tv Squawk on the Street CNBC June 12, 2019 9:00am-11:00am EDT
we got to go 8:00 tonight, game seven "squawk on the street" begins right now. ♪ good morning, welcome everyone, i am sara eisen with jim cramer and friwilfred frost. carl quintanilla is at the code conference with us he'll have the highlights, david faber has the day off. take a look at futures right new. we did great on the six-day winning straight for the dow yesterday and sort of
backtracking as this market continues. future is down 50 points hong kong got hit especially hard over night down almost 2% s&p futures down 6 our road map for the hours going to start with those stocks, future slower. apple on a daily gain at least 1% since august 2000s. >> it is not just the president. bill aikman and united technologies >> the stock is up, elon musk is saying his company could be looking at its best quarter ever we'll start with the market. we' futures is moving slower. tech sector is coming off its six con executisecutive positiv. each day is a gain greater than 1% we have not seen that.
since august 2000s lower in the premarket. >> i will tell you, katy when she came out, there is really 130 downside of everything ever since then this stoc stock -- she has the power she gave you a definition of what can go wrong and why you still pay a certain price this stock is very much apart of when ever trump says there may be something i got to tell you that the stock is very cheap obviously. the last leg up was when we got word from foxconn that they can make everything not in china this has gotten a reprieve from both sides i do think you can own it, don't trade it i totally understand why some might say this is a good run, i am done. >> what do you make of the fact of what tim cook said recently they have not seen in effect of
the rise in china, as a factor demands hitting iphones. he's suggesting it is not because of the trade war he's saying maybe it is pricing or anything else >> i think we are waiting for the -- revenge of huawei huawei did not ship it to customers. apple is down i think because people say, huawei is a jargon and finally the regime is cracking down on apple tim cook has said it over and over again and that's not going to happen. i actually think it is more likely that president trump hurt apple than prosecute xi. president xi >> through the doj investigat n investigation? >> his take on huawei is they may not survive this he sort of compared it to iran
sanctions. even if you are up and wants to do business with huawei, they can't sort their part. it is a national treasure so to speak with china china is not a democracy i think hong kong has the biggest to say i think that it is highly unlikely that the chinese will let the jewel close given the fact it does have the lead in 5g >> apple, do you see the potential for supply chain or demand in china. >> the problem is the president, he's got this alternative sets f of facts china, there were jobs back in the u.s. jobs were never in the u.s the president firmly believes of
the alternative of facts that tim cook is favoring china over the united states. all three of us here have a different fact set, system >> by the way, not being facetious and not making fun just saying that the president does believe that tim cook has too many jobs in china tim cook runs an international company. elon musk, why tim cook would not build plant isplants? the president has his view of why is everything not made here? >> i think that's a tough call these are cars >> it does not happen over night. >> so hard to move you see here it says vietnam
>> i think it is great >> now we got to dredge it come on. >> the user base as well of smartphones tend to be wild. >> i agree with that there is no boiling for huawei i stand from tim cook that this is i cridiculous he's trying to do the right thing which is make a product there is demand. everybody does it. why should we not be allowed to do it. >> taking back to the market data that we got cpi was a friendly number, lower, month on month and year on year than expected and trend shows and it puts the fed in a tricky position next week. why is the president criticizing? why not trash powell today >> he should take out the trash. >> it is always hard to find the impact of tariffs.
you can look at a big spike in furniture or household items i don't know if that's a tariff factor or not. overall, it was low. >> does it hit the companies >> well, we know a lot of retailers are eating it. # target is a skip and walmart is a skip. kroger, you are from cincinnati, does kroger have -- >> go bruins >> you are from boston >> that's it that was alternative sets of facts on your part >> walmart, so much of their business is food so they can say really -- >> are there any macro market point to bring out this yield. the last couple of days, we have seen yields ticked up. >> going the other way today >> the money keeps ongoing back because it is all algorithm.
today i like ppg and tomorrow i hate ppg that's from pittsburgh >> that's a record low who would not? they're getting paid i need to understand what fiduciary >> some kind of pension, matching deal? all the things of a recession coming, they're happy to lock it up >> agree >> it is tracking yield. >> you know we have to move on >> we do >> carl quintanilla, day two of the code conference in scottsdale, arizona, how hot is it >> right now it is 79 degrees. we'll see if we'll get to 107 or 108. great discussion, day two at code here, it is fascinating
that at this tech conference, two of the biggest highlights yesterday were the ceos of a bank and an airline. david solomon and goldman sachs talked to him yesterday afternoon. he talked about the way equities are relying on a rate cut. what may happen, goldman says there will be no cut we did talk about apple credit card that he addressed, building the infrastructure for the credit card is harder than they think. >> it is not an easy thing to do we have been working on it for quite some time. we are excited of the platform we built and the partnership with apple it is invaded right now. there are some employees of goldman sachs that's using the card i like the way it looks. i like the simplicity and paying bills and ease of use. i think it is going to be well received the early feedback indicates there will be a lot of interests
in it. we'll launch it later in the summer >> all right, it is in data. there is that question of delta airlines, big technology played here he argued they are investing in bio metrics, you can track your bags and see when it gets to baggage claim. tourism to the united states is showing some warning signs >> i think certainly -- as we could be, counter urrency is al playing apart of that, too >> not as welcoming an environment for the international traveler and of course currencies.
jim, and sara and will, we have seen that dynamic played out through a number of individual names. to hear delta say it, we'll keep a close eye on that as we get into the summer. >> carl. great news making interviews and i know the airlines have been whole. it was such an important interview. the issue salamolomon is missins not the demand side. it is the over demand side i think the love of apple is so great that it will overwhelm what solomon wants to do they'll have to build four or five centers just to be able to handle credit cards. the idea that you can take the credit card and not necessarily have the right risk profile, that's another thing the issue is them being overwhelmed by demand and not they're not enough demand. >> i know you are more worried of the infrastructure of thin
tech if goldman were here now, they argued argue a third of our staff is engineered to handle the flux of demand >> the best management and they can handle whether or not they can extend credit. apple is probably cut quite tough on the margin that goldman sachs is going to get on this. i don't think it will be increment to their returns and profitability. the question is the euro is aligned. apple customers are wealthy kpa customers, goldman sachs is building online bank and attracting more people down the line could be tra attractive i will say more broadly about this when david solomon was battling, you have a guy that was known for being low across the s&p 500 companies and having great relationships.
