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tv   Squawk Box  CNBC  May 26, 2016 6:00am-9:01am EDT

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but up some 4% in the last week. european equities so that is a market to keep your eye on. for all you need though about the u.s. trading day, time to hand things over to the "squawk box" team who are ready to pick things up in new york. >> welcome to joc"squawk box" h on cnbc. i'm becky quick and one more look at the u.s. equity futures. a at this point after the big gains in the markets yesterday, the s&p 50000 the nasdaq and now the dow jones industrial average are all on track for a positive month of may. a big turn. we've seen decent rallies this week. you can see the green arrows once again in the dow futures up 12.5. the european equities you can see green arrows through at least the major bourses. the dax up about a third of a percent. markets in italy and spain are both lower. check out what happened overnight in japan. you are going to see that
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noempbt asia the markets were relatively flat the nikkei was up about 15 points. hang sense added 29 and the shanghai up just over. and closely watching currencies. early surge in the yen erased the bulk of this week's gains for the dollar. you can see now the yen is trading 109 pvnt $96 to the dollar. the dollars down across the board. euros trading 111.8 and the pound is 147.04. >> and i'll applies. brent crude prush pushing above $50 for the first time in several months. and were some people right just a couple months ago that made that trade.
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also shares of takata. kkr expressing interest in taking control of the japanese firm. this coming a it is air bag supplier facing billions in cost due to the recall of those faulty parts. and u.s. foods raising a billion dollars in its ipo making the second biggest of the year. shares are trade on the nyse today under usfd. >> stocks to watch this morning. hp, inc. reporting better than expected second quarter profit. cost cutting offset a drop in revenue. amid continued weak demand for pcs and printers.
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outlook is below and lower degree not much watch in that stock. and costco, a pull back in spending by high income consumers who make up cost key's business base led to weak sales in april. and pvh is raising guidance after posting better than expected first quarter results. phillips van huesen. >> strong results from tv operations including orange is the new black helped offset a softer performance at the box office. during the quarter the studio released gods of egypt and allegiance. and guess swung to a first quarter loss on currency head winds and restructuring charges.
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same store sales slipping more than 4%. also cutting full year outlook. and they said april was the toughest month for them. shares of williams-sonoma you have about 3.f% after profit fell but it still managed to beat forecast. benefitting from new inventory initiatives and improvement in pottery barn stores. same store sales up 4.5% company wide led by a 19% increase at its west helm brand. >> and peter thiel repeating he did help finance the gawker case. in addition to multiple other cases as well. the tech billionaire telling me he helped finance hulk's legal battle was less about revenge and more about specific deterrence. i saw gawker pioneer a unique incredibly damaging way of
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getting attention by bullying people. of course there was that early story in 2007 that outed peter thiel as being gay and he said he watched others, including friends and others who he said -- articles that were very painful to them. and -- excuse me. very pain and feel paralyzing for people who were targeted. and he thought it was worth fighting back. now he has been criticized because he's donated money to the committee to protect journalists and has talked often about protecting free speech. but he doesn't believe his actions are contradictory. i quote, refuse to believe journalism means massive privacy violations. it is because oi respect journalists that i do not belief they are indaejed by me fighting back against gawker. >> people have to think about what's in the public domain and what's privacy.
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i love the interview -- i love the stuff he said, probably his best philanthropic effort ever to date. i wish we could give him some type of prize. and i finally decided i want to give him a nobel peace prize. because we know it doesn't make much to get a nobel peace prize. and what he did is definitely more than the last couple -- not the -- i'm talking about one specifically. but i mean this definitely rises to the level of nobel peace pri prize. i think. >> so there seems to be two views on what's happened here. one is that he's robinhood. that he's come to the defense of all sorts of people. by the way what was fascinating to me was recognizing and realizing how extensive the support was. this was not just about the hogan case. he's been doing this systematically. hire a law firm and team to go out and literally years ago to find cases. >> about caulk gawker. >> specific to gawker.
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people who were about to bring a suit or were wripging a suit they would approach them and say how can we help you and try to support them fastbalinancially. gawker didn't even know what they were playing against but yes there is a community of people who believe he is absolutely robinhood and helping people and is philanthropic. there is a completely other community. >> led by gawker. >> and you are seeing a whole group of stories emerge. >> i would argue -- >> -- [inaudible]. >> nick danten obvious lly has s own views -- >> damping. >> suggests the idea of the political -- i can't tell you how many e-mails and other things i saw about the pollute ok plu to besy. plu to be rasy. >> -- lawsuits come out. that is a rid claws samt to me. >> for a whiled it looked like
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the little guy but -- >> that's not new to me. the idea that money is influencing court decisions because you can buy better lawyers and lawyer with it. it just may change the tide in who has the upper hand in some of these things. >> first try, 140 million. not that he wanted the must be -- >> misi he's not making any money -- he's not trying to profit off this. >> he's had less successful. >> there sounds like there is a series of other settlements and other -- >> didn't do sho million. >> that were not there big that did not become public like this. >> with the judges decision to leave it in tact. there is still more going on. is the presence building up that -- you seemed to think it was going to get cut drastically. >> in federal court the whole case was thrown out. they lost. >> gawker. >> no. hulk hogan lost in federal
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court. and some of the early stage going on in florida they also lost. that is jury award. so the view among -- it is very hard to find people on the other side of this who believe this is not going to be substantially reduced if not overturned. >> but i don't think peter thiel's involvement changes all that drastically. that was the case and belief that people thought even before peter thiel's involvement was revealed in this that that case because it was a jury, that it would probably be cut back on further review. >> the question is whether hulk hogan would have gotten as far as he did without the support of peter thiel and the second -- >> -- yesterday didn't mean anything? >> no. that case ultimately needs to be appealed or the will be appealed to another judge. the question around peter thiel now phenotyin the context of thl and larger story is whether in discovery they are going to determine that not only was he financially supporting it but
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whether somebody like hulk hogan was being compensated. >> being paid to take his. >> sure. -- >> and you are being compensated and then you are on the stand it all becomes much more complicated. >> so they suggest there were payments not just to his lawyer by to him? >> unclear. i asked the question to peter directly and said did you compensate hulk hogan and he said he didn't want to get into it and wouldn't answer that question. all i'm saying is the funding of this is going to become a major feature set, if you will of the peel and there are doctor. >> if he's paying them to take a lawsuit against him that is a different stance. >> i'm not saying that's -- >> if that is and if he won't answer -- >> -- as we talked about how this emerged the first time. certain tactical -- legal tactical decisions were made throughout that did not match the sort of economic rationale --
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>> but that doesn't bother me. you get ridiculous people in lawsuits o all the time who don't do things sanely or lodgely or -- >> butgically or -- >> but essentially it could be used in why did hulk hogan bring the case and was it a pure case -- >> -- that to me is a different -- >> right. >> -- different story. >> i'm sure you will hear that argument. >> back to the markets. solid advance on wall street putting markets on track for actually having a weekly gain. theoretically. joining us is jack kafari. wait a minute. you are not the old crusty cnn guy. you're jack calf. >> i'm jack kafari my children -- >> i liked him by the way. >> did you? >> he was cranky. i really did. >> well then why don't you like
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me? >> touche. >> i have to prepare for this from scratch. i had a lot of questions from -- anyway, i knew it was you and i was looking forward to having you. >> thank you. you're welcome. >> -- also a cnbc contributor. let's start with you todd i'm not really sure what your take is here. you think 2600 is possible in 2017. >> yep. >> but we're vulnerable for near term setbacks that could take us below 2,000. >> yeah. in the near terms feels like the markets are melting up. and i don't see panic to the sopside for any other on that are short covering. led by the worst second --. longer term i do think we have the ability to rally up towards 2600. i follow kind of a longer term
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dow theory. charles dow, grandfather of technical analysis showed us there are three main phases of a good bull mancht first was in 2009, 2011. 2012-15 and now here in the third and final stage which then i think brings in serious volatility. >> distribution doesn't sound like the stage of a bull market. >> the lay comers and unfortunately they are being sold into by people who are accumulating on the way up. so this is a rally that i think you will start to see deteriorating fundamentals and there will be significant price gains but after that volatility. >> where do you start measuring the melt up? just monday and tuesday was a melt up? >> i'm a short-term trader. >> monday and tuesday. >> that is what i can wring to the desk. i was long netflix and some crude oil and all risk on names and i've lightened up. mostly out of long and have moved into the shortside for a pull back.
