it is 5:00 a.m. in new york and here's your top 5 at 5:00 stocks looking to rise again even as the earnings picture gets more cloudy it remains all about the big tech juggernaut as one index continues to out perform the rest, up 7% in 7 days. this as coronavirus cases cast a shadow on the markets and america. one area seeing a resurgence you have a possible $70 billion technology deal ready to be announced as soon as today and call it the wallet wars.

the ceo that just passed warren buffet this is worldwide exchange right here on cnbc well, good morning, good afternoon and good evening from where ever in the world you may be watching. happy monday it's good to be back with you after a couple of days off and with all due respect to the bengals it may be another manic market monday. futures up higher 125 points now speaking of earnings, investors don't seem to care major averages they have been on a tear the nasdaq 100 is up nearly 7% in just 7 trading days this month. with ten stocks in that index up more than 10% in july alone

that's lead by the remarkable 43% jump this month. you have bank of america, johnson & johnson, and all set to open up their books this week now to date more than 180 companies in the s&p 500 have completely pulled the earnings guidance in the wake of the covid-19 induced crisis. wall street now staring at the widest dispersion in earnings estimates among analysts it's all the way back to 2007. with earnings projecting to have fallen 45% in the second quarter from a year earlier. energy, consumer discretionary and industrials all expected to get hit the hardest. it's analog devices. not a name that we talk about a lot but we're talking about it now. it was in a deal to buy maxim integrated products.

the deal that could be announced as soon as today would rank as one of the year's biggest takeovers after months of rather lackluster activity because the pandemic would also follow a recent flurry in the wake of uber $2.5 billion deal and the nearly $10 billion take over of dominion energy natural gas assets we're watching that. meantime, the story to watch right now is not here. it is in china because that market remains red hot their nasdaq if you will, the tech heavy shen zen index. all the more often talk about shanghai composite was up nearly 2% any local investors in china quoted as saying things like it's an i can't lose kind of market but others are more worried about a 2014 like bubble you think our market has been hot? look at china up again. >> let us stay state side for

now and try to understand why stocks keep going up earnings estimates keep coming down we're joined by victoria answer the question i just layed out. earnings are going down, stocks are going up i don't understand but i'm assuming you do. what's going on? >> well, i don't think the markets are really focussing on earnings this quarter per se you just spoke about the number of companies that pulled their guidance people already expect the second quarter to be one of the worst quarters we had in many, many years down, i think 43% quarter over quarter so i don't think that's the focus i think what the markets are looking at is that we got another fiscal stimulus plan that's going to be coming in the next couple of weeks probably around 1 to $2 trillion so people are looking at that. they're looking at the recovery we're seeing in other parts of the world. you just spoke about china's index. howell that's doing.

we're seeing europe reporting better numbers they're looking at expectations of a vaccine coming. we had a lot of news on that and we can't forget that the federal reserve stepped in and said low rates are going to be around until at least the end of 2022 that's going to help valuations on the equity side the market is looking at those factors probably not focussing on earnings per se >> ironically and kind of bizarrely the worse the numbers get whether it's virus cases or earnings estimates, the more likely we are to get another or bigger stimulus idea so it's like the idea that the worse the headlines are the more financial support may be provided the market. do you buy into that >> well, i think it's the old bad news is good news story and there is some of that right now. obviously if things start to get much better and we have more of a v shape than a w shaped

recovery, the federal reserve may reconsider their stance at holding rates. their guidance may change a little bit and all the talk about yield curve caps that may go away. the more that we see the economy struggle as it starts to open up, the more we're going to anticipate it whether it's monetary or physical and we're going to see larger deals come in and even if it's something like infrastructure that a lot of people are looking at those shuttle ready projects that people have the concern is looking at consumer demand. we've been watching consumer demand >> everybody went out to the store and bought the same

things chicken, bleach, toilet paper, paper towels those products got sold out. the stock market is looking like the same thing everybody is buying the same six or seven stocks. you know them and i don't want to give away our rbi at the end of the show but do you worry this market is getting so top heavy. >> yeah, we have seen the nasdaq as you mentioned earlier, really move up 7% or so all of the tech heavy names are in there it's a play for a lot of people anticipating the work from home and the data infrastructure needs that we're going to need going forward for people to accomplish that goal i would be a little cautious going in at these levels we anticipate more volatility. use that as opportunities to start a position in these names if you don't already own them. >> so don't buy into the frenzy

