Does the gop have the votes . What does it mean for the agenda . Starbucks Howard Schultz on with jim last night. And eight are arrested as isis claims responsibility. First up, wall street keeping an eye on wall street today. The president lobbying hard for the gop Health Reform bill ahead of a critical house vote. Rules Committee Gavels last night without any timing. The house gop delaying a 9 00 a. M. Meeting right now. Its going to be a long day. Yeah. Look, i think that the t. A. R. P. Comparison if we remember t. A. R. P. Goes down the first time and then looks like all heck breaks loose and then t. A. R. P. Again. This is like a mini t. A. R. P. To me. I think theyre going to have to come up with something. Im looking at it from the corporate way because thats all i can really add. I know the hmos, the big public hmos so important to the system they dont want to be in this thing anymore. You may think that you could either vote yes for this ryan plan, or you can keep the obamacare, but im telling you that obamacare regardless of what trumps saying. Im looking at the companies, companies dont want to be involved. Centene want to be involved is a very good company. If you dont have any competition, then you dont agree with the idea that it is in a way collapsing on itself . I agree with the idea that if you believe that the hmos that are publicly traded are integral to competition, which ive seen all my life as an employer and ive been an employer in other businesses, without that competition, then you can truly not afford to have Health Care Without it wrecking your business. So you do need these players. And im not being political. Im being someone whos employed 300 people, employed 50 people, employed 10 people. If you dont have competition, you just cant afford to do business. I think that people should recognize its just a real way it works in the world. I wish it didnt. San tetellis going to talk kevin brady later this afternoon. Some of the tweaks theyre talking about, hospitalization, drugs, newborn care, the question is obviously it appeals to some of the Freedom Caucus. Does it cost them moderate votes . I would imagine that does. I think that what people want is kind of a uniform policy that makes it so that some people cant you know, that hospitals get paid. If you remember before this what the issue was whether the hospitals were really bearing the brunt. And then once this passed, the hospitals stocks rallied. Again, i want to come at it from the point of view of companies. I dont want people to think im being political. Im just telling you the hospitals were the ones being stiffed and they were in trouble before this. Drug Companies People were concerned about maybe there was going to be a single payer and it didnt happen. Drug companies rallied. So just keep in mind that the stocks tell you more than the than washington does. Yes. Goldmans out today. Interesting youre hearing a little bit more of the spin. People understand the passage whether its the house or the senate, its a long road still for health care. Yes. Will there be a point where the Administration Sets it aside to focus on tax reform . Goldman has an idea. Theyd be surprised if in fact it gets too murky they just dont bounce to another runway on taxes. Thats what Mitch Mcconnell said yesterday and ive got to tell you senator mcconnell, im sorry. That would be the winwin so to speak. Because it is so clear that tax reform is what drove a lot of the stock down. Can i just say tax reform is filled with merck because border tax, no tax, individual versus nonindividual, all you want is repatriation because that was a simple one. Take the money and run. Please. How about yesterdays action and the stability today . I think yesterday was a win for the bulls. I always feel this is a very i understand ford by the way preannouncing. I understand this is very complicated because real life should never i should never put real life behind stocks, but there was a terrible terrorist incident yesterday. And yet stocks shrugged that off. Stoc stocks slugged off the idea the tenyear is still at 2. 40. You could argue perhaps they benefitted from the idea that the House Intelligence Committee said there may be some truth to what President Trump says about wiretaps. But most importantly oil went down from 70 cents to being down ten. These are all the components. I know wilfred frost went back and forth, he was saying some of the things i was saying last night which is if you just focus on the companies, you really would be using these dips as opportunities to buy because weve had far more companies with better than expected earnings. I dont want to get sidetracked here. And you have them every day. I mean, accensure, but again, the earnings, he earnings, earn. Pvh rather remarkable quarter. Right. You mentioned nunes and adam schiff and manafort and the drip, drip on that. The president in time today with a fascinating interview. Is that all still removed from for our concerns, for Business Concerns . Not if comey, fbi chairman comey, he seems to have you know, the comey i knew when he was at the u. S. Attorneys office, he was not a showman. I dont mean to be too derogatory here, but he says things if i were the head of the fbi i would be more tight lipped because i keep thinking about what happened with Hillary Clinton. You know, you had, wow, im really worried and then no. And will that be a replay here . A lot of people are saying to me this is going to be a replay of saturday night massacre which i only remember because im so darn old where president nixon decided everybody didnt like him was gone. So, i mean, be in mind that would be the situation where it would impact