Moment and the nasdaq is up another 76 our road map this morning starts with the stocks surge all time highs. It is longest winning streak big techs, big problem why the new head of instagram think breaking up facebook would make it a less safe space. Share of beyond meat taking a dive after a downgrade the top is in only after 600 rally. Someone else i know has been talking a lot about beyond meat which well get to a minute. This is a beyond incredible rally. The dow is up 1300 points in like six days. Scott, great to see you first of all people came in your show describes it all the time. People came in short this month. Why . Because may is so bad. Why would they . The president goes off the real with mexican tariffs. Things are just too out of control. They just have this whole washington, it is just nasty today how does things reverse itself the risks are in we get a piece out i dont know if you saw a 50 increase break up google. 50 increase if it breaks up what can i say apple is coming out saying dont worry about it, we can make our phones anymore netflix didnt have anything to say because nobody cares about netflix. All is well in the world again. This morning our president whos donald trump tweeting this could euro it smells like bmw. He has not put on new tariffs on how many gigs . Less than a handful he loves tariffs. He thinks tariffs are the answer remember ai was the answer for us the answer for him tariffs so i am looking for tariffs and i expect for it to happen because i know he does not think it is fair or unfair by the way, bmw and mercedes is opening gigantic plants in mexico, why not in michigan . When you are talking abo about talking about tariffs and actually putting on tariffs now are two Different Things you may have heard a zone caused by talking about tariffs on mexico or not putting it on mexico there are questions about what the deal really is if anything the next time he says okay, lets put on tariffs on germany unless they come to the table. No, he has not come to the table. It is a market stock that puts tariffs on. Tariffs on bmw and mercedes the president thinks when you put tariffs on, the other country pays and lower the budg budget it was not isle. You may offer an alternative fact shift it is largely i mperical and incorrect. Well, the market, the s p is up 5 already in june. It is the best start since october of 2011. Remember what happened in 2011 the market collapsed i dont think it is going to happen here. I do await some bad ideas that are coming by the way, goldman has been doing well i just really feel that Steve Liesman says it is a good time i thought it was interesting hes a saturday night fella. The market largely started to come backup in june because there was a belief that the fed come to the rescue if things got really bad dont say rescue. Jay gave you just enough to be able to say if things get bad, we are open mind. Ken fisher, i really love him. The short term people do Pay Attention to it. The short term people determine where things are going we have a robust nasdaq tech market the thing that hurt us was faang. Amazon, what can i say the stock is up everyday on absolutely nothing. N netflix is good. Apple is able to make all at once the chinese have been relatively quiet, have they they have xi better show up at the g 20 i am not worried because the president is a great friend of xi can you give me other facts . He says if xi does not show up at the g20 there is going to be more tariffs again, he showed because he did not want mortar rife tariffs. His great friend xi is going to cave. What does it mean if he caves . It does not matter again, what can happen to apple and apples stock is say nothing is going to happen if xi says we are done with apple in our country in return of whats going on huawei, companies are finding ways around huawei. Apple is up 10 this month . People started thinking well, wait a second, this stock gotten too cheap and the sourcing story today which they can source all over the place and people could not think they could i think a lot of people have been quiet that really helps. Scott, the billboard went down senator warrens billboard went down senator warren spends a lot of time shes not your friend. Tech and focus i think she wants to lower stoc stocks, senator warren what is she doing . Some say if she or Bernie Sanders were elected president , they can come down to 30 or 40 . Bernie sanders, all the stocks will be distributed to everybody. It is a perfect segway for our next conversation. Lets go out to the code conference in arizona, carl is there with the highlights. Reporter scott, it fits right of what we are talking about at the code conference here in past years, guys, the conference largely has been about innovation and elon musk talks about mars and jeff bezos talks about robots this is about breaking up a big tech the head of instagram over facebook was asked a question thats becoming pretty familiar to that company, what would we do and what would be the benefit of splitting up a company like facebook take a listen. If we split it up it may make my life easier and it will be beneficial for me as an individual i think it is a terrible idea. Depending on what problem you are trying to solve or approach issues like hate speech and you split us up, it will make it more difficult so thats the viewpoint we heard a couple of times now. In a moment well hear some sound from youtube and it is a pretty good lineup here in arizona. Cindy holland, the vp of original contents of netflix well talk to David Solomon and tomorrow well have on our air from delta, virginia if the doj were to help split it up, we are dealing with issues and big tech whether it is privacy, whether it is our own regulators, that has basically has of any conversations of new products and markets, innovation and growth which was the hallmark of this conference for many years it is fantastic yeah, when i always thought what happened in this country was we were doing poorly. We made sodas and we are pretty good in movies these companies are aired to the world with the exception of china. No one is talking about innovation i am waiting for people to say when are you going to quit dont you hate your boss hey, there is just everywhere. We think the ftc and senator warren for all i know there is the only thing that unites trump with the democrats is hatred of these companies. Democrats are too powerful i am not hear pricing are built in the stock right now it is all Election Year bluster and at the end of the day, the Company Everybody is going to focus on what got these companies here in the first place. Theyre going to focus on what they are not focusing on at code these stocks are becoming radically cheap, verses octa. These are Companies Selling 50 or 60 times earnings exactly. I will look at facebook look at alphabet verses clorox you want cheap facebook and alphabet. Clorox and hershey, what did hershey invented clorox they did put almond in the hershey kiss thats very true, swiss have not invented anything. I have gotten tired of how great clorox in it because they got extra smelling these companies are selling 30 times earnings, what are they producing . What are they producing other than water oh, i was waiting for q q and i are both processing that sometimes scott, you have to sit back and let the magic happen exactly exactly y carl sort of reference enterprise verses consumers. I was going to bring up the fact of consumers ipo, lyft got a big upgrade today. The price targets to 80 bucks. That stock is up at least 3 it is not as bad as we thought now there is a reason to buy hey, we are not as bad as we used to. Lets get some of that stock beyond comprehension meat well get back to carl in a minute when we return, beyond meat. Well fill you in. Lets take another look at the futures. Market is going to extend its winning streak at least at this moment and easily, too the dow would open higher by 160, s p by nearly 20. Live from post 9 at the New York Stock Exchange when we return. indistinguishable muttering that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Welcome back, beyond meat is pulling back one day after rising 600 over its ipo price jp morgan downgraded its stocks. The price target is up a dollar up to 1. 