people say can david solomon take those relationships and build it on other business this is an example of that the question is does it deliver to the bottom line in the next couple of years. >> but, let me just ask you, i know we got to move on what the hell does tim cook want to do with the name marcus does he need marcus? does he like apple more than marcus i think apple has more recognition. the credit card says apple and goldman sachs. you raised the right question. >> i would argue, goldman's m k marketing is still influx. we don't know. >> marcus. >> it is kind of catchy. >> catchy? >> david solomon, he counts the rate cuts were not priced into
ma market when we return, elon musk's message to tesla's shareholders. we'll fill you in. taking another look at futures this morning we broke the six-day win streak on the dow yesterday we are under a little pressure and nothing extreme. dow futures down 36 and s&p is down 4.5 resqwkn e re" ve at the post 9 at the nyc when we come right back. ital of the wor, it also has the highest growth in manufacturing jobs in the us. it's a competition for the talent. employees need more than just a paycheck. you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions. the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential.
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welcome back to "squawk on the street." best monthly performances for tesla. elon musk expressing optimism about demand for tesla >> sales have far exceeded production and productis and pre been pretty good we are doing well. we got a decent shot on every level. we are very close. >> some of that a little hard to hear i want to hear there is na demad problem. 90% of the orders for model three were coming from people
who have not been on the reservation list >> he also talked about the trade-ins involving cheaper cars that's more positive the man is a magician. i got to give him credit i got to feel like before you criticize him on numbers he's got things people want. this is so at odds of what every analysts had been saying i just don't know. maybe he calms things down a little bit he ratchets up the states. >> he is like jay powell he can turn the tide by just speaking without actually doing. now he got to deliver. that was a disappointing first quarter. >> he didn't think so. he lacks the weapon of twitter he and the president, they're able to control the narrative. now he's just up there, kind of
sounds like he works at ford >> we'll take that as the worst insult he'll ever heard. >> totally >> the point, jim, at what point does the disappointment in sales if it happens again which he's suggesting it is not becoming a step too far the first quarter is seen as too negative can they survive the second quarter like that? >> he backtracks from the robo tax. he says the u.s. is fine i think if we can just keep the bulls here and talk about china and how great china is doing and talk about europe. remember he's pt musk. he can keep it going >> talk about 400 miles range
ca cars, autonomous driving >> how about insurance >> i think the question is timing targets >> well, they are moving it is ambitious. we'll see. >> a huge number of people that is betting against it. they care about the financials and care about things like numbers and honesty. the car lovers, look at the big rallies in london that they have tell me about the big tesla rallies. >> i have not seen it. >> he's been out of london for a while. >> how come you not know that? >> david faber was at a gigantic tesla rallies. >> where >> don't try to pin me down. >> they had huge tesla rallies in london. i didn't know about it >> this is for real. >> it is definitely brexit
>> and you can actually recommend it >> the level where the balance sheet sticks >> it is a balance shee sheet -- look, i think that was great that he did. he can keep the vaults in the air. regardless if you don't want to recommend it or not. what if they deliver on q-2. >> sec gotten in the way a little bit >> he still tweets >> he can tweet what he likes. up next, on the show, cramer's mad dash as we count you down to the opening bell just about 9 minutes away. taking a look at the futures
dow futures down 26. s&p down 3.5 more "squawk on the street" live from the nyc straight ahead. of savings and service. whoa. travis in it made it. it's amazing. oh is that travis's app? it's pretty cool, isn't it? there's two of them. they're multiplying. no, guys, its me. see, i'm real. i'm real! he thinks he's real. geico. over 75 years of savings and service. there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products.
we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. u.s. stocks are set to follow europe and asia lower today. stocks are off the worst level of the premarket sessions. dow is down 29 points. six minutes until the open, we'll be right back.
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dash >> there is a thing called experience economy dave and buster's tumbling they tried to blame on weather >> i am over here with will. >> they also have tariff problems you go to dave and busters, there is a machine i am going to demonstrate. it is like this and it goes down and you try to pick up this chinese thing, each time you do that, it costs like a dollar and a half and you can't get it. >> it is a claw. >> thank you that tariff problem is also hurting the margins. even if you get that thing which is worth about 2 cents, wilf,
when you have kids, you will lose a fortune the main thing is wow, what a botch quarter, it was a sign that things were not well in the mall did you read that part >> food and beverage >> i did they talked up in the call they talked up their amusement part of the business that was positive. >> it was food >> they found something positive >> they went on and on >> i was waiting for it to come up >> they make their mumbai people spending too much drinking and doing the claw >> jim, you got another job if you need it. the claw >> i am a pro. >> this is still a fine margin business >> we'll see what they'll do and
pointed very much to strong fast food sales, relative to retail sales. >> i saw that. >> beyond meat is back, too. that's because -- >> okay, you are watching the opening bell right now and the s&p 500 at the cnbc realtime exchange at the big board, we got global scape and over at the nasdaq, crowd strike we'll talk to the ceo in "squawk alley. >> none of us are in that show >> questions on the markets overall, how do you balance sort of the hoax of feds stimulus and fear of a trade war? >> we are in a waiting period. things are fine. people wanted to be fabulous
people like to say that stuff because it sounds really cool. the numbers get weak i expect powell to say something nice he's probably doing something, i am not quite sure. i said last time about the trade talks. it is all he says she says >> the question is how much relief we'll get for g 20. >> put in place some sort of truce. >> now he's talking about what kind of tariffs. >> they never mention smooth holly. that's an example you should never do tariffs >> i am just saying, if you take a look at the history, it is not nearly as bad of the figure
because it happens after the crash. i am getting worried, brexit falls apart. you have not talked about brexit >> it is still a huge story. >> what happens to it? >> there will be hunger issue i the u.k. if it is done wrong >> it is plausible we don't know exactly what will happen the point to focus on, october 31st, is not the day at this rate >> it is going to drag on. >> i think regardless of what happens who the next prime minister is. -- >> boris johnson, he's still the front runner, right? he says he was not going to go for a no-deal brexit >> it is on the table and negotiating tactics.
