That. Another look at the futures, you heard becky talk about them. Were looking up this morning. Of course, european markets you ask, well, we answer. With a generally positive in fact entirely positive, thanks for italy and spain, guys. Appreciate that as always. Ten year note yield hanging in around the 2, 2. 22 a lot of twos this morning. You see crude oilwell below the 50 a barrel. There are reports that the president will pull out of the paris climate agreement. What it means for business and geopolitics. And trying to clear up what America First means saying were asking at will of our partners. Well take a look at the message from the administration. And its the last trading day of may. Should investors expect a june swoon . June has been a rocky month for the markets. Well break down the winners and losers. First though, President Trump apparently planning to pull the United States out of the paris climate agreement. This is according to a number of reports this morning. Putting him at odds with American Allies and a lot of major u. S. Corporations who have been imploring him to stay in over recent days. Of course the decision has not been made official. But we have a number of reports that indicate it has been made and will soon be communicated. A lot of Division Within the cabinet itself. As we know. Rex tillerson the former ceo of exxon mobil was in favor of staying as are gary cohn for example. But a number of others fighting back including the epa head gary pruitt and steve bannon, close adviser to the president who said we should pull out. Implications from it, unclear. Although again, Corporate America did seem largely united in saying lets stay in. Given the opportunities there for them to a certain extent and what may be on the other side of it. It is kind of fascinating because its normally a gesture that is directed at helping u. S. Based business, but really its one of the other areas where a lot of the kind of trump priorities dont necessarily fit very tightly with multinational ceo priorities. Multinational ceos are globalists. They generally like the global approach to big issues like the environment. Its also kind of a rules of the road thing, right . If you operate around the world, you kind of want to know if theres unanimity approach to climate. I think its about leadership. I think this continues what was started on the european leg of President Trumps first foreign visit. A lot of people saw Angela Merkels comments over the weekend that europe has to go at it alone without relying on key allies as a direct response to this idea. That that President Trump would take the u. S. Out of the paris climate accord. I think its interesting that Companies Like exxon, chevron, companies with skin in the game with energy wanted the u. S. To stay in the paris climate accord. I think if you read some of the statements and the public letters and they were pretty public about this issue, it all comes down to leadership. They want the u. S. To be involved in any potential deals and to help negotiate what some of the changes are going to look like, like less reliance on the global emissions. The Clean Energy Business so to speak is not an insignificant one in this country. If you want to include solar panels and the likes of tesla in the overall equation you certainly can. The president seems focused on coal, on oil and gas. But from a different perspective to saras point. Big oil and Gas Companies have been supportive of staying in and yet he seems to be determined to go in another direction. Just a general skepticism on multinational agreements. Pulling out of tpp just because its a statement that says were not governed by the kind of world councils. On the other hand, look at the general electric, that isnt principally in energy the idea of looking for Green Solutions as a business process, basically as a cost measure, as a sustainability issue, its not really necessarily about, you know, checking off the box and saying that, you know, were adhering to the environmental standards. Its been integrated with the whole big company approach. The chinese premier li is visiting this week and mody was hosted by merkel in berlin. The world can move forward without the United States. I think thats a scenario that increasingly wall streets strategists and economists are looking at. Its big picture idea and those who crafted the paris act korpds believe when the accords believe when the second largest carbon emitter pulls out, it is less likely that others will feel as quite as committed to the agreement. Sure. Yes. Looking at the paris climate but im thinking overall. Just economic relationships could be in for a change. High friendsy saying that china frequency saying that china is the largest on earth, growing three to four times the growth rate of the United States. Thats an appealing prospect for european markets. Without a doubt. Mike, back to the markets themselves, we spent a lot of time talking about the geopolitics and things of this nature do not seem to be getting in the way of a continued rally. One would expect thats the continued case this morning. Sure, it seems as if nobody really has gotten scared out of the market because of the lack of, you know, policy progress or really a lot of momentum in that direction. But, what have you done . You have kind of shovelled money into businesses that are independent