We saw the major indexes all down. European markets, yeah, kind of a down show there too, as you might have expected. Well call it what 1 more or less when you average it all together. As for tenyear note yield here in the states had a recent high yesterday i believe in yield 1. 81. And there is all important crude and brent both below 50. Lets get to our road map this morning. And it begins with jeff bezos making headlines at that code conference. Were going to have much more on his future at amazon, the retail stores, donald trump. Yeah. Plus a new month in the markets after that may rally. Stocks as you saw starting in the red. And a deal this morning, not that large a deal but an interesting one, salesforce buying a Software Company 2. 8 billion total price tag, had a lot of cash. Marc benioff going to join jim right here this morning. I will at least get to say hello to the bearded master, im hoping. Lets get to carl in california at the code conference where jeff bezos was making some news, carl. You got that right, david. We love the code conference, quality conversation is fantastic. Bezos did not disappoint. Talked about amazons business model, talked about why hes so committed to taking industry to outer space, talked about the promise of india, talked about Artificial Intelligence. Heres a little taste of what bezos said basically regarding the four pillars around which he is now building the company. I think of them as little seeds weve planted. And well see will they turn into big trees . Thats a good example. And Amazon Studios. I think Amazon Studios could turn into a fourth pillar. Its possible. What were doing with alexa and echo and natural language understanding and that evolves into an Artificial Intelligence agent. And i believe there will be a bunch of Artificial Intelligence agents in the world. A bit like apps and websites, theyre going to be specialties. You may not ask the same a. I. For everything. Some a. I. S may be better at certain things than others. And 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. Ill tell you, guys, weve been talking about a. I. Sort of as a moon shot and weve heard similar things from Companies Like google at the i. O. Conference, but this was very specific. 1,000 employees at amazon now committed to this. Working on it for four years. With obviously very concrete examples of how this is going to eventually reach the consumer in alexa, in the amazon echo. Really fascinating stuff. Were witnessing a very large pivot here in technology, jim, im sure youll agree. Well get to the other topics bezos talked about later in the day including everything from ipos. That a. I. Talking point has really stolen the headline. Theres a reason ive been focused on it here in our conversations. We tend to kid, carl, sometimes about the machines taking over. But, jim, its so interesting to hear bezos when he talks about a. I. Particularly but also the other studios, the legs, we know theyve done it before with Amazon Web Services which was created within the company. Initially serving the company and then of course spread to corporate clients and now an enormous business. They continue to innovate at that company at scale. Right. Now, demand weare acquired this morning by salesforce, their Big Initiative is a. I. Theyre trying to be predictive. I dont know how much is algorithmic, if you like this, if you like crude youll want to get long google. Its almost like that. But whats interesting is this knowledge of what you want before you want to know it, before you know it, before you even can understand it is very, very powerful. And to be able to into it what we like, can you imagine if amazon decided were going to open a stock exchange, and we generally think if you like exxon, maybe you just bought 100 shares of chevron. Why not . That is the analog. I mean, carl, this Exchange Idea on Artificial Intelligence clearly not just limited to merchandise. Something brick and mortar, it can be in anything. Absolutely. Its literally a universal technology. And its being built on the Building Blocks that we sort of talk about every day. More pedestrian things, greater computing power, as you said better algorithms, all of this will funnel into that technology that you want before you know it. Carl, lets say you want a ticket to cleveland versus golden state. You know, i think they would know that youre a basketball fan because maybe they see that you belong to nba. Com, and they would show you an array of tickets. And you would have it firsthand. And you wouldnt have to wait for stubhub. I want that. If they can if they know my brain and know i want to be at that game, whatever, i mean, what a great thing. I want that more than i realize. Well, it certainly fits with bezos overall strategic strategy, which is to not be afraid to fail, right . Not be afraid to fail repeatedly over and over again because that tenth atbat where you actually do hit the ball in his view is likely to be a very large run. Yeah. And not to forget Amazon Studios which you also mentioned there. Carl, whats the number . Theyre going to spend 4 billion or an enormous amount of money in content this year at amazon. Thats not insignificant. Absolutely. As he said, i mean, sort of odd to hear jeff bezos say you win more golden globes, you sell more products. And just yesterday they renewed transparent, which did win the golden globe last year for a fourth season. So they are well ensconced in the hollywood game. And its no longer an oddity to see bezos at some of these ceremonies where theyre handing out artistic competitive awards. Yeah, i want to check that number and make sure im right, but its Something Like that. Reed hoffman told me how he came of with nar kos, said a lot of people like the movie scar face, a lot of people like breaking bad. I happen