tv Squawk on the Street CNBC August 16, 2017 9:00am-11:00am EDT
this comes after a flat day for the markets yesterday. if you want to check out the treasury market looks like the ten year note is now yielding 2.275% so those yield versus picked up substantially where fr where they were last friday at that time. right now it's time for squawk on the street. earnings in focus as the market studies the president's base of support among briz europe is up fed minutes are headed our way at 2:00 p.m. eastern time. another business leader stepping away from the president as potus doubles down on the both sides rhetoric target beats comps are up, stocks are higher and apple's content ambulance.
we'll get numbers on how much they're looking to invest over the next six months. speaking from the lobby of trump tower yesterday the president said both sides are to blame for saturday's violence in charlottesville, virginia. following those remarks rebecame the latest to re-sign from the president's manufacturing council. this is what he said this morning. >> these organizations at their core, that's unacceptable. that's not an american value it's the symbolism of being associated with it the council itself is totally ineffective. it's never met it's to be able to deregulate industry so it's totally separate but it's the symbolism of being associated with it that we rejected yesterday. >> sort of echos what's on the front page of the journal and
that's below the headline about the press conference itself on the lower left side of your screen or right side the ceo is rethinking twice the white house which is a whole new political calculus. >> when you have the 13th amendment deniers and holocaust deniers in a protest they tend to be in a suboptimal situation since our country does teach there was a holocaust and does believe that lincoln was collect in the 13th amendment so these are big issues for the populous and not just that particular incident a lot of statues to the confederacy and i'm not sure what will happen to them all over the south i have been to many areas and i can tell you that this season going away my daughter was in new orleans and statues are still remaining but have to tell you that the president needs to be careful. i typically would never say that other than in 1972, 74
he needs to be careful because these are preceps held by most of our country and not just by the people that protested and took down the statues. a. >> you don't want to go against mount rushmore we all learned this. >> why isn't it moving the market >> it's not moving the market. go back a week ago where 10 million people in the border of
south carolina were in play so to speak these are still not, the market is completely divorced from whatever is going on. one of my idols. my idols tend to be in business was talking about the dark star and of course that's amazon. we're more focused on the dark star that is amazon than the dark star that is racism and that is maybe wrong. i mean, often times that i wish the market would focus more on something that we think is
important. >> i don't mind going into it now. i took the same classes everybody did. i went to school in pennsylvania and these are things that he we learned and they're long held p preceps and i ain't going back against what i learned or what my folks told me my father fought in world war ii it was a black and white issue. >> yeah. >> black and white. >> the president has been tweeting about that very company this morning for more on that and the day ahead let's get to aman outside of trump tower. >> good morning, carl as you guys have been discussing the president woke up here to face the political fall out from his angry press conference in the lobby here yesterday the president really ripd up the script handed to him the more moderate script handed to him to deliver on monday after his failure to
specifically condemn white supremacist groups and neo-nazi groups on saturday monday he did condemn those groups yesterday though he returned to that rhetoric of both sides. all sides that he had been so sharply criticized for over the weekend. here's what he said just yesterday. >> i do think there's blame. yes i think there's blame on both sides there's blame on both sides and i have no out the about it and you don't have any doubt about it either and if you reported it accurately you would say it. >> you heard the anger in the president's voice there. the emotion. his voice cracking at times during the press conference yesterday. and an event supposed to be talking about infrastructure and regulatory reform in the united states instead deciding to talk about
robert e. lee. they said there were very fine people on both sides including on the side that was marching for white supreme acy at that event. those comments provoked a backlash the likes of which we haven't seen so far in this presidency it's a dramatic moment for president donald trump i want to play you another sound bite here because the president talked about the ceos that have dropped off his manufacturing council in protest for the way he handled the racist violence in virginia. here's what the president said about those ceos >> some of the folks that will leave, they're leaving out of embarrassment because they make their products outside and i have listen lecturing them including the gentleman that you're referring to about you have to bring it back to this country. you can't do it necessarily in ireland and all of these other place. you have to bring this work back to this country.
>> that's what i want. >> the ceos were not re-signing for the stated reason which is over the incident in charlottesville, virginia but instead because they manufacture products overseas. take a look at the list of ceos that left the president's manufacturing council. some departed for reasons earlier and some of them since left their job but a number of them did leave in response to the president's handling of the incident in charlottesville, virginia most of them left before the press conference today one of the big questions today is what is going to be the reaction of american business to the press conference we saw here yesterday. we see the reaction from paul ryan that put it out in a tweet. he said we must be clear, white supre supremacy is repulsive there can be no moral ambiguity. the president tweeting this morning he just tweeted make america great again maga and he this to say about amazon on
twitter. amazon is doing great damage to take paying retailers. towns cities and retailers are being hurt in jobs are being lost it's clear the president would like to talk about something else. >> holy cow. >> amazon is hiring 100,000 people. >> some of these have that many employees themselves tjx put on a clinic about what the american people want this is easier to talk about. >> but to aman's point not just the speck to of resignations but he did address tax reform
yesterday and said it would be here by thanks giving. that's the timetable take a listen. >> we hope we can get taxes done between now and thanksgiving we would like to get infrastructure going as soon as tax comes out of the house and goes to the senate we'll put infrastructure into the house. >> you don't believe that's true >> no, this is such a distraction. >> that's what we all want that's what we want from him and i don't know how he got so
sidetracked on this. he has a chance to to major things to help the american peoples pocketbook and the american companies save a lot of money. he can do it but he's got to do it he did say yesterday that what would bring unity to the country and his answer following that press conference yesterday was more jobs and rising wages, right? that people, that that is universal. >> yeah. that would be great. >> that's a lot to put on an 8 year expansion mild as it's been, yeah? >> yeah, i they the economy nee
needs. it would be remarkable to talk about pipe lines and deregulation. >> the press conference was supposed to be about infrastructure. >> yes that would be great. instead we're trying to figure out who is going to be harry baker. who is going to be goldwater who is going to turn in the republican party you got to get the dial up back to what you got elected for on the economic side as this stuff is very far fuelled. >> yes it is. >> i don't want to talk about it but -- >> what choice do you have you have no choice it is the agenda that's set and our job is to respond and analyze it. >> i'm always on the side of lincoln and eisenhower they're like good. >> when we come back we'll talk
about targets earnings beat and then apple said to be preparing a war chest for original content. also ahead different perspectives on the ceo and the president. we'll talk to larry summers and the president's first choice for labor secretary, former restaurant ceo andrew puzder dow riding a three day win streak and futures are positive. we're back in a minute finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news.