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the market wasn't confirming. i do think there are buying opportunities but let's get them from lower. >> jack. >> kafari. >> yes. >> yes. you heard what todd said. that your view? or do you have some differences? >> i think there is some alignment. and i think some some differences. under the surface kind of like duck. activity underneath. financials do poorly. financials not doing much better. interest rates beginning to creep much better. i think support ideal gas the financials have been trading better over the last several weeks. energy trading higher. brent making a move to 50. demands coming through and market indicating global growth is positive. and within that churning underneath the market that might create opportunities and i remain positively biased. >> ducks actually sometimes go under the water. they go down five, ten feet and
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then flying back -- i mean they are very cool. that is why those. >> those big webby feet -- >> talking about the cormorant. >> not a duck? >> no. the diving ones. >> ducks can't do that. >> well they can but. >> the mallereds? >> they stick their bottoms up but they -- >> let me push back on that point jack if you don't mind. >> the duck? >> no the duck's -- >> -- back to the market. >> i got to throw in i little piece os bread out for ducks. correlation of crude and equities have actually gone negative. we've scene over the last document of months. >> if we all of a sudden spiked 60 i can't imagine the stock market is going sty wow this is great. >> weave lost the positive correlation so we can't rely on energy and the market. >> are we going 60 because we
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continue to see demand draws. >> right. >> demand draws equals demand equals growing economy. we're going up for right reason. political problem that is more problematic and how you respond. >> or the dollar regains the down trend because the fed isn't going to raise rates in position because the economy isn't strong enough and the fed is going to continue to rally. >> the fed wants to move. they have told they are going to move they have gone from forward guidance to suggestion. which is to say we're moving back to -- because they have actually managed to satisfy a lot of their terms. >> look at the treasuries. tens and 30 advise not given up because i think people are starting to pay for that premium of coming volatility if they do raise. but why haven't bonds broken yet? >> 10 basis points on bunds. making buying dollar assets a very long duration dollar assets certainly typically a nice safe
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place to be if you are long so you potentially go long risk. long duration as the hedge on your risk. >> thank you. >> thanks guys. >> we should tell you president obama and leaders of other g7 countries gathering in general manager. on the agenda concerns about the health of the global economy and europe's refuge crisis. akiko fujita is covering that in japan and jouns us right now. >> good morning. certainly the health of the global economy dominating discussions on the first day of the g7 summit by leaders divided over mr. they believe the recovery stands. merkel believes the economy is showing stable growth while prime minister abe here in japan warning of a lehman-like event specifically citing commodity prices and growth in emerging markets saying they were at levels not seen since the global priesz in 2008. trade also on the agenda here at
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g7. with the tpp yet to be ratified. and we heard from president obama talking about the progress that was made on that front. take a listen. >> we had a chance to talk about trade. not only tpp and our involvement in that, but also t tip. and recommitted ourselves to making sure we try to finish those negotiations by the end of the year and emphasize the importance of pushing back against either protectionism or competitive currency devaluations or the kinds of beggar thy neighbor strategies that all too often end up leaving everybody worse off. >> now china, the largest economy here in asia not represented. they are not part of the g7 group but they are essential dominated discussions here especially on the geopolitical front as relates to territorial
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disputes in the south china sea. and leaders saying a strong message today on the south and east china sea. but they didn't get that complete commitment to completely condemn china's moves. the focus form shifts to hiroshima where president obama becomes the first u.s. sitting president to visit hiroshima. . and he'll visit also the memorial peace music and meeting with at least three atomic bomb survivors. sure to be an emotional meeting for them. >> when we return the future of modern medicine. a look at new therapies, regulate nerve s wis with cool . that story when we return.
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welcome back to "squawk box." retailers losing in series 1.86 per share. revenue beat estimates. same store sales fell 5% at kmarts and 7.1% at series. both in line with estimates.
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a steady ride down. >> if it is a $12 stock and every quarter you are expected to lose 3 dollars a share. >> kenmore, craftsman, die hard and home services business. and also said its cfo is leaving the company once a successor is found. >> i'm looking at estimates. the full year is expected to lose $2 a area. 2018 expected to lose -- >> how do you try to sell the market on that? >> i think different retailer. you don't have to bsears. >> all the way out to 2020. >> maybe that minus sign is a typo. >> i don't think so. electrical signals govern
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our body but when they get crossed our body can go haywire. we're jiend with a lock at possible solutions to many common ailments. >> they aoday we're talk harnes the power of the central service system. we talked with darpa about this. they and others like gsk are working on this. listen to what doctor doug weber told us about the concept. it all comes down to communication of information throughout your nervous system and between the different cells of the body. and there is the chemist's approach in the form of drugs and there is the electrical engineers in the form of electrics. >> agencies are working on this. companies are also working on this. they call it electrocueticals or
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bo electric igices. take look. >> scientists envision the system can be modulated be tiny devices to repair disease. madison has already tapped into this concept with the devices like the pacemaker where electrodes manage the heart's rhythm and can trigger a response to restore cardiac rhythm. researchers hope this approach could address diseases from asthma to hypertension to diabetes. >> so the idea is you would be using these tony electrodes on individual nerves or nerve bundles and really figuring all the precise ways electrical signals is working in disease. >> how would that work for something like diabetes? what nerves aren't getting the right signals? what could something like this change? >> probably something in the
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pancreas, where if you are not stimulating insulin. it requires a much better understanding of the electrical signals in our bodies. but being able to map that out and figure out what's going on and if it's something that can be fixed with electroal signals. >> -- fewer side effects than with chem zwlls that is the hope. dar na pa was talking about having these things be potentially degradable. so they go away over time after they treat whatever the problem. is a lot of ideas. we're still years off from actually having this in practice. >> coming up. new signs that the mortgage credit market is opening up as lenders look to attract some first time home buyers. is this wells fargo low down payment loans without fha backing? here we go again. anyway.
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but i trust wells fargo. and right now as we head to break a look at yesterday's s&p 500 winners and losers. ♪ homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life.
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♪ ♪ if i'm gonna go at all ♪ go gig or go ♪ go go ♪ go big or go home ♪ go go ♪ go big o go home ♪ go go >> welcome back to "squawk box"
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on cnbc. first in business worldwide. u.s. equity futures managing to trade up even on that news. who would have thought? right? that the hollywood. >> that wouldn't work is this. >> it would end that quick, couple of squared away people like that -- you knoi don't kno. maybe they rushed into it. if you haven't heard they are a already filing for divorce. >> do you think there is a prenup? >> who's got more -- who is the star the born kah character here. who iskristoffersen and who is -- well that -- >> not yet. >> he's got a long track record though. >> he does but totally bombed from his latest couple of -- lone ranger. >> yes, yes, yes.
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anyway. i didn't see this yesterday and i don't think there is any reason to talk about it now but apparently there was something about out the e-mails yesterday. the damn e-mails. bernie sanders, did you want to win? did you want to win or were you just effing around? why would we have said that? >> e may regret give herg a pass on this earlier. zblch did you read the editorial? where the inspector general better get a food taster from here on out. state department's audit of hillary clinton's use of a private e-mail server when she was secretary of state found she did not comply with the department's policies which is in stark contrast of repeated claims by her that she was all above board. the report says clinton should have surrendered all e-mails dealing with department business before leaving government service. i still that even with all this that's happened she'd still like to keep her personal e-mails private. >> all people would. but this is a situation where
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there were -- >> even your paper. i know. you say they have done it in the past. >> why duke this whole story came in. >> well i this i it came from her. but at least they found out about it. washington post rebukes clinton. even e-mail findings threat on the hound clinton. u.s.a. today. clinton broke security rules. i watched a couple of interviews with the spokesperson brian fallon. i watch wolf. he tries. he does. but you want to see someone get to the bottom of this. brett bear. the guy had a smile on his face with wolf blitzer and it never went away. he never really got pinned down that. smile was gone with brett bear and there was this little glistening. >> there are some serious questions that are going to be asked -- >> -- ig of the state department -- >> clinton -- >> -- peter thiel thing. give me something here.
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>> you love this story. >> this is the ig of the state department. what does it mean for the justice department. >> unclear. i read all the stories. nobody knows. were you disappointed? were you chagrinned. were you surprised? >> i am not convinced that she is. i don't think they are going to go after her. i just don't. one way or the other. >> this is the level of -- >> i'm not okay with it. >> okay. >> -- she will cooperate with the fbi. >> lawyered up -- >> -- >> other five did talk. and anyone who says it is similar to powell or rice. >> powell did have a private e-mail address the entire time. the difference is not only the server it was a long time before the state department got -- >> [ inaudible ]. >> -- [inaudible]. >> -- used it rarely. >> the rules were different when
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colon powea colin powell. why would bernie take that off the table. he would probably be winning right now if he hadn't been -- if he hadn't thrown her that bone. >> separate issue. time for the executive edge. mortgage credit appears to be finally opening up. wells fargo announcing a new low down payment loan. >> calling it your first mortgage. 3% down and wells fargo says it is less complicated than other products. a conventional fixed rate loun. 417 thousand or less, backed by fannie mae. gifts are fine so mom and dad can make the down payment or you can use a community down payment
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assistance program. you don't have to complete a home buyer education course but if do you can earn a interest rate rate reduction. minimum fieco score co score is. >> very clear they have to have the ability to repay the mortgage. we're making sure they have a history of repaying debt or at the least responsible management of their finances. >> that is the issue because a 620 fico score means you don't have a history of repaying debt and managing finances. i spoke to the exec in charge at fannie mae and he admitted it would be rare for a borrow we are that low score to qualify unless there was some big outlier unless they had a huge salary or a lot of cash in the bank and of course most first time home buyers don't. back to you guys.
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>> thank you dianna. when we return mash zone is company between smart phone games like game of war and mobile strike. but the company wants to use its realtime technology for more than just games. the company's founder and ceo joins us next. and a quick check of what's happening in the european markets right now. major indices have been trieding higher. take sarnd the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable.
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welcome back. time now for squawk planner. weekly jobless claims at 8:30. and april durable good at 10:00 a.m. we'll get april pending home sales. james bullard spoke this morning in singapore and jerome powell is giving a speech in washington today. we're going hear from dollar general and dollar tree. i don't know why they do it the same day.
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and we'll try not to confuse those. and after the close we're going to hear from gamestop and that is today's squawk planner. >> machine zone is building an empire in mobile gaming. free to play games mobile strike and world of war pulling in millions of users a day. and help from celebrities like arnold schwarzenegger and kate upton. joining us is gabe laden. founder and ceo of machine zone. also known as mz. thanks for being here today. >> thank you for invieg me. >> i remember the ads from the super bowl and i was stunned. game of war is consistently in the top five ads in revenue. grossing more than a million dollars day. the average players place for two hours a day in 12 minute sessions. that's kind of astounding.
