cnbc. i'm becky quick along with joe kernen and michelle caruso cabrera. andrew ross sorkin is off today. we're going to start things off with the markets. stocks actually starting the month off with a winning session. the dow gaining back much of the losses that it's made on friday. you can see up about 138 points. it's a gain of nearly 1%. but the bears might take note that the blue chip index has been down in seven of the last eight junes. since 2000, the year 2000, june is actually tide with september as the dow's worst month of the year. today, of course, is tuesday. and as joe mentioned, that's been good news for the bulls for the last 20 session necessary a row. the dow has ended higher for the last 20 consecutive tuesdays and that makes the longest streak in history. i think by several weeks. i think we started saying maybe three weeks ago it was the longest winning streak ever. so we'll see what happens today. at this point, if you want to check out the futures, you'll see that at least at this hour, there are some modest red arrows. down 26 points for the dow

futures. s&p futures off by just over 2 1/2 points. in asia joef night, the nikkei was up by 2%. that's been the really interesting story is watching not only what happens for the nikkei, but what happens in the aftermarket hours, as well. as you can see, though, a gain of 2% there in europe in the early trading. you'll see at least at this hour there are some green arrows. the dax is up by 0.4%. similar gains for the cac and the ftse is up by 0.6%. we will have more from our colleagues in london and tokyo in just a few minutes. we've got market watchers all ready to tackle the day's tough investing questions, including david rosenberg joining us at 6:30 a.m. europe time. in the next hour, s&p's david blitzer and ed keon of. then coming up at 8:30 eastern time, mohamed el-erian will be joining us from pimco to talk about all of these things, as well. good morning. have we got those boards? yes, we do.

the wti, west texas intermediate is lower. brent is lower by 30 cents and gasoline is slightly higher. this has been the big story. this morning for the ten-year, the yield, 2.12%. highest levels we've seen in months as we continue to debate what bernanke said and what he meant. take a look. the u.s. dollar rebounding against the yen, back above 1 is 00. it is stronger against the yen, the euro and the bound. 1.30 is what it's going to cost you when it comes to the euro. gold, $1,398 per ounce. and time for the global markets report. ross westgate is standing by in london. first, though, we're going to begin maybe where we should. there's a lot of action at -- i don't know if i'd call it ground zero, but there's a lot of action with kaori enjoji. good morning. good afternoon. whatever. >> good morning to you, joe. thanks a lot. another choppy session for tokyo stocks. at the end of the day, the market was up 2%. a lot of it had to do with the currency. there was a lot of nervousness

initially because of the drop below 100. the dollar weakens across the board in asia. the aussie dollar, the south korean juan, as well. the currency pairs started to reverse in the afternoon session. trading volume also pretty big today. the big it's been in about a week. top performers sectorwise are the securities, like nomura. among the individual stocks, the banking stocks rebounding in particular over the last two trading weeks in particular. a lot of the focus, though westbound will be whag happening on weapons. finally, the japanese prime minister shinzo abe is going to announce the details of the so-called third arrow of this gross strategy. remember, there was two arrows also so far. one of them, fiscal stimulus. the second one, monetary stimulus and now we're waiting for deregulatory measures. the talk here in tokyo is he's going to designate special economic zones been as you know, there's been a lot of criticism.

the corporate tax rate is very high and try to win more foreign direct investment here into japan. it's going to be critical. this long process of deregulation if it happens for the government to boost revenues. as you know their fiscal position is quite dire. we've heard a lot about the third arrow already in terms of free trade agreements, trying to get more women into the labor force. but i think it's going to be crucial how he outlines this whole road map tomorrow. and i think that the people are talking about regardless of whether or not we get all the details tomorrow, the point is it looks like this government is set to stay because there's not going to be an election for the next three years after the one coming in july whereby his party looks like he's going to win again in a land slide. so that's really the optimists say the beauty of abe-nomics. as we happen, there's been nervousness about whether or not he can deliver on some of the dee points tomorrow. that is happening wednesday mid day in tokyo hours. he'll be able to update ow on

that in about 20 hours time. on the day, retail money coming back into the equity market here in tokyo. fairly steady trading in the jgb market, as well. on that note, i'll toss things over to london. ross. >> kaori, thanks very much indeed for that. we are up in european trade. down at the low levels for the session. as far as advancers outpacing decliners about 6 to three on the dow jones stocxx 600. we just bounced off the low of the session about half an hour ago or so. we are up, basically claug back the losses from yesterday. not quite, though, when you take a look at the individual boards today as far as european stocks are concerned. we're up around 0.6% for the ftse. the cac 40.4%. same for the xetra dax and ftse mib up 0.8%. we had new car registrations out of germany. down nearly 10% for the month of may versus a year ago.

