America are piling on mountains of debt. What happens when its time for companies to pay the piper well get some answers on this tuesday, june 11th as Worldwide Exchange begins right now im back hi, from wherever youre watching im Brian Sullivan. Thank you for joining us on this tuesday. It could be a lucky seven for stocks theres a lot of green on the screen, and we can use i another rainy day in new york. Either get another cup of coffee or go back to bed. Dow futures are jurnd under 100. The dow on a sexday win streak. Of course, if we keep this up, it could make it a sevenday the bond yields are ticking up higher the benchmark tenure yield at 2. 16 . Also watch oil Oil Beginning to creep a little bit higher as well were up just under a percent. Also a big night overseas. Not as much in japan the nikkei in japan did rise 3. 1 look at the shanghai come possib posit. And the European Markets like our futures, like asia, a lot of green on that screen as we talked about, germany starting to quietly outperform watch the dax up 1. 1 this morning. Lets talk about this nice little run were in the middle of joining us is art. The day is dismal, the calendar changes. Suddenly the market mood and all of the buying action what exactly has changed you know, its interesting. Weve seen a pivot did we do too much damage and how much of that can we claw back i certainly think over the last six days weve done an efficient job of clawing back. I think what were looking at is not bad as what we priced in and perhaps we need to get back to neutral territory. Weve been talking about corporate debt we go through quiet periods where companies cant buy back in stock were back where they can. Is that part of the thesis where the market falls and sort of support the market i think thats part of it obviously there has been a lot of questions about what the best use of cash is, whether you have cash on the Balance Sheets at these ultra low rates or youre throwing out rates but recently over the last three weeks, theres been a massive amount of cash being put into m a activity thats as important as anything. Youll notice yesterday we have that Large Aerospace and defense deal we have a software deal. I think theres a halo effect to the use of cash in terms of m a activity. You think m a is that stool underneath the market then. It feels like that. They try to look at what is that if youre willing to pay 30 , 40 above stock trading and 80 times ebitda, thats going to change your valuation. That is a going to change in your head. Maybe the dealmakers are being dumb maybe theyre overpaying. Theres a scarcity now. Weve seen that because companies have stayed private or been taken out weve never known them in the Public Markets theres been Something Like 350 artificial intelligencerelated companies taken out that you never heard of. I will say this as welch we talked a little bit about it yesterday. When you look at the pool of stocks over the last number of years, it shrunk it gets smaller. Theyre buying back the stock. The pool of assets shrinks the number grows so everybodys changing a smaller pool of assets that could have a long term floor under this market. Thats such a very good point. Literally we cut the Trading Companies in half of the last ten years. I think thats very important. And yet we still hear people saying we should use the 16 multiple for is s p 500 and over the last ten years t companies are growing their earnings at a much faster rate, so to me i think that augers for slightly higher multiple. So maybe we should change our thinking on what is a fair value or a good historical multiple simply because there were ten buyers going after ten apples. Now theres ten buyers going after five theyre going to bid those apples up. A massive story that not a lot of people are talking about. Right and to the same argument when you think about buybacks, share counts are down. When a valued investor coming up and says, wait a minute. I think its okay to say, yeah, thats right and thats good. Its a very important authority. The shrinking pool of assets we appreciate you coming on. Enjoy the beautiful spring day in new york. Also new this morning, could an obscure federal judge scuttle a 70 billion deal a new report that ccvs health could be in jeopardy. A fed really judge could block cvss deal with aetna. They say the judge is setting the stage to reject the merger on concerns it could reduce competition and raise prices the judge could make his ruling by next month. You might remember that the Justice Department already ok okayoka okayed cvss deal. It would likely go back to the doj for an appeal. They have been one Company Since the deal closed in november. The combined entity is already showing progress toward its goal of course, if this deal was blocked, i dont have to tell you it would be a mess shares of cvs down about 0. 