Markets. First trading day of the Second Quarter. A pretty interesting bid in bonds this morning to talk about. Scott is wells fargo global strategist and nicholas, strategist, joins us to talk about that this morning. Tenyear down. Obviously you have the equities off their highs of the morning. Whats going on there . Tenyear is one of those k contra indicators. The 10year yield should be higher if growth will be there for the back half of the year. These 10year low yields are propping up stocks. Scott, how long does that dynamic last . Do you go along with nicks view of whats driving bonds . When you look at the fed prong projection and they tell us theyll do three hikes this year and three next year, are bond yields going to go up on that . I dont think so. I think the bond market is telling us that in a slow growth environment, you know, you raise rates six times in two years, you know, thats a headwind for economic growth. I think the consensus, our work suggests that consensus earning estimates for this year are too high. Theyve been coming down. We have a 127 number. Theyll keep on coming down and gdp for next year, if we had to guess 2. 3 for this year but if we had to guess for next year, it might only be 2. 5. In that kind of environment, you wont see yields rocket higher. Nicholas, how much does Congress Matter in q2. By the end of the Second Quarter we should have a good idea of how much this ambitious gop agenda is likely to get done in 2017. At what point does that reality hit for better or for worse . Q2 is a time where it should hit to the positive. We waited patiently through q1. Were waiting on the actual tax reform numbers and negotiations. So q2 is where the rubber hits the road. If you dont see any action by the end of q2, something solid like getting ready to go markets will begin to lose patience and back half of the year will be volatile because it will prove the trump trade was all hot air. Scott, on that note, we had that Consumer Spending number on friday. We got auto sales today. Some of this market pmi internals are a little bit mixed. Was some of the ranker in washington during the First Quarter having an effect on either Consumer Spending decisions or Small BusinessInvestment Decisions . I think it might, carl. Obviously confidence at the consumer level and business level have skyrocketed since the election. You know, that takes time to actually result in businesses doing capital spending, consumers bumping up their spending. So we think thats going to happen. We think that the labor market is going to continue to improve and for us, you know, we think the s p 500 will end lower than where it is now and headwind will be based on work were doing fears over Wage Inflation and i think thats going to creep higher in 2018 and maybe a fed thats confused and starts talking about maybe boosting rates a little bit quicker than what some people thought. You know, for us, our work since last fall suggested high around middle of the year for the s p and it still continues to show us that. So given that, scott, what kind of mood should we expect . Looking back at the q1 chart, good january, amazing february and flat to down march. How do you expect that emotionally to work through in this quarter . Jon, i think that as far as earnings go, you know, youll probably see when you hear these First Quarter earnings, you know, theyll be pretty good. Consensus is around 10 . Somewhere in there. So those will be okay. What i think is going to happen is that the market is impatient. They want to see results. We certainly dont think anything the new administration is going to be doing is going to be felt in 2017. Thats a 2018 and beyond story. I think youll see the market maybe we might see the market run up here a little bit more. I dont think it will trade a whole lot higher. Well have that pullback. Close the year in 2230 to 2330 range. We want to trend toward cyclical stocks. I think people want to take money off the table. They want to get more defensive. They want to get less cyclical. Those are types of things well look to do should we trade up to those kind of levels. Im reminded of goldmans call earlier in the year when they argued that march would have been the point of maximum policy optimism, which is sort of playing out at least for now, right . Certainly were realizing it wasnt as easy as we thought in january. Yes. And as we talked about last time, congress is not a great investment catalyst. So having to wait for congress to develop your investment catalyst is a long and torturous wait. I would add that i think volatility has to move higher from here. We had a free lunch in q1. Better market, low volatility, that never lasts forever. Well see what q2 brings in the next three months. Dow down 85. Guys, thanks. A busy week for President Trump following this weekends wide ranging interview with Financial Times covering everything from trade in china to health care and taxes. Kayla tausche is in d. C. With the latest. It was a wide ranging interview indeed where the president said he accepts that every now and then on twitter there will be what he called a clinker. He also declined to discuss the timing of forthcoming tax reform but comments about china and escalating situation in north korea that are in focus as President Trump plans