make sure you join us tomorrow. "squawk on the street" starts right now. ♪ congratulations to the st. louis blues. >> futures are up as the dow tries to void the first three-day losing streak in three months. oil is a big story as we watch reports of suspected attacks of two tankers on the gulf of oman. our road map begins with oil prices up, biggest one-day gain since january. two hat tricks in retail, lulu

and rh raising guidance. the next test for the tech ipo market today. as we said, oil prices are the one to watch after two oil tankers were the targets of a reported attack. the navy says it is aware of the incident and is assisting the two ships. the exact circumstances are unclear, but it could ratchet up tensions between iran and the united states. jim, 20% of global consumption goes through these are straits. >> that area could get much hotter. second, how little we actually -- oil is up a little bit. remember, it was down 170 yesterday. i had the privilege of interviewing the dean of the -- the founder of pioneer. he said we will have a flare up in that area. and it's not going to matter. i said when. he goes now. we are pumping so much oil.

do i take it off my screen what happens there? he said yeah. i said that's not possible. he said we are 13 million. we are going to 17 million. anybody who needs oil, we are now the swing producer. here we are. maybe oil should be up more than it was down yesterday. remember, it goes down geometrically. >> it is the highest level in two days. >> there we go. i can see it maybe should have been up if we think there were something big. it is just such an anchor. you can see why chevron wanted to be in it that has huge

ramifications. >> they don't have it. i think that it's really incredible. the rate count is not up that much. if we had pipe we could make it so we were 15, 16 right now. remember, natural gas which is the fuel we heat, the price is negative. they lose ten cents on anything that they sell. we are not really capable of producing. on a day like today, the president should be saying -- my wife thinks i'm suggesting things to the president. he should be saying this is what energy independence looks like. he should fire the people who run furc, a major road block to building more pipes. >> i have no doubt that tweet is probably on the way.

the bottom line is you would watch this but silo it off from overall market -- >> absolutely. to me i know i'm not being facetious here, in this market people care more about tyson versus beyond meat than iran versus saudi arabia. is that short sighted? arguably, yes. there is a notion that the way that we look at the straits these days has to be filtered through the permian. chevron wanted that property. chevron told me that they were going to build up 10,000 wells. i said isn't it tapped out and they were nice people so didn't say i am an idiot. >> obviously, it's serious.

for now your point is well taken. >> it's different from the old days. we will be doing triple that in another two, three years. >> with that in mind, let's turn to retail. lulubetter than expected results raises guidance. first quarter comps 16% on a constant dollar basis. last night's call emphasized strength in men's apparel. take a listen. >> within the men's business, comps grew 26% with ongoing strength in tops and bottoms. the business was led by our abc franchise and three short styles. the main driver continues to be core categories across men's and womens. however, we have identified several areas where we can test the waters and bring innovation to our guests.

where is the strongest goeth area in china? they are doing terrific there. there is in europe double digit comps. one thing that struck me is they don't call them sales people they took their shorts and then there are shorts like people short the stock. it's the best of all the retailers. >> there was an element of confusion there.

they mentioned tariffs. >> exactly. and they had this thing about ports and using more aero space. they have a model which is so strong in the sense that. their digital is so strong because people want to experience the sweat. this is clearly a different cohort for me. i grew up in the area. sweat is bad. here sweat is good. you see these people dripping and you are thinking i want a piece of the ipo. >> keeps the room at 105 degrees.

this is about the power of stink and workout and educators teach you how to smell. >> maybe the bigger surprise is rh. 185 beats 155. you will talk to the ceo tomorrow night. gary realized that last time he had this. . we are moving new product development out of china and exploring new partnerships and expanding manufacturing facilities in the united states. will the president tweet way to go gary? this is so the opposite of when he created the stock. he brought back 2.2 million shares at $115.

he bought back 60% of his stock in the last couple years with the $61.44 price. he says it remains under valued. he is a monster. the only negative is he is delaying the new store in bethlehem at the old steel mill. >> can you think of a company whereby rrbacks have been a bigger part? >> auto zone. they have done a remarkable job. gary did have a hiccuhiccup. we are in china and staying in

china. this is what ethan allen said to me. they are most correlated. it's a membership now. >> it's expensive stuff. >> the store in new york which i took my daughter to lunch to. in excess of $100 million in that one store. that didn't exist two years ago. i urgepeople if you are trying to figure out why the stock is going up, go to that store. it is a monument, a museum of furniture. it is not a retail. >> would you argue that the success stories we are seeing in retail are in apparel i should say and furniture now at the high end >> it's a bar bell. there is a piece out this

morning, dollar general. some of those are well run countries but are in the mall. luluhas no price that people won't buy their stuff. they could raise prices tomorrow and the educators could educate. are they professors? i would like to see the professor, please. i'm dealing with an educator. i want to speak with someone with tenure. >> we will watch those stories. big day in retail and follow-up on the red hot public debut and beyond meat shares down as tyson ups the ante when it comes to

alternative proteins. one more look here at the premarket. june still the best gains since january. we are coming off two days of losses. back in a minute. johnson & johnson is a baby company. but we're also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you.

your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

you need decision tech. hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass.

♪ crowdstrike continues it's upward momentum after yesterday. shares up more than 70%. the cyber security company has market value of 11.4 billion. >> i was kind of flabbergasted. other than what i would say is cyber, that group has been soggy. palo alto has been a big disappointment of late because of the last quarter. my very good friend, i don't know he did a terrific story. alphabet's whole picture has been clouded by different issues. this was a surprise.

it shows me if you get things going you can have a winner. is it as good as palo alto or cisco as the largest cyber security company in the world? there is a downgrade yesterday really focussed on other parts i think it can be alive and well as long as it is not huge. >> uber and lyft. >> uber, i like uber freight. he is also a genius. that i think is a very strong story that people are starting to realize there is more to uber than just caps it has the

ability to lower freight costs. do i buy it? i don't know. i like whatever deal is next now. we are kind of in a happy phase the recent issues almost all up from day one with exception of uber and lyft. >> the ones that were really most talked about. a lot of people felt zoom was a commodity. they are very well run. i think that one still makes sense. they have been pricing these things to move. >> that's for sure.

this summer the company will begin selling nuggets. a blended burger will follow this the down grades last couple of days. >> i got contacted by nestle. i brought the burgers home to my wife. and you know canudly, she spit it out. that's a negative. she spit it out. that was something i didn't count on. it projected slightly. then they told me that's the german burger. one of the things i like is bh we guy to the german mcdonald's it is like ours.

