Joins us from the imf fall meeting in washington. Also kara swisher. Kara, good morning to you. Hi, how are you doing good. A lot to get to. Our top story and the growing backlash against big tech. Amazon is suspending roy price on allegations of mismanagement, Sexual Harassment, and allegations of his close relationship with Harvey Weinstein as rose mcgowan called out the amazon executive, saying price acquisitioned her in 2014. Heres just a sampling jeff bezos, i told the head of your studio that Harvey Weinstein raped me over and over i said it, he said it hadnt been proven, i said i was the proof. I was ignored, deal was done amazon won a dirty oscar jeff bezos, im calling on you to stop funding rapists, alleged pedos and sexual harassers i love amazon, but there is rot in hollywood New York Times saying tech giants once seen as saviors, now viewed as threats. Theres, obviously, a lot to unpack here, kara, but lets zero in on amazon to start with. How disruptive is this well, you know, they move pretty quickly and suspended roy price. They had already been hed already been under investigation and seemingly cleared, and then the woman who made these allegations went much more public with the specifics of it and rose mcgowan tweeted about telling this executive roy price about what happened to her, and, of course, amazon struck a deal with the weinstein ompanies, s it just isnt, you know, im not saying its not a good look, but all coalesced around one place, so the pressure was on on amazon to act and suspend and remove him. Impact on the Product Offering amazon is trying to put together i think part of it has to do with that. There was quite a good wall street journal story about how it wasnt getting traction, so part of it is performance, part is attention this is getting, so i think it all coalesced around what happened yesterday, especially after rose mcgowan made those tweets and the person bothered by roy price spoke up very forcefully and in great detail about what happened to her, which was appalling, of course and, kara, people, obviously, women speaking up in many industries, right, so sort it out maybe as a hollywood story and then its the parts of amazon that touch hollywood, but its certainly broader than that im taking from what youre saying that theres no indication from your end that theres something culturally at amazon that needs to really be looked into our fixed here well, i think people the next question is what kind of investigation did they do around this, why didnt they act sooner, why wasnt it under pressure i think its a combination of things happening here, but once this thing started rolling, thats the really big question that will be interesting, will people be begin to revisit stories, all the press begin to revisit some stories already that had happened in tech that were moved along if people are willing to speak out i think one of the issues we have is in many cases weve been working on stories and the people involved are not willing to talk about it and i think it gains a certain not just credence, because i believe them i believe these people its more that these are voices of great detail, and i think if you read some of the things that the person who had been bothered by roy price talked about, it becomes rather problematic for a company to support that in any way. Kara, are we making progress here as a society, or are we playing sort of this game of Sexual Harassment whack a mole we were talking about many of these same issues or similar issues anyway in Silicon Valley and the Technology Industry over the past few weeks and months. Now hollywood, which has been a hot bed of it for a long time, but im not sure i get the sense that theres this overall narrative where changes that are in the works to prevent this from continuing to happen. You know, i dont know. With a bunch of people last night, im in seattle right now and they are talking about it. Its, obviously, moving, the contagion is moving in as it should, by the way and i think it shouldnt take these women having to just go on the record to be believed. These companies should be doing these investigations and coming to determinations of their own and not because of public pressure do it, but because its the right thing, because it creates a hostile workplace, because it creates a situation at work that shouldnt be tolerated, the kind of behavior that went on im not sure what it will take to change except more people speaking out and making it clear this is not just Harvey Weinstein is a monster, lets move on. Its that its a systemic failure on the part of companies to deal with what seems to be you cant believe this continues, they allow thisto continue to happen and i think, you know, this roy price thing is a very good example of that. Amazon did an investigation, he was not suspended, and then the person who was bothered, who was a producer on a very popular show on amazon, spoke out very in a lot of detail and then rose mcgowan made noise so i think it shouldnt have to be women making noise to allow this to happen its because good investigations should