Well get numbers on how much theyre looking to invest over the next six months. Speaking from the lobby of trump tower yesterday the president said both sides are to blame for saturdays violence in charlottesville, virginia. Following those remarks rebecame the latest to resign from the president S Manufacturing council. This is what he said this morning. These organizations at their core, thats unacceptable. Thats not an American Value its the symbolism of being associated with it the council itself is totally ineffective. Its never met its to be able to deregulate industry so its totally separate but its the symbolism of being associated with it that we rejected yesterday. Sort of echos whats on the front page of the journal and thats below the headline about the press conference itself on the lower left side of your screen or right side the ceo is rethinking twice the white house which is a whole new political calculus. When you have the 13th amendment deniers and holocaust deniers in a protest they tend to be in a suboptimal situation since our country does teach there was a holocaust and does believe that lincoln was collect in the 13th amendment so these are big issues for the populous and not just that particular incident a lot of statues to the confederacy and im not sure what will happen to them all over the south i have been to many areas and i can tell you that this season going away my daughter was in new orleans and statues are still remaining but have to tell you that the president needs to be careful. I typically would never say that other than in 1972, 74 he needs to be careful because these are preceps held by most of our country and not just by the people that protested and took down the statues. A. You dont want to go against Mount Rushmore we all learned this. Why isnt it moving the market its not moving the market. Go back a week ago where 10 Million People in the border of South Carolina were in play so to speak these are still not, the market is completely divorced from whatever is going on. One of my idols. My idols tend to be in business was talking about the dark star and of course thats amazon. Were more focused on the dark star that is amazon than the dark star that is racism and that is maybe wrong. I mean, often times that i wish the market would focus more on something that we think is important. I dont mind going into it now. I took the same classes everybody did. I went to school in pennsylvania and these are things that he we learned and theyre long held p preceps and i aint going back against what i learned or what my folks told me my father fought in world war ii it was a black and white issue. Yeah. Black and white. The president has been tweeting about that very company this morning for more on that and the day ahead lets get to aman outside of trump tower. Good morning, carl as you guys have been discussing the president woke up here to face the political fall out from his angry press conference in the lobby here yesterday the president really ripd up the script handed to him the more moderate script handed to him to deliver on monday after his failure to specifically condemn white supremacist groups and neonazi groups on saturday monday he did condemn those groups yesterday though he returned to that rhetoric of both sides. All sides that he had been so sharply criticized for over the weekend. Heres what he said just yesterday. I do think theres blame. Yes i think theres blame on both sides theres blame on both sides and i have no out the about it and you dont have any doubt about it either and if you reported it accurately you would say it. You heard the anger in the president s voice there. The emotion. His voice cracking at times during the press conference yesterday. And an event supposed to be talking about infrastructure and Regulatory Reform in the United States instead deciding to talk about robert e. Lee. They said there were very fine people on both sides including on the side that was marching for white supreme acy at that event. Those comments provoked a backlash the likes of which we havent seen so far in this presidency its a dramatic moment for President Donald Trump i want to play you another sound bite here because the president talked about the ceos that have dropped off hiS Manufacturing council in protest for the way he handled the racist violence in virginia. Heres what the president said about those ceos some of the folks that will leave, theyre leaving out of embarrassment because they make their products outside and i have listen lecturing them including the gentleman that youre referring to about you have to bring it back to this country. You cant do it necessarily in ireland and all of these other place. You have to bring this work back to this country. Thats what i want. The ceos were not resigning for the stated reason which is over the incident in charlottesville, virginia but instead because they manufacture products overseas. Take a look at the list of ceos that left the president S Manufacturing council. Some departed for reasons earlier and some of them since left their job but a number of them did leave in response to the president s handling of the incident in charlottesville, virginia most of them left before the press Conference Today one of the Big Questions today is what is going to be the reaction of American Business to the press conference we saw here yesterday. We see the reaction from paul ryan that put it out in a tweet. He said we must be clear, white supre supremacy is repulsive there can be no moral ambiguity. The president tweeting this morning he just tweeted make America Great again maga and he this to say about amazon on twitter. Amazon is doing great damage to take paying retailers. Towns cities and retailers are being hurt in jobs are being lost its clear the president would like to talk about something else. Holy cow. Amazon is hiring 100,000 people. Some of these have that many employees themselves tjx put on a clinic about what the American People want this is easier to talk about. But to amans point not just the speck to of resignations but he did address tax reform yesterday and said it would be here by thanks giving. Thats the timetable take a listen. We hope we can get taxes done between now and thanksgiving we would like to get infrastructure going as soon as tax comes out of the house and goes to the senate well put infrastructure into the house. You dont believe thats true no, this is such a distraction. Thats what we all want thats what we want from him and i dont know how he got so sidetracked on this. He has a chance to to major things to help the American Peoples pocketbook and the American Companies save a lot of money. He can do it but hes got to do it he did say yesterday that what would bring unity to the country and his answer following that press conference yesterday was more jobs and rising wages, right . That people, that that is universal. Yeah. That would be great. Thats a lot to put on an 8 year expansion mild as its been, yeah . Yeah, i they the economy nee needs. It would be remarkable to talk about pipe lines and deregulation. The press conference was supposed to be about infrastructure. Yes that would be great. Instead were trying to figure out who is going to be harry baker. Who is going to be goldwater who is going to turn in the Republican Party you got to get the dial up back to what you got elected for on the economic side as this stuff is very far fuelled. Yes it is. I dont want to talk about it but what choice do you have you have no choice it is the agenda thats set and our job is to respond and analyze it. Im always on the side of lincoln and eisenhower theyre like good. When we come back well talk about targets earnings beat and then apple said to be preparing a war chest for original content. Also ahead different perspectives on the ceo and the president. Well talk to Larry Summers and the president s first choice for labor secretary, former restaurant ceo Andrew Puzder dow riding a three day win streak and futures are positive. Were back in a minute finally. 