Transcripts For CNBC Squawk Box 20160606

Last couple of weeks. It just is a way of acknowledging the lousy jobs report. This is the last time well hear from the fed chair before the Central Banks media blackout takes affect in front of the rate decision. By every count, a rate hike is practically off the table for the month of june based on the 38,000 jobs print we got, which is so far below expectations. It is now winning in the polls, the brexit, but its a roach motel. They are so stuck. But you werent here on friday. So were talking youve heard over and over, i just experts, i just dont see how my life is not going to matter whether it is june or july, so it doesnt matter to me when they raise, whether it is june or july, all the experts say june or july. And we were making the point, between june or july or between now and june, there are so many things that can happen, whether it is a terrorist attack, a brexit, cyprus, greece, if you are going to monitor every single thing that happens in the world, the fed is always going to find a reason and it was not an hour late they are a what we thought was going to happen definitely by july and maybe in june within an hour something happened. And it was 38,000 and it was its back in the scary situation the people have been critical of the fed talked about all along. And now recession odds one in three according to some investment banks. Someone else was saying when you see that sharp of a decline in the jobs, that it generally, there are at least five or six times over the last several decades that indicated a recession will happen in the next five months. You know, i saw liesman here this morning, they are getting out their people, the fed, right away. Hes been i saw him lifting and pumping iron because hes got the ever see those things where they are carrying buckets on both sides. Is he here . Hell give us both sides when he joins us. You can watch is this you still or me . Okay, you go. You can watch yellens speech live right here on cnbc starting at 12 30 eastern time. In the meantime, take a quick look at the u. S. Equity futures. We got back most of the ground that we lost on friday. It was a shocking move for the markets to the downside. You can see this morning that the futures are actually indicated higher. The dow futures up 29 points. The s p 500 up by. 50 and the nasdaq up by 7. Overnight, the nikkei was down by. 40 . The hang seng is up by. 40 and shanghai is down. 15 . Wait a second, we are never going to raise rates again . We have seen this. First day, its always a little bit of a relief rally. Then two or three things sometimes if she makes things more dire, that they are worried about things someday we are going to raise, its a live meeting, it is. But i dont know, im expecting 400,000 jobs a month in september and november. All these in the drawer they are saving, lets put 100,000 back on this. Conspiracy theory. In august. Did you see the german tenyear today . You told me where it was. 7 . 7 basis poin . Thats the tenyear. And japan went more negative. I think it is 1. 2 , is that possible or am i missing a decimal . Its not 1. 2 . Well take a look at the charts. Steve liesman is here, fair and balanced to give us the real story. Hes been lift weights. No, i want to hear from him. In the meantime, well show you what is going on this week. A little bit lighter in the economic data. No reports due today but tomorrow look for revised productivity and consumer credit. On thursday, jobless claims and wholesale trade. On friday, the first june Consumer Sentiment. And unleaded gas jumped 6 cents in the past two weeks. The price hat the pump in has gone up. Wti is up. When you got to where you were going, did you realize you needed a car . Never tennessee. I have been to tennessee, ive been to kentucky and a lot of places on the ground, not just in the airport, connecting in the airport or changing planes . Not changing planes. Are you going to cop to you didnt shoot anything alive, right . No. Skeet shoot. I surprised myself. This is not just a chance to find out who i am and walk in another mans shoes. You were shooting skeet, did anything happen . I slept a lot, ate a lot, drank a little bit. You know, we spent some time with the animals. Yes. Everybody knows there are no boundaries. There are no boundaries. This is a safe space. Okay. Stocks to watch today. First up, cabelas. Next thing you know, well, i was at cabelas and carrying two big bags out. Barrons says the investors may want to lock in profits before the sell themselves. And barron says the shares of whole foods will likely to rise. They will allow more competitive pricing. And soft bank announcing it will sell a further 1. 1 billion worth of shares in alibaba. That brings the total number of shares sold in alibaba to 10 billion. Well get a check on the markets. The futures are indicated a little higher this morning. The dow futures are up by just under 30 points. At this point they are about 20 point points. The nasdaq up 4 pints. Points. We watched the stocks tank on friday with 38,000 jobs versus the 140,000 the street was expecting. They ended with modest declines by the end of the session. The tenyear yielding 1. 27 that was the lowest level since a few weeks prior. This was an Immediate Reaction to the idea of fed not raising the rates in june or july potentially either. The yen is at 107. 10. And the euro is at 1. 13. Gold prices are up by 20 cents this morning, but 1,220 an ounce. You cant buy gold after it goes up 35. Its like, the o its like a mutual fund. Get it by the end of the day. Sometimes you dont get it by the end of the day. Sometimes its the next business day. Do you ever feel it im surprised you didnt get the etf. I know you. Thats the whole point, paper thats a real conundrum. A few people do it quick so they do the etf first. I want to put it in my teeth if you are doing it as a longterm investment. Well get more on fridays jobs report. The National Association for business economics is Steve Liesman here as our guest. After the analysis is not considered to be an excellent report. They have thought about it a lot, joe. Top of the show and eight minutes and its my fault. I cannot believe you let this happen. They are stuck again. So disappointed in you. All right, go ahead. In the next hour i have some stuff. Is june dead . June is dead. June is dead. But jobs are not necessarily. I was going to do this next hour but right now, last march, 2015, 84,000, a miss by 122,000, the next month we came back with 251,000. On average when we miss by 100,000, the next month it is lower. There are two sides to change it. I got direct report of this whole thing. Heres what is happening, the latest survey from the National Association of business, economics shows their users reduced overall growth to just 1. 8 . The outlook is looking at consumer spending, Business Investment and corporate profits. So does the jobs report make the outlook look darker . Joining us is greg, a survey analyst for nabe and the chief economist at oxford. Good morning. Good morning. The jobs report was done before . Yes, it was available early may. Swould so you would see quite strong expectations for job growth in the survey despite the fact that gdp growth was marked down. 40 for the year from 2002 to 2008. How are you processing the shockingly despite of the jobs report . What is your take on it . I always have lipstick in my pocket because i think you have to take every single jobs report with a little bit of a grape of salt in a sense. Because yes, it wasnt a good report and you had very little job Growth Numbers. You had the Unemployment Rate fall down, but for the wrong reasons because a lot of the labor force relative ly flat. Joe makes a really good point. Which is you could dismiss this except for revisions to the prior months. That tells you that things are much weaker than thought previously. You brought the threemonth average down to 116,000. That points to some enduringly piece we are going to see job Growth Numbers people could start coming back, though. That would ease up on whether we are really at the we are at 4. 7 as long as you dont count those before. 94 million is a big number. Not everyone is retired. Some are kids, too. It is always a some of the parttime workers that could want fulltime work. You know what else . I was thinking about this, you were quick to give the minimum wage increase. Kudos to walmart results. Are now going to say the minimum earnings increase is going to need to be balanced. Gdp is not the number we look at. 5, throw it out. That shows the strength of the economy. Once we put our chips there then that will fall off. I want to get to one aspect of this survey here. Which is the effective political uncertainty. And youre not the first survey to show this, but increasingly the u. S. Elections is seen as having a negative effect on the impact. The you look at the data. 57 said if effect of the political serve survey. Also, what are you members saying about this election . This reflects the uncertainty as to which candidate will be the main candidate for the two parties. But also Going Forward after the november elections, what are the potential risks if we get mr. Trump as president . Half the country will be absolutely miserable. Both candidates are against this. But cornerstones it will be a deviced country. Divided country. We dont know what its going to be. Bernie sanders wins california . What if he wins california . They are not dropping out. The last primary, i think she stayed three to four days after the last primary if i read that correctly. The last primary was june 7th. The uncertainty is likely to curb economic growth. We all know that brexit will lead the headlines. Thank you for joining us. John harwood is joining us with more. I was under the impression that hillary dropped out sooner than this eight years ago. Is this not the case and a later primary schedule . She did not drop out sooner than this. She dropped out after the california primary which she won, but because she had a significant deficit to barack obama, she slthrew in the tunne. This is what senator sanders said hes going to do, go to the convention. He said over the weekend the democrats will a contested candidate unlike what happened in 2008. Republicans have a party of their own and keeps saying things in the Trump University case are offensive to other republicans saying, oh, no, i disagree. But Hillary Clintons strategy is to focus on trump and unite the Democratic Party that way. Take a listen to the soundbytes. The judge has treated me in an unfairly way. Im going to point out why i believe the republican nominee should never get near the white house. Reporter and the interesting thing about the position of those two quotes from the candidates is they indicate that donald trump himself is going to be at the center of the fall campaign. That is probably good for this. I saw a tweet from the rnc over the weekend just about how the 2383 delegates needed by Hillary Clinton, that they had said before the superdelegates couldnt count. You just mentioned shes getting up towards 2383 with the superdelegates. If you take that out, is there a chance she get there is or doesnt get there without the superdelegates . No, she wont get there without the superdelegates but has won more pledged delegates than Bernie Sanders and has more votes than Bernie Sanders. Shes beaten Bernie Sanders. But that means it could go to the convention . Well, thats what hes saying exactly, and its just a matter of when Bernie Sanders reads the writing on the wall and says, yes, i cant win. He is asserting right now that he can change the mind of superdelegates and convince them even though hes lost training in votes. That he can convince them hes the stronger candidate against donald trump. The problem for Bernie Sanders is the superdelegates are largely experienced political hands. Thats why they are superdelegates, and they dont agree with him and that is why they have lined up with Hillary Clinton. The question is how far does he push it . It is not loyalty to Hillary Clinton but she has a better plan they are rolling it out. It is not loyalty but their calculation. Thats why the political minds may make a decision to go different from primary voters. But in this case they are going in the similar direction. Well