good morning 11:00 a.m. on wall street and "squawk alley" is live ♪ good friday morning. welcome the "squawk alley. obviously got a rally in focus

here all in the green best week of the year now for all three major indices despite the jobs number that featured some downward revisions for march and april and nonfarm payrolls coming in under forecast major averages up more than 1% investors looking to the fed above 26k for the first time since may 6. bob and mike here to talk about what is going ton today. what explains this >> obviously the context that all week have been saying. very negative. you saw flows out of equity funds. people weren't prepared for less bad news obviously the jobs number of the outset today was on the weak side does not say great things about the economy, but because the market was rooting for a rate cut before too long i think we got confirmation here now we get these headlines about trade. if that's going to thaw out a little bit i don't know if that plays into the fed story right now on a day like today, i think people are just going to say we don't own

enough we got too defensive and we're going to buy stocks today. i just want to remind folks today, may 3rd, s&p up 1% on 263,000 new jobs people say the economy is great, it's resilient the story changes. doesn't always progress from jobs friday out to the next week because that was the high for four weeks so we're back to bad news is good news unfortunately, which is my worst kind of scenario i hate when that happens we've got job growth slowing and now the fed to the rescue. they're going to come and rescue us we've got a deal they think is going to be made in mexico we think we have mnuchin meeting with his counterpart over the weepd they're going to exchange friendship rings job growth is slow that's the only fact we have to quowork on today. the rest is just the idea that things are going to happen if we don't get a clear deal on mexico quickly, the third quarter is going to kick in for

earnings and they're going the take the numbers down big time remember that's what's happened in the last six weeks, nothing they were crushing the earnings estimates down for second, third and fourth quarter and it stopped many the middle of april. there's been no change 1% up for the second quarter for the third quarter. 8% on the fourth quarter those are going to go negative if we have this thipg go on much longer that's what's going to happen in the middle of june if we're still here >> if the fed doesn't come rescue based on my amateur reading of the fed's body language around this, it seems a lot more up in the air than the market is taking it. then where are we just based on these job numbers and the other numbers we've seen out of earnings >> i would imagine what the fed hopes is that the signals that they put out this week, we're listening to the markets, we're aware of the risks going to try to get ahead will be thuf because the markets themselves

are kind of easing for the fed here yield rs where they are. maybe they could buy time until july when it's not necessarily expected they're going to cut until then so all that can hold together for a while. i think the other thing the markets benefit from is the s&p hasn't moved since january of 2018 right. we're still kind of churning around this same area and sorting it through >> is hopeum to use your word, the best performers led by semis? >> look at the automotive sector they got crushed on these concerns about mexico. all of a sudden, whirlpool is up 12% this week. 10%. american axel is up 10%. general motors up or 7% today. yeah, that's based on the idea this is going to sort of go way. by the way, i'm not sure how bad 75,000 i want to remind everybody, the 90% confidence level is 110,000 b jobs that means 90% of the time

the bls says we're sure going to be more than 110,000 up or 110,000 down from the number we report so they reported 75,000. we don't even know with a 90% confidence whether there was any job growth because you take 75 from 110, you can get down minus 35,000 at that point you can drive a truck through these estimates. there are surveys and there's a confidence level and you want to make it better, spend more money to get more survey vors out the. >> companies were down >> reduce the revisions that we have that make us crazy trying to figure out what's going on. spend more money to get better statistics >> materials, we mentioned best week in ten years if there's a tariff threat then you remove the threat, is it likely the market goes back to where it is, goes higher not as far >> i think you'll have the

movement within the market so that those areas that were bombed out like materials and like the deep sicyclicals and le the transports, if you remove that, yeah, they're going to regain more than the stuff kind of held together well. defensives what's interesting now is yields are not going up so there's still an incentive to sit there in a defensive quality yield names at the same time, the cyclicals are saying hey, maybe we have some hope. who knows. seems as if more about rotation. >> you see the dollar dropping >> i was just going to bring that up. it's a knee jerk traditional trading reaction