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>> a lot of time and they are very popular games yes. free to play. you can download it. and usually players play for a couple of weeks to a month before they spend any money. most don't. >> but you are making a lofts money on this which is why you are able to spend a lot of money on the advertising. >> the game does well but it is a lot of work. >> in terms of ad spending you are said you are very careful about how you are going to be spending and where you are targeting. >> we are extremely careful. the world's largest television buyer for the and extremely largest mobile as well. >> eventually people can spend money on this. where does the bulk of your nblg come from? >> right now the games. game of war and mobile strike. >> you have some broader plans for this though. you would like to take this because people can play up against someone else who is in a different country and you are thinking of taking this and trying to turn it into the a
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communications tool. >> machine zone is really a realtime technology company. and focusing on environments where millions can sbrakt with each other as once and taking that technology and applying to new zealand public transportation system. which we announced yesterday. soon the entire cities will be networked in orealtime environment which will create a level of efficiency the world hasn't seen yet. right now we've created the ability for every user, every bus, train to function inside of one single application. so the government now has a complete view into their entire eco system. meaning where the buses are. are they on time, going the right direction. and users will soon the v the ability to see down to the second where everything is. so people will be able to plan their days in a way that is more efficient. anybody who's taking a bus knows
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you should get to the stop 15, 30 minutes early. all of that is going end. >> this is like a wave for public transportation. >> yeah but more with software management and a lot is being automated as well through bots. >> and how does this encompass when you are talking about all of new zealand. >> in the beginning a couple million bus riders and the entire transportation eco sys m system. >> how scaleable is that? could you do it with something like new york city. >> oh absolutely. ened new zealand will take about 1% of our capacity. >> is new zealand paying you. >> we just approached them and said this is what we're going to do because there isn't anything like this in the world anywhere. we said we're going build solid
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software. they said okay. >> where was the idea from. >> a lot like we manage now. we have hundreds of thousanders player on lined any moment. and monitoring all the traffic sources for downloads and how we're spending money and monitoring everything going on in the game to make sure everything is going well. same thing. so now you have a system where you can see all of the buses the riders can, the management can see the entire system. it is our process. >> what led you to the jump from game playing to the idea of actually helping cities monitor traffic. >> our second jump was into marketing. our market functioning the exact same way. so we're monitoring the eco system in realtime and that -- >> what's that mean. >> >> we is see every channel. we work 298 networks worldwide and monitoring the entire system to load balance costs across everything for price discoversy. large scale monitoring.
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lots of data. with can suggest hundreds of millions of the piece of data a second. like a platform for high frequency trading but with -- >> -- [inaudible]. >> a lot large amount of end points so we can monitor. said you have a a hundred million devices out there. we could ping them once per second. so we could create digital mirror of what's happening in the real world. >> do you expect to expand this beyond? >> once you see the software in action it is very obvious this is where the future is going. the level of efficiency you get out of it you assume it is going to be small when you get started but what is happening in new zealand is they are seeing buses that have no occupancy, for instance, or some there are throwing errors. going off route. some of them are being scheduled at times that are not very efficient. so immediately you start seeing changes that -- not 5% changes. but 50% changes in the entire system. >> gabe, thanks for coming in.
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>> thaw. i appreciate it. >> fascinating. >> thank you. >> coming the search for investment save hachbs. not the kind of safe space that we provide here. this is ahead of an uncertain rate hike schedule and a possible brexit. we'll talk energy and retail pick as part of our what's working series. that is next. as we head to break. take a look at the price of crude back below. well it is 49.87 but some people think 50 is the next stop. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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welcome back to "squawk box" this morning. stocks rising but uncertainty over fed hikes and a proesotent brexit have investors looking for a safe alternative. sara manages $2 billion in assets. you do it personally, right? >> i have a team. >> a.u.m. of $4 billion. >> a billion and a half, 2 billion. >> dare i ask, what's working. >> it's a tough market for a variety of reasons, as you have mentioned. with the fed coming people are worried about dividend stocks. i think you can see a lot of
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dividend stocks are still working now. home depot is one of them. they reported good numbers. the housing market is looking like a pretty good place to be right now. there are places and pockets that are working in retail. >> what other parts of retail are working besides that one? >> i would say some specific things. pbf this morning came out with good numbers. retail clothing is tough. but some of the biggest stuff, auto has been working pretty well. you could call that retail. things like home depot and even lowe's put up good numbers. >> you have a fascination with the world of space. >> we do. we do. mid-cap defense is another place that's working. large-cap defense moved quickly and is fairly expensive right now but mid-cap defense, orbital atk harris. our backlog is building. government is spending money. short-cycle stuff has been tougher so harris has had a couple of years where they haven't grown but it's starting to grow now.
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radio and communications stuff. areas like that you still have opportunity. >> that's related a little bit to what elon musk is doing with spacex to some extent. >> yes. part of the business is satellites. some is government and some is commercial. some of that stuff is going up. they do guided missile systems and things like that too. >> bp. you like. >> yes. we like bp. >> been an unloved stock for a long time. >> it's been. with the recovery in the oil price some of the concern about the dividend has been taken away. they've been saying, 50, 55, we can break even. i don't think there was true belief they could do that. now that oil has come back it's better. they've cut their cap-ex. they restructured prior to this which should have helped them. >> home depot, what do you think the stock could be worth at this point? they continually beat but at some point -- >> at some point same-store sales becomes trouble.
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you're only as good as your next quarter, which is true for most of the market but retail specifically. especially when you are big box. they only have 15% of what they think is their addressable market. 10% earnings growth, 20 multiple. that's the way the market is trading. >> sarah hunt, alpine funds, portfolio manager. other news. starbucks making a bigger commitment to china, announcing that it will open a roastry and tasting room in shanghai. the roasting will be twice as large as the one in seattle. howard schultz spoke about the company's growth in china. >> i think it's possible that our business in china will grow past the u.s. the reason is we have been so successful in china over many years, and we're just starting to get the morning day part where we're educating local chinese to drink coffee in the morning. >> the full interview with howard schultz airs today on
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"closing bell" at 3:00 p.m. eastern time. martin shkreli taking to twitter to share interesting details about his night. the infamous pharma bro tweeting in his words, finally happened, someone tried to fit me on the street. hate to disappoint. if i faded you, i probably get bail revoked. a second tweet five minutes later, same street corner guy says he wants a photo and is a huge supporter. what a life. what a jury trial. when we return we'll check up on low-cost airline ryan air. the ceo said the egypt air crash had an effect on bookings. he is warning with the dire consequences of a potential brexit. he'll join us next here on the "squawk" set. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises.
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riding the rally. we check out some of the key factors that could push the markets to new highs. >> peter thiel speaks, revealing why he waged his secret war with gawker teaming up with hulk hogan. >> what you gonna do, brothers? back to the beach. the unofficial kickoff to summer is here, and we're putting ride-sharing travel to the test. the cost of a car service versus a quick helicopter ride. >> get to the chopper! >> the second hour of "squawk box" begins right now. live from the beating heart of business, new york city, this is "squawk box." welcome back to "squawk
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box," here on cnbc, first in business worldwide. i'm joe kernen along with rebecca quick and andrew ross sorkin. the futures at this hour, could be three in a row. up 24 points. europe is a little better this morning as well. and we are tracking crude prices this morning. brent -- brent topped the $50 level for the first time in seven months while closing in on west texas. not quite there yet. at least we weren't earlier. just below it. >> be the first time since october. i think this is the highest we have seen it -- we've seen it almost touching there. >> $49.89. in the headlines. costco beating estimates in the latest earnings report. the warehouse retailer's revenue short of forecast and same-store sales flat for the first time in six years. food distributor u.s. foods trades today on the new york stock exchange. the initial price offering yesterday at $23 a share, within the expected range of $21 to $24. it will trade under the ticker
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usfd. private equity firm kkr may become an investor in takata. reuters reporting it's one of several p.e. firms being interviewed by takata as it undergoes restructuring. takata has been dealing with ballooning costs due to widespread recalls of air bag inflaters. peter thiel officially confirming he has helped and was helping throughout finance hulk hogan's legal fight against gawker media. his first interview since his identity was revealed he spoke to me. the tech billionaire told me helping to finance hulk hogan's legal battle was, quote, less about revenge and more about specific deterrence. i saw gawker pioneer a unique and damaging way of getting attention by bullying people. there was the story in 2007 that outed him as being gay, and of course there were a number of other stories about his friends and other people who have been critical, to say the least. he went on to say that those articles that were published
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were, quote, very painful and paralyzing for people who were targeted and he, quote, thought it was worth fighting back. some criticized thiel because he has donated money to support journalists and protecting free speech. he says he doesn't believe his actions were contradictory to those thoughts. he says i refuse to believe journalism means massive privacy violations. precisely because i respect journalists that i do not believe they are endangered by fighting back against gawker. what we learned in the interview was that he also systematically trying to find people to help. this started three or four years ago where he found a law firm, decided this is what he wanted to do. some believe he's robin hood and others are questioning the question of big money in these cases. fascinating to know that this was all secretly going on behind the scenes and we didn't know
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it. recent market advance causing chatter about how solid the rally is or if it's simply a head fake. joining us is rebecca patterson, chief investment officers of bessemer trust and a cnbc contributor. jim paulson. chief investment strategist at wells capital management. welcome to both of you. you two have different takes on the market. i think they're different near-term takes. longer term there are more places you probably agree. jim, you have talked about the tight trading range we've seen. you think in the near term we'll be looking at new highs for stocks? >> that's my guess. my guess is things are coming together, becky, that might be good enough to push us to higher highs. i think we're past what everyone is perceiving as the worst earnings season, earnings get a little better the rest of the year, i think we have arrested the deflationary abyss which has been a big part of the earnings being so bad, and we're going to res rect a little bit of
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manufacturing energy, minerals and mining and help that cause a little bit. i think there are not just better reports in the united states happening but globally we're seeing economic surprise and decease pop in a lot of places. there is a synchronized feeling to the pop. we're past pessimism. new all-time highs and a lot of people are still in the bear market camp. i think we break to new highs, bring out broad optimism and peak later in the year. >> even if the fed raises rates in june or july. >> i think it's great the fed will raise rates. i think it will add to confidence and help the market. >> rebecca, you have been more cautious on the market. i know in march you went from underweight to neutral on equities. >> in january. >> you were looking at a neutral rating. within that, within the united states particularly you're still overweight? >> i do think the biggest wonderful surprise this summer would be in all the bad stuff we've been scared about doesn't
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happen. britain stays in the eu. fed raises rates but signals it will be slow and benign. china data is not a flash in a pan. the slowdown is moderate. i wouldn't disagree it's possible. but i think we're getting closer to the end of the cycle. we're mature in the cycle. equity valuations are fair. getting a little bit higher. the fed is in a hiking cycle. going to neutral -- in january we did it part for the short term but we want to incrementally position for the end of the cycle. no one knows when the recession will come. i wish we could. by using any rallies we get to slowly taking volatility out of the portfolios we start building our defenses so when it comes we're ready. >> what do you buy instead? >> neutral stocks. we have a lot of equity exposure in our portfolios. the biggest overweights are health care, tech and consumer. even if we have volatility at the end of the cycle, structurally i'm still bullish.
