Transcripts For CNBC Squawk Alley 20170628

Good wednesday morning welcome to squawk alley. Im Carl Quintanilla along with sarahiz sarah eisen. First up, the president tweeting about jeff bezos thinking that the amazon Washington Post sometime referred to as the guardian of amazon not paying taxes, not new news. He criticized bezos for his purchase of the post during a speech in texas. I have respect for jeff bezos. But he bought the Washington Post to have political influence. And i have to tell you, we have a different country than we used to have. We have a different we owns amazon he owns political influence so that amazon will benefit from it thats not right and believe me, if i become president , oh, do they have problems theyll have such problems jason, we have the president of the United States targeting one of the soontobe richest men in the country and one of the richest men in the world. How important is this to bezos, to the post and to amazon . Listen, donald trump makes an extremely valid point. If it was 2008 amazon has been paying local state taxes in all but four states, New Hampshire and montana and the four states in our union that dont charge state sales tax. Amazon pays their taxes. So this is a completely fake tweet. Its fake news and i think donald trump is theres a little bit of projection going on here obviously, donald trump didnt want to release his taxes. And he sat on his campaign trail very clearly any smart businessman is going to pay the minimum amount of taxes. So to attack jeff bezos over the issue that is a couple of years old right now is solvable by doing a google search. So the president is a complete moron. He doesnt have his facts straight and this is just a complete and utter embarrassment for him to attack amazon on an issue already resolved and if hes attackinghim based on the Washington Post, maybe that would lead people to believe that maybe the Washington Post is doing an excellent job. I think it takes something more than a complete moron to get elected president of the United States. As much as you disagree with his politics and methods but i guess i wonder, do these tweet attacks really matter anymore . I remember when stock prices moved on them, you know, lockheed, there are all the worries of, if you get targeted by trump, that could be a real problem. I dont sense as much of a concern anymore. Amazon is up . Yeah, i mean, obviously nobody believes what trump is saying anymore he tweets at 5 00 a. M. , nobody vets the tweets. Its a complete embarrassment for our country that the president is tweeting factually incorrect stuff. This is an embarrassment you may want to sit there and be politically correct, john, and say this is not a complete embarrassment and hes not a complete idiot but the entire country is e realizing we elected a moron and is tweeting something factually incorrect. Why are we sitting here pretending this is not normal . It is not normal to tweet something factually incorrect if youre the president maybe jeff bezos was at the white house last week. He is trying to get a 14 billion deal to swallow whole foods done hes trying to expand his empire in so many different ways that it is hard to keep up. They could face regulatory headaches. And dont they have to play nice with the white house and with this administration . I dont think they need to play nice with somebody like donald trump he has not played nice with anybody else and i dont think that, you know, anything amazon is doing is out of the ordinary if you look at the total amount of commerce that is online right now, the majority of it will be offline. And even if trump somehow miraculously gets elected a second time, even when his eight years are up, it will still be the majority of commerce offline. So to really look at, you know, amazon and say it is some monopolistic power, it is not realistic. They will not be monopolistic in trumps two terms. We are sitting here with the president attacking somebody and hes factually incorrect why would the president not have his tweets vetted. There are official communications from what is supposed to be the most powerful person on the planet and nobodys vetting his tweets or factchecking all of us are subject to factchecking here on the network. Thats his appeal his appeal is that it is spontaneous, that it is real, that it is first person in an era in which people believe the government is too vetted, where you dont actually hear what is coming straight from someones mind yeah, except its inaccurate. Thats what we have to focus on as members of the media and people who are commenting on this we have to draw a hard line where he is factually incorrect. If hes wrong, we have to doubledown and say factually incorrect statement. If hes going to call us the fake news, we need to factcheck him. Todays tweet is absurd. Its factually incorrect and were sitting here discussing it. And then were sitting here discussing him bullying jeff bezos, one of the great entrepreneurs of our time . Give me a break. Donald trump cant hold a candle to what jeff bezos has added to society. Hes created millions of jobs and is a tremendous innovator and is going to give all his money away bezos is going to give his money away hes done an amazing thing for america. Trump is destroying our country with factual inaccuracy and undecipherable policies. We knew at the time of the election that part of the dynamic of this term would be how to digest his tweets, how they would play out in the market, how they would play out with company, and thats where we are today its not much of a surprise, but your point of view is taken. Lets move on