talk to you later about all the events coming up. What the markets want to hear from fed chair janet yellen. As we head to break, take a look at this day in history. Actions speak louder. Something well show you. Through small things, big things, and spur of the moment things. Welcome back. The body of muhammad ali returned to his hometown of louisville, kentucky, over the weekend. He died friday night at the age of 74. Ali was a threetime heavyweight champion. Arguably one of the greatest fighters of all time. On friday politicians, celebrities and fans are expected for a Memorial Service that ali requested be open to everyone. President bill clinton, billy crystal, and Bryant Gumbel will all deliver eulogies. I never met ali. Dad did. He went to a party with him. He asked someone, i cant remember who muhammad ali asked for an autograph, but the guy didnt give it to him. What . So muhammad ali the rest of his life would try to sign autographs. Thats why you see so many people say they have his autograph. He wrote love is like a net and hearts for little fishes. He signed his name. I have gone back to look at so many people who have signatures from him and things he wrote. Who was the person . Im looking he was a boxer, his idol when he was a kid. Yeah, when he was a kid he went up to a fighter and the guy blew him off and said, i will never do that. He was the most like your q rating is off the charts. Whether people recognize you in the world. He had a high q rating across the country. You didnt seen the moon landing. You dont remember ali i know thats why you should defer to me on a lot of stuff. On all things. On a lot of things. I was in college watching ali as he was making his comeback. Anything that was happening in 1910, 1920, i defer. I defer to you. I understand you know these things. Anything before the internet, that is the only thing i count on you for, anything that happened after al gore invented the internet. Thats worthy. Thats a fair way to break up the world before and after. Remember that word, defer. Difference. Deference. The nasdaq is riding a threeweek rate hike. Joining me is jason pride from glenmede, hes an investment strategy. The growth is slow, the base case still needs to be that we are in the expansion. So for investors this is one of the uneasy time. You need to have an equity allocation and keep your fixed income allocation low because the yield opportunities there are fairly light. So you have to keep that equity allocation. But at the same time you have to proceed in a way that is a little careful. We think that means you have kind of two tilts in the portfolio. One in defensive direction or to buffer against those risks that come up in the back part of the cycle, but then also with the evaluation tilt, because what we have seen is the spread between the cheapest and most expensive stocks is really wide in this market leaving an opportunity for stock pickers to basically take advantage of the evaluation opportunities that exist across the market and within each sector and industry. Well talk about the sectors because the classic concern with that is a growth trap. Or if youre getting into the prices, they are cheap but cheap for a reason. What do you actually like . What sectors and stocks do you want them to keep an eye on . Well, one of the things i want to make sure were getting across here is this is really not a sector picking environment in a lot of degrees. You know, we Favor Health Care a little bit for its reasonable evaluation and defensive characteristics. And energy to some degree because of the evaluation opportunity that exists there, but this is more within sectors and industries. The evaluation industry perhaps within technology, industrials and the energy space is really, really wide providing an opportunity for investors to pick off a lot of smaller pieces. It is not really a stock by stock story. There are entire groups of stocks just under appreciated. Technology, for example, you have the high flyers of facebook and amazon. But the rest of the entire sector is a relatively reasonable evaluation and a good place for investors to be. Why is the spread so great between the high flyers and those who havent done as well . I mean, youre saying the market is just valuing them wrong. Well, one of the things that happens in a slow growth environment is investors end up paying up for growth because of the likelihood that is going to continue. At some point investors pay up for that growth too much and discount the ability of companies having too much difficult. The difficult of those companies to deliver growth Going Forward to a too large of a degree. So then it provides an opportunity for investors to take a swath of the market. We think overpricing the growth of your names right now and just under pricing the rest of the market by comparison, particularly in the technology space. You see that to a fairly dramatic degree. Jason, thank you very much. Coming up, when we return the Summer Travel is an is heating up. And so is roomkey taking on priceline and orbitz. Well talk about that when we return. 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. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive uh, maybe we should call i. T. But they demand the best shopping experiences. They may want the latest products and services, theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. Welcome back to squawk box. Time for the executive edge. The Summer Travel season is heating up and so is the battle for bookings, but one website is looking to be the key. Thats not so subtle. Well explain that in a second. Room key was one to offer loyalty pricing founded by a group of Companies Including hyatt and others. Joining us is the founder of room key, good morning. How is it different what we get at orbitz or other websites . Over the past year or so, all the large hotel programs, although the large Hotel Companies have released discounted rates, exclusive member pricing, but up until now it is only available through their call center. Room key goes out to negotiate with the companies so room key can access the loyalty rates in one stop shopping so you get access to loyalty rates across tens of thousands of hotels that other hotel or travel sites cant access. And do you offer regular rates for those who are not in the Loyalty Program . Yes. If you want to be eligible, just enroll. Are these guaranteed the lowest rates out there . All the sites say its guaranteed to be the lowest price and find another site where the price is lower. I know theres a lot of confusion. All the major Hotel Companies put pretty generous guarantees out there to tell the customers these prices are the lowest out there. And what room key does is aggragates all the choices. Once you go to a particular city or date, once you select the hotel you want, we take you to the Hotels Website to complete the booking. And the other question i had is, given all the consolidation going on in the hotel space, specifically starwood and marriott, what does it mean for prices . Oh i cant really speculate on that. But you should have a better sense of pricing and prices in specific cities of an overlap better than anybody else out there . The Hotel Distribution like Starwood Marriott is still such a small piece of the pie. I dont see anything negative in terms of the customer pricing. The good thing to come from this is things like larger Loyalty Programs and so on. But the other question is the Loyalty Program, we have had Arnie Sorenson from marriott to talk about the integration of the Loyalty Programs and how important the starwood Loyalty Program is. Do you think longterm the Loyalty Programs will hold up . Im a loyalty guy by training and yeah, i think they are here to stay. I heard for the past 20 years people saying Loyalty Programs are about to go. Or that the loyalty point, the value of the point becomes less. No, i dont see that at all. No, i dont see that at all. Its such and important part of the Purchase Decision in the value mix. I see them being very if anything, more enhanced. You see across the Loyalty Programs that it is more than just redeeming points for the product that youre buying, it expands to the the most important question you probably didnt think you would get, what card do you have in your pocket or credit cards . I am very distributed and use cards from all the Loyalty Programs and stay in different hotels. Who has the best card going . For hotels, the starwood American Express card, is that the best going . Hard to say. Hard to say. Too many partners. Steve, thank you for coming in. My pleasure. When we come back, the countdown to the brexit vote. Former london mayor Boris Johnson sounding off on chief jamie dimon. Wilfred frost will join us next with that story. But heres a quick check on the european markets this morning. Things have been moderately higher. If we were looking at london before, up by 1 . Frances cac just turned negative. The dax is up. 10 . In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Welcome back. Heres a quick look at the equity futures that cut the losses on friday. We might get that back on the open today. The nasdaq called up just over 4. Jpmorgan is letting their employees ditch the suit and the dress in business casual when its appropriate. You still cant wear jeans but jpmorgans new dress code allows casual pants, capris, polo and dress sandals. Yikes. Athleisu athleisure, flipflops, hats and hoods and cargo shorts are not okay. I love my cargo shorts. You have a pair . Only one pair left. No new ones. Trying to advertise some old my old Abercrombie Fitch ones i cant have in the house. I have a pair of j. Crew ones. My wife is definitive on the no cargo shorts rule. Thats the thing. So you buy a pair, you smuggle them home, one day have them on, she may not notice. The unfair part is the boys are allowed to have him. They look cuter in them. You dont want to take a stand here. This is not important enough. You have to pick your battles. And looking back, you have to pick your battles. You are totally rallying him up. You would aim just as quickly. I just want to know if we are ditching ties for tomorrows show. I dont mind wearing a tie. But were going to have jamie dimon and the jpmorgan crew very techy. If you dont wear a tie, then you have to put your mike on your jacket. It doesnt look as good. Tmp well look at the brexit, the latest poll shows the leave in the lead. The remain side is leading by three points. Either way, the momentum has swung to the leave camp despite several outsiders including jamie dimon and president obama highlighting the risks of the brexit. London mayor Boris Johnson spoke to wilfred frost. We heard from jamie dimon i reject that, by the way. Jamie dimons arguments you reject. I do. Jamie dimon and jpmorgan are the very people who urged this country to embed itself in the euro, which has turned out to be an absolute catastrophe. Yes, it is true that some Financial Services institutions have over the last 20 years benefited phenomenally from the eu setup. But it is also true that huge numbers of people are modest earnings in this country have not seen their wages rise, indeed many people have seen their wages fall as a result of many of the signature policies of the eu. One is the euro. The other is uncontrolled migration across the eu territory. Since you bring up america, i think one thing that its fascinating listening to american politicians on this subject. No american politician in their i think americans are genuinely amazed sometimes when they realize the loss of democratic control that is entailed by the eu system. They would never dream of subordinating, subjugating their own democracy to the type of system that we have in the eu. Did obama go too far to come over here to imply we love hearing from the international, Angela Merkel sounding off at the moment, let them speak, im interested to hear their point of view. But in the end this is a decision for the british people. And i think that when we vote, how very much we will on june 23rd, it will actually be a not just because of the euro but because of the massive legislation that comes from brussels. The onesizefitsall way offered for the benefit of the Big Companies, we mentioned jpmorgan and not for the startups of innovators and people who want to change things. Good morning, guys. I want to set the tone off the back of that, jamie dimon made headlines on friday when he said that brexit could cost up to 4,000 jpmorgan jobs moving outside the uk. Who are we to question the take on jpmorgan jobs . He has the best handle on that. But what is annoying is the leave camp for the voters is that people are suggesting this is how you should vote in the uk. This is the downside. But would americans give up their sovereignty if put in the same position . I want to bring up a line from jamie dimons letter to shareholders who say, one can reasonably argue that britain is better untethered to the beurocratic bureaucratic and sometimes disfunctional eu. Jamie dimon employs a lot of people. So hes not an outsider, not a politician with no skin in the game is. I just want to make that distension. And what Boris Johnson said about the stagnation of wages, that is something we have struggled with in the United States. It seems like a global problem. Absolutely. Im not suggesting that everything boris said in this interview is correct. But to his point on the pound in a moment, i agree, this is an open debate. And Boris Johnson is highlighting the stress us feeding our democracy to the unelected bureaucrats would never, ever, ever happen. I love that guy. That is what boris was saying. I am just highlighting the anger on the leave side from outsiders to his point of view. Just to continue with the points on the interview, he did continue to say there wont be an economic downside and wont say theres a big downside for sterling, which is Wishful Thinking for Boris Johnson as we see the pound off. 80 today. Momentum was down 2 last week off the back of the poll. Its at 1. 