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where you do business. ♪ ♪ we are pleased that second quarter traffic increased more than 2% reflecting growth in both our store and digital channels traffic up sequentially on a 1, 2, and 3 year stack. >> this is when we talk about the stuff that i don't like to talk about and why the market can still go higher. he had three components of his business food and beverage which had been bad. now that's flat.
but this nintendo switch brought people back and made it so hard goods are the strongest in ten years. you're no longer bleeding in food now that could change but this apparel line that i love has very big margins and nintendo switch is the hottest game in history which of course is powered by nvidia. >> it all comes back to them. >> it does >> he underpromised and overdelivered and took a upod strategy here being the theme of the evils this year when we
broke the huddle and that's exactly what he did actually innovation. the innovation of cat and jack of an apparel line when a lot of other companies are relying on brands that had been footballed so to speak. if you go over the quarter a lot of it is we have the brands we don't advertise. >> but there's a lot of pilot programs, one mentioned today where customers can fill a box with home goods for a flat fee. >> i love that and i love the small store format when i talked to brian over and over again like the soho, the beautiful new store in brooklyn not that far from the old fashioned target and you get the sense that target has split personality. you have the new target and a
lot of people say this is was because he lowered so much so that's why the stock is not up 4-5 >> tjx was good. target was good. urban not as bad as we thought home depot was dark star everything else was about amazon the auto parts most of the questions are about amazon >> the president maybe on the conference calls maybe that's what he is doing. >> 100 s&p companies, 1 out of 5, 1 out of 5 mentioned amazon
on the conference call on earnings. >> you know, we have a gold company ringing the bell, if they mention amazon all games are off. >> coach said listen we were protected from amazon. that's a bad thing that hurt the conference call. >> one debate this morning really quick the president tweets about amazon not the first time some argue all he has are his tweets and others argue he has the antitrust division of the fcc at his fingertips. >> the problem with that is that what antitrust organization is going to come out for higher prices for the consumer? in the end there's 317 million people that do win from amazon that's a lot of people i think that's who the organization the people of the united states.
i'm using that as an example that everything can be on amazon but the president's right to question how the people, that this is hurting the people of retail but he should also mention it's been good for the consumer there's a lot more voters than the people that work at these stores i hate to give the guy advance but he needs so. >> when we come back we'll get cramers mad dash countdown to the opening bell and look at the premarket as we get the s&p and the nasdaq trying to go green for the month of august. back in a moment [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony.
opening bell in about six minutes. >> the sound track was better than the actual movie. where's reasons? it didn't work for kidney cancer 40,000 in this country and this was ineffective but the stock doesn't get killed anymore if you notice, bristol, this is when they lost out to merk but bristol stock doesn't want to come in because people in an environment where interest rates are so low and people like growth stocks and the dollar is
now neutral for a lot of companies. the dollar is no longer bad. it's now good. >> on the yield element of this people mention the utility index. record high the first time in a couple of months, does that suggest that reretest the lows of the year on bonds. >> yeah. but yes we're tick by tick because yesterday when interest rates were up a tad and friday when interest rates were up a tad the algorithm said go buy jp morgan and then they said go buy jp morgan. >> market has no memory from day-to-day. >> no, like cars i love cars and i do not count i just have a good memory. >> we'll get the opening bell in 4.5 minutes. don't go away.