be done and good determinations should be made to fix these problems much earlier. And to believe most of these stories. Like, you know, i think the question is, its always been why do these women come forward, why didnt they take longer, because its incredibly hard to do so. Now they are, so well see what happens. Yeah. And the impact, of course, not just on hollywood, but on technology striking, its not just amazon twitter, kara, as you know, is also under pressure with activists, celebrities, journalists participating in this women boycott twitter event. Our Julia Boorstin is going to help us set that up. Good morning good morning to you, carl its one of the trending hash tags in the u. S. After rose mcgowan announced her account was temporarily suspended following tweets supporting women alleging harassment by Harvey Weinstein and criticizing men denying knowledge. One woman driving this boycott, Software Engineer kelly ellis, who happens to be in a class action suit against google, whos tweeted alleging Sexual Harassment by her superiors at google there are a number of hollywood names that have come out in support of the boycott, including chrissy teigen, john cusack, debra messing, jessica chastain, and mark ruffalo, among others twitter, who said mcgowan was suspended for tweeting a screenshot with personal information, someones phone number, did say, we stand with the brave women and men who use twitter to share their stories. Now, after they said that statement, momentum grew for the boycott and Ceo Jack Dorsey tweeted out we need to be more transparent in our actions in order to earn trust and do a better job showing we are not selectively applying rules its worth noting this call for a boycott comes as twitters growth has been hurting. Its monthly active user numbers were flat this year, stagnating, while instagram explodes twitter reports its earnings in less than two weeks. Well see if the Company Reveals anything then about the impact of this scandal. Back over to you thank you very much for that, Julia Boorstin kara, i guess first question is, do you agree with jack, and how do they start to build in some consistency on their standards you know, carl, for months ive been talking about the idea of responsibility here, and the responsibility over your platforms. I applaud hes saying they should be transparent, but i think ive heard this story before twitter always comes out about being more transparent i wish theyd put systems and rules into place that work theyve been justly criticized for issues around bullying the application of these rules seems happen hazard to me. Ive seen lots of phone numbers on twitter, not all taken down they should have been paying a lot more attention with human editors to understand who they were taking down and how it should be taken down they could have taken down the single tweet and discussed it with rose mcgowan. Again, this only creates this confusion only creates more confusion, and people have a lack of trust for the platform and so all these platforms, whether its facebook or twitter or google, have got to think very hard, as ive said, about their responsibility they are not benign social platforms, that social media can be and is being weaponized and they have to do something about it and spend an enormous amount of time on fixing it and, again, you know ive been railing on this for months and months, but now the price is they have to pay the price for not doing this kara, is it possible that controversy is actually toxic for twitter as a business . Because on the one hand, you know, people get on their case for not being good enough at policing abuse on the other hand, you know, they take some action when somebody posts a phone number, they get slammed for that. We never talk about instagram, very rarely do we talk about a huge controversy on instagram. Look how its growing. Yeah, because i get that, instagram is a more benign play. You know that, instagram is the safe, quiet place in a lot of ways, but the fact of the matter is, look, theyve built these businesses on being the center of the world of discussion when you do that, you take the responsibility of what that means. Its sometimes not very pretty discussions, and so, i mean, unfortunately, in a lot of ways as you and i have discussed, twitter has become somewhat of a cesspool in terms of how people treat each other and behave, and they do have control over the platform in order to clean it up and so does everybody. And so i think to say they are, you know, oh, well, its so hard, is really not when they are making lots of money, not twitter necessarily, but all of them are, and benefiting greatly. To say that its really hard is not something i want to hear, and i know i sound like an annoying mother about this, but theyve got to clean themselves up these are wealthy people, big businesses they, you know, pretending they are not responsible is exhausting on some level to me and i think a lot of other people kara, knowing how much celebrities draw engagement, drive engagement at twitter, do boycotts like this have more impact at this