44 though. We did see more in the leave camps prominent Campaign Like boris is suggesting. It did have a pretty good rally before. All right. Thank you, wilfred. Love that guy. Coming up, taking Virtual Reality to the next level. Could the headset replace things like your iphone, your tv and the movies . Well look at this thing. Its the size of an oakley. Thats next. A good car company. People have always bought cars. But we saw an opportunity in sharing cars. So we moved fast and launched car2go in 29 cities, all around the world. Doing that required dozens of data centers, designed for speed and performance. We built our business on the ibm cloud. Because thats what the ibm cloud is built for. Virtual reality is breaking bare yoriers. Our next guest thinks the glasses will eventually replace your iphone, tv set, and movies on the big screen. Here to tell us how the wearable piece works and what lies ahead for the future of vr is the founder, chairman, and ceo of Virtual Reality cloud Graphics Company which has pretty famous People Associated with it that had success in other areas of hightech. Im a little bit behind trying to figure this out. Tell us about these glasses. Im worried they wont be ready in six months. Is it reallyics icics six mont . We are making the software for the glasses. The fact theyre prototyped and youre putting it on now means they could be shipped in six months. Thaieyre not big and crazy looking . No. Theyre tiny. Were working with odg, theyve been around for 20 years and doing the glasses for enterprise. You can watch movies, replace your pc, and switch between augment reality and Virtual Reality in one device under 8 ounces. What is the battery life . Same as your cell phone. You get a whole movie out of this . Yeah. And it can do both you can be immersed but also see the world. Yeah. It sh the movie shows what itting loos like through the glasses. Twa its showing there is a holographic stream being brought in over lte. Youll see it on any surface you want. You can turn any surface into a portal into other world. You dont need tablets. Roll the other video. Yeah. If you can. It shoes what its like when you step up to the glasses and look through them. This is from five days ago the augmented reality show. Through the glasses you see all the holographic objects projected. You can replace anything in your line of sight. Physical virtual holographics they can be in your eyes at all times. Theres a full cell phone built into the glasses. You dont need any other device. What we looked at in the glasses is better quality than the video out here. We watched parts of the martian. How do you think it stacks up against what facebook is doing or microsoft is doing so this is actually very complimentary. In the sense, you know, vr which is what of course ldrk complete yourself. This device is focussed on mixed reality and augmented reality where you can see the world and wear it for hours in a day. And this is a lot smaller and cheaper and the quality is stunning. Ive tested both and the Microsoft One is bigger. Yeah. Its like wearing a ufo on your head. Its almost like better and better time and the resolution within a year or two from now gets better and better. 16 times resolution of the samsung. We got to run. We got to go. We do. The first stock index was created over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. The fed front and center. Janet yellen expected to speak hours from nows. Her comments after fridays brutal jobs report. The Global Market is hanging on to every word. Fending off a take over. Michael pharaoh joins us on cnbc to tell us why hes saying no to a deal with georgia nannett. And remembering the greatest. I am the greatest. The life and legend of muhammad ali. A look at the legendary boxers life and the legacy he leaves behind. Be a fool on bet on sunny. The second hour of squawk box begins right now. Announcer live from the beating heart of business new york city. In is squawk box. Welcome back to squawk box. The futures this hour that would get us back to even from right. If we didnt do anything with the jobs number because we add about 30 more points friday after it was said and done. Check out oil this morning. If it wasnt for the supply disruptions, i think you might have seen oil, you know, maybe spike like gold spike. Right. Yeah. It was down initially but then the nigeria issues. Right. It would be up on the weaker dollar. Right. In the meantime lets get you caught up on stories were watching at this hour. Investors focussed on a speech at 12 30 eastern time by janet yellen. Want to hear about fridays weak jobs report and how its going to impact future Interest Rates decision. More on that in the moment. Gasoline prices are up by 6 cents per gallon over the past two weeks. The average price 2. 37. The price of crude Oil Continues to rise. And those movie goers, teenage mutant Ninja Turtles took in 33 million. It was only half the prior movie in 2014. Another chapter in the viacom drama. They asked the request to move up the demand of moving up the trial. He removed dueman from the trial. He sued questioning redstones mental k ment men competence. Uncertainty over the outcome of novembers u. S. President ial election could be hanging over the economy. A new survey by the National Association for business economics finds that 60 of forecasters say that gray cloud is damaging some growth process pen expects this year. Do you believe this . No. Theyre cutting their gdp outlook to from 2. 2 to 1. 8. The panel expects the economy to recover ground. Economists see corporate profits falling 2 this year which would be the first annual decline since 2011. A couple of stocks to watch. Cabellases could be lowered today. Investors may want to lock in profits before the hunting equipment chain sells itself. Barrens writing that shares of whole foods likely to rise over the next year on cost cut which is allowed more competitive pricing. Fridays disappointing jobs number take a fed rate hike off the table for june . Steve liesman is here with more. You say yes. I think june is done. A lot of talk on friday that yellens speech writers were not taking the weekend off. They were rewriting this speech. The report thats the key here. Opinions range about this friday jobs report from dismissing it as a one off to those saying its a leading edge of new era of payroll gains. Some of the commentary ihs said employers are defending profits and trying to boost productivity in a soggy growth environment by managing payroll costs. Goldman sachs has a report saying we would not overdo the gloom. Some of the timeliest indicators the expectations is that a cautious fed chair janet yellen who speaks today will remain positive on the outlook. But suggest the the fed needs some time to see how weak payrolls are. Here something worth considering. This has happened before. We went back to 2003 and we looked at all the misses by the street. On friday ranks as sixth biggest forecast miss by wall street. Here are some of the other ones. July 2004. Payrolls came in at 44,000. That was a miss of almost 200,000. Next month came back at 121. March 2015, we talked about that in the last hour, came back 251. March 05. These are looking at ones outside of recessions. In recession they miss and can get worse. But when youre outside a recession, came back 351. Who knows what happens next month, but in general, they come back on an average of 186,000 when the street misses like this. The big way to think about this, some people see it as the leading edge of weakness. Others say welcome to full employment. Demand for labor is lower and you dont need as many jobs and you see wages go up. What was the wage growth . 0. 2 . Its a little bit better than it has been. Thanks, steve. Joining us what the market will be expecting from janet yellen a chief Investment Officer of Global Fixed Income and i think you are basically going to echo what steve said. Not a surprise what we saw in a full employment universe. Disappointing but not totally unexpected. Yeah. One, i would say the available pool of labor has gone down. Youll have to have a reduction. Second point, like you described earlier, corporate profits, corporate revenues are declining with amazing consistency with about a six month lag. We tend to see jobs come off. I think this number was an extreme. That being said, we think the trend is real. Theres been 7. 5 million jobs created in three years. More than 13 combined. So for the trail off for here for the trend to be lowered, we think is right. But it takes probably july off the table, too. As steve said, it takes june certainly off the table. I think chair yellen will keep july open and see you get a lot of data between now and then. Right. I think you get a couple of cpi reports, another payroll report, and retail sales. They spent a lot of time in the last few weeks talking about why these were if its not a surprise why do that . So, you know, i would say a couple of things. You know, weve been i argue for a long time 0 funds rate or 25 base funds rate point you can start to normalize if you move it its not going to kill the economy. We dont think it will diminish any effects. What is the margin of error . On jobs . Plus or minus 90. Right. Its a 95 confidence level. Yeah it could be either way. They can come back. It hasnt been that bad. Its been fairly consistent. Theyve as opposed to gdp the bls has done a better job of counting jobs. I think its july we get the fed market we know how much plus or minus for the full year ending in march. Its not terribly lagged. Well get pretty good information. We get the claims number which is real time from the states. So thats the problem economists would love to call this a weak jobs report because it would be consistent but claims are telling us its 150 to 200,000 plus in payroll. Just so i know, steve, so you can make your plans. In november, will we have the october report by the time you mean plan what it should be . Yeah. I havent looked at that. You think august . Were going to start [ talking over one another ] would you start in august or september . I think juicing the numbers should a couple of 400s. Like last time wasnt . Huh . You want to start that again . I know you love when i do that. Yeah. Everything is great and fine except corporate profits arent going to be great. Revenue. Theres a reason that jobs are weak following the revenue. And service is slow. Which is something else. Yeah, so ive been criticized as being enthusiastic on the show for a couple of times. Weve been selling 18 c,000 car. Its looking to accelerate. Look at vehicle sales and air travel. Were coming off the oil. I dont think were going into a recession. The consumer is spending at a nice rate. The Financial System is did you see he used habituated 1. 