Crude oil prices also, which yesterday ended relatively flat. Prices have picked up slightly to 48. 25 for p ti. Brent crude up as well. Existing home sales come out at 10 00 eastern time. Expected to have a risen but at a much slower pace than march. As for earnings look for campbells soup, deere, foot locker and the buckle. Its stubhub. They got pay you 500 oh okay, how much . Oh pay me a thousand o go. Kind of a negative Interest Rate thing where they actually pay you do come. Its ban busy week on the retail front. The latest name to report. Gap. The retailer posted earnings in line with previous guidance but it is giving a cautious outlook for the rest of the year. Warning it needs trends in the Apparel Retail environment if it going to hit wall streets earnings target. Amid that slump gap plans to close all Old Navy Stores in japan. Also some banana republics, mostly outside of north america and lit do that by the end of the business year. Following the latest reports s p downgrade the stock to junk. Fitch did last week. And located debris and passenger belongings from that missing egypt air flight. Hadley gamble joins us now from paris. The Egyptian Navy says they are absolutely sure that part of the fuselage and some belongs to passengers does belong to egypt air flight 804. The Egyptian Military had taken full control over the search and rescue and they are continuing to comb the area searching for more. We also understand at least three french investigators are on the ground in cairo, including a technical expert are all there to take part in this investigation getting under way into what caused this plane to plummet from sky just 20 minutes before landing. A lot of question this is morning as well as to whether or not the planes previous destinations had any impact on the security of the aircraft. What we know is that the a320 was in several cities before it took off from Charles De Gaulle. So some Big Questions about that. And also of course whether or not this was a terror related incident. Weve heard more suggestions from egyptian authorities that this was in fact a terror related incident and the question of course why havent we heard more chatter among groups like Islamic State, and al qaeda as to that. So were going to continue to monitor this from paris. Hadley thank you. For more army colonel jack jaco jacobs. I dont know how question get the most out of talking about it because until we find out the block box and everything it is all just speculation. I guess to me wow its a lot of places where the aircraft had been. If you do have a way of getting on board, could you have put something there that doesnt do anything for five, six, eight hours and suddenly just detonates oop timer . Yeah you can do that. And i think it is right to focus on not necessarily the passengers. There are varying degrees of security taking care of passengers to make sure that they are not bad guys. But there is less focus actually on the people on the ground to do things like bring equipment on, caterers and maintenance people and on so. As a matter of fact Charles De Gaulle just recently i think got rid of several scores of people who were on the ground who they suspected of being terrorists. And yes you can put something on board that eventually blows up. It can be on a timer. Or it can be on a relatively sophisticated by easy think to do whereby it responds to the trigger responds to altitude changes and blows up on the third time it all that stuff is doable. So it could have been planted anywhere. I think that plane was yeah. It was in all these places. Think of how hard that was to pull off 911. Years of pilot lessons and then you think of this shoe bomb this is like why didnt they figure this out long ago or why didnt we think about this long ago. This is the easiest way to do it. You have people with carts going in and out of airports all the time. Right out on the runway. Literally thousands of people that have access to the hold of that plane. This seems like a nightmare for us to try to im standing in line for tsa behind some old lady who shows their idaho card which they then scan and while that is happening somebody flashes a card and walks right through whos an employee, not just an employee of the airport. Frequently they are employees of concessionair es. Who knows who these people are. And if you think it is tough in the its or relatively easy in the United States for people to get through and paris and tunis and cairo yeah it is something of a nightmare. What is the cost to to that solution . There are a couple things you have to do if you really want the kind of security that will make us much more comfortable. And by the way it has to happen everywhere. Not just in the United States. You shouldnt be able if you really want to be serious about this. You cant just pull up to the irpt. You have to pull up to another facility that costs billions of dollars to do. Like they have in cairo. Very far from the facility itself. That is where your pags are checked. Xrayed and taken apart. And after youre cleared you then go on buses that have also been xrayed and go all the way to the terminal. You shouldnt be able to go right up to the terminal. Everybody who works in the place has to go through, you know, a special background investigation. And that includes concessions. You are talking about about stuff that would make it inefficient to take a flight that is less than a 15 hour drive. And nobody is going to pay the bill for that. The airlines is not going permit a surcharge on the ticket because that will put tickets way out of the economic reach of most of the people who fly. I remember years ago i was at Bankers Trust in london and i flew everybody where. None of the people on the planes i flew were civilians. Everybody was a businessman. Today everybody flies. Not just in europe but certainly in the United States because Airline Tickets are relatively cheap. You