First National Standards to limit Carbon Emissions from power plants. At t releasing the first given the completion with direct tv of that deal. And more monthly auto sales due today. Chrysler and nissan are out. Coming up soon ford and General Motors. First up wall street is gearing up for the first trading day of august. Last month the s p rose almost 2 . Dow up 4 . The nasdaq the best performer of the three, up 2. 8. Greece, the stock market finally opening and tumbling after opening for the first time in five weeks. Trading suspended in late june as capital imposed. The biggest crash ever and their pmis are at 30. Youre talking about a Great Depression there. The makeup of that decline, cocacola, greece greek Cocacola Company is a huge part of that index. Thats down about 10 . The banks are down because i think theres a sense that the banks have to recapitalize. But remember, there are strict rules about buying stocks in greece. Its viewed as a way to do capital flight. So theyre really littled. Were kind of taking it in stride. I think were very concerned about china. Once again, the Chinese Market goes down and the pmis are weaker there than we thought. Theres no doubt about it that if greece were to just start functioning again, then you would see some good numbers in europe. We have been having some pretty decent things occurring there. Greece is bad. The rest of europe is a little better. China not good. I dont know china. I mean its just not good. We have some additional pmis out of china overnight. The official one is at 50. Roughly in line but others at 47. 8. Thats a twoyear low. Youve talked about them being the marginal taker of everything. That explains why there are new Raw Materials at new lows. One of the things thats interesting about china, no hedge fund i talk to trust these numbers, and yet, what would be the real numbers . And i do think theres a general discussion about how much the stock market represents the real economy, and i think the stock market can represent some of the consumer portion of the economy. The socalled real economy, manufacturing side is very bad. Thats how you see iron hit and trading a lot. You see a glut. I think people are saying oil, iran comes on total of 1 million a month from now. China is not the marginal taker anymore of oil. The china picture is more grim than i want it to be. Europe is better than i want it to be. Maybe they could balance out. Maybe they do but you take a look at copper or more importantly oil. In particular whats happened over the last few weeks, and i wonder whether, when does good news become bad news j so to speak . Thats a great question. If you read the exxon and the chevron call i dont think theres such a panic at these places but theres a sense of wait a second. We thought there could be a v of recovery recovery here, and then a year recovery and now theres no recovery. Thats a very big change of stance. And as we pointed out, its not that its going to impact their stock prices but not their Balance Sheets in a meaningful way where people need to get worried. But second tier third tier we need to start having the conversations again. I agree. A lot of the questions were exxon, you have the capital. Do whatever you want. Isnt it time to do m a . Theyre a big company, but it does address these questions. They say well do whats right. But they didnt say were looking for bargains and i think that was people. Chevron said well do whats right. Well support the dividend. Exxon cuts back the buyback. They bought a lot of stock higher. Then you question if they know what theyre doing. I think theres a great longterm view. But i think a lot of people felt it isnt just the time for the consolidation talk. You didnt get that from exxon. And certainly not from chevron. As far as the markets, august down four of the past five and its been wild swings. Last year up 3. 8 on the s p n. Some of the prior years, down 3. 1. Down 5. 7. This is a very thin market. Its just i think that when you see news theres going to be an overreaction. Theres another question about the volatility being great after the earnings. Theres not as many players, individual investors trade etfs now. I think that were going to overreact to anything. Anything that happens, we will be overreacting. Thats why this week is so important. I think retail sales, i think well react. Well react to every piece of data. Were going to be like wow. Its glaring. I saw china was down. China down again next time. Wow. We cant have china fall to the nasdaq. The nasdaq trajectory of 2,000 overlayed on the chinese trajectory, you cant see the difference. The president is expected to unveil new rules for Carbon Emissions. The white houses clear power plan will increase the required decrease in National Standards to limit Carbon Emissions from power plants. They are looking to reduce the levels by 32 . The National MiningAssociation Says it will seek to block the plan in federal court. Mcconnell is advising governors not to come ply, period. Alpha natural today filing for chapter 11. This is amazing. If you look at the coal loadings this week coal is this was a glacial decline of 2 . Now its in the areas that are coal states. Its just almost as if theyve stopped taking coal. Now, alpha was the coal that you need to make steel. The thermal coal i think most of these plants that theyre closing are 40year plants. They have a 40year life. Coal is still 35 . It is. They want renewables to get up to 32 . I think its 2022 when the states have to start complying. This is not dissimilar from the plan weve all heard about. Its not as if coal hasnt been in decline as a result of cheap natural gas. They are favoring Nuclear Energy which i think is interesting. Or not favoring but including it in that total. I speak to almost every single major Utility Company in this company. There will be no Nuclear Plants built. But thats a cost thing. As part of this plan theyre saying nuclear is okay. We cant make them. They dont know how to make them. There are a couple coming online. A huge overruns. The rate base has to bear it. I think the main thing is when a coal plant is retired, its a natural gas plant that replaces it. The rex pipeline is going to be able to take all the natural gas you need to the southern. Coal is dead. Its wind and solar that they really want to replace it not necessarily more natural gas even though it has a much smaller carbon footprint. You also need billions and billions in infrastructure to support it. Especially the people who put their solar panels on their roofs and are sending the energy back to the power company. The Utility Companies said they can be wiped out. The solar people say thats ridiculous. Theres 50 million roofs in the company. One thing i would point out, all these utilityies say this stuff is fabulous when its windy and sunny. The rest of the time works in some parts of the country. And then the battery. Baseline the level you have to have, coal is going to be in the mix. These Companies Just when you buy alpha natural buys mas si at a good price. China set the price for coal for a long time. They were talk about putting a coal plant up every week. The problem with coal the Chinese Communist decided that with the Million People dying every year of respiratory illndillnd illndillnd illnesses, maybe we need to pull back. And well be joined by a senior advisory overseeing these things. At t announcing its going to bundle its offerings with direct tv. Beginning a week from today, at t plans to offer h. D. And dvr service for up to 4 tv receivers, unlimited talk and text for four lines. All of this part of the combined offering part of the deal that they at least offered up as an opportunity for the consumer when they were in the midst of trying to get it approve nfltd they finally did. They closed it on the 24th of july. That being the purchase of direct tv and the Analyst Community seems to slowly come around to the benefits of the deal. At first people questioning it. The most important component being the addition of cash flow that will help solidify that dividend. We know the payout ratio was getting close. But well see if this gives them any traction in the overall marketplace. We know how competitive its been. We all seesaw the t mobile numbers after we got verizon and at t. At t and verizon, he may call them one thing but they are also big and biggest. Right. I think its a substantive issue that you might want to buy at t more than you did before. I keep thinking that verizon has always been the fairhaired Company Versus at t and ten t mobile comes in and john legere in this whole grill of methods he has going sl there is eviscerating people. I think its good. I like at t. Its a better bond market equivalent than it was before the deal. Ford and gm are putting their numbers out in a moment. First well take you to san juan for the latest on the puerto rico debt crisis. One more look at the market and more squawk on the street in a moment. Hello. I am a fully automated Investment Advisory service. I can help you choose investments. Monitor them. And rebalance your portfolio. I can do a lot of what humans can. Except have a real conversation. If youd like that, you can always speak to someone at schwab. They arent algorithms. Try not to hold it against them. Say hello at intelligent. Schwab. Com ford just about to release the auto sales for july. We are in chicago with the numbers. Good morning, phil. Reporter a big month for ford. Sales increasing 4. 