Transcripts For CNBC Squawk Box 20160707

Nikkei flat. European equities, still positive. Nicely positive. Its better than yesterday. Germany, france, ftse, spain, all higher by more than 1 . Even more italy who has suffered so much lately. Price of crude oil up this hour across the board. 47. 97. Brent is reapproaching 50. 49. 34 with a gain of. 55. Danone is buying whitewave foods to expand the presence in the United States. Whitewave is the producer of silk almond milk, Earthbound Farm horizontal organic milk its a 24 premium to whitewaves Closing Price over the last 30 days. Tesla ramping up the word of wars with fortune. The electric car maker saying it did no wrong waiting to disclose a fatal accident with a car with self driving technology. This after fortune accomplished accomplish fd a story that was critical of tesla setting on the news for eight weeks. Criticizing the fact elon musk sold shares in the interim. A blog post late last night denying it knowingly withheld information from shareholders regarding that crash. Shares recovering. Ordering due pant to pay more than 5 million to a man who claims he got cancer after being exposed to teflan. Awarded 5 million to the man in compensatory damages. The company says it will appeal. Have you seen that before . I have. Khemours you say them definitive like i do. Nobody else knows. Deer in head light panic that you havent seen that word before which is how i you should do it. I have seen it before. Did i pronounce it right . You did today. You did so definitivelily i assume thats the way to do it. I remember it from the due pantpant saga. It had come up. This going to take me like five minutes. We have to talk about tesla. Political news. As expected u. S. Attorney lorp ret that lynch accepting the fbi recommendation. Fbi director james comey is going to testify before the House Oversight committee on details of the investigation, but before that happens were going to speak to congress man jim jordan. Hell join us at 8 a. M. Eastern. The reason i was going to audiocassette about Loretta Lynch. Trump is in cincinnati. Your hood. My hood. He is talking last night. He is funny at times. He said 39 minutes theyre talking on that plane, Loretta Lynch and bill. So he goes theyre august about grapd children and golf and trump is like hes got two grandchildren. What do you say about the newborn. It smiles when it has gas. Then you talk about the other one. Then you talk about that. That takes 30 seconds. Then they talk about golf. 37 minutes. What was the other. That was the point he was making. Grandchildren and golf takes like two minutes to cover. What is funny its all happening in sincincinnati. Did you see this shot of what happened with me last week. When you threw the opening pitch. No not that shot. This shot. You took a picture with Elizabeth Warren. Why wouldnt i . This is a country we all may have disagreements. If she ever gets in power shes already been in power and look at what she has done. Shes a very nice woman, by the way. Heres what happened. You guys are talking about golf and grandchildren. Were at this im at a hotel in cincinnati. Theres an executive lounge where you get to go and have free breakfast or something and i walk in. The very right hand entrance after being out on this terrace and i almost fall in her lap, swear to god. She recognized you. She recognized me and i brought my kids in. I think shes a roll model for any daughter. Look at you. Come on. Come on. Im a bipartisan guy. He is amazing. Everyone wan democrats sit down and he thinks he likes them. You deserve an oscar. Speaking of trumps president ial campaign is makin a financial comeback. The likely republican president ial nominee raised more than 50 million in june. Thats more than 16 times what he raised in may and didnt really get serious until the last ten days or so. Wasnt as much as Hillary Clinton. According to the trump campaign, slightly more than half came from digital small dollar operations with the help from the rnc. In comparison to june, republican mitt romney maized 100 million. Clinton raised a total of 68. 5 million, but based on the report. That was a big number for trump and one that even the Washington Post mentioned. Trump is taking aim at disneys frozen. Hes been under fire for a tweet of Hillary Clintons picture with the five pointed star with the words most corrupt candidate ever. Last night trump tweeting an image on the cover of a frozen coloring book which also features a five pointed star. He wrote where is the outrage for this disney book. Is this the star . Isnt it six . Yes, thats what i thought. Its two try angles triangles just trying to be accurate. Calling and then tweeted havent they said something about frozen, its the star of david also dishonest on dishonest media, hashtag, frozen. Leave it at that. On todays economic agenda. A double dose of job. Payroll report is out at 8 00 p. M. Eastern time. 8 30 a. M. Look for weakly jobless claims. Expected to hold steady. On the earnings front, pepsi is reported to report around 6 30 a. M. Eastern time. For me expectations im joined by rob marten. And chris bennett. Does it even matter . Based on what we heard from the fed minutes, are they going to raise . Ever . I think it matters complete for the fed. What is going on with the fed, they got slammed with the may employment number just like the rest of us did. Event justing for the strike, that was a weak number. It came with revisions that gave a downward trajectory. That signals recession so theyre very concerned about that right now and what really matters is what is going to happen friday and over the next two reports. If we see a rebound in employment, if we get an average of above 150,000 per month of the summer, then i think theyre ready to go and theyll go in september. On the other hand, if the labor markets remain saft or weaken further, then the probability of recession rises. What do you think of those two outcomes, what do you think is most likely. Our base case is it bounces back. Were not seeing deterioration in other data. Unemployment and insurance still look fantastic. Still near a record low. You gragree with that . Lets say we get great job growth. Youre going to raise rates . I think thats a great question. Were looking at things and saying we would need gang buster data. What is that. Sort of in the eye of the beholder at this point. We would need to see things to drive that movement in one way or the other. Its going to take some gang buster data to see that happen. Even the job report is not going to erase the brexit fallout. Which has led to the more negative yields. For who knows how long. What are the numbers for 2016 . The last i saw they were pricing in a cut rather than a hike. Its kind of priced out the fed for 2017. Through the tend of when. Next year . Just got a little bit of pricing in there. So markets are very concerned and its to me its all driven by the labor market report. I think that would turn around quickly from both perspectives if we got good numbers. Theres a good chance theyll go south too. I was going to ask. Am i correct theres a slight chance of cut priced in for this year and what do you think the chances are for that. Even if we got a really a pretty substantial deterioration, its going to take the fed a little while to change directions. Its a slow moving ship. Very much on the tightening bias. Thats the message we got from every speaker. Its not a question of whether theyll raise rates again, its a question of when. I dont think theyll do anything before the election. September, would that do that . I just wonder whether were wrong about the whole affect of europe on brexit. I agree with you completely. Were wrong on everything all the time. You have a cheap pound, number one. Which is going to help the uk. Will the messy divorce, will that be so, i guess, amping the animal spirit or getting out from under a global system. Just overdoing the hysteria. No doubt. I think the whole system is one of the reasons its growing so slowly in the first place. When it comes apart, it might be better. Yes and much more simple idea is the elite consensus is so dominant that its so bad and horrific and how correct has that been . I dont think china and russia will ever get going until they combine forces and become the asian union which is really imminent. Thats going to happen quickly because the nationalism in russia and china. Would that ever happen . Will that ever happen and are we okay with russia, you know, protecting its own interest. Its dangerous, but its not a bad way to run an economy, is it . To have your own self interest in mind. Thats wh i dont know. Im getting off. The problem with the eu is they enforce all these rules that are antibusiness, but never enforce rules that help business. Theyre bureaucrats. How are you. Sorry. Why we invited you guys. Is adp going to move in the market or no . Its hard to say. I think at this point, the market has sort of been in a long mode for the near term. Again, i think we would have to see substantial data negatively or positively. When do you stop paying attention to the fed . What i mean by that is look, maybe its my circle think that all Central Banks have lost credibility. Japan, i dont know why they get out of bed in the morning. Everything they do has no affect from kbwhat i can tell. Is it working . When the world wakes up and says is sit working, does it matter what they do at all . I mean, and if when we get to that point, if wroer not there, what kind of crisis is that . Is it a crisis. I think one of the reasons people have lost faith in the ability of Monetary Policy to work is because the economy has been doing pretty well and Central Banks keep trying to erase the downturn of the last recession, but were well past that now. You cant push on a string. Doing more expansive when the economy is doing well doesnt work. If the economy were to turn and go back to recession. Then quantitative easing may work again. I said Pay Attention to the data and look at where the economy is going itself. The market rally yesterday because the minutes were considered dubbish. Ignore it . Innin think so. I didnt learn anything from the minutes yesterday. Thats not going to matter on 8 30 friday morning. Thats pretty much it. I think i would rather not Pay Attention to the quality of factors and stair at the quantitative data the market has given me. Got you. What month is your prediction for the 300 plus jobs. That was back in ronald reagan. But before the election. October. October. It would be the september report because it comes in october. Right. You have to look for first week of october. I look for 300 plus, 350, 400 maybe on october, whatever the first friday in october was. I cant believe it. Like 400. Its usually the way it works. Dont you think . You just watch. Happened four years ago. Remember it was perfect. It was beautiful. Going into the election. Remember . Yes, i remember. We had a famous ceo tweet about it. They would never do that. Coming up, the irs would never target conservative groups. They couldnt get away with that. They couldnt. You would never let a candidate get off. Never get off. Its impossible. Or a private email. Is this me . Am i reading this . You want me to read it or not. Coming up the buzz in washington from the directors date on capitol hill this morning two potential running mates from donald trump. The latest on the campaign trail is next. They may want the latest products and services, but they demand the best shopping experiences. 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. Amazing sleep stays with you all day and all night. Sleep number beds with Sleepiq Technology give you the knowledge to adjust for the best sleep ever. Its the final days of the lowest prices of the season sale, with the our best buy rated c2 Queen Mattress now only 699. 