About six points and the dow futures are down by 43. Overnight in area, the nikkei was down by 1. 6 the lesser gains for the hang seng and the shanghai composite which finished almost flat. If you want to take a look at early trading in european markets, across the board, you see some red arrows. The dax in germany down by. 7 . 75 decline for the cac in france and the ftse is down by 1. 3 . Take a look at crude oil ahead of tomorrows opec meeting. Oil was up 20r9 month, but you can see the wti this morning is down by 1. 5 to 48. 36. ] p e much more on that opec meeting in just a moment. Here are the big stories we are watching today. In corporate news, softbank selling at least 7. 9 billion in shares of alibaba. Softbank is softbanks largest shareholder. Its staples dropped now from 30 to 28 . Shari redstone says she has no interest in managing viacom. Red deny stone says on todays economic agenda, april Construction Spending out at 10 00 a. M. Eastern time as followed by the feds beige book at oclock p. M. The big automakers report there may Sales Numbers throughout the morning and afternoon. As for earnings, look for results from michael kors, lands end, and box after the close. The latest baby born in the United States with a mom suffering from zika virus. The babys mother contracted the virus in another country she was visiting the u. S. , but the baby was born with microcephally, or with an abnormally small head and brain. Officials are monitoring 300 women who were exposed to zika. Her mother is a mic they knew she had been exposed early on to zika. Even before the tests. Totally shifting gears, tells sa ceo elon musk do they even have gears in those cars . Probably not. You like the way they look. Im going to like the way they look. I like the way i look. I guarantee you, mens wearhouse, it might be coming back. Owners of teslas model three will not receive free unlimited access to the super charge network of charging stati stations. Oh, ghee. Unless they purchase a specific package. Can you really pull in there and say fill me up . Its been an amazing boom for anyone who has these cars. Newer not paying for gas or energy. You step in and go whew from wind or something. Ive been waiting to see when they would start charging for this. You have to have something. And somebody is paying for the power, by the way. Companys annual Shareholder Meeting to drive Long Distance with the model three. It appears to be the first time tesla has exclusively stated that the access will not be free for life. Theres no free lunches, we know that. Some businesses have free lurches, and politicians, i think. Thats not good, though. What do you mean . Its the american way. There are free lunches. Of course, theres some companies here that thats right. It comes without strings. Amazons ceo jeff bay zoen zoes spe bezos, here is what he said about some of the outside projects amazon is working on. Well see, will they turn into big trees . And Amazon Studios. I think Amazon Studios could turn into a its possible. What were doing with alexa and echo and natural language understanding. That involves into an artificially intelligent agent. I think there are going to be a bunch of artificially intelligent agents in the world. A bit like apps and is websites. And the same ai for everything. Some ais may be better at certain things than others. So you might i bet the average household will use a number of these. But i am being very sincere that those two seem very promising to me. Much more from the conference and key note speaker jeff bezos throughout the morning. I feel like well, you know, youre talking or reading or sleeping. That did happen a few times. It wasnt you. No, it wasnt me. Watching oil prices this morning, opec ministers are meeting in vienna. A few headlines coming from already, the uae guy, the oil minister, says crude is already correcting upwards. Meantime, reuters is reporting that the Venezuela Oil minister says we have a de facto freeze as global output is steady. We have results from krns oil survey. Is that the bug strip . I probably wants to stay there. Id want to stay there, too. They havetornados and all kinds of things there. Good morning. Just a day away from the highly anticipated opec meeting, and we pulled analysts, traders, to see what theyre expecting. The question, of course, to freeze or not treez . Most respondents think theres a 0 to 10 chance of a freeze. Remember, inaction from opec could have a big impact on the market. Just yesterday, the uae minister said he was happy with Market Conditions and that turns oil negative. Now, remember, the doha producer meeting in april, the issue there was a standoff. They couldnt agree and almost everybody we pulled thinks thats going to be the issue thlt. Much of the year, the crude price has been driven by oversupply or theyre adding others in here that they think politics will be the second biggest thing that move oil prices this year. And it proves to us that oim prices still matter. The demand has been key and thats been part of the rally that weve been seeing. At this point, we see a little bit of a demand in the pick up, but it is seasonal for summer driving. What i thought was most interesting about our survey was while many people believe the summer driving rally is going to end around july 4th and prices will temper a bit, more than 50 of our respondents feel wti is going to close the year right where we are now between 40 and 50 a barrel. Id say it will be around 75, 85, whether its 70. Well see a range between 65 and 75. There were big changes on the street, but our poll hit this had the last couple of times that we did it in terms of where they thought prices would be. We would hit the range exactly just right. So i think we have a good barometer. Not a Single Person in the world for oil at 27. Goldman was calling for the 20s. For more on the opec meeting, the only really good analyst around, tamar is with the director of the energy team in Corporate Solutions at nasdaq. And ill tell you something, tamar, ive seen that people think gold is acting like it acted the last time the fed was going hike rates. So it can affect gold, it can affect oil. You think gold is hard to get bullish on this as long as the fed might be leaning intiet, but the fed might be leaning into it for a good reason, which i would think would make demand better for oil. Its hard to figure out how the to weigh those factors, which is more important. Good morning. Thanks for having me. I think that there are were in this over a correction phase and the supply demand rebalancing process. So were in a inbetween moment. Overcorrection and coming back with 50 orr overcorrection and getting down from where it was . Sort of correction is on the way back up. The correction from the oil prices. I think we were in that we went too far . In the sense that were in this correction of the oversupply situation for the supply demand process and were correcting higher from there. But there are a lot of factors that are positive and a lot of factors that are negative and its difficult for the market to know which one to focus on without an external incident such as the fed setting direction for the u. S. Dollar. I think that the fed is much more important right now than opec is. Really . Absolutely. Thats pretty amazing. The fed all the sudden got hawkish, even for maybe june and at the latest july, they got hawkish because of economic data, which would support demand globally for oil, right . Right. But that should pressure oil in the sense that if the dollar is stronger, what weve seen in the past couple of weeks is that this rally has been driven by strength rather than in deferred prices. So it really shows that this is the era of speculative trading, traders, hedge funds, these are not commercial users driving Oil Prices Higher right now. So i think that the dollar will be an important determinant in terms of whether funds go, which will set the trajectory of oil prices, at least over the next six months. Is the price back to a point where marginal suppliers will start drilling again, start opening up closed thats what got us a lot of people got out at 30, right . They shut things down at 30. Are they coming back in at 50 or are they still shut down . Thats the big wild card in the u. S. We saw this last year in the spring. That was a rally that was too far too fast and it was selfdefeating because production came back online. In the u. S. Right now, its a little bit of an unknown. Most of these emp Companies Set their budgets in january and february of this year when oil prices were at that 27 level. So if they were forecasting 40 and were now at 50, the question is is that enough of an upside to trigger more drilling to coming back online because its higher than what they had been forecasting. Yeah. And thats really the wild card right now. I think a lot of shale producers are cautious about it. Many of the analysts we polled said they dont expect to see a repeat of what we saw last year. June. They do expect it to be a little bit more steady. And that brengs us back to the opec meeting, which is why would the saudis, why would any of the opec members want to do anything . With oil at 59, a much better position than they were when oil prices were at 26. So if they feel like this market is stabilizing in its bottom, then theyre in good shape if they move forward. So by the enof the year, what are you saying . 50 . Maybe a couple of dollars higher from here. Its going to be choppy. A couple dollars high, couple dollars lower . It will be a choppy market. Not going back to 30 . I dont think so. And we wont hit 60 . Not this year. And i think even in the next two years were sort of tapped out at 70. All right. Thank you. Thanks for having me. Thank you. Thank you. Coming up, the dow and the s p extending monthly winning streaks, but the nasdaq standing out with its fifth straight month of gains. Were going to talk Market Strategy and the expectations for a rate hike. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Welcome back, everybody. June is often described pass best month for stocks. But this year it could be more interesting. Joining us now, justin tyler and right here on set with us is sarat seppi. Hes a cnbc contributor and serat, you think that a fed hike is coming, but not until after the brexit decision is made . I do. You saw the data yesterday. It showed they might actually vote to leave. Exactly. All the data beforehahn was pointing more and more that they were going to stay. All of a sudden, you add uncertain ty to the pie, i thin the fed is going to wait. Theres no reason for them to go right now. Even if the data comes out stronger than it is, the uncertainty out there, oil prices, election, lets just wait for brexit and potentially have a shortterm you think theyre definitely leaning towards hiking rates, though . I do. All the signals and all the talk of the governors and fed officials said, look, things are point to go that direction. Were not going to keep rates this low, especially the economy. If employment and is wages, all the data is showing we are getting underlying growth or inflation. Michael, you agree with sarats assessment of this, in fe raise rates in july, what do you think the Market Reaction is . I agree. I think july is the most likely time and well probably see one more hike later this year, as well. I think the markets are prepared to accept that. And you see that the futures markets are predicting that Something Like 58 , 60 probability of a hike. Bond markets and stock markets are feeling comfortable right now about that. So i think that there might be a little ripple, but it shouldnt have a big impact at this point and it is needed. You know, it does seem like the markets reacting rather calmly, but i wonder what happens as we get into the summer months. People may have been anticipating all of these issues, but youre always doing what that sell in may and go away strategy. If youre dealing with markets that are a little less liquid than they had been, does that leave more room for volatility . I dont know. Theres also the summer rallies. I think the more challenging issue is whats going to surprise people. I think one of the worst fears is inflation. Which we havent talked about in years. Core inflation is running at 2 and has been for a few months. Thats so far not been a problem, but if wages continue to pick up, if unemployment ticks down yet again, so a lot will ride on whats going to happen in the jobs machine coming out friday and, again, next months jobs number. If we start seeing that on top of the price increases we saw yesterday on top of several other areas, it could mean inflation starting to come back. But if inflation is starting to come back, are you suggesting that would spook the market . If were ready for a fed rate hike, it must be that were ready to start this seeing things like inflation, too, right . At a moderate level, yes. I think surprises could happen. Im not saying they will, but they could happen. If they do, its more likely to be a higher inflation surprise than a lore inflation surprise. And that could spook the markets temporarily. Pl plus, the market is pretty close to its alltime high. Theres room for it to give up more. What sectors do you like right now, if youre looking at the markets calmly accept ago potential rate hike and probably just one, we probably wont see more in the immediate future. I think one of the things that you can see is potentially if rates move up, you might get this trade where consumer staples, telecom utah utilities, you can see see a rotation of that into more industrial