In asia, the nikkei closed up by 1 . Shanghai was down about 0. 4 . Hang seng was up by 0. 6 . In europe, some of the early trading right now, it looks like the dax is up by 0. 6 . The cac and the ftse are flat. If youve been watching the tenyear note. We fell below 2. 4 on the tenyear yield. This morning that yield is at 2. 38 4 off the lows of yesterday. If you look at crude oil prices, crude down 11 for the month. Its up 42 cents today, sitting just above 48 at 48. 16. President trump will be taking aim at former president Barack ObamasClimate Change policy by signing an executive order on Energy Independence today. The order will seek to curb the federal governments enforcement of climate regulations and focus on protecting american drives. The move expected to get legal and political pushback. The monthly s p 500 caseshiller home price index comes out at 9 00 a. M. At 10 00, march Consumer Confidence. Several fed officials speaking today, including janet yellen on Work Force Development this afternoon. Were also hearing from kansas fed president , esther george. Dallas fed president , bob kaplan, and fed governor jerome powell. And late yesterday dallas fed president kaplan said he would support further rate hikes if positive economic stimulus continues to progress, but said it should be gradual. Given what has been happening the past several days, i wonder if one of these could be off of the table, about you thought it would be four times this year. Programming node, y inming note has an interview with fed vice chairman Stanley Fischer at 1 30 p. M. On power lunch. Comcast is reportedly planning to rebrand and expand. Streaming video services. It would be priced between 15 and 40 a month and would have Major Networks and addon options. The company is testing in a few cities. A nationwide rollout could be available by the Third Quarter of this year. Comcast is the Parent Company of cnbc. Xfinity over the internet, so you dont have to wait for somebody to come in and put a cable box in . If you cant beat them, join them. Its not just cord cutters, but the never corders. This is what youre seeing directv doing with directv now and what at t is doing with directv now, and one reason they want to do the deal with time warner is because of this idea of everything over the top. Skinny bundle. This is not such a skinny bundle. My video needs and entertainment needs are im good right now. I want everything hooked up to my brain, though. Elon musk style . Yeah. If i can think about what i want to watch, it just any episode will come up. You know, i dont want to like voice commands are too much. Too much. Do you physically wanted to watch it or have it piped into your brain so you dont have to see anything. Instantly so i dont have to see anything. And not only that, nobody would realize youre not paying attention to them or listening to them, im actually watching a movie now. Will i still watch country for old men. I can enter any part of the movie, i turn it on and watch it. I like it. I can almost recite is now. Can i do that . Play it back in my mind . I think youre playing it back in your mind right now. I am right now thinking about tommy lee thats a good idea, too. What scene were you thinking about . No, no, no. They you know, i dent bring up porn, they brought up the porn music. Think if you get to you will never need to read the tell prompter anymore. Here we are in times square. Just squawk square never saying it again. You watch me, i will never say that again. I wont say squawk square, ill say here we are at the Nasdaq Market site. Some other stocks to watch today. Red hat reporting higher than expected revenue for the latest quarter. The forecast topping wall street estimates. Shares of tesara getting a bump after the fda approved its key drug for recurring ovarian cancer. The stock is up by 5. 8 . Red mountain is pushing Deckers Outdoor to explore a sale. Red mountain owns about 3. 3 of deckers outstanding shares. The investor says the stock has underperformed largely because of managements poor allocation decisions. Wow. 1 1. 8 billion company. Whats 3 . We should be activists. Whats 3 . Like 4. 4 what . 4 million. Is that it . Mmhmm. No, thats yeah. Its not 40 . 40 its hard. You need scientific notation to get all your decimal points. 40. Yes. Its 40 . Its not 4. Okay. We couldnt go that. Timer could. The dow posting its eighth day of losses. Joining us now is wealthy individual jurien timer. If you dont have money, we dont listen to you. Im selling you. Im channing you eling you a lee. Anastasia amarosa is here, too. The tenyear in light of what we heard from evans and what we will hear from fischer today, the tenyear is below 2. 40. Does that mean i cant believe it means four increases. Four increases for the year . Even three . Doesnt the tenyear need to play ball to justify the moves by the fed . The tenyear is exactly where it should be based on where the market expects the fed to do. Three more increases no two more for this year. If you line up the number of rate hikes priced into the market over the next two years, it is perfectly correlated with where the ten qulooyear is. 2. 4, the rate hikes are 3 or 4. Its not a flattening yield curve . The curve is flattened, but the tenyear at 2. 