right now i think is what you're saying victoria. >> correct you can look at longer term trends that you think are going to be there. we're doing that some of the cloud business and internet businesses but don't dive all in the deep end at this point in time. wait for a better opportunity. >> call it a star is born market see what i did there global investments well, outside of the markets the virus cases continue to rise in states like florida and arizona and new tensions on capitol hill and the government response to the pandemic and it's messaging are topping your headlines this monday morning for more on that let's get to courtney reagan for more hi, good morning, it's good to see you. it works to marginalize him and his warnings about the

shortcomings in the u.s.coronavirus response a white house official telling nbc news several white house officials are concerned about the number of times dr. fauci has been wrong on things including fauci saying in january that coronavirus is not a major threat and not driven by asymptomatic carriers. this as florida reported a record 15,300 new cases, the most by any state in a single day since the pandemic began elsewhere, wework is set to see positive cash flow and profits as soon as 2021. that's a year ahead of schedule. this according to the company chairman and interview with the financial times. a massive cost cutting drive is helping the company sure up it's finances while the pandemic lead to robust demand for its flexible office spaces and u.s. officials are weighing sanctions on china over it's recent moves in hong kong including targeting specific chinese officials and trade measures

analysts know however hong kong status is a global financial center limits the number of available options as any extreme sanction against hong kong's financial system risks hitting u.s. and other western companies and consumers. >> courtney, we'll see you in like 2 minutes thank you very much. so much more to do when we come back including seeing courtney again. the one sector most at risk when it comes to reclosing parts of the u.s. economy amid new pandemic fears plus sounding the alarm over a possible market red flag it looks worse in some ways than it did in 1999 that's your rbi and it's coming up but as we head to break, a check on a few stocks trading at all time highs alphabet, dominos, adobe, tesla, and nvidia to name a few other words it's all about online ads, beer, pizza,

electric cars and cleaning a sign of the times if trehe ever was one we're back right after this. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

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and xfinity is your home for the return of live sports. welcome back retail continues to keep a very close eye on the pandemic and the surge of certain areas of the united states as they look to reopen and in some cases reshutdown courtney reagan is back with a

retail update. a reclosure, re-shutdown i just know that it's re-bad for retail. >> i wasjust going to say it's not good whatever you want to call it. the pandemic we know wreaked havoc on retail with historic mandated store closures pushing some into bankruptcy and damaging even the strongest of players. the damage is far from over. covid cases are rising and others have warned they might have to follow suit. levi ceo said there's about 40 locations that it is watching closely. every monday, wednesday and friday they're possibly in danger of reclosing on local statistics. sales at stores in texas were improving as the economy reopened but several weeks ago as cases began to rise in that state, macy's saw corresponding 15 point sales drop in stores in texas. now they ran a scan of the top

retailers by most locations. in arizona, texas, florida, california and north carolina. these were states with rising virus levels to see which might be most in danger if store closures are again mandated by local or state governments over half of ross stores and guess u.s. locations 45% of locations are in those five states. 28% of 5 below stores and 26% of american eagle too now kicking them while they're down, there's a number of retailers that are already considered quote distressed and on bankruptcy watch list that happened to also to have a lot of stores in these five states including 35% of party city locations. 28% of lane bryant stores. that brand is owned by them and the parent company did recently warn that bankruptcy was a possible outcome of their current scenario tuesday morning that's already in chapter 11 and 40% of its stores are in the five states.

29% of bankrupt jcpenny stores are in texas, florida, california and north carolina. brian. >> yeah, that's about 35% of the total economic output of the united states and the states right now but a lot of these names, like dress barn, they're former private equity buyouts, are they not let's be clear a lot of the company that have filed or are at risk of filing have the bloated leverage balance sheets because they have already been the subject of a leveraged buyout, have they not? >> yeah. so a lot of them are that is a really good point but then you have a name like taylor brands we didn't bring it up there but that's the parent company of joseph a bank and men's warehouse among the other men's dress clothes makers and that's another name that is also in trouble now. that one wasn't necessarily at least in my recent memory a private equity buyout but it's obviously lost a lot of ground and you make a good point which

is the parent company of lane bryant we mentioned but also owns justice and loft and anne taylor they bought anne in 2015 for a little over $2 billion and ever since they bought that they really have had a lot more debt and have had a lot of trouble getting out of it. so debt, private equity is a big problem for a lot of the names getting pushed to the edge. >> yeah. you mention that first start dress clothes, i wonder -- i'm very loath to use terms like forever and never. a lot of people throwing that around we'll never do this again. we'll never go back to an office who knows what we're going to do but it's like those stores, i do wonder if the dressing up is over in the near term. >> it's definitely another blow to a name like taylor brand. >> it's tough. i'm the human mull let i have party up top and jeans on the bottom to. >> we all are i think. >> courtney reagan, we'll see you in a bit i'm not going to say anything else thank you very much.