to meet chinas president on thursday. He blamed china for north Koreas Nuclear capability but says china will help us with north korea or they wont and if they do that, it will be good for china and if they dont. It wont be good for anyone. Trade is the incentive. It is all about trade, he says. Chinas number two leader said a trade war would have no winners and in march said upholding the u. U. S. china relationship is key. They want the meeting to be a winwin while upholding tough exteriors. These guys are going to look like they dont like each other. Theyll say tough things. One friendly thing xi wants out of this is he wants the words out of donalds mouth that this is a winwin story they put together which in secret code means we are peers and well do this with mutual respect. That will be key. Well see what the tenor of that meeting is later this eke. It kicks off a geopolitically focused week at the white house. A meeting with egypt today and on wednesday with the king of jordan. That conversation likely will be focused on how to fight terrorism. Where the economy is concerned, i think its clear china is the elephant in the room for the u. S. Economy, for the China Economy and for the operations of companies that do business in both places. Carl . Busy week ahead. Thank you very much for that. Kayla tausche in washington. When we come back, more details on the potential apple tv product. Well check in. And addicted to apple . One stock getting crushed after apple says its cutting ties with it and mind games at uber. A new indepth report on how the company uses psychological tricks to push its drivers buttons when squawk alley continues. Cdw brought i. T. Orchestration to growing businesses across the city, increasing productivity like never before, which is amazing, unless youre a barista. Cdw implemented Dell Poweredge servers with intel xeon processors to allow people to work from anywhere, so lucky me. So nobody wants coffee . hey, can i get a couple copies . Enhanced mobility by dell. I. T. Orchestration by cdw. Apple dominating the dow in the First Quarter. The best quarterly performance in five years as the company is working on a premium tv bundle to bundle hbo, show time and starz in one package and shares of Imagination Tech taking a nosedive as apple says theyll stop using the Companys Technology in two years. Imagination does not trade in the u. S. But was valued at one time around a billion dollars before the news broke. Lets get that and more. Good morning to you. How are you doing. Lets tackle this bundle news first. Is this really the beginning of the next chapter in apple trying to package content . Absolutely. Theyve obviously moved more slowly than others in this area. Peter wrote the story. You know, they have to find ways to entice users to use apple tv. They sell each of these products individually under subscription. Theyre around 10 each. The idea of bundling them together because thats how people consume them is probably great one and cherry picking off all of the channels that people love. Usually with cable you have to buy the other tv part, buy a whole burcnch of tv stuff. This is picking what people want and bringing it together presumably at a lower price. Peter didnt have those numbers of the price. Kara, isnt this a step backward in a way . After this time apple says you should be able to buy these channels one at a time and only the ones that you want. If the economics are going to move toward a cheaper bundle of three channels here, four there, whats to say that starz is going to keep offering an individual app if the economic shift in a different direction and were back in the same cable box all over again. I dont think theyre putting the whole cable box together. This is just premium channels that people like to use. I think the whole concept around these is people could pick what they want. If they want one channel, they can have one channel. If they want them all at a lower price, its not an uncommon pricing technique. Its also a matter of convenience. I was trying to find one show the other day. I remember thinking this is a lot of stuff i have to go through all at once. It would be nice if it was in one place and i could buy it at once or if i dont feel like it and dont want to watch whats on starz or the various channels, i dont have to. How would you characterize the threat to traditional content Delivery Services like our own . Thats the issue. The question is the way weve been served up is the way providers like comcast and Time Warner Cable want it. If you want one thing, you have to take the other. Increasingly thats not going to be the case. Eventually the way you can buy stuff on netflix or amazon, this stuff is going to pull apart in a way that its been doing because consumers are getting savvy and apps are easy to use and selection has been easier. Even in the way that you do select them, the guides are getting easier to use. So i think that people have to think hard about the way the paradigm is and everyone is talking about the idea of cutting the cord and Cable Companies resist that idea but a lot of users are buying in this fashion and should be able to buy the way they want to buy and then figure out the pricing that works for it. Carl, im cynical about some of this stuff. Please. Blow me over