From the president S Manufacturing council. P g ramping up its fight against nelson peltz and netflix with a big score in the content war signing shonda rimes away from abc a tweet from ken frazier saying he will resign from the president S Manufacturing council was met almost immediately by a response from the president in which he said frazier would now have time to go lower rip off drug prices and immediate reprisal for what i assume the white house sees as a breach of loyalty. Ken frazier is known as one of the more thoughtful executives out there anyone that followed the drug industry knows that he has a lot of false promise he speaks his mind the president. Hes the president of the United States but it does seem a little, ill advised to just immediately attack him for going and gouging and mr. Frazier as also been a man that tried to hold the line on drug pricing. So it does to me, i mean, who am i to say its unfair it just seems like that mr. Frazier deserves better. He speaks his conscious. This is video were watching here of past sit downs between the president and ceos you see frazier has been prominently placed to the president s left in this case theres Jared Kushner next to mark fields. I dont know that you could say necessarily he was a high profile member of the council but certainly got a lot of notice apparently from the white house. Merck is a huge employer. Merck has been known as a stand out company for years and years. Merck is a company considered to be a Great American asset. So i found it disconcerting that he was immediately atakd i understand the president is very, hes, why did he do this im just a guy. This is the merck statement if you missed it as a ceo of merck and as a matter of personal conscious i feel a response toblt ta responsibility to take a stand against intolerance and extremism and i can assume its from a lack of response from the president over the weekend he will sign an order that will have more to do with china and trade. Right i dont know, he wants to go, hell have more time to lower rip off drug prices. I dont know my mother and my father would have said thats exactly the opposite of what you should do. Guy says his conscious and say i wish you well. How about i wish you well. Even the nfl, they know better i dont know jim were all finding our way here. Were stunned. In this extraordinary new dynamic between the government and American Business. Mr. Frazier is a man i have looked up to i have praised him many times on our show he has drugs that would do better, that would do much better if he was promotional like other companies he has been compassionate and he has been the last guy that i know that ever said my mom died of cancer and i have seen time and again that i have seen time and again that he has said listen maybe my drugs arent he doesnt do the big advertising because he doesnt want to create false promises. Hes a man of conscience maybe he didnt buy into the president , the president didnt buy into him twitter is interesting i guess its a place you can really take some shots but he is the president. Its very meaningful when the president attacks people very meaningful. Remains so. Well get to aman this morning not only do we have todays events to look at but also an eye on this council. You were just showing the tweet there from the president attack ken fraziers industry, his company and perhaps the man himself. I want to underscore this is an astonishing Political Choice that the president of the United States has made this morning he has been under fire over the weekend for seeming to be too soft on White Supremacists too soft on nazis. Not calling them out by name the white house criticized when they did finally call him out by name doing it via an unsourced background his Vice President , his attorney general have been out on National Television trying to clear up the political damage from his comments. Today ken frazier resigns in a protest of conscious speaking of fundamental American Values the president of the United States had a choice to make this morning and the choice he made was to attack ken frazier, to lash out in anger and frustration saying that the industry has rip off drug prices that is a Political Choice the president has made i dont think you will find a political adviser in either Party Anywhere in washington or around the country that would say that is a wise political move to make given the situation the president finds himself in today. I think this tweet is going to reverberate throughout the day and the president and the white house are going to face intense questions about why he chose to respond this way to ken frazier. Speak of today, walk us through what we think were going to get at 3 00 the president over the weekend suggested there might be a News Conference of sorts but what is actually on the calendar we dont know what were going to get today we expected the president would have an event related to china later in the afternoon at the white house. He has been in bed minister new jersey over the past week or so. We expected him to go to trump tower today but that was cancelled. The president is is now coming to washington. We have heard from Jeff Sessions that he expects that the president will address the nation today regarding what happened in terms of the racist violence in charlottesville, virginia over the weekend but we have not heard that from the white house itself so we dont know if they have an event planned around this event that happened over the weekend. We do know that the china relate event is still on the calendar for later this afternoon at the white house and hes planning to go back up to new york and back up to trump tower this evening, carl. Well come back to you later on this weekend. Look dont let the door hit you on the way out mr. Frazier were in a polarized country a lot of people feel like mr. Frazier called the president out so the president called him out. Thats another strain of thought. I totally get that thats not my strain my strain is unimportant im offering that in the industry mr. Frazier is not known as someone who has done rip off pricing. Whether you like or not what he did in terms of his conscience i think its good to have a conscience but you have to get your facts straight. Mr. Frazier has not been at the forefront of raising prices for the sake of raising prices at mercks profitability. So for those that think its absolutely right that trump called him out because he called trump out, all i can say is i would call him out on something that you may not like his state of conscience which i dont mind but do homework. Homework is key because i know companies. I know companies there are some companies that have continually ripped off the american people. If you hate him or like him for what he said can we at least get the facts straight on mr. Frazier . Jim thats why we lean on you. Im talking about merck thats what im allowed to talk about. Am i against violence . Yes . Am i in favor of free speech for the president and mr. Frazier, yes . Am i in favor of whether hes the guy that ripd off people, no, because the facts dont mandate that theres people that ripd off the people mr. Frazier has so kept down his sales by not promising because he doesnt want to give people false hope he could blowout the sales he could blow them out he has every right to try because other people have blown out cancer drugs and made to feel like my mom is going to go on that drug and shes going to live and then she dies. Jim, people are going to be talking about this all morning long after the break well get to the markets and why the futures are soup dramatically today. A lot of Corporate News as well including a mixed bag of news regarding netflix. Well talk about that. Price target upgrades over at tesla on the street today. More squawk on the street from post 9 continues in a moment excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. 