Transcripts For CNBC Squawk Box 20170601

The cac is up by three quarters of a percentage point. Italian stocks up by 1 . The dax and ftse both up by a third of a percentage point. If you look at crude oil prices, there was some additional pressure that came into this on some libyan output recovering from a technical issue at an oil field that has concerns about whether opec and all of the production halts that the production cuts they continued will really be that effective. Things are picking thank you morning. Starting at the base of 48. 61. Breaking news for you. U. S. Paints maker Ppg Industries will not make a bid for akzo nobel after several informal offers have been rejected. Under dutch law ppg cannot approach akzo nobel for another six months. A check on shares of both of those companies. Akzo nobel down by a point and a half. Ppg unchanged at the moment. Thats the one to watch later today. On todays agenda, Dollar General reporting before the open. Broadcom and lululemon are out after the close. A ton of data throughout the morning. Adp, private sector read on jobs, weekly jobless claims, revised productivity and costs, ism manufacturing, construction spending, auto sales are all out today. Fed governor jay powell will speak at 8 00 a. M. Eastern and then sit down with cnbc for an exclusive interview with squawk on the street at 10 00 a. M. So a lot to follow there. Speaking of central banks, San Francisco fed president John Williams is expecting three Interest Rate increase for the year but says four could be appropriate. Speaking in south korea this morning he added he doesnt expect any changes to fiscal policy to impact the u. S. Economy this year, but they could have an impact on growth in the next several years. Williams not a Voting Member of the fomc. A bit of corporate news, another Top Executive is leaving uber. This time its the head of finance. This is important especially when you think about whether the company will have an ipo. Uber reported a loss of 708 million in the First Quarter, that was narrower than the 991 million loss reported the previous quarter. Revenue grew 18 . The privately held company is not obligated to publish results but has been doing so since april. Some people look at numbers and say thats good news. Some people look at the numbers and say thats a business thats been around for quite awhile, still losing money. Not a little money. A lot of money. Part of that is development. Thats a quarter. Thats almost its not a billion dollars, wasnt it close to a billion dollars a quarter . Absolutely. Then the other piece is is mr. Kalanick jeff bezos . The amazon strategy was market share, market share, market share. Needs to be profitable. Theres still expansion. Is it still building out the network or is it hard to make money with that model . I think the argument is theyre still building. Still in the growth phase. Ive done it i have done it a few times. Weve done it. Even to go to the airport. Wow. But theres a lot of times where its, ugh, i dread it. I dont know why. I dont know where it will be, how long it will be. The anxiety factor. Im just not sure. I dont love it. I dont use it enough. There have been other services he has been using. To me the larger question is can other competition just come into any market and take it . How defensible is this . I think two or three years ago we would talk about uber saying they will become the last Mile Delivery system, not just this is a taxi system but is there something larger here going on. I think thats what Travis Kalanick has had in mind. Larger issues, being more than a transportation company. But then you add in these terrible headlines over the last six months t becom s tshgmonthse complicated. It feels very bad piling on on a week like this with his parents. This has been a very challenging week for him. They may have a grace period. Theres other news. Coming out of washington, u. S. Commerce secretary wilbur ross says he hopes complete talks in this nafta reg negotiation nego early january, well before mexicos election in july of next year. Speaking at an event in washington, ross said the Trump Administration would impose antidumping and antisubsidy charges on mexican sugar and canadian soft wood lumber. The deadline for a mexican sugar deal is june 5th. Hillary clinton speaking out about her election defeat at the code conference yesterday. And it even got the attention of the president. Eamon javers joins us now with more. Good morning. Good morning, joe. It was a rare public appearance from Hillary Clinton. An opportunity at the code conference from re code in california to reflect on her election loss. Offer thoughts on why she lost and thoughts on the current president. She said she felt the email scandal this was one of the central facets of her president ial campaign was a nothing burger. Heres what she said. In the book im using everything that anybody said about it besides me to say this is the biggest nothing burger ever. It was a mistake. I said it was a mistake. If i could have turned the clock back, i wouldnt have done it, in the first place. The way it was used was very damaging. She also implied there must have been some collusion with some americans in terms of the russian involvement in the 2016 election. Heres that moment. The russians in my opinion, based on intel and counter intel people i talked to could not have known how best to weaponize that information unless they had been guided. Guided by americans. Guided by americans. Hillary clinton there clearly saying she thinks that somebody inside the United States helped the russians in terms of their intervention into our election last year. Not specifying who that might have been. Those comments did get the attention of the president of the United States who put out a comment on twitter saying crooked Hillary Clinton now blames everybody but herself refuses to say she was a terrible candidate. Hits facebook and dems and dnc. Hillary clinton responded saying people in covfefe houses shouldnt throw covfefe, making fun of the recent president typo. Thats the state of american politics today, where people are hurling insults at each other. The president today will make an announcement today on the paris accord. Heres what the president tweeted about this last night. Saying he will make the announcement in the rose garden today. Make America Great again says the president. Thats something to look forward to. We know the president has been getting inbound calls from ceos of a lot of American Companies asking him to stay in the paris accords. Well see what the decision is at 3 00 today. Eamon, theres been a conversation on the accord about what kind of language he could use in that perhaps he can get out of the accord, but then use language that could that you could strad tl mrdl. What conversation are you hearing about that . Ultimately the white house knows it will make enemies here. Ae lon mu elon musk saying if the president pulls out of the paris accords, elon musk will pull out of the counsels that he sits on. The white house saying once we make this decision, its not a slight at any particular person. The middle ground option of finessing this, straddling it would be politically appealing. He will make some friends, too. The journal saying withdrawing is in americas economic interest, and staying would not matter much any way. Heritage foundation said that. You make friends with both decisions, also make enemies with both decisions. Hillary last week said nixon got impeached, didnt make mention that her husband got impeached. Nixon never was impeached, right . Right. And the poor ndnc did not help her. She said the dnc was bankrupt, antiquated. The dnc people were including together that was a big ka ba kabal. Donna brazile right. She says she regrets that decision but provided some information to the Clinton Campaign about what was going on. I felt bad watching that yesterday. I didnt watch it, but seen some of the sound bites. I am an empathetic guy, eamon. Are you . Empathetic guy, and i felt bad for her. Still do. Tough to lose. Very tough. Eamon, thank you. You bet. For talking to us this morning. Happy to be here. When it comes to the market, so much for sell in may and go away. The s p 500 was up more than 1 last month. Joining us for more on the markets is joe tanneus. Beth ambivino is also here. Thank you both for being here. Joe, what do you think . Is this a time to be fighting the market . It had quite a bit of momentum for a few months at this point. We have some broad based economic strength not only here in the u. S. But also abroad. At the same time political risks have receded. To be clear, when i say that i mean in europe. To be clear, were not completely out of the woods here. Even despite valuations where they are here and around the world, i think if you look at the underlying drivers of market returns, look at whats happened in earnings season the First Quarter here and abroad, that in itself will be supportive of the equity markets moving forward. All right. Another issue were watching is the jobs report. Beth bethann, the beth beige book was out yesterday, saying there was a tightening in the labor market. A u. S. Bank study says 61 of Small Business owners are having difficulty finding qualified people to expand their businesses. When we look at the jobs numbers, we have an Unemployment Rate of 4. 4 , which we think will tick up. Thats largely because kids are coming back from school. Theyll enter the jobs market. Youll see a bump up there. But were looking for 185,000 job gains. Thats a slowing down from where we were. Thats all good news. And that tight labor market means wages will climb higher. So we can expect bigger paychecks down the road. The fed has been watching this saying inflation is not there but they think its out there even though its not evident yet. Thats why theyre thinking theyll raise rates a couple times this year. We see the fed as in a sweet spot of where they would like it to be. Go back to 2008, they would dream of this day where you see jobs market that is near employment, near full employment. Inflation is climbing higher, but not a real threat. So they can take their time. We expect a rate hike in june. Another one in september and theyll tackle that Balance Sheet later this year. You say take their time, does that mean you dont think it will have adverse effects on the economy when they do start the moves . They say expansions never die of old age, they are usually murdered. The prime suspect is the fed. Right now, thats when the fed gets behind the curve. With inflation tame, they can gradually raise rates. Thats what theyre hoping to do. Things can change, but at this point in time just a few every year until they get back to normala a normal. We have never seen a Balance Sheet this big. We dont know what will happen once they start tightening it. In terms of the Balance Sheet, its very big. Over 4 trillion. What we think theyll do, we think theyll make the announcement later this year. Theyve already been hinting at it that they want to deal with stopping or slowing down reinvesting the proceeds from their bond holdings. They will do that at a gradual pace. Maybe 130 billion a year they reinvest. Once that goes down to zero, then theyll address the large Balance Sheets. They say they would like it to go on autopilot and roll off the Balance Sheets. This would take it to 2020 or later for it to get back to normal. Normal being 2 trillion . Back to normal. They readvised it. Its around 2 trillion now. Earlier 1. 