with a feather. You cant buy game of thrones by itself without getting hbo. Everyone is bundling to an extent. Players want the power to make the decision on what you buy. You argued about subscription fatigue. We have a limit as to how many other pipes we can all subscribe to. There wont be a million of these. I dont know if one is so much more beneficial to the consumer than the other. Well have to see how it plays out. What do you make of the graphics chips news . Is that an indicator of some other larger intent . Im not sure. I mean theyre working on a lot of other things around vr and y other things. They probably want control of their future. They just wanted to get ahead and signal where theyre headed. I dont think its unusual. Too bad for that company that dropped 70 or Something Like that. Eventually a lot of the key parts of their future theyre going to have to control themselves and have a lot more ability to manipulate the technology. Its not a big surprise. Potentially enormously significant though because if theyre developing a gpu, Graphics Processing Unit for mobile, are they doing the same for the mac . Does this extend to apple tv . Implications for amd and inindividuinvidia and car down the line because this gets into vision technology. Well have to see how this develops for apple. Video is the future. They have to have control and vr and all kinds of applications. Headsup technology. All kinds of stuff. Some more headaches over at uber. City officials in pittsburgh where uber launched its Driverless Pilot Program are pressing the company to give more back to the community saying in a partnership is is not just what we can do for them and times published a detailed report on how they use psychological tricks to push drivers buttons as the Company Continues to face growing pressure over reports of gender bias, harassment from management and drivers themselves. How does this all move the needle with regard to at least ubers public face . Well, pittsburgh, you know theyve had issues in pittsburgh, arizona, San Francisco around these selfdriving cars. Pittsburgh its the mayor trying to shake them down for more stuff. So they want its a good time to put public pressure on uber because they are saying, yes, im sorry quite a bit so they want more stuff. Its just a mayor being a mayor. Thats what i would do if i was mayor. I think in the psychological tricks, i thought it was a fascinating story. I just did a long podcast with Tristan Harris who worked for google and other companies. Every one of these companies does these tricks. Facebook, google, get you to buy more. Amazon. Its not surprising that since every driver on uber is pretty much interfacing with the company through an app that theyre not going to use similar techniques to get them to work more, to get them to move to places that uber wants them to and feel like theyre in a game and trying to earn money. Of course theyre going to do things that advantage uber. Google has 1,000 engineers to make sure you click a red button and then try to say you have control of it. Its the gambling addiction idea. This loopic loop. Its so common to every company. Facebook, google, our entire digital experience is based on psychological tricks whether youre a consumer or contractor. Is the real story here perhaps the uber pylon whether pittsburghs mayor or these different reports coming out about various things, various entities that uber is or is supposedly taking advantage of. If you are the investors in this company, what is your way out of it pylon of being cast as a bad guy . I think if travis saved a cat out of a tree, he would be charged with animal abuse. I dont think he can do honestly, i was talking to someone there and i said he should stay inside and never go out for the next couple months. You know, i think this story was interesting. Again, i think that they do it and its interesting on the implications on workers and its no surprise because every company does it. You should listen to this podcast. It was fascinating to me about how they do it and how apple and all of them. Extending it to workers, of course, is a thing. People have done it in the past by having contests at work and things like that. Now they have the data of what actually works if you show us certain kind of thing. Youre almost to 100. Get there. How people sort of participate in that kind of are very easily moved. I do think drivers are pretty smart and they catch on to this stuff and their goal is to make as much money as possible. I think theyre more savvy and do have more control. Theyre not sitting there like dummies. When i talk to uber drivers, they know exactly what tricks uber is doing. They really do. They seem to be very up on it. Theyre doing this and this and this. Its interesting. Its definitely a fantastic read and interesting read about how were manipulated by apps and will be more so going forward. Absolutely. Kara, good to check in with you. See you next time. Thanks a lot. Today the federal government begins accepting visa applications for the first time under President Trump. A Program Trump called flawed and in need of reform. O i talked to Immigration Attorneys preparing applications saying they are handling fewer application this year because the fees have been getting higher and that happened