>> there is still a lot of moving parts we can get another vote. >> technology, there is a negative call and lambert research i rather go with my information. you are a son of the lord. a guy when a knight and stuff. >> okay, so then you got spotify. >> okay, good for him. and the other guy is fire or something? >> let me ask you something
something -- you better do something on that. >> here is my question are you allowed to call the queen fantastic? >> of course.fantastic, you ca do that? >> of course >> i am a state visit. >> it is not an insult >> there is only one country in the world where the president is giving positive trade. >> we have a special aid to continue with trump. do you think he likes churchill? >> i think it is more of a rhetorical question. >> can we talk about the special
relationship between raytheon and united techologies bill aikman opposed this merger. achman which he tells greg hayes, the deal makes no strategic sense, the company is using massively under value stock to buy a business of inferior quality the new york post is now saying, dan loub also opposes the deal >> dear greg but released to "the wall street journal." >> raytheon is inferior business the things he said and when we
had dr. kennedy here from raytheon, they have a problem. the government calls in, listen, we got to classify business for you and you got to take it the market is pretty low t so there is a lot of truthful but the idea is if you combine the truth, greg hayes will fix that >> it is an old stock deal it is down 6% this week. which makes it a less attractive deal overall for ray thitheon. you talk to harris if you speak to the harris people, they have a little more leverage defense spending, people think
it is peaked i like this. it makes for a stronger defense business but, all defense contracts were down yesterday >> also, let's not forget that the president already thrown a little skepticism ornd taround e deal here is what he told "squawk box" two days ago. >> it is a great economy, i hear united and i bought a lot of carri carrier, when i hear united and raythe raytheon, when i hear they are merging, does it take away more competition? it becomes one big, fat beautiful company. but, i have to negotiate meaning the united states have to buy things does it make less competitive? because it is already less non competitive. >> i wonder if that's an over hang >> totally has hayes is saying there is no
competition. >> less than1% overlap, right? >>. >> he's a very bright guy. i think gregg is is a fighter. this will be a fantastic deal. can he get through the president raised the question, he's bought a lot of carri carrier. but, i think the issue for me is that there is no overlap so the true justice department antitrust, it is different from defense department just because raytheon does not compete right now, does not mean it is going to compete if it gets through, it is great. >> we are nine minutes into the trade. >> what are you thinking about
back to carl over to you. >> give the guy a minute day two of code here, a quick touch, guys on the media if david were here, he would have paid attention to what netflix said yesterday the actress who was the cocreator of this new show "russian doll" with amy poehler. the general line was these players we knew they're going to come into our space, taken a little longer than we thought. she was asked of all of them, which one she's paying the most attention to >> i don't think there is any one that stands out as the competitor >> hulu, maybe hulu has been growing nicely over the last few years. they're domestics. disney plus would be great to see what they do
we anticipated all of these traditional players would enter into our space the more successful we were of billi building an on demand subscriber space, the more they'll likely start licensing with us. we believe this shift will happen it is taken many years longer. we welcome it. >> that's sort of an echo of what hayes said for years. after the news last week, it is interesting that netflix and amazon and apple are back above their 50-day moving average, netflix and other members of faang have not >> i think netflix, this is a hit driven stock they have not had a hit lately i think that matters tremendously
hayes, he always says bring it on and that level of not arrogance but i am emperical evidence of how he's been so right makes people feel terrific i think that we need to see some real numbers from disney i love the concept what are people thinking of disney plus. is it for real >> who knows, right? everybody sort of groping in the dark on pricing and we'll see. it sounds like a great value proposition when you compare it to going to the movies there is been a lot of talk actually this week the skinny bundle. pbs presented yesterday, they can't make an announcement yet there is a negotiating and people need to be seen it is usually not one-on-one subscription it is through a bundle highly coveted real estate right
n now. >> roku is ending up being the arbitor. i think roku is a platform, an equal system and not a gimmick i think they're one of the few companies that took on amazon and won. do people talk about roku at the conference that you are a t? >> funny, i have not heard much about them we had some downgrade the last couple of weeks. >> we consider this to be sort of a holy braille. i would note though -- >> beyond meat is 600. facebook and alphabet and netflix, all stocks are lower and moving down. >> really? >> can this market continue to rally with the key leadership
through under pressure and chasing regulation and semis are not rallying either. that's a leading indicator there are a lot of key groups a lot of people are watching like this >> what a run? we were up 1 quarter of a percent every day last week. let's not get greedy this is what i was consolidating tapes. bob pisani talks about that. we don't want faang everyday you probably are too young to remember faang and soupy sales market >> carl, we'll see you in just a bit. thank you. >> jim, i want to mention cisco. >> what level of research did he do that? >> oh, come on, robinson is killing it insecurity. i am not insecure.
