Europes higher. Shorts may be coming ahead of draghis meeting tomorrow. Oil is father. Inventories in about five minutes from now. Stocks in the midst of the third longest bull market ever. Well look at what the plays are leading the way. Three new directs have been appointed at valiant. What it means for its company and the struggling shareholders. Another illness youts brake at chipotle causing a store in massachusetts to close. Stock is falling on that market. First the bull market is turning seven. The dows up 159 . S p up 193 . Nasdaq up 266 , not included dividends. It would be the next day, our coanchor, mark haines, sat here at the exchange and said this was it, the worst was truly over in his view. Take a listening. However, im going to step out on a limb here. This is the big hold on, weve been waiting for this. I think were at the bottom, i really do. That morning futures were at the bottom. It was real. He was looking at the dow, 200 Day Moving Average. At the time dow was sitting at 67 of it. I used to i first met mark because we used to email back and forth and fight about stocks and finally he said, listen, i want you to come on. He said, listen, theres no room for a fat bald guy to come on. Thank god i lost weight. And you had hair. To a degree. Kind of a combover with a sun stan. What mark was really after at all times is what he called the crescendo. He wanted to see the selling. He always loved 91. He wanted to see 91 and just see the great flush where there would be no one left. This is it. Theyre done selling. It wasnt so much buying as theyre done selling. It was a classic case of mark saying the crescendo is here, whoerch wants s whoever wants go is gone. I loved the about mark. Mark did not make ten calls and seven of them work. He made like three calls and he was like three for three. I always loved him. I would go, come on, mark. This is it. This is it. He would always say no crescendo, no crescendo. I remember speaking to him that day. A lot of people were down. He said, no, theyre done. Selling is done. Its hard to remember. You go back how scary it was. We already were through much of the crisis so to speak and the events, of course, with that previous fall in 08. But in 09 with the s p, 666 was the low . Yeah. I was the sign of the devil. It was a very scary time. Ge, i remember having him on the show one of those mornings when the stock was below. I know. I put money in the treasury. I didnt have it in the bank. A dollar, remember . 99 cents. Bank of americas stock i mean incredible moment. Some other names that have done well since, general growth, 38 cents. Now the biggest gainer since that time, 7000 gain was 3084 , under armour, 2514 . Wyndham. You dont have to get a shot in your eye. You can do it once and its effective. Im going to take nike. Are you kidding me . David versus goliath. Turned out he had a slingshot. Wi wyndham was krindable. That was a company that decided theyre going to buy caterpillar stuff and rent it to you and then hanesbrands. Is that not incredible . Wow. Look at that. Cbs also right up there. Some were trading like they were about to go bankrupt when, in fact, their Balance Sheets were fine. That was really the issue. These were not these did not have cbs. Some of those prices netflix at 5. Starbucks at 4. Then it seems like a different world. Starbucks, what was it doing at 4. You cant figure it. L brands. Heres the greatest retailer ever and it was way down. Proxy holdings. Its doing quite well now. Yes. No. Theres i mean, no. Look, this is not of american air. Oh, im sorry. Yeah. I was distracted looking at Las Vegas Sands because i remember that also as one of the names, do you remember, almost on the brink. Oh, yes. It had incredible moves. Some of these i remember speaking to kevin plank during that period. I remember him saying, tell you what ive about got. Jim, since the end of qe, s p hasnt done anything, right . Bummeroony. Look, theres some stocks that have done okay. F. A. N. G. Has done okay. These are largely Domestic Companies when you look at them. I think the u. S. Is strong and the rest of the world got weak and thats really the problem. A lot of the stocks that were strong going into the top were, you know, off the natural, you know. Cliffs resources, cole companies, steel companies. Letter x used to go up every day. It was nutty. China. You know, signatures. Every kiss begins with nothing. I was still having a triple i know. Its hard given the passage of time how scared everyone was. You remember the conversations. What is the value of paper money, what should i put in my backyard, what should i be burying back there, i wanted out of the bangks. Those were all the conversations. I remember going on the nightly news and saying i hope my atm is working. There was a possibility that the banks although, frankly the worst had already passed. The night ge was rolling its commercial paper that fall and was this close in october of 08 lets call it, somewhere in there, that was the moment. That was the moment when it all could have come. Not a great time. Ge was like, whoa, were going to be able to sell this stuff . Its a real credit crisis. Its a reminder of what happened february 10, february 11 this year, they were saying, hey, deutsche bank, that was a credit crisis. This is a credit crisis. Caterpillar could not sell its a great machinery. So lets remember this was a systematic credit crisis. Well, were still living obviously with the ancillary effects of the crisis in politics. Four states went to the polls last night. Decisive victories winning michigan, hawaii, cruz winning idaho. Polling had shown a big advantage firefighter clinton. Clinton did win mississippi. Now we look ahead to tuesday, of course. Ohio, florida, north carolina, missouri, but that the trends of globalization, of flat wageses, jim, that is resonating everywhere in these states. Its interesting. To be able to promote jobs and sell principle shampoo to china under attack. Nafta under attack. Trump resonating with a view that, look, no ones playing fair and