Transcripts For CNBC Squawk On The Street 20170622 : vimarsa

Half hour from now it looks likes the s p may be down ever so slightly. European markets were in the red last time i look thank you for spain and for italy, maybe one day well even get a look at the bond market. The tenyear note yield is important right now, particularly given that 2. 14. Wow. Wasnt it supposed to be a 3. 14 yes, i think they were talking around june, at least 3. Not the case a big story were going to talk a good deal more about is oil. Lets get to our road map and start you out with some stocks oracle, shares are up sharply on earnings well look at whats moving that stock. Later, by the way well have an sclouf on interview with mark hurd they want to take a major stake in American Airlines, what is that all about . Smoke em peace pipe . Well try to figure that out to the best we can by the way, what as to yim cramer and Homer Simpson have in common adobes ceo shows us. Hes game. Hes got a demo of its newest product. I want to see that. We have so much to talk about, its scary. Lets start off with oracle. They are up in the premarket, on track to open at a record high for this company after it posted better than expected quarterly results. It got a bit lift from the Cloud Computing business, trying to go into competition with the likes of microsoft p. Yep. And google or alphabet as we like to call it, mark hurd saying it was the best quarter ever heard dont want to miss that. What are your thoughts, jim . Eight for nine, david eight for nine nine analysts on the conference call, eight of them say thats the highest ratio i have seen in 2017, which makes it so that you have to understand they delivered. Now, david, the it makes my skin crawl. There are two qualities i always appreciate on a call that you never get anymore confidence and hue brings. The confidence and hubris, it was deserving, because these guys have pulled off the battle ship that ibm cant do yet they went to the cloud with remarkable growth. Were talking about 60 plus, the clients that they racked up this quarter were amazing, and its not over, as mark hurd, who will be our guest did we mention hes going to be our guest . You speaker it hurd. But i pronounce it with a philadelphia accent. Put quotes around extremely underline it Larry Ellison did some trash talk at salesforce, and safra katz, who has met with the president , just joy, she is such a hitter its so great to hear her say, we are at the beginning of our breakout david, this is being rerated right in front ofus from value to growth. Its done with the problems with the incumbency of the numbers dropping off they barely, barely dropped off. I thought the call was pure joy, david, a victory lap callings but it may be the first of a dynasty. I got to tell you will they play ode to joy during the call . They should have, yeah. Lets listen to ellison taking a shot at your man. He had to do that he was benioffs mentor. Last fiscal year we sold more than 2 billion in cloud annually recurring revenue this is the second year in a row that we have sold more cloud a. R. R. Than salesforce. Com we are well on our way to passing them, becoming number one in the enterprise sas market. There it is. He has more than just Customer Relations he has enterprise Resource Planning so hes right. We had at t earlier. At t will be expanding the relationship mark hurd was he mentioned more customers he to cut it short because there were so many customers, he didnt want the there isnt anyone, right . No one says a who are about amazon ellison says were cheaper than amazon and were better. Ellison fears no one, and remember he owns an island. He does, a large island in the state of hawaii. You the other day in a fantastic interview talked about a country, an economy that is alibaba. Those are jack maws words. Ellison wants to make it a country. Its beautiful island. And i underestimated larry at one time, therefore he doesnt like me at all, and thats okay. He has a long memory, but they surpassed it ibm has to make this transition. Thats what i wanted to ask you about. A couple nights ago you talked about i built m has not been able to do what they are doing explain that to me. They have a legacy business. We do we talk about it all the time. Ibm has the growth businesses, but when will the growth there outpace the loss thats right, the strategic empire, theyre ahead of the program, but the problem is the incumbency business, the old business is falling off rather rapidly. Rapidly. Oracles incumbency business had been falling off rapidly, but pretty much leveled off. See, both the so what are we talking about is the incumbent business . The onpremises business. Having it right there for you as opposed to using the cloud. Thats four times more expensive. So the idea was if you migrate people to the cloud youll be in a bit of trouble, because you will use some highmargin business safra katz explained how this could be a higher margin business than we thought imagine ibm has to get the margins up and not get the old business not drop off. Now, they did they did the net suite. And theres some momentses in call where hurd tries to drive he says its a conference call, i cant show you my face how terrifically netsuite does, but these guys are unlike anybody else on the call they were confident even when things werent as strong the confidence is based on what i regard as a level of superiority about that companys longterm view ibm is the place a bit more from listen were an Iconic Company oracle has always played were the scrapiest company, but Larry Ellison theyre also very tough i would never cross safra. I remember her in the people soft acquisition, netsuite is another one, where they say were not going to pay more, and forget it. Were not going to pay more, and they won nobody thought they would. They won. Which does at least bring to mind qualcomm. Well sew how it ends. Were not tendering and that may be the case there, though the belief was they were paying too also for and they got it. By the way now theyre saying its going well. Its dont fabulously mark hurd, he has a total philosophy against his enemies you know what toto is for. The dog from the wizard of oz . No, turn off the oxygen they let benioff got ahead, but hes totoing all the other opponents. Will you be on the call . I will be listening i wont be asking questions. Maybe you can pass it on. Ask him about toto. I will. Maybe hes actually heard it. Hurd has heard it these are three executives, by the way, they are freight trains lets quickly wrap this up. Really . We have a lot of things. Anybody else not enough. Not enough. Why not . Because its total rerating. 66 billion in cash. How long has oracle been a value stock . How long has been it you could say arguably a decade that long yeah. You cant rate a value stock anymore. If safra is right, then shes saying its going to accelerate here this was a triumphant called i want to say congratulations. Whats with Heather Bellini . What was with her not saying congratulations . Shes out. She can take her way i was going to do a little, you know michael corleone about what happens to her now that shes not in shes out. Right. She did not say congratulations. At the end of that call salve ra is saying to mark and larry whats with bellini . Whats with bellini . Dont count on the google, alphabet and the cloud and they might not see oracle coming those who have doubted ellison like i have, were really bakley, you know what we are were simulations. Oh, no. Were not real people. As a matter of fact i am a cartoon character. That i want to see. Im a cartoon character. Thats what ellison is thinking. He put me on something look nixons enemy list. Were doing that now. Lets lee what he also did to pet, actually what adobe did to me. Were about to show you jim cramer like you have never seen before take a look. Im looking at what i regard a being the eighth wonder of the world. This is some sort of device where its actually looking at me, and its mimicking me. This is not possible. Oh, my god really we thought we would do this specially for you, jim its a new product called Character Animator using artificial intelligence. Were trying to recognize your gestures, it will track you in real time. Weve only done this for Homer Simpson, the president ial candidates and now you, because youre passionate and animated. Its mimic me, making me into a walt disney. He can create my own drawings and movies fabulous stuff. Thats a million drawings at one time this is now available to everyone theyre going to make it available. Its video david, how many drawings would that have been in the 1930s for disney it uses an nvidia chip, its real time. Look at that. No, that was just f5. F6 is a water, and its real time david, this is what the world will come to we will all be able to do this realtime at the animation, astock is going to go so much higher ashanti oryan is a genius, and this is the eighth wonder of the wobbled. We are now all able to create cartoons i just cant believe it. That was me. I was rolling my eyes. How do i do it . Real time. It just watches you. Whats it artificial its the adobe sensei it read your lips and translates it instantly not even like a gap time its sometimes, david, we need to be astonished by what Silicon Valley can create besides money. So its possible youll do the show as a cartoon . This is what ellison would do, and i dont know, he would turn off the oxygen. Your head would explode. I wasnt bad. I said that benioff was doing better anybody who says theyre doing better, theyre on a list, and you do not want to be on that list. Speaking of hostility. When we return were going to talk about Qatar Airways expressing an interest in a large, large stake in American Airlines american didnt seem too happy about it. The bigger due abu for a u. S. Telecom in 19 years, altice. And well be interviewing the ceo. If you want to be a video, its on my twitter file right know tut top david, i need i am not a simulation im a cartoon. You heard it here first. More on squawk on the street after this will you be ready when the moment turns romantic . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. And get medical help right away. So, how are things cartheyise . Youre fired [ screaming ] its time to get back on top. Were going back to villainy. So bad so good that im so bad. [ maniacal laugh ] dont try to fight the feeling of somethin thats so organic. [ pop ] despicable me 3. Rated pg. The carrier says qatar has indicated an interesting acquiring as much as 10 of american and the propose investment was unsolicited its a strange statement here. They say the ceos did speak, jim, and qatar said they thought they would purchase at least 808 million of the stock, and in a conversation between the two initiated by the Qatar Airways ceo also indicated they have an interest in acquiring as much as 10 . American is sort of making it clear, they have no interest in soliciting this. None. They dont seem particularly pleased about it, and they say it would no way change the Board Composition governians management, strategic direction, and point out that Foreign Ownership laws limit it, and if you were to pass 4. 75 , you need advance approval from the board. Theyre not going to get it the pilots are against it already. What . What is this i dont know what to make of this frankly. Parker has been the most outspoken about the unlevel playing field, really just accusing United Arab Emirates, we had them on recently, about playing unfair, they used a power grab to get gates. This is one of the oddest story i have seen. This is oil and water. They do not mix. It is really odd. But i dont know anybody at Qatar Airways to understand their rationale. This is the new thing, david, you immediately say, i create a million jobs, United Arab Emirate World Trade Center are were saying a million jobs we need to hear from doug parker, and hes outspoken. He is typically not afraid of speaking his mind. If youre out there, were happy to take a call. Where is doug im priced he hasnt emailed us hey, look, theres the guy who wont talk to me either, its Patrick Drahi he founded altice. Ill have a talk with him. Would love to sit down with Patrick Drahi, all the different ways theyve significantly expanded Free Cash Flow. Thats an important guy right there when it comes to around the world quad plays thats what they have in europe. The quad play. Hes going to sit down. All right. Drahi, well see if we can get he e weavthopening bell and mad dash as well stay with us g city . I dont miss much. Definitely not the traffic. Excuse me, doctor. The genomic data came in. Thank you. You can do that kind of analysis . Yeah, watson. I can quickly analyze millions of clinical and scientific reports to help you tailor Treatment Options for the patients genomic profile. You can do that . Even way out here . Yes. Even way out here. When this guy got a flat tire even way out here . In the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. Weve been so busy, i dont know what youre doing for the mad dash its a surprise. Im doing calvin klein, but listen matthew boss yesterday did you notice nike was up a dollar because they were talking about frater nicing with amazon . No one even talks about that, the magic of amazon almost brushes out the greatness of nikes . David we are eventually going to see a bifur cases of the companies who do badly under amazon and the company that is do well. This is one of them. Im getting tired they have big european exposure. I am getting tired of the of everyone being run over on the tracks by some pvh is a winner. Why because they have already learned how to sell in the channel. Can we say not everyone is road kill. They dont cannibalize the sales out of stores. They have really kind of shifted. The amazon road kill story, its many Empire Strikes back amazon, walmart is demanding you get off that was fascinating, get off the amazon cloud if you want our business at walmart. I am telling you Amazon Web Services better not get too cocky. Azure is doing really well who else doesnt like me oh, please, everyone likes you. Im glad weve talked a lot about cloud. Its something we have to continue to talk about. Retail, health care moving it. Were moving closer and closer to the opening bell well have it st aju if you minute from now. Stay with us on squawk on the street. Y business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. What will you create with your points . 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. There he is. The man who runs altice, coming public today, and remember those two deals . First they bought suddenlink, then they bought cablevision when operates here in the biggest metropolitan area in the country. They have about 4. 9 million customers overall, jim but its an important ipo. Were going to talk to dexter goya, who is the head of altice usa, but drahi runs a far larger empire, driven to a certainly extent by debt and significant costcutting, likes young people, not a lot of old people hypinging around. Is that true . Thats what he said. Remember mike white, hes surrounded by young people whoa, what is that . I dont really know a spirited opening we should talk maybe about hain celestial. Key operator, theyre french, dont worry, though, they are still french and well speak to dexter goya. Over at the nasdaq, the Emily K Foundation coach k was a guest earlier this morning. We want to start with hain celestial. Its a company you know well, under a cloud because of restatements. Theyre out of the collude. And they always did say, listen, there was nothing really material, and the accounting review is complete they have the blessing, and they have a forecast here of 4 to 6 growth for 2018. Thats not what i hoped for. I wanted more, but the fact is once youre out from the cloud, you can do more and they really are not that concerned about this blowout amazon to buy whole foods, you could argue it my even be good for them. Congratulations to irwin and his team for getting out of the penalty box, and i think they will be back. You do believe theyll be a Growth Company again i do. The number are not particularly good. No, theyre not i think youre paying 30 times earnings, which had irwin been on mad money,i would have asked about that, but hes not coming on mad money. Hes coming on, what, squawk on here. Squawk on the street. Hes not coming on mad money, hes coming on another show hes not on mad money. You mentioned that. I did one analyst based on 20 times trail 12month Free Cash Flow, that bias a 5 march American Airlines<\/a>, what is that all about . Smoke em peace pipe . Well try to figure that out to the best we can by the way, what as to yim cramer and Homer Simpson<\/a> have in common adobes ceo shows us. Hes game. Hes got a demo of its newest product. I want to see that. We have so much to talk about, its scary. Lets start off with oracle. They are up in the premarket, on track to open at a record high for this company after it posted better than expected quarterly results. It got a bit lift from the Cloud Computing<\/a> business, trying to go into competition with the likes of microsoft p. Yep. And google or alphabet as we like to call it, mark hurd saying it was the best quarter ever heard dont want to miss that. What are your thoughts, jim . Eight for nine, david eight for nine nine analysts on the conference call, eight of them say thats the highest ratio i have seen in 2017, which makes it so that you have to understand they delivered. Now, david, the it makes my skin crawl. There are two qualities i always appreciate on a call that you never get anymore confidence and hue brings. The confidence and hubris, it was deserving, because these guys have pulled off the battle ship that ibm cant do yet they went to the cloud with remarkable growth. Were talking about 60 plus, the clients that they racked up this quarter were amazing, and its not over, as mark hurd, who will be our guest did we mention hes going to be our guest . You speaker it hurd. But i pronounce it with a philadelphia accent. Put quotes around extremely underline it Larry Ellison<\/a> did some trash talk at salesforce, and safra katz, who has met with the president , just joy, she is such a hitter its so great to hear her say, we are at the beginning of our breakout david, this is being rerated right in front ofus from value to growth. Its done with the problems with the incumbency of the numbers dropping off they barely, barely dropped off. I thought the call was pure joy, david, a victory lap callings but it may be the first of a dynasty. I got to tell you will they play ode to joy during the call . They should have, yeah. Lets listen to ellison taking a shot at your man. He had to do that he was benioffs mentor. Last fiscal year we sold more than 2 billion in cloud annually recurring revenue this is the second year in a row that we have sold more cloud a. R. R. Than salesforce. Com we are well on our way to passing them, becoming number one in the enterprise sas market. There it is. He has more than just Customer Relations<\/a> he has enterprise Resource Planning<\/a> so hes right. We had at t earlier. At t will be expanding the relationship mark hurd was he mentioned more customers he to cut it short because there were so many customers, he didnt want the there isnt anyone, right . No one says a who are about amazon ellison says were cheaper than amazon and were better. Ellison fears no one, and remember he owns an island. He does, a large island in the state of hawaii. You the other day in a fantastic interview talked about a country, an economy that is alibaba. Those are jack maws words. Ellison wants to make it a country. Its beautiful island. And i underestimated larry at one time, therefore he doesnt like me at all, and thats okay. He has a long memory, but they surpassed it ibm has to make this transition. Thats what i wanted to ask you about. A couple nights ago you talked about i built m has not been able to do what they are doing explain that to me. They have a legacy business. We do we talk about it all the time. Ibm has the growth businesses, but when will the growth there outpace the loss thats right, the strategic empire, theyre ahead of the program, but the problem is the incumbency business, the old business is falling off rather rapidly. Rapidly. Oracles incumbency business had been falling off rapidly, but pretty much leveled off. See, both the so what are we talking about is the incumbent business . The onpremises business. Having it right there for you as opposed to using the cloud. Thats four times more expensive. So