99. Know better sleep. Only at a sleep number store. House republicans making sure the clinton email remains front and center. Fbi director james comey will appear this morning. Lets bring in steve mcman. Tony fratto managing partner. Steve, let me start with you. I understand for me i understood what director comey did, i think. Ive likened it as other people have to Justice Robert not wants to be the news of you know, not wanting to stick a dagger in obamacare. Wanting the voters to do it if it ever happens and comey is going to let the Voters Decide as well. Im not sure though, steve, that the fbi that is in the business of deciding whether something is against the law or not really and then the prosecutor can decide whether you can make a case. For the first 14 minutes, he seemed to present evidence that the law was broken. That was the take although of people had. Was that you take . I think he presented a lot of evidence that the law is maybe loose with respect to what the expectations are and if you know, it will tolerate these kinds of circumstances, and i think he probably would expect congress to tighten it up in some respects. Hillary clinton has made the point before that what she did was not unique or the first time. Obviously there are rules and she should have done it differently. She said that herself. I dont think there was a lot of news there. He did lay ut out like a prosecutor, but remember he was a prosecutor for a very long time. He was a former u. S. Attorney. Pretty respectable guy. If you read the statute itself and you align the statute with what he presented in the 14 minutes thats fwens the law. Hold on the statute requires, im a lawyer so the statute requires intent. I think what he found was there was carelessness. He got a private server to make sure she did, the intent was she wanted it kept secret. She did want it kept secret, but there has to be intent to violate the law with respect to classified materials and what he found was there was no intent. There was carelessness, maybe x extreme carelessness. If i run a red light because im carless, can i tell the cop i didnt mean to do it. Yif theres a picture of you doing it. There were five mitigating factors all of which he went through. All of which apply to the case and many of them did. They didnt apply here. They couldnt find a single instance of prosecution with this set of facts. Going to get their clocks cleaned because james comey is much better prepared for this than they are. Having james comey as confident and as good as he is was not a favor to your candidate. I can tell you that much. Just from watching the 15 minutes. But having him reach the result, having him reach the result he did was the guy has been beyond reproach his entire career. Kept calling it an exoneration. It was like baghdad bomb. We got him on the run. Heres what it was. Heres what it was, finality which the Clinton Campaign needed. Exoneration. Go ahead. Im sorry. I hesitate to go to tony at all. Ill let tony talk about Hillary Clinton as long as you dont get on the republican. I dont know who is worse for trump prospects. We might be on the same wave. Im the guy that gives tens of thousands of my own money to support republicans, joe. I was looking up with the Establishment Republicans are. Hes got more votes than any other republican. There are more people than there were. I found the do do bird. And i said this. Is the do do bird extinction because it didnt have any competitors so it nebraska hver fly on the island of matt gas car. Do you noe how the establishment got to the establishment . By winning elections. Thats a very good point. Wow, i must have missed mccain and romney. I must have missed what happened with mccain and romney and the first bush. Left turn in all borrow curky. I worked for the guy between them that worked p r the elections. This is great. Ushered in barack obama. When you say things like the Vice President ial field is slimming down for trump only because most normal republicans are running as quickly as they can away from him and the only two people that might accept it are Newt Gingrich and christie. That doesnt sound like a guy that is going to oppose steve on our show. I can oppose. Basically on everything you said about Hillary Clintons handling of the situation and classified. Someone who has had to handle classified material and been trained on it multiple times and understands it. Her position on this was completely untenable and really misled people and media consistently through and i thought the case that comey laid out was pretty devastating. Whether its something that could be prosecuted or should be prosecuted, thats a different point, but i can tell you that this idea that you know, she didnt know what she was doing was just not tenable at all. Theres a culture of paranoia around the clintons that everyone is out to get them. The truth is everyone is out to get everyone and that doesnt mean you get to make up your own rules outside of the system that everyone else has to comply with. I thought it was devastating and damages to her. I still think odds are they secretary clinton ends up winning this race, but shes crippled and crippled as a candidate. By the way, i havent been a huge apoll gist for Hillary Clinton on this thing, but theres a question about what she knew and what was important about it. So for instance she definitely knew she had her own email system, but so did previous secretaries of state. Not server. It sound like she should have known that some of the material passing through that system was classi classified, but theres no evidence of intent. The law requires very specific things and we live under a rule of law in this country. Even the former even the assistant director of the fbi the former assistant of the fbi who was with you us yesterday on this program said that extremely careless and negligent are identical twins. As a Legal Standard by the way theyre absolutely not. James comey is the direct orb of the fbi and not t. He prosecuted martha stuart. He keeps saying she never intended to break the law. She intended to install a server. She intended to send the emails. You could say i didnt mean it. I didnt intend to. How many lawyers are part of this conversation today. You want to bring up the fact youre a lawyer, go ahead. Im pretty sure im the only person train instead handling classified information. Are you train instead electricitying cases tony. No im saying prosecuting is a different standard. What im telling you talk about intent, hold on just a second. She is a lawyer and she has been trained on how to handle classified information. Her view that as a secretary of state that she can make and produce communications that arent classified is bonkers. She is. If she relays a communication of her conversationing with a head of state to another country tharks is implied classified so yeah, i think shes taking advantage of people who do not understand what classified means. But here is the question of james koe comey was asked to answer. Was there evidence that laws were broken that should be prosecuted and he reached the answer the conclusion he reached was no reasonable prosecutor would bring this case. He was a hero to the republicans until yesterday or two days ago and now hes going to. Im going to admire james comey and not being critical of him. I think he made a decision that he was noit going to be the one to completely up end a president ial race and make that decision on his own. Ive got to go. Im going to present the case to the people. Hey, tony. Thats not the way he explained it. You can suggest hes lying, but i dont believe he is. I gave you tough love and you rose to the occasion. You did, tony, you rose to the occasion. You were very useful. Thanks joe. Thank you. We appreciate it. Tony and i still agree about trump, by the way. Indeed. Have you back on saturday. Thank you. Pepsi is just out with its quarterly earnings. Beverage giant called an incredibly volatile global environment. Pepsi says its pleased with the results considering the negative impact of Foreign Exchange as well as write offs involve lg the value of the venezuelan operation. So dthere was a rumor back i 2005 that pepsi wanted to buy danone and the french went bananas. Yogurt was a crowned jewel. How dare an american economy. Danone, its a very nationalistic. Yogurt is very important. I felt very similar with smith field foods. Thats right. And bacon. That danone guy is busy lately. Yes. You say the chinese danone. Think if they cut us off, cut bacon off. Thats why i thought it was a Security Risk they have them controlling the bacon supply. We would fold very quickly if we right . For sure. More on pepsi coming up. Were going to tell you why good whether means bad news for game of throne fans. This is a tough story. S p 500 winners and losers. Its time now for the executive edge. American airlines wants to hep you get to your gate faster. Its teaming up with tsa this fall to speed up screening. Isolate risky bags without disrupting the line. Bins for cameras that link photos of a bag to its xray. The most important feature may be the introduction of ct scans for bags which would allow you to keep laptops and liquids in your bag. Tests will be at dallas, fort worth, la and miami. Even faster. They want you to get there in time if you are your flight. There knost ev theres no even faster. Itsless slowly. One shoe bomber and we have to take off our shoes. I dont think anyone has tried since. Liquids, one guy. Every one of us. We cant bring juice on the plane. Its horrendous. Its like sigma. You have to prevent one thing out of 8 million. Then you also have to deal with the tsa and everything else. Anyway, bad news for game of throne fans. Im not caught up. Neither am i. Not caught up, but winter has arrived on the show. That means production on season seven is going to have to wait for the summer sunshine to be over so they can shoot in grim, gray weather. I always knew weather was coming, but it hasnt started coming yet in season five. So now i know werent does come. This is the big battle scene, right. Shows create terror also confirmed the episode count in the two remaining season will be smaller than previous returns. No official return date has been announced. Why are they doing fewer episodes. Its so expensive . The one guy was the mayor. Did you connect the two . Little finger and are the same guy. You dont even know the same guy. Wow. You have to watch that. Have you seen. No, ive seen the wire. I didnt watch a on the of it. Baltimore, one of the best cop show ever. I started watching, i was so fixuated on it that when things would happen on a corner on the score, you can look it up on google maps. I dont know whether i wanted to be a cop. Thats the other guy. Did you want too be a cop or the corner guy. I wanted to be a corner guy. I never even thought of it that way. Im going to look up who did that. Good and bad people on both sides. That makes any great drama. Is the conflicting. Yes, thats the way we watch television this day. A single bunch of grapes sold for a record price in japan. The ruby roman griapes were the first of the season. Each grape was slightly smaller than a pingpong ball. They must be really good. Yes. Coming up addressing terrorist at soft targets like sporting events issuing concerts. New Screening Technology and it has backing from bill gates. The companys ceo joining us next. 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. Amazing sleep stays with you all day and all night. Sleep number beds with Sleepiq Technology give you the knowledge to adjust for the best sleep ever. Its the final days of the lowest prices of the season sale, with the our best buy rated c2 Queen Mattress now only 699. 99. Know better sleep. Only at a sleep number store. Welcome back. The technology is better and faster than what currently exits and is attracting some big name investors like microsoft inve invest investor, bill gates. The century system. How does that work. It uses millimeter waef which is just like the technology the body scanner uses, but its completely solid state and its fast. We can screen people as theyre walking on the fly. So you would have in in the entrance at a airport or a mall or concert or any kind of place where theres a mass gathering. Exactly. Preventing mass causality events. So any person would just simply have to walk through here whether youre pushing a luggage cart or walking in with your family or anything like that. Exactly. Come through carrying the things we all normally carry. The cell phone, the wallet, the keez. Go through, is testimony will automatically look for explos e explosives or firearms. It will give an indication to a guard on an ipad and let them know if that person is clean or suspect. How many of these exist in Public Places that we dont even know about or recognize. So it involves a new company. We started the company about two and a half years ago. Weve been in the industry for over 20 years. This is preproduction unit. First systems are going into the field early fall. Bill gates is an investor. He is. How did that happen. We have an relationship with intellectual investors. He is related to intellectual ventu ventures. Was a lead investor. You can walk through this normal speed. Normal speed. You can do your thing. Well continue to have our conversation while this gentleman walks through. Just walks through normally. The system examined him has determined hes completely clean. Isnt carrying in suspect objects. Suicide vest, gun, or anything else. Is that what this world is come to youre going to have to go to a Shopping Mall and stand outside in a line and walk through one of these devices. Unfortunately, what were seeing every day in the headlines now is exactly the situation that you know youre describing. Whether its houses of worship, malls, events, were seeing devices like this. He just walked through with a device around his waste. It doesnt make a siren doesnt go off alerting everybody. Its entirely up to the guards how they want to operate the system. How close are the guards to where this is located. This can be remote. It can be wireless. It can be used anywhere. A command station, control center. The system may not want to alert somebody theyve been detected so they may want to track them and follow them through. Were using cameras to catch the image as they come through and compare that to a data base of potential known wolves. What kind of work are you doing with the department of homeland security. They are aware. They have funded a lot of work. We work with a lot of dh agencies now. Is it more sensitive than a regular mag tom terre that you would walk through. The problem is the exemployeplo arent metal. We want to do very high speeds. 