still to come on this market monday, the great is back with us and she'll talk about how a quite but potentially dangerous shadow war is beginning to develop in iran. cannot afford to miss that futures are higher oil down a bit we're back right afterhi ts. my name is christine payne, i'm an associate here at amazon. step onto the blue line, sir. this device is giving us an accurate temperature check. you're good to go. i have to take care of my coworkers. that's how i am. i have a son, and he said, "one day i'm gonna be like you, i'm gonna help people." you're good to go, ma'am. i hope so. this is my passion. if i can take of everyone who is sick out there, i would do it in a heartbeat.

all right. welcome back and good morning.

well, the global economy attempting to recfo from covid-19 the pandemic created a unique opportunity to diversify global supply chains and invest in emerging markets in africa, joining us now to discuss is the managing partner at bayless emerging markets. they're a private equity firm. it's great to have you on. thank you very much for joining us on cnbc we often argued that in many ways africa may be the continent of the future because the demographics are so positive some of the youngest and most vibrant economies in the world, specifically where are you looking to invest on the continent because it is big and in what types of companies and countries? >> thanks for having me on good morning to you. very early morning in new york thanks for having me you're exactly right we see a lot of opportunity on this continent

there's 1.2 billion people in africa overall and many of those people very young as you said. they expect to be 4 billion people and one in four of new babies being born over the next 25 to 30 years are expected to be in africa in terms of where we focused we looked at west central and east africa and the reason for that are some of the demographic trends but also there's limited competition there in terms of deals that we look at, investments that we tried to pursue and so, you know, we're more or less look and smell like your average middle market firm in the united states and we look for similar sorts of opportunities with very sort of clear investment parameters in terms of companies that manufacture primarily. we look at the manufacturing and industrial space again because this is an area that's really underdeveloped and generate returns in those areas and also be paid a fair sort of

compensation for your capital and the risk that you take is strong in those sectors. >> yeah. saying that the optimism there was contagious the people in the economy seems to vibrant but what are the returns that you're looking at what types of capital returns can an investor expect in countries like that and the reporting requirements on the financial side not only vary greatly by nature of course and they aren't necessarily as stringent as many investors would like >> absolutely. you're exactly right i think that you'd be surprised. in 2018, there were about 18.9 billion dollars under management institutional sort of management that we understand that we'd be familiar with on the continent of that around 12.9 billion is

market rate of return and obviously there's a lot of development investors in africa and of that pot which is a very small pot, 12.9 billion if you think about how many institutional funds there are and in north america alone it's a drop in the bucket the return on that was 6.5% and you compare that to developed market overall at 6.0, it's the second best performing region in the world besides southeast asia for us we're a typical pe shot so we're promising or at least trying to go affairly high levels of rates of return and i think that you get that by looking in sectors that are underappreciated and for us that's the manufacturing and industrial space where you have both local governments and also foreign development

>> did they have the infrastructure now theoretically could a country, ghana, whatever it is, some of the countries on your list, could they take manufacturing and supply chain away from china or vietnam or mexico or even the united states? do they have that infrastructure there now? >> no, you're hitting the nail right on the head. i think that they're a ways away from doing that and they're going to get them to capitalize on the opportunity and they're in a very interesting moment this geopolitical struggle between east and west and they shake out positively for a place like africa and in some ways it's geopolitically friendly and also sort of has less of the concerns or other regions and i think covid-19 has thrown a spotlight on diversifying away from east asia >> literally and figuratively, a

9 or 10 day shift, not 30 days and a great story there. thank you very much. i have to correct you, frankly, it's not that early. come on. >> absolutely. >> thanks very much. >> thank you, take care. >> straight ahead we could have a $70 billion technology deal today but really not on names that we ever talked about. the fire brand ceo, you know him, one of the richest men in the world elon musk, congrats. another headline for you coming up after this. dow futures up 122 we're back after this. hike!