>> we're going to ease conditions and do stimulus not saying going to happen this way, but seems like the consensus moving in the direction of we have to do something to get ahead of a global sliding in a worse economic situation >> we'll continue this discussion very soon i have a feeling thank you. >> meantime, putin making headlines on huawei at the st. petersburg forum in russia jeff is there with more. >> they've wrapped up the session on stage in front of a russian audience here that was expected to hear negative comments, the chinese president, president xi, has described president trump as his friend

and said there are big investors r that are bringing the u.s. and china together now i don't know if any of those investors buying today are watching this event here in st. petersburg in russia u so that's interesting and something to keep an eye on because the language from the chinese president has been more measured here than i think many people in this russian audience expect the huawei story has been fascinating. we think the situation they are in and the pressure it's under one of the messages from the russian president here is this is unfair. this appears to be one of the first shots in a technology war. let's hear what he had to say. >> let's remember huawei, which has not just been put aside.

pushing huawei from the global markets. some call it the first technological wall of the new era. >> of course the russians i think are keen to show some unity with the chinese and one of the deals we've seen is an agreement for huawei to come into the russia b market and work with mts, one of the big mobile providers here, the big xaeps, and start to look at rolling out a 5g system from huawei in the russian market so i think that just sends an important signal perhaps as to how the russians feel about some of the security concerns surrounding huawei that have been flagged up by the united states, the australians and

other countries that are a part of the 5is agreement the security network that shrouds the western countries. back to you on that. but fascinating i think just at a headline level that president xi's language has been more moderate and the tone much quieter than we've seen in recent days on this trade dispute. guys, back to you. >> worth note, jeff in st. petersburg >> and beyond meat going above and beyond, beating the street's expectations surging 28% so far this morning. we'll discuss that next and how about another ipo this morning ceos of revolve join us next after they debuted last hour we're back in just a moment. tur?

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hey guys! you're gonna want to get in on this. i know how to those guys in here. let's pause the internet on their devices. wohhh? huhhhh? [ grumbling ] all: sausages! mmm, mmmm. bon appetite. make time for what matters. pause your wifi with xfinity xfi and see the secret life of pets 2 in theaters. pager duty popping this morning on strong revenue beating analyst expectations from the company's first earning report as a b public company accelerated by strong sales, customer growth. joining us now, the ceo. good morning >> good morning. thanks for having me >> great to have you it seems like there are a couple of thing, at least happening here

increased customer ads then good upsale on the customers you have and it looks like you're spending a lot more on your sales force. how much are those extra feet on the street going to be necessary to drive large deals >> well, we're really excited and proud of the acceleration in our growth to 49% this quarter that we've seen and we think that is really driven by a couple of things one, the strong momentum for the core purroduct itself, which mes the needs and solves problems associated with cloud migration, security concerns, nit modernization. our model is a hybrid between a frictionless digital acquisition motion and a sales assisted expansion motion so we're not dependent on the street, but as we've rolled into new regions and expanding our coverage, we thought it was prudent to hire early in the

year so we can enable and ramp effectively to support our m customers as their efforts take on momentum themselves >> you talk add five trends that are really helping to drive your growth cloud migration being one of them and then this move toward really needing to answer customers in the digital realm more quickly if you were to rank those five think, didn't name all five, the most drivers of the growth, what would the top two be >> i think number one is customer impatience and delay. most customers do derive revenue through digital assets and when the customer is disappointed, they no longer call customer support. they either tweet or leave the cost of a minute in a business that is trying to build a relationship with a consumer to deliver a product or service through a digital app.