the idea was if you migrate people to the cloud youll be in a bit of trouble, because you will use some highmargin business safra katz explained how this could be a higher margin business than we thought imagine ibm has to get the margins up and not get the old business not drop off. Now, they did they did the net suite. And theres some momentses in call where hurd tries to drive he says its a conference call, i cant show you my face how terrifically netsuite does, but these guys are unlike anybody else on the call they were confident even when things werent as strong the confidence is based on what i regard as a level of superiority about that companys longterm view ibm is the place a bit more from listen were an Iconic Company<\/a> oracle has always played were the scrapiest company, but Larry Ellison<\/a> theyre also very tough i would never cross safra. I remember her in the people soft acquisition, netsuite is another one, where they say were not going to pay more, and forget it. Were not going to pay more, and they won nobody thought they would. They won. Which does at least bring to mind qualcomm. Well sew how it ends. Were not tendering and that may be the case there, though the belief was they were paying too also for and they got it. By the way now theyre saying its going well. Its dont fabulously mark hurd, he has a total philosophy against his enemies you know what toto is for. The dog from the wizard of oz . No, turn off the oxygen they let benioff got ahead, but hes totoing all the other opponents. Will you be on the call . I will be listening i wont be asking questions. Maybe you can pass it on. Ask him about toto. I will. Maybe hes actually heard it. Hurd has heard it these are three executives, by the way, they are freight trains lets quickly wrap this up. Really . We have a lot of things. Anybody else not enough. Not enough. Why not . Because its total rerating. 66 billion in cash. How long has oracle been a value stock . How long has been it you could say arguably a decade that long yeah. You cant rate a value stock anymore. If safra is right, then shes saying its going to accelerate here this was a triumphant called i want to say congratulations. Whats with Heather Bellini<\/a> . What was with her not saying congratulations . Shes out. She can take her way i was going to do a little, you know michael corleone about what happens to her now that shes not in shes out. Right. She did not say congratulations. At the end of that call salve ra is saying to mark and larry whats with bellini . Whats with bellini . Dont count on the google, alphabet and the cloud and they might not see oracle coming those who have doubted ellison like i have, were really bakley, you know what we are were simulations. Oh, no. Were not real people. As a matter of fact i am a cartoon character. That i want to see. Im a cartoon character. Thats what ellison is thinking. He put me on something look nixons enemy list. Were doing that now. Lets lee what he also did to pet, actually what adobe did to me. Were about to show you jim cramer like you have never seen before take a look. Im looking at what i regard a being the eighth wonder of the world. This is some sort of device where its actually looking at me, and its mimicking me. This is not possible. Oh, my god really we thought we would do this specially for you, jim its a new product called Character Animator<\/a> using artificial intelligence. Were trying to recognize your gestures, it will track you in real time. Weve only done this for Homer Simpson<\/a>, the president ial candidates and now you, because youre passionate and animated. Its mimic me, making me into a walt disney. He can create my own drawings and movies fabulous stuff. Thats a million drawings at one time this is now available to everyone theyre going to make it available. Its video david, how many drawings would that have been in the 1930s for disney it uses an nvidia chip, its real time. Look at that. No, that was just f5. F6 is a water, and its real time david, this is what the world will come to we will all be able to do this realtime at the animation, astock is going to go so much higher ashanti oryan is a genius, and this is the eighth wonder of the wobbled. We are now all able to create cartoons i just cant believe it. That was me. I was rolling my eyes. How do i do it . Real time. It just watches you. Whats it artificial its the adobe sensei it read your lips and translates it instantly not even like a gap time its sometimes, david, we need to be astonished by what Silicon Valley<\/a> can create besides money. So its possible youll do the show as a cartoon . This is what ellison would do, and i dont know, he would turn off the oxygen. Your head would explode. I wasnt bad. I said that benioff was doing better anybody who says theyre doing better, theyre on a list, and you do not want to be on that list. Speaking of hostility. When we return were going to talk about Qatar Airways<\/a> expressing an interest in a large, large stake in American Airlines<\/a> american didnt seem too happy about it. The bigger due abu for a u. S. Telecom in 19 years, altice. And well be interviewing the ceo. If you want to be a video, its on my twitter file right know tut top david, i need i am not a simulation im a cartoon. You heard it here first. More on squawk on the street after this will you be ready when the moment turns romantic . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas\u00ae for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. And get medical help right away. So, how are things cartheyise . Youre fired [ screaming ] its time to get back on top. Were going back to villainy. So bad so good that im so bad. [ maniacal laugh ] dont try to fight the feeling of somethin thats so organic. [ pop ] despicable me 3. Rated pg. The carrier says qatar has indicated an interesting acquiring as much as 10 of american and the propose investment was unsolicited its a strange statement here. They say the ceos did speak, jim, and qatar said they thought they would purchase at least 808 million of the stock, and in a conversation between the two initiated by the Qatar Airways<\/a> ceo also indicated they have an interest in acquiring as much as 10 . American is sort of making it clear, they have no interest in soliciting this. None. They dont seem particularly pleased about it, and they say it would no way change the Board Composition<\/a> governians management, strategic direction, and point out that Foreign Ownership<\/a> laws limit it, and if you were to pass 4. 75 , you need advance approval from the board. Theyre not going to get it the pilots are against it already. What . What is this i dont know what to make of this frankly. Parker has been the most outspoken about the unlevel playing field, really just accusing United Arab Emirate<\/a>s, we had them on recently, about playing unfair, they used a power grab to get gates. This is one of the oddest story i have seen. This is oil and water. They do not mix. It is really odd. But i dont know anybody at Qatar Airways<\/a> to understand their rationale. This is the new thing, david, you immediately say, i create a million jobs, United Arab Emirate<\/a> World Trade Center<\/a> are were saying a million jobs we need to hear from doug parker, and hes outspoken. He is typically not afraid of speaking his mind. If youre out there, were happy to take a call. Where is doug im priced he hasnt emailed us hey, look, theres the guy who wont talk to me either, its Patrick Drahi<\/a> he founded altice. Ill have a talk with him. Would love to sit down with Patrick Drahi<\/a>, all the different ways theyve significantly expanded Free Cash Flow<\/a>. Thats an important guy right there when it comes to around the world quad plays thats what they have in europe. The quad play. Hes going to sit down. All right. Drahi, well see if we can get he e weavthopening bell and mad dash as well stay with us g city . I dont miss much. Definitely not the traffic. Excuse me, doctor. The genomic data came in. Thank you. You can do that kind of analysis . Yeah, watson. I can quickly analyze millions of clinical and scientific reports to help you tailor Treatment Options<\/a> for the patients genomic profile. You can do that . Even way out here . Yes. Even way out here. When this guy got a flat tire even way out here . In the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual<\/a> 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you\u2122. Liberty stands with you\u2122. Liberty mutual insurance. Weve been so busy, i dont know what youre doing for the mad dash its a surprise. Im doing calvin klein, but listen matthew boss yesterday did you notice nike was up a dollar because they were talking about frater nicing with amazon . No one even talks about that, the magic of amazon almost brushes out the greatness of nikes . David we are eventually going to see a bifur cases of the companies who do badly under amazon and the company that is do well. This is one of them. Im getting tired they have big european exposure. I am getting tired of the of everyone being run over on the tracks by some pvh is a winner. Why because they have already learned how to sell in the channel. Can we say not everyone is road kill. They dont cannibalize the sales out of stores. They have really kind of shifted. The amazon road kill story, its many Empire Strikes<\/a> back amazon, walmart is demanding you get off that was fascinating, get off the amazon cloud if you want our business at walmart. I am telling you Amazon Web Services<\/a> better not get too cocky. Azure is doing really well who else doesnt like me oh, please, everyone likes you. Im glad weve talked a lot about cloud. Its something we have to continue to talk about. Retail, health care moving it. Were moving closer and closer to the opening bell well have it st aju if you minute from now. Stay with us on squawk on the street. Y business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. What will you create with your points . 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. There he is. The man who runs altice, coming public today, and remember those two deals . First they bought suddenlink, then they bought cablevision when operates here in the biggest metropolitan area in the country. They have about 4. 