under the obama administration. And also because of uneasiness over the current political climate. There are 85,000 coveted h1b visas given out. Last year they received 236,000 applicants. Companies including google, microsoft and amazon are the ones who apply for these visas on behalf of perspective employees but critics of the system, including President Trump, argue the Current System lowers wages in the tech sector and favors outsourcing companies. Flood the system with applicants and clinch the majority of these visas. The Trump Administration signaled it would reform the system, so far no changes have been issued. We talked to one current h1b worker. She says entrepreneurs here on the visas do create a lot of value. Now that i have my h1b, i am able to work fulltime. There are bills in congress that propose raising minimum salaries. A recent study found if higher minimum salaries were enacted, Companies Like google, microsoft and amazon would not see a meaningful change. Back to you. All right. We wonder if investors would. Still to come, signs of life overall. How a few high profile ipos in q1 are reinvigorating the market for Companies Going public. Shares of amazon also trading at record highs. 880 bucks a share. Squawk alley is back right after this. [vo] quickbooks introduces rodney. He has a new business teaching lessons. Rodney wanted to know how his business was doing. So he got quickbooks. It organizes all his accounts, so he can see his bottom line. Ahhh. Thats a profit. Know where you sta instantly. Visit quickbooksdotcom. 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. Stocks erasing earlier gains including those of the dax. Pmi with a sixyear high. Banks among the biggest decliners led by spains banco popular. The Company Needs to correct accounts of previous years with most adjustments related to doubtful loans and as we told you earlier, britains imagine tech plummeting after apple said it would stop using Graphics Technology in two years. That news weighing on dialogue of germany. Those shares are off their lows of the day. Straight ahead, shares of tesla on the move after record breaking deliveries in q1. Details coming up and strong words for google and facebook over hate speech in advertising or at least around the advertising. What other Industry Execs have to say. Find out when squawk alley returns. They are media companies. Not Technology Companies. They cant masquerade as Technology Companies and theyre responsible just like you and everybody else for the content that goes out on the channel. They have to take responsibility. Responsibility. Good morning, everybody. Officials say three people have been killed in a boiler explosion blast in a building in a st. Louis industrial area. Four others were injured. Fire Officials Say at least three buildings have been damaged by debris. Syrian activists say that Government Forces have intensified the bombardment against opposition held areas around damascus. There were 50 air strikes this morning and at least eight people have been killed. Conagra issued a recall because chili kits could be contaminated with salmonella. And Prince Charles and his wife camilla visiting a traditional food market in florence, italy. They visited a local theater. Thats the local news update this hour. Back down to squawk alley. Jon, back to you. Thank you. Perhaps signs of life for the recently dormant ipo markets. Mixed trade in the First Quarter. So just whats the ipo pipeline look like for the rest of 2017 . Lets bring in Richard Peterson and sandy miller. Good morning to both of you. Sandy, start with you. You say you expect for ipo market in 2017 to be the best since the dotcom boom but if i look at canada goose and even snap, how its traded, not encouraging on the action. I think im quite encouraged really. I think you dont want to see stocks double or triple on the ipo. Snap and others are up in a nice pattern and i think set the stage well. You have to remember these stocks are volatile because the company is going public today are exciting companies with fast growth, big revenues in many cases but they are money losing companies so theres always a variability of opinion on Companies Like that well see volatility but the powerful trend is there. Well see a robust market not just this year but into next. Sandy mentioned there were no triple digit gains. Solid gains. Of the 23 priced in the First Quarter, 18 are above the offer price. Snap priced to 17. Trading low. Nobody that bought it on the first day is happy. They bought it in the aftermarket. The fact is i think tseeing inflection. Health care actually seen a retreat. There are only four Health Care Ipos in a quarter. Lowest number since 2010. Thats a percentage of the proceeds that we did about 9 billion in ipos and 300 million were from health care. Only about 4 came from that sector. Most of the money came out of 3. 4 billion deal and invitation owns the 1. 