Transcripts For CNBC Squawk On The Street 20170607

Also, a Senate Intelligence hearing in an hour. And the retail wreckage continues. Sears is closing even more stores and macys lowered guidance yesterday. Talking about margins. But there might be a bright spot and the name is walmart. Tesla stock hit an all time yesterday and where they might be headed with the model 3. First up, the president has chosen the nominee to be next fbi director as comey gets ready to testify on capitol hill tomorrow. Our eamon javers is in washington. What a day for news. Good morning, eamon. Good morning. So Christopher Wray will be the president s nominee for fbi director one day before the former fbi director james comey is scheduled to testify on capitol hill about his interactions with the president. The president has selected somebody new. Heres the tweet from the president just a few moments ago. He said i will be nominating christopher a. Wray, a man of impeccable credentials to be the new fbi director. Details to follow. What are some of those credentials . Heres what we know about mr. Wray. He was the assistant ag in charge of the Justice Departments Criminal Division from 2003 to 2005. He led the Enron Task Force and led efforts to address corporate fraud while at the department of justice and he received the department of justices highest award for public service. I just got an email a few minutes ago from a former high ranking fbi official who gave me his take on Christopher Wray. He said wray has a good reputation, hes confirmable, but big job for someone with his level of large Organizational Leadership and management experience. Will be big learning curve. Then something to point out here that this is a pick from sort of the establishments republican Law Enforcement circles and he knows james comey. In fact, he worked for comey at the department of justice when he was the head of the Criminal Division. S comey was the Deputy Attorney general who wray would have report to. Wray would have worked alongside Robert Mueller as the fbi director in those years. Mueller now the special counsel involved in this investigation into russian interference in the 2016 election. So wray knows intimately the two men most at the center now of this swirling controversy around the russian interference into the 2016 election. Well see how he handles that. What his confirmation hearing is going to look like, given that democrats are going to want some assurances that wray is independent of the president of the United States and is willing to keep that distance from the president even in a very political era. Republicans probably have the votes to confirm him and i just talked to somebody pretty plugged in in this town who said that he thinks that there will be plenty of democratic votes in the senate at the end of the day for Christopher Wray as well. Carl . All right, eamon javers, well see how the reviews come in. As that process goes on. Eamon javers in washington. Clearly, wray is a guy who knows securities fraud, he knows rico, bank security. Look, a heavyweight. I remember him on the enron case, followed that closely. He was part of the team that indicted skilling and indicted leigh. You see who else he was with, it was Deputy Attorney general james comey, who was involved. And mueller as fbi director. This is a seasoned guy. Look, i think that we had a woman amy an attorney speaking about her this morning. Speaking about noncontroversial. I think this is a guy, well, hes been at it for a long time, both sides, but he was a hard Law Enforcement and it seems like a guy who is as probably the least controversial appointment that i have seen trump make to date. I think hes kind of of the firmament. And 9 11 everything. He understands terrorism. He understands corporate fraud. Good pick. How do you expect the market to behave . Late yesterday we got a headline suggesting comey would not go so far as to accuse the president of obstruction. Then other headlines that said he will in fact push back on the notion that he told the president he was not under investigation. Saw a bit of a selloff. What happens in the next look, i think a little of volatility will shake out some the holders of some the companies who have become the nifty 50. Johnson johnson maybe goes down. United health. Some of the loved companies will get hit by a futures selloff and i think there will be buyers right underneath because there are so many buyers in the market. There was a headline that disturb med in the wall street journal, that there was worries of a reversal. The markets that rose in lock step Interest Rates down. And stocks up were the markets we loved. Im not going to say thats raising worries thats business as usual and not a reason to sell. If theresa may drives the market down f the ecb drives the market down or if comey drives the market down there the buyers will be there and aggressively. Conversely, if comey has not much to say wow, if hes just boring . Geez, if hes boring you have until 10 00 to buy. He wont be boring. You dont think so . Hes not a bomb thrower. You want to hear the answers to the questions being asked. What does that have do you think gorsky is going to be impacted by comey in front of the senate . The market is ignoring most if not all of these kinds of events at this point. Whether they be geopolitical or centered in washington other than the prospects for tax reform. Well, im watching mcdonalds. Mcdonalds its a nothing burger. Its going to go up and i think that thats where you want to be. If theres a hit from theresa may. Now we covered may this morning. Wilf is over there, he has the various about what what the panel will do. Very currency oriented. I come to the conclusion, wow, i like mcdonalds. You know . Sorry. I mean, thats prosaic, not as prosaic as my hair cut. Wow. Im liking that hair cut. A two year chart when they announced all day breakfast, you can see the inflection on the stock. Im itting its a correlation, but when they announced any october of 2015 i remember talking to easterbro easterbrook. Im a huge fan of the egg mcmuffin, its not as bad as you think. I was just at mcdonalds a couple of weeks ago. Easterbrook has them cleaned up. He has the buy in on the franchises. I love it. Thats the generic to watch. Thats the key to the market if things go bad. They cant get hit to save its life. Mickey ds this things go bad. The stock doesnt want to get hit. I use that as a bellwether of stocks that have nothing to do with politics that everybody wants to own. If it even goes down a sliver. Really . Isnt google, amazon, apple no no no. Amazon, yes. Amazon, yes. But the others, no. They dont have the consistent buying underneath mcdonalds united health, nvidia, broadcom, thats where the buyers are. If i hear about one more f. A. N. G. Story id rather hear about red fang. The f. A. N. G. Names have an overlay of mutual fund ownership, thats why they think theyre more secure than others. I happen to like them but theres a new f. A. N. G. I have 15 f. A. N. G. Names i can reel off. Its old school. Its an old thing. I wish i hadnt invented it at this point. Well, china f. A. N. G. Is the red fang. Ten cent is in whats the matter . Remember black tooth . Yeah. White tooth, i got red fang. It go. I learned about soupy sales and fang. Soupy sales is important in stocks. I understand the inner workings of your brain. Soupy sales was from philadelphia. Pivoting to some names that can get hit, i have more struggles in retail. Macys issues a profit margin warning and sends the stock down 8 yesterday. Much of the Retail Sector wit. Sears to close 66 stores in addition to the 1 50 closures that its already announced. Most of those closings involve kmart stores. If every store sells, the stock goes flying. And you have macys on the call paid 30 a day for that. Macys that look, if you go through the actual deck its great. Its great. Its great. And then on the second to last page they say margins could be under pressure it stings its horrible. A lot is about how they play the yield t cash flow. All the stores are profitable i believe. Yes. Now im not to mention that flagship, they wont. But man, a lot of value in that if they wanted to go down that road. Onethird the price of when we heard when we delivered negative output. When a very smart guy came. Jeff smith. Had success at starboard, not in this name. Hes long out. But hes not like greenlight, greenlight was like a north korean election how bad he lost. Yeah. Excluding greenlights vote. I think the north korean premier got less than you know, the north korean premier did better than gm when it came to greenlight. Didnt do as well as gm. Didnt do as well as gm. Red light, greenlight. I have to tell you this kohls, they all went down. Theyre like one giant etf. Except for walmart. Which held up there like a champ. Even though that amazons now doing the subsidized snap program. Walmart is number one on the fortune 100. Surpassing berkshire. I think theyre doing a great job. I cant tell you how fabulous one quick stat, trying to find some things going on as you look at revenue from walmart, of course which is always they do. You know . Almost 500 billion a year. Theres a big reed conference in town. Malls, key in terms of retail. And, you know, its a tale of two cities again here. Give me the worse the general growth ceo is talking about you have an amall, hundred dollars a square 23509 in terms 800 a square foot, you have a bmall t sales are down 4. 