The dow has been up seven sessions in a row. S p is up six out of the last seven sessions you are talking the highest closes since late july overnight in asia, the sang high deposit was closed for a public holiday. The hang seng up almost 1 in europe, it looks like now most of those markets are in the green, one exception is the ftse down by about. 1 . If you check out treasury yields in the united states, another big story is what happens to the yields some of that movement started after treasury secretary told us that Treasury Department is looking seriously at the idea of a 50year bond for some time next year. Right now, the 30 year is yielding 2. 28 i saw him later in washington and he started talking about 100year bond for the next consideration. Did you prepare for seeing him by watching the interview we conducted . I did thats why i decided to take the 50 and up theante and ask him about 100. To beat the record, he would have to serve 13 years see, i knew it were you talking about the president or the dynasty he could work for president ivanka lets talk about the campaign the front running Democratic Candidates lined upsi side by sd in houston well go to kayla for an update. Reporter good morning. It was three hours of wide ranging discussion on education, immigration and more the discussion on health care. The cost, the customers and the role of the private sector this moderate divide was on full display. Senator warren was asked whether taxes would go up to pay for her plan, here is how she responded. On medicare for all, costs are going to go up for wealthier individuals and giant corporations but for hard working families across this country, costs are going to go down and thats how it should work reporter more than a dozen times, senator warren referred to her tax as a 2 cent tax as a small option that would pay for a wide array of programs democrats failed to discuss widely how they would hold china to act on trade. They didnt have a clear take on whether tariffs were good or bad. Pete buttigieg attacked the time line instead the president clearly has no strategy when i first got into this race, he scoffed and said hed like to see me make a deal with him. We will see whether democrats can refine their message there if this is in fact the state of play in a few months, guys i didnt see it i started to watch i sue Julian Castros opening remarks and i through in the towel. I couldnt stay up any movement in the top three . Someone moving in or is it still just the top three, what do you think . Reporter joe, it was interesting. A lot of people were looking for some sort of dividing line between sanders and warren who have been sort of attached at the hip policy wise. The only thing that differentiated them is whether they would end the filibuster which is hard to understand. Whether beto orourke could break into that top tier is unclear. He is at 19 in his home state in texas fielding a lot of questions about stances he has clearly taken on gun control and immigration and civil rights in just the last month. Hes someone who you could look to have a break outmoment. She pitched herself as a unifier. She borrowed the strategy booker and harris had been trying to figure out who exactly is going to be occupying the middle of this race. Vice president bieben tri vice preside Vice President biden tried to. I was struck there were virtually no issues about the economy . Reporter it was interesting. When they went to the first commercial break, they said coming up after the break would be requests about National Security, trade and the economy and much more. They did actually spend a considerable amount of time on trade, which doesnt happen in a lot of these debates it could be because they wanted to get to two things like the conflict in afghanistan and what one of these candidates would do there. Maybe they wanted to move on to other topics we cant know. They did tease it before the break but they didnt get there. The afghanistan question had not been asked in any debates to this point that picked up some Media Coverage too what about castro going after biden on his memory. Did that go over well or badly unclear how voters will take to this . It is clear democratic strategists did not like the way castro handled those moments he did it more than once in that moment where he was challenging the Vice President on something he had said a few minutes earlier. He challenged biden saying, is your memory an issue here. He repeated that line several times. Maybe it would have landed better had he said it once rather than three times. That was unclear you didnt think it seemed seemed completely planned which can is why it went off so badly. Look, it is ageism as a result, he gets headlines and we are talking about him. Not good ones talking about what a jerk he was. Kayla, thank you. Ill admit to something funny. I looked at huff post. And at drudge. I dont even look at huff post the drudge poll last time had like it said view results and you have to vote im admitting this i look down the list and im like, im just going to put andrew yang. Im not voting for any of the other ones he was at 40 . Last time, it was maran williamson won right yang had 40 maybe people want that 120,000. Ten families. If i vote for him, am i in the running . No. No. Okay President Trump making headlines yesterday speaking at a republican retreat saying hes working at a new round of tax cuts aimed at the middle class we are now working on a middle class tax cut for middle income people that is going to be very, very inspirational. It is something that i think is what everyone is looking for and will be announcing it sometime in the next year. Separately, he said he would consider an interim trade deal with china even though he would prefer to make it a full agreement if we are going to do the deal, lets get it done. A lot of people are talking about it i see a lot of analysts saying an interim deal meaning well do pieces of it it is not easy or hard it is something well consider but we are doing very well the comment comes after a wall street journal report that said china is looking to break the dead lock narrowing the scope to only trade matters putting National Security issues on a second track. The last couple of days, weve gone wild on the vaping stuff. Did you see the journal today . The frenzy ignores adults a vaping ban will spend smokers back to the pack those are people who made the decision if you have an oped page and devote half of the page to defending vapors or the Vaping Companies they are saying it is a personal responsibility thing, right . If you have candy flavored nicotine products. I understand letting people do what they want to do it went up 75 in use from 2017. 75 when you are 25 off of 75 the next year. Thats a lot of kids and juul in particular was directly marketing towards children do you want to go confiscate the vape beto, thats a good idea im not sending in. We have more to come including more vaping debates and more democratic debates when we come back, well talk u. S. Equity futures and why commerce sales could be weakening and why amazon could be to blame. A look at the biggest winners and losers in the dow. Welcome back to squawk box. Retail sales coming up at 8 30 eastern. Remember the july numbers were sharply higher than expected thanks to amazons prime day sale some are warning now that the august number could disappoint as a result as spending was perhaps fulled forward to july by all the discounts that is something to watch we are on wall street record watch with the dow less than a percent away from new highs. Joining us now, our guests, go morning to both of you i remember the last week of august, everybody was like in a panic that somehow everything was going to be terrible and come back in september and now the opposite has happened. Now the question is, are people too exuberant . The market has been holding straying at about a 17 multiple earnings season is coming up in a few weeks. We are getting to a point where the 2020 numbers are going to start gettingdo downgraded. Im bullish. Maybe hopes too high for a downgrade now. There is margin pressure there is a fed that is likely going to underdeliver next week. Underdeliver because you think the market wants what . And what do you think they are going to get the market wants four cuts over the next year or so the are market is looking past the strong indicators and looking for a more aggressive fed cycle. It seems to be sticking to the script of the midcycle adjustment and nothing more. There is a fork in the road where the fed says we are doing 25 but dont get your hope up for much more. And there isnt a trade deal and we see the earnings downgrade happening and there is maybe a ceiling on the market. You are more bullish, david . Weve seen this story before where manufacturing goes into contraction and the consumer bails it out i wouldnt say im more bullish but i would say i think there was an extreme amount of pessimism being priced in over summer it rewrites the playbook which would result in further margins. People were pricing in a recession tomorrow i think this is classic wall of worry climbing we are going through here consensus is still looking for 10, 11 . We are in a trend growth economy. That is not going to come through. What do you think the fed does i would agree, they send a message that look, weve got the lowest inflation rate. The fed watches north of 2 . Theyll have to address what is happening with Monetary Policy outside the u. S. With trade and reasons why they are extending rates. I think we will have a problem with earnings. Im worried about the headlines. Not only the Third Quarter but looking into the aggressions, those numbers start to come down margins are also starting to come down. Also, there is a limit multiples are starting to put on these. If the number comes down to 10 earnings broth Earnings Growth to 3 growth, prices need to adjust. If we get a china deal, i dont know a christmas time china deal, what does that mean . I think the big risk there is if you are a business and youve operated in this environment the last 12 to 18 months, what does a deal mean to you are you going to ramp back up investment spending . I would argue the answer is no you are saying, well we have a deal today but does that mean we have a deal tomorrow Business Confidence is damaged for the foreseeable future and any sort of rebound. Remember, margins were at 6 in 09 they are at 12 as of last year. I believe it is ongoing and will continue to go on for years. A lot of that bull Market Dynamic was driven by rising margins. A trade war, even if it is a small deal now puts them in th margin stories what leverage do you have in the National Security . Nothing on trade you lose if the security thing has an issue. Weve always thought there was some sort of kick the can down the road that would be one way of rationalizing. Now what have you got . Now that youve given away the trade, i dont know how you would do that. Coming up, secretary mnuchin and what he had to say later, crack down on the gig economy and atwh one uber investor is telling us about the new bill in california i can shine. Imma do what im made to do. Built for excellence. You start from the foundation up. The excellence is reaching dreams and chasing them at the same time. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Breaking news on wework in a new sec filing, its Parent Companies says it has supplied the list to provide to nasdaq. And any chief executive who succeeds him will be selected by the board of directors acting as a group, not by his spouse in other headlines, it will limit neumanns ability to sell. All of these things to make sure they deal with the huge governing problems before you get to whether the Company Works or not they also say hes going to give any proceeds he receives from real estate transactions to the company. These steps would make you feel marginally better he tried to pull it offver on us anyway. Worse, it still highlights the issue. And hes already taken over 700 million out of the companys holdings where were these people four weeks ago . Time for the executive edge. I hosted an event in wash u that brought together leaders where we discussed and debated our nations top policy challenges more from secretary steven mnuchin. Later in the afternoon, i asked him to share his per spec is tiff on Corporate America whether he would sign the round table on the new definition of the purpose of a corporation his answer would surprise you . I wouldnt have you wouldnt have signed it no. Fascinating because you disagree with the premise . Because it is not a simple answer people on a lot of these issues want a one sentence or two sentence answer. Obviously businesses should have a purpose. To be profitable, you have to have a purpose it is not as simple as saying we have a purpose or we have profits. The problem is creating the one simple answer is it doesnt fully explore the issues i think Companies Need to have a purpose and have profits there was sort of a moment there where people in the room gasped i doubt it. You doubt what . It was a New York Times audience there was so much push back. Cantor was in here first of all, he leaned into the answer i give him credit. It is so much easier to give the virtue answer. So much easier to go along with it than to have your whits about you and defend Milton Freeman and what has worked for hundreds of years now im going to be defending Milton Freeman read his article in 1970 in New York Times magazine. Embedded in this article that had the headline effectively saying that businesses didnt have a responsibility to the community. If you go farther down, you understand what hes saying. If you are focused on profits, you are going to be taking care of the community it is a trickle down effect. I also think the question is whether this new business round table headline has been taken to a extreme too. If you read that statement, it is not saying these are at cross purposes right Milton Freeman was speaking at a time when corporate activist was at a high. So companies performed very badly where they had been saying we are doing good. Ive had people massage me from the business round table saying, look, theres lawyers involved i thought they were saying, look, weve always taken care of issues i thought they were saying, liz and bernie, we are going to try to make it better for you. We know wei caused the 2008 crisis you are playing with those that dont understand and havent thought it through that cross purpose i agree people that are already anti whatever you want to say. Looking at corporations, they take a cynical view point. You wrote this down as if you are going to change any behavior you are still going do everything youve been doing chasing profits. I think what the ceos were doing is responding to the changing Public Perception of these things after the great recession. You asked him about guns too . He was great. He took on every question. You must have been great. What did you ask about guns . I asked him about the role yesterday those are 45 companies came out visa came out. Where were your Big Companies out at the business round table ha tt company not in San Francisco catering to millennials through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. 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. Announcer welcome back you are watching squawk box. Good morning, everybody u. S. Equity futures have been indicated higher an seven days in a row of gains. Six days out of seven for the s p. Do you up by 107 points. Nasdaq up by 21. We are within spitting distance of new records for the do you and s p. Smiledirect shares opening low. I said it yesterday, and grin is not available. Think of all the stock sim bells. Grin is grind rod shipping holdings smile too many. They could have done that. They did st sdc smiledirectclub. There is a lot. Remember soto. Lbv for stien way. There are really good symbols that could help. Broadcom their ceo said it isnt quite in rebound mode yet. Still to come, in california changing gig workers to employees. What this could mean for uber, lyft and beyond. Later, okta ceo will join us to talk more. You are tcwahing squawk box on cnbc Classical Music playing throughout hour 36 in the stakeout. As soon as the homeowners arrive, well inform them that Liberty Mutual customizes home insurance, so theyll only pay for what they need. Your turn to keep watch, limu. Wake me up if you see anything. [ snoring ] [ loud squawking and siren blaring ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Car vending machines and buying a car 100 online. Vented now weve created a brand new way for you to sell your car. Whether its a year old or a few years old, we want to buy your car. So go to carvana and enter your license plate, answer a few questions, and our technowizardry calculates your cars value and gives you a real offer in seconds. When youre ready, well come to you, pay you on the spot, and pick up your car. Thats it. So ditch the old way of selling your car, and say hello to the new way at carvana. Some breaking news on wework. Its Parent Company says it has supplied the list to Parent Company on nasdaq. Any chief executive that succeeds him will be selected by the group instead of his spouse. Limiting his ability to sell and his shares of the ipo after he already took out more than 700 million. Joining us to talk about this is bradley tusk youve worked with a lot of companies, have you worked with wework i have not. What do you think of this move i dont think they had any choice beyond that, the narrative right now is is this Business Model really sustainable they raise money like 47 billion. The ipo might be like 16 million. Hes like, i started this from nothing. If you are him and you just get past all of the normal chatter, of course hes driving this to an ipo, why wouldnt he . Hes already gotten a lot of money. But hes gotten it questionably he seems to have done a bunch of other deals that involve wework. People have questioned them. If he wants to have his money in a more clean way would you veinvest in the company . I wouldnt. If you have this we live concept develops i think the social norms among younger people i wouldnt want to have roommates as an adult but things are changing the wework commercial Real Estate Market the way it is, not so much. Do these governance issues, even though theyve been cleaned up, they still happened. This is a profitless Company Buying a gull stream 650 yep this is the classic in some ways tech trade off you have this brilliant founder who did something wildly different. The notion of wework has changed because of him and his Company Everyone is two sides to the same coin. If you dont have him in there andwork is not really innovating, is the Company Invested i think uber has become a Questionable Company to invest in elon musk and facebook heads you loose tales i win. Lets move on to talk about the deal in california and the gig economy that would make them classify their employees as contractors. An early investor in uber. You did that because you advised them on politics and how to deal with regulators. In return, you got a stake in this company, what do you make of this law . The bill is happening one is, what will uber, lyft, some of the big players do right now, uber said we are not complying. If we go to court, our drivers will not be classified as employees. The first aggressive move ive seen from uber in two years. Going back to new york wait, you were happy to see that i was happy to see them put up a fight what they are really doing is saying to the state of california, look, we can be in court for years or reopen this bill towards the end of the process, uber, lyft, post mates put that forward. It probably would have worked out but because the train had left the station, they said, forget. It this is a move to say, we have really big card left to play if you dont want us to do that, we got to reopen this bill would you invest in any of these companies today with the idea that this is going to take a while to file out . And you did invest in glam squad. Yep they are exempt from the rules in california because they work closely with the legislatures and the staff. Glam squad workers are usually employees at nail salons or hair salons and working on the side we were able to show these people are truly not employees for glam squad if somebody is driving for uber 60 hours a week they are an employee. Labor says everybody is an employee all the time. But if you are driving an uber for 60 hours a week. If you are cleaning for handle 16 hours a week, you are clearly not. The reality is, neither of these positions is quite accurate. Thank you love to have you back. Thanks coming up, president ial hopefuls taking the stage at stigs debate. Well bring you the highlights when we return of 5g with ultra wideband, so more screaming, streaming, posting fans. Can experience 5g all at once. This is happening in 13 stadiums all across the country. Now if verizon 5g can do this for the nfl. Imagine what it can do for you. I got that vibe, got that vibe got that vibe, yeah, i aint petty, looking fly, looking fly, looking fly, yeah, they aint ready. I can shine, i can shine, i can shine. Imma do what im made to do. Imma do what im made to do. Built for excellence. You start from the foundation up. The excellence is reaching dreams and chasing them at the same time. Democrats squared off on the debate stage thursday night. Joining us now to discuss three big moments related to the world of business is political strategist and pollster, frank luntz. Bernie sanders wasted no time apparently i missed this. In attacking billionaires. We have got to recognize that this country is moving into an oligarcic form of society where a handful of billionaires control the economic and political life of this country and as president , i am prepared to take them on. Yes, we will raise the minimum wage to a living wage. Yes, we will finally make sure that every american has health care as a human right not a privilege. And, yes, we will address the catastrophic crisis of Climate Change and transform our Energy System away from fossil fuel that could have been probably most of the leading any of the top three probably could have said that, maybe not biden, but bernie and hes been saying it for a while. Yes. He has dropped in the polls hes dropped more than any of the other candidates other than biden, but that message still resonates with partisan democrats. Theres a message there when he was giving that litany he is going to raise taxes on the wealthy to pay for all of those programs he has no issue, in essence, demonizing the successful, so he calls it billionaires, but in the end hes got to take their money to be able to pay for his programs. A zero sum game its not new either. I mean, i think the last administration demonized successful people to some extent too. But theres a difference because now in our polling 75 youve mentioned it before. 75 would support a wealth tax of allamericans 65 would support raising the top rate for the top 1 to 70 of their income. The top 1 . Yes its approaching a majority of republicans are even arent you surprised when its not 99 would support a big increase on the 1 i mean, any aspirational thinking when you do when its 40 or 50 you have to hand it to the people that are pretty wealthy i want a system where i can get there too. It doesnt seem like much of a stretch to say, yes, i am for taxing other people. I dont know if that it never really resonates with me trade was a key topic the other night. Heres what Elizabeth Warren said about trade in Corporate America. Our trade policy in Corporate America has been broken for decades and it has been broken because it works for giant multinational corporations and not for much of anyone else. These are giant corporations that, shoot, if they can save a nickell by moving a job to a foreign country, theyll do it in a heartbeat and yet for decades now whos been whispering in the ears of our trade negotiators . Who has shaped our trade policy . Its been the giant corporations its been their lobbyists and their executives. Frank, if you are going to have a job in the united states, you can work for the government and have a decent job, but i think the government needs the tax dollars from the people working in the private sector. Have i got that right . So, i mean, private sector jobs, many of whom are either small, medium, large corporations, Sole Proprietorship proprietorships, however you do it, jobs are everything. This entire thing is on private sector jobs. You need to take aside where you stand, set that aside. Elizabeth warren is gaining more than any other candidate her base of support is more intense than any other candidate. So why is her message working and Bernie Sanders isnt when in some ways their message seems to be similar it is similar because weve heard him now since 2015 and she is new and she is different and she delivers that message much more effectively. If i can take it apart she has the best opening of any candidates, the first two sentences. She always includes a fact, a statistic to ground it in something more than just rhetoric she always has a shot at trump so she makes it partisan and she mentions something that affects people in a human way, in a personal way. Better communicator. Better communicator. Why bernie is losing . Because and she always ends on time. We dont have time for the third. Anybody move in or out of the top three . No, and, in fact, whats happening now is that this democratic contest is clearly going into 2016. I question whether theyre going to be able to separate people based on the democratic rules that doesnt allow for super delegates and provides delegates by proportion, which means nobody can get a majority. This is going to take a while to complete. Theres polls that have all three of these candidates up double digits over trump its significant. I dont think the president is paying attention to what is happening out there in states like iowa, farm states. It will come down to that it wont be a 10 popular vote difference but it could be wisconsin lets give something to our viewers that they can really learn from dont follow the national numbers. Watch pennsylvania, michigan and wisconsin. Thats what matters. Frank luntz, thanks. All tways great to see you. Two big hours coming up. A week in the markets, where are they going from here on inext n weeks big fed