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meet the new boss, same as the old boss futures higher aztec nolg kee-- a as technology keeps rolling on this despite the kick off of what could be the worst quarterly earnings season in decades if not ever and could it be another opec price war on the horizon. how about a war in iran here on why the oil market is not as calm as it may look. it is monday july 13th this is worldwide exchange right here on cnbc

>> all right welcome back good morning thank you for joining us here on this monday july 13th and here's how your money and investments look as we are just about halfway through look at those futures, the bottom right of your screen, they are green on the screen once again look at that dow futures up 133 of course you know this but if you don't we're going to tell you. the major averages, this very been on a tear did you know this, the nasdaq 100 up nearly 7% in just 7 trading days with stocks in the nasdaq 100 up more than 10% in july alone all of this lead by the remarkable 43% jump this month to of course yes a new all time high and it's not just tesla back at record highs amaz amazon, alphabet, take-two all

at all time highs. it's the stay at home, work from home economy that continues to work for investors also outside of tech it's the stuff that we're consuming at home that's doing well pizza, beer, tractor supplies, okay some of us are consuming that and clorox all in record territories again. it comes down to cooking, staying at home, ordering in or deep cleaning. but this week it's all about earnings as companies gear up their quarterly results. the big banks will be in focus bank of america and morgan stanley pretty much all of them reporting their results this week this quarter will shall we say be a tricky one. more than 180 companies in the s&p 500 pulled their guidance for the year due to the lock downs leading to the widest spread in estimates among analysts since at least 2007 now overall earnings are

expected to drop nearly 45% from a year ago with energy consumer discretionary and industrial companies all expected to see the biggest drops. managing director and contributor and as i saw over my vacation week in wisconsin a boxers man over brief. i'll never let you forget that it's okay. listen, i'm not going to throw a giant bucket of cold water on our network coverage over the next two weeks but do earnings matter right now or is it really just all about the guidance. >> it's mostly all about the guidance this isn't even something that's specific to the times of covid it has morphed into tech week and bank week. tech week is 60 to 70% of the importance of the entire

earnings season and banks are about 30 to 40 it's going to be a lot of dividends in banks we want to hear some sort of confidence from them as well it's a big deal. the market has to look at an unknown binary regularly so getting through earnings season will be a positive just on its own is it a big deal not as much as usual because we know that they'll be terrible but if they beat it it will be good. >> maybe you agree and maybe you don't. tell me that wells fargo may have surpassed boeing as the most important stock in the market i say that because number one, i think the second largest mortgage holder in america a lot of defferals going on. are we looking for charge offs

what -- the quarterly earnings number won't matter. what is the metric we need to hear from the banks to give us confidence >> well, sadly i think it's such a complicated thing that we're not going to know who it was for perhaps months after this. so i'm not positive yet as to what exactly i'm looking for i'm hoping that we digest it all and say that's pretty interesting but the mortgage part of it will be a big deal too. so far we have seen in the broader economic numbers we have seen less bad. obviously bad numbers but not nearly as bad as we have expected so i'm hoping to see some sort of that data from wells fargo. >> yeah and we have our rbi coming up later on i don't want to give too much away but it has to do with the amount of stock at the top of the market and i know that i'm a bit of a broken record here. i get it it's the strategy that works

the entire russell 2,000 do you worry that that's a top heavy market or that it's a great opportunity to find smaller names that would eventually maybe get some attention. >> i absolutely worry and it's because of a couple of different things the obvious part of it was the stay at home stocks and the new world that we're coming into but the reality of it in my mind too is that when you look at the world central banks and federal government of us throwing all of this money into the system it tends to like go to safe havens and i think that the market has just become the knee jerk that these companies are the ones with the best balance sheets and they're becoming a store of money and it's a little bit dangerous. and i think that you're silly if you're not looking for something to be worried about.