800 people an hour. Four or five times that of a typical checkpoint. Want to move a lot of people quickly. Were looking for those threats that can take out a large number of people. This is a prototype. How quickly can you make these in sort of mass numbers to get them thousands of stadiums in this countries and mauls et cetera. Well in in production early fall. Shipping units in october. Who do you think your customers are going to be . Are you already talking with people . We are. Government agencies. Stadium owners, event planners, its a pretty broad swoft of folks concerned about these threats these days. Thank you for coming in. Coming up, pepsico. Were going to dig through that report with an analyst coming up. Welcome back to squawk box. U. S. Equity futures up this hour suggesting were going to get another positive open. Dow would open higher by six. Nasdaq higher by 2. 5. Mixed session overnight in asia. Japan was lower by 0. 6 . Shanghai was flat. European equities. Theyre still mostly above 1 . Germany, france, ftse, and spain higher by 1 . Pepsico releasing Second Quarter results beating estimates on the top and bottom lines. Calling in now Rbc Capital Markets managing director. Before the numbers were out, nick, i saw some of your comments that beverage volumes would continue to be weak. To the consternation of everyone who wanted to split off the snack foods, the snack foods are the bright in your view that was going to be the bright part of the report. Did that hold true . Yeah, that held broadly true. The snacks business certainly outperformed the beverage business. Keep in mind that pepsis Quarter Ended june 11th and we had really bad weather many to the u. S. In april and may which weighed on beverage volumes industrywide. But june recovered nicely. So pepsi wasnt really able to capture that full improvement. Can you name scott, can you name the big four in terms of things that end in toes . Fritos. Doritos. Tostitos. Cheetos. Nice. That comes from a lover of all of the big four. Me too. And people still dont realize salty snacks, beverages. Goes together. Havent they come to realize it . They have, nik, because it if trades up today, it could be at an alltime high. Exactly. These guys have done i think a pretty good job in the current environment. Certainly a lot of the special situations, angles that investors have been hoping for have been deflated with trying to exit in the stake. Pepsis fundamentally delivering. We think the stock is near fair value. But they are performing in a tough environment. So back to you, scott, just for a second. So can we say for sure that trying whatever they wanted to do its better what they thought . I think thats why they finally made peace. Can we definitively say now activists arent always right . I think there are several cases where they may not be right. But in this case it seems had the right idea all the while . I think what they wanted was more operating efficiency. Pepsi announced their version of zero based budgeting called smart spending. Been aggressively attacking the structure. Margins were better this quarter. I think thats playing out. The reality is snacks and beverages makes sense together. Theres no question about it. The question is how can you align the two parts of the organization to work closer together . And thats the challenge. I think pepsi doesnt want to force the issue. We have different views on that. I think they should realign to make the businesses work better together. The reality is snacks and beverages belong in the same house in our view. You use the term precipitation anomalies. What is that . Climate change . What are you trying to say . Rain. We measure rain precipitation anomalies. Im going to use that. It just makes us sound smart, joe. Right. Weekend might be nice if there arent any precipitation anomalies. You wanted to ask him. I wanted to say the deconsolidation of venezuela they referred to. The latest company to throw in the towel on that country. Is this the last quarter well see any effect from having to deal with the venezuelan operations . No. Because a lot of the companies did it on a rolling basis. One after the other going back to late last year. So we still believe think have another quarter or so left of that impact from a year ago. But most investors are looking through that now that its completely deconsolidated industrywide. So youre such a good analyst, there wasnt a single surprise from what you thought . Look. The beverage volumes we thought would be weak. But theyre weaker than we thought. Fritolay accelerated but it was a touch light. So there were areas they came in a little bit below or above. The International Business did a little bit better than we expected. But the reality is, you know, pepsi has a portfolio for a reason and they were able to play that portfolio this quarter and deliver in line with what the street was expecting. Currency is a little less bad. Core Earnings Growth a little better. Its below consensus. But only through the Second Quarter and theyre being conservati conservative. Nick mody, thank you. We appreciate it. Programming note. Pepsico cfo will be on squawk on the street at 9 00 a. M. Eastern time. Coming up donald trump meeting with republican lawmakers on capitol hill today. Well tell you whos attending and what to expect from that meeting. This shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. A big day in washington as republican president ial candidate donald trump meets with gop leadership to rally the troops ahead of the convention. Plus fbi director james comey goes before the Oversight Committee to answer questions about the Hillary Clinton email investigation. A live report straight ahead. Jobs front and center for the markets this morning. This hour the challenger jobs report. And then later, adp. The numbers and instant analysis coming up. Plus another big star in the nba is on the move. The big money deal sending d. Wade from miami to the windy city. As the second hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen and Michelle Carusocabrera and scott wapner both here with me today. Becky and andrew are both off. The futures at this hour have moderated their gains and are now have reversed early gains and are now in the red. A point and a half on the s p, down about five on the dow, and down threequarters a point on the nasdaq. Moderating some of the gains a little bit in european markets which had a tough session yesterday. They were all up more than 1 earlier. And now france still is, but germany, ftse are now just under 1 . They got a big soccer game today, did you know that . France and germany . You aware of that . I know that theres something going on over there with soccer. I saw something yesterday. Uefa cup. There are a couple upsets that have occurred. Its a big deal. 3 00 p. M. Today. You know who i was watching . Andy murray. Did you see that match . I didnt. Did you watch the federer comeback . It was insane. Joe came back and then lost. It was a great match. Andy murray, i think he might beat federer. Im not sure. I didnt look at the brackets. Can they meet in the final . Final, i think. I hope. Thatd be a good final. Heck of a final with djokovic gone. Djokovic already gone. Nadals not there either. You want murray and fed in the final, right . Its federers last stand. Maybe. Heres whats making headlines at this hour. This is making headlines. Whap are you talking about . Pepsi Beat Estimates on both the top and bottom lines. What the Company Called global environment. Alltime high. Pepsi cfo hugh johnson will join squawk on the street 9 00 a. M. Eastern time. And scott, kudos. You got the big four. But then do you know how many sub you know theres chili cheese free toes, theres nacho cheese doritos. There are subgroups of all the major if youre just joining us, the big four are cheetos, tostitos, doritos then were not even talked about rold gold pretzels or cracker jacks. We like things like this. Is there more than one kind of cracker jack . I dont think so. I can tell you the prize is crappy. Its usually a piece of paper with words on it. Wow. Theyve cut back on the prizes. Were a little over an hour away from the adp june report on private sector. Following 173,000 new jobs in may. 8 30 a. M. Eastern time, more jobs data as well with the Labor Department releasing the weekly report. Ahead of tomorrows big june government jobs report. All right. Tesla ramping up its war of words with fortune calling a report about the cars, quote, fundamentally incorrect. The car maker said it did no wrong by waiting to disclose the fatal accident with the software to regulators. This after a fortune article they sat on the news for eight weeks highlighting the fact that elon musk sold 2 billion of shares in the interim. Tesla denied that it knowingly withheld information from shareholders regarding the crash. Well have more on this with Eric Dezenhall. We havent got to talk about this. How long did takata someone tweeted so i dont know the veracity of it. How long did tesla wait . What . What did we say . Eight weeks . But there are two issues. Theyre saying takata waited nine years. There were two issues. When they told national highway transportation Highway Safety and they did that in the time frame they were required to do so. The bigger issue seems to be whether it was deemed material or not to disclose it to shareholders, to investors. Right. Musk has said that it was not material to teslas value. And he said the proof of that was in the way that shares reacted when the news came out. Tesla shares went up. Now i thought they went down. They went down when the news of the crash surfaced. We can check. We can get phil on the phone. But i think it was down. I think there was one moment where the shares i think actually went up. But theres another issue which hes referring to which the most recent 10q that tesla had filed had language in it about Product Liability and claims related to whether there are crashes or deaths to new technology such as autopilot. Right. So that language was in the most recent 10q. And that covers it . Which tesla says in this Statement Last night was sort of boilerplate language. But it just further raises the issue of if that kind of language is in a 10q filed with regulators and that sort of issue has already been laid out, why, then, was it not material now if there was an actual incident where autopilot may have been involved. Think about it this way. If theres boilerplate language in there that one of the risks could be liabilities related to autopilot when you have an autopilot incident, doesnt that even raise the bar higher that you should tell people . Because its no longer a warning about what could happen, something did happen. Thats the very question at the heart of the issue. Well have more on that later. But that is the heart of the matter. Yeah. Another developing story at this hour, surprise move by microsofts number two. Going to hedge fund. Kate kelly has that story. Hey, michelle. Good morning. So b. Kevin turner joining the Financial Firm zit dell. Hell also be a vice chairman of the firm overall. Turner spent about ten years with microsoft. He started a cashier at walmart eventually running sams club as a ceo for them. This has been a longtime business for them but theyre really pushing hard to expand it in recent years. Theyre now the 35 player in the Retail Investor Order Execution business. Thats their slice of that market share. Within the last year or so, they added a number of products on e the fixed income side. Everything from treasuries to custom swappings. They see that as an area of major expansion for them. And its interesting to hire this guy kevin turner because hes obviously a technology maven. Hes run a team of tens of thousands of people. He knows how to sell products globally. These are clearly priorities for citadel right now. He started as a cashier . Yes. I believe he was an undergraduate in college working the cashier job at walmart. Got hired. Became an executive at 29. He couldnt have got it if it was 15 an hour because there wouldnt have been cashier jobs. Im saying almost any other country in the world, you couldnt start as a cashier at walmart and go to be the number two at microsoft. Preaching to the choir on this one. Thanks, kate. Stocks finishing yesterday higher after the fed released minutes from its june meeting, watching adp data today. And of course tomorrows big job number. More on the markets, were joined now by mike ryan of Wealth Management in the americas for ubs. And peter boockvar. Hes also a cnbc contributor. Mike, how you i dont think weve talked to you since brexit. Really the minutes yesterday were dovish so the market went up. Seriously . That still works . Whats happening . Look, i think the markets kind of sorting through what the brexits going to eventually mean for global growth. I think the u. S. Is probably the area thats least affected if you look at whats happened in terms of the economic fallout. What were going to focus on is what this employment report looks like. The last we had, the best way to describe it was pretty crappy. The question is whether its simply part of the layoffs we saw on verizon. Or whether its the