5. It will take some time and a lot of things can go wrong. But theyre expecting they can just let it take care of itself. Joe, you said were not out of the woods when it comes to politics in europe but things are looking better. There are all these headlines about what happens with the conservative party vote in london. Polls have shifted against it. Is that the next thing youre watching . Is there Something Else . Certainly the election and the votes in london will be key. Moving beyond that we have a few more elections. In germany we have the election, we have the italian vote. In europe youre in the midst of a cyclical economic rebound. There are still a lot of structural issues. People point to europe and the u. S. And say there are a lot of opportunities there. There are opportunities in europe, but investors need to cautiously and opportunistically put money to work. This tug of war that we see between further unification and more separation, i think this will continue to be a headwind for investing in europe. The financials were weaker here in the United States yesterday. What do you think about the prospects for the financials, particularly with the fed saying it will raise rates another couple of times . I think a lot of the negative price action had to do with commentary surrounding Second Quarter profitability. You from a longterm investor, you have to look at whats happening with financials and the economic back drop. You have now the fed as was just mentioned preparing to raise rates again. I think higher shortterm rates will be a positive thing for financials, at least u. S. Financials and banks. Absolutely the flattening yield curve will have a negative impact on profitability. I think were aways from actually seeing that materialize. Again, this is all against the back drop of a healthy consumer, healthy corporate sector. I suspect that will continue to be a driver of profits for financials moving forward. Thank you both for coming in. Malta. Yeah. Elections in malt tafrmt. Beautiful place. Its a great idea. You keep suggesting ambassador. You are taking pelleys spot. I will go to malta. One of the best performing economies in the european block. Good time to step in. Guess what their gdp has been . 6 . Wow. 6 . Snap elections. What are they doing right over there . Pretty nice place. How do you throw your hat into the ring . Did i just do it. You just did. Its only 400,000 people. Manageable for an ambassador. Life expectancy of almost 82 years. 82 years. Good for you. Couple more years then. I will wait to find out whether ari can work out this thing with you. All right. Coming up, some of the biggest names in media sounding off at the code conference in california, including shari redstone, reid hastings. Well talk about their comments next. Most etfs only track a benchmark. 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. Theres nothing traditional about my Small Business. So when it comes to technology, i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well, that it feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. Welcome back to squawk box. We heard from some of the biggest names in media and tech at code conference including re reed hastings. As we grow membership base, we want to grow the content budget. Theres so many great shows on net fliflix but so many shows w dont yet have. We will try to get more shows, more movies. Its this new age of television. Nobody is sure where its going except the quality of movies and tv shows is continuing to climb. Shari redstone had a similar message about content at the late session at the code conference yesterday. Content is being valued more highly than it ever was before. You know, my dad once said content is king. I think what youre seeing now is Technology Companies realizing they need that content. They need that original content in order to succeed and have the relationship they want with the consumer. Redstone said she believes she made the right call late last year when she decided not to merge viacom and cbs. I have a great relationship with les. I think we could have worked well on a combined company. At that point in time, you look at the valuations, we were undervalued. The change for me was oh, my god, there is potential here. There is opportunity here. We can do this. We also heard from time warners ceo, jeff bukus. He said he is not worried about trump blocking the deal with at t. The rules on what is pro competitive and what isnt, the assessment of that is properly done by the department of justice. I dont think who is occupying the white house changes that. Were not particularly thinking that that is a significant factor. I think in this case hes right, given that this is really going to be a doj story and a story in court if someone were to block it. I think the working assumption is not its been a long time. Towards the end of the year. Shari read stodstone i think wa right. About not merging the two . We dont know if viacom could come back. If you put them together, wouldnt you have gotten in the same place . I do prefer spongebob to survivor 94. What are they doing now . Worms . Poor moonves. I love needling him about that. I think hes doing okay. Im not in their demo. They dont care whether i watch survivor. Is that where Hillary Clinton was yes. Its a tech thing. Its the re code conference. Why would they invite her . She thought wiping a server meant with a cloth. She didnt understand the term wiping a server clean. This from a man who just learned about binging. I know you had to binge. I have never seen a netflix i didnt know they dropped a whole season. I binged sons of anarchy. I binged the wire. We tried to binge bloodline and how did it go . 35 minutes and we were asleep. That was not a commentary on the content but your sleeping habits. It was a commentary on my ability to binge. For me a binge is making it through the first episode. Were there margaritas involved . There were margaritas involved. You would need a margarita with bloodline. Or an umbrella drink that you prefer, probably. Always. If the drink comes with an umbrella, that makes me happy. I know. The man who admits he drinks chardonnay now. I do. But im paul mccartney. I like a margarita and a nice is that right nay. That charred n chardonnay. We have the tranquillity stone. Larry summers, andrew, Andrew Ross Sorkin. I will be rubbing my stones the entire show. What is that . The company that makes what the heck is that . The braces . No. Our resident tech expert. Yep. Braces are technology. You are getting better. Your insults are razor sharp. Putting a price on the smile that makes invisaline happy. Well talk to joe hogan next. Heres a look at yesterdays winners and losers. Its all yours. Wow record time. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading Companies Lead with digital. Welcome back. Youre watching squawk box live from the Nasdaq Market site in times square. Good morning. U. S. Equity futures at this hour my hair idol is on set. The dow jones up 10 points. Nasdaq again strong on a relative basis. And the s p up 22. 70. Did you see comcast again yesterday. It went up. Another 60 to an alltime high. Now 1 197 billion market cap, which is above verizon. Now i have a new who gets to a trillion first, i dont think it will be amazon. You think comcast . I think comcast might get to a trillion dollar. Parent company of this flet wor network. Did i leave that out . You did. The rize of tse of the selfi affect your smile. We have joined by jeff hogan of align technology, the Company Behind invisalign braces. The moment he walked in, i was looking at his teeth. I had invisalign a few years back. As an adult . I still use it. You still use it . You have to every night. I did it. You told me not to have it, but its easier a little piece of metal right behind. Because they slowly move as an adult . Yes. Ive been in this role for two years now, i never knew your teeth moved through your adulthood, but they do. Do you wear them . I do. I came into this job with these teeth. I had them corrected. Once you get into it and understand it. I had some overcrowding. Its a great experience. Its more complicated than you think. There are lots of processes that go through it, but it works. Im to the point now where my teeth hurt if i dont keep them from moving again. Yeah. So, tell us, this stock has been on a rocket ship, but so has the business itself, which is to say its growing. What is happening . Is it an interflash nanational story or demographic story . Its both. Our growth internationally is 40 , 50 . Where . What countries . Weve been doubling every year in china for the last four years. Even australia and different areas are going well. Moving over to europe, i lived and worked in europe for a lock period of time. You associate that with slower growth. In spain weve been growing 50 for the last five years. This is an analog and digital conversi conversion. We have taken a system that can digitize the movement of your teeth, and it replaces an old analog system where you glue metal. It used to be just an orthodontist would give you the invisalign system. Now a dentist will do it. Yeah. Theres a new company, direct smile club, which sells to customers. But a major part of our growth is orthodontists. Were less than 10 penetrated with the orthodontic community. What about in the United States . What Growth Numbers do you see here . In the u. S. , low 20 growth rates for clear liners in the First Quarter. Ultimately does this take over the traditional absolutely. Orthodontistry business that we know. Just a matter of time and how fast. I dont know on this, do you have real competition in this space . Or because this is still under patent . Its been under patent for 20 years. Those key patents come off at the end of this year. But its not a patent cliff. Thats what a lot of investor have been asking. Theres two reasons. First of all what comes off is a design you do digitally. We do 200,000 unique parts a day. To put those things together and to make it in scale takes time. We have i. T. Across that portfolio. Its not just the front end, we have 700 patents that go down through this thing. Look out two years from now who is out there that you know is waiting to begin trying to do this in a meaningful way . What does it mean to your business . Theres a division in 3m, unitech, they do the lingual braces. They have a 510k going in with the government now. Theres a division of daniher called ormco that we think will be there. What are your margins . I dont know what it costs these days, but i guess 7 years ago when i did it, its about 5,000. My guess is that Digital Printing has come down so drastically, have your prices come down, too . Our prices have been stable. In china and aipac we have a higher asp. The mix helps us. We introduce new products. If the prices have come down for making these things and competition comes in, will they severely undercut you and hurt your margins. Thats always a danger when competition comes in. But were only 8 penetrated in the orthodontic market. Theres 10,000 case starts a year globally, 3 million in the United States. Were about 10 penetrated in the u. S. , less than that overseas. I feel other clear Liner Companies come in, theyll legitimize the space and help to move it forward. For those of who are impatience, the one thing about invisalign takes a while. Is there new technology coming that will speed up the process . You have to put in a new one each week or whatever to get to the place. If you have to move a tooth do you want to move teeth faster . I dont know. This is what i need to understand. Maybe the human being cant do it. We could go faster than braces and wires now. Last year we announced sevenday wear. We used to change the liners every two weeks. Now you can change them in seven days. What do you think happens to margins longterm . If all this