that cost can be between 200 and $500,000 per minute. i think the consumer is number one. i think digital transformation as a superset of cloud migration and security is super hard to do most companies, whether they're late stage growth companies or large industry captains are going through some form of transportation to move from their legacy environment, their on prem environments to more integrated technical ecosystems that can serve this consumer that i just talked about >> you've got tariffs that's not digital in nature. does that drive a pager duty or is it mostly the sorts of things where there are problems with systems or there's a customer complaint. ths more of a driver than those external factors >> so i think it's a mix of

both i think a lot of our customers start because they're either in the process of launching a new product or migrates a workload to the cloud or they're coming off the back of an issue that had a business or public impact but it's a little bit of a mix of both. we don't have a single customer that isn't trying to improve the delivery of products, their product services or experience through a digital environment. so this macro trends are really important, but at the same time, it's important to understand that the complexity of the technology ecosystem customer is working is increasing. it's hard for humans to manage, so they need machine learning, platforms to help them make sense of what's happening in the moment and to orchestrate work across the right people within the right teams to deliver the best outcome if their customers >> jennifer, more broadly,

looking at the cloud and security sector overall, i mean we had this google acquisition announced yesterday of looker. how would you expect to see m and a consolidation playing out? >> so in terms of m and a, we've always kept an eye on the market we look for creative, disruptive technology teams, but our growth has been largely driven by organic product innovation and that's going to be a focus for us we are paying attention to the consolidation taking place in the market, but i think pagerduhty has been doing a great job of delivering value and innovation to our customers and services and that's the path that we continue to be focused on >> jennifer, ceo of pagerduty. the first earnings report post ipo. you can see the stock up better than 5%. thanks revolve opening its first trade here at the new york stock exchange just a short while ago. another soaring ipo.

priced at $18. which was high-end of the range. it's now trading above $26 a share. revolve is a millennial retailer offers 500 brands and 19 in-house labels on its website and made its name through marketing working with nearly 2500 influencers globally helping the company generate nearly 0 500 million in revenue. with us now, the cofounder, revolve co ceos here at post nine welcome and congratulations. >> thank you so much >> so company just went public i'm certainly familiar with it as a millennial who has shopped on the site bf, but in terms of what investors need to know. especially this interjection between e commerce and data, how would you categorize revolve >> revolve is a brand really connected with the next

generation of consumers. it's clear traditional retail hasn't connected with the generation it's what we've built our business on. >> from a technology and data perspective, it's been important we do rely more on intuition versus providing proprietary to favor the decisions we make. >> we're focused on the trade situation more broadly now, with imports coming in from china rising 25% on some goods then the threat lurking over the market about another round of tariffs. potentially on up to another $300 billion of good sz. what's that mean as we continue to see that accelerate >> overall, our customers are premium customers. so it's a little less sensitive. also with our own brand, it gives us potential to control the overall supply chains. >> wanted to ask you about the brands, we were just talking to stitch fix yesterday they have internal brands. to what degree is the millennia

and gen z brand loyal and style loyal? do you have to work on giving them specific brands or just clothes they like? >> our consumers are really loyal to the revolve brand for each mood or different aesthetics and such. so it's cohesive all together. the brand is really what connects with the consumer >> social immediamedia influenc. you have those several thousand that are helping market revolve. seems like some are here, actually, on the floor of the new york stock exchange today. how have we been able to measure the effectiveness of that and now that you do see things like antitrust group me on some of these social media companies, how are you thinking about it? >> we view it as an integrated market we have mirksed models and other algorithms for measuring the influencers then give your teams

simple metrics to focus on >> what do you have to do to qualify to be an influencer? >> i guess a really strong connection with the consumer strong style perspective and ultimate ly -- >> clothes is there a like a minimum follower count there must be a line somewhere >> it's really small literally, we work with some of the biggest in the world we also have a robust system so some of the small ones are only a few thousand followers. >> is insta? >> today the favorite is ins instagram. it's instagram today we think it will be that way in the future >> what happens if facebook is serious about removing likes what does that do? >> yeah. i don't think that affects us at all. our customer goes to instagram for inspiration. who she looks to for style advice i don't think so there's beautiful pictures and

influencer >> you'd rather have the metric. >> for sure. yes. >> you mentioned she how much of your business is women, men and where do you see those opportunities? >> loosely speaking, the men's business is around 1% so we're really focused on women. long-term mens is a big opportunity. >> you look like you wanted the say something. >> sorry about that. >> exactly the same. we love our consumer and we think we'll go if with it for many, many years >> thank you so much for joining us here at post nine add revolve goes public. >> thank you so much coming up, the dow trying for five in a row. take a look at the names helping cause that rally again this morning. microsoft, apple, visa, got got a lot more "squawk alley" straight ahead bye! ♪ hey dad! hello, betee! kaisi hain aap (how are you)? i'm good, how are you? good! so good to see you. it's late, where are you?