to Cyber Attacks this morning spreading across europe and the u. S. On tuesday ameri merck is among the companies being hit. This is the Second Global cyber strike in as many months, jason. Once again, we are left asking, are companies doing enough if they are not, what do they do now . Whether this represents elevated strike from the wannacry just a few weeks ago. Yeah, this is Serious Business you know, for people who dont know exactly how these attacks work, they typically work through attachments and phishing, which means youre getting an attachment from a friend, log in, oh, my god, im sharing photos our i have an important business proposal. You log into a website that is not microsoft or google, you give credentials and the machine gets encrypted they lock up your data or delete it then demand bitcoin or payment anonymously in order to release it all this could be avoided with two factor authentication, people not opening attachments and updating your software so it has to happen, Corporate America has to not allow people to use Outdated Software this was a patch a month ago done by microsoft. It strikes me as we are looking at the tenyear anniversary of the iphone. And this is hitting pcs. Use of the cloud and mobile devices kind of gives you another line of productivity away from this sort of attack, does it not . Yeah, its a great point. Why is this happening. People are using old desk top software and not using best Safety Practices we have a newsletter inside security, and i was talking to david who writes it, they think this Ransomware Attack looks suspiciously incompetent and that it is one bitcoin address and one email address shut down for you to send payment to why would somebody create something that is incompetent at collecting ransom. I think it is a second wave of attack that happens here so i think if youre a consumer, what you need to know is, you need to have the latest updates turned on. You have to take Cyber Security very seriously and you want to have your data backed up in two locations, icloud, dropbox, pick two of them back it up to two locations. This way when your hard drive gets compromised, you can pull down one of the two backups. Thats a reason some of our guests suggested they call it cyber vandalism. It is a bit of chaos, yep finally, jason, the Meal Kit Delivery service blue aupon set a price on the ipo slashing the range by a third we are following the Major Players there with aditi roy hi, aditi. Reporter good morning. Blue apron could reach 35 million by 2021. Theres hellofresh and freshly along with sun basket. Some have gone belly up. Sprig and maple went bellyup. Ultimately, it burned through cash quickly and had razor thin margins and was eventually acquired by the uk and munchery has gone through layoffs and recently raised money. So what are ingredients for success . Industry watchers say the Common Thread among the Successful Companies is they use conventional mail rather than couriers for delivery driving down operating costs but experts say blue aprons biggest threat could be the combination of whole foods and amazon setting up for a food fight there. Back to you guys well see what happens there, aditi. Jason, really quick, when whole foods amazon hit, people wondering whether the deal would survive at all will it . Yeah, i think blue auppron hs figured something out. I dont think whole foods will get into the base for a little while. And they figured out something special, which is if they owned the beef producer, if they owned the farms and they go from the source to the table and they deliver, lets say, six meals or nine meals, they can take that 20 delivery cost and advertise it across multiple meals the reason the sprigs and the spoon rockets and other services died very quickly was they had an average 1. 5 meals per order and still had the 10 or 20 delivery cost. Blue apron is doing much better in that regard, but its still a very challenging business. Jason, do customers rit large really love it the problem for these services, i hear blue apron, people do it, and its not enough food youre paying the premium for not going out and doing your own Grocery Shopping at whole foods, but it is still a lot of work when you get it home and there are no leftovers im not sure i want this yeah, so these are all fair points its 10 a meal. You get all the portions set up for you, so it is pretty simple. Were about halfway to what this product will eventually look like i just looked at the startup of an oven that is a steam convection and toaster and you scan a bar code, put a box in and it steams it, then bakes it and broils it and it was absolutely Delicious Food and i am not an investor in it yet, but it is interesting you scan a boor code and it does the recipe for you it takes out two or three steps that blue apron has. So people want to have a service like this. It appeals to those 25 to 35 twoincome home. You have to have two people in the home and when they have kids, they doubledown on it. So its a big time saver theres a group of consumers who order two or three times a month. And i think its great that this is a lower price target and a lower share price because this is a directreaction to the overpricing of snap, i believe a lot of people who bought snap felt burned. It was very extensive and it went to the top of the range and now we, i think, are seeing something healthy. A Smaller Company raising smaller amounts of money at a lower stock price. Maybe that gives people buying the stock a chance to make some money instead of, like, with twitter and snapchat losing money. Right . And this is maybe a healthy thing that