company than it might otherwise would . I dont know about boycotts i dont know look, if people want to boycott, i applaud efforts of all boycotts i like boycotts, i think they are interesting. I think the issue is, i dont know who could bring pressure except they are not creating an environment people want to engage with each other twitter is a great platform, but unfortunately the focus has been on the controversies and people saying really awful and vile things to each other so i dont think it helps that theres a womans boycott on twitter. Its not great for the brand, doesnt help amazon, one of their executives got suspended for saying awful things to a woman. You know, it doesnt help facebook that it looks like the russians used and abused their system this is not Good Business for any of them. And so, again, like i said, it is what it is and they built what theyve built and now they have to control what theyve built, essentially kara, always good to get your take on it appreciate your time thanks a lot. Enjoy seattle kara swisher joining us this weekend. John, over to you. All right, thanks, carl for all the social and political pressure facing big tech in recent weeks, not much in the way of selling pressure on the stocks twitter coming off its best day since june, snap also trading near threemonth highs the nasdaq hitting alltime highs today. Lets bring in citi senior internet analyst mark may to dig into some of this. Mark, how much of this is a headline issue that doesnt necessarily get to the core of these businesses sure, it looks bad for the moment, but overall, theres been growth at these companies is that what you focus on more than the headlines yeah, well, look, let me put myself in the head of investors as opposed to, you know, the victims in these particular issues right now and i think, you know, there are a couple of reasons why the stocks have continued to work, despite these headlines, and what are real issues i think one is that investors have seen this before. Policing the internet is not easy business. But its also not new. These companies, you know, google has been attempting to police its search business for many, many years started out as a fairly open search platform, but quickly advertisers and other nefarious people tempted to game the system ten years ago, people involved in illegal activities like selling, you know, drugs online and and other, you know, quite illegal nefarious things are being advertised on google you know, google addressed those issues quickly, and i think at the end of the day it made google stronger. You know, i think that a lot of the changes that these companies are making dont necessarily get the coverage that the issues that created them do, but these companies do address them. I think most investors have seen this before and theyve seen that these strong, you know, skilled players are able to grow through them and address them. So whats the real risk here . Is it lost of Consumer Trust that eventually erodes the value of these platforms, or is it government regulation, which could limit the Business Opportunity . Id be more concerned about the former, but, again, i think at the end of the day these companies, google in previous history and facebook even today are taking very quick moves to address the issues also i guess my question would be what is the alternative you know, for people that have become accustomed to interacting with friends and family and really their online persona is very much, you know, facebook. Where exactly are they going to go as an alternative so i think the bigger risk is probably the former, but im skeptical to really see an impact, yeah got you i also want your take on this facebook grub hub news today not just grub hub, but they are integrating a lot of Food Ordering Services into what you can do on facebook sometimes this seems to have an impact, sometimes it doesnt facebook integrating netflix did nothing, even though both of those have been powerful platforms and interesting services how much does this matter . Couple of observations. Facebook is working with partners to enable this. Right now their initial partner set does not include grubhub, but grubhub in the last year has been signing a lot of partnerships like this yelp, tripadviser, and google. I think the other thing to possibly say, 90 of all food orders, delivery orders are still made using a telephone and paper menu in your drawer, so i think that facebook enabling the ability of online ordering is very positive for this category as a whole, and i think that, you know, grubhub is a company that very much, you know, is benefiting from increasing share of delivery and takeout orders being done online. All right, thank you, mark may from citi. The list of Companies Facebook working with said to include grubhub delivery, door dash, slice, olo well see how long that list goes mark may from citi, thanks for joining us when we come back, a changing media landscape worrying investors as some of the Biggest Media Companies are gone then an early investor in spotify talks about the music streaming industry and