beyond meat is the future. walter was telling me get with the program. get with the program. this is what they want. the they being, of course, people younger than me which is a cohort. i think beyond meat is good. i did not know that -- gmo, that means we are eating roundup. i'm not going to put roundup on my burger. >> a lot of people are watching that as a potential liability. as far as the price you would wait for this to settle down a bit. >> i don't think this will go down as much as the shorts say. i was chasing after i heard what walter said. he is to me the dean of what people are going to want. and he said don't forget these are ten dollars in colorado skpmpt they are in short supply everywhere. i think it is too high.

ethan brown is a master of the burger. i said something somewhat negative about him. he said we'll have a chef and we'll do a bakeoff on mad money. we will have the impossible burger with gmos, but not with the round up. we will have the nestle's whatever burger and then we will have the beyond meat and taste test all of them. i will put the considerable number of ingredients. when i eat a hamburger it tend to be from a cow. cows are tremendous polluters. if you talk to the millennials, they are like are you kidding? cows they are the worst thing for the environment. nature produced cows. their pollution. cows, they didn't hurt anybody. >> can we get tickets to the show >> thank you for setting up.

>> we'll get the mad dash in just a moment. futures look good here. don't go away.

oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this?

it's your piano. hold this for a sec. we don't have a piano. no.. but the neighbors do. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. ♪ >> watching disney. >> twh she he used very bullish

numbers, how many people will be subscribing to the disney plus morgan stanley said that may be conservative what he laid out. $160 price target said we are all going to take this thing. you have 50 million in a couple years profitable. his ears can be red. hise his ego will be so big. the stock has been doing nothing of late. this analyst wants to ignite it. >> you remember the analyst at that meeting here. i think it was 160 early. >> and we lost our -- >> how about a code? it was so red hot, it's where everybody is thinking. it seems like entertainment has value. this might be the sizzle.

>> as we said yesterday on air, pricing remains the big mystery. >> morgan stanley says they will lap it up. they are saying it will be netflix in five years. obviously, netflix is a company that's there already. this made me feel like stop it. they have nothing to do with each other. this is a loved product. base case, they didn't do that, but i will read through it and say that's what they really mean. >> we'll see what the best case scenario. >> the opening bell in 4 1/2 minutes. don't go away. heading into retirement you want to follow your passions

rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠ you're watching cnbc's "squawk on the street" 90 seconds until the opening bell. we haven't mentioned claims. jobless claims to 222. >> there is this kind of -- and

he was talking this morning. there was a downgrade of -- >> i thought that was a very important cost. people loved the rails so much they have been integral. you had an excellent interview with delta. i felt i was very depressed after listening. >> i know you watched rail traffic the last three weeks down year on year. down. >> now watching the court. those are disappointing. everything -- i noticed there was a call yesterday fed ex lowering the price target. >> let's get the opening bell here and the s&p 500.

it is fiver celebrating ipo. it is the trevor project, suicide prevention organization. >> antibullying is so important especially cyber bullying. i think these are things that really matter. >> those looking for a trump recession should be prepared for a bounce because one man can make all this uncertainty go away in a hurry. >> that one man could say -- is he beginning an asausault on germany? >> he did mention n.a.t.o. spending. >> he is going to raise tariffs possibly until they get off of

russian natural gas. he thinks they have had tariffs on us. they don't play fair. he thinks germany only pays one percent. it is supposed to be more towards 1.5. would anybody be shocked if he says it is time to shut down germany. they just opened the biggest -- one of the things that -- didn't that at all immunize our president doesn't relent. >> he has not called him a good -- >> a strange relationship. >> we have a special relationship with the u.k. and a especially bad relationship with germany. >> you mentioned the downgrade of union pacific. got an updrad as the mortgage rates are helping especially in the west. >> i have to tell you, quicken

people don't realize is the largest mortgage company in the country. they said the last three weeks are the best three weeks ever. this is it. we're back. >> that's a private company. they are extraordinary. let me just say, we wish you the best of luck. everybody in sports world or finance knows this man, rebuilt personally detroit. watches our show. just want him to get better fast. he had a stroke. people were slagging. i apologized to him. i said these nonbanks, are they really regulated they have a tremendously low default rate. quicken i wish they were public because i would see it say that that's not just tech.

the highest form of investing. a remarkable man. dan, how can a guy rebuild a city >> i was in detroit and they talk about him in such revered tones. >> not since ben franklin in philadelphia. >> you mentioned the mortgage rates close to two-year lows. the ceo did talk about this and the impact on housing. take a listen. >> you seen what's happening on main street, it feels like the economy is very, very strong. we think about a scalable platform. a lot of lenders will ramp up when rates tick down. i worry what happens when rates tick up? we are more focussed on the long haul. we need them here for the long haul. we don't play that cyclical game like other lenders do. >> look, he has a tech model. he basically is a sales force

for like salesforce.com for lending. remarkable company. i think people have been overly critical because they haven't done the homework. you would realize that their default ratio is almost better than anybody. >> the action, is that on the notion that if we had to ramp up production domestically that we could or would >> i remember the day that iraq invaded kuwait. now it's like 43 cents, one of the worst performers in my travel trust. it is a company that's uniquely rooted to deep water. you need to be rooted in permian because it is that big. the saudis are still drilling. most companies are not drilling. venezuela has been taken off the

face of the earth, basically. you would say i have to buy halliburton. up 24 cents. it's mocking us. >> in terms of the losers, it's a lot of transportation. >> retail. if you are not our age, my wife spends a lot of money. she is a part of the club. i think it's a club to spend a lot of money. my wife likes country clubs. people -- how is it the dining facility the answer is that it's an instagram temple. it's a temple to instagram. you see everyone instagraming. these are staring. facebook, have we talked about it yet that we haven't mentioned that their e-mails would show

privacy violated by facebook. >> you said yesterday we were in a moment of fatigue over facebook regulation. >> i thought that that story was a story that i read. sometimes you see stories. and then the journal -- >> is there an advertiser who says i read a story about e-mails. you can't reach these people otherwise. >> they don't do anything but instagram and sometimes work. >> that got us -- he is -- >> it brings to mind celebrating on twitter which is the worst this morning. >> i don't know. now i'm starting to regret that i really pushed hard the facebook upgrade.