6 . So high quality in retail seems to be doing okay, jim. Although i would high quality a lot of times are foreign retailers. But im concerned because i listen to ulta, they talk about renegotiating the rates down when they are in these some in the malls. Theyre in more strip malls. Look, i think i used to defend federal realty because don wood they have done a lot of Experiential Shopping Centers but it doesnt matter because theres an etf and within the etf there are the real estate plays and theyre not working. But maybe people should be more discerning. May not be as bad for certain malls as seems to be the case. I think its interesting that david did the age of walmart. Then he did Mickey Drexler and amazon. Like a sandwich. It is. He does a lot of shopping, no. Never been only time i have been in the stores. Never even bought anything. You know that red fang is an american stoner band formed in portland, oregon. My daughter lives in oregon and theres a lot of stoners there. I dont want red fang coming after us. Give them full credit. A lot more to get to this morning including elon musks message about teslas future and robotics. And bancos rescue of a struggling rival. If we have another down day on the s p and nas, that would be three days in a row. Ur brokerag. 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. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise im ricardo, a sales and Service Consultant here at the xfinity store in bellevue, washington. Here at the store, we offer internet, tv, phone, Customer Service, home security. Every situation is a little different. It could be about billing, simple questions like changing the phone number. Sometimes, they want to upgrade, downgrade, but at the end of the day, you want to take care of the customer. One of the great things about comcast, theres always room to move up. Of course, it depends on you, how hard you work. Teslas aiming for yet another alltime high. Last night at the companys annual meeting, musk talked about the electric semitruck he plans to reveal in september. The upcoming model y crossover, he had some comments on twitter about the rate at which robots will in fact start stealing jobs en masse. He said that would be a linear progression. He thinks this will be hour algorithmic. Look, i think hes a big thinker and a lot of what hes been saying about robots has been right. He did talk about the fremont factory bursting at the seams and that the model y crossover has to be built at another plant. Its his time. I know that there are a lot of people who can say, look, i dont like any of the financials about this. But demand hes been right about demand. We talk about whats going to happen in china, Chinese Government likes him now. So this is a rather i know im reluctant, i know the stock is up on the short squeeze. Cramer saying buy tesla, people are trying to buy tesla cars and crossovers. I think that the demand is there. Nothing stops him. I mean, lets not forget the heat they took briefly at least from the Corporate Governance perspective on the solarcity deal. Remember that . Everybody whatever happened to that . Everybody concerned about the debt they were taking on. You dont hear a word. They could do a gigantic offering for it was important to them in the capital markets. Is ron barron right, youll quadruple your money in 20 years . Its got the its got the feel of nvidia. In terms of the technology. You know that by the way that the mobile guys will tell you off line that the Tesla Technology is not as good. What are the margins like on the cars . That would require you to understand the financials. Yes. Then youre talking about meeting, you know, kind of a im wondering if they can somehow get a premium the way that apple does for the beautifully designed products. Look, tesla you know, theres only one guy in the world who knows cars in a way that you know cars and thats jay leno. I changed my mind about this thing, because jay leno said its chrysler, ford, gm, and then tesla. Hes a car guy. The wall in a meeting suggesting that the wall have solar panels. What that i dont know. Could that be a giant bid on behalf of solarcity . My fight with elon musk, he said if we replace all the solar panels in northwest of colorado we can heat up the whole country. I started to talk about the friction of electricity and he said im a hologram. Theyre there and brv solar panels . Those solarcity guys trying to sell you. I have i had to buy a few things. What did you buy . A drill. A grill . A drill. Oh, i cant imagine you dont be anywhere on the west side when the drill is being used. That could be like whoa. Please. I like to put on the goggles and the drill, you know . Thats like a Lethal Weapon 7. David faber with a black decker. Well get cramers mad dash and take another look at the premarket as we kick off a busy wednesday. Dont go away. T the td ameritrae trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at td ameritrade. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. All right. We are about 7 1 2 minutes before the opening bell on a wednesday. Im here with the new sleek looking aerodynamically shaped domed my kids my kids have begged me for a buzz cut. Please. I took the selfie right there. They said, dad, finally, you look younger, better, trimmer. I mean, it was like holy cow. All for 25 bucks. Not bad. But when you have this little, you dont have to they dont charge you. Its like a discount. Well still do a mad dash regardless of that kind of hair. Thank you. Morgan stanley this morning, david, five reasons digital gain cycle just beginning. Now, you have seen atvi and ei as activism blizzard and the way to play it is take two. Why . Its not just grand theft auto. They have a redemption coming out in the spring but they own the nba rights to esports. And if you want to know the hottest trend in this country its esports. Me watching you game. Me watching you the nba rights . In other words people playing what do you mean they have a team . They have a team. A team that plays esports . Yes. It will have nothing well have scholarships. Nothing to do with playing basketball. No. Very stroudly they negotiated with shrewdly they negotiated. Its almost as good as owning an mls team ten years ago. You want to own a team. The chinese, the prc bought the Korean National team. Can you imagine . No. To win. This is all the marbles. Esports. Well, esports is is important to me. But i think strauss i remember grand theft auto. I dont play it because i dont get the connovations but he has a fabulous esport plan. Ea goes higher, they all go higher. Ok okay . Okay. Do you have a problem, im talk you doing, im the only guy in the room. Over to you. We have a lot more. Straight ahead. The power of 100 of the worlds top companies. The power of a proven 15year track record. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. Contdynamic performance,ion. Read it carefully. So you can own the road. Tracktuned handling, so you can conquer corners. Aggressivestyling, so you can break away from everyone else. Experience the exhilaration of the bold lexus is. Experience amazing. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. The opening bell is brought to you by brighthouse financial. Established by metlife. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in about a minute. Big day for politics. We have a Senate Intelligence hearing and a new nominee for fbi director. The president going to ohio to talk infrastructure. Apparently hell give some remarks on health care around 12 55 p. M. Eastern time. The way to play the Water Infrastructure some people are saying cy legal. I prefer pent air splitting into two. Theyll be laser focused on this kind of project. I really like that combo. Goldman said sell the other day i think it was misdirected. You have a selloff well, they have the issues involving nuclear. Thats a very worrisome situation. We keep getting downgrades of that and that makes me worry. Lets get to the opening bell and the s p at the bottom of your screen. At the big board, it is molson coors. Well talk to the ceo on squawk alley. Later on at the nasdaq, new age beverages, a maker of health and fitness drinks. So you talked about mcdonalds being the key to the markets but i assume youll watch for weakness in tech and financials as well. I think theres a lot of takeaways from what apple did yesterday. Amd is really a major part of the new apple family. Very, very important. And thats why that stock has been creeping up. Thats a very big win. Amd is a company that does not get enough credit for their wholly new look. I mean, look at the way that the stock has done. I think the apple 8 the iphone 8 going