spotifys role in it then the feds next move and todays market records when squawk alley continues in a moment post 9 is sponsored by Fidelity Investments innovative ideas for serious investors. When it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Fidelity. Something we all think about as we head into retirement. Its why Brighthouse Financial is committed to help protect what youve earned and ensure it lasts. Introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. While maintaining a level of protection in down markets. So you can head into retirement with confidence. Talk with your advisor about shield annuities from Brighthouse Financial established by metlife. Watching media stock this is morning, a few notable stories, including an Investment Group calling on 21st century fox to overview the board disney says it will cut 200 jobs at abc and some of the Cable Networks no cuts at espn, reuters says. Some of the stocks are getting nibbled at today, mike yeah, little bit of tepid bounces at the end of a week thats been tough for these stocks its sort of this build up it seems to me. Whenever you have investors prime to view a sub sector as structurally challenged, the accumulation of headlines, or people say nfl ratings arent big of a deal, but they gather up, i think you have people very defensively oriented towards the group to the sense they look cheap. Maybe getting there. Although we did have an analyst today keeping his 85 target by the way, some minimal headlines, speaking of football, thursday night ratings from last nights game up 7 people starting to say, well, maybe there are some things. When you have a decent matchup. The key for nfl is local ratings, inmarket ratings have held up well its the National Games like thursday night out of market games people have not always commanded a great audience see it if holds as we head to break, watching shares of netflix this morning, briefly breaking above 200 a share squawk alley is back after this not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. So they called the fire, yodepartment for us. Clearly, my first truck was on the scene within five minutes. I am grateful we all made it out safely. To protect what you love, call 1800adtcares whoo woman class, lets turn to page 136, recessive traits skip generations. molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. music streaming and social media are continuing to completely redefine the Music Industry spotify expected to be public in the not too distant future reportedly valued around 16 billion. Earlier this week i spoke with early spotify investor, music manager, and venture capitalist troy carter for my fort knox podcast. I asked him how spotify and other streamers and the speed of distribution through social is changing his industry. Heres what he told me i think what weve seen over the last, you know, five, ten years, is this sort of demock a ratization of process and distribution and i think its good for creativity, i think its good for artists, i also think its good for consumers, you know, because you have more choices, and also just as music lovers, it takes us out of that sort of segmented and segregated types of music and kind of opens it up for, you know, whether you like hip hop, rock, r b, country, within the sort of new ecosystem of play lists, everything is sort of there for you. You managed lady gaga i believe somebody brought her into your office before she had her first album. She had most of the songs maybe together on it, had her look together, but before the first album, through her rise. Also pretty recently you kind of helped Meghan Trainor do Meghan Trainor 2. 0. How did the process change from lady gaga to Meghan Trainor based on how music and the way music is distributed changed i think we see a rapid acceleration in terms of reach with lady gaga, i think the difference was, you know, because we couldnt get her stuff played on the radio, we were using new platforms like youtube, facebook, twitter to kind of reach audiences and bypassing gatekeepers. It took us probably eight months to a year to penetrate the world, you know, where ten years prior to that it would have taken us three or four years to penetrate the world, and with Meghan Trainor, i think we penetrated the world within two weeks. And it continues to change. Its interesting he said he had trouble getting anybody to play lady gaga at first Meghan Trainor similarly kind of redefining what we expect from artists. Guys fascinating look at the music business, john, and a nice departure from the conversation we normally have podcast in just a couple of weeks, youtube, if you get a billion views, as he has seen his artists do, not that it brings in a lot of money, but the exposure that it brings, the way youre able to gather people to concerts and events and make profit after that, thats the real key to making money in the business these days, carl. Also interesting to see how this is going to be viewed, john you say about 16, or whatever, under 20 billion valuation, its about 20 , more than that of netflix, which seems to me the obvious