competition does come into the space yeah. Honestly, i think we can maintain the margins by growing the space. Right now the Gross Margins are in the 75 range. Operating profits are in the 23 , 25 range. Look at historical companies in this segment, they want to run operating profits between 25 and 30. That is kind of the profit equilibrium you have in the spaces space. Unless you get more competition . Well get it. I wont deny that. But the market itself as it expands, it will create more opportunities. When you look at fat Profit Margins like that, thats a its an attracter. Before you go, a Business Opportunity for you. I was thinking about this a couple years back when i have these things. Because you have trays, you could do whitening at the same time. Thats true. You should get into the whitening business. Have you thought about this . We have. Its painful when you use those things. But if you have the trays in any way so were the same age. Im slipping a bit. How far back we go back 30 years. I know you, youre ge joe hogan. I ran ge healthcare. What happened . I didnt see you a lot. I knew of you. Thats joe hogan of ge healthcare. Yeah. Yeah. You joined this . I joined ge in 2008. I joined healthcare when jeff took over that job. Ran it until 2008. Your stock was up 84 this year. Yeah. Do you still own any ge stock . I dont. Did you you took this stock up 84 , jeff must hate you at this point. I love jeff. Were good friends over the years. Joe, thank you. Thank you. Im sorry. I forgot. Joe hogan. Ive known you for hogan i think you need to get into hair, too. With hair like that. I will stick with teeth. He was totally bald until he used another thing, right . You were totally bald. No. Ive had this no he was not. No, he was not. Thank you, great to see you. Thank you. When we come back, an early read on jobbed fr es from linke. Then at 7 00 a. M. Eastern, former treasury secretary larry summer also talk jobs and the economy. And later, democratic senator al franken will join us on the Trump Administration, the legislative agenda and his new book where he talks about how hard it is to be taken seriously as a senator after being on saturday night live for so many years. Stay tuned, youre watching squawk box on cnbc. 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. Youre out with your monthly work force report tomorrow. Thats right. Thats why it seems you know who likes the work force report. Who . Your pal. Which one . President trump. Cnbc has an exclusive preview of the report. According to the findings, hiring is as strong as its been sincedown of 20 dowdown since j. 2. 4 higher in may this year. Hiring was 6. 2 higher in may versus april. This was fueled primarily by engineering, manufacturing and transportation issues. Lets bring in dan roth, who is editor and chief of linkedin to break down the highlights. So yeah. Business 2017 is turning out to be a phenomenal year for hiring. Everyone is on fire. Five straight months of year over year growth. Three months over month over month growth. February saw a small dip. In january it was big, month over month also. This is just an incredible year. What is amazing is that its broad based. You mentioned this, but the industries that are doing well, manufacturing, autos, finance saw 16 growth in year over year hiring. The cities benefits are also spreading out. Not just spraean francisco and seattle. This month cleveland and detroit were two big winners in terms of hiring. 19 and 16 growth month over month. Net new workers coming in to work in the city. People seem to be getting jobs. Theyre getting jobs everywhere. Are employers having a difficult job finding qualified empl employees . We did a look last month at the top employers, companies where people most want to work. You could see the skills that they were desperately trying to hire for. Theres a lot of areas where employers are not having a hard time hiring, but theres really important key areas where they are having an incredibly difficult time hiring. Those are mostly in tech areas. So Everyone Needs to hire workers who have skills, jobless skills, able to do web development, mobile development, no matter what industry youre in, not just tech, its tough to find super skilled workers. You are also seeing a demand not being filled for healthcare workers. We said this every month also, but every month in if you look at this report, theres cities where healthcare workers are in demand and are not getting the people they need. The healthcare workers seem to be consolidating in places where there are Major Hospital chains. Major hospital centers, but not going to places where they are most in demand. Does that mean pay is going up in those areas . You can look at we have not looked at salary. We have looked at things like home prices, which are increasing. The price of living in all of these areas, the hottest areas are increasing. What happens is that other cities are benefiting from it. San francisco saw a 17 decrease in net new hires since the beginning of the year. San francisco is still growing, but growing much smaller. So it is a growing more slowly. Much more slowly. Whos benefiting is places like portland, austin, seattle benefiting slightly. Because of the standard of living. If youre in rather be in charlotte than new york and San Francisco. You get much more for your money. What . I was going ask about coal jobs. Heres what we know about coal jobs. Its not in hot demand. Right. But it might be soon. It could be. But if you look at where the growth is, youre much better off being in solar, doing anything around any kind of forwardlooking jobs, if youre in the tech sector, you are in a much better place than if youre going into solar. One of the takeaways from this report is that you dont want to move to places where coal is dominant. You would much rather be in cities where theres a broad base of thats why its called the rust belt. Exactly. If you would have said your buddy, you should have said your president , they would have known who you were talking about. Oh. My president , obviously, not yours. Hes my president. What . President trump . Come on. Love the country. Really . Love the country, love the office. Glad you said that. Im glad you said that. Glad you make that clear. I think if youre sitting in the white house and looking out, this is a clear report that every single sector, not just the benefits that are coming to the economy are not just coming in certain sectors. I bet hes happy if hes watching. Hes a pro. Coming up a healthcare startedupstart up targeting the time in doctors roads, not by making is it shorter but by d displaying ads on screens. You dont have to sit around with old magazines anymore. Heres the winners and losers for may. Well be back in a moment. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Theres nothing traditional about my Small Business. I count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs, and i get back to business. Welcome back to squauwk box. Outcome health is the newest tech Union Campaign finance reform. Our guests are here. They are the cofounders of outcome health. When i sit in a waiting room, i read magazines, usually like dirty, nasty magazines not dirty magazines like that, but dont you always think to yourself when youre in the waiting room that the magazines are a little dirty . You mean germy. Germy. What waiting room are you in . Well, no, because you go to the Doctors Office and you sit there and youre waiting youre figuring the sick people waiting in the waiting room are getting for a moment i thought what kind of Doctors Office are you going to . But ill tell you, i think fertility . I dont know. I think we have a novel solution were really excited about. When you take a step back, what you just described is is exactly right. It makes no sense at all. If you and i wanted to go to brunch we shall could download 30 apps to pick the best possible place to go to brunch. If you go to an oncologist office and a partial with cancer is trying to find a clinical trial, they might be looking at a poster or brochure or photocopy of one. Our vision to bring the gifts of the last 20 years of technology into one of the most important settings in your whole world. Youre right. Why hasnt it it and so long to get to such a critical area . This is a great question. Weve lived for it in almost a decade. My father is a physician. We both had family with Health Conditions that led us into this business. We think the answer is two fold. One, it requires technological innovation but also requires Business Model innovation. Because the doctor and the patient want to make the right decision but neither are the economic stake holders of getting the call right or wrong. So weve had to bring the payers, the Product Companies and Service Companies together and tie Better Health outcomes to Better Business outcomes. How did you come up with the idea . Were you sitting around in waiting rooms . Its very personal for us. We both had family members living with diabetes. And we spent time and underthat the moment is so powerful to engage patient with all of. Information and Health Intelligence that enables them to make some of the most critical decision. Theres so many different moments when youre living with a chronic condition, but the moment when youre with your physician is when youre deciding all the lifestyle changes, what you eat, Treatment Options, Clinical Trials and thats when bringing in Health Intelligence empowers the patients and the care givers to make the best how much is this about the waiting room and really just a Communications Network with patients . I would say the waiting room is a small part of it. Our biggest business is in the exam roomit. Its a personal one for us. She was growing up halfway around the world, i was growing up in the suburbs of technology. We both loved technology and never thought wed go into health care. But what we saw was the, exam room wasnt keeping up. The only information was going in there were the exam minutes. Most of our technology is in the how much of it is the doctors dont feel comfortable with the technology, too . I think doctors love technology. If you go and look at the leading technology in the world, theyll tell you physicians are some of the top customers. Thank you both. Come on back. I want to talk about Marketing Health care products. Thank you. When we come back, former treasury secretary Larry Summers will join us here on the set. Rep all night. She said the future freaks her out. How come no one likes me, jim . Intel does just think of everything intels doing right now with Artificial Intelligence. And pretty soon ai is going to help executives like her see trends to stay ahead of her competition. No more sleepless nights. Were going to be friends im sorry about this. Dont be embarrassed of me, jim. Im getting excited about this we know the future. Were going to be friends because were building it. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com conference buzz. Hillary clinton talks tech, policy and the election. Plus media titans speaking out on how they plan on taking on new giants like google and facebook. Highlights are just minutes away. Congressman sean duffy will join us with the latest out of washington. The second hour of squawk box begins right now. Announcer live from the beating heart of business, new york city, this is squawk bo. Good morning. Welcome back to squawk box right here on cnbc. Were live at the nasdaq. The dow looks like it will open up higher, about 12 points higher. Nasdaq up close to 15 points higher and the s p 500 up a little over three points. It is an extremely busy day for economic numbers. Perhaps the most significant is a little over a half an hour away or an hour away. Adp will be out with its report on pruft secretaivate sector em. Looking for 180,000 private sector jobs. And Ppg Industries has dropped its bid for dutch rival akzo nobl. Nd noble. Under dutch law, they cannot approach them again for a period of time. And as we reported earlier, a number of ceos across the country have been calling the white house and well see what kind of language he uses today on that. A lot of different ways he could do it. He could put it for a vote in the senate, which probably would be worse than some other alternative methods for the climate lobby. Anyway, Hillary Clinton speaking out about her election defeat at the code conference yesterday. Eamon javers joins us now with more. Good morning. It was a rare appearance for Hillary Clinton. She has one thing in common, which is they both wait the way the New York Times covered her political campaign. Heres what she said about the coverage of her email scandal in particular. It became the imagine reason toward the end based on the best analysis that i can find that i lost ground and ended up losing. So obviously turn the clock back. But what was done and i think it was interesting, i know you had dean batay here from the New York Times and they covered it like it was pearl harbor. Some strong talk there from Hillary Clinton and also strong talk on the issue of russia and whether or not there was conclusion by any americans in the russia interference in the 2016 election. Heres what she said. The russians in my opinion and based on the intel and counterintel ive talked to could not have known best how to weaponize that information unless they had been guided. Guided by americans. Guided by americans. Thats a striking allegation from Hillary Clinton. All of that caught the attention of the president. The president tweeting crooked Hillary Clinton now blames everybody but herself, refuses to say she was a terrible candidate. To that Hillary Clinton responded by making fun of Donald Trumps recent twitter account, people in covfefe houses shouldnt throw covfefe. And the president has been getting a lot of inbound calls from ceos asking that the president stay in the paris accord but his promise was to get out. Any Renewable Energy business. A lot of ceos have good reason to want to stay in it. We understand. Elon musk and thats with subsidies. We know where his bread is buttered. He tweeted hes advised the president and hes asked what will you do if the president pulls out of the paris accord. Musk said if he does, ill resign from all of the White House Councils i serve on. He serves on at least three of the Advisory Councils in terms of advising this president on business issues. Hes somebody this president has turned to as an ally in the Business Community. If it doesnt go his way, he said hes pulling out of the relationship. I like that term weaponized. You know who weaponized the details . Podesta. I dont know if he knew he was weaponizing them at the time. I know. But heres the thing about the Cyber Security that i think is really important that a lot of people havent focused on, which is the Cyber Security experts are so focused on security and protecting data and the zeros and ones. Its not hard to steal the information. Whats hard and clever about what the hackers have done is figure out exactly how to use it, exactly how to deplay it and it in ways the Security Experts arent imagining it could be used in this way and suddenly it is and they dont have any defense for it. Its sort of a failure of imagination on are the part of the people protecting the data to understand how it could be used. That gets to the idea of weaponization. Someone in my ear just said one minute ago, theres another trump tweet. Another tweet in. Yeah. The big story put it up on the screen. Lets see it. Ill read it. Ill try. Im not good at actually reading print but or teleprompter. Well, youre on tv. There it is. Their big story is the unmasking and surveillance of people that took place during the Obama Administration. At first blush it looks like everythings spelled correctly. We talked about unmasking. Yesterday we saw the House Intelligence Committee issuing some subpoenas. They issued four subpoenas on the russia issue itself and issued three subpoenas on idea of unmasking. Theyre sending subpoenas to the nsa, fbi and other federal agencies trying to figure out what can be known about who unmasked the identities of apparently Trump Administration or trump cam pan officials and what they did with those identities. Thats a part of this overall investigation now. And the Samantha Power one is the one that had everyone going, what . I mean, what would the u. N. Ambassador be doing susan rice, theyve got a plausible defense i guess. The defense is if youre unmasking, it because youre a high ranking u. S. Or Government Official o needs to and determine whether its Something Interesting and something selfairious. Eamon, doing great today. Thank you. Well, thanks, joe. Youre welcome. Thats what he waits for. Lets turn to the economy, and tabs proposals. Joining us is Larry Summers, the charles wnchs elliott and, mr. Secretary, good to see you. Glad to be with you. The stock market is up, where would you say we stand right now . I think growth is likely to continue through this year. I dont know what the number will be, probably 2 for the year, maybe a little built above that. I think in that sense were in a relatively good phase. Theres a little bit of a sense that europe is churning. I think their large geo political uncertainties at this point caused by the kind of rift we just saw emerge in nato, various things that are going on, whether its in u. S. Mexico relations or u. S. China relations or in the middle east, i think thats an overhang. I think there are obviously longer term issues as the recovery enters its ninth year and i cant be certain how things are going to how things are going to play out. I think the really Interesting Data in the last few months has been the reluctance, the tendency of inflation to come down, not go up. And the core measure, the socalled core personal consumption numbers now run for the last year lower than it ran in 2015. I think that deserves the feds attention as it thinksmonetary policy. Fed officials even this week have said that inflation they think is youre going to start to see some more inflation which pressures. Did and its come down, not up. I think theyve got to be very, very careful. My doctrine would be dont shoot until u see the whites of inflations eyes. If the economy were to turn down, we dont have the room for monetary cuts and Interest Rates that weve had historically. Lets talk about another potential risk out there butt debt ceiling needs to be raised again. The current treasury secretary, steven mnuchin, has said he would like to see a clean raise. We just heard from Mick Mulvaney that thats not necessarily the administrations view, that he would like to see spending changes attached to that. What do you think about the process of getting into that again . Weve got esh use sometimes they spend more money than the one thing we agree on is doesnt stiff visa. The United States mass incurred the debt, it been good for the 200 years behind it. Its just not something you mess around with to win a political debate. To do that is profoundly irresponsible. It irresponsible with its done in the congress and its that much more. I find that to be ive been there through debt limit crises. I think we have without making our own crises by threatening to repudiate the debt of the United States. Weve done enough things that remind one of, without having the person in charge of the president s budget threatening the possibility of default on the national debt. Who wins those arguments in your house, you or the kids . About 50 50. Who springs for college . College is dads responsibility, dad and moms responsibili responsibility. Dad might have some pretty good connections at good schools. Kid have gone. Letting you know Larry Summers kid and not some other kids. No, no, i hope they dont, actually. Were going to hear about about this accord and what theyre going to do about it. There have been, a number of u. S. Companies making the point its in the best interest of Economic Growth that we stay in the accord and others would say its best to be out of the accord. Whats thes and . On economic terms. Its best to stay in it. I never could have imagined wed have a u. S. Administration that would be getting itself positioned way to the right of exxon on a fossil fuel issue. When exxon thinks a policy to con contain emissions is a bad idea how can there be a world where we create two nations, the United States and everyone else around a maenl economic issue like energy . Theres plenty you can criticize about the Paris Agreement. Id prefer a that put more emphasis of raising the price of carbon and put less emphasis on command and control regulation. Theres plenty you can ask about but if you say there is a collective commitment for the United States in a leader of creating it. Thud shoulds United States kick it all over . The Heritage Foundation points out its a question of rule of law, that this is a treaty put before the senate. Its not a treaty, its an agreement. Their interpretation is something that should have been in their point, even if you look at the best Case Scenario for whether it reduces Global Temperatures 50 years from now. The amount of money and the effect on gd. Did they say the negatives outweigh the positives. The Heritage Foundation is not known for being objective on these questions completely, on these questions of the. Companies like exxon mobil are on, joe. But look, the right way to understand the Paris Agreement is not that this is the once and for all resolution forever. In is the first stage in a process of global commitment to address what the vast majority of scientists think is one of the most pressing Security Problems facing mankind. If someone was suggesting that it be amended in various ways, id be open to that kind of conversation. But i eye idea of kicking it over completely leaving into in its place and take our chances with the lit at lottery, that seems to me to be profoundly irresponsible. And in general than people did who were sticking with horses because they thought cars were dangerous. The people who the people with Renewable Energy are going to do better than those who are sticking with can yesterday by ron clay and brian dietz, it makes a very strong argument and ive talked to a variety of scientists that it right that we are raising the risk of epide c epidemics and be pan dem if we change the major hab scat ofs and i promise you theyre not included in the heritage found as han al. Ive been skeptical of catastrophic online u. S. Equity trades. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. Some more media giants are making a splash at the conference. Julia boorstin, good morning. Good morning. In a rare interview last night, viacom and cbs chair explained why she changed her mind why it didnt make sense to come boone th combine. What i didnt understand at the time was the significant up side that existed in our businesses once we have a Good Management team in place and the culture came back. Redstone defended the traditional tv business saying it is declining very slowly and in light of the explosion of new digital distribution options, she said she sees more potential now for content than ever. Content is being valued more highly than it ever was before. My dad once said content is king. Youre seeing Technology Companies realizing they need that original content in order to succeed and have the relationship they want with the consumer. Time warners ceo said he does not expect the Trump Administration to block time warners sale to at t and he said combining text and distribution is more important than ever. You need retail tech and data. Theyre using massive amounts of data and connection in order to do that. And we need to be able to compete with that. Im sure today theyll hear from the new media side, especially when twitters anthony nodo takes the stage. All right, julia. Dark out there. It early. Thank you, thank you. Its early, early. Thank you for setting your alarm. We complain here. Think if we were on the west coast. Coming up, leadership and civil rights. Andrew young will be our guest and we talk taxes, budget cuts and other woes with congressman sean duffy, my only friend i think today. Squawk box will be right back. But you want to fix it. Right. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. U. S. Futures up across the board but just barely. 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 bp uses flir cameras a new thermal imagining technology to inspect difficulttoreach pipelines, so we can detect leaks before humans can see them. Because safety is never being satisfied. And always working to be better. Theres nothing traditional about my Small Business. I count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs, and i get back to business. Good morning. Welcome back to squawk box. The may adp report is coming up in about 45 minutes. Were going to get initial jobless claims in about an hour. And later this morning, may auto sales, the isi Manufacturing Index and april construction spending. New york city has suspended wells fargo from participating in its Municipal Bond business, citing last years scandal. And retailer sears says a database credit card information breach at some kmart stores. They did say no information was obtained by the breach. The number of layoffs rising sharply in may jump ing more than 40 . Lets bring in andy challenger, Vice President of challenger, gray and christmas. Andy, thats a concerning headline. What were the numbers and what happened . U. S. Employers announced 51,692 job cuts in may. Thats up about 41 from last year and actually 71 from the same month of may 2016. And there was one industry or one company even that was responsible for a big chunk of that. It was ford . Yeah, the majority of the cuts this month came out of detroit, Ford Motor Company announcing theyre going to be cutting 10 of their workforce, roughly about 20,000 people. That made up 40 of the entire cuts this month. Weve been hearing for some time that peak auto is here, theyve been continuing to sell cars but doing with steep discounts and there would be some time when it had to end. Is that whats happening in this situation . We might be getting to that point of peak auto. What ford nuannounced is that ty are starting to slash some of those jobs because of a shift in a lull oil price that weve gotten to eventually. A shift away from sudans. Maybe theyve battened down the hatches. Is this that or the chicken has come home to roost, prices have risen, risen, risen, as a result people want to hold on to them longer and as a result youre not going to see people buying like they used to be buying . It could be a little bit of both. Theyve said theyre shifting to a strategy of making more suvs and fewer sedans in the future and that shift is causing cost cutting where they need to lay off some people. You also some more than 5,500 job cuts in retail for the month, too. Is that a continuation of the same story, retailers being under pressure from online offerings and changing the way people shop . Yup. Continued cutting in the retail sector. Were actually starting to see some of those cuts come to Grocery Stores for the first time. So they might be feeling a little bit of pressure from online shopping. We know we saw the jet. Com purchase by wallmart acquisitioned, certainly an indication that ecommerce is coming to Grocery Stores as well. Andy, great to see you. Thank you for joining us this morning. Thanks for having me on. Our next guest is an icon of the civil rights era. We want to bring on ambassador andrew j. Young. His Leadership Award is this saturday in atlanta. And its also his 85th birthday. Thank you for joining us. Thank you for inviting us. Help us about whats going on this weekend and then i want to get into the politics of these days. People said youre getting to be 85, you need to think about what kind of funeral. I said, hell no i said i want to have a party at the Philips Arena where i was sworn in as mayor in 1982 and i want everybody to come and i want to sort of point up some of the leadership that is emerging and help them to realize that things are no worse now than they were when i started out in 1954. And we had no money, we had none of the technology. We were just getting television but we understood the realities of our time and one of the significant things is we didnt focus on persons, we focused on problems. We almost never called the persons we never called George Wallace names. We were not against George Wallace. We were not against richard russell. Against racial segregation and we found common ways that brought actually the Business Community was more much more responsible for desegregation because we went to the merchants in birmingham and we said, look, were not blaming you. We have financed our own oppression. We just want to let you know were not going to do that anymore and so we ought to figure out a way to work together. And so a hundred businessmen and a very rag tag group of young people with Martin Luther king really negotiated an end to racial segregation in birmingham a whole year ahead of the congress of the United States. And birmingham was clearly one of the most difficult cities racially in american. To fast forward to today, if you could spend time to President Trump when it comes to business, the economy and civil rights, what would you tell him . Well, i would say weve got to deal with infrastructure and thats one of the things that i had hopes for. Because atlanta has kept up with its infrastructure, new orleans is keeping up with its infrastructure, in spite of all of the floods but were not doing it by going to washington. I never went to washington for a grant or a bill. I went to wall street. And we brought in investment from a billion and a half dollars my first term as mayor came in from holland. And we brought in japanese companies. We now have over 2,500 German Companies in atlanta. Now, thats not accident. We went to germany, we invited them to come in. We made it very easy for them to relocate in the u. S. Market. And so weve grown from a Million People when i was mayor to now over 6 million 30 years later. With no debt. And we run a balanced budget and we financed things like businesses. And its the way governments have to run and then you generate jobs and you attract jobs. We really dont have enough trained people right now to keep up with the jobs that are coming but we also have invested we took all of our lottery money and put it into education. So anybody with a b average can go to any georgia institution pretty nearly free. And its really grunt work but its inspirational and its working and im trying to honor say ron clark and the ron clark academy. They decided to rerevolutionize Public Education by yeah. I was going to say i think you were alluding earlier to some extent to the personal politics that were seeing in the current, you know, environment. I was. That were in right now. Im not as wise or have as many kweers as you. I dont know whether you get more mellow but i think it needed to hear what you say right now. You look at your comments. You met President Trump at maralago for Maya Angelous birthday. You said i havent figured out how to work with him and i totally understand that, but you do want to help. Just saying that much speaks volumes from what were hearing across the political spectrum. The party, the Democratic Party or certain aspects of it have left certain people like you behind in terms of where we are. No, i think weve left them behind. And because our politics works because we deal with issues and not personalities. And i think that with the Climate Change agreement, now well argue about that for a week, you know. But what i look at is the rain, rain coming down on the Mississippi River. I grew up on the mississippi in new orleans, and we havent done anything with that river in 80 years. And its going to flood. But the 75 cities that our foundation has been working with along the river with access to capital could create a boom in america that would be unparalleled in anything going on anywhere in the world. And the Mississippi Valley is probably the safest place in the world to keep your money. But we havent figured out how to let the big corporations that have money overseas, saving it in safe havens or wherever, we ought to let them bring that money back to the United States and what ive been trying to do since president bush was create an enterprise zone a thousand yards each side of the Mississippi River so that every city could do like we did with our airport. We created an enterprise zone and we probably put 30, 40 billion into well, 30 billion into that airport in 30 years but it earns 40 billion impact a year and over a million jobs have been created there. And that could happen in st. Louis, it could happen in cincinnati, it could happen in memphis. Sir, we all hope and weve talked a lot on this show about infrastructure. I just wanted to ask you one final question because i was reading that trump had asked or wanted to you go to the white house to be honored for black History Month and you said you didnt want to go . I did. And it was no disrespect. It was that everybody wants to focus on the race problems and dr. King said we were going to redeem the soul of america from triple evils of race, war and poverty. Now, i think weve done what we got to do with race. Almost every racial problem now is economic. I mean, ferguson was not a race probl problem, its a jobs problem. St. Louis took poor people out of atlanta and in Clayton County where our poor people were relocated from the central city i think was one of the Fastest Growing counties in america last year basically because we moved the whole porsche plant and its whole operation down unfortunately where ford used to be. Ambassador, we want to thank you. You want to wish you a very happy birthday and we appreciate you being with us this morning. Thanks and god bless you. Thank you. Coming up, congressman sean duffy on where tax reform stands in the house. Well find out how close lawmakers are to getting something done. In the meantime, check out the futures right now, up, please. Theyre now negative on the dow, just barely positive on the s p, up 10 on the nasdaq. President trump wants a Quick Senate Vote on the gop obamacare replacement plan. Joining us now, congressman sean duffy. I got to tell you, congressman, im not there in washington. I dont know whether the people are working behind the scenes but i havent heard anything about what the senates doing. Are they doing anything with writing their version of Obamacare Repeal and replacement . Are they getting anywhere . Well, what i hear, joe, is theyve taken a blank sheet of paper and starting to craft a bill but health cares complicated and i think as you heard a couple days ago, Mitch Mcconnell is not sure theyre going to get a bill done. Mitch is putting pressure on the senators. I think the Republican Base wont allow for the senate not to act so im pretty bullish the senate will get a Health Care Bill done. They are working. As you pointed out well is we cant get the tax reform until we get health