Weve seen since the election. The nasdaq is indicated up by 8. 5 points. Well talk to the nasdaqs ceo later this morning. Look at what happened overnight in asia. The nikkei was up by 1. 1 . Markets in china also closed higher with the hang seng up by a half percentage point. In europe this morning, in the early trading thats taking place, you can see things are relatively flat. Across the board. The ftse, the cac, and the dax all sitting within points of where they closed yet. Its been a big couple of days for markets there. Pepsico just out with earnings. The number is a core earnings of 94 cents a share. That Beat Estimates by two cents. Revenue also coming in a little above expectations. Talking about what happened with this quarter, she said they achieved solid Revenue Growth in the First Quarter, underpinned by global volume growth. Despite what she calls a challenging food and Beverage Industry thats been trading conditions in north america and continued volatility in developing and emerging markets. Some other big corporate stories. Shares of chipotle higher this morning. The fast food chain with better than expected earnings. Samestore sales rising 17. 8 in the First Quarter. Well above the wall street forecast. You can see the initial reaction late yesterday. The Earnings Report was not all rosy. Chipotle telling investors that it experienced a data breach. Customers who used a credit card at a chipotle within the past month could be affected. The ceo addressing the breach in his call last night. We immediately began an investigation with the help of leading cybersecurity firms, Law Enforcement and our pramt payme processor. We believe actions we have taken stopped the unauthorized activity and we implemented additional security enhancements. Our investigation is focused on current transactions that occurred from march 24, 2017 to april 18, 2017. News of the data breach capping some of chipotles gains. At ts First Quarter earnings were in line with forecast but revenues missed. At t says consumers are holding on to their phones longer, and rivals offered new promotions on unlimited data plans, something the ceo addressed on the conference call. This has made an already competitive market even more so. And our response to the limited data plans was probably a little slow. And we lost some share in the quarter. But it was really important that our unlimited offers be unique and play to our strengths. Shares of at t lore wer by a quarter percent. Shares of u. S. Steel down sharply now after the Company Reported an unexpected First Quarter loss. Revenue also missing forecasts. The ceo says operating challenges at the companys flat rolled facilities prevented it from benefiting from improved market conditions. Stock lower by nearly 17 in premarket trade. All week, we are taking a closer look at the president s first 100 days in office. Tomorrow, becky, joe and i will be in washington to speak to some of the most influential names in washington, including kevin brady, steny hoyer, senator bob portman, senator david perdue, david schweikert, joe crowley and wilbur ross. Given that were headed to d. C. , we will head to d. C. Right now, President Trump is set to roll out that tax proposal which im sure we will be talking a lot about today and tomorrow. Eamon javers joins us with details this morning. John harwood has gotten details of what the it the will be rolling out later this afternoon at the white house. In terms of a Senior Administration official laying out some of these details, heres what we know as of right now. The white house is contemplating a 15 top tax rate for corporations and for passthroughs. A top individual rate would be somewhere between 33 and 39. 6 . They have a revenue place holder in there, Pay Attention to that. That could be important later on. It could turn into a border tax according to John Harwoods reporting. Its not there yet. The question is where the revenue will come from. They have an expanded personal exemption or a child care tax credit or possibly both in there. Those would be important for middle class folks. All of that to be rolled out later this afternoon at 1 30 at the white house by Steven Mnuchin, the treasury secretary and gary cohen, who has been rising in importance inside the trump orbit. So the two of them will make this presentation today. The question is whether this can pass up on capitol hill. The treasury secretary went to the hill yesterday to brief lawmakers on what it was that the president would propose today. One of the questions will be about the effect here on the deficit. Republicans and conservatives in particular have been concerned about the deficit for years. Im told there are two camps up on capitol hill. Those republicans who would be in favor of increasing the deficit for df spending at least, if nothing else. And those who just would not be in favor of increasing the deficit at all. Those are the people the white house will have to be concerned about as they try to craft a legislation to pull together and pass this. They say at the white house they would like to have this done by the fall. The treasury secretary initially said august. Eamon, help us understand this. Literally up until maybe even late last week the conventional wisdom in washington and even those sources i knew inside the white house were not talking about 15 , which was what was on the campaign trail. They were talking about 20 last week, 22 , 25 . Right. All of a sudden we reancho d reanchored the conversation. Does anybody think 15 is a realistic number . Has the pendulum swung this quickly . You have to look at 15 as an opening bid. This is the white house laying out its wish list of where it would like this to go. Then you have to hash it out on capitol hill. My sense was the president was frustrated with the idea that he campaigned on tax cuts, yet had not been able to put out a tax plan out there for the public to take a look at. He announced on friday that they would be doing this today. That caught a lot of people at the Treasury Department and inside the white house by surprise. They didnt know that they were going to be rolling out this tax plan today. So i think behind the scenes theres been scrambling to put together the detailing. And when you look at where they landed here, at least initially from this early reporting t looks like this is an opening gambit of a long negotiation. Correct me if my understanding of this is incorrect. When i read all the descriptions of what might be coming out t sounds like we stick with a worldwide tax system. We dont go to territoriality. If thats the case f youre charging 15 for overseas revenue that makes up for a lot of lost revenue. That was a big hit in the previous tax plan under brady. If you were going to get rid of worldwide tax, you had to make up with the overseas tax. We dont have specifics on how they envision repatriation happening, if there would be a separate rate for that. The way i read t they dont talk about repatriation. Its like, okay, overseas taxes will be this. Pay them. That would be an easier lift, but something that brady, ryan and all these guys talked about, we have a broken system. If you want to fix it, thats what it would take to fix it. However, if you get the rate low enough none of those things matter anymore. Then you incentivize manufacturing in the United States, and all kinds of things to happen here regardless if the rate is low enough. That may be why they want to target 15 . The top five countries i was reading this morning in terms of investment all have rates below 20 , including countries like ireland. The bottom five in terms of Business Investment with the exception of russirussia, all h rates above 30 . Which shows you how investment following favorable tax rulings. Eamon, a question on the passthrough issue. Whether you will turn yourself into an llc and set yourself up with a contract with the good folks at Nbc Universal or whether we all should do that. How will they police that issue . We dont have details on that. Of course the democrats you mean we all become our own businesses. If 15 is the rate as a business, we all become our own businesses, subcontract, pay our own healthcare, and those are thedistinctions, but still the taxes will be lower. The democrats will hit the president on this, because the Trump Organization could benefit from this. They will say this is donald trump trying to lower his own taxes. The details we have from John Harwoods reporting, we have the pleasure of lowering the rates and good stuff, but none of the pain. We dont have what the revenue raisers will be, if there is going to be revenue raisers. So this is politically an easy day for the white house to lay out these details. The tough stuff is whether youre going to raise money somewhere else and whose ox will get gored there. Thats where the real politics come into play. Those deals we probably wont see until later this summer is the expectation . We just dont know. I would hesitate to predict. They say theyd like to do it by the fall. Have it fully passed. When we would see the details could be at some point over the summer. Yeah. We just dont know. Eamon, great to see you. Will we see you live and in person tomorrow . Ill be there. If you want me on set, that will be great. Come visit. Or well come and visit you. Youre welcome any time. Turning to todays agenda on wall street, earnings continue to take centter stage. We will get boeing, fiat chrysler, smithkline, Procter Gamble and twitter report before the bell. After the close, amgen and pay pal. Bank of americas annual Shareholder Meeting today. The big proposal on the table is the vote to split the roles of ceo and chairman. Vent havent we visited that before four times . Im not sure one or the other is better. Lets get back to the market rally weve been watching this week with the nasdaq closing above the 6,000 level for the First Time Ever. Joining us is Michael Tyler from eastern bank wealth management. Also j. J. Kennihan from t. D. Ameritrade. Give us a view of where you think this momentum is coming from . Because of the French Elections . The focus on washington and the tax bill . What happened to change momentum . I think overall its the momentum of earnings. We started out strong with the financials. Its continued. We are picking up positives along the way. With the French Election send night, we had the incredible rally in the s ps overnight and continued on monday with the French Election being one thing that took a head wind temporarily away from the market until we see what the next election shows us. One thing we all learned is to be careful about polls. But that being said, at the end of the day, it comes down to earnings driving the market. Yes, the tax cut is great. Its given us some momentum. If earnings were terrible i dont think the other stuff would matter nearly as much. One other interesting thing to me is the fact that the fed funds is showing us that we have a 76 probability of a rate hike in june. And its being taken in stride by the market. Thats gone from about 35 only a week and a half ago. A lot of things going on under the surface continue to show that the market is in a much healthier place than many of us actually thought. The numbers are coming in good. The last thing ill say is the ceos and Earnings Call are striking a positive cord about growth. Its not about meeting expectations, its about growing expectations. I think thats helping quite a bit. That certainly has been what drove things yesterday morning in particular. Michael, when you look at the Earnings Calls, ive been surprised, yes, theres been a lot of ceos on the calls talking about how strong growth has been. But also plenty of relief where they say we hit these numbers despite a challenging global market. Pepsi the latest one to cite volatility and some struggling issues even with emerging markets at this point. Where do you think things are shaping up . Thethat earnings are giving us now . Right now were tracking a 9 gain in earnings versus the same quarter a year ago. Thats better than the roughly 6 in the december quarter or 3 back in september. So the track is really good. What im hearing, yes, theres pockets of weakness here and there. I dont know if its weakness as much as it is the ceos reluctance to give us too much strong guidance, maybe theyre not quite convinced yet. Its early in the year. They dont want to commit too early. Theres no reason to be too optimistic. Investors are looking ahead. Theyre seeing regardless of whats happening on the washington front, the outlook for earn pgs look pging inearn. In particular for multinational companies. Is that what youre telling people to be betting on at this point, multinationals with exposure to europe . I think thats a good bet. The european markets, particularly banks have done well the last few weeks, which is great. And for good reason. They underperformed for seven or eight years in a row. Its about time they started showing growth. Its about time that as the European Central bank begins to talk about ending its quantitative easing program, which i think is several months off, but theyll start thinking about it, that could be a big plus for europes banks and for european stocks in general. Thats beginning to filter into stocks. And i think that also bodes well for u. S. Companies that are doing business in europe. J. J. We saw the nasdaq close above 6,000 for the First Time Ever. The dow a couple points below 21,000. Do these big, round numbers matter. Actually, psychologically maybe a bit. I dont know that its a huge thing. It does give people a lift what it hopefully does is sort of bring some people to the market who were not paying attention. Even if they dont necessarily invest, they look at their 401 k s or whatever it may be from that point of view it matters. Again, i think it helps give people a bit of a psychological lift that perhaps this rally is for real. One thing i will say, im curious when we do get these tax plans, more details, were supposed to get them today and going forward, it may be tough for the tax plan details to live up to the expectations, because the expectations have been so great since the election. So everyone is saying when will we get the correction. Thats one time you do have to be a bit on edge as more details come out. All right. J. J. , michael go ahead. You made a great point earlier about the painful parts have not yet come up. But they will be there. Because President Trump is going to have to persuade voters that a much larger deficit is a good thing unless there are pain points coming soon. Obam ma got an eightyear pass doubling deficits with saying how much the banks had to pay each year to fund that, that wont happen with rising rates. I think the deficit will come back into the picture as a more important point that could prevent pain down the road. Giving us a blueprint for battles ahead in congress. Thank you both for joining us. Thanks. When we return, twitter has not benefited from President Trumps first 100 days in office. Kind of surprising given how much shocking. Sad. Sachd exclamation point. The stock is down 13 since the inauguration. Well tell you what to expect when they report First Quarter earnings today. Thats next when ssquawk box returns. