Good tuesday morning. Welcome to squawk alley. Jon fortts on assignment. Hes headed out west. A bunch of big names on that guest lit starting tomorrow. Well hear from steve ballmer, and a lot more over at code over the next couple of days. In the meantime the dow is down 32. Amazon broke through to 1,000 for the First Time Ever as tech stocks continue to rally in the First Six Months of the year. Bertha coombs with the latest. Hi, bertha. Amazon stocks helped lift the stocks to a new high. They have helped Large Cap Fund managers achieve outperformance to the overall market. Theyve really sort of caught up in that area. Active Fund Managers are now about 24 overweight in large cap tech. Thats the largest overweight they even been since 2008. It doesnt hurt that amazon and fail bet are at alltime highs. Facebook has been a little laggard in this group, near 8 gains with other fang members. Apple, they dont really touch on, but coming into this month, ubs noticed that most Fund Managers still had apple at left than marketweighting, and when you take a look at where the Institutional Ownership is according to the most recent data, you could almost, almost make an argument that Institutional Ownership of apple and even amazon at these prices remains well below the rest of the fang names at about 64 if that is an argument that could be made at these prices when theyre at alltime highs, carl. Bertha coombs. Thanks so much for that. Alphabet at allrecord highs. Man santoli, weve been chatting with you about this. Is it a worry or concern if at all . It might be semantics. I dont know that i see it as acutely narrow as much as its a selective uneven market. When you look at it. They definitely account for a huge share of the market cap thats been added to the market, but its not as if theyre performing well in the absence of other stocks being up. If you look at it, the majority of stocks are up without fang, the markets still up okay this year. Its not like 2015 where fang was the difference between an up and down year. So, yes, its going be that way if it keeps this way. You may say, oh, thats what all gross markets are like. You notice the spread is getting wider as the year goes on. Absolutely. So most stocks are id say at least half the tocks are participating but theyre adding gains at a much faster pace. Absolutely. If banks stocks stay on their heels and Energy Stocks cant stay, you have too much to stay supported on this level on this basis, especially when the very largest tech stocks are no longer cheap. Theyre no longer like you can say apple looks cheap or facebook for that matter or alphabet. They keep asking why they continue to be in such hot demand right now and the answer turns to earnings. Theyre posting very solid double digit revenue and solid growth including amazon. Here we are again demanding the fast high growth kind of companies above Everything Else and at the expense of Everything Else in that situation. Exactly. Tell spite the fact that the First Quarter showed a very strong rebound in broad earnings, youre still looking at paying a preem kwum for these stocks. By the way, also interesting to note the low evidence vol a tiltd stocks had zero tech stocks a year ago. Now its 12 tech. Alphabet is in there. In a very strange way theyre like defensive stocks. The one thing we can be sure of. Yes. Walter isaacson joins us this morning. Walter, youve heard our discussion just now. Can we frame this as a select group of companies that will show secular growth even as the economies in this late cycle stage . Yeah. I think what youre seeing is the fundamental Technology Companies are very good. I mean the fact that theyre innovating quite well. Take amazon for an example. Two big moves in our economy over the next year or so are going to be how do you deal with Artificial Intelligence and how do you deal with cloud computing. Amazon has led the way in both of those. I think youre seeing the Advertising Market going more and more to places like facebook and google. So what youre seeing is the Underlying Technology favoring these. What many trick are you using, walter . Have we set a may trietric . It seems the stocks have groan a little faster than any metrics would have it. When youre talking me trilks, you say where is the growth going to be in the next two or through or four years and its certainly going to be with companies that bring you out of the environment thats kind of sticky the way amazon and facebook do. They take data, big data, put it if the cloud, and is able to process that data and capitalize on it and ones ha use Artificial Intelligence. So the metric are not just financial metric or the normal, you know, trailing earningstype metric. I think the metric are what are you going to see these companies innovating and doing in the future. It feels like theyre operating totally away from washington, d. C. And everything going on right now, walter. But we are expecting the president to acknowledge a Technology Council potentially as soon as this week to be meeting with jared kushner, President Trump, you know the drill. I wonder where the relationship is going to go, whether it will be friendly, whether theyll Start Talking about certain specific policies and making recommendations to President Trump. What are you hearing about all that . I hate to say it, but its been pretty irrelevant. Ive sat on some of these councils before. Nice talking around the roosevelt room. I dont see any major president ial policies. I think the type of policies youre seeing that are big are things like the ending of net neutrality. Ive been somewhat surprised that there