that's what the gridlock is all about. >> i don't think you actually blow. >> good things are going on in the economy --? i don't think that helps anyway. >> washington needs to get out of the way and if they don't, there's one more tool that the fed has beyond regular qe and after that we're kind of done, but i don't think we'll need it. >> thank you very much, that does it for us today, right now it's time for "squawk on the street." ♪ ♪ there's some tumbling going on today. good morning, welcome to "squawk on the street." i'm carl quintanilla and david faber live at the new york stock exchange. interesting monday setting up and we'll have an interesting co-host with kelly evans. we look at the s&p up 17 in the past 21 sessions, of course, almost half of the s&p hit new all-time highs or new 52-week highs last week.

there's a look at the germany in the green. our road map begins with the 1.1 million deal. ceo melissa meyer is promising to, quote, not screw this up. after another historic week for the markets and testimony from ben bernanke coming up wednesday, jim cramer will tell you what to watch when stocks open this morning. >> plus the shine is coming off metals as gold and silver prices continue to fall. how long will the decline continue? >> it's more than just yahoo! , including one that may be hitting shortly as well. >> first up, yahoo confirming it is confirming it is buying tumbler for their 1.1 million in cash and yahoo says, quote, per the agreement and our promise not to screw it up, tumbler will be as a separate business. yahoo is hoping to gain

popularity through the use of tumblr. cnbc and yahoo have's business alliance and co-produce editorial content. yahoo is a faded internet site trying to buy some cool. >> cool can be purchased. there's a price tag on cool just like everything else in the world. >> there is? >> cool costs $1.1 billion and 180 million people use tumblr. i could never understand where is the e. >> not like a p-e, just the letter? >> to me it's a question of second grade, but i think the guy who started it was in second grade, but i would point out they have 180 million users and suddenly tumblr's got relevance and 1.1 billion, that's just a check and suddenly, 180 million people have heard of yahoo. >> true. although to carl's other point that you weren't making there is

no e as in earnings. that's never stopped any of these deals and in fact, if you look at the instagram deal from facebook, many would say it was a smart deal. certainly you would remember the time from google and now we're talking about an $800 million income business potential, but nothing says this will be that. >> your tumblr page, what's it look like? >> it's -- it's -- yeah. >> i am working on that and i tend to be closer to the leading edge. >> some of my younger friends have tumblr pages and the guy who writes for the street.com. ross kenneth earning inhas a tumblr page. we don't have to because we're on cnbc.com, but people that are devoid of a blog, they go on tumblr. >> there was a lot of discussion about some of the content that could be racist, pornographic in

some cases and how do you manage that and keep it satisfying to those who create the content. >> you have to do it. procter & gamble does not want to be sandwiched with a porn video. >> no. >> a lot of these advertisers like with clorox. i mentioned about twitter. clorox is looking at twit tore find out where there are flu outbreaks and to sell them extra clorox. >> i think that the social media is underrated by people who are older than 23. >> i agree. i assume you buy it and then try to figure it out. there is an argument to be made still that much of the increase in the stock price has not been due to what marisa meyer has done at this point, but because of the increase in the stake in ali banna and how that comes public. >> the private equity firm with stakes and interesting businesses that have been a relevant operating website.

shares are up 67%. >> yeah. >> come in with a positive bias. >> we go on tumblr and it has comic and animal and to me it's silly stuff and if you're trying to sell them old spice? >> so if i see one more comparison to geocities, david, from '99 and another purchase. >> this is not that? >> i was invested in that. >> were you, really? >> yes, i was. part of a partnership. it was nice. this fellow who got the check this morning. what's he going do? is he going to buy u.s. savings bonns? >> think he'll keep rung the business. interestingly, it is a successful -- social media from the new york area, from the new york area. >> i think this was fairly interesting. >> and focusing on the fact that he's a new yorker. >> by the way, this thing is

being covered like it's disney cap cities and the front page of "the new york times" come on. >> if you can get a tv channel for $180 million people on the web, it worked. it works. what is he, thor? >> meyer has her own animated gif on tumblr which we can see, as well. >> this is a ceo who is -- >> she's getting it with consumers that the company heretofore has not been popular with. >> again, we're too old to get tumblr. i don't mind saying that. i remember when the i started the street.com i felt very youring. it was eternal youth. these are eternal youth sites. it's like ponce de leon. >> so i will be younger if i, in fact, start using tumblr. >> your kids will think you're younger. >> that's a good thing. >> when my daughter set up my

twitter account, anybody that has a picture of a cat we're re-tweeting. i built 700,000 followers with that logic. younger people are susceptible to animals. >> so this is cap city's disney for this generation. >> you have burk, too? >> moving off another historic week, the dow s&p 500 at record closing high. the before-week winning streak. ben bernanke is prominently on wall street's radar. on wednesday the fed chairman is scheduled to testify for the economy as investors, of course, continue to seek clarity on when with the fed might taper. that's the new word, taper, its massive bond-buying program. earlier on squawk box, erik fisher who has long oppose that program and wants to see it scale back, stopping the purchases all together would be too disruptive. >> you just slow the pace and the question is we have to hammer this out at the table by

how much do you slow the pace? when do you decide to dial back or reach in. not stopping. that would be too violent for the marketplace, that's my opinion. >> otherwise known as the tape are. >> was that the violent effect? >> listen to me, listen to me. this issue has plagued people for 6,000 dow points and it will plague people for another 2,000 dow points and by the time we start tapering back, why didn't i buy pfizer at 35. what was i thinking of bristol-myers at 60. our viewers only know one thing which is if you buy tesla you make money. >> i was with someone this weekend, okay? and his son had picked tesla -- >> you're kidding. >> another guy said my son picked it, too. we had the buy and the pace, boom, a couple of hundred bucks

with the charging station. no one who was picking tesla is thinking about when the fed is going to stop buying mortgage bonds. >> having come from the west coast just this weekend. >> there are teslas everywhere. every corporate office has five charging stations. i mean -- i don't know. we are blind on the east coast to the car. >> although they're only making 20,000 of them. >> 21,000, you missed that update. >> you were in the absolute heart of the community for tesla ownership. >> remember -- >> people didn't believe in the iphone initially. >> on the markets for a moment here, you know, commodities keep coming down, yet oil interestingly and the journal points this out today. >> do you think it is phoney? there is an investigation. >> i don't know which is the tell for the world economy or what exactly it means. you're not concerned about that, though? >> i just think that oil --

>> and/or the decline? >> i'm mystified because every other country in the world is slowing down except the united states and we had 2 million more barrels than five years ago. the price seems to me phony. i think the price is the united states' price and the world price set in brent and there's only 800 people that control it? not one bit given the fact where copper is, iron is. gold is on track for the slide down for the eighth session. metals continue to get pounded here. well, they're the real economy. china, how many negative stories can we read about china? i'm waiting for the revolution there. i do believe that china is slowing down. in the meantime, china is a function of european imports and we know european imports are down badly. that doesn't show any sign of changing. fisher for a moment on squawk today tried to equate the fed

with the hunt brothers. you can buy all of the mbs you want, but when it comes in the cell that may be a problem. is that a fake comparison? >> that's a desperate desire for bond liquidity here, but the i.d.e.a. it's pushed attet classes and that chase for yield. things are getting worrisome on certain levels when you look at credit, when it's high credit and real estate to a certain extent and everyone is starting to tilt a little bit. not like in '06 and '07, but a little bit. >> when bernanke spoke last week he mentioned they would find new ways to look for warning signs and q &'s mentioned things like covenant light. >> but realgy came on "mad money" and said the average fico score you need to get a home is 750. i don't know a lot of friends who have 750.

>> then the front of this, "usa today." a piece about how consumer spending is about to take off because of household creation, birthrates and marriage rates and pent-up demand. >> kimberly said people are starting to have more babies. >> japan say growth economy because they're reflatinreflati. we would be a growth economy because we're starting to have kids again and household growth. that is significant. >> we've always had a positive footprint, not like japan where the population is shrinking or russia where it's shrinking dramatically and has for years. >> i don't think they're back to where they were in 1937. >> no. >> that will feed into home depot earnings this week, right? and target and staples and best buy, and what else do we got? >> other than campbell's soup which was an mm-m'm! m'm! good quarter this is a retail-dominated week. don't forget wal-mart is still

down from where they reported. my charitable trust sold nordstrom because that was a bad quarter and the stock was down. it's incredible. high end. people believe the high end is going to continue. let's see what they have to say. they sell the ccreuset crock pots. they cost, like, $400. >> i cooked last night and made some chicken burgers and they were darn good. >> chicken burgers? >> is there photo evidence of that as there was of you making eggs? >> on the grill? >> you grill it. you have to wait until you can lift it. in other words, it doesn't go like a hamburger, you have to get -- and it cooks very, very quickly. you cannot -- it's not rare and it's always medium and i cooked chicken sausage if we're going

to go completely into it. >> that's nice. i still don't know what the crock pot is. stoo. >> it's the c-r-o-o-s-e-l-e- and you come with me and you'll get underarmour forren chooer than what with you would pay at retail. you want to save money like the guy who got $1.1 billion? you shop with me at the out'lls. >> we're not going lululemon. >> we'll get a tesla and we'll gear up and we'll go. >> you bet we will. you bet we will. >> when we come back, yahoo! , tumblr or nothing. when we come back a breakdown of today's m & a news and united ceo, jeff smisek getting the boeing back in the air. phil lebeau will tell us what that means for the air carriers. a lot more "squawk on the street" live from post 9 in just

a moment. it's as simple as this. at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon.

i'm not quite willing to go to merger monday. i know a lot of people want to go there. we have one big deal will and a lot of little things. let's get to some of them, though, because there is a lot of activity this morning. warner chillcot is getting bought. those talks -- when you're based in ireland so we have to put out more information. it's .16 actof ais, and that is based on the closing price of the 17th of may -- excuse me -- yeah. that's -- thank you. 43% premium compared to warner chilcott and that is based on actof ais on the 17th of may. they wanted to buy it for $123

bucks a share. not interested. there was talk with valiant and now this deal is announced and it's under irish takeover law and there's a look at ireland and when it comes from freeport mcmorran. remember that deal that was met with a great deal of skepticism from its own shareholder base. that affected the value of the deal and the shareholders said the peer group keeps going up. they're in houston today on that vote and what did they do before it? they said we'll pay $3 special dividend and freeport says we'll pay a buck to our own shareholders as well. they do cave here. i don't think the vote is in yet, but i assume they'll get that deal done, jim, so planes will be owned by freeport if and when this deal gets done and they pay the dividend on the 30th.