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especially in the u.s. i was talking with folks at university of florida yesterday, go gators. we all think silicon valley but there is amazing research and innovation going on around the country especially in the health care space. structurally that's something i think will keep doing well. >> paulson, in 2015 you were known as a perma-bull, even around here and you nailed 2015 for the stock market. you remember that? >> i'll take that. >> we've gone nowhere. >> if you say so. >> we've gone nowhere now. i don't know what your reasons were for believing that -- whether your reasons for believing that were correct. you thought the economy was much better than people thought. so you are an unemployment guy, not a gdp guy. we still argue about the economy. you measure it from gdp or from unemployme unemployment? i think you were an unemployment guy in terms of gauging the strength of the economy. >> i wrote a piece recently.
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i think there is evidence the growth in this country has been understated. productivity is ridiculously low to the point where you can't believe it. if that's been a little higher, growth has been higher. i think we've been running more. we may find out down the road 3% more than 2%. >> the weakness that's been sustained for longer than you thought in commodity, how did that happen? what did we miss on the commodity? >> i wrote a piece at the start of 2015, commodities bottom. i thought oil would bottom. then it went up and went down 25. when you look at it today. we're at 50 bucks. 45 bucks in the second week of january at 2015. it's been flat in the last year. >> you were bullish again with the market. >> i was bullish after the january collapse. i still am. i tell you what. if we rally to new highs, break out optimism. everybody goes the bull is back, i'll probably get more
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defensive. >> we're going to take advantage of rallies over the next year or two years and use them to incrementally lock in some of the gains. >> will you also take advantage of dips to be buying stocks? i think that's what jim is advocating. >> i differ with rebecca maybe a little bit is that i think the recession is probably many years off. that's the key ingredient here. might not be that the returns are that great buy and hold over the next several years. if it lasts several more years you still have to be a bull on average. >> i wouldn't own any equities if i thought they were going down. i just don't want to take egregious risk. >> what's neutral, by the way? >> it dependsen on the client. as an average 70% equities, 30% bonds. maybe you have 60, 65% equities and the other is equity-like things. maybe corporate credit or other types of credit or investments of that sort. >> back to the point, you wouldn't buy necessarily on
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dips. >> on a dip? we have one tactical part of our portfolio. that would be taking advantage of dips and dislocations. the rest of it, i don't want to be getting in and out. my clients don't love paying taxes. >> how do you think about the election relative to this strategy for both of you? >> i'm not worried about the election. i think, unless one party gets all three powers, they can't do anything. they get in, it's grid lock. laissez-faire will continue to manage what's going on. that's fine with me. >> on my side i think, as we get close to the election, we might get short-term volatility as people are nervous about whatever outcome is coming. but beyond that, you know, we all get focused on the election because it's the leader of our country. at the end of the day our economy is so much bigger than one person. it's the fed. it's companies. it's everything. so tactical risk that i don't think we want to ignore, longer term, honestly, i don't think it matters that much. >> one other thing i would throw out. that the fed, because they've
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sat on the yield structure in this country -- here we are maybe at the high end of the equity market. but there are no alternatives. nothing to get in cash. bonds are nothing but risk if you look at the rest of this cycle. so i think you have to stay tilted to equities. you may go offshore or to other sectors. normally you might go to bonds or cash in a bigger way but because of the artificial setting of interest rates across the globe, it keeps you in equities. >> as we get closer to the election people will get nervous that it's possible that we're going to elect either hillary or donald trump. as they get closer and it becomes closer -- what i mean is 50% will be nervous to elect trump and 50% will be nervous to elect hillary. >> donald says he's going to win it at the convention at the last minute. because hillary will be in trouble with the email scandal. >> oh. well nothing -- nothing recently, jim, would indicate
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that there is any problem with her email sich, that i have seen. >> i haven't watched the news lately. >> it's a big nothing burger. it's a big nothing burger. >> jim, rebecca, thank you for coming in. high-flying profits and a high-flying stock. ryanair ceo michael o'leary tells us what's on the horizon for the air carrier and how u.s. airports should deal with security line. manhattan direct attorney famous name, cy vance, our special guest at 7:40 eastern time. "squawk box" returns after the quick break. my mom loves giving me advice. she even gives me advice...
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welcome back to "squawk box," everyone. watching the futures this morning, they've been in the green after a big day for the markets yesterday. you can see the dow futures right now indicated up about 16 points. the dow is now in positive territory for the month of may after yesterday's gains. s&p 500 and the nasdaq were already there. you can see the s&p indicated up just over a point today. nasdaq indicated up about five points. earnings in from several retailers this morning. sears posting a much smaller than expected loss for the latest quarter. it beat revenue forecast and a same-store sales drop that was in line with estimates. check it out. the stock still down about three
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cents today. sears said it's exploring options for the die-hard, craftsman, kenmore and home services business. makes things sound like a fire sail. mixed quarter for dollar general. it had reported a quarterly profit of $1.03 a share. eight cents above estimates. revenue slightly short, however, on a same-store sales increase of 2.2% was below consensus estimate. street looking for 2.4%. low-cost irish carrier ryanair posting a record profit for 2016. ryanair stock has been high, outperforming the broader nyse airline index by roughly 40% over the past year. michael o'leary joins us now in our new studio. he is a savvy, perceptive guy who immediately appreciated the new digs. you're impressed, aren't you? >> beats hauling my ass to new jersey. >> though you're not saying anything bad about new jersey. >> no. it's just the trek back into new
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york to continue the road show is a pain. >> exactly. this country, tsa lines, people worried about summer travel. over in europe, i think people are justifiably probably a little bit nervous about the maybe security. so they both start with the same proposition, that you need to make sure that flights are safe. here it's resulting in long lines. over there i bet you saw a few cancelations to go to sucertain places in europe? >> no. when we see the terrorist events in brussels and paris, we respond with lower airfares. the impact is on lower ticket prices. we're expected to lower the prices for 7% for the rest of the summer to keep people flying. it's the best way to deal with terrorism is to prove to the terrorists it won't make any difference. people will still keep going on holiday. the problem here is the
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ludicrous amount of bags. >> hold on. baggage fees. >> it's effective in disciplining. when we started charging for bag fees, 80 b% of passengers broug a checked bag. it doesn't happen here. >> what accounts for the u.s. phenomenon. >> you should be charging people for checked in bags. you would have the lines. >> he wants to charge more for the bags. >> more for the ones that are going -- why charge for the ones people are bringing on the plane? >> limit them to two. i went in lines yesterday in boston, people with four and five bags going through security. >> for carry-on they're supposed to be limited to two. >> but the airlines don't tackle it. we won't let you on board with more than two bags. the two carry-on bags are free and they have to be reasonably small. the tsa is starting to introduce the european system where you get four or five people can actually disrobe at the same
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time. you widen the rails before they get to security. you train people to behave a little bit more efficiently at parents. and y -- at parenairports. >> do you think security is effective or it's security theater? >> largely security theater. the terrorists move on. it's not that complicated. ladies makeup is not a weapon of mass destruction. it's destroyed many men's lives. >> does ryanair fly to places with horrific -- like eritrea? >> we only fly to europe but we fly to 200 airports across europe. >> are they all safe. >> it's like everything else. if you look at the brussels attacks in march, they took out the terminal and also the underground. yet the politicians respond like, oh, we're going to make the airport safe. they recognize actually the people in mass transit systems,
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there is not a lot you can do. >> is there anything you've fundamentally or substantially changed as a function of what happened in brussels? >> no. i mean, because -- the difficulty is what happened in brussels was, you know, a crazy guy walks into an airport terminal and blows himself up. there is a limit to what security can do. air travel is pretty safe. on board the aircraft is pretty safe. we're still waiting on the egyptair out of paris but if somebody wants to walk into a terminal or a subway, what do you do? >> you saw australia, the guy barely lost. you don't want brexit to happen. >> we are on the remain side. >> but there are people who think, if we're going to have the open borders and, you know, where you can travel freely throughout europe, and then you have a lot of refugees from what happens in -- it's never -- will it ever quiet down in the middle east? will there ever be a stop of flow in the middle east? >> if you look at the more
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recent attacks in paris and brussels, they weren't launched by refugees. they were launched by people -- french and belgian citizens. >> a couple french guys came in and went back. >> they were nationals of france and belgium. the problem is not the refugees. the problem is actually tackling these kind of radical guys in cities all over europe where, for far too long there has been too much of a liberal approach taken, these guys can preach anything they want in the mosques. >> it's hard to assimilate people. more are coming. you have the actual ghettos where you can't -- >> the way to assimilate people is economic growth. get them jobs. >> when is europe going to, you know, do the structural reforms to grow faster to give these people jobs? that's never going to happen. >> i think it is. i am more optimistic on europe. it's more important that the
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u.k. stays in europe. there is a growing sense in europe you have the u.k. and central european economy. the poles and latvians who want to create jobs and grow and pay less attention to the french attitude which i can leave college at 52, retire at 53. ultimately europe has to get more competitive. it will happen. >> what if britain votes to leave the e.u.? you have a real problem. i think it's unlikely and it looks like the polls are moving in favor of remain. it's a challenge. the exit guys are more motivated to vote and the remain is not as motivated. that will be critical. the difficulty on the leave side is there will be chaos. half want to leave but then renegotiate reentry into the single market. in which case they'll be like norw norway. the other have want to leave the single market. their vision is albania.
