Points at the s p. The dow up 72 points the nasdaq looking to be higher by 32 points in asia we saw a pull back from yesterdays gains off the china u. S. Trade truce hang seng is off just a fraction over in europe, european equities are mostly higher the dax is up by 0. 8 . Perhaps europe is still digesting the news that Christine Lagarde will head the ecb. The first woman to do so treasury yields fell back below 2 yesterday and remains there right now. 1. 895 the global story here, the benchmark german bund yield has fallen to a new record low, negative 0. 385 right now. It was negative 0. 4 earlier. The italian tenyear has gone from 2. 8 to 1. 7 in the space of about three weeks. Lagardes appointment seen not just in the german bund yield as not potential hawk, she will be more dovish, but someone who can operate politically and avoid a clash on the italian budget. Both appointments being European Commission president and ecb president being german and french shows the power brokers, macron and merkel still have their way. It was a win for european unity yesterday. The overall supply of positive yielding bonds as we discussed before continues to contract further and further in an environment where the markets still have a defense ive mindse. The record highs have been built on gains of leadership and defensive sectors, utilities, reits, consumer staples. Weve been talking about technology, yes, leading the market higher. But yet you have not seen apple, amazon, alphabet posting new highs. Nvidia, netflix, still well below the highs they posted in 2018 there is dispersion in technology theres a defensively oriented sentiment that wants bond proxies. Lets talk about our top corporate story. It is the one and only elon musk, tesla shares are soaring this morning on record deliveries he pulled through, phil lebeau he topped expectations on every level in terms of what people were looking for for the Second Quarter now already there are people who are saying, well, okay, at what price did you have to sell the model three . What will the margins look like . We wont know that until later this month and early next month when they report 2q finltals. They hadry dlefryes of 95 d 200. The model 3, 77,000 of those the model s and x, almost 18,000 when you look at the model 3 deliveries this has been the focus for so many people the estimate was for 74,100 vehicles to be delivered now with the 77,550, and the total number, they need to deliver about 200,000 vehicles in the second half of this year in order to hit their previous guidance between 360,000 and 400,000 vehicles their q2 production numbers, a little over 87,000 vehicles were delivered. We do not know yet what the deliveries whereby region. Thats what people want to know, how many were sent to china, what was the impact of the tariffs because vehicles built in the u. S. And shipped there do have a tariff that is slapped on them and also how many were sent over to europe as well as to north america. Clearly north america is the bulk of the deliveries all details people hoping to learn more about today or in the weeks leading up to the 2q report signaled in these leaked emails ill be polite about them being leaked when you look at the issue now, its were at a not a supply or production issue, were at a demand issue. The question i think youre going to get to the question, what they said yesterday in announcing these numbers is that the backlog of orders relative to deliveries increased in the Second Quarter heading into the Third Quarter ive already heard from some people who have said how come in the past when you asked about orders they said we dont want to talk about reservations or orders theres not a demand issue now they put out a release saying we have a stronger backlog. The big question is what is that backlog . How strong is it nobody knows we do know elon musk said its not a demand issue i think they were hoping that stating in the delivery announcement yesterday that the backlog increased. I think they were hoping that would put to rest some of those questions about demand i want to pivot the conversation another big story in the auto world, lee iacocca has died at the age of 94. Talk a little bit about his legacy i would argue hes probably at least of a generation the most famous ceo in america. And a turnaround artist one of the first that could take on a disabled situation, turn it around that doesnt happen often anymore. Phil . You think about this if somebody has one important event that happens in their career, they are considered legendary. Start with the mustang hes the father of the mustang then saving chrysler he has the vision to buy american motors. American motors was a dog with fleas owned partially by renault. What did he see . Jeep what has jeep become the most powerful brand within the chrysler portfolio then, you know, created the minivan. People were like what is this . Thats a whole new category he was the one who said people will want that. Theres no shortage of the number of consequent tall decisi consequential decisions he was a part of. He could be cantankerous, difficult, there were times you left the room shaking your head, but when he was on, he was fabulous those are the words of bob lutz. Well hear from him later on this morning ph phil, youre fabulous well check back with you in a bit. President trump announcing his two picks for the open seats on the board of governors. Christopher waller was