>> is this not a bribe, so to speak. >> yeah. you don't get the three unless you vote for the thing. it's not like they raised the price of their offer? >> you have to go through the thing and then you get paid the three. by the way, if you're offshore, you get taxed immediately 30% and that those are funds that own it, best and final. don't even bother with me with that stuff anymore, please. it doesn't mean the paper -- it's not worth the paper it's written on. very quickly, elan continue to do this royalty deals. they had a call at 8:30 this morning and they bought revenue streams and what we are here waiting for is royalty pharma. remember royalty pharma is out there with a 11.25 bid for elan. it will raise it for any moment. they'll go from 8.25.

they're trying to pursue the same strategy as royalty pharma and elan are wondering about some of the deals they struck. >> it seems like these guys are out of the growth. out of the money from selling tysabri, but royalty pharma wants to buy them and it's irish takeover law and it will be coming with a higher bid for elan. >> that's all cooking in the la c-r-e-u-s-e-t. most expensive pot, so i know what i'm talking about. >> we'll go full speed ahead with kramer and his "mad dash" is next and more "squawk on the street" live from the nyse straight ahead.

in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. ♪ [ male announcer ] how do you engineer a true automotive breakthrough? ♪ you give it bold styling, unsurpassed luxury and nearly 1,000 improvements. the redesigned 2013 glk. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

[ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] [ telephone ringing ] now a waiting room is just a room. ♪ ♪ the new blackberry z10 with time shift and blackberry balance. built to keep you moving. see it in action at blackberry.com/z10

if you love stocks, no better way to start a week than with jim's "mad dash." let's start with ge. >> i think yet stock's moving is people don't understand. what they want is a special dividend or dividend boost from ge. no one really cares about inside the company. let's see what they did with it. >> does this portend a dividend for the rest of us? it sure should, but the company is as opaque as ever and my charitable trust owns it and i come up snake eyes. this should translate for

something for the regular common stock shareholders and let's hope for news soon. >> amd. you call it a love stock among our viewers. >> amd last week, this stock was downgraded by goldman sachs to a sell. they have a chip that's in the xbox and all of the momentum. this morning you get a price target bump from ubs and there's a let of people who wrote this company off. intel always wanted this company to stay in business and there's no justice department investigation and that's always been my allegation and it could be 110 instead of 100 and zero. you have a de facto monopoly. the advanced microis alive and well and good products. don't write off nvidia which has got some interesting chips. i just continue to come back to the fact that the chip stocks are red hot and they're not going away. >> all right. we'll talk some more tech after the break. the opening bell a few moments from now and so is kelly evans, we'll find out what the newest member of our team is working on

when she joins us for the first time when she joins us on "squawk on the street" in just a minute. flying is old hat for business travelers.

the act of soaring across an ocean in a three-hundred-ton rocket doesn't raise as much as an eyebrow for these veterans of the sky. however, seeing this little beauty over international waters is enough to bring a traveler to tears. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

[ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. >> you're watching cnbc "squawk

on the street," live from the financial capital of the world. the opening bell set to ring in just a couple of minutes. the s&p 17 of 21 and the dow has made 21 all-time highs so far this year, guys and get this, the dow is less than 100 points for beating the record for most points added in a single year. we've added 2250 and the record is 2315 in 1999 and we're only in may. >> sell in may which was which is something that makes you want to shoot yourself. obviously, this is percentage basis and not that big. >> of course. >> i went over the charts this weekend. i have to tell you, other than the gold stocks and a couple of the iron and steel stocks it's very hard to find stocks that have been bad. every segment, oil's been good and copper's been bad, okay. >> even the commodities and i'm saying oil's been good, but health care, insurance, it doesn't matter. it really doesn't matter. if you were underinvested like a lot of hedge funds, you're way

behind the market because everything has been going up. the reinsurers have been the hottest group. >> you said earlier in the year and it's been months since you first said, jim, there would be a squeeze on equities because there's not enough to buy. >> when you look at the top 25 stocks you would not believe how much stock has been retired. it's really other than the banks. the amount of stock that's been retire side aes. >> there is the opening bell, of course. the s&p at the top of your screen. the big board healthcare realty trust celebrating its 20th anniversary over on the nyse. at the nasdaq, new york congressional representative michael grim. >> we mentioned campbell briefly. volume was up 5% and shares up 37%. >> there's a very nice man who wrote. he writes this column in the lower left hand column of the journal. i want to be polite. he's not been that right and he says campbell will's soup is not going to be that hot. please, please, writers and

editors of "the wall street journal, examine what you've written. give us a mea culpa. this is one of the stories that would have kept you out. fortunately, they're written before the bell. >> you tweeted about this earlier this morning. this is sort of your mission of the day. the ideology of skepticism at all costs, i regard it as newism, it's not skepticism. campbell's soup has done the right things. it's the same campbell's soup that traded at 33 for ten years? no. look at what they're doing for offen's sake. they've got rell oij are ijon. >> it did benefit from the multiple increase that we saw across the board as a result of the heinz deal. we pointed out those stocks moved so far beyond that that it made the heinz deal look cheap in retrospect. >> tesla is running out of gas. like i said, he's probably a great guy, but what i'm saying

is the skepticism, it's emblematic of the skepticism. >> maybe it goes away and we're posing the ideas that -- maybe professor siegel's right. maybe you keep running and you look at these charts and almost everything is moving up and you just said it. don't you sometimes have to step back and say maybe we're ready for a pause? >> i went to the great larry tisch, and he said what stocks are you buying? stocks that are at 180. that was completely facetious. he said it was the best advice he's ever gotten during that year. look at 3m. 3m was the worst quarter of this period. 3m is up four bucks when it reported. why? why? why is it up? rather than the stocks that go from 100 to 120. i search for answers and search for meaning. it's an existential crisis that

i have. we continue to have the fed-tapering discussion and the japanese economic minister says the yen's correction has been largely completed. >> they're up 47% in the nikkei. yeah. >> they made a u-turn on that news and there will be a day, jim, when we do know the central banks will take their foot off their gas and you have 600 million and you have tumblr. what will you do? go buy municipal bonds? this guy could help the economy. the money that's coming from these entrepreneurs. a 16-year-old is not going to sit there about a checking account. he's going to put the money to work. he's got $600 million. >> i'm sure the line of financial advisers began this morning very early and wherever tumblr's headquarters are they'll give him ideas. >> they'll get a 5% to 6% yield and maybe they put him in high growth. he's young, so he should have a very large allocation to

equities. thank you. >> i'm saying that this kind of capital injection is not anecdotal anywhere. it there are these guys. think about what they do with their money. they do not buy ten-year treasurys. for the most part, what they do is they plow it back into google. they plow it back into whatever they think is yelp, okay? yelp. groupon. the guy has $600 million. he's not going to sit there and buy old tech. he's not going to buy texas instruments. he's part of a certain economy. >> yes. >> there's another economy with guys who don't have that kind of money and they need guys like that to start hiring. >> that's my point. maybe this guy sets up a foundation that hires people, maybe he can start a new company that hires people. silicon valley hires people. the bocken hires people and

these are shales, utica -- and they need to. i just think that, yes, maybe they go and buy a really expensive home. i don't know. maybe you buy a whole bunch of homes. en. maybe we'll talk to him and found out. maybe you put it into the business or a new business, because yahoo is the best -- >> before he was at a company who wasn't do much more with it. now there is a guy who has his whole life ahead of him, but this is the printing press and it does get into the market. not anecdotal anymore. i'm saying there are too many of these. it's not anecdotal and there's dell and facebook and they spend it. they buy teslas. you might be the karn dee, mj.p morgan, effect. that's what i am thinking? >> gatsby. i'm trying to figure out what he

would do with it. what's the powerball person going do? >> listen, we had an ipo here on friday? >> tableau. what is that going to do? >> brunswick can only make so many boats and maybe do a custom boat? where are the customers' yachts? answer the is they have them suddenly. they didn't have yachts. i was with someone this weekend at an auto dealer and he came up to me and he goes, you earn what? my 401(k) is back. it's back. thank you for not making me sell it, but -- now that guy is going go buy something. 401(k)s are back. >> they're back. >> 401(k)s are back. >> people are putting money again because it makes sense. it makes sense to invest. it does you can throw darts that the market and you will find, and barrack or newmont, you're doing well. >> that's true. >> when i hear you say things like that it makes me wonder

whether it's time to sell. >> go ahead. every time you sell. >> so alternatively you say this thing's going to run like 99 because it kind of feels that way to me because either you're going to be right and this is '99. >> you know what? blow the doors off and just keep going. >> when you look at microsoft at 12 times earnings, do you really say oh, my god? 12 times earnings? i'm really frightened. we're talking about campbell's soup and not pets.com. >> earnings season was not particularly good so weir seeing some expansion. you have to know that economic growth will follow through. >> we have continental and united and continental. it doesn't matter. it's going higher. when you see the airline stocks move and the mortgage insurers is being trekkelinged about if

you have. if you are eye little guy if terror da, the 590. you only want to get rich once and the 1% compound over eight years. i would put my money in massive limited partnerships because that's a toll road like tinder morgan partners is what i would be in right. >> today vwouldn't be going to dow components and i would buy j.p. morgan. do i care that jamie dimon is split in half? he's not going to be, and i love it, he's the best bank executive and the guy that loses the chairmanship? >> if he does your fear is that he's going to leave. he's down 25% if he leaves. >> right. >> so what's the point? how come we pick on washington mutual's guy? he's got boat tricks that guy.

he's having boat tricks. >> we are -- we're in annual meeting season, of course, and we have the hess annual meeting and we saw what happened there in terms of the settlement between elliott and hess. today we got the news saying pxp will pay a $3 dividend on the 30th. and we have one more shareholder meeting tomorrow which has been a great deal of focus and that's their 3.23, and as of now they're going to lose the vote. moaninged dole, to be acquired by sprint to go to 147 cents a share will be voted down by shareholders. >> so do they have to use a 50-cent sweetener? >> it doesn't appear like that's going to happen. what wi wanted to point out now is simply say the meeting's tomorrow. let's start thinking about it a bit as we head into that meeting. we'll be reporting on it tomorrow morning, but it's certainly worth noting that at

this point, given there are substantial shares held by about five large funds, none of whom it makes that big a difference to, even if they were -- they talk a big game about even going to bankruptcy here, but having spoken to any of those funds this deal's going down as of now and it is not clear that any raise that softbank would allow to happen and by the way, massasan said no way at all and sprint is not going to happen. they would still control it and it ends up making it a mess in terms of third-party transactions. where does it go? >> no. it's not clear. it's not clear. they have a debt payment due in june. it's not clear what will happen with clear wire, but there is a belief that amongst this shareholder group that there say great deal more value there. >> right and that it will come to the fore once the sprint deal has been completed because it is

necessary regardless of who ends up owning sprint, whether it is softbank or dish. >> they want 350? what do you need? it was a write-off, david. >> we'll have more on tomorrow, but i did want to point that out because we haven't mentioned the name in a long time. >> a lot of speculators and it's like people want fannie mae preferred. they're like a vampire -- vampire stocks. >> or walking dead. >> true blood. that's probably something you stumbler on. >> they do come back to life. you have to shoot them right in the head, you know what that, right should. >> this is not walking dead, right? >> no, it's not. you have to have netflix and arrested development out in a few days. how much is netflix on for? it. >> that could be trouble, man. >> let's get to bob pisani.

