About six points and the dow futures are down by 43. Overnight in area, the nikkei was down by 1. 6 the lesser gains for the hang seng and the shanghai composite which finished almost flat. If you want to take a look at early trading in european markets, across the board, you see some red arrows. The dax in germany down by. 7 . 75 decline for the cac in france and the ftse is down by 1. 3 . Take a look at crude oil ahead of tomorrows opec meeting. Oil was up 20r9 month, but you can see the wti this morning is down by 1. 5 to 48. 36. ] p e much more on that opec meeting in just a moment. Here are the big stories we are watching today. In corporate news, softbank selling at least 7. 9 billion in shares of alibaba. Softbank is softbanks largest shareholder. Its staples dropped now from 30 to 28 . Shari redstone says she has no interest in managing viacom. Red deny stone says on todays economic agenda, april Construction Spending out at 10 00 a. M. Eastern time as followed by the feds beige book at oclock p. M. The big automakers report there may Sales Numbers throughout the morning and afternoon. As for earnings, look for results from michael kors, lands end, and box after the close. The latest baby born in the United States with a mom suffering from zika virus. The babys mother contracted the virus in another country she was visiting the u. S. , but the baby was born with microcephally, or with an abnormally small head and brain. Officials are monitoring 300 women who were exposed to zika. Her mother is a mic they knew she had been exposed early on to zika. Even before the tests. Totally shifting gears, tells sa ceo elon musk do they even have gears in those cars . Probably not. You like the way they look. Im going to like the way they look. I like the way i look. I guarantee you, mens wearhouse, it might be coming back. Owners of teslas model three will not receive free unlimited access to the super charge network of charging stati stations. Oh, ghee. Unless they purchase a specific package. Can you really pull in there and say fill me up . Its been an amazing boom for anyone who has these cars. Newer not paying for gas or energy. You step in and go whew from wind or something. Ive been waiting to see when they would start charging for this. You have to have something. And somebody is paying for the power, by the way. Companys annual Shareholder Meeting to drive Long Distance with the model three. It appears to be the first time tesla has exclusively stated that the access will not be free for life. Theres no free lunches, we know that. Some businesses have free lurches, and politicians, i think. Thats not good, though. What do you mean . Its the american way. There are free lunches. Of course, theres some companies here that thats right. It comes without strings. Amazons ceo jeff bay zoen zoes spe bezos, here is what he said about some of the outside projects amazon is working on. Well see, will they turn into big trees . And Amazon Studios. I think Amazon Studios could turn into a its possible. What were doing with alexa and echo and natural language understanding. That involves into an artificially intelligent agent. I think there are going to be a bunch of artificially intelligent agents in the world. A bit like apps and is websites. And the same ai for everything. Some ais may be better at certain things than others. So you might i bet the average household will use a number of these. But i am being very sincere that those two seem very promising to me. Much more from the conference and key note speaker jeff bezos throughout the morning. I feel like well, you know, youre talking or reading or sleeping. That did happen a few times. It wasnt you. No, it wasnt me. Watching oil prices this morning, opec ministers are meeting in vienna. A few headlines coming from already, the uae guy, the oil minister, says crude is already correcting upwards. Meantime, reuters is reporting that the Venezuela Oil minister says we have a de facto freeze as global output is steady. We have results from krns oil survey. Is that the bug strip . I probably wants to stay there. Id want to stay there, too. They havetornados and all kinds of things there. Good morning. Just a day away from the highly anticipated opec meeting, and we pulled analysts, traders, to see what theyre expecting. The question, of course, to freeze or not treez . Most respondents think theres a 0 to 10 chance of a freeze. Remember, inaction from opec could have a big impact on the market. Just yesterday, the uae minister said he was happy with Market Conditions and that turns oil negative. Now, remember, the doha producer meeting in april, the issue there was a standoff. They couldnt agree and almost everybody we pulled thinks thats going to be the issue thlt. Much of the year, the crude price has been driven by oversupply or theyre adding others in here that they think politics will be the second biggest thing that move oil prices this year. And it proves to us that oim prices still matter. The demand has been key and thats been part of the rally that weve been seeing. At this point, we see a little bit of a demand in the pick up, but it is seasonal for summer driving. What i thought was most interesting about our survey was while many people believe the summer driving rally is going to end around july 4th and prices will temper a bit, more than 50 of our respondents feel wti is going to close the year right where we are now between 40 and 50 a barrel. Id say it will be around 75, 85, whether its 70. Well see a range between 65 and 75. There were big changes on the street, but our poll hit this had the last couple of times that we did it in terms of where they thought prices would be. We would hit the range exactly just right. So i think we have a good barometer. Not a Single Person in the world for oil at 27. Goldman was calling for the 20s. For more on the opec meeting, the only really good analyst around, tamar is with the director of the energy team in Corporate Solutions at nasdaq. And ill tell you something, tamar, ive seen that people think gold is acting like it acted the last time the fed was going hike rates. So it can