than 500 points. that's 3.7% drop for the benchmark index. among the reasons, you had friday's late sell-off on wall street and renewed worries about a slowdown in china. the nikkei snapped a nine-month winning streak in may. that had been its best run since 2006. in other asian markets today, you can see that the south korean kospi fell below the 2,000 mark. in australia, stocks ended at a ten-week low. the hang seng was down by about 0.5%. shanghai composite barely budged. and in europe in the early trading this morning, you can see right now that things are weaker, but these are modest declines, relatively speaking. the biggest decline is the dax. down by 0.7%. the ftse down by 0.4%. the u.s. equity futures here after the big declines late in the day on friday, dow is higher by about 55 points right now. is s&p futures are up about 4 points. here is a quick recap of the main market story. we had told you that those gains were substantial at this time on

friday morning. we did see a big drop, 209 points on friday. that was the biggest loss since april 15th. still, if you're looking at the month, the s&p and the nasdaq have had now seven straight months of gains. that dates back to november. and that's the best winning streak since 2009. of course, that rough into may did chuck some of the advance that's we had seen. the s&p declining on five of the last seven trading days. the dow at this point has turned in six straight months of gains. and volatility with all these moves up and down, it's been creeping back up over the last month, gaining almost 17% in may. to see the vision right now is just over 16. >> we have late trade, that sell off. hindenburg omen. >> i saw that. >> said to prosecute tend a market -- i'd say the "f" word before i'd say the "c" word, i think. >> what? >> stock market beep.

that is what is said to portend. oh, the humanity when it burned. the criteria are calculated using some "wall street journal" figures and it's the daily number of 52-week new highes and new lows are both greater than or equal to 2.8%. the nyse index is greater in value than it was 50 trading days ago. the offlighter is negative on the same day and -- i don't know. there's a lot of different things, bites rare and it has portend. but i think it's probably like predicted is 11 out of the last two market crashes, right? >> right. >> that's usually the way these things work. but that hit and then i was -- >> there were some weird things that happened over the last week and a half. definitely. and mentioned it looks a little weird. investors got a taste of what it feels like when rates start going up with the dividend

stocks. you would think that even if rates go up to 2% on the ten-year, you would not think that's the time to sell all your dividends. and you wonder about housing, if mortgage rates continue to go up. where is the ten-year today? and then japan, which i said we have to watch that. i said let's watch japan, how it opened yesterday. and it is down. but we seem to not have been -- >> it's in the aftermarket in japan that's been really dictating the direction we've gone over the last week or so. because japanese stocks will end one way. the aftermarket tends to flip the other direction and that's what's been driving our openings here. >> but we don't care that much yet. it hasn't really -- >> did you see that story on the front page? >> it hasn't infected us. >> the story on the front page of the journal is about how the u.s. is becoming a risk averse culture, which is very different than what we've grown up with all along. they're now saying if you look, even in good times, companies

are much less willing to hire in advance. people are less willing to put money into new ventures and people are less willing to change jobs than they have been in the past. it's all kind of this fear that has crept in. >> that's the way japan did for a while. we had brad anderson from best buy talking about how hard it is to start a new business right now. and then, you know, we have a lot of obama care stuff that's going to hit in 2014. did you see there's an article yesterday on how much a colonoscopy costs in this country or maybe it it was day before. >> no. >> it's like $7,000 is what they're trying to bill you. and when it finally comes down to it, we pay maybe $3,500. but that's versus a couple hundred dollars in most countries. and mris, all these figures of what we pay and obama care did nothing to -- >> to help that. >> yeah. so there's a lot to -- i don't know. it's june now. i don't know whether the sell in may means sell at the beginning of may or by tend of may.

>> some people said the 31st was the see, sell in may and go away. >> nymex crude hit its lowest level in a month this morning. brent has now posted a fourth straight month of losses. we're still above 90 though in wti. for u.s. treasuries just alluded to the ten-year, which was up and had a lot of people sort of -- you know, it's 2%. 2.16%. >> but it's the direction. it's the direction and the speed, right. >> and the dollar gained 3% against the yen in may. and that was -- the dollar's eighth straight monthly gains against the japanese currency. and the last time the dollar experienced an eight-month winning streak against the yen was from may 1995 to january 1982. that was a great time for the stock market. there you can see this morning, the euro back to 1.30 and gold closed lower in may, its seventh monthly loss out of the last eight, but just below 1400, which would have been shocking to someone a year ago, maybe,

but we're used to it being down in the 1300 he is recently. >> joe was just talking about that number on friday. we're going to have to wait until friday for the real headline number which is the may jobs report. but we have plenty to keep our attention until then. today, manufacturing pmi, ism manufacturing, construction spending, and auto sales all hit the tape. tomorrow, we'll be getting international trade. on wednesday, it's adp as we gear up for that friday jobs report. we also get productivity and costs and ism nonmanufacturing. factory orders and the fed's beige book on thursday as always we get the weekly jobless claims. friday, this is the big number. the may nonfarm payroll res expected to rise by 165,000, although i have seen a lot of estimates that seemed quite a bit higher than that. the unemployment rate is expected to remain at 7.5%. also in global news, average home prices in china's 100 biggest cities rose for the 12th straight month in may, but the pace of increase actually slowed. this could be a sign that the

government stepped to try and cool the property market may be having an effect. and the real news out of china today, some new signs of a slowdown in china's factory sector, the hsbc china pmi fell in may to 49.2. that is below 50 and that is that key level people are always watching. it also happens to be the lowest level since october 2012. but, again, falling below 50 from the activity the previous month. and the weird thing is, we have a guest coming on at 640 to talk about the numbers. those are the hsbc numbers. the official numbers from beijing, their pmi numbers are different. they're still well above. they dropped slightly for the month, but still well above 50. i think 5 3 something. >> i have trouble with our pmi numbers. now we have to watch. >> two sets. >> in europe, ecb president mario draghi says the eurozone economy is on track for in his words a gradual recovery later this year. he points to the ecb's loose monetary policy also demand from

abroad. and turkey's prime minister after a weekend of fierce anti-government protests and a third night of violent clashes. last night, a demonstrator tried to use a piece of construction equipment to break through police lines near the office of the prime minister who has rejected accusations that he's a dictator. he's dismissed the protesters as part of an extremist french in his words. there were clashes outside the u.s. embassy in the capital and the white house has called on all parties involved to calm the situation and called on security forces to exercise restraint. in time for the global markets report, ross westgate is standing by in london. and i talked to you about one of your treasurers on 60 minutes last night. maggie smith from abby. knew some good english terminology. like she says that she's -- some director was spiky and she can

be spiky. and i was wonder, is that something you would say? it it's like prickly. >> prickly, yeah. >> it is? >> yeah. >> so you've heard of that before? >> yeah. >> her best quote -- she's brilliant and she is spiky, a great game and actress. but one thing that got me, becky and ross, she's talking about getting old and what it's like and she says it's awful. she's 78 but she said noll court, and i don't mean to name drop, but she said it's like when you get old, it's like you have breakfast every half hour because time moves so quickly. >> moves so fast? >> and it's happening to me and when i wake up in the morning, i feel like bill murray because it's, oh, my god, it's 4:00 a.m. and i just had done it. it seems like i just did it a half hour ago. >> i'm with the on the rapid ascension of time.

>> but you don't know yet. you're 35 years old. >> 33. >> you don't know. yeah, 33. ross, you don't really know, either. but the week res now like days. >> no, i hear you. time is rap idealy -- >> you see, when you're 78 and the weeks are like days, you know what that means. it means, you know, in total darkness. >> but time flies when you're having fun. that's the good news. >> that's right. ross, with that in mind, now you've got red, red behind you. >> we have. you've got to treasure every moment, joe. even if there's red behind you. >> especially with you. especially with you. >> that's very sweet. i'll treasure this time with you, too. 7 to 2 decliners outpacing advancers. but we actually are at the best levels of the day for the dow jones stoxx 600. we had percent losses earlier on for many european bourses and following that 3% fall in the nikkei. the nikkei some 2,000 points off the high we had aspending requi. just to recap, 0.75 loert for

the xetra dax and the ftse mib. we had better news today in terms of the p mi. a breakdown of the sectors, only two retail and basic resources that are up. the weakest, telecoms, insurance, utilities, autos, we'll take a look at this seconder as u.s. auto numbers coming out a little later. but there was better data today. first of all in the eurozone, still in contractionary territory for manufacturing pmis. but came in better than expected. 48.3. it was expected around 47.8. this was the flash number. ticked higher in spain, italy and germany and france than we expected. italy, though, still pointing out, it was 22 months of contraction. italian yields are high today. back up to 4.22%. a couple of weeks ago, we were down yielding 3.9%. spanish yields higher, 4.5%. gilt yields are higher today, back over 2%.