4 billion read ipo. You see m a keeping pace with ipos . First quarter m a was disappointing. People thought there would be a big robust followthrough from 2016. The fact is this was about 267 billion in m a compared to 293 in First Quarter. Worst quarter since the First Quarter of 2015 and fewer big deals. Only two deals above 10 billion that was it was lowest number of 10 billion deals since the final quarter of 2014. Sandy, is that just Big Companies waiting maybe for repatriation before they make a bid . I think i focus on tech sector. I think were seeing quite a bit of m a activity. Most notable was poised to do a successful ipo acquired at the last minute. I think were going to see more of that as companies weve seen the m mara market in technology seem to cycle together. Im optimistic about the m a market and repatriation could have a very, very big impact but apart from that, Big Tech Companies already have large cash hoards. Last year all but two of the tech acquisitions above a billion dollars were acquired from nonTech Companies. Big Companies Looking for relevancy in the new digital age and acquiring exciting young Tech Companies. Weve seen a number of buying out tech for sure. What do you expect to influence sentiment the most throughout the rest of the year when it comes to m a and ipos . This global macro situation . Just fundamental earnings in overall markets . A quick reference back to tech m a. 4 billion was the biggest deal for the quarter. The fact it was only 4 billion. You go back historically and 4 billion deal in techolo on a quarterly basis doesnt make top ten. You have to go to 2015 to find a quarter with a deal that size ranked at the top technique. In terms of sentiment, corporate earnings are going to do well. The fact is they have been coming down. Back in november of last year, expectations for the First Quarter 17 were about 14 and now under 10 . Thats part of the as you get closer and closer, analysts ratchet it down. Investors flipped from positive to negative. Consumer discretionary where we expect 4 gain back in november and now we see 3 decline. All right. Sandy, you agree with that . I think the i dont see risk in this particular scenario here. I think if we look at the fast growing sectors of technology, which we focus on, were seeing a very different pattern than richard is describing. Were seeing were going to see a pretty good flow of not only ipos but m a this year and next. We have a situation where theres more private Tech Companies of scale and growth. Lets say 100 million in revenue run rate or more. More of those today than weve ever had before and by a wide, wide margin because theres been investment in technology by venture capitalist. Sounds like you have skip in your step as we start this spring. Thank you, richard and sandy. Google facing backlash from advertisers over that objectionable content on youtube. Well hear from michael roth next and then egypts president set to arrive for meetings at the white house to kick off a busy Foreign Policy week for the trump white house. Dow down 93. 10year 234. Back in a moment. If you have medicare parts a and b and want more coverage, guess what . You could apply for a Medicare SupplementInsurance Plan whenever you want. No enrollment window. No waiting to apply. That means now may be a great time to shop for an aarp Medicare SupplementInsurance Plan, insured by unitedhealthcare insurance company. Medicare doesnt cover everything. And like all standardized Medicare SupplementInsurance Plans, these help cover some of what medicare doesnt pay. So dont wait. Call now to request your free decision guide. It could help you find the aarp Medicare Supplement plan that works for you. These types of plans have no networks, so you get to choose any doctor who accepts medicare patients. Rates are competitive, and theyre the only plans of their kind endorsed by aarp. Remember these plans let you apply all year round. So call today. Because nows the perfect time to learn more. Go long. Why the bar is higher now for the valley in stocks to resume. Plus, kevin oleary has 20 t o assets in cash and jim cramer will give us his Shopping List that includes stocks that have taken a beating. Well find out where hes finding some opportunity and also the 11 stocks that one firm says will be winners in the months ahead. Halftime report top of the hour. Jon, well see you in 20 minutes. Looking forward to that. Thanks. Ad executives from around the world gathering in los angeles at googles content policies have come under fire with advertisers pulling buys. Our Julia Boorstin is on site with a special guest. Julia . Im joined by michael roth, one of the largest ad agency conglomera conglomerates. Google faces a buy coycott frome of your major clients. There are concerns over controversial or offensive content on their sites. The key to advertising and branding is brand reputation. And clients dont want to be associated with these type of issues so you can understand why when it first came out that their ads were being placed next to offensive articles and content, their Immediate Reaction was not to be there. So why arent you advising all of your clients to pull their ads from youtube . Rather than advising clients to pull ads or not, were working with our clients and working with google in particular for them to solve the issue and frankly theyre making Good Progress on that. And i think believe this issue of thirdparty verification is critical and were making a lot of progress on that. You know, the best way to keep organizations accountable is to do it with your pocketbook. I think that part of it worked. What will it take for you and brands represented by other