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. At the lexus golden uncoopportunity sales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. For years, centurylink has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. We do business where you do business. We are pleased that Second Quarter traffic increased more than 2 reflecting growth in both our store and Digital Channels traffic up sequentially on a 1, 2, and 3 year stack. This is when we talk about the stuff that i dont like to talk about and why the market can still go higher. He had three components of his business food and beverage which had been bad. Now thats flat. But this Nintendo Switch brought people back and made it so hard goods are the strongest in ten years. Youre no longer bleeding in food now that could change but this apparel line that i love has very big margins and Nintendo Switch is the hottest game in history which of course is powered by nvidia. It all comes back to them. It does he underpromised and overdelivered and took a upod strategy here being the theme of the evils this year when we broke the huddle and thats exactly what he did actually innovation. The innovation of cat and jack of an apparel line when a lot of other companies are relying on brands that had been footballed so to speak. If you go over the quarter a lot of it is we have the brands we dont advertise. But theres a lot of pilot programs, one mentioned today where customers can fill a box with home goods for a flat fee. I love that and i love the small store format when i talked to brian over and over again like the soho, the beautiful new store in brooklyn not that far from the Old Fashioned target and you get the sense that target has split personality. You have the new target and a lot of people say this is was because he lowered so much so thats why the stock is not up 45 tjx was good. Target was good. Urban not as bad as we thought home depot was dark star Everything Else was about amazon the auto parts most of the questions are about amazon the president maybe on the Conference Calls maybe thats what he is doing. 100 s p companies, 1 out of 5, 1 out of 5 mentioned amazon on the Conference Call on earnings. You know, we have a gold company ringing the bell, if they mention amazon all games are off. Coach said listen we were protected from amazon. Thats a bad thing that hurt the Conference Call. One debate this morning really quick the president tweets about amazon not the first time some argue all he has are his tweets and others argue he has the antitrust division of the fcc at his fingertips. The problem with that is that what antitrust organization is going to come out for higher prices for the consumer . In the end theres 317 Million People that do win from amazon thats a lot of people i think thats who the organization the people of the United States. Im using that as an example that everything can be on amazon but the president s right to question how the people, that this is hurting the people of retail but he should also mention its been good for the consumer theres a lot more voters than the people that work at these stores i hate to give the guy advance but he needs so. When we come back well get cramers mad dash countdown to the opening bell and look at the premarket as we get the s p and the nasdaq trying to go green for the month of august. Back in a moment [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Opening bell in about six minutes. The sound track was better than the actual movie. Wheres reasons . It didnt work for Kidney Cancer 40,000 in this country and this was ineffective but the stock doesnt get killed anymore if you notice, bristol, this is when they lost out to merk but bristol stock doesnt want to come in because people in an environment where Interest Rates are so low and people like Growth Stocks and the dollar is now neutral for a lot of companies. The dollar is no longer bad. Its now good. On the yield element of this people mention the utility index. Record high the first time in a couple of months, does that suggest that reretest the lows of the year on bonds. Yeah. But yes were tick by tick because yesterday when Interest Rates were up a tad and friday when Interest Rates were up a tad the algorithm said go buy jp morgan and then they said go buy jp morgan. Market has no memory from daytoday. No, like cars i love cars and i do not count i just have a good memory. Well get the opening bell in 4. 5 minutes. Dont go away. Im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested with at t you can get your entertainment right here. Right now, when you get the incredible iphone 7 from at t you can get unlimited data and live tv. The channels you love. Your favorite shows and movies. Making your iphone into more of a. Oh my tv is ringing. Hey. Im in the middle of a. A second iphone from at t . Okay right now when you buy a new iphone 7 from at t youll get a second iphone 7 on us. And power both with unlimited data and live tv. A busy morning as were watching the retail action and reaction to the press conference yesterday. Maybe october is decision time. I dont understand how he can continue to get away with the low Interest Rates and i think trying to keep the euro down, good luck on that. Europe was way too strong. He is refused to recognize that europe and many countries have passed the u. S. In growth. I dont understand how he can get away with trade exploitation we focus only on the chinese which say mistake. The europeans desperately want to do it too everybody wants our market this would be what we should be talking about. Theyre deliberately keeping the rates down and deliberately trying to keep the euro down in order to take our jobs. By the way, preliminary 22 for the quarter. Above estimates of 21. Merkel has her cake and eat it too. Next few weeks are going to be key for her theres the opening bell and the s p on the bottom of your screen at the big board celebrating its ipo today at the nasdaq its in new york celebrating indias 70th year of independence. Very worried. A lot of the cell phones have to be made there. Now you can imagine the conflict the president clearly wants everything they hear but india really wants things made there as done china. I feel bad for brian for a second because he did open a factory in ireland i used to be an intelaholic. Factory was terrific but the last plant was going to be in the United States. That was a good commitment. Speaking of intel, Fiat Chrysler launching a selfdriving car alliance today. This is a big win because they are close they got their own chips this is a big move this is the steak in the ground brian was telling you was that he pays a huge amount of money and now theyre in the car so brian this is a good day for intel. The stock should be higher but people dont like the stock. Im glad you mentioned apple as well. A couple of things, they tapped the canadian bond market and they budgeted a billion dollars for