9 million customers overall, jim but its an important ipo. Were going to talk to dexter goya, who is the head of altice usa, but drahi runs a far larger empire, driven to a certainly extent by debt and significant costcutting, likes young people, not a lot of old people hypinging around. Is that true . Thats what he said. Remember mike white, hes surrounded by young people whoa, what is that . I dont really know a spirited opening we should talk maybe about hain celestial. Key operator, theyre french, dont worry, though, they are still french and well speak to dexter goya. Over at the nasdaq, the Emily K Foundation<\/a> coach k was a guest earlier this morning. We want to start with hain celestial. Its a company you know well, under a cloud because of restatements. Theyre out of the collude. And they always did say, listen, there was nothing really material, and the accounting review is complete they have the blessing, and they have a forecast here of 4 to 6 growth for 2018. Thats not what i hoped for. I wanted more, but the fact is once youre out from the cloud, you can do more and they really are not that concerned about this blowout amazon to buy whole foods, you could argue it my even be good for them. Congratulations to irwin and his team for getting out of the penalty box, and i think they will be back. You do believe theyll be a Growth Company<\/a> again i do. The number are not particularly good. No, theyre not i think youre paying 30 times earnings, which had irwin been on mad money,i would have asked about that, but hes not coming on mad money. Hes coming on, what, squawk on here. Squawk on the street. Hes not coming on mad money, hes coming on another show hes not on mad money. You mentioned that. I did one analyst based on 20 times trail 12month Free Cash Flow<\/a>, that bias a 5 march Free Cash Flow<\/a> yield is that okay to you . Its rich, but i think the fact is when you come youve had s. E. C. Cloud and theres nothing wrong, the only thing to say is congratulatio congratulations, which is what bellini should have she happens to be a fabulous analyst. Im just giving her a hard time. I cannot believe it already has a story which says the pilots say this must be stopped. David, this is one of the weirdest stories in a weird week c. A. We havent talked about who knows whether nordstrom will still happen. Let me try to get to all of those, to the extent we can. I threw you off there aal, what i would love to hear is from Qatar Airways<\/a> they wont have any power hoar whatsoever. But its a shot off the bow not some mention the 4. 75 element that american has in terms of at least getting approval from the board, so very odd, had the stock up a bit more in the premarket, but it is still higher this morning. You know, i question look, its an obvious story, but theyre not going to buy all that they said i do say that of the stories and the mergers and the money thats coming into the market, its the one that makes the least sense to me. Right right. It makes no sense to me at all. As for the ones you asked about. On nordstrom, i can tell you that i think the family is moving ahead with deliberate speed of finding the private Equity Partner<\/a> they feel will be right to try to make a bit the special committee of the board is together, they have their advisers, the investment bachbl, layers, outside pr firm, so theyre ready to go well see what the number looks like if they come with it from the Nordstrom Family<\/a> of course, remember they over roughly i was wondering if this stock is cheap the reason i brought it much is a company thats been completely amazon is staples. Nordstrom hasnt been totally amazoned if you have you may have to buy nordstrom. Private equity, there was that deal the other day pam ploma bought. Its a Contract Research<\/a> organization and private equity beat it out. Beat out lapcorp, and another strategic bidder quinn tiles did very well for private equity, which is usually quincy jones, so i think that maybe pam ploma thought i raw that point, because in the case of staples, a reporting from roy irs, i have no idea of whats going on. They say sycamore is interested and sycamore bought nine web. Close to deal, again this is reuters, private equity firm, in advance talks to acquire staples in a deal tacked top 6 bil does this not say that the amazon threat theyve made good acquisitions, some people must think the amazon threat is overdone, or nordstrom couldnt have been approached staples wouldnt, theres people taking a longerterm view. Some say longer term, theyre trade, but describe them, david. I think people sycamore does real vigorous work though some of them that made mistakes. Listen, to broughtly private equity is obviously under some pressure to buy things, to the extend of raise a fund, up to deploy the capital at the same time i hear that valuationses are fairly rich wow, so you have seen a lot of exits, havent seen quite as many entrants. The love affair right now is with its with biotech. It just doesnt stop at Interest Rates<\/a> go down, the money flows into biotech its Extraordinary Health<\/a> care is so loved. J j is up. We have to point these out, because not everything is nvidia i had to name my dog nvidia, because its a powerful concept. I learned that while i was in detroit. Other i named my other dog chevron, because hes such a loser. The dog doesnt love me. Thee kicking it when its down. Lets talk about oil, because i have a wrap. About 42. 70. Give me the wrap. I went to my best rusty brazil he runs rbn energy. Com, around for 30 years he said the media percentage in to 17 Oil Production<\/a> hedged by 37 significant u. S. Oil producers. Bloomberg report hes reporting. Soared to 46 . At the end of 32 of 37 had 2017 hedges what does this mean . They sold so many above50, the futures that they have cash flow coming in all the time, which means you may think theyre going to stop and the saudis certain thought they would stop, but because they sold so much futures, put the cap on oil, they sold so much forward, they have the money, so theyre not going to stop as people thought they would that means that they can the rig count tomorrow may not show much decline of growth, which is why its so hard to stop the price of oil right here. Dodds that note yesterday i think this was yesterday, say ge shouldnt do the deal, just pay the break fee . Ge. A new ceo is coming in there, david. Its under pressure as well look caterpillar, emerson both said great things about orders, but people feel theyre too related to oil, so yesterday it got slugged wouldnt be surprised if it got slugged again. Its so linked with oil. Anything linked with oil is being amazoned we talked about the benefits to the consumer of lower gasoline prices. The market doesnt understand that. Is that simply not something that ever came to fruition it should be. Was it a figment of our imaginations Carnival Cruise<\/a> had a good quarter, the stock is not up, but there will be more driving there will be more travel. That segment of the economy is doing quite well theres been no what i would regard as being typical elasticity these new cars, they just burn much less fuel, but i think theres a step up in demand, but its not going to be enough to be able to keep out going back to 50. You dont see it going back to 50. Its going to be hard unless a compute lee lickia comes back offline one of or the saudis have to say, listen, were drawing a proverbial line in the sand and were going to cut production by another million. But they shouldnt. Thee tremendousing to reform their economy. By the way, david, on hain, coming back down i think the question is how many dont forget kroger does business, david, everyone is under pressure now she has not been under pressure, because she has great turns at her stores. Shes done quite well, doesnt get the recognition i think she deserves oracle shares, by the way, you want about 9. 5 . Oh, my god, amazon is down. The largest singleday trading. Amd, amazon, nvidia is down, i dont know, its taking the oxygens out of the room. What are you hearing . Nothing nothing other than there are those who believe, mark cuban amongst them some time back, that there are value there. The platform the question is how are you going to actually harness it with artificial intelligence. Data is everything. Thats what jack maw was talking about. Just step aside from yourself for a second tell me how heroic a figure he is. Hes an interesting man hes not afraid to position the company that he still presides over he doesnt run it day to day. But he has a vision of a larger pie for the world. Hes a good ambassador for peace and love. Hes communism with a human face. I guess so. Remember that hes very communal the peasants are like a bag of potatoes remember, i took seven courses in communism in harvard, because that was the prevailing ethos. Seven courses in commune im, and one in American Government<\/a> thats all they offered. I took a whole course on angles. I would have rather had a course on is bob pisani ready lets get to him weve got the altice ipo about ready to go, bob. We were just talking here they have 1200 employees from altice here. Its always nice to talk and see whats going on. I just want to remind everyone we are talking about, what, 46 million shares. Thats the dutch capable company, fourth largest capable provider i want to highlight the float. Maybe this is not a new low, but typically the billing story, trying to float 10 to 15 , so you limit the amount of shares, 8 for a nearly 2 bill quoteunquote offer. Thats a very small float. I dont have any indications for you yet. The value is in the broadband. You still need broadband, and theyve got that thats why theres a lot of interest in this stock another ipo, right over here, this is a reit its a commercial reit, and they a acquire ground leases, they own land underlying commercial real estate, and then get a ground lease to the companies that are actually developing the properties, which are in charge of taking care of everything essentially. Keep an eye in that as the yield play, indications are 18 to 19 the company went public at 20. Were rat biotech and semiconductors, so health care is strong, biotech is on fire. Nothing happening in in, all week weve been talking about it even with oil up, we have new lows today just show you the