Dax is off by a half percentage point. The cac is off by 0. 4 the ftse relatively flat but still down finally look at crude oil prices crude was up by 2 yesterday in the market trading, but it dropped significantly after hours after there was a big increase in api crude inventories. That came as a surprise. This morning things are down by 13 cents heres some of the other big stories. Jury selection in the trial of Martin Shkreli will enter its third day today. Its not going well. Some potential jurors said they could not be fair to a man who gamed ed gained fame on raising drug prices over 5,000 . Shkreli himself has complicated matters by seeking public attention on his twitter account since charges were filed lashing out at critics and boasting of his wealth he even launched a Charity Auction for people who wanted to punch him in the face. He was banned from twitter in january for harassing a journalist shkrelis own lawyer said unfortunately the twitter history is horrific. This is a juror who said he was on twitter, and shkrelis lawyer thinks he would be prejudice by just seeing his twitter account. The judge said the first day it was okay if they already heard about shkreli. I dent see if they her about him how theyll be unbiased. You have to find somebody who didnt see that whole thing. When shkreli was active on twirt, i yo twitter, i would follow him because it would be amazing what he says. And some people supported him. Controversial people have been kicked off twitter who argued they are the reason twitter is interesting didnt you enjoy following him my god, did he really say that when those people go away, its not nearly as fun. But those jurors are right. A snake. I think i called him the same thing myself you watch him, its wow. Nestle is planning to buy back nearly 21 billion of shares over three years following pressure from third point. Dan loeb disclosed a 3 3. 5 billion stake in nestle on sunday and pushed for the company to buy back shares shares of nestle sitting at a fresh yeartodate high. Higher by 1. 40 or a gain of 1. 5 at 85. 70 per share. New cyberattack is causing descriptiiskrurpuuption around. The ransomeware attack is similar to the wannaattack data is only accessible if the user pays 300 in bitcoins we will talk more about the attack in a few minutes. A few stocks to watch today. Toshiba is suing Western Digital accusing its joint venture partner of interfering in the planned sale of its memory chip unit a big dow chemical investor is calling for changes to the merger with dupont the wall street journal reports Glenview Capital wants the company to scrap plans to break into three separate units once the merger is complete. Also complaining about andrew livers retirement being put off. And u. P. S. Plans to freeze pensions for 70,000 nonunion workers switching them to a 401 k fund. The company is trying to contain a Retirement Fund that has a nearly 10 billion deficit lets get to our top political story of the morning Senate Republicans delaying a vote on the healthcare reform bill eamon javers has more on the bill and the fallout it was a significant legislative setback for President Trump and his administration yesterday as the Senate Majority leader, mitchace doesnt have the votes necessary to do the repeal and replace of obamaca obamacare. He announced theyll have to punt on it until after the fourth of july recess. At the end of the day yesterday, after that had happened, President Trump invited all republican senators over to the white house to discuss ways forward and where to go next at that meeting the president struck a downbeat tone heres what he said. We have to have healthcare. It cant be obamacare which is melting down the other side is saying all sorts of things before they knew what the bill was. This will be great if we get it done if we dont get it done, it will be something that were not going to like and thats okay. I understand that very well. But i think we have a chance to do something very, very important for the public the president there saying if we get this bill done, that seems to be a concession to the idea that it is possible that this Obamacare Repeal and replace effort wont succeed at all in the senate. Some republican senators are intransigent on this the white house is look at the house effort, where they had to pull the bill and paul ryan was ultimately ability to get it passed in that chamber six weeks later. Mitch mcconnell came out to the white house drivery to talk to reporters yesterday. He said if this doesnt work, it republicans cant get their act together, they may have to negotiate with democrats as ive said the status quo is unsustainable it will be dealt with one of two ways either republicans will agree and change status quo, or the markets will continue to collapse and well have to sit down with senator schumer and my suspicion is that any negotiation with the democrats would include none of the reforms that we would like to make some of the objections here were in terms of the actual material in the bill, but some of the objections from republican senators had to do with the politics and the political hand that the white house was playing, including an America First super pac linked with the administration run by dean heller of nevada. A lot of republicans didnt like the idea of taking on fellow republicans here, particularly one in a vulnerable race for reelection they didnt like the politics of that or the legislation they were dealing with. Now the administration and senator mcconnell will regroup walk us through the calendar. Postjuly 4th, what could or could not happen, relate it back to the other legislative efforts, whether its taxes that have to happen