Restarting next week thathelped things in asia. In europe, its a bit of a mixed picture. The dax up by 0. 1 you do see red arrows for both the cac and the ftse the ftse, well talk more about Boris Johnson who will become the Prime Minister there today ftse now down about 0. 8 stocks are flat in italy and in spain. If you check out the treasury yields here in the United States, you will see this morning the tenyear is yielding 2. 057 the big story of the morning, shares of Big Tech Companies like google, amazon and facebook, theyre under pressure after the u. S. Justice Department Said theyre opening a broad antitrust review of Technology Firms the review was scrutinikru desie if these companies are stifling information and harming consumers. The Justice Department does not name specific companies, but it is likely to encompass google, foos facebook this is the real first shot across the bow by william barr and the doj. You know you have the democrats, you have the republicans also after watching the market yesterday, 177 points on the dow, im like thats a great day. Then this then after the close, i was like tomorrow i saw this. You know the market you know, President Trump, the market will be down tomorrow based on this as long as you understand that you know Elizabeth Warren and her wing of your party its not my party you can claim the republicans for yourself you cant claim the others for me the negative is that trump when they say they actually said search social media and retailing. Duh . Google, facebook, and amazon if this is what you want im annoyed by it. Then i immediately heard that well check to see if consumers are being harmed if youre bein by a loss of privacy, i can understand that, but youre not being hurt by services or by retail if anybody thought a european approach to it would be right maybe some Small Company somewhere has trouble entering amazon space t anybody who thought this would be get chopped up, the ftc would be responsible for facebook, no, this means the department of justice is looking at everybody, and you will still see the ftc stuff. For someone who is so blatantly manipulative of the fed and of the Justice Department, for his own sort of selfinterest, in a lot of ways you just said it. You shake your head and go i cant believe this you cant believe that how to not understand the cause and effect of this and lower stock prices is strange. Youre either pro big business, pro innovation, pro u. S. Technology or youre like thats been the situation so what are you saying about your guy im saying that normally he is blatantly pro business because he wants the economy, he wants jobs, he wants higher stock prices can you explain this then mine,ean, i hope its not i google because they sort of maybe search for liberals, i hate facebook because of that, i dont like amazon. What did you think after his administration went after at t and time warner . I cant believe the government you like so much would be so selfinterested . Would they do it just because of cnn . Would the Justice Department do that just because the president doesnt like cnn maybe im naive, im usually not. Why do you think they went after at t why do i think they went after at t yeah. Cnn . I imagine the president had a particular problem with that tra transaction. One thing that was so interesting, when President Trump was campaigning, in a very unique way he tried to thread a strange needle where he did campaign against big business. The whole populist approach, you go far enough one way, you almost get to where Elizabeth Warren is. Drug prices . Same thing there thats so confusing for people thats annoying to me its annoying to you . Im annoyed that a pill costs a dollar to make and you charge more there are times where true conservatives have problems with the populist approach. This is a real moment not really. But if you go after if you go after the big leading market cap Companies Like amazon, you dont like the washington post, so youll knock down amazons prices and tax them differently . Do all the things that will hurt their business you sound like aoc who are you saying sounds like aoc President Trump . Yeah. Youre cutting off your nose to spite your face. I dont disagree with you then let me rethink this. The ftc is expected to announce a settlement deal with facebook over the mishandling of user privacy later today. Reports say the social network will have to pay 5 billion Mark ZuckerbergMark Zuckerberg will have to certify every three months that the company is properly safeguarding user privacy big day for you. Why so . Five ho five hours of mueller theyre not my people you can keep saying that. And the other side is not mine either. This is a big day for do you think that if everybody knew what was in there, that they would say this guy has to go has to be impeached . We dont want to go here a lot of many eyes will be on this larry dud lkudlow said when a asked about President Trumps remarks, he said ill stay in my lane hopefully its not the left lane going 50. Thats all im saying. Do not do that okay this is like two weeks ago. I know. For those of you who were on vacation people understand they see the people. You in that highlander, does it go over 50 . If you push it, do the four cylinders let me talk about trade news. The white house confirming a u. S. Trade delegation will head to china next week for the first high level facetoface meetings since President Trump and president xi met last months at the g20. Robert lighthizer and Steven Mnuchin are expected to meet with chinas vice premiere late their morning well get an update on the trade talks from secretary mnuchin. He will join