Transcripts For CNBC Squawk On The Street 20140630

The big monthtomonth handoff in the markets. Major indices looking to tack on another month of games for june. July opens with data intensive week, ending with jobs one day early. Ken feinberg set to announce details of the General Motors Compensation Plan for Crash Victims. Well bring it to you live. Outrageous, facebook conducted a largescale psychological experiment on more than 500,000 users. And the u. S. Expected to unveil a near 9 billion fine for francis bnp paribas. Futures pointing to a lower open nasdaq on pace for two months of gains. S p and dow shoot for five months of consecutive gains and data over the next few days. Chicago pmi, pending homes also out today. Auto sales, june jobs coming later in the week, adp challenger. A good time as always to take stock of what the First Six Months have meant. Not good news for actively managed funds, as the journal points out today. Were in this business where theres a deal that happened this morning that really does in many ways capture whats going on. Ppg, a buy comex, paint company. The ceo who is terrific, at ppg, came on mad money, what happened if you buy comex. He said were always open to m a. No one thought it was not going to happen after sherwinwilliams, not a surprise. But the stock goes up big. Mannkind, see that stock going up on the tape this morning. Yep. Everybody knew the fda would approve this insulin dispensary. When it happens, it goes up, where we are the good news is not correctly discounted because people, i think too skeptical. I come back, you know, charged up, very engaged, and i feel im happy to hear that. More engaged than ever. Than ever, yes. Than ever. Thats fire. I feel whats happened the skeptics never stop. All bad all news is interpreted as negatively. I come out, watch the headlines when im away, its like Central Banks to blame for big rally. Blame . Blame . I mean, why is there blame . So when i come back and say, as long as we get deals, as long as we still have a lot of stocks selling at 17, 18, as long as Interest Rates stay low and obviously were in a situation where our rates are low because of worldwide rates, enjoy yourself. Enjoy yourself. I had to go i had to go to buddapes budapest, vienna, prague, to enjoy myself. Im saying im on wall street and im going to enjoy mois and revel in the. Pgs, in the gw pharmas in the mannkinds and say good news is not factored into the market. All right. Enjoy yourself. Its later than you think. Thanks a lot. Sure. There was a song from a woody allen movie. Better late than ever there on the other hand im not saying suspend skepticism. I am saying that the fact that good news never seems to get in the stock price is different. Thats very 1990s. Then this morning what do you make of bis, bank of International Settlements over the weekend arguing that the stock markets around the world are not reflective of whats happening in real economy. Rationally detached from underlying economic conditions. Gdp was down, companies managed to make money. Did they make money with buybacks, by firing people . Yes. Can you look through that and decide that you should sell stocks . I slard tihard time doing that i see companies doing selfhelp, the broader time for things like sandisic, relational takes a stake and did what they did to timkin which i have on mad money. We see if they if its sustainable. Stock reacted positively. Selfhappen transcended gdp. Do i think that europe with their rates where they are, is that artificial . Ive got to tell you, coming back from europe, theyre pretty depressed. I think our country has certain areas that are literally, because of the internet, technology, are not inflated. Inflation, which everyone seems to fear, i think is weatherrelated. I like yellen. When she says noisy, i agree with her. What im saying is, stop saying that its the feds fault that the market goes up and say the selfhelp is working. Before we move on, market dynamics, its traditionally a slow time of the year, volume is weak, can move stocks up and down. Another story today that buybacks and basically some individual demand are the only demand for stocks. You dont have a lot of institutional demand for stocks at all. Without that you dont have the underpinning for any buying in the stock market. Companies are buying and shrinking the float. Until ali baba comes we get a new deluge until gopro, which is not a deluge of stock, i say if you pick a stock where management, once stock goes higher they see the play book, go buy comex, buy another company, that actually causes an inversion, if you dont do it, if you dont selfhelp, stock doesnt go higher. Individual stocks are going higher because management says ive got the Balance Sheet and Interest Rates to do something. Im going to do it. But cbs last week, i saw that one, i was watchi this aereo thing, did anyone think that the Supreme Court was going to say yes to that . Yes, apparently some people believed that. Some, yes. If you look at the Supreme Court as it is, then you would recognize that theyre procorporate rights. You know, i just think that people people think ever end of the government is anticorporation. Airlines, phenomenal story for the first half, that was obama blessing. The Justice Department blessing higher air fares. The governments not the governments doing a lot of stuff that doesnt help the economy, but does help individual companies. Larger companies do better in the environment when Smart Companies are lets move on to an individual company. General motors, attorney ken feinberg will announce details of the Compensation Plan for Crash Victims 10 00 a. M. Eastern. Federal prosecutors and congressional investigators are quick to say, however, that gm could still face a number of criminal probes related to those crashes. Ken feinberg is going to join us live first on cnbc, right after the announcement. Of course, mr. Feinberg has carved out an expertise in this arcane area of amassing funds to then be distributed to victims, whether its bp or Boston Marathon victims. The political dance that goes with that. Yes. No less a skill, right . Its not just about tables. Not at all. The idea and the times today has a long article that still a lot more to come and the use of the word criminal in the Southern District, the u. S. Attorney, getting involved. Does this just continue this overhang on gm despite what many people saw today as perhaps the day where daylight starts to break out . Feinberg, when he got involved with bp changed things a bit. Thats when the bottom was put in. You have to churn through all of this. The government was more involved than realized. Breaking news. Devon sells 2. 3 billion in assets to lyn energy. Devon trying to change its Balance Sheet. Look how its done to be able to make it so its stronger, move into shale areas. Two Companies Helping themselves. I dont know whether linn will get the right message. Look where devon is selling. Look at oil and gas, continue positive. I look at gm, i see the stock bottomed at 34. Im stuck with stocks that react positively to news that we may even in turn think is not positive and then react wildly positive to anything involving takeover, acquisition, taking action. Ands that ha to do, to me, some degree of lethargy on the part of individual managers. They feel like, lets buy etfs, the s p. Its not etfs or s p. 9. 3 million shares of ny melon. Does pelts come and Start Talking about im saying, this is activive . Activism, selfhelp, m a, all of the things in the toolbox were seeing a great deal of, tax inversions. Weve hit all of our themes. But this is the era where Companies Just dont like all we need now is Consumer Spending money and housing that, i cant give you. That, i cant give you. Another one, micron, focus list credit suisse, it was eight bucks a year and a half. Micron bought this Japanese Business which then consolida d consolidated, d ran prices have gone up when historically gone down. Allergan maybe undervalued. An update on r d prospects. Allergans one the best performing stocks of the first half, its undervalued . They want you to set the floor higher in terms where the value is based on a stronger pipeline now with the latest release. By the way 10 30 a. M. , Conference Call on that. When allergan was at 80 bucks, the ceo came on mad money and said everybodys forgetting one drug for glaucoma. No ones thinking about what we can do. There was a patent issue they had a problem with. He came on the show, a quiet, mildmannered man, he said my stock is too cheap. You know what . Its doubled. Maybe it was too cheap. Well, maybe valeant recognized that. Hand it to them, they obviously didnt they picked a company that had r d. More to go in that longrunning battle. Look whats happened since 9 00, sense i got back from prague. True. Its not me. I traced this thing down. This happened on thursday when i was in budapest. I like the way you say budapest. They tell you to do that. Budapest. All right. They