2.048%. another bit of data out of britain was stronger than expected, the manufacturing pmis for the uk coming in at 5 1.3. they were expected around the 52 mark. good news on both sides, output was higher than expected, domestic demand stronger and input prices also coming down, so getting a benefit from inflation, as well. and could decide the ecb meeting this week and the employment report. we've got mervyn king's last meeting at the bank of england. and the previous three or four meetings, he has voted for qe. one wonders whether he will in the next meeting when he has kickedly been outvoeed. we had some indication on the bank funding for lending scheme which suggested that the net impact so far had been fairly flat. paul fisher from the mpc said that was to be expected. of course, they are ramping up that scheme, as well. that's where we stand right now in europe ahead after the u.s. open a little later. back to you guys. >> all right.

ross, thank you. >> see you, beck. >> see you soon. >> i'm treasuring that. that moment? holding on to every second that we get to spend. >> treasurer. japan airlines said it halted a scheduled 787 dreamliner flight yesterday after engineers detected a faultily pressure sensor. dreamliners had been grounded for more than three months after batteries overheated. boeing won approval for a revamped battery system that encases the lithium ion cells in a box. apple goes to trial today over allegations that it conspired with publishers to raise the price of ebooks. apple will be facing off against the u.s. justice department. the justice department filed its case against appear sxl five of the biggest largest book publishers back in 2012. the five publishiers agreed to pay a collective $164 million to benefit consumers.

so apple will have to go to trial alone. makes you wonder who the complainer was in this whole thing. was it the book seller that was not involved in this whole thing? >> and so innocent that -- if i say the "c" word, i don't even -- some people immediately think of something -- >> i didn't know what you were talking about. you said the "f" word or the "c" word. >> the stock market c -- >> but when you say something like that -- >> i don't say that word. >> i know you don't. >> what are these other people talking about, becky? they're immature, number one, and, you know -- >> and they know you too well, in two. >> and they're profane. that's right. coming up, tom lee, his take on whether you're supposed to sell in may and go away. first, as we head to break, fed chairman ben bernanke giving a commencement speech in princeton this weekend and joking about

his own future. >> i wrote recently to inquire about the status of my leave at the university. and the letter i got back began, regrettably, princeton receives many more qualified applicants for faculty positions. than we can accommodate. it's monday. 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,

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welcome back. the nikkei selling off overnight. we saw a drop at 3.7%.

however, it is not having an impact here in the united states. our futures per the equity markets are looking pretty strong. right now, those dow futures up by 43 points. s&p futures are up by 3 points. this is coming after a big decline for the dow on friday late in the session. let's get the national forecast from the weather channel's eric fisher this morning. eric, good morning. >> good morning. hopefully everyone had a nice weekend here. off to a wet start around new york city, but it's not searing hot outside, so that's a nice change of pace for us. 70 degrees, muggy. showers and storms are going to persist along the east coast today. anywhere from maine down to north carolina, south carolina. we'll see showers and thunderstorms, likely not a lot of severe weather and the cool and dry stuff is just off to the west. across western new york and p.a. today, we will be looking at some airport delays, certainly a wet i-95 corridor throughout today. then we get into the comfortable stuff. so all of the temperatures are cooler today. still, a lot of humid. tomorrow it's sunshine, temperatures in the 70s, beautiful, perfect june weather. 80 in d.c. tomorrow and 74 in

new york. 72 into boston. is southern end of this front brings showers and storms to the southeast. especially north carolina, south carolina and down into florida. this is where we'll see more storms firing this up afternoon, more heavier rain tomorrow into florida. florida is the play state when the comes to rain, every day featuring showers and storms and maybe even an organized tropical system friday into saturday. that's something we're watching. the next storm system in terms of severe weather, it is spinning here in montana. that's heading out into the plains today. the next chance for organized tornados might be tuesday. we have a 4 out of 10 in our tor: con. but they do not need any stormy weather. storms on tuesday heading towards chicago and milwaukee and reaching over towards detroit and st. louis as we head into the day on wednesday. but the good news, guys, this week's severe does not look nearly as organized or impactful as the last two weeks we've been watching. >> yeah, eric, may is the month

for that, i guess. i was read background that. 200 this year, which is below the average. but there were some big ones versus 250. now we're going to focus on -- it's hurricane season and there's something that -- supposedly there's something going on down in the caribbean that could start this week. something swirling around. >> yeah. you know, this time last year we had two named storms. it can happen early. this week's storms, i wouldn't run to the stores and grat grab the bread right now. it would be andrea if it gets a name. >> andrea if it gets -- from "walking dead" probably. >> i'll be honest, it's horrible, but i have not seen the "walking dead." >> there's two kind of people in this world. >> i know. >> people that watch the grammys and people that watch "the walking dead." >> i'm not on the grammy side, let's be clear. >> you're watching the jacket today. he's wearing the reynolds wolf

jack jacket. >> i wanted to class it up a bit, but not all the way. i don't have the pocket. >> you do class it up. so does wolf, reynolds. thank you. see you later. we were playing "sharp dressed man" for him. >> it is. you know it's reynolds wolf. >> is it blitzer wolf or wolf blitzer? >> a good, strong name. >> wolf? there's some stuff swirling around wolf. did you see it over the weekend, "the daily news?" >> quizzing each other. >> no, no, "the daily news" had it. he's old. one of the guys that hasn't -- you know zucker, has a lot of new people and -- i don't know. they denied it, denying it vehemently, that he's fine. i don't know. we'll see. despite ending the session lower on friday -- you have an

infant. >> yes. you have little kids, too. >> yeah, but i've still got a lot of -- >> i was going through twitter sphere this weekend. >> you learn a lot there, too. >> you learn a lot and i read a lot of stuff online. but we were away from home so i didn't have the actual fg physical papers and you miss out because you don't get everything. it's still hard without the physical paper to make sure you don't miss anything. >> i think i saw the wolf blitzer thing on twitter. >> did you? >> yeah, i think so i did. joining us now, thomas lee in denver. why in denver? >> visiting clients. visiting clients, already. tom, any prep addition at all given the last two weeks? and maybe your near term feelings about staying bullish. >> i mean, there is a lot for people to think about because, you know, we are looking at rising rates. and i think there's been a lot of turbulence in global markets.

but the underlining bullish story is still really intact. i think there's a story of wealth effect helping the global consumer, particularly in the u.s. u.s. housing continues to be really strong. and our meetings and conversations with investors, they're still underweight cyclical stocks. so i think that the story of markets being driven by cyclicals is intact. >> it is. what do you make of the dividend stocks being a little weak? these are all just at the margin, some of what we're seeing. and i -- even a pullback of -- even 5% in your view, you barely noticed that. that is what we're talking about. and at any time, i guess, you think that that is possible, it doesn't mean we're not going to end up at 1750 on the s&p. >> that's right. you know, in some ways, you know, if you think about earlier this year, i mean, the outperformance of dividend stocks over cyclicals was extreme. and b with in fact, the valuation premium was almost a

45-year high. so their underperformance is really a bit of a mean diversion. i think it is overdue. but again, i think one of the more important stories over the next five years is if we're in a regime shift of ridesing rates and the u.s. economy is strengthening, everyone is going to focus on cyclical stocks growth. i think this may be the start of the shift. >> that's really key. i mean, the beginning of -- and, tom, you have been really positive for a long time, but the beginning of the shift, that's important. >> that's right. i mean, i think that's what everyone needs to think about over the summer is, you know, man it's time to be moving underweighted cyclicals to an overweight and, you know, if technology is trading at 13 pe and staples are nearly 20 but you're getting almost the same e the ps growth, similar dividend yields, maybe it makes sense to be buying some of these technology stocks. >> all right. so we've got 2:15 on a ten-year and we've got mortgage rates still really low, obviously. but they -- that shakes people up a little bit when they see it

move that quickly. and then you've got japan, which has had some really volatile moves. that doesn't affect us and it's not going to come here, what's happened in japan is a totally different situation? >> i mean, i think that dish mean, this is going to sound selective, but i think some of the positive aspects of japan are part of the u.s., meaning japan, the transmission mechanism of that rising market really helping bring confidence to the consumer and then seeing it in the economy, i think that's going to start playing out in the u.s. consumer spending gdp is at 1982 levels. >> you can see that chart, though, tom? >> of the stock correction, yes. what i would say is, in a way what you have to remember is investors are using a much higher multiple on the nikkei and the topix than they are the u.s. so in a way, if you think about rerating and e-rating, i think

it's much more of a u.s. story. and if the u.s. were in that 17ish pe, i think we would be vulnerable for sort of 10% corrections. back seat as you know, the u.s. is closer to 14 times. >> do you -- you're okay with this mind-set snap we're in right now that the fed is going to be with us, thank god, until tend of the year with 58 billion a month? when we heard about qe incentive, we went, you're joking. now that we've got it, the thought of not having it is so frightening to some people. so they're all saying, don't worry about the tape. we won't cut back $1 billion on the 85 billion between now and the end of the year. i mean, is that a good mind-set to be in right now, that we're that feeble on our own? >> well, it does show you the insecurity. you know, of the marketplace. and i know you guys were talking about this earlier, that there was a risk aversion in the economy, as well. i think that's playing a big

role. until people feel there's a lot more evidence of stronger underlying economic growth, not just in the u.s., but globally, i do think people do like that safety yet. we're pretty confident you're going to see signs of much better global growth in the second half. so i mean, that is part of our bet in the second half. >> well, we -- you know, i don't know who -- there's no -- the other thing people say that aren't bearish yet is that there's no big name pundit right now that everyone points to that says they know everything. and you're almost getting there for me and for us, tom. i'm wondering whether you will tell us if you do get bearish, because sometimes people stay at the party too long. jpmorgan is lucky to have you at this point, because i don't know, at the other firms, no one has really got anyone that i think has stayed bullish and been right for so long. >> i appreciate that. >> let us know. i don't hear anything on the horizons that sounds negative for you at this point.

>> that's right. i think for now we still have a market that i think people only reluctantly believe. i think if we start seeing people embrace it, i think that's when we have to start getting worried. >> but you are talking about the next level. transition, it was a key thing that happened a couple of weeks ago. and you do see some changes coming because of that. >> that's right. >> just different leadership group. >> correct. and i think it's a leadership that we should start to really say, wow, that could lead us to three to five years. you know, the 80s was all led by defensive stocks. i think most people don't remember that. but the 90s was a decade of cyclical outperformance, cyclical stocks outperforming. >> and it's not like -- you got hammered because there have been times -- there were times you can remember in the last two, three or four years where i can remember on this network where you were hammered and had to stick to your guns, obviously. he was always pretty calm about it. tom, thank you. appreciate it. >> thanks. >> have fun. no skiing. >> yeah, no skiing. and it's too early to meet

clients at this point. >> so you've got nothing the better to do than be on "squawk box." thanks. >> yep, thanks. when we come back, the u.s. jobs picture, likely the economic story of the week. we will get ready with two of squawk's favorite economists right after this. but first, as we head to a break, take a look at last week's winners and losers in the stock market. [ male announcer ] with wells fargo advisors envision planning process, it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. i have low testosterone. there, i said it.

