10year yield is below production broad base slow down in demand chewy debuts at the nyc and biden verses amazon. A lot for investors to digest today. Retail sales is the latest thing. I these are the people who ae focused on the feds. There is to reason to cut now because retail is not that bad may was okay not great, not bad what matters is this book. And it is significant because hock t hock tan missed by 2 billion revenues thats the president a billion of just the overall slow down. Now we are starting to get it. Now we are starting to see why the fed has to be worried. 22 billion in sales and it is being heard. That means everybody is being heard. If you miss what hock tan said last night, you got to listen to this piece in the Conference Call. It is clear that the u. S. china trade conflict including ahuawei is creating economic and uncertainty as a result, volatility have increase and our customers practically reducing inventory levels to manage risk. Maybe this gets the white houses attention. I just think the president resolves it so great that he does not care. Remember he did have a photoop. That hock tan in that call was so subdued wow, hoch k is down. Not the one you interviewed i happen to love the guy. A lot of the data center was above plan yeah things are bad. If the president knows broadcom, if you miss that, you have to make a decision, i want to bust this huawei. Hock tan is a cache to my decision to trash huawei hock tan is not going to win 100 billion company, 5g, something thats important for 2025 dominance a lot of work for huawei the president identify huawei is something that does not fit. The xi for life stuff. The president s trade team i know people think that periodically they think some of them are reservation, okay lighthizer is not. Huawei is the Achilles Hill what about nvidia and amd i would say nvidia no and amd no because they got great gaming mankind has to be inclusive across huawei. I trust the president so much on this i think hock tan misjudged the president s results on qualcomm. You never have a lack of confidence hock tan must see the president like all the other president s. He listens and says chinese are paying for our tariffs and solving our budget and well destroy huawei everybody who has huawei as a big customer, theyre going to miss their numbers you are saying hes not going to listen to huawei or the 600 companies that wrote this letter to the white house that includes walmart and costco, nothing . No. Why would anybody buy this market the answer is a lot of people feel that the more he does this, the fed is going to lower rates. The base loves this. The more we do this, the more well have dairy queen on mad money, i am going to start making fmak making furniture for the United States the media mistrusts trump, too trump is about bringing the chinese to their knees we are worried whos going to make these pieces of furniture and how much theyll be paying later. He has to humble xi ahead of the g20 and Achilles Hill is huawei someone thought about this and i dont know who thought about this at the white house, my gosh, how smart is this. Thats the biggest tech company. It is the peoples republic of huawei. They have a lot of members of the party. I am not talking about the pajamas party. I am talking about the communist party. This is the way you get. You are mr. President for life this will be tough for xi. When bfa had a position this morning, they see s p ahead of g20 buying semis and resources and chinas property names theyre going bullish in this meeting. Thats one way to look at it. Remember how i feel about you have every right to be wrong i think you get a chance though. Micron is down from 43 to 31 obviously it is not going to make the estimates it is going to be lower. Micron and worldcom is a second half combat. The president is not listening to anyone other than a couple of very hard lying people on the white house. Speaking of dice y, well watch that game. Navarro wins because hes funnier and hes greater on tv the president loves it hes about a search and destroy mission against china. You read the piece on navarro hes like thisun a foul. Hes charming and witty and in charge. Enjoy. Chewy is set to make its debut here at the nyc so far it is quite a year. Beyond meat has the best opening day of the year. 90 gain yesterday the company ceo talked to us about the road ahead on this desk on thursday take a listen. The mark is choppy in general. So there is always a risk. We are not here for day one or the opening price. We are here for the long hall. Thats how we think of the business i think thats in general, the markets are good reception is great opportunities are amazing. The growth is high i think this is a greater opportunity for us to have that growth while gaining the market trust. All right, i have a feeling you like chewy here. I like chewy. I never take these hats ever this one i am going to wear. I think chewy may be it. This is the best on beyond meat. I got people say when and when i want to buy chewy. How great is chewy . The ceo send mess me a picture hes stupid as wood. As a matter of fact he is. And then nvidia. Look at this. This is one of a kind and nvidia, i know nvidia is down this morning and it is painful nvidia is hurting. How about these pictures everyone my wife who dismissesp all the things i do, she says this is fabulous i am on board. You dont think theyre trying to get in with you by actually painting your petpets it workedworked no, i dont believe in them because nvidia is so old, we got to give them special food. You know what we give nvidia once we get in the car cbd. It is great, jim what does that have to do with Business Model and the way it is priced today how was the play . Here is the deal with chewy. The subscription of economy. They are owned and they have a little ownership this is from amazon. People should understand they do these and they do 40,000 of these. Theyll send condolence note if your dog dies. They care passionately about the health of your dog it is a remarkable company remember pets ten years ago, they slept in your basement. All my pillow you used to sleep without a pillow i have a picture of my wife sleeping on marley but she asked me not to post it. It is going to be a busy and loud day when we come back, joe biden is speaking out about amazon and the Company Responds on twitter. Well talk about that. Take another look at the premarket here highest close since may 6th as we are coming up the first gain in three days. Dont go anywhere. Johnson johnson is a baby company. But were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. You should be mad they gave this guy a promotion. From the day youre born you should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Both are a little better than expected. Look for revision for q 2. Theyre going to make a big difference well get a lot better numbers by the end of the session of all things being equal back to you, quarrecarl look, Morgan Stanley is showing things are very weak when you look at what stocks have been strong this week, procter gamble, pepsi coand walmart, these are signs that are slow down. Theyre not signs of strengths i think we have some people feel that retail sales are good it is such a mix picture it does not lead to a rate cut the more broadcom you have then that forces the stand. Some factory struggles and others are not it is very mixed does oil show you that the economy is slowing we have these incidents. The pictures are quite shocking about what went wrong with the tankers. I tell you that the u. S. Al z it shows you not a lot of strengths for the economy. Thats the two sides. The response is about our production they just cut their Global Demand yes, there is a lot of electric car the Global Demand is weaker. I think it is going to be a push those who wait for the fed the longer it put off, the more oh, we are fine. I dont know biden takes a swipe at amazon via twitter. President ial hopeful says i have nothing against amazon no company is paying billions of dollars on profit. We need to reward work and not just wealth. Amazon quickly tweets back, we paid 2. 