previously head of the economic departments at noter dame and the university of kentucky judy shelton was an adviser to the president during his 2016 campaign and serves as u. S. Executive director for the European Bank of reconstructed shun and development she said if appointed she would lower Interest Rates to zero percent in one or two years, echoing calls from President Trump to lower rates make sure to tune in friday, 11 40 a. M. , dr. Judy shelton will be on what do what does it take zero is unnecessary at this point. Pegging to gold, thats so old school she has said she is elevated to the fed board, she would not advocate pegging the dollar to gold how does it color Everything Else you think about the world youre pivoting on policy just to assume the position . Why would you do that i agree shes putting herself in a bad set wayituation people say i dont want anything to do with the dollar pegging gold zero Interest Rates scare the heck out of me neither of those extremes are expected what this means shortterm for the markets is not much more i dont think she makes it. You dont think she makes it . No. She has already been confirmed by the senate. Watch there was a view that somehow the fed would become overtly political political. Is this the same just dressed up differently . A little less radical thats high it has less impact doctor shelton is the only one who could be perceived as political. You want to be confirmed, you have to keep your head down. An radical later you could also there are wildcard factors that got brought up my take is the headline on her will be she wants to peg to gold, forget about that. I would agree with that theres also a lot of criticism now on this desire on the administrations part to have easy Monetary Policy outside the u. S. Every stall bank around the world some say thats the pressure for us to have lower rates because the differential would be much greater. And your currency continues to appreciate. Well continue to debate this and so much more coming up, big tech under fire well get silicon valleys response to canadas call for more tech regulation its a big deal. Breaking up big companies. The ceo of vm ware will join us next. And the biggest premarket winners and losers in the dow. Back in a moment moving is hard. No kidding. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. I will single out halliburton and amazon that pay nothing in taxes, we need to change that. Theres way too much consolidation now in giants in xe companies. Its difficult to do if you have Companies Like amazon, trillion Dollar Tech Companies paying zero in texas on day one i will repeal that tax bill that benefits the top 1 and the biggest corporations in america for more on tech under fire, we want to bring in a ceo at the intersection with some of the biggest names in this sector patrick gelzinger is the ceo of vmware good morning good morning. Its been a wild ride over the past several months and especially the last week with the debates. Youre on the ground there youre talking to these companies. Everybody is in a defensive posture. There a sense this is just rhetoric or very, very real . Of course theres concern when your industry is highlighted in political debates. We think this is a broad brush that is inappropriate. Overall tech is doing incredible things for the nation, for the world. We have cloud, mobility, ai permeating every aspect of business and Society Inside of that we have some issues the social Media Companies are enforcing invasiveness into peoples lives. We think theres action needed in those areas a broad painting of tech is inappropriate. What would you do ill put you in charge of the you can be in charge of the doj, the ftc and the fcc all at the same time. Thats a scary power that youre suggesting i take on. Within it we think theres clearly views of how peoples personal data is being managed how that data can be used inside of the business models, that needs to be addressed. Breaking up tech, a broad brush against this addressed how through some form of regulatory requirement requirements there are regulates that live inside the wall street banks of new york city. There are monitors inside companies today. Is that the kind of thing you would want im not an expert on those topics, i have my focus on running vm weath mshgmwarvmware small piece of technology. Tech is a permealarge permeating technology and the world looks at it with envy. In it its important to address the core issues, at the same time holding up the greatest piece of american industry today in the global setting. Patrick, besides tech bashing, which is great politics, i feel sorry for democratic candidates, theres nothing else to talk about nothing is really happening. Even with facebook, the hate child for everybody. Im a huge investor, i spend millions of dollars each week across 52 companies on facebook. Its Getting Betterment i have not seen anything change at all. The users couldnt give a damn about privacy. Where do you think theyll be leveraged to change anything who will do the work and why would they do it theres nothing wrong with facebook or any of these companies. I think their business mods have a core issue, theyll probe deeper and deeper and influencing and being invasive in peoples lives thats a core issue that needs to be addressed. Maybe europe takes more of a leadership role looking at those topics through things like gdpr. We see technology overall, this