meeting were back in just a moment. Servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Markets inching closer and where the market could be headed next. Washington and wall street clyde. This country is moving into an oligarchic form of society. Its been the giant corporations its been their lobbyists and their executives. President ial candidates laying out their plans for the economy in last nights debate a breakdown of what it could mean for your hone is straight ahead. And the meatless craze has gone to the dogs were going to speak to the ceo of a startup looking to disrupt the pet Food Industry with fun guy as the second hour of squawk box begins right now. Live from the beating heart of business, new york. This is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc im becky quick along with Andrew Ross Sorkin and joe kernen we are just points away from a new record alltime high u. S. Equity futures at this hour are indicated higher once again. In fact, theyve been climbing all morning. Dow futures up by 125 points s p futures up by 12 the nasdaq up by 30 and well within close being 176 points away from a record closing high for the dow. Well within that ability to get there in one days trading. Weve got a couple wig headlines to bring you right now. Perhaps the top one, weve been talking about it all morning now. Wework parent out with a new sec filing planning to list on the nasdaq right here where we are when it goes public. It also says it will limit the ability of ceo adam newman to sell his shares, this is interesting, and cut the voting power of socalled high vote stock as a way to placate some shareholders worried about governance issues. We will see whether it does placate them key economic reading coming out in 90 minutes. Governance releasing retail sectors. This is predicting an increase of. 2 theres a little bit of a question mark about whether amazon prime day pulled some sales forward so weve got to watch for that as well whole foods cutting back on Health Benefits for. Employees january 1st workers at the amazon owned Grocery Store chain will have to work 30 hours per week to receive benefits up from the current 20 hours a little bit of an interesting one. President trump also making headlines yesterday speaking at a republican retreat in baltimore. You believe that he said that they planned it in advance. They havent i dont know if they coordinated all of the messaging. Hello but i think they often hold that in baltimore just happened to be that he had made those unfortunate comments. Right said hes working on a new round of tax cuts aimed at the middle class. And were now working on a middle tax working oen a tax cut for the middle income people that is going to be very, very inspirational. Its going to be something that i think its what everyones really looking for and well be announcing it sometime in the next year but itll be a very, very substantial tax cut for middle income folks who work so hard separately, President Trump signaled that he would consider an interim trade deal with china even though he would prefer to ink a full agreement. If were going to do the deal, lets get it done. A lot of people are talking about it i see a lot of analysts are saying an interim deal, meaning well do pieces of it. The easy ones first, but theres no easy or hard. Theres a deal or theres not a deal but its something we would consider, i guess, but were very were doing very well. The comment comes after a wall street journal report said that china is looking to break the deadlock to narrow it to trade matters and putting National Security issues on a separate track. All right i was laughing at because were almost at new highs again. Yes. I was thinking about our friend, jason ferman i mentioned it at the time trump has already lost the trade war because the stock market is down i think jason was like, youve got to publish this really fast. Can you get this out today because my whole thesis is based on the but stock market to date, andrew, it might might not so what is the other indication that he had that it was already lost were not look where we were a year ago. I know. I know i know still not i know. Its just funny. Publish this quickly lets get a look at this mornings Market Movers. Dom chu joins us now what have you got going . Good morning, joe lets talk about the fresh new alltime record highs and whatever else you want to throw in positivity the s p 500, july 27th, if you take a look at that, yes, we are just less than half a percent away from the record Level Holding over that 3,000 point. As for the places that are starting to kind of lead this near term medium term rally back towards the record levels. You take a look at the sector levels the bank stocks, the best spot during the onemonth span, that pushed us back towards the record lows, the s p is up about 3 and health care, the biggest lagging sector in the s p 500. Thats kind of the movement, the breakdown of those sectors if youre looking for that trade weve been talking so much about, the rotation, momentum, value, growth, all of those things, lets take a look at a few etfs to track it the highest dividend paying stocks in the s p 500, one of the etfs that tracks that is ticker sdy the ishares msci minimum volatility, the low volatility stocks still only up 1 but look at this. Its the momentum stocks this particular etf, the ishares mscm mtum only up 1 3 of 1 so it has been geared towards those dividend payers. Becky, ill add this if youre looking for the megacap stocks that have been driving some of this rally, it has been a few key ones but not all of them. Apple shares up 6 the s p is up 3 in that onemonth span j. P. Morgan chase up 9 pe and becky, just for you, i will also note that Berkshire Hathaway shares are up 6 , also a beat. So well see what that kind of momentum trade plays out financials and certain parts of retail doing pretty well. Dom, were on the same track. Momentum i was trying to figure out why were up today momentum was going to be my first question. Momentum moves. Maybe its friday positivity friday is great. Its closer friday 13th, positivity with a full moon. The harvest moon. I saw it driving in, it was pretty impressive. And College Football is back. And pro football and everything and baseball playoffs are coming up. Because i now have joined draft kings and i have been you did not. I did swear to god i did only bet 100. Did you bet on last nights game you know, i was going to but i wasnt going to be able to watch it i was going to take tampa bay. I was. And then i looked this morning should of, could of, would of. These are small wagers, dom, believe me, but it makes each game fun to watch. Have you tried it . So i have not done it yet i will say that im a fantasy football player. Youre too busy golfing. You only did that because that was all that was legal before now you can bet the point spread i bet on i was four out of six. Thats not bad. You know who you should talk to. Paul aaman whos a producer on power lunch. He has a spreadsheet. You all have so much time for your pastimes. Final four and every game, you bet on 32 games and every one of them is even you do that. Well, what i want to hear, joe, is whether or not you start going into the more aggressive parlay bets. I dont understand how to do it every quarter. Contingent bets. Right theyre working you up to that. Addiction i know. Yeah, youre right i am going to watch the gambler with james khan and michael man. Dont end well. Not the Mark Wahlberg one. No, maybe ill watch that, too. Dom, well see you later. Youve got it. The dow and the s p on the brink of registering alltime highs. Joining us is larry kantor hes operating partner and Jason Trennert jason, why are we looking at the futures up by 116 points this morning. One, i think people are starting to discount the idea that there will be a trade deal with china thats partly in my opinion a political phenomenon, which is to say youre getting close to 2020 and the president i think wants to let the economy run hot going into next year the other part, which i think is interesting is that money growth has picked up pretty meaningfully in the last three or four months its running at about a 9 growth rate. We have a situation where the economy isnt growing quickly but liquidity is growing quickly. Central banks yes feds easing. So in my opinion stocks are generally pretty Counter Cyclical driven by liquidity. Its a very hard thing to stand in front of. Larry, having said that were looking at a fed meeting if the fed says anything that disappoints the markets or doesnt give them the Forward Guidance they may be anticipating, we could be looking at a quick draw back. I think its a done deal. Theyll do 25 basis points. Thats baked in. No mystery. What else does the fed have to say i think hes going to keep the door open to more easing and go on that train im with jason on this, not with the fed. I think fed easing is priced in for a while ago. But i think this idea of an interim trade deal is whats driving things i mean, think about we talk about stocks close to record highs but as andrew said, were about where we were a year ago and when you look at the Corporate Tax cut, the good performance of corporate profits, youd expect the stock and fed going from tightening to easing you could argue all of that got pulled forward a year ago. Were just back i think what happens is we are going to get a deal with china i dont think theres going to be much substance to it. I think its going to be just like nafta was maybe theyll rename it. And then i think the market will do a lot better. Its a lot better yeah, 10 . 10 why do i pick that kind of number because i would expect based on Everything Else besides trade that you would be up at least 10 over a year ago. Were up so play this out then. Yeah. If the up side is it 10 , whats the down side right well, i think whats happening now is you are getting an explosion in credit so corporate debt is going so at some point weregoing to have a downturn. Right. So when that happens, its hard to predict when, the fact that were going into a president ial election year, we have an incumbent running, tells me were going to get a deal and well get a better economy for a while and a better stock market. I mean, i dont think people realize how important trade is i know were talking about it a lot. 30 years ago before all of the free trade it was about 10 of the Global Economy its now about 30 supply chains, you know, for multinational firms depend importantlywe wouldnt the u. S. Auto sector wouldnt be alive if we didnt have low cost producers that theyre taking care of. Same with the tech center. Where do they do this. After the Corporate Tax cut we thought we would have a boom in investment spending. Whos going to invest in this environment when the president can announce were going to close the border with mexico so i think once we get through that and id be shocked if it doesnt happen because the stock market and the economy are the big things he has going for him so, you know, to me thats and by the way, some of its priced in. Some of its priced in otherwise the stock market would be worse. I think people think its going to happen. He just said yesterday hed accept an interim trade deal thats why the market is up today. Were not there yet. You know, timing suggests maybe its going to be later. Sure. Jason, we had Richard Fisher here, the formal dallas fed president. Banks already have plenty of money, nobody to lend it to. If they are getting easier and money supply is up, why do you think thats going to help see, i would argue that the fed has to ease largely for technical reasons, not i would agree with him lower rates is not going to spur capital more Capital Investment you have plenty of incentives for Capital Investment through the tax code now the problem is that the rest of the world is obsessed with lower rates. Ecb yesterday in my opinion what they did, negative rates, and with 17 trillion dollars in negative yielding rates, the if he had doesnt have as much flexibility as you would suspect. There is a problem, the dollar, they found this out a couple of times in the last few years, the dollar gets too strong, it tends to weaken a lot of risk assets. Were no longer looking at the same old agenda, why to cut rates and get easier. Its not to stimulate the economy. I would argue there are technical reasons why the fed should ease. I think it should take out doesnt make any sense we have the highest policy in the world. Were flirting with negative yield curve. People say theres a difference between a flat curve and negative yielding curve. I wouldnt want to test the theory i think the president frankly has been right on this im not sure they should be zero rates should be zero but they should be lower than where they are now. Larry, thanks for coming in good to see you. My pleasure. Jason will be with us for the rest of the show. A lot coming up. The fake meat craze has gone to the dogs there is a biotech startup looking to disrupt the massive pet Food Industry and the company ceo is going to join us with its pet food plan if you have a pet or thinking of getting one, by the way, im going to be getting a dog soon maybe my boys are watching and then, anyway what have i