21 ken goldman says as we wrote last week, at some point the extraordinary revenue and profit potential embedded in bynd, will be priced in. W you have been talking about this day for a while, jim it had 3 billion market cap. They are rational. We have seen stocks like this. We know it is hard to get a borrow you went to borrow stock before you short it the highest in this market so things have gone nuts i am glad ken goldman stopped it theyre the banker it is absurd it is not just because it is okay you have to have massive number of finishxes. You need lettuce and tomatoes. Let me tell you how to make the beyond meat burger totaste lik something. Pa put a slab of bacon on it. They say they could bet plant based bacon. Theyll make quote, Media Version burger. Really . We need that the impossible burger tastes better it has a it feels a little more like meat is this all cows and methane . Whats the deal here how much Downside Risk do you think on the stock millennials and vegans and vegetaria vegetarians. They love this i am sorry mr. Musk here, you are fantastic. Right now they are fixated on this it does not matter if you like it or not. Vegans and vegetarians like it they like chemicals i rather go eat a dow chemical burger than beyond meat. They have a lot of pollypropane in that. I had it, it is not that bad. What . It is chewy. Chewy. How do you make a nonmeat burger meteor . They add taste. Listen, the impossible burger which i got in San Francisco at the oracle stadium, it was killer tasted tasted fabulous. The worst is the nestle burger up next it is cramers mad dash, and well be counting down to the opening bell. Lets take another look at the futures. Dow has been down seven days in a row. You got the best start of the month since october 2011. More squawk on the street from the nyc straight ahead the ai i want . Well, insurance its all about trust and speed. I need it to guide this analyst to customize Flood Coverage for this house. So that this team, can inform this couple, that their payment will arrive faster than this guy. Hey. So whether im processing claims due to this fine gentleman. car engine starting or suggesting premiums for this young lady. Ai can help change everything at this company. Expect more from ai. Ibm watson. And everyone ive ever opioloved away from me. Thing everything. I blew my ankle out and i got prescribed pain pills by my doctor. If making my detox public is gonna help somebody im all for it. I just wish i wouldve had a warning. Less than seven minutes before the opening bell. Time for cramers mad dash Dollar General has been remarkable matthew boss the man the number one retail analyst. He says it is time for dollar tree now Family Dollar, they remake it. A lot of people felt these guys could not source anywhere but china. I think you see six today and not just three six this is a second term when it gets to third term, it will be up four. Home stretch, five to six. When matt boss talks, people listen there is still a short position and thats pathetic the Family Dollar is turning arn around and i think it correlates with that. Dollar general is like this. Dollar tree is pretty darn good. Making it a correlation move is it more of your view of the space in general rather than a particular stock that looks ready to break out the space in general, the market is costco it is walmart and amazon and it is a dollar tree walmart is 107. It is fantastic. I bought five pairs of unbelievable sun glasses at dollar tree. Dont touch them because theyre frail. Ray bans can look like ray bans he says she says partner. Opening bell is just a few moments away well be back right after this feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Call j. G. Wentworth phone ringing j. G. Wentworth, how can i help you get cash . I want to pay off my debt and move into my own place. But i need cash now to do it. Do you get regular payments from an Insurance Company . Yes. In exchange for some or all of your future payments, we give you a lump sum of cash now. Call now, and youll also get 25 for receiving a quote. announcer call 877cashnow. 877cashnow. Thats 877cashnow. You are watching cnbc squawk on the street, live from the financial capitol of the world, opening bell is set to ring in less than twominutes. Wells fargo downgraded, Net Interest Margin is intensifying. Do we know whats happening with Interest Rates the ceo search is not helping either the longer it takes, the more negative it is on stocks yields almost 4 which is ur usually a good side. This is kicking astock when it is down. It is not like wells fargo it has been an easy target. You drop to 44 and you upgrade there are structural issues with the whole bank the bank is trading up and early market why is that . Maybe the environment and people feel it, the economy can go a little stronger and repeal of disasterous increase it is not you know of the things you said are true they have been going through this executive search for a long time is the banks troubled . I think the bank is okay i think tim sloane is doing okay that was the straw that broke the camels back maybe do you think shes rooting for the blewruins . No. Do you think she knows who the bruins are i dont think she heard of brad marshawn. All right, the bells are ringing. You are watching the opening bell at the s p 500 at the cnbc realtime exchange here at the big board. It is a Blank Check Company celebrating its recent at the nasdaq, china index thats what i want. Analytic chinese stock because xi says he says. The president is great friends with xi. I cant think of a more perfect stock. Mark cuban has had unbelievable comments about how this is the way if you want to shut down Chinese Commerce stop having them bring that may be next . Who knows . No more chinese ipos in the u. S. If you go with mark cuban, you may say that the president is really focused on mexico tonight. Well, he was focused on the feds earlier he said they had no clue because inflation is so low and it is a beautiful thing. I feel bad for jay powell, hes a perfectly nice guy. You said something that caught my attention. You said quote, disasterous rate increase. Oh, that rate increase was awful. Every single indicator that i have is slowing. Every one of them. There was not anything when every single indicator is slowing, thats not what you need a rate hike do you agree with the president now as they should cut rates absolutely. I dont think the president has the right to criticize the fed he did pick powell over yellen i thought yellen was doing a good job he has every right to criticize the fed. That rate increase did slow down the u. S. Economy more than it should the president has a scenario where the economy is going to continue to get strong and employment number was not good goldman says you are not going to get any cuts. No. They thought you are going to get four hikes these guys are rolling the dice, really like the quiji board goldman does not know. I hope carl ask them how theyre doing with that credit card with apple. Thats a real non stastart r n. What happens if you get no cut . You get no cuts as the economy is accelerated the market will expect to cut until we get a cut because the market wants the market is kind of torn here. We dont have a lot of inflation. We got a nice goldilocks thing going. Things are fine. I know people dont want to hear things are fine. Maybe theyre better than fine what are you going to do if you have a stock market hit another high you have a return of what some call animal spirits. You got sales force and tableau and raytheon and utx is doing deals. In the 40 years i have been involved in investing. There are fine periods we went through the uber period which i was worried about. February was really bad last year then we had a nice run for a while. As long as powell just says look i on moderate data, we can go higher if he says data accelerate accelerated if he says i am watching and i am monitoring, thats a win it is a win. Do you need to cut rates when things are fine in our words you are not going to do anything if things deteriorate is less than fine then we have powell on our side the president wants you to do some things. He wants us to do a lot of things hes not the only one some is calling for 50 base for july hes doing that powell has our back. Well get another week of employment number for the month of june then powell will cut do you remember in