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. E trades powerful trading tools, give you access to indepth analysis, and a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade if you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. Twitter set to report in the next hour. Wall street is expecting a falling revenue trajectory, first year for revenue decline for twitter as the social networking platform struggles with user growth, advertising and increased competition. Joining us is an analyst from monus, crespy and hart. I cant say twitter now a days without saying poor twitter. I feel so bad for twitter. So many users love it, and you see what happens with the share price. We used to say Revenue Growth is slowing, now its declining. Its more like a newspaper company. Wow. Its pretty sad. Dont poormouth the newspapers. Im talking about subscription trajectory. The bottom line is their complete Business Model needs to change. You have issues with advertisers, you dont trust the content on there. And if you can find a way to verify and purge users you dont trust the content. Too many fake users, accounts. Fake users, harassment issue. If you purge users, make it verified, that would be of help. Similar to facebook. Similar to facebook. And then charge users. People rely on it to get their voice out there. You want to charge the user to publish as opposed to the user to read the feed. Exactly. Okay. So charge per tweet . Different tiers. If youre a news outlet, that would be one thing. If youre a blogger, thats something else. Given the success of instagram. The ads on instagram are pretty good i find myself clicking on them. Why cant twitter figure that piece of it out . The issue there, theyre so focused on brand advertising. The ad team is trying to win over Television Advertising dollars. Youre saying instagram. No, twitter. Thats over half of the revenue, brand ads. But theyre not doing things that will necessarily be bought. I cant believe i bought things from ads facebook sent me because its smart enough about my search habits to know what im in the market for. Whether its a bathing suit, car, whatever. They send me the proper things. Precisely. Your point is exactly right. With the brand ads, its about trying to get to a mass market. Its like a cocacola ad. That will not make me click on coke. The ads and the team are mismatched with the skill set and the nicheness of the model, which should be more in direct response, highly tailored, targeted ad. Steve liesman was on squawk box with me one morning. He has a band. He says when it comes to advertising their band, facebook is easy. Were at this bar, and within 20 miles, and they cant do that on twitter. Sounds like the advertising platform is not up to par. Thats why you think its like a newspaper situation. Theres a turnaround story, but it has to be a painful turnaround. You could potentially lose half the revenue but then have a different outlook for growth. If you charge users, better license the data, and better calibrate the ads with the nicheness of model. So is this team in jack dorsey, anthony noto, you know the rest of the management team. Yeah. Are they capable and in klein inclined to follow the model shifts . They are capcapable. Are they willing . I dont think soso. What is preventing them from changing the line on that chart . I dont think theres a Cohesive Strategy on how to turn it around. Its all about live content what theyre doing is rebroadcasting content already broadcast. To play devils advocate. Stock has gotten hammered. The pessimism is extreme. Listen to us. Those are often the moments when shoe buy the stock. No . Yes . Im not even taking a position. I should probably, but im neutral on it. Okay. Im conflicted. Its the social service i rely on the most. But best case scenario, Revenue Growth at the end of this year. Unlikely. 15 seconds, snapchat . Is it twitter or facebook . Neither. Would you be long or short . Long snapchat. Okay. I think theyll win over tv dollars. They have the demographics. I think theyll surprise on the upside materially on revenue. Thank you. Thank you. When we come back, the Robinhood Foundation is perhaps the best known philanthropy on wall street. This week they tap wes moore as the new ceo. As we head to the break, a look at this weeks winners and losers. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . To be a nightmare does nobody like the future . Cmon, the future. He obviously doesnt know intel is helping power Autonomous Cars and the 5g network they connect to. With this, wont happen in the future. Thanks, jim. Theres some napkins in the glovebox. Okay, but why would i need a napkin . You could have just told me a bump was coming. We know the future. Because were building it. Welcome back. Youre watching squawk box live from the Nasdaq Market site in times square. Good morning. Welcome back. Weve been watching the u. S. Equity futures, after two strong days of gains, two of the biggest days backtoback for the dow and s p since the election, youre looking at another day of positive errors. S p is up by a point. Dow up by another 50 points almost after gaining more than 400 points the last two trading sessions. The nasdaq which closed at a new record yesterday, above 6,000 for the First Time Ever, up another 5 points this morning. In washington today every u. S. Senator has been invited to the white house for an unusual meeting to discuss the standoff with north korea. The briefing will be led by the secretaries of state and defense. The director of National Intelligence and the chairman of the joint chiefs. President trump is expected to drop by the gathering. After the senate meeting, white house officials will head to the capitol to brief the entire house of representatives as well. All 15 members of wells fargos board were reelected to new oneyear terms of the banks annual Shareholder Meeting yesterday. The reelections came despite angry opposition from some of the panel who demanded some of their ouster. Some of the anonymous winning percentages came in as low as 53 . Chairman Steven Sanger acknowledged the low percent tables saying the board has heard the message clearly. The meeting ran nearly three hours. It was repeatedly interrupted by angry shareholders. There was a brief recease after one shareholder made a physical approach to a board member and was remoefred. Robin Hood Foundation announcing a new ceo this week. The well known charity on wall street has raised 2 2. 5 billion since it launched in 1988. Gave away about 1 130 million last year in new york. Probably one of the most important charities in new york city. Lets bring in wes moore, bestselling author and incoming ceo of robin hood. Someone Oprah Winfrey is making a movie about. When i heard the news that you were takiing over, i was ecstatic. I was grinning ear to year. We have none each othhave known some time. Im honored. Thank you. Tell us how this happened. I was having conversation with a dear friend and Founding Member of robin Hood Foundation, david saltzman, we were talking about how people would go to college, get a degree and have no job and have debt. It turned into a talk about pover poverty, concentrated poverty. The fact that as we watch markets and futures going in the right direction, the futures for the poor in this city and country are not. Thats when he said when youre thinking about how you want to fight this fight of poverty, whats the platform you want to think about. The conversation about robin hood came up. Robin hood is such a unique platform to be able to fight these issues. I think robin hood sits in a unique opportunity now to do that. When you think about transforming robin hood, i have talked to people on the board who talked about you coming in to transform. They said we need somebody who will take this on. What is it that you want to do with robin hood . Theres a couple big things that robin hood wants to do. They want to change the narrative around how we fight poverty and who it is were fighting for. Were watching now 33,000 students in new york city alone that are students but also living in homeless shelters. Were watching almost half of students who are starting school every single year, starting college every single year who are not making it to their sophomore year if youre underresourced and low income. Where is the failure for that now . I think the breakdown happens on a lot of fronts. We continue to think of poverty as a single solution that well pick. Poverty is a holistic problem. Its not just education, its jobs, Affordable Housing . Housing, transportation, health, mental health. We cannot address a holistic problem with a single solution. As you know the war on p poverty existed since lbj. Theres a lot of explanations that despite all the money spent, and its been a lot. And its acknowledged theres no change in new york city poverty levels despite the efforts. Its heartbreaking what do you do differently. One thing we have to understand is philanthropy alone cannot fix what policies have it we have putting people and keeping people in poverty. One of the goals and jobs of organizations like robin hood is being involved in the policy conversations. Around things that are happening that are having a distinct and direct impact on people. Such as such as the way we think about education, the way we think about reentry for people returning from prisons. The way we think about Job Opportunities and job training. So i think its a wholistic approach in the way we analyze and attack the way poverty served as a generational malignant issue that our society has been dealing with. Why do you think wall street has always been this is one of wall streets favorite charities, in terms of the names, Larry Robbins chairman now. David einhorn. What do you think it is about the robin Hood Foundation that attracted their interest. You were a former citi group man. I am. I worked at citi for about six years doing alternative investments and buy side. I understand the analytics. I think thats one thing that robin Hood Foundation is unique at. Robin hood is data driven but heart led. Robin hood wants to know what is working. I think robin hood is also a unique platform in the fact that robin hood serves as almost an incubator where we can be an importer and exporter of whats working. If its working elsewhere, bring it to new york. If its working in new york, bring it elsewhere. There has to be a way to share best practices to know the issue of poverty doesnt have geographic boundaries. This is impacting communities, rural and urban, whether youre talking about hillbilly or wes moore, this is urban, rural and this is real. Charitable deductions. How much do you worry about the charitable deduction going away in terms of the success of your ability to raise funds . Charitable deductions are important when it comes to, you know, an ability for people to give. We have not yet seen what the full plan or full rollout is. I cant speak on that just yet. The thing i know and what we urge from supporters, whether they be Asset Managers or in the Entertainment Industry or entrepreneurs, the issue of poverty is something that has to be so be involved and rectified. There are people every day who are on that line, and the decisions that are being made, the policy decisions being made, and whether people feel a interested interest in their success determines whether theyre part of a larger conversation or not. Wes moore, congratulations. We wish you luck, i was going to say your first 100 days, but beyond that as well. Thank you, guys. Another dow component, another earn pg ings beat. Yesterday four out of five dow components beat on the bottom line. This morning already beats. United technologies out with earnings of 1. 48 a share. Thats 9 cents better than the street had been anticipating. The company also raising its it is backing its prior fullyear forecast saying 6. 30 a share to. 60. The street was at 6. 