cyclicals. Growth year stocks that do well when you have pricing pressure as opposed to people who are hiding out because they couldnt do anything in bonds. That is what you might see turn the market you said down. But within that, you could see opportunities for investment. Financial ves come alive. And that rotation is already happening. But you havent seen money coming out of staples yet and utilities, which i think could spook the markets and give more of a volatility in the long run. Would that happen even if its a one and done rate hike and we dont see anything else since like december . Well, markets sometimes try and move ahead of whats going to happen in december. And if december is one and maybe next year, what this could add and all of a sudden people move to cash especially in the summer months when theres less trading going on. Waiting for an opportunity . Waiting for an opportunity. And they say hey, we made a lot of money in these sectors. I think thats where the potential opportunity is or where you could lose some money. Are we going to start worry background china again . The daddy overnight was not good. Sort of a reminder of what has been a train wreck over there. We sort of took our eye off the ball for a little bit because we moved away from the thought wirnl going to have a recession. But now is that going to be front and center again . If the dollar gets stronger again and you see that currency start to devalue, theyre going to actually start feeling the effects of all this. And i think that globally is going to affect them. When oil was down to 25, 30, oil being back at 50, thats one of the impact of Commodity Prices going up, as well. Something to watch to see what the chinese are going to to do, especially as we start raising rates. If our currency gets strong we shall that, as you know, last august caused a massive reglobalization of the markets, as well. Michael, go ahead. When you think about it, the continuing impact of negative rates overseas, especially in europe and japan. Because with that happening there and the federationing here, you do run the potential of the dollar getting so strong or the yield curve flattening out as long rates are driven by currency exchange. That could start scaring markets, as well. Theres concern there. So watch for the currency markets, watch for inflation. Michael, thank you for joining us today and serat, thanks again. Coming up, the Worlds Largest d. C. Firm managed by millennials getting a fresh round of funding. The founder of room ewe husband capital. Plus, millennial stereotypes in the workplace. Welcome back to squawk box. U. S. Equity futures at this hour, down 55 points on the dow, managed to eek out a 1 gain in may to keep the street going. The s p is indicated down seven, the nasdaq indicated down just under actually, just over 11 points. Jeff bezos speaking last night at the code conference out in california. Here is what he said when asked about the legal battle between gawker and hulk hogan. My view on this and i dont know the details of this particular situation. I dont think i really need to because im thinking i want to take it up a level and talk about some of the principals that i think would in my mind would apply here. And look, you happen, i can take this from a couple of directions, but you know the old saying that sometimes you know, i think its attributed to confushus. He knows if its reconfuse yush or not. Seek revenge and one for yourself. As a public figure, the best defense against and, again, im not trying to get into any particular story. This is not about peter or gawker or any principal thing. But the best defense to speech that you dont like about yourself as a public figure is to develop a thick skin. Its really the only effective defense. Because we cant stop it. If youre doing anything interesting in the world, youre going to have critics. The only way if you absolutely cant tolerate critics, then dont do anything new or interesting. This country has the best free spooeb speech protection from the world because of the constitution, but also because of our cultural knowledge. And you dont want to erode those. You dont want to create any kind of climate of fear or chill with respect to free speech norm. And the most important thing to remember about that is that beautiful speech doesnt need protection. Its ugly speech that needs protection. Well have much more from the conference and key note speaker jeff bezos through wrought the morning. Right now, its time for todays executive edge. New rounds of funding making it the largest d. C. Firm managed by millennials. Romulus, joining us right now is chris negusta, founder and managing partner of roam ewe husband capital. Thanks for being here today. Thanks for having me. You were looking to try and find and Fund Entrepreneurs come out of the Harvard Research area . Thats right. What happened . Weve done a lot with that. We started in l. A. , there was a big gap in the adventure. To actually help big businesses and we thought institutions and many others held a lot of unfulfilled promise and thats what we went after. You mentioned at the top that you are now the largest funded d. C. Firm that is run entirely by ma lynn rals. With what are the up sides and down sides to having millennials inturlily in charge. Its an organization that just increases. In ten years, we see a lot more than any other generation. So it helps us when it comes to running a company. It helps us as a venture firm can connect with the people who are starting these companies and coming up with new ideas and getting them out in the market. In terms of invasion, i understand things are changing more rapidly. But i think back to my great grandparents who saw the invention of the automobile, the inventions of air plans. It doesnt seem like the same pace of generation. I think thats a broader question. But at the enof the day, if you look at corporations today, why they suffer . Because theyre not agile enough. I think thats where they can use some millennial help. A lot of firms will say were here because we have 50 years of experience, we have advisers who have been through crashes and seen this happen before. How do you counter balance . Obviously you want millennials who are rapidly dealing with change. Well, we have an ip vedble group of investors, all individuals and families half from the u. S. And half from abroad. All of them are individuals who have run businesses, managed powerful firms for decades. So we get on of sage advice for them. But we started like a startup at an m. I. T. Dorm room. I think thats connecting it. Lets talk about the real estate marketing. What does it do . Its the largest for brokers around the country. One of our big themes at romulus is we think a lot of Old Fashioned mysteries arent Old Fashioned. They just need help on how to use technology in their business. Of the other companies youre invested in, lets maybe talk about two others. Yeah. Youve got a company that builds table tops and devices for restaurants, help people pay, order, helping restaurants create revenue. And then weve got a company doing health care optimization. And youre going to see that theme play out a lot more. That makes sense. It seems like so many of these hospitals that make those big purchases are trying to keep those machines busy all the time. And theyre idle about 50 of the time. When you have all your partners under the age of 0, its likely that none of you remember other than what youve read about the dotcom crash. I was sort of wondering how that lack of perspective, if you will, of that period plays into the way you think about whats happening now. Its a great question. I started the firm a month before the crash. Ive seen the absolute bottom. And as an early state inventory you the firm, in some ways, we cant wait to see that actualzation happen again. I think it trickles down. And fundamentally, its too much capital. Theyre all great companies. The balance, sort of what youre trying to do, wanting companies to go the public, can you be patient enough at this stage . Yeah. As a firm for us, all we care about is revenues and profits. How do we make sure our companies are winning customers, building revenues and making sure the economics look good . How thexPublic Markets play is out of our hands. How difficult was this round of fundraising . And whats the pitch that you took to investors . Well, look, we went from managing 850,000 to 150 million. Were young, weve seen it firsthand. Weve come up with these companies and, b, were all about building versus betting. A lot of venture firms out there are just playing the lottery. When you show youre looking for things like revenue, that means youre not looking for the pep. Com. We do a lot of technology to Old Fashioned verticals, a lot of Research Driven intelligence. Let me ask you about ai. The runway for that is long. It is lock, yeah. I think if i look at the next wave of ai, i get excited about incorporating human psychology. If you want computers to act and think like human beings, they have to think about think like human beings. We dont need machines acting like people, do we . Well, whether we need it or not, i think thats the way the world neurotic, anxious, arrogant. They need to know how to decipher humans, right . Yeah. Thats all we need. Arrogant, fearful, in computers. We would all be dead. Thats how the terminator happened, dude. Thats the next hunter killers and theyre hunting you down because theyre mad. Do you want computers mad . Youre opening yourself up here. I dont know. Id like them to stay even keel. I think if you incorporate more intelligence, theyre just more intelligence. I think it makes them more powerful. Im of the view that a smarter computer can benefit society. Hopefully neither you or i will be around to see the takeover. I cant do that, david. I cant get back. Can you imagine . I can imagine. Dont go into space. Dont go outside the ship. Thats the computer running it and its mad. Were mining frack, go to get the singulairty done. Download my brain on to hardware so i can live as long as i want. I was in a Professors Lab on friday who is focusing on specifically how to map the brain. Within the next 40 years, do you think . I think were going to see a lot of progress on the brain in the next ten years. That will affect ai. Its hard to understand the human brain literally. Krishna, thank you for come in. Coming up, its been a bruising year for hedge funds, but did mays market gains help stop the bleeding . Kate kelly has a onedown of the monthly returns and the worlds biggest investors. As we head to break, a quick check on whats happening with the markets right now. The call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Kate kelly joins us now with a whether or not at the Hedge Fund Performance in may. Not really. The yearly results are in. We got in long shore hedge funds last night right after the close of business on the end of the month day. So far, the results not great. Green light capital, they actually had had a pretty bad may, down about 1. 9 . However, because they started a little bit ahead, theyre up about 1. 1 now on the year through may. Third point had a strong may, up about 1. 7 for the month of may. So that tells you they were starting from the red, but they made that come down in may and now theyre in the black. Pushing square, take a look at the late month figure. S. We dont have the end of month quite yet. But they were down 20. 5 for the year and i threw in a macro fund which, again, this isnt a final may number, but to give you a feel tore that space. Attitudeo bvi global, down fractionally and down for the year 3 . So a mix hadded bag. The only fund there doing well is third point, well being defined by simply generating return, even iffite subpar compared to the market. Hedge Fund Performance down just as a reminder. Nos may numbers night quite up yet. Nobody is winning any prizes there in terms of performance. I mean, i tweeted out some of these numbers last night as i got them. And is people were attacking hedge funds for not deserving their fees, not having any good idea. One interesting thing, the filings of some of the most popular positions that all managers are in show some of the most popular long positions were great for the month. Were talking about like alphabet, facebook, apple. And to the extent that these hedge funds would have done pretty well, and we know david iron horn is a long time apple hold holder. But whatever it was, these names were not enough. When a raj come person asks you to deliver these results, why is it so hard in the Hedge Fund Business to make money right now . I was going to Say Something that sounds counterintuitive. One thing has been overcrowding. You think about valiant pharmaceuticals. Theyre down i guess 80 odd percent over the last 12 months, famously bill ackman pushing square holding, a long position that many other hedge funds piled into. Not only did everybody lose, but the looses were amplified because there was so much in the tham. I think weve seen that with some of the underperformance stocks. But also, i think in macroland, its so tough to anticipate what Central Banks are going to do. Its so tough to anticipate geopolitics sometimes. When you think about doha this week, obviously, and jackie was saying this, the consensus is no production freeze and theres reason to think that will be the case. But who knows. Brexit, probably in the market at this point. There could be results that in a nuanced way surprised the markets. So theres just so much happening on the world stage and then so much crowding and some of these stock names. But there are at least two factors that i think give people trouble. Thats pretty intense. If they cant beat the markets with the you know, the clothes come off the emperor pretty quickly. But there are guys like peter lynch that you thought, wow, this guy, bill miller, year after year. But the flat market, so you actually do have to be good at what youre doing. And not that many people are i think tepper. From what i understand, hes roughly flat on the year. I mean, its fun to watch. I mean, its really satisfying. It is a shot. And youre not these guys make 1 billion a year and they cant beat the market . I think its hilarious. Closer to 30 down to 27 , 25 . That is still higher than what a lot of other hedge funds charge. A good competitor thats 2 and 20 were talking. Its 25 and 2. 