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back to "squawk box" here on cnbc. i'm joe kernen along with becky quick. andrew ross sorkin is off today. and it's redemption day. and that's not a good thing at sac capital. not redemption, not the company redeeming itself, but the company paying out lots of money to people that are out of there after the toughest quarter in the hedge fund's history, investorses must decide today whether to pull capital from steven cohen's firm. sac insiders are expecting significant redemptions, perhaps the majority of the $4 billion in external capital that hasn't been taken out already. if that happens, sac could become a de facto, a family office, a fund managing only. it's all money been insider money. >> i think they were talking about that, anyway. at least that's been the reports, that there's speculation they would want to do that because then the government gets off their back. this is not that people are saying, well, i'm uncomfortable being at a firm that might have

questionable perhapses, it's the performance. i mean, if the performance was still great, they would be looking -- >> there's probably a point when you wonder. the government has been so aggressive, there's probably a point when you wonder if that's going to hamper then at some point. >> 40% last year, i don't know if anybody would be taking their money out. >> maybe. i don't know. the government has been so aggressive and probably looking at that and say, wow, i don't know. it may be part of the issue. >> i mean, you know, with that mentality, we would all leave journalism. the government has been aggressive on us, too, hasn't it? >> aye, aye, aye. the plural? >> the fifth column or whatever. >> fourth. >> i feel like i'm in the fifth. >> investors will have plenty of economic data on the docket this week. we get tacktory orders, trade data and, of course, the big jobs report on friday. joining us now so talk more about it is nariman behravesh. also on set this morning is

michelle gerard. chief economy it at rbs. reading through your notes, i think you two have slightly differing opinions where we were in the economy right now. michelle, you're still pretty concerned, particularly when you look at manufacturing and those numbers? >> yeah. actually, we don't have much change in terms of the manufacturing data. it's somewhat weaker than the broader numbers. >> not doing great. >> exactly. very close to breaking even. friday's numbers are the all important data of the week. the fed has us so focused on employment pass threshold for qe and tapering and it's all data dependent. so it's just focused everything. this friday's number, i think, is going to be important in terms of expectations that people have about the fed. >> wa do you think before that number? what's your expectation about when the fed might start to taper? >> i have to say, i think september is the earliest that they would consider tapering. i think they want us to have the economy goes through the summer, continue to see whether or not the sequester is a factor.

if we get through to september and it's not proving to be that much of a drag, then i think it's an open discussion. but i don't think it's a foregone conclusion. i don't see the economies picking up very much. i think inflation is going the stay low. the employment situation is going to stay very close to what it's been. only a gradual if further decline, the unemployment rate. so i think it's a very close call. if they're worried about the financial markets and excess risk taking, maybe. but even that, i think, is -- as i said, i don't think it's a foregone conclusion. >> naerimin, how about you? >> well, they're leaving their options wide open ought this point, but if you look at the second quarter, which we think will come in at 1.5%, inflation is really not a problem. our best guess is they probably wait until the end of the year, maybe next year.

there will be a lot of talk in preparing the markets. and you saw bernanke do some of that last week. but that's all it's going to be. i don't think they're going to take any dramatic action for a while until they see the shakeout as, again, michelle was saying about the sequester. there's no rush to really start to take that liquidity out. >> no rush, but is there a massive reason to leave on the numbers at the incredible rate that they've done at this point? >> that is still a lot of liquidity that you're injecting into the system, but at least you give yourself a little bit of notice to the market that, hey, this isn't going to be for forever. >> fair enough. except that they're facing -- you know, they're worried about this massive headwind that the economy is facing in the form of the sequester. it's going to have the biggest hit in the second quarter. it will start to taper off by the third and fourth. but still, until they have a clearer sense of what the impact is going to be, i doubt very much they're going to take any kind of action.

it will be on hold a little while longer. >> nariman, you were saying the fed would need to see gdp closer to 3% before they would be willing to let up. is that right? >> that's correct. and we think that's going to happen in the fourth quarter. i doubt very much if we'll see much until then. >> the fed has given us all these different numbers they're looking at. 3%, that's -- >> and it's so hard. the gdp, we had a relatively strong first quarter number. looking at the underlying data in particular, the second quarter is going to look softer now. i mean, i actually think that the fed is most particularly focused on unemployment because it's going to be -- it's going to give us a better sense earlier than gdp about how the economy is doing and that's why that 200,000 threshold is the key. what do you think the number will be? i think the estimate is for friday's jobs number. >> we're probably close to consensus at 175.

not much different than the recent trend. i think if you had a number over 200, that's an important marker for the financial markets. i would be surprised to see a number much weaker than 140 to 1r50. something like that, weaker than that, would suggest to me a bit of a down draft from what we've been seeing. >> nariman, how about you for the jobs report? >> we're saying around 160, so we're slightly below consensus. but you know these number res extremely volatile, and they keep getting revised mostly upwards. initial number, i would say about 160. >> nariman, michelle, thank you both. >> thanks. coming up, weak data out of china this weekend, scaring investors again. the details, next. but first, bidding for lunch with warren buffett. it's officially open, the auction benefits his beloved charity, san francisco's glide. you can bid on ebay until friday night at 10:30 eastern time. but think about this, last year's winning bid set a record $3.5 million before you bid.

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welcome back, everyone. there are some new signs of a slowdown in china's factory seconder. china's pmi fell to the lowest level since october of 2012. joining us now is gordon chang. gordon, thank you very much for coming in today. >> thank you. >> you had one line that really caught my attention about you don't believe in the tooth fairy. what are some of the -- >> easterer bunny and china's official pmi. >> okay.

>> in april, the hsbc and the official pmi were very close to each other. >> two separate indexes? >> two separate indexes. but what happened in may is that the official one went up and hsbc tumbled. but the important point here is that most analysts expected the official one to fall, as well. and even china's stock market investors thought that the official pmi would fall. so was going on right here is i think that beijing is start to go fib because as the economy gets worse, china's numbers get better. >> so what's really happening on the ground in china? what's happening with the economy? >> yeah. i think a that what you're seeing is essentially an economy that is somewhere between 2% and 3%. >> wait, 2% and 3%, people were concerned about 7% to 8% growth thinking that was a massive slowdown. 2% and 3%, that's off the charts. >> china claimed 7.7% growth for the first quarter. but when you look at electricity, by far the most economic indicator, that grew 279% in q1.

when you consider that the growth of gdp is historically 85% of the growth of electricity, you're talking 2.5. and when you strip out economic use of production, all of these cities, for instance, in high speed rail lines to nowhere, you're talking maybe zero. >> so china, you're concerned, haib doing, a, too much stimulus, b, has been fibbing about the numbers, but too much stimulus, how does that eventually catch up? >> wa we're seeing right now, in 2008, 2009, they've dumbed an incredible amount of stimulus into the chinese economy. and, of course, they created growth, but they also created asset bubbles and the one that has not resolved itself is housing. and so you see all these construction cranes and shanghai and elsewhere, but there's no market for it, really, because right now, it takes the average chinese worker more than 40 years to buy an apartment of 11,100 square feet.

.that's if he doesn't eat or do anything else. clearly, you've got an un sustainable bubble. but what's happened is china put a lot of stimulus in, as well. they saw a lot of problems that started to manifest themselves in 2011 and they created this q4 bump in 2012. now this stimulus is unaffected. the chinese can put stimulus in, but eventually it doesn't work and the same thing is going to happen in the united states, as well. >> the argument for both is that if you are careful with this, you can manage a soft landing and eventually the economy will pick up for itself and you can back out. you don't think that's likely? >> no, because china is not going through a soft landing and it's got its debt crisis, which is the build up. it's going to hit the economy soon. there's no way they can manage that. and i think we're going to get a big lesson in china. really pretty simple. >> gordon, can we -- so bernanke should pay attention. should central planner in this country pay attention to what

timely comes back to roost in china? and i guess my question is, they built way too many high speed rails to nowhere. can we build a few here that make sense? i mean, does it work? does keynesian stimulus, can it work here? did they just overdo it? >> i think you can never plan it centrally. you know, the one high speed rail line they're thinking of building in the united states is completely uneconomic. san francisco down to los angeles. >> and that almost makes more sense than tampa to some of the other ones i've seen. >> what are they thinking? >> they're thinking jobs and let's do something, i guess. >> even in china where you have the government support for high speed rail, they're losing money hand over fist. >> is there infrastructure to do with bridges or internet or stuff like that? >> it is. we need some better bridges as we saw in seattle last month.

>> okay. so just not to the extent that china has -- empty cities we don't need. >> yeah. they do not need ghost cities. and they turned my dad's ancestral home into a city. all of these -- >> no team? >> yes. no team and no people. this is just amazing. >> gordon, thank you very much for coming in. >> thank you. >> again, gordon chang. and coming up, an organization running a campaign against one of the world's richest men. could be coming under investigation today. the details, next. english acce] safe driver, multi-car, paid in full -- a most fulsome bounty indeed, lord jamie. thou cometh and we thy saveth! what are you doing? we doth offer so many discounts, we have some to spare. oh, you have any of those homeowners discounts? here we go. thank you. he took my shield, my lady. these are troubling times in the kingdom. more discounts than we knoweth what to do with. now that's progressive.