5 is good. You said things are great for the past two or three years. So i think there are couple of things. Demographics we have to live and Global Growth is going to be slower for a long time. People have to recognize its going to be a Slower Growth period. For the past two decades there were two influences on growth. A decade ago and china. Right. When you take those off you have to run at, you know, pick at 100 basis point the or so of lower gdp. If we operate at about 2 growth. But the political question, which is if you did everything right, and i dont know what you think everything right is. What is the best you can get . So i think if you think about potential growth in the country could you trend up to a 3 to just over three . I think thats right. I think people dont recognize when you go through the historic demographic cycle and Global Growth you look at what china is going through in the leverage in japan, you have to put a significant amount of discount factor on what it could be. Really . So ill take 3 or 3. 5. You dont think 21,000 new regulations has anything to do with the Small Business . You dont think the Corporate Tax rate has anything to do with obamacare has nothing to do with damp i think you can list 25 things that are potential head winds. That is clearly one. I think the two big ones are the influences over the last two decades housing and china . Housing was [ talking over each other ] in 2050 you wont be talking about 2008 anymore. Thats fair. Good. That is fair. You think about how much china grew in the last decade to 11. 5 economy. The influence it has on asian trade, global trade is profound. We dont have that nearly as profound today as we did. You wouldnt have gotten any better at what was that . Im still not very good at it. No . Did you ever run the table . I have. Are you dont do that. Nobody needs to see you do that. You actually finally did . Yes. With a lot of trial and error. Its a dangerous strategy. It is. Theres no way. You need a perfect hand. Thank you. See you. When we come back fortune revealing the list of the top 500 companies. Find out which is number one. Which made the biggest jumps, and which company fell off the list. Thats after the break. And later fending off a take over bid from gannett. Michael ferro is here. Well hear from the companys new board. Why the name changed. Squawk box will be right back. Fortunate unveiling the list of the top 500 companies in the United States. A ranking by revenue. Wal walmart, exxon, and apple rounding out the top three. Alan, thanks for being here. Obviously this is a coveted list. One that is closely watched. Theres nothing proprietary. Youre looking at revenue. Its straightforward. You can cut it in a lot of ways. The basic list is revenues. In terms of revenue for Corporate America its been a rougher year. Revenue down. Revenue down by about 4 over the previous year. Profits down 11 . You know, youve also had its been a year in which a a number of companies have gone private. Companies like safeway, pet smart. So theres a big shift in some of the names popping up. Yeah. Its been a tough year. The list as a share of gdp, the list grew 62 years now the list has grown pretty steadily. It was up close to 70 of gdp last year. This year its down to 66. It was definitely a tough year for the big guys. You look at the top. I was surprised that exxonmobil is number two even with the price of oil dropping so substantially. Half. I mean, it used to be that walmart and exxon would vie for the top spot. Now exxon revenues are half of walmart revenues. Wow. When you start round ought the rest of the top ten, any surprises . I noticed at t is there. It picked up. Apple is moving up in the number three spot. The other thing you see consistently year after year is the Health Care Companies moving up. We have United Health care, cvs, in the five, six, seven spots. We are talking about employment given fridays numbers. When you look at the top ten of this list, if you were to look at the top ten of the list 40 years ago map percentage of that group do you think would have employed americans. How much less today do you think that Top Ten Group employs people. From 30 years ago. 30 years ago. One of the surprising things is the total employment went up 4 . Went up. Thats not u. S. Employment. Thats global. Im thinking u. S. These Big Companies that are Iconic Companies and how much they represent in terms of employment over time and how that shifted. Theyre Global Companies particularly the top 100. You would see more employment overseas. But still solid employment in the u. S. As well. In terms of Companies Moving down, you point out that General Electric lost more than any other company. 21 million in revenue. It was an intentional for them to do that. I was going to ask you about that, too. Is it a decrease of 21 billion in profits . No, revenue. It says profits. Thats wrong. Its just looking at revenue. It says profits right here. Yeah. 21 billion in profits. Yeah. Its a smaller company. It is. Than it was. So is ibm. I dont wait a second. I dont think it could be profits. It has to be i dont know what youre reading. Ill check it. Its profits. You provided it for us. Ill check it out in. Its an intentional strategy for some companies. Yeah. The interesting thing about not just ge but the whole list is they see we surveyed these guys. They see Technology Change coming at them at a pace theyve never seen before. They expect more in the next five years and the last five years. Ge is a great example. I dont know if you looked at this platform theyre created. Theyre trying to be the Software Platform for the industrial internet. If that works, it will be theyre advertising a lot of im looking at the revenue numbers. The revenue is down 31 billion. I dont know what that means. In total pretext profit for the company is only 22 billion. Pretext profit was 17 billion. You cant be down based on the numbers. Revenue is down. The other question is about private equity and the number of private companies. Uber will never really be on a list like this, right . Thats been one of the big you know, you have the unicorns not going public. You do have to ask what their end game is. Will they at some point we asked the fortune 500 ceo would you run it as a private company . More than 90 said yes. If they can get the money without going public i suspect theyll continue to do that. Have you asked that question before . Is it an increase . Last year was the first year we asked it. Its bigger its an increase from last year. It seems like theres more regulatory regulation is a huge theme with these guys. They see that increased regulation is one of the biggest problems. How Many Private Companies would be on the list, do you think . Well, we did a [ talking over each other ] . So you mars, coke industry, youve got a number of really big guys like that. But you think revenue is the right number . We did it both ways but revenue is the way weve been doing it for 62 years. Apple is number one and jpmorgan would be number two this year. And amazon wouldnt be in the top 20. Right. And you have zero margins and big revenue, you wonder how should you well thats the end of the story. Im not you know, if youre slashing if youre slashing the top line in order to boost your profits, im not sure thats the right measure either. We cut it both ways. But revenue is the one. Revenue is the traditional. And how you rank the top ten. Correct. Thank you. Its great to see you. Good to be here. You dont get to walk upstairs anymore. No. Im downtown now. Yeah. It was fun to come back. When we return presenting you on the promising cancer drug over the weekend. Hear from the Top Executive about it live. Check out the futures at thi hour. Youre looking at green arrows across the board. Dow open about 35 points higher. Well be right back in a moment. Coming off fridays job reports the week ahead a bit lighter on democratic dat economic data. No reports due today. Thursday we get a weekly jobless claims and wholesale trade and friday first read on Consumer Sentiment for june. Coming up the presentations over the weekend including news on fighting melanoma. And the chairman of tribune will be here. Hell talk all things around the gannett take over bid. Michael ferro will head us. Take a look at u. S. Equity futures. Back in a bit. Every year, the amount of data your enterprise uses goes up. Smart devices are up. Cloud is up. Analytics is up. Seems like everything is up except your budget. Introducing comcast Business Enterprise solutions. With a different kind of network that delivers the bandwidth you need without the high cost. Because you cant build the business of tomorrow on the network of yesterday. Website ba welcome back. Wall street focuses on a speech by janet yellen at 12 30 p. M. Eastern. Waiting to see what shell see about mays friday weak employment report. Well see if she talks back the hawkish speak weve been hearing from fed officials. Business economists are more pessimistic about the u. S. Outlook for economic growth. The National Forecast calls for 1. 8 growth this year. Down from the march forecast of 2. 2 . And new details emerging on the recent 81 million theft from theangladebangladesh. The requests didnt contain the information. The requests were resubmitted with Additional Information and some were fulfilled at that point. Body of muhammad ali will return to his hometown of louisville, kentucky on sunday. He died friday night at the age of 74. Ali was threetime heavy weight champion. Arguingly one of the greatest fighters of all time. On friday celebrity and fans expected for a Memorial Service. A couple of stocks to watch today. Shares ca s cabellas could be l. They may want to lock in profits before the hunting equipment chain sells itself for assets. Shares of whole foods likely to rise over the next year on cost cuts which allowed more competitive pricing. The American Society of clinical oncologist annual meeting is the worlds biggest Cancer Research gathering with more than 37,000 people in attendance. We are live in chicago with a special guest. Good morning, meg. Good morning. Were joined by dr. Roger pearl. Thank you for joining us. Its great to be here. I would like to talk about your big therapy drug on display here. A lot of people know it because it was used to treat president jimmy carter with fantastic results. If you set the stage for what the drug does and the topic of everything here. Youre right. I think the overwhelming topic of discussion is immunotherapy. It releases the brakes on the immune system and it allows it to destroy tumors. It was observed in the case of jimmy carter. It seems to be active across a broad range of tumors. Nearly all. And were seeing that in a whole variety of settings. Its exciting. The fact it actually enables the immune system to recognize cancer and work its own natural magic against it, does it mean well see longer response times . The immune system can keep cancer at bay longer . Thats the hope. I think theres reason to believe based on studies started a long time ago that this kind of therapy, which is called check point therapy. It releases a check point in the immune system to permit it to keep going. This kind of therapy will produce long, durable, and deep responses. We cant know that until we have treated people for a long time. As we were talking about earlier. A couple of years ago, keytruda was a experimental drug. That gives us a sense of what can be done. Well have to wait to see how durable the responses are. At the same time one of the main questions are, you know, maybe 70 of folks dont actually respond to them. So were only seeing, you know, a small population of patients getting the amazing benefits. Where do you think we are in our understanding why people dont respond . I think there are a couple of points. The response varies a lot zpepding on the tumor type. When you look at melanoma, the tumor that jimmy carter had, in that tumor type the majority of patients see some kind of response in a large advanced cancer setting. About 3 4 see some response. What is different about this as compared to prior therapies is even a modest response can be quite