>> a mixed market right now here. i see germany's at a historic high and japan is at a 5 1/2 year high. did you see the comment from the japanese economic minister over the weekend? the yen may have weakened eno h enough. that caused a low flutter in the end and that got a lot of attention and that was one of the major emails i got over the weekend and silver and gold is down again and silver is at a 2 1/2 year low. everybody's talking about bernanke's testimony and that's going to be on friday and john williams from the san francisco fed got everybody in a flutter and saying he's a duff and they would try or would like to see them taper off purchases of bonds before the end of the year and most of the people feel the same way i do that the fed would need three or four months of much stronger economic news, particularly employment news before they start tapering off. we don't see it yet. you're certainly going to need three or four months of that and that's the way people feel here.

as for the sell in may. 4% in the s&p so far and it's bucked the trend and may's been terrible in the last few years and we've been down three second quarters in a row. 2012, 2011 and 2010. it's bucking a historic trend right now. let me just comment on the yahoo-tumblr deal because everybody down lear other than bernanke is all they're talking about. they're weak in mobil and they have to do something, they're weak in social media and have to do something. even you have to admit is dollar 1.1 billion is a lot of money to spend for unsticky eyeballs and young people who don't want to have media pitched at them. here's two statistics and i'll toss it back to you. tumblr has 100 million unique blogs and they have one unique viewer per blog. here is a better metric. yahoo generated $5 bill glon ref you. >>. tumblr generated 13 million.

in other words, tumblr is not doing anything in terms of adding to the revenues of this company, not for many, many years. let's hope many it's the best thing they did, maybe it's google buying youtube and it's an awful lot of money to spend on a risk investment. >> yahoo will do their best to make it work. >> i'm pro the deal. anything that gives them visibility is a huge win. >> meantime, the newest member of our team kelly evans joins us at post 9. it's great to have you. >> you've done a couple of days of "closing bell." yes. yes. easing into it. and we'll have you at 9:00 for a little bit and at 10:00 you'll be with us in the morning hours and we'll check in with you in the morning to see first what you're watching. >> you know i love a little micro. >> lumber futures, jim, and this is what so many people, you've probably seen some of this

discussion yourself, we'ral rdzy talking about why the sell-off. on the day when we had the silver down something to 8% to 9% has come back, but what the fact is that is most interesting is we've seen limber off 6.6 or 7%. it's down 15% year to date? it peaked in february and you have guys at miller tabak and elsewhere pointing on ut saying if it was an indicator of the cycle turning or the sell-off lurking or something, what is it telling us know? just when everyone is getting excited about the builders and the housing market. >> i come back to what dan fulton said, the ceo of warehouse. he said it depends on where you have it. we have the lumber west of washington state and we can't send it quick enough to japan and there are other parts of the country when there's too much lumber. it's an imperfect market. i'm trying to press it on the decline, and he felt that it would be short lived because the

housing -- this is what makes it so difficult to say it is a boom. >> like you said, is it a supply story? >> lowe's and home depot reported this week. they're a huge buyer of lumber and i'll go to what frank blake says. you can't -- there's not enough drywall and that's a sandy issue. >> but it is amazing to me, and i really pressed fulton. this makes no sense to me for having a housing recovery and then we look at housing starts versus housing permits and i come back to saying, kelly, welcome because you raise questions that i know i'm desperate to answer and i don't have them. >> i just wonder because if you look across the commodity places and maybe it's a dollar story, but what are the signals on a did i leak today when you have silver selling off. a lot of people are saying the market is extremely volatile and then, i don't know, i hear what

you're saying about the market generally, but again it goes back to then how do you tie that together with the underperformance of something like a lumber and like a copper. >> lumber is a world market and japan is buying an incredible amount and lumber does fluctuate and the futures are not -- and louisiana-pacific is having a good year and i understand georgia pa sick is having a good year. so it's difficult to figure out who is not using it. i met kelly by sengdz her, spencer jake, sending similar emails. will you stop being so -- >> i have no idea who you are. >> this is true. >> that was a couple of years ago. >> would you stop it? right? what did i say to you? >> yes and it's funny because like you say, there ate sense of wanting to be skeptical about the rally because what happens every six months you go yeah, but, yeah, but, yeah, but. are you always telling people to get in too late, too late, too late.

understanding, you can hate it, but you can also understand it. so that's a lot of the discussion that i see happening now is a lot of people who hate the rally and are starting to understand it. >> some of us like the rally and we're also trying to understand it. >> love it or hate it. it's the essence of what's happening. >> having you here from now on is an econogeek's dream come true. >> i'm not going go down with what the president said about the attorney general said in will california, but i do -- you see what he did for the president. >> it didn't help him, but to me -- that was good. >> well done. we'll see you in a few minutes. >> sounds good. sounds good. >> ellie evans. by the way, in honor of kelly joining our team today we're doing a special ask an anchor edition of "squawk on the tweet." what do you want to know about kelly evans. you can tweet us at squawk

street. >> and kelly will answer them this morning. >> i want to know what she thinks about burrell lap. >> i want to know the hemp story. it's all about the -- i'm sure we'll get some of that. >> when we come back, capitol hill has its sights set on google glass. we'll talk about the congressman who wrote a letter to google, expressing concerns about the wearable technology and it did not go away. all stations come over to mission a for a final go.

this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.

>> dow 30 heat map got some components on the green, but it's dwindling as we speak. general motors, intel and exxon. we'll get jim's "six in 60" when we come rid back. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing.

bringing the power of investments to people's lives. invested in the world. bny mellon. just like a tablet. so easy to use, it won a best of ces award from cnet. and it comes inside this beautifully crafted carrying case. introducing the all-new 2014 chevrolet impala with the available mylink system. ♪ [ beeps ] ingeniously connecting you to your life and the road. that's american ingenuity to find new roads. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away.

♪

>> sent for "six in 60," six stocks if 60 seconds. bernstein said this one is going to the on and it this goes higher. >> michael kors. this one's going report better numbers than last week. being the big secondary here, i think it will go higher. i haven't heard red hat's name in a while. the reason why i mentioned it is the sales force.com reports this week and i think it will be a

great quarter. accentu accenture. now goldman upgrades it? come on, this has been's horse. >> brinker. >> wells fargo downgrades that and one of my old favorites and ruby tuesday and the restaurant business has been hot and it could be cool. >> you wouldn't go against the group. go against the call and not the group. carmax downgrade today. another one with, i wouldn't go and a lot of guys are downgrading stocks because they've gone up a lot. that's been a real bad call this year. >> we make fun of them. i hate that, too. >> all right. >> what do we got coming up tonight? >> spirit, united continental. spirit s-a-v-e, he's done a remarkable cost. health care trust why? because two people got $600 million and one from powerball and one from tumblr. it's a real estate investment trust with a good yield. >> they've also performed extremely well, haven't they? >> it's one of the sectors that we haven't focused on and that's what wealthy people buy.

>> mad tonight at 6:00 and 11:00. let's go over to simon hobbs to take a look at what's happening in the next half hour. >> the east coast has it, and we'll have the latest on the tumblr deal with yahoo and they're worried about google glasses and the united ceo will be on the program as the dream liner takes to the air across the nation and it's kelly evans' big day, a new squawk on the street. stay with us on cnbc. [ male announcer ] we gave the new e-class some of the most advanced driver systems ever made. stereoscopic vision... distronic plus braking... lane keeping and steering assist... eleven enhanced systems in all. ♪ twelve, counting your adrenaline system. the 2014 e-class. the most intelligent, exhilarating mercedes-benz ever made. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

[ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪ changing the world is exhausting business.

with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

we'll begin with the 1.1 billion deal. marisa meyer promising the site will run independently. we'll bring you the latest details and another record-breaking week in prospect for the markets. fed chairman ben bernanke is talking wall street. to tape or not to taper? we'll debate it ahead. we will talk with one of the congressmen who has penned a letter to larry page expressing his very own privacy concerns.

>> first, we'll kick it off with the news from yahoo! , the tech company buying social blogging service new york-based tumblr. >> david, as you mentioned off the bat, cnbc and yahoo has a business alliance to share and co-produce editorial content and there will be a debate literally for years whether this is a smart purchase by marisa meyer and let's run down three big things why hoo is getting for 1.1 million in cash. david karp and he's been an entrepreneurial web developer since middle school. he basically dropped out of high school and he was home schooled and taking japanese and advanced math at his own pace. to tumblr himself and it's part blog platform, part social network, part news feed. meyer pointed out tumblr has 200 million monthly unique visitors nationwide. most important, these are not

the same people who currently visit yahoo sites. tumblr skews younger, more mobil and he's targeting for growth and more than half of tumblr's users are using the mobile app seven successes for three. one of the things marisa meyer does better than anyone is interpret data and figure out how to translate that into better products and yahoo has been flying blind relatively speaking when creating products for mobile and younger audiences. you'll have data and real hard numbers about what they should be building. meyer is good at doing that, and finally, i would point out that this is just really kreshl as they troy to move into the next stage as she finishes up her first years, guys. back to you. >> even if you can't monetize tumblr, the data from it may help them in other businesses,

correct? >> correct. that's what google has above every other search engine. they're constantly getting data in and what people are looking for if they're able to tune their algorithm better than a microsoft and better than a yahoo and that's a crucial advantage. even if your people are smarter and if they don't have the best information about what to build next it's harder. with tumblr they should have more of that information about what they need to build next and how to build it. >> that doesn't change the fact that tumblr is distinctionly unprofitable. didn't david karp tell "the new york times," it turns our stomachs. i know there's no advertising now, but a lot of the site is apparently, inappropriate, pornographic, and there are racial questions on some of the stuff that's out there. this is not where the coca coal as of the world want to be, john. >> absolutely. this is the same story that we saw with youtube just a few years ago. very similar here and it wasn't

being monetized when google bought it for 1.65 billion. lots of questions whether it can be monetized and whether the insight people were getting into. video will be worth it as video becomes crucial and yahoo is getting a lot of revenue from video now and the youtooub buy, and open question about whether meyer can do with tumblr was able to do with you tube, but no question meyer knows the playbook on how to make that happen because she was in the executive suite when google was figuring that out with you tube and blogger before that, very quick. >> seeing word press which has worked closely with tumblr. the ceo writing on his blog last night that spiked from imports and there were 72,000 in an hour and i guess the question just becomes while that's a drop in the bucket and the tumblr sells adds every day. does this basically -- is it a sign for users and for people out there more broadly that, you

know, time to switch gears and maybe stick with the word press instead. >> i think that's a real danger here especially when you get that younger audience that maybe isn't too cozy with the yahoo brand. you expect to see a few people maybe bolting and maybe hedging their bets and we need to switch to another platform and we promised not to screw it up and now it's up to karp and my tore go up there and give people a vision about how it will make everything better and see if they can convince users to buy into that vision. >> all right, john. as always, appreciate your reporting, john ford. >> now we have news out of sac and steve cohen and kelly cohen being subpoenaed to testify before a grand jury. kate, what more can you tell us? >> kelly, there's lots of concern this morning amid the report you referenced that prosecutors over sac over alleged insider trading may be heating up specifically the notion reported in the new york times that steve cohen last week received subpoena to testify

before a grand jury as well as a general belief that maybe the firm or cohen personally will be charged criminally in connection with trades regarded to have been prompted by insider information. while the impact on cohen and sac could be huge, so will the impact on investors who up until now have been kept relatively well informed and sensing from the tone that was positive and almost confidence their position. as of friday, investors were told, we can no longer cooperate unconditionally with the government and we may not be able to communicate very much with you going forward. investors i know who have been stalwart supporters of sac all along are now telling me they may have to change their stance and they may have to pull money on the firm on a key investor redemption deadline coming up on june 3rd. just a reminder that the last quarter investors pulled on paper about $1.7 million and that money will be coming out through multiple quarters by the

end of the year. it's possible they'll lose the same amount or more this quarter depending on investor unrest. they manage a total of $6 billion in outside capital detracted by the most recent redemption which pulled $660 million during that quarter. that's something to watch. sec has been able to keep investors relatively happy every on the years. they have compounded an noel returns and this year they're not locking so hot amid this legal quagmire. they're up 1%, which leaves them up 6% yore to may. that's a big drop from where the s&p is at and unclear where other hedge funs stand as of yet, kelly and carl and it's not a selling point that sec can rely on right now as it faces the legal headwinds? it does feel like we're in the endgame and there's the five-year deadline potentially in july, but it does feel as though they're clozing in.