direct comp, but without originals per se and with a more questionable revenue stream behind it definitely. You know, netflix has become this brand into itself that big Media Companies have not been able to challenge in the same way, but, you know, along with spotify, youve got apple, youve got google, youve got amazon, all the others which dont seem as far behind with the builtin audiences and credit cards on file as it seems with netflix so well have to see how that company goes out all right, john, cant wait for more fortt knox, of course, 2 00 p. M. In the meantime, europes going to close in about 75 seconds. Lets get to Morgan Brennan back at hq. Lets take a trip abroad, shall we european stocks on track to finish todays session at a fourmonth high. The german dax hitting a fresh alltime intraday high it could close above 13,000 for the first time ever. Were just right there on the edge the index is up 13 so far this year its handedly outperforming the europes stocks 600. Germanys buyer helping to lift the dax, thats in a 7 billion deal, you can see the move right there for bayer. The transaction will hope to convince regulators to approve its acquisition of monsanto, which you can see is up about 2 here in the u. S. For trading here today mining stocks are also among todays big winners. This is due in part than the stronger than expected chinese import and export data the company is importing more iron ore from other places that is up about 7 . Moving on to current sis, the euro pulling back from highs of the day, though it is still stronger against the dollar after spiking on release of this mornings u. S. Consumer inflation data hovering around 118 right now. European bond yields spent most of the day lower on report ecb policy makers have agreed to extend their Bond Buying Program into next year as for the political turmoil in spain, the watch is on to see if the catalan president will meet the prime ministers thursday deadline for declaring independence catalonia risks losing its autonomy if it decides to secede from spain, so certainly something to keep watching as we head into another week carl thank you very much for that. Lets get to sue herera with a news update. Good morning, sue. Good morning, carl. Good morning, everyone heres whats happening at this hour Susan Collins says she is staying out of the governors race, because she thinks she can do more good for the people of maine by staying in washington she made the announcement at a local Chamber Breakfast before a friendly crowd twoterm republican governor paul la page cannot run again because of term limits the wildfires in california continue to burn out of control. These pictures are from the city of calistoga in napa county. 5,000 residents there have been ordered to leave that city the death toll has risen to 31 in the state, with nearly 300 square miles scorched. U. S. Mens soccer coach bruce arena has resigned this after his team failed to qualify for the world cup for the first time in decades by losing to lightly regarded trinidad and tobago earlier this week arena called the loss a major setback for the mens soccer program. Bruce springsteen made his broadway debut last night. He and his wife patty greeted fans after the show. The show is running for a limited run at the 900seat theater. Youre up to date. Thats the news update this hour back downtown to squawk alley. Carl, back to you. Sue, thank you very much. We are getting some breaking news out of washington, as the president says he will refuse to certify that Iran Nuclear Deal thats right, the white house officially releasing the president s decision here to not certify the iran deal, so what this means officially from the white house is the white house wants to stay in the iran deal, but not certify it under a separate piece of legislation that is advanced up on capitol hill so hes going to decertify the Iran Nuclear Deal. His goal here is to amend the legislation up on capitol hill and put in trigger points for iran that if iran did the following things, then congress would impose sanctions, but the white house says they are going to Push Congress not to put new sanctions on iran and not to get out of the deal overall. Rex tillerson, secretary of state, speaking to reporters here at the white house yesterday said we dont disagree that iran is technically compliant with the terms of the nuclear deal itself and said well never do a deal this weak again. He also said he admits there are challenges up on capitol hill as the Administration Pushes for new legislation, saying this is not a slam dunk on the hill. We know its not people have very strong feelings, and it was also similarly fairly circumspect about his expectations that the iranians would agree to a new set of talks with the United States he said they socialized this with the iranians a little bit and there is an expectation that they would talk, but no expectation necessarily that the United States and iran can come to a new agreement on some of the things outside the nuclear deal that the president continues to have a problem with those being irans support