to like about the nazis and japanese winning world war ii, because that was a great series i could see bezos sending me literally everything about what would have happened if the nazis had won, maybe what would have happened if they had had the bomb. I could see them talking about what would happen if the japanese invaded california, there are books and movies i want to see because i watch that. Right now im limited to, hey, the guy who bought the last days of berlin also bought the last days of tokyo. Yep. But i want to know what i want before ive thought it out. A. I. Is weave its way into our world in a much more significant way. Sometimes i come back to the fact i think it was 97 or 98 big blue beat the reigning chess champion and said it would be 100 years before they could win and he beat the a. I. Beat the raining champion a few couple months back. Carl, i know youve got other things from bezos as well. Not dealing with a. I. At all but dealing with politics. Yeah, as you know it was a free ranging conversation and id dit turn to donald trump with whom bezos has had criticisms back and forth on twitter at least, and of course comes a day after trumps News Conference in which he went toetotoe with the political media. Heres what bezos had to say about that. One thing that i think is not appropriate that donald trump is doing is, i think, working to freeze or chill the media that are examining him. You know, its just a fact that we live in a world where half the population on this planet, if you criticize your leader, theres a good chance youll go to jail or worse. And we live in this amazing democracy with amazing freedom of speech. And a president ial candidate should embrace that. They should say im running for president of the most important country in the world. I expect to be scrutinized. Please examine me. Thats a very important cultural norm. And the cultural norms are without the cultural norms, the constitution is just a piece of paper. Guys, a lot from bezos last night. And a lot still to come from the Conference Today and tomorrow. Later on today well hear from mark fields of ford, well talk to jim ban kauf, bill gurley talk about private valuations and yuri milner. Great couple of days. We cant wait to get started. Thanks, carl. Well be checking in with you of course through the broadcast. Those are powerful words from bezos. Toi i want to get to the broader markets. Remember yeah . Trump knows this is about media, knows public hate media and the media is bias so taking on the point of view of the individual upset with the media. Not the point of view of the First Amendment. Now, these are radical precepts hes doing, which is basically to say, listen, the First Amendment is not whats at attack here. What im attacking are the people disliked by americans. Its a remember, hes about winning. I mean, can we never forget that . Hes about winning. So is jeff bezos. Hes about winning too. Absolutely right. But he aint running for president. No, hes not. At least not yet. Were going to take a break and then were going to get to the broader markets. Just started. We ate up 11 minutes talking about a lot of these things. That was not eating up. That was smart, good tv. Youre right. I agree. Why . Because we didnt have jim pa palmer. Coming up, youre going to hear about the cloud, we have a deal salesforce. Com agrees to buy demandware, marc benioff going to join us for a live interview. Also ahead you saw a rough start to the morning for the broader markets. And look at those names both down nike, under armour, well tell you why. Another look at futures. Weve got, well, a lot more to get to here. With me and my colleague mr. Cramer whos scowling. With usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Narrator sometimes its the things that the rest of us dont see that can make all the difference in californias classrooms. Its part of my responsibility as someone whos experienced to allow the door to be open for younger teachers. The teamwork between the teachers is essential. When we collaborate with each other. It makes everyone stronger. By helping my fellow teachers be successful, im helping kids be successful. Narrator the California Teachers Association educators who know quality Public Schools make a better california for all of us. Ford is out with its auto sales figures for may. Lets get to phil lebeau at hq with results. Hi, david. Weaker than expected. Ford reporting a decline in may sales of 5. 9 . The estimate from ed munds was decline of 2. 9 . Cant blame the fseries pickup truck up 9 . But this is the stat of the day, hope youre listening closely, car sales, and were talking about the focus, the fusion, car sales, not overall vehicles sales but car sales down 25 last month at ford. That speaks to what we see with low gas prices and the cultural shift in this country toward suvs, crossovers, cars are just not in favor. Guys, back to you. Cultural shifts, thank you, phil lebeau. Could this be young people not driving cars . I heard cultural shifts from phil, you do wonder. No one can keep up. But the trucks, the f series is wonderful. That also helps its a Small Business situation which may be doing better. We had marty on the other day and Small Business is not strong, but thats extraordinary. I mean, this comes back on the heels of when youre 17. How many minutes did you wait before you got your drivers license . Right. Now its like, hey, how many minutes did you wait before you downloaded uber . I know. By the way youve already got it downloaded because youve been a teen potentially using it already, accustom to it, part of your life certainly in urban areas. Depends on where you live. I took the f train yesterday. Yes. Got me where i wanted to go, much faster than uber. I guess that makes me an older person. They dont have that