got this drier beer, someone had a note saying beer isnt doing well. Look at beer stocks since they decided to let them consolidate. Try getting a corona in prague. Forget about it. Its all pilsner. Finally, facebook users are angry following news the social network conducted a big psychological experiment on hundreds of thousands of users manipulating content trying to gauge emotional response. Some shown positive posts, others shown negative ones. The researcher has apologized. But talking 500,000 people. Basically, victim to the algorithms that filter out what you see and dont see. My Charitable Trust owns facebook. You never want to see this stuff but at the same time, facebooks a monopoly in yourself, its what you use to find out about yourself and tell people. People say, that was unfortunate but glad its over. I dont think someones going to say, facebook spied, im going to sell facebook. No, but i think it goes to this larger concern about privacy that were only going to hear more and more about as the tools for invading your privacy, if you believe you have in, only accelerate. Look whats going on in europe. Look how many people are asking google to say move my search results. I will tell you, in the end, there is no expectation of privacy. Theres never been one really in this country. No ones forcing you to open an account. Always think you send an email its on the front pages. Maybe the Supreme Court did rule 90 your cell phone is not allowed to be searched without a warrant than goes to something different. 4th amendment rights preserved. At same time, expectation that there could be a this glaxo sex tape, the bribery. I think that you should expect that you could be exposed. Its not like nsa. Its not like anyone said what the nsa was doing was the enemys lisp i remember the nixons enemy lisp one of my partners was on the list and it was shocking weep had an irs enemies list, nsa enemies list, a lot of bad guys out there its like jack bauer, listen, ill do whatevers necessary. Shoot him in the knee. Throw him out the window, whatever works. Good to have you back. Oh, man. Frances biggest bank could be facing a record fine. 11 00 a. M. Eastern, roger mcname. Whats on his mind when it comes to technology. Premarket on the final day of the first half of the year. More from squawk on the street in a minute. Bnp paribas is potentially facing record breaking 8. 9 billion fine from u. S. Authorities over alleged u. S. Sanction violation. The Justice Department expected to announce the fine sometime most likely this morning. We shall see. Of course weve been waiting for this for quite some time. Unknown, i believe, whether this will include some sort of temporary ban on some of their dollar clearing business. Its never been an easy time well, it has not been an easy time to be a Financial Institution it would seem, over the last couple of years, when it comes to the regulatory side of things. What im amazed here is that there is a process that you get when you get the call from the Justice Department. And that is recordkeeping, freeze. Whatever youre doing, stop it. In terms of what the Justice Department doesnt like. Sit down with your lawyers, go over compliance, decide what youre doing wrong before you even get involved in some sort of plea. They didnt do this. They just kept doing what the Justice Department didnt like. I mean, thats extraordinary. Just dont do that. Everyone ive ever met in the trial, the securities regulation knows, that when the government calls you and says, listen, were investigating you, you stop whatever the heck youre doing or else im surprised that the government doesnt indictment everybody, just doesnt indictment individuals because whoever is doing this is doing it directly while being investigated imagine all of the people we know that have been investigated, all of the companies and continue. Okay, here, i know this is financial versus life, but gm, lets say they say, lets keep producing these ignition things, what the heck . That is or bp, saying you know what . What the heck . You know, little oil in the gulf, i mean, just dont tell anybody. Right. It is, if youre the Justice Department like this, are you kidding me . You kept doing this . Have you no respect for the u. S. . None . Whether its that or barclays dark pools or b of as recalculations, anyone scared of buying a bank stock. I said, you know what, this group, unless youre in a Regional Bank or. Or wells fargo, up 16. 5 this year. Completely differentiated itself from the group. John stumf said were good at mortgages and redoing mortgages. Crossselling, too getting somebody a mortgage and getting them to be in Wells Fargo Asset Management or personal wealth management. When wells fargo buys the loan, they follow up. They are like they are like good salespeople. Everybody. I sat down with john, whats your business, its just about being a business person. Its not about trying to make extra money somewhere. You know . Wells is wells is good. One that u. S. Bank, by the way, wouldnt of my Charitable Trust funds, youll find theyre similarly profiled. Both Warren Buffett banks. Dont you think buffett isolated banks that know what to do . Good point. Right. Well get cramers mad dash, count down to the opening bell. One more look at the premarket. Squawk on the street back in a few. Seven minutes until the opening bell on monday. Mad dash. Its been a while. A summer of ali baba guessing. Guessing the impact on yahoo . Team monster goes hold buy. Piper saying that the alibaba valuation is not priced in. David this is two parts. One youve got, one ive got. My part is, will Marissa Mayer be a good steward of the capital . How much capital will there be . We dont know specifically, although of course its 22. 6 of the company, fully diluted that yahoo owns. Theyve moved around a bit but we can assume theyll sell 10 of the stake, if not more in alibaba. Figure somewhere in there. You fax tax effect it. They could keep the is it over there . I dont know. I dont know. Whats interesting, david new york ones talking about what shes done. Thats the question. Youll have a lot of this. Were entering july. Road shows going to begin towards end of july. Probably going to get priced. Guess on the 8th of august. As the road show goes on. Also get another quarter, most likely from alibi bob ba. That being the quarter ending today. That was a slowdown in the rate of growth last time. They say, maybe it was because that Fourth Quarter took from both the Third Quarter and the First Quarter in terms of advertising. My advice, be long yahoo yeah . Into the guessing game, be long. I like that. Opening bell coming up two minutes from now. Squawk on the street, coming right back at you. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Youre watching cnbcs squawk on the street monday, live from the Financial Capital of the world. Opening bell in about two minutes, as you probably know, holiday shortened week. Closing out month, quarter, first half of the year. Want to guess what the s p winners and losers are yeartodate . Weve got a couple of companies that have been taken over. Yeartodate on s p, best, new field and neighbors. Worst, coach, whole foods, staples and bed bath beyond. These are companies that are either impacted by the internet or have a strategy that has been left behind. Well, bed bath beyond, weve talked about a lot here. The report last week, not a good quarter. No. The stock suffered significantly. I mean, im coming around to the idea that amazon is hurting them. Executing poorly. Coach is executing poorly. The focus on the good one, oil and gas, newfield has done remarkable job. These companies, look at this linn, i dont know whats going to happen with linn because its controversial, big short position. But companies had asset, you see all over, look at the restructuring with freeport, anything oil and gas, nabors a terrible stock, onshore driller. Guess what . On shores drilling as hot as it gets. They all make sense. You mentioned amazon. If anyones missed amazon risi rising. Tonight a nice reaftair. Those of us in prague get a chance. I expect your full review in an email form. Absolutely. Good and bad. Ill do a 4 30 email. Notes. Notes. Congratulations. Thank you. Very nice. A lot of work involved with those. Right. Many, many people as you well know. A look at opening bell here. S p at the top of the screen as we finish out the first half. Down here at the big board, new york city rescue mission, raising awareness for the citys homeless. Nasdaq, water keeper, protecting waterways, celebrating its 15 24 anniversary. Id love your take more on what gopro means, pricing at 24, high end of the range, closing the week at 35. 