake burgers, up 300% not including today. joining us, an early investor into beyond matter my first question, ki have some money? because you were one of the first ones congratulations.

>> thank you >> to what do we ascribe -- i have been critical and i said beyond meat didn't put out enough stock 57 million shars the reason the stock is up is because the float is so small. >> no, i would disagree. i think may 2nd was an epiphany moment for the industry. we witnessed 33 million cows rejoice. they called their brokers planning for retirement because they're going to have a life beyond two or three. >> that's just ridiculous. they don't use phones. they use email beyond meat. their success is so great. but yet they're saying we don't know if we can meet demand why should we own a company that says we don't know if we can have our customers >> you had consumers going into their retailers in grocery stores hording product when deliverying were made. but you got a smart management team they've taken the right moves. they're planning for future exkpangs they know how to meet demand going to be continuing to watch

gross margins. i think the gross margins reported yesterday at 27% were quite remarkable if you weigh that against other traditional animal meat products in the grocery store, you see high single digit gross margins. maybe low double digit margins if it's a branded product. here we got a company that's going to have growth margins in the mid-30%. >> you've got impossible burger, nestle coming out earlier this week the stock doesn't hit in the news nestle thinking of coming out with a plant based burger. can beyond meat survive competition? >> i think they're the market leader in my opinion, i think they have a more remarkable product than competitors. and you have tremendous upside in the stock we're going to hopefully see more chains adding beyond meat in the next year you can see analysts talking about this company having a billion-dollar run rate going into 2021. >> why not release more stock?

i did a comparison a couple weeks ago in the show. most companies have 150 to 200 million shares outstanding this has 57 million shars of stock. why not release more stock >> you're going to finance what you need at the point in time. any founder or inside team is going to manage. so they finance what they need they're looking at their capital requirements and they're also managing that against the backdrop of future profitability. >> are you even surprised? you were an early investor, but kind of response you got in before and after? >> i bought before the ipo and i invested last year and i even increased my position by 50% personally >> and you're holding on >> i'm still holding

yeah >> beyond meat >> it's got a remarkable future. >> they're going to be able to increase production? >> yes i think they'll be able to increase production. i think wall street has forecast light for this year. i think you got most analysts talking about a $210 million year that can come in closer to 250 and i think next year's numbers are going to have an upside. >> greg smith, congrats by the way. that's why wrour in the business >> i'd rather be lucky than smart. coming up, how walmart is looking to tackle the final feat literally of in-home grocery delivery break out the expra place setting. maybe somebody new is coming to dinner then a $500,000 personal foul last night's nba game. but it had nothing to do with a player o u t stoee stick around

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none of those other sites do that. from end to end, true car is your only one stop solution. welcome back 5:43 dow futures up 90. could be the best week of the year for stocks. but let's talk about what else you're talking about today your top trending headlines. what are we going to be talking about today? >> walmart and the nba let's start with walmart soon they will delivery groceries to your fridge customers will have to install a smart lock on their door a walmart employee will use a one-time code to enter your

home the delivery person will also wear a camera so you can monitor the process remotely they will start testing the service in kansas city, pittsburgh this fall what do you think, brian i think i already know what you think. >> letting somebody into your home i can see potential issues >> of course >> there's a lot of great people but i don't know would you let someone you don't know into your home? >> my first reaction was no. when i troo i to have these food delivery services because as i mentioned i'm a vegetarian >> you're a what >> a vegetarian. >> how does that work? >> we're not getting into that now. that was for the commercial break. when i try to have people deliver things to my house, i'm never home so i probably would do it just for pure convenience. >> fair enough >> the nba is banning mark stevens from attending nba games. apparently he shoved kyle lowry. this happened after the player