i happen to love the work. his facebook piece was brilliant which said that the worst is over in terms of washington. the next day facebook was down three because of the story. nothing sticks. nothing. he should go to lululemon and get outer wear from there. i know that's not what he wants to hear. >> day two of crowd strike. >> i have been thinking about a -- i would say crowd strike i will put 1,000 on -- kind of like the belmont stakes. i have 1,000 on 90. crowdstrike is the flavor of the day. it's just beyond meeting. >> do you think the names are an

easy distraction from larger issues >> cooling inflation, business confidence. >> you're talking about minutia. peloton. when peloton -- we are going to be run this sweat commercials. these are sexy. these are the sexiest ipos i have seen in ages. that doesn't usually end well. but enjoy it while it lasts. >> how many times are we going to touch this theme? music, dance. >> does anyone care about proof point? no, it's crowdstrike. cyber arc? one of the greatest guys has the semantic, daddy of all of them run by rick hill.

it is the grand daddy and life lock as well. that gets no love. why? it's not an ipo. lyft, uber. how about poor little uber >> that's what the whole market is about. >> when you are with uber you have to wear a shirt that says i'm with stupid. >> the odds, betting against hawk. people worry about apple exposure, china exposure. i would say worry about it is worrying about the confidence in the president. >> not lacking. >> not lacking confidence.

has he tweeted lately today? >> a couple times. nothing really market focussed. >> i baited musk all day. i asked him what he thought of the new lamborghini which is so fabulous. he said nothing. don't you think it must kill him? don't you go he is like this he has no send. >> i think we have some new video of the tanker situation. suspected attacks in the gulf of oman. the u.s. navy said they are assisting some of these tankers. details, we have very few. it looks serious from the photos. >> looked a lot like what happened in 1990 where the world was just completely consumed by iraq and kuwait. instead, we have good footage. >> some of the reports suggest

they had japan-related cargo. >> it's a japan flag and maybe that means it's not allowing focus on -- there is a disconnect between news and stocks. we are in another world. stocks are not reacting to what they used to. should the airlines be down big on that? they used to be. we would be worried about their balance sheets. now the airlines balance sheets are great but business is so-so. all of us going -- we have an extremely full plate. i was actually -- the only flight i have ever been in wozniwa wasn't full. >> they didn't say at the beginning we have an extremely full flight. >> theyed we have a lot of room in the overhead. >> make yourself at home. >> i did not fly where you have a state room.

i was in the second class. >> how about the bar >> if our government subsidized our airlines the experience would be nicer. >> they have a bar that is just so -- you can -- these stories used to be big. now they are just a reason to buy pepsico. dave and busters was the real disappointment. it was down because there were a couple of issues. it was down because they are not executing. i think steve king executed better. if you are in the mall, you will be executed. >> that's a good one. you dpoe to the shoe store in the mall and it is like the red shoes. >> one last touch on beyond me.

>> it's early. >> beyond meat has replaced tesla. >> the ceo is not nearly as combative. >> did you see that new elon musk >> you mentioned this earlier. >> come on, elon. give it to us. give us the circus. i like the circus. >> given all that, disney is leading the dow. we are up 113 points and 12 on the s&p. let's check in with bob pisani. >> so geopolitical risks, yousy the interesting compelling pictures in the gulf of oman. that is moving things. energy stocks tend to be on the higher side here. semi conductors. consumers are flat. this is contrary to the trend in the last six weeks. a little bit of the switch in the way the pattern has been

going in the last six weeks or so. energy stocks, a nice move up here. you don't see this very often. generally the demand equation is pretty poor here. if you look at energy stocks all up two percent overall. don't kid yourself. it's been awful for the energy complex for a long time now. the s&p is three percent from recent highs. look at complexes. oil services, 55% off its 52-week high. natural gas stocks 36% off their 52-week high. it has been a disaster. retail and tariffs i thought was interesting. two companies, restoration hardware talking about raising prices, concessions from factories. not just then, oxford. this is tommy bahama. they saessentially said tha sam

thing. they are talking about concessions from suppliers and maybe moving factory production around. this is in the water supply right now this kind of talk. the stocks are trading up rather nicely because numbers were really good here. restoration hardware was $90 a few days ago. the ipo, jim was talking about the ipo pulosa. we see a lot of companies raise prices and price above in the last couple of weeks. we have fiver. lots of good looking millennials here. the price was 18 to 20. they priced above the range. we have chewy tomorrow that will be down here. that's the big pet e-tailor.

these weare being raised here. too many ipos coming. look how the unicorns have done this year? it is rather remarkable. beyond meat, zoom video, pager duty. pinterest. you have an upmarket. that always will help them. we haven't had a serious notable selloff. they all have fast growth and large market opportunities. i know what about uber and lyft? there is something in common that these companies have here. obviously, they have deep losses. they are in the ride hailing space both of them and valuation issues. neither had a successful big publicly traded company to trade

against. they do have something characteristic. the whole ipo market is up, not just stuff coming in the last few weeks but the stuff that has been out. this is the renaissance capital ipo here up 33% for the year. there is the s&p 500 up 15% for the year. this includes stocks that have been public for several months already. so the overall market is lifted. i don't know how long this is going to go on. obviously, if we had serious market down turn, there is a lot of perfection priced in they will get hit. for the moment this has been a very successful ipo year. >> on that very point, crowd strike shares now up 90% since the debut yesterday. ceo joined us on squawk alley first on cnbc on wednesday and compared his company to another company you follow closely. >> the problem that most companies are trying to solve is not being breached.

and whether that's network technology or end point technology, at the end of the day, we see the tip of the breach being the end point. that's where the data resides, the servers, desktops. that's what we are protecting. from that standpoint, there really hasn't been a foundational cloud company born from the ground up in the cloud. there has been no sales force of security. we think we have created the right architecture to be that forth pillar of cloud computing. >> so how much do you put those two in the same sentence >> it is that company. i listen to that gentleman. z scaler is the king of the cloud. it is the sales force of security. if you like crowd strike, you should love z scaler. i think it is a really fabulous company.

