President trump staying on his manufacturing message, hosting Auto Industry leaders for a breakfast at the white house this hour. Well take you there live. Plus, an eye on earnings. Five dow components reporting results this morning, including verizon, j j and dupont. And alibaba reporting Quarterly Earnings and raising its guidance. How investments, cloud and Digital Media are paying off for the chinese giant. Yesterday at this time, Industry Leaders were meeting with the president. Nowceos of auto makers. The president tweeted, will be meeting at 9 00 with automobile executives concerning jobs in america. I want plants to be built here for cars sold here. Big piece on the cover of the journal this morning. Auto makers in the cross hairs. Mark fields of ford saying hes reread part of the deal to better understand the president. Theyve assembled task forces to monitor the president s twitter account. They should monitor phil lebeaus twitter. His note today is the one that has a lot of people talking. Kps wi 43 of autos imported, the president wants production back here. I found that, and maybe others did, i know joe did, to be a shocking stat statistic. 43 are made here. I understand why theres predilection to look into this. Now a lot of the cars that are sold here are not necessarily made by the big three. Yeah. I know. 43 , right. Toyota thats made in japan or a honda or a hyundai or an audi or a mercedes or a bmw. Many have factories in the universi United States. Or nissan. 500,000 cars being built in mexico, infrastructu infrastructure, how about a new airport, and i point out we are a free nation that has lower price cars because we allow a lot of imports in. These are not like, wow, why arent they making more here . If you bought a car my daughter bought a ford recently. At ganley, it was 13,000. It was a used ford with few miles on it. It doesnt cost 13,000 if 100 of the cars are made here. It just doesnt. No way. You agree, right . Yes. Apparently if youre going to be importing a foreignmade automobile that is manufactured overseas, youre going to be paying more for that, too. In china, when theyre buying their mercedes or bmws, theyre paying more than we are. Yes. Gm, i dont know what the price is, it is a huge seller of cars in china. I just put out this. I thought phils accurate i dont think there is alternative facts to phil. Phil is facts. I think that thats a number where i think the president says, thats an easy industry to kind of make some jawboning with. I think im surprised he doesnt jawbone with the companies that are really building a lot of factories in mexico, to take advantage of it, which tend to be toyota and nissan, mercedesbenz and i mean. Yeah. Meanwhile, the market itself now has traded sideways for longer than it rallied after the election. Isnt that something . So people wonder whether this trump rally, as we refer to it, is in the past, still going on . What do you think . Look, were in earnings. If youre looking at a trump rally and you look at j j which didnt guide well, i thought it was a good quarter, verizon spent too much money to try to compete against tmobile and against sprint. Those stocks come down and color the dow. Then the next thing you know, people question the trump rally. What im looking at is Interest Rates have went lower. Oil went lower. Integral to a trump rally. Then i say, dont lose heart but understand were in an earnings period. Whether trump or no trump not playing bridge here but in the end, the numbers are controlling. Proctor had a great quarter. Ibm had a better than expected quarter though the bears didnt want to say it was. Mcdonalds was a Conference Call from hell. I look and were back into earnings. You want to focus on washington. I have to focus on earnings. Some of the quarters were just okay. The thing i will say about the guys who are visiting the white house today is theyre spending time thinking about this idea of bringing jobs back, if that is possible, and what the new world is going to look like, but theyre also thinking about three to five years from now when theyll be making a autonomous vehicles. Either fully or largely autonomous vehicles. Yes. Sergio spends a lot of time on that, i can guarantee you. In a world like that, where driving is such an incredibly important profession, in so many states for so many people, i wonder what that means for jobs. Yeah, you can bring some jobs back here to make the automobiles that are going to then be autonomous in the not too distant future thatll put a lot of people to work. Ill push back. I had Skywork Solutions on last night, a stock that is up one of the best in the s p. What are they doing . Chips in autonomous cars. Yes, there is a whoozer maybe in how many cars are bought, but there is a win in the makeup of the car for Many American companies. Is that resulting in more employment, when more chips are coming off the line . It is not clear but maybe. Four big factories one in mexico but a lot of the chips are more than just credit krel phones. The intellectual content in cars are up. The need for 5g to make it run ten years from now. 100 billion investment, if not more. Ill challenge that, too. Im in a challenge mode. The ceo of skyworks was saying, griffin, 2020 for 5g. Thatll be a big year. Fields said it is their target for cars with no accelerator or steering wheel. I dont believe 5g. Jim, the amount of money that needs to be spent to make 5g workable is enormous. I hope so. Enormous. Thatd be great for america. 