9 last month. Thats double what the street was expecting. It was expecting an increase of 2 . And what really drove ford trucks and suvs. In fact, when you look at the suv sales last month, up 13. 4 . Trucks up 5. 7 . And first of all, the f series alone, ford sold more of the f series alone than it did all of its other cars combined. Thats ford and lincoln cars combined did not outsell the f series which speaks to the demand thats out there for that truck. And when you talk about suvs being in style right now and in favor, especially with lower gas prices Ford Explorer sales up 27. 2 last month. Gm numbers in about 15 minutes. Thank you very much. Phil of course this is a difficult situation for people at home. You keep seeing these amazing numbers from ford. You keep seeing them do everything right. Then you think why is the stock always at 14 15. These are Big International companies. Even though ford isnt as big in china, people say where is it going . Its big in latin america. The focus in china is on those sort of second tier and third tier cities. In the Earnings Call he said were bullish in china but its going through fluctuations. Well work through it in a positive way and grow the business. That from the Conference Call. And you cannot do better than mark is doing in the United States but he is stuck with ford being a world company. Theyve done a lot of things right at ford but in the end when people say why isnt that theres a doubling in the numbers, why doesnt et go back to where it was in 2011. Its a Big Worldwide company. Concerned about latin america, i am. Europe, gm is ahead of ford i believe in the turn in latin america, but these companies are widely considered to be only a portion as america and we dont want to make too much of their sales other than to say theyre doing pretty great here. Its not enough to move the needle. Amazing. Amazing how big these companies are that it cant move the needle. Lets get to puerto rico now and the latest on that crisis there. A weekend deadline came and went without the u. S. Commonwealth making key payments. We are in san juan kate. Reporter good morning. A 58 million payment does not appear to have been made. They still have a little grace time. Im here with a delegate from the u. S. Congress. Hes puerto ricos nonvoting representative in the congress. Hes recently within minutes issued a press release condemning the governments decision not to make the payment. It is the first time in puerto ricos history that the government fails to honor one of its payment obligations. Regardless of the fact that the constitution of puerto rico does not specifically guarantee this payment, it is the moral obligation of our government at the very least. It is our name our credit worthiness at stake, and the funds were available. Its just a matter of the strategy that the government is following to force creditors to come to the table to negotiate. I disagree with the strategy. We should be making your payments and at the same time to the extent you need to restructure any obligations, then sit down and negotiate. You shouldnt fail to make any payments. Reporter you think this posture, and youre political opponents. Youre going to be running against him in the next week. Why does it harm the economy and the people sneer whyhere . Why do you consider it detruktive . This particular bond issue was marketed a lot in puerto rico. They are coops like credit unions, individual investors, banks, who are going to get affected by this failure to pay. And so with this keep in mind that the underlying problem we have is lack of growth in puerto rico. We need Financial Institutions to be able to lend to local players. You dont want to see borrows losing access to the credit market. Exactly. A lot of these people are retired people who trust that the government would be making it payments as it has always done. Apart from that what i see here happening is i dont see government officials negotiating with creditors as they should. With the sense of urgency that they should have, particularly with the Puerto Rico Power Authority as we speak, and down the road with the puerto rico water authority. We have to leave it but back to you, carl. Thank you very much for that. Well count down to the mad dash with jim and the opening bell in a moment. One more look at the premarket. Copper in a bear market and oil lower in the weakest Consumer Spending in four months. More squawk on the street back in a moment. Here at td ameritrade, theyre always working. Yup, were constantly making thinkorswim better. Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Time far mad dash on this monday ahead, of course the market open a few minutes from now. I want to talk a little sears with you. They havent actually officially reported, but they tell us theyre going to experience the fourth consecutive quarter of improved adjusted ebita compared to the previous quarters. Despite the fact that it looks negative. You look at the comp stores and youre talking down 10. 7 . Sears down 13. 9 . Because they did this offering they have 1. 8 billion in cash. 3 billion if you include the resolve. Re revolver revolver. They can keep the balls in the air because they have a lot of capital. And we might like their ebita going up but in the end as we learned from the sell off in whole foods, if you dont have same food sale growth they turn on you. Im starting to wonder if thats true. Well thats a good point. I mean i think in the end theres a big short squeeze going on. We should point out, its only a 2. 2 billion market value now. Obviously a lot of spinoffs and a lot of other things theyve done but its a tinny company now. They did do a reit. Right. Srg. Im going to ask them tonight, black stone, a spin off. Now clorox. Theyre interesting. People are selling it down. They they think its not that special a number. This is a great bond market equivalent. I find the markets fine. I think everybody who sells clorox ends up regretting it. Its like kimberly. They do quite well. I think clorox is one of the companies, they beat back carl icahn because they delivered. Im hesitant to tell people to sell off of what i thought was an okay number. And kings foot charcoal. They did they were victorious. They got some good brands. Its a solid company. A lot more to look at this morning. Keeping a close look on oil and owl all those commodities. The opening bell is just minutes away. My name is peter tran. Im a gas service representative. Ive been with pg e nine years. As an employee of pg e you always put your best foot forward to provide reliable and safe service and be able to help the community. We always have the safety of our customers and the community in mind. My family is in oakland, my wifes family is in oakland so this is home to us. Being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. Together, were building a better california. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade we looked for the best price and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Ah aflac . Aflac i thought you said this guy was the best . Oh, hes a horrible stylist. Gah . But hes the best at paying claims fast really. Mmhmm. Paid mine in just one day. One day . Yea. Aaaflaaaac in just one day, we approve and pay. One day pay, only from aflac. Youre watching squawk on the street live from the Financial Capital of the world on this monday. The opening bell in about 90 seconds. Interesting, the embargo on ism was broken early by market news. And so for july a reading of 52. 7 versus 53. 