to continue to drive a lot of stocks and you know that broadcoms in there. And sky works is in there. And apple is off to the races again. Im i am sanguine about that right now. Because people thought it was over. There are a lot of shows that said that f. A. N. G. Is over. All i care about is there are certain tech stocks that are levered to the internet of things. And Cyber Security is a theme you can go back to thing. Internet of things is at the nascent stages. Internet of things, it is starting to happen. But its the earliest stage in terms of actually having the billions of Different Things that are going to be connected and the beneficiaries of the data thats going to be filtered and used. I mean this is just the earliest days. The cloud is really struck retail, retail has just moved to the cloud. Thats very big. A lot of chips to be able to do that. A lot of exciting now the strangest thing happening in tech was talked about by Mark Mclaughlin on mad money. He is from palo alto, when you get hit by a cyber attack and ransom ware, you have to pay them by bit coin. The cyber attackers have Customer Service desks to tell you how to buy bitcoin to pay them. This is not facetious. They have Customer Service desks. You want to know why there are many reasons that bitcoin i think the idea when youre attacked, they give you an 800 number to tell you how to buy bitcoin to get your computer unfrozen. What is a business. This is a supermarket, supermarket of finance. Supermarket of Cyber Security. Its global clearly. As Henry Blodget told us the other day, it can go to 1 million. I think it can. Its a short term way to be able to deal with Cyber Security. But it is the way. To pay off the bad guys. Because they dont want better than the bonds. The way you pay them is bitcoin and they have Customer Service. Your point on amd is so relevant. The top s p gainer. Its up 15 for the week to date. Its wednesday. Theyre in apple. Apples using their chips. I mean, whoever thought of that when they were on the ropes . They were just so down and out and they have made so many strides in gaming. Theyre in number two to nvidia, but everybody is number two, but amd. They had the Analyst Meeting where they ratcheted back expectations. A lot of people threw the stock out. Its a new company with a fabulous ceo. Doing so many good things. This continued focus on augmented reality. We talked to a couple of analysts about it pointing it out. I think the journal came back to it in their coverage of the apple product announcement. Or i should say the Worldwide Developers conference. Voice is so important. You know when you do voice, trying to un that device trying to understand you, nvidia. Thats why it had the second wind. Look at broadcom, its in everything. Analog devices got hit earlier this week. Texas instruments did well. Analog devices went badly. Apple is back again as the driver. Whoever gained market share and broadcom gained a lot of market share. I would not sell that stock. You have to hope that may loses in the election. Thats not a month, but a person. Theres tomorrow. Right. May loses, if the ecb decides to raise rates, and that comey brings the house down. And that may get broadcom back under 250. Its like piranhas in the water in amazon. On the other side, on the flip side of tech, we have a downgrade of coke and pepsi. Thats just heresy. Pepsi has a new ceo. Its got to be bad. Dr pepper, dr pepper, you know, thats tiny outfit. It can be swallowed up. But downgrade, come on. The best consumer package, good growth. Please. And cocacola, they are set to do that cocacola light. Theyre going to have very few employees. You think there are cuts in the overall expense . Because of franchising. Expenses of the company, yeah . Oh, yeah. They dont have snacks. I mean, snacks are incredible. That franchise and the number of turns, even in europe. The number of turns, how often they pay them once a month. Go through the doritos. We only go to get the supermarket, we buy them all. Younger kids, they but what is all right. We know sugary drinks are not in favor. Yesterday, i think it was seattle passing the tax. That has continued to mount. The stock i looked at this market cap on this company. Its been kind of the same for a long period of time. Right around 200 billion. Really, you think so . Mew char left them in great hands. Green mountain, they didnt make the move. Monster, they didnt own what they could have and now thats beyond their reach. Nobody is perfect. Like nobody is perfect, david. But i do like the situation. I like whats going on there. Because the new ceo, but i think ingenuity that downgrade. So is clorox. David, kraft heinz gets recommended today. Theyre in the center aisle. Honestly. Other than cheese whiz on the i mean, whos i dont know. Somebody seems to be eating this stuff. I still eat my cookies. Although those are mostly mondelez. They have that five year program. Theyre about to have an acceleration in earnings. Really . Cocacola is going to have an acceleration of earnings and mondelez . Yeah. Both of them. We have record high on play after yesterdays results. Which i thought was interesting because your stay at home notion sort of flies in the face of what dave busters has done. Its about experiential. When you go to the dave busters which i lot love to go i have lost fortunes there playing the silly games trying to get that claw the claw you know the claw . Trying to get that. But its eat, drink, play, watch. There was once a best seller called that. Remember, eat yes. Eat, pray, love. This is eat, drink, play, watch. The numbers are great. They have they need you need about 100 more dave busters. They fit in the large size Department Stores. You can put a dave busters. They have fabulous the new food t new chicken dish is great. They have 2. 2 comp gain. It was terrific. The guy who runs it, stephen king, hes masterful. Going to have 100 great incredible writer. Really is. No, he doesnt like that. He doesnt . No. I made that joke and he didnt like it. Too bad. Its a good joke. All in the drivery. No, he didnt like it. Hes his own guy. I did that didnt like it. Wow. Lets get to bob pisani. Seema mody on the floor. Coke is lagging. Good morning, carl. Yeah, a positive session so far for u. S. Market. The nasdaq also higher. We are setting ourselves up for what some are calling the most important day of the thursday. Ecb meeting and former fbi director comey testifying this as President Trump nominates a new director. I want to point your attention to the dollar. Slightly higher right now. Continuing to weaken against the japanese yen as the flight to safety theme has helped them to strengthen. 1. 09 is the key level. Overnight, china reporting that its reserves rose for a fourth consecutive month in april suggesting to some that beijing is now able to control its capital outflow. Shanghai composite, closing up by 1 and now up around 7 over the past 12 months. The other big talk of this morning is the drop in yields, not just here in the United States but around the world. The near term catalyst will be the ecb meeting that mario draghi will end the quantitative easing, but black box accepting a dovish tone from the president. Keep an eye on the german bund, testing a one month low this morning. Speaking of europe, Banco Popular is being rescued from collapse. It was a last attempt bid. Some see this as a positive sign and theyre sitting on debt and theyre trading higher. Some names to keep an eye on. Back at home, energy is a big talker. Crude dipping lower over concerns of an increased u. S. Output. Those Oil Inventory numbers will be very important. They are out in about an hour. Lastly, bitcoin still getting a lot of attention after mark cuban called it a bubble yesterday. But keep in mind, bitcoin has a 50 billion market cap. Meaning it is bigger than half of the companies on the s p 500. Seema mody, thank you. Were watching oil because of the inventories on the way that seema mentioned. Jackie deangelis at the equity desk. We are lower this morning after that api data last night. Ahead of that number ahead at 10 30. The api reported 3 Million Barrels in crude but an equal build in gasoline and a little bump in distill lates too. Theres a bit of a cancellation effect there. The eai reporting that opec production is going up, stoking fears that compliance with the promised cut is going to fade away as time stretches on. 15 months all together. Sustained cuts like that are challenging for some of the countries. We have producers like libya, pumping more and presumably the other ones too. Dollar weakness, seven week low should be supportive. Traders are looking at some of the other factors and shrugging off the dollar. Well back at 10 30 with the important numbers. Jackie, see you then. When we come back the Banking Sector in negative territory for the year, pulling back from the post election rally. Well talk to the ceo of kbw. As we go to break, look at how the bonds are performing today. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Pinterest has raised more money in the funding rally. Its up from 1 its up from 11. And it has 175 million monthly users. Most of them female, jim. Pretty engaged market. I thought that was incredible, you know, this is a unicorn that we havent talked about this company. Obviously its not you know, bothering it doesnt need to tap the Public Markets. I think this one is mr. Clean versus what you keep hearing about uber. Where it just seems to be every day a bit of negativity. Pinterest is unscathed. Well hear from Arianna Huffington later on this morning. Shes speaking at iconic and a board member of uber as they work through some of the hr issues. Very important. This, the companies have runway not to access the Public Markets the they dont need it. Look at snap. They do the two classes. The Corporate Governance conference, everyone is outraged about the two classes. Nobody votes. In terms of snap. Yeah. In terms of snap. Everybody is outraged. In the old days, the exchanges wouldnt allow it. The exchanges allow it. You know in the 1920s they have a lot of these and the exchange didnt like it and they cracked down during the depression. But its back. You know, you can always sell it. You can. It would have been nice if they could get gave the slight appearance you had a voice. But you know what they sold it that way. Caveat emptor. Theyre not vacuum cleaners. You have to be careful with the private market values. Theyre not efficient. Sometimes they talk about a value base in the comment, sometimes theyre selling to different parts of the capital structure. Where people got in at so to speak. The financials are doing okay. Theyre something. Yeah. Adam jonas had a note out on ford according to phil lebeau. The ford earnings outlook may be need to be reset by 50 lower. Not at all unprecedented to reassess the strategic priorities. Holy kou. You know, a lot of people are upset that mark field got fire. One of the most important cost saving initiatives was nixed by the president. But wow that would be unbelievable. These Auto Companies it is peaking around the world. Although i have to tell you some of the germany automakers are doing quite well. Yeah. Volkswagen is going to nut a lot of is going to put in a lot of charging stations. We didnt talk about that. A lot of them in europe. They have to put it 70 billion euros to recapitalize that. Thats right. Thats seen as a positive in thats a fantastic move by them. Very well run. The International Markets are far more excited than our markets in terms of what i see. Stats out today on euros gdp per head has outpaced the u. S. For years. What happened to the talk about the sclerotic socialist europe . Spain has nice growth. You say we dont talk often enough about spain. See, i devoted 20 seconds to spain. You want to be there. You do. Spain is a growth country. And that bank is now that like, you know, its like jpmorgan buying bank of america. Can you imagine what a power house . Well, you wouldnt buy say italy. Well, you know, no. The growth the election threat. I have been involved with the italian market and theyre theyre kind of a cash economy. Which is really amazing. Italys ten year yields are still 2. 26. 2. 26. Ten year yields in italy. Remember november 11 november 7, 2011 when it was at 7 and you talked about breaking the bank and jon corzine was with the then boom. And then draghi got in there. Those bonds were a buy. Yes, they were. But im not sure they are now. No. I would not buy those italian bonds. Just, no growth economy whatsoever. Everybody else i think the French Economy will come back big. Macron appears to have a nice tail wind. He can put together a pretty decisive voice. I have been buying, you know, a european well, my Charitable Trust i think the economies are strong. The automakers are strong. So much toe like about europe. So much. Now, that there hed take a trip with me to europe. He went to milan with Mickey Drexler. That was five years ago. Hey, mickey, lets go to milan. Did you get that nice suit there, that hugo boss . No i did not. They have them half price. This is 200 count. You cant it goes with the hair. I mean, like im a combination of kojak of nice. A little heavy this time of the year. I told my wife look, it will be a little nippy out. I said okay. Well get stop trading with jim in a moment. Dont go anywhere. 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. Its time for cramer and stop trading. Oh, wells fargo has a note saying under armour they keep it as a hold. But the steph curry 4 they think is selling well. You know what . If you do get a sweep, i think that people will want the curry. It does matter. Then i know that people felt it was a big disappointment. If you look through the numbers im not pushing this because it was up on takeover. But the fire jack daniels fire doing well. This is that fireball. Those of us parents out there are not crazy about fireball. This is the cinnamon kind of tastes like cereal. And i think it makes people excited about liquor, of course 21 and over. Its selling the fire. It is up 14 . I think that i dont know. Its too hot, how about that . But doing well. Whats on mad tonight . Im going to pick the winners and losers from asco. There are some companies out there doing things from this asco, we have craig bencher on this morning too. Theyre so excited about kids cancer. That you have to talk about them. You dont want to get anybodys hopes up, because i have been there once before on this, but its exciting. An impenetrable conference for some. Yeah. It took us three days to get through all of them because theyre not easy to digest. No. This suit is so hot i have to take it off. Dont do that here. No . Just wait. Let me go to tj maxx get some under armour clothes. Maybe a kmart suit get something tight fitting to go with your hair cut. When i went to Goldman Sachs for that marshalls suit, heres 500, just leave. Not the first corduroy. The corduroy suit. I thought it was a work of art. Still waiting for pictures. What color was that . It was light tan. Light tan, nice. And corduroy like louis cks tan car. Jim, that corduroy no. Got to go he sent me to moe bar thats low. What a show. When we come back the ceo of adidas on the impact of terrorism on the consumer. Well whatever from Arianna Huffington live from the iconic tour. The dow is up 27. Welcome back to squawk on the street. Keeping a close eye on washington this morning. Speaker ryan holding the weekly house gop leadership news conference. Well look for any comments regarding health care, infrastructure, potential vote on the choice act and a bunch of other things. Welcome back to squawk on the street. Im Carl Quintanilla with sara eisen and david faber at post 9 of the new york stock exchange. Markets having a nice morning. The dow is up 49. Led by nike. But obviously a lot of politics swirling around. Well get to all of that. Our road map for the hour does begin with that big morning carl mentioned in washington. President trump announcing his pick to be the head of the next fbi on twitter. And Senate Intelligence hearing is about to get under way. Weve got the latest ahead of that comey testimony tomorrow. Macys getting help after lowering the guide owns. And sears announcing its closing another 66 stores. You will hear from the ceo of adidas, Kasper Rorsted on how terrorism is affecting Consumer Sentiment in europe. The president is announcing who hell nominate as the next fbi director via a twitter. Here is eamon javers. Yeah. The nominee will be Christopher Wray now in private practice. He announced that in a tweet earlier this morning. The president said i will be nominating christopher a. Wray to be the new director to fbi. Details to follow. The president clearly feels here that these credentials will get wray through the Senate Confirmation process. He was the assistant attorney general in charge of the department of justices Criminal Division from 2003 to 2005. He led the Enron Task Force and led efforts to address corporate fraud at the department of Justice Department of justice. He received the highest award for public service. I emailed back and forth with a former high ranking fbi official about this pick and that official told me hes got a good reputation, confirmable, but a large job for someone with his leadership experience. It will be a big learning curve. Very interesting in terms of the comey testimony tomorrow. Christopher wray is somebody who worked for james comey. At the department of justice. When he was in charge of the Criminal Division. He reported to comey who was then the dag, the Deputy Attorney general. These are people who know each other. Wray would have worked side by side with then fbi director Robert Mueller whos now the special counsel in the russia investigation. So all of these fill use have been around for figures have been around for a long time. Theres a mutual dialogue here, see how the senate handles the wray nomination when get those confirmation hearings. As you say, we are teed up now for a Senate Intelligence Committee Hearing with all of the top intelligence officials of the United States