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a busy morning as we're watching the retail action and reaction to the press conference yesterday. maybe october is decision time. >> i don't understand how he can continue to get away with the low interest rates and i think trying to keep the euro down, good luck on that. europe was way too strong. he is refused to recognize that europe and many countries have passed the u.s. in growth. i don't understand how he can get away with trade exploitation we focus only on the chinese which say mistake. the europeans desperately want to do it too everybody wants our market this would be what we should be talking about. they're deliberately keeping the rates down and deliberately trying to keep the euro down in order to take our jobs. >> by the way, preliminary 2-2
for the quarter. above estimates of 2-1. >> merkel has her cake and eat it too. >> next few weeks are going to be key for her there's the opening bell and the s&p on the bottom of your screen at the big board celebrating it's ipo today at the nasdaq it's in new york celebrating india's 70th year of independence. >> very worried. a lot of the cell phones have to be made there. now you can imagine the conflict the president clearly wants everything they hear but india really wants things made there as done china. i feel bad for brian for a second because he did open a factory in ireland i used to be an intelaholic. factory was terrific but the
last plant was going to be in the united states. that was a good commitment. >> speaking of intel, fiat chrysler launching a self-driving car alliance today. >> this is a big win because they are close they got their own chips this is a big move this is the steak in the ground brian was telling you was that he pays a huge amount of money and now they're in the car so brian this is a good day for intel. the stock should be higher but people don't like the stock. >> i'm glad you mentioned apple as well. a couple of things, they tapped the canadian bond market and they budgeted a billion dollars for original and licensed conte content. >> they got the guys from break bad it would be terrific i think apple obviously is faang
because the a is a double a. there's a great piece out by suntrust loves the g and the f. >> initiates buys on all of them dark star borrowed money at almost the rate of the treasuries and dark star -- i'm sorry, amazon. >> that's your new name. >> i love it, you know and i did buy flats. those are where you get the actual plants from home depot a few years ago and i complained and he sent me a bag of tomato seeds and said maybe you better start from scratch. >> i remember that day. >> he is so smart. >> we talked about bipolarity of retail today sits green day yesterday was the red day. today gap, l. brands, target. >> no memory gap's going to be good too
look, dick's was a really terrible call and it colors everything was ed stack that's a guy that a lot of people like very much, he bought back a huge amount of stock at $41 was that a waste of money? absolutely he said look it's the worst case scenario coach really took gross margins down that stocked people. it shocked me because the headline numbers were good it made you question the kate spade acquisition. the auto parts companies we still don't know why they're getting killed a lot of different reasoning going on but yesterday was almost all bad and tjx that had a fabulous quarter and put on the great clinic about how to beat all the guys and they're wing and adding new stores, the stock was down because of the etfs we're going to hear good numbers from walmart too
i have a feeling that walmart is going to put good numbers up even for food. >> that's tomorrow >> there's another good example. jet.com hasn't been heard from yet. i love their spending on infrastructure they play with the houses money and walmart is doing a lot of things right we haven't heard all the good news but we will. >> here's an incredible story. i have a train track next to me that runs three times a day. and the state that my house is
in and it's like ksu is the killer for nafta should be a ksu nafta held back. ksu is doing great ksu is the one everyone is shorting and now everyone is buying a lot of irony in the market. >> interesting >> who is going to be with us next time. >> a very dapper fella he had a very, he gave the statement that said listen, we're not necessarily through with the investigation now that is so contrary to what this bank said i would like to know how the ceo keeps his job here
by the way, elizabeth duke what we're find as good that the better we get at digging deeper and looking at various processes the better we get at risk management the more issues we might identify overtime the new information will lesson so it's not the time to say we found everything and it's all behind us. >> i thought it was. >> i thought they had gotten to the bottom of it
up now 5% and then peltz sends a letter back accusing them of falsely misleading statements in their response. >> that's getting very ugly. it's as ugly as the reds how bad they are this year i'm surprised it's heating up but it has been great for the stock. and you said his request is reasonable maybe spend $100 million to fight him on the board boeing stock continuing to go higher because tanl list continue to underestimate it
this is a tough one for me i really like what they have done can't we all get along >> i hate it when you guys fight. >> yeah. proctor is the army. it's better to bring him in and have him do that work. he's not that bad a guy. he said it was great when nelson came in and so did the ceo of heinz so why not.
>> what does richard hanes say you're doing things that one typically wouldn't do in a business the elephant in the room there, you know who it is is doing a lot of things without regard to the bottom line and is getting rewarded for it. the elephant in the room the dark star. >> that sucks everything in. >> those people with 100 different amazon references, does that count? every single month was better than the other month thank you. nice improvement in regular price comp for women's apparel they have now recently moved into positive territory. that's why that stock is up. >> i go back to home depot
but at a certain point can't we say there's good overlap. >> home depot was levered to rising housing prices and i think we have those and it's levered to household formation she said it over and over. >> dow is up 50 point with the help of depo let's get to bob. >> good morning guys, happy wednesday. nice right around the board here 5-1 advancing the declining stocks europe is doing great as well. mostly up 1% they're doing well because there was a piece out of reuters saying draghi is going to put the whole thing off into 2018. we can see the euro down a bit on that dollar is up and the
numbers. what people are afraid of is we don't know where the bottom is for years, 72 or $73 billion year when is that going to end? that's what nobody can answer. so look at target up 3% today and it's down 22% so you can answer that revenue cliff question it's going to be hard to get a notable rally new lows yesterday exxon sat a new low as well. all the enp companies have been a mess because nobody can get the price of oil right all the analysts were saying oil is close to 60 dr$60 a better and the average for oil is $46 that's a big miss.
people thinking they're going to make 4 cents this quarter on april first. they're dropping like crazy and the inability to get your hands around the problem is the big issue here the problem for oil stocks, two simple ones. we don't know what the valuations are and the other problem is a bigger one. investor interest is drieg up. think about this, energy stocks are only 6% of the s&p 500 right now. >> technology is 22% if i'm a hedge fund investor, if i am an active mutual fund buyer i'm going to sit there and say why do i care about energy stocks when i can ride technology and financials and health care that's a huge part of the
overall business that's the problem getting money interested in oil right now. finally i want a note on the earnings picture lots of big news outside of the united states. global gdp right here. you can see this on the earnings picture. companies that have more than 50% of the earnings outside of the united states are reporting higher earnings. less than 50% outside of the united states is only 8.5% the global economy is really helping the earnings picture of the u.s. corporations. let's tell that to washington. right now the dow up 54 point backs to ou. >> good morning to you rick.