original and licensed conte content. They got the guys from break bad it would be terrific i think apple obviously is faang because the a is a double a. Theres a great piece out by suntrust loves the g and the f. Initiates buys on all of them dark star borrowed money at almost the rate of the treasuries and dark star im sorry, amazon. Thats your new name. I love it, you know and i did buy flats. Those are where you get the actual plants from home depot a few years ago and i complained and he sent me a bag of tomato seeds and said maybe you better start from scratch. I remember that day. He is so smart. We talked about bipolarity of retail today sits green day yesterday was the red day. Today gap, l. Brands, target. No memory gaps going to be good too look, dicks was a really terrible call and it colors everything was ed stack thats a guy that a lot of people like very much, he bought back a huge amount of stock at 41 was that a waste of money . Absolutely he said look its the worst Case Scenario coach really took Gross Margins down that stocked people. It shocked me because the headline numbers were good it made you question the kate spade acquisition. The Auto Parts Companies we still dont know why theyre getting killed a lot of different reasoning going on but yesterday was almost all bad and tjx that had a fabulous quarter and put on the great clinic about how to beat all the guys and theyre wing and adding new stores, the stock was down because of the etfs were going to hear good numbers from walmart too i have a feeling that walmart is going to put good numbers up even for food. Thats tomorrow theres another good example. Jet. Com hasnt been heard from yet. I love their spending on infrastructure they play with the houses money and walmart is doing a lot of things right we havent heard all the good news but we will. Heres an incredible story. I have a train track next to me that runs three times a day. And the state that my house is in and its like ksu is the killer for nafta should be a ksu nafta held back. Ksu is doing great ksu is the one everyone is shorting and now everyone is buying a lot of irony in the market. Interesting who is going to be with us next time. A very dapper fella he had a very, he gave the statement that said listen, were not necessarily through with the investigation now that is so contrary to what this bank said i would like to know how the ceo keeps his job here by the way, Elizabeth Duke what were find as good that the better we get at Digging Deeper and looking at various processes the better we get at Risk Management the more issues we might identify overtime the new information will lesson so its not the time to say we found everything and its all behind us. I thought it was. I thought they had gotten to the bottom of it up now 5 and then peltz sends a letter back accusing them of falsely misleading statements in their response. Thats getting very ugly. Its as ugly as the reds how bad they are this year im surprised its heating up but it has been great for the stock. And you said his request is reasonable maybe spend 100 million to fight him on the board boeing stock continuing to go higher because tanl list continue to underestimate it this is a tough one for me i really like what they have done cant we all get along i hate it when you guys fight. Yeah. Proctor is the army. Its better to bring him in and have him do that work. Hes not that bad a guy. He said it was great when nelson came in and so did the ceo of heinz so why not. What does Richard Hanes say youre doing things that one typically wouldnt do in a business the elephant in the room there, you know who it is is doing a lot of things without regard to the bottom line and is getting rewarded for it. The elephant in the room the dark star. That sucks everything in. Those people with 100 different amazon references, does that count . Every single month was better than the other month thank you. Nice improvement in regular price comp for womens apparel they have now recently moved into positive territory. Thats why that stock is up. I go back to home depot but at a certain point cant we say theres good overlap. Home depot was levered to rising housing prices and i think we have those and its levered to household formation she said it over and over. Dow is up 50 point with the help of depo lets get to bob. Good morning guys, happy wednesday. Nice right around the board here 51 advancing the declining stocks europe is doing great as well. Mostly up 1 theyre doing well because there was a piece out of reuters saying draghi is going to put the whole thing off into 2018. We can see the euro down a bit on that dollar is up and the exporters over there Companies Like airbus or royal phillips jcpenney is a 1 billion market cap. Target had good numbers. The comps were improved. Transactions up 2 but pull year comps thats going to be flat and thats the problem here take a look at the revenue numbers. What people are afraid of is we dont know where the bottom is for years, 72 or 73 billion year when is that going to end . Thats what nobody can answer. So look at target up 3 today and its down 22 so you can answer that revenue cliff question its going to be hard to get a notable rally new lows yesterday exxon sat a new low as well. All the enp companies have been a mess because nobody can get the price of oil right all the analysts were saying oil is close to 60 dr 60 a better and the average for oil is 46 thats a big miss. People thinking theyre going to make 4 cents this quarter on april first. Theyre dropping like crazy and the inability to get your hands around the problem is the big issue here the problem for oil stocks, two simple ones. We dont know what the valuations are and the other problem is a bigger one. Investor interest is drieg up. Think about this, Energy Stocks are only 6 of the s p 500 right now. Technology is 22 if im a hedge fund investor, if i am an active mutual fund buyer im going to sit there and say why do i care about Energy Stocks when i can Ride Technology and financials and health care thats a huge part of the overall business thats the problem getting money interested in oil right now. Finally i want a note on the earnings picture lots of big news outside of the United States. Global gdp right here. You can see this on the earnings picture. Companies that have more than 50 of the earnings outside of the United States are reporting higher earnings. Less than 50 outside of the United States is only 8. 5 the Global Economy is really helping the earnings picture of the u. S. Corporations. Lets tell that to washington. Right now the dow up 54 point backs to ou. Good morning to you rick. See that not much action. However dont let that fool you. Look at the one week chart low to high up 10 basis points yields are bouncing back to areas we traded quite a bit before when it comes to japan and the bank of japan, talk about mission control. Their central bank has a desk controlling everything whether its the yield curve, etf, corporate securities, all securities, stocks, everything but its very fascinating after having said all that, heres year to date of our tens versus jgb tense. First half of the year they core late nicely. Do you notice the recent divergence as rates start to move down in the jgbs. Were toying with four basis points that happens to be the lowest level should it close here since the end of may something to Pay Attention to when you consider whats going on with the dollar yen same for the Euro Currency its losing steam. Theres one week of the euro verses the dollar. Theres a lot of issues out there but lets not forget mario draghi what he may or now most recently may not say, the jackson hole weekend is starting to take a toll not only on what Central Banks outside the u. S. Will do. We were talking oil a moment ago. You can see here at wti crude up. Oil prices are higher this after api said that crude Oil Inventories fell by 2. 