would have to restrict the people who fly. The airlines are not going put up with it. Governments wont pay for it. So were going to find more clever ways of trying to determine whos a bad guy. And in the United States were not going to do it because we dont want to profile people. They do in other countries but they wont here. The clever perhaps more efficient way or cheaper way you think ultimately the only ral way to do it is through profiling. Number of things. Profiling is one of them. I remember in israel once on business a few years ago and you get grilled. But the cost of that is big and there is only one real airport they are doing that at. That is correct. But they got do that. You have to be able to submit yourself to an xray. You have to have these intrusive ways of determining whether or not you are carrying anything. And every person who works on the flight line has to be subject to this stuff too. All this costs money, slows everything down and makes Airline Travel grossly inefficient. So theres got to be some tradeoff. Until we find some genuinely efficient likely electronic meanmea means of determining whos carrying something bad and who isnt, who is a bad guy and who isnt. Were not as good as dogs even. I was just thinking god we need a lot more dogs. Thats the other thing. When was the last time you saw when was the lams last time you got sniffed down by dogs in the tsa line. Two of them are german shepherds, and the most incredible animals in the world. A lot more dogs are necessary too but you cant have a dog inspect the hold of every airline. Why dont have a stupid electronic machine thats as good as the dog . Or do we. Theyre working on it. But all the cargo has to be xrayed. All the cargo can be sniffed down but they are not. We got to go somewhere. Anyway, thank you. Okay. Yep. U. S. Equity futures indicating a higher open on wall street this morning. Joining us now with where the marks are headed. Does anybody really know . And lou breem. Can grow a little lou breem for me. Lou wheres mary . Mary slaughter. Go ahead. Sitting here next to me. Excellent. Do you actually think you know where the market is headed . I have a crystal ball. Lets look into it. Here is what we know. With Interest Rates this low you only need a little bit of Earnings Growth to support a high multiple in the market. The problem is we are in the earnings recession. So weve had negative Earnings Growth on the s p 500 and it is not just energy it is across the board. You see a little growth in consumer and healthcare but across the board very low earnings. So the secret here is you dont need a lot of earnings but you have to show up with some. So the companies that are going to show up with it are going to differentiate. Walmart and target. Walmart up 10 . Target down almost 10. And now were back to the whole actively managed thing which also hasnt been working very well for anybody either. The problem with the stock market in the last year and a half is that it hasnt been able to sustain any kind of gains since the fed stopped expanding their balance sheet. The last qe was in Second Quarter of 2015. Weve been a little over that but really have never sustained any of those gains. The last time the weekly close but over 2100 i think was last july and the markets proved vulnerable in between. Not like weve fallen but the markets been vulnerable couple of times. Sharp selloffs. Maybe were more vulnerable to china when the fed is not there or maybe more vulnerable to the fed itself and i think that is the next question. Can a stock market rally and a fed rate hike cycle coexist at this time. So far we havent been able to do that and i think it is a real question. What do you think the answer is . When june comes around lets say well first of all do you think there will be a raise . And what does it do to the market . The fed certainly intends to raise. I dont know it will be june. My opinion i would wait out brexit and then if they really felt that boy june was the time and we really should act then we have a chance to reset the table in july a couple of weeks later. I would assume well be able to sustain. The Economic Growth has been so sluggish for so long i like to look at the nominal dwpd gdp year on year in the last naive years and that last five years period is worst weve had. So that sluggish growth and maybe the fed action kept us from falling further but there is research that says that the fed low rates and whether the fed has done has discouraged the real Economic Growth, the capital expenditure. And if we dont get the economy growing in a more Sustainable Way than the s p or the stock market in general is more vulnerable. Rates will be low enough to support the stock prices of companies that do show up with earnings. What weve seen this year is companies that have delivered Earnings Growth showed up with over 2 Earnings Growth in this earnings season bucked the trend. Those stocks have been far and few between. Not many of them and then you put everybody else out of business twret pretty quick. It is a fairly elite growth. You have about 50, 60 names in the s p 500 but on average they have shown one growth and they are a little expensive but not much compared to the market and their history. And again rates will be low enough. Remember the earnings impact of the Energy Sector is diminishing and it is simply a factor of math. The earnings impact dragging down the s p 500 overall because e diseaseit is a melting ice c. If they drop 50 again they will only have half the impact and oil prices up to 50 so you might have a lift on the broad market but certainly the companies that show up with the earnings will be differentiated. Jim stewart had a column i saw this. There is a fundamental flaw in it. Buffett make the investment. Take that piece out. I completely agree with you. Explain jim stewart talk about the idea that apple giving berkshire. He said Warren Buffetts