76. So glad you asked me about this because one of the things that ive learned about gopro is every day theres some new way to be able to make it work for you. I mean, honestly, say i was about to have about to have you little kids you know what . Gopros a terrific way to see their life through their eyes. When you gopro i have seen gopro in action many, many different times, whether it be some of the olympic athletes who like it so much or people say, its still pictures. This is like a kodak moment, when kodak was a great growth stock. Is it overvalued . Yes. Im not sure you want to use kodak. It had a good run. Had a good run. A maybe im not that wrong. Right now its in a sweet spot where people who have it love it. Therefore they buy the stock. How often have we seen that situation. All true. But to the larger point here, if they stay as a player in this, i would almost call it commodity its better. Its not xhom adverticommoditiz. Trying to appear ace content company. I get that. Sustain multiple. Otherwise Consumer Electronics company, come on, you pay that multiple . Might have a twitter. Sony, look at that. Wow. Absolutely. Theres a twitter effect where people just say, hey, listen, i kind of use it, i really like it, and that does in this market, there is a retail element that until theyre shaken out really does i was trying to put numbers together to make sense where the stock is. And you cant. So you cant. You cant. But you get it. You get it but you cant. I get it because i see this thing being used a million different ways. I remember, you know, a year and a half ago, went to a Sporting Good store, theyre like i dont know. I went to best buy to get a new gopro you did . I got a gopro and returned it immediate. I why . What was i going to do with it . Serious. Strap it on to your kids head. Im dead serious. I have a 500 credit. Put it on a surfboard. Great. Thats a good sport. Some of the winners today stick it on your kids head. Winners, micron, we mentioned micron yesterday, analysts beginning to have doubts. Today, samsung is going to raise prizing in july, inventory fears. Try getting look, ive been i remember the 94 cycle where suddenly they added new capacity. You suddenly went from equilibrium to oversupply and theres just nobody building foundries. Thats all you need to know. And they also managed to diversify in a flash. Look at sandisk. Micron is getting a multiple. How many people told me when i was promicron in single digits, a disaster, remember 1994 . Yeah, i remember 94 but remember there used to be 12 Companies Involved in the industry and now there are three. We have a the of ollie gigopoly pricing. Theres three companies, three companies tend not to compete, jut like when you fly, you fly to europe, listen i want to fly to prague. Fly check air or dealt. You realize check is delta. Empty seats . Not a single empty seat. Four different flights, not one single empty seat. Only empty seat, i flew Business Class from budapest to prague and Business Class means no one gets to sit next to you. Man i had a cheese and balogna that was as fresh as the day they wrapped it, a couple days ago. Thats my first class. One airline to watch, ual, did you see the united flight from chicago to Orange County where the slide deployed on en route. Cruising negative. Had to go down 20,000 feet in a hurry. Not affecting the stock. Ive been in a crash landing. Actually never talked about. And you know, they foam the runway. I want to say, i know this is this is a boeing, when we were hit by lightning a second plane in that boeing, boeing has two planes, i hope youre listening, theres a plane and when the plane stops working theyve got another plane. Eight seconds between the first plane and the second plane going on. Boy, blad glad to be flying boeing. Look at Ppg Industries now that its open for trading. Stock up 3. 5 , as weve said a number of times and youve been making the point. M a one of the driving forces for those who believe that the market is going to grind higher. Right. Of course as weve said so often, this is again sort of a reflection of confidence and helps other ceos considering a deal, say, yeah, im willing to take the chance. Shareholders more often than not responding positively to those choosing to do m a to deploy capital. Right. And part is incredibly cheap borrowing rate, should it be route they use to raise the funds. Originally a sherwinwilliams deal. Worked closely with comex and the commission in an effort to secure approval, going to the Conference Call, when the deal fell through, the deal walked away, sher rin williams had to walk way because of problems in antitrust department in mexico. They got 360 u. S. Stores as a result. This is a world cup play. Excuse me . 3600 stores in all countries doing well with the world cup. This is Central America and south america play. They get 3600 stores, dominate the western hemisphere in paint. Makes sense. I hope they can close the deal, ppg. Interesting. Dollar general, last week, ceos going to step down in 2015. Its the biggest s p loser today. This idea maybe that icahns not going to get his way and have it put up for sale. Family dollar. Sorry. Right. Icahn is at Family Dollar but the ideas been there, the consolidation, if you have ceo change at Dollar General what does it mean . Some argue its positive. But Family Dollar doesnt have a coo. Right. Well, we watched the stock, also down a believe on friday when we get the news. Look, Dollar Generals a great growth company. Its a great growth company. In that area of the economy, unfortunately, is a boom. Its a boom. Dollar general because thats two economies in this country. We know that its the worst at times for a lot of people and they shop at Dollar General which is a very nice store. Youve been to your Dollar General lately. I have not. Hes returning stuff to best buy. Thats the shopping hes doing. Did you say, listen, it wasnt on sale . I have a gift card, dont know what to use it for. Gopro next time. Really . Im not giving to you gopro, maybe ill sell it to you above the rate. Im taking surfing lessons. Not a good idea. Windsurfing. Still not a good idea. You roll on that, well play it. You know how old you are . I think young. I think young. Back hurts just thinking about it. Dows down 37. Lets get to bob pisani on monday. Good morning, guys. Jimmy, good to have you back. Trps transport great morning up 19. Materials doing well. Technology stocks doing well. Talking over the weekend with traders about 2014 and so far, its shocking. Everythings rallied. Noticed . Look at the board. Golds up 9 , as everybodys worried about inflation. Some people are. Sarp s p 500 up 6 . Msci world index up 4 . Commodity etf, dbc up 4 . Total bond market up over 2 . Treasuries rallying even more than than everything has rallied in the first half of the year. For stocks, the reason were up, all moves have occurred in the last five or six weeks. And thats because of the fabulous rotation story ive been telling you about the last several weeks. We had a great start with technology stocks. March and april, biotech, new tech stocks hit. Techs fell down and may and june, high yield stocks rallied, utilities came back. In june, Energy Stocks and financial stocks rallied. The great rotation has had a huge impact on the market. The big of the surprise, i did an informal poll over the weekend, far and away, tenyear treasury 2. 5 . Utilities leading sector, leadership in there because of the low interest in the tenyear. Q2 volume and volatility dropoff. In may nobody thought it would happen. That dropped off in the Second Quarter. We want to talk about the major sectors so far yeartodate. Utilities up 16 . Energy, health care, tech. Look at consumer discretionary, we cant get real earnings the builders slowed down. Cnbcs 25th anniversary, talking about the future of trading, traderta tradertalk. Cnbc. Com. Avatars, 24hour trading and ways to trade individual stocks, many types of stocks. Trader talk. 24 hours . Doing overnights. Im ready for it. Thank you. Lets get over to the bond pits with Rick Santelli in chicago. Good morning. Carl. Well, if we look towards eu eurozo eurozone, they had blended inflation data. Up. 9, more than the last week, it was up. 8. Look at our continueyear, we can see were unchanged on the oneday. Twoday, range is picked out already in the holiday shortened week. There is a lot of activity, covering a small amount of ground. Remember s ps up 6 . The tenyears up 6. 5 on total returns, still winning 30year as of fridays close up 14 total return. If we look at intraday bund, theyve been dropping close to 1. 20. 13month low yield if you open up the chart. Foreign exchange, dollar isnt king these days anymore. Euro at good levels. Dollar index its under 80. Settle settled under 80 last year. Phil lebeaus interview with ken feinberg who will announce details of the gm compensation fund. Dows down 30 points. Squawk on the street coming right back. In india we have 400 Million People who dont have electricity and i just figured that its time i do something about it. What were doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. I think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when its needed by the consumer. A smarter Energy System is made with the ibm cloud. Sfx car unlock beep. Vo davids heart attack didnt come with a warning. Today his doctor has him on a bayer aspirin regimen to help reduce the risk of another one. If youve had a heart attack be sure to talk to your doctor before you begin an aspirin regimen. F provokes lust. It elicits pride. Incites envy. And unleashes wrath. Temptation comes in many heartpounding forms. But only one letter. F. The performance marque from lexus. Welcome back to squawk on the street. Breaking news. June, Chicago Purchasing Managers survey, drops to 62. 