it is 439 times earning. crowd strike is really terrific. honestly, it is nowhere near as good as z-scaler. >> all right. >> let's check in with realick santelli. >> minus one. all maturities are minus one basis point. parallel shift in the curve. maybe it is getting comfortable. comfortable is a little bit odd. let's look at month to date charts. a two-year, the established range for the short which isn't supposed to be nearly as volatile, its low to high range has been 16 basis points. contrast that with the ten year where the low to high over the same period is about 12 basis points. anybody trading to under dragds means if you have a long line of skaters and pulling by a rope, the farthest will whip around

the most. the fed and what they may do is so integral in the mind of traders. if you look at month to date of bund yield said you can see a drift, smaller range which is very normal. at the end of the day we are getting little action of bunds. sponge here is an april 1st chart of the dollar versus the chinese yuan want to know why it is so hard to pick up anything going on with the tariffs outside of the political pages? because of that chart. their currency is soaking a lot of it up carl, jim, back to you. >> thank you one day after a crowd strikes red hot debut, it is fiveerr's turn to go public. we'll talk to the ceo. nice gain as the dow comes off two days of losses, up 113 don't go away.

these reports of suspected attacks on two oil tankers in the gulf of oman moved the whole

complex. biggest jump for oil since january. you can see some of the names there in the green meantime, dow is up 111. we're back aer bakft are the mercedes-benz of tomorrow will transform not just the automobile, but mobility itself. an autonomous-thinking vehice protecting those inside and out. and it's the mercedes-benz of today that will help us get there. the 2019 e-class, with innovations that will change the way we drive from this day forward. mercedes-benz. the best or nothing.

hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass.

jim, what's tonight on "mad." >> diabetes is a tremendous growth industry, shouldn't be, but it is. >> you said it is early. >> it is early z scaler, please if you like -- z scaler is a better company. >> good stuff. we'll see you tonight. "mad money" 6:00 p.m. eastern time when we return, ed tanker attac gulf of oman my experience with usaa

has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today.

but we're also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you.

♪ good thursday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen at post nine of the new york stock exchange. david faber has the morning off. intere interesting market morning, dow up 108, trying to break what would be a three-day losing streak a lot of stories involving the oil complex, oil tankers, retail and, of course, ipos again. >> our road map starts with oil prices jumping on pace for their best day since early january >> plus, ipo mania, the next test for the tech ipo market today at the nyse. we'll talk with the ceo of fiverr after its debut.

>> and lululemon, restoration hardware both soaring on earnings beats we'll dig through the numbers. >> as we said, oil is jumping this morning on these reports of suspected tanker attacks in the gulf of oman our own dan murphy has the latest from dubai. dan? >> fast moving story in the middle east to get you across here that certainly is impacting the price of crude what we know is that two oil tankers sent out an emergency distress call in the early hours of this morning after suffering what is feared to be a simultaneous sabotage attack in the gulf of oman now, as i mentioned, this is fast moving, this incident took place in the strait of hormuz and details are still emerging but what we know at this point is that this certainly has the potential to ratchet up tensions in the region even further now the first ship involved is the japanese owned panama flagged kokura courageous, moving methanol from saudi

arabia to singapore. it is understood to have suffered serious damage to the hull on the starboard side, the right-hand side. all 21 crew men on board were forced to abandon ship and had to be rescued by nearby vessel reports suggest that the damage was so bad, it is consistent with a hit by a torpedo or other projectile, but, of course, that cannot be confirmed at this stage. the ship's operator has also issued a statement a short time ago saying the vessel is still afloat right now and its cargo is secure. the crew also escaped with just minor injuries the second vessel involved here is a norwegian operated vessel, marshall islands flagged, called front atear, also transporting naptha it is believed a fire broke out on board and all 23 crew men were also forced to abandon ship and be rescued we still don't know who or what caused this incident, but as i pointed out, just before, this is very serious, and also comes just a month after another four

ships were involved in a sabotage attack off the coast of the uae. the u.s. navy's fifth fleet based in bahrain says u.s. navy ships are on site to render assistance and this latest incident, of course, we still don't know if it is indeed linked to that prior incident, but, of course, the investigations are still ongoing, guys. we'll continue to follow all of the developments for you back over to you, carl. >> dan, thank you for that big story here as you can well imagine. dan murphy in dubai. for more on the market reaction to those reported attacks, we're joined by deutsche's chief international strategist alan ruscan and shawn matthews, former cantor fitzgerald ceo good to see you both we usually talk currency and rates, macro, but areinknockwais >> it is about the swing production the swing production sits in the

u.s. >> alan what is this 3% move, yes, only takes us back, what, 36 hours on the price of oil tell us about how the market is positioning for risks around this region. >> yeah, i think at this point the markets just kind of guess at who is a perpetrator behind this that's going to be crucial really in terms of the geopolitical impact. that being said, you see the economy slowly substantially demand is down quite significantly. as an example, global auto sales are down, chinese auto sales are down, all those lead to china. so it is that demand side that is still pulling oil down. that's quite helpful in keeping the shock effect on things like equities down for the time being. >> which leads us right to falling pmis, cooling inflation, calls for a rate cut, journal's got a headline as we speak economist survey, three-quarters say ex-move will be a cut, compares to roughly half in may. >> there better be a rate cut by

july in my opinion or risk assets have some problems. the market is setting up to need that cut and if it doesn't get it, it is going to be a pretty poor summer. i think the market is anticipating those two or three cuts, and i think you should be a little guarded the market is putting itself in a position for perfection. it needs three cuts to continue to go up at least maintain where it is at this point in time you're priced to perfection in credit a lot of things have to happen for us to continue to rally. >> we keep hearing don't fight the fed. estimate cuts have moderated people say don't fight the fed we haven't heard from the fed yet, have we >> we haven't, really. they're keeping their options open, they will keep the options open in june as well we got five beats priced in, in ter terms of a cut it is going to be very dependent on how the tariff talks go, how the g-20 goes, but if we see the ongoing tensions continuing, i would tend to agree, we need a

fed rate cut in july. >> the market needs it, does the economy need it? >> look, global economy is clearly slowing down you're seeing it through all the numbers that are coming out, so i don't think it needs it right now. i think the market is forcing the fed's hand at this point in time >> i think really got to look at what happens in the next nonfarm payroll. we had one number, if we have a half decent number, you know, next month, it is going to be all open again in terms of why should the fed be cutting rates. it is the china story and it is the economic data really and both are in swing. both in play. >> others would argue, i mean, eurozone, industrial production, global pmi have all predated the collapse of talks. so do you think the fed is responding to tariffs and trade or, i mean, are they already looking at a world that was slowing to begin with? >> i think there are a lot of different things we'll take a holistic view

global economy is an element of it, that's slowing the export side of the economy down for some time. the service sector is a question mark, i think. there are other signals, of course, things like yield curve, money supply, there are a host of other things that also point down so i think it is a feeling like, look, the economy is decelerating, a question of how much is it decelerating. >> you've been cautious overall on the markets what have you made of this big bounceback that we saw after a brutal may for very strong june, still tracking for best month since january. you see conviction behind it >> it is very surprising, right? we live in a world with volatility without volume. so you have price discrepancies that move aggressively because there is not that much volume in the marketplace. the passive investing world has created this and it creates more fluctuations in pricing, so i don't think there is a lot of conviction in my mind in this move but it is a real move, right