everyone knows if you work at a union, at gm or ford, that they are paid too much versus where you can 3,000 miles south make 5 an hour to make cars. Does resonate. Does that continue to be part of the process and do you expect that whoever the next candidate or president may be that theyre going to be tougher on trade as a result of what seems to be the publics desire for that, least to the support of candidates and what will that mean . When you talk to guys in europe, i was on the phones this morning. Thats all they do. Trump . What . Huh . Yeah. When i was over there. When i was in london last week, they were like, hes not going to be elected. What do i know. I will say this is the epicenter of michigan. Thats where the big jobs are taken away. Its one for one over there. They really think toyota took the all right. If free trade is under attack, you would think you would not want to own multinational stocks. True. But i would come back and say this is a place where uniquely nafta did take away the jobs and youre not taking away look. Could there be a backlash against some international companies. Walmarts got them. No. But in this particular venue it is very clear that mark fields said on air on the show on mad money, hey, listen, we cant beat the japanese. So i mean maybe what happens is we just do steel. Put tariffs on steel. Look. It hasnt been fair. Its very difficult. No. Theres a train that runs by my house in mexico three times a day, and it is filled with cars that cost very little and theyre german and theyre japanese, and it is so simple. The towns that i go to are filled with german and japanese people making cars and its a windfall. Its where your car is made if you buy one of these foreign cars. Despite we made some progress in South Carolina and some of the germans came to build in tennessee, but not enough. In the time ive been there, 500,000 cars a year. Its where harmon is and ppg. Its where they all are. You hear the trains. Its like, geez, its just as easy to make a car in these cities in mexico thant is. I say, the train just goes up rather than eastwest. Its an amazing thing. Not if theres a wall. If theres a wall, i imagine look. That walls going to be so well built. Have you ever seen the trump plaza . Thats good structurally. The structure work is incredible there. Were going to be having this talk a lot over the next few months. When we come back, more signs of a shift in digital sports. What disney and facebook are saying. And up next, alan joyce, talking field prices and the growth in asia and the industry. Take a look at the premarket. We had the first drop in s p in nine sessions, longest in the year. More squawk on the street from post 9 in a minute. Facebook confirming to vary ity it is in talks with the nfl to stream live games and is looking at boosting i efforts in other live streaming. Meanwhile disney says they need to improve on the digital front and selling from espn to the direct consumer is a possibility. Take a look yesterday. By and large its not an issue. Distribution in some cases are not that they limit us in terms of our ability do it but they limit it in terms of how we take it out to the consumer and i dont want to get into any details. It can be done. There are issues we have to face in doing it. Price is an issue, by the way. They also talk about rogue, the movie coming out. Theres a continuous concern about cord cutting and the dissipation of subscribers in this ecosystem. Its happening. It will continue to happen, and it will continue to be the focus of invest ters. Theres no doubt. Espn has been an incredible product, we know that. It has an enormous audience. Not just the channel but all platforms so it is a big business, but will it be one about programming as they start to proliferate orren to bundles. Right now there cease still so little going on there. You have sling tv from dish, which he referred to as saying, it seems its done pretty well, but what iger has heard. But there arent many out there. At t introduce something, but its a big bundle. Its not smaller. Its not at a level thats going to attract many people. If apple can get into this big. So far by the way on pricing they havent figured it out either to come at a price level that the American Consumer really want. When that happens, were going to be talking more and more about that and, okay, can you slift your mod toll direct and what do people have to pay for it for you the make up the loss of subscribers thats taking place over time slowly but surely. And that drove the stock down just back in the conversation. I think the facebook announcement was very interesting. Yahoo got very little traction, i felt, or they didnt play it up. What matters here is if facebook wanted to get in on this or if Google Alphabet wanted to get in on this, they can pay almost anything. In terms of for sports rights. Yes. And start competing. I know. And we know that while the big issue is whether espn can extract its worth. Right. Because they paid big numbers. When you get somebody like facebook in. They can skin a cat in so many different ways. Why would we believe the roi for facebook is better than espn . Ill tell you. You know, my thinking with facebook and the nfl is the International Rights are going to be up and facebook is an international company. And if you put on london, if you put on the game in london at the right time, you could have china prime time. I think china prime time for the nfl is the biggest thing out there, and i think facebook wants it. I know that when i speak with people from them, its a killer. It was clear from the comments at the conference yesterday theyre thinking great deal about this and strategizing about it in great detail. He didnt share necessarily everything but he mentioned creating new products for subscribers that include not all of espn but parts of it so you get away from this one size fits all. You can customize. Were at the beginning of this transformation. Its happening. I thought lowell mcadam, when i was ott in san francisco, hes the ceo of verizon, he says, hey, sure, i dont think we violated any contract at all. In the interim, ive got that skinny package. Ive got the espn that i want. I dont want channel 7, that crucial game between springfield high and wastch wissahickon. Well take another look at the premarket. Weve got interesting calls on ross stores, fire i and others. Well be back in just a moment. Oh hey allison. Im val, the orange money retirement squirrel from voya. Val from voya . Yeah, val from voya. Quick question, what are voya retirement squirrels doing in my house . Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . No, im more like a metaphor. Okay, a spokesmetaphor. No, im. Youre a spokesmetaphor. Yeah. Ok. See how voya can help you get organized at voya. Com. All right. Its that time with 6 1 2 minutes go before we get to that opening bell do. You want to talk a bit about chipotle and their latest issue. Yes, david. There was a group harold mel vip and the blue notes and they had a song called bad luck. Thats what theyve got, bad luck. This is a stores that to be closed because some of the employees are sick. Now, i wonder who knows. Maybe one person catches it from another. But this could put front and center this whole idea that its not better yet. Now, the e. Coli, the zarnds that theyre using, shipping all the stuff to chicago, washing it, sending it vacuum packed made me feel lights should be the standard for all. I dont know if you got the free coupon. This is a situation where i think that people will overlook it. Now, guys like us are now talking about it so people may be thinking, oh, i cant believe it. But i think these guys are out of the woods. This is obviously a bad [. Remember, they bought a lot of stock right here. Theyll be in. They can do it again. This Company EarnedPeoples Trust and im going to minimize it. I myself am going to say if the stock goes below 500, i think it should be a 5. Every time somebody gets sick do we think other restaurants havent had issues . Do you think this place isnt just hypersensitive . Now, they closed it. Other people would keep serving. They closed it. But it is a company that is responsible, that is doing the right thing and trying to get ahead of it, but its got bad luck. If it werent for bad luck, you wouldnt have any luck at all. We have the opening bell coming up. We have valiant coming up anld pfizer shares. So many other things to come here on squawk on the street. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Youre watching cnbcs squawk on the street. The opening bell in a few minutes. We mentioned ro eed ross stores yesterday. The stock has moved so much. Its such a good company. When you nail a company like that, youve got it right. Sometimes you take a victory lap. That was a good search. My hats off to them. I dont blame them one bit. They should sometimes go high bier thats what you do sometimes as an analyst. I made a good call. Congratulations. At the same time some downgrades for names that have not done well, groupon, yelp, this morning cut by ups. I think groupon is okay. Yelp has been hurt by google, by the change in algorithms. Also this whole thing about rating people, like i could rate david. I mean i give david a one star one star . Im sorry. I mean five stars. If you give me five stars, ill give you five stars. There you go. The opening bell and the look at the s p at the bottom of your screen. Its the new York City Football Club and qantas doing the honors. Ceo is going to join us later on squawk on the street. Earningswise well get square and jack dorsey tonight on closing bell. I think jack dorsey is at the epicenter of some companies. Yeah. Theres that. Theres twitter and square. Two companies. Twitter will ever be defined as your interview with dick and yours with jack dorsey. They geesht to change that perception. Do you remember that interview with jack dorsey . Yeah. Can you come up with an analogue, you know, of another interview that was like that . The Marissa Mayer interview was interesting. That too. Of richard nixon. That stock is still down 20 this year. Others in that sector have rallied. When i created f. A. N. G. , i never meant to create f. A. N. G. Ed. Southwestern, murphy, cabot interesting. Looking at Energy Companies with the lowest longterm deficit. They raised its dividend a couple of earring ago. Thats kind of family company. They said, listen, we understand, we can do this unless it all goes down really, realreally far. Thats great. That thats a great Balance Sheet. I think were separating the good from the bad here. A lot of Companies Need their stocks higher here. Southwest bought their series of properties from chesapeake, Gas Properties that were not well timed. That was not aubrey. But these Companies Need it. Every Company Still needs to raise equity. 35 oil nobody needs to make money. Theyre just, wow, really bad. Dont forget, 1. 77 for natgas. Nother make money and the Coal Companies really dont make money, holy cow. Just the shipping costs alone. Did you see the bankruptcy judge allowed one of these Mystery Companies to walk away . Yeah. Thats big. I dont know how that affects access midstream partners. All of those things are being watched. Some are in llps and theres a lot of concern that youre going see a wave of downgrades yet to come. Have to. Have to. Whether its days or weeks, it will have an impact. Its thought to be coming. They got killed yesterday afternoon. Theres one called azure. This is not where you want to be. Theres way too much pipe. Now, theres not enough natural gas pipe. You still need natural gas to get to certain places. Darden making some news with a guide. 1. 18 to 1. 21. Streets at 1. 06. Clarence otis, previous ceo came on mad money years and years ago. Just watch gasoline. That determines the people who go there. Well, its happening now. Its a new ceo. Theyve done a remarkable job. Theyve gotten rid of red lobster, the seafood lover in you. You get the unlimited salad bowl at olive garden and rolls. What do i tell you to wear . Cargo pants. Go to target and get cargo pants and stuff your