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european markets about to close here

we have a break down of today's action >> stock having a nice day markets in france are higher by around 1.6%. we did see a rebound in industrial production in france in the month of april so a piece of economic news that investors are digesting. big moves in bio tech. a danish giant down sharp sharp after it resized its outlook and sanofi approaching an executive from novartis. he is one of several to leave over the past one year after an ipo lull, we're starting to see more companies across europe go public. there's iceland's biggest company jumping on its first day of trade in amsterdam. it's a supplier of equipment used by meat the and food processing industry across europe that stock down about 3% in

amsterdam. foreign policy front, russia criticizing washington's freemt of huawei and its attempt to block the buildout of the north stream gas pipeline to europe. putin saying quote states that previously promoted the principles of free trade and fair and transparent competition have started speaking the language of trade wars we'll have to see what's response is to that. take a look at how staocks are i june s&p 500 outperforming stocks in china and europe up about 4.5%. jon, back to you >> thank you to sue now for a news update >> hello, everyone here's what's happening. the u.s. treasury is imposing new sanctions against iran this time targeting iran's largest and most profitable petrol chemical group, which accounts for a full 40% of country's production capacity and half of its total oil

exports. here at home, officials in colorado are asking voters for up to $70 million to knock down columbine high school and build a new one in its place the superintendent says the school, which was the site of a deadly mass shooting in 1999, has become quote a source of inspiration for troubled youth after battling cancer, patients are being forced to deal with debt according to a new report by the cdc, one quarter of survivors say they are in financial hardship and are having trouble paying their medical bills following their treatment. and barnes and noble is going private. plans were announced to acquire the chain for $683 million and that includes debt you are up to date the update this hour back down to you, carl >> all right thank you very much. still to come this morning, a look at shares of beyond meat. top iping expectations last nigt saying that sales will double the rest of the year stocks up 400% from the ipo. can it continue?

meanti meantime, coming just a touch 8.f the session high, dow's up back in a moment hnology to help make banking easier, like... a pnc business line of credit, because sometimes inner peace requires a little external soundproofing. or pnc total auto. a place online to easily find and finance the right car for you. and your passengers. or pnc home insight, to search for a new house within your budget. hopefully with a grass yard. pnc - make today the day.

> shares of beyond meat are up jane wells has been with this all week long. >> hard to believe the market is so excited about a company with $40 million in revenue plus the

market cap is just a billion and a half dollars overnight because management sounded optimistic about manufacturing and supplies and new tests. the ceo calling the projected $210 million in revenues this year ploer i showed you in i bought a product. well fresh product in places like fast food joints is outselling frozen. froze ben sales fell compared to a year ago in part because they discontinued their frozen chicken strips are people buy iing the strips, brown says they don't have a lot of info, but in some markets, as much as 50% of customers buy the burger with gross profits skyrocketing, when does the pay come down? brown says they have to keep investing to make the product

better and then -- >> this needs to be affordable and ultimately, if you look at the model we have. we've taken out this large bottleneck we're pulling pieces of basically the core parts of meat directly from plants and so we should be able to over time over price iing that some day is thad of animal protein. >> reiterated that the company will have one product. probably the burger, below the riprice of real meat in five years. >> thank you very much a huge story after those numbers last night stew leonard jr. is the ceo grocery chain which sells the products thanks for joining us. >> good morning. >> how's it move iing? >> listen, forget all the stock market stuff i wish i some. i'm here on the floor of stew len's and these have been flying