have a good one. we'll talk to you soon now let's talk about the oil markets. prices have slipped a bit. sources say that the alliance of course lead by saudi arabia is now pushing opec to relax. and supply cuts that have been in place since april and increase production beginning in august and all of this amid signs that global demand is starting to return the normal levels and you also have some really dangerous things happening. let's talk about all of this with the global head of commodity strategy at rbc capital markets and cnbc contributor. before we get to iran specifically, opec plus, do you expect them to take their foot off of that gas pedal or is another potential price war

coming >> i mean, i know another potential price war is coming. what it looks like is they're going to taper on time so what we're looking at is they're currently cutting by 9.6 million barrels a day. they're expected to ease back by about 2 million barrels a day. so it will now become a 7.7 million barrel a day cut one of the things that the saudis have been particularly focused on is getting compliance in a better place they made progress with iraq and nigeria. so i think they believe compliance is in a place where they can start putting the barrel back on the market but the key questions are is the market strong enough to have more barrels on the market will we potentially see a second wave of covid-19 what is going to happen with libyan production. it's pretty unified at the

moment but can the market really absorb all the barrels i think they believe that the market set up to do so but time will tell. >> what do you believe >> i mean, i think if you look at the improving demand picture, i think that we are seeing, people are starting to drive again but there is a concern again about what happens with this second wave we're not seeing lock down positions but that would be something to watch for do we start seeing states reimpose stay at home restrictions we are seeing a significant improvement in demand. but that is sort of hanging over the market we just don't know what's going to happen in the fall. >> you look at things like the mobility and high frequency indicators back in early march many of them are not at normal but closish to normal. it's as elegantly as you do over

the weekend. what -- is this a civil war that's potentially happening in iran or these outside influences. >> no, i don't think it's a civil war. i think that the type of attack that we have seen, we have seen a spectacular attack on key iranian military infrastructure. we had an attack that happened just about over ten days ago significant damage to the major facility and potentially setting back that program by up to a year we had a mysterious explosion in a facility where they produce ballistic missiles and all of this is leading to speculation that israel potentially with the blessing of the united states is using this window of opportunity to do significant damage to the iranian nuclear facilities believing that the iranians are either too weak or don have an incentive to respond and the key question is as we go into the

summer, as we go into the u.s. election, is there a trip wire where something happened and the iranian leadership said enough with restraint potentially bringing back up to a million barrels. the un arms embargo is expiring in october so potentially they have a lot of reason not to respond to these type of attacks. they're doing significant damage and they're starting to unnerve the iranian leadership. >> certainly an important global topic. not getting a whole lot of attention. always a pleasure. good to see you and we'll talk to you soon. take care. thanks. >> coming up, i guess you can call it the billionaire shuffle as elon musk overtakes warren buffet when it comes to wealth

robert frank is crunching the numbers to tell you just how rich elon musk is right now. but as we head to break. here's the other top headlines it could be an all stock deal worth about 20 billion 70 billion if you include debt it could be announced as soon as this morning meantime, the aforementioned tesla cutting the price of the new model y. the suv is now being listed for $49,990. 3,000 less than before and washington, the nfl team set to announce that it's changing it's name from the redskins. according to reports, the owner dan snyder will announce the shift this morning all following pressure from corporate sponsors including fedex and nike the teams new name not expected to be revealed, however, although red tails and red wolves are apparently the leading candidates

worldwide exchange is back in a moment futures are up 157 we're back right after this. now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at shopsmall.com.

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the oracle of omaha. i'm going to just take a wild stab that it might have had something to do with tesla's stock but i'm just literally reaching for straws here >> it's right. it's just on friday and added $6 billion to his wealth. that brings his total to over $70 billion. he's now the 7th richest man in the world. and buffet actually started the year $60 billion ahead of musk but buffet is down 20 billion and musk is up over 43 billion as you mention due to his 21% stake in that incredible tesla stock. now he could get another boost this month from his big pay package which is actually based on certain targets now musk got the first one back in may those were options valued at now

about 1.8 billion. it's the second payment of the package if tesla maintains at $150 billion his current market cap is 286 and he gets another 2 billion plus in about two weeks if tesla's shares remain flat or increase now i know what even is interested in here is the real battle which is between musk and jeff besos besos is worth $189 billion. so what would tesla stock need to get to for musk to reach besos. that number would be $4,200 which seems insane but so did over $1,500 for tesla stock a few months ago so we'll see. >> 4,200 i remember when funding was secured at 420. >> that's right. >> how rare is it that these type of ceo packages are tied to

things like a stock price. is this sort of novel and unusual when it comes to c ergs -- ceo compensation >> it's not in that there are other metrics but in this case it supersedes the other metrics. there really isn't a salary component. musk doesn't collect the salary but the ul number over the total ten year pay out is over $50 billion. now at the time and the stock could never reach these levels what's astounding and different about this versus others is that how quickly he's hitting the targets. people thought he would never even reach let alone within a year >> yeah. it will never reach -- i learned never say never with one elon musk building solar panels, tesla by the way sending rockets into orbit and coming back down