the markets are skeptical. I like a skeptical market. I just want to ask you about the competitive landscape. Aditi shows a number of players here blue apron could be first and biggest, but it is pretty low barrier to entry is there any sense of Consumer Loyalty to one specific brand over another yeah, in any business, if you delight the customer and they start having repeatability, youre going to have some loyalty there. But youre right, that is easier to get into. So you may have seen that blue apron bought neiman ranch or one of the subsidiaries, so they literally are producing the beef in the same way, they are direct to consumer, well see farms going direct to recipes on peoples tables. And that allows you to do the delivery costs because youre taking out a couple of middle men there. You dont have a tribute or the and dont have a retailer. You can sort of have a little bit more margin. Very challenging business. But the performance is pretty exciting and i think that is why they were able to ipo the company and i like the Young Companies with under a billion dollars going public and giving investors a chance to maybe participate again in a company that is not 10 billion in revenue. Thats a healthy thing for us and a good price there are good signs theres an opportunity here Glass Half Full well see what the pricing looks like tonight and the action tomorrow jason lighting up the phone lines again. Well see you next time. Jason calacanis joining us there. And we are introducing a new Autonomous System from gm. Phil lebeau is out on the road joining us as a special guest. Hey, phil. Reporter thank you very much im joined by johan driving handsfree heading north on the 280. We are in a cadillac with the new super cruise technology. This allows handsfree driving on the highway, right . This is the first car designed to be totally handsfree on the highway. And absolutely stateoftheart. Do me a favor, a hold up your hands. You are not holding up your hands at 72 to 73 Miles Per Hour the difference is theres a small camera watching your eyes. How much of a difference maker is it to convince people, this is not just autopilot, so to speak. You have to be engaged with the vehicle . Well, the reason were able to deliver fully handsfree capability is precisely because we have designed the system to engage the driver. And the sensors embedded in the vehicle surely make sure the driver is alert. You dont have to drive, you can have conversation and dialogue as we are doing now. You can operate the system, all things you like to do. But if the system determines you are alert and able to convene, it will happily control the call for you. If on the other hand you see signs of falling asleep, the system will alert you with prompts to ensure youre able to take control. Is the amountdrowsy driving under appreciated here, the fact that so many people doze off when on the highway. This system will prevent that from happening every person watching this will have their own personal experience of driving while drowsy and certainly, that is an important consideration. We think that, also, distracted driving is a big influence on Vehicle Safety but thats also the consideration of just convenience. We have seen how the cities have evolved with absolutely unpleasant driving conditions with heavy traffic these kind of systems boost safety and comfort and convenience. Reporter we only have a few minutes left here, but two quick questions. First, is this a big difference maker related to teslas operating system to say you are taking this to this next level absolutely. This is the first system to allow completely handsfree driving. And also, while we use the same type of sensor technology, we have on top of that also very precise data that allows our vehicle to know exactly where it is positioned and what the Road Conditions are like at that point. So it allows far more precise control and execution of autonomous capability. Reporter do me one last favor, we are not endorsing texting and driving. But look down and then well hear the system engage, right . It depends on the speed, the higher the speed the shorter the duration its going to make a sense judgment on conditions so slow speed driving, the system would probably not respond very quickly on the conditions were at now, the system is clearly still of the opinion that i could look up at a moments notice but its taking a look if it were to become concerned that im not paying attention, a blue ball would light up on the steering wheem an ining wheel at engage there it is flashing reporter close your eyes guys, hes closed his eyes and well see how the system at some point here this has been four to five seconds. At some point its going to prompt us. Its been staying in the lane, nothing has changed. The car is fully in control reporter fully in control. It is taking the actions necessary. And it begins to flash the light. And eventually if the light turns blue, eventually there it is flashing right now. It just started flashing. Vicinias long as it sees me n at the road, it will relax once more reporter a little taste of the Gm Super Cruise Technology we start Series Production in september. And the car should hit showrooms by october reporter the car watches you while you watch the road back to you guys while you are doing an interview, another perk of handsfree driving amazing, phil. What is the closest thing on the market to that thing, the tesla autopilot . Reporter johan just said, this is kind of fun. It will get compared to teslas auto system. But the key difference is you have a camera watching the eyes of the driver. It is engaging you