out of here. we have five packages left on the shelves and we just brought in the sausage, too. and customers are loving it. we have a big meat business. we do about 100 trailer loads of fresh beef from the midwest from ranchers, but we do about two million of these burgers every year at stew leonards and right now, last year, we did 25,000 of these burgers and this year, it looks like we'll do 50 to 75,000 so what you're seeing in the stock market is the same thing we're seeing on the floor at stew leonards? >> what's stopping you from doubling your retail price and how hard is it to get supply >> right now, we're 599. fortunately, we can get as much we want now. it's keeping wup the demand because our our meat buyers and henry back here who's been here 40 years as a butch, he taesed

this beyond burger, there's a lot of imitations to a hambu hamburger, but our meat buyers that have been in the business for a long time, could hardly tell a difference between this and a real hamburger so you're getting the plant based healthy aspect of it without the you know, eating meat >> stew, dpogood to see you. my family is a big fan my daughter likes the dancing banana >> thank you because i didn't -- >> where are you play placing the products within the store? >> it's right in our frech meat department next to our hamburgers the customers have an option we're demoing it today it's getting it into people's mouth sos they can taste it. there's veggie burgers, but nothing really tastes like a hamburger in this space. >> stew, you've had that on the shelf for a long time.

so you've got an interesting perspective. sounds like you're saying this isn't a veg tear yan product do you see people how much of your yoover all -- >> right now, it's blending to about 5% of the total burgers we sell and i would guess there's a little cannibalization of our meat, which is b obviously, but people trying avoid eating red meat, i think this is going to add to the amount of burgers people are going to eat. right now, we were just at the big food show in orlando this week one of the things you saw all the time is this is big plant based. my grandfather start ed delivering milk and milk is our

backbone but one of the things we're find ing all the almond milks and the oatmeal milks now with starting to dig into our meat sales so i think the new customers today, especially the younger, you know, customers, are going toward plant based as much they can and beyond burger delivers that >> stew, i want to shift gears a bit, but staying with the plant based theme here these mexico tariffs that are set to begin taking effect on monday on agricultural products that are going to be coming from south of the border, how are you planning for that that what do you expect what will it do to prices? >> well, here's the thing that that's good about the tariffs now. the growing season e for mexico is from november to april. that's the premium growing season where we get most of our fruits and vegetables. it's pretty much overknnow. only things we're getting,

avocados we're going to eat a 5% tariff clause on the avocados people won't see the price change at stew leonards. if it goes to 10 or 15 tor 20, there's going to be a problem. i have faith things are going to be negotiated before that. i don't feel at least in the food business at this time, we're going to feel the effect of the tariffs at stew leonards. >> i know you got to run your own business you don't sh, you're not worried about the total address on market, but some of the e estimates beyond total addressable market industry wide is 100 times where we are right now. there's interest across the country, the world for this product. >> beyond burgers. we're a family business. i'm standing on the retail floor. that's more of a global question i really don't know what the projections would be globally, but i would just say you know,

i've been in the business all my life here. and i would just say you can tell when there's a hot product and this is a hot product. and i think the market is showing that right now >> you don't own shares, do you? >> no. i wish i did though. meat buyers bought it and didn't tell me about it and so once again, i'm, you know, i guess this is my share of stock right here selling it at stew leonards. >> finally, do you sense any pushback when consumers see cellulose, all these things on the ingredient list? >> it's a pretty, we try to go clean labels we make a lot of fresh products and this has a lot of ingredients. you read it. i don't know what they all mean. so far, we haven't seen a pushback from that we haven't had any customers mention it, but i would say maybe some of will look at this and maybe might not want to buy

it because of you know, ingredients they don't understand u >> guys are ridiwriting in sayi you should be a regular guest. thanks for the help on this. >> thank you and don't mention whole foods anymore. mention stew leonards, okay? >> okay. we promise thanks >> we'll see you good-bye, thank you. >> and in the meantime, part of the government's antitrust probe into big tech involves pitting companies like google against smaller, online hospitality competitors. adidi has more >> companies like yelp, expedia and trip adviser have been speaking out about google's business practices for a while and now the government will be taking a look at the arguments they've been making. in order to prove an antitrust case against google, the government would have to prove