55. Well keep an eye on this dow component which is right now up by 90 cents. At the top of the hour, the guest host will be Scott Mcnealy. He will weigh in on politics, Tech Startups and education. Senator pat toomey, well get his take on healthcare reform and President Trumps tax plan. And later, peter roskam will join us. Stay tuned, youre watching squawk box on cnbc. Youre her. Welcome back to squawk box. Time for the executive edge. Consumer reports cutting its rating for some tesla models. Phil lebeau has the details. This is significant because Consumer Reports has been praising tesla models in the past, but this morning Consumer Reports is saying tesla has been slow to issue an over the Year Software update for automatic emergency braking. This Software Update would enable that technology to kick in on vehicles built between october and today. Tesla bought a couple of these vehicles, a model s and x. Has been waiting and asking when will the update come. It still hasnt combed. So they dropped the s from the top ranking in its category. As for the model x, it has also dropped the score by two points that puts it near the bottom of the luxury midsized suv rank g rankings from Consumer Reports in a release this morning Consumer Reports says tesla was still selling premium luxury cars without basic safety features that come standard on far less expensive vehicles such as the 20,000 toyota corolla. As you look at shares of tesla, we should tell you we reached out to tesla, tesla says that update has begun it takes a couple days sometimes to reach all the vehicles. Tesla says that Software Update has begun. So the automatic emergency braking should be enabled in these vehicles built since october. Consumer reports saying, guys, were tired of waiting. Phil what do you think has happened . Its shocking given the effusive praise Consumer Reports has had for tesla and to switch on a dime like this. They say Consumer Reports has been in touch with tesla several times since last year. Tesla is saying its coming, its coming. Is this just about the braking issue . Yes, strictly about this issue. Theyre saying at some point w a standard feature like this, you get tired of waiting. Its timed to call out tesla which is what theyve done here. Okay. Phil lebeau, appreciate it. Well talk a different version of retail this morning. Nordstroms new jeans have social media buzzing. The retailer now selling mudcovered jeans for a whopping 425. The jeans described on nordstroms sites as americana work wear that has seen hard working action with a crackled, caked on muddy coating that shows youre not afraid to get down and dirty. Or be a poser and pretend you get down and dirty. What happens when you wash them . Does the mud go away. Probably those jeans you never are supposed to wash. Youre a poser. You going walk down fifth avenue in your muddy jeans . Thats probably not the target clientele. If youre paying 425 for a pair of jean dshs dshs thats very l. A. Are you familiar with golden goose sneakers . No. Fancy sneakers that are muddy like this. Or theyll have tape on them, other things. Look old . To look really old. But people are spending a fortune. They look cool. I will admit. Such posers. Go out and work, people. Get your own boots muddy, get your own pants muddy or embrace what you are and dont. Right. I hope those things dont sell. When we come back, the nasdaq is out with earnings, and the ceo will join us on the set next. Right now, as we head to a break, a quick look at whats happening in european markets. Things are a bit weaker, but essentially flat. The cac is down. Well call this flat today. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. The power of 100 of the worlds top companies. The power of a proven 15year track record. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. Whoa thats amazing. Hey, im the internet i know a bunch of people who would love that. The internet loves what youre doing. So build a better website in under an hour with. Gocentral from godaddy. Type in your idea. Select from designs tailored just for you and publish your site with just a few clickseven from your. Mobile phone. The internet is waiting start for free today at godaddy. Welcome back to squawk b box. Future hall of famer and member of a political dynasty teaming up to buy a Major League Baseball team. Reports say a group led by derek jeter and former governor jeb bush have won the bid to buy the marlins for 1. 3 billion. Current other than bought it in 2002 for 158 million. Thats a return. Reports say the sale could still take several months. Jeter retired in 2014 after playing 20 years with the yankees. Worth noting, do you know who they were bidding against . The romney family. Bushes versus romney. Tag romney was running a Bidding Group to buy the team. But totally not done yet. These things can can take a long time. But just like congress, republican on republican. Yes. Fighting each other. The nasdaq reporting quarterly reporting this morning. Profit came in at 1. 10 a share, four cents better than the street was expecting, although revenue was below forecast. Nasdaq raising its quarter areally dividend to 38 cents a share up from 32. And gewere joined by president and ceo of the nasdaq. Thanks for being here. Thank you. Profit up pretty significantly. And weve watched momentum, you happened to be here on the day after the nasdaq closed above 6,000 for the First Time Ever. Yes. Big round numbers may or may not mean a whole lot, but weve seen momentum. How would you describe it . I think certainly the composite index has had a good run. Probably on the back of two things. One is obviously the european landscape seems to have a little bit more certainty going on into the rest of the year. But also of course the administration is driving some interesting policy proposals particularly around tax. And you can make your own determination as to what you think it will come out of the over all process. But in any case, i think it does seem like most investors are assuming there will be a lower tax rate. What is your determination . I think that the machine has got to go to work. Its interesting to see what the opening is coming out of the Trump Administration in terms of low Corporate Tax rate and low repatriation rate. How that comes through the congressional process i think is anyones guess. Is the market moving because of the tax rate or good earnings . I think ites Solid Earnings in addition to the european landscape and the tax issue. And were a long way from any sort of finalized plan on taxes, but if we did get something towards 15 , what would that mean in terms of potential listings here in the United States on the nasdaq . Certainlyn earnings 3wu6r s bump and we ho would drive more ipos into the markets. Are you satisfied with how you have been doing compared to the ordinary major places for listings in terms of getting new companies to list here . Over the last 12 months, weve had a 67 win rate of new listings. So every quarter is a little bit of a different story. I would say that going into the Second Quarter we continue to see a really nice pipeline of companies wanting to come public. And nasdaq is the natural home to any company that wants to be a public company. So were excited about all the companies that are looking to tap the Public Markets right now. Every single ipo is a battle though. What did it mean to lose snap . Obviously wed like to win every ipo and we do believe that we have the best Value Proposition for every company. But every decision is an individual decision by the company. We have we believe the best market model, an incredible first day experience with a great ipo auction that weve developed over the last several years. And then we also have great visibility. So why do you think they have you done a dive there . Because that is incredibly prominent. You may have won 67 , but in the mind of people who watch, snap ipo is the big one. Have you done a postmortem . We do postmortems on every ipo, but they are all individual decisions. So we looking at lets make sure that we are articulating all of the great benefits that we have to offer companies. So that the next company chooses nasdaq. It is complicated. Would you take uber public given all of the issues surrounding it right now . I would say that the first thing is i dont talk about any specific companies. But generally speaking, we are seeing some of the Larger Technology Companies at least making some decisions to think about the Public Markets. Im not specifically talking about uber. And so i think that at this point they will want me to understand that there is an inviting Investor Group that is ready for them to come into the Public Markets, that they can model out the company and its future about and if thats the case, then the companies are welcomed into the public market. But the scandals and other issues, would you say this is not for us . The way that we work that through is there is an s. E. C. Process and a nasdaq listing process. And so long as they go through these processes and come out with approvals on both sides, then they are welcomed on to nasdaq. Congratulations on the earnings. Appreciate you joining us. Thanks. And coming up, be earnings alert, we have reports from Procter Gamble, twitter, glaxosmithkline hittinging in minutes. And first on cnbc interview with john moeller. Squawk box returns in just a moment. Come on, check out that stopandpop what do you think . My tradeoff analytics indicate no one creates more space on offense. This allows him to nail a jumper from a densely populated urban area. What youre trying to say is from way downtown . I am still learning. I can see that. When a fire destroyed the living room. We were able to replace everything in it. Liberty did what . Liberty mutual paid to replace all of our property that was damaged. And we didnt have to touch our savings. Yeah, our insurance wont do that. Well, there goes my boat. You can leave worry behind when liberty stands with you™. Liberty stands with you™ Liberty Mutual insurance futures are higher this morning after an earnings fueled rally pushes the nasdaq above 6,000 for the First Time Ever. Your trading day setup is straight ahead. President trump will outline his new tax plan later today. Well be hearing from senator pat toomey and congressman peter rosk roskam. And earnings from twitter and boeing due out. Numbers and Market Reaction all coming up as the second hour of squawk box begins right now. Good morning. Welcome back to squawk box right here on cnbc, were live at the Nasdaq Market site in times square. Michelle carusocabrera is in for joe this morning. Take a look at futures. We look like we will open up higher on the dow, about 41 points higher. Nasdaq up about 4 points after what was a record close yesterday. And the s p 500 looking to open down just marginally. We have twitter earnings hitting the wires. And Julia Boorstin has those numbers. Twitter beating on the top and bottom line and reporting stronger user growth than expected. The company accelerating its monthly active use irs to 328 million, that is 7 million more than expected. And that is 9 million more than the Company Reported in the prior quarter. Twitter saying daily active usage accelerated for the fourth consecutive quarter to 14 year over year growth. Earnings were 11 cents per share, 10 cents better than expected, really revenue fell to 548 million. The companys outlook for the Second Quarter was far worse than expected. I spoke to jack dorsey who attributed the accelerated user growth to improvements to their time line and notifications, showing users far more relevant tweets, also to faster product improvements such as simplified search are and reducing the amount of abuse on the platform. And the coo explained why revenue is lacking telling me ad deals were made 6 to 12 months ago and cost per ad has decreased since then. And video is driving Great Success with users and advertisers, now the Fastest Growing ad format, but he wouldnt give any estimate of when rev new will start groiing again. Note we see twitter shares up about 11 premarket. As for the question of whether President Trumps frequent tweets are driving user growth, he says there is some correlation, but all that interest in politics is not the sole driver in the u. S. All right. Julia, thank you very much. Well continue to watch that. That is a big move for the stock right out of the gate. Here is what is making headlines right now, a big warning for corporate earnings. Pepsico earning two cents better than the street was expecting. Their full year forecast a few cents shy of the consensus. United tech knowledges beating on the bottom and top lines. It earned 1. 48 a share for the quarter, that was 9 cents better than the street was expecting. You allalso had revenue better n expectations and that stock up by about 93 cents. President trump will unveil his proposed tax law changes today. Among the highlights, a cut in Corporate Taxes and cut in the rates on foreign profits brought back to the United States. Lawmakers were briefed on the details yesterday by treasury secretary Steve Mnuchin and nec director gary kohn. For more on twitter, were joined by our guest host for the morning, Scott Mcneilly, former ceo of Sun Microsystems. Im curious about your view on twitters earnings and of course we want to talk about what is going on in washington today given the potential tax proposals well be seeing. Well, im no expert on twitters earnings, but i have been spending a lot of time on this whole advertising space. In the social networks. And its a pretty interesting and tough and brutal game for everybody who is not facebook and not google. They are owning so much of the Digital Advertising space. And the space hasnt really evolved as well as i think people wish it had. It was in the mid90s at t did the First Digital banner ad and 43 click through rates. Now they are under 1 , 23 of the people have ad blockers. As many as half of the clickers are accidental. That is me. Do it all the time. So why bother to advertise online . Google and facebook are gaining share and doing quite nicely thank you, so everybody else is trying to go after that. Do you believe the numbers . In th that is the other big deal. There was an interesting scandal where facebooks video views 80 overstated. Its kind of a black box. And advertisers that i talk to, the big brands are very frustrated that they dont really know how many clicks they are getting, they are not getting the data back. How much better is the mouse trap that facebook and google have flp we talk about it all the time their ability to follow me effect be differencely around the internet and then when i am on instragram or on facebook or they can then serve me an ad that truly is something that i might have actually just looked for within the past 24 hours. So targeting was supposed to be the holy grail, but all were doing basically is the same kind of advertising you see on tv, were doing 15, 30, 60 seconds but its more targeted. Forester is talking aggressively about how people will work away from banner ads and videos that are basically targeted to brand experiences and that is certainly something im focused on and investing in. How do you do that online . What does that mean . So experiences are where you actually can interact. Its not lean back watch a video, its actually and everybody who is watching advertising today has a keyboard, a touch screen, a speaker and a microphone. As opposed to a tv where you just sit there. Okay. So now you can engage and you can capture First Party Data and you can really find out and even using Artificial Intelligence and chat box actually go different places depending on how they are engaging with you as youre providing that advertising experience. So its an experience as opposed to a flash or people dont watch i do email during the videos. When it comes to twitter, if Scott Mcneilly was running fw twitter, how do you fix it . Yeah, some of the social clan he wills who arent facebook and google dont want to i think cha the model. They are getting all the money and gaining share against tv, print, billboards. Are you going to tell us what you would do to twitter or keep that secret because youre trying to tell to somebody else . Were going to bring experiences to their time line if we can pull it off. And that will be every brand we talk to says we want to go to experiences. Forester says thats what they want. And we think this could be a real breakthrough. Were thrilled to have you here this morning. Hell be hanging with us. In the meantime we have another dow component that is out with better than expect bed earnings on the bottom line. Proctor and gamble reporting irts thiits third quarter, 96 cents a share. Revenue slightly below what the street was expecting. 