see that not much action. however don't let that fool you. look at the one week chart low to high up 10 basis points yields are bouncing back to areas we traded quite a bit before when it comes to japan and the bank of japan, talk about mission control. their central bank has a desk controlling everything whether it's the yield curve, etf, corporate securities, all securities, stocks, everything but it's very fascinating after having said all that, here's year to date of our tens versus jgb tense. first half of the year they core late nicely. do you notice the recent divergence as rates start to move down in the jgbs. we're toying with four basis points that happens to be the lowest level should it close here since the end of may something to pay attention to when you consider what's going on with the dollar yen
same for the euro currency it's losing steam. there's one week of the euro verses the dollar. there's a lot of issues out there but let's not forget mario draghi what he may or now most recently may not say, the jackson hole weekend is starting to take a toll not only on what central banks outside the u.s. will do. >> we were talking oil a moment ago. >> you can see here at wti crude
up. >> oil prices are higher this after api said that crude oil inventories fell by 2.9 million bar rels analysts for looking for a little over 3 million barrels. now traders keeping a close eye on the u.s. government data on oil inventories due out later this morning it would represent the 7th straight week in the u.s. helping to keep prices steady. it's worth pointing out that despite the stability and energy prices they continue to feel the pain check this out both hit 5 week lows in trading yesterday. we'll see if they get more of a bounce today back to you. >> we'll see you in a bit. cisco is due out with earnings after the bell we'll have a first on cnbc interview tomorrow morning at
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spicy and this is well above that. >> i spoke to the gentleman too and can i just say they have a high touch business and i think that rodriguez had done a good job. now i'm close to paychecks finally we got a sell to hold today for paychecks but those of us that use automatic data, it's very good as a vendor to me. i would hate to see them lose that personal touch which is expensive. they do a very good job for people like me who are small, even i'm small to medium. >> that's good color we'll see what ackman has ready to say dow is up 58 points. don't go anywhere.
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for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ we love coach, we love the staff, we love the fans because we love ou let's get them this year >> on three. >> what are we doing
>> take no prisoners. >> upon. upod on 3. >> upod. >> the importance of under promising overdelivering there you go that's the fill eagles in training camp. and one of the reasons why the stock isn't flying is he did underpromise and people figured out upod in his game but i think in philadelphia it's a necessity because if you say you're a dream team or you'll win a lot of games you could be slaughtered by the fans. >> would have made a great nfl coach. >> congratulations to them. >> what's on mad tonight >> we just got kl which is the
company that rang the bell but more importantly we have joe papa and when joe was on last time you could say we were hard on joe and joe cleaned up that balance sheet and joe has done a lot of the things that people didn't think they could do i can't wait to speak to him by the way, philadelphia. >> we'll see you tonight at 6:00 p.m. eastern time when we come back different takes on ceos re-signing from the white house council. we'll talk to one time labor secretary nominee. dow is up 62
>> good wednesday morning, welcome back to squawk on the street wilfred frost here at post 9 of the new york stock exchange. take a look at the markets good action at the open. dow is up 67 a lot to watch not just the president as he returns to new jersey but also fed minutes this afternoon retail earnings and renegotiations of nafta begin. >> our road map for the hour begins with rolling fall out
more business leaders distances themselves from president trump after he doubles down on his response to charlottesville. >> trian urging to vote peltz on the board. >> plus a shake up on the board of wells fargo nominating a new chairwoman. what she said about helping the bank put scandals behind it. >> more including reaction from the business world. >> that's right. all quite here at trump tower in contrast to the press conference yesterday afternoon. so far no major comings and goings here. we just say the wife of eric trump entering a few moments ago. family members coming and going. we haven't seen the major figures yet today.
the president said they didn't do it for stated reason. but instead did it because they're embarrassed that they're manufacturing american products overseas here's what the president said. >> some of the folks that will leave, they're leaving out of embarrassment because they make their products outside and i have been lecturing them including the gentleman that you're referring to about you have to bring it back to this country. you can't do it in ireland and all of these other places you have to bring this work back to this country what i want. >> president also facing the resignation today of the president of the afl cio that explained his reasoning for why he stepped off the president's manufacturing council.