us at 8 00 a. M. Eastern time we will talk to him about that we will talk about the debt ceiling, that and much more coming up. Another thing im not sure about. Whats that were just the debt ceiling . Like drunken sailors still. This is interesting all of a sudden you disagree with the president bitcoin, libra yeah. On trade. On deficit i actually do think for myself occasionally. I do ratherthan the knee jerk reaction to everything. Coming up, well get you ready for todays big reports, including at t. I think youre squarely on the side of the editorial side of the wall street journal. Usually usually usually yeah boeing caterpillar, all of those before the opening bell heres a look at the biggest premarket winners and losers in the dow. Were changing whats possible every single day. , and if you run a business, that means a lot. We create Financing Options for your customers. To help them get the things they love instantly. Our data provides insights into what your shoppers have already bought. So you can offer them what they might consider buying next. Our financial and Tech Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Mno kidding. Rd. 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. At t, caterpillar, boeing, facebook and tesla set to report results today. Lets talk about earnings optimism, trade and the effect on the broader markets joining us is the Global Investment specialist from Jpmorgan Private Bank and ed keon from qma. Monica, i was struck by something you said i hear this a lot, its a different place in january following the december selloffment i think i was last here in the winter, after the selloff. It was easy to say you have to buy. I think youre getting to th point where youre saying, geez, i dont feel quite as positive now. A lot of people are expressing that end of cycle fears i dont know if were end of cycle, late innings. The challenge is how much further does this go if you had some nice moves, were pairing back risks so you would sell some stuff and wait for a shallow pullback . Try to time it and go back in. Its hard to time these pull backs. Generally speaking you want to be attached to a cycle take some chips off the table. Look to come back. I will do 5 , 6 in your sleep, standing on my head thats fine. Thats a normal equity return, right . Why not stay in most of our clients will stay invested through a cycle its nearly impossible to time things if you have great gains, vol is low. True end of cycle would mean more than a 5 or 6 pullback, wouldnt it. Typical draw down over 20 . That i dont want do you see that coming i dont think its near at the end of the day, look at earnings better than feared if we dont see a significant slowdown, trade fears abate, corporate fears are okay that gives you a good runway for a couple quarters. Thats the first thing you said, earnings have come in good better than expected. Earnings always Beat Estimates we only missed estimates a handful of times the fact theyre coming in above the wall street forecast is not a big deal, but theyve come in more like 5 , 6 ahead of h estimates. So we may get a 2 growth for this quarter so earnings have been generally positive for the market and they look good to support stock price prices youve been sort of tepid about things yeah one concern is what you just said, you would expecting maybe them not to be yeah. Does that allay your concerns and make you less tepid . Yeah. You feel better yeah. Really . We started the year, i thought earnings could be negative for the year. Now it looks like theyll eke out a couple percent gain. Valuations are higher at the beginning of the year. I think the process has probably run its course and from here, if were going to get gains as we go to the end of the year, it will be based on 2020 earnings looking like theyll give us another 5 , 6 , 7 so you would call yourself you moved up a couple points on the zero to ten scale on how bullish you were yeah. We have been net buyers over the past month we moved up to a slightly overweight position in the u. S still nervous about europe, growing very slowly if at all. Asia slowing down. The rest of the world is slow. You can still participate in the u. S. Market. The government will not shut down for two years is that good or bad . I suppose its good barely good what else scares you europe still not great the rest of the world is not growing that robustly. Europe around 1 , maybe less than that. China slowing down you still have the conflicts that we talk about every day, what happens with the trade war, what happens with brexit so theres things that can go wrong. I just think at this point were probably getting a reasonable expected return out of stocks. Not a lot, but a few Percentage Points between now and the end of the year, id be happy with that no one is talking about iran. I dont know grab these 17 guys that can affect oil that can theres a lot of ways that can go wrong i dont know is that on your radar screen is it brexit only . Certainly because that could weigh on sentiment to the point we make about valuations, you have a hit to sentiment that causes valuations to contract. That could be a challenge. We had a lot of headline risks for two years, here we are we will have fiscal and Monetary Policy turning more supportive so we could extend the cycles couple quarters. We have gdp on friday that wont surprise people 3, 2 anything in that range. Around 2 is my range. Thank you thanks. Still to come, we are expecting numbers from at t in the next few minutes right now that stock is up by 7 cents to 32. 