he's going to get people out of cisco and get them back in at 53 wow, that's value for our viewers at home, is it >> is it relatively immune to the tariffs or at least did they play down on that? >> chuck robins said to his team i went out of china tch we are not doing business with china. sienna was also immune those were the two i absolutely just -- let's get out of china >> let's get to bob pisani of what's moving this morning >> we are having some problems we should be coming up with some resistance china names are having some problems here. se
semi is down transport are flatish and den defensive name is holding better what do we have and what do we don't have right now we do have an accommodated central bank and a mexico deal we don't have a china deal yet we don't have low valuations anymore. the market is not cheap anymore. that's a major problem for the market let me show you what's going on right now. we had a great year. nobody is happy about this s&p is up 50%. it has been a great year overall. the forward earnings multiples is prizced now. the historic range were forward multiples between 15 and 16. you can argue about where it shoi should be. it is pricey right now we are expecting earnings to do fairly well for the second half of the year and 2020 remember we had that great year
and the first half of last year, that's because earnings 22%. earnings were not going to be that great the earnings would have come down we are expecting much better numbers in the second half of the year and 2020, up 12%. well, if the markets start sniffing out,s t this is not gog to happen. the multiples are high too high and prices are going to come down this is why evercore got a state in the market right now. they're not going to do as well. the recovery is being pushed into the second half of 2020 evercore lowers the price target and a whole bunch of capital equipment stocks the guy that makes the semiconductors, pricing is winis
worsening. wait a minute, we'll have a second half recovery of 2019 what if the leader in this whole story, semiconductors does not have a second conductor. watch that story, watch that because it is going to determine where the market is going. we had a big up pricing in an ipo. cyber security is a hot space right now. crowd strike 34 a week ago it was 19 to 23 the price at $34 this is over at the nasdaq this is a unicorn. we are talking close to $8 billion valuation that's going to raise more of $600 million it will be a big day for cyber secure >> thank you for that bob. >> let's send it to the bond pit
with rick santelli >> good morning will we had some important date the last couple of days especially in front of the fed meeting. the only thing that the market seems to be going up on is the fact that there maybe some fed easing, i personally disagree with it. we'll know more as these meetings start to pull forward here is a six-year chart of cpi for inflation. it was 2% today. look at that chart and forget that it is cpi core. and think about it as your favorite stock does that look like a chart you buy? looks like a double tactic that's going to go lower they won't give it too much room and they could ease. >> is it the right thing it is a whole other topic. it gives us some volatility today. let's look at the chart, not
that we have not seen a lot of volatility, it is all the short doing the heavy lifting and throwing away like a microphone. right now it is down to 4, 2-year yesterday was exact opposite we saw the short leading rates up and the curve is flattening if you look at the dollar index, it had a large degree of volatility which translates to the upside with low inflation and a fed that may be easing, why? maybe for the same reason that the euro, the central bank was on the stimulus side than on the religious side of tighten up jim, bawill and sara. >> thank you that's up on "squawk alley," we'll be right around the flat line right now
beyond meat back up after more than 20% slide yesterday. >> told you. no gmo >> it is gluten free, i think. >> no gmo. >> despite a bernstein downgrade following jpm's footsteps yesterday, now up only 400 something percent since the ipo. >> downgraded rating and upgrade in the price target. no one knows how to value this thing. >> next up, stock trading with jim. >> oh, wow twenty-four people came together to sign an agreement that created the stock exchange. just the right elements coming together. it started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. it started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. it started with the markets, bringing together steel and buildings and silicon and medicine and rockets.
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or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. welcome back time for cramer and stock trading. what are we going for? >> talking about the idea of turning around the nasdaq and faang. sales force.com would start going up seven days after meal soft, a big acquisition, $5 billion, the stock recovered what it lost this is for tableau software, how much they paid if this stock can get back to where it was, you'll see the whole group ignite that's what to watch for. >> this acquisition doubled the size >> doubled, tripled the size i think it was a brilliant acquisition. needed to do something to scale. this one is at scale >> benioff continues to perform. >> he does. >> what's on "mad" tonight. >> quick quiz, who is the best home lender in the country
don't look >> who is the biggest? >> the best? and the biggest. >> i saw the promo. >> a lot of the banks slag them, but when you see the actual loss numbers, they're -- >> mortgage apps spiked today. >> you're so on your game. >> we have got -- i'm proud to have him that's also dan. >> coming up, this is a blast. you need to hang with millennials more, jim. find out what's really going on. carl is back with more highlights from the code conference "squawk on the street" will be right back dow down 7 points. don't go away.
stocks we're higher and you got a little defensive tilt as well. utilities and consumer staples are the leading groups in the market now energy and technology are the laggards nasdaq is down a little more than .2% road map for the hour will start with those mixed markets stocks taking a breather after the recent rally we're still having the best month here for june since january. >> and that quote, big, beautiful, defense deal is under fire new calls for utx to scrap the megamerger with raytheon >> hear what the ceo of belt ded bastian has to say and a lot more from code >> let's start with this market, as the june rally takes a pause here, the dow just turning positive we're kind of positive and negative this morning in the last half hour or so question is what cues are investors waiting for next let's bring in liz ann saunders
and binki charta i think we'll have a debate here you're pretty positive you are on with us a few weeks ago and you said buy the dip during may that turns out to have worked, the question is what happens next >> yeah, you know, i would say basically if you think about the s&p 500 and take a slightly bigger picture view, we have been trading in a range for about a year and a half. it is a pretty wide range. and as you sort of approach the top, you have to think about, like, you know, is the top going to hold again. and i would argue it very likely is going to hold, so, you know, i remain very much of the view that thingsactually do need to get worse before they get better i think, you know, you have to keep in mind -- >> on the trade front, on the economy front? what you referencing >> i would say the markets and the economy. so you just draw a simple chart of the s&p 500 last two years,
and you put a line through the peaks and ask what happened on that day pretty much to the day, you got basically an escalation of the trade war each time so as you approach that point, you know, the administration taking the view that the economy and the markets are in pretty good shape, you know, there is every reason to expect more of the same i would argue, you know, there is a lot of discussion about is there -- put in the market if it is there, it is way lower, probably down 2750 and probably not very effective i would argue what is likely to be a potentially very important trigger is if you look at the manufacturing ism in the u.s., you see after the presidential election that we basically went up and stayed up in what is a very unusually long period of very strong growth and manufacturing. starting, you know, late for last year, into the winter, we have come all the way down i would say the entire trump bump to manufacturing ism is now completely wiped out
and the next stop is likely into recession territory. and manufacturing in the u.s., you know in recession, even if you are still just only talking about the surveys has -- you know, strong potential to basically change the narrative and provide an incentive to reach an agreement basically on trade. >> david solomon told carl quintanilla yesterday he felt that the market had already priced in rate cuts and therefore was a risk to downside if that didn't happen. where do you stand on that >> you disappeared. >> i was told to look at camera six. i'm not used to sitting on this seat sorry, liz ann, continue. >> i think there is a risk the market has gotten too aggressive in terms of what it is pricing in for the fed they are clear they want to see the actual data and won't be swayed by market action. let's assume they are swayed by market action, the latest market action does not point to a need of a rate cut as early as june maybe july
i think they're going to actually want to point to something in the data that is concrete if you look throughout the past many, many years, where the market ends up pricing and fed expectations and what the fed does, there is a big disconnect between those two things i do think the market may have gotten ahead of itself, pricing in three cuts for this calendar year. >> still, liz ann, look at the cpi numbers, .1%, month over month, this pretty much gives the fed an excuse along with the weaker jobs number, the fact that they're constantly below target on inflation to at least change their tune. and start to lay the ground work for a cut. would you agree? >> i think they have laid a ground work for a cut. the change of the tune occurred in january when in reflection of this disinflationary trend they move from a much more hawkish position, having just raised interest rates in december to pause mode that they're in we just think that at least for the june meeting, they're more
likely to stay in pause mode than use that as the first launch point for a rate cut. we think that if we're going to get a rate cut and it is in the near term, it is more likely to be in the july meeting and the june meeting. >> i'm not sure i would use the word hope. i'm not sure that actually cutting the rates is going to really be helpful for the u.s. equity markets and i would argue, you know, both from a signaling point of view, from a fundamental point of view, rate cuts, you know, they do impact growth, you know, takes about a year, a year and a half they're talking about multiples going up that's hard to believe right here now >> if you're hearing the cheering here on the floor of the nyse, special visitor in the house, we have got young kid named king in support of king fights cancer, a charity, getting a nice standing ovation here. >> absolutely. >> at the nyse, 5-year-old.