that being said we don't know if you will be indicted, but man, the time is getting near, isn't it. >> that's right, david, and i do think sac has kept a grave face up until now. they've communicated with employees and investors and at this point employees have not received a direct update since the friday investor letter or the reports this morning. i think also people took comfort from the $600 million settlement that the sec reached in march which appeared to have closed off the possibility of civil charges related to some of these hotter insider trading cases on trades related to pharmaceuticals, elan and wyeth as well as tech stocks with other current and former employees. criminal charges were always still a possibility and now it's looking like they are closer than they may have been before. >> if the fed do charge them this is a raer occurrence and the consequences for wall street

or for hedges could be absolutely massive here, kate. if cohen will take the fifth. this is unbroken territory. >> there are a couple of issues here and one is i doubt the government wants to see it going out of business as a result of all of this and weirdly, that being become a point of leverage with sac if things really get hot. i think that you've seen obviously a pattern of successful insider trading cases coming out of the u.s. attorney's office in recent years with other current and former sac employees as well as hedge funds that were in similar types of investing styles and used expert networks and got tips. so the type of case that we might be dealing with is not new and yes, this would be an incredibly big fish and it would be a hifrtorric recent of events. big day here at post 9.

as you can tell we have a new member on "squawk on the street." kelly is back in the u.s. after her stint across the pond. if you're wondering, here's what kelly's been up to in europe. >> already in london it's being billed as the rogue trader and the office behind me that cost the bank a billion dollars and its more nuance to that. failure is basically what the euro group has imposed on it. >> the boston is already front-page news in london. this is the copy of "the evening standard" calling it bomb brothers. nevertheless, the race will go on. >> do you support lowering production levels from the 30 million barrels a day? >> i think we're in the market of supply and demand and having a stabilized price is the issue. >> you can charter this boat for 12 hours for exclusive use during the olympics, but if you have to ask how much you're probably not going to be using it. >> a lot of people told me to

get hooked up with russell simmons. is that how you pronounce his name? sorry and make your own clothing line and i definitely of the to look into that. >> so you're thinking big? >> i'm thinking big. >> you get a decent -- and having ever seen a foot pedal or a teleprompter before. >> we got there and someone put this woman on a plane now because frankly, i can't stand her. >> you've been busy. you've been busy. >> i'm looking at the hair styles, as well. yes, the audrey hepburn sunglasses. >> i gabby douglas talking to her at the olympics, i was so impressed with her poise. she was sitting there you know when you get people just thrust into the national and international stage like that, and she handled it so well. i was really inspired. >> just watching that i have no idea why you would want to come back here and sit with us. it looks like life is pretty interesting. >> we don't get gymnasts through

and we don't chase around oil minister, but we have fun. >> you'll get out on the field plentiy and in honor of kelly joining us on team we are doing a special ask an anchor edition of "squawk on the street," what do you want to know about kell evans. you can tweet us@squawk street. >> some are safe for work, some are not. >> i don't even want to know what the questions are out there. i won't plead the fifth. how about that? >> that's good. >> united airlines will start flying the dreamliner after being grounded worldwide since the middle of january. united continental holdings ceo jeff smisek is directly after the break that's coming now. plus, as capitol hill takes aim at google glasses, we'll talk with one of the congressmen who penned a letter to larry page expressing their very own privacy concerns. stick around. we're back in two.

clients are ae to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.

united is finally reintroducing its 787 into service this morning after being grounded since the middle of january. the flight will be from houston to chicago and joining the passengers will be our very own phil lebeau and the ceos of both united and boeing. this is a big. p.r. opportunity, phil. good morning. >> reporter: it is a big p.r. opportunity, soimon, but also very important for united and

joining me now first on cnbc is united ceo jeff smisek. jeff, a lot of people are trying to understand just how important is it for united to get the dream liner back into service again? >> look, it's really important. it's our flagship airplane and we'vy waited a long time to get it back up. we're pleased to have it up and it's important to us because we have a lot of routes that we'll be flying with existing routes with this airplane and it's an airplane that customers just absolutely love. >> you took an $11 million charge in the first quarter because of the delays with the dreamliner and not having it in service. how will you be compensated by boeing for the costs that you incurred. >> boeing has always been a good business partner and i'm confident that we'll work something out with boeing where we'll be satisfied and they'll be satisfied. >> are there testy conversations and i'm not trying to get privy with your conversation, but whatever points where you said, jim, liss own, this is costing us. >> they understand that we were damaged by the delay.

they understand that by this issue and they're good business partners. they'll work with us. >> any concerns about passengers perhaps balking a bit, where you had batteries on fire and thisplace plane may not be safe, but are you concerned that there might be passengers saying i don't want to fly the dreamleaner right now. they're working very closely to make this an absolutely safe air draft and they have solved all of the issues with the battery. the battery is perfectly safe. jim mcnerney and i are flying today from houston to chicago on flight number 1 which is putting it back in service. >> you're putting it into international service with the flight from denver to tokyo. >> that's correct. we're flying it from here out of houston to heathrow. >> when you look at what's happening on the airlines, i want to shift gears and ask you about the rise in fees because you've increased your

cancellation fee as have other airlines recently. you just saw the report on the airlines making $3.6 million in baggage fees. there are more than a few people who are worried that the airlines are hitting a point similar to the mid-'09s that you're pushing the customers. >> it is very important for us to make money as an industry, historically we've lost money since the wright brothers and we're at a point when we're moving the airlines to actually a business. a business that earns an excess of its cost of capital and they can make the investments and the products that the customers want. all of this stuff, the 787 and the things that we're doing in product and the new terminal, it costs a lot of money and it's good for customers and for us to be profitable and we continue to make the investments that the customers demand and expect. >> we're on a flight today. you're not going to have wi-fi on the flight today. people say it's one of the newest planes why won't you have

wi-fi? >> it's disappointing for us, too. it's been in development for a long time. they're going to certify it for wi-fi in 2014 and you can bet we'll retrofit it as fast as we can. >> how soon until we see the remaining dream liners start to filter into service for you guys? we have a couple more coming this year and we have them coming over the next few years and we have a total of 55 on order and you'll be seeing more dream liners in the future. >> primarily international. you'll see them flying from hub to hub. >> finally, as all of this was going on, were there ever points when you heard from customers saying not sure i want to be with the dream liner when it comes back or is that more that the media put that out there. >> from our perspective all they've been asking is when do we get it back. this is the best airplane in the skies bar none. >> no concerns there. >> no concerns at all. >> jeff smisek joining you on

the flight. no wi-fi, but i'll be on the flight with you as we head from houston to chicago. we take off in about an hour and a half from now. back to you guys. >> you think they could do something about the airport noise with all of this innovation. phil, great stuff and safe travels as well on that flight. we'll have more from phil, maybe, on that coming up later in the program. now straight ahead to taper or not to taper, that is the question. signs of an improving job market are only fueling talk about a possible end to qe. we'll hear both sides of the argument on the fed-driven rally next. plus yahoo-tumblr is not the only ones making headlines. we'll talk to david fab wher we come back. hey, so uh... what's going on here? do you want the long or short answer?

long i guess. chevy is having a big...huge, in fact...event. the-great-deals-on-our-most- fuel-efficient-lineup-ever- for-just-a-very-short-time-so- you-better-hurry-extravaganza! so what's the short answer? awesome. [ male announcer ] the chevy memorial day sale. now, combine current offers for a total cash allowance of $2,500 on a 2013 chevy malibu. offer ends june 3rd! available out there. i knew devry university would give me the skills that i needed to make one of those tech jobs mine. we teach cutting-edge engineering technology, computer information systems, networking and communications management -- the things that our students need to know in the world today. our country needs more college grads to help fill all the open technology jobs. to help meet that need, here at devry university, we're offering $4 million dollars in tech scholarships for qualified new students. learn more at devry.edu.

for qualified new students. bny mellon combines investment management & investment giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon.

>> some big news on gold falling for its eighth straight session. silver down to levels that we've not seen since the summer of 2010. a lot of that has to do with speculation on what the fed might do and we learned today that hedge funds pulled $1.4 billion from u.s. gold futures in last week -- just last week alone on that speculation about the fed. >> that's right. speaking of the fed chairman ben bernanke will speak before the

joint economic committee on wednesday. wall street looking for the hint that he tapers on bond purchases. richard fisher had this to say about qe. >> you just slow the pace and the question is and we have to hammer this out at the table by how much do you slow the pace? when do you sdiel back or leave him? not stopping. i think that would be too violent for the marketplace. that's my opinion. too violent for the marketplace. jim o'sullivan is chief u.s. economist with high frequency economics and diane swonk with mesereau financial. jim, first to you, just respond to what you heard from richard fisher because he's not one of the more dovish members and he did sound unwilling to talk about tapering. >> hi, kelly. welcome back to the u.s. >> thanks. >> i think as a group they've obviously decided that's how they're going do it, that they're not going to do it as he

put it in another speech, cold turk they they'll face it down over several months and i don't think there's any point in fighting that battle and that will be the focus of the chairman's testimony this week, and i certainly wouldn't expect him to declare victory yet to announce the tapering and he will start tiptoeing toward a tapering this week and i think it could start in september. what do you think in terms of the timeframe either for the tapering at all or to begin perhaps as soon as september. >> there's a possibility that it begins as soon as september and that's all depending on the sequester. the bulk of the sequester cuts have been delayed particularly in the defense department and 41 billion of them and they'll hit over the summer and they couldn't believe that congress would go through with it and sht only will they go through with it and keep the sequester through the summer, but through the 2014 year. that's when it will show up and this is the cascading event that the fed's dealing with and it's really important across the

board that we heard from everyone last week mention fiscal drag as one of their concerns and that's the unknown for them. >> at the same time, diane, there are several members who expressed concern that it may be counterproductive because it's forcing ceos to return to shareholders to buy back their own stocks rather than investing in jobs and future earnings for them down the line. if that counterproductive argument gains weight, it could be huge ly negative for the markets because they could withdru or taper faster than the economic conditions would warrant if you didn't believe that to be the case. >> actually, the reason they put in the clause of increase or reduce is that they can could go back if they tapered and all of a sudden the markets fell apart and it's something charlie, vans could be explicit about is they account re-engage. this is something they could play with and the dialing down or dialing up is the way to

think about it and it is stimulative. it's like when they used to have a fed funds rate when we were in a severe economic situation they might move it by three-quarters of a full percent to dampen a recession and stimulata i recovery, but as the recovery got going they would dial it down to half a percent in terms of their cutting. they don't have that anymore, now they have their actual size and balance sheet and i don't think they will stop expanding any time soon. >> indexes were 6% above the highs we set late in 2007. if the fed was look for a proxy of what it's going to do at qe. at what level does it is a enough is enough and are you sympathetic with the argument that what we've seen here is a pulling forward of stock returns over the next five, ten years. >> to a large extent, of course, it's refusing the huge sell-off over the last couple of years and it was pricing in depression effectively and that was wrong and the market has appropriately shown the bounceback in earnings

and the market is forward looking and the economy is improving and the fed's focus ultimately is getting back to full employment and they're succeeding. in this fiscal drag, the fed is winning and we're seeing almost 200,000 a month on payroll gains which is bringing down unemployment. the market's looking that the and the market's forward looking and ultimately this increase in the equity market is validating the fed and if only is helping the job before tapering before the end of this year. >> diane, we've seen this movie before where we get asked to price inflation and should we be repeating those mistakes. >> it's something that the fed takes very seriously and the financial stability aspect of their mandate now. it's not just the dual mandate on inflation and unemployment, but financial stability is one of them and the signs of the market going into a bubble are still very slim and that, i agree that this is not the time

that the fed is worried about that. this is validating their course of action particularly in the housing market. housing prices going up because the inventories are short, when housing prices are going up, we are seeing people redeploy that financing into remolding and vehicle sales and that's how it affects the real economy and they're reassuring that they're on the right course. >> those are the areas we know they'll probably watch when they consider continuing keeping it going so we'll wait for that testimony on wednesday. >> diane, jim, thank you both. >> thank you. >> when we come back this morning former citigroup cfo sallie krawcheck will talk more about 85 broad. the details when she joins us live. the faber and what it means when we come back. we route your order to up to 75 market centers to look for the best possible price --

maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving. has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look

at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors.