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welcome back, everybody. michelle caruso-cabrera joins us with a story about the group going after carlo slim. >> they are going to investigate as being not necessarily what it means to be. a group called two countries, one voice. they have been mounting protests against carlos slim in vegas, new york public library. slim on stage is there to talk about the fact that slim is going to put the bill for doing all of the videos now in spanish. every time carlos slim talked people in the audience started to laugh. and then it broke up into --

take a listen. >> i'll tell you what's fun, carlos slim's charity is funny. 30, 40 people got up with kazoos and were marching out. they threw around fake monopoly money which says carlos slim's charity is laughable. two countries, one voice. they say they are grassroots organization. they think he controls too much of the telecom market in mexico. and carlos slim's organization which owns tracfone. it is getting backing from a third party with a vested

interest. >> do you have any idea who that might be? >> they make suggestions that it could be one of the other mexican billionaires who he has battled with. the bottom line is we will find out whether or not there's enough to see whether they are under california lobbying rules. they are confounded by the accusations and there's absolutely no linkages. but california will decide today. if they don't, we're never going to find out. >> it's an interesting grassroots situation opposed to his monopoly. >> in a foreign country. >> just because you see things that bubble up from grassroots that isn't normally the type of focus that a grassroots organization might have. but then again, i don't know what is. >>ity tried to talk to some of the protesters because i happened to be sitting near them

when they were laughing. i said who are you? what are you doing? one guy laughed afterwards. i said who are you with? who started this? he said i'm not sure who started it. i just got an e-mail. >> and here's my list of complaints and here's why i'm taking the time to do it. >> right. so we'll see. it was an uncomfortable moment. >> we had our own here. we weren't necessarily astroturf. but they're just as annoying. i don't know enough about this to defend carlos slim. i never understand the g-8, the anti-globalization people, what they are throwing the molotov

cocktails were. i don't know what they want. >> when you look at some of the videos they have constructed online, it almost suggests they would like the telecom company in mexico to be government-run gun. mexicans would be using tin cans and strings still if that's the case because it was so ill-run. so i had a long conversation with this guy -- >> the woman who got hired off occupy wall street. >> people who hate business because they're mad who doesn't have a job. >> ramieres does have a job. he said he's not anti-success, not anti-capitalist, et cetera. >> all right. thank you. coming up this morning, top stories, including another rough session in japan. what's behind that action and talk stocks here on the first trading i did of the month. [ male announcer ] my client gloria

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big week for the markets. key economic data all week long leading up to the friday jobs report. what you need to be watching and where you can put your money to work. we speak to former apple ceo about innovation and whether or not tim cook can bring apple to the next level of big products. plus, business leadership and thoughts. cnbc contributor larry bossity as the second hour of "squawk box" begins right now. good morning, everybody. welcome back to "squawk box"

here on cnbc. i'm becky quick along with joe kernen. andrew is out today. dow futures have picked up since the last time we checked. 82 points above fair value. s&p up by seven points. this is coming after big declines in japan. nikkei down by 500 points. people seem to be shrugging that off in the united states. let's get to some of your morning headlines. we will be getting sales figures for the month of may for the major u.s. automakers. ford will post a 13% sales jump. g.m., 1.9% gain. and chrysler a gain of 9%. apple is in the news on several fronts. all street journal reports apple is close to distributing a streaming music service that would complete with pandora and

spotify. and the airline industry should post $12.7 billion profit, up considerably from $10.6 billion forecast. oil prices are helping, along with increased fee income. obviously we had a little bit of a rocky finish. wall street ignored the old adage sell in may. dow dropped 209 points, the biggest loss since april 15th. worries about economic slowdowns in china. the s&p ended may with its seventh straight monthly gain. best run since 2009. the last two weeks have been considerably more choppy. our guest host is the former chairman and ceo of honeywell and cnbc contributor. larry, great to see you. >> thanks, becky. nice to be here. >> we have been trying to figure out if this was a change. we talked about the fed. is this going to taper.

we have seen a lot of volatility since then. >> well, you know, i think we breed uncertainty. so here we are. the fed has its markers as a 6.5% unemployment and 2% to 2.5% inflation. we're nowhere near those. why are we intro tuesdaying a tapering? >> 6.5% is the level they have to have before they raise interest rates. >> it could. but it seems -- we're not out of the woods yet. you see a lot of positive things. you mentioned autos. certainly housing looks very good. consumer spending was weak in april. we had a lot of these very favorable viewpoints early on in the summer only to see them dissipate as the year goes on. all i'm saying is i would hold off discussions until we get closer to say, yeah, we're out of the woods economically. >> you're not nudging whether

the taper is a good idea or bad idea. >> no, the timing of it. >> when they said we're going to do 85 billion a month for whoever, you go wow. >> i knew that wasn't going to happen. at least for a while. >> it was like the third or fourth round of quantitative easing. you think they should keep going? >> no, no. they should wait until they get closer to their own targets. >> if we're going 2, 2.5 with a point and a quarter off, we're up 3%. >> but the sequester is real. it has an impact on the economy. >> that's bernanke's trouble. every time he goes back to congress he said why don't you guys pick up some of this. >> i'm not questioning bernanke in general. he has done a great job through a difficult period. this is an inappropriate time.

at least we get closer to their own goals. >> we have had a lot of people we have talked to about it. some people say not before the end of the year. some people think as early as september. you think slow down. don't try to rush out the exit doors. >> if it's growing in a way that can be sustained. then we have to go through a procedure to get off the stimulus. but i don't think we should do it until we can all conclude, yeah, we are growing, and the economy can be sustained. >> we just had gordon on. i thought he was fascinating. his dad is from china. he writes a lot about smithfield. he made interesting points. he pointed out they have money. they can buy as much pork as they want right now. it's not just they want a supply of pork. he says he's got the other case where you hear some of the people worrying that this is sort of a way of getting into our market to export to us, not

to import from us. >> yes. >> he said some of those 16,000 pigs that were in that river ended up on supermarket shelves in china as well. so being able to have the credibility of a smithfield and owning it would allow them maybe -- worries that the quality of smithfield could go down. do you think we need to be free traders all the time? i want to be a free trader, but i don't want my pork -- >> i think mr. chang was knowledgeable about china. 2% to 3%. >> and he's probably right in a lot of of things. but i don't see how we're going to block this. i don't see what it violates. >> seems there's a lot of oil. let him have some of the oil.

>> what is there is a total shortage? >> i'm going to say -- >> turkey bacon? >> no. i think we will be able to accommodate that. >> pork chops? >> i'm not for a lot of these transactions, but i don't see how -- >> i've watched you change a little into a little bit of a new age -- you eat tofu, healthy stuff now. >> you've eaten with me. >> you order salad. you watch what you eat. breakfast, i don't see you going hog child. >> i don't eat that much anymore, but i don't eat tofu. i vice president gone that far. i'm hitting the ball shorter. i have to do something. >> what do you think of the market's activity and where it's

taken off? does this make sense at these levels? do you start to get nervous? >> i'm a believer you can't guess what happens with equities. we are going to have a correction. there's no doubt in my mind. you unck it's in the 10% to 15% range. i'm still bullish. if you're foggy to be an investor, you have to be in equities. >> so bernanke has been the only game in town. we have our fiscal issues. depending what side of the aisle you're on, you want them to get their act together in different ways. you don't want more laws, do you? do you want them to pass more stuff if they get their act together? >> there's an outfit called

competitive sper prienterprise. >> we never get rid of it, do we? >> no. 21%. a trillion eight to administer. about 14,700 bucks per household. >> how many pages? >> 174,545, up 21% from the preceding year thanks to obama care and dodd/frank. it's expanding at record rates. >> small business. >> not just small business but people themselves. this goes down to average americans who don't want to switch jobs anymore. they're afraid to take chances. >> it could be from how difficult it is to stand clients in all these different things. >> i think bernanke has been a

hero throughout this. he's been an american asset. if you have a congress that does year after year, there's a toll to be paid. we're not going to solve the debt problem this year. we're not going to have any entitlement reform this year. we're not going to overturn the tax code. is and in 2014 with elections there, we probably have 24 more stalemate. >> these are the things you want to do if they did get their act together. >> that's the highest priority. i would like to see us overhaul this tax code. >> there's talk that a goal is to get nancy pelosi back as speaker and get the house pack. that would not be the things they would tackle if it were to come to pass. >> that is true. >> we would be doing a lot of stuff. >> i agree. >> that probably won't happen.

i don't think you can declare the second term of the president successful as of yet anyway. i would say the chances of them capturing the house are remote at the moment. if he does and ms. pelosi comes back, we will -- >> we had a guest say, ben. >> ben white? >> yeah. >> he lives in new york. >> pause the economy is doing better and because michele bachmann is gone, that means they're going to re-take the house. >> you better go back and check. >> i don't think he thinks it's likely either. >> but he said i don't know if it will be enough to retake the house. you have three scan tals. who knows where those are going to go. and obama care in 2014. >> but the president is making a big push. they were talking about because the president was addressing congress saying if all of you fought as hard as we did we

would have a shot. larry will be with us the rest of the program. we have much more to talk about. >> i'm sure people will have comments for me after that, but i welcome them. are you tweeting yet, larry? >> no, i don't tweet. >> you just don't like pork. the party in power tries to overhaul the country's constitution.

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quick selloff on friday. we're up 78 points. that's okay. if you have an ugly selloff on friday, you worry. we're rebounding. major protests throughout turkey. michelle caruso-cabrera joins us with more on this story. this is rammedly developing. >> so four days now we have seen protests. and the video is unbelievable day after day after day. it spread across the entire country. 67 towns. more than 1700 arrested. it started four days ago because the prime minister -- or the

mayor of istanbul wants to redevelop an ottoman bakers on the square of one of the few remaining green parks after a lot of the development. their economy has grown a lot in the last 10 years. the prime minister before he left for morocco calls them extremist. he said you bring out 200,000, i will bring out 2 million. keep in mind, this is a democracy. he was elected in real elections. he had overwhelming support. perhaps they're becoming less and less of a secular government. this is a country where the vast majority are muslim. the constitution is very strict about the separation of church and state, there would be

separation of mosque and state. imposing new laws related to liquor. it's very widespread. what to call it? some called it a civil war because it is a large number of people. certainly it speaks to some part of society who was unhappy with what was going on. >> the people protesting are against it? >> yes. but they're against more economic development or construction within istanbul as well. the turkish leader has gotten pummeled the last 24 hours. >> thank you very much. when we come back, roche announcing another use for its cancer drug. time now for today's aflac

trivia question. who is the all time leader in scoring in nba playoff history? the answer when cnbc "squawk box" continues. ac is helping wis expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at ducktherapy.com.