9 million bar rels analysts for looking for a little over 3 million barrels. Now Traders Keeping a close eye on the u. S. Government data on Oil Inventories due out later this morning it would represent the 7th straight week in the u. S. Helping to keep prices steady. Its worth pointing out that despite the stability and Energy Prices they continue to feel the pain check this out both hit 5 week lows in trading yesterday. Well see if they get more of a bounce today back to you. Well see you in a bit. Cisco is due out with earnings after the bell well have a first on cnbc interview tomorrow morning at 9 00 a. M. Eastern time. Stocks creeping up. We have to be careful. Guidance lower last time. Dow is up 54 here best day for retail since july 25th and the best day for urban since the ipo in 93. No, come on, wow. Back in a minute. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. The real question is why did he need an extension it reminds me of a spoiled brat in school asking the teacher for an extension. We talked about p g getting spicy and this is well above that. I spoke to the gentleman too and can i just say they have a high touch business and i think that rodriguez had done a good job. Now im close to paychecks finally we got a sell to hold today for paychecks but those of us that use automatic data, its very good as a vendor to me. I would hate to see them lose that personal touch which is expensive. They do a very good job for people like me who are small, even im small to medium. Thats good color well see what ackman has ready to say dow is up 58 points. Dont go anywhere. And the wolf huffed and puffed. Like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. 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What are we doing take no prisoners. Upon. Upod on 3. Upod. The importance of under promising overdelivering there you go thats the fill eagles in training camp. And one of the reasons why the stock isnt flying is he did underpromise and people figured out upod in his game but i think in philadelphia its a necessity because if you say youre a dream team or youll win a lot of games you could be slaughtered by the fans. Would have made a great nfl coach. Congratulations to them. Whats on mad tonight we just got kl which is the company that rang the bell but more importantly we have joe papa and when joe was on last time you could say we were hard on joe and joe cleaned up that Balance Sheet and joe has done a lot of the things that people didnt think they could do i cant wait to speak to him by the way, philadelphia. Well see you tonight at 6 00 p. M. Eastern time when we come back different takes on ceos resigning from the white house council. Well talk to one time labor secretary nominee. Dow is up 62 good wednesday morning, welcome back to squawk on the street wilfred frost here at post 9 of the new york stock exchange. Take a look at the markets good action at the open. Dow is up 67 a lot to watch not just the president as he returns to new jersey but also fed minutes this afternoon retail earnings and renegotiations of nafta begin. Our road map for the hour begins with rolling fall out more Business Leaders distances themselves from President Trump after he doubles down on his response to charlottesville. Trian urging to vote peltz on the board. Plus a shake up on the board of wells fargo nominating a new chairwoman. What she said about helping the bank put scandals behind it. More including reaction from the business world. Thats right. All quite here at trump tower in contrast to the press conference yesterday afternoon. So far no major comings and goings here. We just say the wife of eric trump entering a few moments ago. Family members coming and going. We havent seen the major figures yet today. The president said they didnt do it for stated reason. But instead did it because theyre embarrassed that theyre manufacturing American Products overseas heres what the president said. Some of the folks that will leave, theyre leaving out of embarrassment because they make their products outside and i have been lecturing them including the gentleman that youre referring to about you have to bring it back to this country. You cant do it in ireland and all of these other places you have to bring this work back to this country what i want. President also facing the resignation today of the president of the afl cio that explained his reasoning for why he stepped off the president S Manufacturing council. These organizations at their core are based on racism and bigotry. Thats unacceptable. The issue is separate from the symbolism of being associated with it. The council itself is totally ineffective. Its never met to be able to deregulate industry so thats totally separate but its the symbolism of being associated with it that we rejected yesterday. Glies are a large number of ceos on the president s various Business Councils that have not spoken out publicly and have not said one thing one way or another whether theyre remaining or departing from the council. You can imagine the pressure along with the pr staffs as they huddle and try to decide what to do here is going to be enormous. Back to you. Absolutely. Some of them trying to figure that out as we speak thank you. For more on the current climate between President Trump and ceos were joined by former cke restaurant ceo welcome back to the show. Great to be back. We have been very eager to talk to you do you disagree with the actions of the ceos that have stepped off of the Manufacturing Council in the wake of charlottesville . I think they certainly have a right to step off if thats what they choose to do. Its short sited the councils are set up to increase Economic Growth they increase jobs were working on tax reform, Regulatory Reform. All the things that make a big difference to American Businesses you have a voice at the table why give up that voice ceos have to make decisions based upon longterm with respect to policy. Theres a lot of different factors that figure into it but i think with drawing is shortsighted. Do you wish the president would have been able to more specifically denounce hate groups likeWhite Supremacists. He said that racism is evil he said that the neonazis, the White Supremacists were repugnant to our American Values theres tapes going back to 200 where President Trump makes comments that show he has no support for or tolerance for racism or these white supremacist groups could he have been stronger. He said there were fine people at that rally he was thanked in a very public tweet by david duke from the kkk after his News Conference yesterday. Is that going to send the right message for corporate exec withdrew tifs that stand by the president s side. Number one you cant control who supports you or comes out with statements in favor of you. So i cant deal with the david duke issue youd have to talk to david duke as far as the president s comments, im not sure what he meant by there were good people on both sides. I think he was trying to come out with a statement that opposed violence in general no matter which side it came