beginning of a roll in the labor markets. Thats critical. The one thing thats been a solid point of this economic expansion has been job growth in the u. S. So the jobs report might not matter from the perspective of what causes the fed to do. It might just matter from the snapshot it gives us of the u. S. Economy. I think it matters in both, joe. Matters for the fed. I wish you would have said no. Heres the thing. What weve been focusing on is a couple things. They want to see continued gains in labor markets. And they want to see this move towards the price target. If one of those three falls out, that has implication if we have another weak report this could take the december rate hike off the table. Peter, if we lets say just for arguments sake some day we have a big break in the stock market in the next couple weeks, is that going to be because of brexit or because of it finally comes home to roost on this maybe misguided or what the fed has orchestrated for seven or eight years . Which is it . Its a combination. The brexit is exposing fragility in the economy. Weve had five quarters of declining in the u. S. And now people realize the fed has no tools to deal with anything that may come our way. And at the same time that the markets obviously near record highs and at expensive valuation. From the market perspective, theres no margin of safety to deal with these externalities that could happen. I think a big part of peoples gauge of the global world will be when we see earnings. For all the criticism that the fed has gotten, cant you make the argument and you guys are going to kill me for saying this, but cant you make the argument that the fed has been the only central bank where the policy has actually worked . Worked in terms of what . No, no. Everybody else has negative rates. We dont. Everybody else is in unemployment situation is worse than ours. Hold on. Okay. But everybody elses economy is worse off than ours. Everybody elses banks are worse off than ours. So by what metric has the fed failed so badly . Thats what i want to know. Ill go back to what you said. I think the fed has been more effective for one reason. They acted quicker. They were me most Aggressive Central Bank dealing with the overhang of the financial crisis. And largely focus on the European Central bank, they aktsed with a deeper lag. They had to take actions later in the process and had to take more extreme action because they werent as adaptive as the fed was early in the process. Peter do you by what metric has the fed failed so miserably . In the whole postwar period, the economy has grown faster than europe. You would expect us to rebound quicker. We dont have the structural labor issues that europe has. Not yet at least. Were averaging this has been the worst recovery in the history. And thats 100 the feds fault . 23409 the feds fault. But i think with boockvar you can say theyre counterproductive. What does lower policy Interest Rate do . You take on debt. We have extraordinary levels of debt. We pulled all this Economic Activity and have high asset prices. So what has it gotten us . Theres no more future activity auto sales are now declining. Very high asset prices. The fed has no bullets to deal with anything that koms our way. And weve crushed savers. Were killing the Profit Margins of banks and Insurance Companies and Pension Funds. Where are Pension Funds going to get their so had the fed raised rates at what could have potentially been the wrong time while everybody else was going the other direction so and that would be a better place to be . We encouraged the activity overseas. Ben bernanke encouraged england and bank of japan to put down the pedal to the metal on that. Larry summers and greenspan were on the cover in 2005. Do we finally know that they thought they were flying for the first 39 floors. Im just asking the question. We may find out that the fed has got us in we may in just the last ten years. We have to look at the last 15 years. This is the third bubble in 15 years in my opinion created by easy money. Thanks. John harwoods coming up after the break. Its a drone you control with your brain, which controls your thumbs, which control this joystick. No, im actually over at the ge booth. Were creating the operating system for industry. Its called predix. Its gonna change the way the world works. Ok, im telling my brain to tell the drone to get you a copy of my resume. Umm, maybe keep your hands on the controller. Look out ohhhhhhhhhh. You know what, im just gonna email it to you. Yeah thats probably safer. Ok, cool. Donald trump about to meet with house and senate gop members today. James comey is headed to capitol hill to explain why he decided not to recommend criminal charges against Hillary Clinton. John harwood joins us now with more. Good morning, john. Morning, joe. The juxtaposition of those two events explains the opportunity that donald trump has but also shows what makes republicans in light of what he did last night when he was campaigning, makes them want to pull their hair out. These members hes meeting with today. He could have focused in his remarks in cincinnati on james comey what he said about Hillary Clintons email handling, the carelessness of that. Even though he just declined to file charges. Instead, donald trump revisited two controversies that have been following him over the last couple of days. The first is his seeming praise for saddam hussein. I said bad guy, really bad guy, but he was good at one thing. He killed terrorists. Next day, donald trump loves saddam hussein. I dont love saddam hussein. I hate saddam hussein, but he was damn good at killing terrorists. The second was the tweet that he had sent out that featured an image that resembled the star of david that had first appeared on a white supremacist website. Donald trump as he campaigned with Newt Gingrich one of his potential running mates said he told his campaign they shouldnt have taken the image down as they did under criticism from everybody from paul ryan to the antidefamation league. He said it was simply the media that created this controversy. Cnn started this going, its the star of david. And because its the star of david, donald trump has racist tendencies. These people are sick, folks. Im telling you. Theyre sick. He even followed that up by sending out a tweet showing a star with the same shape as the star of david on a disney commercial Consumer Product from the hit musical frozen and said why isnt the media talking about this . This is why republicans are concerned about donald trump and his lack of discipline. Its why some republican members of the house and senate will not show up for these meetings today. But donald trump is going to try to rally the troops anyways. He gives his side of the story in his view. I dont know if you saw the journal today. The journal is talking about the chilcot report chastising tony blair and others. They actually talk about at the bottom, the report kind of said that iraq was better off at least in terms of tamping down terrorism and insurgency and the journal makes a point that theyre actually agreeing to some extent with what the point that trump was trying to make about saddam hussein. Dp you read Jared Kushners response . I did. I did. But it seemed as if trump was going against the spirit of what his responsibsoninlaw had sai. I dont know hes ever spoken about that before. His point was that if youre going to knee jerk the if youre going to call it a careless tweet fullon antisemitism, then what do you call david duke . What word do you come up with that describes a nazi white supremacist individual if you used the words to describe i think that was his point. And hes in a position. Theres no question hes in a position to talk about this. Given what happened to his grandparents and his parents. But if donald trump were a more disciplined candidate, he would have let Jared Kushners letter be the last word from his side for awhile and focus on what comey said about he seems unable to do that. And, you know, i read you know, i follow Laura Ingraham on twitter too. She gave three things a candidate should do. One, dont revisit past victories you already had. Number two, focus on what you want to do for the American Public and their future. And there were three things. She was making the point that a lot of the speech last night was revisiting all these sort of personal vendetta type things instead of staying on point, staying on message. Especially when he had Hillary Clinton who he could have gone after on the server. That happened one other time after the Inspector General report. Right in midweek. And the Mainstream Media was in vortex mode on her and then he did the judge curiel thing or something. He seemed to be on Hillary Clintons point where she said if somebody gets under his skin, he cant stand it. And thats part of her indictment of him as commander in chief. Comey had a strong indictment of her competence and appropriateness of handling material you have to handle if youre a commander in chief. And he went about to by going back to this stuff to make her point. I think trump gets under the president s skin too. Yeah, he does. I mean, not everybodys perfect in terms of letting, you know, sort of personal issues trumps not going to change, i dont think. Hes always going to be undisciplined. Thats half of what i think people like about him. Yeah. All right, harwood. Well see you. Thank you. You bet. Coming up, why one money manager thinks jcpenney is a buy right now. That company and other names hes recommending in our whats working segment. Plus the results of the latest challenger jobs survey will be out. Squawk box will be right back. The heirloom tomato. Intenselyflavored. Colorfullydiverse. Beautifullymisshapen. Cultivated for generations, its the unexpected hero of any dish. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Amazing sleep stays with you all day and all night. Sleep number beds with Sleepiq Technology give you the knowledge to adjust for the best sleep ever. Its the final days of the lowest prices of the season sale, with the our best buy rated c2 Queen Mattress now only 699. 99. Know better sleep. Only at a sleep number store. A whole day . What took them so long to play this music. A whole day yesterday an hour and a half . I cant remember what it was, but there was a reason for it. With all this court stuff going on anyway, its natural, right . You should have not been just the decider but the presider. There you go. Presider in chief. Thats his name, right . Yeah. I always say rusty the bailiff after you say that. I think judge judy made a lot more money than you, than jublg wapner. Can you imagine if the original judge wapner was on the air now . Hed be making a killing. But judge judy, did you see what she was making a year . Like 70 million. A year. Isnt America Great . It is. At least it wasnt a ceo. Among the stories front and center today, were about 45 minutes away from the latest adp report. Its out at 8 15 eastern time and expected to show 151,000 new private sector jobs for june. One of the few countries that still has a aaa Credit Rating may be on the verge of losing it. Saying that government may be in a weaker position to tackle budget deficits. Lets look again at shares of pepsico. They are on the rise after the snack and beverage pepsi also raised its full year from ft. Joe . And it appears that dwyane wade is going to sign with the chicago bulls. Yahoo sports and Comcast Sportsnet chicago both report that wade has informed the bulls he plans to sign with them. However, they need to clear some room with their salary cap to sign him. And numerous reports say shopping players including Jose Calderon and mike dunleavy. Wade has won three titles with the heat. Wade has told friends if he ever left miami, it would be to play for his Hometown Team the bulls. Thats an interesting move. Along with durant, right . Yeah. I kind of wished durant would have gone to his Hometown Team which is my Hometown Team. The wizards. You always talk about are you from there . Yeah. Okay. Well, from maryland. From maryland, okay. So many sports stories this morning, gentlemen. Im going to consider it a microaggression if you keep going. We have the first of several labor reports. This one on layoffs. According to the latest report by challenger, employers cut over 38,000 jobs in june. Thats a 28 increase from may. Here to break down the results is john challenger himself. Good to see you, john. Nice to be here. Should we be concerned about this rise in the number percentagewise . I dont think so. May was a fivemonth low, very low total. And Second Quarter has been down 132 k for the quarter. Down from what we saw in the First Quarter. Just like the job creation numbers have been low in this Second Quarter, also the layoffs are low. So that is kind of a signal of were nearing full employment. And companies are just holding onto their people. But theres just not that many people to hire either. Is there a particular sector im thinking is the oil sector still laying off . The layoffs did occur, where are they . No question. Energy, low Energy Prices which have a positive impact in many places on the economy are affecting that sector. Manufacturing as well. And we are seeing layoffs there. Oil