>> about an hour into trading and 10:32 on wall street. campbell's soup shares coming back after hitting 52-week highs in the session. the company raising its full-year forecast. american express among the stocks rising to fresh all-time highs and the dow component up 29% this year and chesapeake energy that it hired robert lawler as ceo and he succeeds steven mixen.

>> i want to bring you up-to-date on merger news, if you will. not merger monday. at least start off with something that is a deal, so to speak, but not a merger. elan. the company trying to rapidly transform itself as it fends off the bid from royalty pharma has done a lot of series of royalty deals with they will basically comprise the specialty pharma business. the cardiology and neurology and gastrointestinal and cns and also we'll have some royalty interest on multiple sclerosis drugs. this proposed structure seems to lack a strategically cohesive focus. >> some positive on the deal, others not. one thing to worry about is that it will come with a higher bid at 11:25 and there are expectations that the company will come with a higher bid for elan in the not too distant future. we shall see.

the expectation has come to fruition. and the best in final and at least in the case of freeport mcmorran's attempt to buy pxp which looks to be successful. it will vote for both deals annual -- or the shareholder meeting taking place in houston and this morning pxp says we'll pay a $3 special dividend to our holders upon receipt of the bank waivers and we'll pay it on may 30th. for its part freeport says we'll pay our shareholders a dollar and it will be enough for them to get the vote and get the deal done and it's not -- planes petroleum has been up over 7% most of the session and finally, the actual deal we did get this morning about a $5 billion all-stock acquisition of warner chilcott, a specialty pharma company by actof ais and it's

been very active and people have been actively looking at that time to pursue a merger of equals or it is valiant which had talks with actavis. two weeks later you get a deal and they're saying they expect it to be more than 30% accretist to non-gap earnings per share in 2014. about their 400 million in operational synergies and related cost reductions and tax savings and most of that is in 2014. simon? >> the bar is still very high on what constitutes a merger monday, david. >> yes, it is. and it will continue to be. >> pharma, this is a sector getting so much activity at least today. do you think that's telling? >> whether we'll see larger deals and those are still difficult to do and particularly in a rising equity market when you have a seller saying why would i bother selling and capitalize on shareholders

when -- >> if it isn't these companies trying to fend off some of the inquisitive activity. >> in the case of elan, perhaps they're doing that with royalty pharma and actavis though they will say that's not really why we're doing it. >> meanwhile in washington lawmakers are preparing for the second week of hearings by the irs. how can you tell if the irs is targeting you? >> cnbc's jackie deangeles has more on a very interesting question. >> good morning, simon. in the wake of this irs scandal many americans are asking just that question. is the irs targeting them in any particular way? as it turns out they just might be and that's for an audit and something many americans have come to dread. the concept of irs odd its is not new, but how they might be trying to uncover tax evasion now seems to be changing a little bit. >> for example, they're looking to online and social media to help them zone in on targets. online conversations about

non-payment or underpayment of taxes, could, of course, trigger a red flag and there are also cases when you may buy or sell something online and declare a different value on your concern. they being also find that. other cases where people claim non-cash reductions. so if you deduct cash or clothes and the deduction isn't reasonable it could trigger an audit and there are those who are self-employed. the irs is watching that carefully and that includes re freelancers. they want to see that the information you file matches up with information others are filing about you. wealthy taxpayers are also a target and that's because the amount recovered by the irs is greater, if any issues are found in those cases. consider some of these staggering stats, guys in 2010 about one in 100 americans were audited and with respect to those wealthier americans, those who made $1 million or more, they were audited at 12.5%

compared to 3.8% for those who made 200,000 or more and taxpayers making $1 million or more, they are 12 times more likely than the rest of the general population to get audited. back over to you. >> a lot of viewers shaking their heads at those numbers, jackie. our jackie deangeles. one small florida town is buzzing over the local winner of the powerball jackpot. talk about tax issues. kerry sand sers live in zephyr hills, florida. good morning. >> one tax issue they won't face is they won in florida and no state income tax so that's one step forward of keeping more of the $590.5 million which is the second largest jackpot in the united states ever, but it is the largest jackpot ever won by a single person purchased at that publix grocery store over my shoulder. it was a quick pick ticket sold on saturday right before the drawing.

so it was really a last-minute purchase. the person who won this money is yet to reveal themselves. zephyr hills is as you noted, a small town in florida and perhaps best known for the bottled water, the zephyr hills water sold across the country and now it's more famous for who is the winner. the general guess here because it's a grocery store it's probably somebody who lives in the area who won. this town's budget is of the size that if the winner took all of this $590 million and decided to fund the government, they'd be able to fund the government here for 12 years. that's how much money this is. this is what a winning ticket in florida. >> this is what a ticket in florida would look like. not a winning ticket. as a matter of fact, it says right there not a winner, which carl, i've got to say is perhaps a way of really saying loser. anyway, when you think about $590 million and you have all of

this money, where are you going to go? what are you going to do, and i decided to do a lookaround and if you decided to head to the eastern caribbean to the island you want to get away to, dominique which i've been to, a lush, tropical island and it's vornadoic and just beautiful in the eastern caribbean. your 590 million will be more than the domestic product of the island. >> you've seen a lot of the world, kerry. thank you so much. nbc's kerry sanders in florida talking powerball. >> before taxes. do you even get half of that? probably not. >> we asked cramer in the 9:00 what he would do with the money. master limited partnerships, j.p. morgan, some of the dow 30 which is going higher. >> if you have get that amount of money do you need to invest? >> just hang on to what you have. >> it's interesting that that was a quick pick winner as well, because there is this theory that the quick pick doesn't give you the best odds so we'll see

if that changes. >> if you pick it yourself, there will be a day that your numbers come up and you don't win and for the rest of your life you'll be kicking yourself. quick pick is the way. >> i did quick pick on saturday. that could have been me. >> unfortunately, it wasn't. >> it's only $2. still ahead, j.p. morgan shareholders voting material on whether to split the chairman and ceo roles and we'll bring you the latest on that story and the tech student dropout, he sold yahoo for $1.1 billion and we'll be back in two. mine was earned in djibouti, africa. 2004. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation.

because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪

[ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] [ telephone ringing ] now a waiting room a brand new start.t a room. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to.

plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. >> and now it's time for "get to know an anchor." it is time for "get to know an

anchor." you all have been tweeting us questions for kelly and simon and i have them as well and i'll kick it off. what's the one thing you missed most about america? >> the exchange rate. that was the hard -- it's nice to be back in local currency terms. >> what will you miss the least about london? >> the least? i was going to say the same thing, the fact that no coffee shops are open before 6:00 a.m. or 6:30, frankly. it's impossible. >> who while you were abroad what was your favorite destination? >> you mean that i travelled? i really liked rome. surprisingly liked rome and london is up there as well. >> what's the one app that you can't live without. >> i don't use apps. i use the twitter app. it's self refer earn. >> what's your favorite chain restaurant? >> you know, there is a little chain in manush. i think there is a connection

there for lehman brothers. >> it must be delicious. >> it's really good. >> are you responsible for the weather that we've got at the moment? did you bring it with you from earning land and will we get a sumner new york this year in new york when you're here? >> no. i think it was rainy for ten out of the 12 months. the rainiest was that normal. i'm quite sorry about that. >> who would you rather have dinner with? ben bernanke, or jack lew? just one. >> bernanke. >> what best describes the soundtrack of your life? what one song? can i think and then come back? >> pass. >> what's your favorite economic term? >> term? >> yes. >> word, phrase. >> indicator -- kwe. >> marginal return. >> elasticity. >> externality. >> that's okay. >> we'll come back to that. >> where was your first job. >> my first internship ever was

at bank of america. >> you were a cross player in college. how is lacrosse like business journalism. >> i'm not sure i was a star, first of all. the only similarities are probably the whole locker room mentality. it feels like a locker room in here sometimes. >> sometimes it smells like one, too. >> what was the class in high school that you would never cut. >> that i would never cut? that i would never cut. art class maybe. >> art class. >> completely sentence kelly, growing up they used to call me blank -- >> oh, god! oh, my gosh. by my middle name noreen. i got knees a lot because of my knobby knees. there are a couple of others which i don't think -- >> you certainly don't have now. >> and finally complete this sentence now. i wish they'd call me -- >> oh, i wish they'd call me, period. hey, guys. i'm in new york. come visit. we'll have fun and come down to

the new york stock exchange. >> my favorite were jimmy choo and manolos. >> missunos. >> in honor of kelly joining our team we are doing a special "ask an anchor" squawk on the tweet. >> i think you should send your questions for the rest of the guys as well. we'll throw this right back on to you. >> much later. >> still ahead -- >> that was hard. >> still ahead on the program, who exactly is david karp? >> we did some digging and put together some facts about tumblr's ceo. his journey from high school dropout to now multi-multimillionaire as he sells out to yahoo. we're back in two. ♪ ♪ ♪ we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

one of the big stories of the day is yahoo!. the conference call. big media event in new york tonight at 5:00 eastern time. they do purchase tumbler in cash. times revenue, sdaifd. judging from estimates, about ten times. but the debate will continual day today about the company's ability to monday advertise all those young eyeballs. >> create some "e" in addition

to the "r." one area that is rejoicing in new york city, you know this, as well, carl, you have covered it. you have this reversal media company idea, so to speak, and a number of big names, at least they've been big in name but have they been big in monday advertising the value as they say is the tumbler's perhaps one of the first. >> silicon alley. >> silicon alley but the likes of foursquare or tumbler. they can never complete. where you were just in silicon valley but try. >> trying to keep everything moving, for fear that she will have some important questions to answer on flickr, flex. if she keeps buying stuff, it looks like there's momentum there whether or not she can still display advertising at the rate that people hoped that she could. >> since she joined, market cap is up is about eight or nine tumblers. she's paid for this several

times. the valuation. true enough. let's -- sorry. let's take a quick break. coming up, former cfo of citigroup will join us, sally krawcheck. known as 85 broads. details when joins us live.

thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

thing are eating up. chicago and detroit are deadlocked while boston, pittsburgh, and los angeles are leading their respective series in the stanley cup quarterfinals. they are talking about the big lift hockey fans are giving the league and the sport. >> hockey fans, and we don't take them for granted. we're grateful for their connection to the game, their love of the game. we play to about 98% of capacity for our games for attendance during the regular season. we're up slightly over 100% for the playoffs. during the regular season, virtually across the board u.s., canada, national, local television ratings are up. our business partners were great standing behind us. most importantly we've got great players, the great game, and the best sports fans in the world. >> you can watch the full interview with commissioner bettman by going to our website, logon to sots.cnbc.com. it seems like even as you got

basketball finals going on, mine share of hockey is up. >> despite the fact they had a lockout for half of the season. the bounceback is extraordinary. >> and truncated nba season as well. maybe that's why. people were so hungry for sports and were denied most of the season. >> nba was last season truncated. rangers are down to the boston. that's a bummer. want to hit up some mover haves here. her herbalife shares. up over 6%. can't really tell you why. remember the auditor -- a scandal that had absolutely nothing to do with herbalife that day. they're going to name a new auditor. we expect that. there was a big buyer for the november 45 calls paying up to 570 for those and that was an aggressive buy. perhaps that's had the effect of move that stock up. big battleground still between, of course, mr. icon who has board seats and a large, large

position and bill atman who as we at least expect is still quite short many of those shares. nasdaq is another interesting story. up breaking above 3500 now. we keep saying 12 1/2 year highs every day but we said it now for 16 straight sessions aztec has shown the leadership that some in the early part of the year, kelly, hoped it would. >> tech had been lagging. look at cisco, one of the best performers last week was leading the dow. got people excited about the story generally saying does this mean we're finally going to see an enterprise cycle we can believe? >> google has made a difference. >> absolutely. >> playing largely without apple participating in a big way. >> the level thing quite interesting. seeing it around the world. you've got the ftse at 6700 or above since 2007. nikkei up 14,500, i can't even keep it straight anymore. >> it is what it is. it's record fatigue.

