He. Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box on cnbc. Im becky quick along with joe kernen andrew is off today. Weve been watching the u. S. Equity futures, things are still in the green dow indicated up by 60 points. The s p up 7 and the nasdaq up 27 the dow and the s p 500 for the month of june are Still Holding on to their gains. For the month, dow above 26,000. Look at what happened overnight in asia. The nikkei was down by a half percentage point the stocks were flat for the hang seng and shanghai composite. In europe in some early trading, there are green arrows across the board. The biggest gainer of the three major averages is the dax in germany, up 0. 4 in italy, stocks are up 0. 6 watching the treasury market in the United States, the tenyear is yielding 2. 112 . The u. S. Navy is assisting two tankers reportedly attacked in the gulf of oman. According to the fifth fleet, u. S. Navy forces in the region received two separate distress calls overnight. No word on who is responsible for the attack just last month four oil tankers were damaged in the same area, both saudi arabia and the u. S. Blamed iran at the time for those attacks. Iran denied any involvement. Crude is higher on the news. You can see that pop beginning at 2 00 a. M. Eastern much more on this story later in the hour at least it was under 50 when or just over 50. Getting close to a 4 handle on oil before this. Oil prices were down yesterday because of concerns about stockpiling in the United States again prices are higher this morning as we continue to hear some of these reports. Well give you more information as we get updates on them. The four attacks that happened were a month ago, may 12th these two ships were not Saudi Arabian ships. One was a norwegian ship and the other was a japanese owned ship. They have taken both crews off and they are continuing to monitor the ships. Vichinas vice premiere is calling for more government measures he suggested that beijing would unveil more policies to bolster growth amid trade pressures with the United States. He said there are some external pressures, but that those would help china boost up reliance in innovation and accelerate the pace of high speed development. Reuters is reporting that alibaba filed for a hong kong listing. It could take place as soon as the Third Quarter of this year alibaba shares this morning are up by 1 big celebrations here and in st. Louis. Youre not even from st. Louis, are you . Just totally antiboston that would have been three big championships in eight months or something. Nobody deserves that the blues took home their first ever stanley cup with everything on the line in game seven in boston oh, that must have been something to see the blues scored two goals in the first period and never looked back. It wasnt close for a seventh game would have been better if it was 43. The blues outscored the bruins 41 to bring home the first stanley cup in st. Louis history. You know who is probably happy bullard. Im sure he would be sticking his chest out. St. Louis fed president yeah. Can they light up the arch or something . I bet they do i believe they can and i bet they do. What does this mean for the raptors, do you think . What . Can another team thats never won win . Over a dynasty. Can it happen again . Well see. Youre always rooting against the favorites. Thats sad and golf starting again today. This is coverage that we have if you dont like the masters coverage, where they only show you the afternoons and stuff its foggy out there today. I looked at coverage, theres like 12 hours a day. Hes been watching all of it. People in my house get so irritated. Theyre like youre kidding, right . It was practice rounds yesterday. Pebble, you know i like pebble there are times in the thursday round, its not crucial or anything. But just we put we get to play i like watching it because i know where they are practicing every blade of grass weve seen out there its such a beautiful place. We know the holes. Dustin johnson, talking about him. Talking about rory any way, lets keep talking about hockey listen to this. Hockey last night, one blues fan is celebrating a huge financial win. The fan placed a 400 bet on the blues to win the stanley cup back in january. And that is paying off with the blues victory that fan will take home 100,000. As you can see he celebrated accordingly. He was with friends. They were popping champagne. 100,000 wow congratulations thats nice. Coming up, rate cut debate, well talk about what the fed could do at next weeks meeting that could have an impact on your portfolio. And this mornings movers include big gains for the biggest name theyre not just yoga pants theyre not just yoga pants. Lululemon, well talk about that theyre not just yoga pants. These are stretchy, comfortable pants. You just described yoga pants. They breathe as i breathe here is a look at the biggest premarket winners and losers in the dow. Plants capture co2. What if other kinds of plants captured it too . If these industrial plants had technology that captured carbon like trees we could help lower emissions. Carbon capture is Important Technology and experts agree. Thats why were working on ways to improve it. So plants. Can be a little more. Like plants. Who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Expedia. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Broader markets paused for a second day didnt turn into a rout yesterday, but it was lower after what looked to be positive early on while some say a fed cut next week is already priced into the markets, our next guest is still unconvinced that Economic Conditions are bad enough to warrant a rate cut but we already decided again and again and again hans in fact, just yesterday, dont know if you got to watch, some of our guests were saying its not about the economy. Clearly not about the strength of the economy its about inflation you dont need signs that the economy is weakening just that inflation is staying below the fed target and that itself is enough to bring about a cut. You dont buy that no. I think the inflation rate has been bouncing around the fed target now for some time it will run 1. 8 year over year, 2. 2 year over year but stable its been stable inside a band around 2 . If you are running a business, you can plan for that. You can plan for that. Roughly 2 inflation, if it maintains itself, is workable for corp pralorate america. I dont think the fed needs to react to a slight downtick in the rate of inflation. What is going on with sovereign . What are they indicating and fed fund futures, why is everyone so youre the only one do you feel in a position to dispute all these other metrics . Yeah. Ike like a voice crying in the wilderness, i guess. When you look at the data, things like the nifid survey, still strong that was a nice tick up earlier this week. Hiring plans are still good there. Even the employment number, joe, when you look inside the numbers there, probably was more of a statistical fluke. Roughly 10 of the time youll have a number plus or minus 100,000. Thats what happened so in the totality of it, i think without a doubt the economy is slowing down but not enough that necessitates a rate cut. I think that will be the surprise next month. That is not priced in. For the economy, you sound much more bullish than a lot of people have. I guess that makes you bullish on the stock market . I am bullish on certain sectors. If you think about the market overall, we have talked about this before, i think well end between 2800 thats the good news its down from where we are now, which means i think well have a tough summer prices will get pushed around because the impact of the tariffs, the policy uncertainty which is at levels we have not seen since the depths of the financial crisis, those will start to have to get repriced into equity. Not as good as it has been of late, but still pretty good. A solid year overall which sectors defense, interestingly enough i thought the ratheon purchase, which we own, i think thats indicative that the need to invest in defensive capabilities remain pretty dire, if you will. So i think that area, while its not cheap, represents a decent opportunity longer term. And then i think other opportune ties that are presenting to invest right now, the uk market. I think we are about to see them make a decision one way or the other. Either they tumble out or they dont. And my guess, my bet is that it wont be near as bad as forecast and that will present an opportunity for investors. So no rate cuts in 2019 is that what youre saying if there is going to be a rate cut i dont think they need to do cuts. Thats your view, but do you think there will be rate cuts in 2019 yes i think thats right if we get anything, it will be on the back end of the year, when it becomes painfully obvious that it is needed or not. I dont think its going to be needed at this juncture. What is gdp going to run for the year ballpark . I would have said 2. 5 . Somewhere between 2 , 2. 5 you have to mark that down a half percent with the tariffs. Just with china. A whole half point comes off because of china yeah, up to 0. 4, 0. 5. Get a half year of that. Maybe its 0. 2, 20 basis points if you put it on an annual run rate close enough. Hans, we got it. Thank you. When we return, morning movers including retarilers in the premarket training. And much more on the reported tanker attacks that sparked a jump in crude prices overnight. Right now crude prices up by about 3 well tell you more about the suspected attacks when squawk box returns time for the executive edge. And well start with some stocks to watch lululemon reporting better than expected First Quarter numbers thanks to strong growth from its Online Business and sales of leggings and jogger pants. The retailer is also raising its guidance for the year. A lot of it is these pants those yoga pants youre wearing. Are these yoga pants . Theyre stretchy and they breathe. Arent yoga pants something fundamentally different . Youre just yanking my chain yes and you wear makeup, too i do. It doesnt really help, but sometimes i think it hurts i agree i agree. I take it off the second i leave the set. And i use a dark black shoe polish on my hair. Attractive. To make sure theres no gray. As you can tell on all the shots. Shares of rh it looks good that shot is fine shares of hr, formerly known as restoration hardware, up 27 right now. The company posting First Quarter numbers that beat forecasts. It is also raising its outlook for the year the company is also down playing the impact of higher tariffs on chinese imports saying it has renegotiated product costs, raised prices and is shifting some production aware from china. And we are keeping an eye on crowdstrike. The Cybersecurity Company is hirer today. Shares closing up 70 yesterday from the ipo price crowdstrike worth pointing out that alphabet took a stake in this it invested 1 100 million in ths Security Software company. That stake is worth about 1 1. 