agencies to feel confident that this is never going to happen again . You say theres progress. Has it been solved . I think the thirdparty verification and ability to audit are key components of that. So i would say a good part of it at least for now is on the way to being solved and some clients are back and the reason theyre back is because we worked with them and google in particular to make sure that theyre doing Everything Possible and we have a high degree of confidence that we will be able to solve it. Some analysts say as much as 750 million of revenue this year could be lost from google. Do you think that google is going to address these issues fast enough to not lose that much money . Well, they are trying. The fact that some clients are coming back is a pretty good indication that they will solve it. Again, the biggest use of google is in search so that part of their business was not affected by it. And, yeah, i think they paid attention to it. I think youll hear them respond to it. And i think theyll solve it. This past fall we talked about mismeasurement issues at facebook. Were you satisfied by changes they made to address them and what do you think of efforts made by the whole industry with these challenges . The efficacy of the work we do in making sure the work is seen by consumers in the right place at the right time is critical. Facebook has gone a long way in terms of thirdparty verification. The problem with facebook or the issue they have to address is they are using their data for the verification. So what we have to do is be comfortable that their data is accurate. What are safety and accuracy of these digital platforms mean for Television Advertising as wiwe go into this year . Up fronts has to do with positioning. So of course the Television Advertisers say, look, were true and blue. You know what you get. Tremendous reach. Come on back. And look at the problems you have with digital. So, yeah, some people using it as a negotiating why wouldnt they. In the end, i think were forecasting for the year. Linear tv will be relatively flat. Digital will continue to grow in double digits. How is advertising changing in the era of President Trump . Well, you know, cautious. Brands have to stand for certain propositions and a lot of issues concerning social good whether it be clean water, bullying, womens rights, so on, continue to be important messaging to relay to brands. Some people may view that inconsistent or not. I think everyone is going through a filter right now to make sure that were not being offensive to any one particular camp versus the other. Thank you for joining us. We appreciate it. Well continue to discussion on stage. Good stuff, julia. Thank you very much. Were awaiting the arrival of the egyptian president at the white house. The first in a businey week of h profile meetings for the president. Dow down 89 points. Were back in just a moment. The customer app will be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Take you to the white house this morning where we are awaiting the arrival of the egyptian president. First visit to the white house by a egyptian president since mubarak back in 09. Lets get to eamon javers with more. Reporter this wont be the first conversation between these two leaders. They met in new york in september and spoke on the phone in january. So this is the latest in an ongoing series of contacts between this administration and the government of egypt. A couple of issues to watch for in terms of what will be discussed today. We presume that u. S. Foreign aid to egypt will be discussed. The United States administration has suggested its going to cut back dramatically on foreign aid spending. One of the questions will be whether the egyptian side pushes for more money for egypt in this meeting today. Another one to watch for, of course, is human rights. The United States administration also saying here that theyre going to pursue human rights but do it in a more private, discrete way. Dont expect a big confrontation on human rights from the Trump Administration to the president of egypt here today, carl. Im wondering, does this follow a thread were hearing in recent days the Trump Administration seeming to take a softer tact toward syria and Bashar Al Assad implying the fight against isis and terroris important to this administratre speaking. Does this narrative on egypt follow that, too . Well, absolutely. Fishes here definitely believe egypt could be useful in the fight against isis. Thats one of the president s number one Foreign Policy priorities. Jared kushner, the president s soninlaw, is in iraq today. Hes been invited there to get a lay of the landscape and as we know, hes become somebody who the president leans on on manner of issues, including middle east peace negotiations and domestic and Foreign Policy here at the white house, so when he gets back, well expect hell have his input, but the anti isis fight, definitely a priority here. John harwood joins us as well to take about a big Foreign Policy week for the white house. John, got cici coming and sets up for the big meeting with xi this weekend in maralago. Thats right. I think the point eamon made, soft, the projection of soft American Power on issues that arent directly security related. To the fight against isis and in the