5 in june. Thats why we saw a bit of activity in the futures. But ism has not confirmed. In the end, our economy is strong. I think maybe someone says the fed is doing the right thing there. I mean i tire of questioning the fed a few days after the fed spoke. Its like theyre not going to speak again. It doesnt stop us. We do it all the time. Exactly. In the meantime, exxon is going to try to defend 79. I think oil goes to 42. I think the glut is not as bad as people think. Importing a ton of oil. Its not like were short oil. And were not low on oil. In this country, and i think in iran we have to stay focussed. That is theres no room for that additional million but the exxon quarter was not a great quarter. And the chevron was bad. Bad quarters. Well thats going to impact the dow. Well watch that as they open. Theres the opening bell and the s p at the bottom of your screen. At the big board today, its barnes noble education celebrating the spinoff from barnes noble. Over at the nasdaq, biopharma focusing on developing a cure for chronic hep b infection. Were waiting for numbers. We have ford nissan up 7. 8. Honda stock has been strong. A lot of things that happen if europe is strong, dont assume thats good for it. Its good for the Systemic Risk of the whole market. But a lot of companies are killing us because of the strong dollar. And the dollar is set up bad again today. Need to see the fxe above 1. 10. We need europe to come back if youre a bull. Wti falls below 46. I have 45. 97 right now. Down another 2. 4 . We talked about it constantly before. And now weve sort of adjusted in a way to this world, but weve been moving substantially lower over the last few weeks. One has to wonder not on the exxons and chevrons wbut down another 1. 8 . They made changes. What other names should we be keeping a closer eye on. A lot of people are concerned about whiting. I saw them upgraded today. A lot of people want to catch these falling knives. I say let oil go to 43 and see it in bounces. That was the level it held last time. The stocks did lead oil down. They can if they bottom here its significant. Exxon, this is the level. If they break to 75 youll see a lot of forced selling but youre right. A lot of these companies, i saw magnum hunter. Mhr, magnum hunter declared as preferred. Maybe the stocks were leading the commodity lower. You point the point that the pes were lower than they had been when oil was lower than it was. Right and i think thats what happened is were seeing a recognition in our country that there were no takeovers. The last time around we thought there would be takeovers. The year is not over yet. Even in august deals can happen. Look we get, theres an anti theres a fossil fuel bias. We cant export in our country. Im not a bear on oil if we hit 43 and bounce. Im not. In the meantime, dow is being propped open. The best performing component is disney. Reports tomorrow night. You mention price targets 130. They see star wars making 2. 2 billion globally. Im not sure how they know that. Im a big fan of sketchers. They have a disney and star wars shoe. I think people are afraid to sell disney be ahead of star wars. Its not necessarily this quarter. Am i going to sell it and hope it goes down and then buy it back. Maybe an espn line is not that good. Its a dangerous sale is how people are going to view it. Or be opening a shanghai or for a number of things. By the way, never been a good time to sell disney. Is that ever right. What a great thought. Not since the old days when there was the stanley gold remember shamrock. There was a time to sell when the big chunk fell down the big block trade. Remember that . I do. And i dont think that i think that they inspire a lot of confidence. You dont feel cord cut, look out. The tenyear yield has broken 2. 2. Rick santelli has some reaction in chicago. Reporter carl, it seems has though were starting to see a lot of things whether its the staff putting issues regarding the dots in the Federal Reserve future outlook early. Some of these numbers early. I understand we live in a highly tech world. Many traders are a little gun shy to put full throttle horse power on the notion that the numbers are released prematurely. As you look at a chart of 10 year note needleyields, its just basically getting rocking and rolling right now. We can clearly see a couple of issues. First of all rates were already pushed down a bit. As all the issues of the day, maybe of them emanating from china and what its doing to equity and various markets. We see that chicago pmi showed a snapshot of strength but the respondents question some of the sustainability issues regarding the pop, especially in new orders. Instead die greszing a bit and talking about things like delays on some of the orders. Backlogs and when i see this number at 52. 7 definitely well below 53. 5 no matter how you slice it we can debate how much slowing is going on globally. We could debate slowing is going on in the u. S. But theres no doubt its slowing. Does that mean we have no glide path at all . No. We have quarters and quarters of history showing that our growth rate most likely is somewhere in the twos. We either live with it or find ways to find growth. It seems like lets look at a june 1st chart to look at how weve dipped below the crown of activity. This is significant. In the yield curve, much of which is driven by the long end most of the time is a growth issue domestic and international. The short end has had its moments like last week where a tenyear note yield goes to levels we havent closed at since 2011. But we see its back at 67. Theres two dynamics going on. Quickly, the market is not on the time line normalizations coming any time soon and Global Growth is locked and loaded on the long end as something thats going to disappoint. How do we get out of it . Usually we look toward business. Maybe regulation is having a negative effect but no matter the reasons, well continue to monitor this drop in yields that has put us close to unchanged at 2. 17 in tenyear note yields. Back to you. Thanks rick. One loser we have yet to get to is hiesen. A miss and a cut. Revenue was light. They cut their full year on beef export related issues theyre talking. An expensive beef trust. The company was very bullish. Very bullish from cattle. Very bullish on beef and they were maybe blind sided. It does raise questions about the credibility, i think. Thats ugly. I think this is a company that there were a couple of cautionary pieces saying perhaps the quarter wasnt that good but the company has been talking a pretty good game and now i just think that its kind of taking your breath away that theyre more commodity related than we thought. They bought beef. The cattle it turns out theyve levered to a new commoditity. And what they paid for hill shire, it seemed like it was going to pay for itself. The company is trying to put a good face in the Conference Call but this is very disappointing. They traded one commodity for another commodity. And this was going to be the protein play. And im kind of i dont want to say im agas. In the end the cattle herd is hard to predict, but they should have signalled more that this was going to be a bad quarter. One of the reason its down is i think they were positive. The biogen dynamic. Overprompting, too bullish. I think they overpromised and underdelivered. Thats not what you can do far company that was trying to reposition itself as much more of a proprietary food company and less of a commodity. It was a take your breathe away quarter. A couple big retail earnings this week. Coach and coors, both of which being hammered today. People are saying bad things about coach ahead of jpmorgan. The new bag is not working. Coors, piper comes out and says inventory is building. That means price cutting. The handbag different is as difficult as the Athletic Apparel business is easy. One, just became Athletic Apparel was a crap shoot but the Athletic Apparel is strong for a lot. The accessory business has become quite hard. Weve mentioned sears during the mad dash. Its not up at all. Its turned around. Its down. Maybe the samestore sales are ruling. People got to page two of the release. That brutal whole foods call where at one point the coceo just says listen you should judge us by Square Footage and not same store. People wont do that. Whole foods, they are so lucrative. I dont think theres an activist coming in. Its a wellrun company. Theyre making so much money per square foot but same store sales are not good and same store sales are positive for sears, terrible. Kmart down almost 7. Sears domestic down 14. I know. That is extraordinary. Those numbers have been the rule rather than the exception. Quarter after quarter after quarter. Right. Youre smaller base. A lot of capital returns. Theyve put the Balance Sheet in order. As they head into the fall and the Christmas Season maybe you dont have vendors concerned at all about their availabilityviability. They did the lands end spin off. Im waiting to see how the Real Estate Investment trust does. The whole foods call was a great lesson. People will not let up. They will always address the same store sells. An retail overall, macys riding up after the delivering alpha presentation. Its come in a bit. It has. 