said about that. Change your life. You will become a person. You will, maybe nervously ready . Ok, ready sweetie . Nice, you ready to go again . Are you ready, dad . Im ready. Imagine if your Life Insurance could help you live for today and safeguard tomorrow, so youre ready for anything. Life insurance designed to protect generations of families. Thats the power of pacific. Ask a financial professional about pacific life. Some of the following has spoiling this is us for the few who havent seen it. Season 4 of this is us is almost here. To catch every past episode, just say this is us into your xfinity voice remote. Like the one where i. [ buzzer ] or the one where we show. [ buzzer ] when he was a. [ buzzer ] plus you can watch this is us anywhere with Xfinity Stream app. Especially the. [ buzzer ] episode. Awww, that ones my favorite. Catch every episode of this is us with xfinity. Im the kind of guy who likes t. Like change my own lightbulbs. I do my own laundry. I even make my own jam. So, when my doctor told me he nd to check my prostate i said, ill do it myself. Can i get the jam back . Dont diy your health. Early screening by a doctor can save your life. To learn more go to pcf. Org cnbc has confirmed reports that carl icahn is moving his hedge fund to miami next year. Hes reportedly moving to florida to avoid new yorks higher taxes he will close his offices in new york in white plains on march 31st and open the next day in florida. Sources tell cnbc that employees of the hedge fund will be offered 50,000 in moving expenses those who decide not to move will be paid until march of 2020 sources say more than half of the staff is going andrew, if we invite me. Im going to miss hes got that great office. Right if we could move us yes. Not about taxes but just about the miami lifestyle. Right. We want to have our guests on city set. We like them on set. We could do remotes you know my view . In the winter we could be in florida for a couple months. You want to be a snow bird . I would want to do the show from colorado or utah maybe on fridays for skiing purposes. Okay. And then maybe in the summers never mind. Sounds like a bad idea. Andrew f we do this, can we if we are going both places would you mind if just for me we do six months and one day in miami would that be okay not really about its about the weather for me just in case no. Ill hook you up with my accountant coming up thats why hes doing it. We break down last nights democratic debate and what it means for your money, specifically the wealth tax and Elizabeth Warrens plan. How will it be paid for. I wonder what thats going to do for revenues carl icahn has done very well over the years up next, the plantbased meatless case making its way to the pet industry wild earth is the worlds first gourmet pet food from one guy. Sit, stay. Squawk returns in a moment time now for todays aflac trip yeah question what show premiered on this day in 1990 going on to become one of the longest running primetime dramas xonnubcsqwkhen cn ua bo cties aflac coach saban we have Health Insurance. Did Health Insurance pay for everything . No, we still have bills. Aflac gives you money directly to help with those. Aflac and your deductibles, knee brace, whatever you choose. Aflac sounds like a winner. Umhum. Umhum. We try. Get help with expenses Health Insurance doesnt cover. Get to know us at. Duck aflac dot com now the answer to todays aflac trivia question. What show premiered on this day in 1990, going on to become one of the longest running primetime dramas the answer law and order. Impossible burger and beyond meat helped make plantbased burgers. Wild earth, a two Year Old Company has some big name investors including mars, pet care, mark cuban, Founders Fund and thiel capital. Theyve received 16 million in funding. Joining us now is ryan bethancourth a founder and ceo of wild earth, just dogs, cats, pets in general . Thanks, joe all of the above at the moment just dogs. At the moment just dogs yeah. Which are the greatest theyre amazing. They are. And yourethinking about it and i in no Uncertain Terms you need to do this, sorkin. You need get a dog my sons want a dog. I have three. Theres a real debate going on in the sorkin family right now about a dog. Ryan, just personally, so are we talking dried food . Dry food kiblbles we launched two weeks ago our dog food clean high protein plantbased dog food and its now available nationwide. Why would i do this if were just purely if were not talking about the sustainable part or whatever, what about for my animal . What about nutrition price . Clean protein weve formulated it with veterans and nutritionists to make it a full and complete diet its high protein, and clean protein. In kibble its not good protein so we want to replace that with plants and fungi. Were not worried about cholesterol or salt . Not in the same way. Not in the same way as beyond meat its just being clean so right now theres a pretty big disparate in prices depending on the kibble that you buy. You can buy expensive kibble depending if you get one of the designer brands. I think id spend a lot of money. I have German Shepherds, theyre worth it right . Totally worth it. Pets, dogs, German Shepherds, andrew. People say they love their dogs more than their kids. Its a crazy one. Thats not true. What . I have made the comment what jerk would say that . German shepherds. Of course German Shepherds. I dont love more than my kids. I love dogs but give me a break. Im pretty sure the kids love the German Shepherd more than me. Thats understandable. Thats not true no, kids dont have the same reaction to parents as parents do the children. If you love your dog more than children you are the point were making that im making anyway is German Shepherds are just unreal. Yeah. Were really focusing on transforming the pet Food Industry we think there are massive amounts of change. How expensive more expensive than call of the wild meade premium around call of the wild. Mid premium kibble we compete with kibble compared to fresh food, very competitive. Same convenience clean protein less expensive. Do the dogs like it they do 95 of the dogs weve tested, cruelty free, volunteer free. Say they like it . They say they like it they eat it. They eat it. Im just wondering, as far as the dirty protein that youre talking about yeah. Theres a lot of scary stuff in some of the kibble that you read about 100 . I had no idea. And weve seen a huge shift in the marketplace over the last two years. Weve seen the marketplace going away from kind of the more standard kibble. It has four ds its nonhuman grade meat those are cows that have diseases and other things that are not suitable to humans are being fed to our animals the crazy part is 30 of the meat we consume in the u. S. Goes to our pets, 30 so its a massive amount of meat that they consume and its just not necessary. We can have a better, cleaner protein source for them as well. Dogs dont notice they dont notice. Ive seen other things dogs eat. When we first started testing our product, we have a theory i have a theory they can smell it they smell the difference. Sometimes theyll pick out our kibble and eat our kibble first. Thats craze jie. As youre doing research with all of this, could you find something for odorless stool is that possible it might be possible. Because meat i think theres a down side to meat with the dogs. There is a down side. There is a down side. German shepherds. Two of them. You see what im saying. One of them is growing at a pound a day. Were going to send you some wild earth kibble. If the smell improves, keep me posted. Because its up close and personal many times. Anyway, ryan, thank you. Thank you youre going to send me some . Of course yeah, yeah youre going to try it . No, im not going to try it but a big bag. Yeah. Thanks for coming when we return, after three hours of wide ranging questioning on immigration, education and the economy, what should investors take away from last nights debate . Well tell you in a couple of minutes. As we head to the break, u. S. Equities up again dow futures up by 116 points s p futures up by 11 nasdaq up by 28. The dow is less than half a percent away from new highs if we were to open at these levels. Well beig bk. Rhtac i wanna keep doing what i love, thats the retirement plan. With my annuity, i know there is a guarantee. Its for my family, its for my self, its for my future. Annuities can provide protected income for life. Learn more at retire your risk dot org. Theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Classical Music playing throughout Liberty Mutual customizes your Car Insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Some of the following has spoiling this is us for the few who havent seen it. Season 4 of this is us is almost here. To catch every past episode, just say this is us into your xfinity voice remote. Like the one where i. [ buzzer ] or the one where we show. [ buzzer ] when he was a. [ buzzer ] plus you can watch this is us anywhere with Xfinity Stream app. Especially the. [ buzzer ] episode. Awww, that ones my favorite. Catch every episode of this is us with xfinity. Still to come on squawk box this morning, what last nights debate means for wall street were going to take a look at some of the issues discussed last night and how they could be impacting your portfolio then were going to talk technicals as the market closes in on alltime highs plus, Vape Companies are under fire as regulators send a strong message about the dangers and this has impacted stocks which are looking at smoking alternatives osnaouhrghg to run y tou the mes in just a bit. Keeping the night interesting, is all about setting the right tone. Lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. Corona premier. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Welcome back, everybody. Democratic president ial hopefuls lined up side by side in houston last night robert frank joins us right now with more. Lots to go through, robert. Yeah, and nothing matters to our audience and to a lot of americans more than taxes now. The democratic race to tax the wealthy, Elizabeth Warren is once again leading the pack. I have proposed a two cent wealth tax on the top 1 10 of 1 in this country. This is how we build an america that reflects our values not just where the money comes from with the billionaires and corporate executives. Senator after proposing that wealth tax, that would be an annual tax of 2 , hence the 2 cents shes proposing another tax to shore up Social Security she wants to give recipients an extra 200 extra a month she would impose a new 14. 8 tax on net Investment Income any income from interest, dividend, Capital Gains or rent. It would only apply to those who make more than 250,000 a year and she would get rid of the payroll cap. Right now employers and employees each pay 6. 2 on wages up to 133,000 they dont pay any tax above that amount. Warren would impose a payroll tax on 7. 4 on employers and employees for wages over 250,000. 250,000 a year is certainly not billionaire level. That puts you about in the top 5 nationwide, probably even lower in expensive states like california, new york, new jersey. So whats so interesting about this is she pitches it as were soaking only warren buffet and jeff bezos but really actually i think its a little bit much or its broader. Whats interesting to me, she launched this yesterday. I expected she would talk about it in the debate it didnt come up. For that reason. Its easy to say lets tax the billionaires. It will hit the employer. Absolutely. That impacts jobs. Absolutely, especially small businesses. Who are you i dont know you at all anymore i dont think. Hes explaining. Im just who are you who hopes to make over 50 million. Down the middle down the middle. Who are you for more on the debate and issues of taxing the wealthy we want to welcome former congressman and cnbc contributor, barney frank. Never one to hold back congressman lance gooden is here on the set thank you both for joining us. Congressman, let me ask you this im assuming you dont want a wealth tax, but let me ask you maybe a broader question, which is do you think that because i think theres a level set question do you think that the government needs more revenue i never hear democrats talk about cutting waste in government all the things i heard broadly no, the government doesnt need more revenue. If you o believe the government doesnt need more revenue. You would argue for lower taxes across the board always. Yes, but thats not the reason we dont need higher taxes. Because what youre seeing democrats talk about are taxes on the American Dream. We should be encouraging people to make money. President trump, republicans, they want everyone to be a billionaire if they can make it work what these plans do is discourage wealth and thats not something republicans are for. I dont think thats what americans want every american wants to be able to go out and make it big. These plans youre hearing about discourage that. Let me ask barney i know a number of republicans who do think we need more revenue. How we get more revenue i think is always a big question you hear this plan you hear what the congressman just had to say. Do you believe that this is