the market. Right. Comey fired on saturday night, which i know that sounds outrageous except for those of us who were watching it unfold with nixon and said, well, this is the republic. The republic. Yeah. Lets touch base on the london story today. We want to bring you up to speed. Isis did claim responsibility for the deadly terror attack in london. Our William Marks has the latest. Eight arrests to individuals some way linked to this attack. Prime minister theresa may speaking a few moments ago in the house of commons behind me said there was no particular intelligence that led to an increased threat level. Lets have a lesson. The threat level to the uk has been set at severe, meaning attack is highly likely for some time. This is the second highest threat level. The highest level, critical, means there is specific intelligence that an attack is imminent. As there is no such intelligence, the independent joint Terrorism Analysis Center has decided that the threat level will not change in the light of yesterdays attack. Prime minister theresa may saying the individual responsible for the attack yesterday was british born. He has historically been investigated by britishs domestic security services, Islamic State claiming over the last hour or so that he was a soldier for i. S. Willem marx in london, we appreciate that very much. There will be a candle light vigil in trafalger square. By the way, we see just a conflate money with life, ford did preannounce to the downside. I think thats important because a lot of people have been hanging their hat on the airlines and the autos being doing better. These are two key groups. The airlines kind of fell apart and now the auto companies. Were going to get up to speed. Warning season is upon us. Yes, it is. Few and far away, mark fields theyve been doing a good job but theyve missed for multiple quarters. Well get to con agra, a lot of retail calls today. Pvh of course with jim last night, in addition to Howard Schultz sending the message as he gets ready to pass the ceo baton at starbucks, youll want to hear what he told jim. Also ahead of that vote on Health Reform, house ways and Means Committee chairman kevin brady making one more push. My favorite stat of the morning is the nasdaqs up five out of six, but its down 35 points in that stretch because that one day was not good. Really interesting. More squawk on the street in a minute. Alpha seems more elusive today. Is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential this is my new alert system for whenever anything happens in the market. But thinkorswim already lets you create custom alerts for all the things that are important to you. I guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. 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. Welcome back. Were taking stock of fords preannouncement here. Looks like theyre blaming three things essentially, jim. Higher costs. Right. Including commodities, warranty, investments in emerging opportunities. We know what that means. Lower volume on mostly fleet and then forex. Yeah, this is kind of really a parade of horribles. I noticed driving gm down. Gm is getting rid of europe. Ford has had problems in some of these if its not latin america, then its europe. And they go back and forth. They do trade and hedge on their materials, so that is interesting about the commodities because that may mean they got the commodities wrong. Dont forget steel has risen in costs because of our tariffs in our country. Emerging opportunities could always be positive because you dont know whether theyre spending money to try to be in some markets they havent been. Nothing here about the f150. Nothing here about suvs, which are so lucrative. But i do want to point out that ford is only been indicative of ford. I think people really have to recognize that. We are pointing out that mark fields spent a lot of time with the president , that doesnt necessarily mean he shouldnt be on the assembly line. But ford has been such an underperformer in the group that you begin to question why cant they get it more right. Now, they dont have enough china. Gm moved into china very aggressively. Ford has not. If you want to sell all these stocks off of ford, then i will tell you that im not a huge fan of gm, but i would buy it. Really . Yes, i would. I would buy gm. Cashins been talking about some of the comments out of ally this week and last regarding auto financing and so forth. You know, i want to be clear that the only bubble that i see is in student loan. You cant afford to lose your car because you lose your job. Even during 20082009 people gave up the keys to their house before they gave up their car. Because when you give up your car, you give up your job. And you got to put dinner on the table. So lets not confuse things. Student loan is just someone has to deal with that. Thats obscene. Thats keeping our whole country back. Our phil lebeau joins us on the phone. Phil, i know youve seen this. We were just talking about not a specific reference to demand, at least consumer demand. No. And what stands out about this lower guidance is the reference to a higher cost in part due to investments in emerging opportunities. That is code, so to speak, for investment in autonomous drive vehicle, investment in electric vehicles and the Huge Investment that ford is making essentially going it alone separate from the rest of the industry in terms of saying we believe that the future comes to us eventually with autonomous drive vehicles and electric vehicles and we want to control our destiny there. Thats a different playbook than you seeing from the other automakers who are taking much more of a collaborative effort