crashed through the front row chasing down a ball. stevens who was seated courtside is a minority owner of the warriors was ejected from the game and will be banned for one year and will have to pay a fine of 5 hurkds$,000 which is no small amount >> is there an -- you should never touch a player, i get it but i'll take the other side he kind of did this. the headlines read shoves a player he's kind of -- >> i watched it closely. he didn't fall into him. so one, why did he put his hands into him and lowry says he was yelling profanity. what's that about? >> i think that's it just being nasty just nasty >> there's no place for nastiness. >> no. that's it. >> all right thank you very much. we're going to go from one game to another. the st. louis blues beating the boston bruins in game five of the stanley cup finals the blues now lead the series 3 games to 2 one more win and the blue wills take home their first stanley

cup ever sunday night on nbc. you go, st. louis. on deck, we're nearly halfway through a wild 2019. and if you got whiplash from all the big market movers this year, don't panic. your next guest has a mid-year road map and names to own to help you navigate the switch plus you'll never believe what the hottest economy in europe is one of the hottest in the world. do you know? he cinupguesses. weavitomg the ai i need? it's gotta scale across my business. starting here, in procurement, helping us find the right suppliers. then here in logistic, to avoid disruptions! here in sales. even here! i'm talking about ai we can build to work... here, predicting trends. and here, wherever our data lives! and here, working with all our other ai! i think we're done here. expect more from ai. ibm watson.

♪ ♪ applebee's new loaded chicken fajitas. now only $10.99.

all right. welcome back dow futures up 88 points right now. stronger portfolios for turbulent times. that is the title of citigroup's mid-year outlook and if you're thinking of taking some money off the table, you may want to think again. joining us now is steven whiting from citi private bank

i had all these questions prepared for you and you muttered something as we came back onto air which was if you were out of the equity market for two days in the past year -- >> if you look at the last 20 years and you took out the best two days on average -- >> every year? >> every year. just miss two days on average out of those years, you would have gone from positive equity returns in the united states market of over 7% to nearly negative 3%. >> okay. so if you tried to time the market and you sold stocks and bought back stocks and you missed the two best days of the year every year for the last 20 years, instead of getting 7% per year return positive you would have lost 3%. >> that's right. >> so you need to be in the market all the time. >> you do that by -- >> don't leave >> well, that's exactly right.

but you combine some safe fixed income in a year like this one where we have seen bonds rally, when equities are set back. this combination of fixed income of equities together gives you less volatility and a safer risk adjustment and it allows people just to see. when they think about draw downs, a weakness of 21% global last year. if they were in an all-asset class portfolio, even when they had it unusually last year, they were down much less. and allowed them the discipline of staying in the market and getting those returns. we had all this worry about the federal reserve. when you build it up, you can't be away from it. >> they've owned equities for awhile they've done well. they made money. they don't want to sell stocks maybe they want to own them. but they don't believe the kind

of gains we had are going to continue >> that's right. >> how do you mitigate that? >> first of all, you can't just say, well, i wish the market were priced like it's 2009 again. when people didn't want to invest and say we're going to get double digit returns the extremely depressed markets of ten years ago correctly predicted the valuation of stocks then, told us we would have double digit annual equity returns in the united states for the next ten years if we look at where emerging markets are compromised, earnings 12 times tell you there could be rough sledding ahead. but the next ten years will be much better to emerging market equities the timing of that probably when we're deep into a federal reserve easing cycle when we get whatever negative news we need to get out of the way. >> maybe sell a little here, buy emerging markets >> i like how you threw that in there. sustained fed easing cycle

is the fed going to cut rates in june this month? >> i think it's going to be a very bad two weeks if the federal reserve is going to be easing monetary policy two weeks from now the cooped of news that we're getting. the fact that the federal reserve is essentially arguing that the trade outlook might create negative implications for the u.s. economy and that financial markets could have negative repercussions for the economy. you know, if that's what they're reacting to, you don't want that to happen. so we're between on the federal reserve right now. they created the problems for markets last year creating a great deal of monetary policy uncertainty. the fact that they still at this moment are still shrinking their balance sheet is one of the questions that could come up in the next two weeks for the federal reserve to say that right now this is the time to ease monetary policy, we're going to hear a lot of bad news outside of the fed >> interesting stuff there thank you very much for joining