you dont get that with the tesla autopilot system this is only on the highway, by the way, super cruise. This is not for driving in neighborhoods. You can only engage it on the highway. And eventually they probably will expand that technology. But for now, its only on the highway. Look at that, were in san francisco, and lo and behold, we are driving into some rain into some rain, did you say be careful keep your eyes open. Phil, thanks reporter it will make sure were doing that see you, guys. All right our phil lebeau. That was a first when we come back, the amazon echo show officially shipping today usa todays columnist will join us on his initial reaction. At first, well take a look at the big financial stocks stocks are surging thanks to treasury yields. Be right back on squawk alley. T looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Welcome to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com markets making up for yesterdays selloff the dow is up. Financials having their best day since the 9th of june. Minutes old. A babys skin is never more delicate. What do hospitals use to wash and protect it . Johnsons® the number 1 choices in hospitals. Amazon echo show is shipping they say it has some kinks but exciting new features. We are joined by ed bay. Ed, you say you expect this to be a hit now when i saw the first videos on this, i personally had how is this not a landline . What can it do that i cant do with an amazon tablet propped up on the table you can do all that the idea is it is very easy. You just use your voice, say call grandma and it will call grandma. Play the news. Now, obviously, with the regular echo, you can listen to audio news now you can see video including cnbc, by the way. Thats great then. Its convenient you listen to music, you want to see song lyrics, have a karaoke moment, that kind of thing do i think it will change the world . No its not the most beautiful looking object either, but it will be in the background until you need it. And seeing is believing. Or show and tell without the show part and not just tell. Is this signaling an era in tablets where tablets are just too complicated and now we need them to be so simple they are like appliances . A lot of what you mentioned, i should be able to do with the alexa app on the android tablet or some of them on the iphone. But this is stair natiostationay just less features it is less expensive. If you want to talk to grandma, you can get a hundred bucks off. There are some kinks i discovered but we see what is happening with voice, alexa, siri, google, et cetera. Voice will be a bigger deal moving forward the idea you can talk to this thing, the screen will pop up and it will presumably respond to what you want you want the weather, it will show you the forecast, it will show you clouds in the sky that kind of thing does it change the world no but i think it is just that extra is it better than what google has, google home and apples home pod they dont have screens so thats the big difference here this has a 7inch touch display. I suspect they will get there eventually with their own versions with screens. And i suspect, again, this is version 1 sp. 0 from amazon can you do this with a tablet . Yeah but its a simple appliance to keep it in the kitchen and just talk to it. Does it justify the price well, thats a relative question that we all have to grapple with im a graduate guy, so i will probably buy one i think the price will eventually come down its, again, its not for everybody right away and you may want to wait until they do fix the kinks. I dont think 230 is outrageous its not a bad speaker its not a great home speaker but better than the original echo speaker. Show us one of the best tricks. We probably cant show all the best tricks because when you make phone calls you need somebody to call but lets do something simple. Alexa, what is the weather in new york city . Currently, in new york its 71 degrees with clear skies and sun. Today, you can expect mostly sunny weather. With a high of 80 degrees and a low of 67 degrees. So, again, could you do that with the existing echo of course you could. Is it nice to see it yes, its nice to see it. I can do it with the iphone, too. You can do it with all these things it is not like you are doing anything you couldnt do in another way, but its the idea is its a convenient way to do it. Speak of the iphone, before you go, ed, tomorrow is the tenyear anniversary of the iphone being released. You were one of the first four reviewers to get an iphone you called it not perfect but worth the hype i think you had some cons on there, you want to see a removal battery, sorry, we still dont have that. And sd slot for adding dont have that either. But now we have Cloud Storage. We do have Cloud Storage and faster connection. We are off top edge network. Ten years later, what are your thoughts on how the iphone and touchscreens have changed the way we do everything well, all you have to do is walk outside here and everybody is like this, right . They are looking at this thing they have this, you know, th computer in their pocket, cliche, but it is true we just take it for granted. But think ten years ago, oh, my god, it doesnt have a fiscal keyboard, what would we do it did change everything there wouldnt be android without the iphone and its remarkable how that bet steve jobs did ten years ago and it was a big bet there was no guaranteed success, a billion phones later it paid off. There wouldnt be apples stock price without the iphone, which is the worlds most valuable company that they said it helped kill gun sales at the grocery register they