care done because were using these crazy budget reconciliation rules, trying to get around the 60vote threshold of the filibuster rule in the senate. Its just weird. We hear, you know, well, theyve got this to do and then theyre going to adjourn and theres going to be to be honest with you, i cant tell the difference between when theyre supposedly doing things and when theyre adjourned. I really cant. I dont think it matters whether theyre there or whether theyre not there. You know im a house guy so were churning out bills day after day after day. Can you tell the difference . And with the how can you tell whether congress is adjourned or in session considering the house is the same. When the shous in session you know because were working. The senate, i dont know when theyre in session or not in session. I think the point is well made. I think the greater point is the senate has too get rid of this filibuster rule. The founders didnt put it in the constitution. It didnt exist for the first 2 ho200 years of our country. You have this wide division of partisanship in the senate, you have americans that Want Health Care reform, want tax reform and the whole agenda is being held up because of a version of a stupid rule from the late 1970s. If they can get rid of that, we could just go straight to tax reform yikes. We dont have to be revenue neutral. We can move tax dials down and look for growth. But right now with the stupid rules, we have to be revenue neutral, which is why we need a trillion dollars from obamacare taxes. Thats why you hear about a border adjustment tax. It those two 2 trillion that we lower or tax leverage to 15 to 20 on the corporate side and 30 on the individual side. I guess the appetite for that is zero in the senate. If you look at the reasoning for that is the democrats will be in charge of that someday. Do you really want the democrats to be in charge if theres no filibuster . Think of some of the things that would get passed. Use your imagination. Democrats, if and when they take control of the senate again, theyre going to get rid of the filibuster. They got rid of it in the obama years with regard to federal Court Appointees and cabinet appointees. Now the senate just a couple months ago got rid it have for the supreme court. This is evaporating. Lets just get rid of it as republicans instead of waiting for democrats to do it when they take control. You think theyll do it if you dont . This thing is going to be done. Our government doesnt work anymore. You have viewers at home going what the hell is wrong with washington. Why cant these people get anything done . Its because were stuck on these old rules that arent working and allowing legislation to flow. We have elections, we send people to the senate and the house, we should have a vigorous debate, both sides should come together and we should start passing bills in iowa, you have people losing their health insurance. And we have only one iowas two senators, republicans, are both hesitant to sign off on this. On health care because they cant look at the full spectrum of health care. They are stuck looking at one small slice that fits into budget conciliation. You hear of the three phases of health care. If they could look at it all, it would be easier to come together and make a full scale people ask how did the democrats get obamacare and doddfrank and the stimulus bill . They had 60 senators in the senate and the democrats were decimated because of what they did and we cant roll back that agenda because we only have 52 votes in the senate. Its crazy stuff. They seem to know how to play for keeps, though. They had 60 but they got all 60. There are things they can do with 51 that you guys just cant seem to do. That point is well made but i think what youre starting to see now as ive been talking to my community here, people are angry and they know the focus has to be on the senate and they have to put pressure on republican so we can then get the taxes im still bullish on this agenda. Because both senate and the house are still working on tax reform, that. Youre in washington, congressman . I am. How did the russians close down the airports to Hillary Clinton to preclude her from going to wisconsin . What happened there . Was it a visa thing or how did that work. I dont know what happened. They shut the airports down. Yeah, she couldnt go there. Because of all thos. I keep looking for that fake russia story everyone was buying into. When we return, stocks to watch ahead of the opening on wall veet. Squawk box will be right back. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. The power of innovative thinking. The power of 100 of the worlds top companies. 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. Dollar general reported profits of 1. 03 a share. The stock is up by 3. 5 . Express lost 7 cents a share for the latest quarter. That was 5 cents wider than the street anticipated. Express also gave weaker fullyear forecasts. As a result, that stock is down 15. 5 this morning. And Palo Alto Networks Beat Estimates by 5 cents. They saw a growing number of subscriptions. Coming up, the latest read on the jobs at adp and later, senator al franken will be our guest. We head to a break. The futures at this hour. Well be back in just a moment. Theres nothing traditional about my Small Business. I count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs, and i get back to business. Jobs in america. Breaking news on the labor market just 15 more. And al franken, the funny man turned senator, will join us on set to tackle todays issues. Its a bird, no, its a drone. Well show you how theyre being used to prepare for the upcoming Hurricane Season as squawk box take shape now. Announcer live from the most powerful city in the world, new york, this is squawk box. Good morning, im joe kernen, along with becky quick and Andrew Ross Sorkin and if youre here, im going to say youre here, and Steve Liesman. Its supposed to happen later. Its 8 00. Is adp today . Adp in 15 minutes. Is that why youre here . He went like this instead of like this. Whenever youre ready, joe, well get to the headlines. Lets look to the futures. How many of them are there that we need to watch . Theres supposed to be 19. If they look askance at someone. Were on it. Look at that tease, that leadin that becky has right there. Anyway, before we get to the riveting piece, lets get to the riveting market action. The dow is up. 35 and the nasdaq up 9, s p up less than two. Federal reserve governor jay powell delivered news from new york. Steve liesman has the highlights. He said slow inflation argues for slow rate hikes and its appropriate to gradually raise rates. He also says that the Balance Sheet should be reduced later this year. Heres what he says about the Balance Sheet. On small dpeeffects are gauged happen, between 5 and 20 basis points of a year, a total of a hundred but that winding out out of time. The balance shed sheet could end up between 2. 4 and 2. 9 trillion. He expects inflation to resume its gradual rise and theres been a question about the low inflation numbers. He says the tighter numbers should boost wages and price ps he expects 2 growth and strong job creation and says, quote, the global picture has brightened. Is that what kaplan said or no . Kaplan said it a little differently. You know whats great about that, becky . I have an exclusive interview with jay powell coming up at 10 00 this morning. So ill be able to ask him all of these thing. Jay powell is the guy at the fed who is in charge of all the banking supervision, that job that President Trump has yet to appoint somebody for so jay does that job so were going to have a chance to ask him about all the different banking regulations and how he would change it. And i think the may want to know at 8 15 were coming ba with the adp report. The thursday adp report, not the wednesday. Because of the holiday, a shortened weak. We are waiting on that adp report. Forecasters say the economy probably add 180 private sector jobs. And withdrawing the accord had been one of the president s Campaign Promise after several overtures were rejected, under dutch law, ppg cant approach akz onobodiel for six months up. Know what ppg stand for, right . Pittsburgh paint glass . A lot of benefit to having been around a long time. Also, Palo Alto Networks jump ing to near record highs and Ceo Meg Whitman on squawk on the street at 9 a. M. Eastern time. Lets turn to investments and joining us is anastasia amoroso. Thank god youre global, anastasia. We need to look everywhere. Youre right. Is it better to look globally or are there good things happening in the United States . I would say both. The s p 500 and u. S. Stobs here had a very good half of the year led by tech. I think we retain the constructive outlook for u. S. Equities in the second half of the year as well. But if you ask us where the opportunity lies from a longer Business Cycle perspective, we do absolutely look to europe, as credit is picking up there and economic surprises are positive, thats absolutely where we want to look. So we always consider valuation as well as how well the Underlying Companies are going to do. So you think the companies are going to do better in europe. As far as valuation, where are they in the cycle compared to where we are . Theyre at about average valuation. Youre right, this is not so much a valuation story as an earning story. Just as the u. S. Had a very strong First Quarter in a year, europe did as well. Europe had the strongest earnings in about seven years. Its not as much about multiple expansion. Its about the ability of earnings to deliver. One more things to point out when you look at the global landscape, what were experiencing now is something that we havent seen in years and that is synchronized global recovery. Its not just u. S. , its not just europe. Its many more companies than that moving to the in unison as far as the growth goes. Heres what i was getting at. I think that in the United States, and i wouldnt say the same for europe necessarily, but the United States could embark on some progrowth initiatives that could be very powerful according to people that believe in that kind of stuff. So that would make me think even if stocks are a little more expensive here that add least weve got the chance to juice growth fiscally. Do you see anything similar to that in europe, any countries that are going to get their act together in terms of reforms to progrowth policies . I think in europe the story is twofold. That is that the fiscal drag of the path is not the necessary call dag. So even though thats not outright stimulus, it is more stimulating than in years past. But the story in europe is not so much a fess call policy of where its been in the past. If you were to talk about a big growth opportunity, something that fiscal policy could do, its try to spur capital expe expenditures and investments. Its been basically nonexistent in europe for the last five to seven years. So pro growth policies would certainly help on that front as well. Okay. I just maybe theyre a little bit behind in, you know we benefited greatly from the fed. Many people think that stocks got too high and then up needed to have some type of actual underpink, you needed the fed to pass the baton to the underlying economy. Maybe theyre at an earlier stage of that happening over in europe right now and maybe they go to an overvalued position eventually in their stock markets, too. Well, the stock markets in europe have rerated and the ecb has to reconsider whether the same amount of monetary stimulus is still appropriate. Think presumably is going to be hard for the ecb to justify continuing quantitatively in europe weve been very positively surprised by Economic Data and if you couple that with the projections of how much the ecb is going to end up owning as a percent of the market, which is a very large percent by the end of this year, i think they have to start to pave the way for scaling back some of that monitoring policy stimulus. By the way, at the same time as you were just talking about, the fed starting to chang its rate investment policy. So those two things combined should have an impact on the bond market. I mean, we are, you know, were going to do the Balance Sheet, were going to do neighbor another three increases, two or three increases. I mean, it must be gratifying that the market has behaved so well, even though we did pass that inflexion point from easing to tightening. Were figtightening now, even it slow. The markets held up pretty well, hasnt it in. We are this is a very this is because the fed is entertaining changing their reinvestment policy. I think more and more bond markets will start to Pay Attention to that. Because if the fed is no longer a buyer and theyll do this gradually over time that, somebody else has to step up and pick up that slack. Have i no doubt that there will be buyers given the foreign demand. It just that i think those buyers will have to come in as a higher level of yield. Thank you. Thank you, joe. First up, we have adp and then in the next half hour as we count down to tomorrow. Plus funny man to statesman. Senator al franken is telling all the jokes he once held back. Thats come being at 8 40 a. M. Eastern time. Stay tuned. You are watching squawk box on cnbc. 