25, 2. 5 been Something Like that. Jim palmer is on the show. Its a game winner. This guy or someone that can hit, right . Jeter was on a couple weeks ago. Its not the same thing. Well, i i dont idolize him any more on halftime report. Okay . I dont know. Just dont you know, i dont think you as long as you ask them the right questions, right . I can make fun of them. Thank you. Bring him down to our level. Theyve got a lot of money. A long way to go. Coming up, the tech sector outperforming the Broader Market in may. That is the topics of the next installment of whats working, the series that well be talking to once again. Were going to take a look at opportunity and technology right after the break. And post your jb to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer6. The nasdaq coming off its fifth straight day of gains. Now up more than 8 in the past three months as investors search for the best place to park their money ahead of the fed meeting. Joining us now is david katz. Welcome. Good to see you. Nice to be here. Its been a nice run for tech. Dos it continue . We think that its going to be more spotty. More ups and downs. We wouldnt chase the rally. There are opportunities in technology but you dont want to buy something just because its up. Isnt it just getting started, though . Some of these names have just started to pick up in what otherwise has been a fairly flat market. This year theyre just getting started. Over the lost 50 or so weeks theyve lost. Things like crisco or microsoft are still selling at pretty reasonable valuations. Those are good places to put money. Its been broughtbased lately. Whether its cloud. Old tech. The f. A. N. G. S have started working in unison. The market has been very thematic. Of late you have had technology running, the financials running. We wouldnt chase a theme. Wed rather look at selectivity and look at individual stocks. So youre picking individual names within, say if i say what old tech youre not buying as a group. You like crisco specifically. What about intel. It has good cash flow and dividend but we think there are better places to make money in technology. We prefer civintel or crisco. What about apple . Weve started to buy it below 95. We think ultimately it will go to 120, 130. We would not chase it right here. If it pulls back its making a little bit of money for us. We think ultimately it will be moving higher but it will be volatile. We wouldnt chase it into doing well. Why do you like it now . There are questions about the longterm future, but the valuation is compelling. Its selling under ten times earnings. It has a powerful portfolio. One of the strongest brands in the world. Great balance sheet. Lots of cash. The valuation is so compelling. A year ago if i asked you that question and you said the valuation was compelling people have been saying that for the last several years. You could say its ten times, nine times, 11 times we did not see great visibility Going Forward and the valuation was a little bit richer than wed like. Sub 95 we think the stock got to a price that its too cheap. We think the next product cycle, the iphone 7 will be good which should drive the stock higher. What about amazon . Amazon is a great company. I buy from there and we get boxes there on a daily basis but the stock is richly priced and wed not buy into it at these levels. You have to pay up for growth of some of these names. 15 years ago we were asked about microsoft andcisco. When youre buying something at 60 or 70 times earnings there is no margin for error. If things slow down the stock can come down a lot. We think its a wonderful company. If you wanted to own a f. A. N. G. Stock, we think google has very good prospects and is at a more reasonable 20, 25 times earnings. You dont own that, though. We dont. Im saying, if you wanted to own one f. A. N. G. Stock its the best. Better than facebook . In terms of where we think it goes in the next do you own facebook . We dont. Well be back in four years. We think microsoft has become a cloud play but youre buying it at say 18 times earnings. David katz, matrix. Jeff bezos speaking at the code conference last night in california. Here is what he said when asked about apples battle with the government over privacy. Then you get into sort of the the tension between privacy and national security, and thats what you see. Were very likeminded with apple on this point. We filed an amicus brief on their behalf. I believe it is an issue of their age. We, as a citizenrun democracy, are going to have to deal with that. You try to protect the data on somebodys phone, and you know, turns out its not as protected as you thought it was. So when youre you know, the bad guys get better and the good guys have to get better. Well have much more from the code conference and keynote speaker jeff bezos throughout the morning. Our guest house for the next hour is senator Majority Leader Mitch Mcconnell. He is here to talk politics, the economy, his new book the long game. singing you wouldnt haul a load without checking your clearance. So why would you invest without checking brokercheck . Check your broker with brokercheck. The gop nominee fighting the press and potentially a new thirdparty candidate. Senate Majority Leader Mitch Mcconnell is lining up behind the donald. Hell join us to talk the race for the white house, battling obama and the long game. On capitol hill. A special hour is straight ahead. A big warning from bezos, the amazon ceo and Washington Post owner taking the stage at the code conference. His fighting words for mr. Trump and more minutes away. Plus, the piano man, billy joel, weighing in on election, the song and donalds comments coming up as the second hour of squawk box begins right now. Friday night i crashed your party, saturday i said im sorry live from the beating heart of business, new york city, this is squawk box. I was only having fun welcome back to squawk box, every one. On cnbc first in business worldwide. Im Rebecca Quick along with joe kernen and scott wapner. This is the first trading day of the month. Looks like weve seen red arrows. S p 500 down by 6 points below fair value. Dow futures down by 49. Nasdaq down close to 10. After a winning month for all three major indices last month. Oil prices under pressure late in the session yesterday. The pressure has continued this morning. Wti is now down by about 62 cents to 48. 48. In the headlines this morning, a busy day or economic numbers with may auto sales. The ism Manufacturing Index and april Construction Spending all ahead. Well also be getting the feds beige book at 2 00 p. M. Eastern. Valeant Pharmaceuticals Says it will discussed its delayed firstquarter Financial Results next tuesday and it expects to file its report june 10th. Japanese Prime Minister shinzo abe has delayed a scheduled sales tax increase by two and a half years. The move comes amid economic weakness in that country, but its also increasing doubts about the outlook for abes planned fiscal reforms. Shari redstone saying she has no desire to manage viacom or chair the board. Her response to a letter from the directors vowing to fight any attempt to try to oust them from the board. Last week a spokesman for redstone saying they were planning on ousting Philippe Dauman and the board of directors. Coming after a legal battle to see who will be mr. Redstones guiding person and Shari Redstone is that at this point. Apple reportedly plans to issue bonds. Bonds in taiwan. For the first time, the aim, to raise a billion dollars. The planned offering will help apple secure solid partnerships with its partners. Taiwan is home to its massive supply chain which includes iphone manufacturer fox con. Under armour cutting Sales Outlook citing Sports Authoritys banks ruptcy and litigation. Saying it will only realize a quarter of the revenue it had been expected to get from the retailer. Checking on shares of under armour in the premarket, down 4. 5 . Nike downgraded to equal weight from overweight at morgan stanley. Price target being cut to 60. Morgan stanley analysts argue the us apparel category is weakening. The stock is down by 3. 3 . The analyst has been interesting in this space. I would say within the last six months hes put out two 50page reports negative on under armour. He has been sort of negative on that name. Now its interesting to see hes turned a little bit more do yuri guess, on nike. The Sports Authority thing had nothing to do with this guys notes. The comments that under armour made relative to Sports Authority were interesting. I was just in a Sports Authority two days ago, everything like the under armour stuff and nike stuff, if its on sale in the liquidation its only 10 off. Theyre not giving that stuff away. The question of being able to collect on those on that the receivables or what happens to it. If nike is having problems, apparel is tough. The stock price. 70 to 53. Under armour started to go down when Jordan Spieth hit the first shot on 12, i think. At augusta. Though you saw what happened. I wouldnt short Jordan Spieth. You saw what happened with steph now. The finals. Thats true too. Should get the bump. All i am saying is that this analyst is somewhat controversial in the way that he has viewed the stocks within this space within the last six months. Staples ceo ron sergeant, nice transition seamless, wasnt it . Thats you. Thats yeah. Just smooth. Smooth. Smooth. Ron sergeant. Go. Will step down after the companys iannual meeting on jue 14th after a federal judge ordered to halt the move with office depot. Amazon ceo and the owner of the Washington Post announcing Donald Trumps attacks against the media last night on stage at the code conference. Bezos brought up the president ial candidate during the conference, but when the audience member asked about the election and trump, mr. Bezos defended the press. One thing that i think is not appropriate that that donald trump is doing is, i think, working to freeze or chill the media that are examining him. Its just a fact that we live in a world where half the population on this planet, if you criticize your leader, there is a good chance youll go to jail or worse. And we live in this amazing democracy with amazing freedom of speech. And a president ial candidate should embrace that. They should say, im running for president of the most important country in the world. I expect to be scrutinized. Please examine me. Thats a very important cultural norm. And the cultural norms are, would you the cultural norms, the constitution is just a piece of paper. Should correct that. Bezos did not bring up trump. These were questions brought up by someone in the audience. Bezos deflected the questioners attempt asking about whether he would donate money or take other actions to try to stop trump. More coming up from the code concerns in the next hour. Or whether he would give money to try to help trump, i guess, since we dont know where he stands at this point. Guest host for the next hour is a man who has been a battler all his life. From a bout with polio as a child to 30plus years of skirmishes on capitol hill to his current relationship with president obama. Thats one of the chapters in his book. Freudian slip. The lecturer in chief. Senate Majority Leader Mitch Mcconnell joins us. Hes here to talk about his new book called the long game, a memoir well talk trump and the economy. Good to be here. Boehner says i came from a bar in cincinnati to lead the house. I am from cincinnati too. I get to interview the Senate Majority leader. Its great. Salt of the earth. Louisville is not a bad city. Its not cincinnati but its not a bad city. The long game. Youre probably talking, tortoise and the hare, i think. You know what a snail says riding on a tortoise. Whee you knew that. Thats basically i think as we get older, i think we all start thinking the long game was the right one, unless youre burned out and not doing much by the time youre 45, the long game is the way to go in life, isnt it . I have always been a bit skeptical of overnight sensations and people who have simple answers to complex problems. For most of us, i think success in whatever way we define it depends on early preparation, hard work. A good friend of mine once said, amazingly enough, the harder i work, the luckier i get. Thats been my story and i think most americans who succeed in whatever walk of life they choose, that early preparation and sticking to it and refusing to be defeated by the inevitable speed bumps of life that we all run into is the key to success. Well shift into well segue appropriately here. So talk about you and speaker ryan in terms of the long game. Some might say he might that would explain things, playing the long game here in his most powerful guy in the house not backing the nominee of the Republican Party. Maybe hes thinking 2020. Maybe hes