declined 50 since 2007 because we used to wait in line at the grocery and buy all the little stuff, like gum and now we just look at the phone. Would uber exist without the iphone instagram, all the very valuable companies would not exist without the iphone last question about the echo show, can you ask it to play video from a variety of services will it do that . You can my 10yearold son already discovered that he can play a full movie on there through Amazon Prime Video you know, you can ask for the movie time, watch the trailer and in some cases, lets try it. Play the movie trailer for the mummy. Dont you have to call alexa first. Yes, thank you. Alexa, play the movie trailer for the mummy. Alexa, what are the movies playing nearby alexa, play the trailer for cars 3. There we go there it is alexa, stop that points to a couple Different Things one is Voice Technology in the past has required a quiet room were not in a quiet room. That will have to improve. Homes arent always it will have to improve the original echo works well in my house this one sometimes misheard me i dont know if that is something to easily fix, but youre absolutely right. Its got to work in all sorts of environments, especially if youve got a busy household. Can you train it to ignore the high pitched voices of children because the cars 3 trailer would be playing over and over again in my house. It was a big hit with my 10yearold son. So theres the future consumer that and captain underpants. Thank you, ed. Lets go to sue herrera for a quick news update. Good morning, sue. Good morning, guys. Heres whats happening at this hour, everyone abc says it has reached a settlement with the south dakota meat producer that filed a 1 billion lawsuit against the network. The suit confirms that a suit done by abc back in 2012 alleged the beef companies contained pink slime the defamation trial started earlier this month no terms of the settlement were released spain says police have arrested six suspected members of isis, four of them in spain and one in britain and germany the four arrests occurred where the cell was allegedly based a Police Helicopter fired on venezuelas supreme court. The chopper fired on the court with grenades, some of which did not detonate, helping to avoid any deaths here at home, phil jackson is out at New York Knicks president. Madison square garden chairman james dolan released a statement saying the two sides mu chilly agreed the knicks will be going in a different direction the knicks were 82166 in jacksons three full seasons running that team. We wish him well thats the news update this hour back downtown to squawk alley. John, back to you. Well get the european close with seema mody. There was a global cyber attack that hit Many Companies across the world take a look at the currencies. The euro is climbing after tuesdays complaints on inflation from the president mario draghi the bank might start to scale back on stimulus interestingly enough, the currency took a brief dip on reports that the ecb said the markets misjudged those comments now, draghi and Central Bank Chiefs from england, japan and canada are among those gathering at the ecb forum in portugal, mark carney said uk policies could hike Interest Rates if Business Investment increases. Carneys remark send sent the pound higher we have seen six consecutive rises. Look at bonds in the uk, the yields are spiking 1. 15 and finishing with two stocks, specific stories across europe getting a lot of attention, nestle planning the 20 billion buyback in the Largest Food Company look at the uk grosser tesco saying it will cut 1200 jobs at the head office as part of the ongoing costcutting initiative. Were looking at shares higher but year to date, down to 17 . Thank you. When we come back, more on the president targeting amazon and the tax bill but first, Rick Santelli, what are you watching reporter you know, im watching yields across the globe move higher this week. Maybe theyre not as high as yesterday, but a lot higher than last week. What does it mean . Have we seen the bottom in rates or are we establishing aew n range . Well talk about all that after the break. Approaching medicare eligibility . Dont put off checking out your Medicare Options until 65. Now is a good time to get the ball rolling. Medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help save you in outofpocket medical costs. Taking informed steps really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide and explore the range of aarp Medicare Supplement plans. All plans like these let you choose any doctor or hospital that accepts medicare patients. These are the only Medicare Supplement insurance plans endorsed by aarp. Call now and request your free decision guide. And start gathering the information you need to help you go long™. Im melissa lee. Taking the stocks in the right down beaten down trade sector. Plus, the financials to own before crucial stress test results are released today Morgan Stanleys analyst is with us live after sending out a note urging gm investors to get in after it was popping and a bigtime investor said he found another part of the sector to focus on that and more as we get underway at the top of the hour john looking forward to that, thank you, melissa President Trump taking to twitter once again this morning, this time targeting amazon the president tweeting, quote, the amazonwashingtonpost sometimes referred to as the guardian of amazon not paying internet taxes is fake news. We note that amazon does pay taxes. They have long criticized amazons tax position. Lets bring in robert frank with more reporter its the battle