6 is where it should be. If the number of rate hikes goes up above four over the next two years, then the tenyear should go up as well. Does it have anything to do with inflation anymore . Is it just based on the Global Environment . It has to do with inflation, but also the global back drop. Two things will happen late their year. Its the ecb and their july meeting, theyll reevaluate are they still committed to the bond purchases, the answer may be no. Theyll start phasing that out. The second big undercurrent is that the fed will be talking continuously about stopping their reinvestment of bonds. To me, its those two things that could push the longterm yieldss higher. All the movement in the last couple of months has been in the real rate, not Inflation Expectations which is an interesting distinction. So weve got is this the pause that refreshes . Its been a tepid selloff which scares me more than a quick one. Based on what katie said yesterday. I think the market is more resilient than people think. They atrtribute everything to whether this piece of legislation is going through or not. Weve been in a global ink synchronized upturn for a year now. Were at the point where a peak reflation, if you will if you look at the isms, other High Frequency economic indicators, were transitioning from that stating up mode to a more choppy mode this is where the market hits a bit of a road block. The bull markets are intact and were transitioning from a fadz whe phase where it rises above trend to less than trend. Would use this pullback as a time to start buying . If investors have too much cash for where the market is or where their investment plans are, then you used pullbacks to invest. I would invest in nonu. S. Markets which have lagged 150 Percentage Points behind the u. S. Markets since the 09 bull market. Valuations are much lower. If i had too much cash as an investor i would deploy in overseas markets. Most u. S. Investors have a lot of u. S. Stocks and not enough foreign stocks. I think jurrien is right to say this is the time to be in the mar kelt. We thi were in the later stages of the business cycle. This is not the time you wabtd to s want to sit out. You say tax reform is important. It is important, but if you look at what is driving the market now, its not expectation of a tax reform. If you look at the earnings of the s p 500 companies, the revisions have come down. The market is okay. Did you not say this, material upside from here, tax reform needs to happen. Is that not you . Would be an additional catalyst, absolutely. At the same time the other big catalyst is the optimism feeding through from Consumer Confidence. Thats what one of the biggest reasons why the market is being supportive. Yes, agreed. At full valuations youre agreeing with yourself. Im just reading what you said. Im so confused. Hold on. At full employment, and full valuations, i do agree with you, jurrien, theres other places we should look for that material upside. Europe is one of those places. If Consumer Confidence is i was i know you. Retail. Jump ball. Consumer confidence. Amazon. Consumer confidence is the highest levels since 2004. What happened to retail . They cant give stuff away. Is it all amazon . It is all amazon. I will not comment on individual stocks, but its been a massive shift. Flip it around. Wasnt some of this Consumer Confidence a function of the election and the expectations about all of the things that were supposed to happen . That was a big part of it, yes. But its becoming a selffulfilling prophecy. You have a surge in Small Business optimism. You have a surge in Consumer Confidence, it is feeding into better date sa and leading companies to make those Business Decisions even ahead of the actual concrete actions. The reason why is we do have a notion that we will have a pro business disposition over the next four years. This is the kind of environment where you can start to make some of those decisions. Theresen befor been a lot o deregulation. You want to look at the trump agenda on market indicators, the russell after the election ran 20 Percentage Points in three weeks. Its been sideways since. Its been kind of underperforming the s p 500. The s p 500 is a vote against fiscal reform and small caps, the russell 2000 is a vote for it. Small u. S. Based companies are a pure play on tax cuts and deregulation. Than large multinationals are. Which tend to pay taxes. Yesterday was supposed to be the rout in the markets. The dow closed down 45. The nasdaq closed up 18. I said what happened . They were all up. Google, apple. The nasdaq is still up 8. 5 for this year. Look at yesterday. Netflix was up. Everything was up yesterday. Theres a lot of cash trapped on the sidelines. It wants to come in. Theres what . A lot of cash trapped on the sidelines. It wants to come in. Everybody wants that 10 correction to get in. Thats not how the market works. It will suck everyone in until its done. Theres not been a 10 correction. Theres barely been a 2. 5 pullback. If you look at europe, europe has been pulled back by pote potential outcome of the French Elections. If you dont believe thats the case, markets should appreciate that and flows should appreciate that as well. We think the pivot should be to european stocks. Take the uber down to philly. Youre in newark, there are places to sleep in that tranizatiotrain station. You will be there for a long time. The rain wont back up. It is not coming back to milton. Certainly not to penn station. No way. Youre too cheap to pray for the uber to philly. Bicycle. Bicycle might one of those city bikes. How far can you take those . You can take it. The question is can you get it back . You can take it where ever you want . Its on your credit card. After the show, can we all go on a citi bike . No. No. Its raining. Its rainy. In the summer. I have a stationary bike. You have a stationary bike. Fancy one. Fancy. Yeah. You just wait, wait until you see my body in six months. Why is that funny . Mental image slipped away. The guy on the steady cam, why is that funny . You you had a vision the visual image. Its a good segue to the earlier conversation. Yeah. The yeah. Thats right. Because im going to be porn ready, youre right, if i so choose. Wow. Thank you. Thank you for bringing it back to that level. You and john whats his face. Yeah. John goug ing to kate with eight oh, you say john, like someone from the 70s, you think of someone else. No, no, no. Im talking about John Gosselin who is now ready. We have more from the fallout of the gop healthcare bill. Trumps next big challenge, tack reform. Judd gregg will tell us whether we will get a bipartisan tax reform bill through congress or not. All that when squawk box returns in a moment. And this day in history. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. At where instead of payinging a befor middlemen,em. We work directly with family farms to deliver Higher Quality ingredients for less than you pay at the store. Get 30 off at blueapron. Com cook President Trump says tax reform is next on his agenda after House Republicans couldnt agree on a replacement plan for obamacare. But tax changes come with their own complications. Joining us with more is former New Hampshire senator and Senate BudgetCommittee Chair judd gregg. Senator, great to see you. Great to see you. What do you think after friday and the bill getting pulled. How does this mean the reasons are he republicans are heading into potential tax reform. Theres much less controversy within the party on tax reform. Everybody is for it, wants to pass a bill or should. I cant speak for the Freedom Caucus, but tax reform is the most important legislative action they can take. And this can be done. Ironically tax reform is a much more dont event under reconciliation than healthcare because policy issues under healthcare probably couldnt survive a reconciliation test in the senate. Whereas almost all tax reform policy affects the budget, and you can do a substantive tax bill in the senate under reconciliation if you have to. We had Grover Norquist on yesterday, he said by shooting healthcare done, thats a potential trillion dollars in savings that could be used on the tax plan. By that going away, you went from 20 tax to 28 tax. If you have the b. A. T. , border adjustment tax, thats another savings, but you dont think the border adjustment tax will pass, do you . I dont think it makes its way through the senate it may pass the house, but in the senate it would be a heavy lift. If you want a bipartisan bill it certainly wont passion. You can get to a tax rate around 25 without the border adjustment. You do it the oldfashioned way. You step on everybodys toes. Thats the only way to do tax reform. You cant believe anybody ouleau have to step on everybodys shows so everybody thinks theyre being treated fairly, nobody is being protected. Its just a trading game. You figure out how much you can reduce deductions and exemptions to get to the rate level you want to get to. On the corporate side, it should be 25 . On the individual side, if you can get back to the reagan number of 28, thats very, very good. When you say stepping on everybodys toes, youre talking about mortgage Interest Deduction, charities, what else . Are you including those . The individual side, the four big ones are mortgage deduction, interest charitable deduction, deduction of state and local taxes and Highend Health insurance programs. In those four accounts alone, you dont have to eliminate them, but you have to watratche them back significantly, you can get a huge amount of savings. Under the Simpson Bowles commission, which was a bipartisan tax, we reduced taxes annually and took rates way down the its doable. Its a question of political will. I do generally believe political will is there. Republicans understand tax reform. They understand reducing taxes. And theres not a big ideological split. The issue youll have if you get rid of some of those things thinking about the state and local taxes. You have states like new york, new jersey, connecticut that have ridiculously high tax truck sure structures and you have some states paying for states like new york who constantly raise their taxes. Its not on an even Playing Field. Why should people in New Hampshire be subsidizing people in new york stated. You are such a homer. When do you hes right, though. Florida, too. Judd, obamacare reform is not over. No. And youre a numbers guy. I dont know whether the Trump Administration hastens its demise or just lets things go. Lets not talk about whether they make it worse or if it goes on its own. But ive heard people say that as it gets worse, that the republicans should write a bill and not use reconciliation. They should write a bill that would actually fix it and when it gets to the senate and democrats vote it down and obamacare continues to not perform, that then its theyre going to own it more than they own it now. In stead of doing this fancy reconciliation thing, put everything you want to put into it. Tort reform, all this stuff in there, put it in there and make the democrats vote it down. Thats an interesting tactic and a viable one, but the more viable one is a group of senators i believe the senate still has some rational people in it on both sides of the aisle, sit down and where they think they can fix this thing. You may get a bipartisan agreement that is not a marnlg bill, doesnt rewrite the whole law but does substantive things in the area of insurance reform and tort reform and tax policy. Have it be bipartisan. Thats a distinct possibility. Senator, can we have getting through the house would be tough. I dont think so. There would be democrats in the house, it would be like a boehner thing. The Freedom Caucus wont go for fixing you wont get anybody in the Freedom Caucus to support anything that has to do with governing. Thats the biggest problem. You have a bunch of folks tloefr w over who there who think theyre still shouting, on the sidelines and not in the middle of the ring. The Republican Party is in