6 billion in 2016. We pay every penny we owe. We have 200 billion investments since 2011 we assume bidens complaint is with the tax code and not amazon loser attack. Do not attack amazon the way people feel with amazon, it is cheaper and faster it is a bad call binomial dy bi. He feels there is some issues involving the post office. Look, you dont go after the company that keeps the prices down he must be tone deaf if you want fair game, go after the faangs by the w it reminds me of gundlach last night calling him dinosaur joe. Gundlach can be creative. Yes. They aint paying a lot of taxes. I think people like amazon but you know the press hates facebook you dont trust Facebook Facebook decides to issue its own currency and people want it. In facebook we trust come on. The media should realize it. Is it with the ipos as it is with faang. If the huawei world were in, were not so dire, would this thing be performing the way they are . No, they would not. You better watch apple today tim cook remember the president and he has to hope that the president does not turn against him and put the tariffs on him he has to hope that xi does it for the most part, faang is so perfect faang was created and have no chinese exposure stop attacking faang netflix may be destroying disney plus. Disney with the best start to the year since 2000s bob iger. He has not been saying why dont you say more positive things cramers mad dash in a few minutes and the opening bell dont go away. osamah cancer is. The ugliest disease mankind has ever faced. 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. Opening bell in six minutes, jims watching ge. When my second daughter was younger, i did something wrong he says dad, you are a big me meanie i think if you are genie today, you would say steve sousa is a big meanie steve tusa there is no commercial success here it is all bragging theyre buying business. Dont bloelieve it. It is not real theyre taking share the wrong way. Dont believe this move. It is a meanie now, i happen to like him very much people are going to talk about success in winning orders. He says dont believe it it is a phony commercial success. I am waiting for ge to respond ge also has to be ge tusa, i wish we would have more. This one was the funniest of all. Commercial success with quotes around it. Everyone is buzzing about how mean hes becoming hes a sweetheart. We are learning more about him in the recent days he says do not believe a word they say about their success it is all being bought i am waiting for him to say my great friend. Watch ge and a bunch of other names we have not gotten to. Opening belln femite ia w nus. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Rather than worry about how to pay for longterm care. Brighthouse smartcareâ„ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats aheadâ„ you got a dog on the balcony. You are watching cnbc, squawk on the street. We talked a little bit about that company it is getting crowded in here already. It is going to be the loudest. I think people will understand that you will go deaf, occupational hearing we talked about oil and broadcom china did not disappoint investment is a miss if you are getting the rush to get out of china continues. A lot of companies are chinese out of china i never really suggested, we should do anything you and i should do our show in vietnam because this is the greatest boom of the history of the world as so much business is going to vietnam they dont like each other they have always been at odds with china lets get a look at the opening personnel abell and or. It is chewy celebrating its ipo today. Well talk to the ceo in a few moment at the nasdaq, Helios Technologies people love their pets. Keep an eye on chewy and the se semis. The names to watch you have mentioned. You did mention nvidia. Sometimes i find it is great to have i was out there. Jensen wong gave me an identification for nvidia. Nvidia can go through the gate any time into the headquarters here is the issue. Nvidia is trying to buy melenox. The chinese want that combination and it is for everybody. That acquisition is the one that i think is the test of whether china will show any white flag i dont know given the huawei beat down i dont know you dont know what the chinese i dont know if they are reeling or they are saying erickson is so halfless it is going to be killing it nokia in finland samsung is going on strike china is cutting tariffs on imports from canada and germany and japan. Theyre going to try to make friends quickly including europe i am waiting for the president to attack jeerm agerm, whats taking him so long . Marco rubio sent a letter demanding information to congress about investing in china. We know that cutting the supply of u. S. Capitol markets would be another blow well, i got to tell you something. You are messing with Henry Fernandez if you try to get information about msgi Henry Fernandez is one of the great diplomats. I am proud to call my friend if you think he does not have rigger expiration for what hes done you simply do not understand that company mr. Fernandez is fantastic Henry Fernandez is smarter than i am they deny the request for exemption from tesla and uber and gm theyre not giving anything. No, theyre not if we have not talked about tesla lately china is so important for tesla. Thats what demand is. Everything is influx everyday i come in and i say where are we hitting the chinese . The chinese are not hitting us, why . We dont do that much business with them. It is boeing boeing is in phases. Nike is partnership with the ministry of sports and starbucks thats been the hottest and apple, apple is the one that is the changer. I think that apple you are really cutting your nose despite your face. Apple is like apple is like attacking amazon joe biden, what did he call me jurass jurassic so mean does that mean i am sleepy joe . Not getting into the name calming. Facebook you mention best s p this morning getting back. Paypal. Dan showman did not want to buy paypal they are launching a big Advertising Campaign to rebuilding some trusts i think a lot of it is also behind the scenes and talking to people facebook has been bunker company. Theyre coming out of the bunker and that stuff is going to fly above 180 the third most followed stars on instagram is going after the company, selena gomez is joining live with kelly and ryan explaining why she no longer has the app on her phone i used to a lot but i think it is becoming unhealthy on me personally for young people including myself to spend all their time fixating on all of these comments and letting this stuff in and it was affecting me and makes me depress and not good about myself and look at my body differently and all kinds of stuff i actually dont have it on my phone. I have it on someone elses phone. 