involved. Buffett didnt make the investment it was todd or ted. Ite way does it make it a value stock . That is the question. It is kind of not tech. It is kind of a sad commentary. Sad commentary. Buffett did miss every big tech stock. He didnt get on any of them early. Does it raise the question of apple being a value stock as opposed to a growth stock. Buffett hasnt been limited to classic value stocks in decades. It is a question of garp as much of anything has been his strategy so i dont think this tells us that much new about a stock like apple. But is it at a discount to its potential Earnings Growth rate, sure . Guys got to wrap it up. All right. We are going to talk about mickelson. And i dont know what to think of that. They are using the word putts. They are not spelling it putz. But it is the same meaning. So ive stopped using any yiddish term because i dont want to out of respect. Out of respect. But apparently the post has no such respect. You know phil is a piece of work though. The reason he had to take the tip is because he owed this guy money on his other gambling. Stock market is perfect for him. Let me show you how to work some options phil in commodity futures. Squawk box coming right back. Welcome back. Welcome back to squawk box. If you are making plans to travel on memorial day on that weekend. Your best bet is to find a way to get an early start. Aaa is predicting a giant jump in the number of people traveling over the holiday weekend. Estimated 40 million americans are planning a road trip due to low gas prices. The highest number in a decade. And traveling by air probably wont be much better if you were watching this week at ohare. Domestic flights are 26 cheaper than a year ago. That is contributing to expectations that this summer will be the busiest ever for air travel. That means long lines at tsa. So pick your poison. We complain when the economy is down and cant travel and we just like to complain. Im driving. Driving down. Its like 12 hours. Do you know how many trucks that is . I know. I dont think hes coming over. And then hes like time you get to spend with kids in the car. I have two 12 hour trips in the car this summer too. Oh he knows what hes doing. Hes a professional truck driver. I know hes got 16 or 18 or however many. And i know if it fish knives you will get smashed like he an but hes an professional. I try and stay in the car lanes, when you have. You and your nervous lines. There are no trucks up there. There is nothing up there. I know. There are just a couple of birds on takeoff you have to avoid. Drones. I get nervous when there is a little bit of construction and they have those, the barriers that are very narrow. The shoulder. And you are passing and truck. And hes like, you know, looking over at something oh i got a text and hes coming over a little. The drift is brutal. 11 hours of i thought i had a messed up mind but the more i listen to you two. It is exhausting but we can share. Like a therapy session. Im ready for it snow. When jeeves is driving it is a lot easier. It is. Oh he know what is hes doing. I like driving myself. I like being in control. Sort of. Oh shut up. All right. Talk about a office perk, a North Carolina company is planning award each of its employees with a tesla model 3 once its release. Its called petra i will check it out. They do scientific parts. I this company may grow very fast and are going to get thousands of applicants from this. We talked about this on Worldwide Exchange earlier. The cynical part of this is you may never have to pay off. Or they may grow very slowly because the cars will be available a little later. And Kentucky Derby winner nyquist will attempt to claim the second race tomorrow in the preakness stakes. Nyquist starts post position 3. Two of his toughest competitors will be nearby. Exaggerator is at post 5 and awesome speed starts in 4th position. Morning line favorite at three to five odds. Awesome speed. Someone came up with that. Thats good. I thought they had all been used for horses. Horses have very weird names now but awesome speed, i get that. Thats one you want to watch dont you think if its called awesome speed. Wouldnt that be a not feeling it. Awesome speed. If you could name your horse what would you i dont know. I dont know. Ive never owned a horse. I named my dog gunther. We have an executive, a gambler and a golfer caught up in Insider Trading. All the details next. And later retailer gap off to a rough start to the year. The stock down 42 in the last three months. As we head to break take a look at yesterdays s p 500 winners and losers. [phone buzzing] [engine revving] [engine revving] [phone buzzing] some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. This is the pursuit of perfection. Hey kevin. Hey, fancy seeing you here. Uh, i live right over there actually. Youve been to my place. No, i wasnt. Oh look, you dropped something. Its your resume with a 20 dollar bill taped to it. Thats weird. You want to work for ge too. Hahaha, what . Well were always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. Why dont you check your new watch and tell me what time i should be there. Oh, i dont hire people. Im a developer. Im gonna need monday off. Again, not my call. You wouldnt take medicine without checking the side effects. Hey honey. Huh. The good news is my hypertension is gone. So why would you invest without checking brokercheck . Check your broker with brokercheck. Welcome back to squawk box on cnbc first in business worldwide. News just breaking this morning. You know yesterday they thought they found the debris. They did. The Egyptian Navy now has located debris from the missing airliner. Also passenger belongs. And they located it about 180 miles north of alexandria egypt. The countrys Defense Ministry says the wreckage will be brought to egypt for analysis. Well keep you updated. The executive edge now. Federal authorities announ