thinking long game in terms of holding the house. You want to hold the senate too but youre doing it a different way. Youre Backing Trump but your appointing out that the president cant control everything. If there is a still a Republican Senate and a republican house, that, you know, its hard to be a rogue president , although i dont know, recently. But is that fair to say, that there are two ways to play the long game here . Here is the way i see the president ial election. Trump, whether you like him or not, won it. He went out primary after primary after primary and got the most votes. In this country the way you get to a Political Office is to win the election. He has done that. And i think, for me, kind of lecturing the voters on their judgment here is not something i am comfortable with. I think he has earned the nomination. Secondly, for those of us who think the eight years of barack obama have been pretty dreary for the country, and you look at where the average american is today. Back to 2007 before the meltdown, three to four years worse off from the beginning of president obamas term to today, 1300 a year worse off. People have a right to be upset. And i dont think four more years like the last eight is good for the country. I know Hillary Clinton will be a third term for barack obama. The same policies, the same overregulation, the same thing that you all see and report in business every day. Every sector of our society is dramatically overregulated. We have our foot on the brake. We need to take it off the brake and put it on the accelerator. Do i agree with a lot of things trump says . No. I know one thing for sure. He will go in a different direction. I do think that the constitution and the traditions of this country constrain all of us, those of us in congress and those of us in the white house, from some of our impulses, shall i say, that wed like to pursue. So the constitution, the framework, can handle a donald Trump Presidency . I think so. Even if the president is the same as the candidate, you think it can. I would like to see a more thoughtful trump. I ran into him at the n. R. A. Convention in louisville a couple weeks ago. We were in the green room. I said, hey, donald, are you going to use a script . He took it out of his pocket. He said, i hate scripts. Theyre boring. I do too. Yeah. Theyre boring. The audience doesnt like them. I said put me down for boring. I am in the boring caucus. I think its important for you to lay out things with specificity which, for anybody, requires a script. I stayed behind to watch his speech. He did his did it his way for a while. Then he pulled the skipt ocript and read it, and it was boring, but he made the points he needed to make to that audience. So thats what i would like to see more of. I would like to see a pivot in the direction of a more scripted candidate. Is kristol and his friends and mitt romney, are they playing the long game . They dont know that, if trump loses it will be Hillary Clinton . Isnt it binary . Thats a big word for me. But isnt it either or . Isnt it clear . Thats the way it works. I have two words for bill kristol. Supreme court. This next president will fill the vacancy that will determine whether the court is center right or center left for a generation. Bill crystal and mccain and others have concerns you could win the election but lose the party. Were not going to lose the party. Donald trump is not going to change what i think or the platform and the views of the Republican Party. I think we are much more likely to change him because, if he is president , hes going to have to deal within sort of the right of center world which is where most of us are. Ill say this for president obama, the party has done great during his eight years. 54 senators. The greatest number of House Republicans since the 20s. 31 governors. More legislators, numerically and control of the legislatures in the country of anybody than we have had in 100 years. The one office weve had trouble winning is the most important office. I do think that trumps rather inflammatory remarks about hispanics, for example, is a mistake. I think it needs to be reversed. This is not the america it was in 1980 when reagan got elected. 84 of americans were white. This november it will be 70. They look at trumps voters that he is bringing in as the reagan democrats. But trump is where he is because the senate and the house have allowed the borders to remain totally open in the south. I mean, embracing hispanics and securing our border are not, you know, mutually exclusive elements. I agree. Another country where i try to explain to my kids. They talk about oh, but he doesnt like immigrants. Have you ever gone to europe where you dont wait in the line with your passport . If a country doesnt secure its borders its not a country. I dont disagree with trump on that. Thats why you have this ground swell, because congress hasnt been anything about it. Im talking about the gratuitous attack on suzanne martinez, the chairman of the doesnt endorse trump, doesnt come to his rally in new mexico. That doesnt get you attacked. There plenty of people who havent endorsed trump. You dont disagree with his policies. You and i dont disagree on border control. I dont like his gratuitous attacks. Its his rhetoric, not his policies that you take issue with . I think we can do a better job of controlling the border. We brought up president obama. Hell lean in today on the election. I dont remember w. I dont remember a president for getting so involved in the next election. Maybe trump, he figures, there has never been a guy like trump running, and maybe that gives him license, i got to get involved in what america does in the next election. Do you think . Who are you talking about . President obama. Hes giving a speech today on the next election. Sitting president s dont typically get quite as involved in the subsequent election. Oh really . I hadnt noticed that. Do they get involved . Absolutely. W. Never said a word. The only reason he went quiet in 2008, we had serious problems, the financial meltdown. We had the unpopularity of the iraq war. It was a calculated decision. The guy before him. No. But president s obviously care about it a lot. Bill had issues on the way out i guess, too. Look, i think there is no question that every president would like to be succeeded by someone of like mind. And there is no question barack obama wants Hillary Clinton to win this election because he knows, if she does, his policies will continue for another four years. And thats the core point, i think, for this november. Go ahead. If i could ask you if we talk about sort of the relationship between republicans and democrats and the president and the things that either have happened over the last eight years or didnt, how much responsibility do you think you and your colleagues on that side of the isaisle deserve for the fact that not as much has gotten done as should have . Quite a lot has gotten done. Apparently you didnt notice. There has been a constructive tone on capitol hill. The first two years the president got everything he wanted. He had 60 votes in the senate, the magic number. 40seat majority in the house. Stimulus. Obamacare, doddfrank. All the things you talk about every morning. He had it his way. The American People took a look at that two years in. They were suffering from buyers remorse and went in a different direction, changed the house, made me the leader of a more conkwenco consequential minority in the senate and the president had a choice as bill clinton had. Do i hang in the center or pivot to the left. Clinton went to the middle. We had welfare reform and balanced the budgets on a bipartisan basis. Obama stayed on the left. He attacked every sector of our economy through this regulatory rampage thats been going on all across the country. And so the opportunity for doing big stuff that needs to be done like, entitlement eligibility. Which as you all know, if we dont change that well tank the whole country. Like comprehensive tax reform. You cant do with this guy because he wont come to the middle. As the new majority leader two years ago and ill wrap this up what did i decide . Well, the American People have chosen a divided government. They frequently do that. What does that mean . That means theyve they want us to look for things we can agree on and do those. So if youll indulge me, we put the Keystone Pipeline on his dec desk. Vetoed. Trade. Rewrite of no child left behind. Passed a fiveyear highway bill. That hasnt been done in 20 years. Cyber security. Permanent r d tax credit. Permanent 179 expensing. Internet tax moratorium. Comprehensive energy bill and heroin and opioid bill. Were funding each of the bills that fund the government, the appropriation bills to avoid the big omnibus that the public hates so much at the end of the year. Were not doing nothing. Dysfunction is over in the senate. But we cannot do the really big stuff because obama is very, very leftwing. I am saying sort of dysfunction all the way around. Democrats may have mischaracterized your comments several years ago about the single most important thing is making sure that barack obama is a oneterm president. You didnt say that when they suggest you did. The motive in how you said it and what you were speaking about wasnt exactly as though as it was characterized by that side of the aisle. But nonetheless it sort of portrayed the kind of div isiveness in washington and that some say would make it more difficult to get things done because of that tone. I said that two years in. I know when you said it. I said it two years in. The second part i said was in the meantime we need to look for things we can do and accomplish them. That part was snipped off. Only bob woodward with the Washington Post stood up for me and said, you didnt finish mcconnells quote. Biden and i did three major deals after i said that. I havent been averse to doing things with the administration when we needed to. Extend the tax cuts. Raise the debt ceiling. Permanent tax relief at the end of 2012. There havent been as many opportunities to do what we need to do for the country because the president is not become ail clinton and hes not Ronald Reagan. Certainly in modern american politics for someone to say, we need to stop this person from being president at all costs because of what his policies will bring thats the mantra of the both sides now. People want to stop hillary. People want to stop donald trump. Sure. The most important thing, not about its nothing hey, when you said that i but completely you dont want the policies that president obama is espousing. You dont want those. It was portrayed by one side of the aisle as that was the only thing that mattered to the gentleman to my right. Forget about the all the other issues out there. Thats not what the characterization of it was. Coming up. Elon musk has a surprise for future model 3 owners. Here is a hint. Upgrade your package. Details after the break. Take a look at the futures. Welcome back, everyone. Elon musk revealing that owners of teslas model 3 will not receive free unlimited access to the Supercharger Network that its building for life unless they purchase a specific package. Probably not news to most people, but maybe some people didnt realize this. At the companys annual Shareholder Meeting musk stated it will still be very cheap and far cheaper than gasoline to drive Long Distance with the model 3. Its the first time that tesla has explicitly stated that the access will not be free for life. We have much more coming from senator majority leader in Mitch Mcconnell in a few minutes. Later, the Baltimore Orioles have played in six world series and this is the only player who was there for all of them. Hall of fame pitcher jim palmer will be here. Palmer, make that. Jim palmer will be here in just a little bit. Plus, billy joel is paying tribute, or it is dissing donald trump . A song dedication from the piano man sparking debate on twitter. 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Care that never quits. Appointments available now. Welcome back, everybody. Among the stories front and center this morning, an upbeat quarter for michael kors. Reporting profit of 98 cents a share, two cents above estimates. Revenue beating forecast. Kors announced a 1 billion stock buyback. The stock is up 8 . Sails force buying demand ware for 2. 8 billion in cash. Valued at 75 a share. More than 56 above yesterdays close for demandware. The stock is now trading at that level. 74. 