Holiday shortened but jam packed week. Futures are lower. S p on a sevenday win streak. Europe relatively mixed, tenyear 224 income and spending in line. Case shiller in line as well. Our road map begins with the president back on twitter, reigniting harsh rhetoric with germany. It is a tech led rally. Amazon and alphabet getting near the 1,000 mark. The summer movie season, is it in trouble . The shortened Holiday Market week see if the s p will extend its win streak to eight. The president wrote we have a massive trade deficit with germany plus they pay far less than they should on nato and military. Very bad for u. S. This should change. It suggested german automakers behaving badly. Is it too to imstop being so polite on germany, jim . It is the European Union and germany is emblematic but you look this morning we dont want to raise rates and dont want to get off of life support. Germany has numbers that are extraordinarily good and i do think that the mexican buildup of cars by bmw and mercedes posted bmw we build a toon of cars is a bads in mistake. Hes saying, i wish he were more specific, they should be building their cars here and not where the big plants are in puebla, and they should be like the American Companies are committed to building here, very harsh rhetoric, not exactly helpful in terms of the market but certainly if he can try to get those plants where outside of where they are in a big ksu line because ive seen it, the plants are near where i have a place in mexico and its rather extraordinary. The president s tweets after pointed comments from Angela Merkel on sunday. Yes. She indicated more or less its time for germany and europe to go its own way without u. S. Leadership. Right. Thats what his comments followed. If there are growing tensions with germany, does it matter to the stock market . It wouldnt seem to. I dont think so. What matters to the stock market is far more of what were talking about, the s p being up endlessly but driven by the same stocks, which i think is something we have to talk about, but when i look at the attacks against germany, i think that in the end bmw and mercedes could fold like mark fields folded. Remember mark fields, he was going to build small cars in mexico, had a big plan to do it. There are mexican plants being built right now. I think hes trying to get about, mw and mercedes to commit to building more here. So far that worked with American Companies. The japanese to some degree caved. Maybe it works. Maybe some of the German Companies say we hear you, lets stop building in mexico, the next plant will be in birmingham. Wouldnt shock me. Reports out of reuters the ecb when they meet june 8th may drop their downside bias and the pledge that says fiscal stimulus if needed. Only italy is in trouble. There was a weird article about italy and russian ties that italy wants to make good with russia, italy is a troubled country in terms of politics, but the rest of, italys not come back one bit. Italy, the economy there is just bad, but some of these other places spain is pretty good, france coming back, germany good. It makes sense. When it comes to the playbook for another week obviously a shortened week, more of the same. More of the same. Well end up talking a lot about geopolitics and heightened tensions and talk about trade but none of it seems to have an impact on the stock market. No, but at least its not talking about the thing, its a diversion from the russian probe, although it seems to always entangle people again and there was Grover Norquist on arguing for grover believes in no tax whatsoever. None. He doesnt want tax on rugs. He wants rugs to be just like running, forget tax, tyou know, to nail down rugs. The marx brothers, duck suit. That went a little too deep on me for that, sorry. Its not all that deep but funny been. On grover youre right. Hes saying something will happen. Pushed back on the journal story that said the boldest ideas are on life support and he says there is consensus on all the things and well read the obit on tax reform six more time before it gets done. 2025. No, something small will get done. If not well hold out hope for 2018. It would help some of the valuations. Theres a company that you talked about on friday that is probably the strongest retailer in the country, that is alta. I mention it because the tax rate is so high. Lot of the retailers need and restaurants pay high taxes. They do, they are typically amongst the higher taxpayers. With the border adjustment tax, thats well, back to this point, norquist may have his point of view but all of the revenue raising mechanisms in tax reform are gone. Sent away. You can do a temporary without running afoul. Thats what the journal says is increasingly likely. I think the republicans want something. I think the democrats want something. First you need a budget resolution for fiscal year 18 and that gets us back to the budget presented what was it last week and a lot of the fuzzy math people say exists in terms of double counting. Thats the first battle that has to take place. Debt ceiling potentially an issue come mid dle of the summe. Apparently before the summer. Freedom caucus said they want cuts with increase in the ceiling. Dems although severely hypocritical might ask for the same thing. Would you expect that before summer recess . I guess so. He actually sunk down in his chair. So negative. Buy nvidia, thats the environment that not to be again facetious, the environment, what thrives in the environment we talked about are the tech stocks that dont need any help from the government whatsoever. Its not like all the market goes down. It just gets more narrow and we want the transports, which are up about 10 to start showing sop mojo but its all csx, Norfolk Southern and a couple others. Its individual investors as well. Nutani had a decent quarter. I moon i get that. Apple, betcoin, geez, we talked about bitcoin all weekend. Well watch maam zone and alphabet as they approach 1,000. Last week they had record highs. Every day its mcdonalds and adobe. 