taxing the American Dream . And effectively will it actually, to some degree, hurt employment at any level . Well, on the wealth tax, no i disagree that that will have a disincentive effect. In other words, talking to someone who has hundreds of millions of dollars and if he learns that if he makes another 100 billion or another 100 million 2 million more will go in taxes i dont think that other 98 million isnt going to be worth it there is just no evidence empirically and no logic to say the wealth tax would disinsent people from trying to be wealthy. I dont think ceos would say better not get a raise because 2 will have to go to the government as to the employment effect and, therefore, i think the wealth tax, theres going to be some issues of how you appraise that on the other hand, we do most cities have funded most localities are funded entirely on a property tax which requires the same degree of somebody attempting something at a fixed price. As to Social Security, i will go back to joe and my favorite comedian, i think, joe, we share this like. Social security at the current level will need more revenue and if you dont agree with increasing the tax paid by the people who are now making hundreds of thousands and more, then whats your alternative the alternative i hear from some is well cut benefits. But were hearing here that that millionaire that makes an extra 100 million will be taxed at regular income taxes. What were hearing is a regular income tax. Yes let me ask you separately. The issue is that currently the government does not capture, if you will maybe capture is the wrong word you can use that against this confiscate. Par for the course. Never taxed never taxed and so you have you have some americans who are working their tail off, right, who are paying taxes and you have other americans that frankly in some cases arent working at all because theyre benefitting from the Capital Gains, right and theyre not paying theyre not paying for the same services everybody else is thats the argument. Wealth and money goes to where it is least taxed. So right now you have the amount of wealth relative to income in this country, one is taxed, one is not, is at its highest level since the early 1900s and thats because, to andrews point, it doesnt get taxed. So, you know, 2 above 50 million, you know, you could argue as jim cramer said yesterday, those people do great. They can probably afford it. What wealth does youre not taxed though tax dividends get taxed are those not taxes. Jump in, barney this also was something of an offset to the substantially high income weighted tax cuts of two years ago. So if you look at where we were when donald trump took office, you got an offset any increase that would come here these are people that we never hear about offsets in expenditures. No one in america thinks we spend too little money in our government oh, a lot of people do. First of all across the country they think waste in washington is running rampant. Military. You dont hear liberals talking about cutting ive been cutting and a lot of other members have been cutting what we think is Excessive Military spending let me say here, i dont think donald trump is youre talking about essential services thats something we all support. The military what americans want is to be able to make money and be rewarded for their success you have a very narrow view of what americans want they want good roads they want to be able to get to work on time clean air. Listen, my turn now. What americans dont want im sorry, youre filibustering here those are things that all of these Democratic Candidates are talking about. Thats something that americans are fed up with. Barney congressman, i want to make one quick comment. Just hear me out sure. Even if you decided that our budget, we could reduce our budget magically by 20 overnight, the tax revenue we get today still wouldnt pay for itself, okay you wouldnt have a balanced budget therefore you need to raise more revenue, my friend. We dont have to punish the earners in this country at any level, whatever those are. There is so much waste in this budget, he remembers when he was there. Im being filibustered here no one is ever talking. I dont have a long intro like yourself. I apologize. Let me say this i have been talking about waste in a number of areas areas were getting waste because donald trump is asking congress to put tens of billions of dollars in Additional Farm aid to offset the damage being caused by his mishandling of the china policy beyond that, in terms of there being waste, the last two budgets the republicans controlled the presidency, house and senate for two years if theres too much money, you put them there these are your budgets the president is not following up on his own instincts. He says were spending too much defending europe and other allies i agree with him ive been saying that for years. The problem is instead of telling them, look, if you dont start putting this up, were withdrawing that money, he continues to lavish the money on them so they have no incentive to do that you know, many of us do think theres wastes that could be cut, they want schools, they want transportation, they want health care, they want the enforcement of a whole range of things they want drug research. They want health carey search. We are not now sustaining revenue. By the way, ive never been in a panic about the debt, but anybody who believes we have a debt problem no one in washington ever seems to be in a panic about the debt. Well, then lets discard that although i think some of the republicans used to say they were theres been a conversion. I would ask you if theres too much money, too much waste why in the years when we had a republican president , house and senate didnt you reduce that waste . Ill tell you, chairman, the swamp was as swampy as when you left it. Ive been in office for only eight months and that is something im finding your fellow republicans are usele useless. They are distraught. You ran the government for two years. You know how the senate works. You have to have 60 votes to get anything passed. Its not a majority that allows you to have a majority ill give you that republicans and democrats have been guilty. Donald trump could have vetoed it. They could veto parts of the budget. In the first two years of obama you could have done gun control and i wish we had. We havent even talked about gun control. Democrats were saying lets get back to washington weve been in office for a week, theyve done nothing where is all the action after all of this talk i agree by the way, we did do health care we got rid of dont ask, dont tell and we did that that was a lot to do in two years, we didnt get to do anything but i am interested in hearing my republican copanelist say that, yeah, its just too hard to cut spending and thats why the republicans when they control the house, senate, president for two years apparently left all of this waste intact i believe we should have cut the military by the way, i got one amendment through in my last year to cut military spending thanks to my cosponsor Mick Mulvaney we tried to cut we succeeded. We lost in conference. Mick apparently has had one of those conversions. Chairman frank, i sit on the committee you once chaired and ive heard nothing but wonderful things about your leadership there. Thank you very much thats very gracious. I agree republicans have been guilty over the years of growing government thats something i came to congress to stop thats one of the reasons i was september to congress and so many new members of congress are so passionate about cutting government and also encouraging the American Dream and thats what congressman, let me ask you about the American Dream piece of this. Sure. And roberts spoken to it we are at a great gulf in terms of inequality in this country. I dont want to get into the con physici confiscatory question. There is a question whether the tax system works you could argue people at lower wages or lower incomes actually have ostensibly higher tax rates than people that are of that are actually making enormous amounts of money just from a fairness perspective whether that makes sense to you . Of course it doesnt. Im not going to sit here and make a case for a billionaire session. To Say Something nice about Elizabeth Warren, she does a good job of promoting her plan, whatever you want to call it, she does a good job of promoting it on the republican side i dont think weve done that. Barney frank, we have to go soon final word to you. Its outrageous to talk about Elizabeth Warren as being a socialist. Thats nonsense. I havent heard what are you going to do to keep Social Security there so when you dont want to raise the Social Security tax, you know, a man making 500,000 a year or a woman will pay less Social Security tax than a married couple each making 90,000. Thats wrong and if youre not ready to raise taxes on the huge amount of income thats exempt from Social Security tax mopping the kwung ger people. Its never ending. Barney, whats your favorite oneliner, penny, you got a quick one . Mine is still hows your wife compared to mine right now that i have a husband i have to be careful yeah, right when i read about the evils of drinking i gave up reading. Yes. Anyway, coming up thanks, guys. Coming up with markets, what are the charts telling investors . Well talk technicals after the brk. Squawk box will be right back. I got that vibe, got that vibe got that vibe, yeah, i aint petty, looking fly, looking fly, looking fly, yeah, they aint ready. I can shine, i can shine, i can shine. Imma do what im made to do. Imma do what im made to do. Built for excellence. You start from the foundation up. The excellence is reaching dreams and chasing them at the same time. The s p hitting september highs so where should investors be positioned . Joining us now, katie stockton, founder and managing director of fair lead strategies and mike santoli, senior markets commentator. Guest host jason trenner its pallindrome week, 9 13 19 which is 91, 3, 19 backwards, forwards. Same with trennert. Thats right. Next time it happens is 92 years from now is that right something to floorkd to. Katie, here we are. Here we are you didnt say this wasnt going to happen. I think we need to get through a couple of places to get back to where we are what now weve broken out from the onemonth trading range. That was signalled by the Global Equity markets we have the s p to a new high. And the shortterm breakout, what its done, its proven that the august low is very important. Weve watched breadth and sentiment, theyve reached extremes and theyre pretty prescient in august. We saw the nice reaction to that and thats a bullish development. I think were in this zone of having gone to all of these extremes in august the market overall kind of bent but didnt break and people really over anticipated and priced in a pretty significant scenario i think were in the zone, bond yields got too low it got depressed and its coming back and its not yet over. You want something from the fed. Yes, exactly. The one thing im watching is at this trajectory were going to get to a new high. People are going to start to feel better about things its a steep run. One of the things people were expecting that was negative that didnt happen is the earnings we session. There was a slowdown in earnings, no doubt about it. At the same token the more dire predictions about earning didnt really happen. It would be expected they would slow down after 22, 23 . Growth in earnings. Growth in earnings last year. It seems to me to be expected exsecretary the analysts didnt collectively expect it. Right thats true. But all of the strategists, all of the top down people, most people that would comment on these things would expect it. Did the ten year make the low in yields . So we saw it hold above that longterm support from 2012, 2016. Where was that . I think its around 138 higher lows is constructive one eight is where the 15day moving average is. I think we will exceed that is 2 , very psychologically significant level. We always want to see that trends will maintain themselves. Up trend in equity, down trend in yields. We will see resistance come in at 2 . Wage gains. We had sri say were going down to 1 i think we go above 2. If you get a trade deal youll be back towards 3 in the next six months. You think 22 basis points is easier to do than 79 yeah, i do. Over 2 before no, before 1. 5. Well be right back with wework can i get some help. Watch his head. Im so happy. Whatever they went through, they went through together. Welcome guys. Life well planned. See what a Raymond James Financial Advisor can do for you. So why isnt it all about you when it comes to your money . So. Whats on your mind . We are a 97yearold firm built for right now. Edward jones. Its time for investing to feel individual. Liberty mutual customizes your Car Insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty record run stocks closing in on an alltime high wework is one step closer to opening up to public investment. Office space coworking startup revealing new ipo details. Ill go ahead and make sure you get another copy of that memo and big tech under fire lawmakers cracking down over privacy. The final hour of squawk box begins right now live from the most powerful city in the world, new york city this is squawk box. Good morning and welcome back to squawk box here on cnbc live from the nags dak market site im joe kernen along with becky quick and Andrew Ross Sorkin our guest host, Jason Trennert strategis. You go either way . We go i mean in that sense. Partners and we have a broker dealer. Futures are indicated up higher again today alltime high. Is that eight Straight Days. Seven or eight Straight Days in the dao. Seven seven so far in the books. It will be eight. And the s p the dow and the s p are less than 1 away from alltime highs. You saw the yields theres where we stand right now. Well see. Well see what happens the ten year at 179. 