5%, big move you got to be cognizant of it. the question is what happens to the economy and global economy is slowing down. that's been going on before the tariff news that was out there. >> you said if the fed doesn't signal a cut, equity markets got problems can you quantify the problem >> i think it is another 5% to 10% down you have these massive fluctuations in pricing. we look at -- go back 18 months, where have we gone we're running on a treadmill, moving up and down but they're really in short spurts >> since we have you, alan, you're a currency expert the topic du jour is what happens if the dollar versus the chinese yuan goes to 7 what does that level mean? what does an equity investor need to know about the significance of that level and what it could signal for the trade war? >> we had the chinese central bank governor say that 7 is just a number and he's right in a sense in terms of the medium term but in the short-term, if china

just let the currency go through 7, i think it would be seen as a signal that china to some extent is giving up on the negotiations, not looking too optimistically in how trade negotiations are going forward that's a risk signal in and of itself independent of the whole 7 level really. >> my producer will kill me, some argue to the chinese, 7 is not a magic number you think it is. >> i think it is very important in the short-term. >> all right >> shawn, alan, thank you. we packed in a lot there look at the xle, moving higher on that strong move in crude. on pace as we said for the best day since the middle of january. all the groups top holdings include exxon, chevron, conocophillips getting a boost on the news as well. we're watching shares of lululemon this morning, up big after beating on both the top and the bottom lines athletic apparelmaker raising full year guidance with same store sales raising 16%.

they laid out the company's growth strategy and the big focus that they talked about was men. listen >> our opportunity in men's is our awareness. i think less about trying to change the perception of the brand when unaided awareness suggests you can create the perception we're excited about the performance of our business so far and the fact that with that unaided, we can shape the perception of the brand we want and drive the business and the growth in the success that we see being able to achieve. >> carl, they put out results to back up that point 26% comps in men it is really a story about growth in men's, international, and e-commerce and all of those places within lulu's report shined more than double digits, 100% e-commerce growth in china. they really laid out the risk case against the tariffs and in fact are very little exposed. about 5% of finished goods would

be exposed if the fourth tranche of tariffs go through. that's the one that includes consumer apparel and shoes they're exposed in that they're shipping -- they're going to start shipping more instead of using the ports because of congestion in asia that is going to tick off a bit. >> using more air than ship. the report is titled firing onck easy you do a double take. >> you do. they haven't had lower prices, despite it is a competitive environment and you see sales on all sorts of compete iitors. they have a tough year of comps. 16% is impressive. they're coming off a year where they were posting 15% to 20% comps. whether they can keep that up and keep margin expanding, that's going to be the key question the skeptical analyst on this stock say it is impossible to keep margin expanding when

you're growing so big now and so fast and you're not coming off a smaller base that's the debate on lulu. up a lot today when we return, another public debut, fiverr opening for trade at the nyse. we'll talk to the company's ceo later this hour. presidential candidate cory booker sitti inting down with j harwood. "squawk on the street" will be right back is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater

when we come together. ♪ ...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.

no matter what you trade, at fidelity be go[ laughing ] gone. woo hoo. ♪ welcome to my house mmm, mmm, mmmmm. ball. ball. ball. awww, who's a good boy? it's me. me, me, me. yuck, that's gross. you got to get that under control. [ dogs howling ]

seriously? embrace the mischief. say "get pets tickets" into your x1 voice remote to see it in theaters. beyond meat under a bit more pressure today after we saw the stock jump double digits again still up 400% from its ipo last month. crowd strike moving higher after yesterday's strong debut stock jumping more than 70%. all of this as we await another ipo today, fiverr, opening at the nyse and chewy expected to debut tomorrow we had a long conversation with jim, sara, about the new issues in last few months have mostly been big winners since you take out some of the ride sharing names. >> yeah. so the renaissance capital ipoetf, which tracks the ipos is up 34% this year, more than double the market's 15% return so far this year twice the s&p. i think it makes uber and lyft

even more an anomaly, the ride sharing economics model just isn't selling on wall street for those that say we're in some sort of ipo bubble, i mean, look at the 70 to 100% rises that we're getting in some, you can also point to lyft and uber and say there is scrutiny. not like every single ipo gets bought and bought to the moon. >> judicious that raises questions about is it about the model, about the path to profitability, about the time they spent being private in the first place? right? >> yeah, i think it is about the market opportunity and the superfast growth that's what connects beyond meat and zoom and, you know, some of the ones that have done remarkably well. ride sharing sort of in a different category fiverr interesting today, that's another test of the gig economy, which wall street hasn't exactly rolled out the red carpet for those stocks, i would put uber and lyft in that they also rely on independent contractors to do this sort of selling of technology. so it will be really interesting to see where this stock opens,

above indications now and how well received it is among the ipo group. >> yeah. there is the -- a look at post five, we'll be watching that over the next few minutes. when we come back, why presidential candidate cory booker is calling company buybacks stock manipulation. as we have settled off the opening highs, dow up 46, we're back in a minute my degree from snhu has helped me tremendously. the flexible class schedules allowed me to go to work full time,

run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through.

feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

presidential candidate cory booker sitting down with john harwood to discuss the economy, buybacks and more. john joins us with the latest. good morning >> as a stanford grad and a new jersey senator, cory book heaers powerful friends on silicon valley and wall street he's also running as a democrat in a party that is very concerned about economic fairness i talked to him about his plans for addressing the wide disparity between ceo pay and average worker pay and his plan to curb stock buybacks by making companies devote a comparable amount of money to the workers take a listen. >> we know stock buybacks was in the '80s was illegal, called stock manipulation

we should start having conversations about the structural things that have changed our economy that have couldn't separa concentrated power in the hands of the few and undermined the share wealth and prosperity of a vibrant entrepreneurial society that values labor and the cost of labor so these are larger conversations that we need to have the incredible wealth disparities we see now, and the incentives we're giving ceos on how to make money, remember, we talked earlier, by incentivizing people towards quarterly earnings, and not incentivizing to creating value, not value just for a shareholder, who might hold your stock for ten minutes -- >> is that how you deal with ceo pay rather than direct regulation >> i think we have to have a conversation about how to do that, i'm talking to a lot of -- some of the best economists that really are focused on the values i'm focused on. >> don't have a plan. >> i don't have a plan now