3m going back and forth with that company, with inga tuline. That company is a great industrial that hit a high and my hope is that more join that. But its been narrow. The industrials a lot of them have not done well. The banks have stopped entirely. Which is why the nasdaq comps up over 15 this year doubling the performance of the broader s p. Well put. Thank you. Four times the dow gained for the month. The dow is like verizon. David i look to you, verizons got to do something. Yes, they may have to do something. You say ge was a bigger disappointment than the phillies over the weekend . The phillies are the worst team in major leagues. You said six of one half dozen of the other. Ge is the worst industrial i follow in terms of what should happen and the phillies are the worst baseball team. The phillies are not going to shake up top management because they were given a bad hand. They have some time to rebuild. So does ge have that time . I dont think they do. You dont . No, i think theyre under pressure to perform. I look at that board they seem happy, david. Over the next four to six months. Things can change and quickly. David is giving us the high sign. Im just saying well watch it. Theres a reason we talk about it often, performance of the stock price last week was notable, falling below 28 again last couple of weeks. The key is ges ability to deliver on cost cutting that they have previously promised and the goal has been widened but they still are not abandoning the earnings goal. The cash flow must be positive or jeff immelt is going to go, of which is a low bar because they said it was going to be cash flow possible. We know there are plenty larger shareholders but they will be potentially vocal if certain things are not met. Thats not going to be a surprise. The question to your point on ge is, what will the boards posture be . Look at that model. They have so much related to energy, more than i thought they would. They have to get this thing closed but the cash flow, the fact that the cash flow was negative is why were talking about this. That took every idea with the ceos next five industrials i book them on their money and they were, lets say people were pretty aghast and when you go back and forth they said dont worry, ge said the orders are good but there has to be cash flow. You talk about Deutsche Bank sell, saying they are cash constrained and that made me feel like the dividend, which i own ge personally, and if the dividend which is 3. 5 , the Deutsche Bank is basically its cockroaches and spam because its thermonuclear war coming are coming for the dividend. Those survive. To your points and carls as well about the performance of the dow, verizons yield is 5. 1 . The cash flow is prodigious and theyll probably go out and figure out a way to buy something. Back to watching the health of dividends and big industrials . No, just that one. The rest are really, really good. Thats unfair to bring up the ge thing, too negative. Way too negative. Its completely Different Company than it was ten years ago. When we see a good cash flow number this quarter and things will get back on track. They have to get back on track. I want a transcript of what he said in the last three minutes. One thing about cash flow and what are you the cash flow is negative but the cash flow would be positive, okay . All right. I was setting a low bar and then jumping over it. Okay. Its like olympic pole vault, setting it at six feet. Youre not being completely inconsistent. Just somewhat inconsistent. Sometimes that happens. When we come back disney leading the pack during a disappointing memorial day weekend for hollywood. Well talk about why. Look at the premarket despite all the worries we mentioned the dow is 35 points below a record close, 89 below an alltime high, something its not done since march 1st. Back in a minute. Finally. Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. 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Hollywood is off to a slow start for the simmer shall the worst memorial day weekend to are a box office since 99. Pirates of the caribbean dead men tell no tales grossed 77 million. Bay watch way major disappointment 23 million. The film cost almost 70 million to produce. Any theories as to whats going on here, jim . I dont know. Its kind of shocking because the weather in a lot of places was conducive to going to the movies. Disney has not been able to break out of this one kind of funk. Anything that takes your eye off of movies is going to bring it back to, frankly, espn, and espn is not what you want to go back to. Disney is a great longterm hold. I dont have any catalyst to make it great. There will be another movie in three weeks that will be fabulous. We sat here and ridiculed john carter and months later it was star force awakens. Disney down 6 for the month. I know, some of the classic Growth Stocks are not what people want and i dont know theres a