152 million followers. That was such a great under writing. You are fighting the tide of the history here my daughters does a lot of youths her view is probably right in the end it is the march of Time Facebook is dipping out of their crypto you dont think some of these have a chef lishell life i remember Myspace Instagram stories have life. I dont think people are tired of it. I think people spend right before they go to bed, they look at it and they have their little groups selena gomez, i will match her against all the influencers. The influencers people want to be influencers. Shes right, what a terrible thing, it is difficult to be influencer facebook sets the agenda not the phony one with zuckerberg if they start making the calls around and they get to crypto. You cant bet against facebook they have too many followers they should have fallen apart, carl they should. They have escape velocity is what you are saying. Theyre just bad. Selena gomez now i want to look on facebook to see what people are saying about selena gomez. A couple of things on media disney is having its best first half in almost two decades the reviews for toy story four are really good. Yeah, pretty cool we got a call over rosenblatt for comcast. This is a funny time. You keep going back to disney being 110 or 105 his standing on wall street is incredible he lays out a 2020 vision with a valley and people own the stock. Thats demand people trust hes the antizuckerberg. Another 11 here. I just stopped and listened, you are a winner you are a believer . Matching freelancers it is not why beyond meat continues, fascination, does not stop tyson, june 20th, i think i under estimated the power of that brand. Millennials love rotein, tyson was a little conduluted for the press. Mcdonalds at 200 today you are watching whether a big qsr, sources from beyond or tyson or nestles. I think they should be calling tyson begging for their plant based mcnuggets. It would be explosive. Be there or be square. Thats it. It is the latest test of the tech unicorn ipo market, thats two weeks. The online retailer owned by pets mart is beginning to trade this morning dom chu is on the floor. I see what you did that yes, you too, jim we are sitting in front of post five right now this is where much of the action happening today around the opening bell and closing bell. Because of this big ipo, in terms of the deal, this is an upside deal, this ecommerce platform will price about 46. 5 million shares of 22 billion per share. Thats up in the range of 17 or 19 and then it was 19 to 21 and 19 to 21 for 41. 5 million shares and now it is 46. 5 million shares if it goes off at this range and target price right now, it will be an 8. 8 billion company this is going to make it the largest pet e commerce retailer out there. It will be still owned, 70 something percent by pets mart again one of those advantageous of the company we know how big of a market it is it is massive. We should point out, this is coming at a good time for ipos the renaissance ipo for etfs it has now doubled the s p 500 over the course of this year today, period. That means ipo market is viewed as healthy right now, relative to other parts of the market given what we have seen in term of spelling out the broader s p 500 and other major indices. If you look at the ipo coming to market right now renaissance says 65 companies raisiing around 26 billion they estimate 60 of those are above its price. Back over to you well, we got it i am telling you, i have never seen anything like it. People have said that yo you congratulations thank you when i got these, i thought it was one of a kind thing how many of these do you make for people each year last year we sent about 50,000 of them last year how could you make money if you do that . We are an experience driven company. This is not a cost it is an edngagement mechanism. They show up at your doorstep unannoyancu unannounced and you create memories people talk about them it is a motive category. Do you have 90 we have two third othirds oe company of subscription. I cant believe the loyalty that you have. Given the fact, these are beautiful. These have to cost you as much as four or five years in subscription, no we think of this as an experience spending. We have this because we want it, not because we need it in some way. Once it gets out there and it shows up in your doorsteps, the engageme engagement they go from 5 or 6 or 7 this is what does it this is the category condolence note pet is the only category where consumers view themselves as a pet parent. The only category where consumers do that is kids. I have a stupid son and wife. I am curious. Help viewers understand your argument is that pet ownership is under represented in the growth of ecommerce, right thats absolutely right give us a couple of numbers on that. First of all, today in the United States we are only 14 penetrated from an online point of view. We are penetrated about 10 of the household. We have 11 million customers, we are growing fast and engaging them hard and they stay with us. The engagement has been really well our investors love that and we like it. You are a veteran and you ran amazon fresh can you talk about any lessons that you migrated from that place to here . I am a lifelong loaner. To bring to the table is the ability to scale a beautiful boutique you scale it without losing presentations and you hire the best and you do it over and over again. You got two classes of stocks for some that means, it can mean undemocratic and it lets you to do things that perhaps are not by shareholders. Why two classes . Duo class structure is pretty common these days and it gives us the ability to focus in the future you are doing it because you can essentially, right thats what the market will bear at this point what about the idea that when i looked at our site, i had no idea which ones are the best or which ones are not i had no idea exactly what the cost of shipment was please tell us about it. It our shipment is what you have seen, as we gotten big fast, we gotten fit fast we have a dense network, predictability of we can get it into our customers fast and reliable matter. Thats how we make it work how do you know it . You keep track of everything you just know things, birthdays and things like that we have a ton of data when you contact us, you are giving us profile, thats an amazing way to engage with you we talk to you at Customer Service. We have 11 million customers but we manage 27 relationships between pets and pet parents thats an incredible amount of data and facts we have on base medicines are a thing that we can do we spend fortunes on our pets and not reversible are you friends with vets we are in the Healthcare Market now we are keeping the Veterinarian Community in the center of the equation along with pet parents. We really want to lean into close that loop. Investors when they think of ipos, think of a pet name back in the day and it is pets. Com. Have we learn anything from them the company was 20 years ago. Look at the way ecommerce and inputs are changing. Look at our sticky mess and the number of customers we are attracting and the fact that we are serving greater than 90 and the fact that customers keep oncoming back to us. You are saying data is more mature and platform is more mature and consumers are more mature absolutely. The necessity for desire and continue to engage, we just close the loop better than anybody else out there nvidia has a problem. Hates being in the car, cbd crackers have solved that. Where are your cbd well think about it in the future given the program we believe offering the best assortment, we are focusing on expanding assortments and cbd is not what i am thinking of. This is interesting the private brands, you are pretty good. Private brands is this like a kroger where they have a private brand but it can coexist or costco with kirkland . We take an approach with private brands we work backwards we have several developments and a tremendous phenomenal brand. Our brand is frozen thats how we think about it. Why did you sway the dog thats with you . Why is the dog not up with you is there some reason you dont think the dog should be in the picture . Great point the geography around the world how much do you put on international . Right now we believe that pet parents are more of the same everywhere than the United States, of course. We believe that the platform, our Business Models, our Team Strategy is extendible internationally. For now, we are focusing on the United States. I will come back and talk about macro. Macro if there were to be a downturn Consumer Confidence sentiment and spending is this something Counter Cyclical or is the last thing that consumers could cut spending on or could you graduate down or take care of pets the way you used to this category grew 6. 