scheduled to testify publicly here in few moments and well see where that goes. A lot of news as you say in washington today. Just gaming out the confirmation of wray since this is a big appointment. Wasnt he known at justice for going after corporate fraud . I think he was involved with enron. Thats right. I wonder if his background as a prosecutor, as a Law Enforcement official will help him. There was a big risk that the president would choose a politician, something he was repeatedly warned against. Thats right. In fact, the white house floated the name of joe lieberman, former senator, as someone who was a frontrunner in terms of their consideration a while back that seems to have died pretty quickly. He have gone with a veteran department of justice official here. Someone who is seen as a mainstream establishment Law Enforcement republican. That will go a long way to sort of calming nerves here in washington. I talked to someone who said that he thinks that anyway that there will be democratic votes for wray as fbi director even though the democrat even though that the democrats can block it with their votes alone. This person thinks that the democrats will throw some votes behind him and that would give Christopher Wray a clear path. But the question is how the hearings shake out. You can imagine that the democrats will want to pin down the incoming fbi director on the issue of the independence. The same very issue that the very same issue that comey was dealing with. Thats something well be watching for. Thank you for that. Well watch the leadership conference, in the next few months. Eamon javers in washington. Meanwhile, the Banking Sector dips into negative territory. Thomas show is the ceo of kbw. Watching this news conference. The chair of the conference is making some comments even as we speak. Saying that at the end of the day, dodd frank didnt help main street. What should viewers know about where policy going right now . My take on it is that policy has really not changed since the crisis. Remember, dodd frank was enacted seven years ago and even barney frank has been calling for some amendments to be made to dodd frank. My own opinion, dodd frank could be modified, it could be good for investors and it would not jeopardize the safety of the issue. Do you think the sector should be trading on that sort of thing or more about correlation to yields . I think the drive ore was all about the driver was all about the trump proposals. The bank stocks started to go up. From election day until march 1st they went up 26 . Since march 1st, theyre down over 10 , yet the market is up. I think a lot of it was a resetting of the expectations with whats possible from some of these proposals that have come out of the trump administration. You were talking about a number of cat lists in june that could revive the bank trade. My opinion, the selloff is probably too strong on a relative basis with the market. I think the bank stocks are attractive relative to the market. Bank earnings estimates have gone up year to date. Meanwhile, the estimates for the market have gone down. Yet the bank stocks have underperformed and there are some catalysts on the horizon. This month well get i believe another fed rate increase. Well hear from the regulators on the stress test. And ccar, i think both will be favorable for the industry. Well get the treasury study which i think will say give a road map for how this deregulation is going to work. Dont forget, earlier this week, joseph odding was nominated to be the new control over the currency. I think youll have a lot of personnel change ahead of us which i think could have an impact on increasing deregulation. They seem to be trading on the idea that the interest margin is under pressure as a result of the ten year and rates where they are, regardless of whether the fed i think youre right, david. The shape of the yield curve does matter. I spent a lot of time with our Research Department in the last couple of days. We think net interest margins will improve more slowly with a flat yield curve but they will still improve nonetheless. Oif you look at regional banks, you might get less improvement. But at least i think the big picture things have stopped getting worse. You are seeing modest improvement. We still get 10 earnings per share growth for the year. Do we need to see loan growth in real estate or consumer yes. Long growth is important. And by the way it hasnt been rosy. The First Quarter we had lower loan growth than expected and thats because the economy grew slower than expected. It will be low to mid sing to single digit loan growth. But yes, you need to have an improving economy for this to story play out. The fact that youre Still Holding out hope for deregulation of the Financial Sector it is because the executive branch can do that without congress or because you think the russia investigations and hearing is just noise and the legislative agenda will get done . Well, i think its the first part of what you just said. Dodd frank amendments then theres the choice act which has a whole repertoire of changes. You dont need all that for things to get better. My view point is that the regulatory view point has been stuck in the post crisis environment, were still writing rules for dodd frank seven years later. All you need to do is make it a little bit more realistic and still keep it safe and sound. And i think it will have a really positive impact on the economy and on the stocks. So my point is you can do it with executive action. It would be nice if congress acted. Especially if they change the 10 and 50 billion thresholds but even if you look at the volcker rule, whats interesting in the last year is that thats a fed study that says that they think that the volcker rule has impacted treasury liquidity. In the last week i saw an imf report that alluded to the same thing. This is really important. I think that the volcker rule for example is one of the items that should be amended. That gets to the capital markets, not an important area for smaller or mid sized banks but the big guys, they do still matter. It does matter in terms of ipo activity or simply trading or m a. Not much going on lately in any of these areas. Yeah. So i think the big picture is 2 or less gdp growth isnt enough. So the answer is yes, we need more growth because wed see more active any a variety of places. Now my world includes the mid and small cap banks. So very quietly we have been building and by we, i mean my firm and the industry is building regional champions. For example, my firm worked on a merger recently which is going to create the Largest Community bank in virginia and around the country you can see the regional champions starting to develop. But to get to your earlier point, david, the rule is that 10 billion to get to more regulation dont think for a second when youre 7 billion youre not spending money on it getting ready, okay . So the reality is that theres trickle down effect. An attitude out of washington that doesnt stop on the smaller banks. All i propose is if you take it to neutral its a win. You dont have to go into the heavy dregulation, but were in the heavy regulation mode post crisis. Last question. You see the lack of bank creation or credit union debt used as a political cudgel. Is that true . Are they having that big of an effect of creation or failure of bakes . I think youll see a pickup in the bank formation. I think the Bigger Picture here is 1 billion or under banks are less profitable than the rest of the industry because theres a scale necessary to overcome the regulatory expenses. So what you just described was small banks. Small banks below 1 billion in assets thats the definition are less profitable because they have a harder final overcoming these time overcoming these costs. So you can see it in the analysis. Good discussion. Tom, thanks for coming in. Tom michaud. The uk general election which was called by theresa may is taking place tomorrow. With wilfred frost has more. Its different than what she originally expected when she called this election. Absolutely. She had an almost 20 point lead in the polls based on the fact she was the strong and stable leader as she put it that could deliver brexit. That lead has fallen dramatically. Why . She announced a disastrous social care policy, then after the manifesto is printed uturned on it. Shes also been labeled as overcontrolling which has undermined her personal popularity. And corbyn has captivated many. It has paused in the last 24 to 36 hours in part because of the elevated status that security has on the agenda. Now, both parties have hit each other. We have breaking news, guys. Ill isnt back to you. Sorry to interrupt, but we want to hear House Speaker paul ryan taking questions. Lets listen. [ indiscernible ]. Yesterday, whos in charge yeah. So were were going to address the debt ceiling before we hit the debt ceiling. Were yeah, before it hits. So naturally, the treasury secretary should be in charge of the debt limit because its the treasury secretary who runs the