68 78 now on macys. The it was a compelling discussion and nothing happened. Same store sales are a brutal metric. Well see. This is in process. Well see what macys chooses to do and how they choose to deal with mr. Smith. I feel he said there was give on the macys board side. I think so. My problem with macys is they have a big store levered to the strong dollar. They dont get a lot of the tourists just arent coming here the way they yooused to. You cant blame them. I bump into them all over the place when i walk around. Its endless. Those may not be the ones who are flying here theyre just wandering the streets, not buying anything. Theyre not flying here to get the bargains. I was with a friend on friday who flew to milan and there were some bargains. He wears them onset every time he comes on. It tells you the biggest problem we have here is that you cant necessarily translate that strong dollar so quickly when we go over there but in terms of coming here they dont go to macys. They dont go to dollar tree. They stop by the New York Stock Exchange. A new dollar tree at the hamptons, special balloons for me. The best candy. This is the dollar tree to end all dollar trees. Its replaced my hampton rituals. Im not moving on your comments but give it time. Once again the oil is down and the airlines up. Lets get to bob on the floor. Happy monday. A very mixed open. Once again, you can see china and the influence on the commodity markets. Take a look at what happened in china. The pmi numbers were disappointing y. Anddisappoint disappointing. China down. Both indices to the downside. Thats bleeding into the United States markets. If you look at the weak sectors here, its materials and Energy Stocks to the weak side. Oil breaking through 46. A little bit of support with telecom and Health Care Stocks on the up side. Thats helping a little bit but energy and materials the focus. Its encouraging on china that the casinos are not down. The numbers were not good for gaming revenue in mccow is down more than 30 in july. Thats continuing throughout the year. Weve been having a problem with them. But theyre just pretty much fractional on either side of positive or negative on the open this morning. I thought this was encouraging. As for tyson, i was as baffled as you were by what happened. The initial explanation was a lower supply of cattle than expected with higher feed costs. I noticed chicken was okay. They seemed to do fine there. Apparently the cost metric chicken was more appealing than beef was, more favorably priced than weve. Lowering the full year guidance. Thats the problem right now. S p for the quarter, q 2 70 reported. 72 beat on the earnings so far. Revenues only 51 beat. Thats happening again. The estimates are coming down in the third quarter. Flat to negative in the third quarter. We were supposed to be 4 or 5 positive. If this happens again, well be flat. Not a good trend that weve seen. Whats working, two sectors, anything that gets double digit revenues and secondly defensive names. If you look at the Consumer Discretionary group, we closed at history high on friday. Thats a historic high. All the sectors were helped by major players. Amazon had an incredible month. Up 20 on tremendous earnings. Netflix, tremendous earnings. Under armor great as well. When those kind of stocks move up, you can move up the whole sector and thats led a lot of people to think maybe were overbought. We asked our buddies to run the numbers. Right now the Consumer Discretionary group is stretched. Typically its lower in the following week. That would be this week here. A lot of buying in that Consumer Discretionary group probably flat to down this week. Consumer staples is the other one. Anything defensive has worked well in july. All the Tobacco Companies are doing well. Wall greens was good. Defensive stocks have also been working. To point out what happened in europe and extraordinary. Greece opened down 22 and germany germany, france, spain to the up side. Most of the greek stocks trading down here including National Bank of greece. Right now dow to down. When we come back amazon and netflix among the top s p performers in july. Which is best going forward. Dow is down 65. Exxon below 78. Back in a moment. 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You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . More auto Sales Numbers this time from gm. Lets go to phil as weve been waiting for the numbers for about 20 minutes. A little later than usual but worth the wait if youre a gm investor. Big numbers from General Motors. July sales up more than 6 . Well above the estimate of an increase of 2. 9 . Specifically they saw greater sales on the retail level and pulled back a little bit on the fleet level. Those are certainly good numbers for General Motors but heres the number that i think will get a lot of attention today. Gms estimate for the sales pace for the month of july . 17. 6 million. Thats well above what everybody else is expecting which is in that 17. 1 to 17. 3 range. Gm up 6. 4 . Well above estimates for the month. Remember when getting to 16 was a big deal. I think its the biggest part of the economy. Autos are pushing the whole country. Eight years ago, jim took the fed to task for not acting more aggressively before the financial crisis. Take a look at this. These firms are going to go out of business and hes nuts. Theyre nuts. They know nothing. People say you havent aged a bit. I certainly maybe ive you know mellowed. Not matured. Mellowed. There was fed minutes that happened during that period that were disclosed seven years ago. They made fun of it and they laughed about it. And look i think they pivoted, and i think bernanke did a great job. They got it wrong. Im proud that i did it. Although mad said i was off my meds. What was it that led you to that . Did you know you were going to do that in advance . No. I was supposed to talk about proctor. There was some talk i had with country wide some talk i had with a couple of major firms that were saying when are you guys going to realize that sub prime is worse than you think it is. And these were lots of people who were in that market or were in the sub prime market who were friends of mine who had moved up. Friends of mine in new jersey. They were all saying you always come on and talk about individual stock. Dont you realize this could wipe out any individual stock. And i was boisterous. I wish they had not laughed officially. But then they didnt. Ive been around far long time. The ones that started with me that havent retired, for the most part theyve moved up at companies and they were after me to say listen jim. Its a moment that has lived on. It has its own stature now. We like playing it. Well get to stop trading with jim. Dow is down 58. Dont go away. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. I really like this call today that stays buy monster beverage. This is the last quarter where they switched their Distribution System to cocacola. I think the combination of cocacola and monster is monster. A lot of people say its not good for you. Remember this is a guilty pleasure for some and there are other people who just feast on this stuff. But its a Convenience Store play. Its whats bought at Convenience Stores and i think its right. If you buy ahead, be aware there could be a quick drop if there is not a seamless transition, but cokecacolaocacolas distribution in europe is so good. Its a good situation. Whats on mad tonight . We have the largest grocery anchored, a blan stone spinoff. And then i max. Going to talk about the spinoff from china and the fact that the movie business is pretty good. Rogue nation best opening day in the history of the franchise. People are going to the movies and the weather is good. I saw it. It was good. Tom cruise still looks great. I love mi. I love that series. Makes 50 look pretty good. Yeah. 53. 60 no good. You make 60 well whatever you are, look good. There you go. I feel fabulous. See you tonight. When we come back the president set to unveil new rules for car ban Carbon Emissions. Well talk about it more in just a moment. Pill . CarCarbon Emissions. Well talk about it more in just a moment. Carbon emissions. Well talk about it more in just a moment. Carbon emissions. 