a lot of places, the subway. The f train . No. Its a particularly good line. Yeah, it is. A lot of people reading books on the f train. My line on the upper west side, not a lot of readers. Play candy crush people playing candy crush. This is an extraordinary number. Mark fields is going to be on talking to carl, i believe. Yes, from code. Thats a statistic that says, well, mark, you told me that maybe the p e of your stock was too low. Well, to have that kind of drop is kind of a caterpillaresque or joy global. Its shocking. Lets get to under armour and nike. Under armour falling in the premarket, the company lowering full year guidance directly related to the liquidation of Sports Authority. Remember, that had originally been thought to be a reorganization, but now its liquidation. Nike also moving lower, Morgan Stanley downgrades dow component to equal weight. Had been overweight. Morgan stanley saying the Athletic Apparel category weakening amid heightened competition potentially from the likes of under armour, both down today, jim. Is it an opportunity or something that warrants more attention . I think that under armour might be. Some people say its the worst chart in the book. Under armour has steph curry. And in the morgan note they talk about 800 basis point takeaway from nike because of steph curry. Anyone who watched the series knows that he is electric. And that is an endorsement business. But david, the Sports Authority really skunked a lot of people. Theres a lot of inventory sent there. Under armour had sent millions of dollars offin vep toir and obviously not going to get any very little back. But nike, Morgan Stanley talks about u. S. Channel growth of minus 1 . This is a growth stock. And adidas is back. We had written off adidas. Obviously under armour came out today and said, listen, were still going to have fantastic numbers. Kevin plank is a very difficult opponent. But nike is the one that is down a lot. Nike big dow stock. Thats going to directly impact. Yeah. On the other side of things michael kors puts up a good number. Cuts numbers enough. I would say the billion dollar buyback and the extension to china getting that china franchise is very good. Handbags have been strong. Coach has been strong. Coach numbers have been good. So theres various parts of apparel that are strong, but i am you know, pvh had a very good quarter. Right. Lets not forget that this Sports Authority when they decided to just close it, david, it was like linens and things. Circuit city. Here today, gone tomorrow. Chapter 7, all the inventory gets sent back and thats the end of that, youre not coming back. Yeah. Daves outdoor. Remember daves outdoor . Vaguely. That was from the sopranos. Oh, was it . Yes, it was. [ laughter ] i remember my father got a bust out, thats when they advance you advance credit. Theres a lot of retailers we could go through. This was not a bust out. Corvettes was a liquidation. Wow, geez. Remember that . One has the right to think retail is there forever. Including amazon. You never know. Well, first theres bricks and mortar falls before amazon. It does. You do wonder what the future holds. How much does he pay his workers this that Assembly Line . You mean in the warehouses . Fulfillment centers . I got that from your piece. 13 an hour sometimes. But in rural area where there are no jobs created. Eventually when we get to a. I. And those kinds of jobs and increases in robotics you wonder how many people will be in a fulfillment center. I know the music is on means we have to cut away, but toipt ask you when you sat down with bezos for your special, was he he did not sit down. Its his right to refuse. Oh, well, thats a horse of a different color. A regret ill always have. Hope he shares it. Up next cramers mad dash, countdown to the opening bell and another look at futures. We are set up for a lower open this morning. A lot more squawk on the street right ahead. A good car has to maneuver quickly. Thats also true of a good car company. People have always bought cars. But we saw an opportunity in sharing cars. So we moved fast and launched car2go in 29 cities, all around the world. Doing that required dozens of data centers, designed for speed and performance. We built our business on the ibm cloud. Because thats what the ibm cloud is built for. We built our business on the ibm cloud. You wouldnt take medicine without checking the side effects. Hey honey. Huh. The good news is my hypertension is gone. So why would you invest without checking brokercheck . Check your broker with brokercheck. About six or so minutes until we get an opening bell for this wednesday june 1st, beginning of a new month, jim. Unbelievable. It is. Summer is going by already. Lets get to a whole foods in mad dash. Okay. When that last quarter reported it was a definite uptick, but analysts chose to ignore it. Credit suisse neutral to buy this 365 concept i think is going to be a win, its a work in progress. They hired extension by the way which i think is doing a lot of interesting stuff in terms of Customer Relations. The comps are near bottom, theyre cutting prices. And, david, fresh market, you know they went private, fareway struggling, sprouts did bargain with the devil, with amazon, i think you do that when you need help to grow. This ones back. And people forget that this was the premium retail for a long time. And do it private label, people trust private label, they do still have to have some streamlining of management because they still have very eclectic management. This was once one of the great Growth Stocks for a period of time. Youre saying its back is a big deal, jim. I know. But i think thats taking on kroger, which i no longer am as game for, but they needed to see competition drop back. By the way, they can come in under trader joes at 365. Tr