15. 61 billion is where they came in. Joining us for a closer look at the numbers is jon moeller, chief Financial Officer at Procter Gamble, also a member of the cnbc global cfo council. Thank you for joining us this morning. Good to be here. There are several things that really jump out from this report. Beating on the bottom line, the top line just slightly lighter. And looks like on net sales are down about 1 from a year ago. What happened in that regard . It was a challenging quarter on the top line from the top line standpoint. Market growth across the world declined from the first half of the year or the second half of the last calendar year through january and february. But despite that, we delivered 1 organic growth sales rate and earnings per share up 12 , excludeing Foreign Exchange up 15 , strong cash flow which can allowed us to increase our dividend 3 . 61st annual con on secretasecutd increase and 127th year that weve paid a dividends ever since 1890. Now three quarters of the way through the fiscal year and we remain on track to deliver our objectives on the top line, bottom line, retaining top line guidance, reiterating bottom line guidance and actually taking Free Cash Flow productivity up. A challenging quarter, but continuing to make progress. Lets talk about it from a broader perspective. We look to probleming tore a pr get a feel of what is happening around the globe. Weve had the market take off the last couple sessions. Earnings better than anticipated, that 2e78 tells u the Global Economy is good. But we hear from Procter Gamble and pepsi talking about a Challenging Market on a global basis. What is really happening, what does the economy look like, why is it challenging and where . Well, first of all, its very geopolitically and geo economically volatile and that is true in this country, as well. But take a market like saudi for example, one of our top 15 markets, prototypical saudi coupler has had their income cut by 20 while Energy Prices that they pay have increase bed and are set to double again in july. So that is an example of a very difficult market and in those markets as you would expect it impacts consumption. There was a general slowdownpri january and ferks we saw pickups in the markets in march and i would guess that is what the market is potentially reacting to. But it continues to be relatively slow growth, volatile from a geopolitical and economic standpoint environment, but within that, there are many opportunities for both top line and bottom line growth. Were forecasting 2 organic sales growth this year. Core earnings per share mid single digits. Jon, two questions. Are people buying less toothbrushes . He sa he organic sales lower, what about the razors . The grooming segment went down. I apologize. I confused miflyself. What is going on with razors . The grooming business is doing very well globally. Basically organic sales were flat to modestly up across all the markets. Total of the markets exthe u. S. U. S. , there is an incident reduction. We w. You have more people with facial hair. We still have products that are valuable for they said. We also have more competeitive n price. So the beards are affecting you. Is that just a beard thing . Dont workers we have proper on ducts for they said. Is that a shave Club Situation though . No, its a Broader Society number of shaves and square inches shaved on a daily basis. That is fantastic. Love that data. Ubs has a survey out they say 74 of investors think the prior arity for the Trump Administration should be Corporate Tax reform. Im assuming that for cfos, its 100 . We expect to hear details of a tax plan later on today. 15 rate. I mean, besides i assume you think that is great, anything else you can add to that, would that be how good would that be for the bottom line . Well, i just think its critical for the country and for industry jobs, American Standard of living, that we get to a competitive tax situation globally. And if the proposal which of course the details will be later today, if that gets us there, that is a big step forward. We really need American Companies to be fully competitive here and abroad. And as i said, there are big stakes here. Getting there allows American Companies to maximize growth, attract capital, create jobs. It really needs to happen. We appreciate your time. Thank you for join ing us. Thank you. Coming up, senator pat toomey on the president s first 100 days, the possibility of Health Care Reform and looming government funding deadline on. And later boboeings earnings wl be hitting the wires. Market creation straight ahead and plus much more on the monster two day rally in the markets. Well break down the earnings and talk with two market pros. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Welcome back. President trump is set to release some about tax plan details today. He defeated abo etweeted earlie u. S. Recorded its slowest Economic Growth in five years, 2016. Gdp up only 1. 6 , trade deficits hurt the economy very badly. Joining us to talk about taxes, trade, the budget and more is senator pat toomey. He serves on the banking budget and finance committees. Thank you for joining us this morning. Its a big day where we will be hearing more about the tax plan details. What do you expect to hear, what do you want to hear . Well, im getting increasingly optimistic that we will hear about a very progrowth tax reform plan. Im excited about much lower marginal rates, certainly on business, also on individuals. I think well see some simplification. Im hoping that well see a fix to our badly flawed International Tax policy where we tax income all around the world almost unique among Major Industrial countries. So what i think well see is a much more competitive progrowth tax code that will help get us the kind of economic recovery that weve been waiting for. Youre expecting that we wont see many of the details until later on. Earlier it was described that well get the pleasure points, not the pain points until later. What do you think about the wrangling back and forth, is there a way to find enough agreement on not only both sides of the aisle, but the different wings of the Republican Party . Thats a good question. I think that we are iterating our way to getting to the same page. Senate republicans, House Republicans, the white house. But lets be honest, the big challenge well have is getting a nearly universal agreement among Senate Republicans and very broad agreement among House Republicans that tax reform doesnt have to be revenue neutral. That we can use Economic Growth to replace any lost revenue from lower marginal rates. That will require a new budget resolution to give us the tools to pass that in the senate with a simple majority vote and since no democrats will work with us on this, we will need that tool. So we have to get that consensus. The president can help build that consensus. The promise of stronger Economic Growth that weve been needing and waiting for for so long i think is the reason to do it. So im cautiously optimistic. Just are so i understand, the consensus you need to build is that dynamic scoringso i unders consensus you need to build is that dynamic scoring to generate enough revenue is you get to something close to deficit neutral and as a result you can actually pass it with just republicans . Yeah, that is essentially correct. But i would also point out that the score keepers in washington dont give you much credit for a dynamic score. Even when asked to provide that, they tend to not think that lower marginal rates matter very much. I disagree, i think they do. I think what evidence and economic theory both suggest. So if about that is true, are you going to have to have revenue razors in there in order to satisfythat is true, are you going to have to have revenue razors in there in order to satisfy that rule . We have provisions where we give away money to people that we shouldnt be giving to, so im in favor of getting rid of that waste. But what im suggesting is that items okay if the joints Tax Committee and cbo give us a score that says, oh, this will come out a trillion dollars below the 45 fr 45 trillion we currently projecting for the ten year budget window. That is okay. That will be considered a tax cut but growth will more than offset it. Senator, one of the big issues that weve heard about in the past 24 hours is that there will be a passthrough for Small Businesses and frankly Large Businesses set up as an llc or a business. That would help Small Businesses to a large agree, but by the way would also help a Hedge Fund Manager who has his own fund or a law firm that has their own fund but is a partnership, they would be paying a 15 rate. Does that make sense to you . I think 15 is a great goal. As you know, c corps have a double layer of tax because after they pay the Corporate Tax when they distribute dividends, the shareholder pays tax on that income, as well. And passthroughs do not have that double taxation. So you can have some differentialle and still have a fair system. That differential probably on is somewhere in the mid to high single digits. And you still have economic parity between the passthrough and the c corp because of the double taxation. I think the spirit of an drews question is is that a lot of individuals because of their income who would be at the top tax bracket, they can attitudely become their Small Businesses instead, become a contractor, and move their tax rate from 39 or 35 or whaefrt top ratever t will be down to 15 . Like i say, it nt would be 15 . If the c corp is 15 , pass did, be through rate equivalent to that is higher than 15 . Certainly not 33 , but higher than 15 . I think it is important that the top individual rate be close to the passthrough rate. As notiyou know, that has been same. Only point i was trying to raise is one of the things that President Trump said on the campaign trail repeatedly is hfr hfr and by the way Steve Mnuchin said on our set was that he didnt want to lower taxes meaningfully for the wealthy, he wanted to do it for the middle class. Having set that, if youre a real estate developer, and im not mentioning any names, or if youre a Hedge Fund Manager or if you work at a law firm and you would normally be in that high bracket, clearly you would be able to lower your tax substantially even with the break youre talking about. What tends to happen when you lower the tax burden overall, people who pay a lot of taxes do end up paying less. Thats the way it tends to work out and thats okay. This is about for me maximizing Economic Growth. You take the corporate rate. Corporations dont raeeally pay taxes. The shareholders, customers and employees pay it in the form of lower wages. If we can lower the rate, then Pension Plans do better, employ years get a raise and consumers get better prices and woor more on compete were more powerful on the world stage. Senator, i want to thank you for your time. Obviously this is a huge issue that we will return to time and time again. Thanks for having me. All this week in fact we are taking a closer look at President Trumps first 100 days in the office. Tomorrow andrew, joe and i will be in washington, d. C. To speak to the house ways and Means Committee kevin grabrady. House minority whip steny hoyer, senator rob 30r9 man, senator david perdue, House Freedom caucus member and Democratic Caucus chairman and commerce secretary wilbur ross. Coming up, earnings from boeing. Well find out if they are seeing clear skies ahead when it comes to the economy. About check out t futures suggest that the dow would open higher 35, nasdaq hire higher by nearly 5. In what year did the hash taug fir tag first debut on twitter . You dont have. Aflac paying you cash, so you might have to sell that sweet little muscle machine just to cover your rent. More funny juice. But my papa gave me. That. Car. What do you wish you had . Aflac. Ohh, i love doing that. Health can change, but the life you love doesnt have to. Keep your lifestyle healthy with aflac Flexshares Etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Ready or not, here i come. Ek. anyone can dream. Making it a reality is the hard part. Northrop grumman command and control systems always let you see the complete picture. And were looking for a few dreamers to join us. In what year did the hash tag first debut on twitter . The answer, 2007. The answer, 2007. So you miss the big city . I dont miss much. Definitely not the traffic. Excuse me, doctor. The genomic data came in. Thank you. You can do that kind of analysis . Yeah, watson. I can quickly analyze millions of clinical and scientific reports to help you tailor Treatment Options for the patients genomic profile. You can do that . Even way out here . Yes. Even way out here. Even way out here . Weve done well in life, with help from our advisor, we made it through many market swings. Sure we could travel, take it easy. But weve never been the type to just sit back. Not when weve got so much more to give when you have the right financial advisor, life can be brilliant. Ameriprise lets[ whimpers ] dog. Find pingpong. Find your awesome with the xfinity x1 voice remote. Thats amazing but weve got the get tdigital tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount good morning. Welcome back to squawk box. Were live at the Nasdaq Market site. Boeing releasing Quarterly Results as we speak and well go over to phil lebeau who has those numbers. Another dow component reporting better than expected earnings, earning 2. 01 for the First Quarter, 7 cents better than expectations. Revenue coming in at 21. 0 billion. Just a smidge below what was expected. Here are a couple notes that will get attention. Operating cash flow, 2. 09 billion. Analysts expecting 500 million. Despite the fact that its better than many were expecting, boeing is not raising its full year annual guidance in terms of operating cash flow. Its Free Cash Flow at 1. 6 billion, many were expecting negative Free Cash Flow. And its guidance for the full year in terms of core earnings is being raised by ten cents up to 9. 