of it. So this huge run in the big nasdaq stocks, the other Growth Stocks underperformance of small caps which are domestically focused and the market is staying supported in the absence of that. The market is not in the business of pricing in kind of d. C. Noise and static and dysfunction frankly if thats what you want to call it. Yeah. Well, speaking of the nasdaq comp, lets get out to carl in the code conference. Talking to the big performers out there, including Reed Hastings a bit later in the show. One of the reasons that the market is not bothered by the policy dynamic because so much 06 the growth is coming from ai, cord cutting that code has been delivering on for years. Got off to the big start last night with Marc Andreessen of andreessen horowitz. He covered the first being that tech is not revolutionizing the economy in equal areas all across the economy. So hes investing in areas where its behind. Take a listen. The sectors like retail, transportation, media in which technology has had a huge impact. The other part of the economy is what you might call the slow change part of the economy which is all the sectors in which the opposite of that is happening. So these are sectors like health care, construction, education, elder care, child care, and also by the way government. Those are the sectors of the economy that the technology is having no impact on. Software is playing a small role at best. They are the sectors that have no productivity growth and those sectors are basically going to eat the economy. Thats Marc Andreessen with reid hoffman and Karen Swisher last year. One of the bigger mention he made, all the talk about robots taking our jobs away is being overdone. Even joked about taxing robots. Take a listen to that. We should definitely tax robots right after we get done taxing pcs which took away the secretarys jobs. One of the big things is socalled ai. Machine learners and sensors, a whole category of things that didnt work at one point all of a sudden work. I think at this point thats a feeding frenzy in the Tech Industry in the valley to try to experiment with every single permutation, what can be done with robots and every shape, size and description. I think its spectacular. One of the biggest booms kind of exploratory, lets try all the ideas i have ever seen. Fascinating stuff on the opening night. Its going to be a big day, guys. On the list here, mary meeker at 12 01. Shell unveil her annual presentation of internet trends. Go goes through a hundred charts in 25 minutes. Hillary clinton, evan mcmullin, sherry red stone tonight. So well talk all about that all day long. Later on this hour, well hear what ballmer said about whether microsoft was too slow in hard ware, investing in twitter and the puzzle he says that is putting together the modern nba team. Guys, back to you. You know, carl, speaking of reads, there was another read on the state. Were speaking to reid hoffman who sold linkedin to microsoft. Did he weigh in at all into that discussion in terms of robotics or ai or have a different viewpoint . Hes interesting to listen to too. Yeah. The focus last night, almost asymmetrically was from andreessen. Definitely theres some theres some mea culpas in the past 18 hours about what microsoft did wrong in say the last decade and a half and how thats playing out big time today. I wonder if theres any mea culpas on politics. You know, this was a group that was in favor of Hillary Clinton. Shell be there and youll get a lot of political discussion out from the valley and im curious to hear where they are right now on President Trump, on some of his policies. We just talked about the fact hes planning on pulling out of the paris climate agreement. What are you expecting . You know what, obviously theres im sure theres a political veneer to what she said. Shes already made a couple of big high profile appearances and if its cara doing the interview, she has been ahead of the curve in interviewing president obama at the time and now other political figures about the role of data and Cyber Security and how thats changing all of our political lives. It wouldnt surprise me if maybe the focus of clintons appearance is how thats changed elections and governments around the world and what can be done about data manipulation and influence. All right, carl, we will be checking in with you very often this morning of course a lot of great stuff coming up from that code conference. By the way back to our lead story this morning. The president tweeting in terms of the paris climate accords he will be announcing a decision on the paris accord over the next few days. Then he ends with make America Great again. Campaigning stuff. Im not sure we can read much into that. I wont even try. Hes following the news this morning. I think its fair to say. Without a doubt. And hes tweeting full words that are actually words and sentences. As opposed to last evening. At midnight. It was on when we started covffefes. Well take you to the code conference. Well have an exclusive with Reed Hastings. Heres a look at the futures. We are headed higher. More from squawk on the street, more from post 9 at the nyse. 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. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. Michael kors down sharply in the premarket. The luxury goods maker beating on ref fly, but the Comp Store Sales were down more than 14 . Kors also issuing guidance below consensus and guys, the Company Also Announced that its going to be closing 100 to 125 stores. Thats out of total of about 827 stores and 300 of which were just opened in the last two years. So back tracking on the strategy as they deal with falling sales, down double digits. It wasnt that long ago this company was not going to cover off the ball it feels like. I think it peaked as a 100 stock a few years ago and it was a 60 stock a little over a year ago. Its as if whole chunks of traditional retail, the market is liquidating and theres one designated survivor. So you have coach on the rebound. Of course it will be acquiring kate spade. Whereas kors is seen on the outs. Go down the list of electronics and the market is saying, lots of losers. Maybe one winner in each area. J jill reported earnings. This is a recently ipod womens retailer. They focused on middle age women and they had store sales of 9. 9 . They know their audience. We talk to the ceo. Just a few months ago when the company ipod, and this is from a profit or a sales perspective thats going completely the other way and shares are being rewarded. Look at the premarket. I think a pretty decent direct sales capacity. Yeah. Fairly strong. I can remember when we interviewed the ceo at the time they went public. That was one of the pointing to and she was pointing to and also jim cramer highlighted it as well. Anything to the overall theme in the decline of the mall . I think its individual now, because kors you look at coach, but coach going the other way. Really started to rebound. They have nailed the fashion trend. They have got a new designer which is very good and not just accessories but apparel. I think the read through is that accessories as a category are still pretty weak and kors overexpanded and highly leveraged to that. Thats a problem when youre dealing with big problems like traffic, and otherwise retail weakness with the growth of online. Its amazing because the game now is where are people spending their money. Wages and salaries are growing faster than inflation. You had the big wall street journal story, nobody is going out to lunch or restaurants. Nobody is going out to lunch c. Nobody is going out to lunch. Breakfast is the growth category. Talking about going out and sitting down for lunch. Nobody has time. Although you take a long lunch. I get all my work done. You go to chopped . No, i like sweet greens over chopped. Well, well see what to expect from our market actions as we wrap up the month. We count down to todays opening bell. One more look at the futures. More squawk on the street right after this. This is a story about mail and packages. And its also a story about people. People who rely on us every day to deliver their dreams theyre handing us more than mail theyre handing us their business and while we make more ecommerce deliveries to homes than anyone else in the country, we never forget. That your business is our business the United States postal service. Priority you thereit comes to technology, about my Small Business so when i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Less than nine minutes before the opening bell. Lets bring in our art cashin from floor operations from ubs. Does look like well get a higher start to a positive month of may on the last trading day. Youre watching oil down though, down 3 . Well, i think if oil manages if wti breaks below 48 it will be a factor yet again. Even though oil didnt get badly beaten up yesterday, the Energy Stocks were what led to the downside. That could be a problem. The other thing is that traders are getting itchy. They think things have been too quiet in washington for five days in a row. Were not used to that. Congress is on recess. You mentioned Energy Stocks looking really struggling. Also banks. They have been kind of two weights on the market and on the other hand, we talk about the growth and the tech stocks that have been managing to kind of keep the markets supported here. Is it sustainable . Do you think thats just going to be the way we the way we are for a while until we see the acceleration or something . I mean, the tech stocks have diverged from the rest of the market. You got a break from the telecoms, but the story has been the f. A. N. G. Stories who have provide the vast majority of the gains we have seen. So that makes me a little bit wary. Why . Because that leadership all alone usually cant last forever. After a while, you know, you get so much money put into it. And Everything Else is kind of lagging behind. Traditionally when you get the kind of action that we have seen here, as i have said in the past usually the market begins to stall or slow down and we have not the two to three weeks after this kind of action has not does not usually produce a big rally. The market confounded us old fogies last week, it should have stalled in the middle of last week and they continued into the holiday weekend. But history tells me its going to be a little bit more difficult to make big gains here. I know you watch the overseas news and figure out if it has an impact. Chinese manufacturing came out overnight, better than feared, above 51 for pmi. The pound is half a percent weaker though on the polls narrowing into next thursdays election for Prime Minister theresa may. Any surprise there shake Glo