2 billion. Bb t bank and sun trust are expected to complete their merger this year now we know the name of the Rebranded Bank once that merger is complete. It will be called trust bank the ceo of sun trust said that they considered every possible combination of the two bank names, trust bank its truest bank i thought it was trust bank. They did truest i thought that was a typo how would we know truest. Okay they made that up. I guess that will mess us up its not really a word, i dont think. Truest, that would be truest. You remember when exxon was looking for a name, it didnt mean fart in japanese, it had two xs and didnt what was vega nova, which means no go in spanish. You have to be careful. Coming up, delivery wars target unveiling its sameday shipping plans and the first sentence handed down in the College Admission scandal. Well tell you why a former stanford coach avoided jail time can you imagine being a coach of stanford and ending up in the slammer . I guess you can. Heres a look at yesterdays s p 500 winners and losers 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. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Good morning u. S. Equity futures at this hour are in the green up 75 points or so on the dow. The s p indicated up just under 10 nasdaq strong, up almost 33 points treasury yields in that 2. 10 area i heard 2. 12 today target is making the latest move in the delivery wars. They will expand delivery options with chip, a Delivery Platform it acquired two years ago. Shoppers can pay a flat fee of 9. 99 and have the option of choosing from 63,000 items on target. Com targets move into the sameday shipping follows similar moves from walmart and amazon. And new york city is preparing to toughen regulations on Ride Hailing Services the city plans to renew the cap on new forhire vehicle licenses and curb the amount of time that appbased drivers can travel without a passenger in manhattan below 96th street. There are currently 90,000 appbas appbas appbased vehicles compared to 13,000 taxis officials want to reduce cruising times for pick up from 41 to 31 41 of what 41 of the time theyre cruising oh. You can only be cruising 31 of the time so the app would have to kick the drivers off the streets . Is this really about traffic or i think its both the taxi guys are still powerful theyve been weakened by these Ridesharing Services it does raise questions about how much more difficult its going to get for uber and lyft to get into profitability if you have more city restrictions and regulations coming up. Places like london, if these are your most profitable areas and this is where you see the biggest pushback, it raises the hurdles you have before reaching profitability. We have a followup to the College Admissions scandal in the first sentencing in the case, the former Stanford University sailing coach avoided prison time after admitting he took bribes to help children of wealthy parents gain admission John Vandermoer was sentenced to six months of home confinement rejecting prosecutors requests for a 13month prison term he was also fined 10,000. The judge noted that the sentence was warranted because vandermoer did not pocket any of the bribes. When we come back, more on the developing situation in the golf of oman crude prices this morning reflecting the rise in tensions in that critical region. Two suspected attacks of tankers there. Crude prices are up 2. 8 and later, as we await the ftcs fine on facebook, we will talk about what potential social media regulations could look like and whether big tech needs to be broken up. Ay tuned, youre watching squawk box on cnbc as someone in witness protection, i cant tell you anything about myself. 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. Weveryone, looknk isntat your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. But were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. Welcome back to squawk box. News breaking overnight. The u. S. Navicy iy cis assistino oil tankers that were attacked near oman. Nbc news in tokyo talking to one of the ships owners saying the captain said they had been shelled or something to that effect and also the norwegian owner of the other ship saying the captain of this ship just after the attack was heard on the radio saying something to the effect of it came from a surface attack both ships reporting that an outside force hit them there are reports these ships were carrying oil. Thats not true. One was carrying methanol, the other napa, a blending ingredient whatever happened to these ships, its hard to know what was on them if you were going to attack two of what are many vessels in the gulf of oman. Where is that . You come out of the persian gulf, you go through the straits of hormuz, which iran takes control of, at least in their eyes, you come out into the gulf of oman. Theres a good map thats where the two ships were. This would make it six ships on may 12th there were four different ships. Two saudiflagged, one uae and one norwegian. With these two, that makes it six ships that were attacked outside the straits of hormuz in a month. We dont know who is doing this. Theres no reports on whether or not this is iran or something having to do with the yemeni saudi strife. If its an outside force the fifth fleet is investigating. Oil prices have spiked on the news thank you very much as you can see oil prices at 52. 53. For more on whats driving oil prices