20 to 9. 40 a share. Consensus 9. 35. That increase in the core earnings for the full year in term of the guidance, that is due to a lower tax rate. But again, boeing beating the street by cents earning 2. 01. Back to you. Hard to see where that stock will open. Well continue to keep an eye on it. That is now three dow components that have all the beat on the bottom line. Among the other stories, Mortgage Applications rose by 2. 7 last year according to the new figures. That was led by a surge in refinancing activity. With Mortgage Rates falling to lowest levels in six months. Teslas model s has lost its top safety rating from Consumer Reports. The influential magazine says that the company did not deliver on a promise to enable and emergency braking feature. That was functional in earlier models, but tesla says Software Issues prevent it in later vehicles. And tyson foods considering raising wages for workers. They just implemented a pay hike of about 3 aboutme. 5 back in n. Tyson says it could help a deal with the labor market. One of the first large meetings President Trump held with Business Leaders after he was elected featured a whos who of technology royalty. Our guest host this morning told us back in december that each executive has issues he or she cares about urks be the o, and k this important to Scott Mcnealy is smaller federal government. For a check on how the president is doing that, lets welcome Scott Mcnealy again. Executive chairman of way in. How is he doing . Hes making progress. Ive been talking to lots of ceos. I had one who said it very succinctly, large fortune 20 type ceo and he said all of a sudden after the election the waterboarding, the eight years of waterboarding stopped. And i think that is a strong feeling among a lot of ceos out there is that the regulations are coming down and the attacks from the government are coming down. When you look at his Favorability Ratings, they are low, but when you break them out and focus on just his supporters, his Favorability Ratings are actually still very, very high. I assume a lot of those people look at donald trump and say, you know when i see him, i dont see hillary clinton. And for them a lot of them that is good enough. That is part of it, but i think ive always said that the worst ceo is a thousand times better than a politician. Im a huge believer in the private sector being one that can be managed, public secretary, to the government sector by definition a monday on thatbly a monopoly and monopoly definition runs corruptly with low innovation and high cost. And the more and every job that is in the Public Sector is basically taking a job out of the private sector. You and i will get along just fine. So failure on health care, i think it was a failure, it was a promise, didnt happen. But all of the rollback of regulation, that is enough to offset what was so far still an unfulfilled promise . I agree. They said repeal and replace. If they just repealed and said well work on it later, but the repeal and replace is forcing them to come up with a better answer. Well, we have that is because of public opinion. For the first time more than 50 of the public likes obamacare and doesnt want something taken away. The realities of who doesnt like something that is subsidized . But its a political reality. Sub is ysidy is a reality ofe personal responsibility drops and people are voting for a living as opposed to working for a livery and that is a slippery slope and there arent great role models in the world of im just a believer in private sector. Without the private sector being strong, you lose your personal liberties and freedoms. If you dont have financial liberties and freedoms, you will lose your personal liberties and freedoms and we were moving in the wrong direction. Your colleagues in Silicon Valley are obviously on a different side of this and especially the immigration issue. I never use the word immigration without putting word legal or illegal in front ev ofe word. So im not sure that a lot of people are for ilLegal Immigration. So i think im for Legal Immigration. And i want Legal Immigration of people that are going to come here, get a job, and be productive members of look, two of my four founders of sun you micro systems were with immigrants and we created 230,000 direct jobs and probably five x on that indirect jobs in that process. The invent toor of java was an t immigrant. So when the travel ban came down and Companies Like google said they were sending lawyers around the country and around the world trying to figure out what do with their employees, is that the right decision, wrong decision . Not by google, but the administration. I think proper vetting is a good decision. How it was executed wasnt necessarily the smoothest maneuver. Corporate tax reform, how important well hear details today. I mean put aside health care, this for the markets is a must do. We need comprehensive, it has to be on the personal tax side as swet wewell as the corporatee its all interrelated especially when you get to Small Businesses and small partnerships. We were talking during the break about your taxes just for my individual is this high. And when i was running Sun Microsystems and we were looking at way in as a small and new startup, under 100 people, the tax burden just trying to fill this stuff out is stupid. We could have an explosion in productivity and investment if we could get to one sheet of paper for every business about and every simplification regardless of what the ultimate number. Get rid of all the loopholes, but that is how politicians get elected is either i canting lo creating loopholes. So that is part of the swamp. And i dont know how you fix that. That is human nature to want to get reelected. Does that go to things like mortgage interest deductions, charitable donations, get rid of everything . Everything. How much did you make and by the way, alice rsaid tax the things you dont want, tax the things you do want. A simple model and getting to conn sump son tax is much better and rich people do most of the consumption. But they dont couple most of their available resources. What do richl people do with their money . They invest it, spend it, that creates jobs. They save it on which lower the cost of capital which creates jo jobs or they give it away. Those are the only four things that i know other than taxes which basically take the private sector down. So youre opposed to an income tax in general . No, im not. But id like a flat tax. And that way we all if state deduction goes away, will you move out of california . I dont know what im going to do. Im kind of stuck there. August my b all my boys where going to school about five minutes from my house. And my wife but you understand the point of get. If about that deduction goes away, new york, california, a lot of northeast, do they see people leave . They are seeing them leave in droves right now. I was at south by southwest and i was talking to on a kroo ce they were moving to austin. And he said the president of my moving company says he wishes he had a Conveyor Belt to move people from california to texas. But from the other perspective, jeb bush during the Campaign Said look, florida should not be paying for new york,ing new jersey and connecticut and california to go ahead and they shouldnt be subsidizing it. Low state taxes subsidize high state taxes because of your ability to say, well, i already paid new jersey, so i dont have to pay the federal government. The big issue with all this is going to be how its dynamically scored. And to the extent that i think most of us here at the table actually do believe in some form of dynamic scoring. The question is how much debt are you willing to potentially take on or do you think it ultimately even with the dynamic scoring should math out at least to try to be revenue neutral . You have to drin the swaain move jobs out of the government sector into the private sector and you have to reduce the scope of government and problem is t twothirds of the federal budget is taking money from people who earned it legally and recontributing to other people to by votes. And we have to stop buy votes . Excuse me, to make the world better. I got that wrong. All right. Scott, stick with us. He is our guest host for the rest of the morning. When we come back though, congressman peter roskam is the chairman of the ways and means tax policy subcommittee. He will be playing a leading role in the anticipated tax overhaul. We will speak to him right after the break. Futures this morning have been up, were off the highs of the morning even though we have had three dow components who beat on the bottom line. Dow up 16, s p 500 just went slightly negative. Nasdaq up by 5. Well dig flthrough some of tho numbers. [weather reporter] governor has declared a Winter Weather emergency. Announcer soon, Insurance Companies wont pay for damages, that is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims, into one focused on prevention with predictive analytics. Helping them proactively protect the things that matter most. Get ready. Because were helping leading Companies Lead with digital. President trump set to unveil details on his tax plan, slash being the Corporate Tax rate has some concerned about the deficit. Joining us congressman peter rosk roskam. Good morning to you. Great to be with you. Congressman, be help us understand whether you would be prepared to support a 15 Corporate Tax rate and whether it has to be paid for . I think a 15 Corporate Tax rate is terrific, i think we have to make sure that we deal with passthroughs and individuals at the same time. The question about whether its paid for or not is really ultimately a question about whether we want permanent tax policy or not. We can have a short term tax policy, but its pretty limited. And if what were trying to do is influence behavior, that is bring back manufacture aring lines from overseas, have an american ren sangs essentially means make it permanent and that means paid for. We should make sure that were having a thorough debate on this and that were not taking something that is just the easy way and give heing up something that is ultimately better. Where do you stand on that fault line which is the pay for issue . Do you want to be paid for . I want to be paid for. Im straight of illinois and the state of illinois is an example of how not to approach deficits. So were now 20 trillion is in debt in this country can. My party over the past several years has raised to a point of describing our debt question as a National Security threat and now all of a sudden we walk away from are that . I dont think that is smart. The better thing is say pay for it, we have a blueprint in the house that proposals to do that, and lets get to permt tax poan policy, not a policy that turns it into a tax extender. The blueprint still has the border adjustment tax in it. Are you holding on on that . I am. I think there is a lot to be discussed about the border proposal and that gets to this whole notion of dealing with ultimately the base erosion problem. You put in the border proposal and it doesnt matter where somebody places their manufacturing baup its all going to be taxed based on the cash flow december at tstinatio. But if the rate is low enough, we become the most at track difference place to invest. But then do you want temporary or permanent tax policy. But then do you want temporary or permanent tax policy. Temporary is being roundly discussed, but in ten years well be having the same discussioning rather than recognizing that were at a National Influx shon point. It has been 30 years since the tax code has been dealt with, lets use the momentum and consensus the fact that nobody is defending the status quo, lets take advantage of that and lets drive towards a permanent change. But i think a permanent change is really worth fundamentally engaging on rather than saying, you know what, its too big and hard, lets cut the taxes and not worry about it. I think that leaves a lot of growth actually on the table. Congressman on the passthrough issue, its something that has evolved even over the past 48 hours. Your understanding of it and the implications for the wealthiest of americans . There clearly is a view that the we wou wealthiest americans, whether a hedge fund or llc, that your tax rate might ultimately be lower. I havent seen the details of the white house proposal. What the blueprint is talking about urks that is the House Republican proposal says lets lower passthroughs for the first time down to 25 for their business income. We propose to lower the individual rate to 33 and get the corporate rate to 20 . But that is all to say these are proposed and ultimately to create growth, simplicity, deal with base erosion and to make this policy permanent. That is the name of the game. Sir, you were unhappy with boeing doing business with iran. You introduced legislation that would require an examination every six months to see whether or not iran air was exclusively transporting passengers or also using those planes for other things this would be a violation of some sanctions. Do you think that legislation will goi anywhere . I think with the change in the administration, disposition of the reporting that weve seen on iran and what a bad deal it was that the Obama Administration was giving things away that were not part of the public discussion, now the question is how come an Iconic American Company is choosing do business without question the Worlds Largest state sponsor of terror and giving them a product that is airport that can be used and completely fungible from a civilian purpose to a military purpose. We know that they were using that the iranians were using civilian aircraft purposing them on a military basis and getting material into syria in the past several months. So i think this is a terrible idea. I think boeing should walk away from this idea. And i think the administration should do everything it can to stop it. Arent they in your state . They are in my state. And they should not be doing this in my state and ought not be putting their own employees in the moral quandary that says if you want to work for us, you will be complicit in assuming the largest state sponsor of terror. They should not do it regardless of where they are headquartered. And real quickly on a separate note, another company in your state is united. Given that weve been running that video for the past couple weeks now about that passenger being dragged off the plane, do you plan or do you think there should be any rules inabilitied legislatively on your end or the faa needs to put new rules in to effect that relate to this . I havent seen a new rule necessarily that has to happen. I think the marketplace has been a very severe disciplinarian against united and i think united is probably getting in front of this and they will make sure that that never happens again. Im open to discussing if there has to be a rule, but my first instinct is not to create a new rule. We appreciate your time. Thanks for joining us. Coming up, dow component boeing reporting Quarterly Results just a short time ago. Well spell to ak to an analyst the numbers. Check out the futures after the report, they suggest right now that the dowd would open higher by almost 15 points. Boeing out with First Quarter results beating estimates on the bottom line at 7 cents, 2. 