december, you were on and it was the low Christmas Eve thats when the president should been tweeting the heck out of this. If we get another week of numbers, right now we got powell where we want it the president thinks he has everybody right where he wants them with the tariffs. Wilbur ross was on the network this morning listen to what he says i think eventually this will end in negotiation the g20 is not a place for anyone to make a definitive deal a trade deal thats going to be thousands of pages at the g20 and it will be a 40,000 foot level some sort of agreement on a path forward it is not going to be a definitive agreement i hope hes right hes inaccurate of world war ii was tUnconditional Surrender. I think the president would like Unconditional Surrender from his great friend, xi if all xi has to do to avoid additional round of tariffs is to show up i am betting on xi, right . Showing up is being on the president s side i am betting on the market. If you think xi is going to show, there is not going to be additional round of tariffs. Whats going to get in front of this rally then . New supplies. They dump these new unicorn supplies we dont have good lock up, that could happen what if the president does say tariffs coming on germany. If he comes out and says listen, germans are not paying their fair share instead of one, he thinks it is 1 for nato. They have to step up to 3 where it is going to put tariffs on bmw and volkswagon by the way he wants tariffs so he really likes tariffs. He likes the power he wheels with them. There is been people used to weaponize. What is that . I think he thinks that tariffs get things done. Mexico folded. He thinks the chinese is going to fold. When he threaten tariffs people freak out. Hes right if there are tariffs in all of our stuff. Everyone ours will be next you are in the Restaurant Business i think it is really important to note that the president is absolutely right. There are tariffs anywhere hes just talking about reciprocal tariffs i think thats fine. I think the market is not ready for tariffs on bmw or mercedes or volkswagon or maybe lamborghini. Speaking of getting clobber, beyond meat is down almost 12 look, i dont like the mark cap. I think thats wrong as you said, we were gaining momentum what were we gaining momentum on we dont have a lot other than the fact that you break up alphabet you said it earlier though you said there is a put under the market there is. You will have the possibility to continue to go up and up. If there is a meeting and the g20 with trump and xi and any sort of progress there is great process. So that could be problematic because i see a real slowing this is why hershey is at its high and a lot of stocks are at its highs are stocks that are indicated. J j backup to 40 where it was before the reuters and New York Times some of these stocks are coming back. I think we should move onto qualifying is that because they told us to you are the regular here, i am just filling, i can go all day. Lets go back to Carl Quintanilla, hes in scottsdale, arizona, at the code conference. Carl reporter jim always knows how to set us up big part of the conversation is this need of talking about the value of various pieces of alphabet they put youtubes value at about 200 per share the ceo of youtube was here at code, i would say at times it is uncomfortable conversation about the potential break up of the company and what would it look like and the company gone under fire or content they did not remove the reporter who worked for box, the same company that hosted this conference and owns repo people want to change society for the better but it has all these unintended consequences. What i would say is important for us to be able to work closely with these different providers and different government and be able to explain how we can really implement it in a reasonable way and how to make sure there are not unintended consequences they did not think about. Response to a question from peter of the intendunintended consequences youtube is the best purchase that google or alphabet has made in the past 20 or 25 years here they are juggling all kinds of game theories regarding regulations and break ups. Her appearance here at code was thrown into some drama because of various security risks that shes under as ceo of youtube. Shes an honest person doing a good job her sister is great, her parents are great professors she to me is really the wrong person if i have a criticism about her, i think they should have bought the last nfl contract, i push them to do that the fact that shes being hectored is a shame. Shes a strong, good person. I dont understand that at all jim, you been a target of harassment, we all have. The question last night was whether or not there needs to be more consistency in their policies of what they remove or belief in terms of users content. Look, they are an open society, they have to become more of a Close Society and monitoring theyre not a greyhound bus. This is seemingly hard for her but i think shes continuing to adjust and apply i know she got criticized yesterday for Something Else i dont want to bring it up again. I think shes a good hardworking person and it is a shame that shes getting beat down. We all spend time on the cross i had repeated time at the cross. It is her time on the cross. I question whether thats right. I would like to hear it. We are working hard to try to make it right. Remember they used to have contents susan, wow, she can take anybodys head off shes really smart i really like her. That made headline last night as we get ready for today, David Solomon of goldman you want questions of the credit card with apple. Thats coming up later today carl, they have to stop saying the following you know we are working on it. I want to know how many days they have and their algorithms for finding out what exactly is their loss ratio i want to know whether it is going to be capital one without the fees i am tired of them saying nothing and apple saying nothing. I am tired of them saying hey, dont worry about it because i am worried about it. You cant just launch that i think a lot of people want the apple card, they do not have the infrastructure to handle the card no more dodging. The days of dodging are over. Thats good no more dodging no pressure. No more she sahe says she says. Carl, well be back to you. I dont think these companies have much of a clue when it comes to policing their sites. Marc benioff, they think they are a house of idea and everything is fine and not a house of truce they dont know who to let on or kickoff or when to do this or that i dont think much of them have any clue until after the facts c i dont think the fact that susan is a target of the program. They should have someone above her who says okay, we just cannot, whos the client we got to be true to the customers and everything will be fine netflix, true to their customers, facebook . Whos the customer we dont know. Amazon, whos the customer we dont know. Well sell you out there is no selling out at netflix and sales force. Marc benioff is not going to sell you out facebook will sell you out in a heartbeat, right if you say so i am saying so. Lets go to the bond pit, Rick Santelli is at the cme group in chicago hey rick guys, it is so fascinating today to watch the yield curve it is flattening a little bit. Why is it so important seeing twoyear note yield leading the chart to higher rates. Look at the chart starting on may 10th, it is not quite a big bottom, well get to that. It is certainly turning. You can see the reversal it is all about the fed. Equities are looking better. The notion of the fed and built in into the keg. It is changing every minute. If you look at the tenyear, now you can see what i am talking about. Same date, may 10th, more define double bottom. It is the bottom, we are going straight up in yields. It is a bottom nonetheless now Foreign Exchange is future ca fascinating. There is going to be much worse for not having that chapter. The Euro Currency is doing better because the notion is st stimulus whether it is china or europe or loans. Reflecting on this chart starting on may 1st, i will look the reversal of that the year of kuscurrency you see and this is really a drop pattern for the dollar index many believe the euro can test 114 which means we may