>> it's amazing. in developed markets we're just about on pace of where we were at those 2007 highs. earnings are higher, as well. but in emerging markets we see this major underperformance. >> i'm not sure that you would have record fatigue. you would be happy sitting back, well, thank you. >> some of the hedge funds goes back to the point of sec's performance and what people are going to do now. almost halfway through the year and sitting it out. to what extent now do they have to jump in and ramp it up to keep it going. >> dumping gold and buying equities. >> exactly. >> the market will never go down again, as somebody said to me the other day. >> was that someone jim cramer? >> cramer would argue you want to pull back to let feel feel like they got a bar again. people want a bargain. >> look at bank of england governor saying the other day. it's not just in the u.s., cramer included, concerned about the speed and the nature of the upward move. who was saying earlier, talking t how long it's been since we've

had two down days in a row and you're starting to hear the cautionary talk. is it 1995, 1996? >> point out ironic when i said the market would never go down again. just in case they pull that clip. >> it's on the record now. >> we can edit anything. >> so can the opposition. >> see you guys later? >> okay. >> kelly is going to stick around for the 11:00. if you just joining us, here's what you missed early on. welcome to "squawk on the street." here's what's happened so far. >> i would start by cutting back, dialing back, reefing in, as i like to say, in sailor's terms, the mortgage backed security. i don't think we see the vam volume. that market is on its way. >> we've been very positive both on the economy and on markets this year. markets are important because of the aid we're getting from qe and from the fed. >> they have 180 million users. a lot more users than other sites and suddenly tumblr has

relevance. it's just a check and suddenly 880 many people have heard of yahoo!. you want to say money, $1.1 billion? you shop at the outlets. >> okay. >> we're done. >> done. >> no. >> do you think tesla will gear up and go? >> yeah. >> we're going to have no idea why you would want to come back here and sit with us. i mean, looks like you left it interesting. >> we don't get gymnasts through. we don't chase around oil ministers. we have a little fun. >> we've waited a long time to get it back up. we're pleased to have it up. it's important for us because we have a lot of new routes that we're going to be flying either existing route or new routes with this airplane. it's an economical airplane and airplane that customers just absolutely love.

>> good monday morning. we and by that i mean both of us, kelly and i, are live at post 9 at the new york stock exchange. let's check on the markets. dow struggling to get out of negative territory. although it is slowly working its way there. down about two points. s&p has broken into the green. nasdaq is up a couple of points as well. barnes and noble one of today's big gainers after an article over the weekend saying the stock is undervalue and set to pop. it's up more than 4 hrs today. red hat is down sharply after getting hit with a downgrade to market ber format bmo. analysts citing the deceleration and mixed field checks as reasons for that downgrade. let's get to the road map. yahoo! ceo marissa meyer making her biggest move yet buying tumblr and we'll talk to a share holder to get his reaction to the deal and ask him what he thinks of the ceo so far. former citi cfo sallie krawcheck will talk about 85 broads and weigh in on the

shareholder meeting tomorrow and what it could mean for jamie dimon. and markets are breaking record after record this year but is the performance sustainable? we'll hear from one expert who says the s&p will hit 2,000 within the next couple of years and investors should be more cautio cautious. yahoo! the company buying tumblr for $1.1 billion in cash, making it the largest acquisition of a social networking company in years. hi, john. >> kelly, yeah, volatile morn for yahoo! shares. already about 12 million have changed hands. two-thirds of the typical day's volume. up 2% in premarket, down a bit, now up again. big news, big tumblr buy. they have a business alliance to share, so i want too make that clear off the bat. we three big reasons why yahoo! would want tumblr, the data yahoo! will now have on young mobile users and what they will want yet. the bear case. one major issue, growth.

a few people have pointed out onli online, traffic peaked in november and went flat. the problem with those numbers, tumblr launched a major ios update last summer. the mobile app is popular. there's one on ipad as well. tumblr's core demographic is moving to mobile. web traffic, not app usage. given that meyer says they use it on an app and the users are very engaged it would not be wise to read too much into the numbers. real question for investors have to be, one, tung tumblr has the right growth trajectory and do you think marissa meyer knows how to harness that for the whole company's good sdm is this yahoo!'s youtube? that's the question. >> talk about youtube, i think morgan stanley put a $20 billion number on that business alone the other day, jon. if it can go that well, they're in the money. let me ask you this. in the valley, are there a bunch

of starrt-up entrepreneurs, cfo hoping to be the next david carp? >> absolutely. this is in a way a replay of instagr instagram. very clearly the people who have managed to attract a large and engaged user base, particular my on mobile, have really something going here. you've got to look at your twitters and more importantly the smaller start-ups that are targeting phones an irs pad s a. it's going to get more interesting over the coming months. >> looking at tumblr in two to four years out, is the idea to put yahoo!'s increasing advertising on tumblr or other strategic directions in they might take the company? >> i think one of the things thatt that yahoo! what's to do is engage the same kind of user on tumblr. i don't know whether marissa meyer has a specific game plan or here's a company that has

figured out ho to attract the people and get them interested. if we can get those mojo culturally and look at the data and find out what product design tricks they're use that might work, maybe we can spread that throughout yahoo! and remake the company that way. i wouldn't be surprised if she would make a similar acquisition in video. she's talked about six months in advanced. they're already sold out of their video inventory. >> at lot of people were betting on this happening before this. jon, thank you. i want to t get more insight. eric jackson is founder and managing partner of iron fire capital. yahoo!'s his largest position. owned it since 2011. cnbc and yahoo! have a business alliance to share and co-produce editorial content. eric, good morning to you. >> hi, carl. >> you were vocal over the weekend. at least on twitter, saying that this is sort of like an aol story, meaning you might have bought it off the lows thinking it was topee but there was still a lot more to go. >> yeah.

i think we're with yahoo! we're about where aol was back at 24 bucks post with the microsoft patent deal that they did. i think a lot of people then thought aol has had a great run from $10 but at $24 it looks kind of steep here. i think i've got to step awe way yet there was still a lot more upside to go. there were a lot more pieces of this story to play out. i think the same is true here with yahoo!. yahoo! was so depressed for so long trading around $14, $15. people got used to it to perennially being there and now there's been an 80% jump in shares people are excited. but we still have the alibaba deal to come this year. we have the tumblr story to play out the rest of the turn around. the quarter turnout. i think there's still a long way to go here. >> how do you get around the notion that yahoo! is really just a sum of the parts story, someone over the weekend called it the equivalent of a private equity firm in tech because everything is based on their holdings and those valuations.

it's not so much an execution story. at least hasn't been until now. >> well, there are three parts to the story. i think, obviously two of those three parts are investments. yahoo! japan, which has been on a tear this year, along with the rest of the japanese market. it's up almost 100%. and yahoo! owns 35% of that. so they're along for the ride. there's potentially some interesting things that yahoo! and yahoo! japan can do together going forward. alibaba and the ipo that's going to play out here. some people say it's going to be worth $60 billion when it ipos, some people say post-ipo it's going to be $100 billion. you've got ownership in that through yahoo!. i think the third part is the core. and that's part that really hasn't seen kind of any turn around as yet. i mean, there's a lot of excitement, there's a lot of hope with marissa and now with tumblr. >> right. >> we are still wait for that turn around to play out. >> eric, you know, jon mentioned a point that reminded me of a recent story where he's talking about to what you're saying about the strategic vision about yahoo! wanting to look at some

of these video sites. and if you recall a couple weeks ago, i think it was france blocking yahoo!'s potential acquisition of daily motion which was a big deal in france. a lot of people were upset about protectionism. what who now do you think is next and is this important for yahoo! to quickly pick someone up here? >> well, i totally agree with jon. i think it's a no brainer for yahoo! to go into video because there is a lot of premium video ad inventory that yahoo! can sell against that. it's too bad that the daily motion deal didn't work out. we still have rumors that yahoo! is sniffing around hulu. i think that would make stra tee yik sense. but certainly i would expect them to continue to invest in video. >> finally, eric. they already said tumblr is going to enhance revenue in their words. how high are its expectations going to get, about 2014, and where do you see the stock? >> well, i mean, i would say, hey, you know, youtube looked

expensive at $1.6 billion in 2005. this year youtube is going to do $4 billion in refer knews. i think almost a billion in operating income for google. a lot of people screamed that that deal didn't work out for a long time and it looks great today. i think tumblr is a special property. i think it will take years for it to play out. as an investor i would rather have a stake in that property right here. i think over the next year with buy backs, with the alibaba ipo and real conviction in the turn around of the core, i think the stock can go to high 30s, maybe even $40. >> wow. >> eric, thanks so much. we'll see what the presser brings or the media event brings tonight in new york. eric jackson, wire fire, thanks. now we've got news on the insider trading case. former kpm gerks executive is expected to enter his guilty plea any minute now in california. jamie wells has more on that. jane? >> kelly, let me clarify. brian shaw is the jeweller friend. he is not the kpmg executive.

he's due in court next week. brian shaw, the one who turned on london to become state's witness is in the federal courthouse behind me right now pleading guilty as we speak. we're going to show you video. it's a first look at him arriving, on the left there with his attorney, just arriving a few minutes ago in court. he's going to plea guilty to -- on illegal inside information, trading on it. allegedly received from london. we're going to show you the sort of smoking gun in this case, the fbi photo. that has london on the left in the photo accepting cash, allegedly. london was a senior partner overseeing t accounts for companies like herbalife and sketchers. brian shaw, the july weller friend. he says shaw will return all $1.27 million in ill-gotten gains he got in fraudulent trading but not quite yet because they're still an sec civil investigation. >> in combination with both the criminal sentencing and result in the sec case will be disclosing the profits that shaw

received. >> have you reached any sort of agreement with the s.e.c.? >> no, we're still in the process of reach that agreement. >> he has the $1.27 million available. he still has it? it's accessible? >> we anticipate by the time he needs to pay that money over, he will have that money to pay over. >> okay. now, scott london, the kpmg partner, will be in arraignment court here in los angeles next week. his attorney says he, too, will plea guilty. london faces potentially ten years. shaw in court today, five years. no deals have been cut with either man. the prosecutor told me that this morning. there's some debate over how much money brian shaw allegedly kicked back to his golfing buddy. shaw's attorney says the gifts in cash were worth $60,000 to $100,000. scott london's attorney says, no, it was anywhere from 35 to maybe 50 grand. carl? >> jane wells, thank you for that information joining us this morning. when we come back, former

cfo of citi e sallie krawcheck will join us live at post 9, talking about everything from the role of women in business and the jpmorgan shareholder meeting tomorrow. later, just who is david carp? from high school dropout to multimilli multimillion. one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

krawcheck is buying 85 broads. she's joining warren buffett

supporting women in business. she's here with us now. sallie krawcheck, the head of 85 broads. welcome. what does it mean? what sort of organization and what are you going to do with it? >> i think it's the preeminent professional women's organization out there. it's a network 30,000 strong. started as a goldman sachs alumni network, is now not only beyond goldman sachs but beyond financial services all over the world. the welcoomen come together investing in themselves. >> is there a time to rename it 85 broads? >> we're going to engage with the members and see where they want us to take the organization. >> but the idea is basically to take what started as almost social networking, an early player in that targeting women, looking to help them professionally. are you actually trying to make this now an investment tool, where women are investing in other women and what they're doing? >> why would say is janet hanson was well ahead of her time.