economic real m, wichina, a more transactional interaction you would expect President Trump to deemphasize human rights with china as well and focus on the International Economic exchange between the two countries. I think this is reflective of how President Trump thinks about whats important. The economy and security and back puts on the back page a bunch of other issues that previous administrations, including president obama, thought were significant. John, what are the downsides perhaps that come with putting human rights perhaps farther back in the priorities than you know, obviously important things like trade. Like fight iing terrorism. I mean, are there allies in particular, constituencies in the middle east that would see this as a slap . Well, look, president bush as well as president obama had different strains of American Values and idleism in their Foreign Policy. President bush in the wake of 9 11, set out a goal of ending totalitarian rule or dicta dictatorships around the country. He said fostering Democratic Values was paramount. President obama was less committed to transformation given what happened in iraq and other difficulties in the region, but viewed human rights as core to American Values and the projection of what america stands for around the world. Its just a different way of thinking about americas role in the world and whats important to americans. Its the manifestation of the America First policy donald trump has articulated. Before we go to break, the big story about the chinese working through the president through kushner. Youve got kushner in iraq, a country that till eson has not yet visited. Do you make if youre Rex Tillerson right now . Im thinking that i do not have the portfolio that s secretary of state tears of state have. If youve got jared kushner, who has in his portfolio prepping the president for a meeting with china, handling relations or surveying the antiisis campaign in iraq, with a whole other range of issues hes involved with dmesically, you forgot to think this is an administration that is imbalanced in the way weather traditionally come to think about them in the roll of cabinet secretaries and staff. Got that to watch. Watching the Judiciary Committee op this gorsuch vote. Dow is down 106. Well take a break. Back in a minute. Back in a minute. Busy morning for auto sales. Tesla delivering a record 25,000 vehicles in the First Quarter, also hitting an all time high today pushing market cap higher fan fords. Phil lebeau has been digging through the numbers. Lets talk b about tesla versus ford. This is a watershed moment. When you have tesla now having a higher market cap than ford. Last year, tesla sold a little over 76,000 vehicles and yet, has a higher market cap than ford, which sold 6 p. 6 million vehicles worldwide and made 9. 4 billion, but the market is what the market is and now, tesla has a higher market cap than ford. A bit of a reach to surpass gm. Right, phil . Yeah, but theyre nip iping their heels. Its not going to happen real soon, but they continue at this trajectory and if gm continues to languish as ford is, dont be surprised if were talk iing abt that atom so many point in the future. Is this an indictment of ford and gm or just hoping gone mad with tesla . What has to actually pan out for this relative value to make sense . Well, you have to believe that the model three is going to be successful for tesla and not just that they dlefr it, but that will it will be successful. Thank you for that. Were watching egyptian president arrive at the white house this morning. Pretty much on time. Eamon javers, weave sot of raised the curtain, but its not just a bilateral. Its a, woing lunch following by the meeting with the secretary of state today. Thats right. A whole series of meetings. You see the president there at the west wing door. This has become a tradition for this president doing the official handshake and greeting at the west wing door there. Thats something foreign leaders look forward to. They know this moment is going to be in the newspapers back home and in the United States. The president spending some cig tapt time here with the egyptian leader. Also gesturing to the cameras, looks like theyre pose iing fo photograph. Some of the still photographers were set up out there to the left of the door you see there and then the president has gone inside the u. S. Marine guard and the entire u. S. Military guard here on full display. This is what the white house does so well. Home Court Advantage for the president of the United States with all the pomp and s circumstance that goes along with this. Certainly, we have a president well versed in the power of the moving image. Well keep your eye on this as you see the honor guard there working his way around the white house. For now, dow is down 203. Over to wapner and the half. He. Welcome hoth halftime report. Our top trade this hour, will the new quarter for stocks bring more gains for investors . With us for the hour today, pete na jeer yan, joe terranova, also jim cramer, kevin oleary, the chairman of o shares etfs. Stocks are lower today, but coming off their best quarter in more than a year. The way ive been thinking about this is that stocks are going to move from faith fo fundamentals. The market went up based on the faith of