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. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. What if we could bring you by having better values . At blue apron, we work directly with more than a hundred family farms. So instead of spending on costly middlemen and supermarkets, we can invest in the things that matter most making farmland healthier. Cutting down on food waste. And bringing you higher quality, fresher ingredients for less than you pay at the store. Because food is better when you start from scratch. Get 30 off at blueapron. Com cook welcome back to squawk box, every. We are waiting for a adp employment report. Lets get a quick check on the markets before the report. Looks like the futures are up but just barely, the dow up by 2, oil prices came under pressure yesterday. Theyve picked up ever so slightly. Check out the bond market and the tenyear is yielding 2. 22 . Lets go over to Steve Liesman with the number. Adp reporting payroll rose by 253,000. They revised down april and 48,000 jobs services. The nonforeign pay roll estimate for friday is just 184,000. Median basis 113,000, Large Business 57,000, small 83,000. And education and health up 54,000. Construction 37,000 jobs along with manufacturing, 8,000 and Leisure Hospitality down by 8,000. Lets bring in mark zandi. Were accelerating at a time when everybody thought we were moderating. Yeah, a big number. If you look at the internals of the adp data, they all look really strong. It was a really strong month in the labor market. Just to give you context, this 250 k is three times the rate of the growth in the underlying labor force. So that means the Unemployment Rate, which is 4 hadnt 4. 4 is rib roaring and really tight. If you want to look at the two year, we crossed that 130 level, which we havent in quite a while so a little bit of a selloff in the bond market. Not huge given where we are. Mark, whats happening with growth right now in terms of why is it that is seemed like the growth was so muted but job growth seems to be in pretty good shape . Well, gdp growth and i think thats what youre referring to, is 2 . You know, its been 2 since the beginning of the expansion, which by the way, this month in june is now eight years old, making it the third longest in but about about 2 growth has been consistent with roughly 200,000 jobs per month. Thats what weve been getting for the past seven years, 200 k and were still getting 200 k. Nothing hance changed how much concern do you have when you come up with a number like this thats somehow out of sync here . It based on different sectors of the workforce so you could get different numbers. The average monthly error is about 40 k. So plus or minus 40 k. Not too bad. That would suggest but the underlying great of job growth is still about 7,000. Thanks for your help this morning. Appreciate it. Did you see that gars. The guy bought it for 900. Of course i think all that money within. It was the wolf, which gave way to the tiger, okay . All right. What kind of guitar. Was it a gibson . What was it . I think it was a custom. Come ub. Today is the start of Hurricane Season. Insurers are going to be looking to speed up the claim process. For some the kwai is the limit, literally. Brian, i just need to know if the customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. 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 squawk box this morning. Take a look at the futures. A little bit of seesawing going on this morning. And now the dow is back up above close to 20 points. Earlier it was up and then came down a little bit. Hurricane season officially beginning today and noaa predicting it will be above normal. Insurers are getting ready this time with drones at the ready. And we look at advances in technology. Reporter take a look at this. Im standing atop a fully furnished mock house at travelers claim university. The company goes out of its way to Damage Houses and the one next to it as a way to train thousands of adjusters each year. Its not just putting them up on the roof anymore, now the company is training them to help fly drones. Travelers said it first began using drones after hurricane matthew. It currently has 150 faa vertified drone pilots but the plan is to double that by august. The company says its too soon to tell what the cost savings to this is going to be but that the technology is saving davis off the claims process and its creating a safer environment for adjusters and other professionals to basically do things like climb up on roofs and do their jobs. Stay recently after the hail storm and all state says theyre using drones in four states with planning to have them being used nationwide next year. Dont be surprised. Stay off my property, thats all im going to to tell you. Well, youre armed and dangerous. I did her it in certain places theyre using fall kons and eagles o teak down the drones. Do you know anything about that, morgan . I worry about the birds doing that. Do they live when they do that . Are they able to take them down . Or do they i dont know. Im sure they live but they can get hurt. Go ahead, morgan. You know, joe, i come armed with stalts and data to come here and answer any questions you have when i do reports, but this, i mean, this is not one i was expecting. I dont have the answer to that. But i will tell you this, if youre using a drone to do something look assess roof damage off the youre talking about getting that check if you had damage to your house in days or weeks rather than months. Apparently the dutch very cool. I guess this is going to have to be the next story i do. That sound that im hair nancys like thats why theyre called drones because theyre droning on and on and on. Coming up, breaking economic news. Jobs the story of the day. Weekly claims. We just had adp, linked in and senator al frack i dont know, news look at us esest oh, my god, thats so cool get up from the couch. Im sorry, what . Grandpa come. At cognizant, were uniting doctors, insurers and patients on a collaborative care platform, making it easier to do whats best for everyones health, every step of the way. You may need more physical therapy. Ugh. Am i covered for that . Yep. Look. Grandpa catch grandpa duck woah ha there you go grandpa. Keep doing that. Get ready, because were helping leading Companies Lead with digital. Good morning. Welcome back to squawk box. Were just seconds away now from weekly jobless claims. The futures, lets take a quick look at another positive again. That was a pretty good jobs number from adp, up 23 now. And maybe good news for the markets at this point, nasdaq up 15, s p up 420. We were up and then we went negative for a while. The adb report came out. Lets go to rick santelli. I didnt think zan. And zandi would show up with inthat number but he did. Okay, we pop it up 13,000 on initial claims and move from 1. 924 to 1. 95 million and joes right, we tofr at 2. 22 on yield. Will it give us more information about tomorrow . You want to bet that people ramp up expectations for tomorrows number a bit . Dollar index has positive signs, stocks have positive sign. Well Pay Attention to the 9705 level on the dollar index. Back to you guys. Okay. Thank you for that, rick. Goodyear tire upgraded from overwait to underweig overwei. And vlasic pickles a possible takeover of conagra brands. And boxs Company Earnings is currently ahead, it adds an Artificial Intelligence effort is coming up next. And Marathon Petroleum board authorizes a 38 a share buyback. And olli es bargain outlet dipping during the First Quarter. We are closely following the code conference. Hillary clinton talks about the election. The overriding issue that i had any control over was the way that the use of my email account was turned into the biggest scandal since lord knows when and, you know, in the book im just using everything that anybody else said about it beside me to basically said this was the biggest nothing burger ever. It was a mistake, ive said it was a mistake and obviously if i could turn the clock back i wouldnt have done it in the first place but the way that it was used was very damaging. Okay. We also heard from time warners ceo at code. He said hes not worried about President Trump blocking time warners planned 85 billion deal with at t. The rules on what is pro competitive and what isnt, or the assessment of that, is properly done by the department of justice. And i dont think that the whos occupying the white house really changes that. So were not particularly thinking that thats a significant factor. And speaking of media deals, Sheri Redstone told the code conference she believes she made the right call last year deciding not to merge viacom and cbs. I have a great relationship with les and i think we could have worked really well together on a combined company. But i think, like i said, at that point in time, you look at the valuations. We were undervalued. The change for me was, oh, my god, there is potential here. There is opportunity here. We can do this. And it looks like it may very well have been the right decision, though i think les also forced the decision because im not sure he wanted to buy it so quickly either. Coming up when we return, whats funny about politics . Comedianturnedsenator al franken will talk more about his tellall. There he is. Back in a moment. Welcome back to squawk box. That was me but its really for you, joe. Getting the reaction shot. Reaction shot to the senator joining us. Welcome back. Well look at the futures again quickly. Theyre up after that adp number, up 18 on the dow, up 13 on the nasdaq, up just under 4 on the s p. Joining us on the is he, senator al franken has a new book out, al franken, giant of the senator, toss about the transition from funny man to statesman and taubes about how things have changed on the hill since he was elected in 2008. Good morning. Good morning. We have about a million things to talk to you about. I cant handle a million. You do have this book out. Well start with the book. Yeah. Im curious now that we now have another celebrity, if you will, in office, what was the transition like