funk over each one of these. Nike we could talk about tiger woods i dont think its relevant. Disney because of the performance of its movie, those are strong, pirates of the caribbean is not as trong in the u. S. Because of concerns about cord cutting and the latest numbers we got over the last few weeks indicating what went on during the First Quarter and how many people really did disconnect in full, not even taking the over the top packages that are starting to proliferate but choosing just to go without entirely. I think theres a lot of companies that are like disney no, real catalyst. Were seeing valuation downgrade. I saw a downgrade of intuitive. These are the winners and the money keeps going toward them. I look at disney and i hate to say its resting. Sounds like its a human being but its kind of just consolidating after that move from 93 to back to our earlier conversation, apple is up 32 , facebook up 32 , amazon is up 33 , yahoo up 31 , alibaba is up 44 . What is your point . Havent these already made their moves . What year can you expect in these are the biggest Cap Companies in the country with enormous accretions of Market Capital for three months. I dont have a catalyst for them. Five months now. They move so much. Amazon the numbers are probably too low. Lets look at alphabet. The piece about last week its worth 70 billion i think thats too low given the fact everyone else is consolidates and when ford threw in the white towel that was an example you cant go against wamo. Doesnt the studio business fit into your stay at home thesis . Very much so. Movie numbers blamed on gasoline prices ill stay at home, thanks. Its funny. Take two, if you look at take two stock the stock is at 77, why . Because the esports phenomena inside they own the nba, own every team in the nba for esports. Look at take two. Activision blizzard second last performer after vertex, only down last year because people thought the drug didnt work. Dominos move is insane. Netflix, these are stay at home. This stay at home thesis is so strong that if you go over the best buy quarter which was remarkable, it was about connected home, they even invoked the old days when they used to do the movie theaters. Right but people were going out to best buy to buy the stuff so they can stay home. Well thats true. Yes. Thats true. That is true. Thats a prodigious thesis youre coming up. He tried to get me with prodigious. How about wanes stock, is that part of it . I have no idea. I rest my case. Well get kramcramers mad d on the other start of the break. More squawk on the street straight ahead. Clouds cant connect . Michael, can we get this data to. . Look at me. Look at me. Look at me. You used to be the yes guy. What happened to that guy . Legacy technology can handcuff any company. But yes is here. So, youre saying we can cut delivery time . Yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Rumor confirmed. Theyre playing. What . We gotta go. Where . San francisco. When . Friday. We gotta go. [ tires screech ] any airline. Any hotel. Any time. Go where you want, when you want with no blackout dates. [ muffled music coming from club. Blue monday by new order. Cheers. ] [ music and cheers get louder ] the travel rewards credit card from bank of america. Its travel, better connected. Greg almon. Tim seymour is in a band this weekend we were at john scotts, i was begging to hear eddie vetter, no devoted to the almon brothers. It was the right thing to do. Seven minutes until we get started trading, tuesday, but first trading session, first mad dash. A real interesting call out of Morgan Stanley raising numbers from micron. Why is this important . The pricing remains robust for d ramps. Lot of felt they were about to roll over, au contrare. This is a stumbling block to profitability. Why dont they . Theres not enough supply. The new version of d ramps are harder to be able to you cant just build a plant like its gypsum board. Theyre too hard. I like this call but when they do come up with a plant that makes the additional d ram, thats what Morgan Stanley was thinking. R. G. Is implot the spud stud. You he showing tremendous youre agile today. Thank you. Youre yankee like. Its not just planting a crop of potatoes and having them come up. Its more complicated. Wesson was sold to j. M. Smuck smuckers, speaking of fries, oil. Been to mcdonalds lately . No. Why is that stock at 150 . I do not know. Not just clean bathrooms. Great products. Wendys doing great, red robin gourmet, i got a coupon, that thing is hitting it out of the park. All right. Well keep an eye on all those stock. Opening bell a few minutes away. Stay with us on squawk on the street. Their experience is coveted. Their leadership is instinctive. Theyre experts in things you havent heard of. Researchers of technologies that one day you will. Some call them the best of the best. Some call them veterans. We call them our team. Steve, other than making me move stuff, im here at the Td Ameritrade trader offices. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in just under two minutes. Busy week headed our way. Jobs numbers, auto sales. We already got income and spending and the pce deflator, so were hoping good signals on the consumer. Autos that would be a godsend out of nowhere. Carmax, auto nation those numbers are looking bet eter. Everything is overhung from the notion of tesla and uber. Thoughts go out to travis for loss of his mom. Geez that was terrible. Travis is kind of a wild man but wow. I feel