2 , right . The other fact that pets are needed more in q4 and pet parents buy more millennials they love their pets dont they. Millennials. Theyre unstoppable. You said you call their vet, you help contact the vet for appointments and all that . Yes the guy is youre like i think it is an amazon thing. Thank you for the pictures thank you very much. Wait for the opening trade. Thank you. Ceo of chewy when we come back, ed heimen will talk with economists on wall street, trade tensions, impact on the markets and more as were down 61 dont go away. My old friend arkness, announcer more details incoming involving volkswagen and the growing scandal. Dissatisfied customers filing complaints against the german auto maker. Because a vision softly creeping left its seeds while i was sleeping and the vision that was planted in my brain still remains within the sound of silence in restless dreams i walked alone narrow streets of cobblestone when my eyes were stabbed by the flash of a neon light that split the night and touched the sound of silence watching shares of chewy today as they open at post five. The latest in a series of ipos getting outsized attention at the nyse dow down 76 on weakness out of semis. Were back in a minute introducing the first of its kind lexus ux and ux f sport, also available in hybrid allwheel drive. Lease the 2019 ux 200 for 329 month for 36 months. Experience amazing at your lexus dealer. Im not really a, i thought wall street guy. Ns. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade jim, whats on mad tonight . Facebook, there goes Gary Friedman from rh, what a great quarter he had michael neideorff, more about health care. Facebook, beyond meat, it is back, bigger than ever facebook 181, yeah. Going higher. Going up in the not so pretty tape. Great faith in facebook well see you tonight jim cramer, mad money, 6 00 p. M. Well wait for chewys opening trade and talk to the mpycoans cofounder were down 9 . Its gotta let new data integrate with data from our existing systems. Be able to pull from reservation platforms built 20 years ago. And also be able to use apps to book superpersonalized trips on shiny new phones from the future. Plus, i need freedom to move my workloads wherever, whenever but manage it all from right here. And thats the cloud i want. Simple, right . Expect more from your cloud. Ibm cloud. Welcome back to squawk on the street. Rick an sesantelli with final braeking nbraek i breaking news of the week. If we look at some of the important aspects of this report, one year inflation outlook at 2. 6 that is down. 3 from our last look remember, it is preliminary, and the fed is meeting next week if you look at 5 to 10 year Inflation Expectations, they drop from 2. 6 to 2. 4 this could be something you want to Pay Attention to. It is not the final number we also have our april read on business inventories, and it is up half a 1 which is exactly as expected so there has been a lot of talk about inventories, and broadcom and the tech side. But on the business inventory side, these veinconvenienventoip and well get positive revisions to Second Quarter gdp as the day progresses important numbers, thank you. Welcome back to squawk on the street. Im Carl Quintanilla with sara eisen, david faber has the day off. Watching a bunch of things, china trade, tech ipos, chips and oil in iran. The wolf of wall street. Chewy debuting here at the nyse. Well take you to the first trade next the oil blame game, the u. S. Accusing iran for the tanker attacks. We had the latest details. Semis sinking, broadcom crushed after slashing revenue well break down the results another Company Going public today, this time Online Pet Supplies retailer chewy opening at the nyse at post five indication for that well turn to dom chu what youre seeing now is the post, 26 to 29 per share is the initial indication for chewy this is a 9 57 a. M this is a stock that many traders ive spoken to down here dont expect to open anytime in the very near future this is it will open this morning. There is a feeling among them that they want to get this right. Jpmorgan, lead banker on this particular deal, still trying to finalize this book, figure out who wants to sell at certain prices at 26 to 29, there is perhaps a bit of demand out there. You can save more than a bit o demand at 26 to 29, priced at 22 per share. If it goes off at the midpoint of this very early, very just hypothetical indicated range, 27 1 2, youre talking about a valuation for this company around 11 billion again, too early to tell anything, these are just indications of interest right now in whether or not they can open at a certain price, very early in the process, but well see if this changes later on well bring you more as we know more for right now, it appears as though, sara and carl, that there is a good amount of demand for this, above the 22 ipo price and, again, 26 and 29 is the last indicated range, guys back to you. Dom, thank you very much. Talking about the broad ipo wave, Renaissance Capital i ipo etf manager Kathleen Smith and mike santoli happy friday good to see you. Starting to detect a pattern with new issues. Priced above the range, open relatively strong. Thats been the rule i think it is how you draw it up i think beyond meat is a singular phenomenon. It doesnt have to do with general Investor Sentiment or where the market is at now just kind of hit this zeitgeist a little bit when it comes to Something Like chewy, you always usually ipo sector, you have some, private equity exits, some young companies, i think it is a decent mix the things you would have been worried about coming in this wave have not come to pass one would have been every deal gets bought very aggressively and goes to the moon and creates this real cycle of froth and speculation. Uber and lyft told you thats not going to happen. On the other side, the market says, no, sorry, door closed crowd strikes of the world, start getting criticized thats the inklings of the starting if people say we get greedy that could slow things down what is it to you that stands out about the winners, the ones that price high, healthy demand, see the spikes, is it anything they share in common you think is attractive now for wall street yes, for sure i think that investors are really looking for growth and a slow growth economy. It is really important these companies that were seeing that are trading so well have strong growth including chewy. And crowd strike at 100 beyond meat, 200 growth there is some bit of an explanation for the runups. In addition, investors want to see profits on the horizon and the ones that are already profitable, if you look at zoom and how well zoom has traded, it is because that company came out with 100 growth and profitability at the same time so growth and profits and i would say for many of them that have the cloudbased companies, it is all about recurring revenue and land and expanse strategy, chewy has it, for example, youre selling to a customer and able to sell even more to that customer. And the enterprise space, thats a strong strategy for Companies Like crowd strike and zoom how do we extrapolate to her point, kathleens point, how these would be doing if we werent in a world where broadcom was warning about second half, cautious oems i think it plays both ways a crowd strike, one reason it does so well is because it is none of those things it basically hits all of the favorite buzz phrases and cat g egories of the day i think you have to keep in mind these companies season after they go public pinterest, good example, not affected by any of these things, comes public, 24, first trades, goes up to 34, looks really exciting, all the way back down, now in the mid20s again thats usually