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Insurance coverage has expanded nationally and you may now be covered. Contact your health plan for the latest information. Hello. I am technology that is changing investing forever. I am a fully automated Investment Advisory service. I can help you choose the right portfolio. Monitor it. And even rebalance it. Ive been called innovative. Revolutionary. And just plain smart. Id blush at the compliment if i could. But i cant. So. I wont. Say hello at intelligent. Schwab. Com good monday morning. Im Carl Quintanilla along with kelly evans, david faber at and simon hobbs at the New York Stock Exchange. A lot choinggoing on. The weakest in four months. Exxon below 48. Red arrows on your screen. Well keep an eye on it. Lets get to our road map. Barnes noble beginning regular trading. The company battling steep losses. The executive chairman of barnes noble education will join us here for a first on cnbc interview. And president obama taking on Climate Change with the new clean power plan. The white house senior advisory overseeing that will talk to us live. And its a big month for auto sales. Chrysler and nissan reporting a big gain. Well break down the numbers. First lets go to Rick Santelli santelli. The ise was released early. Reporter Construction Spending hit their time mark. They came out at 10 eastern. They came out 110. Thats the smallest month over month change since january, equaling january up one tenth. You have to go back to november to find a smaller month over month change. There is a bit of bright news in the rearview mirror. Up 1. 8 is now what stands as the previous month prior to the june read. And it was originally released at up. 8. The same issues as chicago. A very excitable increase in new orders but not nearly as excitable drop in order backlogs. Well have to divide exact lib what that dynamic means moving forward as we continue to assess the economy through all the various numbers. Back to you. The index at a threemonth low. Oil and other commodities reeling again today. News that chinas factory output shrank now contracting at the fastest pace in two years. And joining us where a chief economist. Does it appear to you as if the environment in which were operating is changing, that it is slowing in the case of china contracting . Well certainly with the emerging markets and developing economies, china has been contracting. I think people expect them to be able to produce on command, and they cant do it anymore. Im concerned about the situation in china going forward. Their public debt is running between 175 and 225 . Those are the kind of debt levels we saw thailand hit before the crisis. I think more broadly were seeing lower theres ripple effects on developing economies. It should eventually be good news for us. Were seeing that in the vehicle sales today. Its goosing vehicle sales, particularly compact suvs. One of the sectors with the easiest credit and has a lot of sub prime credit to lend. I guess the bigger question is the degroo to which health care rises will eat into it is this concerning to you, this ratcheting day after day, is it changing your view on the market . Its painful. If i held these things its awful but for the u. S. Lower commodities is actually a good thing. Its an input cost and i know weve gotten some mixed data on Consumer Spending but its just not reflected in the consumer cyclicals. I think that if i had to say do i trust the market signals or the data i think the market signals are saying its in better shape. Do you like it inspite of the slow down in. I do. When we think cyclicals in the u. S. Basic material is like 2 . And energy is 5 . Thats not the cyclical economy. Its Consumer Discretionary, and its industrials and tech. And tech and consumer are in pretty good shape. I think industrials is really facing a dollar story. Thats making it tough. But, again if i think about the next 18 months i think industrials could do well because dollar concerns are going to abate. Last month up over 2. 25 in the snth p. Those that in earnings season have won, have a good outlook. The leadership of the market is clearly falling away at the same time. We can trot out that its a stock pickers market. But do you see it as a risk on or risk off sign . I dont do the markets but in terms of the overall economy for the Federal Reserve, weve lowered the fresh hold on what we expect and accept as good growth. I think were going to see the right move on Consumer Spending over the summer its strong. Services spending us up partially on health care and also on vacations. Vacation bookings have been strong. That is good news out there. Although, and consumers buying vehicles in july is good. But weve got an economy thats running at lower horse power than it once did. Are you saying that weve lowered the bar for the fed on raising rates . We have yes. Im not sure with the earnings it expects to trade at. The bar has been lowered for the first rate increase. I still think were going to move in september. Although, december is on the table. There will be that will not be a unanimous vote. It will be hotly debated vote on september. I think theyll move them. I think the threshold the low. The bar is higher for the next move. Is debate is is the economy hot enough or not. This is going to be a hyper or super day a dependent period now. These are the last big thank yous of do you see this market as becoming more risk off than risk on because of whats happening with the leadership . Yeah. So simon, i think when i think about the next six months i think investors should be risk on. Primarily because i think thats not the question i asked you. Do you see the market exhibiting a more risk off. Yes. And i think to your point, i think most investors have reduced risk. You can see it in the surveys whether its institutional or retail. I think its a market thats prepared. Its bracing for a correction partly because of fed and partly because of calamity in europe and china. But if everyone is positioned one way, the probability of it happening is quite low. I think the market will surprise us to the up side. Well leave it there. Have a great day. Now, puerto rico missing a payment on the debt this weekend. Where do things do go from here . Kate kelly livewith the latest now. Reporter a day of disarray for puerto rico in terms of a missed payment. Of 58 million by a small Government Entity called the Public Finance cooperation. In addition to the concern about ripple effects in the credit markets and what this means longer term for the puerto ricos economy, theyve never defaulted on a debt and this is the first default in the u. S. Since arkansas. Theres a lot of concerned about whether it was a calculated move. Some believe so. I interviewed someone who is the congress from the ieland not voting and he has strong views. He condemns the government for missing this payment. He thinks its a way to get better negotiating terms but it hurts the citizens in the meantime. He also thinks that essentially the islandss creditors of which there are more than two dozen should be negotiating with everybody, even hedge funds. He drew a parallel to argentina which has been in a stand off with debt creditors but said lets have more constructive language. We need to work with everybody. And he thinks the electric utility should hasten the restructuring talks have a deadline for completion in settlement. He thinks it could be a model and hed like to see it happen soon. Whether it will unclear. Kate thank you very much. When we come back Barnes Nobles spin off trading at the New York Stock Exchange. The executive chairman at barnes noble children will join us. The dow is down 61 points. Dont go away. 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I want them to know that they do have a safe and reliable system. Together, were building a better california. Retail business from the College BookstoreBusiness Today as the company battles losses in the nook unit. Shares of barnes noble education whichtrading lower this morning. Here to shed light on the spinoff is the barnes noble education executive chairman. Nice to have you. Good morning. You guys were ringing the bell. Theres not a lot of growth. Things seem to be moving online. So what is the future for having a bookstore in a college when a lot of people dont even seem to need it . Well they do need it and we are also online but the core strength of our business is the 724 college contracts we have. We are on site at the school and support the faculty, the students and the institutions there physically. So if you send your kids to school or if youre going to school, its important to know you have a bookstore on campus that you can go to get all your needs met. As the world goes digital and all these, particularly the demographic going to college now, i can only imagine in terms of their fluency, what role was the College Bookstore play . Weve been investing heavily in digital over the last three years. We agree that to be relevant you have to be physical and digital. And thats what were aiming towards. Theres a lot of money thats been spent in the Capital Markets in education, higher education, on digital efforts. We can be a seller of digital features and functionalties and content. You look at the other industries weve been involved in whether its cable, wireless phone, you see the advantages that customers get when they go from an analog to digital environment. We think we can bring the same advantages to the higher ed environment and improve the quality of education and also drive down costs. Mike im probably one of the few people on earth who goes into every bookstore that i can find including on College Campus campuses campuses. Thats one of the few places to find them anymore. But i know most of the merchandise sold is not book merchandise. How much of what youre selling is gear and the Convenience Store type stuff that students need every day and how much is actually books . The great thing about the stores is that it creates an affinity of the students and the faculty to the campus. But the majority of what we sell is still books, and the margins are higher in the general merchandise, and the general Merchandise Sales went up 4. 