before facebook, before linkedin, the idea of welcoomen coming together to make themselves successful. the number one most cited unwritten rule of success is networking. particularly as women become more senior and there are fewer of them to have that time together, to ask the question, how do i get on a board, how do i get in the public service? what we're going to do is keep what the women have enjoyed, but we're going ask them about continuing something that's happening organically within the network which is then investing in each other. in fact, it was last week i turned on the "today" show one morning and there was an entrepreneur talking about gotten an investment from a woman in 85 broads through 85 broads. >> a lot of things seem to be dovetailing here. it's not just social, which is heavily use bid women but you've got sheryl sandberg, a lot more women running fortune 500 companies. you still think there is more runway there? >> there's no doubt about it. you know, we seem to have reached a moment, you know,

hillary clinton as secretary of state talking about bringing women into the political process. you've got sheryl sandberg, ann marie slaughter who is doing an 85 broads lunch tomorrow, as it turns out, warren buffett talking about investing in women. the bottom line is, when women do better, nothing bad happens. the political process moderates. companies with more diversity. the top is higher returns, better stockholder performance, lower risk, more client focus, venture capital firms run by women tend to have better performance but yet you say it's getting better. in fact, the numbers are still too small and the numbers of women reaching to tom ranks have stalled out. >> it helps organizations like 85 broads because they're too successful or they wouldn't need it. >> everyone needs networking and investments and putting capital behind these ideas. it's early in what could be a very, very long-term trend. >> let's talk about jamie dimon tomorrow, this meeting in tampa.

we've been covering the proposal, how it's tracking. i guess is the conventional wisdom that he will survive this vote? >> i would like to pose a reer to call question. what did bank reporters and analysts talk about before jpmorgan chairman ceo debate. >> sallie krawcheck? >> well, i don't know about that. but thank you. and what i'm hearing, which i don't have any particular insights, is that it's going to be close but come out with them keeping him. >> sallie, it's great have having you. come back often. >> thank you. >> sallie krawcheck. meantime, united taking the first dreamliner back to the sky this morning after the groundings earlier this year. one of the passenger on that flight will be the ceo of boeing and he joins our phil lebeau right now. hi, phil. >> here we go. hi, carl. you know, it's not every day that the ceo of boeing goes on a

first flight with a customer but today you're doing it with united and the relaunch of the 787. what does this flight say? how important is this for bowing? >> well, i think return to service of the fleet. i mean, we've now got 45 of the 50 planes in the fleet retrofit with a new battery system. united will be the fifth airline to re-enter service. the full promise of the 787 remains intact through all of this. and i'm excited to be on the airplane. just like anybody else. >> as you've seen these go back into service, have you heard of any problems from any of the airlines, whether it's ethiopian or the other airlines as they're starting to fly the dreamliner again? >> i think the battery system so far has been squawk free. i think we have normal teething problems that are consistent with new airplanes. but nothing consisting -- nothing that is noteworthy or something they would call out as special in any way. >> you've ramped up your production to seven a month and

you said you're going to deliver at least 60 dreamliners this year. there's already some whispers on wall street that perhaps you might exceed 60. is that a possibility this year? >> well, listen, we'll stick with the guidance we've given people, the production system is working well. we kept it going, as you know, phil, throughout the battery fix, technology fix, and seven a month, we're planning on being ten a month in our factories at the end of the year. it's nice to have analysts conjure up upside as they look at our company. we love it. >> jim mcnerney joining us on the relaunch of 787 dreamliner. guys, we're going to be on flight and in route to chicago. we'll talk to you later on today in "closing bell" when we land. >> i assume you will sit together, phil. make sure you grab the window. talk to you soon. phil lebeau joining us. when we come back, as gas prices spike 11 cents in just two weeks, we'll find out why high gas prices hurt the economy more than lowered gas prices

help and what that all means for consumer spending. will the markets continue their record breaking run? [ engine revving ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the c-class is no exception. it's a mercedes-benz, through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. through mercedes-benz with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile.

see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breast-feeding, should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body,

enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. in a clinical study, over 80% of treated men had their t levels restored to normal. talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel 1.62%.

♪ kelly kelly kelly kelly kelly ♪ ♪ kelly kelly >> did you record that? >> how could you not do that? woody harrelson on "cheers," you know, the song "kelly." did you hear about it every day in high school? >> it wasn't until i was older because "cheers" wasn't on and no one was really watching it when i was growing up. when i got older i heard it all the time. i was like, what is that from? >> that says a lot about the age difference here. i remember when it was on live at night on nbc flim prooprime . just another way of us welcoming you. >> i'm excited. we're just minutes away from the european close. there's no place i would rather be.

>> i know. something about which you know a lot. in the meantime, new data today about consumers and gas prices. high gas prices hurt the economy a lot more than lower gas prices help it. sharon epperson is at the nymex and has detail on that. >> gas prices have climbed nationally on average in the past month. but we are seeing lower gas prices than we had a year ago. in fact, we're down about 14 cents from the peak that we saw earlier this year back in february. but what we're seeing is higher gas prices typically force americans to cut back on spending. lower gas prices aren't leading to much more spending. that's according to the survey out today. despite the slide that we've seen in gas prices in the first half of 2013, about 80% of americans have not increased their discretionary spending, according to the bank rate survey. last spring when gas prices were about five cents higher on average, more than half of those surveyed said they decreased their non-essential spending. so now that prices are lower,

they haven't ramped back up. >> household budgets are still very tight. and so even though we've seen a drop in gasoline prices here in 2013, it's not something that's translated into additional consumer spending. only about one in six americans has actually increased their spending due to the decline in gasoline prices. >> now, the payroll tax increase that we've seen this year has hit consumers, especially those living paycheck to paycheck, especially hard. and that is having an impact, about a third of consumers say that they actually feel less con for theable with their savings as well than they did a year ago. what we're seeing in terms of how much consumers are spending on gasoline, right now it's about $50 million a day less than they were spending a year ago. so what's going on here? well, tom closa,chief oil analyst at gas buddy is people are driving less and taking shorter trips. we're seeing a society that is becoming less mobile as people are fearful of overspending.

>> sharon, i wanted to ask you because often with gas prices with we see this effect where people are so sensitive to every increase and they cut back, you know, aggressively. when they fall they don't say they're doing this, but we know, we know there is an offset. coming into the year people. >> reporter: saying, look, yes, we're going to have the sequester hit but offset that should be lower gas prices. we've kind of seen that borne out. even if consumers are not saying they're spending more, sentiment and confidence is higher. frankly, the savings are going somewhere. >> it's not going to those spending more in terms of discretionary spending. they may be spending more because certain things have gone up in their household budgets whether they're spending more on household expenses or fixed expenses. in terms of discretionary spending, what this bank rate survey is showing is they are not spending that money because they are fearful of what may be coming next. we may start to see further climb in gas prices, particularly those living in the midwest. >> definiafinitely will -- if w

continue to move lower, you may finally expect that po work. it's an interesting point. sharon, thank very much for the details on that. probably the thing consumers are most sensitive to in the u.s. we will have the close and details of impact on markets here when we come back. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves...

futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. what makes a sleep number store different? what makes a sleep number you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. if you want a soft bed you can lie on one of those." we provide the exact individualization that your body needs. the sleep number memorial day sale.

not just ordinary beds on sale, but the bed that can change your life on sale. the sleep number bed. this is your body there. you can see a little more pressure in the hips. take it up one notch. oh gosh, yes. you get that moment where you go, "oh yeah" ... oh, yeah! ... and it's perfect. they had no idea that when they came to a sleep number store, we were going to diagnose their problems and help them sleep better. and right now save on the closeout of our classic special edition bed set. just $1299-a savings of $600-and discover the only memory foam bed with dual air adjustability. once you experience it, there's no going back. wow. don't invest in a mattress until you find your sleep number setting. sale ends june 2nd. only at the sleep number store. sleep number. comfort individualized the european markets are closing now. >> yes, we're couldn'ting down to the close across the uk and continental europe.

simon hobbs is here with the details. >> a lot of europe isn't trading today. it's pentecost for manycountrie. across the nordic regions, central europe, switzerland actually didn't trade. in broad terms, hanging in to where we were after four weeks of consecutive gains. it's interesting the cyclicals have come back or the automotives have come back. deutsche bank, the likes of persia and volkswagen and porsche are doing well, as you can see. the irish give reequivalent to southwest came through with earnings. pur pushed the stock up to high. check out dhrks is ryan air over the last five years against southwest. almost parabolic towards the end of that. it's done much better than the originator, as you like. the other group that has moved today in europe are the mining stocks, the precious metals

stocks. you've seen what's happened to gold and silver and all the rest of us. some not as far down as it were. it's going to be a busy week in europe this week. not just with the data. ben bernanke speaking here wednesday after the two-day meeting. then mario draghi will speak. it was ten months ago that in london he first said he would do whatever he could do to save -- >> last july. >> on the european summit, i know you love the european summit. >> there are so many of them. >> i know. constantly. but you guys do it with the red carpet and velvet ropes. you do eight lot better. >> i think that undermines the process. when you interview all the ministers going into the meeting, it undermines them to hammer in the terms there. >> while the communiques are so boring? >> exactly. >> while you were coming down the stairs, simon, ftse, highest intraday since 2000.

>> yeah. >> close and a nice finish there. >> we will also have the -- a lot of this is about qe. we will have the bank of england with their report on wednesday as well. that may open the way to more qe. i doubt it because they will want to see what carney does. >> that's right. >> thanks, simon. simon hobbs. let's get to bob pisani and see what's moving here at the big poured. >> once again, turn around at 10:00. every day we start on the downside and move into positive territory around 10:00, 10:15 or so. major sectors today, again, it's that slight risk on trade. energy, financial, industrials, technology. all doing pretty well today. that's been the story for the last couple of weeks. in particularly, energy stocks are doing well. natural gas is up. look at the xop, this is essentially the etf for the natural gas industry. that's been at essentially a new high on friday. the obama administration approved a texas export facility and seeing stocks like chevron who has an investor -- one of

the investors at that facility sitting at a 52-week high. housing, downside today. it's going to be important this week. the main earnings companies are going to be lowe's and home depot. and a lot of people are interested in what they have to say because that play has been very long in the tooth. take a look at lowe's, for example, year to date. notable out performer on the s&p 500 as has home depope. today oppenheimer came out and downloaded lowe's. there's home depot and lowe's, s&p 500. today hopp oppenheimer downgrad lowe's. how much more upside given the prices of the stocks? on the downside today, i called around, i don't see anything particularly going on. our parent company comcast has been down for the last couple of days. again, i don't hear any specific news around any of these stocks. finally, guys, the ipo of the year so far is continuing to scream today.

tableau software. price talk on the this company, $23 to $26 four or five days prior to that. they priced it at $31. it opened at $47. it closed north of $50. and today you see up another 10%. guys, i am calling this the first big data ipo. it's certainly living up to the hype. >> there might be more to follow. bob, thanks. let's get more insight on this market rally with john nanly, chief equity strategist with wells fargo funds management. he thinks the s&p can trade to the low 1700s this year. he says the key target is still 2,000 in 2014. sbro doesing alex young, s&p capital iq, more cautious short term with the year in price target. john, look, as we keep taking out levels here, nasdaq, seeing new highs, russells, transports. for 1700 it's not a question of the but when. >> it's always a question of

the. i've got to say if you look at the things that make the market go up or down, it's not as cheap as it was. the earnings are still coming throu through. the problems that we have around the world probably won't go completely sour in the next year or so. >> which is the formula for you? is this based on earnings plus a multiple? >> it's a good question top to get to a big target, huge target, aggressive. very, very light parameters. you only have to have earnings grow 7% or so the next couple of years. you can be close to $25 in the s&p. put a 16 multiple, sort of an average multiple the 45st 30, 35 years. you're at 2,000. you still have mild parameters to get to. aggressive price target. >> in that case, hearing that argument, why do you think 2,000 isn't necessarily acheievablchi? >> john said it was a 2015 target. i thought it was a target for