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So north korea is not off the front burner as much as well, we have seen the chinese true colors. Its not unlike president truman when he fired mcarthur people forget history. As soon as president truman realized that china was a total ally of north korea he recognized that the idea of bombing china would be a mistake. I now feel like once again youre bombing china if youre bombing north korea which would be an ill advised situation. Why launch this inquiry today to look into whether or not, to investigate the chuy feinese fo requiring u. S. Firms to hand over intellectual property. Im waiting for we cant let the chinese be the only people that make steel. But the president is reluctant to use 232 which is a shame. Intellectual property. Well, still, that was reckless abandon. Thanks for nothing but what really matters is we have this Steel Industry i thought was promised by the president and i think 232 is a must. I have been saying that china and south korea has been plague unfair we get that. Theyre all out of business so i thought it made sense. We dont want to make our tanks out of chinese steel i think they would prove to be effective. Does the Auto Industry say okay no, the Auto Industry has to fight this were not making those with aluminum i know that the Steel Industry, if they did not have foreign steel would be able to raise prices with abandon but youd like to think they would be responsible. Its better to raise prices than it is to go out of business. Jim, a lot of people over the weekend looked at historic inflammatory political events, military events, stocks tend not to crater. No, they do the opposite. This is like one of those things, i dont want to be so cliche to say well the sounds of guns but look people last week were very powerful. Howard marks was on, scott i googled marks bearish 2010. I guess i could have done 2011 too and they were all the same comments very similar to what he made and you could say wow, if i showed you those comments you might say well arent those the ones he said on scotts show no that was fortunate magazine hes a distress guy. I remember like somebody asked about the semiconductors, hey, i dont do that but he just trashed them by implication. Its very interesting. You can have that view. And in your view too cautious a view. Thats always that kind of hey, you know what, if you growl like a bear and you paw like a bear maybe youre a koala. Im a koala bear which arent even bears but 2010 you can do it theres all the stories popped up and they read very similar to what he said and thats fine because youre allowed because theres free speech. We discussed free speech youre freely able to scare people out of the market you can do it. But, you know, he does know distress better than anyone. I would never walk in to it but it did read a lot like what he said last week like 2010. Now he could say jim you are arbitrary and capricious to pick 2010 but i dont know. I picked it out of a hat but he said easy money well it turns out that the dow doubled. Well he said commercial real estate was the biggest worry or the banks double he talked about how important it was to be cautious well the s p went up huge. But thats right you have every right to come on air and be wrong theres nothing that says you can come on air but if youre wrong, you cant come back i read the way people you have every right to be as cautious then as now now am i showing disrespect . I am most respectful like my colleague larry kudlow would always say, with all due respect, but then he would ivicerate you. Were going to go to meg and get more on this story. Were just looking at shares of Drug Companies premarket. Of course when people make political comments or have in the past we remember that Hillary Clinton tweet historically they have effected the ibb. Youre not seeing an effect on drug Company Stocks after seeing trumps tweet talking about mercks rip off drug prices. Merck is up. 3 along with the rest of the market pfizer there also in the green this morning so it is really interesting to just see the market shake these comments the sort of threat from the president off. Drug companies, you know, there has been concern in the bio Tech Industry that trump was going to have an executive order on drug pricing. That has eased over the last few months and bio tech stocks have come back as people assume that the president was going to go easy on this space and its going to be interesting to watch to see if ken frazier the ceo of america coming out this morning resigning from the president s Council Making it clear to stand here as the ceo of one of the Largest Pharmaceutical Companies in the world what impact this is going to have on the industry. Traditionally the drug industry has been hesitant to get involved politically particularly among the Biggest Companies in the industry. It was really Silicon Valley leading that charge from the business perspective pharmaceutical companies for the most part stayed out of that conversation but this really changing from ken frazier and merck this morning carl. We had a discussion a few moments ago, meg, about frazier himself. Not just practices on pricing but frazier as a man and a human being. You interviewed him several times. What would you say about him as it relates to this decision. I have known ken for a few years. Having covered the farm suit kals for you guys for about three years. He is very engaged obviously he has done a lot of work in law. Outside of merck he paid a lot of attention to the death penalty. Theres stories about that there. He is a very engaged person. This is a very strong stand coming out as this member of the president S Manufacturing council feeling like he had a responsibility and responsibility as one of the biggest ceos in the country. This doesnt feel out of character for ken phrase torefr Something Like this. Well come back to you. When we come back well get cramers mad dash futures continue to look steady here more squawk on the street is back in a minute what powers the digital world. Communication. Thats why a cutting Edge University counts on centurylink to keep their global campus connected. 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Earnings are better than expected it has to do with Capital Spending and the way people want to be on the web it has to do with the way there is an overarching Capital Expenditures that are going on in tech and its going to ignite tech today tech was obviously up last week and this is so well timed. If youre trying to figure out a reason to start buying they just gave it to you theyre really good guys and for them to beat the numbers shows you how strong business is. Yeah, we talked going into the earnings season about the lack of reannouncements. Earnings came out pretty good although the average stock that released earnings was down on the earnings. We got this take a look at Western Digital thats typical everybody feels and theres comments today that theres just a big fall off in demand and that they made too many chips both maybe even flash but so there is a Semiconductor Industry but were not seeing this in what i regard as virtualization type software. 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