Similar gains by the cac in france, the dax up by 0. 3. The tenyear yield has been hovering near the lows the yield sitting at 2. 172 . A little higher than where we were this time yesterday crude oil down again yesterday after being hit hard the day before wti is up by 19 cents. Still below 45, 44. 65 we have a couple big stories were watching this morning. Russias Defense Ministry checking to see if an air strike in syria killed the leader of isis unconfirmed reports say that the leader al baghagi had been killed in air strikes. An upstate on steve scalise. He is in Critical Condition this morning after undergoing more surgery yesterday afternoon. Is he expected to need multiple operations to stop the bleeding and repair internal organs he was shot in the hip at a congressional baseball game on wednesday. New this morning, china removed 27 restrictions on Foreign Investment and free trade zones. Chinas free trade zones enjoy loser trade. They specify areas off limits to foreign capital. We had an idea it would happen, but we were afraid to say it baghdadi has not been confirmed other places happened in may mmhmm. Still dont know. Its like the 15th or something. Its june. Remember the other day i thought it was may. So well talk about snap in a second so our big fed is hiking rates mueller is investigating obstruction of justice today yes ended up down 14 on the dow yes near the highs of the days we were down about 80 points in the morning before things opened how about tech . Technology weak but i think it was materials that were weaker its like a beach ball. More like a helium balloon that pops back up every time yeah. Youre thinking under water trying to pull the beach ball under water, it never goes under. Watching shares of snapchat. I see all kinds of acronym or slang, snap crap, i see all these names for snap i know we own not us, not me personally comcast i think our were in at 18 were in at 17. Were in the at ipo price. So the stock dropping to 17 in yesterdays trading yeah thats the price set at the ipo in march analysts have warned about snaps high valuation and slowing user growth. They warned snap may never become profitable. Is that true they said that before this is as much about the valuation at the ipo as well as how much facebook via instagram has taken so much. I thought if you aggregate eyes if you aggregate eyes, do you need to be profitable can you just pretend to thats yahoo we thought if you aggregate enough stuff and have enough buzz, but it has to be monetized or does it not im not sure it does theres been Companies Like amazon, jeff bezos was give an huge amroupt oount of theyre not building out anything amazon for the longest time was getting that was not an aggregating that was an aggregating everything selling to distribution centers. He continued to grow the number of customers at a rapid pace the whole time. Whats happened with snapchat, there has been a legitimate slowdown we would always say to ourselves up here, we dont understand snap because were not part of the generation the Younger Generation is doing it we dont get it. Were not joining at all the Younger Generation, thats whats happening here. No why you are looking at him . Hes older than you are. What supposedly. What have people migrated to from snap . Instagram but instagram was before snap but facebook has done such a good job with instagram they have taken absolutely. Facebook has done a phenomenal job with instagram it doesnt matter if youre an older generation or Younger Generation, when people say youre not going to be profitable for a long time that does not get people excited. It is much different than the amazon model with amazon, bezos laid it out and told people from the beginning dont think youll be here for shortterm profits. Were building Something Big and over a long haul snap may be trying to do that. Whether theyll win the same patience from investors is the question lets first see twitter the eventual winner, i think, is the one that has the dog ears on your picture, and a instagram now who doesnt want to do that instagram has it. They do to me, the valuation is based on the dog faces you can put on your selfies who doesnt want to do that . Dont you just do that once and say, ive done this . You cant build a Company Never gets old. Thats the thing vomiting that rainbow. Whats that you go bleh it turns into a vomit rainbow. See, thats new to me so this keeps Technology Keeps up its not just dog ears they keep putting new faces on every day theres something new. Im embarrassed that you know this for you. Im embarrassed that you dont. Really . You spend your time . Okay dupont and dow chemical won antitrustrust approval to merg under the conditio that the company sell certain Crop Protection products and other assets the companies have clearance from europe, china and brazil and are awaiting approval from a handful of Companies Including canada and mexico. Time for our daily check in with washington with eamon never know dont get so excited. You dont sound so excited. You never know whats coming here never know whats coming from the beltway. President trump is headed to miami today where he is expected to roll out a new cuba policy. And it doesnt roll it back completely, does it . Yeah. Tightens up a couple things can i still go if i want to if i pretre prete pretend not as an individual people to people, you cant but as part of a licensed tour group you can. Get yourself on a cruise ship, off you go. Its a Beautiful Island i had someone trying to talk me into going there i guess theres a lot of art down there its beautiful. Great artists. It is fabulous. I was there two years ago. Fabulous . Fabulous. Its really striking its unlike anything else that you will see in the caribbean. Because its frozen in time frozen in time and crumbling since the 1960s. Great so when you walk down the main streets in havana, there are buildings crumbling into the streets. Who doesnt love that. Alongside buildings that are fixed up and are great its a