one of the other parts of musks empire and is it really all about tesla. >> so the increase is all about tesla but space x to his network adds another $15 billion so just the stock part of tesla is about 55 billion for him. and that's another number that could go up in the coming years depending on what happens. and he's going to get even richer. >> elon musk whatever you think of him he's a leader and certainly changed the car game thank you very much. have a good day. >> tech continuing to fuel the market rally tech may be the market rally what does he think about it? is there risks hidden amid the record highs we'll talk more about that as a reminder as we're all getting back on the road, you

might want the app while you're traveling. download it today. still looking pretty empty dow futures though, they're full up 153 we're back right after this. ta-da!

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my chair... and my phone. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ welcome back well it is now time for your morning rbi. the most random but interesting thing you're going to hear all day, at least as the stock market is concerned and this one comes curtesy of them. we have talked a lot in the last year about what we call market structure. how the market is so top heavy with the fang stocks and a few other big tech names dominating the entire market. and if you don't believe us, take a look at this, the s&p 500, the top 5 stocks in that index are now one fifth, one fourth of the entire index 5 stocks, 25% of the market weight look at that chart going back to

the early 1960s. this is nearly 10% heavier than it was back in 1999. now we have been here before believe it or not i have no idea in the early to mid 60s there were 5 stocks, probably all some sort of weird con glglomerants a had a higher market weight and dramatically up from even a couple of years ago. is that a problem? is it a risk or opportunity? it hasn't been the power of the market but you better hope those 5 or 7 stocks continue to go up. random but hopefully interesting. let's talk more about that in the overall market with the chief investment strategy. i could have pointed out the same chart a year ago brian and it wouldn't have mattered they continue to go up. the market continues to go up. are you worried that that is

just too much in too few names or does it matter at all >> thanks for having us, brian, we're not worried. we think that fundamentals at the companies are showing. it's really random but interesting that the five stocks that you listed on your list there, that really cool chart that jim put out and we put out a similar chart as well and it's very important that people see that this has happened before. it was the conglomerant and they were not tech stocks amazon, baseball, google, netflix our communication services stocks. not to be technical or anything like that. but i do think that clients were really losing face with perspective side and these stocks were strong before covid as you said a year ago. they were strong during covid and they're going to be strong after covid and that really has

to do with earnings cash flow, company management and longer term secular themes so we're still overweight both communication services. with respect to our u.s. strategy work. tried to explain it over the past weekend talk about all the etfs and how they run the show with everybody and everybody you talk to sort of non-professional says that sounds really risky. it doesn't sound like you think it is risky. >> no, i don't think it's risky and what is more risky is buying assets for the sake of buying assets i'm going to buy an etf because it's cheap to buy and you get what you paid for. there's no doubt there's speculation in some tech areas but the way they're looking at techs there are a reasonable price pockets of value and

pockets of growth and i still think that that's the way you should be k look at technology you look at technology this way for several years. we're talking about an area sector that has it in every little part of the market and of the world. you think about how strong a part of technology has been to health care and how fast we're trying to get a serum out to help us and fight covid let alone trace people and all of that is technology so from the vaccine perspective it's going to be very very important from a health care side and technology is even more important to the market and the world than it was in 2000. many people like to go in terms of the quote unquote bubble standards in terms of valuation and we're not seeing that. >> obviously 20 years ago. you could argue brian every company is a technology company. whatever they make technology sort of powers it. let me flip it.

there has to be the next netflix or starbucks in there. the greatest thing about our country is we always tend to come back from these types of events and technology area. and just because of the innovation you haven't talked about stocks on your airways this morning paypal or visa or mastercard and major, major themes with respect to the mobile society and not wanting to pay cash anymore. i think those are major, major themes

and think about how microsoft has mass i havely restructured themselves in the last 20 years. it's going to continue to spur growth in that area. >> well t famed man is now, the m being microsoft. they're a long way from the music player pleasure to get you on buddy great discussion have a great day thank you very much. it's over. hard to believe. worldwide exchange by the way, i'm in on the noon show this week so tune into the halftime report or don't dow futures up 170 squawk box is next have a great day a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty.

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>> we'll tell you about a semi conductor between two companies could turn into one of the year's biggest deals squawk box begins right now. good morning and welcome to squawk box right here on cnbc. i'm andrew ross sorkin with joe and melissa lee is hanging out with us once again it's nice to see you beck