numbers who runs the levers that control the flow of us paying our debts. So the treasury secretary is and should always be the person in charge of debt limit negotiations, debt limit legislation. Thats the natural thing. Every treasury secretary is in charge of that. Clearly, the treasury secretary wants us to do it earlier than later. Thats what every treasury secretary says and should be saying. Well work with them on this. Were having discussions on how to handle it before we hit the debt limit. [ indiscernible ]. Im not going to negotiate with myself and the media. Well have the discussions and find the best way forward. Well come one a solution. [ indiscernible ]. Im not going to get into it. Im not foreclosing any option at this time. Were having these discussions with democrats and the other side of the Capitol Rotunda over at the senate. [ indiscernible ]. No, i have been to qatar a number of time, to the military base there. Its very important for us. But i do think that we should put some pressure on qatar. Because qatar has i think they can improve their Foreign Policy lets put it that way. [ indiscernible ]. No, he didnt. No, but ray, right . I dont know the guy, but i have looked at his resume. He seems reich to me he seems like to me hes the right person. I thought he fits that bill. Thanks, everybody. All right. That is speaker ryan. Talking briefly about the debt creating. Adding that the treasury secretary should naturally call the shots. Its been the source of some discussion between omb and treasury. Who speaks for the white house and elements of how that ceiling should be structured. Yes, mulvaney from omb has at least introduced the idea of attaching certain things to the debt ceiling though whereas mnuchin, just a clean bill, just raise the ceiling which would be easier one would expect to get passed. Yeah. He gave a brief sounds like approval of President Trumps pick for the fbi director. A career person, i think someone with Law Enforcement and prosecutorial experience which speaker ryan seems encouraged by even though he said he doesnt know him. The Senate Intel Hearing will happen soon. And then oil is continuing to fall over opec concerns about rising output from the United States. Well talk to the former evp of saudi aramco when squawk on the street continues. Hey dad, come meet the new guy. The new guy . What new guy . I hired some help. He really knows his wine. This is the new guy . Hello, my name is watson. You know wine, huh . I know that you should check vineyard block 12. Block 12 . My analysis of satellite imagery shows it would benefit from decreased irrigation. I was wondering about that. Easy boy. Nice doggy. What do you think . Not bad. A used car, what do you think . Oil is continuing its fall for fourth day in a row on fears over rising u. S. Output an opec tensions after gulf countries cut the ties with qatar. Joining us sadad al husseini. Thank you for joining. My pleasure. How much of a wild card has been inserted into oil as a result of what happened to qatar in the last few days . I dont think they cut our situation that affects the oil markets at all, because the exports are coming from a variety of countries and qatar only exports about 600,000 barrels a day. Thats not going to be interrupted. So it shouldnt affect the physical markets at all. Does it bring complications to the extension in production cuts if in fact thats what some members believe are needed later in the year or next year . Well, were going to have an opec meeting and theyre going to meet to discuss the future outlook for production. Everybody has the same interest in sustaining a stable oil market. So i think theyll unless the political elections be on their side and try to focus on the economics of the oil markets when they come to the opec meeting coming up in a few days. Do you think it affects saudi iranian relations and actually exasperates that rift . No, i think the one thing that we have of all the arab leaders, Muslim Leaders and President Trump in riyadh focused on issues of stabilizing the region, trying to control all of the flow of income that goes to terrorist organizations. And it calls on everybody to do their share. I think the Current Situation is one of putting a little more pressure on qatar to try to get it to conform with agreements that they arrived at just very recently in riyadh. So are you saying that you think President Trump is right when he tweeted out that the decision to sever ties with qatar was in part because of the speech that President Trump made in riyadh . I think President Trump brought a reality to the situation. I think there had been a lot of adrift in the region for the last eight years and the brief in the Previous Administration and the risks of the oil industry in this region not having security and stability have become a little bit more of a concern for everybody. So i think he focused everybodys minds on that. And this kind of situation is a way to maybe give qatar a wakeup call that they need to work with the rest of the gulf states to stabilize the region to undermine all the terror thats going on across the whole middle east. Mr. Al husseini id love to get your take on the initial Public Offering of saudi aramco, is your expectation it will happen in the next year or so . If so, care to venture a guess as to what the value of the Overall Company will be . Well, thats a very complicated question for sure its going to go ahead. Theres no doubt about that. I think the benefits from it for both the kingdoms economy and oil markets are very clear and tangible to everybody. The valuation has a lot to do with the stability of the oil markets. Not only the price, but also the long term perception of stability. And i think thats one of the main issues, main focus areas for both our minister of energy, as well as the rest of the arabian gulf players in the oil industry. It will go ahead, it will be a successful ipo. This is a Large Company thats in a critical area of commodity supply. And has a lot of interest from both financial and other National Investment funds. But you believe as well that it will exasperate the pressure on kingdom to keep the price of oil stable . Yeah, its always been in the interest of the kingdom to keep the oil market stable. We have never wanted volatility, we have always tried to balance shortfalls with supply and excess supply with cutbacks. 10 so the idea of stabilizing oil markets has been the highest priority within the saudi energy industry. And it benefits everybody. Nobody benefits from volatility. Its one of the worst things that can happen to investments in the major projects. So yeah, its definitely high on the priority of the kingdom. Finally, when people ask you to explain why we have seen relatively sluggish demand, do you blame it on sluggish sub par Global Growth . Do you blame it on migration to renewables, something else, some combination of the above . This is i think its a matter of perception. Actually, growth has been going up annually over 1 Million Barrels a day per year. Around 1. 2, 1. 4. This has been going on persiste persistently. In addition to that, you have the erosion of the supply capacity from more mature fields. About 3 or 4 Million Barrels a year. All of that had to be replaced. Very fortunate in many ways, shale oil has come along because there havent been enough investments in the conventional oil industry. But demand today is almost 97 Million Barrels. Thats very, very significant number. Its going up to over 400, 500 Million Barrels. Supply has exceeded the demand, but i think were balancing back again. Interesting perspective. Thank you so much for your time. Its good to talk to you and come back soon. Thank you. Al husseini of saudi energy. When we come backing well hear from Kasper Rorsted. Some discounts are going on for adidas sneaker heres in the u. S. Squawk on the street will be right back. Weve done well in life, with help from our advisor, we made it through many market swings. Sure we could travel, take it easy. But weve never been the type to just sit back. Not when weve got so much more to give when you have the right financial advisor, life can be brilliant. Ameriprise more pain in retail. Sears announcing its closing 66 stores in addition to the 150 closures that it had already announced this year. Most of the new closings actually involved kmart stores. Then macys issued a profit margin warning that sent the stock tumbling down another 18 yesterday. The stock is down again 1 . A lot of people are worried about the margin issue. This is first time they called the meeting in several years. They heard from the new ceo whos been on the job for six weeks. The long time cfo an continued to process what sound like bad news. Even as cramer this morning talk about under armour and the potential for that curry shoe to finally take off. Pvh has had positive comments about the distribution of merchandise relative to europe and the United States. But this is a tough nut to crack. After macys was for a long time argued to have been most aggressive in store