shenzhen stock overnight. Theres two sessions, and it kind of drooped later in the afternoon in the prior session, and this is where a lot of the techheavy names, sort of like the nasdaq, two issues are going on number one, theres some discussions, rumors out there of some the bank regulators, this is h a wanda being scrutinized for their m a activity there a second issue is regulators have reportedly shut down the Video Services<\/a> for not having proper licenses, but look at some of these Video Service<\/a> stocks weibo is trading down yy also has, and momo, the speculation is these are all live video piece that is go out that users can post, an the regulators cant figure out how to regulate it, because it just goes out that is the speculation going on among China Internet<\/a> watchers. Well keep an eye on that and let you know what else is going on the important thing china is moving all week right now im still waiting for altice to open and of course david will be talking to the ceo verse soon, of course, along with jim. Right now the dow is flat. Tang you, bob. Still looking for chairman wu, by the way, who was detained a couple weeks ago not sure of his whereabouts. Asked jack maw about it, he didnt know where the chairman was. Well see where he turns up. Rick good morning, david you know, as you look as an intraday of 10s, i see 133, for twos down two. You see on that chart down two pretty much a parallel shift it means theres no wiggles. Its constant as yields move lower. Were two down on 10s, fro higher the low clout for the year is around 212 on that monthtoday chart, you notice the drift to tens look at the same chart with the dollar index it is definitely doing better. Granted its basically unchanged today and didnt garner a big jump yesterday, but for the most part june has been pretty good remember it closed at 102. 20, so it has 4 plus to make up. We like to look at our yield curve. What i like more is debating exactly why its flat. Which channel going in, is it the English Channel<\/a> . It the relative pressure of all sovereigns being lower im sure thats a big channel, but benchmarked against those of inflation and how its handy capping growth also figure in. If you look at our curve, roughly hovering around 80, 8 is, last week the low going back to september, which was 79 but lets look at the euro curve, shall we . The bund minus their 2s hovering an 87 basis poise, virtually the flattest, say, going back to november is the point is the separation isnt much different even thor theyre like mineius 612 basis points jim and david, back to you. Thank you very much, mr. An telli. We are looking for an opening trade here at the big board. Well bring that to you once that happens, and a live interview with the ceo, which is comprised the suddenlink and cable vision what else do they have planned perhaps well get some answers squawk on the street will be right back [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management<\/a> firms in the country. Discover how we can help find your unlock. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships<\/a> to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov all right. Were waiting for altice usa to open, 1. 9 billion was raised, priced at 30. Well see where it opens largest us telecom initial offering in 17 years jpmorgan, morgan stanley, wele uerits,nder a ll talk to dec. E goya stock trading is coming up with jim. I should take a closer look at geico. Geico can help with way more than car insurance. Boats, homes, motorcycles. Even umbrella coverage. This guys gonna wish he brought his umbrella. Fire at will howd you know the guys name is will . Yeah . Its an expression, ya know . Fire at will . You never heard of that . Oh, there goes will bye, will thats not his name take a closer look at geico. Great savings. And a whole lot more. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment<\/a> objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. They are the natural borns enemy of the way things are. Yes, ideas are scary, and messy and fragile. But under the proper care, they become something beautiful. All right. Unfortunately when we get to stock trading it means the end of our hour is approaching. I want to hear what american had to say today Carnival Cruise<\/a> reported i guess people are sort of yawning that it was another unbelievably good quart quarter. David, bookings and type going back with my friend matt horry, who writing with me, 2019 is the first real bookings you can get. This is amazing. Oil being down is huge for them. They use bunker fuel, so you may want to buy Carnival Cruise<\/a> if it comes down. Thats part when i spoke with arnold, he made it clear, people like to take pictures and post it on their instagram. David, you know that that is the large so i like the cruise line that is a little nutty. I know one of your guests tonight on mom is irene rosin feld. Yes, a very big get in our industry. They make mall omars. And when we talk about theius or i dont candy bar, which is selling like hot cakes, i guess hot cakes not being as good, and were going to talk to yext. Im going to reveal the real winner in the casa amigos purchase by diageo isnt he the real winner . That guy never stops winning. He was very nice to me about a movie he made that was somewhat he was very nice he played you in the movies. Well, my father would have loved that. I liked that. Evenif i was the villain. You actually ended up okay. My wife said no. My wife said, no, were not going to get that, because it could be upsetting. Ill sew you tomorrow if not sooner. You go thite , partner. Coming up, the debut, keep it right here. At fidelity, trades are now just 4. 95. 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. Everybody everybody lets get to it get stupid lets get it started good morning kelly evans joins us. I love this song. Its a good one. We played it just for you carl is off today. Lets look at the mark, sort of a mixed to flattish picture. The nasdaq interestingly underperforming. It was doing better in the futures market oil appears to be stabilizing, just be low 43 a barrel well see if that holds. Lets get to our road map. It starts with another big day in washington, d. C. , tech ceos and investors are meeting at the white house. Senators are wrapping up their meeting over the draft of the Health Care Bill<\/a> well bring you the latest. Plus American Airlines<\/a> surgic as Qatar Airways<\/a> discloses its interested in acquire a large stake in that company. We have the details straight ahead. Its the largest public debut for a u. S. Telecom company in 17 years. Altice getting ready to go public well speak with the ceo about you first a ton of news to get to out of washington this hour. Ceos and vettors are meeting at the white house and now senators are leaving a meeting over the draft of their Health Care Bill<\/a>, which is expected to be released in an hour eamon javers is outside the white house, Kayla Tausche<\/a> is on capitol hill first to eamon for an update on this tech meeting. Reporter good morn, it is drone day, thats one of the issues theyll be talking about during a series of Technology Meetings<\/a> here today. I am told unfortunately be will not see the president of the United States<\/a> flying a drone theyll do a demo in the east room with some of the equipment. We have seen some of the ceos arriving, crying is the ceo of revolution, steve case, jeff immelt, randall stevenson, the ceo of honey will, exel energy link, verizon, all walking in on 17th street earlier today. Theyre in for an allday series of discussions starting with the drones, theyll be talking about regulation, technology and safety with the growing Drone Industry<\/a> in this country also on digital wireless talking about the future of connected devices and the enter net of things and on the financing of staffordups, how to extend, important to the Trump Administration<\/a> to broaden out beyond just Silicon Valley<\/a>, have that financing go to startups around the country in other locations. Theyll be talking about ideas around that, and i am told, guys, there will be an industrial drone in the east room with the president , but it wont fly and the president wont fly it, but we will see pictures of him with the drones later on this morning. That should be different. Eamon, thank you. Well talk to one of the those vc investors in the room kayla has an update. Reporter ive just gotten wort of some of the core tenets of who will be in the senate Health Care Bill<\/a> its been described as a modification of the bill that the house put forth just a couple months ago i have learned that the senate will propose to cover the payments that they had previously allocated to go to insurers to offset the cost of offering those plans the senate will seem to do this through an proposing, which is pretty big new, its not only something that but the president specifically as well other points of note, the bill is expected to and structure its tax credit based on the income instead of on their alge. It plans to phase out an expansion and will shift the cost breakdown of that medicate expansion. Currently the federal government pays about 90 of the medicaid plans. That will shift to roughly 57 , depending on the different states, but that is the rough appropriation of exactly what that cost breakdown will be, about 57 . Finally the expectations is that the white house will come out and support this bill. There was some question after the president had said the bill needed to be more generous, more heart, less mean in the house bill, but i am told the president and the white house are expected to not only support though, but to be in support of making toss controversial payments to insurers well let you know as soon as we have more. Sara, back to you. By the way, kayla, if i could jump in here, its interesting youre talking about this. I was looking a the some of the big insurers for some reaction, i wonder if this validates more the lack of response the shares did not really sell off that much. Maybe a question is what what that does to shore up their bottom lines as they still try to land navy gait the landscape. Well have to wait and see how the Senate Language<\/a> treats this an appropriation is part of a budget they will have to revisit this on