have another penny and a half or so to the outlidownside on the dolr index. Rick, thank you very much uber shares are rallying this morning. It is still down 4 since the ipo. The ceo is weighing in on the companys stock volatility since going public take a listen. I think thats the timing of our idea was very much align with our tariffs war the same day. I think we got caught up of a bit of a market quarrel. There is nothing you can do of that in short term the market can be a voting machine i think we are focused on the waiting. We have a sixmonth mock up. Nobody cares what the stock says right now. It is a bunch of traders going in and out if we work on building a great enterprise, the market will take care of itself all right, thats dara at the economic globe of d. C. It is all tariffs. The First Quarter was not a great quarter. There were people who thought of major buyers and there were no major buyers last quarter showing of deceleration a lot of people felt, it could be facebook. Lets price it so it does not go nuts but the tariff data. Tariffs or no tariffs, there are still legitimate question of a road map of profitability. If it is an ecosystem, it goes higher. Everybody wants ecosystem. They want an ecosystem platform. All ridiculous things people say onair they cant be a catalyst lyft is up 3 and the upgrade we spoke about earlier 80 price market United Technologies and raytheon keep ongoing down a different perspective on beyond meat. Well talk to former whole foods ceo walter robb. Everybody stick around, squawk on the street will be right back sfx [phone ringing] you still have service . Call the Insurance Company its them, calling us. Its going to be a week before they can get through on these roads shhh, sorry, i didnt catch that. I said ask how soon they can be here right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Look up . By automating claims with Machine Learning and analytics, cognizant is helping Insurance Companies advance how they serve even hard to reach customers. Cool all right. Welcome back showing you these two stocks here sprint is down more than 2 right now, jim, as at least ten ags, attorneys general, according to some published report, are filing to block this sprint tmobile deal. You buy tmobile either way tmobile wins either way the company has done incredibly well it can do it with sprint, without sprint i like the combination because i worry about 5g weve really put the hammer to chinese 5g with huawei its really effective. No one can sell them anything. Its like you go to jail if you sell them stuff. Youre supposed to get approval. 5g, we have to be team leaders its really important. Jim says buy tmobile and that stock turned from red to green. The cramer effect. What can i say . Yes. Were back right after this l y brey. 124 alofoue ad well be back after this om fide. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. You need decision tech. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Whats on mad money tonight . I have eqt tonight, oil and gas. Well look forward to that. The wells fargo having trouble getting a ceo. Im a little jammed, but i can do that job in the interim. Well, thats one of the reasons why there was a downgrade today on wells fargo so there you go. That stock was under a little pressure, too. Carl coming up with more highlights from the code conference jim, well see you tonight keep it here henry i thought it was unfair. When when you hear those words that you get diagnosed with cancer. osamah successfully treating it still remains one of the most enormous challenges facing us today. We realized that, if we developed the technology that could take 2dimensional patient imaging and convert it into 3dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. When we first started, we felt like this might just not be possible because Computing Power just wasnt there, but verizon 5g ultra wideband will give us the ability to do this. We wont rest until we see this technology being able to change lives. Good morning welcome back to squawk on the streak im sara eisen here with scott bopper in. Carl quintanilla from the code conference in scottsdale, arizona. Well take a look at the markets now. Going for six days in a row for gains for the s p. Seven days for the dow nice 100point rally june looking a lot different than may nasdaq up. 75 our roadmap for the hour starts with the on bubble brewing, shares falling on beyond meat. Stock is up nearly 500 . Former ceo of whole foods is with us. The dow going for seven stocks are rising as trade fears with mexico calm and hopes of lower Interest Rates from the fed. Big tech, big problems. Live from the cod conference in scottsdale well hear what leaders have to say about regulation, risks in the industry and a lot more. Alltime highs back within reach. Dow on track to extend its longest win streak in more than one year the president taking to twitter moments ago saying, quote, good day in the stock market. People have no idea the tremendous potential our country has for growth and many other things with us now, equity strategist david costin welcome back. Nice to see you thank you. Can this rally continue at these levels three big issues that are related that investors are focused on we have trade. Theres rates and there is growth in terms of the Economic Activity which trump is just referencing. So we have those three things. Sometimes when theres less concern about those, the market rises. You said seven days in terms of a rally here and when theres a greater concern about those issues, the market tends to move lower at this juncture were moving more on the upside its a risk out in the next near term would be more tothe downside we look out towards the end of the year, 3,000 would be a target for the s p 500, and thats modestly maybe 3 to 5 upside when you include dividends. Is that a base case at this point, 3,000 on the s p, if everything sort of goes according to plan with the potential for upside. 3,000 target has been in play for the whole year in terms of since the start of 2019. I would say that it remains the base case forecast. Even though you guys at Goldman Sachs dont think theres going to be a rate cut this year, pretty contrarian call if you think about what the dynamic is around the fed and the futures market the futures market is currently pricing the likelihood of a cut in the fed funds rate by july. Not in the june meeting, but rather the end of the month, end of july. Historically, not a lot of examples of this but if the fed does not go there, they would have to walk back the expectation in the investor mindset of a hike in that environment, only a couple of examples in the past the equities dont do particularly well that would be the baseline expectation. So near term, if you look out over the next month, if the fed would have to walk back or if it chooses to walk back that expectation, that would be generally more of a headwind for stocks. Im wondering how the kostin 3,000 target matches from the hats yas no cut from the fed if you get no cut at all, isnt 3,000 a grave risk how do you get there the growth. The economy is growing the economy is growing a little below 2 in terms of a run rate of growth. That is certainly sufficient when you think about most revenues of corporations grow at nominal gdp. If real gdp is growing around 2 , inflation roughly 2 that means your 4 top line Revenue Growth for most companies. You have Companies Buying in shares your earnings trajectory is around 6 . You have 6 in terms of growth rate thats what takes the market higher the market Interest Rates around 17 times forward earnings, so trading at a reasonable valuation. Bond yields are at 2. 