affect gold, it can affect oil. You think gold is hard to get bullish on this as long as the fed might be leaning intiet, but the fed might be leaning into it for a good reason, which i would think would make demand better for oil. Its hard to figure out how the to weigh those factors, which is more important. Good morning. Thanks for having me. I think that there are were in this over a correction phase and the supply demand rebalancing process. So were in a inbetween moment. Overcorrection and coming back with 50 orr overcorrection and getting down from where it was . Sort of correction is on the way back up. The correction from the oil prices. I think we were in that we went too far . In the sense that were in this correction of the oversupply situation for the supply demand process and were correcting higher from there. But there are a lot of factors that are positive and a lot of factors that are negative and its difficult for the market to know which one to focus on without an external incident such as the fed setting direction for the u. S. Dollar. I think that the fed is much more important right now than opec is. Really . Absolutely. Thats pretty amazing. The fed all the sudden got hawkish, even for maybe june and at the latest july, they got hawkish because of economic data, which would support demand globally for oil, right . Right. But that should pressure oil in the sense that if the dollar is stronger, what weve seen in the past couple of weeks is that this rally has been driven by strength rather than in deferred prices. So it really shows that this is the era of speculative trading, traders, hedge funds, these are not commercial users driving Oil Prices Higher right now. So i think that the dollar will be an important determinant in terms of whether funds go, which will set the trajectory of oil prices, at least over the next six months. Is the price back to a point where marginal suppliers will start drilling again, start opening up closed thats what got us a lot of people got out at 30, right . They shut things down at 30. Are they coming back in at 50 or are they still shut down . Thats the big wild card in the u. S. We saw this last year in the spring. That was a rally that was too far too fast and it was selfdefeating because production came back online. In the u. S. Right now, its a little bit of an unknown. Most of these emp Companies Set their budgets in january and february of this year when oil prices were at that 27 level. So if they were forecasting 40 and were now at 50, the question is is that enough of an upside to trigger more drilling to coming back online because its higher than what they had been forecasting. Yeah. And thats really the wild card right now. I think a lot of shale producers are cautious about it. Many of the analysts we polled said they dont expect to see a repeat of what we saw last year. June. They do expect it to be a little bit more steady. And that brengs us back to the opec meeting, which is why would the saudis, why would any of the opec members want to do anything . With oil at 59, a much better position than they were when oil prices were at 26. So if they feel like this market is stabilizing in its bottom, then theyre in good shape if they move forward. So by the enof the year, what are you saying . 50 . Maybe a couple of dollars higher from here. Its going to be choppy. A couple dollars high, couple dollars lower . It will be a choppy market. Not going back to 30 . I dont think so. And we wont hit 60 . Not this year. And i think even in the next two years were sort of tapped out at 70. All right. Thank you. Thanks for having me. Thank you. Thank you. Coming up, the dow and the s p extending monthly winning streaks, but the nasdaq standing out with its fifth straight month of gains. Were going to talk Market Strategy and the expectations for a rate hike. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Welcome back, everybody. June is often described pass best month for stocks. But this year it could be more interesting. Joining us now, justin tyler and right here on set with us is sarat seppi. Hes a cnbc contributor and serat, you think that a fed hike is coming, but not until after the brexit decision is made . I do. You saw the data yesterday. It showed they might actually vote to leave. Exactly. All the data beforehahn was pointing more and more that they were going to stay. All of a sudden, you add uncertain ty to the pie, i thin the fed is going to wait. Theres no reason for them to go right now. Even if the data comes out stronger than it is, the uncertainty out there, oil prices, election, lets just wait for brexit and potentially have a shortterm you think theyre definitely leaning towards hiking rates, though . I do. All the signals and all the talk of the governors and fed officials said, look, things are point to go that direction. Were not going to keep rates this low, especially the economy. If employment and is wages, all the data is showing we are getting underlying growth or inflation. Michael, you agree with sarats assessment of this, in fe raise rates in july, what do you think the Market Reaction is . I agree. I think july is the most likely time and well probably see one more hike later this year, as well. I think the markets are prepared to accept that. And you see that the futures markets are predicting that Something Like 58 , 60 probability of a hike. Bond markets and stock markets are feeling comfortable right now about that. So i think that there might be a little ripple, but it shouldnt have a big impact at this point and it is needed. You know, it does seem like the markets reacting rather calmly, but i wonder what happens as we get into the summer months. People may have been anticipating all of these issues, but youre always doing what that sell in may and go away strategy. If youre dealing with markets that are a little less liquid than they had been, does that leave more room for volatility . I dont know. Theres also the summer rallies. I think the more challenging issue is whats going to surprise people. I think one of the worst fears is inflation. Which we havent talked about in