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now the answer to today's aflac trivia question. who is the all time leader in scoring in nba playoff history? michael jordan. he scored 5,987 points throughout his playoff career. >> i thought it was wilt chamberlain, leading scorer. oh, oh, oh, points. because wilt scored more. the american society of clinical oncology kicking off its annual meeting. addressing this year's theme, building bridges to conquer cancer. joining us from now is chief medical officer at roche. i go back to the crazy biotech company working on antramed.

it looked like it didn't work. evastin came along. >> it's been 10 years since the pivotal data that showed works in colon cancer. since then the data has shown that it works now in the united states, approved in four different types of cancer. we have had 26 late stage trials. in conjunction with chemotherapy. your trial showed it was positive at least in preventing the tumor for growing for a longer time, right? >> yeah. it was two very exciting programs. one in cervical cancer, the second most common cause of cancer-related deaths in women between ages of 15 and 45. it is sponsored by nci.

women who received evastin had four-month improvement in living with their cancer. that's very impressive. and two studies in brain cancer. not only did it keep the tumor from growing and keeping patients much more functionally able. we found patients were able to communicate better. they were able to take care of themselves. and we think this improvement in quality of life and this very debilitating disease is very important. >> i noticed over the years it has had some difficulties, if you will, in terms of positive results and in terms of some applications. have you been able to overcome some of those negative responses over time? >> well, as i said, there's been 26 studies in the late stages.

16 have been positive. not every study has been positive. but when you have a novel therapy like this, it's important to study in lots of different patients so you understand for whom it works. >> obviously it's hard with all the different cancers to find something they all have in common. obviously you need blood vessels to grow. when the cancer seems to finally get around the evastin, has it mutated to get blood vessels in a different way? not just for four months. what finally happened? >> it's not clear what happens. one of the most exciting advances is something we talked about last year, immunotherapy. studies show, including one by ours, you can have pretty impressive impacts. our study actually showed of the

141 patients treated with this new medicine that coats the tumor and exposes it to the immune system that around 20% to 25% of patients will have a pronounced response. it actually has very sustained and prolonged responses. about 90% of patients whose tumors shrank maintained their shrinkage. maybe some day it could be given with evastin. >> we have had people make a point that our health care system works hard trying to extend life. we don't know how we're going to pay for it. it's 10,000 per treatment. you get a couple of extra months. sooner or later we're foggy to figure out how to ration this and decide who gets it and who doesn't. you can't do it for just a couple extra months. >> the new advances at this

meeting are combining different therapists together, to have meaningful differences. >> any efficacy at all on some of these cancers is the first we have had. so we're on the right track. >> yeah, we are. >> we appreciate it. keep it up. thank you. genentec one of the greats of all time. and roche. up next, the monday morning trade. we'll take a look at what's moving oil and currency markets around the world. the futures for the stock market at this point are still going very strong. 86 above fair value. and this will be your premium right here.

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welcome back to "squawk box", everyone everyone. it is a busy week for economic numbers. it begins with two reports at 10:00 eastern time. first of all, we have the institute for supply management. it will be out with monthly manufacturing from may. it is expected to post a slight increase, as is the government's april construction spending

number. also, microsoft ceo is set to work on a majoring restructuring of the software giant according to all things "d". it is redemption day. our kate kelly is on the news line with more on this. kate? >> becky, it's a crucial deadline day for a closely held hedge fund founded by cohen. he and some of his senior management were asked to testify before a grand jury as part of an ongoing criminal investigation as to whether there was any alleged insider trading at the firm. investors have to decide whether they want to redeem their money from the firm or the second quarter. it will be fully returned at the end of the year if they do so today. the losses are expected to be quite remarkable. insiders tell me they are

expecting significant redemption, perhaps more than they saw in the first quarter. about $15 billion is the total money managed. 9 billion or so belongs to mr. cohen himself and other insiders. the question is, do they continue to be open to outsiders if they become a defacto office? it's unclear. i'm told by folks close to the firm they have no intention of becoming a family office. they might have a little choice. >> once we get the numbers, how do you judge this? if we already expect it will be more than half the money that's left? i mean once you actually hear the number, what does that tell you? >> well, you have to look at

ballpark figures. they had $6 billion in outside capital. roughly two of that at the end of the first quarter. technically that is flowing out over the course of several quarters. but if they lose the majority of what's left, let's call it $4 billion, and i'm told that very well may happen, you have to vote against the future prospect of this firm at least as an outside investor money manager. people have a lot of doubts about what's going on in this investigation. he successfully warded off attempts to do that in recent years. but a growing number of current and former employees have been in snared in this investigation. there are a whole different stocks. they have achieved guilty pleas

over the years. all in all, i think investors are probably going to play it conservative. you have pension funds here. fund to funds. morgan stanley. blackstone. they may not feel comfortable exposing their clients to this kind of potential risk. >> okay. kate, thank you very much. kate kelly. also this morning, we have been tracking currency prices. dollar/yen gaining some ground. crude slipping below $100. joining us to talk oil is kevin kerr. and david wu at bank of america, merrill lynch. and larry bossidy, former chair and ceo of honeywell. you watched what's been happening. all the concerns with the nikkei

and japan. do you think that's going to continue to hold sway the next few weeks? >> i think so. probably fair to say the single longest position in currency when anything else parties is dollar/yen. u.s. yields have been going higher. we have seen it actually the other way around. that just tells you how proud they have become and how vulnerable it is to a further shakeup. >> there's a lot of discussion about how currency manipulation is occurring among the various companies of the world. how widespread is it and what impact does it have? >> yen weakness because other central banks are not expected to follow suit. for example, in england, mark carney is about to replace king as head of england.

perhaps he will steal a page in trying to resort to more easing. even the ecb is now coming under pressure. this has become contagious. >> is that good news for the dollar? >> right now the problem is the market is running with. i think from that point of view it's going to be very difficult to rally without some sort of direction. do you expect the tapering to end? >> we still think it's going to be in 2014. but i think the markets basically would scare out of the possibility that this could come sooner rather than lating. right now the fed is buying a

trillion dollars. you're talking about half a trillion dollars coming from somewhere. a lot of it has to come outside the u.s. >> wti falling below $93. what's happening? why all the pressure all of a sudden? >> benny, we are seeing below 100. we have so many factors. oversupply. pretty much every sector. china numbers that don't look so hot. we have pmi for small business dropping from 47.6 to 47.3. these numbers are not helping things. all those things put together with the oversupply we will see more weakness this week. again, brent below 100 is key. wti below 94. heading towards 90. that's the key level to mark.

overall weakness is a key story right now. >> we have heard a lot of people who have come on and said, look, the economy is starting to grow. maybe it's slow growth but you're still getting growth. did the opec meeting from friday have any impact on this? >> opec is not going to cut production. basically they're pumping full steam. they won't meet until december. really we have to crank through the oversupply before we can start seeing the pickup in demand even with the growth and improvement. >> thank you for joiningous set today. >> up next, is tim cook ready to take apple to the next level? and wearables with john skully next. as we head to break, another look at futures, which have been solid and positive. up 92. (announcer) at scottrade, our clients trade and invest

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>> it's the name of any ceo sonny lu. he talked about the misfits. the day we founded the company is the day steve died. so he said we need to do something. >> so you think this is going to be a huge deal in wearables? sort of describe it to me as if i was 11 mentally, which i am. >> well, let's zoom out and see if we can connect some dots. john chambers forecast that by 2020 there will be 30 billion connected devices. there are only 7 billion people on the planet. that means most will be machine

to machine. we have structured data, which is relationship. 80% of women, they -- most of the financial decisions for health care. now we have moved into predictive analytics. we take massive amounts of data. it can be social, location-based services, and it could be coming from sensors. i think we're at the beginning of the sensor revolution. so when you look at wearables, it is about the passive ability of sensors to be able to monitor lots of different kinds of things. in the case of health care, it can have a huge impact of monitoring everything from your activity and people setting goals for wellness to being able to monitor proteins, all kinds of things. a lot of the future of medicine, i'm in the a doctor obviously,

is going to take advantage with with what you can do with sensor. >> even aetna has all kinds of things with a scale you can step on to every day. >> that's called weathering. when i joined the personal computer industry, the the early days of the micro processor, companies like atari, commodore, atari. they aren't out there anymore, but they set the the beginning. we will see the same thing with wearables. lots of prediction how big they will be. and over the period of five years, a i decade, a huge impact. companies like samsung, apple, google all working on such devices. it may be important for another year or two. it's the beginning of something that is going to end up being very significant. >> if you have to really look down the road, i know it's

really tough to say what can happen in 5, 10 years, but what's the most exciting thing that comes to your find 5, 10 years down the line with wearables. >> the biggest thing is productive analytics. if you think about the ability to be able to take massive amounts of data, well beyond the social data that we see today and being able to use probability math. and i know you went to m.i.t. when i was in school we worked on theoretically. it's all relative today. you do something as a human. with processors it's sensors.

predictic analytics is saying what's the likelihood you might have a stroke in the next 24 days. we can make predictions on you individually not as a broad class of population. >> that's pretty amazing. >> it is pretty amazing. >> will they need to be implanted? >> i think the early products are going to be external. let's take a watch. there's a new technology that's been out about a year but it will be as important for sensors assay 3g has been for smartphones. that's blue tooth 4.0. it's a real technology, it's not a theoretical protocol. you can have high-speed connectivity between a watch and smartphone and the cloud. that opens up all kinds of possibilities. say you had a watch.