01 per share. Also increased its full year outlook. Calling in now to break down the results, hourdward rubel. What do you think of the numbers . I think they are fine. A nice improvement is the reduction of cost to build the 787. That was something that we heard a lot about from the president in terms of just pricing of airplanes in general. But when you say fine, stock lower in premarket trading, why did that happen . I think this is somewhat driven by timing. We did expect this to be a tough quarter on the bottom line pretax. Were within about 25 million of where we thought they would be. So youre not concerned by the revenue miss . No, i think this is more than just a one Quarter Company and it continues to be that way both because book to bill is good in the quarter, still good demand for 737s and they have a significant number of International Opportunities for the f18. So what do you think in terms of the stock, what do you do with it and what is your price far get . We have a 200 price target we continue to recommend purchase of the shares. Tfar get . We have a 200 price target we continue to recommend purchase of the shares. Ar get . We have a 200 price target we continue to recommend purchase of the shares. Get . We have a 200 price target we continue to recommend purchase of the shares. While sometimes you get overreactions, we dont think this is a cause for concern. Ultimately what is the driver, the belief that there will be increased defense spending all over the world, are we seeing now that for so long we talked about an eare merging class all over the world. Is that story stayeding b ifadi defense story increasing . What is really stunning has been since the latter part of last year, air traffic globally has been up good 7 and 8 year on year basis. Shockingly strong numbers. And so far into march the same things. And we have an april with easter. So the outlook for air traffic frankly is beating everybodys forecast and that is driving both service and support and at some point its going to spill into demand. Second place that were seeing the global resurgence is in freight and at some point we will see more orders for some of boeings freighters and would he have in fact seen a tightening in the 7 7 m67 market. All right. Howard, thank you. When we return, a rundown of the big Earnings Reports and later Trump Administration expected to until veil a tax plan today. Treasury secretary Steven Mnuchin will speak on this issue in a bit. His comments and Market Reaction expected around 8 30 and we will take them. Take a look at the futures. Weve lost some of the gains we saw earlier. Dow up by about 13 points. S p 500 down by about half a point and nasdaq up by just three points. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. Whoa thats amazing. Hey, im the internet i know a bunch of people who would love that. The internet loves what youre doing. So build a better website in under an hour with. Gocentral from godaddy. Type in your idea. Select from designs tailored just for you and publish your site with just a few clickseven from your. Mobile phone. The internet is waiting start for free today at godaddy. Breaking news this hour, treasury secretary Steven Mnuchin speaking out about tax reform. Live coverage straight ahead. Earnings alert, boeing, proctor and gamble and United Technologies out with results. Well bring you a rundown of the numbers. Plus why twitter might be thank thanking President Trump this morning. Well tell you what the cfo of the company said as the final hour of squawk box begins right now. Good morning. Welcome back to squawk box. We are live from the Nasdaq Market site in times square. Im becky quick along with Andrew Ross Sorkin and michelle carusocabrera. Our guest host is scott mcne mcne mcneilly, chairman of way in. First lets take a check on the markets. When we started this morning at 6 00, dow futures with your up about 50 points. Now dow essentially flat. That comes despite three dow dow components beating expectations, two missed on top line expectations. Some concerns about potential growth out there. Well run you through some of the numbers in a moment. But as things stand right now, s p 500 indicated slightly weaker. Nasdaq indicated up another 3 1 2 points after closing above 6,000 for the first time yesterday. Also take a look at treasury yields. Right now if youre checking out the ten year note, you will see that its yielding 2. 33 . It has been a very busy morning for earnings. Want to get you caught up. Pepsico beating estimated by two cents, revenue beating forecasts. Results were helped by stronger pricing. Full year earnings slightly below estimates. Earnings for united tech be knowledge technologies came in above estimates and revenue above street forecast and also backed its prior full year forecast. Procter gamble beat on the bottom line by two cents with profit up y96 cents per share. That stock now down about 1 this morning. We do have a few other enings to tell you about. Boeing beating estimates on the bottom line by 7 cents at 2. 01 a share. But the revenue did miss forecasts. Jet maker also increasing its full year outlook and still though that stock down by about 1. 5 . Shares of twitter are higher this morning after a better than expected Earnings Report. The social Media Company beat on the top and bottom lines and it also added more daily active years than had been expected. 12 move from the minute it released the earnings. The cfo saying that there is some correlation between President Trumps frequent tweets and user growth, but he says its not the sole driver in the United States. Also check out shares of u. S. Steel. The company reporting an unexpected First Quarter loss. Revenue also missing forecasts. The ceo saying operating challenges prevented it from benefitinging from improved market conditions. So a stock specific issue and as a result shares of u. S. Steel are off by 18 this morning. Now on to politics. The Trump Administration expected to unveil a tax plan today. Jon harwood has given us details about the blueprint. The plan will include a 15 Corporate Tax rate and individual top tax rate between 33 and 39. 6 . Officials also telling cnbc that the plan will have a revenue place holder designed to dampen claims that it will increase the federal deficit. And its possible that this could turn into the much debated border adjustment tax. In other words, they have to be able to raise a certain amount of re new, that way they can do it with just the republican votes that they have in congress. In the next half,000 wekxt hal bring you the Steven Mnuchin comments live. Nasdaq closing above the 6,000 mark for the First Time Ever and dow coming off its second con on sk could ysecutiv gain. Joining us lifbreak it down ja bloom is with us. Question of the morning. Is it the earnings, tax proposal, what is it . In our view, its theearning earnin earnings. I think there has been a question over the first part of 2017 here about the soft ver are success hard data. People are grabbing on to earnings as a hard data point and confirmation that things are alive and well in the american economy. First quarter gdp will be lackluster. Everybody has priced that into the market. The Earnings Data is good and over time stock prices follow earnings. So i think this is driven by profitability. Are you in the same camp . I think david and i probably agree on most of those points. I think that where were really trying to help clients focus is on where are they going to find the best reliative returns. For example when you look at some of the strong trends like industrial production, resurgence of commodities, it tends to favor value stocks over growth. So its not that Growth Stocks will do poorly, but if 00 you are looking for the best i guess rising tides so to speak, we think the value probably has a ways to run here. And then a lot of trumps policy proposals are sort of up side call options on the things that are really already cramer has s there might even be a discount at this point. I think that that is a fairway to think about it. When we think about last year value ran hard into the end of the year following the election, beginning this year you saw the growth trade come back. I think its important to remember that structurally nothing about the economy has changed yet, so in our view there will be a lot of churn beneath the surface, it will be back and forth between value and growth. But if we see some of the policy outcomes that people are expecting, obviously that favors value. You just said nothing has changed in the underlining economy . Economic growth is a function of labor be force growth and productivity growth and nothing but either of those variables has changed since november of last year. So is the market just wholly wrong in november . I dont think the market was wrong, i think the market has been pricing in policy changes and changes in the economy which just havent come to fruition yet. And that is why i think youre seeing Growth Stocks catch a bit at the beginning of this year because structurally growth is still 2 . Its not 3 . If it becomes 3 now were having a different conversation. But it feels like the long term trend for the u. S. Economy is still right around we have guest after guest come on the set and say from an opportunity perspective, got to invest in europe, that this is already oversold. We would agree. Six months ago, i was not sang quinn on europe. I thought there was good potential, but we wanted to see how the political risks played out. Are you saying simply based on sundays runoff results . Well, yes. I mean, whinl yen you look at t fundamentals in europe, they are very good,ing inflation, adjusted, equalized to the u. S. They are right there with the u. S. But they have lagged considerably because of this risk haircut due to the politics and fragment tags. You really think that they will grow is this because italy hasnt grown since it got the euro. You have to look at the eurozone averages. Thats where the ecb has to set policy. That is one of their problems is that you have very strong economies and you have economies that are really lagging. So you have to pick and choose . You have to go with the middle. Like in the u. S. The fed not tightening because things are bad in detroit even though theyre overheating in new york. Ecb has the same problem. And they have to take the middle. Look at the aggregate. Jason, david, thank you. All week we are taking a closer look at Trump Administrations first 100 days in office. This hour Kayla Tausche has a run down of the executive actions and the impact on the business community. Good morning. The president has signed close to 30 executive orders, but many of them have concerned one of his key economic pillars and that is identifying and eliminating regulations deemed too costly for businesses. Six executive orders on deregulation so far including one in february specifically informed by meetings with manufacturing ceos that set up Regulatory Task forces. Each task force will make recommendations to repeal or simplify existing regulations. The Regulatory Burden is for the people behind me and for the Great Companies of this country. And for small companies. Well solve it very quickly. That order set a 60 day deadline do so which expires this week and c nblgs reached out to 20 government agencies, only five had appointed the personnel. The epa so he police its eed public comment. According to a spokesperson for the office of management and budget, we are working with agencies and compiling information as we speak. Now, the administration has front loaded some regulatory relief using a congressional rule that undoes obama era regulation. Senator republicans say that will save businesses 67 billion. But the white house has a more sober estimate of around 10 billion. And also acknowledges that its ability to use that power expires at the end of this month. That leaves congress the most closely watched regulatory bill be jeb hensarlings replacement forred to fra ed doddfrank. A hearing will be held today. Im told it could be marked up in the coming weeks, it could be voted on later this summer, but the case with all of these pieces of legislation is whether the house can actually get something working that the senate agrees with and that can make it out of both chambers. Havent seen that yet on health care, might not see it on the doddfrank replacement as well. But i can promise you one thing we will see, which is you tomorrow in person. Look forward to it. Because were headed your way. Well be live in washington tomorrow morning. We have a big show ahead. Count down to President Trumps 100th day in office. Huge lineup newsmakers including kevin brady, steny hoyer, rob portman, david schweitkert, joe crowley and wilbur ross. That is starting tomorrow 6 00 a. M. Eastern time. Stay tuned, we are be light back with much more. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade well be live in washington a. M. Eastern time. Welcome back. Making headlines, hilton hiring more than 20,000 veteran, spouses and depend eents by 202. It will target each part of its operations. The Company Began a program back in 2013 to increase its hiring of u. S. Veterans. Todays announcement would bring the number to 30,000 over the next three years. Lets get back tour guest ho to our guest host. Scott mcnealy executive chairman of Digital Marketing platform way in. In the commercial break, we were talking a little bit about what you see with the markets. As somebody who watches through this, what have you been surprised by . The biggest surprise, my fatherinlaw does all the investing for the family office, and when the dow was down 1,000 during election night, i called him and i said buy in the morning. Lets get on it. And he said all right. And by the time the morning happened, it was back to even. He said well, it will go down. So lets wait. And what has happened is we havent had the lie detector test. Weve had kind of a little less than 1 change. So its been no chance to get in n. And i key saying when is it going down, when is the correction . Youre talking about the pattern, not a reference to donald trump. No, no, the previous my twitter is blowing up bad enough. But there hasnt been a correction where you can get in if you trust it and its been a really steady almost like there is no until certainty and huge confidence that things are getting better, which is hard for the investor to find when to get in. Because if you keep waiting for it though youre missing and missing and missing the runs that have happened. Exactly. So when are you ready to capitulate . I dont know. You obviously could do a lot of Venture Capital and private investing. When you look at your whole family office, how much is in the stock market versus money directly into companies that you can dig into . Well, its been heavily invested in the bond market over the last ten years or so because i just wasnt trusting what was going to happen. Now that its there,s id li io get more into equities. I do a lot of Venture Investing just because its fun and it pays off, but i do that through venture funds. And i codo advising for stock. I work for stock. You talk about venture in the valley. Any thoughts on uber and what is going on there are . Seems to be a relentless number of stories raising questions about what is going on there. Plus we heard just yesterday that the privatation oe valuati the company has come down. I think the moat around uber wasnt as big as people might have thought it was. A Business Model issue not a culture issue . I think there is a little of that, i think some selfinflicted wounds there. But they are walking a tight rope in terms of wanting to be not owning the employees and theyre not contractors, they are independent contractors. But i also think that if youve ever gotten in an uber or lyft and didnt say im on two or three. And that is great and were getting good prices because of it. But that is your point about the moat, the barrier to sgri sb entry was not merely as high and so they face more competitors. Exactly. A duopoly hasnt even gotten established where they can manage prices more aggression suffering a grefls agrees safely. What do you think of google and facebook right now . I think they are killing it. But aol was going to be the end all in mail, remember . So the market will create competition. Were just waiting. It hasnt happened yet, but sometimes you get a clear monopoly and it becomes too persistent. I always say if a politician says something is too big to fail, then the politicians are failing in executing on the sherman antitrust act and they should be broken up. We shouldnt have anything that is too big to fail and we should only do in government those thing bes that absolutely are natural monday on thopolies. Im not saying no government, i think there are roles like state and the Court Systems and Law Enforcement and defense and other things that are natural monday monopolies. But let the mar kert decide. And if somebody grabs and runs too hard, break them up. So back to facebook and google. When you have very high margins, attract competition, right, those are the big target. People know that there ive heard ceos say if your margins are too big, youre probably charging too much. And that has happened. Facebook and google have basically given less money to the content creator and are charging more to so they have squeezed both sides of the advertising maneuver to give themselves more margin, more power to them. But at some point when you get that price so high, then all of a sudden change hits you hard and aggressively and it becomes tough to of will sounds like a yogi bearism, nobody wants go there anymore, its too crowded. It happens. Where do you stand on amazon right now . And i get asked this question all the time by corporate cios. I say put 60 of your cloud stuff on one. There is azure, microsoft, google cloud and aws. Put 60 on one, 30 on another and 10 on the last. And then when you have peaks, just go do an auction to those three and that makes sure your barrier to exit from one cloud to another is zero so that you can just move back and forth and you can and if one fails, youre protected, too. Yes. Does that mean its a came modtized service . Depends on whether you are using the special unique feature of amazon or youre forcing your company to use the standard platform on that is available across all three. But increasingly all three are trying to add new functionality. First heroin is always free, but then youre locked in and then the cost is the barrier to exit grows and gross. That is the buteauty of the orae market. Barrier to exit was sock 404 and the rest was near infinite and they always charge 5 less than the cost to get off of it for your next contract. And thats why that model works so well. All right. Scott is our guest host this morning. Well have a lot more to talk about. Thank you. Coming up, getting down and dirty, but it will cost you. Well tell you about a pair of jeans that is stirring up controversy on social media. That story next. Commerce can department slapping the new tariffs on canadian lumber. The president directing aides to draft a plan that cuts the Corporate Tax rate to 15 . I think they can get a deal done at least on the business side and three or four honmonth. An estimate that it will add 1200 bucks to the sale price of a newly built home. Welcome back. Take a look at shares of chipotle. The fast food chain reporting better than expected earnings. Same store sales rose a whopping 17. 8 in the First Quarter, well above the streets forecast. That e ko. Coli thing long in t past. But also telling investors that it experienced a data breecach. Customers who used a credit card in the past month could be affected. Good news bad news scenario. And check it out, nordstroms new jeans have are social media buzzing. The retailer is selling mud covered jeans, but if you want a pair, it will cost you a whopping 425. The jeans described on nordstroms site as americana work wear that has seen hard working action with a crackled caked on muddy coating that shows youre not afraid to get down and dirty. Becky and i have options, we have sons who would be happy to muddy your jeans. Well start our own web item. Website. And well sell them half the price. Item. Website. And well sell them half the price. It almost sounds like a joke to me. If it were april 1, i would wonder. Dont pretend like youre a working person when youre not. A little insane. But, yes, well do it for half the price. All right. Normal people are getting their first chance to ride in googles selfdriving cars. Waymo will begin testing a program for hundreds of families in phoenix. Googles Autonomous Vehicle group says it hopes to learn what potential customers want from a ride service. It includes human operates behind the wheel just in case intervention is required and to take feedback from the customers, as well. Ive come a long way on this. I used to think no way, i would never be a fan of this. Oh, come on, i cant wait. Now that my kids are getting towards driving age, im all in favor of a self driving vehicle. How soon before i can just read instead of it will be hard like when we did electronic commerce, ebb was afraid that you would lose your credit card and go bankrupt. Thats not on happhappened to a. The biggest challenge is the first time a driverless car hits a pedestrian and its happening all day long that real drivers are hitting pedestrians. Its not a news item. So that will slow it down. But it will be inevitable. We talked about google before with. When you look at googles Earnings Reports, they are a search company. But we give them all this talk because of all this other stuff. If you were ceo, would you be spending this money on all this other stuff they do . Its called drones. Yeah. You have to. Either that or you just become a post office box virility checks for the search business. Microsoft had that same challenge. Windows and office. Do we just give that out in dividends . Some would argue that that would have been a better Business Model back in the old days rather than trying to get into xbox and all the other things. And that is the question google has. But i think they are being very effective with what they are doing. How many years . Its happening now. But when were all in one. I dont make predictions. Well leave that. Coming up when we ruseturn, sten mnuchin about to speak about tax reform. We will bring you that event live. Used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Welcome back to squawk box. We are waiting Steven Mnuchin expected to make some comments about the administrations tax s proposal and here he is. A pleasure to be here with you. Weve been meeting weekly with chairman brady and people at the senate on tax reform. So since the president has been in office, this is something weve been working on very closely. I think as you know we have over 100 people in the tax department, treasury who have been crunching numbers on lots of Different Things and lots of different ideas. We had a very successful meeting last night. And i think its clear that the house, the senate, the administration are all on the same page. That tax reform is a major priority to boost the economy, that fundamental principles of making business tax competitive, we have a very uncompetitive system that is hindering business and jobs and we want to simplify the personal tax system, lower taxes and create Economic Growth. So this will be the biggest tax cut and the largest tax reform in the history of our country. And we are committed to seeing this through. Does the plan include transportation provisions or is it just strictly tax reform . This plan is just tax reform. Okay. Does it include the house plan on border adjustment tax . Let me just first say we are going to release the details later today. So i wont go through all the specifics with you. But i will tell you on the border adjustment tax, weve been talking to chair can mbrad speaker ryan for a long period of time and there are many aspects of it we like, there are certain things that were concerned about. What weve discussed is we dont think it works in its current form and we will continue to have discussions with them about revisions that they will consider. So that is where we are and its been very productive discussions with them. Just between us just between us and tv and a couple hundred people here. You can say whether this will be legislative text or not, or just a plan . Again, our objective is were coming out with the principles today that are the plan. And we are going to work very closely with the house and senate, we are meeting multiple times every week with them both on the staff level and on the leadership level, to reach an agreement that will turn into a bill for the president to sign. So our objective is we will have a combined plan that comes out incorporating the principles that weve all agreed on. Its been reported that the trump plan will lower the corporate rate tax to 15 swels f as well as for passthroughs. I wont put on the specifics, but how do you pay for it, are there significant offsets . Let me just say that i wont if go through the specifics, but since the 15 has been in the press for the last couple of days, i will confirm that the business tax is going to be 15 . That is what the president said in the campaign. He thinks that is absolutely critical to drive growth. And what id say is people talk about passthroughs. What we think is important is Small Business. And we are committed that Small Business owner operators will have the benefit of the business rate. What this is not going to be is a loophole to let rich people who should be paying higher rates pay 15 . This is going to be for Small Businesses that drive the economy and they will have the benefit of this. Are you sticking with the socalled mnuchin rule that there will be no absolute along those lines tax cut for the wealthy . Again, well get into that with the details when we release the plan. But again i would say our objective is simplifying personal taxes. For most americans, we think they should be able to do their taxes on a large postcard. And were very pleased at the irs with the number of returns that are electronical electronically, but the average american should have simple taxes. And for a large part of people, they wont be paying taxes. There will be personal exemptions and for people who conditions afford it wont be paying taxes. Initially you said you wanted to get the will to tbill to the president s desk by the august recess but then health care didnt pass and youve adjusted that to sometimes this year. Just breaking that down a little bit, are you looking for the house at least to pass it by the august recess to show some movement before lawmakers get out of town . Again let me say that the commitment that came out of the group last night is we want to move this as fast as we can. So that is what were committed do. Were committed to working getting this thing done, getting everybody in the room and getting this passed. So that is what you will see. Were working hard to get it done quickly. And i would say in terms of Economic Growth, the president and i and others in the administration fundamentally think we can get to 3 sustained Economic Growth. That is very achievable. Tax reform is critical to it. Regulatory reform is critical to it. Weve been working very hard on the president s executive orders and we are focused on creating Economic Growth. And youve said that growth would pay for the plan . Absolutely. The strategy for passing this bill as you know tax reform hasnt been done since 1986, that was bipartisan year. Its about time. So are you viewing that as the model or are there things in the plan that democrats should like or do you think that mostly republicans will have on unite and carry this across the finish line . Let me just say we dont start out for what the model is. We start out with what we think should be passed. Im hopeful that democrats will work with us on this. This is about tax cuts that are good for the american people. And i hope they wont stand in the way of creating tax cuts for Small Business, to making business competitive for simplifying personal taxes. So were hopeful that its bipartisan. But as you know, there are multiple ways of doing this and the president is determined that we will have tax reform. As a matter of fact he called me at 7 30 this morning and we went over plans for the day. How involved has he been . Hes been very involved. Hes been involved in the economic policies as i said for over the last year as we did this on the cam can pakacampaig spent a long time with him yesterday in the oval office going through the final details of the plan. The tax cuts of 2001 had an expiration date. Is the goal to make this permanent or would you accept some temporary tax cuts . Again i would say the goal is to make it permanent, but there is lots of levers here. And if we have them for ten years, that is better than nothing. But wed like to have permanency to it. But though details wiug those dd out. Critics say that the Health Care Bill didnt have a clear message. How will you sell this tax plan to the American Public . Do you want the president to go on the road to sell it, what will be the marketing message plan . Some people have said you should call it a jobs bill. This is about Economic Growth. Thats what its about. The difference between 1. 