6 from 65. 5 read last month, represented the best level of march 2011. 62. 6 fits in right below aprils 63. 0 and marchs 55. 9. We continue to monitor anything that has the word survey, some of the harder data points to get better gps on the u. S. Economy. Carl, back to you. Thank you. Gms Compensation Plan for victims revealed later this morning. Phil lebeau joins us from washington. Hi, phil. Carl, here at the National Press club where ken feinberg, attorney retained by General Motors to set up Victim Compensation program will outline what that program will include. Heres some key points that people are going to be focused on when he announces this program. First, theres no cap in terms of the monetary awards that he will decide upon though were expecting him to give us some guidelines. In other words, per fatality, x Million Dollars and whether or not he awards that amount of money that will be his discretion. Also, General Motors in setting this up expects 90 of the victims families to opt in for awards, though we should tell you that in talking with some attorneys, they do not believe that many families will opt in for this program. And key question is, how many fatalities will ken feinberg say are directly related to the faulty ignition switches . Take a look at gm stock yeartodate, Victim Compensation costs ultimately in eyes of some on wall street well over a billion dollars, perhaps up to 1. 5 billion. Again, details in 15 minutes from ken feinberg and stick around. After his press conference, here on cnbc, talking with ken feinberg first in a live interview, his perspective how he set up program and what hes expecting in terms of number of victims families opting in for the Compensation Plan. David, this morning people have been reading stories, new york times, about potential criminal investigations, charges. Yeah. Ideas they are protected as a result of the bankruptcy filing. Give people the lay of the land here, where it may be going, what gms liability might be. The bankruptcy protection does not apply. You cant go to a criminal matter and say it happened before we declared bankruptcy, thats only for civil cases. Ken feinberg will have authorization to make awards for cases that happened before and after bankruptcy. The bankruptcy shield does allow General Motors to say were not going to take on those legal challenge those legal responsibilities. One interesting thing, david, in talking with lance cooper, an attorney who represents the melton family out of georgia, he thinks a the of families want the option of going to court for punitive damages which are extraordinary if you went a case like this they want toe see gm pay and thats why he thinks some families will say thanks, no thanks, we want to eyou in court. Stop trading with jim. Squawk on the street back in a minute. Business can be on at ts network for 175 dollars a month . Yup. All five of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line anytime for 15 bucks a month. Low dues. Great terms. Lets close. Introducing at t mobile share value plans. With our bestever pricing for business. To build something smarter. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. Thats why i always choose the fastest intern. R slow. But its always about the very thing we do best. The fastest printer. The fastest lunch. Turkey club. The fastest pencil sharpener. The fastest elevator. The fastest speed dial. The Fastest Office plant. So why wouldnt i choose the fastest wifi . I would. Switch to comcast Business Internet and get the fastest wifi included. Comcast business. Built for business. Time for cramer and stop trade. Continue to abmazed at gw pharma. Piper comes out with a piece, talks about the conference in chicago that occurred for epilepsy, theyre saying its not just for epileptics, for seizures for kidser its remarkable. Parents will do anything, all right. But this piece is very special, talks about gw pharma, the only pure play on marijuana, that you cant make in the country its a class i felony but can make in england. Talking about autism and migraines, the market size for the drug continues going higher and higher. Its a shorted stock. But the teslas, the netflix. From when i understand from the medical community the Current Treatment for epilepsy is so awful, it has so many side effects, versus success of this, that this one continues to work higher. Remember, medical marijuana has not succeeded in the country because doctors dont like to prescribe it because its not in uniform. Another secret gem in the piece is that the fda working with gw pharma trying to figure out the offlabel uses, what to do. The fda would love for this for this to be legal, i think. They havent said it pointblank, but youre never going to get through congress its not a crime for marijuana. This could be potential inversion. British company. If there were another company that wanted to buy it. I cant believe its not being bought by maybe if it got bought by another company, keep it separate, so the company wouldnt be indicted for maker of marijuana. But pure marijuana i think will replace oxycodone because its not as bad. What happens your hurdle for this stock to translate to other pot names. Fdas not going to work with them theyre not pure. It has to do with a pure strain, not having some other drug in. Only repository, its not going to come out soon. Frankly, look, this has potential to be what happened with fda and aids, the people that had it rose up and said, fda you better do this. An old friend from college, shes responsible person, shes head of the fda, she has to look at this stuff and say weve got to give parents this drug for these kids because the rate of success versus what the current course of action for it gives you desedation, abnormal behavi. This thing has had remarkable success in trying to curtail seizures. If im a parent of someone who is a child, believe me, id abthe fda saying, gm pharma, please let us have it. Mad money tonight. A couple of situations emblematic of what happens going on in the country. Timkin, first interview. The spinoff. Not the base but the high end proprietary. Sonic reinvented itself. Theres 3600 sonics, but this is a company that is drivethrough fastfood. Finally, emerge energy, whos ever heard of this . Theyve got the best fracking sand in the country. Based in wisconsin. Its an mlp, done remarkably. Fracking is not going away. These companies dont come on tv, guys, youve got to watch. Theres actually only a certain kind of sand that works. Make a competitive product in that area thats better. Fracking sand, offer that to companies only a certain kind of sand that worked, based in wisconsin. This is the pure sand. Had to go from 4,000 railcared to 8,000 railcars to transport the stuff. Its one more part of the revolution in fracking that im not stopping in talking about. No. As i point out, youve done a great job. I didnt know about fracking sand. Im watching amazon. Also, nasdaq, another 14year high. The best performing nasdaq 100 performing stock of the year, apple. Wow. Thats going to lend a lot of weight to the 100. Aerospace stocks are down, because of eric canton losing. I think that people are being short sighted. The stocks shoot up higher, if it goes away. If it does go away, fully discounted. Be aware, i think those stocks like boeing, which my Charitable Trust owns, are getting overdone. Theres a moment its good to have you back. Fully engaged. More engaged than most people are. You may not be engaged forever. Theres another step after engagement. Im further excited. Yes. Full engagement. See you tonight, jim. Simons here with a look at whats coming up on the ten. A big hour of live news events coming up. Ken feinberg about to a. Unveil gm compensation packagen two decisions from the Supreme Court, one on union dues and obamacare. And bis, bank of International Settlements launched a blistering attack on what it describes as euphoric markets, well consider that as well in hour two of squawk on the street. . . Thats enough time to record a memo. Idea for sales giveaway. Return a call. Sign a contract. Pick a tie. Take a break with mr. Duck. Practice up for the business trip. Fly to florida. Win an award. Close a deal. Hire an intern. And still have time to spare. Check your speed. See how fast your internet can be. Switch now and add voice and tv for 34. 