>> these organizations at their core are based on racism and bigotry. that's unacceptable. the issue is separate from the symbolism of being associated with it. the council itself is totally ineffective. it's never met to be able to deregulate industry so that's totally separate but it's the symbolism of being associated with it that we rejected yesterday. >> glies are a large number of ceos on the president's various business councils that have not spoken out publicly and have not said one thing one way or another whether they're remaining or departing from the council. you can imagine the pressure along with the pr staffs as they huddle and try to decide what to do here is going to be enormous. back to you. >> absolutely. some of them trying to figure that out as we speak
thank you. for more on the current climate between president trump and ceos we're joined by former cke restaurant ceo welcome back to the show. >> great to be back. >> we have been very eager to talk to you do you disagree with the actions of the ceos that have stepped off of the manufacturing council in the wake of charlottesville? >> i think they certainly have a right to step off if that's what they choose to do. it's short sited the councils are set up to increase economic growth they increase jobs we're working on tax reform, regulatory reform. all the things that make a big difference to american businesses you have a voice at the table why give up that voice ceos have to make decisions based upon long-term with respect to policy. there's a lot of different
factors that figure into it but i think with drawing is shortsighted. >> do you wish the president would have been able to more specifically denounce hate groups likewhite supremacists. >> he said that racism is evil he said that the neo-nazis, the white supremacists were repugnant to our american values there's tapes going back to 200 where president trump makes comments that show he has no support for or tolerance for racism or these white supremacist groups could he have been stronger. >> he said there were fine people at that rally he was thanked in a very public tweet by david duke from the kkk after his news conference yesterday. is that going to send the right message for corporate exec withdrew tifs that stand by the president's side. >> number one you can't control who supports you or comes out
with statements in favor of you. so i can't deal with the david duke issue you'd have to talk to david duke as far as the president's comments, i'm not sure what he meant by there were good people on both sides. i think he was trying to come out with a statement that opposed violence in general no matter which side it came from and i think that's a fair statement. i think he wanted to let people know that everybody has a first amendment right and the aclu which i very rarely agree with but in this case they defended the people on far right, the alt right in this situation so i think he was trying to be balanced and was very frustrated when this attempt to appear balanced was used against him. so i'm not sure what he meant by that exact statement but i think in general his comments he did condemn the violence and the racists so i wish he done more but he probably wishes he had done more but at this point we are where we are. >> how damaged do you think the president is how much pressure is he
personally feeling from these resignations and comments from ceos and also comments from various republican members of congress >> he'll be fine politically i'm more concerned about the agenda we're obviously having very difficult times with repealing and replacing obamacare. i'm concerned about the agenda and his ability to move it forward. i think long-term politically he'll be fine but this say problem in the current day. >> what if the criticism, the public criticism and or even resignations spread to his own administration, members of his cabinet or close advisers and do you think that's likely?
it would depend on who re-signs. i believe he's on the team he's very essential to the team. there's people that are essential to the administration. >> is batz of republican opposition democratic opposition? do you see him being isolated from the business community? why are you more concerned >> i don't think he's isolated from the business community and particularly small businesses which really generate a lot of the jobs in the country. all i hear from the people that run small businesses from franchises and other people that run independent businesses is they're not wroirorried about ts going up and the upside is they think we'll continue to get
regulatory reduction and maybe tax reduction. so what i'm more concerned about is the senate. we seem to be unable to get things done in the senate. it's a problem with republicans. but right now it's a problem just getting republicans to come together to advance the agenda i'm more concerned about that than anything else. >> did yesterday's press conference make that more difficult or less so. >> it was already difficult. i don't know whether or not it's more difficult or not. you have some senators that weren't pleased with the press conference we have an he election coming up in 2018. they're all going to be thinking about that i don't think any of them want to have president trump out against them whether or not they want him to come in and campaign or endorse them we'll have to wait and see but it does effect the agenda. i'm hoping question get past this around get on to discussing
the economic, let's get back to the important issue and what's going on in the economy. >> but the role of executives in trying to figure out how to do tax reform and infrastructure spending, this whole debacle and the fact that so many ceos left raises questions about the efficacy of the councils to begin with does the president listen to his ceo advisers >> the president he is really a guy that's very open to other peoples opinions and if you make a convincing argument he slg to listen and take what you have to say into consideration and adjust his position to fit the new circumstances that you bring to his attention. i think we have seen that since he has taken office versus what he said during the campaign. he now said look i learned a few things and my position is different on this or that issue. she willing to listen so i would encourage people don't give up your seat at the table
if you have a chance to influence policy don't give it up or walk away or let people drive you out of the room. it's very important to state their two cents. i was happy with jamie dimon when he came out a week or two ago and made his statement two years ago he would have never made that statement. he would have been afraid to say anything so american executives willing to speak up is important don't walk away from the table stay in the game and let's see what we can get done. >> yesterday the president was asked what would he do to improve race relations in the country and his answer was one word, jobs what do you say to that? is that actually the solution to the root cause of the issue? >> it's an important solution.