a regular basis, but this is notable how theyre choosing on do it. House republicans had sued the white house over these payments, because there was not an appropriation. The white house said they would make the payments through the summer and they were cited as one of the reasons that anthem, for instance, pulled out of ohio, so this is very rural, especially in the near term and especially for the 2018 plans. We showed there humana, unitedheld, all at alltime highs. We have some breaking news to get to on Deutsche Bank<\/a> wilford frost joins us with more. David, yes indeed, a her seen by cnbc five democratic members of congress have written to Deutsche Bank<\/a> to reiterate their deup and down. Their original letter wassent on may the 23rd. Deutsche bank responded on june 8th, saying, quote, federal law requires a Financial Institution<\/a> such as Deutsche Bank<\/a> maintain that i privacy of customers. However, this her today from the members of congress disputes that in three main ways. Firstly the law that is Deutsche Bank<\/a> refers to only relate to requests from, quote, governmental authorities, not the legislative braj two, that they add that a number of our requests do not require the furnishings of information, i. E. Deutsche bank should be replying to some of the requests immediately regardless of this dispute and third, President Trump<\/a> can grant full access to this information and given that in the past he has repeated assertions he does not have tie toss russia, that dour would ostensibly be in his benefit they only referred us to their original june 8th response, available on their website, so the company not yet commented on todays latest congressional letter when we come back, Qatar Airways<\/a> is compressing interesting in buys a large stage of American Airlines<\/a> plus altice raises more money than any other u. S. List the telecom company. The ceo dexter goei will join us im living that yacht life life life life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany gany, gany, gany watch this the power of the nasdaq market. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment<\/a> objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Lets get to phil lebeau the first my first reaction is do this actually happen and, you know, how would u. S. Regulators do it inch the weird deal of the day that has people on wall street and the Airline Industry<\/a> scratching their heads, first of all Qatar Airways<\/a> can buy up to 4. 75 shares of American Airlines<\/a> it has indicated in a conversation initiated about by the co of Qatar Airways<\/a> that it intends to buy up to 10 , but the board would need to approve qatar buys anything more than 4. 75 . There has been a conversation between al backer and doug parker foreign companies, by the way are not allowed to own more than 24. 9 of any u. S. Airline. Keep in mind that doug parker has an extremely vocal critic of the persian gulf carriers. Its clear that american doesnt plan to change its stance. It says American Airlines<\/a> continuic to believe the president amend his administration will stand up for foreign governments to end massive carrier subsidies that threaten the Aviation Industry<\/a> and threaten american jobs shares of american have moved higher, but get len met stress, doug parker may be the most vocal critic, and how its her the u. S. Carriers not only with their action to the middle east, as well as now their flights over to europe we havent heard more other than this from the company, curies if well hear something regarding this investment from qatar the only thing i have heard not directly from parker, they dont know why i asked that question earlier, and the response is we dont know why, either. Correct. The only thing they can speculate on Qatar Airways<\/a> owns 20 of iag which controls british, and aer ling lingus maybe they just like to own large stakes in they Global Airlines<\/a> lets play devils advocate. Is that really the best play for them to get a return on 800 million . Is it really to buy a stake in american if thats their feeling, fantastic, but i think doug parker will have strong words, this does not change the comp position of the board nor its governance its not like theyre letting qatar in and saying have a seal at the table fill, thank you well be watching this were one today for sure. Were also keeping track of big news where ceos and investors are meeting at the white house and gop Health Care Bill<\/a> is expected to be released. Here at post 9 to discuss all of it, cnbc senior contributor larry udlow. Breaking news, breaking news the Senate Health<\/a> care draft are solid. Ive seen chunking. Other moles were reading chunks of it. Solid means, a, its better than the house. What does better mean how about the income versus the age subsidies . In the senate bill, the subsidies, the stacks credits, refundable tax credits, instead of giving rich people a flat tax, which is what the house did, theyre going down, going down to the working poor i have watched this for so darn long there would be means testing and theyre borrowing from the main state of maine model. You all go in the same pool. Not sara, sara will never be old enough ss ssed actually Healthy People<\/a> will be separate from the preconditioned ill the precondition will be covered, but its going to be a separate risk pool, even though you may not know it. Very clever. So that means with the essential ben fizz man dade basically gutted by the states, premiums can fall this is actually very clever stuff. And theyre subsidizing the higherrisk pools, right theyre going to get tax credits. My point is the tax credits sliding scale is going lower, which is what many of us wantedd is Lisa Murkowski<\/a> on board with this . I dont know. Our susan coal independents. These are my friends. I dont know why it is the moderates have always liked me i cant quite figure it out. A you are a very kind man even if you are wait out there in rightland. The whole point of this is the essential benefits will be pared back in most states. The socalled working for preconditions will remain, but you may not know that youre separated out into a separate pool rate are really all of that is better to the house bill 5 so nicely above. By the french altice, which will still corrosion the vast majority larry, continue. Now, i think its going to get through the house. I really do. There will be nix and nabs it will get through the house. Heres what i dont think. Heres what i think i dont like the house bill, yes, then it goes back to the house im sorry, the senate bill i beg your pardon. Then it goes back to the house for a conference i dont think that conference is going to be hard okay heres whats hard i found that a very disturbing thing yesterday. The house leadership, paul ryan, working with white house people want a closed conference for tax reform you cant have it closed that was the problem with health care in the house. They wouldnt let the Freedom Caucus<\/a> in. They want to do it behind closed doors you. Thats what theyve been doing in the senate. So, its wide open, because you have these working groups with ted cruz and lamar alexander, and Mitch Mcconnell<\/a> was blessing it. Everybody knew what they were doing. They want a very small amount of people to work on tax reform. But at least the Health Care Bill<\/a>, larry, youre right, but it gets done you needed that to go first. I dont want it done. I do want it i dont Want Health Care<\/a> done alone the steve moore kudlow, et cetera, at least easy pieces you cant get an omnibus reform on taxes between now and the end of the year. It cannot be done. Its not enough time its a maul year project listen to what im saying, this is doable. Youve got support in the west wing on this three easy pieces the well word is in favor. Repatriation, low everyones in favor of that so break it off, put it hang on, hold on to your seats. Put it put the three easy pieces into the Health Care Reconciliation<\/a> bill. Right in in july they will not have a Summer Vacation<\/a> this year were not. Are you sure . I dont care. Weve got mark meadows of the Freedom Caucus<\/a>, steve moore and i had lynch, how about this . They dont go home until they get it done. Legally technically you take your Health Care Products<\/a> and attach it to the corporate product, which is the growth kicker one reconciliation. House Speaker Paul Ryan<\/a> still is talking about major tax overhaul and transformation by the end of the year. You are absolutely correct. My question is, is he talking to anybody besides himself . Thats really the question i need to no ive got to tell you, you talk to hill staff, members, it cant be done by september theres only a handful of legislative calendar days. You give me 25 more days in august, so they work you work in all, you work in august, were all working in august. Let them work in august. Thats easy for us to say well see if it happens. Let them work, if they do theyll get to three easy pieces large and small, thats where the growth kicker is, thats where the productivity is, thats where the wages are, attach it to the Health Care Reconciliation<\/a> for 2017. Just do it the most important guy in this process is the president of the senate okay. Mike pence. Correct the important 51st vote, if they need it. The senate parliamentarien, her name is Elizabeth Mcloughlin<\/a> you dont have to fire her mike pence, the top official in the senate just says no, were going to do it this way, its legal. So i want big bang, grand slam home run i want business tax cuts, health care in the same big, and then if they gless that done, well let them go to camp for the last week. They do listen to you sometimes. Well, i just want to tell you this, as outrageous as this idea was three weeks ago, its gaining adherence. Ive got at least one very senior guy in the west wing and were working on more. I have the house free tom caucus, senators, were working on this. Keep us posted, larry, as always. Thank you. When we come back, the latest from the ceo investor meeting at the white house New Enterprise<\/a> associates managing general partner is taking parity in the discussion. Hell be joining us next, and altice usa just started trading here, ticker atus. Well talk to the ceo next right here on squawk on the street. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . Learn more about the ink business preferred card. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. 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. Altice usa is officially open for trading the stock up almost over 7 in the years old trading dexter goei has been with us before good morning, david. When you bought suddenlink, a couple other announcements big day for you today. Why duck at a time this Company Public<\/a> we always said we had things we wanted to go in the nest couple years investment in the network, and also have a currency out that there we could validate the worth i think that means if we have the opportunity to buy other stuff. Like what what else is for sale that i have gut you scale i think or overall job is to be ready not in any hurry to do anything we have a lot of operational work to do a lot of big, big projects for fiber for the home and one Communications Hub<\/a> we need to be prepared thats why woe went public. You pay down debt . Some. Altice overall, you have a quad play in europe. Wireless is part of that is that part of whats on your Shopping List<\/a> . Do you see that as an opportunity . I dont think so. Not today. Again our priors is on operational focus and ke projects we have in place right now. So well see wireless is not a focus for us today. I think fixing our network, improving or network, improving our customer service, improving all the entire Customer Experience<\/a> is really critical. We talked about in the past, you guys have Ambitious Goals<\/a> for taking cap ex down, but delivering a better product. Thats right. We believe we can take the same amount of money weve been spending, reinvest it in better products as abouter prices. We talk a lot about the changing world of cable, so to speak, a lot of people cutting vitt no. How does your mod many looks is it bad or is it good to be a broadbandonly company where he investing heavily into content. Were very focused on rolling out a state of the art user interface, very intuitive, very much like our friends over at comcast have so we are investing, we think its cry tal that our customers have a great product. If im the cablevision customer and i have optimum, i know many people are saying why am i paying for video . I use my house only x number of days. If you control the entire User Experience<\/a> and offer the different types of video available through your settop box, we they well maintain a good business. We think were underpenetrated what about programming costs . You recently i can remember having discussions with you about suddenlink which dropped viacom, and now theyre back. Absolutely. Why are they back that plays into my question about programmingcosts which seem to go up. Why would you do a deal with viacom if you didnt need them we obviously believe that viacom has great content theyve been great for us here at optimum weve been able to find a longterm transaction that works for both sides. How did it work for both sides . Thats the devil in the details, david, but we fundamentally came to an agreement. Theyve been fantastic partners and we look forward to working with them for a long times. Kelly may have a question. I its its fascinating its quite clear this whole industry is being shaped how important is spectrum for you guys is that the most important thing to have right now . And the white house today theyre talking about 5g weve talked about this before, maybe i can get a youtube plan, but maybe you cant go ahead wireless to buy it up, but you still need spectrum. So i think toe end of the day you still need fiber were focused on continuing our network to have fiber everywhere spectrum may be in local communities where we could think about doing certain things, but its not a prior for you today were focused on continuing to improve our fixedline network so having spectrum it does, but 5g is considered to be a threat eventually. You could have a mobile broadband product into the home better than wifi how do you view that threat evolving listen, we are one big Telecoms Community<\/a> both wireless and fixed. At the end of the day those delivering 5g will have to have a fixedline offload for data, so we look forward working with the wireless providers and developing 5g with them. And is it on Free Cash Flow<\/a> . Or are you going to have Revenue Growth<\/a> the only thing that pays the revenue is Free Cash Flow<\/a>. We keep the lights on, so were big believer in focusing on Free Cash Flow<\/a>. The rest is just accounting in many respects, so very, very focused on Free Cash Flow<\/a>. All right. Well be staying tuned at always thank you. Good seeing you. Chairman of the newly public altice usa. Great stuff. Contessa brewer for an update. Heres whats happening right now. Tropical storm cindy made landfall early this morning bringing fierce wind and heavy rain and take a look at what some tourists saw on Santa Rosa Island<\/a> a funnel cloud building. Theresa may addressed parliament on the deadly Apartment Fire<\/a> that happened last week. She said the cladding used contained combustible material. The house should be careful on speculating, but as a precaution the government has arranged to on test cladding shortly before i came ive been nfl that a number of tests have come back as combustible. Tom brady promoting 99 pajamas in tokyo today the Company Cease<\/a> it helps your body recover faster and promotes better sleep thats our cnbc update for this hour, back to you, sara. Yeah, not into spending that much on pajamas. Contessa, thank you. Jackie deaingely has the numbers. Is. Initially a beachish rear action, but were seeing surprises supported. This is a bit above the expectation, but still below the fiveyear average. Why i think were seeing support is remember we backed off that 3 level, above that level and now were seeing a bit of a supplied demand rebalance, if you will that would be key as we go forward. Part of this is a weather outlook as well. On the east coast weve had a bit cooler temperatures, intermittent rain, that brings the demand down, you may see that in parts of the country that will impact the nat gas trade. Those are the Technical Levels<\/a> that recent range that trader are watching were probably going to stay in there. Back over to you jackie, thank you taking a look at stocks as we head to break heap its by health care, and centering actually after a rough few sessions pretty much unchanged. E ag estate and financials are quk on the street will be right back 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. ] how does it feel the travel rewards credit card from bank of america. Its travel, better connected. It is President Trump<\/a>s tech summit, the white house hosting ceos among the discussion topics today 5g wireless and Drone Technology<\/a> joining us from the white house is someone whos been inside the meetings, peter barris managing partner, thank you for stepping out in between sessions, what can you tell us about what was discussed so far we had a great session, actually i was in the roundtable discussion financing and emerging technologies. We covered a lot of ground i think what i saw was people were listening, engaged, and i thought we had a very constructive discussion. Specifically on the tax code, what points did you and other men of the industry make well, we talked about things related to aggregating capital, so outside of Silicon Valley<\/a>, new york and boston, what we could do to were in a sim wait where technology allowed people to , so we talked about different regulations and 340dicses of the tax code we thought would encourage that the new head of the fcc was there. Any lobbying for frepdly regulation yeah, there was a lot of lobbying going on for friendly regulation i was pleasantly surprised at the receptive is we got into areas that werent really core to our topic area, but things like immigration, visa programs, things like that he shared with us how the white house was thinking about it, and it matched what we were thinking about, in terms of attracting skills, encouraging immigrants with skills to fill the many unfilled jobs that we have in this country and skilled positions. Are you talking about increasings h 1 b program . Is the white house thinking about that we talked about modifications to the h 1 b visa. Im looking at some of your investments in the past. Everybody from groupon to i think goop today is supposed to be about Drone Technology<\/a> and 5g. Anything youre looking at ought because were here on the large end of the scale we participate in every spending two thirds of our dollars, and Drone Technology<\/a> is part of that you see ive been in this business for 25 years, i dont think ive seen a richer environment than the one we have today. Some people were skeptical about technology executives, coming to washington thereon have been points of friction between this administration and members of Silicon Valley<\/a> did you have any qualms about going to the white house today look, this isnt about politics, frankly. Were as a firm we represent about 5 of the capital in the venture industry the venture industry represents all net job growth in the past 30 years, so its important to have a seat at the table, and we welcome that opportunities. Thank you for joining us to share some of those discussions. Thank you lets get to phil lebeau we have more news involves Qatar Airways<\/a>, which hopes to make a large investment in American Airlines<\/a>. We have a statement from Qatar Airways<\/a>, it is first one since the acomment filing by modern indicating it had been notified by qatar. Qatar airways say it sees a strong Investment Opportunity<\/a> in American Airlines<\/a>. It intends to build a passive position in the company with no involvement in management, operations or governance david, i want to touch on something this has floelting around on twitter, look, they could be code share partners if qatar takes a stake, that would give them access to increase the flights, given the problems theyre running into thats not the way it works. Code share agreements are reached between airlines, and given the feelings that american has regarding qatar, i would be stunned if they said, sure, lets reach a code share agreement here, given the fact we think these airlines go ahead a massive subsidy. Still waiting to hear from americans ceo doug parker. They do say they have long considered american a good allyian partner, what do you make of that it would be a good allyian partner when you look at Global Airlines<\/a>, american is at the top of the list if youre another airline looking to partner up, through a codeshare agreement or some type of alliance, but it takes two to tango doug parker does not want to tango with these guys. What did cramer say oil and water. As we head to break, look at shares of hain celestial, showing the longdelayed function results maid no materials changes, it found no evidence of intentional wrongdoing and put out a lot to chew on. We will speak to the ceo of hain cestl clleiaexusively, coming up on squawk alley. Stay with us [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. 