between the most powerful man in the world and the soontobe richest man in the world it just gets better every day. Trump has a history of going after jeff bezos for the taxes it started back in 2015 when trump accused bezos of buying the post as a tax dodge. He bought the post for 215 million. He said, washingtonpost loses money, a deduction, and gives owner jeff bezos power its the guardian of amazon not paying internet taxes. It was true for years that amazon didnt pay state sales taxes in many states and they also had a special structure in luxembourg to allow them to funnel a lot of the european profits through a low tax entity there but they have lost most of the benefits in europe they changed the rules and as we know, amazon now pays state sales taxes in all the states they collect it and the local and state tax rate for amazon for years after 2007 was arrest 13 thats about half the s p 500 average. Now its more like 24 just on the federal. So this is kind of an old story that trump is talking about here now the post became profitable under bezos ownership its no longer a deduction as it was back in 2015 as for whether bezos sees the post as political cover for amazon he tweeted about the post and said it and blue origin contributed to society and civilization in their own ways also, in a speech recently on newspapers, he said, quote, the post is not a philanthropic endeavor its worth noting here that bezos is very close to becoming the richest man in the world his network now topping 83 billion just behind gates who has 89 also interesting to note, on the latest forbes rich list, bezos gained 28 billion over the past year trump fell 220 spots with his net worth falling a billion from 4. 5 to 3. 5 one thing we do know about donald trump is, he cares about his net worth relative to everyone else. Guys, back to you. Yeah, robert, we still the market is going to have to figure out over time how to separate these tweets, whether theyre consequential or not whether they sort of point to a new era of scrutiny. Whether that is on taxes or antitrust or something else. Absolutely. And remember, theres the noise and theres the reality. Jeff bezos went to trump tower in december, visiting trump, i was told at the time it was a very cordial meeting again, he was at the white house more recently. So theres the bluster theres the tweets and then theres what really happens on the ground, clearly the market senses on amazons stock is this has much to do about nothing, at least in the economics. Have you looked at trumpsth in wor trumps net worth sinch became president , im sure it has gone up up we dont have an updated number the calculations take a year to sort through, but obviously m maralago, that property is worth more on the other hand, you have seen it weaken like the hotel in new york city. So we are still sorting through the cross currencies it is unclear whether it has gone up or down. Thank you, robert the bottom line, as far as amazon is concerned, they are paying sales taxes on internet sales. Lets go over to Rick Santelli in chicago with the santelli exchange. Hey, rick. Reporter hey, john i tell you what, its really been interesting watching treasuries of late because theres so much technical significance to them lets go to the board, shall we . You know, it was monday, a couple of days ago, when we really looked quite closely at the tenyear yield market in a real tight timeframe basically, from right before the election around the fourth of november to right around the election near the 14th what we found is it covered a heck of a lot of ground. The big move was 177 and 226 we divided in thirds and said the two areas to watch, 210 and 94 the top of that range was 226, all significant. Now, lets go to a chart i rarely use, the intraday chart this is an intraday chart for several weeks now. And what i want to draw your attention to is on the 14th of june was 210 the high yield we made just hours ago at 6 08 a. M. Eastern was 226. So we basically tested the top, we hit the level, the lower level, not only did we hit it on the 14th, but yesterday we got down to 211. This is significant. Now, granted, im telling you, this is more art than science. I willlike to look at closing yields, but you have to look at intraday as well what is the long and short of this in simple english we may have seen the low yield in 126, we hit the top of a new range. But in a timely fashion, every is 3s. I found over the years when you look at markets and fixed income space, equities are different, Foreign Exchange is different. But within three sessions, if we dont close above 226, thats the top of your range. And that will be the bottom of the range. Now, well switch gears a little bit. Mario draghi certainly incited a market move. And take backs are tough no matter what it is, takebacks are tough. Especially when the market doesnt complain many say the market is too complacent with central bankers. I think that many can tell when we Start Talking about the issue like mario draghi and the taper, it may not be tomorrow or the next day, but they are starting to take it serious we took a giant step back. Look at the chart. Blur your eyes a bit most technicians would be willing to bet the range at some point, we see 1. 