prices are driving certainly the predominant factor of driving layoffs in energy and mining and industrial goods. I would think its not as many as weve seen in the past. Is there an improvement there . Because oil is way off the bottom. Its not where it was, but its not in the 20s anymore. In fact, layoffs, there are down 50k layoffs in the First Quarter due to low oil prices. And thats down to 26k in the Second Quarter. So theres some weakening of effects. There is still some slack in the labor market despite the nearing of full employment i was mentioning that under employment numbers still gives room for companies to upgrade people that theyre underutilizing. Retail also bearing the brunt of the numbers. Yes, exactly. Retail q1, 31k. Q2, they relented. John, good to see you this morning. Thanks for the numbers. John challenger. Thanks for having me. Shares of chemours recovering. A u. S. Judge ordering dupont to pay 5 million to a man who claims he developed testicular cancer from that plant. It assumed control of the plant in question. The Company Acted in mall las by dumping the chemical into the ohio rir. They awarded to the man and will begin deliberations on the amount of punitive damages. Global growth concerns. The brexit fallout creating uncertainty in the markets but some small caps are still showing signs of promise. Here to talk about whats working in the market is craig hodges. Ceo of hodges capital management. Thanks for being here. Thanks. Theres a lot of concern over brexit and one of the advantages of small caps is very little, if any, international exposure. No currency risk in most cases. You saw this morning where donnen bought light wave. Larger company in a very slow growth environment are looking for acquisitions. So you think this is an event driven space as well. Could be. Weve had such a long period of slow growth. These companies are buying back stock. Thats their form of investing. Theyre going to have to buy some of the smart companies. And then of course the small caps are the most inefficient of the market. I was going to say, you must then have a fairly positive view on the overall stock market, right . Small caps would lead you on the way up in many instances but also on the way down. So youre positive on the u. S. Market. I am positive. I dont see the, i guess, issues out there that see a big market selloff. We can always have a 5 or 10 selloff. But with such low investor participation and such, you know, dismal, you know, sentiment out there and those sort of things, i dont see the case for a bad and stocks are cheap. I mean, a lot of the stocks in our accounts at the hodges funds, were getting stuff with 15 , 20 growth. And thats you know, thats those are good risk reward ratios. Jcpenney. Theyre in a tough industry. But theyre doing the right things. And theyre in the middle of this turnaround. We dont even need a big demand recovery for penneys to do well. Going to go 80 next year with potentially 2 in earnings. Stock at 8. 50 bucks, that would be a big move here. You like all retail . No. Not all retail. Theyve got a special theyve got catalyst the others dont. They do. And theyre doing the right things. Theyre changing their stores up. You see the things with appliances and sephora and a lot of things. Theyre the one out there showing positive samestore sales growth. Theyre going to have about a billion dollars in ebida. Theyre selling theyve got about 400 million property. Their headquarters in dallas theyre going to do a sale and lease back on it. So theyre doing all the right things. And you know, its its these kind of things it was such a train wreck that its going to take a long time. To me its very obvious theyre in the midst of the turnaround. Capstone, ks . Great management team. Stock got hit really hard at the beginning of the year. Its a great candidate. The big three in that business, they control about 70 of the market. So theyre likely an acquisition candidate. Some of the pricing has come down. Its been a little bit of a surprise. But, you know, longterm thats a good situation. What makes them so unique . Well, they actually have virgin paper mills which are, you know, because theyre very hard to get with all the regulations and stuff. Those are very much in demand. And youre seeing like i mention excuse my ignorance. I dont know what a virgin paper mill is. Theyre taking the product and cutting the trees and doing all the things no one likes these things because of what it does to the environment and such. And so permitting them and doing the things that so theyre grandfathered in on some of this is what youre suggesting. They are. And you cant build them, so you need to acquire the ones that have it. Paper mills and paper before. So virgin is the original trees. Hence the im just not as smart as you, joe. Its a specialty farm. They get lumped in with valeant so thats hurt the stock. Thats not predictable. Very ineffective. Theyre lumped in with valeant doing arthritis. Doing that type of stuff. Very inexpensive. I think theyll be able to do well longterm. Thanks for being here. My pleasure. It was fun. Always. Craig hodges. Tesla ramping up its war of words with fortune calling a report calling its cars fundamentally incorrect. Eric dezenhall joins us after the break. Check the futures now. Earlier suggested a positive open. Futures right now are negative. Squawk will be right back. Every year, the amount of data your enterprise uses goes up. Smart devices are up. Cloud is up. Analyticis up. Seems like everything is up except your budget. Introducing comcast Business Enterprise solutions. With a Different Network that delive bandwidtyou need without the high cost. Because you cant build the business of tomorrow on the network of yesterday. Welcome back. The recent failed tesla autopilot crash raises questions about the procedures particularly since elon musk and the company sold about 2 billion of stock before the crash was made public. Some of it was his, wasnt it . It wasnt purely he wasnt selling shareholders. Crisis management and pr veteran Eric Dezenhall joins us. He is the ceo of dezenhall resources and the author of glass jaw. Thanks for being here. Thanks for having me. Let me get your overall thought. This has not only become a war of words between musk and fortune magazine. But it is really i think all centering around a really simple question. And thats whether this incident was material or not. And whether it should have been disclosed to investors. Whats your take . You know, you have legal and procedural issues here, but you also have the broader issue of enterprise risk. The risk of the business. To be perfectly politically incorrect about it, one of the things i find is visionaries like elon musk or steve jobs are held to different standards. People expect them to think big thoughts, to be visionaries. They dont really expect them to perform the normal disclosure obligations and the normal courtesies. And the good news is that they tend to get away with it. The bad news is you have to keep delivering cool stuff. Because if you dont keep delivering cool stuff, everything is off the table. The other thing is, is that while general audiences tend to be forgiving, regulators and legislators dont want to be charismaed by these guys. They dont find this type of thing cute. So the good news is with broader audiences, i think theyre held to a different standard and dont have to worry as much. But the bad news is if you dont keep cranking out your cool stuff, people arent going to forgive you. What do you do as a crisis manager . And thats your expertise, your wheel house. When your ceo has no filter . You know, the hardest lesson to learn is that every client is different. And the idea that gurus in my field can control a billionaire, its absolute folly. There is absolutely nothing you can do. Because when youre dealing with a jobs or a musk or somebody like this, their Life Experiences taught them that the little people, the rest of us are completely wrong and they are completely right. So the idea that you could train them and hold them in is really not something i have had a tremendous amount of success with. But what they do get is broader advice such as you better keep cranking out cool stuff or you wont be forgiven. Look, steve jobs violated every basic rule of pr and crisis management. Youre not supposed to insult the customer. They did. Youre not supposed to be secretive. They were. You had the whole options scare issue and the consequences really werent that great. At what point though . How many passes does one get . You have a guy let me finish for a second. You have a guy who some say, okay, he says theyre going to deliver x number of cars. They end up only delivering y. He says this wasnt material to teslas value. You have a train load of folks in Corporate Governance who come on television and say, no, actually it was. Solar city says its a no brainer. Solar city says this is legitimate. Others say its a bailout of one of your own companies. How many passes do you get . It depends. If you can keep on cranking out these products that people love, you get a whole lot of passes. If you fail, its just like sports crises. When you have an athlete or a team in crisis, if they win, the crisis reseeds. If you were advising him right now, would you encourage him to be in the twitter war with fortune or not . Absolutely. When somebody like elon musk swings back against journalists rece , they do much better than what you see of a ceo of a normal now. Of concerning the press. When elon musk swung back at the times for their reporting on engine fires, it was incredibly effective. That works for him. It wouldnt work for the ceo of ge. Im going to talk about your book for a second only in the sense that we have a threehour show here and most of it is nonscripted and you point out glass jaw. It could be 11 words nowadays that once it gets picked up in social media or wherever it was thats right. Now, some people would say that the pc police went too far and that trump was the answer to that. Like six months ago when it came out, it was refreshing he didnt always immediately worry about that he was offending someone. Things didnt stick with him that you thought would stick. But the media is going to keep hammering him. Theyre still waiting. Will they finally get him, do you think . Or has he changed the game and pushed back the Political Correctness that just got too much out of control recently . You know, one of the things you hear about the powerful is they think they can get away with things. The fact is they dont just think they can get away with things, they do get away with things. Until they dont. And one other danger i have seen with clients like this, they push and push and push and may be able to get out of something 27 times. But the 28th could blow them up if they take it too far. And youre talking about trump, not Hillary Clinton . I am talking about anybody in positions of power. Okay. We have safe zones on College Campuses. You have to worry about microaggression. Someone saw a trump button at a College Campus and all the kids are in therapy. And, you know, the president of the university is talking to the parents saying i dont know how this happened. I mean, the coddling thats done you wrote glass jaw. Youre accepting this age that were in right now . That theres nothing that can be done about it . That we cant move the pendulum back at all . Is it a god given right to never be microoffended at any point in your entire life or else someones got to have a career ruined . The rules are different for different people. It doesnt mean that what goes around doesnt eventually come around. But it takes longer for a lot of people. One of the things you see with the clintons is people saying theyre very, very secretive and thats bad. Well secrecy has been very, very effective for them. This whole idea that everybody is rewarded for transparency is a complete pr canard. But what you have to watch is if your behavior collides with bad results, whether thats in politics or in business, you have a different thing. Had the lewinsky scandal happened during a recession, you would have seen a completely different reaction. But it didnt. It happened when the dow was at the 10,000 for the first time in history so people looked the other way. If elon musk can continue cranking out really cool cars, i think this goes away. On the issue of selfdriving cars, i think you have a different story. Because i think a lot of people are looking at that and saying, huhuh. They look at Something Like that and they say i am not ready for a selfdriving car. If you take the risk of using it, you may have hell to pay. Which is a different variable than the sheer desire to drive an electronic car. Youre very smooth, eric. Here we were on trump and hillary and you bring it back to tus la. I wanted to end on tesla anyway and maybe make this the last question before i let you run. What happens if the regulators come back and say no you actually were wrong, elon . You just hit it. Because one of the areas where being charismaed doesnt work is if you think that a senator or a legislator or a regulator is being charmed by somebody with vision and charisma, they resent it. They dont say im impressed. They say im charismatic. Youre not charismatic. How dare you try to seduce me with that . So that is where you have a problem. A legislator or regulator is in a good position to screw up a very powerful individual or company and they can do it and they will do it. All right. The last word, Eric Dezenhall. Thank you for your time today. Thank you. Coming up jim jordan joins us. Well find out what hell be asking james comey later this morning in a hearing on the Hillary Clinton email server investigation. And then jobs are front and center. The latest adp data will be out. 