1 . Its still support valuation wise of a market thats higher. It all makes sense until you say, well, the market expects multiple cuts and isnt there going to be a potentially big adjustment if there isnt . As indicated in the past, 1990, 1992 where the fed of basically the expectation of the futures market receded from the strong expectation of a cut to no cut that environment, thats been a little headwind. Thats why near term, think about the tactical trading, that would be more of a risk. If you look out longer term, theres growth economic expansion now is ten years old, likely to continue. Does it matter for your s p 3,000 target whether trz goes through on the next tariffs, 300 billion on china . Tariffs is certainly one of the big issues, rates and growth of the others. We think about the tariffs, well, you saw expectation that was going to be tariffs on mexico that was of great concern for a lot of fundamental reasons that got pulled back or delayed or now off the table, if you will thats important to the market moving higher. I think that environment were looking out a few weeks. We have the g20 meeting towards the end of the month. Youre assuming it doesnt happen. The base case scenario, im assuming, is that there is some tariffs on the amount of goods so far weve had a tariff on 200 billion in imports, but not necessarily the full amount as a base case. Certainly a risk which would put some downside. You think theres going to be a deal that helps you have sort of this optimistic view that you do on all accounts, not only the market, but growth. They should think about the 70 of the revenues of most companies are domestic we think about what should Portfolio Manager be doing in this environment, you want to be thinking about more Services Based companies as opposed to goods producers, so you have less exposure to the risk of tariffs, more domestic exposure as well. Microsoft is an example. You have the financials where its domestically facing, servicesbased business, less exposed to tariffs were looking at where is the ability of a Portfolio Manager to reduce risks in an economy thats growing at a modest pace, where valuation is at 17 times earnings, theres not value support for the market at these levels. Do you put retailers in that basket of less exposed or more exposed . Because if they go through with the next tariffs, theyre highly exposed. Retailers, different aspects of that. In some cases production of products is coming not so much from china where the big focus is on tariffs. Generally speaking, if you can find some other areas of the market, Consumer Discretionary would be preferable. Media and entertainment, less at risk of tariffs. That would be within a Consumer Discretionary part of a portfolio. Thats an area that would be of greater preference. What if i wanted to play the riskreward dynamic differently and go outside the u. S you like any markets outside the u. S. I think from a sharp ratio, the u. S. Still offers a better prospe prospect theres a lot of social and political issues in europe theres not a Technology Sector there which is i think restraining the overall level of the market 5 of the European Index is technology domestic its closer to 15 or 20 depending on how you define Technology Issues in asia in terms of the trade. I would say are broadly speaking, the risks are less relative to the rest of the Global Economic opportunities set here in the united states. Finally, the Domestic Trade isnt working too well if youre looking at the russell 2,000 those are the companies that are supposed to be largely insulated. You have the russell index rebalancing that will take place at the end of this month, starts july 1st you have 44 new companies entering the russell 1,000 the big ipos will be new constituents in the index. Number of Fund Managers already bought those in terms of the ipo and the distributions. S that an area historically that has been generally outperforming. David kostin, always good to check in with you Goldman Sachs chief economic strategist. Lets get over to carl at the code conference from scottsdale, arizona. We are at annual conference code con big presence from fanning. We talked about interviews with facebook and alphabet. On a related note, twitter was here the lead counsel talked about the ompanies jack dorseys meeting with President Trump and twitters focus on improving civility. Cara swisher tried to get into that. We talked about a number of different issues we talked about the platform the use of the platform around o specifically talked to him about improving the civility of public conversation and how important that was it was a wide ranging talked about a lot of things. It was also about 30 minutes so how much can you really talk about . When you talked about civility, could you sit there straight faced. Shes doing it now. Im excellent at straight faces. Its true. I think it was important for jack to bring this topic up. That was his purpose in attending these meeting, was to impress upon the president how seriously we take these issues and also to talk about what were trying to achieve, whether thats our work around election manipulation and preventing that from occurring or about improving the health of public conversations and why thats important to us. Interesting exchange, sara and scott, as we talk about the president s tweets just from morning. Busy morning a Data Presentation about the state of the internet and the industry well talk to David Solomon of Goldman Sachs later this afternoon. Ed bastian of delta as we hear a lot from these companies, but also old school and Banking Companies trying to get a piece of the mindshare of the piece of the technology thats all part of the code conference big day ahead. I know its early but i wonder how much discussion or whether the tone will be different this year given the fact that i cant even keep track of everybody who is investigate gaiting some of these companies, theres a house panel today on free speech you name it. Do they feel threatened . I think the answer is yes in that its become the topic of conversation as i said to scott earlier this morning, normally you come out here and talk about new products i remember the year go pro came out with the drone that was the lead on the first morning, this drone from go pro. Wow. New markets, international expansion. All that has been shoved aside because of the issues that youre describing. Theres only so much bandwidth that tech has. Right now its being consumed by the threat about china, about breakups, about regulation, about user content, things we talked about on the periphery a couple years ago but now at center stage. Look forward to all the great coverage and interviews from you guys out there, carl well see you in a bit when we come back, beyond meteorologist bubble, shares up 500 since the ipo falling this morning former ceo of whole foods will weigh in still higher across the board. Squawk on the street, back in two. My degree from snhu has helped me tremendously. The flexible class schedules allowed me to go to work full time, run my catering business and be a mom and parent. When i reached this accomplishment, it was like, its here, its happening, its now. We at Southern New Hampshire university are the ones who succeed. We are the ones who break through. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Welcome back to squawk on the street. President trump continuing attacks against the federal reserve. Yesterday we spoke with former treasury secretary larry summers. Here is what he had to say about the president s criticism. I think theres something depraved about his degree of dictator envy, his idea that somehow the fact that we have an independent central bank, one of the stronger financial traditions that the country has had and that free countries all over the world have moved to, the idea that thats some kind of impediment i think is really a very, very dangerous idea. Summers on fire, very critical of trump nomics and especially the war this president has waged on the federal reserve. Mike santoli with us taking a look at the anatomy of a comeback. The tone of this comeback is somewhat encouraging, at least to keep the stock market at these levels we had a 6. 