kind of the way that the market digests these deals. Theyll find their level after they get through a couple of quarters of feels like total Addressable Market is a key buzzie phrase with a lot of these. Beyond meat, demand to the moon, especially if meat eaters start switching. I had no idea. The u. S. Pet industry is a 70 billion industry, 42 of that is food, 22 supplies and medicine over the counter investors are asking is this the way to play it when you see numbers like that . You have this tailwind for the category, and, yes, the question is this the right way to deliver lets listen to liyft and uber talk about total Addressable Market the 5 trillion number. Exactly i think chewy has been around a while. The question with chewy was always why are they still an independent company, meaning it is not amazon at this point. Something about the category or is it actually they havent really been run for a profit on the bottom line, is it going to be that much of a bonanza. Kathleen, do you an answer why ride sharing is the answer this year . I dont know if people understand what the model will be for ride sharing as opposed to Online Pet Supplies in the case of chewy, it is a Market Leader online and they have that strong recurring revenue, they arent yet profitable and i think thats the issue with chewy. Its Gross Margins are low, only 20 , because it is expensive to ship food, which is a large part of their product that they deliver. And also, you know, Parent Companies highly leveraged pet smart owned by bc partners is real interested to be able to raise cash to pay down debt. So there is a couple of things going on with chewy, but i think the marketplace understands that this is a strong Growth Business and they see that if chewys can increase the Gross Profit Margin above the 20 , which is in models on wall street models, it will be profitable and so it has something that investors understand. I wonder, mike, how much it is a test overall for the ipo market you cannot escape the comparisons to pets. Com. Late cycle, not profitable, in the pet business there are tons of differences too. But that was so indicative of the bubble popping if we get through this well you can turn it and say the reason pets. Com is a punchline is because it wasnt really a company. It was a tv commercial and sock puppet and idea and concept that would be online and wasnt delivering much of anything. Chewys has been around for a long enough time now the question is, it is just a mature business that is just a middle man delivering cumbersome stuff to people in a relatively expensive way. Different question than are we just paying for web traffic on a pets. Com website. Fascinating as we keep our eyes locked on post five have a great weekend. Thank you you made light of the Customer Service aspect, how they care about your dogs. If you have a diabetic dog bying pet insulin on chewy. Com, 9 cheaper than the vet this just in from my mother. When we return, the u. S. Blaming iran for the suspected tanker attacks in the gulf of oman well break down the details next we are awaiting chewys first trade at the nyse. The cofounder ryan cohen will stalk to squawk alley about this ipo here i go again on my own goin down the only road ive ever known like a drifter i was born to walk alone youre a drifter . I thought you were kevins dad. Little bit of both. If you ride, you get it. Geico motorcycle. 15 minutes could save you 15 or more. You still have service . Call the Insurance Company sfx [phone ringing] 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 be go[ laughing ] gone. Woo hoo. Welcome to my house mmm, mmm, mmmmm. Ball. Ball. Ball. Awww, whos a good boy . Its me. Me, me, me. Yuck, thats gross. You got to get that under control. [ dogs howling ] seriously . Embrace the mischief. Say get pets tickets into your x1 voice remote to see it in theaters. Growing tensions in the middle east after the alleged tanker attacks were joined by roger djuan for energy and Financial Markets and helima croft rbc head of Commodities Strategy helima, i feel like this story is right up your ally. You know youve been following the middle east tensions so well now that we heard from the u. S. And iran, both blaming each other, things are looking increasingly tense, why are we only seeing a third of a percent pop in oil prices. I think the market is concerned about demand you have the iea out this morning warning about demand contraction, being oversupplied in 2020. We had a physical disruption of oil to date. I think the market is taking a wait and see approach. I think until we can get beyond demand concerns, there will be a hard time pushing prices much higher unless we get a major disruption. Where does it war of words go the key question is what is the u. S. Response going to be . We have come out and blamed iran for attacks on six tankers in the past month are we going to intensify sanctions . Are we going to deploy more military assets to the region . I think the u. S. Response will be very important and also what do the iranians do next . Those are the factors to watch in terms of where the prices some reports of assets moving around have you seen anything that suggests where deploying assets to a region in a significant way . 1500 more troops are being deployed to the region some reports that pentagon officials have asked for up to 20,000 more to be deployed President Trump has been reluctant to do a Major Military increase in the middle east. He keeps saying he does not want a war. If you have more tanker incidents like this, if you have more attacks on saudi infrastructure like we saw with the attack on the airport, you know, two days ago, those type of things could force his hand how are you balancing the rising tensions in the gulf with the rising supply including the ieas report today that shows u. S. Shale continues to pump a ton of oil. The increase in shale is important because it has really changed the psychology of the market we have really moves from this narrative of supply scarcity to supply abundance it changed how we need to think about oil markets. This is a good example, this incident doesnt rile up markets enough because the sense is supplies always on the way and it is rising. What does that mean for prices that theyre not going to rise it means that these incidents are not enough to shake up the complacency were seeing in prices and what helima said is important. The narrative is about the destruction and slower demand emerging everybody is reducing the demand forecast, the demand data in april and march were very bad. So i think were still into that demand destruction and narrative and slowing growth we would need this incident to stop the flow of oil or significantly slow it down to have a Significant Impact on prices. How much of the forecast today from the International Energy agency had to do with the lower demand and the Global Economic worries out there, the trade war. And how much with the rising supply i think if you look at where we were at the beginning of may, we look at a situation where brent was going to 80. I think the resumption of the trade war, stock oil rises in its tracks if you get better optics out of the g20, not saying we will, but that could be something to watch for that could make geopolitics become more salient to the upside. Right now i think it is weighing prices down. Data tracks nice report out today. They say since 1970, you havent had a recession in this country without oil prices doubling first. Can you think of any scenario that would get us to 100 you would need a big disruption in the persian gulf thats the only way to get there. We already had quite a lot of oil out of the market with the iran sanction and what is happening in venezuela and that has not been back to the market. The demand narrative is more important and the growth in shale remains here you need big disruption