google owns at least 30 to 40% of the relevant market google owns nearly 90% of the search market according to statusica and about 75% of search app sales the doj would have to show that google preempts the competition by optimizing platforms like search that's precisely what some smaller competitors asearch. for years, the ceo has been particularly vigilant against google say iing the company squeezes out the competition by favoring its own web offerings by placing them at the top of search results steven cougher telling us the company quote remains concernedd about google's practices in the u.s., the eu and world adding we welcome any renewed interest by regulators into google's anticompetitive behavior. andry diller also spoke out about google to cnbc last fall

>> when f you have that kind of control over the world that can't go any place else to get their stuff to a consumer, you also have to, you, you in evident bly all monopolies behave the same and you've got to have regulation of what they do once they get to that stage >> he add ed that expedia spends $3.5 billion a year on google advertising. back to you. >> thank you alphabet class a and krc shares down 3%. santelli exchange is next. rick what's after the break zbr i'zbl there's a lot going on with respect to digging into today's jobs report. we have just the man after the break. former chairman of the president's advisers don't want to miss it. coming up.

here's what's coming up on the halftime report this friday. stocks are surging tariffs are looming and inv investors are hoping the fed will be acting we're going to debate what you should be doing with the dow and s&p on track for their best week of the year. plus, a fresh new price target for chipoltle sizing up the stock along with a bunch of names and josh brown on his

latest take with how the tax law is impacting your investments. see you then >> thanks. and the dow right now up about 275 points 271 to be exact. s&p and nasdaq also up better than 1%. back after a quick break 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.

from themno kidding.rd.n but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. 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. welcome back over to the cme now and rick santelli rick >> thank you, morgan like to welcome my guest, former

chair of the president's consult economic advisers under george w. bush. great to have you on jobs friday i'll get right into it couple of things that jumped out at me, of course the notion of employment to population ratio, always a favorite of yours, going sideways at 60.6 but you know, at the beginning of 2018, it was 60.2 and the labor force participation also going sideways at 62.8 at the beginning of last year of '18 it was 62.7 maybe the counterfactual here is that the demographics are being eaten up by people coming back into the workforce what do you think about that and all the data in today's report >> very good observations, rick. you actually hit it. in fact, this morning, when we watched earlier, one of the things he said is that what you think about the most is people coming back in and i do too. it does look like we're getting close to the top, though, and i'll tell you why. there are a couple of things, some of which you just

highlighted. one is the employment to population ratio has leveled it actually peaked at 60.7 earlier this year and is now back down to 60.6 so as you point out, that could be the demographics kind of overtaking some of the business cycle stuff. the employment number, you know, we know that was on the low side we're still at 151,000 over the last 3 months which is what i usually look at and that's well above population growth. the other thing to note, though, and i think people haven't pointed this out, is that population growth has actually slowed and slowed considerably so what that means is that the number of jobs that we would expect to see coming in each month is going to be lower and so even the 75,000 number, which seemed like a low number, is still above what we would expect given the population growth over the past few months and even over the past year so, again, you know, i'm not troubled by it in the sense of thinking that we're going in the wrong direction, but it does look like we're getting close to the peak and, you know, we've been talking about this for a

while now. we said, i remember when we talked earlier, maybe in the last fall, we said, you know, maybe another six months to nine months we'll be starting to get close to the top and we're probably getting close to that now. >> all right, everybody's talking about it it's water cooler, in taxi cabs and ubers, so what does this do to the fed are they going to look at it like you've just described it and kind of hold pat or is the pressure of the markets not only here but globally going to demand that they do more faster? >> well, you know, i think that the big deal with the fed right now is they're kind of in a game of chicken with the white house because what we have going on, obviously, the stuff on tariffs, you know, some of those things are negative forces right now in the economy, whether they end up in the long run being good things is something else but right now, they're negative and i think the fed is sitting there saying, gee, we wish you guys wouldn't be doing this stuff but given that the white house is doing it, the question is what's the fed's response and i think my sense is from listening to