16 also well tell you about another big earnings mover that is getting crushed in early trading. Squawk box will be right back. At t reporting earnings. The company is coming in with earnings of 89 cents a share, in line with expectations same story for revenue, 44 44. 9 billion, also in line with expectations Randall Stephenson making some comments saying theyre on track to deliver on all of their 2019 priorities he says we continue to pay down debt and are more confident than ever we will meet our yearend deleveraging goal and look at buying back stock. Mike santelli is here. Probably debt is the biggest issue. 6. 8 billion net debt reduced. Yeah. Thats a pretty good number thats been the big piece of discipline and what theyve been targeting for this year. On track for that is good. For stockholders, its like what does that mean for the rest of the strategy maybe just the mention they would be looking at buying back stock. So they feel like they will get past this point where they have to focus on Debt Reduction and have some cash left over theres a lot of stuff outside the numbers now with at t. Its a Media Company whats the strategy with the hbo streaming product, and really pay tv sub losses is a big story now. Directv and if you knew the dividend was safe yes recover and qualify 6. 3 , maybe some upside to the stock. They have great assets just depends on what you pay for assets and whether you can service the debt if you feel comfortable with that and theyll continue to earn it and cover it. Its not always tax advantage. Everybody would be in at t, would they not when you see a yield that high, you have to determine what does the market determined we determined its safer . Its less of an automatic operating company now that it owned directv and time warner. Its not the same as it was a clock work utility type earnings has plenty of skeptics, i wonder if the skeptics are justified in ways. A lot of times its like i dont know what causes people to be so skeptical . The question is, youll have this hbo max product that will start in the spring of 2020. Good managers there was a view from a pricing perspective you could capture 4, 5 on this new product now with disney, you might be able to capture a dollar or two or three more maximum over and above the other theres no commentary in this release talking about the pricing on that. Hbo now is 14. 99 we do anticipate well hear more about that on the Earnings Call today. Assuming so were at 14. 99 now. Lets say you go 3 more to 18, its hard to think you can go meaningfully above that given the amount of content available relative to a netflix and everybody else so when you said whats the expectation, the expectation going into the transaction is that you would be able to create more dollar volume on each sub than you currently are you asked why people are skeptical, im not sure theyre right or wrong, im saying this is the math. Theres more uncertain execution risk in the longer term strategy than there used to be directv was not a good deal. Theyre working that off that was the only bridge to the deal that they got is it that or that directv was like we cant make it working we have to find content that scale allowed them i dont think anyone thinks at this point that time warner went for a crazy price i dont think it was an overpay given what disney ended up paying for fox some other comments our first net bill does not only run ahead of schedule its a driver of our wireless network, leadership and speed he also says its there to have nationwide commercially 5g coverage available in the first half of 2020 5g and sprint tmobile are the other parts you want to hear about. Theres a question of what nationwide coverage of 5g really represents if you look at whats going on in some cities where theyre doing it, theyre getting super fast speeds, but its not blanketing the place and its very challenging to do that right its going to probably feel like it did in the earlier days of wireless it really mattered what network you had, the whole roaming stuff. Thank was not that long ago. I dont know if you saw the test the wall street journal did last week to check the 5g networks networks, in most cases, because of the way 5g works currently, the phones become so hot they have to put them in his packice, just keep 5g rolling you have to ice the phone. The phone is going over 100 degrees every time theres a hardware issue that has to be worked out theres a bit of a software a cell tower theres a lot of things that have to happen to get to where we want to be mike, good to see you at t shares down by 10 cents. When we come back, more on squawk box. Trade war fallout. Well tell you how u. S. Cherry grandmothers are handling tariffs. 50 imposed by china a live report out of shanghai. And later well get an update on the trade talks from the treasury secondary, Steve Mnuchin will join us that will happen at 8 00 a. M dont want to miss that. As we head to break, a look at yesterdays s p 500 winners and losers these folks, they dont have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again welcome back youre watching squk sqsquawk live from the Nasdaq Market site in times square. Good morning. Welcome back to squawk box. Dow down about 80 points we have at t already reporting nasdaq indicated down 32 thats not as bad as it was earlie earlier and late yesterday after the new doj investigation into big tech the s p indicated down by 9. Those are all moderate in terms of the selloff after coming close to new highs yesterday just being less than a half percentage point away on most of averages part of that may be because of some positive sentiment built in because of the trade talks. Turns out u. S. Trade negotiators will travel to shanghai next week for a