85. Sails force ceo will join squawk on the street this morning. Whole foods upgraded to out perform to neutral at credit suisse. Billy joel dedicating his song the entertainer to donald trump in his most recent Madison Square garden concert. This time he responded. He described his campaign as very entertaining. Trump tweeting thank you, billy joel. People tell me you gave me a kind shout out at msg. I appreciate it. At number one, just because youre saying something is very entertaining, i think we would all agree that trump, whether youre backing him or not, you agree its been entertaining. Here is what i know. Definitely billy joel was at trumps wedding, not that that means anything. Performed a couple of numbers at his wedding, and definitely took full advantage of the open bar at the wedding, to the extent of almost this was i dont know 10, 12. Whenever he got married to melania. Youre really going there . Yeah, i am. Recently i know now its not like that. Just because youre at trumps wedding doesnt mean youre necessarily friends. You know who else was at the wedding. The clintons. Hillary and bill. So theyre not necessarily as friendly anymore. I am going there because it was unbelievable. It was trump took it as a positive shoutout. This was in the past. Everybody has pasts that they deal with and things. Im just just telling you. Yeah. Okay. Thats what ive heard. All right. Trifecta of data points on jobs coming this week. Tomorrow we get the adp employment report and jobless claims. On friday the big daddy. Nonfarm payrolls for may. Lets turn to the economy, jobs and more with our guest host this morning Mitch Mcconnell. Lets talk about how you see the economy tracking right now. Where do you think were doing well and where do we have room for improvement . Its been a tough eight years for most people. As we were discussing earlier at the beginning of the program, the average american is worse off than they were in 07 and considerably worse off than they were when the president took office. The worst recovery after a deep recession since world war ii. You have to ask the question why. Why. I think its the regulatory pam page that you all must talk about in one way or another here almost every morning that has clogged up our whole economy. Its like you have the foot on the brake, overregulation in health care, financial services, environment protection, epa. Nlrb, redefining the work force in a way that gives unions an unfair advantage. Add all of that up, and the economy is sclerotic. Its clogged up. What we need is a president who, after getting sworn in, goes into the oval office and starts undoing as many of the executive orders and regulations as he possibly can as rapidly as he can, thereby taking the foot off the brake and putting it on the accelerator. Thats what the country needs. Hillary clinton will not do that. Shell continue the policies of the last eight years and all the overregulation. Do you think that what you just described explains the electoral season this time around . Which has been a little different than most pundits have expected, than most experienced politicians might have expected, watching the rise of not only donald trump but of Bernie Sanders. I think the average voter may not look at the cause exactly the way i do, but they certainly realize the result. Theyre not doing very well. Oddly, there is a huge number of americans responding to Bernie Sanders who think the president hasnt been liberal enough. Bernie wants to give everybody a free everything. And then you have people right of center who are angry at the government in general, led by the president , but i think the anger is because people arent doing as well as they are accustomed to. And there is a real skepticism about whether theyre going to leave behind a better america for their children than their parents left behind for them. A lot of people feel that politics in general is not working for them. There is a bit of a throw the bums out sentiment. Or anything else. Theyre not crazy about folks in the media either. Establishment. Theyre not crazy about wall street, the press, washington. The only things that seems to still enjoy a lot of respect at the moment is the military. Right. In the latest poll. Right. In terms of what can happen, again, you pin this on whatever president is coming in, changing things potentially. I mean, part of whats happened, too, is the federal reserve. The people who are the wealthiest are the ones who do done the best and have assets. You have done well. The top 1 has made out like bandits. The president is always going after them as if they are the ones who created the problem. His policies have been just fine for upper income people. Its been the rest of the people who have slid behind. There is only one thing that will actually work, a 3 growth rate in an economy like ours. Not one quarter not one quarter in the whole obama terms of 3 growth, i believe the last quarter was. 5. Thats not going to cut it in a society like ours. If you want to have the next generation coming along, enjoy the kind of prosperity that weve all enjoyed. Is that the president s fault . Thats the president s fault . Absolutely. Look, its the overregulation. Thats an executive branch activity. We dont regulate in congress. Its an consecutive branch activity. That overregulation is whats clogged up the system, slowed down the growth. At the height of the financial crisis the first year and a half was spent on obamacare. Im not suggesting the president is not culpable for however the economy is partly performing but you dont think its a fair question to ask if others bear any responsibility to that . The narrative now on supply side economics is it doesnt work. Lower tax rates doesnt work. Freeing up the corporate sector doesnt work. Private sector doesnt work. Trickle down doesnt work. It resulted in the 2008 collapse of the economy. Thats the current narrative. The only thing that brings us back to 3 is supply side and Growth Solutions that larry kudlow always talks about. That may be correct. If everything you stand for a antithetical to private Sector Solutions for things, like the president , why would he not be blamed . There are also a good number of people, with respect, senator, who are probably watching this morning saying, hey, the Unemployment Rate is low. Back from the crisis, not performing as well as any of us would like. The stock market has done well. How is the america that you paint as so dreary as bad as you say when i just mentioned where unemployment is, where the stock market is and sort of other metrics you could find that dont paint that bleak of a picture. Isnt the Labor Participation rate about what it was during the Carter Administration . How many people have given up and dropped out . I am not trying to avoid blame here, but the facts are there has been no legislation passed since the house of representatives switched in 2010, no legislation passed that barack obama wanted of any consequential. The legislation he got the first two years, stimulus, obamacare, doddfrank, we stopped it, the legislative tirade. Then he shifted to the executive branch. All the activity the last six years has come out of the executive branch. Stymieing growth. We didnt have that riseabove camp let me finish. We didnt have the riseabove campaign aimed at one singular person. We had it aimed at everybody on capitol hill because you couldnt get enough done. The bully pulpit was used for Climate Change and for gun control rather than Corporate Tax reform and private Sector Solutions. And health care which also clogged up 17 of the economy. Suddenly was pulled in by the federal government. In the first year and a half. We think they went back and were totally dealing like joe biden said, we have things on our plate every day. It was all about obamacare for the first year and a half. Senator, you said you think four more years of Hillary Clinton would be more of the same but you also make the point in the book that this was specific to president obama, that he had ways of not reaching out, not reaching across the aisle, that he is not bill clinton. If you wound up with Hillary Clinton as president , do you think you would be able to work with her because at least its a refresh, its not the same person that you have been working with for what i was talking about in the book. Its not so much about personality. Its about policy. The president is the most liberal president since Woodrow Wilson who felt the Founding Fathers got it wrong when they made the congress as strong as it was. He is doing exactly what he wanted to do. He wanted to turn us into a western european country. Thats what hes made a lot of progress towards doing. Consistently, the first two years through legislation, the last six years through regulation. And i think the president is probably pretty happy with the europeanization of america. And overseas its been sort of been one apology tour after another. My dad fought in world war ii. The president went to hiroshima recently. His only reason for making a speech in hiroshima. No matter what the actual words were, its another apology. My dads life was probably saved by not having to go to japan because truman dropped the bomb. Whether at home or abroad obama has had a huge impact on redefining americas place in the world, and i think most of it has been in the wrong direction. But, again, if it were a different person, Hillary Clinton, do you think she has been pushed too far left by Bernie Sanders in this situation, or do you think you might be able to have a working relationship with just someone else in office . Working relationship, yeah. But i think Hillary Clinton is no centrist. I dont think she was when her husband was president. I think he was because there was a republican congress. I think Hillary Clinton almost certainly will be four more years just like the last eight. Well continue this conversation with senator Majority Leader Mitch Mcconnell. When we come back, life lessons from a hall of famer. Former Baltimore Orioles pitcher jim palmer joins us after the break. Well talk baseball and his new book he book. The futures. May open on wall street in the red this morning, continuing the decline from yesterday. Squawk will be right back. Well somewhere along the way, emily went right on living. But you see, with the help of her Raymond James financial advisor, she had planned for every eventuality. Which meant she continued to have the means to live on. Even at the ripe old age of 187. Life well planned. See what a Raymond James advisor can do for you. Its time now for squawk sports. Our next guest was just 20 years old when he became the youngest pitcher ever to throw a world series shutout leading the orioles to their first championship in 1966. Jim palmer pitched for the orioles for 19 seasons, won three cy young awards. He is the author now of nine innings to success, a hall of famers approach to achieving excellence. He is here inned studio on set. Great to see you. Great to be here. As a kid who grew up 15 miles from baltimore, its extra special. Why did you write this book . I am running out of time. Im 70. You know, i i was lucky because i i mean, you were talking about 15 years 15 miles from baltimore. I was adopted on the upper east side. My dad took me to Yankee Stadium when i was 9 years old. Remember when Billy Crystal talked about his greatest day ever in city slickers. I was able to come in with the bases load 19 years old and strike out the guys on 12 pitches. I played Robin Roberts was my first roommate. He was on his way to the hall of fame. Mentored me. All the life lessons i learned. I played at the right time. If i was playing now i would probably be making 30 million a year. But i just thought, you know, a lot of life lessons. I was very fortunate. I was adopted. I have an autistic stepson. It was a lot of stories. I am adopted too. I was doing an interview with Roy Firestone who did all the espn things. He said, you had to go through adversity being adopted. I said it was the greatest thing that ever happened. Years later i would do the Sally Jesse Rafael show. She was adopted. Beautiful lady. About six months pregnant. I think the one lesson i took out of that was you dont have to be a biological parent to be a good parent. My parents were that way. I lucked out. My dads birthday today. He is gone, but its my dads birthday. How old were you when you were adopted . At birth. I milked it. I say i was 12. Weeks. 12 weeks. 12 weeks. My uncle bob my mom had come to new york from omaha to put him in tommy dorseys man. She said i think you are a kennedy. Eth ethel was trying to figure out. 1945. Where baby. Which of the kennedys could he have been . You could be Frank Sinatras kid too. If you are a baseball fan, you know cal ripken jr. You know his dad too. His dad was my manager. When we went to south dakota. Making 114. 14 after taxes, living in a basement. 3 a day meal money. Its like 40 degrees, 39 degrees. Were on the field and he said, number one, nobody has ever let anybody outwork you. Number two, every day i know you try to do this at the senate. Not sure its always going to work but never come here and try to get a little bit better that day, you know. He cal sr. Used to talk about, we would all come out and practice. He said its got to be a perfect practice. The other thing, whether youre broadcasting, youre a senator, majority leader, whatever the case is, there are no such things as shortcuts. I went into broadcasting. I had to watch the playoffs between the red sox and the yankees. Bucky dent is my favorite guy. Made me if i played another six years you played for frank . Yeah. How was he . Frank robinson . Yeah. 587 home runs. He hit 38 home runs his rookie year. They said there was the high score board. And they probably hit another 25 balls off that. Brooks robinson, 16 straight gold gloves. Boog bowing powell. It was all the stories i knew about earl. In the book we talk about trust. The one thing earl did, just imagine if if it took me a while to have this mindset. Every time and i played for earl from 69 through, what he retired in 1982. Every fourth day he put the ball in my locker and i had a chance to pitch. We didnt always get along. He wanted me to be perfect. I always thought, if you tried to be perfect, somewhere along the line you might reach some excellence. Think of the trust factor. Earl had oneyear deals. He believed enough in me to give me a chance. If i didnt pitch nine innings he wasnt happy sometimes. Was the 71 pitching staff the best ever . We had four 20game winners. We won 109 in 69, lost to the mets. In 70 we won 108. Three 20game winners. We had 72 complete games that year. Jim, your message from the book sounds similar to senator mcconnells message in his book. Baseball defined my life too in a different sort of way. It was an allstar game. I was on the allstar team. We went in to play the city allstars. I walked the bases loaded. Walked a run over and then i gave up a home run. It dawned on me, i needed to go into a different line of work. I never threw a grand slam. Maybe thats why i pitched. You could have been in politics. Its funny. My dad didnt forget . What . Never did . Maybe you forgot one. Tiyou did know that. Right. Earl weaver ran out tim comes up with 13 names and says the boys at bristol, espn, said you wont know the names. I said must have been the guys i walked with the bases loaded. I didnt know that, but what i did know was that was the only thing that made sense. But earl once asked me, i want you to walk john lohanstein to load the bases to pitch to al oliver and i said, thats the stupidest thing i ever heard. If you really want me to do that. You go pitch and ill manage. He said walk the i cant tell you what he said. We walked lohanstein. The guy on deck couldnt sit a grand slam to save his life. Dempsey puts one down. Then he moves up and in. I step off the mound. The umpire calls the balk and i was the happiest guy in the world. Al michaels does our opening. In we launch a line of squawk underwear, would you think about going back to the women would still go nuts like they used to. Here is the deal. Sent my kids to college. Im sure it did. I am not giving you grief. Will you do it for squawk underwear . I talked to al. He didnt mention squawk underwear. I go to the gym. Today im probably not going to go to the gym. The book nine innings to success. My mom loves giving me advice. She even gives me advice. About my toothpaste and mouthwash. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again you wouldnt order szechuan without checking the spice level. It really opens the passages. Waiter. Water. So why would you invest without checking brokercheck . Check your broker with brokercheck. To get back to our guest host, senator majority leader and author of the new book the long game. I think in your view life will go on regardless of what happens in the election but some people think its a pretty important one. Demographically, we know the i dont know how many states there are that the democrats just seem to have locked up. Like 240 electoral votes. What would trump need to do, in your view, to pull what would be an upset off . If the election is similar in result to recent elections, there are nine or ten states that are purple states. Everybody knows the red state is a republican state, blue state a democratic president ial candidate democratic state. We are trying to talk senator rubio into running again in florida, which would dramatically change the outcome there. I think trump is electable, but hell have to carry the purple states. And these are full of voters that can do can go either way. You can see them here . Before you leave town, are you going to see him in new york . No. Im not going to see him today. When is ryan coming on board . Youll have to ask ryan. You know, i dont think we have a Good Alternative other than to band together here and give us the best chance we have to get past obama. Thank you for all your time this morning. Thank you. The book is called the long game. We have more than one. You have to sign it for me. Thank you, leader. Top tech picks from kevin landes. Plus, Hollywood Reporter Michael Wolff sitting down with president ial candidate trump to talk about the race for the white house. He joins us with highlights from his interview. Squawk box will be right back. I take prilosec otc each morning for my frequent heartburn because you cant beat zero heartburn ahhh the sweet taste of victory prilosec otc. One pill each morning. 24 hours. Zero heartburn. Tech check. Apple was the best performing dow component last month. Can the trend continue . Well ask squawk platinum portfolio member and veteran Technology Investor kevin landes. Donald trump sitting down with a Hollywood Reporter to talk about his campaign, the country and how one wellknown hollywood agent could play a big role at the Republican Convention this summer. Secret lives of the super rich. Forget the strip. Well take you inside the mega mansions that vegas wealthy call home. The final hour of squawk box begins now. Live from the most powerful city in the world, new york. This is squawk box. Welcome back to squawk box, here on cnbc, first in business worldwide. Im joe kernen along with Rebecca Quick and scott wapner, sitting in for andrew today. Doing a very able job of sitting in for him. We are less than really. We are less than 90 minutes away from the were about to go out in the court yard right there and mix it up. Oh, okay. From the opening bell on wall street, the futures right now are down 57 points. The nasdaq down 11. And the s p down about 6. Among todays top stories, a warning from the organization for Economic Cooperation and development as it down grades its Global Growth forecast. The new outlook from the group saying the policy makers must act now to prevent persistent and sluggish growth and othereconomic downturn. French sefarchers may be on the verge of finding the black boxes from the egyptair flight that crashed into the sea. They have received signals. Watching oil prices ahead of tomorrows opec meeting in vienna. Crude oil has been coming down as some of the opec ministers have signalled. Theyre happy with the increases weve already seen in crude oil prices in the last few months. Wti is up. Still trading at 48. 50. It was actually a compliment you were giving me. Youre right. Good journalism. He is a good journalist. Ive told you what i think of journalists. Michael wolff agreed with me. We got you on that one. He said it. He means it. I am a writer. I would like to call a distinction. Journalists, theyre always oh, god anyhow a few stocks on the move theyre not even going to play the music this morning. Not even in the mood for it. Nope. Softbank. Maybe they will. Selling about 7. 9 billion in alibaba shares. Sales force is acquiring website Designer Software maker demandwoodeman demandware for 2. 8 billion. Marc benioff joins squawk on the street this morning. Michael kors posting better than expected results. Also announcing a one billion dollar share buyback. Becky, another journalist. Proud of it. A little bit of back and forth. Americans are sprit on who they think will win the 2016 election according to the latest nbc News Survey Monkey poll. Michael wolff is a columnist for the Hollywood Reporter. He interviewed the presumptive puerto ri republican nominee. Its in the latest issue of the Hollywood Reporter. And michael, thank you for being here today. Thank you. First of all, we watched the polls. Wow, has it been a confounding race to watch to this point on both sides. Not only has it been a confounding race to watch but donald trump says it over and over again. Most confounding. Most greatest. Most can you believe it can you believe it . Then he answers it. No, you cant believe it. I think thats one of the things about this race, that he has turned this into a spectacle like we have never seen in politics. And thats his attraction. It is the spectacle. What do you think of the poll results we just talked about . Well, i think theyre probably meaningless, frankly. At this point in time everything is going to shift. Were going to go up and down. Well see incredible reversals on this. And in the end in the end i expect this actually hillary will win. By i, like everybody else, i have been wrong repeatedly and constantly throughout this this election year. Just wonder whether that switches to the general. Because if you based the general election and handicapped that on what happened in the primaries, there would be no reason to even guess. Im not sure the general is the same as the primary. Were now in territory and this is certainly what i felt when i was sitting with trump or, as everyone around him calls, mr. Trump, mr. Trump, mr. Trump. I have never heard the word mister so many times since the 1950s. The thing that youre aware of is that he has redefined this, what politics is about. He is not interested in issues. You really cant get him to talk issues. He is not even interested in talking about his opponent, like talking about hillary. That was like, why are you talking about hillary . This is my time. Lets talk about me. And thats really whats going on here. Were being asked to judge and appreciate and revel in this particular personality. A larger personality. Largeness is the issue. I am so large. I mean, he actually says this. I am so large. Do you know how large i am . I am so large. Huge. Huge. So in sitting down and talking to him, again, its been effective, at least in the republican primary, to get him to this point. Why do you think it works . Why do you think that approach, the new approach, works . I think partly because a politician who doesnt talk about policies is in sort of a postmodern sense. Everybody talks about policies. They talk about policies until you want to drop and it doesnt change anything. That the so thats the phony thing that people who talk about policies. And the guy who doesnt, who just shoots from the hip all the time is somehow the real and the legitimate. I mean, he knows literally nothing about the main sort of tenets of what politicians think about. I asked him about brexit. I was surprised to hear that he didnt have an answer on that. He didnt not only did he not have an answer he didnt know what brexit was. He said he wants britain to leave. But it was this thing. What about were talking about europe. This didnt come out of the i didnt surprise him. Were talking about europe. I say, what about brexit . And he goes, huh . And i say, oh, the brexit. Its like this. Then i prompted, because i am actually a little nervous at this point. I said, you know, the brits leaving the e. U. Then he says, oh, yeah, i think they should leave. Sort of a double thing. I dont know the terminology that people are using for this discussion. And then im just going to shoot from the hip on this. I clearly havent thought at all about it but, yes, leave. He is with boris. The mayor of london. Right. I dont know when when did you interview him . He has weighed in on brexit here before. I interviewed him just the other day. When he was on with us we asked him about brexit and he said, yeah, they should leave. He had already been asked that question. Ari manuel. I think that there is let me get to ari in just ari is the head of arguably the powerful man in. Right. In homeland. Rams brother. And zekes brother. But so trump and i spent a lot of time talking about media because thats what i i principally cover. He knows everybody. Right. And he knows everything. I mean, he has probably, from any politician certainly in my memory, the deepest relationships in the media industry. From the very top and hes cultivated them over years. Oh, yeah. Loves them all. They love him. I asked him about Sumner Redsto redstone, ailing Sumner Redstone. He said, oh, yeah, great this and that. Usually people say, i i really love the guy, would do anything for him. Trump says, i really love the guy really, he would do anything for me. [ laughing ] then he got to ari emanuel. Its really interesting because, a, ari is incredibly powerful in hollywood. And b, from a with deep democratic roots. Right. And trump basically said he is one of my closest advisors. Now, i suspect trump can say that about anyone at any time. But it genuinely felt felt that they had this kinship. And he trump said that he ari may make his convention film. As i was thinking about this, i thought, hmm, i wonder what ari will say about this. But its an interesting thing to for that kind of i mean, i mean, the the emanuel family is a central democratic not only family but force in democratic politics. So to see this possible move, very interesting. You know, in terms of, again, what he brings to the table, whats different about it, you mentioned the idea that he shoots from the hip. We just had senator Majority Leader Mitch Mcconnell here. He said he ran into him last week at the Nra Convention and asked trump if he was going to go with a script. Trump told him that he hates scripts and likes to go without them and by the way, scripts are boring. We had a long, interesting discussion about teleprompters. Most politicians he says are dead on arrival because they use teleprompters, which is absolutely true. What he does and its its riveting, even if you dont agree with him, even if you think whatever he is saying is not only disagreeable but moronic. Youre still riveted when he speaks. And i was i said, well, are you going to use the teleprompter for the to give your acceptance speech . And he said very kind of resigned, yes, he thought he thought he would. I said, no, no, no, you shouldnt. Because that will be so great. You could see him warming to this idea. So if this happens, and the whole world changes because of this and the campaign either collapses or he is suddenly elevated to the presidency, its my doing. Do you think that, no matter what happens, win or lose, trump has changed the political sphere from here on out . I i think it depends upon what happens. I guess, if he goes down in ignominious defeat, everyone will say, you know, geez, that was some some aberration. Right. If not, i think it invites this whole thing. It really establishes the fact that you dont have to be a politician to run for president. Actually, you dont have to know anything about politics. You dont have to have any interest in policy, and you can run for president. And, you know i mean, were already sort of seeing. Mark cuban sort of talking about this. So i think it is quite possible that this is going to profoundly change what we think about politics and who we think of as politicians. It thats already happened to some respect on the smaller stage. I mean, the Jesse Venturas of the world have been able to win governships. It hasnt morphed into Ronald Reagan. The highest Ronald Reagan, but Ronald Reagan morphed in a politician. I suppose donald trump can yet morph into the conventional idea of a politician but i dont see how. Michael wolff, thank you. Interesting insights from the column today. The nations auto makers report Monthly Sales today. Phil lebeau joins us with the look at expectations. The expectation is theyre going to report today. Right . Et cetethats the end of the. Back to you guys. Go to commercial. These will be relatively strong numbers. Well show you the percentage up or down as far as the estimates are going. Generally speaking, dont really pay too much attention whether or not you see a particular automaker who will be up 5 or in this case fiat chrysler, unchanged. Down 9. 