90. Comcast business. Built for business. Thats keeping you from the healthcare you deserve. At humana, we believe if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. The street. Im diana olick. Pending home sales jump larger than expected 6. 1 monthtomonth in may, thats is the index that measures signed contracts in may, not closings. Forward looking indicator of june and july. This is the largest monthly jump the roler tos recorded since april 2010, when people rushing in to get on the tax credit. Pending homes 5. 2 lower than may of 2013. Regionally, northeast, sales jumped 8. 8 , midwest 6. 3 , south up 4. 4 . In the west where we had been seeing slower sales, pending home sales up 7. 6 monthtomonth. All lower yearoveryear. Realtors citing lower Mortgage Rates and inventory. First time home buyer still not in the market, just 27 share, far lower than usual. They say that full 2014 sales will come in lower than 2013. Again, unexpected 6. 1 jump in those signed contracts in may. More online, of course, realtyche realtycheckcnbc. Com. Thank you. Its the last day of the Supreme Court session for the year. Weve seen the courts striking down aerial, saying police need a warrant to search your cell phone. Today rulings on two issues. One key provision of obamacare and contraception, ruling on collective bargaining. Well bring you decisions as soon as they hit the weres. Already issued a decision rejecting attempt by the trusty to sue banks to recover money lost in the Bernie Madoff uppon scheme. Watching General Motors as well. Compensation expert ken feinberg is set to announce the plan to distribute money to victims of accidents caused by ignition switch issues. Lets listen in. As much information as we could about what ought to be in this program. I thank General Motors for the total cooperation in establishing this program, via funding it, and funding it without any cap on the aggregate amount of money thats going to be availablen gm basically has said, whatever it costs to pay all eligible claimsed up the protocol, they will pay it. There is no ceiling on the aggregate dollars. Also, gm has said, under this program, anybody who already settled their claim with General Motors before they knew about this coverup or this ignition switch problem may rip up the release they signed and come back into this program to get additional compensation. So ive read there are some individuals who already settled and gave up their right to sue in return for compensation. They may now ignore that release and come into this program. And receive additional compensation. The program will begin to receive claims on august 1st of this year, a month from now. And i want to thank the deputy administrator, my colleague for over 35 years, who is right here in the front row, camille has worked with me on virtually every one of these compensation perhaps over the years and shell be here after the press conference to answer additional questions that individual media may have. The program will commence on august 1. It will begin to receive claims between now and august 1, well have the claim forms, the frequently asked questions, the website. We are translating the claim forms into french, canadian, spanish. But it will be august 1 when we begin to accept claims. All claims must be postmarked no later than december 31st, the end of this year, for accidents that occurred any time up to december 31st. The gm bankruptcy is no bar to filing a claim under this program. There is no bar. If an individual was injured or killed, unfortunate, in one of these accidents before or after the bankruptcy, it doesnt matter the date of the accident. The bankruptcy will not be a barrier of any type to the filing of a claim. Now, well obviously have to stick around into 2015 because people will file claims, some of them late in the year, and well need time to process the claims during 2015. But if you file a claim with the fund, a few points should be made about the overall program. First, the program is entirely voluntary. Nobody is required to file a claim. This is a voluntary program. Second, once your claim is submitted and we deem it substantially complete, that is it has documents necessary, we will process that claim either if its a simple claim, we will process it ken feinberg laying out gms voluntary Compensation Plan as he put it, a key milestone for gm attempting to move forward clearly, as the internal investigation. Lets get some reaction from an attorney who represents the families of 80 alleged gm death victims, more than 1500 injured individuals. Bob hilliard joins us. Immediately we have two key elements coming out that the gm bankruptcy will not be an impediment for people who wish to file a claim and at the same time if they have settled with General Motors, they are able to come back the waiver doesnt stand, they can apply for increased compensation as he basically lays out qualifying criteria and some stage the formula by which people will be compensated. What is your reaction to those two specific measures . Ill start with second one. Good morning. So, if you sued gm and settled your case mr. Feinbergs right you can come back into the plan. But ive read the plan and as they say the devil is in the details. Gm or mr. Feinbergs plan will require an offset as to anything you may have settled. In other words, lets say theres a case where you settled for 5 million but you didnt know about the fraud. You didnt know about the defect. So you tear up your release, come back into the plan. Looking at numbers that the plan provides, i dont know that you would ever reach your 5 million threshold before you actually got any additional money. So in regards to coming back into the plan, once you have settled the case, youll have to take a look at each individual claim and make a decision. Your first part of your question was the bankruptcy issue. My response to that has always been the same, and it was my response to mr. Feinberg and gm, if this is voluntary, how can it be voluntary if the alternative is should you not choose it, they will use bankruptcy to defeat your claim . This is almost like voluntary servitude. If you have to use the fund in order to get compensation, otherwise you face a bankruptcy defense by gm. My suggestion to gm is, if you really mean it, then waive your bankruptcy defense in litigation. That what a claimant can look at fund and the litigation and say, no bankruptcy defense, i can value what i want to do. Do i want to spend the time and it will be years in order to litigate it. What about the numbers . Gm has acknowledged i believe 13 publicly, acknowledged 13 deaths linked with the fault. You are representing people in greater number, 80 alleged death victims, 1500 individuals what your class action, your court case will say. Its feinberg at this stage going to bring in more of the people to the gm fold . What is he saying on the detail of who is eligible . Absolutely. All of the clients that i represent meet the eligibility requirements generally, as the ceo of General Motors, mary barra made clear that 13 has been misconstrued. Thats not any attempt by gm to say this is all that has been injured. Ken feinberg has told me personally and i have heard it from miss barra they want this to include as many individuals as possible. So, you can expect that the deaths that will qualify will be a very, very high number because thats how the plan is designed. Bob, stay with us for one moment. We want to take you live to the Supreme Court. Hampton pearson has details. First important ruling of the day, harris quinn, eight Illinois Home Health care workers basically suing so they would not have to Pay Union Dues or be compelled to join a union. In a 54 decision the court has ruled in favor of those health care workers, a key sentence from the majority opinion from Justice Samuel alito saying, quote, no person in the country may be compelled to subsidize speech by a third party that he or she does not wish to support. The First Amendment prohibits the collection of an agency fee from personal assistance in the Rehabilitation Program who do not want to join or support the union. The case goes back to a lower court where those workers will be able to go forward with their lawsuit. First important ruling of the day. Of course, now waiting as you can hear from demonstrators behind me on the hobby lobby decision. Back to you. Thank you, hampton piercen, that is a body blow, they will not be able to collect in 26 states dues from people who they can argue they negotiate salaries for. Thats politically also for the funding of the democrats in certain states, huge implications. With union workers, membership and power in decline. Majorly reduced number of workers belonging to unions in 2013 versus years ago. This is another setback. Weve seen this in wisconsin. When scott walker removed that provision, immediately the teachers unions losing 65 of membership. That has huge implications moving forward. We got that decision. Well await more. When we come back, you heard him, ken feinberg delivering his plan to compensate victims of g p gms faulty