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we can have a free trade agreement. >> what would it mean for ryanair? >> i don't think it would mean much. we would have to re-register. depends if the u.k. stays in open skies. if they left we would have a re-register and work around it. people will still fly. they still fly to spain, greece, italy. that's not going to change. it will make life much more difficult -- it will certainly take two or three points off growth, economic growth in the u.k. and across the european union. >> just regulatory. >> two years of uncertainty trying to work out what they'll do. we should be optimistic. they're going to stay in. i think that's the end of it. and we'll sit back and watch you guys whether you elect the most unpopular democratic candidate or the most unpopular republican candidate in history. >> it's going to affect you. you laugh now. laugh now. all right. you can't control oil prices, so
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you just deal with it, i guess. >> frankly, i hope oil prices rise a bit more. the problem in europe is is that some of the crazy, loss-making legacy carriers have had relief as oil prices went down to 40 bucks. i would like to see them go back up to 80 and get rid of the dead wood and ryanair will grow faster. >> the real climate guys fly on private jets. they don't worry about commercial. thank you. >> thanks, joe and becky. coming up, mcdonald's headquarters getting the day off today. find out why. plus, how much would you pay for this pair of melons? the eye-popping price tag when "squawk" returns. incredible bladder protection from always discreet
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when we come back, we are spanning the globe from g 7 leaders to the brexit vote next month. how our elections will play around the world. today's top stories are next. are you getting ready for nasty holiday traffic? you might want to skip the car and get to the chopper. get ready for the race to the hamptons. dow futures up by 18 this morning. s&p up by 1. nasdaq up by 5.5. can a toothpaste do everything well?
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welcome back, everyone. among the stories front and center. two key economic reports out about an hour from now. april durable goods expected up .7%. week weekly initial jobless claims expected to drop to 275,000. starbucks is opening up a coffee roastary in shanghai. it's expected to open sometime next year. starbucks has one roastry in
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seattle and is planning to open another in new york. kelly evans spoke to ceo howard schultz. the interview will be on closing bell at 3:00 p.m. eastern time. a close watch on crude oil. brent crude rose above $50 a barrel for the first time since october. wti is getting close. it's been as high as $49.97, so within spitting distance. we got a strange story this morning. a pair of melons sold in japan this morning for a record 3 million yen in the first auction of the fruit this year. that's approximately $27200. the king melons are grown in northern japan. a supermarket from western japan won this year's auction. the melons are cantaloupe hybrid. the first auction of the fruit each year is the focus of national attention. now it's national attention in the united states. i did not know. the market will display the melons in the store and later
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auction them online. last year the priciest pair of melons fetched approximately $13,600. wipe the dirty thoughts off your minds! young man. i am watching you looking at me talking about melons. i know what's going on over there. >> this squawk-ward moment has been brought to you by joe kernen. >> thank you. >> this squawkward moment has been brought to you bizarre sy ross sorkin. >> thank you. at least a co-award. our next guest has his finger on the pulse of the world's geopolitical and key world news ahead of the g7 summit in japan and the brexit vote. bob is vice president of kissinger associates. state department undersecretary for economic krogrowth and the
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environment. did you know about these hybrid cantaloupe melons. >> i know their melons taste very good. at that price, i think i would skip them. >> it does matter, with -- with cantaloupe whether it's fresh and whether it's tough. >> fresh. very sweet. >> you've heard, though, like the cotton candy ones? they're great. >> they have great pears and apples. >> you have been everywhere. we carried some of the president's comments at the g7. all i saw were -- it's classic. i mean, i know he wants a legacy and he wants hillary to be elected, but i didn't hear anything about the g7. all i heard was trump bashing coming from japan. the previous presidents didn't get quite as involved in the next elections, did they? >> two things. one of them is that a lot of the foreign leaders are asking about trump because they're worried. particularly because they think
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many of the things trump -- >> the terrorists are asking when are you closing gitmo. they never talk about that. >> they say they're worried about -- >> were they worried eight years ago? >> they say they're worried about the dangers of many of the things trump says about the alliances, that he doesn't support the alliances. many think he could endanger alliances with japan, south korea. and the nato alliance. they rely on the united states. great powers can't afford to be misunderstood. our adversaries, if they think our commitment is weak or feckless, then they also think they can take liberties. a lot of our allies are concerned about what trump has said and about whether he is committed to our alliances or friendships. that's a big problem on their minds. there are other issues, you're quite right. >> the alliance with saudi
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arabia is in question. our alliance with israel is in question. our relationships with russia have never been worse than they've been. this was a man that went to germany and had huge pillars. europe would have elected him, 90%, as president. >> there are a number of issues that we've discussed on the show a number of times about foreign policy. >> politicians are worried about someone who is more of a nationalist than a globalist. >> they're worried about xenophobia, nationalism. the anti-foreign. >> the pendulum can swing each way. >> they feel what trump says is dangerous to the two biggest alliances we've got, asia, japan, south korea, philippines. if you pull back and say let them do it on their own. give them nuclear weapons -- >> countries that are getting the better of the united states and whether it's aid, whether it's nato, whether it's a trade imbalance with china, they should all be worried if they've
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been getting the better of u.s. -- >> i don't think there is a notion that the countries are taking advantage of the united states. if you didn't have a strong alliance the american military budget will be much greater than it is today. >> that's why there is -- it wouldn't resonate if at least certain people weren't feeling that maybe we're getting taken advantage of. >> i think that argument has been way overdone. i think we still have a strong nato alliance. they could contribute more. no question about that. but hammering them the way trump does is not going to get you that kind of result. you're going to have to work it out with them. they're more and more -- they feel the danger from putin as well. the united states has to work with our alliances. that's been the strength of the u.s. since world war ii. you can't be a great power without great alliances. you have to build the alliances and continue to do that. even during dips in the relationships. >> i was listening closely to you, andrew, with the melons. >> you were? >> i did not notice that we were
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actually calling them mellons on all of our -- so this viewer wants to say those expensive japanese things were actually not investment banks or money centered banks. that they were auctioning off over there. apparently -- is there only one "l" in melon? >> yes. >> it's almost like the dutch -- >> we'll write that in our -- what is it? a style book or something? >> it's like the dutch tool frenzy. you have spent a lot of money for these things and you have a half-life of a day or so. that's a big problem. >> bob, what else have you been -- you're with kissinger and associates. >> right. >> the world is spinning. >> yes. >> i don't know whether i would say out of control. >> disorderly for sure. >> disorderly for sure. where is is the biggest -- what do you think comes back to haunt -- i just heard we have to be optimistic. what could really come around and bite us badly? >> british leaving the e.u. would be very disruptive.
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>> why don't we talk about syria anymore. >> we should be. it's not just syria. that's the epicenter. >> russiiran. >> not just there with isis -- though i think it has shrunk to a degree but it's still very strong. they're also shooting tentacles to north africa and other parts of the world. they have tweets. it's a dangerous world and terrorism is a big problem. we have to deal with that. it's an extremely serious issue. but you need allies to do this. >> trump and putin seem to get along. they think they're both strong men, i guess. could that be an advantage to the united states? or is that -- you can't sleep with -- >> i certainly would not depend on that being an advantage to the united states. putin will take every advantage of weakness that he possibly
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can. >> which we've seen. >> which we've seen. >> it couldn't get worse. >> it could get a lot worse. he could undermine governments in the baltics. i don't think he is through. he'll look for whatever opening he can get. >> how about china? >> the one other point about putin, though, is that, if we're going to deal with syria, putin is a player. he has got bases there and forces there. iran is a player. we have to on one hand counter putin in europe where he is going to move as far as he can, not so much with invasions but undermining the credibility of various countries in europe. and weakening the whole eu by supporting the right-wing populist parties. it's very dangerous. it could fragment europe internally. we need to work with him in places like syria as well as iran. china i think we can work with. they're -- there are issues with china, important issues with china. we have to figure out a way to work with them. one of the things they're doing
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at the g7 is trying to make statements about china and the south china sea and east china sea but also demonstrate that there are opportunities to work with china, if you want to stabilize the region, china is the biggest single player because of its size and influence. you have to find ways to work with it. >> would you have a job in the clinton administration, the new one? >> i am very hopeful she will be elected. >> you hope you'll have a job. >> whether i have a job or not is secondary. >> you don't know. >> i don't know. the secondary issue is whether i have a job. the primary issue is whether we elect someone who is responsible and capable and that's hillary clinton. >> you'll use a government server if we put you in. just wondering. >> i will. to you, joe, i'll promise. >> okay. send him a thank you note on gmail. new york and london forming
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an alliance. manhattan, new york, direct attorney, cy vance, joins us with an update on the big battle. next.
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welcome back to "squawk box." new york and london forming a cross-border alliance in the fight against cyber warfare. manhattan district attorney cy vance is here. london police commissioner adrian leopard and the center for the internet security banding together to form the global cyber alliance. first launched last fall, the non-profit organization has over 60 members and count the department of homeland security. fbi, federal reserve. joining us is cy vance to talk about this. help us understand what the organization is doing. >> i have been six years d.a. and spent a lot of energy prosecuting cyber cases. this is obviously what a lot of folks are doing. the volume of cyber crime and the enormity of the threat is not going to be addressed by prosecutions alone. i think we have to change the paradigm by which we are looking at how to deal with the threat and focus on prevention.