when the owner of the shop gave me the key and told me i could open up in the morning that was one of the proudest moments of my career. i felt like i owned the place. that's the feeling that keeps you in skoochlt it's the kind of feeling that makes you want to get more of an education it's the kind of feeling that keys you out of gangs and supportive of your family. it's the buy into the american dream. if we can get people working and give them a buy into what elevated all of us then we have a chance of improving race relations. we have a chance to improve things you and jobs are a big part of that and the feeling that you're engaged and participating would be hugely helpful. >> would there be anything that the president does that would make you not support him is there a line that's too far to cross >> sure. if the president had not come
out and made comments about the evil of racism or saying these white supremacist groups were repugnant, if he hadn't done that i would have had some real serious concerns about where we're going. however even the members of the alt right have a first amendment right. he hasn't done them yet but he has done things. >> he may be giving you a call he has some vacancy for some council. >> thank you for joining us today. former ceo of cke restaurants. >> when we return a bright spot in retail today. target beat the street on the top and bottom lines we'll dig through what it means for the sector plus former treasury secretary larry summers is with us we'll talk to him about that and
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can we put a lid on some of the troubles they have had in the past >> we have seen this before and sometimes it hasn't been that consistent it's a step in the right direction and they're doing a lot to improve their business but we need to see more sustainable improvement for tous feel better about the direction they're moving in. >> any reason to think that it's getting less lumpy over the near term here now? >> i don't think so. i mean yesterday we had dick's sporting goods come out and give pretty negative views on the retail industry. we're hearing that consistently across the industry that retail is challenging and target did put up a good result for the
quarter specifically on the top line but the question is what did that cost target the bottom line, the operating income was down double digits and so while they're growing sits cost of that growth that i think investors are questioning today. >> is that why we have seen a pull back in the share price since it's initial 3% gain >> the issue is that the overlay now in terms of sentiment and consumer disgrecretionary is interest a very negative bias across the street because of the competition from amazon so why you see positive improvement in
stocks is when you do see some hints that maybe they are competing more effectively against some of these secular competitors that have emerged and been competing more effectively. that's what people are looking toward but it's right to look at every aspect of the business traffic was better but you have to look at margins and see how they're competing. >> how do you pick a winner then in this environment? and we did see shares of kors and ralph lauren last week but then urban outfitters look what they reported last night and the stock is being rewarded for that. >> it's a good question. >> they either provide a service to the consumer or innovative products
things the consumer is not necessarily used to so they want to experience it in a physical world before they buy it that's hard tore come in and take that market share. >> quickly here, characterize for us the competitive pressures and the difference in those pressures between grocery and apparel. at least at target. >> it's a highly fragmented business you have a lot of competitors in that space certainly the acquisition of whole foods turned everything on its head that's a dimension that everyone is going to contend with and then apparel, there are secular concerns in apparel in terms of how much people are spending on apparel in general as a percentage of wallet and all the price competition that's happening as well. thank you guys. >> thank you. >> still to come, a major shake up of the board at wells fargo
we have a pretty broad base raldly dow is up 72 points. let's go to rick santelli. good morning. >> good morning and thank you sarah. here's a man that needs no introduction he has been roaming the halls of exchanges since the carter administration maybe earlier than that. >> no. >> when it comes to news, i read newspapers, you read newspapers, watch tv, read blogs but i still say the biggest story of all times gets no coverage of course he's not going to put the short story here is everything in everybody's lives in every country from the richest to the poorest is going
to be effected by how central banks deal with the policy they create and it's crickets in terms of having any understanding of what tsunami of financial chaos may arrive. >> it doesn't matter it doesn't matter to the general public as long as the equity market comes up. trump doing this doesn't matter. nobody cares it doesn't matter and it goes back to bill gross and those that are also copy catted. he's been out there. >> for those that don't trade every day, see that? that's the treasury options pit. selling calls, selling puts and there's a high correlation between that and the size and presence and footprints of central banks. >> listen, he has been dead
right. from 2010, 2011, don't fight this, they're going to supply the equity that i need and they have done it and because they're still there, classic case. most people don't know that at the close of last friday the ecb bought 25 in assets. they still have 25 million to buy. >> exactly and you have to follow and which is more you have to buy even though they violate their own rules all the time but they'll buy $60 billion. it's $140 million. >> let's look at the markets
now. >> that's strange until we had conversation quickly finish and let many viewers understand why these seem to occur. >> the french yield 74 i'm talking about the ten year and the italian is 202 i think so it's just a search for yield. >> so it's to spread relationships. the best credit is the bunds get cross traded and may move in a counter intuitive fashion. i could talk to you for hours. thank you. back to you. >> thanks guys, when we come back a new push for nelson peltz to be nominated to the p&g ard. dow is up 70 points. don't go away. stay with me, mr. parker. when a critical patient is far from the hospital,
>> think about what you have seen reminiscent of germany in the 1930s. the president has to totally condemn this and this is not about winning an argument. >> baltimore removing 4 confederate statues under the cover of darkness this morning hundreds of people are still missing after mud slides and flood waters in and around the capital killed more than 300 people many of them trapped as they slipped. with more than 600 people still unaccounted for, the death toll
is expected to rise. you're up to date. that's the news update this hour sarah back downtown to you. >> sue, thank you. a new development to tell you about in the proxy fight between procter & gamble and investor nelson peltz who is pushing for a seat on that board they're telling them to vote for peltz, that latest shareholder letter sent this past monday was full of false and misleading statements intended to justify maintaining the status quo at p&g. well, today they say that was completely wrong, the whole point that nelson peltz is trying to get on the board to satisfy his investors. he has the best intentions they say and just once the shares to perform over the long-term here's the argument. they do own $3.5 billion worth of p&g shares. they have underperformed they point to specific me tricks like organic sales growth.