from and i think thats a fair statement. I think he wanted to let people know that everybody has a First Amendment right and the aclu which i very rarely agree with but in this case they defended the people on far right, the alt right in this situation so i think he was trying to be balanced and was very frustrated when this attempt to appear balanced was used against him. So im not sure what he meant by that exact statement but i think in general his comments he did condemn the violence and the racists so i wish he done more but he probably wishes he had done more but at this point we are where we are. How damaged do you think the president is how much pressure is he personally feeling from these resignations and comments from ceos and also comments from various republican members of congress hell be fine politically im more concerned about the agenda were obviously having very difficult times with repealing and replacing obamacare. Im concerned about the agenda and his ability to move it forward. I think longterm politically hell be fine but this say problem in the current day. What if the criticism, the public criticism and or even resignations spread to his own administration, members of his cabinet or close advisers and do you think thats likely . It would depend on who resigns. I believe hes on the team hes very essential to the team. Theres people that are essential to the administration. Is batz of Republican Opposition democratic opposition . Do you see him being isolated from the Business Community . Why are you more concerned i dont think hes isolated from the Business Community and particularly Small Businesses which really generate a lot of the jobs in the country. All i hear from the people that run Small Businesses from franchises and other people that run independent businesses is theyre not wroirorried about ts going up and the upside is they think well continue to get regulatory reduction and maybe tax reduction. So what im more concerned about is the senate. We seem to be unable to get things done in the senate. Its a problem with republicans. But right now its a problem just getting republicans to come together to advance the agenda im more concerned about that than anything else. Did yesterdays press conference make that more difficult or less so. It was already difficult. I dont know whether or not its more difficult or not. You have some senators that werent pleased with the press conference we have an he election coming up in 2018. Theyre all going to be thinking about that i dont think any of them want to have President Trump out against them whether or not they want him to come in and campaign or endorse them well have to wait and see but it does effect the agenda. Im hoping question get past this around get on to discussing the economic, lets get back to the important issue and whats going on in the economy. But the role of executives in trying to figure out how to do tax reform and infrastructure spending, this whole debacle and the fact that so many ceos left raises questions about the efficacy of the councils to begin with does the president listen to his ceo advisers the president he is really a guy thats very open to other peoples opinions and if you make a convincing argument he slg to listen and take what you have to say into consideration and adjust his position to fit the new circumstances that you bring to his attention. I think we have seen that since he has taken Office Versus what he said during the campaign. He now said look i learned a few things and my position is different on this or that issue. She willing to listen so i would encourage people dont give up your seat at the table if you have a chance to influence policy dont give it up or walk away or let people drive you out of the room. Its very important to state their two cents. I was happy with jamie dimon when he came out a week or two ago and made his statement two years ago he would have never made that statement. He would have been afraid to say anything so american executives willing to speak up is important dont walk away from the table stay in the game and lets see what we can get done. Yesterday the president was asked what would he do to improve Race Relations in the country and his answer was one word, jobs what do you say to that . Is that actually the solution to the root cause of the issue . Its an important solution. When the owner of the shop gave me the key and told me i could open up in the morning that was one of the proudest moments of my career. I felt like i owned the place. Thats the feeling that keeps you in skoochlt its the kind of feeling that makes you want to get more of an education its the kind of feeling that keys you out of gangs and supportive of your family. Its the buy into the american dream. If we can get people working and give them a buy into what elevated all of us then we have a chance of improving Race Relations. We have a chance to improve things you and jobs are a big part of that and the feeling that youre engaged and participating would be hugely helpful. Would there be anything that the president does that would make you not support him is there a line thats too far to cross sure. If the president had not come out and made comments about the evil of racism or saying these white supremacist groups were repugnant, if he hadnt done that i would have had some real serious concerns about where were going. However even the members of the alt right have a First Amendment right. He hasnt done them yet but he has done things. He may be giving you a call he has some vacancy for some council. Thank you for joining us today. Former ceo of cke restaurants. When we return a bright spot in retail today. Target beat the street on the top and bottom lines well dig through what it means for the sector plus former treasury secretary Larry Summers is with us well talk to him about that and more when squawk on the street continues. Experience advanced Safety Technology at the lexus golden opportunity sales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. For years, centurylink has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. We do business where you do business. Target shares are upbeating on the top and the bottom line the stock is still down more than 20 for the year. Lets bring in the retail analyst at barclays and the managing director at city. Good morning, good to see you both. Good morning. A lot to talk about here. Ill start with you. Transacti transaction, traffic, theres nice digital mixed in here can we put a lid on some of the troubles they have had in the past we have seen this before and sometimes it hasnt been that consistent its a step in the right direction and theyre doing a lot to improve their business but we need to see more sustainable improvement for tous feel better about the direction theyre moving in. Any reason to think that its getting less lumpy over the near term here now . I dont think so. I mean yesterday we had Dicks Sporting Goods come out and give pretty negative views on the retail industry. Were hearing that consistently across the industry that retail is challenging and target did put up a good result for the quarter specifically on the top line but the question is what did that cost target the bottom line, the operating income was down double digits and so while theyre growing sits cost of that growth that i think investors are questioning today. Is that why we have seen a pull back in the share price since its initial 3 gain the issue is that the overlay now in