when it comes to working with companies such as mobileye and saying, okay, what can we do, where is this technology coming from. Ford has made Big Investments in terms of saying we want to develop a lot of the technology on our own. And this is what you get, guys, when you have these types of investments. So i think thats one of the areas thats going to get a lot of attention from investors today. Boy, phil, youre so right. I went out when i went out to Silicon Valley to see what ford was doing, youre so right, phil. Theyre trying to do it on their own, spending a fortune. The engagement numbers for them arent as good as wamo, owned by alphabet google, the cost of these things and the cost of the chips is so high that you really even have 2,000 chips in a car, you know, youre talking about 2 million bytes, youre so right. Its so expensive, phil, unless you do it with a partner, i think. Right. Jim, the big concern is what happens if you do see a slowdown in consumer demand lets say here in the United States over the next three years . Nobodys forecasting that, but if that comes, the United States is basically carrying the water for ford right now. This is where theyre making their money. Its not like these guys are warning theyre going to lose money this quarter. Theyre still making a lot of money. But if the United States ever starts to really slow down, then youre going to see people say yikes can you afford to be making these types of investments. Phil knows. Phil knows more than the 8k. There we go. When i was out there the thing that really struck me was the amount of money you need to do autonomous vehicles. Even, you know, google when they went in with wemo, they had this stock using other peoples chips. They had to make their own chips. Too expensive. Had to bring the cost of the vehicle down. Fiat has partnered with them which is google. What i hear you saying is ford at least is moving into a Huge Investment cycle regarding autonomy. Yes. Do you think most investors think of the industry that way yet . They ought to be. Phil, the different ways to go about autonomous vehicles, phil, some guys doing it smarter than others, wouldnt you say . I would agree, jim. Theyre not the only ones working with wamo. I think there is really twoprong approach here. There is the ford approach, go it your own. Or theres the approach you see from a number of automakers including fiat, including general motors, which is were going to do a lot of our investment and research on our own, but were not going it completely alone. We cant afford that nor do we think thats probably the smartest way to go given how quickly this technologys developing. Phil, last week one of the Big Questions of the day was who has the leverage right now on autonomy . Is it a tech Silicon Valley story or a detroit big three story . I think its tech Silicon Valley. They dont have all the answers. Its not like they can develop vehicles on their own, nor do they want to develop vehicles on their own, but if you said who has the leverage i would say it errs on the side of the Tech Community and Silicon Valley. Tough to compete with uber and tesla there is a stat, a statistic people have to recognize California Department of Motor Vehicles keeps whats known as the engagement stat, which has how many times do you have to disengage and have a human take over. If you go and look at their website, you will see waymo is in the stratus fear in terms of getting this right. And everybody else is very, very low including ford. So fords go it alone strategy, phil, may not even be working as well as waymo, which is all fiat. They have 100 vehicles they did in december. I think numbers were very good. Youre not saying this is a tilting windmills where no matter how much money they plow in they cant keep up . I am saying that i think we could talk all we want about google and this ad situation which i think will be resolved rather quickly by google, but the main thing to recognize is that waymos figured it out. And driven in a waymo car, ive got to tell you, their cost, their disengagement, google will be an Autonomous Car play and a Search Company in three years. Phil, well come back to you on this one. Thanks for coming to the phone. Our phil lebeau. Well get cramers mad dash and opening bell in a few minutes. Futures, well see if they reflect any of the ford uncertainty. More squawk on the street from the nyse in a minute. Hello, my name is watson. Our first name has always been american. At at t, we employ more than 200,000 people with goodpaying jobs. Connecting consumers and budiness through mobile, internet, and entertainment. At t invests more into americas economy than any other public company. Bringing americans more choices, more freedom, and entertainment everywhere. No company is more invested in americas future than at t. Just about seven minutes until the opening bell. Lets get jims mad dash. Call on fireeye. Yes, our viewers love Cyber Security. Who can blame them . Its an industry we cant find enough workers in Cyber Security because its just so much penetration of all different enterprises. Okay. Fireeye which had been one off investigative after the incident, but theyre trying to do far more than that. Goes from sell to buy at Goldman Sachs. Now, remember, this stock was at 54, it was down to 11. Goldman rarely does that unless theres either an acceleration of earnings or who knows, but they also take down proofpoint hold to sell. I love talking to these guys because its such a fluid area, proofpoint is email security and theyve had the run they run the table here because obviously lots of people know that email has been a terrible way they get in through email and then