hasnt been the internet revolt the way there was other times when you fiddled with things like that. So those are big policies, but i dont think those are going to be settled in a Tech Council Meeting over the next few weeks. The president tweeted this morning we have a massive trade deficit with germany. Very bad for u. S. This will change. This follows germanys merkels comment over the weekend saying the time for depending on allies is over. Are we looking at a new period where leadership is not necessarily the overriding dynamic . Yes. And thats bad and thats bad for the u. S. We dont do these things as a favor to nato and the favor to germany. We do these things, such as trying to have a strong and free and secure europe connected to the United States because its been in our national interest. I think this will end up connect to the russia probe. For 70 years, one of the major drives and ambitions of Russian Foreign policy was to separate the United States from europe and to separate the United States from germany. Trump just did that for no real reason. For people to say, why is he doing what russia has been trying to have happen for the past decade. In practice, walter, what do you think it might mean for germany and the rest of the european states to go their own way . Is it a matter of difference of tilt or emphasis . How might it actually impact things in the real world . You saw Angela Merkel meeting with Prime Minister modi of india today. Theyre going to maybe expand trade relationships certainly with india, maybe with china, and youre going to see the benefit of a trade relationship, open relationship like that that the u. S. Might be sacrificing if we cut down on our trade partnership and our relationship with europe. I think the question of nato defense spending, there may be a Silver Lining here. Some countries will have to step up and do more defense spending but the fact that nato and the u. S. Will not be alied is a may vor blow to the United States and a major success for russia. So, walter, just to be clear, you see this as more than just hot air, heated rhetoric between german chancellor and President Trump . You see this moving into actions and general policy changes and changes in International Relations . Well, i fear it is because over the last couple of months i kept being hopeful that it was just hot air, maybe it was tweeting or whatever it may be, but when this is repeated over and over again and the badly unsuccessful summit in brussels, you may see its not just rhetoric. It has substance and its a real problem. You saw the centrist movement that came up in france and other places. You see europe might be leading the world out of this nationalism and tribalism that has been so hurtful over the past five, six, seven years. What a turn that would be after the dutch vote, brexit, and every egg thing weve been through the last couple of years, walter. Trying to be optimistic. Thanks. When we come back, theyre closing this morning. First datas ceo will join us in an interview. Why the cloud could be a factor that pushes those stocks each higher. Later on the ceo over snapchat. Squawk alley returns in a moment. Some deal news today. One of worlds biggest Data Processing company, first data, agreed to buy cardconnect for 750 million. Here to discuss it with us is ceo frank bisignano. Welcome back. Thanks for having me. How much bigger does this make buying one of your competitors . When you look at our scope and size, were very large. Is, you know, a partner of ours actually. Theyve been a client of ours since 07. They have a lot of innovative tools. Theyre very good at technology company. And their tools, theyre in the large e Partner Management business and were the largest Partner Management and were using their tools for our clients. Going back to the past, what does it do to the Balance Sheet and does it make it harder to do leverage . We remain with the targets we set out to, delevering. Weve used cash consistently to delever. We had over a billion paydown in cash debt. Since we got here in 2014 2013, wreve taken it down by 11 . Were very committed to go down going forward. When you look at the markets in Payment Companies built up between you guys, obviously v a visa, mass tr card all the way down to paypal and square, whats actually going on that the market thinks its going to create a lot of value with that kind of tier in terms of transaction process . Youre moving away from Payment Processing which is a very core fundamental technical talent to value added services. If you look at what weve done with the front of the store and what our competitors have done, wills a lot of market share opportunity and organic growth in bringing technology to business and i think thats why people are so committed to the growth in these industries. We cant have you here and not ask about crypto currency or at least bitcoin this month. Are you threatened by sort of the increase in valuation over the past, say, 30 days . I want to take a 30day valuation and consider it paranoia. I think weve always looked at enabling commerce. Weve also spent time watching where unovation occurs and were prepared to invest in innovation and weve done that in a bunch of ways. Our job when they have real traction, we will enable it. And we have things that enable bitcoin and were very proud of that. Your stock has gone up in the face of retail bankruptcies and store closures. How does the retail slump affect you because isnt that a majority of your clients . Well, this is a company that covers Financial Institutions very well. We have 4,000 Financial Institutions. We have