and the ability to get notifications. they are predicted based on what they know about you, massive data computation that are different than the ones i get. i hate trying to remember passwords. with biometrics you could be able to control that. those are a couple of examples. i think watches will find a role. how big, no one really knows at this point. it is certainly something to watch. the next year, two years we will start to see them become part of the landscape. >> so these aren't glasses, google glasses? are those wearable? >> i haven't figured out the google glasses. it's not something i can picture myself wearing. i don't know about you, larry. >> probably not. i was interesting in the shine product in terms of wearables.

it's been delayed in terms of being brought to market. it was going to support android. why launch it without the connectivity option? >> well, we want to focus on the iphone. apple is so good at building elegant, highly styled products. you think of apple as being a leader in various kinds of services. so we're really focused on the apple market first. we'll follow with the android at a later date. the shine product is novel from anything else that's come. it's the size of a quarter. it has a battery life. it is probably the most challenging. most wearables are measured in days. our will be nine months to a year. and it's totally waterproof to 300 feet. so you can take it anywhere. partly, becky, the shine product

is not men designing product for men but it's a product designed for women. that's what apple does. apple is designing products in which people like to be seen. >> wondering what you think about ceos returning to their own jobs. we have seen lately with jc pen la and laffley going back to procter & gamble. >> they had real challenges. bringing somebody in who had been successful before. he has been a remarkable ceo. to step in and take charge quickly. that's a huge cue for procter & gamble. i think jc penney needs to do a total restructure. they made a lot of mistakes. it does help having someone in

there. he is coming in on an interim basis and they will be on permanent search for a ceo. >> the principal objective is to settle the company down and search for a successor. >> the same situation with laffley. i think he's there two or three years. >> max. >> back when he was ceo, larry bossidy had probably the best reputation for getting the the right people on the bus and getting them in the right seats. i was a stickler. that's what a.j.laffley will be doing. >> you really weren't the brains behind it. you got the people that were the brains to do it. that's a roll for people. that's a skill, larry. how much of this is going to be chip technology? >> for sensors? >> just for everything. who is making them now is it

still intel? where would you invest overall to provide the guts for this? >> i think it gives apple an advantage herement it's about chips and software. i mentioned overall about batteries. how do you extend the life of a battery. it's not just the chips. how do you make those tradeoffs? >> when people were bullish they didn't even talk about that part, being able to aggregate. >> it's just amazing. here's one of the best managed companies in the world and it's being treated, you know, as though -- >> they're doing the basic science that is necessary in nano technology? they do that too? >> apple has never been an inventor of technology. apple has always been able to

make great calls as to which should go together? it's about connecting the dots. >> between wearing this and joining the grid and sing layerity. it's very exciting. i hope my avatar can be wearing one of these products. when we come back, business and the economy.

. it's monday morning. if you haven't checked yet, dow futures are sharply higher. up 77 points above fair value. s&p futures up over six points above fair value. this is all happening despite the big drop of over 500 points overnight. when we come back on "squawk", the disruptor who takes storage to the next level. >> plus, the ceo of onyx pharmaceutical. ♪ bonjour

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your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. countdown to jobs friday. we'll break down what this week's employment report will mean to the fed and the markets >> police crashing with anti-government demonstrators. michelle caruso-cabrera. and ceo of pure storage. his company wants to change the way companies store data using

flash. >> i want flash. i want flash. all night long. crazy, right? >> the third power of "squawk box" begins right now. ♪ welcome back to "squawk box" on cnbc. first in business worldwide. andrew is off today. our guest host this morning, larry bossidy, former chair and ceo of honeywell, and cnbc contributor. on the board of all the big companies. >> ge, jpmorgan and merck. >> and my own too. >> three dow components. >> kids? >> nine kids, one wife.

>> and currently tally, if you know, on the grandchildren. >> come on, joe. 31 grandchildren. >> how many names? >> i know all the names. i'm not going to get tested. >> more from larry still ahead. you don't need to do cross word puzzles. to stay sharp you have to remember who the heck is related to you. >> my wife takes care of all of the that stuff. >> you just remember who she is. let's get a check on the markets. nikkei closed down 500 points overnight. 3.7%. there's been a lot of volatility in that nikkei lately. today was no exception. friday's late selloff in the united states. renewed worries about a slowdown in china. nikkei snapped a nine-month winning streak in may, its best run since 2006. and europe this morning, you'll see that things have actually

turned around. we saw declines across the board. you do see modest gains for the cac. same for the dax in germany. and equity futures have picked up substantially. at this point dow futures are up 80 points. s&p up close to 7 points. some of our other headlines include apple, which is on the news on several fronts. it will be defending itself that it conspired to fix the price of electronic books. it is close to a streaming music experience. dream liners have been grounded three months after batteries overheated. it won approval for revamped battery system that the lithium icon cells and steel box packed

with fire resistant insulation >> turkey's prime minister is calling for calm today. it was the third night of violent clashes last night. and a demonstrator tried to use a piece of construction equipment to break through police lines near the office of the prime minister, who has rejected accusations that he is a dictator and dismissed as part of an extremist fringe. michelle caruso-cabrera was with us to talk about this at 8:30 a.m. eastern. the dow turned in six straight months of gains. we are counting down to friday's employment report, a key indicator for how the economy is doing. joining us is michael ryan. our guest host larry bossidy is here as well. michael, welcome. thanks for joining us today. >> thanks, becky. >> we have been seeing some signs of economic strength. do you think it's enough to make

the fed start thinking about tapering? >> no, i do not. i think it is happening on a structural basis. it's not policy driven right now. it's too early for the fed to begin tapering. if it does it will be much later this year for 2014. one was employment growth and stableation. and the other is as long as it remains muted it can continue to keep its policy. we have seen modest improvements in the economy. so i think this gives the fed more latitude to keep policy for a longer period. >> the friday jobs report is key number, though. that's what most economists tell us they will be watching. what are you expecting on friday's report? >> we're looking above consensus number. we're looking for unemployment rate to tick town 0.1 of 1%.

we are seeing the structural strengthening. not to where the fed tapers the purchases earlier. >> michael, this is larry bossidy. we grew 2.4% in the first quarter. most are 1.5% in the second quarter. why do you think the economy is softening in the second quarter? >> we're actually a little bit more optimistic. we think most of the forecasts are lowered is because of inventory restocking. you saw a bit of a consumption surge. we think that the consumer can continue to spend the same level as they did in the first quarter. what you will start to see is business investment spending. >> if you had to take a look and figure out, is good news good

news at this point or is good news bad because because people are concerned the fed is going to back out? >> from my perspective, if we get an economy on healthier footing but not growing too rapidly, we think that's what the fed wants. at the same time we are seeing structural healing we will get the winds deleveraging. it will moderate. we will continue to be in the 2.5% range or so. just so enough so the fed will continue to keep policy. >> why is that a virtue? it's a virtue because the fed continues to stay in there? >> there's another virtue to this as well. this fiscal drag we're starting to see is having payoffs in terms of the decline, definite fit to gdp. think about what's happened this year. february to may, you see

reduction deficits. they create a favorable back drop. it is now becoming a reinforcement rather than the risk factor that so many people worried about. >> they were supposed to be the worst in the second quarter and then improve from there. that would suggest it would leave room for the fed to say september or sometime not long after that start to taper. >> if we see fed tapering it's likely to be the end of this year or 2014. we think the growth prospects will be moderate. the fed will think about cutting back on the rate of purchase. go back to what larry said. the second quarter will be a bit softer and some of the economic drivers we saw in the first quarter. >> michael, thank you very much. great talking to you. >> thanks, becky. >> more from our guest host, larry bossidy. one thing we have been hoping

for a while is that business leaders become, i don't know, less risk averse. some people think bernanke is finding the bridge to where the baton can finally be passed. do you think it's four or five years already these guys have seemed to be not doing their fair share of hiring and invest something. >> i do. take 2008 as the starting point. >> 2013. >> and you saw 2008 starting point and going to 2013. a deep recession. normally people accumulate cash. that's what they've done. the acquisition market has been slow. >> are we on the cusp finally? >> i think we're not on the cusp. we will have to see a little bit

more. we'll have to see what happens with the political arena. it will breed confidence. but i don't think it's going to happen immediately. >> do you talk about europe anymore? >> i write europe off for a couple more years. i think it will heal slowly. >> i'm going to give you your cred. you were great at making your decisions. people do say the most important one is -- >> absolutely, absolutely. >> what would cause you to say i'm going to build a plant now? it would be demand? >> i might build a plant in africa in terms of the new low cost manufacturing base they have over there to help me.

i would certainly look at place in the middle far east. i wouldn't make an investment in europe right now. >> say the white house calls you. they're watching today. david plouffe is watching. one of these guys. and say you know what, i really do want jobs. i want 4% unemployment. you're going to be the regularization czar. >> yes. >> what would you do? >> i would look, first of all, at those who govern business and ask whether they're all necessary and impediments to growth. >> 174,000? >> no. i would let somebody else do that. >> skulley was right. >> doesn't obama pick someone? >> this was something two years ago. >> he did. as a matter of fact, they expanded further.

and then once i got a list of those, i think they were hampering good growth i try to do something about them as best i could and stimulate. this country's biggest need is creating jobs. and we're doing too much to defer that. >> you think that's the biggest hindrance right now? >> i do. i think confidence would grow enormously if we could grow more jobs. that's one of the steps. >> corporate tax reform. >> realistically, that's not going to happen. i would like a start on regulation of subduing its growth at least. >> that would be step one for you. even before the tax reform. >> no, no. entitled would be my number one. longer term that's going to hurt us. i think if people got confidence and it's being managed proper they would spend more.