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and focus on prevention in two important ways. because these don't really exist currently. number one, there has to be prevention among cross-sector allies, the transportation and finance industry, health and hospitals. municipal governments as well as cross-border. right now we tend to be siloed and not communicating about the cyber threats. if, however, we are working collaboratively and approach this problem as an international threat, which is truly is, we -- we just have to wake up and understand this can only be addressed through international cooperation, not by individual offices and loan cases. >> what about different companies sharing information about how they're working? isn't there a competitive advantage, potentially or disadvantage for some? >> no. really, this is not -- this -- this not for profit is not taking personal identifying information or proprietary technical information from companies. what we are doing is bringing companies who have their own technology experts and our
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technology experts trying to find solutions and put those solutions into companies around the world related to phishing, denial of service attacks. it's really focused on technology sharing, not information sharing about customers. >> i have heard both sides from business leaders who say, on one hand it's frustrating because there are laws in the united states where they can't share some of this information. they feel they've been stopped by regulators and by authorities. on the other hand, a lot of them are worried about admitting when they have been attacked. the saying in the industry -- in business is, if you don't know you have been -- there are those who have been cyber attacked and those who don't know they've been cyber attacked but everybody has been there. >> sure. becky, again, this is not focused on taking customer data from any bank. that's not implicated. >> it's just a working group? >> no. it's more -- it is more than a working group. it is companies like those that andrew mentioned and aetna, and citi bank, american express, who
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have come together to say, understood, look, the number one cause of cyber attacks is phishing. however mundane that may be. we need to establish the best class of prevention software to be implemented in companies around the world. we have a responsibility to make sure that those companies and municipalities know how to best protect themselves from phishing and with members all over the world, as andrew said, 60 now. it's also good to haven a early-warning buoy. that attack in the far east will migrate to the u.s., could be in a matter of 12 to 14 hours. share the best practices for prevention. that's the way you can hit the volume better than you can with prosecutions. this is something that's, i think, a focus of prosecution change for some time now.
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prevention is better than prosecution. >> cy, if there was a world in the future where there was absolute security and you never had to worry about a hack again, but there was no way for you to subpoena something from -- from that world, would that be a preferable world to -- i mean, it just seems like it's ear either/or. either you have absolute security or you don't. >> there is no middle ground. >> is that a world you could live in. >> first of all, i think the answer is that's not the world we should live in because there are those people, and they are the criminal -- the criminal elements, whether it's sex crimes, murderers or cyber thieves, who are using the smartphones for -- to advantage their criminal enterprise and communicate with their conspirators. it would be nice to have a world that was protecting the good guys. >> right. >> but if you also have a world, as we do now with these device
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encryption. you are also protecting bad guys. at the end of the day my view on this is it's an enormous problem in this sense. you have national security issues, and i won't go over those. from the state and local perspective we handle 95% of the prosecutions in the country. rape, robbery, murder, child abuse and the like. inaccessibility to devices where evidence resides in those cases is having and will have an increasingly big impact. 250 apple devices in my office that we cannot open even though a judge has ordered they should be opened. that's the issue. >> i understand. >> and companies taking it into their own hands. >> your answer as a district attorney answer. i just wonder the answer from someone at a bank or at a grid who might say, you have to deal with -- you have to do it some other way. we're going to protect all this stuff. i think it depends where you're sitting what your answer is. >> couple of things. number one, there are obviously passionate views on both sides.
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>> yeah. >> what we don't have yet is any proposal by the tech community to move through this process. it's really been -- apple has folded its arms and said, we're not doing anything. i think says we're not doing anything. people should understand there is an urgency to this debate. as cases mount up around the country, you have victims who are not getting justice for those cases. as we have terrorists organizations and individuals going dark, this is an issue we need to confront. what i really believe is it has to be federal legislation. we have to get on that quickly. we can't set on two separate and -- >> they would say the same thing. they want federal legislation. you two have two different ideas of what the federal legislation is going to say. >> that may well be. i think tim cook and i agree on that point. the fed needs to solve this.
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but i think the federal government has to bring law enforcement and technology to the table. it needs to push through. >> why is that not happening then? i think there is no incentive for technology to have to go to the table. they are asking for solutions -- >> so if you find out the good guy is getting the key would mean likely bad geese get the he key too, you city think it's worth it? >> joe, this is the problem with that premise. this all started because -- >> just figuratively. not apple. but if it did turn out that you got them and potentially the bad guys could get it too. >> well, at the end of the day, i think apple and other companies know how to manage their keys. >> they always have keys. that's the fallacy of their argument. >> i'm not talking about apple.
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i'm talking being able to unencrypt. >> i have to ask you on this peter till news, funding another person's lawsuit and doing it secretly, what the government think of that? >> i have no firsthand knowledge so i am reluctant to jump in. i'm not aware that it is illegal or improper. i was just reading the news. you should have a more knowledgeable person take that on. i would like the committee in norway to consent more. >> thank you. i appreciate it. a quick note on crude oil. wti back over $50, the first since october. we'll talk more about that in just a bit. when we come back, a race to the beach. robert frank and kate rogers are
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unofficial kickoff to summer. they are ready to race to the hamptons. robert. good morning, andrew. tomorrow starts the mass millionaire migration. with it mass traffic. that's for all the services from
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manhattan to the hamptons. the biggest disruptor is blade. they have been called uber of helicopters. all you have to do is go on the app, click in your seat. blade has flown more than 15,000 people in the northeast since they started just two years ago. they provide a lot of service from manhattan to southampton, east hampton and montauk. and they launched a service from westchester to the hamptons and the hamptons to nantucket. you have jitney. that is 30 to $45. the train is 28 bucks. the other new competitor is uber. i will bring kate rogers to talk about that. >> i think we know which reporter got the better
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assignment. i will take an uber out to meet robert. this is a 100-mile trip. our estimated fare was $200 to $300. it says it will take two and three hours to get there. what's important to remember is uber doesn't serve the entire hamptons region. southampton is where we're going where it can drop you off and pick you up. they can only drop you off there. they can't pick you up. but lyft, the biggest competitor in this area, will expand into the hamptons in the coming weeks. it's not fully available is yet. it won't be available memorial weekend. they can drop you off in the south hampton area. and on demand black car service are not yet servicing the hamptons. it seems uber right now is the only game in town. what is really important to
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remember, our fair estimate doesn't have that hated surge pricing which kicks in when there is high demand. remember, an estimated 38 million people are traveling this holiday weekend. driving is one of the most popular ways to get around. >> my chopper cost $600. takes 35 minutes. your car is -- >> between $200 and $300. it could take up to three hours. >> you are such a good sport for doing this. we will figure out a dollar-per-minute basis. >> i get to take the blade home. back over to you guys. >> okay. we will be paying attention to that when you put it that way. see, you can drive yourself for $40 worth of gas. it doesn't cost $300 in your car
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to get out there. but you put it that way. this is lulu, our newest dog.
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mom didn't want another dog.
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she said it's too much work. lulu's hair just floats. uhh help me! (doorbell) mom, check this out. wow. swiffer sweeper, and dusters. this is what i'm talking about. look at that. sticks to this better than it sticks to lulu. that's your hair lulu! mom, can we have another dog? (laughing) trap and lock up to 4x more dirt, dust and hair than the store brand stop cleaning. start swiffer ing get ready to rumble. >> he wants to know if you will debate. >> yes, i am. how much is he going to pay. >> donald trump agreeing to a hypothetical debate with bernie
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sanders. and the vermont senator responding game on. a record summer of trial. lengthy lines at screening check points. the head of the tsa is speaking out this morning. g.m., toyota, volkswagen, all putting money in ride sharing. what it means for the future of transportation. that's straight ahead. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york. this is squawk box. welcome back to "squawk box" here on cnbc. i'm joe kernen. the futures up 33 points. we have a couple of sessions under our belt already. a couple of good ones. >> you were right. i did not take the other side of
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the trade. i didn't doubt you on it. >> i tried to push you. two for one. oil prices. not cracking going down but the $50 mark going up for the first time since october this morning. both wti and brent are above both $50. i think $50 is about what you think oil is worth. does that seem like a normal number? >> i noticed opec came out and said they see upside and they are happy. >> considering they drove it to 28. >> all right. let's show you some of today's other top stories. st. louis fed president said a tight labor market in the u.s. may put upward pressure on inflation. he was speak anything singapore where he noted a divergence. u.s. foods begins trading today on the new york stock exchange. the initial public offering
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yesterday at $23 a share. that was within the expected range of $21 to $24. usfd will be the ticker. >> ahead of the tsa speaking out in the last hour on the "today" show. >> when i came in last summer we were in a real crisis. and it was generated by the inspector general test that became public. we had to get better at our mission. so i focused on doing that. i knew it would cause the lines to back up. why is that? we weren't paying close enough attention. and i shifted people into the standard line, following safe practice of moving people in. earnings in from several retailers. i guess i'm going to say results in. >> in some cases they're not earnings? >> mackenzie. i think a loss might be better.
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sears, revenue beat forecast. negative revenues would be cool. negative growth in same store sales. sears said it was exploring options for its die hard, craftsman, kenmore and home services businesses. i have to thought whoever came up with die hard for a car battery, that was a really good -- wasn't it? it's a term, die hard. >> it's a movie. >> was bruce willis first or the battery? >> the battery was first. >> die hard fans. so you have a car battery and it's a die hard battery. it never dies. i'm surprised sears could be such a crappy start with a patry
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name of die hard. am i right or am i right? >> right, right. yeah. i've got to say die hard, does that mean it's going to die and then die more? >> we're all going to die. are you 30 yet? >> 34. thanks for that. >> you will realize sooner or later. mixed quarter for dollar general. $1.03, 8 cents above estimates. revenue absolutely short. a same sales increase was actually below consensus of 2.4%. dollar tree beat estimates with quarterly profits of $89 a share. >> the analysts say these will be the place where you will find the value. >> abercrombie & fitch lost 59
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cents a share. eight cents wider than they were expected. retail total sales fell for the 13th consecutive quarter. okay. >> let's tell you about a story getting a little bit of buzz. shares of time warner are rising. financial times saying eddie q raised the idea of bidding for the media giant in a meeting in corporate strategy. it never got within the opening stages. of course this is raising the prospect of what apple may ultimately be interested in in terms of its media strategy. whether it might try to buy another meeting company and whether time warner would be on its list. also, donald trump and bernie sanders independently agreed to a debate. trump was asked is on jimmy kimmel live.
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he said he would as long as the proceeds went to charity. sanders responding on twitter saying game on. i look forward to debating donald trump in california. we'll see if this actually materializes. i have a hard time with it being true. it was like, yeah, if he writes a big enough check. >> this was the goal. >> i know. and then the answer was -- he's not going to say now. 74-year-old socialists. >> he could say i don't debate socialists. >> i don't debate people who are going to be the democratic nominee. there is a method to the madness. you're starting to see it in certain texts.