to push prices up. Would that do it . In terms of what you would see if you see tankers being sunk, if the u. S. Has to deploy the fifth fleet more aggressively to keep sea lanes open, if you had an attack on a major facility like the abkake facility, those are the type of things that you look for a real breakout in terms of price. Are they able to close the strait at all . No. They probably cannot close the strait iran, i mean. Iran. What they can do is they can basically do one off attacks on tankers, they can mine the straits. They can sink tankers. Already shipping companies are sounding the alarm about the security of these critical choke points so you can see this situation intensifying and affecting prices, but i think right now there is complacency if this trend continues in terms of tanker attacks and some getting sunk, i think oil prices will move higher. What does opec do about all of this . The new forecast today from the rising tensions between the u. S. And iran well, theyre in a difficult situation. On one hand, they have to look at the weaker demand and on the other hand the disruptions i think that opec meeting which is still on an undeclared date if you want is really important. They have to wait these two things it makes the Market Management quite difficult and also the relationship between the Different Countries and how to manage the geopolitical waters here quite difficult i think opec is in a wait and see attitude, most likely do nothing and wait to have more information before acting. I think opec will roll over the production i think at a minimum they will roll over 1. 2 million Production Cut the question is, given many of the countries need higher prices, do they potentially signal willingness to do more . You think is the bottom line on this that the trade war matters more than the tensions with i think a trade war matters more than a potential shooting war f you get a real shooting war, the dynamic could change. What is your target, roger . Near term and end of year . I think well stay into the for brand unless we have a shooting war, then it will go higher than that opec and hold the floor and i think demand in second half will look better at least in term of the numbers than the first half. What is your target we see a if were in a situation where trade warfares continue to escalate, brent will struggle to get out of this low to mid60s geopolitics takes over, youre back into the 70s. Thank you, both thank you. Wti, 5230, basically flat. Well, what is not flat is chewys indication now 30 to 32. 50 over at post five we talked to the ceo a few moments ago. Well talk to the cofounder later on this morning. The latest in a series of high profile new issues some people are pointing out there is a ticker chuy which people might potentially be confusing the kicker with. Up 4 . Well see when this trade opens. Big crowd today at the nyse. To break, look at the market and broadcom, getting crushed after slashing revenue guidance for the full fiscal year not as low as the premarket indicati indications. Well break down the earnings. Down 45 points time for the etf spotlight chip stocks. The smh under pressure this morning, heading for the biggest decline in about a month the biggest laggard is obviously broadcom, taking a hit after slashing its revenue guidance last night the stock is it on pace for its worst day since back in january. Slightly higher. Just barely for the year other Big Semiconductor names also moving lower on the big wa warning from the ceo broadcom on the Conference Call on demand. Basically volatile and falling as a result of the trade war when we come back this morning, were awaiting chew whys first trade at the nyse. A day after fiverr turned in the third best ipo debut of the year well see how chewy performs when we get that open. A check on the markets as well, touch the 50 day, which we have been trying and have been closing above in recent days down 53 points well talk to isis ed heimen about the move in oil and the d xteewh wco bk. 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. Here is your cnbc news update at this hour. We are following the ongoing situation in the gulf of oman. The iranian president issuing a statement earlier this morning saying security in the persian gulf was of high importance to tehran President Trump will not fire adviser kellyanne conway, he made that comment earlier today, this after yesterdays government watchdog recommendation that she be removed over hatch act violations the president said it looks to me like theyre trying to take away her right of free speech. Across the pond, former foreign secretary Boris Johnson is the frontrunner to be the Prime Minister and tory leader the first round of voting took place yesterday with johnson doubling the second place vote getter next round is expected on wednesday. A huge congratulations to the Toronto Raptors who beat the Golden State Warriors 114110 to win the teams first ever nba championship the raptors entered the series as heavy underdogs, and managed to win every road game in the series was a game well played that is our cnbc news update for this hour. Carl, back to you. Unbelievable finals, rahel, thank you very much. Were down 45 points cut our losses basically in half since the open interesting action semis, big piece of this today, with the china data which did disappoint it a large degree and had some argue that maybe the stimulus we saw earlier was not enough on the bright side, good news on the u. S. Consumer this morning. Retail sales came in light for may. Still up about half a percent versus the. 6 rise. Big revision higher for april. That used to show a drop and now shows a gain most of the groups within retail sales, 11 of 13 major retail categories were actually higher. Online games the strongest we have seen since january. We had santelli earlier in the hour report the Consumer ConfidenceNumbers Holding in there very strong chewy, now it is 32. 50 to 35 something to watch closely this morning. And in the meantime, our latest all America Economic survey asks consume ferz products that are made in china affect the buying decisions during the trade tensions Steve Liesman has the results. Do consumers care if it is made in china . The answer is not so much. They care less than they did when we asked the question 12 years ago. 800 americans polled across the country. 52 back in 2007 said made in china label made them less likely to buy a product. That has fallen to 34 does it make any difference . 39 said it made no difference back in 2007 5 7 now say it makes no difference if it is made in china. Republicans are more likely to say it matters but, remember, republicans in general support the president in 80 , 90 area there. This is actually low for republicans. Older folks, 50 to 64, 47 and now rural, 44 care. Younger folks dont care if it is made in china one place where the administrations ideas have resonated is are chinas trade practices fair or unfair only 17 say theyre fair. That is down from when we asked the question back in june 2018 unfair, call it about the same, biggest change in the people are not sure, 27 say theyre unsure the american publics mind not made up here what about whether china is an economic threat. Well, compared to back in march 2016, fewer now think it is an economic threat. It is up from june 2018. You see that both canada and mexico are not much seen as an economic threat. Just want to show you this quote from walter russell. Good job of putting together the politics of Foreign Policy he says first the u. S. Is increasingly committed to a historic turn in the relationship with china as opinions harden on both sides of the aisle. Second, we arent ready for what is coming. I think our data backs that up carl, you can see we have a split between democrats and republicans, rural, urban, young and old. There is a lot of malability