>> discretionary spending, people think they have done a good job. at least after the sequester. >> yeah, we have. discretionary spending is something like 18% of the overall expenditures of the government. that's been sequester is audi e audible -- >> was it an elegant way to reduce expenses? no. i hope it's not abandoned to go to a different scheme in terms of reducing expenses. >> do you have a way of doing a public/private infrastructure bank or -- who was in here? i didn't view him as a socialist necessarily. and he said there's a huge -- it was larry fink. there's a huge appetite among

people to buy infrastructure bonds so we can fund it. for pension plans. for stakes. for all people that need yield that they would buy infrastructure bonds. part private, part public. should we fix everything that needs to be fixed? >> i don't know. but i heard his commentary, which i agree with completely. i think there's priorities. there are certain things. roads, for example. dams would be on the top of the list. but i think that's a novel idea. >> how do we do it? >> you have to involve the private sector. >> who would do it? would the president do it? how do we get this initiative get started? >> we talks about infrastructure all the time. >> but they don't do anything about it. give them the mandate to get it done. >> you think we should do

immigration? >> i think with the right conditions, absolutely, i do. in other words, of the right conditions -- >> because until we do that, it seems that's the only thing they're trying to do. >> it's going to have to be done. close off the borders or at least tighten the borders and give these people become citizens over a reasonable period of time and become tax payers. >> all right. a lot of ideas. here we are. >> you have to get them done. time is a wasting. up next, the president and ceo of onyx pharmaceuticals. protesters clashing with police in turkey. michelle caruso-cabrera will join us with the unrest in istanbul. and jack lew the opening

keynote speaker at our delivering alpha. produced by cnbc. it's july 17th at new york's pierre hotel. for more details, including how to buy tickets, head over to deliveringalpha.com.

welcome back, everybody. the futures have been indicated higher all morning long. in fact, they have picked up steam as we have gone along. 80 points above fair value. s&p up just over six. chrysler is reporting may sales nearly 167,000 vehicles. that's up 11% from a year ago. it beats the estimates of 9% increase. by the way, it was chrysler's best may performance since 2007. we are continuing our coverage with another big player in the field in cancer research. joining us is dr. anthony coles, onyx pharmaceuticals ceo and president. is the main news, tony, the results are trying to stepped the uses for nexavar as well.

>> that's right. it has been available to patients for several years. this is great for thyroid cancer patients. it nearly doubled the amount of time patients lived without their disease progressing. we think this is progressing. 11 months compared to 6 months for patients with practice see poe. importantly, it's the first break through in almost 40 years for patients with thyroid cancer. so this has been big news for cancer specialists. >> we were just having a conversation in fact, off camera why extending life by a couple of months matters. talking about cost benefit analysis of it. it can run $100,000 a year i'm told. when you try to explain why increasing by a matter of

months, increasing life, why that's important, could you go into that? it has to do with thyroid cancer. there's been nothing for 40 years. you can't even touch it. if you see some mechanism of action, you're on the right track. is that why you do this? >> one, if you're the patient, certainly months will matter for you. it's an opportunity for you to spend time outside of the hospital without some of the complications if you can delay the progression of your december. for that individual affected by cancer and their family, this is valuable time. the other opportunity we have in front of us, is to keep working at extending that even further. we have made great strides for liver cancer, breast cancer where the mortality rates are decreasing. the blood cancer, for which we have another therapy, we have seen overall survival from 15 years to 7 or 9

years today as a direct result of the therapies. we have made a lot of good progress. >> i was going to ask youo speak about kiprolis. it has come a long way for myeloma. >> the tkad provided authorization last year for us to bring it to patients. we're now working on bringing it to patients around the world in aour and asia-pacific. it has a lot of opportunity to create momentum for the company. we're testing earlier stages of this disease. patients who failed other therapist. we have promising results. some of which will be presented here today starting 10:15 eastern time and going throughout the day. data which suggests for newly diagnosed patients this could be

effective therapy. >> doctor, nexovar, would you buy it because of additional uses for nexovar and other cancers, or would it be for something that's in the pipeline? what's the most exciting thing happening right now at onyx, do you think? >> well, there has been several very important changes within the company. great changes on the horizon. we acquired a company that brought us an oral therapy that could be promising for multiple myeloma. there is nexovar and then there is stavarga for colorectal cancer. it is doing very well. the two two launches, staare

helping a number of patients. we have almost quintupled our employees ranks. we are just under 1,000, which for a biotech company is quite large. we have a lot of work to do. we are very, very focused on innovating the field of cancer therapy. >> where does the sight that it works? >> it does two things. it actually inhibits the growth of blood vessels -- >> anti genesis. >> and it decreases tumor cells itself. it has two mechanisms of action. it is effective in treating so many cancers. we're optimistic. >> do you know how it does that specifically? >> it actually is annen hinter

of vascular. an inhibitor of vascular. >> i'm interested in all of this stuff. into coming up, treasury department issuing new labeling guidelines. new labeling guidelines for booze. more on that story next. later, disruptor of the morning, ceo of pure storage wants to change the way companies manage their data. becky can't wait to do a disruptor. [ ice freezing ]

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the treasury department regulates alcohol and says beer, wine and spirits company can place nutrition labels if they want to. they were never approved. when we come back, we have the countdown to jobs friday.

it is on. up next, more on what the employment report will mean for the fed and the markets. plus, your list of stocks ahead of opening bell. right now as we head to break, look at u.s. equity futures. s&p up by five. ♪ bonjour ♪ je t'adore ♪ c'est aujourd'hui ♪ ♪ et toujours ♪ me amour ♪ how about me? [ male announcer ] here's to a life less routine. ♪ and it's un, deux, trois, quatre ♪

♪ give me some more of that [ male announcer ] the more connected, athletic, seductive lexus rx. ♪ je t'adore, je t'adore, je t'adore ♪ ♪ ♪ s'il vous plait [ male announcer ] this is the pursuit of perfection.

welcome back to "squawk box". let's look at stocks in the news today. mid america apartment communities and colonial properties trust are combining of $5.1 billion. both specialize in multifamily housing in the sun belt region. they will hold 50% of the combined company. colonial property shareholders will hold 44%. cracker barrel is reporting fiscal third quarter profit of $1.02 a share. rio tinto for its iron or operations. commodities giant glen core, extrata and blackstone group.

it is worth an estimated $4 billion. it's a big week for economic data. all ending with the big -- if we say mother of all, did he really make that up, saddam hussein? >> saddam did not talk about the employment report. he talked generally about economic data. >> did he come up this is the mother of all economic reports? >> he is. he's no longer in office, i would tell you. >> he's not. >> he's not. >> do you have a better way of saying mother of all economic reports? >> i don't. it's the one i hate the the most more than anything. it's an incredibly inaccurate piece of data, which the market reacts to violently and wildly. do we have a clock now? we could get it down to the minute or the second. we could really do it. but it's got a tolerance of plus or minus 100,000. i heard she's hearing that.

what was she doing on the weekend? was she at cocktail parties? >> lots and lots. >> i'm still seeing 165. >> i think we have a guest. he had a higher number. >> what was his number? >> 185. i've seen a couple of 200s. >> he was over 200. >> he was. what was that? >> 2.25, or 2.50 out there. jobless claims -- >> he says 225 for private payrolls. 215 for nonfarm payrolls. >> he's probably near the top of the street from what i have been able to see. i want to go through what's coming up at 10:00, which we don't care about because it's another show and we don't care. ism manufacturing. it is relying on medium and large companies. auto sales a big test about whom there are doubts right now.

international trade $41.4 billion. that is going to factor directly into dp. adp, 171. that's just the private sector. $10,000, 15,000. ism services 53.5. thursday, we get jobless claims. and ecb rate decision. no rate cut expected. and payrolls. 165 is the official one. we'll keep updating this just to see if there's any change. we will do this the next couple of days. unemployment, 7.5%. jason shaker saying we're at a point in time when good data could hasten qe infinity. it could push treasury and yields higher. i would like personally to have that problem. here's what's happening to gdp forecasts among exists. we looked at 13 forecasts over the weekend. 1.47% is the second quarter.

larry said 1.5. he was not far off. it is 1.5%, 2% of the economy. given what they believe is happening with the government spending in the second quarter to do 175 or 2% is what we're hearing is a decent number. finally, you probably heard enough of these already that i put them together. all the taper puns. taper tigers. he's saying it's not a big deal. i came up with don't fear the taper. taper tantrums. and it's only a taper swoon. it's only a paper moon. it's only a taper scene. you don't like that? i should have tried that on somebody. one out of two. there's enough to be a serious pun.

i just wanted "squawk box" viewers to be among the latest. >> i think you're right. we could use problems like that. the numbers are too good. but you will see these heroin addicts. it's almost unamerican to where you see them and you're worried about getting your fix of your $85 billion. >> what has to happen, if the market sells off on fear of taper, the market must feel the fed is too tight relative to the -- where the market is right now and what it needs to support that level. >> they don't think that. >> but i was thinking about this. if i told you -- forget about we ever did 85. if i told you the fed was going to do $65 billion, i would buy the market. but now they're going from 85 to 65 and i'm going to sell the market because i'm only getting 65. >> do you think it's worth talking about the taper given your understanding of the economy? >> i think the market has to

think about it. i have heard this conspiracy theory that the fed wants the market to think about it. it is part of the process. effect i have been reading and talking about with other folks, it's a summertime evaluation and probably a fall decision. >> but you think it will tend to choke off some of the good news? in other words, the bond markets. >> joe concerner has taught me this of strong hands and weak hands. and i think would what would happen, or may be happening right now. >> real short-term guy. >> exactly. you would get a shuffling of the paper from the weak hands to the stronger hands. and over time the stronger hands would prevail in terms of, hey, it's 65 billion still. in that context. >> it has taken a baton from the fed. >> if that's the case. if you really get improvement. the consumer numbers we saw friday, which i said at the time were negative, i reported later in the day i had a rethink on. the decline was utilities