the chairman and some of the other members, they are probably thinking, well, we don't have the luxury of saying we're just going to tough it out and call their bluff. so i would guess that the fed is going to move. >> now, on our final time here, 3.1 is average hourly earnings year over year, the lowest level since september of '18 obviously we've been up to 3.4 is that a dire warning or is that just slipping a bit for obvious reasons until potentially we start to see maybe more on trade actually get solved and come back into the marketplace? >> yeah, i don't see it as a dire warning again, i would say it's consistent with the other numbers. you know, it's -- we had a -- we had a very good year because we took the breaks off in the economy. what happens is that's going to be a short run, one-time effect and once you get, you know, once you get back on track you don't expect quite the same growth that you've had in the past. you expect the same level buzz

you don't expect the same growth and so i think that what we're seeing right now, again, is that we're kind of topping out. that doesn't mean that we're going to go in the negative direction. we could have a plateau, but it's much harder to grow the economy, to grow wages, to grow anything else when you're close to the top than it is when you have a lot of flak in the economy. we just don't have a lot of slack in the economy right now >> excellent thank you, ed, and i hope you have a great weekend let's kick it back to john ford. >> you too, rick thank you. >> thank you, rick and walmart ceo doug mcmillon just taking the stage at this portion of walmart's annual shareholder meeting ahead of what they call a celebration. our courtney reagan is in fayetteville, arkansas, with more courtney >> hi, john. that's right, that celebration taking place in the arena right behind me. walmart ceo doug mcmillon just taking to stage talking to employees about this new in-home delivery program that the retailer announced today so, starting in the fall, in three cities, st. louis,

pittsburgh, and vera beach, florida, about a million customers will be able to have walmart employees deliver groceries directly into their fridge or their garage if they show choose. walmart's head of e-commerce, marc lore, tells me that walmart will eventually be able to install these smart locks on your door, you'll get a unique four digit code that will only be able to be opened during a specified period of time the delivery will only happen if the camera on the vest is live and active so you can actually watch a live stream of the delivery taking place with those groceries going right into your fridge and then i asked marc lore what the possibility of other opportunities this could open up if you've got an associate literally walking inside your home take a listen. >> first of all, delivering general merchandise into the home without any packages, that's another pain point for customers. customers being able to actually leave products on their kitchen table to be returned, so when we

come in, deliver the groceries and leave with the product those are two examples but lots more things that we can do even outside of, you know, commerce in general, but when you start thinking about health and wellness and other areas like that. >> reporter: now, of course, amazon does have an amazon key program. that's available in around 50 cities it also has a smart lock system that you have to buy that's for general merchandise, not grocery, but this is an idea that has been out there and walmart is rolling it out in the fall, at least in these three cities back over to you at the new york stock exchange >> all right, court, sounding a lot like announcements we've heard from other companies courtney reagan at walmart "squawk alley" is backn ia few minutes. don't go away.

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welcome back to "squawk alley," nasa holding an event at the nasdaq just a short while ago and the news from there, space, specifically low earth orbit, is open for business. nasa is opening the space station, the international space station, to commercial business and also to private astronauts this is a new interim directive from nasa that's going to allow private companies to buy time and space on the iss for producing marketing and testing their products and if they want,

they can even send their own astronauts there as soon as next year heavy price tag, though, $35,000 a night and the cost of the actual ride, which is expected to be $50 million via boeing or spacex >> we're all going to need more dram mi dramamine, that's for sure let's get over to the judge. carl, thanks, i'm scott wapner with stocks only hours away from closing out their best week of the year and fresh evidence that the trade war is hurting the economy, will the federal reserve come to the rescue it is 12:00 noon, this is "the halftime report. >> stocks surge, the dow jumps 300 points, the nasdaq picking up almost 2% is today's rally exhibit a investors think the fed is ready to make a move legendary investor stanley druckenmiller says, yes. >> i think if the job number is weak, given everything else they're saying, the fed will be on a clear easin