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It comes when your Insurance Company<\/a> says theyll only pay threequarters of what it takes to replace it. What are you supposed to do . Drive threequarters of a car . Now if you had Liberty Mutual<\/a> new car replacement\u2122, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. With Liberty Mutual<\/a> new car replacement\u2122, well replace the full value of your car. Liberty stands with you\u2122. Liberty mutual insurance. Welcome back, the public can now read the senate Health Care Bill<\/a> ourselves this is the draft, 140 pages to get through. The early outlines focus on some of the differences between the house bill when it comes to offering, for example incomebased refundable tax credits, as larry kudlow alluded to ma segments higherrisk populations into the pools a lot of questions the bill will need to address, about the essential benefits mandates go, and, of course, medicaid, probably one of the most important issues for the ten senators, at least that will need to be watched to see if this thing can pass, anybody from alaska, senators, extremely focused on what impact it will have on state budgets. As we mentioned earlier, three of the hell insurers, and kayla was reporting on this though theyre going to fund some of the aca, you know, restores the aca funding, humana, and all trading around alltime highs. I think the big headline is that it cuts medicaid, it limits federal outlays to state programs, an also reduces the taxes to 89 wealthy, which is another political talking point. We need to wait for a cba score, which will be political charged, and again the were going to look through the details of this and get the income. The train is moving again it goes tolt whole agenda question if they can get this going and then the tax issue and they can bundle them altogether, there is 1 on the back of. This lets head over to the cme group now, Rick Santelli<\/a> with the Santelli Exchange<\/a> this morning. Rick thank you, kelly. Id like to welcome my guest richard farr in one of your most recent writings and im paraphrasing here, worry about down side risk you tell investors stocks are you have thely at all time highs, especially if your blurry eyes. Rates are a lot lower than they were at the end of the year. The curve flattened and we have a fed tightening you see a soft patch and more risk explain. Well, theres no doubt that some of the recent data has weakened you see that in retail sales and credit card use. You see it in the pmi dat yachlt its been across the board, housing, for instance. The data has been a little softer meanwhile, if you look at the inflation data, it looks as though inflation may have peaked a couple of months ago so to me, it seems a little ill advised that this time for a fed to be hiking rates, i think you need to see a little bit more proof and less forecasting at this point for the fed i think that does create down side risk. All right okay now, im going to push back. Lets take that soft patch you described. If i look back 15 quarters, i can find lots of quarters where we had four handles and lots of quarters where we were under two, under 1 1 2, even some negative ones. So thats been kind of part of this, uneven inflation, one thing that is looked at is the break evens right now theyre around 160, 167. If you look at the widest theyve been, they were around 208 at the end of january. At that point in time, tips werent far from the prices in yields they are now. All of the break Even Movement<\/a> has been the down draft in tens. So what i ask you, richard, everything you say is true but are we really looking at inflation . Are we looking at long end rates that are lower than they would otherwise be for Central Bank Issues<\/a> across the globe . Well, its funny you ask that question i happen to go to a speech by Charles Evans<\/a> of the chicago fed on monday. And in the q a he was asked what do you think of this amazon buying whole foods situation and does that create deflationary pressures it was as if it was an ahha moment and they said that is something we have to look at maybe we need to be a little bit more accommodative going forward. And it was almost as if the fed had finally realized that inflation targeting when inflation is low may not be the best answer. So, rick, i hear you on all this stuff. I think bonds are simply reflecting the fact that oil prices have peaked on a year over year basis. They were 54 in december. Thats deflationary pressure throughout the stim. I guess the put that altogether, theyre going to look at the metrics. It is knowing what the target is before you aim for it. Finally, when it comes to all the issues regarding the economy, all i can leave folks with is that legislation has a better chance today according to many you look at the gop, theyre 50 in special elections i dont care about politics. Larry kudlow seems optimistic. Real quick, were out of time, legislation passes, that helps the case, doesnt it yes or no, richard not only does it help the case but we need it. Yes, rick. Awesome thank you for your time. Lets go back to david thank you, rick Rick Santelli<\/a>. Lets send it over to jon forward. Investors, entrepreneurs meeting with the president at the white house this morning to talk about Tech Innovation<\/a> and growth well see if they talk about the startup visa as well and a couple of big tech ceos coming up, oracle smashing it on earnings and mark heard is going to join us so dont miss that sarah . Jon, ill see you then at the top of the hour. I do want to hit the headlines coming out of the senate draft of the Health Care Bill<\/a>. Were just getting it. We havent read through the 140 pages or so. Some headlines to share and some movers in the market on this kelly, you mention the insurers moving higher. Just in terms of the headline there, funding for insurers continues through 2021 n. This bill interestingly some of the hospital stocks are also up and moving around to session highs on the results of this bill. Other headlines i can bring you, tax cuts on the high income households and the senate Health Care Bill<\/a> are largely unchanged from the house plan. We knew that was a big political Sticking Point<\/a> that democrats hated in the house plan. The senate draft would repeal a 3. 8 net Investment Income<\/a> tax retro active to the start of 2017 we knew that would end the aca penalties for those that dont get insurance that was the core of repealing obama care basically and as weve been talking about, would base these insurance subsidies on income covering 0 to 350 of low income households well continue to digest you are seeing anything else no, i thought you said about was the hospitals is interesting. Its like this bill and larry talked about this earlier, may have something in it for everyone we heard the president tell members of the senate he won the bill with heart in it. This one would start phasing out medicaid more after 2020 putting the 11 Million People<\/a> at some risk in the meantime, it may be close enough to the status quo that the hospitals are relieved and also shows the insurers the same kind of story while giving over time a shift towards a system that would look more different from obamacare and i think today was also the deadline for insurers to submit the rates and plans to the states so its an important day there there is tenant up 7 . As we head to break, a quick programming note, today at 3 00 p. M. On closing bell, were going to be joined by hary schwartz you dont want to miss that interview. Squawk on the street will be right back this is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access<\/a> 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. upbeat dance music dance music abruptly stopping dance music starting then stopping welcome back to squawk on the street. You can see health care certainly a focus to day given the legislation coming out of the Senate People<\/a> are still parsing through the 100 plus pages of the legislation or proposed legislation. Still, health care sticking out as the best performing right now, the best performing sector in the s p 500 if you take a look at some of the heat, if you will, within that particular sector alone, some of the hospital stocks have at least positively reacted initially to some of the news coming out of washington, d. C. With, the Senate Health<\/a> care legislation or proposed legislation. Shares of Tenant Health<\/a> care and Community Health<\/a>, humana, hca holdings, all of those names up big here Tenant Health<\/a> care up 7 Community Health<\/a> up by more than that right now Health Care Stocks<\/a> overall some of the big pharmaceutical names, pfizer shares up by 1 hers hers. Glaxosmithkline, bristolmyers, merk, all of those moving up as well then you have insurance names, aetna, anthem, cigna, wellcare, many of them hitting record highs or around record highs so far in trading to day. Theyre certainly a focus as well we know that so far this week to date health care has been the best performing sector driven a lot by the biotech side of things you put together the Senate Health<\/a> care proposed l","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600606.us.archive.org\/22\/items\/CNBC_20170622_130000_Squawk_on_the_Street\/CNBC_20170622_130000_Squawk_on_the_Street.thumbs\/CNBC_20170622_130000_Squawk_on_the_Street_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240628T12:35:10+00:00"}