terms of sentiment and consumer disgrecretionary is interest a very negative bias across the street because of the competition from amazon so why you see positive improvement in stocks is when you do see some hints that maybe they are competing more effectively against some of these secular competitors that have emerged and been competing more effectively. Thats what people are looking toward but its right to look at every aspect of the business traffic was better but you have to look at margins and see how theyre competing. How do you pick a winner then in this environment . And we did see shares of kors and ralph lauren last week but then Urban Outfitters look what they reported last night and the stock is being rewarded for that. Its a good question. They either provide a service to the consumer or Innovative Products things the consumer is not necessarily used to so they want to experience it in a physical world before they buy it thats hard tore come in and take that market share. Quickly here, characterize for us the Competitive Pressures and the difference in those pressures between grocery and apparel. At least at target. Its a highly fragmented business you have a lot of competitors in that space certainly the acquisition of whole foods turned everything on its head thats a dimension that everyone is going to contend with and then apparel, there are secular concerns in apparel in terms of how much people are spending on apparel in general as a percentage of wallet and all the price competition thats happening as well. Thank you guys. Thank you. Still to come, a major shake up of the board at wells fargo i spoke with the incoming chair. What she told me about how the bank will put its scandals behind it and more squawk on the street will be right back dont go anywhere. We have a pretty broad base raldly dow is up 72 points. Lets go to rick santelli. Good morning. Good morning and thank you sarah. Heres a man that needs no introduction he has been roaming the halls of exchanges since the Carter Administration maybe earlier than that. No. When it comes to news, i read newspapers, you read newspapers, watch tv, read blogs but i still say the biggest story of all times gets no coverage of course hes not going to put the short story here is everything in everybodys lives in every country from the richest to the poorest is going to be effected by how Central Banks deal with the policy they create and its crickets in terms of having any understanding of what tsunami of financial chaos may arrive. It doesnt matter it doesnt matter to the general public as long as the equity market comes up. Trump doing this doesnt matter. Nobody cares it doesnt matter and it goes back to bill gross and those that are also copy catted. Hes been out there. For those that dont trade every day, see that . Thats the treasury options pit. Selling calls, selling puts and theres a high correlation between that and the size and presence and footprints of Central Banks. Listen, he has been dead right. From 2010, 2011, dont fight this, theyre going to supply the equity that i need and they have done it and because theyre still there, classic case. Most people dont know that at the close of last friday the ecb bought 25 in assets. They still have 25 million to buy. Exactly and you have to follow and which is more you have to buy even though they violate their own rules all the time but theyll buy 60 billion. Its 140 million. Lets look at the markets now. Thats strange until we had conversation quickly finish and let many viewers understand why these seem to occur. The french yield 74 im talking about the ten year and the italian is 202 i think so its just a search for yield. So its to spread relationships. The best credit is the bunds get cross traded and may move in a counter intuitive fashion. I could talk to you for hours. Thank you. Back to you. Thanks guys, when we come back a new push for nelson peltz to be nominated to the p g ard. Dow is up 70 points. Dont go away. 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. Think about what you have seen reminiscent of germany in the 1930s. The president has to totally condemn this and this is not about winning an argument. Baltimore removing 4 confederate statues under the cover of darkness this morning hundreds of people are still missing after mud slides and flood waters in and around the capital killed more than 300 people many of them trapped as they slipped. With more than 600 people still unaccounted for, the death toll is expected to rise. Youre up to date. Thats the news update this hour sarah back downtown to you. Sue, thank you. A new development to tell you about in the proxy fight between Procter Gamble and investor nelson peltz who is pushing for a seat on that board theyre telling them to vote for peltz, that latest shareholder letter sent this past monday was full of false and misleading statements intended to justify maintaining the status quo at p g. Well, today they say that was completely wrong, the whole point that nelson peltz is trying to get on the board to satisfy his investors. He has the best intentions they say and just once the shares to perform over the longterm heres the argument. They do own 3. 5 billion worth of p g shares. They have underperformed they point to specific me tricks like organic sales growth. Volume growth and Earnings Growth as well p g got more personal this week saying that peltz backed Company Returns werent as strong as the overall industry and that he only wants a seat to satisfy his partners so clearly guys this is getting ugly and heres the question for shareholders ahead of the october 10th vote. Theyre pointing to the fact that he has decades of experience advising Companies Like mondelez, sis coe, heinz, when dis how beneficial it is to have him on the board its all a big distraction and doesnt bring new ideas and they dont need to have a shadow Management Team that they typically bring in according to their allegations. Which way will shareholders go a lot depends on your time frame of when youre looking at the Stock Performance because they say over ten years under performance, p a g said over th time the stock has out performed. How much do you think is strength in numbers in terms of activists attacking this type of company you throw in unilever and buffet and 3g, you have the nestle third point issue theres similar criticisms in terms of what they want the companies to change and lets jump on the band wagon. Im not sure theyre doing it because, theyre not banding together and plotting to do this i would say though it does highlight some of the weakness in the Consumer Staples business right now. Household products, food and beverages, none of these companies are growing top line a lot of them are vulnerable a lot of them have many costs to cut and thats been going on for the past few years and the question is now what how do these Companies Get growing again . They have been challenged by ecommerce and the way consumers changed their behavior and shop, eat, consume products every day like tooth paste and as a result theyre vulnerable but p g is an interesting case because its got this new ceo, its shrunk, its slimmed down, spun off a number of brands and this is the Biggest Company ever to face a proxy fight so it will be an interesting test. And on todays time frame its up. Its been good for the shares. Indeed. Now Corporate News wells fargo announcing big changes to its board after a year for the country. Steve sanger will step down and Elizabeth