weird mishmash of everything over the past century, including the cars. 15 , 20 of the cars in the streets are old 1950s american cars its a fascinating place to go my advice to you is dont eat dinner at a black market restaurant in old havana, which i did. Because dinner was great. The aftermath not so great they still are working on sanitation, water cleanliness. So its a mexican like montezumas revenge. Fidels revenge thats scary. It can last a couple days. Eat dinner on the cruise ship, walk around havana until they get that fixed. Its a problem i will leave it there. Early morning people may be having breakfast you can only order beer, you cant have a mixed drink theres ice. You can avoid the water but it gets you just have the rum straight, youre good. Okay. I thought you said just get the runs i did. I did not say that. I did not say that i might have been referring to that but i did not say it. My head was in the same place. This is a tough segment out of the gate. Do you have substantive stuff to say i do. Do you want me to say it yes, please im not sure. Some days i wish you wouldnt. We got a briefing last night from white house officials who walked through some of the details. The president will announce the plan in miami later on this morning. Let me call up some of the bullet points here they will prohibit Financial Transactions including transactions incidental to travel a couple other points, they wanted to strengthen the statutory ban on tourism to cuba, which has never gone away. But this is the one we were talking about. But the individual people to people travel will be prohibited so you cant say youre going for any reason you want to, you have to be on a licensed tour group. Theres no change to the embassy status here that will remain in place from the obama reforms also there are a bunch of exemptionses to the policy carved out for specific industries, including exports of agricultural commodities, medicines, medical devices, air and Sea Operations that support permissible travel, cargo and trade. That includes the cruise ship business, joe. If you wanted to take a cruise line, you can still do that. Programs to build democracy. A couple other exemptions included in there. Internet and telecom, access for the cuban people, sending, processing or receiving authorized remittances those are the payments from americans who have family in cuba to their family members that will be able to continue. A lot of exemptions here not a full rollback of the obama reforms. But what the trump team is saying is that they think this was an appeasement policy towards the cuban government they want to redirect the dollars flowing from the United States away from the military and intelligence services, and towards a more broad based cuban economy. So the people who benefit here, airbnb, not so much the Big Hotel Chains that have done deals with the cuban military in order to license facilities down there. So you went from the cuban to the cruise ships where you also can contract they recycle the water or something they have norovirus crawling everywhere you have to tough it out. The result is the same. I think. Either in cuba or on the ship. How do they do that . Theres a lot of toilets, a lot of, like, water they use how do they know its it seems its scary. You would not go on a cruise, would you . I would go to alaska. I wanted to go tour alaska thats a way to see the glaciers you wouldnt do it. Theres 3,000 people using the same sanitation system when you fly, youre dealing with the same thing. You can fly direct to cuba. Youre off in six hours its not like youre trapped there for ten days you can fly direct. You can fly direct theres an interesting thing. You can still fly the flights american air flights direct from miami maybe not for long, right no, you will be ability to still fly. You cant do the individual you can fly direct to cuba, you can fly direct back. Theres been some cancellations. Spirit airlines canceled because there was not enough demand for people who wanted to go down all right because they talked to eamon. We learned a lot today, joe we did. This was educational. For people eamon, what happened yesterday afternoon on twitter do we know what was that the president started tweeting in the middle of the afternoon. We almost got through the segment without you we almost got done but hes my resident expert at the white house youre soul mate. The president had a block of unscheduled time on his public schedule where he wasnt doing anything sid suddenly we saw the tweets the president tweeted four times about the russia situation now we have a situation where the white house wont comment on russia the spokespeople there, official theres wont say flig about ru anything about russia. They wont even comment on the president s tweets about russia. They refer those questions to the president s attorney mean while the president is feeling free to tweet away on the subject saying he resents the fact that were not investigating Hillary Clinton and her team, that were investigating him. He feels thats problematic. He seems to have a sense of grievance about this its very emotional for the president. He feels he hasnt done anything wrong, doesnt know why this is happening and wants it to stap cle stop. So the white house has to figure out a way to do the agenda piece and do the russia piece separately theyre trying to do that but the president paying a lot of attention to russia thank you you bet there was our daily dose. You got it. You got it in. Lets talk about the calendar todays agenda, couple things going on a pair of economic reports may Housing Starts out at 8 30 a. M. Eastern theyre forecast to rise more than 3 after falling in april Building Permits expected to remain largely unchanged at 10 00 a. M. , the first report on june Consumer Sentiment also today well hear from dallas fed president rob kaplan because he will be speaking later this afternoon back to the Broader Markets. Futures at this hour right now we are in the