is a powerhouse of innovation. Its creating new jobs the creating new industries. The envy of the planet inside of that we believe political rhetoric aside, the Technology Industry is and needs to continue to be a bastion of the future of the economy. Do it this way. Lets pretend the doj calls you and says do you have a problem with google . Do you have a problem with amazon when the competitors come forev forward and say i do have a problem. When they call you, what do you tell them . Ill tell them i think we have an issue affecting peoples data is it affecting your business no. We think this is a focused issue in a narrow segment. Technology is permeating every aspect and changing healthcare and education. This is powerful, we should be bringing this forward as its creating jobs and leadership for america. Aside from regulatory clouds hanging over the tech sector, theres the china trade war going on vmware has a robust presence in china. How do you view china as a vehicle of growth for vmware, how much will it power the growth and sales in the next five years or so how does a china trade war impact those forecasts overall we believe this free trade. We believe thats the right way for the World Economy to be operating. The core issue is intellectual property how intellectual property is being used, controlled, how its leveraged for access to markets. We believe that will last a while. I dont think nearterm a trade agreement fundamentally addresses that underlying core issue. For vm ware, its a small market for us, its he growing nicely were highly committed to the market and satisfying customers in china of course well obey International Trade laws, u. S. china law inside of that. Were committed to continue to see that as a Growth Market for us longterm even as we see this turbulence in the nearterm an wed well continue to ride through that. Still to come, get ready for the 4th of july. Well tell you how much americans will spend on their Independence Day barbecues if youre hitting the roads, they may be crowded but expect a little relief at the gas pump. When it comes to your customers expectations, theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. I cant tell you anything about myself. As someone in cool. Witness protection, but believe me, im not your average consumer. Thats why i switched to Liberty Mutual. They customized my Car Insurance, so i only pay for what i need. And as a man, uh, or a woman with very specific needs that i cant tell you about say cheese. Mr. Landry . Oh no. Hi mr. Landry [ grunting ] Liberty Mutual customizes your Car Insurance so you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Big day tomorrow tomorrow the u. S. Will mark Independence Day we have wilf here today to be with us to celebrate it in advance of the big day american retailers liberating dollars from their wallets americans will spend an estimated 6 6. 7 billion, folks, on picnic supplies like hamburgers, hot dogs we were talking about whether impossible burgers and others get in on that action. Another billion on fireworks one of the countrys top drinking holidays. Americans will spend roughly 1. 6 billion on beer and wine to show our spirit, the squawk spirit, well spend more than 5 million on American Flags. But maybe not betsy ross flags. We have the best flag in the back there we do. Well talk later about the betsy ross flag. Washington, d. C. Is preparing for President Trumps salute to america celebration as well military tanks have been arriving as part of the festivities. President trump has been speaking about displaying military prowess at a military event since attending bastille day in paris in 2017 there will also be flyovers tomorrow the issue with the tanks is that theyre heavy. Heavy and washington is on a swamp. Yeah. What will happen. If you see paris or these places where they rollout the hardware, the streets are destroyed, they just pave it over we never had a display like this bring out the hardware, have some fun i think its great its controversial this guy is a controversial president. He want the rockets, the jets. I just want the fireworks youll get real fireworks you get the Hard Core Technology flying over, thats fireworks. Thats what i want to see. Loud, beautiful stuff. Im not surprised ive been given this read. Alec morgan celebrating a goal over england with a spot of tea. Morgan said it was her way of responding to critics who have accused the American Team of arrogance. Thats cruel. I dont get the fallout in this their play good little bit of joshing during the game. I think so. Lay it all out there on the field. The england team did well. Shame we lost. Best team won. So british. Shame we lost. 11 Million Viewers watched it in the uk. Congratulations. For a sport that started in england, they never win anymore. We have not won since 1996. Thats my point for the women, 11 million, thats fantastic we have to find the Silver Linings in our loss yesterday. Keep your chin up it is i think im doing a good job same with cricket they lose that, too. Were playing now not that im checking the score, 82 for zero in the cricket world cup. Coming up, a potential deal in the koft wesoftware space. And fallout from a big Spirits Company and their plan to spend money in china. Before that, a look at yesterdays winners and losers in the s p 500 through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. 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