5 decline from the beginning of may, down through very early june. Weve had this comeback. Here was the downswing this is from may 3rd to june 3rd. The middle line right here is the s p 500. Thats in white. The orange line is the s p low volatility index, the defensive stocks you see how they did fine. They held the market up, kept it from going deeper. S p hb, thats the more aggressive stocks, the high beta stocks, they had a tough time of it thats natural as the market goes down. They did their job now, look at it since that point. This is basically the last six days or so that weve had this comeback and, of course, we have the reverse, finally especially in the last two days, weve had the more aggressive tocks, the high beta stocks leading the way. You have semiconductors, the transports yesterday that were doing their part the question is can the aggressive stuff, the more cyclical ones carry the weight as treasury yields rise that maybe youre going to have to offset those defensive stocks pulling back a little bit. Thats basically your fix right here you see its not as dramatic on the comeback but the s p, high beta stocks up 7 and obviously youre having some underperformance in the defensive stuff right here as the Overall Index guys, keeps bumping up against that 2900 level that we hit this morning. I guess a related point might be that bond yelleds have found some sort of stabilization which is why the defenses arent working as well. Is it enough of a confirmation from the bond market to get a green light for stocks all during may we talked about the big risk factor as a warning sign. Youre still seeing a lift in bond yelleds this morning. I think theres room for yields to keep moving higher before it pinches anything the twoyear note is at a high for june, 1. 93 this morning, it bottomed below 1. 8 at some point the ppi was on target, 2 core wholesale inflation. Are we going to talk about maybe the market got too aggressive in pricing and fed cuts thats the toggle i think were on. Whether jay powell was right about that transitory comment. When we come back, former ceo of whole foods on the beyond meat craze has the Company Announces its new meatier berg ger. Carl sitting down with the chairman and ceo of vox media. Chairman and ceo of vox media. Dont go away. 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. Welcome back to squawk on the street. Im Carl Quintanilla live at the code conference at the venetian resort in scottsdale, arizona. John ford is here. High temperature today, 107 degrees. Got the short sleeves going. Absolutely. We talked a lot about the company weve heard from so far, facebook, twitter. But susan woj jik i cans talking it what was the mood. I think everybody was tense for her. She seemed to be bag on her heels for the whole conversation granted, she was taking incoming pressure from just a number of different fronts she was talking about the possibility of a breakup she was questioned about that. Didnt really have an answer for that a lot on content policy though and how youtube makes decisions about what to leave up, what to demonitize, whether its capable of figure out what content is out there. Here is her response to a question about exactly that, how they deal with content take a listen. At the end of the day were an Information Company we have the access to google, some of the algorithms there we have the resources to deploy. Weve committed to having over 10,000 people working on controversial content. So i see how much progress we have already made. We made changes to our recommendations algorithms as well for not violative content but borderline content weve seen a 50 reduction in the views coming from recommendations from that. That access to google, carl, is a key point here. You heard this echoes of this not only from susan woj icky, but also from instagram and amazon this idea that the fact were connected to this Bigger Company is good. It allows us to get ahead of problems, to have answers to some of these issues even when she wasnt directly talking about dont break us up, that was the implication. You mentioned andy jassy, ceo of Amazon Web Services who took a nadellatype tone meaning you respect the client and their willingness to share stuff with you, in return that you get some of their information, very much a Currency Exchange of sorts. Hes really sitting pretty right now. Amazon web services, growing 41 year over year more than a 30 billion run rate just for aws he wasnt under the same kind of pressure because thats an enterprise conversation. In this era of internet of things, people reason sernt about where their data is going, its interesting he talked about how customers need to be able to trust the provider take a listen to a little bit of what he said the promise and the capabilities can provide customers is really amazing. Youre going to want to make sure whoever you use, that you understand their rules on privacy and how they manage their data and you have to believe theyre going to keep the data secure. If you dont trust that company, you shouldnt use them. The difficult thing here, carl, is the things that are being sold to consumers, these smart speakers and the homes, some of them have screens, theyre set up as being simple on a telephone metaphor. A lot of people arent thinking about where is this data being stored, what other data is it connected to maybe Enterprises Companies are more savvy, but the Way Companies are using these Cloud Platforms to deploy these information gathering systems, i think theres a question of how much are they going to have to disclose about what theyre keeping on you. You go through netflix and their suggestions for you. Thats not random. Its coming from behavior patterns that you are providing the the company. At least on netflix its based on behavior patterns on netflix that youre providing to the company. I think peeps concerns are, when youre dealing with google, with facebook, a lot of people dont realize how the like button is able to track you across the web, other things youre looking at. People have become aware of retargeting, hey, that thing i was looking at on amazon or this random site is showing up in facebook are they following me . Yes, theyre following you if you use a device in your home, i think its unclear how much theyre followed there, too. We talked with cramer about where liability really lies in terms of regulation, crackdown from governments here and abroad is the line enterprise and nonenterprise, is it about Companies Consumer facing and those are the ones that need to lobby up i think it depends on what type of regulation, what type of changes youre facing. Andy jassy said, well, if were forced to break up, well break up were a u. S. Company well do with it there is potential impact for andy jassy and aws if certain regulations come down. Certainly on the privacy side, that seems to be more of a consumer focused issue. Obviously taken over the conversation at code in ways we havent seen, you and me, in half a decade of coming to these conferences. Scott, a lot more to come later this morning up next, former ceo of whole foods is with us to discuss the fake meat kraes and more shares of beyond meat are down this morning 20 lets get a quick check on where the major averages stand this hour as well a little steam coming off the open dow still up trip digits s p up. 5 nasdaq, tk continuing its out dealer performance, up. 75 . Squawk on the street is back after this good morning ever. Im sue herera here is your cnbc news update. A lebanese businessman has been released from an iranian prison. He was convicted and sentenced to ten years in an iranian prison for cooperating with a foreign enemy state in october of 2016. He just landed in beirut Vice President mike pens said monday he supports the administrations move to prohibit u. S. Embassies from flying the rainbow pride flag during lgbtq pride month telling nbc news, quote, it is the right decision the state department indicated that on the flag poll of our american embassys, that one flag should fly and thats the american flag, and i support that red sox legend david ortiz has been transported to boston by the team plane 24 hours after he was shot in the back at a nightclub in the Dominican Republic he was taken to Massachusetts General Hospital and the surgeon who operated on him in the Dominican Republic says he expects ortiz to return to life the same as before following recovery we wish him the best that is the news update. Ill send it back downtown to you, sara. Thank you beyond meat shares falling this morning. Jpmorgan downgrading the stock to neutral on, quote, purely a valuation call remember this is one of the more bullish analysts stock down 20 after the huge record setting rally from the ipo price. Stock now only at 440 since its debut last month joining us former whole foods coceo robb. I think to stock has legs i think were in the early innings. They launched their burger pack in whole foods yesterday or two days ago at ten bucks a pop. I looked at the unit movement. Its already pretty darn good. This is not