volume growth and earnings growth as well p&g got more personal this week saying that peltz backed company returns weren't as strong as the overall industry and that he only wants a seat to satisfy his partners so clearly guys this is getting ugly and here's the question for shareholders ahead of the october 10th vote. they're pointing to the fact that he has decades of experience advising companies like mondelez, sis coe, heinz, when dis how beneficial it is to have him on the board it's all a big distraction and doesn't bring new ideas and they don't need to have a shadow management team that they typically bring in according to their allegations. which way will shareholders go a lot depends on your time frame of when you're looking at the stock performance because they say over ten years under performance, p a&g said over th time the stock has out
performed. >> how much do you think is strength in numbers in terms of activists attacking this type of company you throw in unilever and buffet and 3-g, you have the nestle third point issue there's similar criticisms in terms of what they want the companies to change and let's jump on the band wagon. >> i'm not sure they're doing it because, they're not banding together and plotting to do this i would say though it does highlight some of the weakness in the consumer staples business right now. household products, food and beverages, none of these companies are growing top line a lot of them are vulnerable a lot of them have many costs to cut and that's been going on for the past few years and the question is now what how do these companies get growing again? they have been challenged by e-commerce and the way consumers changed their behavior and shop, eat, consume products every day like tooth paste and as a result they're vulnerable but p&g is an interesting case because it's got this new ceo, it's shrunk,
it's slimmed down, spun off a number of brands and this is the biggest company ever to face a proxy fight so it will be an interesting test. >> and on today's time frame it's up. >> it's been good for the shares. >> indeed. now corporate news wells fargo announcing big changes to its board after a year for the country. steve sanger will step down and elizabeth duke will replace him. he joined in 2015. oi spoke to the outgoing and incoming chairs last night the first takeaway is the reason for the timing for this announcement is not related to the recent filing revealing problems but more interesting is that i ask duke whether she is confident that his recent
turmoil was behind the company i got a very unconvincing response it's hard to say what we're finding is that the better we get at digging deeper and looking at various processes the better we get at risk management the more issues we mighted idea overtime new information will lesson but it's not time to say we found everything. she also seemed to imply these are going to exist in all companies of her size and she said her own 75% was unacceptable and would rise next year which would point out that duke is now one of the most senior women in the u.s. banking space. of course the first chair of one of the big six banks. >> amazing story all of these corporate dramas, uber, wells, p&g >> my question on the wells, why isn't she saying that everything
is behind them if the ceo said that >> that's the big contrast to what we heard particularly in the last six months from the ceo who seemed to suggest it's going behind him now i'd say the tone of what she was saying last night was that this relates to everything that they're looking at so not just the cross setting scandal but now they're finding issues elsewhere. >> well today has been in the works for months the three countries coming together for the first time in nearly a quarter century to
revamp this agreement but a u.s. trade representative came out swinging with hard hitting comments while he talked up some of the benefits to farmers he said overall it's failed many americans. by some estimates it's cost 700,000 american jobs and in some cases more and he agrees with the president that this is not a deal that needs tweaking that it needs major improvement going forward. canada and mexico said the trade deal has been successful trade with the u.s. is largely resip res reciprical and on balance. their major goal was to do no harm in these negotiations canada said they don't measure trade successes so clearly some differences on display as the three countries try to reach a compromise on how to move forward today. back to you. >> thank you
we'll be watching that as nafta is renegotiated. business leaders re-signing from the white house advisory councils in response to the comments after the violence in charlottesville. in this blog post yesterday larry summers criticized those still remaining on the council saying they should all quit. joining us is the former secretary of the treasury. it's good to have you back. >> good to be with you. >> you have been critical before coming out of the paris accord and the blueprint on taxes you said you thought the treasury secretary should re-sign back then. is this any worse than those episodes before? >> this is unlike anything we have seen before there's room for debate on policy issues. but this is producing basic american traditions of justice
inclusion and fairness one could not have imagined a president of the united states who would endorse white supremacists or put them on equal moral plane with those marching in support of civil rights i don't understand how those who are supporting him are able to face their children. >> he didn't endorse these group or in fact he said he's not putting anyone on a moral plane. you might have misspoken there. >> he is -- i didn't misspeak. he is equating white supremacists, one of whom drove an automobile into a crowd of innocent protestors with those in support of civil rights no previous president has taken
any position remotely like that. when children were trying to enter schools in little rock president eisenhower did not he quake those supporting them with the racists at the door. when the marches took place in birmingham, alabama, president kennedy knew in which direction the arch of justice bent this is an action that is without precedent in the last century in american presidential history. but more importantly the question for the companies and leaders of companies and leaders of institution that hold themselves out as leaders in society of whether they want to
lend legitimacy to this, i cannot understand why others have not followed ken frazier out the door i cannot understand why they have not endorsed his courageous action this is not a happy day for american business. >> well one thing and i don't want to put words in their mouth but why not do what doug mcmillan did, he con delled it in harsh terms but he also said that he had a responsibility to stay on and help influence policy do you not sympathize with those ceos that don't want these groups coopted by like mind people and who do want to still remain influential even if they disagree completely with this president? >> every one of history's evils is aided and abedded by those that maintain the fantasy that by remaining in support they can
somehow be effective it is egoistic di delusion to suppose that it doesn't meet once a month and does meet for an hour or hour and a half gives one substantial purchase or effectiveness over public policy and it is absurd to suppose that the ceo of walmart wishes to speak to anyone in the senate, anyone in the president's cabinet or key officials in the white house he will be unable to if he is not a member of the president's council. he is not fit to be the ceo of walmart if his judgment is so bad as to suppose that being a member of this council is giving him some kind of effectiveness what he may be, what he may be and what a number of ceos are is scared scared that if they leave the
president using the tools of government will retaliate. and if president trump has brought -- >> is that a legitimate fear. >> if he brought our country to the point where ceos cower that is a particularly bad indictment far beyond anything in charlottesville of his presidency reality is, that if ten ceos together announce that they were leaving thera blow for justice in america and their long running interest and because it would help to overt the lack lash that would