>> young boy fighting leukemia. >> very sharply dressed. >> very well deserved round of applause for him we are 36 minutes into trade markets sort of flat as you said, sara, with the defensive tilt. >> we're down 0.3% the yield picture changes over the last couple of days. yields rising monday, tuesday, that helped a risk on tone today, a little bit lower. how does that affect what sectors people should be playing. >> was this to me? >> yes, liz ann. >> i was still actually silently cheering that young man. pictures like that actually kind of put all of this in perspective, don't they? >> yes >> as far as the -- what was the question about the yield move? >> exactly how are youti positioned based on your expectations sector wise. >> in august of last year we moved to more of a neutral
position with our sector recommendation, so we have had three outperform ratings and three underperform ratings on the outperform end of the spectrum was technology, financials and health care we moved down financials and technology to neutral at that point, leaving only health care as an outperform we moved up from underperform, utilities and reits, leaving only communication services as an underperform. so really just a little bit of a barbell, little more defensive on the outperform side, and more on the cyclical side, high valuation side on the underperform side. and that's really the last time we made any sector changes so we still think that in this context of neutral tactical view on the overall market, where we are, we think we want to be somewhat neutral from a sector perspective unless you're really trading oriented >> got to bring up trade because there is still, i think, an open question mark about what gets done at g-20, whether there is even a sideline meeting, how much optimism the market can place on this. i want to bring up a quote from the now late great marty
feldstein, harvard university, frequent guest, one of his final xhen tarie commentaries, on the trade war, spelling out the issue, the chinese used the stolen technology to compete with u.s. firms in china and in other parts of the world the u.s. trade representative according to feldstein recently estimated that this technology theft is costing the u.s. economy 225 to $600 billion per year and the fbi asserted the chinese cybertheft of american technology is the most severe threat to u.s. national security and it is a classic feldstein, put it in simple terms, this is about theft and economic growth. he said it is not about the trade deficit. and the bottom line is, you know, reading something like that, watching the administration's approach, how hopeful can investors be of the deal >> i think that, you know, the cloud of sort of, you know, u.s.
trade policies is going to hang over the u.s. economy and the u.s. markets for quite some time to come. it is just a question of really, you know, can we define the parameters which basically define what the escalation is, so corporates can actually adjust and get on with the business of, you know, business. >> not taking earnings estimates down in the meantime. >> not yet i think there is definitely downside risks and i would argue, you know, the risk of -- the possibility, basically, for reaching some sort of understanding, so that as i said, you know, corporate can absorb the shock and, you know, move on, is still certainly there. >> liz ann and binky, we'll leave it there. >> back to carl at the code conference over to you. >> great discussion. i'm here with jon fortt at the phoenician in scottsdale, arizona. day one was fascinating and got more interesting last night. we talked about facebook's chat
here, twitter, and yesterday netflix, cindy holland, vp of original content, with an echo of a point that netflix has made for a long time, if you're an artist, if you're a creator, come to us and you can have all the freedom you want, make episodes to your heart's content, and yesterday expanded on that point by saying, also applies to artists internationally. take a listen. >> we want to entertain the world, so we need to have a lot of artists come join us. from the very beginning, we wanted to create an environment that was freeing and not stifling part of our own corporate culture, freedom and responsibility and you hire smart people, you give them the right support and you let them do their work. and we have extended that to the folks that we work with and the creative side. to really good results, you know also, i think a lot of the industry operates in a culture of fear and we don't so we're not afraid to try a bunch of different things. some of which may work, some of
which may not. and it is part of our culture to embrace mistakes and failure and learn something from it, you know, corporately, and we want to encourage our artists to really reach for that thing they really have been dying to do >> got to love shade between streaming services, jon. >> absolutely. actress natasha leon was great too, recognize her from "orange is the new black" and "russian dolls," new project on netflix what i thought was most interesting about that session, i asked natasha, does she want more data from netflix, from these services about exactly what people like, what they don't like, where they stop watching, where they go back and view again and she was saying, well, maybe. if i can decide when i get the data, how much i get there is an interesting relationship going on with the services and data. that connects to some of what mary meeker was also saying yesterday, she was saying that
overall global internet user growth has topped off. going a bit, but not like it was. now the game is more the players out with the best data are trying to use that to gain share. and i started to question with netflix yesterday, just how much they're using that data and the granular decision-making because they seem to be saying, no, we're really just going with the artists and with gout so much ad making databased decisions on what to cancel, but everybody does that. >> that ties into google looker and sales force tableau. i was struck by the same thing, the list of things that are not shrinking, but slowing from meeker, internet user growth, internet market cap. e-commerce growth, believe it or not, and internet ad spend, all of those things, not again, after years of growth, smaller growth rates and that's why people are looking for ways to improve the efficiency of some of these things. >> goes to amazon story of
pushing on one day delivery, trying to get people to buy more tork re , to rely more on the service. something else that i found interesting, ed williams was on, talking mostly about media this is a founder of twitter a lot of what he was highlighting about media is how it is different from twitter, not trying to be a global platform, strict content moderation on who can be a part of it, who is not part of it, how they kick people off there is this sort of defensiveness of winners, and even among some of the people who, like, ed who have won in the past, maybe a shift toward a different tack of what is important. >> interesting yesterday, we had all these big tech names present, but i pointed out in the nine how interesting it is that two of the highlights yesterday were the ceos of an airline and delta's ed bastian, and goldman's david solomon, we always say software is eating the world, the old line from