2 million cell sites at 50,000 a piece or whatever it is. Im trying to be a visionary. Not 2020. Okay. Based on different conversations ive had. The day is going to be a lot more that be the ceo meeting. We have votes on carson, chow and ross, looking for executive orders. The times is reporting that comey will stay. Lets get to the white house. Out here on the white house north lawn looking for the auto maker ceos. It is after 9 00 on the east coast here. Presumably, they zigged when we zagged and theyre already in the building. We have not seen them yet this morning. You mentioned that tweet from the president this morning. Here it is again. The president tweeting out, in the 6 00 a. M. Hour, well be meeting at 9 00 a. M. With top executives concerning jobs in america. I want new plants to be built here for cars sold here. The attendee list for the meeting, we are told, mary of General Motors, mark fields of ford and Sergio Marchionne of Fiat Chrysler. Presumably, all will be talking about the issue donald trump tweeted about this morning. Presumably, theyll be figuring out how to deal with the tweeter in chief. This is something new in the arsenal of the presidency. It is a shortterm stick, you know, that the bully pulpit can use in this day and age that we havent seen before. Were going to watch and see what this meeting brings today. Well wait and see what the ceos have to say on the north lawn, if anything, when they come out of the meeting with President Trump at 9 00, guys. Well be on the lookout for that tape. Going to you soon. Appreciate that. Listen and think about the cost of all this. A. K. Steel reported a remarkably good number. Why . Tariffs. What do you hear about from companies that use a lot of steel . Price of steel going higher. If they raise the price of steel, theyll raise the price of the car. There are consequences to tariffs and protectionism. We are only talking about the good things, which is maybe a factory here or there. Ak steel, i say to myself, wow, there you go. Cut off what isnt fair but you raise the price of companies that use a lot of steel. We cannot overlook that. It is not coming up in washington. Grover norquist this morning, becky asked him whether or not this border the tariff and border adjustments is a tax cut he can live with. He is looking at the net effect. Obviously, pointing out there are going to be winners and losers. Look, if you dont have a job, you cant buy a car, all right . If you have a job, you can buy a car. You know that the car zboing is to cost more. The favorite class of the people who voted the president state by state, and i understand. But remember, all of us who buy cars are going to be impacted by this. The steel numbers you see with u. S. Steel, this is what happens with protectionism. Thats why you dont have it. Dont forget, the border tax adjustment is a very important revenue producer for the blueprint we have on tax reform. True. Otherwise, you blow the deficit out of the water. Right. In order to get the republicans on board who are fiscal consumers. Correct. Maybe this is in the beaweed but when i look at the companies recording better quarters, it is because the obama government got involved. Alcoa, 20 is owned. Kle kleinfeld was at the meeting yesterday. Obama looked at that. Do we want the price of aluminum to go up if were making f150s and were mark fields . No. He wants some way to get a cost break so people arent outpriced for the f150. It is more complicated than saying, you have to build here. Yes, it is. Well get to all of them. J j, dupont, verizon, 3m, lockheed. Well stay on top of the president s meeting with the Auto Industry, of course. When the ceos come out, try to get sound from them. Later on, reaction from bob n n nardn nardelli and what the Supreme Court decision is doing to the pound today. More squawk on the street in a moment. Ur. To win, every millisecond matters. Both on the track and thousands of miles away. 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Apparently, things continue to move ahead. The cfo was a guest earlier on cnbc and indicated they were in exclusivity. You may not see a deal in the next few days but at least it hasnt been derailed. Because some had been expecting it would have been announced prior to j js earnings. I think people are being snap judgment oriented if that is the case. They couldnt be as clear about the guidance. The quarter was fine. I like the pharmaceutical growth. I think, sitting next to the president yesterday, delivered on pharma growth, alex gorsky. The cost savings of dupont, something the ceo knows how to do better than anybody. He moved the merger talk to the first half. We were hoping it would be this quarter. Suddenly, you say, you cant forecast it because when did we know the steel is going to close . Ive been spectacle about this deal. You have. And more since the president was elected. Theres a lot of ag involved. Although, remember, monseno and beyer visited with trump and discussed that they were keeping jobs here and add jobs. Thats better. The deal, the judgment on dupont may lead to mthe eu, though it s not the same. Green and livers assured me the deal will be done. I think overtime, when you see deals drag, alllike wall green rite aid, it doesnt give you reassurance. The longer it goes, the less likely. That is a fair statement. Yahoo and verizon . That was actually people should be grateful it is done. The usage numbers from yahoo which ended up being good would be presented to verizon. They were. It seems the deal is most likely going to happen. Right. I think we have some comment here from verizon on their call. They said, pending yahoo acquisition would increase their opportunity to scale in the Digital Media space. And were working with yahoo to assess the impact of the breaches. Weve not reached any final conclusions. Is what they are saying at this point. What did you think about the fact it looks like they were promotional, verizon . Yeah. Also, verizon did not have a good quarter. Tmobile up. Headlines from the meeting with the auto ceos, telling the Auto