1. 79. Back to respectable levels. Lets get some of the stories investors will be talking about. Wework parent we Companies Says it plans to list on the nasdaq when it goes public according to an sec filing this morning it would limit ceo adam newmans ability to sell the stock and cut the voting power the london stock exchanges board has rejected a takeover bid from the Hong Kong Exchange and says it sees no merit in further talks. Lse said it remains committed to the proposed acquisition of refinitive General Electric ceo larry colt expects asset sales to bring in 38 billion in cash. That money will help ge cut down its debt load. He told an Investment Conference that there are signs that the Power Division is redumping. Big tech has been taking hits from washington for months around what seems to be a neverending string of privacy scandals were starting to notice what could be a disconnect with how much d. C. And all the president ial candidates care and how much the general public actually cares deidre bossa joins us with the highlights or lack thereof good morning, certainly a lack of. Once again, guys, big tech was unable to break through at the democratic debate. Democratic candidates talked about wealth, equality, Corporate Governance but no one mentioned antitrust or actually regulating them despite regularly bashing them Bernie Sanders has gone after them on wages and taxes. Kamala harris backed the big bill now they got somewhat close during the trade discussion. Warren, harris accused joe biden of stealing this they said they will move a job to a foreign country if it will save them a nickell. Huawei has been at the center over i. P. Issues while apple supply chain in china has them scrutinized. Why werent they or facebook or google or amazon called out by name at any point during the twohour debate . It may be that other issues are simply more important than other americans. It could suggest that breaking up and regulating big toech is more important to lawmakers. Ive been making the argument which is to say that we talk about it all the time. People in washington get very excited about this issue jasons hers here. Ive always been unclear given the fact that there are these breaches that seem to happen so regularly these days and yet we all then go back to the scene of the crime very quickly in terms of the public. Its not like weve stopped using these services thats true i think, you know, obviously elected officials have higher i would argue they have a higher calling, which is to protect the public, and now obviously politicians are heat seeking missiles so theyre focusing on are you surprised that teachers havent reported this im not. Given the way that it seems like such a bipartisan issue not only were democrats pressing on these companies but you see the president take real shots at some of these issues. Im not particularly surprised in a democratic debate that youre not seeing this. The vast majority of the employees of these companies are democrats. Smart. And i think they also are big contributors interesting. You think this is follow the money . Absolutely. Despite the fact that Elizabeth Warren and Bernie Sanders have been very aggressive about these names yeah. I think when push comes to shove i think by the same token youre going to see a lot of abilities or a lot of attempts to protect those companies because thats interesting. Do you think democrats are more likely to protect absolutely. Protect the Tech Industry and the republicans . Listen, i had lunch with a very senior and three other people, very senior part of the administration, National Security he said hes having an extremely difficult time having Tech Companies work with the department of state because theyre so politically active and against what theyre doing, he found it disturbing in my opinion, theres something to this. Deidre, are you still with us im still here. Youre in the valley. Youre talking to these folks all the time do you think that they think that they think that the Democratic Party or the Republican Party represents a greater challenge to their Business Reporter well, when you look at a week like this, right, you look at the california gig economy bill that has the ability to up end many of the Business Models here i think they know something is coming whether thats democratic or republican. You have been saying it was bipartisan it was Elizabeth Warren who took out a full billboard calling to break up big tech. It feels here like the democrats are more vocal on it. Right but then youve got the president tweeting all the time. Thank you for that report were going to continue this conversation with the ceo who is in the valley. Talk about the state of changes and whats facing big tech right now. We are joined by corporate leader in cloud and security sector, octa cofounder is here. Octa, one of the featured companies on cnbcs disrupter list in 2016 todd, its great to see you. Republicans or democrats more of a problem to the valley . Its an interesting question. We think about it a lot, not only at okta but its interesting. How broad is tech becoming we think of big tech, breaking up tech, regulating tech talking about doing things and amazon the broad issues its hard to say did you speak about this issue. Its your business we hear about these. We talk about the attacks. It doesnt seem to have the same services. Multiple in a lot of cases its got that service. What i think would be a better solution is to have a more open approach where the personal data is more portable so that if customers arent happy with a certain service, they could more easily choose a Different Service and not have to lose all of their history, preferences. Moving towards a more standardized Digital Identity to make personal data more portable and also increase the trust and confidence customers have in switching. Theres not a choice. The services built up data the customers dont know how that data is being used. Theyre concerned about privacy and while they want to consider something else, maybe they dont have a choice because they dont know how to get their data out or its not clear how much remains and then the Security Risk of changing. Im going to switch gears given that were talking about the election, just a question. Maybe its going to come out of left field theres a number of states that have talked about doing their elections and voting online. Im curious, in this world given that you are a security expert, do you think that is a good idea do you think that is a dangerous idea do you think we could ever as a country actually have electronic voting over the internet, for example . I think that the big opportunity, the voting is access and i think that the more people that we can register and the more people that we can vote, thats better for the democracy. Its better for the country. Philosophically i dont disagree having said that, if we did that at the expense of a moment in time in which there was a breach in the midst of that, to me im into the sure that would be worth it at all. In fact, i would think it would set us bacterially i would agree with you, andrew i think that its important to be measured and balance the risk with the up side but i think the trend in all of these industries is towards more online, more accessible, more open and we have to balance the risk with doing what we know we can do to skush and make it reliable. Todd, i want to ask you a little bit and change gears about a different topic. This about the gun debate going on in this country you were one of nearly 150 Business Leaders who sent a letter to congress this week pushing for gun control legislation. The letter urging senators to enact bills already in the house. I should say that after that letter was published the Business Roundtable, which is led by jamie dimon, sent a letter similar in vein visa then came out as well what was your decision and thought process about getting involved in this discussion and signing that letter . This is well, were not politicians but we do read our companies and play an important part in the lives of our companies and employees. Gun violence is a Public Health crisis for some reason we are stuck in what really are Common Sense Solutions. Were not talking about gun control, were talking about Common Sense Solutions to do things like background checks and things we know that work and also things that the vast majority of my employees and americans agree with so anything i can do to nudge us that we think and help im happy to do. As you know, ive made the case that this isnt an issue for business this is not strictly a culture war. What do you say to the people that say, get out of this . Youre a business. Stay over here, this is not part of it . I respect their opinion i think that, you know, just in the Employee Base at okta, we have a very diverse Employee Base there are different opinions on political issues when i take a stand about this, its really about making sure its a common sense solution, a common sense solution that can apply broadly to and really benefit the employees of okta and the customers of okta and trying to push the right things forward based on that premise. Is that going to change the debate what i keep hearing from ceos and some who signed the Business Roundtable document last night is that the effort here is really to give frankly the president cover to sign and push for this bill given that hes indicated that he wants to do something but then has pulled back i think in large part under pressure from the nra and parts of his base. Do you think this is an effort to give him cover and for him to be able to say, look, the public you know, 90 of the public polls suggest that people actually want at least what is in that house bill well, people may not agree with certain politicians but i think politicians are smart and effective at listening to their constituents and i think that the more we can voice our opinion about these common sense steps we can take theyll listen im very optimistic. Todd, thank you for waking up early on the west coast and joining us i appreciate it. Thanks for having me. Coming up, big tobaccos big new challenge now that americans are paying more attention to vapingrelated health problems, whats the Business Impact for the ecigarette companies themselves were going to talk to the top analysts when squawk box comes right back see thats funny, i thought you traded options. Im not really a wall street guy. 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 by the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Welcome back to squawk box. Futures indicated up 117 points now on the dow the s p indicated up 10. Nasdaq indicated up 17 some news out this morning on the trump administrations crackdown on vaping. The wall street journal says ecigarette company juul is considering whether to back the ban or lobby forex edges or exceptions for some of its flavors. Joining us now is cfras Research Analyst garrett nelson. Garrett, i didnt realize how important this would be to juul in terms of how much of a percent of their sales at this point are mint or menthol. How does this break down for juul if those were included . Sure. Thanks for having me thats correct so mint as a percentage of their total sales is about 75 and menthol is about an additional 10 . So right there those two flavors, youre talking 85 of their total sales. And what juul did late last year is they removed their fruit flavors from retailers but they continued to sell them online. At that time a lot of users switched from fruit, particularly their mango flavor, which was very popular, to mint. Now mint accounts for 75 of their sales and it appears that mint will be mint and menthol will be included in the forthcoming ban. Is that a death note for this company . Well, its not good you lose 85 of your sales . So we think whats going to happen is theyre going to continue to do more testing, but they want to pull these products off the shelves considering the hundreds of illnesses and about a half dozen fatalities which have been blamed on these flavored ecigarettes so what theyll have to do is theyre going to do some more testing and then reapply to have them added back on the shelves and really prove to the fda that they are safe i just wanted to ask you a quick question about Phillip Morris i think the percentage of the company that brought value to juul is Something Like 38 billion. Do you have an altria. Altria, excuse me do you have any idea how big of an impact or what the value of that Company Might be . Are there any other pure plays to short the vaping industry aside from altria . There really arent and juul is still a small percentage. Though paid 12. 