green. Dow opening up about 37 points higher s p 500 up 5 points. The nasdaq up 12 points. Joining me is jason pride. Our guest host for the hour, joe terranov terranova. The train has been edging marginally edging back i missed the train okay. Marginally edging back . This week i had a if i was in f. A. N. G. Stocks, if i was technology guy, im trying to keep it limited so you got excited last friday when the f. A. N. G. Stocks went down, you said this is it the dow off 14 points the alltime high. Yes thats good pullback. Where i was going with this, we had a guest on yesterday who you were very skeptical of do you remember this no. Which guy . He said we thought we were on the precipice of a recession that was at the beginning of the year he said the s p would be flat to down. But then he said he wasnt bearish. And it was going to be he didnt just say recession. He said it wont be hooverville, it will be trumpville. Do you remember hoover not edgar this is where i wanted to tee up the conversation that guy has been good. It was supposed to be the first year of the reggen administrati reaga administration, down 20 everybody got excited last friday because the f. A. N. G. Stocks went down were working on 131 consecutive days where the nasdaq 100 is above the 50day moving average. We have not done that since 1995 some good things happened this week biotech was fine the credit markets, which people dont like to talk about high yield Investment Grade you saw a natural correction everyone has been overweight growth since march okay they paired back system of that while they pared it back, they bought financials. So straight shot to the moon . No. On average on any given year through history we had a 5 to 15 correction at some point of the time the majority of those years have gone on to be good years this is still the longer term cycle. Were basically nowhere near the end of this economic expansion so investors have to stay invested somewhat in the equity markets. To think there is not any correction whatsoever, no 5 to 10 pullback you dont know what will cause it you just know on average it typically happens at some point in time. Quite often by something that nobody sees coming whatsoever. Quite often for typically like some wacky sentimental reason. We had brexit. We had the nearterm correction on trumps election, the snap back multiple things could happen you see, exactly what jason is talking about the problem becomes that youre talking to longer Term Investors. Youre talking about a 5 to 10 correction will investors try to time that correction we sit here today, one month away from earnings, you really want to get out of the market after the earnings we just reported if youre a longer Term Investor where were finally seeing best earnings since 2011 . Now well get another round of them one month from now . This is more a trading event driven by a lot of algos play it accordingly. Were there times in the past when we waited for a 5 , 10 correction and its been two years how do you get back in. You get back in typically when you wait for the 5 , 10 . You finally get it and its above where you were waiting it comes down, its like you didnt buy here at 2316 it goes up to where it is. Comes back to 2400, youre still way above where you were this is not for you to come on and say at any time we can have a 5 , 10 correction, you know that everybody says that. Of course all right thats what i would say, too. I know. Every person in the world, we know that. If thats true how you position around it if it doubles you dont say ill take the equity position down, have less equities because im worried about a 5 correction you dont sound overly bullish. You said investors should have some exposure to the stock market you should have a full exposure to the stock market but you should have take a defensive posture within the u. S. Where the valuations are higher and the snap back could be harder. And you take your risk where there are better valuations. How much are you sitting on cash right now we have nominal amounts of cash 2 , 3 shyou should always have som cash, be ready to step in. Its about what you own and the amount of, number one, the beta that it has to the overall market again, as evidenced by the overwhelming attraction to growth, the type of stocks we had the last few months, if you feel its a defensive vie ivive environment you pear that back do you think there was a movement out of the f. A. N. G. Stocks if you assess whats going on in the last week, things are good oil prices are teetering challenging 0 bue ining 40 bucks that used to be a major concern for the markets. And you have a Federal Reserve that has given you another normalization in rates market digested it fine. Thank you guys. Thank you joe, youre sticking around sure. Good. Netflix hitting a new milestone. Details after this and jeff bezos asking twitter for help well tell you why after the break. Stick around, squawk box will be right back. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Welcome back the number subscribers in the u. S. Passed the number of cable tv sub scrub irs in t subscribers in q1. That does not include fshg ifios subscribers. In the new york times, at last jeff bezos offers a hint o his philanthropic plans. His Charitable Giving has been a mystery. Hes the only one of the top five billionaires in america who has not signed the giving pledge, and his charitable contributions have mostly come from his Family Foundation totaling about about one tenth of one percent of his future after being questioned, bezos tweeted that he is looking for philanthropy ideas at the intersection of urgent need and impact when he cashes shares of amazon right now, he puts them into spacex. Thats what hes been doing with this stuff into blue origin. Blue origin spacex is elon musk water he can do water it has to be for him, he says it has to be immediate. Hook the people up to clean water. Water homelessness, medicine education i had people telling me that if you to cure poverty,