ignition switch. Hell speak to phil lebeau. More squawk on the street back in a minute. [ female announcer ] we love our smartphones. And now telcos using hp Big Data Solutions are feeling the love, too. By offering things like onthespot data upgrades an idea that reduced overcharge complaints by 98 . No matter how fast your Business Needs to adapt, if hp Big Data Solutions can keep wireless customers smiling, imagine what they can do for yours. Make it matter. Welcome back to squawk on the street. What mannkind, the stock higher after the Company Received fda approval for the inhaleable diabetes street. Approval comes threes year after the fda asked for additional studies on the effect. There was sell on the news reaction but take a look. It is coming back this morning. Now theyre buying. Looking at broader markets, we are higher across the board. Economic data here to digest. Big jump on pending home sales. David katz. David, here we are, limping along to the finish line of june of the quarter of the second half. We havent seen a down quarter since back in fourth quart of 2012. Can earnings and Economic Data upon us keep it going . We think the earnings are going to be pretty good. We think its like the last two quarters, which is at or modestly above expectations. Not looking for reburst growth but slow growth has been pretty good for the stock market. We think more volatility but the markets should have upward buy. Tom, its strange to have the jobs report on a thursday, because of the holiday shortened week, i would think this would be a biggie given the fact we had 3 decline in Economic Growth last quarter. Yeah. Look, what i would say is this. Q1 wasnt reality anymore than q2 is going to be reality. The fact is youre going to see a significant bounceback in the Second Quarter, gdp growth up to 4 growth by our estimate. You know i think people are sort of looking through the noise of the first half of the year. Once you start to get into h 2, the underlying trend growth will continue. We think the payroll report will be consistent with that as an idea. David, a blistering attack over the one by the one Financial Institution who correctly warned the financial problems we had leading up to the last crisis, bank of International Settlements. It said Financial Markets are euphoric in the grip of a search for yield but investment in the real economys week and future remains uncertain. They say a puzzling disconnect between the markets buoyancy and the economic developments around the world. Are you concerned by that warning, david . We disagree. We think the proof is in the pudding and what were hearing ceos and cfos spending more, feeling better about the economy, seeing a great deal of takeover activity. Seeing the acquiring company go up on the news as well acquired company. All of those things are bullish for the economy and bullish for the stock market. Stocks are selling at 16 1 2 times earnings, in line with historic averages over the last 50, 60 years. So were actually comfortable with things. Tom, theres also in this bis warning really a shot across the bows of janet yellen and countries they say in the late stages of financial booms. The tradeoff becomes effectively raising Interest Rates and bringing the cycle on versus storing up major problems further down the line for those, and i paraphrase, that have gorged on cheap money and cant afford it when the rates rise. Do you think it will move yellen to get a little bit more aggressive . I say probably not. I dont think it has anything to to do with the bis paper. I think one very important champion of this idea has left the fed, governor stein, he was the voice on the topic. What i find revealing in yellens last press conference, when asked about this by one of the reporters in that scrum during the press conference, she basically said, look, its really im paraphrasing but said, its not on our radars right now. I think for the fed its not whats going on around the globe. We can recognize theres a number of challenges. For the fed its about trying get to a point where they can feel comfortable normalizing rates and for bet or worse, continue to print 200,000 jobs, i think thats it for them. Given the fed policy, david, and Economic Data, your prediction on earnings, what do you think its going to take to break this calm . Are you nervous about the lack of trading volumes and volatility . Were not concerned about the trading volumes. We think volatilitys going to pick up, we think external events can spook the market. But in terms of earnings, earnings will come in pretty good. Companies have done a very good job of setting low expectations and coming in at or better than expectations. We think that continues for the balance of the year. Tom, is it healthy to see this level of stock buybacks, corporations buying back stocks instead of investing . Yes, increased mergers and acquisitions but do you want to see this level of buybacks . Again, its revealing about the backdrop. I think companies are saying we dont see any other economically viable opportunities for us invest in any different areas of cap. Healthiest for other people to decide. As an economist, id love to see the money get put into the cap x space but companies dont see the level of Economic Activity to warrant such cap x at this point. Thank you very much for helping kick off the week, last trading day of june. Breaking news from Supreme Court. Employers can refuse to pay for contraception under obamacare. Tell us more. Reporter i dont know if you can hear crowds behind me, prolife demonstrators shouting hobby lobby wins, hobby lobby wins. Another 54 decision from this court. They did not decide the case based on clear First Amendment decision. They decided it based on the idea that the 1993 religious freedom restoration act was basically trumped the Obamacare Mandate for contraception. Just starting to dig into the opinion. But heres the key sentence from justice alito, again, speaking for the majority. Contraceptive mandate, as applied to closely help corporations, violates rfra, thats the restoration i want to get it right religious freedom restoration act. Our decision on that statutory question makes it unnecessary to reach the First Amendment claim raised by cona stoga. The key case. Court saying in 54, contraceptive mandate part of the Affordable Care act violates 1993 religious freedom restoration act. Well dig into more of the opinion and get back with more detail. Closely Held Corporations, this wouldnt apply to publicly traded companies, for example . That, first glance, would be yes. Its what we thought the court or some of us anyway when we listened to the oral argument, could the Court Somehow find a way to sort of thread the needle here, if you will, craft a very specific ruling in this case and not necessarily get into the whole mine field of bigger corporations and issues going forward. Bottom line, would you say, this is a blow to obamacare . You would have to see it that way. Specifically since the language is so straightforward about the contraception provisions of the Affordable Care act. Visavis, 1993 law passed by congress. Hampton, why did the central argument aided by the federal government that you could not ascribe religious beliefs to a closely Held Corporation fail . Why is the corporation allowed to have religious beliefs . Id have to get into both the dissenting opinions which i havent had a chance to look at and more of the detail of how the Court Majority got to the five votes necessary to come to this conclusion. Ill get back to you on that one. All right. Hampton pearson, thank you for the breaking announcements. One of in this case owners of that business were religious and thats why they were protesting. Obviously the court was search threatic to their case. More on General Motors and ken feinbergs victim Compensation Plan that is being unveiled in d. C. Mr. Feinberg himself will join us as soon as shes finished the news conference. [ male announcer ] this is the age of knowing what youre made of. Why let erectile dysfunction get in your way . Talk to your doctor about viagra. Ask if your heart is healthy enough for sex. Do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. Side effects include headache, flushing, upset stomach, and abnormal vision. To avoid longterm injury, seek immediate medical help for an erection lasting more than four hours. Stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. This is the age of taking action. Viagra. Talk to your doctor. To build something smarter. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. 