andreissen it has to stop at code >> yeah. the ceo of goldman giving advice to tech on how to handle hard times. doesn't that say it all. he's also partnering with apple as you talked about. >> right interesting. day two, of course, we'll continue to cover it as the sessions go on for now, though, back to you. >> looking forward to it good stuff out there, carl, thank you. when we come back, 85%, that's the amount of the nation's stocks that are actually owned by american millionaires 85%. how are they feeling about the outlook for stocks we'll tell you next. and getting a check on the major averages at this hour, we really are little changed here. dow moved south a little bit, down 24 points that the hour the nasdaq is getting hit the hardest. semisunder a lot of pressure, leading groups like that, helping bring down technology. "squawk on the street" will be rit ckghba ♪ ♪♪
i know how to those guys in here. let's pause the internet on their devices. wohhh? huhhhh? [ grumbling ] all: sausages! mmm, mmmm. bon appetite. make time for what matters. pause your wifi with xfinity xfi and see the secret life of pets 2 in theaters. america's millionaires own more than 85% of the nation's stocks robert frank joins us now with more >> america's millionaires are more optimistic about the economy, stocks and their own investments. but their outlooks are almost entirely based on their political party. cnbc millionaire survey found they expect the economy to be stronger this year than last 23% say it will be weaker. two-thirds of republicans see it getting stronger, only 16% of
democrats agree. millionaires see the s&p up about 5% to 10% this year. republicans see it up double digits, while far more democrats see a market decline this year politics even shapes how millionaires see their own financial prospects and the stocks they're actually buying more than half of republicans see their household assets higher this year compared to about 40% of democrats when it comes tostocks, they are moving broadly away from tech and into health care and communications republicans were far more likely to invest in tech and financials, seeing a lot more growth there democrats more defensive leaning toward consumer staples and energy and cash. asked about the biggest risk to the economy, half the democrats say it is government dysfunction. republicans were more likely to site immigration, higher interest rates and the national debt so it is interesting that politics much more than wealth levels shaping how the wealthy view the economy stocks and even the stocks
they're buying guys, back to you. >> i wonder if it suggests anything about which way they vote, robert >> we have a later opinion survey about that is well. we looked at millionaires, biden versus trump, they picked biden. there is only one other candidate other than biden that beats trump. you'll have to read that story online to find out who it is >> maybe come back to the closing bell and tell us that. >> would love to. >> i have a guess. >> thank you speaking of investor sentime sentiment, stocks lower this morning, mortgage rates dropping to the lowest level in almost two years leading to a massive surge in mortgage applications ron, good morning to you >> good morning. >> i wanted to start about the level of trading that we have seen in this quarter we had some comments from earlier in the week that suggests the volatility we have seen in q2 is bad volatility
when it comes to trading revenues what have you seen >> i think -- i do think trading revenues are, you know, compared to first quarter are soft. and that volatility comment, i would agree with generally >> what has been the theme across different asset classes throughout the quarter has it picked up toward the end or just been generally weak? >> the theme, let me talk a little bit, i'm in boston for our cross sector conference. we have 300 companies here, a thousand investors, and it has been very interesting. i with say people are generally optimistic across most of our sectors. but the trade situation weighs on a lot of minds. people don't have playbooks for this stuff this is new, you know, new dynamics for business leaders. and i would say the optimism is tamped down by all of the strategies around hiow you deal with trade. >> do you think the investor sentiment is focused on trade than other macro factors like
what the fed is expected to do >> i think certainly it depends on sector. there is a lot of focus in the general market about what the fed is going to do the market clearly wants a rate cut. i think the fed is going to wait to see what comes out of g-20, certainly the shock of mexico tariffs got the market pretty skiddish but, you know, a lot of focus is going to be on the fed and what they do. >> so where are you, ron, on growth, for the rest of the year, given some of these big question marks like what happens at g-20 on trade and with the fed. generally i think of you as kind of an optimistic guy, are you still? >> you know, i -- i am optimistic because the world comes to an end what are we going to do? but really i think that i see 2019, i don't see a recession in 2019 certainly not that but, you know, the thing that is
going on with trade, and things like global manufacturing, look at what happened with steel prices they have collapsed and i think that global growth in general is slowing. the economy is slowing and a lot of it has to do with the uncertainty caused by trade. on the other hand, you know, many would argue that these trade wars have to occur for the long-term health of the u.s. economy. i'm generally optimistic. >> where do you see the level of cash and clients, portfolios in the moment, relative to history? >> relative to history, cash is really at an all time low. you know, we generally would see in terms of total portfolios cash would be 9% to 10%, it is around 5%. which is really historically low, which speaks to the fact that investors are, you know, fully invested let the consumers also pretty
smart, look at all the mortgage refinancings going on. rates drop you're seeing massive refinancing of mortgages going on now i think people are informed and they react to market conditions. >> so ultimately, ron, what do you think the fed is going to do this year? >> that's a great question i don't think the fed will do anything in june we have got a few things that are going to happen over the summer i think they want to see the data i think ppi will be soft, inflation soft my guess is that everything being equal today, that the fed would cut in september now, a lot of things can change between now and september, but everything being equal, i think the odds of a rate cut probably are, you know, above, you know, more than a flip of a coin in my opinion. >> just talking about the industry and which you operate, do you see the opportunity for
some m&a or disruption, market share, gains given, some of the deals we have seen in the space and the broader dynamics with a little bit lower regulatory hurdles? >> you know, i think financial services, certainly the banking industry is -- you're going to see more consolidation in the banking industry a lot of that is driven by regulatory changes and the thresholds of which you became -- so we will see that. i also believe that technology is going to be a disrupter in financial services we view it as an opportunity, we're making big investments on technology but the way people access financial services, frankly the way people access their bank is going to so change in the next not decade, in the next few years, but i think it is going to be startling to a lot of people i think that there is an opportunity for those that invest, and you need to serve as the -- you got to serve your clients today in a, you know, with technology. no question.