years. Core inflation is running at 2 and has been for a few months. Thats so far not been a problem, but if wages continue to pick up, if unemployment ticks down yet again, so a lot will ride on whats going to happen in the jobs machine coming out friday and, again, next months jobs number. If we start seeing that on top of the price increases we saw yesterday on top of several other areas, it could mean inflation starting to come back. But if inflation is starting to come back, are you suggesting that would spook the market . If were ready for a fed rate hike, it must be that were ready to start this seeing things like inflation, too, right . At a moderate level, yes. I think surprises could happen. Im not saying they will, but they could happen. If they do, its more likely to be a higher inflation surprise than a lore inflation surprise. And that could spook the markets temporarily. Pl plus, the market is pretty close to its alltime high. Theres room for it to give up more. What sectors do you like right now, if youre looking at the markets calmly accept ago potential rate hike and probably just one, we probably wont see more in the immediate future. I think one of the things that you can see is potentially if rates move up, you might get this trade where consumer staples, telecom utah utilities, you can see see a rotation of that into more industrial cyclicals. Growth year stocks that do well when you have pricing pressure as opposed to people who are hiding out because they couldnt do anything in bonds. That is what you might see turn the market you said down. But within that, you could see opportunities for investment. Financial ves come alive. And that rotation is already happening. But you havent seen money coming out of staples yet and utilities, which i think could spook the markets and give more of a volatility in the long run. Would that happen even if its a one and done rate hike and we dont see anything else since like december . Well, markets sometimes try and move ahead of whats going to happen in december. And if december is one and maybe next year, what this could add and all of a sudden people move to cash especially in the summer months when theres less trading going on. Waiting for an opportunity . Waiting for an opportunity. And they say hey, we made a lot of money in these sectors. I think thats where the potential opportunity is or where you could lose some money. Are we going to start worry background china again . The daddy overnight was not good. Sort of a reminder of what has been a train wreck over there. We sort of took our eye off the ball for a little bit because we moved away from the thought wirnl going to have a recession. But now is that going to be front and center again . If the dollar gets stronger again and you see that currency start to devalue, theyre going to actually start feeling the effects of all this. And i think that globally is going to affect them. When oil was down to 25, 30, oil being back at 50, thats one of the impact of Commodity Prices going up, as well. Something to watch to see what the chinese are going to to do, especially as we start raising rates. If our currency gets strong we shall that, as you know, last august caused a massive reglobalization of the markets, as well. Michael, go ahead. When you think about it, the continuing impact of negative rates overseas, especially in europe and japan. Because with that happening there and the federationing here, you do run the potential of the dollar getting so strong or the yield curve flattening out as long rates are driven by currency exchange. That could start scaring markets, as well. Theres concern there. So watch for the currency markets, watch for inflation. Michael, thank you for joining us today and serat, thanks again. Coming up, the Worlds Largest d. C. Firm managed by millennials getting a fresh round of funding. The founder of room ewe husband capital. Plus, millennial stereotypes in the workplace. Welcome back to squawk box. U. S. Equity futures at this hour, down 55 points on the dow, managed to eek out a 1 gain in may to keep the street going. The s p is indicated down seven, the nasdaq indicated down just under actually, just over 11 points. Jeff bezos speaking last night at the code conference out in california. Here is what he said when asked about the legal battle between gawker and hulk hogan. My view on this and i dont know the details of this particular situation. I dont think i really need to because im thinking i want to take it up a level and talk about some of the principals that i think would in my mind would apply here. And look, you happen, i can take this from a couple of directions, but you know the old saying that sometimes you know, i think its attributed to confushus. He knows if its reconfuse yush or not. Seek revenge and one for yourself. As a public figure, the best defense against and, again, im not trying to get into any particular story. This is not about peter or gawker or any principal thing. But the best defense to speech that you dont like about yourself as a public figure is to develop a thick skin. Its really the only effective defense. Because we cant stop it. If youre doing anything interesting in the world, youre going to have critics. The only way if you absolutely cant tolerate critics, then dont do anything new or interesting. This country has the best free spooeb speech protection from the world because of the constitution, but also because of our cultural knowledge. And you dont want to erode those. You dont want to create any kind of climate of fear or chill with respect to free speech norm. And the most important thing to remember about that is that beautiful speech doesnt need protection. Its ugly speech that needs protection. Well have much more from the conference and key note speaker jeff bezos through wrought the morning. Right now, its time for todays executive edge. New rounds of funding making it the largest d. C. Firm managed by millennials. Romulus, joining us right now is chris negusta, founder and managing partner of roam ewe husband capital. Thanks for being here today. Thanks for having me. You were looki