Duke will replace him. He joined in 2015. Oi spoke to the outgoing and incoming chairs last night the first takeaway is the reason for the timing for this announcement is not related to the recent filing revealing problems but more interesting is that i ask duke whether she is confident that his recent turmoil was behind the company i got a very unconvincing response its hard to say what were finding is that the better we get at Digging Deeper and looking at various processes the better we get at Risk Management the more issues we mighted idea overtime new information will lesson but its not time to say we found everything. She also seemed to imply these are going to exist in all companies of her size and she said her own 75 was unacceptable and would rise next year which would point out that duke is now one of the most senior women in the u. S. Banking space. Of course the first chair of one of the big six banks. Amazing story all of these corporate dramas, uber, wells, p g my question on the wells, why isnt she saying that everything is behind them if the ceo said that thats the big contrast to what we heard particularly in the last six months from the ceo who seemed to suggest its going behind him now id say the tone of what she was saying last night was that this relates to everything that theyre looking at so not just the cross setting scandal but now theyre finding issues elsewhere. Well today has been in the works for months the three countries coming together for the first time in nearly a quarter century to revamp this agreement but a u. S. Trade representative came out swinging with hard hitting comments while he talked up some of the benefits to farmers he said overall its failed many americans. By some estimates its cost 700,000 american jobs and in some cases more and he agrees with the president that this is not a deal that needs tweaking that it needs major improvement going forward. Canada and mexico said the trade deal has been successful trade with the u. S. Is largely resip res reciprical and on balance. Their major goal was to do no harm in these negotiations canada said they dont measure trade successes so clearly some differences on display as the three countries try to reach a compromise on how to move forward today. Back to you. Thank you well be watching that as nafta is renegotiated. Business leaders resigning from the White House Advisory Councils in response to the comments after the violence in charlottesville. In this blog post yesterday Larry Summers criticized those still remaining on the council saying they should all quit. Joining us is the former secretary of the treasury. Its good to have you back. Good to be with you. You have been critical before coming out of the paris accord and the blueprint on taxes you said you thought the treasury secretary should resign back then. Is this any worse than those episodes before . This is unlike anything we have seen before theres room for debate on policy issues. But this is producing basic american traditions of justice inclusion and fairness one could not have imagined a president of the United States who would endorse White Supremacists or put them on equal moral plane with those marching in support of civil rights i dont understand how those who are supporting him are able to face their children. He didnt endorse these group or in fact he said hes not putting anyone on a moral plane. You might have misspoken there. He is i didnt misspeak. He is equating White Supremacists, one of whom drove an automobile into a crowd of innocent protestors with those in support of civil rights no previous president has taken any position remotely like that. When children were trying to enter schools in little rock president eisenhower did not he quake those supporting them with the racists at the door. When the marches took place in birmingham, alabama, president kennedy knew in which direction the arch of justice bent this is an action that is without precedent in the last century in american president ial history. But more importantly the question for the companies and leaders of companies and leaders of institution that hold themselves out as leaders in society of whether they want to lend legitimacy to this, i cannot understand why others have not followed ken frazier out the door i cannot understand why they have not endorsed his courageous action this is not a happy day for American Business. Well one thing and i dont want to put words in their mouth but why not do what Doug Mcmillan did, he con delled it in harsh terms but he also said that he had a responsibility to stay on and help influence policy do you not sympathize with those ceos that dont want these groups coopted by like mind people and who do want to still remain influential even if they disagree completely with this president . Every one of historys evils is aided and abedded by those that maintain the fantasy that by remaining in support they can somehow be effective it is egoistic di delusion to suppose that it doesnt meet once a month and does meet for an hour or hour and a half gives one substantial purchase or effectiveness over Public Policy and it is absurd to suppose that the ceo of walmart wishes to speak to anyone in the senate, anyone in the president s cabinet or key officials in the white house he will be unable to if he is not a member of the president s council. He is not fit to be the ceo of walmart if his judgment is so bad as to suppose that being a member of this council is giving him some kind of effectiveness what he may be, what he may be and what a number of ceos are is scared scared that if they leave the president using the tools of government will retaliate. And if President Trump has brought is that a legitimate fear. If he brought our country to the point where ceos cower that is a particularly bad indictment far beyond anything in charlottesville of his presidency reality is, that if ten ceos together announce that they were leaving thera blow for justice in america and their long running interest and because it would help to overt the lack lash that would some day come. We of coursediscussed a lot y Companies Get into bed with politicians when it serves their interest and quick to run away when it doesnt. None of the departing ceos likely believe he is a white supremacist or nazi sympathizer. They just see no upside in being associated with him. Whats your view on that as a possible explanation for why some ceos resigned . I cant speak to the believes of particular individuals but i can speak to what impression you would form from reading the headlines in the leading newspapers of this country from the utterance of not just of democrats but of republican officials like paul ryan youd get the impression from them that the president is uncomfortably close to White Supremacists i dont see how you can look at someone that maintains steve bannon in a central position as an adviser and not think that he is uncomfortably close to White Supremacists so while i will not speak for ceos im very comfortable speaking for myself in being in very little doubt that whether out of sincere conviction or out of political expediency our president is supporting racism. Mr. Secretary in your piece you said Business Confidence is the cheapest form of stimulus. Business is high, consumer sur vase are high markets not far from a record high how is that lacking . I didnt say that this was upsetting Business Confidence. Theres all kinds of developments in the economy. Largely unrelated to Public