durable and people may be able to live with cancer. Beyond that, we think the future is to combine keytruda and other therapies to produce more responses in more people. The idea of combining drugs brings up a huge topic here as well as cost of therapy. I want to ask you more broadly given were in an election year. Theres a lot focus on the cost of drugs. Do you feel the farm ma industry is under fire . Its under fire often, not just in election years. Its understandable because the reality is every country on earth is struggling to pay for the cost of health care for its citizens. And the reason thats true is its enormously expensive to bring new therapies to market, and in the current construct, if companies are to survive, if were to continue to support this innovation that gives us important new drugs, one way or another we have to figure out a way to pay for it. Im optimistic there will be new solutions to the problems that enable companies to continue to innovate, on the one hand, and enable society to and individuals most importantly to pay for the drug. Does that involve a major change in the way we pay for drugs . Especially in combination thinking about paying based on how well the drug works, for example . Yeah, thats one idea. I think one idea is to say, you know, if in a case where a minority of patients actually respond its understandable that people would say society would say, gee, i dont think we should be paying for the nonresponders. Perhaps theres a way to use that kind of strategy. The most important thing to remember, it seems to me, is that there has to be real value represented here. We spend a lot of time calculating using fairly advanced techniques the value to society as a result of the introduction of these drugs and our goal as a company to try to align the cost with the value. Doctor, we can talk all day. Thank you for joining us. Back over to you guys. Thank you. Coming up when we return the chairman of Tribune Publishing is here. Were going to talk about the companys rebranding strategy and the fight to fend off gannett. Check out the futures at this hour before we go to break. Looking at green arrows. Dow looked like it opened 38 points higher. Back in a moment staving off a 400 million take over bid from gannett, Tribune Publishing owner of l. A. Times and Chicago Tribune turning the page with a new board making up new strategy. Its now called tronk. Michael ferro is here head of r tronc. It will be listed june 20th on the nasdaq as opposed to here. Trying to change the sensibility of how people think about the company as being more of a digital company. Is that what this is about . Thats correct. We believe in the contenter h vs culture. Theres a big question about what what happened over the past couple of months. Lots of people have questions about the gannett bid and why you continued to turn it down. And strategically what the future looks like. I dont know how we want to take it. I want to know what you think the future of the Company Looks like and get to the gannett bid. Sure. First of all, its a great future. Theres more journalists in the world than ever. The question is how do we pay you and the journalists in the building. How do we get money . Theres two ways. People pay a subscription or advertisers. One way you have do is get your content out as many ways as possible to visualize your content. A story you may do, andrew. How do we get it to people in the facebook and snap chat world and other sources so they want the content. They understand how valuable the content is. We have to use technology to help change the con at the present time. The same story may mean more photos, more content, less content. Depending on the audience. Here is the conundrum. If you look at the trend across traditional Newspaper Companies over the past decade or two decade. Its a Straight Line down. Maybe sideways for some at best. So the question is, what is it you were going to do. You talked about ai and other things that is so fundamentally different than anything weve seen before well, first of all, at our company, we havent spent a lot of investment the last eight years on technology. We first need to just get up to speed. Were a little behind. We need to put a content Management Systems in and Customer Relationship management. We have some great assets. Our syndication business alone has 1600 companies we sell content to and 400 vidicon tent. We may have 60 million monthly unique users but we touch a billion users. If we put technology in place we think we can double the Technology Revenue over the next four months. Be a double run rate business for 24 months. Not all shareholders agree. I want to read you something. Jim cramer says that ferro has done so much damage in a brief time i had to put him on the wall of shame. He may deserve his own annex. He said that you treat tronc or Tribune Company as your own independent play thing. What do you say to that . Ive never met him. I have Great Respect for him. I think hes funny. One of the coolest names in business. First of all, i was at the Company Eight weeks and theres a group of us. We brought two independent bankers. They opined. Its not me. Its not just our board. We brought in outside advisors based on the assets we have that the bid is under value. I appreciate getting this type of notoriety in eight weeks on the job. The stock is up greatly. The stock is up on the gannett bid. The question is, if gannett walks away, theres a view among some analysts that the stock drops in half well, we have to worry about what the future holds. If we do nothing, by the way, you will have failure. We have to take dare mighty things. Were taking risks but to do nothing is going to fail. So we see great things and so do the outsiders looking at our business. We are assets we think are more valuable. You have sold shares to yourself and more recently to another investors you got the shares at a lower price. More recently at 15 a share. And yet you said 15 a share was not good enough for the whole company. Why . Explain that. Some shareholders say if youre willing to sell it 15 to one guy, why wont you take the bid for everyone . When we talked to gannett. Were happy to meet with gannett, today, tomorrow, any time. My understanding is you havent been because youve been wanting them to sign some form of stand still or nda prevent them from launching thats not true. We can file publicly. We asked them to sign nda so we can talk and we want to see numbers and forward looking things. They have to sign an nda. But nothing that would block them from launching a contest. Absolutely not. We have not put that in there. The 15 price is we told gannett we had investors to come in at 15 when they were at 12. 25. We said we have people willing to invest which is different than a take over which is a premi premium. We have people willing to invest to Bring Technology to us. We had multiple parties we were talking to. Blooechl our asset if we Bring Technology to it is going to be worth more money. What we have now to make it simple if you went and bought a house in a neighborhood and you were going to fix it up. You may buy a house 100,000 and invest 50,000 into it. Someone walks up to you and says i want to pay you 200,000 for this house right now. You said, wait a minute. We think if we finish putting the investment in in a year this house could be worth 300 to 500,000. You have to say theres a price you would sell but we have to do the work. What is the price you would sell at . Thats up to the board and the outside advisors to decide. Theres a price. Theres always a price. There is but the other side theres risk associated with trying to do very drastic things to change the business drastically. I guess thats why you wonder why not put it to shareholders. How much want to be on the risk with you to assume youre going to be worth more a year from now or two or five years from now. The question about risk. I agree theres risk. Right now the assets tread worth more than the current bid. How come the stock price didnt reflect that before this bid came in . Well, before i got to Tribune Publishing, theres a lot of things going wrong. This company was on the road to defaulting on its debt kov innocence. It was set up by tribunes media chairman. They rolled the company out. We understand 18 months ago 350 million of debt, 50 million of balance paying 20 million of dividends. It was built to fail. We have taken out 20 million of costs. We are going to take out almost 15 million of costs while raising journalists salaries. Its been announced across the board. It is kind of a unique thing right now is we actually see blocking and tackle actually, were increasing. Last year it was 157 million, approximately. Were going to be well above that. So this company is getting help. It was in bad shape. No question. And material weaknesses. No question about that. My question is if youre giving a time frame you say its worth more than than 15. 50. Is it worth more than that a year from now . Gosh, i hope so. I know its impossible to guess with wall street. Yes. That is what were doing this. When you hear investors like oak tree which sends a letter on friday saying you need a special committee. An independent committee that is different than the way the current board construct the to evaluate what is going on with gannett you think what . First of all, i, myself, and were absolutely independent. I have no salary. Im not a employee of the company. I get no Health Care Benefits from the company im a shareholder working seven days a week now to do the best i can along with our team to, you know, benefit all tribune shareholders. So i kind of laugh and giggle because i understand i dont totally understand what oak tree is doing. To be candid. Because they set this company up. They thought it was worth 25 a share 18 months ago when they spun this out. They did this. Bruce is the one that created our company. In fact, we dont even own the Tribune Publishing name. We have a license to it but we cant use the name tribune. Ive been reading a lot of twitter feed. About the critique of the if you go to the truibune publishing website its thats why you cant up with tronc. We cant use the name. They kept the name. They kept the buildings. All the buildings are almost sold now. I see all the things where everybody shows the photos of the buildings. Tribune media is leaving. Tribune publishing is leaving the companies. Theyve been sold. Theres a few that you evenively have taken over the board. I wrote about it in myself in a column. You didnt like. The idea you have theres nothing i dont like that you do, andrew. Theres a number of people you brought on to the board who either you had relationships with or knew beforehand and that effectively you have taken control of the Company Without a premium. What do you say to that . First of all, when i came in, and the other tribune deal brought me in. Youre locked in for the company for three years. Im not allowed to sell shares for three years. Thats at a normal pipe. I have no special interest. I have no warrants. When i came into this, this is how you put boards together. You look for the most qualified people. The three we nominated none i had done business with. One was on a board at merge a Company Worth 10 million. He was on the board before i got there. And we ended up selling for, you know, a little bit more than that. Almost a billion dollars. And thats how you find the first time i actually was in Doctors Office after i invested in Tribune Publishing. We were talking about this last week. What is the ai piece. You were doing ai and there were patents you got and you were going to change the way media is delivered. What does it look like . So there was a portfolio of over a hundred patents. I think Virtual Reality. The way it works it helps us be able to do things with the app and visualize content quicker. It has some content Management System software to it. Theres all these new fun features were going to be able to do were the Artificial Intelligence and make videos faster. Right now were doing a couple hundred videos a day. We think 2,000 videos a day. 12 months from now the Company Independent or not. Our advisors so what they were brought in to do is its a first time ever. Theres no defensive strategy. We said you only get paid they dont get