closing. Sort of set a new environment for what others did. Feels like theres the Department Stores and then the specialty retailers and theyre telling a different story. Nike is leading the dow today. Actually a few positive Research Notes around nike which report earnings in three weeks. The problems may have peaked. Youll hear about that soon about some of the discounts they have been seeing on the hot retro trends and whether that signals the tide is turning over there. Lets get to sue herera for a news update. Good morning. Heres whats happening at this hour. Isis claiming responsibility for the attacks on Irans Parliament and the shrine of the ayatollah khamenei. The attack killed 12. Lawmakers were in session and were ordered to shelter in place. Security was high as London Bridge and the borough high street were reopened after the attacks. New security barriers could be seen in place in London Bridge. Bill cosby arriving for day three of his Sexual Assault trial. His chief Accuser Andrea Constand is expected to return to the witness stand. On tuesday, she testified that she found herself paralyzed and unable to fight off his advances after she took pills that cosby said were herbal supplements. A study says that one in four American Families has decided not to seek medical attention because of the expense. It also found more than half of americans are worried that they may not have Affordable Health care in the future. You are up to date. Thats the news update this hour. David, back downtown to you. Okay, ill take it. Thank you, sue herera no the eia retail report is out and now lets go to jackie deangelis. Crude oil prices are down almost 4 . The eai said we have a build over 3 million in crude oil obviously from the api last night we were expecting a draw there. To add to that you saw the products build. Gasoline over 3 Million Barrels too. This is a bearish report. When you take all the factors into consideration that were building when we should be drawing, especially going into that seasonal summer driving season that doesnt seem to be panning out quite as everybody was expecting. Youre seeing u. S. Production going up. People are worried about opec complying with the cuts, lots of reasons for this price to go down. 45 is the next support. If we break through that youre talking probably lower 40s. People have been ruled that out at this point. They were trying to keep it plus or minus 5. Not sure thats going to happen in the short term. Back to you. Thank you, jackie deangelis. As we head to break, youre about there it is. Senate intelligence hearing on foreign Intelligence Surveillance act. That hearing is under way. Well bring you the latest headlines. And we will also take you there live next. With. The president getting ready to speak on water based infrastructure in cincinnati, ohio. Our Morgan Brennan has details on whats going to be a busy day. It is. So it might be about comey and russia and in washington, d. C. Right now, but in ohio, its infrastructure. So today President Trump talks levees, dams, ports from the ohio river. This is the latest focus on the infrastructure week. So americas inlands waterways they tend to be overlooked but the 12,000 mile network is used by tug boats to transport 14 of freight in the u. S. Each year. Most notably, commodities. 60 of grain exports travel this week and 20 or more of Petroleum Products and coal both used domestically by manufacturers and power plants and the like. But the hundreds of locks and dams have a 50 year design life and most date back to the great depression. So that means more maintenance, and more gridlock with nearly half of all commercial vessels experiencing delays according to the American Society of civil engineers. To fix this the Waterways Council has outlined 24 projects, only four have been started to date. It will take another 8. 7 billion to get all of this infrastructure going. Now, theres already a Public Private partnership in place with paying a hiked fuel tax matched by the federal government but still not enough. So trumps Budget Proposal would double that tax. Thats talk of implementing a toll system but therein lies the debate. Since barge is the least expensive shipping option, you raise the costs that can put more pressure on that sector and right when were most looking it a with this president looking to or promising to bring back manufacturing and the like. Guys . Morgan, see what the president says before 1 00 eastern. When we come back well go live to the iconic conference. Uber board member Arianna Huffington will joins us. And citadels ken griffin will join us. Oil is down 2 bucks on the inventory numbers. Were back in a moment. But theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading Companies Lead with digital. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Heres a riddle. The economy is growing, stocks are at record highs so why is the number of Public Companies shrinking . A top academic weighs in at tradingnation. Cnbc. Com. More squawk on the street coming up. Lets take you live back to cnbc and inc. Magazines iconic conference. Joining us now is Arianna Huffington. And also an uber board member. Nice to see you. Im hearing music. Can you hear it . That was the introduction. The special iconic music. Yes, i can hear you now. I lost the music. I can hear you. Great to see you. Nice to see you as well. Look, you know we have to start with uber. Big news yesterday on the 20 layoffs as a board member and someone who has taken the lead on fixing some of these problems, when is the holder report going to be hesed to e the released to the public . Well, as you know, the process of releasing this started yesterday with the announcement of how many people had been terminated, how many related resignations there were and the fact that the companys taking strong measures to change the culture and bring together different structures and different processes for dealing with complaints. And the holder recommendations are going to be released at the all hands on tuesday. Its actually a real Inflection Point for uber. You know, a company that over the last 3 1 2 years went from 400 employees to 14,000 employees and clearly, as you have seen, from what has happened the structures and the process have not kept up in they have not kept up pace with the growth. Yeah. I note previously you had said that there were a few bad apples at uber. Now after having seen the holder report, which i guess well know see on tuesday, do you still think it was not a systemic cultural problem inside the company . I never said there wasnt a systemic cultural problem. I was talking specifically about Sexual Harassment and the numbers released yesterday showed that out of 215 complaints, 100 of which were not corroborated, 47 were about Sexual Harassment. So it all depends on your definition of systemic. But what matters and what my commitment as the only woman board member is is to take that 47 number and reduce it to zero. When do you expect, arianna, some of the bigger jobs to be filled . We know that travis is looking for a ceo and other top positions to help deal with this issue. Well, we had some Great Results yesterday, some great announcements with the announcement of professor francis frye from harvard. And to me, the strategy and the leadership and with the training both of the leaders and also with helping all the managers, all the 3,000 managers at uber to learn to work collaboratively, to learn to work in teams and also the announcement of the chief officer. She left apple to join uber and is in charge of bringing humanity and the emotional connection that shes so great at to the brand. So a lot of great hires to come. And basically, the restructuring of the leadership team. Some board jobs are tougher than others. How much harder is this one than you anticipated when you joined the overboard last april . Its obviously been very timeconsuming, but incredibly exciting to see a company transforming itself. As you know, it was pretty unprecedented for the Major Tech Company to release the numbers yesterday. In 2014, google was First Company to release diversity numbers. Yesterday, uber released numbers of complaints, actions being taken. This could actually create a new way for companies, especially where the problems are much more rampant to address them in a transparent way. Some of our viewers are interested to know if the report on tuesday will be redacted in any way . It is a full report . Any difference from what was seen internally versus externally . We are going to be releasing the recommendations exactly as eric holder and his team have provided them. But of course its not the full report because of privacy and prejudice. Arianna, how concerned about about the ongoing trial involving the alleged theft of intellectual property from google over selfdriving technology . As you know, Travis Kalanick has terminated Anthony Lewandowski who came from waymo. This is an ongoing legal matter and i would rather not comment on it. To go on stage, but thank you so much. Im sure well talk more next week. Thank you. Okay. You have to go right now, arianna . Thank you for joining us. And talking to Arianna Huffington, the ceo of thrive and andrew will be talking to her about this business as they go on stage at the iconic conference with inc. Magazine. Thank you. Thank you. Bye. Sometimes we say goodbye. Sometimes the guest says goodbye first. We love arianna nonetheless. The dow is up five points. Look at stocks at this hour but keep paying attention to oil which is just pennies above 46. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov i did active duty 11 years. My in july of 98. And two in the reserves. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. Take a look at the namarket. Dow is hovering close and oil is the big story. Gasoline demand falls to 9. 3 Million Barrels from 9. 8 a week earlier. Weather on the east coast was pretty good memorial day. Driving season, you would have thought we might have gotten a little more pop out of gasoline demand. I think it is interesting that the u. S. Inventory data has moved the market so much on crude oil. It just shows what a producer the u. S. Has become. Amid the opec cuts, extension of the cuts where oil prices have been down since that announcement. Breaking now below 46 a barrel. After the qatari news, severing the ties with saudi arabia and others, always question about more supply than demand. Whats interesting, is it is not weighing on the overall market. Energy is the worst performing sector but you are getting strength in groups like financials for a change, because treasury yield are up, not a whole lot. We talked to tom at the top of the show and he gave you a lot of Different Reasons why he is bullish on the Financial Sector. Performing well today, which has not been the case that often in the last few weeks, given the fall. Were watching three pots boiling in politics. The president says he will nominate a new fbi director. He is going to speak on infrastructure in ohio. We have a Senate Intelligence Committee Going on. A aman watching all of that. This hearing is officially supposed to be on an aspect of the foreign Intelligence Surveillance act. Right back to you guys. Let me take you to device chairman warner here, at the hearing. There are reports out in the press that the president separately appealed to you, admiral rogers, and to you, director coats, to downplay the russia investigation. Now, we have got additional reports and we want to give a chance to confirm or deny these, that the president separately addressed you, director coats, and asked you in effect to intervene with director comey, again, to downplay the fbi investigation. Admiral rogers, you draw the short straw. Im going to start with you. Before we get to the substance, whether this call or request was made, you have had a very distinguished career, close to 40 years. In your experience, would it be in any way typical for a president to ask questions or bring up an on going fbi investigation, particularly if that investigation concerns associates and individuals that might be associated with the president s campaign or his activities . Today, i am not going to talk about theoreticals or the specifics of any interactions or conversations that i may or may not have had with the president of the United States but i will make the following comment. In the three plus years that i have been the director of the National Security agency, to the best of my recollection, i have never been directed to do anything i believe to be illegal, improperly, unethical or inappropriate. To the best of my recollection, during that same period of service, i do not ever recall feeling pressured to do so. In your course prior to the incident that we are here to discuss, was it in any regular course where a president would ask you to comment or intervene in any on going fbi investigation . Not this circumstance . I am not going to talk about theoreticals today. Let me ask you specifically. Did the president in the reports that are out there ask you in any way, shape, or form, to back off or downplay the russia investigation . I am not going to discuss the specifics of conversations with the president of the United States but i stand by the comment i just made to you, sir. Do you feel that those conversations were classified . We know there was an on going fbi investigation in the press reports. Yes, sir. I vuunderstand your answer. I told you i was going to bring this up. Sure. We have facts that there were other individuals that were aware of the call that was made to you, aware of the substance of that call, and that there was a memo prepared because of concerns about that call. Will you comment at all . I stick by the comments i have made to you today, sir. So you will not confirm or deny the existence of a memo . I stand by the comments i have made to you today, sir. I think it would be essential mr. Chairman that that other individual who has served our country as well with great distinction, who is no longer a member of the administration, has a chance to relay his version of those facts. Again, i understand your position. Yes, sir. I hope you will also understand the enormous need for the American Public to know. You have the administration saying there is no there there. We have these reports and yet we cant get confirmation. I want to go to you, director coats. When you appeared before asak, you said, if called before the investigative committee, i certainly will provide them with what i know and what i dont know. I have Great Respect for you. You served on this committee. I remember as well when we confirmed you. I was proud to support your confirmation. You said that you would cooperate with this committee in any aspects that we request of the Russian Investigation many we now have press reports and you can play them to rest if they are not true. We have press reports of not once but twice that the president of the United States asked you to either downplay the Russian Investigation or to directly intervene with director comey. Can you set the record straight about what happened or didnt happen . Well, senator, as i responded to a similar question during my confirmation in a second hearing before the committee, i do not feel it is appropriate for me to in a Public Session in which confidential conversations between the president and myself, i dont believe it is appropriate for me to address that in a Public Session. Gentlemen, i understand. I stated that before and i my thoughts were at sa tsk, brought before the investigative committee, will certainly provide them with what i know and dont know. I stand by my previous statement. We are in a Public Session mere. I do not feel it is appropriate for me to address confidential information. Most of the information i have shared with the president obviously is directed towards Intelligence Matters during our briefings every morning at the white house or most mornings when the president and i am in town. For intelligencerelate matters or any other matters that have been discussed, it is my belief that it is inappropriate for me to share that with the public. Gentlemen, i respect all of your service. I understand and respect your service and the administration you are serving. We will have to bring that forward that may document some of the facts that took place in the conversation between the president and admiral rogers. I would only ask as we go forward. This is my final comment, mr. Chairman, that we also have to weigh in here the publics absolute need to know. They are wondering whats going on. They are wondering wa tyhat typ activities. We see this pattern that without confirmation or denial, it appears that the president not once, not twice, but we will hear from director comey tomorrow, this pattern where the president seems to want to interfere or downplay or halt the on going investigation, not only the Justice Department is taking on but this committee is taking on. I hope as we move forward on this you will realize the importance that the maAmerican Public deserves to get the answers to these questions. I would like to respond to that, if i could. First of all, i told you and i committed to the committee that i would be available to testify before the committee. I dont think this is the appropriate venue to do this in, given that this is an open hearing and a lot of confidential information relative to intelligence or other matters. I just dont feel it is appropriate for me to do that in this situation. Secondly, when i was asked yesterday to respond to a piece that i was told was going to be written and printed in the Washington Post this morning, my response to that was in my time of service, which is interacting with the president of the United States or anybody in his administration, i have never been pressured. I have never felt pressure to intervene or interfere in any way, with shaping intelligence in a political way or in relationship to an on going investigation. All i would say, director coats, is that there is a chance here to later rest some of these press reports. If the president is asking you