>> cory booker also says marginal tax rates should go up, though he does not want to go as high as aoc. the democratic fire brand in the house. he said no more than 50% he also wants capital gains tax as ordinary income to raise revenue. but he opposes elizabeth warren's wealth tax and a financial transaction tax which some others favor. >> i was surprised to hear you talk about buybacks over some of those other issues, john i wonder how that issue resonates with the public and whether the sort of democratic anti-buyback theme can work. a lot of nonprofits own stocks, households own stocks, a lot of people get hurt when the stock market goes down, which you take away buybacks and you're taking away a lot of buying of stocks >> that's right. this has become a common democratic refrain when they talk about the republican tax cut in late 2017 what they're making the argument

is that people in the middle, the working class did not get benefit from the tax cut and goingbuybacks is a way t dramatize -- it is a complicated issue. cory booker unveiled his proposal last year, he's talking about it in the campaign it has not gone anywhere in the senate question is after the 2020 election, if you have a democratic president and democratic senate, it might go somewhere. >> john, obviously a lot more, an extended version of your interview, got to subscribe to the speak easy podcast wherever you listen great stuff, thank you. >> you bet when we return, a recession warning for regulators, why our next guest says we might be looking at, quote, potentially catastrophic financial events. also taking a look at shares of restoration hardware, the company now known as rh soaring on earnings beat guidance upgrade, we'll break down the results and tell you how tariffs are impacting the furniture world. more "squawk on the street" when

we come back in these turbulent times, do you focus on today's headwinds? or plan for tomorrow? at kpmg, we believe success requires both. with our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. kpmg

welcome back, everyone i'm sue herera here is your cnbc news update at this hour. president trump said he may not tell the fbi if a foreign government offered damaging information against a 2020 rival, telling abc news, quote, maybe you do both, end quote, when asked if he would accept such info from foreigners and hand it over to the fbi. >> i think you might want to listen there is nothing wrong with listening. if somebody called, from a country, norway, we have information on your opponent, oh, i think i would want to hear it >> thursday's legislative meetings were suspended in hong kong following yesterday's violent clashes between police and protesters the government was set to debate the controversial extradition

measure yesterday, when protesters shut down those meetings as well and finally, the st. louis blues are the new nhl champions after defeating the boston bruins 4-1 last night. the winner take all contest completes a cinderella-like comeback for the blues who were in last place halfway through the regular season first stanley cup. that's the news update this hour guys, back downtown to you >> sue, thank you. with a trade war brewing between the u.s. and china -- there are concerns but is the u.s. prepared for the next recession our next guest -- actually, i think we have ipo opening, which is why you hear the cheering behind me, little distracting there, this is fiverr, the israeli company that has been operating since 2010, does a lot of business in the u.s., provides selling and buying options for digital services and it looks like it is a nice pop at the open, up 28%. this company priced at the high

end of the range at 21 opening trades in the 26 region. we'll talk to the ceo. another good indication here on the ipo market >> been a pretty good streak, uninterrupted, though we know that day one doesn't always have long-standing implications. >> but this one was interesting because it is a play on the gig economy. so some people were wondering if it would be treated look a lyft or uber which did not do well, remember, in their opening trades on this idea they rely heavily on independent contractors, and there is always a policy risk around governments and politicians trying to crack down on benefits and wages that's just one aspect similar to uber and lyft clearly 45% revenue growth is appealing in this kind of environment. not making a profit. growing fast and a lot of geographic opportunity we'll talk to the ceo about all of this. >> we will it does sort of remind us, we had a brief period in january,

maybe related to the government shutdown, where ipos came to a stand still. really only took a month or two before we got back to levels we were seeing in the back half of last year. >> i think the better tone in june in the markets we have seen versus may helped things off uber had unfortunate timing. we went public just as the u.s. lifted the tariff rate to 10 to 25% on the chinese imports we'll continue to monitor this ipo, trading up 27% in the opening trades and we'll bring you a ceo interview coming up later in the hour in the meantime, joining us to talk about recession with the latest op-ed in the financial times, titled u.s. regulators are ill prepared for the next downturn is eugene ludwig, current ceo of promontory financial group. welcome. what are you so worried about right now? >> great to be with you. well, this upcycle has gone on for a long time and clearly evidence that there is serious

trouble brewing economy. there is a witch's brew right now of increased leverage, lots of liquidity, consumers getting overborrowed so you can see the elements for a downturn and importantly as i said yesterday in the ft, a number of the tools that regulators need to dampen a crisis have been taken away from them >> like what i thought the banks were in good shape from a capital position, and highly regulated under dodd frank. >> well, when you get into a crisis, crisis really comes about when people get panicky and withdraw liquidity from the market that kind of freeze up can be devastating. what you want to do is have regulators like the fed and the fdic be able to calm the market in terms of fed pumping money into a troubled financial

institutions when they have to, and the fdic being able to guarantee liabilities. those powers were severely restrained in dodd frank so that they have lessened their tool kit, some of the most powerful tools have been taken away and that's not a good thing. >> i wonder what you made of powell speech about corporate credit, corporate debt, specifically, a couple of weeks ago, and the framework he used was it is not the end of the world, it is not great either. it is somewhere in between how do we work to understand where his thinking is on this. >> well, i have a lot of respect for chairman powell and -- if he says things that are too alarming, the markets get spooked. if he says things that are too tame, has the other effect so he's been judicious and a good leader. but what i'm seeing out there, and i think many are, are an

enormously overheated leverage loan market with terms that maybe historically poor, a lot of it is outside of the banking system, but the banking system will be affected by it, so we're seeing a buildup, which you expect to see at the end of a cycle of some dangerous trends >> can't the fed just keep it going for a long time by lowering interest rates, getting back into qe we're not even close to the negative rates that our friends in europe and japan are facing. >> well, the feds certainly has powerful ability to stimulate the economy. but our interest rate environment is i had store ab environment is historically low. perhaps more importantly, the world is awash with liquidity. and for the fed to lower rates and take other measures that add liquidity into the system now has the huge danger of increasing the speed and size of