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They give you superior hold, even at the end of the day. So you can keep enjoying your evenings. Fixodent. Strong more like natural teeth. Fixodent and forget it. Yes. Is this the orchestra . This is the animal orchestra. The producer suggested were playing a little game of thrones. This is their rendition of game of thrones. But the reason we thought it was appropriate because it was sea animals like in finding dory. I dont know if youve seen it. One of those whales with the big foreheads, a major part of finding dory. Sea animals are definitely back. Theyre envogue . Theyre envogue right now. So we did a little and this is related to game of thrones how . And it says bad news. Its not related to game of thrones at all except were playing the music. But it says bad news for game of thrones. Is it really bad news . Production is going to be delayed a little bit. But if youre going to film a winter season where winter has arrived, wouldnt you want to wait until you could film it really good with winter . And thats what happened. Winter is arriving on the show. That means production on season seven will have to wait for summer to end, for summer sunshine to be over so they can shoot it in grim, gray weather. The creators also said the episode count will be a little bit less than i find that a relief because theyre long seasons. No official return date. But i think its okay to wait to do it right. Sure. Yeah. Coming up, the adp employment report. Republican congressman jim jordan joins us. Squawk box will be right back. Washington front and center today. Donald trump and james comey heading to the hill. The gop nominee meeting with top congressional leaders why the fbi chief will face questions. Breaking news on jobs. The adp employment report just 15 minutes away. Well bring you the numbers and what they could tell us about tomorrows payroll release. And billions of dollars gone to the dogs. The secret money behind the pet care industry. Well tell you just how much money americans are spending to take care of their furry friends. Final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Florence and the machine. They told me that it is her voice. Awesome. Love it. All right. Welcome back to squawk box here on cnbc, first in business worldwide. Im scott wapner along with joe kernen and Michelle Carusocabrera. Were less than 90 minutes away from the opening bell on wall street. Take a look at the futures now. Theyre negative slightly. Dow would open lower by about 18 points. S p 500 and nasdaq in the red as well. Less than 89 minutes now. My mind hurt yesterday. I was exhausted. Took you about three minutes to come up with it. Lets take a look at european markets right now in the green across the board. Germany, france, the fse, spain all in positive territory. Take a look at the dollar as well. Theres the euro. 1. 10. The yen at 100. The pound 1. 30. Could rise to 99. Thats why its messed up. Always tough. The yen could keep rising to 99. Its priced the opposite of the euro and the pound. The exact opposite, you dare say. But thats how its done on trading desks so thats how we do it. It would rise to 99. You get it . I get it. Here are the stories investors will be talking about. Were going to get ta double dose of jobs data. First well get the june adp report out in less than 15 minutes. Forecasters expect 151,000 private sector jobs to have been added last month. Thats versus 173,000 in may. Then at 8 30 look for weekly jobless claims expected to hold steady. Pepsico out with quarterly results. The snack and beverage giant Beat Estimates on the top and bottom line for the Second Quarter. What theyre calling a volatile global environment. French Company Danone buying whitewave to expand business in the United States. Danone will pay a 24 premium to whi whitewaves price. You better do that deal sooner rather than later. Joe . Yes . You want me to toss it . Hand this over to me for this one . You love this story though. Fbi director james comey. Lets not kid ourselves. James comey will be appearing before you see my picture with Elizabeth Warren . I did. People can act under any circumstances. We are actors. I know that. Bad ones. Anyway, to answer questions about his recommendations in the Hillary Clinton email case. Lets call it what it was, an investigation. A criminal investigation, i dare say. That comes as paul ryan submits a formal request to deny Hillary Clinton any classified information during the president ial campaign. Hampton pearson has more on what comey is expected to face on capitol hill. Good morning, hampton. Good morning, joe. Yeah as you were talking about, james comey expected to face tough questions from House Republicans on the Oversight Committee over his recommendation not to press criminal charges against Hillary Clinton for her use of a private email server while secretary of state. Now, late yesterday attorney general Loretta Lynch officially closed that investigation accepting the recommendations of the fbi director that no charges be brought against any individuals. However, the fbi director will face sharp questions from House Republicans about his calling mrs. Clintons actions, quote, extremely careless but not rising to the level of gross negligence. In her handling of those emails and classified material. Now, House Oversight chairman says he will ask the director about what looks like a double standard for Hillary Clinton. It does appear based on the fact pattern laid out by the director that if you had done those things, youd probably be in handcuffs. Youd probably be going to jail and probably should based on the statutes. Sop we want to ask them about that. Also expected to call for the release of more documents now that that nearly yearlong investigation is closed. Joe . Okay, hampton. Thank you. And joining us now, congressman jim jordan. He sits on the Oversight Committee and will hear james comey testify today. And congressman, for those of us that arent lawyers, i dont know whether you are or not, but theres a couple of key questions that factor into all this. My viewpoint was that, you know, theres no way that director comey wanted to insert himself in an Election Year into, you know, completely disqualifying a confidence chosen duly chosen by all of the democrats in the primary. He probably thought it wasnt his place. Let the Voters Decide in november. Is that okay to look and side on the spirit of the law versus the letter of the law . Do you fault him for doing that if that was his intention . Well, no ones supposed to be above the law. And chairman chaffetz right now is right. Recent polling shows that 80 of americans believe this town, washington, is rigged against them. And the reason they think that is because it is and we saw an example of that tuesday when it looks like theres one set of standards or one standard for we the people and another entirely different set for the politically connected. So its appropriate in our form of government when you have a decision of this magnitude for the person who made it to come in front of congress and we exercise our oversight function and ask him important questions. I dont think he would say that i dont think he can actually say i did it just because i didnt want to change the election. But hell probably say that he was hes the director of the fbi but he was a prosecutor. Right . So hell probably say that in my judgment i dont know if the fbi director normally should do that. They should just decide on whether a crime was committed. I dont know if thats their place on deciding whether the case can be won or not. Normally turn over to the prosecutors for that. They turn it over to the attorney general and she would decide. But she said im going to go on what the career prosecutors in the fbi, what they recommend. And that obviously is what happened yesterday. So in a normal think about normal criminal trials. There are times where you know full well someone did something, a murder even, and you dont have enough evidence and sometimes they decide not to bring the case. Is that but we know the persons guilty. Is that the case here . There was maybe not enough evidence to do it. But she definitelily in your view broke the law, the statute and is guilty of a felony . Who knows . But my guess is theres a lot of prosecutors that would look at the evidence. The evidence in mr. Comeys statement that said she may have potentially violated statutes, that it was extremely careless. A lot of prosecutors would say i am going to take that to a grand jury. He decided not to. What we do know is this. She set up secretary clinton set up this unique email and server arrangement. She alone controlled it. She had all her workrelated, personal information, Clinton Foundation information. And we now know classified information on that server. They got caught with this arrangement. When it was discovered, her legal team said were going to take the 60,000 emails and were going to determine which ones we keep and which ones the government get. Which ones congress get and which ones we keep to ourselves. They made that determination. And then one last thing. Then the ones they kept according to mr. Comey, they deleted them and her lawyers we get it. So that provides some context to make this decision as well. And i think hell get asked about that those factors as well. To joes point, i worked in florida for six years which means by default i covered crime. There were instances, public defenders complained about it all the time that they were facing off against the people who made the choice about whether or not they were going to prosecute. And so when you look at prosecutors records, they have tremendous records because they only choose to prosecute the cases that they know they can win. I mean, do you think theres any chance that this is part of the issue here . To have brought her to have charged her in the middle of the campaign and been unsure about whether or not youre actually going to get a conviction . Maybe. I think you raise a lot of questions. Weve got a lot of questions. And i know our constituents, a lot of the folks across this country are wanting to know why this was made. And thats why were having the hearing. But the people your constituents and everybody an the country will have a chance to have their voices heard in november. What is today going to accomplish other than give you all a chance to look at the director of the fbi face to face, go on national television, and tell him he was wrong . When 80 of the population thinks that their capital is rigged against them and they see a decision of this magnitude coupled with what theyve already witnessed, the fact the commissioner of the Internal Revenue service, nothings happened to him. Along with the fact that lois lerner, nothings happened to her. They expect the legislative branch to hold the executive Branch Accountable and to at least get some answers. So thats why were doing it. Obviously the american people, we the people have the ultimate say on election day. And thatll factor into how people vote. Thats their call. Congress man but our job is to get answers to those questions. But congressman, 27 months. What are you going to do about that . The cgi, like this email is chump change. Were not going to see what happened at the Clinton Global Initiative . Selling state department influence. I mean, 27 months . Do you have any recourse there to say thats unacceptable . Well, theres an investigation going on there too. The governor of virginias being investigated in connection with the Clinton Foundation and some of the clinton dealings. So thats an Ongoing Investigation as well. Maybe when theres some kind of decision, well ask questions there. But right now were going to ask the director of the fbi the questions he talked about in his statement on tuesday. All right. Well, im excited about the testimony today and watching. We appreciate it. See ya. Thanks. Dont move. We have the adp employment report after this break. Amazing sleep stays with you all day and all night. Sleep number beds with Sleepiq Technology give you the knowledge to adjust for the best sleep ever. Its the final days of the lowest prices of the season sale, with the our best buy rated c2 Queen Mattress now only 699. 