for terror and also irans Ballistic Missile program. Its not nuclear Ballistic Missile program. Those are two things that the administration wants to deal with outside of the framework of the nuclear agreement. Theyd like to do new negotiations with the iranians and well see where that goes from here. Carl well look from reaction in congress, eamon, but a lot of reaction from around the globe, including putin today. Yeah, absolutely. The russians have said any threat from the United States is a problem. The chinese have said they think this nuclear deal is beneficial to the world, and theyd like it to continue. So, the nuance here is that under the legislation passed on capitol hill, the president is going to decertify the deal, which means thats that 90day process, every 90 days he has to certify, so hes going to decertify, but not going to end the Iranian Nuclear deal itself. That stays unless Congress Passes new sanctions, so they are going to kick it up to capitol hill if congress decides to impose new sanctions, then thats the United States getting out of the deal and the iranians might bail at that point themselves and restart their nuclear program. So now all the pressure is going to be on capitol hill and off of the white house. The white house is going to lobby the hill to not pass new sanctions, but to amend the u. S. Law around this, to put the trigger points into place, so its a very nuanced solution that gives the president much of what he wants. He wants to denounce this deal as the worst ever, which hes done, and say hes defecertifie it, but he doesnt want out of the deal necessarily, because the american side benefits from it, carl, in a big way the military doesnt want to give up on interesting how much nuance there is on national security, on health care, on immigration trying to thread some needles here over the past couple of months eamon javers in washington, thanks when we come back, theres a shark in the pits at cme kevin oary lllewi catch up with Rick Santelli when squawk alley returns not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Lets get back to sara eisen in washington with another special guest. Sara carl, good to see you i am here with Jacob Frankel hes a regular at these meetings hes the chairman of Jpmorgan Chase international, former governor of the bank of israel, and still very plugged into the world of central banking always good to have you here my pleasure another record high, s p, dow, intraday records, that makes more than 40 for 2017. How do you interpret that . Well, it is a puzzle, and the question is, does it represent an assessment about where the economy is going, or does it represent the impact of policies that direct investments to the Financial Sector, and those are a very different kind of issues. If the markets believe that some of the measures that have been promised deregulations, tax reform, infrastructure investment, et cetera, if the market believes that they will be implemented, then indeed they should be reflected in better performance of the economy and it shows itself in the market. Does that mean you think the underlying fundamentals right now of the economy and earnings do not match up with these record highs well, im also aware of the fact the extraordinary low Interest Rates have been in place for so long, has also some distortions. Those Interest Rates are diverting the resources towards the Financial Sector companies are buying back shares instead of investing in plant and equipment. There may be some disconnect between the Financial Sector and the real economy, and those are the scenarios, and it is up to policy makers to ensure that the policies are really validating what the markets are hoping for. Namely, back to yet to impose the deregulation policy, do impose the tax reform, and do invest in growth oriented infrastructure and on the monetary side, youve been pretty vocal about the need to return to normal, to get out of the crisis mode, low Interest Rates do you think the fed is moving fast enough on this front . Well, we are now about ten years after the crisis the u. S. Economy is doing very well, relatively speaking. Clearly markets have been performing extremely well, and also output is growing just missing inflation. Im not sure. Inflation has to be looked at into the future. As it was said, it will be imprudent to wait until inflation actually shows the 2 target much of the inflation the next few months is already in the pipeline so, by all assessments we are moving in this direction, and some of the inflation that should have been and would have been reflected in wages and prices is reflected in Financial Markets prices so, we have really a little bit of an imbalance in this particular context the fed should normalize it is started and, indeed, i would be very surprised in a way disappointed if they do not have another step in december and it will not be the last one there is still a long way to go, and next year should also be so what is more important for markets is the trajectory that the fed is projecting. Not all the world is ready europe is still not