a very, very large credit card processing business on the back end for the great brands around the country and around the world. And then were a big ecommerce center. We want to help. Theres news that fico scores are back up. Average score is 700. Are you seeing that kind of consumer regaining health post crisis . I think theres Consumer Confidence out there. We see growth in credit card spending. We see growth in credit card spending, but i think you can feel that consumers are getting their legs in way they hadnt a few years ago. Finally you mention ecommerce. When you look at categories that are poised to reach a Critical Mass of ecommerce, what are you looking at . We talk about furniture with regard to amazon, home goods, building materials. We dont know where the next big Tipping Point is going to come . I think you have to think about, you know, physical any commerce. Theyre much better in a lot of cases when they come together. Our job is to enable all of it. But, you know, youre seeing smaller retailers in this town even, you know, now having order ahead applications, the ability on your phone. Thats our ability. To make business easier. We think our job is to help businesses grow their businesses and that will be a Technology Revolution coming in there. Frank, thanks for joining us. Frank bisignano, ceo of first data. Quick programming note, fast money talks to leon cooperman. Thats coming up at noon eastern. Squawk alley is coming right back. Global markets reacts as President Trump is back this the u. S. After his first foreign trip. Michael gape and kevin kerr ron join us. Thanks, guy, for being with us. Michael, maybe we can start with you to kind of set up where do you think we are in terms of the economic path with some of the fresh data this morning filtered in. Maybe it looks like the hard data so to speak is kind of coming down to meet rather than go up to meet the soft data of the survey work and Consumer Confidence coming off. On the other hand, wage and salary is up. Where do you think we are in terms of growth tracking . The way i would interpret the personal spending this morning and this including the revisions we saw on the gp data last week, in my view there was a very clear influxion point between the january and february data and the march and april. Were actually track 3g growth for personal consumption in the First Quarter. That twould be a fairly solid rebound off the First Quarter. More and more we think it is. Question think personal spending long with auto data should keep us on track for a rebound in the second quarter. It may not be the 3 1 2 to 4. 3 still seems reasonable. We think it may move a little higher toward 2 1 2. All right. Kevin, markets are treating this as even if we get to above 3 in the second quarter, maybe its going to be a familiar pattern. Bond yields not getting any lift and defensive groups are leading the way wito a new high. How do you position all that going on . I think you look at the data. What we receive is an earnings profile in the last months or so. Think overall and even beyond the earnings, all of the data we look at, whether its fundamental data on the economy or risk or an tight, we look pretty good. Were overweight. Underweight gold and i thinks the way to play it for now until we start to see something. Kevin, does that just mean you ignore what the yield curb is telling us is. The yield curve isnt telling us very much. It aesz much steeper than it was at brexit. We havent gone toward the upside. I think its not telling you very much. Of course, there are lots of different data points. We take a whole bunch of them. Weigh them all together and try to figure which way the wind is blowing and our barometer is telling us at least for now things look relatively good that its hard, michael, to tune out some of the political noise and try to feg out just what it means. What has your data shown you in terms of consumer sentiment, behavior, consumer spending, in terms of what we get from washington and what we dont get from washington and what the headlines tell us. At least from the fundamental data side, we say its way too early to see it make its way into actual spending decisions today. Our view is you really need to cease those policies put in place before you see the actual data pick up. The sentiment data, i think youre right. This boost has picked up. Its come back down a little bit. Perhaps theyre meeting somewhere in between. And really our main takeaway from all the noise that is coming out of the political realm is to say whatever tax cut or spending is coming, every day spent on crisis pushing it out. It may shrink the overall package so it will diminish the overall im of that which we think doesnt hit until 2018 anyway. It seems the way the markets are going as well. Thanks very much. Thank you. Europes going to close in about 90 seconds. Lets get back to seema mody. Its their fourth consecutive decline. Really at the heart of it is between United States and germany. Trumps tweet this morning highlighting the massive trade debt with jaefrmt it comes as they host a National Summit in china where theyll they to showcase their potential bond. Something to keep an eye on. In the meantime, the election risk back on the table, this after the former Prime Minister says italian elections should be moved up to september 2017. Its the same time as germany. Now supporting a switch back to a proportion at electoral risk. Meantime take a look at those italian banks under pressure yet. You need credit down 1 . And ub bank almost down 1 . The European Central bank and policy makers will need to move that