99. Know better sleep. Only at a sleep number store. When you cook with incredible tokyostingredients. Les. You make incredible meals. Fresh ingredients, stepbystep recipies, delivered to your door for less than nine dollars a meal. Get your first two meals free at blueapron. Com cook. Breaking news from adp. Private sector payrolls were up 172,000 in june. Adps may report revised down by 5,000 to show an addition of 168,000 jobs. Joining us now for more on this report is mark zandi chief economist at moodys. Better than expected, correct . Yeah. Last month the weak number was an outlier, it was a fluke. Tomorrows numbers should be close to 200k. Feels like were back on track. What does that mean for the Federal Reserve especially in light of what we heard in the minutes yesterday . Well, i think they want more proof. Im sure theyll be very happy with the close to 200k. They want to make sure that what happens overseas with brexit isnt doing too much damage to the economy. So my sense is the next possible window for a rate hike is late this year probably december. And how likely do you really think that is considering how low Interest Rates are all over the world and negative Interest Rates that were seeing in so many sovereign bond yields in particular . Yeah, i think its likely. You know, the u. S. Economy is pretty close to full employment if it isnt already there. Wage growth is picking up. Its accelerated quite a bit over the last year, year and a half. If you look at other adp data, it shows a broad acceleration across demographics. Inflation is a little bit below target but its firming. I think it should firm further going forward. No reason that should slow. Just so long as the Financial Markets, there isnt purr moil in the Financial Markets and the rest of the Global Economy is doing okay. I think theyre on track to start in fact, as we move into next year, id be very surprised we dont see a series of rate hikes. I think the economy would call for that. Mark, why are Interest Rates so low in europe . Why have they gone negative . When i see that kind of performance in yields, i get very, very nervous. It seems to suggest to me armageddon is coming. Well, you know, europes economy obviously is still very soft. You have double digit unemployment. So theyre a long way from unemployment. So you have the European Central bank with the foot flat on the accelerator buying all the bonds it can. It started buying Corporate Bonds for the first time. And then youve got the japanese economy thats soft. So the bank of japan is buying everything they can get their hands on. Then you throw in the mix of the uncertainty created by brexit. So theres this flight to quality of anything that is like treasury debt or bunds. So there are lots of reasons, what youre saying. Yeah. But the notion they could be signaling something very bad is misplaced . In fact, you might even take the opposite perspective. For the United States. Right . Longterm rates are determined in a global market. Whats happening overseas matters for longterm rates. But you could argue that i dont know what the 10year yield is today, that thats not consistent with the health of the u. S. Economy. In fact, it may juice things up. Certainly going to help housing activity, purchases. In fact, they may argue this is going to support Even Stronger growth in the United States. And require the Federal Reserve to actually work harder to get the economy where they want it to go. Its not a rate consistent with whats happening in the United States. When deutsch bank says theres a 60 chance of a recession now based on the curve, you agree or disagree . Here in the United States . No. Why . Theres no reason to believe thats the case. The u. S. Economy is creating a lot of jobs. Consistently unemployment is very low. Wage growth is picking up. Consumer spending by any measure is it feels like its boomlike. Maybe certainly the yield curve is a good leading indicator. But were a long way from an inversion that would signal a recession. Recession over through the remainder of this year into next is very unlikely. All right, mark. Good to see you this morning. Mark zandi. Thank you. Coming up, busy day in washington. Donald trump will meet with top congressional leaders. What you can expect from that next. An creates software, used by this bank, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Welcome back to squawk box. The futures have come off their highs of the morning and now theyre in negative territory. Nasdaq slightly positive. Its been pretty indecisive. Lets call it flat. There you go. Trumps president ial campaign is making a financial comeback. Likely republican nominee raised more than 50 million in june. Thats more than 16 times what he raised in may. According to the trump campaign, slightly more than half the money came from the digital small dollar operation with the help of the Republican National committee. In comparison back in june of 2012, mitt romney raised more than 100 million. Hillary clinton raised 40. 5 million in june and an additional 28 million for the Democratic Party bringing her total in june to 68. 5 million. Donald trump is in washington today meeting with the top gop leaders. John harwood joins us now with what we can expect. Whos republicans, john . Because in this election, im not sure whos more friendly to him. The republicans or democratic leaders. Well, youre right, joe. That was a good Financial Report for donald trump. It was a step forward that he released yesterday. But hes still got work to do to consolidate the Republican Party and get lawmakers behind him for his agenda if hes elected. Because he diverges from republican orthodoxy on things such as trade. So donald trump is going to come here to the capitol hill. This is the first general invitation meeting hes had where any Republican House member can show up, meet him, talk to him. Same is going to be true on the senate side in a couple of hours. Of course, donald trump given the pass as he arised alwarived attracts protesters. You heard they just stopped chanting. Were expecting donald trump to go behind closed doors and make his case to republicans. John, john, john . Those protesters are republicans or democrats . We know . Oh, im pretty sure theyre democrats. Im not so convinced. On that note, do you see these reports that theres this possibility that there are still these delegates who are trying on the rules committee a percentage of them trying to make changes to make it possible to unbind the delegates and possibly undo donald trump at the convention . People have been counting the votes. Do you give any credence to the possibility that could happen . I dont. Look, there are people who want to do that. There are people who are talking about doing that. There are people who will try to do that. But these are the same people who thought they could beat donald trump during the primaries. They couldnt do it. I think that donald trump has a grip on this nomination that is not going to be able to be dislodged. Well see. Surprises can happen. Ive been surprised before, but i do not expect this is going to go anywhere even though there are misgivings about trump in his party. The one difference i and im there with you, but i guess the one difference i see is that in the primaries, everybody can vote. Delegates tend to be much more establishment. Right . So theres a greater chance hes at risk in this position. Youre right, michelle. And theres some delegates that are bound to trump by virtue of the statement that are not for him. So if they could get freed of that commitment, they could go to another candidate. So one of the slogans that is being used by opponents of trump is unbound the delegates, unbind the delegates. So you could have potentially a vote on the rules committee that would free them to go somewhere else. Hey, john john. You really need a plan to make this happen. Thats not going to happen. I just dont think its going to happen. Ann colter today said trumps going to make a mistake by taking a establishment republican. She says he should stick with what got him to where he is. Is Newt Gingrich establishment . Is Chris Christie . Is there too much establishment baggage with those two guys to ruin the trump brand in terms of being an outsider . I dont know. I mean, look. Christie and newt are both people who have demonstrated substantial appeal in the past. Christies very badly wounded right now. Gingrich has some credibility within the Republican Party having led the back to the majority in the house. But hes been out of it for awhile. Whos your pick . You got a pick . All right. We got to get out. We got data. My pick is gingrich. All right. Gingrich in the sixth round. All right. Thanks, john. Coming up, more breaking i asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. Welcome back to squawk box. Breaking news. Initial jobless claims drops 16,000 from a slightly upwardly revised 270k to 254,000. Now we can talk about how certain issues like holidays may skew some of that. But on the surface its a decent drop back into an area we havent seen really since the early 70s although weve tested it a few times. What does it mean . Well, you know, it doesnt really mean much when you have a 38 or 39k like last month and one or two numbers, of course, change the strategic outlook. Kind of like a day trader down here with regard to the fed. But im sure itll all be taken into its job context especially postadp. It wasnt spectacular at 172, but certainly better than we were expecting and fractions of that at the bureau of labor statistics almost a month ago. Rates moved up about a basis point on this data. Moved up a point or two on the 8 15 data as we hover near 140 which used to be the july 2012 alltime low. We played around with the last couple of settlements. And of course were continuing to try to handicap whats going on in the rest of the world whether its brexit, property, mutual funds, or whether its us and them. Us and them. Maybe thats brexit. Those who rule, those who arent ruled. To that end, be interesting to see what mr. Comey has to say. Back to you. No. No, no. I didnt know hear what he said. He said us and them. Okay. Pink floyd song. Pink floyd. Yes. Not s m. Us and them. Okay. Thank you. Its so loud where you are, rick. Very telling, rick. No, its not. Its not. Very telling. Whats a virgin paper mill . I mean its early. You guys get up to early. Yeah, okay. Thanks, rick. And often. Go ahead. For more on the data in tomorrows jobs report, lets bring in stu hoffman, chief economist. Stu, thanks for being here. Thanks for being here right now. Glad to be here. Okay. I wont touch that. Good move. Been here before. Heard that before. Adp up 172, jobless claims down. Pretty good. Yeah. Very good. Although weve seen that the last couple of months. Well see if this time its a better indicator of what official number is tomorrow. Im in the category of, you know, about 170, 175 for payroll jobs. Of course therell be the return of the verizon strikers. So just as may was a little understated, this will be overstated. So you think it was an outlier last month . Youre convinced may was an outlier . I dont think i do think job growth is slowing down. Youre not going to stay at 200,000 jobs a month as weve been. Our forecast for this year is wed get about 165,000 a month. So i think thats slowing but i think that was much too abrupt. So ill call it an outlier in the degree to which it slowed down. And i think this number will put us back more on that trend of 150 to 175 and help to average out. Plus were going to have to look for revisions. Lets see whether or not that number withstands revision. If thats revised up 50 or 60,000, itll be forget about it. But well have to see. My guess is well get at least 50 to 200 with this number for june and some revisions to the last months. But what is going on with rates . Michelle brought it up already this morning. Yep. Why the 10year is so low and whether its telling the story of some doom on the horizon for the u. S. Economy. I dont think it is. A global phenomenon. Thats helped bring rates down. Theres a flight to quality. You know, its been tracking whats happening in europe. Between the bund and our 10year has been around 125 basis points. So wheith them going negative, thats closer to 150 basis points. I think its a reflection of global fears. Not a reflection of sudden turn for the worse or the prospect of much weaker economic growth. Consumer spending was very good in the spring quarter. Business investment was certainly weak. Oils found a bottom, i believe. I think the u. S. Is in a much different position and those rates reflect concerns, reflect global events, not reflecting or signaling a slowdown or a Material Weakness in the u. S. Economy. Yield curves not inverted. Its much lower. But i think its really more Global Conditions than it is a sign the u. S. Economy to say tomorrows numbers are going to be another 40 or 30,000. And that would be a sign clearly the u. S. Economy has rolled over in a big way. I dont expect that to happen. Have a good day. Appreciate it very much. Stu hoffman, thanks. We told you earlier about a surprise move by microsofts number two. B. Kevin turner is going to citadel. Jon joins us with more. Yeah. Mic microsoft making changes as kevin turner exits. The organization is really trying to stay flat. Not appointing a Different Number two. Instead splitting up kevin turners responsibilities. Going to lead global sales. Hes based in paris and will continue to do that. Justin athoff, that fuels closely with the sales part of business. That deals closely with government that deals with folks like financial services, health care that are going to need changes to specific