>> ron, thank you very much for joining us. >> thank you very much >> some sad news to get to this morning. renowned economist regular guest and friend of cnbc martin feldstein died yesterday, age 79, after losing a battle with cancer he had been a professor of economics at harvard, all the way back to 1969 he was the chairman of the white house council economic advisers from '82 to '84 under reagan later serving as economic adviser under presidents george w. bush and barack obama he was also the president of the national bureau of economic research from 1977 to '82 and again from 1984 to 2008. he's survived by his wife, two daughters and grandkids. last time on the show, he brought his granddaughter to the exchange martin feldstein, we will miss and we are very sad to say that he died at 79. we'll be right back. >> he looked well last time he came here. very sad news indeed may he rest in peace
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welcome back to "squawk on the street." time for our etf spotlight, taking a look at semiconductors etf, smh, down more than 1.5% and on track for the worst day of the month after posting four straight days of gains semis coming off the worst monthly performance since 2008, down more than 15% in may. the group led to the downside by names like lamb research, applied materials and micron broader markets slipping a little bit as well nasdaq in particular the tech heavy nasdaq down half of 1%. >> cramer said he disagrees with the lam research worries, says there is still demand, having an impact, though, leading the group lower. over to sue herera for a cnbc news update at this hour good morning. >> good morning, sara, good morning, everybody here's what's happening at this hour police firing tear gas and rubber bullets at tens of thousands of protesters in hong kong the demonstrations erupted over an extradition bill which would allow people to be transported to mainland china for trials
donald trump jr. telling reporters he has, quote, nothing to correct, as he arrived on capitol hill for a second closed door interview with the senate intelligence committee lawmakers want to revisit what trump jr. knew about the president's former lawyer michael cohen's moscow dealings. ford is recalling certain explorers due to a suspension issue. the automaker reports that it affects certain 2011 to 2017 models ford says the action will cost about $180 million and it will be reflected in its second quarter earnings results a new report finds that electric scooter injuries are soaring. rutgers university researchers find that they have tripled to almost 7,000 between 2008 and 2017 by analyzing hospital data. nearly two-thirds of those injured were not wearing helmets. you're up to date, that's the news update this hour. carl, over to you in beautiful, warm, gorgeous scottsdale. >> emphasis on the warm, sue
thank you very much. when we come back, the ceo of delta ed bastian, we'll talk to him, weighing in on the future of flight technology, growth, boeing 737 max fleet and a lot more plus, we hit the very hot mobility lot here at code with kara swisher we'll check out some of the fast and not so fast modes of transportation options being rolled out across the country. more on that when we're back from the code conference in scottsdale is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together.
early pricing action maybe that's what investors are willing to pay up for triple digit top line growth. we'll see how it opens, the ceo will be on "squawk alley." back over to you, carl, at code conference, in scottsdale. >> all right, sara, thank you very much. we are here at scottsdale's code conference, talk to dedelta's ed bastian trying to change the nature of travel through technology testing rfid so you can track your bags, testing free wi-fi on domestic flights, he went to ces in january and asked him why he came to code this week >> an exciting time for us, carl we're reinventing a 94-year-old company and we have done all the hard work, balance sheet fixed, generatinging tremendous amount of customer goodwill and satisfaction, financially we're in sound position. and it is really a renaissance,
investing heavily in technology, aircraft, airports, digital, remaking the entire customer experience and it is an exciting time to be. >> so let's take one of the one by one explain to people who might not have flown through atlanta what terminal f is about. >> okay. terminal f is our latest international concourse, we put it up a number of years ago and just converted it to a full biometrics facility. you get out of the car, you never have to show your papers we use facial recognition on the way in, you can check in, you can check your bags, all through facial go through security, go through the checkpoint, board the plane, and go up to your international destination and when you return, you have the same opportunities. >> how easy is that, how easy is it going to be to scale to have every customer's experience be like that? >> we're already rolling it out. we have in detroit already and pretty soon we'll have it throughout most of our international facilities the next big thing for us is the domestic tsa and we're working with tsa on checkpoint
anything we can do to expedite it is not only more effective, it is also more efficient. >> does it incorporate clear or something beyond that? >> it is beyond clear. clear we have already with precheck this is a separate technology that we have worked together with cbp on. >> interesting timeline on nationwide domestic? >> too early to call domestic, still rolling out international. i think they'll be -- >> sounds like it might be three to five year journey on this. >> hard to put a timeline on it. it is the government needs to own the technology, they own the actual asset we operate with them >> any pitfalls we need to be aware of going into something like that, a chapter like that >> i think everyone is, you know, sensitive about facial certainly, you know, with privacy being top of the list for technology companies, wide scale, facial recognition falls into that. facial for this with the cvp, we never actually retained that,
that image that's all through the government, the government has facial recognition already because when you go through a normal passport screening, they're matching against the facial figure. >> you're using rfid to track bags >> we are. >> you're testing free wi-fi. >> yeah. >> are you -- are you trying to elevate your customer's experience beyond the industries and then in turn garner a valuation that is not an industry valuation >> we look at our company as more than just a transportation company. we're a consumer company we carry 200 million customers this year. and as part of that, we're bringing the new consumer technologies, keeping our customers connectedwherever they are in the world. p wi-fi has been a frustration for customers, with poor speeds and inconsistent quality or lack of availability we're committed to getting to a point where wi-fi is as accessible and capable on our planes as it is in your living rooms and at the same price
point, which is free. >> i keep thinking back when you went vertical on fuel, to some degree is this an analog of that, trying to go more vertical on tech >> it is leveraging our consumers where we want to go, taking advantage of technology, scale matters in these large businesses, with 200 million customers. for me, we talk about digital, it is personal relationships that we build with our consumers. you get 200 million customers, hard to have a personal relationship outside of technology, so what is allowing us to be able to better understand our consumers needs, be able to better serve them, identify what we can provide to help them through their journey, and it is one of these things that the more you go, the more you see the opportunity to so, yeah, and since we're in a leadership position in the industry, i think it is natural that delta is taking a lead in a lot of the technology. >> what is your guidance on rnd capex? >> we're investing $4.5 billion a year, between planes, the
technologies, the airport environment, and i expect that run rate to continue for the next several years >> percentage of sales or revenue. >> 10%. >> 10%, wow, the highest it's ever been? >> highest it's ever been. we're going to generate about 10% of our revenues in free cash flow this year >> the march quarter was good. net cost down year on year, record revenue how does that set you up for summer >> the revenues look good for the summer this is june, we're getting close to the summer. i think we crossed one of our all time record days, we have 700,000 customers we boarded it is a strong, strong summer for us we're looking at top line growth of about 8%, been consistent all year long. >> on a macro level, we have seen some are arguing softening in manufacturing and employment, we have seen consumption -- home prices may be rising at a slower level. will there be a hit to consumption and in turn a hit to