3 . Thats year over year, may over may. You want to look at the sales rate for the month of may. One other thing separate from that. Sales rate is expected to be in the mid 17 million range. Still strong. But its the quality. Thats what we want to focus on when the numbers come in later today. In particular, what are we seeing with the luxury brands. Weve heard from mike jackson. We have heard from group 1 ceo who said, look, theres just too much supply out there. Particularly on the higherend vehicles. So that will be the interesting thing. What are we seeing both in terms of demand and also in terms of how much are incentives eating into the profitability on those luxury autos . Because almost everybody in the industry agrees that youre just seeing too much supply to a certain extent on certain sectors sectors, and the luxury sector is one of those within the auto industry. Thats why you see not only incentives but leasing has gone up too . Leasing is a function of how much is your monthly payment. If you go over 500 it seems to be the threshold where people say, im not crazy about it. If you can do a lease for 400 ill do it. Throw in the maintenance and everything else. Cut and dried. People like mike jackson from autonation have worried the additional leasing could eventually put pressure yes. Because the cars go back onto the market and put pressure on new cars. Well see that pick up in the next year or two. Youre starting to see as its moving through the snake, the big threeyear chunk of thats what were looking for. Thank you. You bet. When we come back, veteran Technology Investor kevin landes joins us on his best stock ideas right now. Later, amazon chief jeff bezos speaking out at re codes conference. Well tell you what he had to say about netflix, the venture into space and donald trump. Squawk box will be right back. All right. Were back. Going for growth in todays platinum portfolio conversation. Joining us is kevin landes, ceo of first hand funds. Good to see you here. Thanks. Growth is not dead. People talking about value is back. Right. Right. Right. Well, you know, if you look at the tech stocks today, its easy to think growth is sort of missing in action because the Growth Companies are still private. And so, you know, if youre looking at cisco, intel and applied materials, they look stagnant because they are. Theyve gotten so old. Theyve come back in favor a little bit, though. F. A. N. G. Has had a little bit of a comeback too. Sure. There are always trades to be made, right. If youre looking at a stock youre going to hold for three, four, five years and make money on, we have talked netflix to death because its one of the few great growth stories. Now people thats the reason people are out unicorn hunting. Its a pretty frustrating process. But the untold story is there are lots of great innovative Young Companies in silicon valley. You just dont see them from the outside because theyre all quietly private. You have identified several here. Most i have not heard of. Sure. Mxl. Max linear. You have there a list of four candidates for consolidation. Really the chip industry is going through massive consolidation. These companies are growing modestly. If they were private companies today they wouldnt go public. They dont have the gaudy numbers of it. The Semi Conductor industry is rectang rolling itself up. What kind of market caps are we talking about . High hundreds of millions or even low singledigit billions. Modest by todays comparisons. Theyre all in the semi space . Yes. All semi companies and theyre on everybodys short list of companies to scoop up. How does that sort of fold into your Overall Investment strategy . Are you an event driven investor or no . Were big themes. We love growth, but we have also seen consolidation too. And the there are a lot of big buyers out there. You saw avago buy broadcom. Intel bought all terra. Some of the big Chip Companies names out there. 10, 15 billion market caps, are getting scooped up. These are good candidates. Lets talk more broadly tech. Do you feel pretty good about where the sector is . The gains recently after lagging you have had a great month. Right. Its been fairly broadbased, from old tech to new tech. Right. Cloud, et cetera. Sort of all participating. So i mean, youve gone through this this pretty Seismic Shift in the last ten years where the center of your tech universe used to be the pc on your decsk and is now smartphone in your hand. People are still running to catch up. A lot of companies havent figured out how to get the relationship to their customer to the smartphone. Theyre still worried about google ad buys on the desktop and their tv ad buys. There is a lot of transformation still to be done here. The and there are kind of multiple things being broken and reborn at the same time. So cord cutting is another one where sort of what worked ten, 15 years ago will not work anymore. And you have to look around for the Young Companies that are working behind the scenes to make it happen. You cant look in the Public Markets anymore because they just dont want to be public at such a young age. I will ask you this, last question, only because i i guess i would ask any tech investor who is well known and comes on the program on a regular basis. Do you known apple today . We own a little bit of it. It went from our biggest position to the smallest. It happened a couple days before the last earnings announcement. I realized that i had gotten so used to apple falling on news that it was great but not great enough, i thought, whats going to happen if they actually come up with bad news. So i that was a lucky trade on our part. Have they come down far enough that you would reconsider . This is why im not i try not to be too much of a trader. I am kicking myself for not catching the low that happened after the earnings announcement. Its a good, solid company. The valuation allows it to be a safe piece of your portfolio. There is no reason not to get back into it now. But, you know, how high is up . Its you know, is it worth 130 . Supposed to go to 260. Most analysts said it was double from 130. 1. 5 trillion. You have to keep selling all those phones. Somebody better not build a better phone ever. Thats never going to happen . The chinese are not smart enough to build a better phone someday . Here is what scares me about apple. Theyve already conquered the biggest unit market that there is, right, smartphones. Over a billion shipped over year. What do they do in revenue every quarter . 60 billion or something. Theyre guaranteed that every Microsoft Might be guaranteed Something Big every quarter. Gadget makers are not guaranteed 60 billion a quarter. So i believe theyre focused on right now how much do you pay to verizon or sprint or whomever every month and how can they get more like that. People build better mouse traps pretty quickly. Run the numbers on cars. A car might cost 50 times what you would pay for a smartphone. So the units involved have to be only 1 50 for it to be their next act. So thats about the only really big market i can think of that could be their next act. I dont know. Well see if it gets back to 230. A long way from hamilton heights, 17 cherry tree lynn. Miranda landing a new role in a sequel of an iconic film. Details after the break. Welcome back to squawk box, everyone. Lets look at the stocks on the 3406 this morning. Costco shares higher this morning after Goldman Sachs upgraded it from buy to neutral. Did you see the video . Of the two people fighting in the costco parking lot . Were they . Yesterday. I didnt see it. Ill show you. Cracker barrel, old country reported quarterly profit of 1. 82 a share, two cents above estimates. It raised Quarterly Dividend 5 cents to 1. 15 a share and declared a special dividend of 3. 25 a share. The restaurant chain raising the fullyear forecast. Stock is up 2. 9 . Thats a reason to take a to not take a plane. Cracker barrel . Theyre so good . Just to be able to stop. Off the highway. Oh, theres a cracker barrel. And a bathroom. Whole foods upgraded to out perform from nuflt at credit suisse. Rejuvenated growth for the chain as it repositions itself in the face of growing competition. Mary poppins and coming back to the screen. Linmanuel miranda along with emily blount stars in the film. Hell play a street lamp lighter named jack. Going to be released in 2018. That will be like a Dick Van Dyke type of a role, i am guessing. Maybe. Yeah. Theyre not going to they already did, remake sound of music. That was great. The remake . Live. The live one they did on nbc. It was nbc. It was great. Airbnb airbnb see what i mean . See what i mean. So predictable. Youre a journalist. Why. Airbnb i would have said [ laughter ] you never took a journalism course. Did you . No. Me neither no interest. Airbnb lets lets its i never took a teleprompter course either. Lets its guests rate hosts and neighbors can also chime in. The shortterm house rental startup introducing the neighbor tool which lets those who live near airbnb report disturbances, orgies or whatever anonymous anonymously. Weve talked many times, are you ready to rent your house out and let someone sleep in your bed . Or or are you ready to sleep in someone elses unclean sheets . Which would you rather do . Were going to do an airbnb this summer for the first time. Youre going to someone elses . Yeah. I guess i would probably err that way if i had to. I assume theyll wash the sheets before we get there. I am assuming. You know what assume is. You can assume the same thing in hotels. Hotels you can sue at least, and they have a chain. You can have yelp comments. They have comments on the airbnb. People who have stayed there multiple times. You can write your own. I dont know. I am resistant to change. You know that. Going in. Ill report back. Youre going airbnb. Yeah. I want to hear. All right. Speaking of change, startups. An israeli startup officially launching its super highend smartphone today. The basic model priced at 14,000 it features militarygrade security and highlevel Cyber Protection for the international elite. Syrian labs raising 72 million in seed funding to launch the first line of phones which have been in development for over two years. Amazon Ceo Jeff Bezos speaking at the annual code conference last night. John forte joins us with the highlights. John, hardly ever hear from mr. Bezos. Its a highlight in and of itself that he spoke out there. Yeah. It was indeed. He really had the crowds attention. He was loose. There is Something Special about kind of the billionaire founder who doesnt have to worry so much about the board or the founder that he reports to as far as what he says. He talked about space. He talked about journalism. He talked about cloud. He also talked about the fly wheel effect within amazon with amazon prime that as their video wins awards it helps them sell shoes because people want maximum value out of the prime subscription once theyre drawn in for one reason or another. He also talked about physical book stores. I asked him about what led him to create this physical book store in seattle. Theyre expanding and doing another one in san diego. He says there will be more. He also touched on having a tight agenda versus wandering and how that affects serendipity and how people find new things. Take a listen. One of the things many observers have noted over time, you know, there are many discovery methods online. So i am learning about new books online all the time. And certainly our personal recommendations do that, but, you know, i see tweets about books. I see all sorts of tons of discovery going on. Tons of serendipity. But there was always one that kind of serendipity that you get from just wandering around book shelves looking at book covers, is kind of a yet another kind of serendipity. I think thats part of what were trying to do in a kind of way that has accelerated with the data from amazon. Com. So using the data the most purchased books, to put just those in front of people and accelerate their discovery process. Walt mossberg asked him about the controversy between peter thiel and gawker. Peter thiel funding lawsuits versus gawker because of a bone he has to pick with them. Of course. Jeff bezos as the owner of the Washington Post spoke out about this saying he is against what thiel did. Here is the reason why. This country has the best free speech protections in the world because of the constitution but also because of our cultural norms. You dont want to erode those. You dont want to create any kind of climate of fear or chill with respect to free speech norms. And so the most important thing to remember about that is that beautiful speech doesnt need protection. Its ugly speech that needs protection. He also talked about donald trump, along those lines, of course. Trump has come out and criticized jeff bezos. He talked about the legacy of the Washington Post and Catherine Graham being threatened by the nixon administration. So a very electric, wideranging conversation he had. He answered a number of questions. Cleared the qs for the q a portion before he skipped out of here. I will have more actually from this conference throughout the day. I had a conversation with mark fields, ceo you have foof ford. Coming up in the next hour. Jon fortt at the code conference. Coming up, a new month, new round of opportunity for investors. Stay tuned to squawk box. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. charge music you wouldnt hire an organist without hearing them first. Charge so why would you invest without checking brokercheck . Check your broker with brokercheck. The dow and s p posting their longest monthly winning streaks since 2014. [ laughter ] smart ass viewers. How are the hickory golf vests working out for you. Theyre saying i am resistant to change. You said that. David bianco. Head of equity strategy at deutsche bank. Its a streak but not much of a winning streak. David, i guess we have come back strongly from the february selloff. Is this waning now . Is the rebound running out of steam, ready to go back and retest some of those . Are we gain steam going ahead. Its been a nice rally since the january and february lows. I think a lot of investors and market commentators are nervous about the market, calling for a summer dip. I am relatively calm about the markets. I think the s p 500 is exactly where it belongs. Close to 2100. And we believe 2200 is where the s p gets at the end of the year. I would not be surprised and i think late in the summer before the election we have it at about a 5 dip. This is something i would act upon. In the meantime i see a lot of good opportunities in health care. Bigcap technology. Even though theyre exposed to the risks for the summer i still like the big banks. What part of health care . Health care has done well since obamacare, obviously. Are the Health Care Companies are you bullish because theyre still benefiting from obamacare . Because theyre exiting obamacare . There are a lot of Health Care Companies such as managed care that have been on an Affordable Care act honeymoon and will be challenged over the coming years. Fo pharmaceuticals and biotech companies. A lot of concern about the election but i look at the Health Care Sector and i see companies with good growth, midteens earnings multiples. At pharmaceuticals you have great dividend yields. Thats something any other part of the market where the dividend yield exceeds 2 . Were seeing p. E. Multiples approaching 20. Are you one of the wall streeters that is probably content with a Hillary Clinton win . They figure, ah, the money from goldman will be worth something someday. Shell come back to the center. Or do you think shell govern from the center like her husband. Do you think trump represents a scary unknown for the Financial Market . I think most investors like balanced politics. I think trump is a risky candidate for the Republican Party and would probably be a risky president for america. When i talk to investors lately, i get a sense that theyll vote and theyll support in terms of a positive Market Reaction the president that reduces taxes and reduces regulation and, if clinton is so bad for health care, i guess trump has to be a positive. I think the market would react positively to a trump win in november, but thats still thats still a big if . People that, you know, go back and forth and arent really sure, you have one candidate talking about huge tax cuts for corporations and getting rid of all these regulations, and theyre still like, geez, i dont know, hillary or theyre not true freemarket types, though. All know you have tariffs to worry about, theoretically. And you have no entitlement reform. I think from a pure investor perspective, there is a rising chorus of those who are supporting trump. We wouldnt hear it most people who say no clinton it would be stable, status quo, nothing to worry about. A lot of people making that case. Weve been made nervous by sanders. Again, from an investor perspective. Yeah. From an investor perspective. David, thank you. Thank you. Coming up, forget the strip. Robert frank takes us inside a 22 million mansion in vegas. Robert. The ultimate designer mansion. Inside the 22 million house where her closet is modeled after cocoa chanels first boutique. Thats coming up. Futures right now. Dow would open lower by some 60 points. S p down nearly 7. Nasdaq under a little bit of pressure at the open as well based on how things look right now. May be taking a lead from europe, which was down and remains down across the board. Some of the data overnight in china wasnt great. The pmis there, manufacturing, fell yet again. Still above 50, albeit barely. Thats how the market picture looks right now. Welcome back. Joe. You made it. I did make it. Good job. Good job. Took a break. Yes, you did. Now and im fine. Just sitting here. I got three hours. Now to the secret lives of the anchors no. Secret lives of the super rich. We know the wealthy who gamble in vegas stay on the strip. Those who run sin city live on a street called enclave court. I did not know. Robert frank joins us right now with the story. I know one street where s siegfried and roy lived. Its a similar area. Country club hills. This is called enclave court. Only seven homes. So they rarely come on the market. Were going to show you one thats 22 million and is the ultimate designer mansion. Take a look. The master suite is any girls dream. Its modeled after the coco chanel suite at the ritz in paris. Its divine. Exquisite, perfect. Reporter the 24carat gold sconcen hanging from the silklined walls are replicas of the ones coco had. In the mausbath an outline of h favorite flower. What better way to pay homage to the queen of couture by designing a closet inspired by the first chanel boutique in paris. Piano lacquered finish. Tuscan suede. A beautiful, beautiful space for your designer gowns and all of your perfect hand bags. Reporter the house actually has two master closets. The other looks like a Versace Store on steroids. The owners flew in a half Million Dollars worth of trees from italy and a Million Dollars in palm trees and 2400 rose bushes. I guess thats what you do when you want to recreate tuscany in the vegas desert. They did this without a buyer in mind . Reporter the owners lived there for a long time. They were very fashion crazed owners. This was not a spec house. That makes sense. But to live in vegas, you have to have you need to have a job like celine dion or something. Or own a casino. Just to live there. Lets go out tonight, honey. Lets go to a restaurant or something . You cant. You never saw casino . Look what happened to them. Look what happened to sharon stone. This is the most expensive home in vegas. Its 22 million. Thats a lot of money but i would think the most expensive home in vegas would be a little bit more. To your point, there arent that many people who actually live there with that kind of money. Or theyre dealers and in the business. Its a little bit decadent. In vegas that house is kind of normal. How many square feet . 18,000 square feet. Wow. Liberace. Did he live the price seems low for where was that . Again relatively speaking. On a per square foot basis, new york would be twice that. Given what were used to twice . Maybe five times. Nice weather. As long as youre inside. [ laughter ] thanks, guys. Good call. Thank you, robert. When we come back jim cramer joins us live from the new york stock exchange. Well get his take on the top stories after this. Later, dont miss complete coverage of the code conference. Among the live guests today, venture capitalist vinod khosla on squawk alley at 11 00 eastern time. Stay tuned. Youre watching squawk box here on cnbc, first in business worldwide. Todd spaletto, president of the north face, we are working on the prototype to match customers to gear. Watson, lets give it a try. Say its midjune and im backpacking in yosemite. Of our 353 jackets, i can recommend nine. Watson, what if it rains . There is just a 3 chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. A Perfect Choice watson. No wonder our Customer Loyalty numbers keep climbing. I believe we can do even better. I like the way you think. Lets get down to the new york stock exchange. Jim cramer joins us now. We like this used to be a sports studio, or it is sometimes. We had jim palmer on. Do you remember the orioles . Wapner is an orioles jim palmer is dorian gray, he looked better. One of the great joys of being nationally fan during that period was you didnt have to face them. You could read about them all you wanted, but you did not have to have them on the mound. You had tom sever on the mound, that was enough. Its interesting thats because youre a phillies fan. As a reds fan we actually did face the American League occasionally because we got into something called the world series. Was that post season . Must be post season. It wasnt in season. I still havent forgiven you for taken rose. Actually, take her, shes mine. But, jimmy, nike and under armour, their apparel. And apparel might really be one of the problems right now. Sports authority banged a lot of people because they just made it so it was just a liquidation. Under armour not as bad as nike because nike has two downgrades today. Steph curry, i got to say, they got the right guy. Under armour, that was a brilliant move. Steph curry is amazing. That was the most watched game in history that last game against mr. Westbrook who was playing as if he should have been a wide receiver or running back for the eagles. He was taking every shot in the world. So 800 basis points, pickup there by one of the firms that steph curry was just the right choice. I feel bad because i think durant did his best. Its just westbrook was taking shots from your studio to the warriors, you know, swoosh no, not swoosh. Thats out. The 76ers, are they going to get this guy . Will they take him . And will he step up . Hes got the talent, ben simmons, do you think hell be the difference . We have a 2018 plan, and until then were not allowed to win. Its one of the things about the 2018 plan, no winning until then. Youre not joking. Scott, am i right we had 2018 plan and forbade winning until then. They admitted it for the most part. Yes. It was really bold to just say, listen, were going to lose forever, because our fan base is so stupid it doesnt matter theyll keep buying tickets. Dr. Jay must be just furious. Right. Did you see mo cheeks . Mo cheeks is an assistant with the thunder, did you notice that . Mo cheeks is legit. We all remember mo cheeks as being part of a championship team, which has been a while. Thats right, 83. 8384 one of the great teams ever, we forget. If you didnt see jim palmer, he could have him on for three hours, i think. I loved him. Do you remember he said he watched mantle and those guys play and then he actually struck three of them out in 12 pitches. Can you imagine watching those guys play when you were a kid. A lot of the younger people think hes an underwear salesman. Drives me crazy. They probably think the same thing about m. J. I understand that guy. He looked good in underwear, jim. Hanes isnt going to pay us anything to do that. No. He actually could pull it off. Doug cass wrote in that palmer actually beat his cousin sandy cofax in sandys last game. Thats amazing too. Doesnt seem pining for the good old days, anyway, thanks, jim. Coming up, this mornings biggest movers. And storm on squawk box, dont miss a very special guest host a veteran corporate leader jack welch will be with us for two hours starting at 7 00 eastern. And steve liesman, really . Steve liesman will be here too. These two together. Dont miss that. Try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Lets talk about some stocks to watch this morning microsoft selling about 1500 patents to china, electronicsmak maker, th deal also includes patent cross licensing agreement. Terms were not disclosed. Boyd gaming selling 50 in its Atlantic City casino to mgm resorts, price tag 900 million. Workday posting better than expected earning and revenues but the provider of Human Resources software is seeing growth slowing in billings. Billings, montana . Or overall important store of course. Landsend billings missing joey you got ten seconds to bail yourself out. I dont think you can do it. Thats true. Its been fun. Thanks. You can do a lot in ten seconds. Anyway, thank you for joining us today. Thank you for being here. Missed you yesterday. But well see you again soon. Maybe tomorrow. Maybe friday. Is this me . Make sure you join us tomorrow. Squawk on the street is next. Good morning and welcome to squawk on the street. Im david faber along with jim cramer, were live from the new york stock exchange. You can see Carl Quintanilla at the code conference in california. And hes going to have more on that event in just a minute. Lets give you a look at futures as we get the day started here on squawk on the street. You can see we are headed for what looks to be a lower open. This
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