Microsoft Apps and processes. Has led for awhile. Also going to take on retail microsoft. On the line, theres few other changes. Got it. Jon fortt, thank you so much 37. Coming up, the latest buzz from sun valley. Welcome back to squawk box. The futures right now pretty flat throughout the morning and they are right now. They suggest almost nothing will happen. Waiting for tomorrow. The jobs report. Heavy hitters convening for day two of the Allen Company conference. Cnbcs Julia Boorstin joins us now with more. Good morning to you. Transitioning the Media Business to the Digital Future is no surprise a hot topic here. Not just with media giants like bob iger but also with apple ceo tim cook who is talking with here in this shot. Now, as well as the internet ceos starting to bet big on content, Mark Zuckerberg with Facebook Live and jeff bezos with amazon prime video. Predicts that sports including disneys espn will gradually shift outside the tv bundle as the media giants transform. They have to become consumer companies. If you want to sell product to people, you have to know how to market to and monetize consumers in a more direct way. That may be the biggest paradigm shift challenge the company wills have in the next ten years. With so many new Entertainment Options out there, the bar is higher than ever to get consumers to pay up for movies and theme parks with itch is one reason universal is buying dreamworks animation. Its two more movies a year in the animated and childrens area. They have a Great Television business. Characters for parks and attractions for our parks. We have you know, i think theres a ptremendous amount of synergy. I feel good about it. Media moguls who havent said a peep, james and lauk lin murdoch. Though the Company Issued a statement about Gretchen Carlsons suit. The company saying, quote, while we have full confidence in mr. Ailes and mr. Doocy, we have commenced an internal review of the matter. Well have to see if any of the other moguls here today who own tv network wills weigh in on the suit. Well certainly be asking them. Back over to you. Have you had any sightings of philippe damone . I have not. Hes a longtime attendee of the sun valley conference. Interestingly he was on the list, supposed to come. Then a rumor started circulating yesterday something came up and he wasnt able to make it. Viacom says he is still scheduled to attend but they wouldnt tell me when he is scheduled to actually arrive. So well see if hes around today. But he does not seem to be here as of last night. And you had the picture i think yesterday correct me if im wrong. Maybe i missaw this. Of ledstone and moonves . Youre absolutely right. Sherry redstone is here. She wouldnt say anything about all the questions that i had to ask. About whats going on with the lawsuit. She told me she used to come years and years ago but hadnt come for many years and now shes very happy to be back here and seemed to be very much enjoying the panels. But she seems to be spending time with les moonves among other people. Of course shes publicly praised moonves for his leadership of cnbc and shes in the lawsuit. If domane does arrive today, i dont want expect him to be hanging out with redstone. Im sure youll get a microphone or a camera near him at the least. Thanks so much. All right. Julia boorstin out in sun valley. Stocks to watch this morning, whitewave foods being bought by danone. The deal comes a little over three years after whitewave was spun off from dean foods what . Didnt know where whitewave was from. Dean foods is a big dairy company. So this was like almond milk and that other stuff. Like silky and others. Jpmorgan could be moving thousands of staff out of britain. Thats from jamie dimon quoted in an italian newspaper. That would occur if they lose their rights in the eu after the brexit vote. Pepsico Beat Estimates on the top and bottom lines for the Second Quarter. Pepsi cfo hugh johnson will join squawk on the street 9 00 a. M. Eastern time. Need tiny little fingers to milk an almond. Its really hard. When we return you know, get used to scott not paying attention. He didnt hear a word i said. But i was busy. You didnt think it was funny. Need tiny fingers i heard you. Americans americans are projected to spend 60 billion this year on their cats and dogs. I have three dogs. I have input on this. They have no idea how much they charge you. Were going to dig into the big business of pets. Thats next. Well tell you the prices of what bully sticks are. And here are the futures right now. I wish i had a dog. Se and th. I enjoy keeping people up at night. My Analysis Shows your stories are actually about human connection, even love. Great storytelling needs drama and empathy. My cognitive apis can help any business Better Connect with its audience. You should try writing a book. Find a remote hotel. Bring the family. I do not think that is a good idea. Universal secret lives of pets opens in theaters tomorrow. Looks phenomenal. But today it does. What do they do when youre away . You can imagine. Were looking at the multibilliondollar industry that goes into taking care of your furry friends. Were talking about the pets, right . I dont think of you as my furry friend. Jane walsh joins us. Look at you those are yours, arent they . Those are yours. Yes. I know what they do when im away. They sleep. They poop. But in any case, people will do just about anything for their pets, guys. Even buy them pot. Im gigi griffin and this is joy. Joy griffin. Gigi griffin is the last person youd expect to see at a medical marijuana dispensary. She didnt come for herself. She came for joy. Basically joy was diagnosed in january with cancer of the bladder. Radiation and chemo would cost thousands of dollars. But griffin had a friend whod used medical marijuana to recover from cancer surgery and recommended it. I just knew that i wanted to try whatever would help my dog. Reporter and thats how she discovered the hottest new field in cannibis. Here we go. Were going to squirt it in there. Reporter pot for pets. Yes. Thats a good boy. Reporter deborahs has been giving her daughter tyler a caneny base product to deal with arthritis. Started swimming again and running in the park again. The sky is the limit in this industry. What were doing is using medical marijuana for common ailments, pain, arthritis, anxiety, and these are common ailments that we see in the veterinary clinics every day. Look at her. Shes just she just looks healthy. She eats well. She has a lot of energy. And instead of spending thousands on chemo, shes spending about 100 a month on cannibis. There hasnt been Much Research on whether this works whi is why the spca is not endorsing it yet. You have to have your own medical marijuana card to go into a dispensary and buy marijuana for your dog which is sized, dosed proportioned appropriately. We have all the dogs so inbred sometimes. Cancer, its devastating when you really do hear it. The pain is the same, i think, we can probably safely assume. That makes sense to me that, you know, what works on humans probably we thought you were going to do something on the costs of stuff and you got two dogs. I have a couple shepherds and little dog. If you bought like bully sticks im overpaying for these things. I got a pack of five, it was 35. For bully sticks. Or lung sheep lung or pig ears. I get a whole bag of pig ears as i said, thats a sentence i never thought i would say. Do you have a bag of pig ears. I thought they were bear claws. What are these things anyway . They are pig ears. Well, you know, and if they cost 100 you would still buy them because theyre for your pets. Apparently we dont put as price on what we do for them. How can you . Of course theyre ignoring me right now. Princess leia. How are you doing. Said years ago this was going to be a huge people would spend and you dont. But the price is like another story another story were doing today is on pet insurance. People, companies, big companies, are now offering it as lures to get millennials as a benefit to get millennials to work there. Not only department dental whats your pet Insurance Plan . Step into a vet and see what youre not walking out with less than triple digits. Oh, yeah. I should have gone to vet school. I know it. But you know what, they are thats why i finally figured out why that movie, never knew what it meant all dogs go to heaven, all go to heaven because they could never by definition do anything thats not perfect basically. I mean they do some clean up some things. You love them so much, so charming and perfect. They dont have ulterior motives ever. The reason they go to heaven to be at the gate waiting for the master. Hes really crying. Its not funny. They do. Theres dogs that sit at a grave site im still getting over the pig ears. You are tearing up. I do. Bear claws. German shepherds, im telling you. Can we get music with this. Thank you, jane. We love your dogs. Youre welcome. I wish i had dogs. Thank you. Prin say cess leia you remember william hurt, broadcast news, sits there, didnt have two cameras but somehow they got a reaction shot of him with a tear in his eye doing a story. Thats why holly hunter realized he was satan basically. Did i call myself say tan . Not like anybody else in the business. Speaking of satan for the grace of god, check this out, dog spotted cruising the walkway just outside of the at t park in san francisco. This is cute. Look how cute this is. Come on, scott. Viral worthy. You have a dog. Why dont you have a dog. Youre is the suburbs. The pooch piz no stranger to giants games. According to mlb. Com the fourlegged skateboarder made a few appearances at the stadium this season. Look, just roll this over and over again. You know, they said the other day he didnt like cat videos on the internet. I love cat videos on the internet. I love this kind of stuff. You know what. The dog, you got a dog, it might not like the elevator. You can imagine that a dog gets in the doors close and opens. They get nervous. Coming up. Its somewhere else. What happened . This is like a time machine. I was do your kids take the elevator . Coming up youre not here tomorrow. Calling all breakfast lovers. Mcdonalds is expanding its menu. Which popular item is making it ways to the fast food giants big board and as we go to break, a quick programming note. Dont miss Reid Hoffman Linkedin cofounder on closing bell at 4 00 eastern time. At the beginning of the 21st century, the earth needed to find a new way to keep up with the data from over 30 billion connected devices. Just 30 billion . So, a bold group of researchers and computer scientists in Silicon Valley had a breakthrough they called. The machine. The machine. It changed the basic architecture of computing. Putting a massive pool of memory at the center of everything. And by doing so. It changed the world. Its been a part of every new technology for the last 250 years. Everything . Everything this year, Hewlett Packard enterprise will preview the machine. And the future of technology will begin. See star trek beyond. In theatres july 22. My m. About my toothpasteice. She eveand mouthwash. Ice. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again welcome back. One step closer to finding out who will be the next Prime Minister of the united kingdom. A second round of voting will take place in the conservative Party Leadership race very funny story, right, if only you could see what happens during the commercials. Final two candidates at the beginning i thought it said michele. It did. But it was a shot of me. It was shot of me for like the first ten seconds. Thats why were laughing. I was reading. Okay. The train went off the rails. Do you know who this is . I know who she is. Theresa may. A frontrunner after securing the most votes in the second round. What is it leadstrom. I believe so. And thats thats the secretary, michael gove. I thought that was mr. Bean. He was in the background. Mr. Bean. Youre going to confuse him with the other guy on pbs. Or the guy in monte python. One or the other. Now this is you. Thank you. All Day Breakfast lovers rejoice. I did this. Well sausage and egg mcmuffin. I love all the breakfast. In the afternoon. For the first time . Yeah. I hadnt used the all Day Breakfast thing. Wow. And you know what, that was so good i wanted pancakes. Adding mcgriddle now to the menu this fall along with egg mcmuffin and biscuit sandwiches. Most already offer egg mcmuffins or biscuits all day long, so this is new, creating one national menu, mcgriddle the most requested item that is not currently offered. I havent. Michele obama so mad at us today. First talking about fritos, dorito, cheetos and how much we love them and now talking about sausage egg mcmuffins in the afternoon. Theyre great. Love breakfast for dinner. Join us tomorrow. Squawk on the street is next. Good thursday morning. Welcome to squawk on the street. Im Carl Quintanilla with david faber, sara seisen, michael santoli. Volatility somewhat muted as we juggle adp, m a in the food space, pepsi earnings and fbi director comey on the hill. Europe higher as bank fears subside for the moment. Oil is higher on that bigger than expected api draw last night. Our road map begins with a major postbrexit deal. Danone buying whitewave for 12. 5 billio