on this are we ready for an extended trade war that costs consumers money . I dont think thats the case yet. I wonder if the upshot is that it is not clear that the voting public and the consumer is necessarily on board with this hardline stance that the administration has taken against china. Seems like they dont really care that much about what theyre buying, whether made in china or whether china is a threat. I would say thats the exact upshot i found it very interesting that i like to look at the party numbers. And when 52 of republicans and, by the way, 53 of Trump Supporters agree with that statement that theyre concerned about the made in china label, the other thing is we had jan niffen on. His data backs up other data we have people dont want to pay more for made in america. It is price that determines the way people feel about these things and whether or not they get used to a new regime where they pay more to solve this trade issues, thats a political question that still has yet to be answered. Steve, thanks great stuff. Joining us this morning, ed heimen on his list of the biggest market risks, u. S. China trade war, this inverted curve and the push to curb big tech. Good to have you good morning. Thank you very much have a good weekend. Thats a lot to watch whats number one . I say the yield curve is number one trade would be number two. But i think there are a lot of positives out there. Those are the biggest risks. Trying to dismiss the curve element. Why do you think it is number one . Every time in the past, it worked you mentioned earlier about when you get oil doubles, thats a precurser to recession what happens is the fed tightens and rates go below the fed funds rate it makes me uncomfortable from that point of view has to stay this way for another couple of months, before it gives a real signal. Interesting how do we know if were the fed, how do we know if this is an enduring framework, visavis china, or if this is the hallmark of a mercurial president who could make it all go away tomorrow you know as well as i do, you dont know i think the fed has to go on the supposition that the trade tensions could go on for quite a while. And it is sort of cat and mouse of a between the two but i think theyre going to ease in july and ease a couple of more times to try and get the yield curve positive again also to put some insurance into the system for the trade issue im wondering why there is so much discrepancy out there the economy is booming others say were heading into recession. I get that there is a different impact of a trade war on the Services Part of the economy and the manufacturing part of the economy. Why cant we figure out what the underlying economy is actually doing . I think we can figure out what the economy is doing. I talked to people all the time. What they ask me all the time, well, it is doing well now, how quickly could you get in a recession . I say about six months if it was just to roll over. But i travel around constantly, down in florida this week, every place i go to is booming retail sales, theyre strong and manpower inc. , another way to look at employment, that came out this week. Going straight up. So employment, retail sales, mentioned Consumer Confidence, visual inspection, the economy right now is doing well. In real contrast to china and europe, which is slowing. Given what you just said, ed, why would we cut in july first insurance, but one thing we havent talked about yet is inflation and inflation is really coming in low this week you got the core cpi, it was low, import prices decline a point and a half, we have eight Core Measures around the world. They all slowed in the past year and oil is down now. So thats another element as you know, the fed has been talking over and over about trying to get inflation up to 2. And closer to 1. 5 at the moment. This survey now, a few moments ago, the five year outlook, 2. 2 is the lowest in the 40 years we have been asking that question. You got step ahead of me i followed that survey very closely. It is erratic, shouldnt take the 22 too seriously but it is not 2. 8. The fed is looking at inflation rate being well below 2 and i like that Consumer Expectations because you get past the measurement problems so lets say you and the bond market are correct and the fed starts to lay the ground work for a cut next week and cuts in july then what . Can the rally keep on going or is it just going to be more cuts, more cuts, more cuts still have a sort of negative backdrop, but my general advice to people is dont fight the fed. And now you have a pretty clear easy bias by the fed and the same is true for ecb, China Central bank will cut another couple of triple rs and fiscal stimulus you have about as clear a global easing cycle as you will get i think that biases all asset prices up. Russia today australia, that was a big move you think the world is giving the fed cover to do this also the fed is giving the world cover. When they were in tighten, tighten, tighten, they put pressure on other Central Banks to lean in that direction and thats completely gone i will say the australian policy rate is now 1. 25 and the fed policy rate is 2. 50. The difference between the two economies are not significant. The impression i get is the fed funds rate is too high so if we get the cut, or clear signs it is coming what is the upside for equities, and are you a believer that when easing cycles begin, the pain for equities is usually not far behind i dont think the pain is far behind i think as long as youre in an easing cycle, it is generally pretty constructive. But i just have the bias that the path of least resistance is higher for the stock market. I dont have a particular point estimate for where it is going go it is a pretty good environment. All right, ed, were going to learn a lot more, maybe even next week. Good to see you again. Thanks for the time. Thank you bye. Chewy, of course, look at the indications, now 35 to 38 over post nine. Set to begin trading this morning. What do you make of all this ed hyman mentioned the path of least resistance. It seems like the path is to the upside you mentioned 35 to 38, the indicated range. Lets call it 36. 5 as the midpoint at 22 per share during the ipo, this ipo would have made chewy worth about 8. 8 billion at current levels, 36. 5, youre talking about just a 65 gain in the stock, youre talking northward of about 14. 5 billion in expected market value if hypothetically things price at these levels were talking just because we want to frame it, this is a large move for a stock that priced already aggressively at 22 per share. This just signals the demand folks have out there for online pet ecommerce just around 14. 5 billion in market cap the last i checked, beyond meat, between 9 billion and 10 billion. Dom, thanks keep us posted. When we come back, closing the gap. Fathers day just around the corner were breaking down parental leave and what companies have the best policies for dads plus, were waiting the opening trade from chewy well hear from the companys cofounder after speaking with the ceo earlier on squawk on ne re. Dot go away. 