Industry executives the u. S. Must have a very big push to build auto plants and other facilities in america. Cite a pledge to cut taxation since environmentalism is out of control. Yup. Couple others coming in. Well get to those as they come in. Interesting. Figures out last night that facilities x homes are at the oldest theyve been in the country, i think since the 60s. Wow. Commercial facilities on average. It is interesting because there is a perspective that if you got that money back, the companies would not use it to rebuild. Maybe thats a reason to rebuild. You know what . When cars were average car was tenure on the road, you have to buy more. Lasted 11, 12 years. It used to last more. It is important. If you writeoff Capital Investment, why wouldnt you invest more . Bring the money back. Larry cutlow would argue that. Not trying to endorse or attack but there is a sense among the auto manufacturers that i deal with in mexico that they have a very, lets say, less rigorous approach to pollution in mexico. When you see a headline like that, environmentialism, does that mean the cap standards for the auto makers. For example, tesla has benefitted from it, you could argue, given how far it goes. Tesla is in every meeting. Is there if you roll that back and say your fleet doesnt have to have the same mileage right. You have something there. We have to find out more. He tweeted this morning, other than the auto thing . Its all we have. The last time he tweeted was the 9 00 meeting. President trump, give us a little more. If it is environmental, meaning it is easier to build cars in dirty places, you bet it is. We have stringent control. We still havent gotten to so many things, carl. The verizon numbers are worth hitting again. Baba, of course. Oscar nominations. A lot going on todayme. Well get to all of it. The mad dash. Opening bell in ten minutes. Dont no anywhere. Yesterday, you saw the president signing the executive orders. Mostly related to trade. We are expecting, according to nbc news, others, guys, that would advance both the keystone and dakota pipelines today, per a senior white house official, as the orders are flying fast and furious on day two of the full business week. A lot of talk about the number of jobs created. Obviously, people dont recognize, uniquely, people in the regulations various regulations are federal, and this will matter. It will matter in terms of accelerating. You can get the regulators to approve. I was doing work on a particular cove theres a jordan cove, a plant in oregon, and it was stopped by the feds. It was going to be a huge number of jobs. This is the there is a surplus of natural gas, they were going to do liquefied gas in oregon. It was killed by the feds. He doesnt want to see that. This would be a job creator. Obviously, people should recognize a lot of crude goes by rail. This is the way to have it not go by rail. I would also bring up a lot of the crude that people dont like, the heavy crude from canada. We have refineries to meet that, but just understand that i think that this is the change that the Pipeline Companies said over and over, we get this, we are going to make more money, including enterprise. Now, there was an Energy Secretary on the board. Yes. Rick perry. Yes. Likes the the president now. Right. He favors keeping the department of energy. Right. Hes running it, so it is good he keeps it, right . I suppose. Instead of putting it out of business. Made a mistake. I think he is an honorable man he said he made a mistake, but it is a pipeline he is intimate with. We are expecting this tape in the meeting in about a minute and a half. Stay with us. Meanwhile, reuters runs a piece that Fund Managers are betting the aca does not change much. They cite gamco and others from managers buying hospitals, insurers, biotech on the thesis. Buy it . You shouldnt buy hospitals they believe minimal change to the act. I think it is wrong. I mean, this is like an sat game. Prices to hospitals as pruitt is to regulation. I mean, these are no. I mean, wow, thats wrong. Thats wrong. If you want to see a more thorough, rigorous analysis, go to the dean of the group and theyll explain why the hospitals tend not to pay. You go back to the days where hospitals have a lot of not paying. I would go against it. Other news, as well, of course, dthe etna humana deal. Expectations are given anthem and sigma was seen as having less of an opportunity to get through the review by a judge, that that one will also be blocked. Leaving all the players in tact of the big five. Big five, right . Here is the president moments ago. Thats right. I want to thank you all for being here. We have a very big push on to have auto plants and other plants, many other plants. Youre not being singled out, believe me. Mary, i promise. But have a lot of plants from a lot of different items built in the United States. And it is happening. It is happening bigly. We had whirlpool up yesterday. Talking about big construction of facilities. And it is not the construction i want, although it brings jobs, it is the longterm jobs were looking for. Were bringing manufacturing back to the United States bigly. Were reducing taxes substantially, and were reducing unnecessary regulations. We want regulations but we want real regulations that mean something. Mark and i were together yesterday, and i think we understand that. Were going to make the process much more simple for the Auto Companies and for everybody else that wants to do business in the United States. I think youre going to find us to be from very inhospitable to extremely. Well be one of the most friendly countries. Now, it is not. I have friends that want to build in the United States and go many, many years and cant get their environmental permit over something nobody ever hear