or not happen this fall. This is an administration that said it would have healthcare reform and tax reform finished by the august recess they certainly wont have tax reform done by then. They may not have the Obamacare Repeal and replace effort by then the calendar is subject to the votes. When you have the votes you call the vote as they say in washington and that can be done more or less at any time with several days notice. But the question is whether they can build a bill that brings in enough of the moderates without alienating as many conservatives. You saw club for growth, the conservative organization yesterday, coming out against this bill saying it wasnt it didnt go far enough in terms of repealing obamacare. It was tinkering around the edges. That wasnt good enough for them i dont know how you bridge those. Thats the challenge there was talk that Mitch Mcconnell was trying to get a vote either way, just do it. If the thing dies, okay. Then that way they can move on to getting the budget done so they can do tax reform every single day of healthcare reform is a delay of tax reform, which is what the markets are much more interested in. What happened to that thought that they would do a vote live or die i think mcconnell blinked ultimately the idea here is the sort of the worst Case Scenario for the markets, which are focussed on tax reform this implies weelt isy ies wela several week delay that will push back tax reform into the fall the senate wants to get on to that the markets want the senate to get on to tax reform, but mcconnell seems to have decided that he wont let this thing go down in flames either he sees a legislative strategy, a path here that is not evident to the rest of us, or he just is unable to abandon this political promise that the republicans have made to their base that theyll repeal and replace obamacare. They campaigned on it for seven years. Its something the base believes in strongly. They want the republican majorities in the senate and house and republican president to deliver maybe he decided he couldnt let this go yet. Well talk more about this. Tobey cosgrove will be on this hour to spend some time with us on this issue. Eamon, thank you in other political news, reuters reporting that President Trump growing us from rated with china over its inaction on north korea and bilateral trade issues trump considering possible trade action against beijing including tariffs on steel imports the Commerce Department said it is considering steel tariffs as part of the National Security study of the steel industry. Joining us is eric nutson and jim mccokin. The second the news broke this vote would be delayed, we saw a noticeable decline, and most people pointed to this news. Are we making too much of the fact that tax reform is getting pushed back every Time Healthcare is getting pushed back not really. I think the Market Reaction was about fear that tax reform and the deregulation agenda remember, repeal of doddfrank is on deck at some point that was all going to be delayed by the gridlock on healthcare. Thesooner the senate can move on and generate time and spice for tax reform and deregulation, thats better for the market if they were to repeal obamacare t would mean lower taxes the senate bill doesnt roll those taxes out until 2023 right still, we would see some improvement in terms of healthcare stocks. My larger point is would it be better to just let this just do a vote, get it over with and move on . Whatever is going to expedite moving towards tax reform and other pro growth initiatives, healthcare, timing of this has delayed, as has been said, what the market focused on. Thats tax reform, spending, Additional Support that can lead to an acceleration of growth we have gone from this reflationary environment in markets to a muted expectation around low moderate growth, low rates, low inflation if we get low growth, if we have low inflation, is the fed going to continue to raise rates if they dont continue to raise rates, it seems like the stock market will still look like the best alternative if you cant get yield elsewhere, where do you put your money . Were describing more of a goldilocks environment in that environment equities credit tend to do better than sovereign bonds, lowrisk assets the problem is the margin of return, the margin of expected compensation for that risk is modest right now so speaking of yields, the other big event yesterday, besides this, was the fact we saw this massive selloff going on in bond markets. Doesnt that lift u. S. Rates or does it not . I dont think so. I think that european rates have been pinned to zero. Its very hard to see a Sustainable Way out for the ecb. Because growth, though its theres signs of growth, it doesnt look all that sustainability particularly with the strength of the euro youve seen over the last few weeks i think that the ecb is going to try and taper as a facesaving measure, recognizing that longer term growth in europe is pretty anemic i dont see that as having a big impact on u. S. Rates, which i think will rise. Because you think the european bonds will continue i dont think theyll longterm continue to weaken to michelles point, you look at the tenyear note, its up about 8 basis points from yesterday. Exactly our tenyear, yes. I think that what youre going to see is that at least one more 25 basis point increase in the fed funds rate this year but it need not have impact on the tenyear the u. S. Tenyear is the most important economic criteria in Interest Rates the fed doesnt control that thats the piece that the market will determine i dont see why even on Rising Fed Fund rates, i dont see why the tenyear moves much from 2. 