one dollar unless we do a transaction. Okay. Were going to leave it there, michael. Thank you for coming in and explaining this despite the critique. We hope it works. Thank you. Appreciate it. Coming up stocks to watch including an upgrade for the worlds biggest retailer. Next hour head back squawk box will be right back. Ence thf the lexus gs f sport. Because the ultimate expression of power, is control. This is the pursuit of perfection. And well have to use like double maybe more im going back to the store . Yes you are. Dish issues . Get cascade platinum. One pac cleans tough food better than 6 pacs of the bargain brand combined. Cascade. Welcome back. The average price of regular unleaded gas jumping six cents in the past two weeks. In the past 15 weeks with the price at the pump has risen 60 cents. Lund bigger said the increase is mostly due to the increase in the crude oil prices. We never explain that. Thats like in a Million Dollar porch with 900 horsepower. You were borrowing. Right. I couldnt actually there were so many people around that i couldnt i was going 35 miles per hour. It was frustrating. We dont explain that. And it was raining. It was raining. Usually you dont okay. You tried. You tried to put your own gas in new jersey. That was an accident. You were showing off for the kids. Yes. Watch your handy dad pump this gas. Thats what i was trying to do. You can get fined for that, i think. Could you . I got out of the car and tried to they get mad. The guy was unhappy with me when i tried that. I was going to maybe wash the windows. Every once in awhile ill get out and top it off. They dont top it off all the time. If you get the last ocd. Yeah. I see how many if, like, the guy doesnt fill it all the way and i see the amount of miles i have and normally i can have 350. You leave the car on . No thats dangerous. Just asking. Some people do. No. Just saying. Maybe in the winter i have. Ive done it once or twice when theres a video playing for the kids. When we come back rolling out new data on the Ovarian Cancer drug over the weekend. Company ceo will join meg after the break to discuss it all. Take a look ats a that zen can. Its down. Well find fout the drug giant can turn things around. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Plumping surface cells for a dramatic transformation without the need for fillers. Your concert tee might show your age. Your skin never will. Olay regenerist, olay. Ageless. And try the microsculpting cream you love now with lightweight spf 30. Much. S a that zen can ceo joins us live from the major cancer conference. Theyve attracted millions in Venture Capital and poised for hyper growth. The count down to this years winners straight ahead. And filling the blank space. Well show you how taylor swift delivered a special wedding gift to a fan as the final hour of squawk box begins now. Welcome back to squawk box on cnbc. Im joe along with becky and joe. 90 minutes away from the opening bell on wall street. The futures have been improving throughout the morning. Were almost up 40 points on the dow after what looked like a triple digits loss on friday. But the losses closed down on 30 on friday and getting it back and up about 40 points. The s p up a little over 3. The nasdaq up 6. 5 or so. European markets are mixed this morning. They were better earlier but germany is down. France is down. The ftse is up 1 . Janet yellen will be delivering a speech on the economy and Monetary Policy today. Shell be answering questions from the audience as well. This is the last time that well hear from the fed chair before the Central Banks media blake out takes effect ahead of the fomc meeting and rate decision. A new survey finds uncertainty over the outcome of novembers u. S. President ial election may be hanging over businesses. The poll by the National Association for business economics finds that 60 of forecasters say that gray cloud is damaging Growth Prospects this year. And new details on the recent 1i8d million theft from the bank of bangladesh. Reuters reports that the new York Federal Reserve bank rejected 35 fraudulent requests for the money because the requests didnt contain the necessary information. Then, though, the requests were remitted with Additional Information and some were fulfilled. A couple of stocks to watch this morning. Walmart upgraded to buy. The firm citing improving sales and earnings. Harley davidson downgraded. Channel checks indicate a slow down despite fewer competitive head winds. People dont like the word channel checks anymore. They get anxious. Yeah. Insider trading is what they get worried about. Yeah. Black rock selling a Singapore Office tower for 2. 5 million. Saying the sale was the largest ever for a single tower rattle property in the asiapacific. If you didnt just use your words if you why not do the work . Yeah. Now its bad. Is it really . Some people get a little anxious about using the phrase. Its a good way to be anal t analyst. It would be. Check the few channels. . I do a lot of channel checking. From your couch . Yeah. A new the creator of walking dead. Its about possession. Its about demonic possession . Which is apparently pretty popular in one town. They do unbelievable blare type stuff. Green vomit. All kinds of awesome. Anyway. The annual cancer conference is underway. Data from more than 5200 studies will be presented. Meg back with us again live in chicago with another special guest. Hey, meg. Hey, joe. Thats right. Were joined by the ceo ofs a s a i want to ask about the research priorities. Where dow you put cancer . Cancer is extremely about 50 of our research and Development Budget comes from research and development and we invest a lot in r d. 24 of our sales. Almost 6 billion a year. You can see very important priority for us. Youre working with several areas within cancer. One of the major topics here is oncologist. We saw the new class of drugs approved. How are you planning to compete when there are three drugs out there . Its actually very exciting for us. Its exciting. I have to say, but this year its interesting because we are combine iing and this week saw data presented by another company demonstrating a nice combination actually adds a lot to immunotherapy. Thats bristol meyers. And theyre testing it in combination. If you have a combination of drugs that work in similar sways, but theyre on the market with those two drugs. How do you make sure you can get a piece of that market . They presented great data and great news for patients. And they first wanted to get for the combination. Some physicians might decide to use it early. You still need to get approval. And we have a program in head and neck cancer and bone cancer and first line treatment of cancers. We are dealing with a combination. And we are going to be first in terms of approval. And the big question is it going to work . Is it going to work better . But those data give us, you know, good reason to believe it will work. One question everybody has, of course, were combining the new drugs how were going to pay for them especially combinations. When we spoke last year youre thinking about new paradigms of pricing. You say we have one drug and this other drug. Instead of just the cost being one plus one were going to talk about how well does it work in lung cancer. Tell us about how youre thinking about pricing now. Actually, our Strategy Council has been from the beginning that the future of treatment is about combination. We can see now its going to be possible to combine. So treatment over lung cancer or some other cancer. And essentially having all this products in or portfolio have because we have combine the were almost out of time. I want to ask about your partner versus m a strategy. You had the big deal forrer e should we expect to see more deals of that or more outright buying of companies . We have oncologist and were talking about what we call we also so called ddr area. We have two oral cancer oral drugs on the market for Ovarian Cancer and lung cancer. We have a pipeline of products and the focus on developing tho tho those. Thank you. Ready to change their industries a big week coming up. And julia has it all. Thats right. Ahead of unveiling our big disrupter 50 list tomorrow morning on squawk box, today we talk to some of the big high profile Venture Capital investors who have backed big investors. Thats coming up after the break. Welcome back to squawk box. Matt damon calling out big banks on friday. Harshly criticizing bankers that defaulted in 2008. Calling the crisis the biggest heist in history. Banks were aware of the consequences of their actions which he calls fraudulent. Didnt he voice ed inside job . Cnbc is announcing our fourth ab annual disrupter list. Investors placed big bets that ruled the list over the past couple of years. And julia joins us with the details on that. Reporter andrew. Betting on the disrupter a company that challenges the status quo or invents a new industry is the holy grail for investors. And jerry chen which backed a number of companies on past lists says his firm applied certain criteria to identify companies with the biggest potential. We start with a founder that has a vision about an industry or market how theyre going to change it and we match that with a market we actually think could be disruptive. Thats large and growing fast. Ready for a change. And i think when we look at these investments, that combination of a founder and market when they collide its a perfect storm creates the companies. Bc are also increasingly looking for investments position for a longterm payoff. Since this years on track for the lowest number of ipos since the recession. This ipo drought shifted focus in kleiner perkins. Were thinking about how entrepreneurs and technologies and companies can be disruptive to the world for the next 10, 20, hundred years. So when you think about it through that type of a lens, it does allow you to really be more patient about what is happening now and not be distracted. Two of last years disrupters did go public. But investors are hoping for the most part that staying private longer will translate into an even bigger payoff. So who would be number one on your disrupt eer 50 list . Tweet me. Andrew . Julia, talking about disruption isnt the idea the companies are staying private for so much longer disrupting the Business Model these guys work with, to say if you cant have and realize a real exit a lot of the profits to the extent are paper profits still. For Venture Capitalist. Yeah. Its changing the game. I think were seeing a lot of massive acquisitions. Look at acquisitions like google of nest. Nest was on the disrupter 50 list. A number of these companies that were snapped up by facebook for millions and billions of dollars. We are seeing big multibillion dollar sales and thats one thing theyre focussed on. I think when it comes to the ipo market. They are hopeful in the next year or two things will fall because ipo market is making their Business Model different now. It puts more pressure on the massive payoffs they might get for a company like an uber. What about their ability to raise money in this environment right now . Are people able to do that . Are they trying . Yes, i mean, i think they are, but its taking a different approach right now. I think theyre either looking to raise money from limited parter ins with the idea that were going to invest in companies that have a massive payoff like an uber or airbnb over the long run. And the idea there will be ipos eventually of these venture backed companies. In the meantime theyre looking at what else can happen. If you can continue to raise money as an uber has done is Pretty Amazing or take some investors like tpg. They invest later. But i think the m a is one thing that allows them to keep their business going during the ipo drought. Okay. Thank you for that. Remember tomorrow were going to reveal the 2016 disrupter 50 list. The exclusive list of 50 most innovative and ambitious private companies from around the world starting tomorrow at 6 00 a. M. On squawk. And i know julia will be back with that. Donald trump ramping up his attacks against the judge with the Trump University case. Top republicans responding after the nominees remarks. Well tell you what they said next. Golden state warriors taking a commanding 20 series lead