15 at some point, its pretty hard to argue with. Rick, thank you when we return, lyft finally breaks its silence on ubers trouble. Well tell you what the president of lyft said next. And looking at stocks at this hour, as i mentioned, a bit of a reversal from yesterdays selloff the dow is off 145 points. The s p is up. 80 and the nasdaq is up almost a full percent tech is coming back today. Financials are ithe n lead more squawk alley after this the future isnt silver suits and houses on mars, its right now. Think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Lyft is breaking its silence on uber as the competitor struggles through the resignation of its cofounder, kalanick zimmer says, theres nothing to celebrate in this situation, but it does shine a light on values and ethics former yahoo ceo, marissa meier, defended kalanick at an event at silicon valley. Sail is incredibly tricky i count travis as one of miff friends. I think hes a wonderful leader. She went on to say, when youre scaling that fast, its hard to keep up. This is a weird, i think, comment from Marissa Mayer i understand friendship and loyalty and clearly she knows him on a personal level. The part about not knowing what was going on in the culture, i mean, he was very much a part of the culture. We all saw that video from the uber driver where hes addressing him, saying, youve got to take responsibility for your stuff, and im paraphrasing there. But he didnt know come on, i wonder what her angle is and as for lyft, the numbers show it is gaining market share. Usa today take a look, june 5th, 2017, it had about 22 market share plus 78 for uber. A year before, it was only 7. 7 fa7. 7 for lyft well keep an eye on that when we come back, googles click czar will join us on the cyberattacks dows up 164, a pretty good stdadth as we make up for yeerys losses and then some more squawk alley after this you always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Yet another Ransomware Attack is making its way through the internet this week, it affected Companies Like maersk and wpp, mondelez. How can companies and users protect themselves against Something Like this . Shuman is the cto looks like we lost him. Cto of shape security, formerly googles click fraud czar guys and i think the question is, why are so many of these old systems in use at some of the companies, which is something you alluded to earlier, which makes them especially vulnerable to these kind of Ransomware Attacks first wannacry in may and now this ransomware as well. Well try to get that shot back as youre talking, we got the dow up 162 just got a news halt on fedex. Halted for news. If you recall on wednesday, last wednesday, fedex beat 425, beat the estimate of 388 on their Quarterly Earnings revenue was ahead. Their forecast was pretty solid, but well see what the news on fedex could be overall, though, you look at the financials, its been a pretty solid rally that weve gotten after the market got a little bit wobbly yesterday, obviously, post yellen. Tech coming back, as well utility is the only sector in the red. I think we have the shot up now. Shuman is the cto of shape security, former google fraud tech czar. We were just talking about the fact that you say this is an illustration of the problems associated with old, insecure systems remaining in use how widespread is that problem speaking of systems, well work on ours and try to get you wonder if the cyber attack, if were the next victim, right . Sometimes getting shots up is a problem. As we take a look at some of these tech stocks and how theyre performing in this market, interesting to note, pandora, which has Just Announced a ceo change is up nearly 6 . Nutenex, a recently new ipo, up 8 you wonder if that bodes well for the likes of blue apron, having to adjust its ipo pricing down well see how that one done. Not quite playing in the same space as those two, but it tends to bode well when smaller companies, companies that have recently ipod are doing well in an environment and theres clearly demand. Bob pisani showed us earlier the index that tracks ipos are doing well names like broadcom got hammered yesterday, and some of the winners among the chips and technology companies, these have been the winners for the year and for the month. And were approaching the end of the month. So you could have some sort of profit taking going on but for now, back in rally mode, pretty strong. Nasdaq once again positive for the month of june, which would bring its monthly win streak to 8. Speaking of technology, one thing on apple here, Legendary Music executive jimmy ioveen was asked why he decided to partner with apple to lead apple music i wanted to get apple into streaming. And i wanted them to come into the business to help the business because theres they are the only company that can truly Blend Technology and liberal arts they were founded on that premise. And i wanted to do streaming there, and so we needed everything to be in one place. Talking a lot about apple as a streaming service. Of course, apple just hired those two executives from sony to get their original content Television Program kick started. They also offered him 3 billion. Lets not forget that. That helped. Like to bring him on board yeah, how about 3 billion . Okay, yeah with all of that, well watch to see if this rally survives the afternoon. Of course, the ccard test after the bell lets get over to headquarters and the half welcome to the halftime report. Im melissa lee in today for scott wapner top trade today in just a few hours, investors could get a bright green light to buy financials, as stress test results will be unveiled this afternoon. With us for the hour today, jim leventhal, steve weis, jon and pete najarian, and courtney gibson, president of loop capital. The topperforming sector of the day had a very strong day yesterday, as well, pete pete, i know youve been in on this trade youve been a financials evangelist what do you do and continue to be. And i think you can ride