a late inning thing. This is early on theyve opened up in amsterdam they have that facility working there. Theres demand worldwide i think the Investment Community is saying we want some growth. We want a growth in the food sector where is the growth and here it is valuation will sort itself out we all know that its a longer thing. Thats where we are. Is it difficult to quantify the total Addressable Market that really exists for Something Like this . You go from running a Supermarket Chain to you have your legs in the Restaurant Industry we were talking earlier as well. So you know the market from all aspects well. Remember, this is an ingredient, a Consumer Product and also for the restaurant channel. They have multiple paths to market i dont know brands as well as i know retail. But i just think its got a fair amount of potential because the demand for plant protein, both alt dairy and alt meat is huge. Does it pass the walter robb test of being good for you, clean . I hear a lot of people saying, theres still a ton of calories and theres chemicals in it. What do you think . In truth, the con argument is its made up of a number of isolates from pea, rice and sun flowers. But i know theyre moving in the direction of it being a complete whole food it has a lower environmental footprint, so its got that going for it nutritionally, i think its a little stronger in terms of salt and sodium and fat im a whole food guy, so thats kind of my first choice. How do you think ceos of Supermarket Chains, Grocery Stores are thinking about a company like this and products like this more broadly its clear to me the Capital Markets have woken up to food as a space in general theyve been silent for the last number of years. A lot of money pouring in, i think almost 300 deals last year its clear to me that theyre saying food is part of touching health, touching technology, all these different sectors. I think its got a real future. When you walk in the Grocery Stores, will you see all the meatless products all next to each other or will there be one or two winners out of the pack thats whats interesting its actually in the Meat Department here is the alternative protein and the rest of the proteins most of the action in new food, if you will, is in the alternative dairy and alternative protein. Thats about a third to 40 of that its being merchandised as a protein. The customer is saying i want that choice. Thats kind of what i was going to ask, how high is the barrier to entry to make these things this has been ten years in the making for this product. Its not like it just showed up yet. It takes time and investment theres been a lot of money thats come in before it went public hey, for whole foods, remember, we were kind of in the shadows for ten years. The same sorts of questions that are being raised about beyond meat were raised about us. Hey, you guys will never have enough to sell, youre going to run out. Once the competitors get in, youre going to go down. Very analogous for me when i think about the situation. I think seth and ethan have a lot of promise ahead of them the market has woken up with this stock so youre going to see a lot of competitive entries happen over the next number of years its going to take a few to get it right these guys have a nice head start. So from in the shadows to the intense sunlight of amazon on whole foods now, theres nowhere to hide anymore. Has amazon made whole foods better or worse . I believe its made it better i believe the fusion of the digital and physical through the prime now has digitized. The physical offering weve developed over 30plus years and made it more available to more people i think its a big question youre asking. We could go a whole show just on that, but on balance, its taken the whole foods quality standards and brought them forward to a much wider audience retail is in a tremendous state of disruption right now. Youre seeing amazing changes like we saw yesterday. Walmart says well put it in your fridge. You have to work for walmart for a year amazon says were going to drop a drone at your house. Are i dont okay with that not in new york city. Were seeing iv, traditional mid market stores. Were seeing people say ive got to try to find a way to innovate and get some growth. If i costcut you have a kraft heinz situation where youre going nowhere. The innovation is the order of the day. I see a tremendous amount i see Capital Markets saying i want to get in on this. I want to ask you about some of the news today from amazon, theyre getting out of the food delivery business, so competitive with the grub hub. What do you make of the fact that theyre bailing lets be clear. They brought deliveroo which the largest in the u knchtsz remember with prime through whole foods, you can have your food delivered within an hour if you choose to do so. Theyre still delivering foods, just through those other mechanisms their effort at amazon fresh didnt really succeed for the last ten years there are some areas where i think they cut their losses and say well focus over here. What i make of it is this is an incredibly robust area nobody has figured out the Financial Model yet. Nobody has figured it out. The only place it sort of works is when you combine them with a physical store so that the inventory, the supply chains can be merged. What i make of it is a rational business decision on their part saying, hey, well focus on these other areas. What about uber eats . Isnt it growing like crazy . Thats part of the larger uber story i dont know your views on that. To me i dont see a pathway to profitability there, but i dont know uber eats seem to be the customers clearly said i want my stuff probably you, sara i order a lot of delivery thats true. I think theyre one of the folks that survive z because they have the capital behind them grub hub is doing well, door dash is doing well look at the valuation on door dash the Business Model hasnt been proved out yet. I find it getting more expensive by the week, these new restaurant deliveries. A starbucks latte and have it delivered and the cost was the same but the customer is now in charge the customer is saying let me have the option. Always good to catch up with you, walter. Thank you for having me good segue, talking about food delivery. Uber eats an Companies Like that, speaking of ipos big bucks for investors, lesley picker is back at headquarters following that story. Its been more than 30 days since ubers ipo theyve passed the certain deadline to sell more than a billion of stock in et pretty much every ipo it allows underwriters to purchase 50 more stock and offer it to other investors in the market. In some cases that allows the issuer to raise more money in ubers case, it was the venture backers that would have cashed out in this deal. Softbank, and several uber cofounders were among the many investors looking to sell through the greenshow. The option expires 30 days after the debut. Underwriters wont typically exercise that option unless the stock is trading above the ipo price. As we know, ubers stock price didnt do that last wednesday it came close, sending the day at the 45 per Share Offering price it tumbled after that. Instead the greenshoe was used to support the stock after it began trading. The insiders waiting to sell have to wait for the lockup agreement to expire in another five months. Lesley, thank you so much now back to Carl Quintanilla at code with a look at whats coming up. Carl when we come back this morning from the venetian live from code, vox chairman and ceo jim bank kof will talk about the changing media landscape you dont want to miss any of the action live from the venetian and code con. Dont go away. Rjtsz one top strategist says wall street is getting the feds next move all wrong. Find out more on cnbc. Com. More squawk on the street is coming up. Welcome back were live at the code conference in scottsdale, arizona this morning tech bigwigs questioned about growing dominance, squeezing industries from retail to publishing joining us to discuss the changing economics of Digital Media and big techs growing influence, vox media ceo jim bankoff. Congratulations on a conference that feels bigger. It is a little bigger here in scottsdale, a great crowd and so much to talk about. So much of last nights conversations have been about companies on