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Interestingly, guys, the big move on this oil has folks over at gas buddies saying youre pay the highest prices at pump this fourth of july weekend since 2008. Not pleasant this weekend. Important condensed week in the markets leading up to a weekly claims, monthly jobs report on thursday. Its a big week for Economic Data. Well get Market Wisdom from art cashin, next. Im randy and i quit smoking with chantix. For 33 years i chose to keep smoking. Because it was easier to smoke than it was to quit. Along with support, Chantix Varenicline is proven to help people quit smoking. Its a nonnicotine pill. Chantix reduced the urge for me to smoke. It actually caught me by surprise. Some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. If you notice any of these, stop chantix and call your doctor right away. 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And find out more about our twoyear price guarantee. Comcast business. Built for business. Watching General Motors compensation expert ken feinberg announcing the plan to distribute money to victims of the accidents caused by gms ignition switch issues, laying out the criteria used to qualify the formulas for calculating the amount. Hes already said that people who had settled before the bankruptcy can come back to the table, and those that have already settled would be able to come back if they were able or eligible for more money. Ken feinberg will join us live shortly. S p trading above the record close, the highest close of year if it closed right now. Art cashin at ubs Financial Service joins us at post nine. Help us take stock in the first half, look forward to the second half. Good to be here. What do you make where we are, broadly speaking . At an interesting point, the s p has got to get up through 1968, 69, intraday high, and then theres real trend line resistance, up around 1975. So were very, very close, some testing points could provide a breakout for the bulls if things get going. Youve written about some bulls, i dont know if you want to say lose their nerve but starting to ask deep, dark questions. By certain valuations, the market is at levels that it hasnt seen since the dot. Com bubble. Thats not a timing indicator but it is somewhat worrisome. Well see how things begin to go. You dont sound like you have a lot of conviction in this rally. And its something thats echoed by a lot of traders here, something weve seen throughout the bull market run. What is driving it, then . Is it the corporate buy backs that we keep talking about it . It has been, corporate buybacks have been key to the whole thing. In fact, the markets been driven by earningsen this a big schism, people who look at macro, who look at gdp and a variety of other things said, the market doesnt deserve to be here, it should not be this high. People look at earnings say it should. The corporate buybacks have allowed people to buyback enough stock to keep price earnings ratio high because theres fewer stock outstanding. Some of that over the past four weeks has begun to at least indicate that it slowed down. New announcements further buybacks not showing up. Now that could be two things. Could be they looked at the market and say were at an alltime high, why should it be paying up here or say, i want to conserve cash in case things slow down. Art, as far as low volatility is concerned, one, we have low volatility because of the feds and this dovishness which persists. The second thing they said, which i thought interesting, they dont think youre going to get the economy actually running motoring above potential for another four years. Then they think presumably some Interest Rate action to start depressing us. That would mean nine years of expansion. Is that possible . Well, its possible. It is not historically normal because you tend to see signs of slowdown and recession, kind of roll over after 6 1 2, 7 years. So, were all debating how far the recoverys going, its almost by historical standards a little long in the tooth. Gold has begun to gain. Were dwe saw the best week for the japanese yen. Are you seeing Warning Signals for the stock market . Youre seeing some minor divergences but as simon said, with 56 of the worlds economy operating at 0 interest, its really tough to see why this thing isnt being pushed along a little further by the fed and others. Finally, are you seeing any indication that this baton will be passed to retail, mom and pop are a driving force behind stocks again . I think it may still be months and possibly years off, because it was such a double hit, particularly if you had people who got burned at the end of dotcom, came back, started to feel better and then had the housing bubble blow up on them. Yes, we back at highs. Yes, if they bought back in or stayed in they might have done equally well, but that scar is still burning, i believe. Well talk to you soon. Art cashin. We have two major decisions coming out of the Supreme Court within the last 20 minutes or so. Joining us on the cnbc news line, richard caldwell, former federal judge of the Southern District of new york. Welcome back to the program. Good morning. Thank you for joining us. Lets deal with the first decision that theyve that really stands above all others as far as many are concerned, a decision by scotus the government cannot compel closely Held Corporations that have certain religious beliefs to offer contraception coverage as part of insurance packages under obamacare. What is your reaction to that decision . Well, it is actually a relatively middle of the road decision that attempts to balance deeplyheld religious convictions in small closelyHeld Corporation owners against the rights of female workers. The court does not appear to want to write broadly on this subject and basically has carved out a small exemption warning that broader exemptions will not be available. So its a balancing act of sorts. Is it a major blow to obamacare or is it peripheral, in your view . The decision really isnt about obamacare. The decision is really a First Amendment issue of religious freedom and expression. It will have very little impact on obamacare in and of itself. But it does its interest, because its the first time the court has considered religious freedom applying to forprofit companies and owners. Does that set some kind of precedent here . Well, it definitely has that potential, although its going to be very narrowly applied, at least from the view of the majority opinion. It is a one of the very difficult social issues that the justices agonize over and the of course the 54 split is there, i guess at this point, maybe three dissenters on this one. And i would not read it as impacting obamacare in any direct manner. Let me ask you the other major ruling thats come out that appears to be a body blow to the labor movement, the Union Movement in this country, a decision by the Supreme Court to strike down the laws in 26 states that required Public Sector workers, teachers, Police Officers to Pay Union Dues. Simply because the union can argue they are negotiating their wages at a higher level, regardless office whether they want to be a member of the union or not than seems very big, sir. That is a major decision, and although the Supreme Court majority did not outrightly outright overrule the prior Supreme Court decision in abude versus the detroit board of education, it eviscerated that decision and it is a very, very strong blow to the right of Public Employees to unionize. Presumably the right of the states to regulate themselves, democratic policy within a given state has been overruled. Absolutely. This will have a broad impact in the relations of Public Employees to employers. Good to hear from you, judge, Richard Holwell joining us on two important decisions from the Supreme Court. Coming up, Roger Mcnamee on what he likes in tech for the second half of the year. Facebook taking flak or experiments altering your mood. Squawk alley at the top of the hour. 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The Santelli Exchange this morning. Rick. Good morning, carl. Id like to welcome our guest, Professor John taylor from stanford. Thank you for taking time this morning, professor. Good to be here. Thank you. Professor, last week a lot of hand wringing over what exactly is keeping Interest Rates so low, not only in the u. S. But specifically in the u. S. And maybe around the globe. One of the worry beads is that at the epicenter of leverage are Financial Instruments known as repos and the supply of good collateral in the form of treasuries is in short supply. Do you buy into that argument as one of the top five reasons why rates are so low . I think its a factor, but i wouldnt put it up there very high on the lisp i think you still have this question about the recovery while its looking okay, its still below what many people forecast, you know, if you averaged out the First Quarter and the Second Quarter its going to look pretty bad. People are forecasting more than that. I think thats whats going on, this continued overall d disappointment in the economys is what, to me, the main factor thats keeping rates down. Professor, theres a lot of different numbers to look at. Theres no shortage of fundamentals. Many of the surveyed type data points, like todays chicago or the national ism, seem to be running pretty strong. Of course, gdp considered older is running week. Durable goods retail sales better. How do we categorize the data point . Do i throw the surveys away because things are a bit different . I think the surveys are basically saying were going to continue to get this kind of 2. 