ready. Sure. Weve heard that from bragg h. Draghi he will have a period where Central Banks do not move in tandem with each other during that period it does not mean lack of synchronization it means that each one is reflecting a different phase in the cycle and we will also see, therefore, Exchange Rate changes. We should not resist that. Right and a lot of money going into bitcoin. Absolutely. Quickly, you did mention some optimism, sounded optimistic about the tax reform prospect in particular so, do you agree that this would stimulate the economy, would it boost wages and job creation it is so much in the political arena. I listened this morning to secretary mnuchin. He was extremely reflecting confidence and clarity about the plan deregulation is in place, and it is a big plus. Tax reduction, especially on the business sector, seems to be in place, and it is clearly warranted. We need to bring some of the profits that are locked abroad back to this country they will stimulate investment and growth, so it looks to me that there will be only purely political games that will delay the right policies, and i very much hope it will happen i dont believe we are going to come back to growth rates of threeplus percent, but every onetenth percent is producing jobs it would be a shame not to do it similar comments to what your boss Ceo Jamie Dimon said yesterday on the call. Always good to catch up with you, jacob, thank you. My pleasure, thank you. Chairman Jpmorgan Chase international. Back to you at the New York Stock Exchange mike sara, thank you very much good perspective there on the global picture still to come, bitcoin surging to new record highs, surpassing two big banks in market cap. First, Rick Santelli, what are you watching this morning . You know, im watching all the data, volatility in the treasury options going down. The pits looking for anybody to step in and buy some vol you know who they found . They found mr. Wonderful i just bought switzerland im about to buy france. Buying the whole country going in deep into the markets today. Italy is on sale today. Thats where ushyou should be aiming well be up after the break, by the way. And the International Brotherhood of electrical workers helped make that happen. The ibews Outstanding Union professionals have the skills and training to get the job done right. Thats good for our customers and for our bottom line. Ibew members are our power professionals. They should be yours as well. Traders theyre always looking for advantages. The smart ones look to fidelity to find them. We give you research and datavisualization tools to help identify potential opportunities. So, you can do it this way. Or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just 4. 95 per online u. S. Equity trade. Fidelity. Open an account today. Im scott walker top of the hour, netflix breaking above 200 for the first time ever, so will it deliver on earnings on monday . Our traders are going to look ahead before that big report and another record high for nvidia one analyst says it could go up another 30 from here. President trump scheduled to speak 12 45 from the white house on the Iran Nuclear Deal well have live coverage on that and much more top of the hour, noon eastern, carl see you in a little more than ten minutes. Sounds good, thanks. In the meantime, Rick Santelli and special edition of the santelli exchange. Absolutely, thank you, carl kevin oleary, mr. Wonderful, welcome. We were only half joking before kevin went on camera, we were talking about volatility and how crazy it is, how low it is, what does it mean. So, this pit really did experience a drop in volatility pricing and not only the weekend, but the kind of cooler than almost hot cpi today versus ppi yesterday. So, kevin, volatility is a big instrument to trade. Your observations . So, hitting new lows, clearly what this is telling me as an investor is equities have more to go and im trying to decide between our domestic editions, because it does not move the same way large has im betting were going to get tax reform if we got tax reform, i see another 5 upside, maybe 6 on the s p 500. If i go small cap, down to the russell 2,000, im seeing 15 , 20 if we get this whole deduction in taxes, so im putting 20 of my own portfolios into my own index. Im talking my own book, but its a group of 339 small cap stocks im going to go with that. I think thats the next leg up in this market as for volatility, ive never seen anything like it. Nobody thinks well ever have vol again. Complacency is rampant, and every day it goes down further as the market keeps going up this is getting really interesting. Absolutely. And then when you add in all the growth, the unbelievable growth of etfs, and you understand that, i just think that as time goes on, the connection, etf is just a derivative, okay, so future is a derivative of cash, etfs are a derivative of a derivative i worry about liquidity. I do, but people often question, its really about the liquidity of the underlying stocks inside the etf, so if they dont have liquidity, you have issues. Lets switch from stocks