2014. i'm not going to talk today about potential upside that might materialize in two years. i mean, if we look at what's going on right now we've got 82% of nice listed stocks trading above their 200 moving day average. 20 years average for that statistic is 54%. today it's 82. the only time we've seen that percentage get into the low 90s was in 2003 and 2008 when stocks were enjoying really nice out sized gains after the meltdowns of 2002 and 2008. from a fundamental perspective, you know, i think crieses have gotten a little ahead of the fundamentals. 15 times this year's earnings. this year's earnings are going to grow 6% to 7%. the street has 10% earnings growth modeled by next year. at the end of the year if they're numbers are realistic, john is right, the market can trade at a higher multiple and that gets the market higher. i think over the summer invisers are probably going to want to see at least another quarter of good earnings and a few more

decent payroll reports before they start pricing in double earnings growth in calendar '14. >> if they don't get those things and they decide to exit equities in any way, where do you think they go? what is the alternative in the back half of this year? >> i think it's hard to make a very negative case for stocks. our target is 1670 which is basically where we are. maybe we trade sideways. bring up a good point. there are not a lot of other appealing areas other than, you know, high yield which the already quite crowded. so i'm not necessarily making a bear argument. i just think that the market can't continue to go up, you know, 40 basis points every day which is what it's been averaging for the last couple of months. >> and not just that, john, looking across at some of the market signals, sometimes leading indicators there, whether it's metals or lumber which we chatted about, how do we rectify all of that? how do you explain on the one hand that underperformance, you know, and some of the demand we've seen in other commodity currencies and that sort of

thing with the stronger that you're talking about for equities? >> still a lot of money on the outside trying to get in. i think carl had a good point. there's a not a lot of other places to go, individuals being forced into stocks. it's a year-end 2014 target based on 2015 earnings. i think it can keep going up here. that's a classic bull market activity. it's exactly refers to what happened in 2008. the idea that it was down too much in 2008 was poisonous. i think the idea that it's up too much in 2013 is not quite as bad but it's still wrong. i think it can keep on going higher while the factors that made it go higher is still in place and i haven't seen them change yet. >> the fed probably most important one. gentlemen, leave it there. thanks very much. >> thank you. when we come back, how the tumblr ceo went from high school dropout to the darling of the tech world. robert frank just talked to his father and will tell us what he had to say after this break. dao when he retires -- keep working, but for himself.

so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. [ male announcer ] i've seen incredible things. otherworldly things.

but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ available out there. i knew devry university would give me the skills that i needed to make one of those tech jobs mine. we teach cutting-edge engineering technology, computer information systems, networking and communications management -- the things that our students need to know in the world today. our country needs more college grads to help fill all the open technology jobs. to help meet that need, here at devry university, we're offering $4 million dollars in tech scholarships for qualified new students. learn more at devry.edu. for qualified new students. are you still sleeping? just wanted to check and make sure that we were on schedule.

the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. ♪ coming up next on the half, commodities have been left behind in this rally but is a turn around on the horizon? the sector's next move and how to play it. market legend jack bogle on whether this is 1999 all over again and a big week ahead on retail earnings. the names you need to buy right

now. now back to carl and kelly. see you in 15 minutes. news of the morning of course is yahoo! buying tumblr for $1.1 billion. tumblr ceo david carp assuring users the acquisition will not change the user experience. julia bor sten sfopoke with himn 011. >> if we put one crappy ad on our home page, tomorrow we would be wildly profitable. that was, you know, definitely, you know, backup plan z. that's nothing we would never want to do and something we think would compromise the integrity of our product. >> interesting. before this weekend, chances are you didn't know much about david karp but now he is practically a household name, at least this these parts. robert frank has more on karp's journey to his success and dad's per expect. >> i've i just spoke to david's father michael karp, very proud

dad today. he said david is, quote, thrilled. he said, quote, he's extremely passionate about what he does. es r he's going to keep on doing what he's been doing. the deal will net david somewhere around $200 million and he's only 26. but his dad says it's not about the money, quote, he's never cared about money or talked about it. his dad said, quote, it's about doing what he loves to do and about creativity. too t. deal still marks a very big moment for a kid who dropped out of high school. david grew up in new york's upper west side. we went to the calhoun school where his mom was a science teacher. for high school he went to bronx science but dropped out after a year to home-school. david's dad said he'sn't happy at school and had tutors give him lessons but computers were always david's first love. michael got him an apple computer long before the internet and david was taking computer courses in high school and japanese language courses. david's idol growing up was not a sports star or a rock star,

but steve jobs. michael telling us that david used to watch every online video speech that steve jobs would give. quote, jobs was a very strong influence. now, michael told me that david started tumblr while he was living at his mom's house in 2007 but he also had an office lent to him by a family friend. his dad telling me today that he never worried about david's lack of a college degree or a real job. he said, we just always encouraged him to do what he loved to do. and david always found a way to make it work. that's great, i think, parenting advice to any kind of aspiring entrepreneur. >> what a roller coaster ride for your parents. right? your kid drops out of high school and then worth all of this money. challenges for karp as he is flush with all of this new cash in a single day. >> i think it's keeping his feet on the ground and staying focused on the business. it's easy to say, he's a down to earth guy. dad telling us it's never been about the money, never cared about the money.

it's easy to say when you don't have that much money. it's going to be a bit of a distraction and for all of the people who worked there and also probably had ek cutity. for him and for the staff, i think the key here is to ignore the money, keep on doing what tear doing. that's going to be tough. >> the old phrase mo money, m oerks problems. that's true. >> thank you, guys. don't forget to tweet us. remember, it is an ask an anchor edition today. send your questions to the newest member of the "squawk on the street" team, one kelly evans. >> i love the "jeopardy" music. >> that's something you know. >> the "cheers," "kelly kelly" you don't know. we've got some answers and we will answer them all when we come back. we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket.

i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

there's the animation and here's the man with some news today. >> want to follow up on things we were mentioning in the last hour of "squawk on the street." there's a higher bid for elan. in terms of this hostile bid for the company. elan is striking the royalty deals of late. important to point out, from last week, they don't have a fiduciary out. they have to vote the deal down if in fact the board wanted to consider and or recommend going to royal pharma. not that it's going to. shares moving higher. we told you to expect that might

happen. on clear wire, a quick follow-up, the meeting is expected tomorrow as i said but it would getted vote down. don't forget, of course, the possibility of an adjournment of that meeting. that happens when the vote is not in hand and i did not bring that up earlier so as we head in to tomorrow on that, it could simply be adjourned, maybe after the sprint shareholder meeting which is june 12th. >> you think this is enough, by the way, for elan to be happier? >> i think they're trying to become royalty pharma as opposed to be acquired. >> same thing of activist this morning, right? >> that's correct. >> great stuff. thank you. >> thanks. brian shaw did plead guilty to conspireing to commit security fraud. he received tips.

sentencing is set for september 16th. we'll keep an eye on that. when we come back, kelly evans answers your twitter questions. do not go away. both tylenol and bayer back & body are proven to be effective pain relievers tylenol works by blocking pain signals to your brain bayer back & body's dual action formula includes aspirin, which blocks pain at the site. try the power of bayer back & body.

with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer.

you just need the right professional to help you take charge. ♪

i'm jane wells outside the federal courthouse in los angeles. we are waiting for brian shaw to come out of the courthouse. he has just pled guilty to insider trading. when the judge asked him, how do you plead? he said, guilty, your honor. he is inside with his attorney right now going through processing so that they can be getting through the sentencing process and what happens now is we hope he makes a statement to us. the most interesting thing of what happened inside is the judge actually asked, is there no restitution of this case considering he made $1.27 million? the shareholders would be almost impossible to find. the shareholders harmed. the defense attorney said he'll completely discourse the complete $1.27 million to the s.e.c. in a companion case when the judge said, so that's where

it's going? he said, yes, your honor. brian shaw will leave court shortly and we hope for the first time to get his statement on camera. back to you. >> thank you very much for that. time to get to know a anchor. you have been tweeting us lots of questions for kelly evans on her first day on "squawk on the street." >> i already answered some. >> you did. but there are more. for instance, number one, what is your favorite color? london grey or new york grey? welcome to post 9. >> thank you, sir. neither. there's no -- who likes the grey? >> fundamentals or technicals or a blend of both? >> fundamentals all the way, all the way, always. >> i knew the answer to that one. london clubs or new york clubs? >> neither. dodging that one, as well. >> more up early. got to be an early riser. >> i will say, though, that the sheer number of london clubs, if i were an entremendous prix neuroright now, i would open clubs in london.

they're a cash machine. >> simon was a bouncer at one a long time ago. >> no he wasn't. >> he'll kill me for saying that. does kelly need help with the purchase of a new york home? this is the famed realtor to the stars. >> thank you very much. i need more capital, capital infusion first. can i offer myself as a corporate bond offering? >> the most shocking thing you've learned about "squawk on the street"? >> can i answer it in a couple of months? >> you are right. you have two, three hours. >> i'm impressed with the technologic technological savvy. >> new age. >> i have to up my game. >> drake or kanye. >> oh, come on. >> some of these are unfair. >> kanye and jay-z, i would kanye. drake and anyone else, drake. it's a tough one. >> especially after kanye played the google event. >> you know what, though?

because of that, drake. there we go. the corporate route. rubs me the wrong way. >> i'm sure it was worth it. we continue to watch the markets. you watch europe close. you start the day in the red mildly. end up in the green. >> yep. >> today's no different as we continue to watch stocks, yahoo! a big mover, too. >> you talk to people saying you look for the direction. yes, we know we have been going lower volume on up days and the fact there's been so little news flow and participation and drifting higher tells you the bias still out there. now granted, up about .2%. >> some traders said it's wednesday getting the fed minutes for real potential tape bombs. >> how about the minutes? new statement practically. >> absolutely. >> seen major, major moves and pricing set for the month for six-week's time. >> we complain about fresh data. it's six months old and moves the market. a live shot of the airport in houston, texas. this is the dreamliner taking

the first flight since the groundings earlier in the year. phil lebeau on the flight. we talked to him earlier in the hour. this is houston to chicago flight. you might remember, boeing did take a $11 million charge in the quarter for essentially the cost of the dreamliner grounding but the stock, kelly, boeing is not only the best performing dow component of the year, it is up almost 32% since january 1st. amazing run. >> every time of the news flow, i remember watching this saying take a look at boeing shares and response is they're shrugging it off or they're up and the hardest hit are components, suppliers. the japanese company that was involved with the batteries, those are the names to watch, as well. if the flight means that boeing is getting the planes in the air. >> yeah. phil lebeau asked is boeing going to make you whole? he said that they're a great

business partner and been damaged and expect resolution of the cost of the plane on the ground so long. great having you here. >> great to be here. >> look forward to a great run. >> i'll be back tomorrow. >> let's get you back to headquarters. scott and "the halftime." all right, guys. thanks so much. welcome. we have four hours to go until the close on this monday. right there is where we currently stand on the street. the rally resumed here. we are up 28 on the dow. s&p and nasdaq positive, as well. shop until you drop. with a huge week ahead, which stocks should be in your shopping bag? jamie's judgment day. what happens to the stock if the jp morgan boss loses his chairman title tomorrow? but first, the top story. stocks may be at record high but one group is missing in action. commodities. the worst performing asset class