any bubbles that are created and as you know, financial bubbles are -- can burst and it is very unpleasant situation like we had in 2007-2008. >> are you arguing that they would be accentuating animal spirits at an inopportune time or pushing on a string given all the ample liquidity. >> if it is very, very tough stuff and that's why it is important for us to have and we do have a highly competent federal reserve board. you got to have all of the data available to you, and you make a tough judgment if you loosen up too much, you're just making the conditions relevant for the next crisis and it is a very tough set of judgments, but, yeah, they could get us in real trouble if they act too precipitously and so far they have been very judicious. >> warning noted separately, wanted to ask you

about wells fargo. plenty of reports lately indicate this is a bank having trouble finding a new ceo. it is now under the supervision of the federal reserve and the office of the comptroller of the currency, which makes it harder. do you think -- how difficult is it for this company to find a leader >> you're probably -- let me be a little elliptical in the answer i don't talk about individual financial companies because we do so many things in terms of building their compliance systems and risk management systems with the entire industry but i can say this, one of the most interesting aspects of wells fargo situation is the degree to which social media globally is exacerbating and making more volatile individual conduct events the conduct events which are complained of in wells fargo are real but the swirl around that is bigger and more notorious

because of modern technologies and importantly social media to fight those technologies, in addition to the traditional tools of culture and tone from the top, what we need are advanced technologies in these institutions that are able to identify problems early and act on them with vigor so wells, in a lot of ways, is emblematic of a worldwide phenomenon that is of considerable importance to consumers and everybody else. >> eugene, thank you for joining us >> nice to be with you restoration hardware big mover today, soaring on an earnings beat. stock is up around 20% seema mody joins us with more. a lot to dig into here. >> certainly, sara rh, a big stock to watch today up about 20%, better than expected earnings. also laid out its strategy on how it is planning to respond to tariffs saying it is selectively raising prices on certain items

to offset higher tariff related costs and moving some production out of china while also setting up its own manufacturing facilities in the u.s. about 25% of its merchandise value is sourced from china. rh joining a growing list of retailers proactively trying to reduce exposure to china williams sonoma ceo telling cnbc in mid-may it is moving product to vietnam, indonesia, the u.s., and trying to renegotiate contracts with current manufacturers in china to reduce prices the question is whether this strategy will pay off. and li analysts point out it doesn't always guarantee success, especially in countries like vietnam, a country struggling with reliable sourceable electricity, among other challenges we are looking at the stock up about 21% here it has been a volatile stock to watch, though, post earnings, which we should point out in q 4, earnings down 22% the day after. and before that, the stock

jumped about 11% so certainly been a volatile name to watch. in short interest, relatively high, 30% of its float back to you. >> i think this is so interesting because if you're a trump supporter of the trade strategies and the tariffs, you say, look, it is working, they're moving manufacturing out of china, looking at doing it in the united states. if you're not, you say, look, it is making the american consumer pay more they're raising prices on the american consumer. right? it is a tale of two different sides. >> it is like this dual strategy, and one way they're allowing the consumer to eat some of the cost by raising prices, but at the same time, actively looking to source goods from other countries like vietnam, philippines, cambodia, that have manufacturing hubs success is not always guaranteed in those type of countries electricity, big concern, in a country like vietnam and the quality of standards do you get the same quality if you do source goods from those

type of countries. that's always the big risk, right? >> an amazing story. the jpmorgan analyst calls it a grand slam quarter really very little not to like about it we'll watch it closely seema mody as we go to break, take a look at shares of fiverr at post five appropriately. nice public debut up 27% we'll talk to the company's ceo momentarily. back up 77 points on the dow don't go anywhere. incomparable design makes it beautiful.

state-of-the-art technology makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $359/month for 36 months. experience amazing at your lexus dealer.

jeremy siegel says the fed should cut rates now, but won't. find out when he thinks they'll make their move on tradingnatn.bcom resqwkn the street" coming up.

welcome back to "squawk on the street." a quick market flash on callaway golf we'll turn to kate rogers. hi, kate. >> shares of callaway golf surging up more than 14%, h

hitting the highest level in more than 6 1/2 months after the partners disclosed it has taken a 9.2% stake in the golf equipmentmaker they believe the shares are, quote, undervalued and presents an attractive investment opportunity. the hedge fund added it plans to discuss strategic alternatives with callaway's board, including a potential sale of that company. as of the latest filing, they did not own any shares of callaway stock is on pace for its best day since october of 2013. back to you. >> kate, thank you very much. getting a headline out of southwest airlines as well saying that the extension of the 737 max cancellation is going to go into september and echo of what we heard from american airlines and we had ed bastian, they don't carry the max, at code saying the return to service will take longer than probably anybody would like in his words. >> southwest saying the revision will proactively remove roughly

100 daily flights from its schedule i guess until they have to figure out what to do until we figure out when -- whether those boeing 737 maxes can get back. >> there is convincing passengers that they should get on board. >> another can of worms. >> to rick santelli. good morning, rick >> good morning, carl. thank you. we like to welcome peter bookfarb you saw the price data today, cpi, ppi, doesn't seem to be a lot of inflation, it is very hard to pick up anything regarding the trade infractions. your thoughts. >> most of the impact from the tariffs have been on global sly chains, manufacturing, which and on a global base sis now in a contract physician you look at the jpmorgan figure from the price perspective. the current sy has been absorbing a bunch of the price increases and the chinese possibly have an absorbing it.

not really filtering into consumer prices yet. the 25% tax now on the $200 billion, if it shows up, that will show up in coming months, rather than what we saw in today's import numbers. >> i always like discussing conventional wisdom. conventional wisdom, markets performance, a lot to do with the fact that the ease is built into the back months of fed funds and so it is going to happen i say maybe it is the strategic macro of the fed, not tightening as much as they had anticipated without paying much attention to the active market and economy, which they are now doing your thoughts. >> i would say it is a combination. you look at over the last ten years, every single major market rally was predicated on either the fed hinting that they were going to cut or was bernanke, jacksonsaying they're going to do qe or end the qe and everything really is people are conditioned to buy stocks on

some sort of fed easing. a pivot is a form of easing. saying they're not going to hike in a sense for markets is a form of easing and now that they believe they may actually ease that conditions us even further. >> when i look at the back months of the fed funds, i have a hard time thinking they're going to be correct. and they have walked it back a bit. i guess in the final minute we have, if we look overseas at what is going on with mar yio draghi and getting together to address it, i think that's a much more important issue in the long run for sustaining the global expansion, particularly the u.s. expansion your final thoughts? >> i agree we want stable currencies and i know everyone is pointing fingers at when is manipulating their currencies as long as central bankers believe the rates should be close to zero, they're all manipulating currencies. who is doing it to a greater degree than the others we want stable currencies, not a strong one, not a weak one,

stable currencies. >> excellent peter, you sound a lot like dr. judy shelton with that mentality and i totally agree. thank you for joining me today sara, back to you. >> rick, thank you coming up, the ceo of fiverr, that company's stock soared minutes after its public debut on wall street but first, let's send it over to jon fortt, also back at the new york stock exchange with a look at what's up next on "squawk alley". >> a lot of talk about pressure, regulatory pressure on big tech. we have doug melon, the former head of antitrust for the doj, what he's got to say about what tech really should be thinking about and who is in trouble or not might surprise you that's coming up

what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale.

mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

israeli based freelance service provider fiverr making the debut at the new york stock exchange it is surging in its early debut, up 30%, valuing at more than $800 million. joining us now, first on cnbc to discuss the company's ipo and the broader gig economy is fiverr ceo micah kauffman. welcome and congratulations to you. >> thank you >> for those that aren't familiar with what you do, you're connecting buyers and

sellers of digital services. what does that mean? >> so basically fiverr connects freelancers with businesses of all sizes. and really the uniqueness of the platform is that the experience of buying a digital service on fiverr is very similar to shopping shopping on amazon. you browse, you search, you find something, click, order and it's done. >> what kind of services are the most popular. >> graphic design is one, content marketing, video. few, marketing and advertising. everything you can imagine. >> i see voice over work is one of the squares we're looking at. >> correct. >> so if i wanted to do voice overs on the side, i would upload a demo of my voice and others would be able to sample it and hire me within minutes if they wanted to. >> within one click. basically the system helps you product your offering so you can

define what you're offering, how much time it's going to take you to deliver and the asking price. all the buyers have to do is screen through the offerings, find something they like, click, order, pay and that's done. >> subscription model, you take a cut of the contract? how does that work >> basically we take a take out of every transaction it's one of the industry leading take rates of over 26%. >> you're growing fast, 45% revenue growth last year but you're still burning through cash, what's the margin of profit ability. >> you look at the margins they're shrinking. we continue to grow aggressively while shrinking our negative ibeda, there is a clear path. >> you have wide-spread, global -- >> correct >> how many countries did you say? >> over 160. >> what are the engines of growth in that global picture? >> it's really the adoption of

freelancing online theoffline freelancing market is massive we've estimated that market to be $100 billion in the u.s. alone. europe is 1.5 times bigger than the u.s. there's over 162 million freelancers between the eu and the u.s. so the opportunity is massive. and it's just starting to come online this is like 1995 for ecommerce. it's so exciting >> the way you measure your market opportunity is based on how many people are freelancing this sort of service >> so in the categories in which we operate, there is a volume of activity of $100 billion in the u.s. alone and it's still single digits percentage online. it's very old school business. the way people usually find freelancers is they post on facebook -- >> it sounds like price list.

>> right there's no bidding, betting, negotiating. it's browse, search, buy it's a digital experience. the average time to make an order on fiverr is 15 minutes. it's unbeatable, unmatched. >> global recession, what happens to digital content that case, what are the risk factors? >> i think that we can actually benefit from a recession i wouldn't want to test that theory but i think that in a downturn, what would happen is that more people are going to look for ways to make money, so the supply is pretty obvious and more businesses would like to focus on getting things done rather than hiring people. on fiverr, you don't hire anyone you buy well defined products. >> are you going to get embroiled -- are they contract employee, do they deserve benefits we're going to have that debate

over the next few years, at least in this country. >> fiverr doesn't hire its freelancers. it's a market that connects freelancers with businesses that have their digital needs >> were you at all nervous to go public at a time where the other gig economy stocks, uber and lyft did not have a welcome reception on wall street >> i think the market is choppy in general so there's always a risk but we're not here for day one we're not here for the opening price. we're here for the long haul and that's how we think about the business so i think that in general, the markets are good, reception is great, the opportunity is amazing, the growth is high. so i think this is a great opportunity for us to have that growth while gaining the market trust. >> who's your primary competitor >> definitely the offline market i don't know if it's 96 or 97% of the activity offline but we don't need to eat anyone's lunch

to grow. we need to move off line activity online. >> what are you going to do with the currency you raised today? >> it's mostly working capital to fuel our growth and path to profitability. >> to be clear, if there was a policy movement in an effort by certain democrats that are talking about this to characterize contract workers as employees, giving them benefits or wages you're saying that wouldn't affect you? >> the way the market base is structured is such where we don't have any employer/employee relationship. >> but that's because you're relying on freelancers. >> we are not relying on freelancers. we're connecting that supply with the demand. we're the platform they conduct their transaction and we provide that platform to make it happen. >> i guess it is different than uber and lyft if that sense. >> it is very different. >> you added 10% just talking to your opening trades here

now nearly a billion dollars in market cap that's fiverr going public here. meantime, sarah you'll have your hands full this afternoon. >> we have two big guests to tell you about today on closing bell, a rare interview with former disney ceo michael isner. it'll be interesting to get his take in the crowded streaming wars also we're going to talk to isaac larian, the ceo of mga entertainment. the company tried to are merge with mattel. mattel rejected it that should be high drama. they make brats dolls. >> we're well aware. >> that applause was for you not for me. >> on a seven second delay we'll see you this afternoon, sarah. sidewa"squawk alley" is up .

market shares were up close to 35 points, don't go away that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool. ♪

man: stand up if you are a first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent.

but it doesn't equally distribute opportunity, and paths are not always the same. i'm so proud of you, dad! man: i will tell you this, southern new hampshire university can change the whole trajectory of your life. good morning, it's 8:00 a.m. at facebook headquarters in california, it's 11:00 a.m. on with wall street, and "squawk

alley" is live ♪ ♪ cutting in the deep ♪ rolling in the deep ♪ you had my heart inside of your hand ♪ ♪ wish you never had met me ♪ and you played it to the beat ♪ ♪ rolling in the deep ♪ baby i have no story to be told ♪ ♪ but i found one of you and i' going to make your head burn ♪ ♪ think of me in the depths of your despair ♪ welcome to "squawk alley." we start with facebook today, continuing concerns over mark zuckerberg's commitment to the company's privacy practices. the company is rebounding after the journal report sent the stock down 2%. stephanie,