8 billion. Valued juul at 37 billion. Juuls revenue was just over 1 billion last year. It paid about 30 times 2018 revenue, and thats revenue, not 30 times earnings. They paid a very hefty multiple. I think they really considered it the future of the company is growth in ecigarettes is cigarette consumption has been in secular decline ever since the 1960s when it peaked they viewed that as a growth driver they shifted from cigarettes to ecigarettes. Its a big hit for altria for sure to answer the second part of your question, juul is the dominant player. They have about 75 market share. If you look at the other 25 , its really split between British American tobacco, Japan Tobacco and a couple of other companies. But juul is really the dominant player. More on altria, it wasnt the ecigarettes they were doubling down on. They took a 45 stake in cronos, the Canadian Marijuana Company what does that mean between the two pushes to say were making sure we have the next generation out there and what could that mean for any tie up with Phillip Morris sure. Those two investments were a big gamble youre talking about 15 billion that they shelled out for those two equity stakes last year. It was a big gamble. I think they really viewed that as the future of the company they had to do something with cigarette sales, you know, having declined for 50 years now. So for the most part theyve been able to offset it with prices but they cant keep doing that you have talks between altria and Phillip Morris regarding a potential merger between the two companies that split in 2008 with altria being the u. S. Pure play and Phillip Morris focusing on the international market. Good to see you. Thank you. Coming up when we return, a lot more critical read on august retail sales just ahead. Were going to figure out what amazons prime day did in july to august. And then next week Vice President mike pence is going to sit down with our very own joe kernen delivering alpha is next thursday september 19th right here in new york if you want to attend go to deliveringalpha. Com. Stay tuned youre watching squawk box here on cnbc does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our technology and Financial Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Welcome back to squawk box. Futures right now as we just said before we went to break up 110 points this morning. The s p up about 9 the nasdaq indicated up 17 when we return, some breaking Economic Data retail sales number for the month of august is due up after this quick break along with the latest look at import prices were going to have thbo of those numbers for you when squawk box comes right back. Welcome back to squawk box on cnbc live from the Nasdaq Market site in times square. Just a few minutes away from august retail sales and the latest look at import prices futures right now again are up the ten year, by the way, is at some of the highest levels weve seen, the yield. Not the principle. Not the bond itself. But the note itself. Our guest host today, Jason Trennert, chairman and ceo at strategis securities what did you say you think were going to go above well be back to 3 . Well, listen. Generally speaking ten year treasury yields should trade roughly at where nominal gdp growth is. Thats probably somewhere around 4 now im not making the prediction were going back to 3. I do think if you get trade behind you, you are going to see a steepening of the yield curve and youll see significantly higher longterm interest rates, tenyear treasury yields at something closer to 2 to 3 . Also what the treasury has talked about recently, which a lot of people have looked for for a long time hold that thought for one moment breaking data coming up. He is standing by. Import prices comes out as expected negative. 5 last month was revised up from plus. 2 to plus. 1 obviously people are watching that a lot because of the tariffs. X petroleum comes insteady retail sales is the most important. We were expecting plus. 2, we got a plus. 4. X auto is even we are expecting plus. 1 no revision on that. X auto and gas, a little bit worse than expected. Plus. 1. So the import prices were relatively behaved export negative. 6, we were expecting negative. 3. A tiny bit of a bid is attributed to the number im not sure how long that will last ten year rates 1. 79. Theyve gone up to 1. 81. If the stock market seems buoyant, perhaps the curve can steepen out a little bit thats what im looking for. Back to you, andrew. Thank you very much, jim. Separately, the House Judiciary Committee in a bipartisan way just issued a request for information to big Tech Companies we were just having this conversation about big tech. This for alphabet, apple, amazon this continues the houses investigation into the tech sector joining us for more is doug collins, Ranking Member of the House Judiciary Committee. We had a conversation, congressman, just earlier about democrats and the debate and where the Democratic Party was coming down on big tech and now its coming down some more tell us about where we stand and what this means. Thanks for having me on this morning. This is a show we can actually do something in a bipartisan way in the Judiciary Committee it is something thats very timely what were looking at now, were requesting information from these companies. I know from my perspective were not coming at this from what were trying to find out is not coming at it with an agenda. Were not saying heres what we need to do in the competitive space, lets take a look at it the industry has grown rapidly over the last 10 to 15 years we have its dominant place in the marketplace. What were requesting is information on competitiveness, any lawsuits thats been brought, how they interact with their competitors, how they interact with those that have had issues with them and any interaction with the department of justice and others dealing with this. The important part is what we see is this is not from my position an attack this is questioning of normal oversight into the marketplace to say what is going on and what is our antitrust laws working or is there something we need to look at . To the extent there are fault lines in this, where what are you concerned about specifically and i know saying big tech is unfair they all have their own separate issues, but when you look at that list, is there a particular company or particular issue that youre most focused on not really. I think all of them have similar and very they have diverse platforms but they have very similar interests. They have in their respected divisions have dominated marketplace, whether it be in apps, whether it be in search, whether it be in social interaction. These are the kind of things that the American People are concerned about. Not only in antitrust or anticompetitive possibility but also in the privacy sector which were also going to be looking into as well let me just ask you a question about that because oftentimes i hear people say privacy and then they say were trying to deal with the privacy issue by dealing with it as an antitrust issue. Im not sure those are the same things though some are. I dont believe theyre actually the same thing. I think that they but you cannot have a conversation concerning the competitive nature or the size dominance of an alphabet or google, Parent Company of google or a facebook or apple or amazon without having the same concerns because of the amount of information that they store and actually keep remember, they make most of their in fact, except for amazon in this process, they make most of their money on the data that they collect and the data they use and how they actually distribute that through the product sources and other things its not that it is the same if you have one large, you will have those issues as well. I think we should probably separate apple out to some degree a huge part of their business has been from hardware and services is clearly something they want to be a much bigger part of their business over time separate question, we were talking about the politics of all of this earlier. Is this a bipartisan subject do you believe . Theres a number of people who think that the republicans are actually more aggressive on this issue and some people believe thats even political as well, which is to say that if you believe that some of these platforms have been accused of silencing conservative voices and things like that, that thats motivating it on one end. Obviously on the other end you have Bernie Sanders and Elizabeth Warren who oddly enough we were talking about didnt comment on this during the debates and you were making the argument that that was a function of the fact that a lot of these not just employees donate and are democrats. It is something you have to look at. It can become partisan very quickly. This is where you go back to the previous question concerning privacy and antitrust. They blend here so much because if you feel like youre being silenced or kept off of a platform, is it a content issue or is it a belief issue . Is it something that the companies are promoting an agenda they could move into more of a social media, more of the privacy issue if you would take it that way or is it in the process of keeping other competitors out . I believe this letter from myself and chairman nadler, we havent had many things we dont disagree on. There is a discerning step forward to say at least from my perspective to say lets get information. Lets dont go at this with a solution already in mind lets actually take the information and then decide what we have to do because simply taking and attacking a company because they did good things and became very large is not right thats not antitrust law simply also ignoring it and saying the market is in the new place and we have to see where it flows is something we need to look at to make sure our current laws are capable of handling it. We had to do this in music it spanned 5 1 2 years to take our music lexicon and take songwriters to artists because of the new way we look at music. This is another look at it. I have a question question, congressman. I would imagine, im asking, have you seen a lot more influence in washington by these Tech Companies the last thing i had seen is that i think amazon had 13 lobbying firms on retainer i would say five years ago generally speaking Silicon Valley largely thought i believe that it was immune from political really some sort of political scrutiny i think thats clearly changed i would imagine its changed your job as well for good perhaps and for bad. Wonder if you could comment on that. Its amazing. Ive been up there just a little over six years and im not sure theres anybody in the world that doesnt have somebody advocating for them in washington, d. C. If youre from Silicon Valley, theres a realization that for so long a time you could begin disruptive technology, new, something thats being faulted and when you get to a certain level youre part of the big corporate ecosystem where you have to have things that government does affect weve seen definitely a larger increase in them telling their stories and how they do it this is why were looking at the rfi to say we want information, how youre doing it, how we can Work Together with this. I think when government and industries Work Together to find solutions, thats how we solve problems not with the agenda driven on both sides. Does lobbyists work for you President Trump doesnt like to hear from them, hed like to hear from the principles themselves. Thats why we went straight to the companies with the rfi. We go straight to the companies and say, we want the documents we want to see how youre dealing with your anticompetitive challenges and things so for me, ive always looked at it like this everyone has an advocate in their life for whatever it is. You listen to the advocate i think one of the things we can do best here is not have show hearings, not necessarily go straight to the ceos and say what do you do with your company. Lets go like were doing the request for information. Lets take some of your product managers, Senior Executives and say lets understand this without trying to make a splash for a press release and a tv scene. Congressman, were going to leave the conversation there but i do want to say, one thing thats fabulous about this Congress Person is that he takes this issue and i think he genuinely actually its not theater. He actually wants to know, wants to assemble all the right people, put them in the room and figure out what to do. We have far too few of those mpg thank you, congressman. Out of 400 and whatever. 