from being, as we said just now a funny man to a senator . Part of the reason i wrote this book was to talk about that. The question i get asked probably the most by people is is you know, is being a United States senator as much fun as working on saturday night live and the answer of course is no, why would it be . But its the best job ive ever had because you get to improve peoples lives. Thats what Paul Wellstone, who i dedicate the book to, to him and his wife, who is senator from minnesota, a great, progressive, thats what he said, that politics is not about winning, its not about money, its about improving peoples lives. What about the people it may now be attracting. Talk about the celebification of will oprah now run . When i ran in 2008, minnesotans were wary of people, as well they should be, by the way. They like pro wrestlers more. We did have a and that is a form of show business. Norm coleman ran against him for governor and lost to him and hes lost to a pro wrestler and a comedian. I want him to run statewide again against a human cannon ball or a rodeo clown. I just want him to lose to someone else in show business. Political question. Just in terms of candidates on the democratic side, do you have a name, nick yanybody you thinke yourself not me. To run against President Trump in 2020 . Every democrat says they dont have any names. Who would it be. Thats fun to talk about. Weve got stuff in front of us right now like health care. And talking about improving peoples lives, this Health Care Plan that passed through the house terrible. Its dreadful. Im cochairman of the rural health caucus, i go parnd to rural minnesota, talk to hospitals and clinics and nursing homes. People are very scared of this Health Care Plan that was passed out of the house. Theyre petrified. So what do you think but its dead on arrival in the senate, right . Right now the republicans are meeting behind closed doors. We should have hearings on this, it should be bipartisan and the process that Mitch Mcconnell has chosen is not the right process. How would you handicap the timing of the senate and the Health Care Bill . Im not a handicapper, im not a prognosticator. I think its hard for them to get 50 sflovotes in their caucu dont see a Health Care Plan that mike lee agree to that Susan Collins and murkowski agrees to. And Mitch Mcconnell says as much, that its going to be hard to get to 50. But the democrats didnt make a plan with obama either. We had lots of hearings. We had a tremendous number of republican amendments in that bill. It was a process that went on for months and months and in committee, in both the health committee, which is the health. Case, labor committee, the finance committee. This went through a process that landed about nine, ten months. It was a very, very transparent process. Its such a rancorous environment in washington right now. Really . Youre not in washington. We get along great. Doesnt look like it from here. Whats happened . Why this divide i talk a lot about that, what happened. I do think that Mitch Mcconnell has a lot to do with that. I think the republicans during the Obama Administration said their number one goal was to see that obama was a oneterm president. Thats what mcconnell said and they tried to slow everything down, they filibustered. Half the filibusters in the history of the country happened at the end of his the end of the opposing party always want to make but no, do you want to make trump a oneterm president . My number one goal is to see every child in america has a world class education. Would you prefer i would prefer he be a oneterm president. But thats different with when you have pao remember that obama inherited a great recession. So to say that our number one goal is not to put people to work, is not to during the recession his number one goal was obamacare. A lot of people criticized him. Maybe it should have been to get us back on track. We spent two years on obamacare. We passed a stimulus bill before that. But it got bogged down. And that did poison el well. And marry reid had something to do with what happened in washington, too we needed 60 votes. He got them. Harrys a hero to me. Listen, were supposed to be here in the senate, not on squawk box, but were supposed to be here to improve peoples lives. I understand. And Paul Wellstone people have different ideas how to do that. But that should be our first goal, right . It should be but after eight years, some people would say the people that president obama was trying to help the most werent helped as much as they should have been. I think thats why trump made that case but i think youre seeing right now where hes giving tax cuts to those at the top to take away from medicaid. When i go around the state of minnesota and go to small hospitals and have roundtables there, people are crying because their mom gets her Home Health Care medicaid. A woman cried because she and her husband both work and they will not be able to care for their mom. They dont know what theyre going to do. This is an 880 billion cut of med kay tax cut for people at the top. Thats not what Trump Campaigned on. He promised not to cut medicaid. So and theyre becoming disillusioned. Theyre seeing that he is not doing what he said he would do. I want to ask you about a couple other things going on in washington. In particular, your views about russia and what took place during the election or perhaps what took place after the election given that you perhaps i dont know if you instigated it knowingly, but what took place with sessions. What do you think really happened here . We have a special prosecutor one after another these Trump Campaign people and people in the administration have not disclosed meetings that they had with the russians when they were supposed to and under questioning from me, senator sessions gave us false could you accept that was an innocent mistake or no . Um, i didnt accept his explanation. It was revealed in the Washington Post that he met with kislyak twice, 70some days later and only then did he say, oh, yeah, yeah, i had these meetings but i didnt think that was the question. So his explanation was terrible. And senator leahy and i wrote a and and i asked to look to see whether other meetings had different meanings, thome is going to testify next week. What do you want to what do you want to know . I want to truth. Maybe you cant handle the truth. No. I want to find out what everybody wants to find out. Did the president pressure him to drop the investigation of flynn, for example. And if he did, what do you think the ramifications should be for that . Thats very serious. Again, the special prosecutor, bob mueller, who i trust, everybody in washington trusts, hell make the determination about whether these are, you know, crimes and, you know, obstruction of justice is a crime. Were going to replay all the comey stuff. Youve seen the video a hundred times, im sure. Where he says no, no one ever pressured me. Im not sure when he said that it current. Ffs current and then the memo came out. Plus, dont you think if someone forcibly told you to go ahead, look, im ordering you to do this, he would have resigned, right . He would have had to. I dont think he ordered him to do it. Thats what im saying. You have to parse whether this is obstruction or not but its troubling if and contemporaneous memos are miss i think comey is a man of n i think that he hes a very well respected and honest man. I wish you could stay longer. We cant ask you about saturday night live, can we . You prefer we dont . No, i mean, i love saturday night live. The just the raw talent of comedy you were there with i was there at the beginning with bill with bill belushi. Who was the funniest person to be around . Bill murray, i cant stand next to him without laughing. Enormous breath dana mccarvey. No one better. Comedian. Brilliant people. And people on since then. How about loren as far as an eye for picking people . He has a terrible eye. I mean, its unbelievable. No idea. The biggest stars in the world. No, hes look, this you know, when this show started i was 24 years old. And i told my partner then tom davis, i said, this is going to be a giant hit. And no one you shouldnt ever say that. That was the first job in show business and i said this look at the people around us, our generation has never been allowed to be on tv before. And i was i was kind of right. Loren picked really great people. We have had the show had its ups and downs, i got my share i did 15 seasons on the show so i got my share of saturday night deadlines from people. Its been remarkable. Can you guest host, can you do that . They have not asked me to guest host. Im asking you. I think well, thank you. I think i can speak i do. Got a lot of muscle there. Talking about comedy real quick. I know youre supposed to be appearing with kathy griffin. When does the joke go too far . That was i condemned that immediately. I called her. Shes friend. I told her you cant do that. She she apologized. She made a very fulsom apology. She asked for forgiveness. She begged for forgiveness. Did cnn make the right decision . I by cutting her. I dont make decisions for cnn. I believe in forgiveness. And you will still appear with her . We have a book signing event that im doing in l. A. In a couple of weeks. Again, she is i said that theres no place in our discourse for image like this. I condemn that but i do believe in forgiveness. Okay. Senator, we really appreciate you being here. Well get you that hes going to work on the guest host slot. The book called giant of senate. Can i tell you what week works well for me . When we go to break, were live from new york right now. You know that . Yeah. Its squawk box is. What today is its the 1st. Can you dow that . No, i shouldnt have walked into that at all. Senator, thank you very much. We appreciate it. When we come back, jim cramer. 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. 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. Lets get to the new york stock exchange, jim cramer joins us know. That was a shocker of the adp number but its what we want. Look, i think that the banks are down on trading. But you know what, the economy is Strong Enough that they can raise rates and Interest Rates are too low. We dont ever really want to question the rates too much, but geez, that was kind of barn burner. Very positive. Hopefully tomorrow, tomorrow we get some follow through, jim. Well see. I think employment is the strongest part of the whole story. Employment is the most important thing in the economy so i remain much more positive than most given i think that the market is a little broader than most and the good industrials are doing better because were hiring. There are people being hired. An untold story. Right. Well see you in a couple minutes. Thank you. Coming up well have this mornings big movers. Whos the new guy . They call him the whisperer. The whisperer . Why do they call him the whisperer . He talks to planes. He talks to planes. Watch this. Hey watson, whats avionics telling you . Maintenance records and performance data suggest replacing capacitor c4. Not bad. Whats with the coffee maker . Sorry. We are not on speaking terms. Whats with the coffee maker . Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Join us tomorrow for the jobs report. Right now time for squawk on the street. Good morning, welcome to squawk on the street. Im david faber along with jim cramer. We are live from the new york stock exchange. Carl quintanilla, well, he is live from the code conference in ranc Rancho Palo Verdes in california. Hillary clinton and others have shown up at that event. Were a half hour from the opening of trading on a