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>> i spend enough time with you. our guest host this morning is professor adam grant. he is a trusted adviser to some of the world's most powerful business leaders. "originals" talks about championing new ideas. we have a lot more to talk about with him this morning. thanks for being here. >> glad to be back. so many management issues, so many corporate issues we could jump through. i felt we can start with something on the front page of the new york. this focuses on walgreen's. wall greens, in getting into this partnership, never thoroughly vetted any of the technology behind it. what do you think as somebody who has been watching this unfold? >> very disturbing. you look at this great new technology.
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you don't want to be the latest adopter. you see all the companies and people are getting behind it. how much homework do you really think you need to do. >> you made the point that we need a lot of help. up don't want to get into a witch-hunt frame of mind. >> i think it's a tightrope walk. the best thing you can do is assume everyone's intentions are positive but the technology is inherent. >> do you still think in this case that's what we're talking about? >> i don't know. i think it's hard to tell. there are so many different stories beginning at this moment. >> so many things indicate there was some knowledge or fore thought whether this was really
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working. are you start to think this -- >> what was the question? the whole thing is wrong? >> i would say it's new technology. it's difficult. you give the benefit of the doubt that they are trying to do the right thing. there are inherent things with new technology. maybe it was all intentioned. >> i think they are well intentioned of what they want to ultimately tkao. i think some of the representations now don't seem as well intentioned. >> part of the question is edison. their new technology is where you take a few drops of blood from a finger could be just as effective as you would get from a full vial of blood. that is what he have heard from elizabeth holmes. when trying to back up and verify some of the tests, they
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have used -- they have said they don't want to let the industry in on their secrets. is that a viable call? silicon valley full of people trying to protect trade secrets. does this go a step further? >> it does. it is wi it is i worry about creating a culture of fear. i'm going to be attacked before i even test my new technology. >> can we talk about the association in terms of this board. you just have this idea that you have a cohort of people, with a reputation but people is see through it. like lending tree. mary meeker was on that board. they give a good housekeeping
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seal of approval to these things. how are investors and management when you start to really look at a company? how do we look at those signals and do you discount the signals? what are you supposed to do? >> you have to discount them if they are not industry. i want to look and cisse who knows blood tests. >> did they ever keep the it pry pry tear. >> we have been told because we're from the cleveland clinic -- >> if you keep falling back on the kfc -- nobody knows what's in kfc original chicken. and i understand this. you need a government person to
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say here's how we are pretending to do it. can you repeat it? if you can't -- >> i was doing it on 12 different diseases. >> thus far it doesn't seem to work. >> they say all along we can't let anyone test to see if we have real technology because we have to keep it to ourselves. >> i believe she was well intentioned. she had to think at some point she was going to work. maybe initially they didn't think in else was there. >> it seems malice afore thought. i don't know if it doesn't work. >> yeah. there's going to be a way to run the test. let somebody independently test it.
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>> otherwise, we would be doing cold fusion. >> and you would have more than a billion dollar valuation. >> we would. it's not repeatly. >> adam will be with us the rest of the hour. >> what we come back, crude officially making $50. we'll talk technicals when we return. a good car has to maneuver quickly. that's also true of a good car company. people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cities, all around the world. doing that required dozens of data centers, designed for speed and performance. we built our business on the ibm cloud. because that's what the ibm cloud is built for.
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the dow rising 359 points in two sessions. crude oil $50 a barrel. chief technical strategist katey stockton. i was asked three or four weeks ago when it looked like the market was getting into that area again where it had been lower lows and lower highs. and you said this is a crucial time if it turns down again. we didn't go through. >> he failed near that resistance. >> we are giving it another shot. and i think it will fail again. so a breakout really needs confirmation not just in price but in time. s&p 500 is right around 2,100. you need to see it stay a couple
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weeks to confirm or break out. and i don't think that's going to happen. >> we have had smart guys saying dead money in the stock market right now. as long as the fed keeps talking about it or doing it, it is tough for the market to sustain up side movement. so the fundamentals almost confirm the region for why the technicals are staying. >> the fed has a tendency for inflection. the reaction does tend to come afterwards no matter what the anticipation is. it's not dead money. in the interim, we might be looking at the sense of volatility. if it breaks out from its range, that's where i think we see down side with volatility. >> so whenever we talk
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technicals, short-term, immediately term and long-term. if you keep failing at something, you don't even true. >> that's right. nothing is worse than a false breakout. that's what they say. >> how many more and if it files again when do we go to new highs again? >> i think it's later this year. i do. i am looking for a higher low relative to the february lows. i don't have a high conviction in the actual level but rather looking for a set-out where we have breadth, leadership, and sentiment. they tend to be contrarian. >> we have had a role in correction in all different stocks and groups. just gut wrenching. retailers. there's been a lot of sectors that already self corrected. >> there is always something to do. a tug of war.
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energy has done very well. what i would be watching are facebook or amazon, which are still very well established long-term uptrends. if they crack a bit, it would be harder for the broader market because of their effect on sentiment. >> and oil is going to stay above 50? does it test 40 again? does it test 60? >> i'm looking for it to the ground sideways to lower phau a bit, consolidate. the correlation has grown up with that market. that's fine. they often do. i'm looking at mid-40s for an entry park. >> so $11 would be a 50% retracement. >> 50 is a nice, long number. so it is hardly free and clear but indeed looks look we have seen a lasting role reversal.
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>> you look at dollar or interest rates? do you have an idea of the 10-year? >> it is spaupporter of 165. we can get caught up in the short-term swings where really it's made no progress. >> who is the greatest technical analyst of all time. we have had them all on here the last 25 years. >> i'm a big ralph pour. >> do you know zinder? that was before your time. >> we have met the people that created the indicators. >> joe grant. >> is oh, yeah. i do. i know his work. >> then he started dressing up in an outfit. >> the hat and all? >> he called the big market crash in 1981 or '82.
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down 28 points on the dow. one day, down 28 points. >> goodness. that's memorable. >> i'm going to start picking cnbc contributors. >> thanks, joe. >> narrator: i don't know how they do it. >> anyway, thank you. when we come back, it is summer housing season. we'll show you the house the president is moving into after his term ends. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new platforms across channels
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>> this is perfect for the president, post-presidency. he's just staying here for a while. >> d.c.? >> yeah. because of his daughter going to school. i bet you money the second she graduates he is so long gone. >> new york? >> he's on a jet plane like nobody's business. >> he loves air force one. >> so would i. coming up, breaking economic data just were minutes away. incredible bladder protection from always discreet that lets you move like you mean it now comes with an incredible promise. the always discreet double your money back guarantee. always discreet is for bladder leaks and it's drier than poise.
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welcome back to "squawk box". april read on durable goods preliminary and jobless claims. dropped an even 10k from 278 to 268. 2.15 million. now 2.16 and change. durable goods, preliminary april up 3.4. that is multiples of the kind of half of 1% we were looking for. last month we gained full
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percent on a revision. 0.4 up. capital orders, orders were down 0.8. here's the fly in the ointment. that's a proxy for business investing, spending. down 0.8. and i think we want to pay particularly close attention to that considering the idea the numbers haven't been that great. february is down 1.6. january, 1.5. our last note was unchanged originally. it is down to down 0.1. all the data is relatively good. maybe that spending, business spending down the road isn't looking as good. all in all looking at rates, yields have moved just a smidge. not much, though. considering the notion of what's coming up, whether it's central bank activity or the notion that second quarter is going to do
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much better than anticipated. all continuing to give us positive equity numbers. we did lose a few points on the free opening dow. of course auctions this week, give us a glimpse into the strategies investors are using or the future of higher rate. because they showed up in droves for two and fives. those are shorter maturities. seven-year notes, 1:00 eastern. i'll cover the auction. you want to be there. back to the game. >> rick, we will. steve lease man has more on this data as well. >> i wish i could put it all into one neat package and pack it up and put a bow around it. i think the overall conclusion is the economy is not nearly as weak as we feared. and it may be better than we
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thought it was. when we look at that march revision is, rick was right to make a big deal out of the revision to the march data. this april data is multiples of the consensus estimate. you had a lot of strength in the aircraft or civilian aircraft part of things. you had strength in computers, transportation equipment. so this concept of the april read, the second quarter readout, the artificial first quarter weakness are all looking like they were accurate in terms of what people thought was going on. >> why is that a constant every year? >> you know, we pointed it out. there were changes apparently that were made. they said they are still making these changes. you have confirmation of the strength in the claims numbers, which is down to 268, which is, you know, as we have talked about, the desert island indicator. what one indicator would they go with on a desert island. claims is the best indicator of
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the economy at this present moment. we had 2.6% cnbc rapid update for gdp. big rebound from the first quarter. i think it may be higher now. >> and the market is lower. >> well, that's going to confirm. >> stupid. we're back to that again. >> there is one number worth talking about. i would like to turn to our guest host. as rick correctly pointed out. minus 08 after minus 01 after minus 2.1, it doesn't look like businesses are investing and spending. if you look at a chart of stock prices and investment, they are married at the hip here. there is a 62% r squared in
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there. we don't know what causes what. bottom line is companies seem very reluctant. >> i'm hearing this over and over again. i think the simple answer is we need incentives to look at a longview instead of being pressured every quarter. >> you think this is a quarterly mental phenomenon that the market is pressuring. many would say it's regulations, all of this regulation. some say it is the zero interest rate. you incentivize companies. i've never understood this. to go into buying back stock and giving away dividends rather than buying actual equipment. >> what i hear over and over again we just don't have the freedom to think about investing for the long haul. >> for 25 years we have been doing quarterly numbers every quarter and comparing them above and below expectations.