the defensive from regulation, privacy concerns, content concerns how much of the conversation were used to having about innovation and growth and new markets is getting displaced i think some of it is tech goes through cycles and sometimes there are big cycles of innovation. Well have jet packs today, new forms of transportation, new forms of ai. Were always going to focus on whats next. But we would be not diligent if we werent talking about how tech has really taken over so many aspects of our lives. In fact, our recode brand and vox brand have come together to really talk about how tech influences every part of society, every part of politics, every part of culture. The tech story is not just about devices, not just about servers and software its about our lives, and we have to reflect that if were going have an honest conversation. Is there an argument starting to coalesce about how companies will respond if these threats come to fruition in the next year or two . Well, theres good discussion on stage yesterday we had leaders from instagram, youtube, aws, from twitter. And everyone has different perspectives i think the constant theme and there are some hashtags about this stuff were all trying to figure it out. When we have leaders of the companies saying we dont have it right, we dont have it right, i think thats a persistent theme that no one has the roadmap for the future and there needs to be conversations. Thats what this conference is all about. Thats what we try to do with many of our vox media partners, too, provide that forum. Big tech overall, lobbying dollars have gone 3x in ten years. I would assume is it fair to say theyre girding for battle, or are they still doing white papers is it that kind of mentality im sure they ears assessing all their options and trying to figure out what they can do best for their shareholders, their customers and different stakeholders but there is a big reckoning, a reckoning of their responsibility another constant theme is were about 10, 15 years into this cycle of these major fang Companies Growing up this is a year of humility and year of reckoning for these companies trying to understand what it is that they built which i think undoubtedly im a tech optimist. Undoubtedly weve done a lot of things to advance us, to help so many people, give a voice to so many people in particular in social media but along with that comes a lot of responsibility. They havent always lived up to accepting that responsibility. Now youre seeing them try to grapple with that, try to do that, understand what it means for regulation if they dont do that a lot of them are asking for regulation which i think is interesting. But one way or another, they have to solve it lets talk Digital Media for a moment youve been busy on your own projects growing within vox. Yeah. What lessons are you coming to in that space well, we know theres a lot in media generally all the big mega mergers happening. If i see Rupert Murdock and fox feeling they have to consolidate with disney, i know a company like ours has to innovate and create opportunity we have big growth areas in our company, whether its podcasting, where we have vox media podcast network, whether its our for ray into tv where we have a huge hulu deal partnering with david chang, Chrissy Teigen to produce a whole food Network Within hulu, or whether its focusing on our advertising business, digital growth and other areas we have a Technology Business called chorus that provides a platform for digital publishers. Were looking to consolidate in different ways sometimes its about buying companies. Sometimes its about providing platforms for advertising and technology so other companies dont have to make that investment themselves. They can get better product from us at a cheaper cost. In terms of creating content, you mentioned david chang and teigen, why would you want to get into that in a wharkt where people say were in peak content mode so many hours, we stream more than we watch television now. At vox media we pride ourselves on being the leading modern Media Company what does that mean . That means we tell stories wherever modern audiences want to consume them. They clearly want to consume them not only on websites, on podcasts, but on streaming platforms. We have to be there if were going to fulfill our mission there are huge growth opportunities. Look at the billions and billions being spent these companies are coming to us because they know were talking to their audience. Call it millennials, cord nevers, cord cutters we have brands that resonate, we have talent that knows how to produce it and we want to be us. Interesting one last question. Youve had an interesting month in which youve been working with your own employees. Really over issues of pay, right . You know, i view it as making it a stronger workplace. All sorts of things. Yeah, we just came to a great agreement, great in terms of making our Company Stronger and making our employees having getting them a better work mace. We assigned an agreement on friday and we were really excited to do that we think its going to heed to a better workplace and a stonger box media and help us fulfill our mission. Were you surprised by, i dont know, the way they coalesced on social media to talk you to, the boss . Thats a new way to handle your labor disagreements, right yeah, you no he what . I think in a mostly respectful way they took to social media to tell stories about why they love working and how they think box media is a stronger play i think all of them start off by saying i love working here and heres how i think it can be even better. And im glad that we were able to work with them to do just that i couldnt be more thrill. Juggling that and the conference and coming on here, jim, thank you very much carl, my pleasure thank you for joining us here. We love it. Sarah, over to you all right thank you, carl. See you at the top of the hour want to give you a check on where the major averages stand dow is up. Although, weve seen the gains more than cut in half really over the last hour or so up 38 points still most sectors in the s p 500 are green lead by Communication Services and Consumer Discretionary welcome back stocks are trading at the worst levels of the morning. They look for the sixth straight day of gains the best performing group so far today is Communications Services now trading above both the 200day and 100day moving averages, longer to near term measures of momentum facebook is a big part of that story due in part to positive comments that is lifting alphabet as well a key sector to watch in todays trade. I send it back down to you at the New York Stock Exchange. Yeah, were watching the gains. They faded a little bit. Dow up 17. Halftime report coming up in an hour. Well be here well kick around what dohm is talking about. The facebook upgrade is interesting from moffett nathanson, highly respected firm they list four worry points in the past when they downgraded the stock. They say those eased now which is why they upgraded it. April apple is up 10 . Financials led the way in june as well. Well assess where were going it will be interesting to see if they can escape the overhang of regulation and the political football going into the election. Yeah. Whether its Election Year bluster or if its really something that has legs. Well see. Coming up on closing bell, we have another analyst making a big call today, the one that downgraded beyond meat hell be hear to break down the call he has a good record so far. The stock was up 113 since the overweight initiation. The stock is getting smoke today. On the downgrade. The person wall street turns to on politics, ian bremer predicting a geomill recession and also more on halftime. Carl, whats up next from code sarah, if you come to code, there is one person you want to talk to and that is kara swisher. We have her live next when were back in scottsdale [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. That have made the rx crathe leading luxury suvogy of all time. Lease the 2019 rx 350 for 399 month for 36 months. Experience amazing at your lexus dealer. Tthis is where i trades. And manage my portfolio. Since i added futures, i have access to the oil markets. And gold markets. Ok. Im plugged into equities. 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