Policy in the last nine months that do give a basis for businesses to see strength. They were directed at streamlining approval so they could build Infrastructure Projects more rapidly in the United States and get rid of some of the terrible delays that account for our crumbling infrastructure how can a friend of Economic Growth think it was good that the whole topic and whole initiative was hijacked and sidelined by a the president s enthusiasm or his tolerance of people who from time to time put sheets over their head and ride arou around. Do you feel sorry for them because they may in a position so close to the president that they cant criticize him theyre not free to do so . If you want to remain in an administration you cant go attacking the president but theres a strong tradition in america of people of principle when they are sufficiently offended and disagree with their president on matters fundamental resi resign. Theres been no resignation on principle by the political appointees of this administration. I dont know gary cohn to be in a position to judge he has to make a very complex moral calculus but the idea that no one in that administration has chosen to resign on principle, think about it the Administration Last night circulated a set of talking points saying that the president had done exactly the right thing with his statement yesterday that means i know how a white house works. Dozens of people were involved in producing those talk points disseminating those talk points and repeating those talking points is there no one who knew that they were wrong and who didnt want to be part of that . I find it amazing. If anything a tenth as troubling had happened in the Obama Administration or the clinton administration, there would have been resignations. Mr. Secretary you said mr. Cohn has to make a complicated moral decision in his own mind once he had time to do that and he weighed these things, him and other appointees would you consider him morally corrupt if he decided not to resign . I think anyone who remains in the administration bares responsibility for lending their legitimacy and reputation to an administration that by my lights is traducing American Values. Va. I have no monopoly on truth. And so its judgment for each individual to make and im not prepared because i cant walk in other peoples shoes to make that judgment for them i am prepared to look at the collective of officials in that administration and find it astonishing that no one, no political appointee to my knowledge, has yet chosen to resign i think thats something that, as this plays out, they will like the people who surrounded richard nixon, live with that for the rest of their lives. Which brings us to one last question, mr. Secretary, even the president s harshest critics argue that having mass resignations or people of influence leaving him puts him in isolation, operationally, logistically, informationally, and that has consequences on the country as well. Youre willing to live with those, i assume . No. Thats part of the calculus that an individual has to make. And certainly some of the people in the most responsible National Security positions, i can understand a feeling on their part that their presence is needed to prevent hugely and temperate and dangerous acts at times of hatred or intervention in the world but for those who work in the political staff n t, in the communication staff, in the legislative staff, in the range of cabinet departments, i think its hard to invoke that calculus in a serious way. I think the experience over time is that people maintain their desire to remain in power and to not rock the boat. And thats how evil things happen theres always evil in the world. Theres always wrong in the world. But the question is whether there are people who are prepared to make the judgment that the emperor has no clothes and prepared to act on that judgment whether its enron or whoever, what perpetuates wrong is those who try to maintain neutrality in the belief that they can somehow be effective i think we should name names here here are all the companies that have either not spoken out on this issue or have decided to remain on the council. Dow chemicals, general motors, ge, campbell soup, boeing, cleveland clinic, gm morgan, walmart, blackstone, j j, newall brands, black rock, bcg, pepsico, ihs market, new core, lockheed market, 3m and damon. You are saying all those companies have ceos making the wrong call yes just as there were large numbers of companies that practiced antisemitism in the 1930s and the 1940s. Just as all of those companies would have been resistant to employees decades ago. Just as many of those companies would not have entertained an africanamerican or a woman in a Senior Management position several decades ago. And we look back on that and we dont understand how that could have been. Historians of those companies will look back, the companies will look back and they will praise the ken fraziers, they will praise the intels and they will see that there was a large group that missed the moment absolutely we brought you on to talk about the oped, mr. Secretary, real quick, dudley said cohn would be a reasonable candidate for fed chief. Putting your comments just now aside, do you agree with that assessment im not going to get into personalities on the fed but i think it will be a challenging period ahead for whoever becomes the chairman of the fed. Its unlikely that the economy will be as tranquil over the last over the next four years as it has been over the last four years thats important to credit Janet Yellens leadership. I think shes done an excellent job. Mr. Secretary, the oped obviously got reactions on both sides. We truly appreciate you coming on the air to flush it out for us its good to see you good to be with you Larry Summers, the former secretary treasury. I think if youre one of the ceos watching the show and hearing the former secretary calling them out for being morally bankrupt in how they can face their children standing sidebyside and implicitly endorsing the president for this, it makes me think, theres already these discussions going on inside boardrooms and pr departments and among ceos and i understand its a tough call they have constituencies, especially if youre a Consumer Company and you have the responsibility to engage on policy, but this is certainly not a clearcut choice i think also we should just add, you said the word implicit, thats important, some of the things the secretary was saying, he was suggesting in phraseology that, for example, the president had explicitly supported some lists. The reality is implicit and it is worth clarifying. That was a clear strong 15 minutes of onesided opinion from the secretary squawk on the street will be right back. Dont go away. Let me show you. Okay. 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Tripadvisor now searches more. Than 200 booking sites to find the hotel you want and save you up to 30 . Trust this birds words. Tripadvisor. Whether its connecting one of or bringing wifi to 65,000 fans. Campuses. Businesses count on communication, and communication counts on centurylink. Welcome back to squawk on the street. Im domenick chu freeport, international paper, westrock and the mosaic are the leaders. Well see if that continues. Back over to you, carl it is 11 00 a. M. At trump tower in manhattan and 11 00 a. M. On wall street. And squawk alley is live good wednesday morning welcome to squawk alley. Im Carl Quintanilla along with