us appreciate it. citigroup says you need to be in the markets so what stocks in the market should you own joining us now is mark tepper. i guess you heard the interview. you got to love that stat. if you miss just two days of the year, every year for the last 20 years, your gains went from 7% a year to minus 3% that's incredible. >> yeah. i mean, that's a behavioral finance error right there. but it just proves you need to stay invested especially if you believe the market is still in an up trend. right now quite frankly, look at the tech sector. tech and software are beginning to look really good right now. it's always a good idea as an investor to buy on pullbacks when stocks are still in an uptrend and they're oversold that's where tech is right now i mean, less than 20% of tech stocks are trading above their 50-day moving average. whenever those conditions are in place, tech's performance over the next six months is around

12%. so certainly some opportunity right now. you have to stay invested as long as you believe that we are still in an up trend. >> why does salesforce.com look attractive to you? >> salesforce is one of the best software companies out there, in my opinion you're talking high margin you're talking recurring revenues and salesforce in particular, there's all this talk coming from the bears about how when there's a slowdown in enterprise spending that salesforce is going to suffer. that's not going to happen i mean a crm program is one of the last things a business will cut when times get tough if you think about it, salesforce, any other crm provider, they're helping companies to increase productivity, increase profitability, increase efficiency so it doesn't make sense to cut that expense >> also, adobe not a name we hear a lot about everybody uses the ak kcrobacro.

but there's more to the company. obviously you like it. >> yeah. adobe is one of the first movers when it comes to shifting their revenue description model. so they're the industry leader in digital media with creative clout. anyone that's designing graphics is using adobe over the last four years, they've gone from 50% recurring revenue up to 88%. while they've done that, profit margins have tripled as a result it's obviously working for them. beyond that they're making a big push into digital marketing where the entire advertising business is headed so we like that. >> and mark tepper, i assume that adobe and salesforce.com you own in your funds? >> yes, we do. >> good stuff. your other picker was palo alto. thank you. see you soon >> all right time for your morning rbi.

earlier we asked you a question. can you name the hottest economy in europe? well, let's answer it. randomly and interestingly it's an economy nobody ever talks about. it is poland that's right poland is booming. if you're not paying attention gdp growth is around 5%. unemployment is well below 4%. in fact, the biggest problem in poland right now not enough workers they simply cannot fill the jobs now, if you want to invest in poland, of course there is an etf for it it is the epole. which decide being up right now is down 5% in a year even in a booming economy. we're going to give you a bonus rbi because it's friday. the worst economy in europe is italy. it is the only one out of all 28 eurozone economic nations that shrunk from last year. beautiful country, great people. but awful economy.

all right. thank you very much for watching [ speaking in foreign language ] uthawk box" will pickp e coverage next. dow futures up naerly 100. we will see you monday on "worldwide exchange. take care. and get your interest rate right. so you can save big. get a no-fee personal loan up to $100k.

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good morning it's jobs friday we'll talk expectations and ask whether bad news could, in fact, be good news for stocks. it's the final countdown no deal between the u.s. and mexico as the clock continues to tick down to president trump's monday tariff deadline but the dow if it were to go up another 100, would be up 1,000 for the week so somehow the tariff armageddon has at least been delayed. maybe not avoided completely we'll see. and beyond meat. shares of the hot ipo from earlier this year are soaring this morning following its first

quarterly report as a public company. it's friday, june 7th. jane welles is -- did you see that she's still here i know we're doing some potty report today. >> until you see this. she's in the bathroom. >> the bathroom is right next to our food. >> a foot away from our food >> it is but it's number one only >> yeah. joe's rules. >> kyle. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is quarterback. >> i'm looking at you, kyle. >> like i said, we all know way too much about each other. but good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. andrew is off today. he underwent surgery but