5, 2 growth since the socalled recovery began. You can see sometimes its better, sometimes a little worse but not seeing a really good pick up like the past. I think thats what the data continue to tell us, First Quarter confusing because of the weather. The same storys there, thats what im seeing. I hope it could be better but its not. Its good for markets, good for certain sectors, part of silicon valley. Overall speaking, that gdp number could be a lot better. Thats what youre focusing on. Yes. Were you surprised that Janet Yellens last press conference, do you think personally that she may have been a bit too flippant, if thats the correct word, regarding the uptick that weve seen in certain areas on the pricing side . Well, theres always a concern. Central bankers have responsibility of price stability. Its looked good. In fact some people say its been too low. I think it cant be complacent about this. Theres a lot of liquidity out there. Could pick up any time. I think its best to keep focus on overall goal of policy. If shes given some indication thats in question, thats not so good but lets wait and see. Thank you very much for taking time this monday morning, professor. Always great to have you. Carl, simon, kayla, back to you. Guess again. Rick santelli at cme group in chicago. Its deadline day as contract negotiations continue between International Long shore and Warehouse Union and the pacific mary time association. If they dont reach a deal, the economy would have 2. 5 billion per day problem on its hands. Jane wells is live in los angeles with the story. Reporter im at the port of los angeles. They call it june gloom here when its gray in l. A. In the mornings during june and it burns off. Its gray hanging over contract negotiations which are expected to continue through the experration of the contract which is 33 hours away. By midjuly, if there is no agreement between the 29 ports on the west coast and thousands of dock workers, well, could we see the pictures from the tenday lockout years ago, the smell of rotting feed in the air . The Maritime Association or management, if you will in the contract, says west coast ports contribute 2 trillion to the u. S. Economy equivalent to 12. 5 , of total u. S. Gdp. The l. A. Port is the largest. This is an inbound ship coming in. Traffic is up 8 , some may be due to retailers planning ahead before the possible shutdown. But that 2002 lockout still being felt as Jock Oconnell says canada capitalized on act kri moan yus relations between management and labor at u. S. Ports. Made a major point of selling the virtues of bringing goods through vancouver or Prince Rupert in the west coast. To say that thats a more secure, reliable route for importing goods into the midwest and the east coast markets. Reporter now the Maritime Association says west coast ports have gone from 50 market share to 43 since 2002. The question is, will that go even lower with the expansion of the panama canal, set to be completed possibly by the end of next year. A lot on the line for both sides. Stay tuned. Back to you. Jane, is it fair to say it looks like there wont be a strike and they will ultimately come together . That seems to be the latest analysis. Reporter i dont think there will be a strike tomorrow or a lockout. It can go either way. If there is no agreement by the middle of the month we could see a very different picture. Things have gotten very nasty between both sides but both realize theres so much more competition that perhaps they will come to an agreement on more friendly terms than they have traditionally in the past. Thank you very much. Jane wells from port of l. A. Next on the program, the markets in 25 years. How big of a role, if any, will exchanges play . Ceos of the big of the three exchanges, what their industry and jobs outlook is. More on that after the break. E. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your Business Needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. 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I would. Switch to comcast Business Internet and get the fastest wifi included. Comcast business. Built for business. We are watching General Motors this morning because compensation expert ken fine interlaying out the plan to disburse money to the victims. He is laying out the terms of financial payments as we speak. Turns out the flund start applications august 1. The application period will be closed december 31 at 11 59 p. M. It will be completely voluntarily. Ken feinberg will join us live as soon as he concludes his news conference. We are spending the day looking at the future of markets. 25 years from now. Exchanges may or my not be a big part of that picture. Answers from some of todays biggest industry players. The concept of exchange isnt simple. Bring buyers and sellers together to get deals done. Thats where price is discovered. Thats a democratic process through fair access to allow people to express hair opinions. Trading is a democratic business. Everybody has a say in it. Collective wisdom of the market will put it in the right place. The democratic nature of markets will go indian hand with technology over the next 25 years. You have seen that the market become more electronic. It has been more democratized. Technology and smart entrepreneurs are finding ways of putting networks together of almost overnight. There will be a network that will allow us to trance act stocks and bonds and financial what started off as a gathering of brokers under bought only in 17292 has turned into a market that connects millions of people and ideas. The size and scope of Financial Markets is p only expanding with new products being constant lynn throw deuced. The level of sophistication is bound to grow. If you want to invest in starbucks but negative tate risk of the price of coffee or adm the price of corn, products that allow to you do that. Of course, all of those new products mean lots more transaction volume and the need for extended market infrastructure. 25 years from now you certainly had to have the bandwidth and capacity to the volume you seek today will be several orders of magnitude higher than that in the years to come. It also means a lot more focus on Cyber Security and securing the stability of Financial Markets. We are going to have to be hypervigilant about protection, prevention, and incident management. In the end everyone will have to embrace change but at the right pace. Two steps ahead. Then your invasion of where you are is probably mott accepted by the marketplace. If you are a step behind then you are toast. If you dont change from within you will find a group of, you know, 20yearolds, smart 20yearolds will suddenly create something that will be disruptive. Guys, thats 25 years from now. The exchanges will look a little similar but maybe different but, of course, everything could change in the next 25 years. In the Halftime Report we will be talking about how you make trades. Go to cnbc. Com because bob pass an write has a great piece on seven huge changes that will happen to the world of trading over the course of the next 25 years. It is a great read. Some of the stuff only comes out of movies. Thats the best way to put it. All right. A look at the future in trading. Thank you. I know theres a lot of interest down here on the floor. Lets send it over to kayla with a look at whats coming up. We have early facebook invest sxwror venture capitalist Roger Mcnamee to give us his thoughts on this facebook experience and how they are weeking moods. Is social media good for marketing . How good . A new report and we will discuss that with him on cnbc. Finally, we will get thank you latest on the g. M. 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Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back. Breaking news. Bank of new york mellon. Bank of new york mellon becomes the second largest position at triumph Fund Management after mondalese that can be converted into stock. They say they have contacted the bank of neshg mellon to express the interest in discussing ideas and initiatives to drive longterm growth and enhance shareholder value with the companys management and board. Not a lot of specificity there yet. They probably will bring ideas from their other Financial Holdings such as legg mason or state street. We look forward in engaging with them as we do with all their investors. July 16 mr. Pelt is one of our keynote speakers. Back to you, carl, for the rest of the news this morning kate, thanks very much. Good morning. It is 8 00 at face book headquarters. 11 00 a. M. On wall street. Squawk alley is live. Welcome to squawk alley. The g. M. Compensation fund being laid out. Supreme court decisions. A lot to talk about