against the cavaliers in the nba finals last night. This one wasnt a contest. The defending champions win 11077 and with the victory the warriors become the first team to beat lebron james seven straight times in the playoffs. In the past 50 years only three have come back to win that nba title. And saw this yesterday. Congratulations to Novak Djokovic picking up his first french open title yesterday. Lost first set and it really that that fourth set it looked like andy murray might come by. I remember the one point it sort of all over. He was down and he broke him once. Djokovic but then he lost in the next one. The worlds number one mens player beating andy murray in four sets. Victory secures djokovics first career grand slam. But half way to the calendar slam, which would be big. Won the Australian Open in january. Oh. The last man to do that was rod labor. Again, in 1969, something that i was around for and same year as the supposed moon landing. Oh, youre going to get by hit by the astronauts. Ding, ding, ding. Do you know i told kid at home i finally figured this out. We have three dogs now. Going to be on the john oliver show for talking about my dogs. The movie all dogs go to heaven. I never understood. I hate that movie. You understand what it means . No. Dogs arent capable of doing something theyre not capable of theyre all the dog itself is such a perfect being that they never they dont deserve purgatory. None should go to hell and all dogs should go to heaven. Theyre the greatest animal. Maybe just german shepards. Its a bad movie, though. No, it occurred to me. Ive haeshd about the movie for 15 years. Finally it was like a light going off. All dogs the only time a dog is never not nice because a human has done. Right. Top republican officials sounding off about the threat donald trump attack on a judges heritage could pose to their partys chances in november. John har wootwood joins us with. Donald trump has continued to do this even while hes gotten called out by critics on both sides within his own party and the Democratic Party. Repeating the idea that the judge in the Trump University case who was born in indiana to parents who had emigrated from mexico. He cited the mexican heritage of this judge of the source of unfair rulings against him because of his proposal to build a wall. He was on television yesterday and thinks it might be the case that a muslim judge would be biassed against him. And so the charge is that this is racist and donald trump is has rejected that charge. A lot of republicans are embarrassed by the rhetoric, and mitch mcconnell, paul ryan, and others have said i dont want to go there. I disagree. Donald trump shouldnt say things like that. And thats an indication of the challenge that theyre going to face with this very unpredictable nominee for the next five months. I think part of the problem becomes that, look, if he has a serious issue with the judge, his lawyers have every right to bring charges of bias. They have not done that. There are repercussions if they were to bring the charges and didnt have anything to back it up. I think the other issue becomes that, you know, look every judge is going to have something they bring to the table. Some perspective they bring to the table. Our american Justice System is such we expect them to suppress that and make sure they are thats the point Hillary Clinton made over the weekend, becky. Which was that were all from somewhere else in america and where do you stop . Do you say a black judge cant hear a case involving whites . Or vice versa . Or Catholic Supreme Court justice shouldnt be able to weigh in on obamacare when you have the issues of religion that come up there either. Absolutely. And, you know, donald trump, in his primary campaign had a strong core appeal to a white noncollege voters. And the rhetoric he used about immigrants, the rhetoric he used about muslims lead some people to make the charge that this was a that the essence of his message was kind of a White Nationalist message. It was about racial backlash as the country grows more diverse and you have a significant number of people both on economic and cultural grounds are head uncomfortable by that. Trump has the opportunity by how he behaves in the campaign to either undercut that charge or reenforce it and republicans are concerned this he seems to be reinforcing that charge just as he is pivoting toward a general election where the electorate is going to be, becky, not anything like the primary electorate. More diverse. Everybody knows that republicans for the longterm health of the party have got to do better with latino voters in particular. The idea of picking a fight with the judge by saying hes mexican doesnt seem to be in political interest. Its sort of odd that one of the things you wonder when you hear trump is he is speaking from the standpoint of somebody who is a businessman involved in a lawsuit as opposed to a politician trying to win votes to get elected president of the United States. John, we want to thank you. We appreciate it. Good to see you. Andrew, can i correct you on one thing . Its not a commanding lead until they win one on clevelands court. To me, though yeah that was in the tell prompter. I cant change everything. To me, john, its almost like the way i know there was a brief period where people were wondering i mean curry was hurt a little bit. They wondering, wow, is it going to happen . But then you saw they just, you know, it was breaking sticks the next three games. It seemed like destened and now it seems like its happening. It seems clear to me that top to bottom theyre a better team. Yeah. You know, its like when you know duke is going to win. When you just yes like the next season. Yeah. You know douke is going to win. Its commanding. Now he agrees with that. No bad blood here. Were going to show you how taylor swift delivered a special wedding gift to a fan. First, check out the futures. Stay tuned. Youre watching squawk box. First in business worldwide. I was working in the yard, my chest started hurting and i thought, well, you need to go to the doctor. I was told that is was cancer, and i called Cancer Treatment centers of america. Dr. Nader explained that they can pinpoint the treatment. Once we identified that there was this genetic abnormality in her tumor, we were able to place her on very specific therapy. Our individualized care model gives each lung patient specific Treatment Options with innovative procedures that are changing the way we fight lung cancer. We have Excellent Technology that will allows us to perform very specialized procedures for patients who have lung disease. To learn more about these targeted therapies and advanced procedures for lung cancer, as well as the experienced physicians who deliver them, go to cancercenter. Com when he showed me the cat scans, i was so amazed. With this treatment, she had a dramatic response. Call or go to cancercenter. Com. Cancer Treatment Centers of america. Care that never quits. Appointments available now. Welcome back to squawk box. Computer making dell announced a offering. The proceeds would be used to help finance dells purchase of emc. The deal worth a total of 67 billion. Martin shkreli is back in court. Already facing charges he defrauded investors. Prosecutors filed an Additional Charge saying he tried to conceal his shares of retrofit. And the ricing price of crude oil puts average price of 2. 37 a gallon. Up six cents over the last two weeks. A pair of newlyweds got an unexpected gift. Taylor swift. The pop star crashed the new jersey wedding and performed one of her hits we are never getting back no. Blank space. She did blank space. I dont know. Swift coordinated the surprise appearance after learning the couple legally got hmarried in the grooms hospital room before the mother passed away so she didnt have to miss out on the big thday. Apparently it was on long beach island. I was there this weekend. Thats nice. Chaos broke out in new york city all in the name of yeezus. An estimated 4,000 fans swarmed after kanye west hinted a surprise concert on twitter. The governors ball was cancelled due to inclement weather. The crowd for the pop up show grew too large too fast forcing them to shut the show down. I dont know. Umm. About kanye. I dont know. Are you deferring . Deference. A little deference. Deferring. I might defer to the president on kanye. Thats big of you. Remember that great comment. It was off camera. Anyway. President obama. Out with a new book called the rise and fall of nations and the book lays out ten simple rules for ranking the process pengt prospects of nation such as good, average, or ugly. He joins us to break it down and share the fascinating analysis on what to look for. Is the lead that china is holding us back . Yeah. I think so. Every single downturn has been lead by the United States. I think the next downturn is going to be made in china like Everything Else these days. I feel that every single knick boom has come to an end when the country has taken on too much debt. Thats what china has done. Its the disof death. When a country takes on too much debt the country gets and no developing country in historically has taken on much debt as china has taken on since 2008. And are there do we know the real debt number in china . Would we have to add up numbers and estimate to add more . How do we estimate the total debt . Yeah. Youre correct. We know the magnitude. We know for a fact that in china today its taking 6 off debt to create a dollar of gdp growth in china day. Thats unbelievable. At the peak of the u. S. Housing bubble in 2008 it was 3 a debt to create a dollar of gdp growth in the United States. Thats a magnitude of the debt boom youll see in china since 2008 2009. This was not the case. I write in the book that 2008 chinas debt numbers are stable. And then they went crazy after that to try to grow at Unrealistic Target of 7 or 8 . Even though the rest of the world they took on the amount of debt. It ended the same. You take on too much debt and it spells trouble. Good billionaires and bad billionaires. Even with trump youre calling him a good billionaire. What you mean is the billionaires we have in this country mark zuckerberg. He didnt inherit that money. Bill gates didnt inherit the money. It wasnt through necessarily crony captaitalism. Maybe a little bit on the edges. Most of the billionaires here and theyre flame philanthropic. Thats the point in the book. How do you measure income inequali inequality. What is the point it begins to threaten economic growth. I look at other countries. Theres no way that a billionaire in russia, mexico, brazil, or india would be able to make a frun for the top office. Theyre vilified. With good reason. Exactly. Theyre seen as people who make their wealth because of the connections with the government and because they inherited a large part of the will. In the United States is relat e relatively better. We havent reached a point theres bad billions that there is a backlash that builds up. Do you worry about the winner take all society . I do. One is good billionaires and bad billionaires. Which is about what industry are they maker their wealth. The second i look at is wealth. And the United States is better than the global average. I one i worry about is the ratio. Historically the wealth of billionaires in this country is about 10 of gdp. Since 2009 it exploded. Today were at 15 in the country. The second highest in the world after russia. Thats a problem. I think this goes back to the fed since 2009 havent my favorite thing is the idea that the United States for all we hear about how grumbling terrible things are here. Its one of the countries with better future. Yeah. Even compared to china at least the u. S. Debt level stabilized since 2009. The Government Debt has gone up a lot but the private sector debt especially household and Financial Sector has come off. Today the United States has a growing working age population. China for the first time in its recent history the working age population in china is shrinking. Thats a big deal. And the thing about globalization is a big trend. China is getting hurt by it because it relies so much on exports. Thats not the case out here. So in, in fact, if you look at u. S. Versus china im more opt ist mystic on the United States than china. We