535 if you count the senate yeah. Im still in love with you i love this song. You know yeah, i knew you loved this song. My wife it is the harvest keep playing it. It is the harvest moon and it is very rare on friday the 13th to have a harvest moon. Do you know what a harvest moon is, sorkin no. Its closest to the autumnal equinox and farmers can work late into the night for the harvest. It happens to be exactly 21 1 2 years since i got married on friday 13th with a full moon youre kidding . Harvest moon . You know the lines. Im still in love with you friday the 13th. I got trennert. Im still in love with you your favorite neil young song. I loved you from afar when we were lovers i want quail to sing this to you. Does he have a voice yeah. Yeah tell him i said that. All right you sing to penelope. I will. When we come back, stocks that are making the biggest move ahead of the opening bell. And the dow and the s p 500 are less than 1 away from alltime highs. Tonight. Well talk markets and what could be next if and when we get those new records. Meantime, listen to this record. Exactly as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Ptech students around the world. Whai tell clients, etfs can follow an index, but which ones target your goals . Its not about quantity. Its about quality. No trendy stuff. I want etfs backed by research. Is it built for the longterm . My reputation depends on it. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. I need all the breaks as athat i can get. Or, at liberty butchemel. Cut. Liberty mu. Line . Cut. Liberty mutual customizes your Car Insurance so you only pay for what you need. Cut. Liberty m. Am i allowed to riff . What if i come out of the water . Liberty biberty. Cut. Well dub it. Liberty mutual customizes your Car Insurance so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back to squawk box. We have 45 minutes before the markets open nasdaq up 5 points. Under an hour until the opening bell on wall street. Dominic chu is here and he has a look at the morning Market Movers dom, what do you have . Becky, were going to start things off with tgif with apple stock down by half of a percent. Now 3 4 of a percent roughly 375,000 shares of premarket volume. Price target reduction by analysts at Goldman Sachs to 165 bucks a share. They kept the neutral rating it used to be 187. Theyre looking at the upcoming trial period and some of the accounting treatment of how revenues of those will be split between services and hardware. That could lead to a drop in earnings per share which leads to possibly a lower stock price. Thats why the shares are down a little bit there also, shares of Southwest Airlines which are cruising along premarket. The value carrier is getting upgraded from outperform over at mccorey. They like better ability to execute their plans as the boeing 737 max model jets get approved for flight and back into their fleet then were going to end on shares of etsy which are up nearly 4 premarket around 25,000 shares. Volume, the Online Market price gets raised from outperform. The target price goes to 66 from 64 theyre more bullish on the new advertising and Free Shipping initiatives ahead of that key Holiday Shopping season. Those shares up pretty decently, joe. Back over to you. Thank you, dom chu. Even as stocks sit close to alltime highs our next guest is telling clients that this weeks Market Action amounted more to a quant event than a belief in global reflation for more we are joined by doug ramsey, chief investment officer. What do you mean, doug what makes you say that . Well, theres a history of these major leadership Inflection Points taking place close to a major market Inflection Point and theyre usually a top. March 10th of 2000 would be an example where after years of growth stock leadership had turned over to value on a dime and two weeks later we had the top in the s p 500 of course it wasnt for 11 or 12 more months until we tipped into recession. That was the end of the bull market i mean, the patient is old and i dont think can survive a transplant of this nature. I mean, it was a heart transplant going from growth to value, from large cap to small cap. Again, i think thats a very late cycle warning flag. So this youre calling is this the first top youve called in the last year or two no, is it . Im just wondering there have been a few along the way. I mean, weve been cautious, joe, really ever since the Global Market top, and im talking the top in the msci aqwe index in january of 2018 thats when we scaled down equity exposure. Ill be candid, we didnt see the extent of the rally that weve had this year. Im not calling a top right here you know, what were saying is its very late in the games. Weve seen these apparent leadership refreshers as a prelude to a top within the next few months if not right away again, if the leaders cant lead and the dogs start barking here at the end, i think i think the bull markets in very big trouble and, you know, obviously from an Economic Perspective weve had the yield curve inversion. Weve had a lot of the things we normally see after a yield curve reversion, i. E. , industrial Commodity Prices sliding the ism new orders index at around 47 from the month of august i mean, a lot of the sequence that we would normally expect going into recession is unfolding. So, doug, just to take the other side, i would say while youve seen the curve come close to inverting and flatten, certainly Credit Conditions clearly have not changed particularly dramatically. Credit spreads are about as tight as a drum. Dont you think that the change in central banking makes looking at this cycle in the traditional way you look at Business Cycles a little bit different, which is to say that in many ways central bank easing has probably lengthened the cycle and you cant look at it the same way that you would look at it typically . Yeah. I mean, with respect to the central banks, i do think there is something there that possibly has compromised the message of the yield curve, but i wouldnt dismiss it out of hand i guess with respect to credit spreads, i mean, junk spreads, especially the higher grade junk is hanging in there. It really is remarkable. Where weve seen the deterioration has been in the lower grade Investment Grade stuff, like the baa spread versus the 10year treasury has continued to make lower lows, just like small caps and just like until this week the value liner at medic, i. E. , the average stock has done i think if you look at thats, remember, jason, thats where a lot of the issuance has been in this cycle is that lower grade Investment Grade tier as opposed to junk. But i it does trouble me that junk spreads have hung in here as well as they ave. What did jim paulson have you work next to him, dont you, doug yeah. He doesnt believe youre cio. Youve got to smack him around around hes been very bullish lately, hasnt he been bullish do you have arguments . We have some good dialogue. Hes had a good year i think hes got the bigger large mouth bass between the two of us for the year too. I would rather have his record since january of 18 than yours, i think, right . Well, hes been spot on because he was cautious with us last year. Right right until the lows. You need to, like, talk to him more, doug, or well see what happens, right . You never know, right . Thats right. Past performance, no guarantee of future success, thats for sure. As everybody in this business knows. Thanks for pointing out that stuff, though, doug. Trenor is taking notes are you going to sell everything no, no. Dont fight the fed. Dont fight the fed doug, say hi to jim too. Thanks, guys. Have a good weekend. You too. Talking about jim, lets get down to the New York Stock Exchange this morning, where jim cramer joins us live right now what is top of mind for you right now . What are you thinking about this crazy market i just think that we had a really good run here and the analyst commentary all morning is pretty negative look, it has been a good one lets take something off the table. Im not going to disagree with that we have been up a huge amount. Were in some weird period where there is so little news. But it does show the market wants to levitate higher i thought the smile direct ipo is something that should make people sit up and take notice. That was a real bomb when you get a real bomb, that is often a period where you have a little bit of storm, not terrible the previous guest, i know, is really expressed a kind of top call im not saying that at all im saying give it a rest. You see apple down, accounting story out of goldman, dead wrong about the stock, you see smile direct can be completely mispriced, hear about we, we work, we dont want that deal. I wish they would go away. There is a lot of things that are just kind of unpleasant. Lets ride through this a little. You want wework to go away. Is that your call here yeah, i just want it to go away i dont want wework. I dont want wework at any price. I think that it is just it is too top of the world. I just dont want it and i know that sounds like, well, what a cry baby, there are certain deals that come and they can just really take the air out of any market. We have a helium shortage. Thats the only thing i know that is good for this. Too late. Cant stuff it all back in the box with this one. You can try to change everything after the fact. We were awful and were just going to wait until were good again why do they have to just keep going down, down, down they need money. I know, but we dont want to give them money. Theyre going to screw up the market cramer, you got anything to harvest tonight still . Harvest moon, harvest moon, light outside. I dont know. I had godman on last night, he went off on tampa bay. Dont even care what happens tonight. You got tomatoes left you dont have anything left you dont have anything left, do you . Everything has been brought from your garden. You got a hell of a garden. Im still doing canning im not done im not done i would take my canning over wework any day by the way, im not going to sell to myself jims done better, write a check to myself from your money and softbanks because thats what i do why shouldnt i sell my name to me jim, this guy is sending me a bunch of beyond meat dog food. You think that nvidia would like some of that if i you want me to send you whatever it is nonmeat, but it is a lot of protein, no crappy protein, though. I put the fresh pet in the refrigerator and my kids try to spread it on a cracker looked like baloney. All right said it didnt taste as good. If it is plantbased dog food, that wouldnt be bad for you plantbased as long as no gmo, ill feed it to anybody gmo, thats a modified thing right. Okay. Exactly is the president against gmo . No probably for gmo, right . Right im not im not against it. I mean, every biotech drug we have is a gmo drug. The only one im opposed to is the one that makes the resistant to any pesticides y s jumping on it. I stopped taking roundup a long time ago. That is no good. I used cheetos and roundup, cheetos, roundup just doesnt work all right just saying. Will you stop the wework deal, please lets stop wework. Wow all right. Lets we can do that. We can do that thank you, jim. Stop it. Well see you in just did she say stop it last night . That would have helped us. I hope you talk a little bit about the debates. I would love to hear what you have to say. Ill be watching in a little bit. Can you pass on a topic, he was the number one draft in our fantasy on the network and he appeared on your show. Thats, like, you know, we drafted him for the s. E. C. And hes on a big ten show well work on it. Well work on it in the meantime, dont miss a big interview a little later this morning with the ftc commission eer rohit chopra durg squawk alley. Stay tuned through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Our guest host today, jason trenor, forward and backwards, the same, chairman and ceo at strategis. What do we take away from your pearls i think as i said before, i dont think you want to fight the fed. I think to the extent to which money growth is growing faster than the economy, it is very hard to be short risk asserts. Trade deal would only would only intensify that move higher. No trade deal would mean i think save it for next time. Ill save it for next time but not good. We got a whole minute. Oh, i thought it was the clock is not in the right im looking at those no trade deal means what no trade deal, my opinion, go back to 2750, 2800 on the s p 500, something along those lines. But i at this point, i think the expectations arent particularly high. And so i dont think the downside is all that great you going to do anything tonight . Going out to dinner are you yeah. I want you to dance with mrs. Trennert and tell her that, you know harvest moon . Harvest moon. I loved you from afar and im still in love with you i want you to do this. All right, ill ill look, hes putting his tie up, wow. Hes got big plans maybe. Who knows good luck godspeed have a fun weekend quayle is not going to sing to you. But hell play air guitar for you. Joe will sing to me. I will. Join us next week. Squawk on the street is next the choice is yours you can deal with this you can deal with that you can deal with this you can deal with that you can deal with this you can deal with this but this is where its at good friday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber at the New York Stock Exchange. Up nearly 100 as we inch closer to all time highs. Dow needs less than 180 to get there. Retail sales for august pretty solid. Europe is green. Bond selloff continues as the ten year yield hits 183. And Michigan Sentiment is on the way. Our road map this morning begins