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>> it's your fault, joe. >> companies were investing with the short-term nature. now it is more short-term. what's different is the zero interest rate. we have always watched the quarterly reports. >> i have a separate governance question. >> before you do that, i want to get to the theory. larry summer has this schtick that he does. snap chat was bought for $16 million. 22. whatever it was. >> valued. >> okay. he said what they need at snap chat is six people and three computers. there's no demand for capital. there's no need neuer investment. and you can create that massive value, at least potential value, without need for investment. it's a different world in terms of value creation. >> yeah. this is why so fewer tech companies are going public
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today. >> hence, lower interest rates because you have no demand for capital. sorry, andrew. i wanted to get to that. >> no. but on your short-term issue, what may have made it short-term? i'm going to argue but i'm curious what he thinks, is it possible we created such democracy in the boardroom, we have allowed activists in the boardroom. everybody had these entrenched boards. okay. actually, we want to have democracy in the boardroom. has that created long-term thinking or short-term thinking? >> i think it's done both. the question is if i don't manage this quarter, what is going to happen to me? >> is there a rule that washington could change or create or get rid of to invest? >> i don't know. you're the expert. tell me. >> well, i think a lot of the rules are local and state rules. when i look at the issues of
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barriers to getting into business, a lot of the educational rules and licensing rules that are out there, i don't know how that's addressed on a national level. but what i see happening is i see entrenched businesses using the political process to limit competition. and that troubles me. i don't know how that is addressed from a national level. things can be done. paperwork reduction. people are complaining about the tax system. you asked me. that's what i would say. a lot of barriers on the state and local level. >> and the uncertainty of the last seven or eight years in terms of the private sector. more regulations and whatever. in 2016 we get a new guy. it will be trump or hillary. suddenly the uncertainty -- it's not necessarily going to be a relief from the previous seven years. it's not jeb bush coming in or, i don't know, bill clinton. it's all playing into some type of uncertainty for corporate.
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i wouldn't know it. would you know fully what the future is going to b at this point? >> i don't think you ever can. ist used to be they're going to want romney. it wasn't quite as much of a wild card as it is right now. >> i don't think business knows who to back. do you hear business being definitive? >> the past eight years has been, even though that's the way the job creation occurs, it hasn't been one of the best environments at least in terms of the rhetoric. >> i agree with that. okay. >> steve, thank you. >> my pleasure. good numbers too. >> of course adam will be with us the rest of the hour. when we come back, automakers shifting gears and looking towards a technology-driven future. why g.m., toyota and volkswagen are getting in on the ride sharing trend. that's next stkphraofplt and a check on the experience in the skies. "squawk box" will be right back.
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new bikes aren't selling guys... what are we gonna do? how about we pump more into promotions? ♪ nah. what else? what if we hire more sales reps? ♪ nah. what else? what if we digitize the whole supply chain? so people can customize their bike before they buy it. that worked better than expected. i'll dial it back. yeah, dial it back.
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welcome back to "squawk box". toyota teaming up with uber. general motors partnering with lyft. they may be thinking if you can't beat them, you have to
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join them. the founder and co of an on demand parking app. zirx. >> they are seeing rapid destruction of the industry. more and more people are saying, do we need two cars? do i need any cars? >> in the short-term, most of the deals around selling or leasing more vehicles through some kind of vendor financing program like the way uber is doing. >> that's right. >> that's what that is about. but longer term, what is this really? >> longer term, you are having a shift in the way people view cars and mobility. for years, car manufacturers have thought every four years i'm going to show up. if i'm a family, i'm going to lease or finance two. now they are saying i can get by with one car or no cars.
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the number of cars any given car will manufacture or sell will go down. and you may get where i'll i am is a supplier to get. >> is the idea to own them or be them? >> i think it is a race to see whether they can become one of them or partner in some way. >> do you want to be one of them? >> i think you do. i think more and more people will use these services. the idea that i'm going to own a car that is going to sit idle 90% of the time. >> on this idea of autonomous vehicles? >> i think autonomy is coming. you have see the tesla, people texting as they drive, as the car drives itself. >> do you see a lot of that? >> yes, i do.
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>> how scary is that? >> it is scary when you're driving a regular car. before you have autonomy, you will have this notion of car sharing, ride sharing. you will see people like google and uber continue to take market share. >> does apple have a car company? >> yes. they definitely will have a car company. they may manufacture their own car or find a hardware supplier. they are looking at the car market in the same way. they say we can build a better hardware product delivered to consumers. uber today. maybe a taxi or car sharing service. maybe it is a last mile delivery service for amazon or anybody. it does all of these other things. other people say not so fast.
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and certain place like new york city, if you want to get food delivered, a bike and it doesn't work. >> i think they are grand. not only the taxi replacement is sort of where they started. i think they are thinking about car replacement, maybe even a delivery replacement. unlimited capital. >> uber is here to stay we think. >> we think. >> china. >> yeah. >> where is lyft in all of this? and get, which is subsidizing like crazy. >> i don't think it's a winner take all. i think you will see new competitors. so i think there's a chance that you will have somebody like google or somebody like amazon launch similar services. >> and decimate uber?
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>> compete. certainly compete. >> or wait until they take out all the other competitors. >> that's right. you can imagine an amazon prime membership. >> that includes a car service? >> that's right. it's interesting. really interesting. >> thank you. >> absolutely. great to be here. >> wait until they dilute their war chests, taking everyone else out. >> when we come back, jim cramer from the new york stock exchange. crude oil pushing above $50 for the first time since october. wti up $55 to $50.10. stick around. "squawk box" will be right back. ♪ ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't.
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and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. looktry align probiotic.our digestive system? for a non-stop, sweet treat goodness, hold on to your tiara kind of day. live 24/7. with 24/7 digestive support. try align, the #1 ge recommended probiotic.
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cramer joins us now. it only had to go back to 50 on crude. a 3% yield the entire way. is there anything else like that, oil or something. >> it's not going to shoot the lights out when it all goes up but when it collapses, they are
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geniuses. i've been critical of them but i have to drop all criticism. they were ready for this and you have to appreciate how smart they really are. >> someday interest rates are going to go up, right? will there be a time when we should buy the banks? >> when you go back over that toll brother calls, they said, look, we need higher interest rates. when a home builder calls tore high -- for higher interest rates, it's time. >> the big durable goods number. i'm waiting for the stock market to go up, back to june again, back to worrying about it then? >> i think it's good. when good is good, i think we're all right. i think the bob toll call said it all to me. if we have higher interest rates because of demand, that's okay. i think that's super. he's a smarter guy than i am. >> we used to say, wow, we've
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been looking for higher rates for years. i think it's like eight years now, isn't it? >> about eight years. when the home builders want it, i want it. >> maybe you're going to get it. what do you think, june? i still don't think june. >> we get that employment number next friday. i like bullard. bullard is saying all the right things now. i think if bullard says the data in the next couple weeks is strong, then it's time and i'm with him. >> yeah. >> smart guy. >> he's going to be really happy that you like him now, i think. >> he came around my view in oil. he and i are on the same page. we're like separated at birth. i'm not kidding. he's always a nice guy. i felt terrible i disagreed with him. >> salt of the earth, missouri. >> coming up, we'll give you some final thoughts from our
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guest host, adam grant, about keeping your enemies, frenemies close. >> enemies are better than frenemies. >> that's why we are looking right at you, baby. >> okay. >> we're watching each other. >> first, a quick programming note. you don't want to miss "pandora lives." don't miss it. and netflix trading higher given speculation about time warner. under $30 million. and now, another mercedes-benz makes history selling at just over $30,000. ♪ and to think this one actually has a surround-sound stereo. the 2016 cla. lease the cla250 for $299 a month at your local mercedes-benz dealer. mercedes-benz.
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the best or nothing.
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we've been following robert frank on his journey to the hamptons. where are you now, robert? >> we are just about to land in south hampton. we took off almost exactly a half hour ago and we are probably about five minutes from landing in south hampton. i don't know where kate rogers is but judging by the fdr traffic, she's probably still somewhere in the east village. we're about five minutes away. >> how many people you have on that helicopter with you? >> we have a total of four including the captain. it's been a beautiful ride, beautiful, clear day. you not only get to the hamptons
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faster but you get a great view of new york city, the gold coast and some great real estate shopping up here. you see all the biggest mansions you can't see from the ground. it's been a nice flight and we should be touching down in just about 3 to 5 minutes here. >> is weisenthal with you? he owns blade. >> he's probably getting ready to go to the beach. they got some calls from the show "billions," they started a service from greenwich to the hamptons. this company has taken off in two years' time. we should be landing. we'll see when kate gets here. >> all right. keep in touch. we'll be watching.
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one pilot. >> they do one pilot. they do one pilot. >> one very healthy, young pilot with low cholesterol and -- right? >> you got to hope. you got to hope. >> i've always heard two pilots, man, right? two engines, two pilots. two and two. just like chuck woolery, two and two. let's get some thoughts from our guest host, adam grant. you're like a renaissance man. you're a thinker, too. >> because i don't actually do anything, right? >> i talked to him before you even got here and said we don't appreciate our relationship as much as we should. why are enemies better than frenemies? frenemies, you think they're your friend. >> there's this incredible study by michelle duffy that says if you have co-workes that are
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trying to undermine you and stab you in the back, that is not as bad as if they're supporting you. >> so stab in the front but support. >> no, so you want the people who are undermining you as opposed to people who sometimes try to screw you over and other times have your back. >> inconsistent. >> right. >> i tried to tell you that early. >> because there's no inconsistency. >> you can anticipate it. >> i think this is brilliant. he's on to something. >> you two need couples therapy. >> that's why we come here every morning. >> people who have couples therapy end up going their separate ways normally. >> really? >> yeah. >> there's a tension between us. there's a fine line between love and hate. why are you laughing? >> i know where you're going with this. >> no, i'm not going anywhere with that.
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check the futures one more time before we head out of here. >> suddenly the question of june for the fed is a real issue. >> good news should be good news. so are we up 100 by the end of the day or not? >> i'm not taking your bet this time either. not doing it. >> that does it for us today. right now it's time for "squawk on the street." a big day here at the nyc, highlighted by a billion dollar ipo from u.s. foods. cup see the banner hanging outside. good morning, welcome to "squawk on the street." i'm carl

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