and look at high yield or hyg. Markets have been made for high yield securities that would have never been made if there wasn such an appetite to put them in the garage of the hyg to have the portfolio to match the trade. Rick, youve got to blame the fed for that they are starving people for yields oh, my god but starving the entire population for yields, people are going to go to the high yield products problem is the bottom of the indexes are single c credits and when poopoo hits the fan, no liquidity on single c. Whos going to make frenkel okay work this is getting really interesting. Absolutely. When you add in all the growth, the unbelievable growth of etfs, and you understand that. Yeah. I just think that as time goes on the connection the etf is just a derivative, okay, so the future is a derivative of cash etfs are a derivative of a derivative i just worry about liquidity do you ever worry about those things people often question its really about the liquidity of the underlying stocks inside the etf. If they dont have liquidity you dont have issues. Lets switch gears from stocks and look at Something Like high yield or the hyg rick, youve got to blame the fed for that because they are starving people for yields. Oh, my god, come on by starving the entire population for yield, people are going to go to the highyield productsthe problem ishetoof osinceare single c and when things hit e poo who is going to fix themas . All scena as aderdo i youpoint on credit because thers no muc liquidity. E leatedut liquidity the banknt put it on balae sheets anymore hey not making money trading. Nt that say it all. There use be idity in banks put it ou let thg e din put it on, now s g cant have it a thattrol that marketys thg. Ink thats a healthy i would to more delegration. Woue very good. Heresy. You im with you. Ints and bad points, n a potics, but obviouy deregutilayt elec in november. Nd i optimistic afte boento ted cruz on uawk listened to every wo y the probability of form by q 1 of 2018 is 75 and s whe eity markets cont to p. This is pers opi of mine, but el blish smart y, kof hng in the ckgr getng all the go get republicans refoor o good thing for if they dont dever on tax whd in 2018 elections. Dont disagree. Thine outcome of tha ack here would be fferfrom i think thamer people undersnd that nothing geronger so one side to i think e outcome of thecoion d a lot differ might not strengthen the termay, every aces every admiration can debate it. Re goi to stthen e questionhis is aimpot everyby wants to talk about bitcoin. You and i dont disagree that it can go further up to 6,000 the number one country that trades bitcoin nigeria. I have nothing against nigeria what are they doing in nigeria with bitcoin how come its not accepted by the re test test test as rick was telling you before the break, bitcoin surging to another record high today. Its market cap tops 9p billion. Its bigger than Goldman Sachs and Morgan Stanley now the crypto currency is up more than 480 this year. We had a discussion last few moments about what it means, whether something with no intrinsic value, how high can it go right. Which to me means that we didnt know if it was a security, a currency, a commodity, whatever it is. What its not is a company, and thats why the comparison to the specific company with, you know, future cash flow, look, compare it to gold the case on bitcoin is, whatever, 1 trillion worth of gold in the world, all thats ever been mind so bitcoin is still a small portion that have. What did you think of olearys comment a moment ago, that theres no rechores there isnt thats what it is, distributed system, right . Is that supposed to be its own failsafe i dont know if thats assuring or not. Well, watch the market other. Talk about tom lee with a new take on equities when squawk alley comes right back. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Tom lee has been famously bearish on equities for most of the yore, but today he has a new note, mike, in which he talks about the crunch on high yield. Yeah. Never materialized so he goes back to neutral on equities. I said on twitter he threw in the towel. He said it was more like being steam rolled. Very good natured about it. He was saying routine 7 , 10 decline and did think high yield would have more of a panic very brief in march, but its an extraordinary year nobody really pleau dicted wed have the least volatile year in 50 years, a constant upward grind and phang big in hang in. Tom is going to talk to scott on the half and the vix remains below 9. 5. Jon fortt, hope to see you back in a few days and meantime lets get over to judge wapner and the half. Heart, carl. Thanks so much tom lee coming up in just a little bit welcome to halftime. Im scott wapner our top trade, netflix shares crossing 200 bucks for the first time ever. Eight firms bumping the companys price target so will earnings on monday keep that stock climbing with us on set, josh brown, steve wyse, jim lavanthal and jim brown all with us for the hour lets begin with shares of netflix hitting a new record high today, now up an astounding