20 over the next year or so. I think the Sustainable Low rate environment, even with the fed funds raising rates, is actually a Good Environment for u. S. Equities we take a different perspective. We think rising rates, the intermediate portion of the curve in europe is good, that allows longterm premium, removing some of the negative term premium with u. S. Rates, allows better environments for financials and banks we are overweight europe we have been trimming from u. S. Large cap on what we think is better growth in europe and an environment that will sustain strong corporate earnings in europe earnings are not at secular highs. We will see better growth in the Second Quarter in europe than the u. S. Do you li you like financiale mark grant who comes on the show says he would not be abuyer of financials because you cant believe theyll follow the rule of law were overweight europe but not financials term premiums increasing and giving a steeper yield curve for financials improvesoverall situation in europe. You like u. S. Equities . I think just broadly the u. S. Equity market is okay. Im not particularly strong on financials i think you have to be selective. Theres not a bubble in the f. A. N. G. Stocks, but theyre highly rated theyre expensive relatively. But that may be justified. My point on equities is the broad beta exposure. 18 or 19 times earnings on a tenyear yield, not much over two. Thats actually a good margin of earnings yield over bond yield thats why the u. S. Equity market is a buy on setbacks. In europe, because the growth is less sustainable, i would see european equities as a sell on strength i agree with jim, u. S. Large stocks are not overvalued. We see Smaller Company stocks, and in europe, emerging markets. When we come back, a growing cyberattack affecting u. S. Drugmaker merck and many m more. We will get more from the ceo of Cybersecurity Firm rapid seven. And we will talk to former secretary of state kocondoleezz rice at 8 00 a. M we will speak to her about russia, syria, and the state department under President Trump. Stick around, squawk box will be right back. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Can we at least analyze customer can we push the offer online . Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . Yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And what should i watch . Ade with a clear advantage. Show me sports. Its so fluffy look at that fluffy unicorn hes so fluffy im gonna die your voice is awesome. The x1 voice remote. Xfinity. The future of awesome. Welcome back an International Cyberattack struck tens of thousands of computers in the United States, russia and nine european nations. For the latest lets bring in cory thomas, ceo of Security Firm rapid seven thanks for being here today. Thank you for having me this is a little like the wannacry virus that we heard about that spread around the globe but this sounds like it may be worse its definitely worse it leverages the same core exploit as wannacry but we find that the ability to actually take over more of the system is more complex, more sophisticated, and it also has a bit more logic built into the core components. This is called petya. Petya when you say it has more logic built in that implies what . Theres two big things that are different. The first thing is that wannacry leveraged a specific exploit a weakness . A weakness in the environment. It exploits a vulnerability. In windows. This exploits the same vulnerability in windows which is what windows has a way to communicate between servers, smb, server message block, that was known vulnerable as part of the nsa leak that came out when the attack methods were stolen microsoft patched that vulnerability for moths st of i systems in march but what you find is systems all over the world are still vulnerable because they have not downloaded the patch because they have not downloaded it. This calls out a core thing, a big part of the vulnerability that we find all over the world is that theres lots of known things we can do something about, but we have not found the mechanism to address those issues even though you think you have downloaded this patch at your company, if theres one company that has not been patched, thats the weakness in the system and thats the way in is that true that is true. I would say that most of the maturity around i. T. Practices and cybersecurity are weak today. You have a die verbvergence betn the i. T. Teams and the software teams. We have decades of a lack of maintenance of our Core Technology infrastructure. And lots of companies are rushing to fix it now. But theyre still developing the systems and the process to do that. If you have one person with a mobile phone connected back into the system that didnt get the patch and the message on this your entire system is vulnerable not the entire system degrees matter here. The core thing is that if you have one system thats compromised, its one system what you find with most organizations, one device was compromised t spread throughout the environment because it found the other vulnerable systems within the environment the worm works its way in it goes from there it works its way in and spreads. The fact theyre demanding to be paid in bitcoin, is that somebody is that the incentive, because they want the bitcoin more usable currency, or because of the nature of bitcoin, that nobody can track them its the nature of bitcoin. For those who will do any of these types of attacks, i would around the entire black market around cyberattacks revolves around systems with low transparency and low regulation. Would you be a supporter of bitcoin as a currency or given the fact that its being used in ransomeware for these