some day come. >> we of coursediscussed a lot y >> companies get into bed with politicians when it serves their interest and quick to run away when it doesn't. none of the departing ceos likely believe he is a white supremacist or nazi sympathizer. they just see no upside in being associated with him. what's your view on that as a possible explanation for why some ceos re-signed? >> i can't speak to the believes of particular individuals but i can speak to what impression you would form from reading the headlines in the leading newspapers of this country from the utterance of not just of democrats but of republican officials like paul ryan you'd get the impression from them
that the president is uncomfortably close to white supremacists i don't see how you can look at someone that maintains steve bannon in a central position as an adviser and not think that he is uncomfortably close to white supremacists so while i will not speak for ceos i'm very comfortable speaking for myself in being in very little doubt that whether out of sincere conviction or out of political expediency our president is supporting racism. >> mr. secretary in your piece you said business confidence is the cheapest form of stimulus. business is high, consumer sur vase are high markets not far from a record high how is that lacking? >> i didn't say that this was
upsetting business confidence. there's all kinds of developments in the economy. largely unrelated to public policy in the last nine months that do give a basis for businesses to see strength. >> they were directed at streamlining approval so they could build infrastructure projects more rapidly in the united states and get rid of some of the terrible delays that account for our crumbling infrastructure how can a friend of economic growth think it was good that
the whole topic and whole initiative was hijacked and sidelined by a the president's enthusiasm or his tolerance of people who from time to time put sheets over their head and ride arou around. >> do you feel sorry for them because they may in a position so close to the president that they can't criticize him they're not free to do so? >> if you want to remain in an administration you can't go attacking the president but there's a strong tradition in america of people of principle when they are sufficiently offended and disagree with their president on matters fundamental
re-si re-sign. there's been no resignation on principle by the political appointees of this administration. >> i don't know gary cohn to be in a position to judge he has to make a very complex moral calculus but the idea that no one in that administration has chosen to re-sign on principle, think about it the administration last night circulated a set of talking points saying that the president had done exactly the right thing with his statement yesterday that means -- i know how a white
house works. dozens of people were involved in producing those talk points disseminating those talk points and repeating those talking points is there no one who knew that they were wrong and who didn't want to be part of that? i find it amazing. if anything a tenth as troubling had happened in the obama administration or the clinton administration, there would have been resignations. >> mr. secretary you said mr. cohn has to make a complicated moral decision in his own mind once he had time to do that and he weighed these things, him and other appointees would you consider him morally corrupt if he decided not to re-sign? >> i think anyone who remains in the administration bares responsibility for lending their legitimacy and reputation to an administration that by my lights
is traducing american values.va. i have no monopoly on truth. and so it's judgment for each individual to make and i'm not prepared because i can't walk in other people's shoes to make that judgment for them i am prepared to look at the collective of officials in that administration and find it astonishing that no one, no political appointee to my knowledge, has yet chosen to resign i think that's something that, as this plays out, they will like the people who surrounded richard nixon, live with that for the rest of their lives. >> which brings us to one last question, mr. secretary, even
the president's harshest critics argue that having mass resignations or people of influence leaving him puts him in isolation, operationally, logistically, informationally, and that has consequences on the country as well. you're willing to live with those, i assume? >> no. that's part of the calculus that an individual has to make. and certainly some of the people in the most responsible national security positions, i can understand a feeling on their part that their presence is needed to prevent hugely and temperate and dangerous acts at times of hatred or intervention in the world but for those who work in the political staff n t, in the communication staff, in the legislative staff, in the range
of cabinet departments, i think it's hard to invoke that calculus in a serious way. i think the experience over time is that people maintain their desire to remain in power and to not rock the boat. and that's how evil things happen there's always evil in the world. there's always wrong in the world. but the question is whether there are people who are prepared to make the judgment that the emperor has no clothes and prepared to act on that judgment whether it's enron or whoever, what perpetuates wrong is those who try to maintain neutrality in the belief that they can
somehow be effective >> i think we should name names here here are all the companies that have either not spoken out on this issue or have decided to remain on the council. dow chemicals, general motors, ge, campbell soup, boeing, cleveland clinic, gm morgan, walmart, blackstone, j&j, newall brands, black rock, bcg, pepsico, ihs market, new core, lockheed market, 3m and damon. you are saying all those companies have ceos making the wrong call >> yes just as there were large numbers of companies that practiced anti-semitism in the 1930s and the 1940s. just as all of those companies would have been resistant to employees decades ago.
just as many of those companies would not have entertained an african-american or a woman in a senior management position several decades ago. and we look back on that and we don't understand how that could have been. historians of those companies will look back, the companies will look back and they will praise the ken fraziers, they will praise the intels and they will see that there was a large group that missed the moment absolutely >> we brought you on to talk about the op-ed, mr. secretary, real quick, dudley said cohn would be a reasonable candidate for fed chief. putting your comments just now aside, do you agree with that assessment >> i'm not going to get into personalities on the fed but i think it will be a challenging period ahead for
whoever becomes the chairman of the fed. it's unlikely that the economy will be as tranquil over the last -- over the next four years as it has been over the last four years that's important to credit janet yellen's leadership. i think she's done an excellent job. >> mr. secretary, the op-ed obviously got reactions on both sides. we truly appreciate you coming on the air to flush it out for us it's good to see you >> good to be with you >> larry summers, the former secretary treasury. >> i think if you're one of the ceos watching the show and hearing the former secretary calling them out for being morally bankrupt in how they can face their children standing side-by-side and implicitly endorsing the president for this, it makes me think, there's already these discussions going
on inside boardrooms and pr departments and among ceos and i understand it's a tough call they have constituencies, especially if you're a consumer company and you have the responsibility to engage on policy, but this is certainly not a clear-cut choice >> i think also we should just add, you said the word implicit, that's important, some of the things the secretary was saying, he was suggesting in phraseology that, for example, the president had explicitly supported some lists. the reality is implicit and it is worth clarifying. that was a clear strong 15 minutes of one-sided opinion from the secretary "squawk on the street" will be right back. don't go away. let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim.
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freeport, international paper, westrock and the mosaic are the leaders. we'll see if that continues. back over to you, carl it is 11:00 a.m. at trump tower in manhattan and 11:00 a.m. on wall street. and "squawk alley" is live ♪ good wednesday morning welcome to "squawk alley." i'm carl quintanilla along with