7 last year. Thats still a very important part of our business and it gives us an opportunity to do things with other companies outside of our contracts as well. Can you give us an idea of how you interact with paersen which is now concentrating on being an educational supplier. Theyve sold the financial times. Theyre boosting the amount of money they have to invest. How do you compete with them and with them increasingly being online . Isnt there a danger that you look from a shareholder perspective, quite antiquated . Its a great question. Theyre a commercial partner of ours in our User Development . They supply the content you sell . Not only that. We have a commercial agreement with them that we entered into in connection with, they invested about two years ago, and the nook media entity which weve since dissolved and pulled college out of. We entered into a commercial arrangement with them where were in lock step with them with our digital platform. All of the large higher ed publishers we consider partners. Theyre also kpet competitors. Its a state of frennys. Identify figure here from the ceo of paersen. The number of people going to university is expected to triple. My question is are you as focussed on brazil and china as they are or are you bricks and mortar at home here . Were not bricks and mor or the. We have a strong retail component. But as i mentioned, we spent a lot of money developing our digital capabilities and last year we had about 380 million in web sales. We want to get to a more digital basis and serve the nation. And we want to possibly go international. Amazon is not brick and mor or the either. And theyre a competitor. And other competitors. There are no shortage of digital competitors that you guys are into. Competition puts positive pressure on what we do. Thats one of the advantages of the spinoff. We have a separate board and Management Team thats allowing us to really focus on educations needs and how were going to compete against these other companies. We compete well against amazon on the campuses where we are v the instore contracts. We sell more books than they do physically and online. And youre quoted as saying this will give you flengsabilityxibility to pursue strategic opportunities. Theres a lot of money spent were in post secondary. Even in that space, there are companies that have created really great digital features and functions that we could incorporate into our program as one example, we made a small investment in a Company Called flash notes. Its peer to peer note taking. The best student in the class shares notes with the rest of the students. We can incorporate that into our digital platform. There are a lot of other opportunities like that which i would call strategic fit to our business plan. But then there are bigger deals that we can do because we have a platform for growth. Were a Public Company with a Huge National footprint. Thats whether weatherre you are. Last year we added 90 million in new annualized sales in the bookstore sales. This year its been 48 million to 24 new sales. Theres organic growth and the second prong of the Growth Strategy is getting out there. Now that we have the spin off done, you have to be careful what you do before that we can do out and Start Talking to potential partners. Michael, we appreciate you spending time with us this morning and educating us. Thanks for your time. Its great to be here. Executive chairman. Bned, the new symbol for barnes noble education. Next up president obama talking about Climate Change. Shopping online. Is as easy as it gets. Wouldnt it be great if hiring plumbers carpenters and even piano tuners. Were just as simple . Thanks to angies list now it is. Start shopping online. From a list of top rated providers. Visit angieslist. Com today. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Welcome back. Shares of shake shack working on their second straight day of gains. The stock moving higher for the last two weeks. Last week an ipo lockup expiration occurred. The stock will be a huge focus for investors ahead of the Earnings Release next monday. Context, the shares surged to 96 plus dollars in may. Only to fall to half that. Thank you very much. The president unveiling the nations first of limits on power plant Carbon Emissions today. It requires a cut in emissions by the year 2030. Take a look at the video the white house posts over the weekend. Our climate is changing. Its changeing in ways that threaten our economy and health. This is fact backed up by decades of carefully collected data and overwhelming scientific consensus. We can see it and we can feel it. Hotter summers, rising sea levels extreme weather events like stronger storms and longer wildfire seasons. All disasters that are becoming more frequent more expensive, and more dangerous. Joining us this morning, brian dees the white house senior advisory overseaing climate conservation. You want to walk us through the plan and the benchmarks . Sure. The plan is very simple. We have never had limits on the Carbon Pollution from the Power Sources in the United States. Once this plan is in place, we will set longterm targets. And then states will have time to put together plans to come ply with those targets in a flexible way at the state level. So states will make choices to invest in Clean Energy Sources or a different mix based on whats in their area. To what degree is it targeting coal specifically in youre joining us on a morning where we have another coal miner filing for chapter 11. There are some arguing the market is turning away from it. Why thuzdoes this cry out for policy . It is true this goes with the rule of grain of where the market is headed. Youre seeing investment in cleaner sources of energy but its important that we set targets to reduce emissions, because we have a vital threat in addressing Climate Change. The rule it does that in a way that actually reinforces a number of the dynamics were seeing in industry and i think youll see utilities will have the time and space they need to make long Term Investments to keep the momentum going. But the thinking is the market is going that way but you need the government to goose it along faster . We have a long tradition of setting limits on pollution that gets pumped in the air. Weve done that for acid rain in other areas and its worked. Weve reduced Carbon Pollution. We increase Public Health benefits. We reduce asthma and achieve solid policy outcomes. And it will help with jobs and Economic Activity in the United States as we. I didnt realize given the amount of noise that americans are as concerned about Climate Change than the europeans. They are more concerned than china, less concerned than africa and latin america. I guess the question is whether theyre willing to pay for that. Recently the wall street journal poll suggested that 49 of people in that country oppose your intervention on private companies if it raises the cost of their utility bills. And the powerful argument from marco rubio is why should we do this in china and india are going to burn anything they can get their hands on. First, its nalsfalse this will increase costs. The typical consumer will save about 85 on their electricity bills because were moving to cheeper sources of energy and were wasting less. Second our commitment domestically to move on these types of activities is to leadership we need to get a durable International Agreement that actually will level the Playing Field and will make sure that as we move to clonereaner sources of energy the world will be moving that way as well. The president has been leading. This action puts us in a stronger position to get that kind of agreement. We know the Supreme Court struck down some to the epa regulations for not taking costs into account. One