spending. it wasn't pharm income. the consumer is not necessarily out right now. >> rick, is this a chicago versus new york thing? it's really the equity guys. i figure all your guys would love the fed to get out immediately. but the idea they would have 1 billion less. they might sell the market on 1 billion less per month. >> get ready for a taper swoon. >> hey! he likes it. taper swoon. all right, rick. >> you know what, and if you grab the bass, we will do a couple of bars. all traders like to make money. you know, to talk about the interest rate guys want the government to clear the zone. pretty much every trader would like the government to clear the zone. after he hands up talking to me, he picks up the phone and buys

equities to make a little money on the things he doesn't like, which is actually quite normal behavior. i think we wouldn't want to go into frenchville where traders might try to lose money. i don't know. i look at the currencies. every single currency today is up against the dollar. you open up the papers. everybody wants to talk about the taper. i think the biggest flaw to the fed strategy, the largest flaw is to associate the taper with full-blown, quantifiable strength in the economy. because to me strength in the economy is going to happen anyway. i was trimming some trees that were damaged this winter. and a couple of cracked branches already starting to grow and have flowers. even though it's broken, can't grow the way it's supposed to, it will find a way to grow. we are seeing that in the economy. once the fed says okay it is strong enough to taper, it's not only the dynamics of stronger

economies affect normally uninterest rates, it's going to be the metal balls we have swung. so when the fed clears the zone, it goes the other way. i don't know how they will control that horse coming out of the gates. >> all right. thanks, rick. have you seen what a taper -- in there is the tapir animal. i thought about making a full screen. >> ugly looking thinking. >> related to a rhino and horse. >> breeding is interesting. >> did you see pet detective? >> so funny. >> comes out of the rear end of a -- >> yeah. >> he's in there.

it's a fake rhino. there's a family watching in the world. and jim carrey comes out of the back. the kids all throw up. it's just horrible. anyway. have you seen that? >> no. but this is going to be a tricky transition. thank you. >> to turkey. >> yeah. >> let's talk about what's happening around the globe. anti-government protests continue in turkey for a fourth straight day. michelle caruso-cabrera joins us. this is difficult to get your arms around. >> that's right. four days of protest. it is not as strong as it had been over the weekend. when you add four days it is happening in 67 cities across turkey. government says 1,700 people arrested over four days. a very defiant prime minister saying he's not going to back

down against these protesters. he said there is a minority. what is this? it's easier to say what this is not. this is not a cry for democracy. they have it. this is not a cry about a bad economy. they have had a strong economy steadily growing. they did not want one of few remaining green spaces in istanbul to be made -- the government said it would be the remaking of ottoman baker's cyst but it would have shopping malls, hotels. so it would be more development. additionally, there are concerns among the protesters about whether or not the government is becoming more authoritarian and less secular, even though the population is overwhelming ily muslim, it has a constitution that says, in fact, the government should be separate, secular and there should be no merging of mosque and state so to speak. so we have to see what happens. let's show you what happened with the market. it tumbled. you wouldn't be surprised.

take a look at that decline of nearly 8%. monday through friday is the way it trades over there. and the turkish lira as well. 2% move is a big move. this is the lira. it looks like it is strengthening because the dollar is getting stronger against the lira. >> i just looked it up. it was a commanding victory in june 2011 when he was elected. >> right. so this is not jose mubarak in tahrir square. >> michelle, thank you very much. michelle caruso-cabrera. pure storage wants to change the way companies store data.

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flash storage was the break through solution for large amounts of data. it is expensive. meet our next disruptor. his company is making flash storage affordable for mainstream use. joining is skolt dietzen of pure storage. scott, explain to us flash storage is what? tell us first off. >> well, thanks. it's a great pleasure to be here. there is a $15 billion spent annually on storage based on mechanical disk. it is now hopelessly mismatched

with the rest of the data center. they get faster very quickly. where mechanical disk is constrained because it's mechanical. so we have already seen this transition start on the consumer side where mobile phones is examine ipods are transitioning to solid state flash. it would allow business to get flash storage of the consumer systems in a package that would work for business. because it was cost-effective relative to the disk alternative. >> it's weird something starts with consumers and moves to business. usually it's the other way around. what held businesses back this time? >> so what held businesses back were two things. they weren't generating the same dollars that the consumer applications were that could afford to spend on the flash. the consumer sides embraced

weren't exceptable with the investments they had made. they had to spend a lot of money and rework their application infrastructure. what pure figured out how to do is just plug it in. buy it. instead of disk. it would frankly cost less than the the disk it was replacing even though it was dramatically faster. more reliable and simple. >> you're not the only company that plays in this space, correct? >> we're not the only company. we weren't the first to package flash for storage. what we did figure out uniquely was how to get flash into a place where it could be price competitive with disk and where you could just plug it in and replace work loads. we think that's the key to unlocking -- >> you make it similar and cheaper. >> exactly. >> i have a friend who said they are slower their their mechanic al counterparts, particularly in

the single level cell device. what can you do to overcome that? >> are you sure that's not your question? >> no, it's not. >> it sounds good. flash tends to be a lot faster. it's hugely faster to read. the gap it ryes is faster. there are things you can do to protect the application so everything the the application does is roughly the same as the read speed. that's another one of the innovations pure brought to market. can we deploy in a way that we hide some of its idiosyncrasies. you can't mix reads and writes well together. we found a way to unlock consistent performance all the time. >> who are some of your big customers? >> the biggest tend to be shy about talking. the technology has been embraced aggressively in the tech community, wall street, banks, hedge funds, large telcos and

the u.s. government. we have not seen the traditional early adoption pairier. we have agri business, manufacturing, state and local governments, high schools using this technology. because all across the boards, mechanical disk is running out of gas to meet the needs of the business. >> right now you have 170 employees and you're in several countries right now? >> we are. we set out to ebs panned internationally. we have offices in london, amsterdam and opened knupp tokyo and seoul with more to come. >> the biggest challenge you have? >> i would say the product is doing so well in the marketplace we're gratified at the progress to date but it just raises expectations, expectations of our own, of our customers, our partners, our investors. so the real question is execution. can we continue to hire people

and go out and market this opportunity? i would say it has not gone unnoticed, the changes we're adopting. we are seeing three of the big players in storage now decide t mechanical legacy and try to go off and craft something disruptive and pure. the our job is to grow our lead and their job is to catch up and we'll see how that competition plays out. >> do you have enough money to did what you've got to do? >> we've raised 95 million over four rounds and we still have all of our last round in the bank. we're going to start spending it for the overseas expansion. >> thank you very much. we really appreciate your time today. >> thank you. >> we wish you the best. >> coming up, several stocks on the move ahead of the opening bell. we'll get jim cramer's take next. tomorrow on "squawk box," arthur brooks will join us from the american enterprise institute. we'll talk austerity, debt and

stock growth. plus mohammed el-erian.

>> welcome back to "squawk box," everyone.

jim cramer joins us from the stock market. welcome back. i hope you had a great weekend. >> fabulous. i hope you did, too. >> it was wonderful. >> we were watching the futures and after what happened in tokyo, the sell-off of 500 points and some people thought there would be some nervousness and the end of the trading session on friday was messy, but futures have been up as much as 90 points this morning, so what gives? >> a lot of people felt there was excessive selling for program. i don't trust the futureses. the only thing i saw that was significant. i know you guys were discussing was the asco meeting and good news from bristol-myers. skin cancer, maybe perhaps people will no longer will die of skin cancer. these are remarkable findings that they came back with this weekend and this is the first ask. and the big farm as are playing and they have a big role. >> would you be a buyer of one of these stocks, and they come in and sell them down and the

dollar gets strong and the people say these are bond market equivalents and the fed will start tapering and it's a full scheme to pay up and these are places to go when the rates are done backing up. >> chrysler came in with their sales numbers up 11%, versus the nine. they're looking for big numbers out of ford. union pacific ships a lot of cars and said that autos were very, very strong this quarter. i think union pacific has a great pulse of things. moving oil back and forth is big business and these are really -- autos, oil and housing have been the mainstays of this recovery. >> we have other big stuff we should be watching for this morning? >> i don't know. we don't have many earnings. what we did have was amazing. it is a little guy, cracker barrel, but it does remind you that the consumer is spending. they're just not spending, i'd say -- they're spending, but very unevenly.

i'm wait for example $gen, and i think the autos will do well. >> love cracker barrel. >> although you have to take lipitor before you have the cheesecake with the ice cream on top of it. >> jim, thank you. we'll see you in a couple of minutes. >> honeywell chairmrirman and c larry bosswell. ream out loud ♪ ♪ boy, but i just bite my tongue ♪ ♪ this one's for the girls messin' with boys ♪ ♪ like he's the melody and she's background noise ♪ [ volume decreases ] thanks, mom! have fun! you too. ♪ ♪

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welcome back. let's get to our guest host, larry bossidy for the last word. >> you know, joe, i'm impressed with what we've done in the economy. i like what autos are doing and i like what i hear about housing. on the other hand, i would like to see more. the consumer was uneven in april and manufacturing indices were about 50 which were right in the middle of growth and not growth and i would like to see more from that. i don't think it's time to declare victory and i don't think we have policies that do that and choke off what otherwise will be a slow, but hopefully consistent and steady upturn over the month ahead. >> you've still got some stock, don't you? >> i think it's better at 15,000 than -- >> where else are you going to go in terms of yield? so i'm in e quites.

>> so if you did see that sell-off you were talking about you would be? >> i would buy. >> do you have more honeywell or more ge? >> i've got more honeywell. >> did you always have more or is it worth more now? >> i prefer not to answer that question. >> that does it for us today. make sure you join us tomorrow. right now it's time for "squawk on the street." good monday morning welcome to "squawk on the street." i'm carl quintanilla and david faber live at the new york stock exchange kicking off the first trading day of june with a small rebound off of that ugly finish on friday, the worst day for the dow since the middle of april. a busy week here. auto sales today, ism tomorrow, and job sales on friday. the manufacturing pmis are still contracting and germany at a three-month high and the nikkei, volatility continuing