2 . Brian, ill send it back to you. Its getting a lot of attention. Were going to fine out more were just Getting Started on a big tuesday Worldwide Exchange. Up next, lets call this three perfect pairings microsoft and amd teaming up well tell you how people are respond. And apple and broadcast teaming up and bill gates and buffett are getting together in a heartfelt video. First, the consumer lek trom is show in shanghai and our is show in shanghai and our colleague arjun ill tell you how they may have hit a speed bump. G yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Welcome back and good Tuesday Morning. Stock futures are in the green have you noticed the trend lately the dow in themyle of a sixday win streak if they do it today, that will be seven rows of gains, and that would be the longest win streak in more than a year. Also happening today, some of the latest and greatest ground braking technologies are being unveiled this week at the Asia Consumer Electronics show but despite all that, theres really only one name wall street cares about right now and thats huawei Arjun Kharpal joining us live from the show right now. Arjun. Well, brian, huawei taking front and center stage here in asia one of their top executives took to the stage today and acknowledged the company could be hitting some roadblocks theyre currently number two in the world and they want go become number one, exceed iing h other. It has been developed its own chips. It has been developing its own development and for that reason theres a growing number of reasons that the u. S. Could be detrimental to its own technologys foyes one of those voices is gary shapiro with the group that puts on this show in aza and, of course, in asia as well. I had a chance to talk with him earlier and asked him what huawei could do to china and Americas Technology lets listen to what he has to say. Our concern is this is escalating out of control. When elephants fight, the ground gets chiam pelled. China has a lot of it, u. S. Has it its free trade, people working together the law of comparative advantages i think the u. S. Policy may be really pushing china to do everything by itself and not only put up walls around china, but were putting up an economic fence around the united states. One by area that they could put a lot of money into is chips. Their focus is on technology they want to have 70 of the chips consuming. Thats currently under 20 theyre investing Companies Like huawei are invefgt billions look theres still a long way to go a lot more invest money and talent to catch up with the u. S. And that could take a long time. Back to you. Arjun kharpal in asia well see you tomorrow on deck, hes defending his billiondollar allstock deal for tableau. I have to be honest with you. Tableau didnt want our cash they wanted our equity now, the full conversation with jim is coming up. Plus, bad credit, no credit, no problem at least to amazon what jeff bezos and company have in store that youve got to hear coming up. The first survivor of alzheimers disease is out there. And the Alzheimers Association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. It is another rainy day in new york lets get a check on stocks on the move youve got to watch this the dealhungry Company Making its biggest deal ever on monday, offering more than 15 billion for Tableau Software investors didnt love it the stock fell 5 on concerns that salesforce paid too much, but the ceo defended that last night with jim on mad money. I have to be honest with you, jim, tableau didnt want our cash they wanted our equity because they know the real value is in the company were creating together in the ended they wanted our stock. I cant blame them they have a vision for roys possible for the future, and when you look at that, we have a company thats going to go fast. Theyre pulling down slightly today but they chumped more than 30 yesterday. Maybe they did want that sal salesforce stock Apollo Global to take shutterfly apolo is also buying snap fish, another photosharing service that plans to combine with shutterfly and toss the octopus onto the ice in detroit lets complete the hat track shares of broadcom are inked after a deal with apple. Its for smartphones, tablets, and the apple watch. Lets get a check on other headlines. Nbcs phillip mena is in new york with those. Phillip. Good morning. The chopper crashlanded onto the roof of a midtown Manhattan Building blocks away from times square the pilot was killed thangfully nobody else was injured. Big papi is back in boston this morning david ortiz arrived at Massachusetts General Hospital with a Police Escort after being shot in the Dominican Republic the red sox arranged for a jet to bring the slugger back to the states the team honored him with a moment of reflection players and fans paused for a moment of prayer. And mandatory evacuations are under way in Northern California as hundreds of firefighters battle the first blaze of the season. Its called the sand fire. Its scorched more than 2,000 acres. Officials say it started on saturday and right now its just 30 contained. However, strong winds and high temperatures are fueling those flames Utility Company pg e says it had to intention ally shut off power to some 20,000 customers in the airy as a safety measure brian, back to you. Phillip mena in new york, thank you very much. In political news President Trump is headed to iowa to talk energy lets get more on his planned agenda and more with tracie potts whos live in washington with more. Hi, tracie. Hi, everyone. Energy is the topic of the day President Trump says its a secret deal and disagree with that, and hes reacting to whats happening on capitol hill and whats not happening on chile. The democrats got the Justice Department to do a 180 on whether theyre sharing the information behind the Mueller Report todays contempt vote to force the s p for attorney general william