of the writers says they should try not to adopt this particular plan and suggestions this might be unconstitutional too. Whats your response to that . This is a rule that is on strong and solid legal foundation. The Clean Air Act provides Clear Authority and compels epa to regulate this source of collusion. And epa has done it in a way that is flexible and is responsive to a yearlong effort exhaustive effort to take into account more than 4 million comments to this rule. We feel confident about the legal foundation. We think were going to see across the country more and more states and electricity commissioners working with us to try and put in place workable plans. Weve given them more time to do so. Were confident the plan will stay in place and help drive a cleaner energy mix in the country. And to those who say we do our part but china and india are going to be putting an awful lot of carbon into the atmosphere more so than it has, so its not going to help the problem of Climate Change. President obama and the china president , they agreed to peak their emissions and reduce them. President obama went and sat with the Prime Minister and the Prime Minister acknowledged the imperative to work, to address Climate Change. Youre going to see president obama continue to lead internationally. We need an agreement that reflecting that countries come from different starting points but we need to be part of the collective effort to combat Climate Change. And youll have the climate talks in paris coming up in december. Do you expect for mcconnell to have stopped telling governors to not comply . This is a process that is going to go on. I cant speak for what others will do. I know across the country when you get beyond some of the hot partisan rethetoric i dont recollect youre seeing a growing recognition that the targets are reasonable and achievable and that states have a lot of tools and a lot of flexibilities to try to accomplish them. What i expect is a solid conversation at the state level about how they can comply with these plans and the work that will go into developing those plans. It will continue through the course of the fall and into early next year. Brian, we appreciate your time. Its obviously a huge issue for the markets and well see what the president says this afternoon. Be sure to tune into power lunch today when the president officially announces this plan around 2 p. M. Eastern time. And straight ahead, auto sales coming out. All the auto makers that have reported so far have beat estimates. Well round up the movers for you. Then were talking to the west texas investors club. Brooser and butch are here. Well talk to them in a few minutes. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. No students ever photographed mean ms. Colegrove. But your dell 2in1 laptop gives you the spunk for an unsanctioned selfie. Thats that new gear feeling. Get this High Performance laptop bundle for only 399. Office depot officemax. Gear up for school. Gear up for great. Whoa what are you doing . Putting on a movie. Im trying to watch the game here. Look i need this right now ok . Come on i dont want to watch that. Too bad this is happening. Fine, what if i just put up the x1 sports app right here. Ah jeez its so close. He just loves her so much. Do it. Come on. Do it. Come on yes awww, yes that is what im talking about. Baby. Call and upgrade to get x1 today. Good morning, everyone. Here is your news update at this hour. Secretary of state j john kerri, meeting with Foreign Ministers from the persian gufrl. He said they agreed that once fully implemented, the Iran Nuclear Deal will contribute to that regions security. Zimbabwe has accused a dentist of shooting a lion. They want to extradite him for killing the lion. They say he shot the lion near a National Park and did so poutwithout a permit. And erik snyderman announcing that retailers have agreed to keep realistic guns off their shelves. And heres a fish story for you. A florida fisherman was fishing from his paddle boat on thursday when he hooked a 7foot 412 pound growner. Uper. The fish pulled him into the water twice. He landed the fish. No word on whether dinner was on him but he certainly got some bragging rights. Thats your news update at this hour. Back to squawk on the street. Thank you very much sue. We are just stunned into silence by the grouper. Toyota out with the july Sales Numbers. Phil joins us with the details on that and the others. Reporter toyota reporting better than expected sales coming in with a slight increase of 0. 6 . Most were expecting a slight decline of about 2 from toyota. That means all four of the major auto makers have reported better than expected sales. Lets take a look at the big three. You have gm up 6. 4 . Fiat up 6. 2 . And ford with an increase of 4 37b9. 9 . Suvs and trucks driving the growth. From ford and jeep, ford up 11. 4 for utility sales. Jeep brand is hot. Up 27 . Pickup trucks, General Motors has been hitting it out of the park over the last couple of months. That continued in july. Fullsized pickup sales up for the month of july. The chevy brand, not just full sized pickup but the miss size pickup truck as well. Sales up 51 in july. Nissan, july sales up 7. 8 nature that was weaker than expected but not a bad number by any stretch of the imagination. And General Motors saying it expects the Industry Sales pace for the month of july to come in at 17. 6 million. If its 17. 6 million, that is well above what most people were forecasting. They were expecting 17. 1 to 17. 3. All the numbers with the exception of nissan much better than expected. I think well see a strong number when the final tally comes out later today. Thank you very much. A strong month for u. S. Auto makers. Up next on the program, striking it rich in the lone star state. West texas investors club, coming up. You drink beer . Sure. Well get on over here. Sit down over there. Get yourself a drink. First one of the day. If you want to get to know a man and look into his soul, have a beer with him. Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Are stocks about to enter a bull Market Correction . Well tell you why one technician sees major pain for the s p 500. Thats on tradingnation. Com. Work squawk on the street coming right up. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. As we mentioned, president obama unveiling the nations first ever limits on power plant Carbon Emissions today and that has Energy Stocks on the move. Jackie following autoaction for us. Reporter good morning. As president obama tries to make Climate Change part of his legacy, it seems to be a direct assault on Coal Companies. The president s plan looking to cut Carbon Dioxide emissions by 32 by the year 2030. The impact the Coal Companies are going to suffer because right now they are producing a third of the countrys emissions at this point. Pea body energy and alpha natural resources, some of the big coal producers in this country. To the flip side, there are winners. Well see companies in renewables and clean energies benefit from this. The solar stocks we watch. Also nat gas companies. More innovative ways to fuel the future. The one final point that i want to add on this is that there will be a lot of litigation. Many states that house the Coal Companies are going to say this is going to take an enormous toll on them because it provides an enormous at of jobs. Lots of litigation, and Coal Companies have had a really tough time as it is. About 25 bankruptcies in the last few years. Walter energies just one of the most recent to make headlines. These companies are going to take a hit. Although it may not seem like it in trading. The litigation process could take some time. And legislation. Lets see what the president says too. Lets go to rick for the this mornings santelli exchange. Id like to welcome richard. Thanks for taking the time this morning, sir. Good morning. How are you . Reporter very good. You know as i listen to the news of the day, i find so many things rhyme. Wls for Climate Change science is never settled. Never settled. But the same is true about the economy. One of your recent pieces, gdp is just right. I think gdp is way too light, definitely not right. Who is it right far, richard . Well lets give you a little context here. We get a lot of questions from the Institutional Community on when will rates normalize, so our standard answer is how do you define normal and if you look at gdp in todays world, we have population growth at one of the lowest levels since the Great Depression. We have Labor Force Growth of 1 or less given what month were in and we have Work Force Participation rates into keep moving lower. In that demographic backdrop we should get used to gdps of 2. 3, 2. 