6, 1. 8 and 3 gdp is staggering. Its drill i dont understatril revenue, tons of jobs. This bill is about creating Economic Growth the and jobs. And youre right, we should call this the 2017 tax reform for Economic Growth and jobs to make America Great again. Thats good. Now, obviously this is washington, so on a lot of speculation that there is a plan b, that tax reform is so hard to do and that plan b would just be going to tax cuts at some point. How do you radio view what s the success model, do you want the whole thing or will you accept something down the road . The success model, do you want the whole thing or will you accept something down the road . Well get the whole thing. We like hard challenges. Thats why the president is here. Hes taken on a hard challenge to make America Great again and hes determined do it. As i said, this is the center and core of his economic plan. And weve met with hundreds of business with leaders since hes been in office. While we were on the campaign, we met with thousands of business leader, smaulg businll businesses, big businesses. The one thing we heard more than anything else is people want tax refo reform and Economic Growth and less regulations to put people back to work and make american jobs. Sean spicer that the administration will be driving the train on tax reform. Is that true, is the administration going to be the driving force with this plan that you will unveil this afternoon . I think its clear that the administration is going to provide leadership. But this is going to be an effort working very closely with the house and senate and incorporating. But i think it was very important to the president that we put out the core principles, this is part of his big impact for the first 100 days. Weve been working on this a long are time. And we have fundamental agreement on what were trying to do and the details of tax reform are still to be worked out, but were confident that we can work with the house on and senate and get something on the president s desk to sign that will create Economic Growth and jobs. Have you reached out to so treasury secretary Steven Mnuchin speaking about with tax reform, outlining some of the things that we will hear more about later today. Some of the headlines that you can take away, he did say that at this point the border adjustment tax is not something that the administration favors. He said we dont think it works in its current form, however he did say that they are discussing all kinds of revisions with both brady and ryan. Paul ryan and mr. Brady from the ways and Means Committee. He also talked about how hes not going to let rich people use the passthrough, that is not in their plans for doing that in the corporation so that they would be getting the 15 tax rate. Talked about a lot of different issues including gdp, how they are looking for 3 sustained gdp. Although he did say that tax reform is a key part of that. Lets turn back to Scott Mcnealy who is executive chairman of way in. And scott, what did you think about the very opaque details were hearing, just the general direction . The general direction sounds fine. Again, you can dynamically score it and all the rest of it, but the one issue nobody wants to talk about is the 20 trillion in debt and increased deficit spending and we have the infrastructure bill looming out over things. And i just dont understand how we can keep i mean, the problem with the deficit is that its a tax on everything valued in dollar, all income and assets. And its its kind of a senatorial tax that just happens with inflation. So youre a skeptic on the idea that you can grow your way out of additional spending . No, i think you can help, but you have to help it by getting more dollars into the private sector. No not doing that through borrowing more. I was surprised how you ardent he was to say that the passthrough wont be something that rich people can use to get out of what they should be paying and then let me also be clear that a lot of people wont be paying taxes at all. I mean i heard you say earlier like a flat tax and what hes talking about seems to be an even more progressive tax system where more of the burden is born by the rich. Yeah, i think everybody is speculating and maybe well get that correction can im looking for in the market when people get confused about what tax you will have. Were speculating, but Steven Mnuchin knows some of the Details Behind the scenes that well be hearing later today and that is a point that he has been steadfast on since even before his actual confirmation where hes come out and said people in the middle class will pay less, people who are rich will be paying more. Last time i looked, it was the legislative branch who defines all this. Hes putting a request out there which has been ignored in the past already. He was asked specifically by the interviewer are you guys driving this bus or is it and i think essentially yes, the white house is in charge. So it will be interesting. Its a big topic of debate, something that we will be hearing a lot more throughout the day. And a little later, wield ell getting Additional Details as we would. When we return, a round up of todays top stories and tomorrow well be live in washington, d. C. Among the newsmakers joining us, kevin brady. That starts tomorrow at 6 00 a. M. Well have kevin on at 8 40. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Welcome back. Treasury secretary Steven Mnuchin has been speaking. He said the debt ceiling will absolutely have to be raised in the fall. He also said it will get done. And mnuchin saying that growth of 3 is very achievable, we talked about that a little before. He said tax reform though is a key part of that. Didnt give a time frame for when they expect to see 3 , but said that he thinks its very achievable to get 3 sustained gdp. Among the other stories front and center, Mortgage Rates are now at their lowest in six months. Average 30 year Mortgage Rate at 4. 2 , that helped spur a 2. 7 rise in Mortgage Applications last week. Check out shares of warehouse retailer costco. That Company Announcing a 7 per share special dividend. Payable on may 26 to sharehol r shareholders on record or of record on may 10. Costco also raised its regular Quarterly Dividend to 50 cents from 45 cents. Where is the arbitrage . Id buy it right now because its not even up 7 bucks on that news. You would think. Finally we finally well get the weekly look at oil and crude. Over supply fears, those numbers come out at 10 30 eastern. And when we come back, well get right down to jim cramer. He is live at the New York Stock Exchange. Well get his take on todays top stories and some of the earnings numbers that are out there. In the meantime, here are the futures right now. Trending a little higher. Dow futures up by about 25 point, s p up 1 1 2 and nasdaq up by 6 of a der a big day of gains where the nasdaq actually closed above 6,000 for the First Time Ever. After a big day of gas where the nasdaq actually closed above 6,000 for the First Time Ever. Whoa thats amazing. Hey, im the internet i know a bunch of people who would love that. The internet loves what youre doing. So build a better website in under an hour with. Gocentral from godaddy. Type in your idea. Select from designs tailored just for you and publish your site with just a few clickseven from your. Mobile phone. The internet is waiting start for free today at godaddy. Treasury secretary mnuchin is confident that a deal will get done welcome back, everybody. Lets get to the New York Stock Exchange and jim cramer. We have been waiting to talk to you all morning long earn the earnings. The dow components managed to beat on the bottom line but the stock prices havent worked out quite as well. Procter gamble whats the problem there . Is it the sales . Procter gamble, low quality and that organic growth just not enough. Im actually kind of surprised that unilever has better growth. And going back and forth with phil lebeau, the number looks good, but not enough. The number that i think is wrong is United Technologies. That was one of great quarters of the industrials. Im putting that in the camp of what weve got the other day with mcdonalds, with the caterpillar. It is rather extraordinary. Very strong returns on some of those things. Im surprised by the commentary that i have seen in the few press releases. Procter gamble, pepsi today. Talking about how tough the markets are. At least in some global areas, particularly emerging markets. Procter gamble cfo talked about saudi arabia, how difficult that has been. My general take on this, this has been a great earnings season, but surprising to see how them talking about how it was a tough quarter and there are difficult places around the globe. Whats the true story right now . I think in areas that theres competition, competition in snacks and beverage, i still think pepsico did a great quarter. But where there is competition, the supermarkets play them against each other and i think that does matter. But when you have the fantastic Worldwide Organization like mcdonalds it turns out you dont have to worry about the competition. 3m, no one paid attention to it. Caterpillar, that stock is so early in its turn. So i think we look at the Capital Equipment companies that are benefiting from return in asia and a fabulous one in europe. But they have had a pretty decent its difficult to go up against unilever which is kicking butt everywhere. Wow, a great job. How do you arb the costco move this morning . I dont know a huge dividend coming. Not really. I mean, you know, theyre going to report a number. Youre going to be in there. Yes, can you like try to hedge it for 7 bucks . Its not worked before. They have done these before. Instead of i think you just own it and you enjoy it. Love it. You are a costco fan. We know youre a costco shopper. Well, look, we go, we take the suv. You know . Who does anything in bulk. I mean, even amazon doesnt do the job that costco does. I think the cost deflation in food is over. They wouldnt have declared the 7 give dindz. The stock can go to 200. Great. See you at the top of the hour. Tomorrow on squawk box we will be live in washington with special coverage of President Trumps first 100 days in office. Well be speaking to the most influential names in government, including kevin brady. House minority chip steny hoyer and senator portman and david swie kert. And aaron levy will be joining us. A big lineup tomorrow. Stick around. Well be right back. She cant become a guitar legend just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Its been over 100 years since even if its chasing squirrels, the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . So treasury secretary Steven Mnuchin just finished talking during the q a that we were showing you live. Made a few more comments on financial regulation. He said President Trump has asked for a broader view than just reforming dodd frank. Mnuchin said that the administration is close to naming the next Federal Reserve vice chair for financial regulation. And this is in addition to all the previous comments we were telling you about when it comes to the rollout for Corporate Tax reform. Right. Maybe one of the big headlines on that he said that the border adjustment tax, he said we dont think it works in the current form. He did say theyre discussing revisions with both paul ryan and kevin brady and kevin brady will be our guest tomorrow. Well talk more to him about it then. Our guest host is scott mcneely, the former ceo of Sun Microsystems. Scott, we have talked about a lot of different issues and one thing we have not talked about though is giving back. Ago how to make more money, what do you do with it . I tell my four boys, to those whom much is given much is expected. My give back is in education. And its www. Curricy. Org. We have the huge lego bucket were assembling and well have a freon line selfpaced on demand real time scored web enabled multimedia educational experience all there for the taking. No child, parent or teacher held back. Thats what were giving to and if anybody wants to donate to it its a great cause. We spend 8 to 15 billion a year on curriculum. Ten plus ten will be 20 for a long long period of time. We shouldnt be using textbooks but the electronic methods of delivering this curriculum. Scott, thank you for oyour time. We appreciate it. Were continuing to watch the futures today. We had three dow components that are out. Two trading lower. One higher. Make sure michelle, thank you for being here. Make sure you join us tomorrow. We will be in the nations capital. Squawk box and squawk on the street i should say starts right now. Good wednesday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber at the New York Stock Exchange. Futures have been ticking up slowly as we learn more about the white house tax plan set to be rolled out this afternoon. Mnuchin as you know has already made parts of it public this morning and well cover it all along with the boat load of earnings. Our road map begins with the trump tax plans. The details