demand on travel see that anywhere down the line? >> we don't see it in our numbers, we're growing 8%, close to $50 billion company, so when you're growing your top line 8% at that level, it is significant. a lot of our strength is in the domestic market, international we certainly are seeing some caution signs. the pacific has had some caution lights, with respect to yield. transatlantic as well, latin is doing very well, rebounded well over the last year or so international we're taking a more cautious view for the coming, you know, the summer will be great. the winter season looking ahead, domestically we're in good shape. corporate demand up to 10%. >> the requisite boeing question, doesn't apply to you like it does to some others. you had good kind words to say about muilenburg in recent weeks. >> i don't think they have given a return to service picture. i know that the airlines keeps sliding the return dates
i think it is probably going to be longer than anyone would like it to be not only with respect to the faa and the certification, issues on the airplane, i think consumer confidence in the product is going to take a while to come back i think boeing as well as the airlines will certainly be cautious as they bring that aircraft back to market. that's what we would be. >> as a marketer, how would you best convince a consumer you said you would get on it. >> yes. >> how would you convince someone else to do so? >> i think you look to boeing's sister it is a great company, innovation creates magic for us. it is our life blood to what we do and they are -- all hands on deck to getting this out i don't think this is a marketing issue. i think this is a time issue it is going to take time for people to see the confidence that the pilots -- i think the employees of the airlines are going to need to regain as well. whether it is training, whether it is time, there will be a long induction phase here
and i don't think anyone will want to be overly aggressive. >> pretty fascinating candor from bastian, talking about the max, guys. 60% of their fleet is boeing they fly 200 737s, but not the max. they spent months studying the max and ended up not ordering it they talked about this last night at code. never got to the point where they had a discussion on mcas, the technology in question with the max, guys. but as he said last night, what happened with the max is somewhat unthinkable, and that as an industry, we have been traumatized. so interesting to hear him talk about return to service, perhaps, taking longer than we thought. >> yeah. full throated support, long-term, for boeing, which was interesting to see i was fascinated by the point of the free wi-fi, does that elevate them as far as a premium airline and whether the facial recognition software coming in
there, whether that's going to play into that or not. i don't know how that will settle long-term, on the surface it looks good, but it is more of an airport factor than airline factor and i guess won't affect the return flights for anyone that does benefit from it on their outgoing flight. >> yeah. it is a good point fares have come down so much on a real basis over the past 20 years, it is much cheaper to fly versus your income than it was when bastian was a young man last night he said i didn't get on a plane until i was 25. used to be a real luxury so because of that, it is crowded, traveling is a pain because of that, will consumers be willing to share a lit more of their personal information to make the experience a little more decent? whether or not that's different than other privacy concerns is going to be something that will be interesting to watch. >> carl, i'm fixated on your pin. squinting to try to -- is that a kara swisher pin >> yeah, i don't know. can you get tight on the pin
i'm not sure kara swisher is like a god over here as you know and so one of the booths, they're passing out these pins with just kara's face and trademark sunglasses i can bring you back some if you want >> please do >> not only can you bring some back, please, maybe you could sport some of the shades as well and go whole hearted >> yes, so dark you can't see the eyes only kara can pull that off. >> we look forward to a lot more from you, carl pin or no pin. out there in hot, sunny scottsdale with all the big tech execs, thank you. results from the business round table, outlook survey coming out now let's get to kayla tausche in washington for the latest read >> the outlook from the corner office dimmed this quarter with ceos of major companies less
optimistic about hiring plans, capital investments and sales for the next six months. down from the first quarter. expectations for gdp remained in tact 127 ceos completed this survey in the two weeks that ended monday, june 3rd called a turbulent few weeks for u.s. trade relations by the business round table ceo josh bolten who said uncertainty over trade policy is making it more difficult for companies to invest and operate confidently team members have overwhelmingly divorced their support for free trade and resolving some outstanding disputes president trump said brt's peer is only focused on the interests of its members, not the country. we could see a broader economic impact if this outlook plays out in things like hiring. >> just wondering if it coincides with that weaker jobs report that we got last month. a lot of questions of whether
that was driven by trade uncertainty or tight labor market and low supply of workers. >> i think the differentiation is the jobs report is backward looking, this survey is forward looking. this is how executives feel about the next six months and would be interesting to see this survey taken again with that mexico deal actually notched to see if that inin fa fact was th cloud hanging over this. >> thank you. >> small business sentiment yesterday was positive this is bigger companies tha tend to be more internationally exposed versus smaller companies, more u.s. focused. >> and more political. >> and more little. as we head to break, a quick check on shares of united technologies and raytheon. b bill ackman says he's opposed to the -- pershing square has a 0.7% stake in utx. new york post is reporting that dan lobe is also opposed to the deal united technology getting a
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the market has been bouncing around between gains and losses all morning long the dow jones industrial average little changed at this hour. s&p 500 also pretty much flat, down less than two points. utilities and staples are the best-performing sectors. a little bit defensive with treasury yields lower. before we go to break, let's look at what's coming up next on squawk alley >> see you in a bet, i've got this jet suit on ♪
it's a fairly stable day just about half of the sectors in the s&p 500 are trade being in negative territory. and energy stocks, one the key groups in this market, dragging things a little bit lower today. this as oil prices slide after government data showed another bigger-than-expected rise in u.s. crude stockpiles over the course of last week. among the names leading it to the downside, noble, apache, devin energy down 2% or more down at this stage watch energy and oil prices. i'll send it back to you at the new york stock exchange. wilfred? >> thank you very much for that. and sarah, we've got a big show ahead on "closing bell." key things to watch for? >> i know you actually care, on the big show, virginia senator mark werner will be joining us with his new push to protect workers in the gig economies and way out front on regulating big tech we'll see if he sides with
elizabeth warren, her calls for a break-up and then after the bell today, some exciting earnings results, lululemon is on track, the stock up 40% this is what i'm going to be covering from the desk and i told you it's all about expectations, which are high but the company has delivered just industry-leading comps quarter after quarter. >> the stock is up 40% year to date >> and dan ives, bull turned bear information so lots to come on "closing bell." >> wilfred and i will see you then "squawk alley" is up next. carl, what's coming snup >> a lot to come from the recode conference in arizona. we'll hear what ceo david solomon has to say, omfr goldman sachs. "squawk alley" is next
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