barr has been called off for now. The Justice Department cut a lastminute deal with democrats. The department will now comply with the subpoena and allow lawmakers to see evidence of obstruction behind the Mueller Report it happened just hours before democrats brought in a key watergate figure, former Nixon White House lawyer john dean to explain how obstruction works. The Trump Administration is in fast competition with what happened in the nixon administration. The president dismissed dean. Deans been a loser for many years. While explaining a mysterious tweet explaining mexico signed off on a secret agreement deal critics claim theres nothing new. He create as crisis and then acts like he goes on to solve it. That mexico had already agreed months ago to hold migrants on their seed and speed up troops to the guatamalan border. Its got to be enforced to make sure mexico follows through. If not, the secretary of state says tariffs, taxes on mexican goods are still on the table. Now, the trump team put a 90day deadline on this mexico deal but tell us, brian, they think theyll start to see progress in about a month. Well continue to track that for you. Tracitracie, talk about the. Apparently theyre walking that back what do we know, what do we dont know right the president said they cam up with provisions that they need to approve that i dont know anything about it, the secret part of the deal that they alluded to what they know is they agreed to speed up the time line of some of the things they already agreed to months ago, sending the troops to the guatamalan border expanding the program, that they agreed to to hold detainees on their side or migrants on their side of the border while they were requesting asylum here in the united states. What they did not agree to was the Third Party Agreement where people in Central America would have to stop and request asigh bum before getting to the u. S. Border. Maybe its so secret one side doesnt even know. Thats a secret. Thank you very much. Still to come, in the world of easy money and Interest Rate cuts, bad Economic News usually means good news for stocks thats a hat tip to the fed. But according to our next guest, nothing should be further from the that slacking off, significant slowdown of sales of one of the most hot ipos of the year. Kirk and spot, fred and barney, laverne and shirley, buffett and gates . The millionaire bromance thats got everyone talking, bra. Well talk about that next w . W . Uo going for seven. The dow on its longest win streak in more than a year were going to find out what exactly has been drawing the markets higher. Debt threat. U. S. Companies piling on the debt as Interest Rates item about. Could it all backfire . The weeklong series and the rate shock continues. And good news foryour wallet gasoline prices are down well find out how much it will cost to fill up your tank on this tuesday, june 11th, as youre watching Worldwide Exchange right here on cnbc. Welcome back and thanks for being with us here on cnbc, everybody. Im Brian Sullivan good Tuesday Morning lets kick off this half hour and kick off the morning headlines. Heres whats leading cnbc. Com the messaging service says it expects Revenue Growth to slow in the coming quarters its expected to make its debut in the coming Months Microsoft previewing its streaming service in project x cloud at the annual e3 convenient theyll stream the series right to their mobile devices. Microsoft teases its newest consol microsoft scarscarlet it will use amd chips no surprise. Up almost half a percent and shares of devices up about 1. 3 and as brian alluded to, good news for commuters prices continuing to pump. The average down 2 cents to 2. 73, thats a full 19 cents cheaper than this time last year, brian, as you well know. Thank you well see you in a minute. It looks like thats what were going to do. You know whats interesting about the futures, guys, and weve talked about this for a couple of weeks. For whatever reason, the futures used to stay the same. Youd come on at 5 00 a. M. And theyd hover around the same weve seen futures start to move a lot more than they have, and, indeed, thats whats happened were up 130 points right now in the middle of a sixday win streak, the longest streak in more than a year, coming off the best week for stocks bond yields are ticking up but a little bit theyre still very low at 2. 16 . Overnight in asia, the chinese market, whether or not its their Stimulus Program or optimism about a trade deal, who knows. But the shanghai composite up, 2. 6 if you see a trend, you can spot it because the European Market is doing the same thing. Its been kind of a quiet, dont tell anything, performer the german dax up 1. 3 may is dismal. June is great. Whats happened . I guess its bad news is good news because the feds in play i get that theme weve had it for years, but im trying to figure out what the bad news would be that would make it good news that thats an excellent question i think it depends on whether or not were headed into an economic recession i think its important to differentiate between the two. Right now the consumer remains very strong. The most recent jobs report meeting was a little soft. They had held up quite well. The area where theyre cautious is around the industrial part of the economy. The Economic Data tends to lag by four to six months. So we get data thats wea