only have a couple of bad be billionaires here. The kochs. But those guys are offset by the good billionaires like tom sire who made their money in oil and gas are flying around on private jets talking about climate change. So weve got those good billionaires sort of offsetting those horrible koch brother billionaires. The Koch Brothers are im not going to name names. Come on if theres any bad billionaire its the Koch Brothers. Dont you read the newspapers out of this area . The important point here theyre bad. Compared to other countries in the world, we have many more good than bad billionaires. What matters more than perception or reality what is trump sort of hes a bad good or good bad billionaire . Im not sure hes a billionaire. Exactly. You say its less than a billion . No i suspect why did you say that . Nobody knows. Nobody knows anything about anyone. But i go to my point the two important points and trump. Hes a billionaire and no one is holding that against him. Exactly. Many would be against him. Here is the important point like any other country especially in the emerging markets if trump was rise soggy fast in the polls, the Financial Markets would be complete panic. You would have collapse in the stock markets. You would have a run on the currency. Hes surprised that the trump panic isnt bigger than the brexit. Know why . Its so strong its complianted. The liberal perspective. Its just can you explain what is the right number of money . Is it a can you is it john kerry versus 600 million donald trump what he says his number you heard what i said. Romney was too rich. Trump is not rich enough at a billion. Is this how it works . In instance, it is. Its confusing to me. Poor hes rich enough. Is he good rich . The important point. What about gulp drinks. I would think i dont like the nanny state. I like he flies whenever theres trouble he flies to bermuda on his g 6 to play golf. I like that. Anyway, thank you. Thank you. Good luck. What color is the binding on the book . Green. I think so. Its blue. Blue. I want one. I do. Thank you. Fantastic. When we come back, is the internet mankinds greatest masterpiece . Thats the argument of a new book called magic and loss. Well talk about the book as a work of art right after this. 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. Welcome back. Unruly mob with a brave new world. Whatever your view of the internet. Our next guest said we should embrace the internet. Her new book is called magic and loss the internet as art and, virginia, thank you for being here today. Thank you. I think this is a really interesting way of look agent the internet. You know, i think its the most unbelievable tool. I couldnt deal without it. I get frustrated with the level of social interaction that questions online. I probably have conflicted relationship with it. But youre looking at this very differently. Almost Like Television when it meant a reflection of our study. Marshall was so trippy. No one knows what it means, lets face it. I did sort of take that seriously. What are we saying to each other since weve been saying it digitally . And what did you come up with . A number of things. We are expressing a lot of anxiety about dijtyzation. Like any revolution and any technology. We sit around and wonder what is lost. What is lost. The title of the book is magic and loss. The magic is the this is it. This is the revolution. Its the best thing that happened to man. And the loss part is what is that thing were missing from offline life. Why do people seem angry online . Thats a good question. Its an emotional medium. It sounds to me the word anger i go to one part of the giant internet mainly twitter. Facebook has become, especially during the election a repository for reasoned dialogue between republicans and democrats. Twitter has become the mob voice. I happen to like the mob voice so i hang out on twitter. If you want peace, facebook is your place. Its not just a twitter phenomena. I remember the aol chat boards and some of the things that compuserve used to do. The anonymity of the internet. Its a channel and part of the reason i say the internet is a work of art. Its powerful emotions. Powerful emotions come through art. As a channel theres no better place than Youtube Comment section or a twitter or a, you know, twitter tweet storm. Youre somebody who used to be a television critic. You started looking at online videos. What did you notice in this new medium was different . What grabbed you . What made you so interested . When you review television at the new york times, you get comfortable that the idea that youre treating as an art is on separate pages on science and so forth treated as a Public Health hazard. You spend a lot of time reading articles saying tv shortens your attention span, makes you fat, makes you stupid. Then we talk about music and character creation on the arts pages. My mind was split all the time. When i went to online video, i was accustomed to people saying this is a neuro toxin youre calling an art. And if youre trying to find deeper meaning at this point, i mean, after years of studying this and seeing what is out there, where do you think its taking us . I think its taking us to a more exciting its an extension of our humanity. So what is good about us shows up on the internet and what is bad about us shows up on the internet. If google is going to organize the worlds information, and they seem to be to be in the continuum of doing so, youre going to see the good, bad, and ugly. Do you think the quality is Getting Better . Do you think quality of writing is Getting Better or worse . You know, absolutely. Absolutely absolutely probably better and worse. All though i would say that the imperative to raise your game on i dont want to keep focus on twitter but instagram. You cant, you know, you fall out of the conversation if you arent making an effort. And, you know, for what its worth getting something into 140 characters, tagging the relevant people, knowing the terminology and how to make it work is a skill. And people have, you know, a lot of people have risen to it. Its really interesting to see people like mia pharaoh who have found themselves on twitter. But certainly theyre instagram stars and people on facebook that should be writing opeds for the times and writing in mixed cases for free for their friends and followers. Thank you for coming in. The book is called magic and loss. Our good friend is set to to tell us about binge. Thats next. Are we in a social media bubble . Are we going to look back at this in 20 years the way we looked at smoking. I hope so. You do . We thought then we could live our lives again. Actions speak louder. Something well show you. Through small things, big things, and spur of the moment things. Media and entertainment are changing in exciting ways, new players, new technologies and new ways to watch. And i like to watch. And interact. Carl quintanilla joins us now with the binge phenomenon. I like the name because i like to binge. Yes, you do. And then i like to purge, carl. Yes, you do. Both of those things. I was thinking how many big le bow ski references do you think you and i have made over 15 years . And are there other movies that would tie that. That might be the i abide, youre probably right. Theres another one. Morrisey. Yeah. It doesnt matter, film, movies, television, music, its part of our world. Its part of our the discussion how it gets to us sort of deserves its own home on digital. We talked to producer brian grazer, we talked to de niros partner rosenthal. We talked to andy cohen and how he thinks the original binge phenomenon was when bravo put the runway marathons together years ago. Take a listen. But you think its bingeable. They do it now five in a row. I mean, its the cornerstone of bravo is marathons of bravo shows. I mean, i think lauren zelasnik is one of the people that kind of really invented the marathon when project runway season one was doing poorly in the ratings and over christmas break she said lets just rerun the episodes we have, blanket bravo with them for two weeks. And thats what they did. And when the new episode came back after the break, it was a huge hit. And so the marathoning had worked. At that time, you know, nobody binge watched anything. We didnt have the word, binge. Absolutely. I think that was one of the first Binge Watching moments for reality. So the really fun discussions for anyone who loves movies, television, pop culture in general, you can see it on cnbc. Com. Its on apple tv. Its on hulu. Its on various on demand channels depending on your cable provider. And later today, guys, at 2 00 eastern time if you dont want to watch yellen or hear the roundtable discussion you can watch me talking about the phenomenon of bingeing, whats a reasonable time period to think you should be able to avoid spoilers and social media and the roll of the critic in this time where theres just so much content coming at us 24 7. Im behind on some things, carl. In twitter its like if i see a game of thrones, anything coming up, but i still see i know too much. I know john snows not dead. You know what i mean . And i havent seen that yet. Yeah, i know. But its not fair. Its almost impossible to avoid it. It really is. We did an interview last week in l. A. With the executive producer of house of cards kwt, and in course of the interview i accidentally revealed the fate of a game of thrones character. Oh, no yeah, i felt bad. How did the rest of the interview go . Thats where we are, right . I have two questions for carl. Carl, do you care where we watch it, as a media mogul yourself . Like in your bedroom . No, meaning do you want us to watch it on cnbc. Com or hulu or apple tv. No, absolutely not. I would expect people during work to watch it on dot com, but tonight i could see you firing up apple tv. As a producer yourself, andrew, does it matter . No, as long as they watch it through showtime any time or however they can get it. You are correct. But i believe your model is different, right . Its an advertising model. Absolutely. I was thinking about how that works. Carl, probably g1 and g2 theres more references, but theres a sequel. Its business, sonny, or im going to need something from you in the future caddy shack. And g3, you pull me back yeah, we try not to think about g3. Wait for airplane references. Blaine garrett. Trump university a viewer, while were talking, guys, a viewer writes in and says i actually have a cat named the dude. Thats good. All right. Is it still Carl Quintanilla . Or carl quinn . Say that again . Is it still Carl Quintanilla no, quin martin production, youve been trying to get me to change my name for two decades. Strong. Carl quin, anchor man. Thanks, carl. Thanks, guys. Coming up, this mornings biggest stock movers when we come back. With creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov prge a manufacturer. Well thats why i dug this out for you. Its your grandpappys hammer and he would have wanted you to have it. It meant a lot to him. Yes, ge makes powerful machines. But ill be writing the code that will allow those machines to share information with each other. Ill be changing the way the world works. interrupting you cant pick it up, can you . Go ahead. He cant lift the hammer. Its okay though youre going to change the world. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing lets get a final check of the markets on this monday morning. You can see futures have actually picked up. Dow futures up by about 50 points right now, s p futures up by 5. Nasdaq up by 11. 5. Were all awaiting janet yellen and the speech that will start soon. Energy prices, wti almost 50 a barrel and dollar picking up ground after losing it last week. Join us tomorrow. Squawk on the street begins right now. Good monday morning. Welcome to squawk on the street. Im kwarl quintanilla with david faber, mike santoli at the new york stock exchange. Cramers off today. Markets looking for yellen to respond to fridays dismal jobs number. Feds chief going to speak in philadelphia around lunchtime. Futures in the green after three weeks of gains for the s p. Europe is weathering more brexit fears today. New poll results are out. Oil is worth watching. Brent today at a 7month high. Road map begins with yellen set to speak this afternoon. What should investors b