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. One technician says there is a trade sensitive stock on the verge of a massive breakout. Find out what that is on tradingnation. Cnbc. Com more squawk on the street coming up. Happy fathers day weekend dads, though, dont expect paternity leave. Why . The u. S. Is the only industrialized country in the world with no National Paid family leave policy. Company policies are all over the map. We did a deep dive starting with the biggest employers in the country. We found that ibm actually stands out for its generosity and paid leave for both parents. They offered 20 weeks for birth moms, 12 weeks for dads and other partners while most of the other Top Employers like amazon, walmart, accenture, home depot, target, starbucks offer three months leave for birth moms, the secondary caregiver, off dad, gets two to six weeks. What else stands out u. P. S. , only offers paid leave for women. Nothing for men. A few companies out there, big employers like walgreens, ge offer time off there is no standard policy. Those are the Biggest Companies in america what about other notable companies out there that are public the leaders tend to be in Financial Services or Technology Industries netflix is particularly innovative with unlimited paid leave for moms and dads. American express deserves a shoutout, 28 weeks for mothers, 28 weeks for dads, thats long and generous within banking, bank of america, another standout for equal paid leave. This is an issue that companies are increasingly coming to terms with jpmorgan paid 5 million to settle a suit, pay back hundreds of men claiming they were denied or discouraged from taking the 16 weeks leave allotted to primary caregivers jpmorgan grants 16 weeks, six weeks for secondary, but with those gender neutral policies like that, dads can feel discouraged or uncomfortable taking that primary care leave the bottom line on this story, carl, we called so Many Companies and what we found increasingly Maternity Leave for the birth mom is a priority. Companies are adjusting their policies, extending their policies, however, that secondary parent, the dads, often cases, not a priority, not equal, nowhere on this issue, and ultimately that is not good news when it comes to closing the gap on pay and on opportunities for women in the workplace. You want those kind of policies to be equal. Just not there progress, but want it to be faster one point David Solomon made at code this week from goldman, not always about the metric of pay or Vacation Time and it is about loosening standards for being named a Certain Committee or certain levels of promotion where you say, you know what, forget those metrics you need to have acquired. Well make room on these boards for women specifically i think hes notable, not just talking the talk but walking the walk an trying to find out innovative ways to even the playing field. If women take 16 weeks of Maternity Leave and men not forced to take any or not allowed, that will take crete a big gap and big decline in the Labor Participation rate for women. Anyway, more on that on our closing the gap series and ill have more statistics. Coming up, were still awaiting the first trade from chewy, a crazy week for ipos first to jon fortt with a look at whats up next. Im talking about the same thing, you see chewy behind me, priced at 22, indicating above 36. 50. Well have the cofounder coming up on squawk alley. We have 90 reups, two thirds of revenue come from our Subscription Program and our customers love engaging with us. Or plan for tomorrow . At kpmg, we believe success requires both. With our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. Kpmg lets get to the Santelli Exchange good morning, rick good morning. Our special guest, like we have nothing to talk about, right if he had meeting next week. Boy, good data today which should give us nice revisions to gdp. Thats right. It was a good one this month. Yes, that should help the Second Quarter its very similar as we started out in the first quarter, looking weak and then we gain traction to the upside another topic, not so happy, maybe, it all depends on what side of the market, we saw Inflation Expectations from the university of michigan really take a plunge. Not only take a plunge, but 2. 2 is the lowest ever in the history of the survey. Consumers expect less inflation now than they did at the depths of the recession in 2008, 2009 there is no inflation expected anywhere in this economy that brings us to the ageold question, is the market going to get an easy and you believe yes, so were not going to debate that because i think they should be stingy what i would like to debate is something you told me regarding some of the meetings in chicago and they had the big fed research gettogether. Yes, last week they had the big Research Meeting one of the things they argued is what the fed should do with policy is come early and hard and then cut or ease a lot, and then pull out real fast. Okay, now, hold on. Dont drag yourself in. I was in new york and steve and i had this debate. I thought the fed should be more like the markets instead of being on the road in one direction, then boom, a road in another direction, like markets, ebbs and flows, and they should take more of that methodology. Absolutely, because the results of their studies was, that is the most effective if the which i is slowing, and you want to get it boosted up, you come hard. You get it boosted up. And then this is just as important, get out quickly take it back so you have the bubble mentality that usually going to say along with it once they start easing, they usually overdo it. Or once they start tightening, they overdo it too they should do three cuts, one hike, two cuts, two hikes. Now were in a hiking cycle. If they would take that market mentality and be aggressive in the beginning, they would get rid of this idea that theyre fostering market bubbles even more important than that is this notion it gets off this game plan that everything is cycled in such a way that the public says, well, okay, if were in a measured tightening or measured easing cycle we will behave a certain way thats usually the underpinnings of the bubble. Absolutely. 2004 to 2006, two years, 17 meetings, the rate hikes were so telegraphed, you still had a bubble mentality because everybody knew to the day, months out, what exactly their financing costs were going to be introducing a little uncertainty will go a long way towards eliminating bubbles. It will be interesting to see what comes to fruition sometimes its like an auto show, you see a cool car but it doesnt necessarily make it to production thank you. Squawk alley gang, back to you. Only you can do car metaphors like that. Thanks very much the market is still up a half percent for the week. Also were going to dive into consumer spending. What is the consumer really telling us were going to talk to jerry storch, former toys r us ceo, also formerly on the board of target and who is winning and losing in this confusing world of retail right now . Were also going to rehash a little bit of did you see a ceo saying mattel is headed for bankruptcy were hoping mattel responds today. Because they probably have a lot of issues with that interview. You guys made a ton of headlines with that last night we should point out that the market cap at this level would be well above beyond meets, close to double. Petsmarts original investment in this company is going to be 5 x, depends on where we are and at 22, that was above the expected range so all indications very, very strong for this company. You know, just the latest, fiber yesterday, we talked about that Israeli Company that is sort of a marketplace for sellers and buyers and digital services, ended up the day like 80 . So increasingly, these fast growing revenue companies, despite the fact that theyre not profitable, are being very well received in this market even on down days like today yes well see you tonight. Yes, see you later. Speakings do s of speaking ow days, its a lot less down now well talk to chewys cofounder do not go anywhere good morning, its 11 00 a. M. At chewy headquarters in california squawk alley is live think of the amazing repartee if i could walk with the animals, talk with the animals and they could talk to me think what fun we would have asking crocodiles for tea lunch with two or three lions waltz with sea lions welcome to squawk alley, im Carl Quintanilla, jon fortt is here. Ryan cohen will join us in a little bit dom chu is on the floor with the latest reporter were tightening up right now. We got as high as 38