5 less than 3 real. That may be the new normal. Im reporter im not saying i disagree. Im saying we should be unhappy thats where it is so we should try to find real answers and real science and real economics. When i see gd sp soft and productivity is soft and regulations are written by people who seem to be soft in the head. It seems like were accepting things without kicking the tires. Given policy and congress and regulation and half finished regulations, but shouldnt beexpect more . Just because were satisfied that corporations that are multinational thes can find enough new customers, the shared value on the gdp end doesnt seem to be enough. Rick youre going to get me on my soap box. But i agree with you. Ever since the crisis we thought we werent doing enough. We need to be more competitive. Were just not there. Fiscally it seems congress is held up on other issues when they could focus on how to take an economy that isnt growing and make it more productive. Reporter were never going to get there if a majority of voters think gdp is just right. Its just right given policy isnt just right. And i dont want to pick on the fed. I think the feds heart is in the right place. Were going to have to leave it there and respectfully disagree but these are issues that all participants in the marketplace, especially the big ones need to communicate more with regard to the gdp future of the u. S. Thank you, richard. Back to the squawk on the street gang. Up next the selfmade millionaires are using their fortunes to invest in promising entrepreneurs but only on their terms. The stars of the new reality series west texas investors. Join us when we come back. And durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. How much of your money have you got in this thing so far . Everything that ive saved over my 27 years. So approximately 120,000 of my own money. Its very important to us for these entrepreneurs to have some money of their own invested. Is this the First Company you started at . Yes. I started a bunch of them that went on and hit the deck. Went south. Are you getting scared . That was a clip from the new new original prime time series featuring two selfmade millionaires who invest their own money in entrepreneurs. Joining us are the stars of the show michael rooster mcconaughey and wayne. Good to be here. I wish i had a cool nickname like that. What i love is you were doing this before shark tank became a thing. Rooster, how long have you been doing this . Weve known each other close to 40 years and we started small doing stuff and we sort of successfully maybe not that long. Maybe the last ten years. We found all the land mines first. So people come in they present as on shark tank but then you give them tests, you stress them . Talk us through what happens. We want to find out about the person. So we try to put a test or some sort of chore that they can do. Like helicopter ride . Yeah yeah blind faith, jump in the helicopter. Were going to go camping or some adventure or work task that they have to complete in a certain amount of time. Just try to get to know the person. Butch, why is that important . This is a debate investors always have is it more important to look at the idea the financials or the management . What have you found . We feel like the person is the key to it all. The best business in the world can be ruined or mismanaged and can fail if you dont have the right person at the helm. You made your money, oil and Gas Pipelines . Oil fields. Oil field related stuff. Did you see that in the businesses you made your money from . Is this you drawing on your own experience here . Exactly. Yes. Weve had so many deals in person. If you dont have a good person you can have the best idea in the world. We dont have to sit here and just watch somebody all the time. Do texans do it differently . I think we do. Absolutely. Theyre start to go do it youalls way now. Were still old school. And thats what we want to show some of the ways thats how the mentors when we were growing up did it. They gave us chances, they believed in us. The thing we give to the entrepreneurs, we believe in them, not just money. Rooster, are you getting any tv tips, Public Relations tips from your younger brother . He got them a long time ago, yeah, a few, a few. Just be you, thats all you have to do. Your younger brother is matthew mcconaughey. Yeah. Is this your first time on television . Oh, no. Youre familiar enough with this. This is the latest series. A little bit. Not a whole lot. Its new. Its never been this big. What do you think of the series, butch . I think its going to be good. People are going to like it. Its got a little bit of everything. Were going to make people cry, make them laugh, and were going to make people mad. Were going to make some money. Were going to show them not so much what were going to show them what to do as not to do and be successful. What are a couple of the ideas if you give us a sneak peek that have come about successfully from the program or your experience over the years . You mean ideas in the past that weve done . Yeah what are a couple of Successful Companies . Mainly a lot of what weve invested in is ourselves and then weve had oil deals that weve done with people we really trusted. Theres exl we got in that was unbelievable how it went and it went south and we all stuck together and pooled our resources and brought it out and that was one of the best deals weve ever done and smaller ones weve done and hes got we started a fiberglass mainly the oil field related. Were out of our comfort zone doing some of this stuff. I wonder if you called the top in the oil market. What do you think now Oil Prices Just collapsed . Weve seen that before in west texas. Were in another slump but weve always believed the highs create the lows and the lows create the highs. Theres another high coming. What is happening with the economy . How do you feel about the businesses . The investments are presumably falling. The traffic is better, right. Thats the upside. You have to look at the upside you know. You get help easier housing is cheaper. As far as the price, weve had a hell of a lot more money before we started the show. But its happened so many times. Theres people in west texas that are making more money now than they were when it was booming. But the Shale Development is new. Its different this time around presumably isnt it . And im a little worried that they can do it again. Supply and demand. Supply and demand. They have so much money that comes in there that they can just if they do it again, produce it again, were shooting ourselves in the foot. What do you do . They need to let us export it i would think. I dont know why those holes are growing louder. Thank you both for being here. Really appreciate it. Youre not actually smoking on the floor of the New York Stock Exchange just for the record. Its a bubble gum cigar. Nice. Good luck with the series. And these two gentlemen here will be premiering tomorrow on 10 00 p. M. Eastern here on cnbc eastern and pacific. Lets send it out to dominick chu for a market flash. I need a bubble gum cigar of my own. Lets watch shares moving high they are morning on reports that german company, a huge giant in that category has possibly secured financing for a potential takeover of the company according to reuters. They say that it will wait for the offer before approaching syngenta. Stock up more than 3 this morning. But remember it has its own bid or trying to make a bid for this company around 45 billion. Well watch those shares as the afternoon gets under way. Back over to you. Thats for sure. Lets send it to john fortt for squawk alley. At t and direct tv have already gotten enticement to sign on. Well look at what that says about whats coming and ubers valuation keeps going up. Where it is and what it signals and finally david byrne of the talking heads, critical about the Business Model for streaming, not the same as it ever was. All that and more coming up. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Good morning. It is 10 00 a. M. At at t headquarters in dallas texas. 11 00 a. M. On wall street. And squawk alley is live. You may find yourself behind the wheel of a large automobile and you may find yourself in a Beautiful House with a beautiful wife and you may ask yourself well, how did i get here letting the days go by letting the days go by welcome to squawk alley for a monday. Joining us is john steinberg. Morning, john. Kelly evans is with us. We round out the week with kayla out a few days. At t fresh off its acquisition of directv rolling out new combined products. All in one tv and phone bundle this morning, a step towards integrating the Satellite Tv Company and attracting new customers. Details cost 200 promises the abil