also autos here, the worst performing sector as a result. even from the january to may period, down 8% on -- in general. that compares, of course, with that strong performance we got from u.s. auto sales out yesterday. volkswagen sales down 11% on a year ago period. the premium brands doing better. the likes of bmw and mercedes are doing better. as you can see, we are weighted to the upside. insurance and food and beverages having the best of it at the moment, as well. we had some, again, better data out of the uk today in terms of pmi, construction. gilt yields have backed up with treasury. ten-year gilt yields over here, also higher at 2.03%. the pmi construction again coming in better than expected, adding to the wealth of data out of the uk that's becoming better than expected. we don't expect anything from mervyn king's bank of governor meeting.

he's been outvoted by the rest of the members on that monetary policy committee. mark carney comes in next month, of course, to take over as the governor. he will only get one vote amongst the nine that are available. but anyway, equities firmer today, clawing back yesterday's losses. back to you. >> ross, qe. after the ism, i honestly think that's why we were up yesterday. >> it's ridiculous, looking for bad news. >> these guys main lining the hopium. in corporate news, lenovo is in talks with a potential smartphone venture. would you get into this business now if you didn't have something that was -- maybe a cheap, crappy -- >> oh, yeah, for us masses, you mean? >> i guess. because you aren't going to do better than sam sum, android or -- >> don't be a defeatist.

you can overturn anybody. >> but lenovo are not going to do it unless they steal it. the world's number two pcmaker gave no further details. lenovo might set up a joint venture with nec korp to focus on smartphone manufacturing and distribution. astrazeneca is dropping a rheumatoid arthritis pill after disatonighting trial results. it was being created with cooperation from a biotech firm. 13 months after carlisle's ipo, calpers is set to sell its 4% stake. shares of carlyle up 0.8%.

bank of america is settle case is open. bank ofmaker agreed to a settlement in june of 2011. 22 institutional investors entered into that settlement, but aig and others have objected, saying that the settlement offered them only a fraction of the money that they lost. the trustee, bank of new york mellon is now asking a new york state to approve the settlement and make it binding on all investors. the next one is a shocker. the head of the umbrella group for the world's central bank says the process of unwinding loose monetary conditions may not be smooth. the bank for international settlement warns this bis chief should be prepared. federal regulators have proposed a set of systemically important nonbanks. the officials want to designate, aig, prudent yanl financial and

ge. firms have 30 days to notify a government council that they're contesting the proposed designation. a financial would -- >> in other washington news, the treachery inspector general's report on the irs is going to be released today. we'll outline ow they squandered $49 million on travel and training. and for one conference alone, it spend $135,000 for speakers, including $11,000 for a happiness expert. some of the conservative groups targeted by the irs are going to testify in another series of hearings on capitol hill. you were never audited, were you? >> i was audited. >> i was going to say, if you have not been audited, they have not audited right wingers.

>> no. when i was writing my book my dad was like, are you crazy snm don't get audited. you'll do that. >> did you get audiences before of after. >> you reported from afar on turkey. >> yes. >> what makes -- what is the bau bar that our international core respondent -- >> travels? >> what is it to get above where you would have to go there to monitor? sdwlit needs to have some kind of market impact. >> there has to be video. >> tear gas is usually a trigger. or does it affect business. >> but turkey has not -- are you monitoring? >> i am monitoring. >> are you monitoring turkey

sfp. >> yes, i am nontoring turkey. >> what about china with the chicken processing? >> that's super interesting. we've tried to get to italy every time. the idea that still for over 100 years we've known that. there were situations we knew of. >> to go see some of the pork producers series and do like a 60 minutes -- >> a year ago, we had a trip planned to go and look at chicken producing and pork producing in china before modernization and after modernization. >> did they get below out by greece? >> i think i had to go to greece or italy. >> but now it's a big story because of smithfield and 16,000 dead pigs in the river. >> the chinese wanted to buy smithfield two years ago. >> but can't you go over and

they will wean seal wa -- >> oh, aifrs at a screen. i was at a personal screening last night for a movie. it me credit it to you. a heart thread pretty boy surrounding by creatures. great gatsby. >> i wondered if -- >> no, actually, vial and pretty boy and you're just watching this over -- no, world war z. >> that's what i wondered if it was going to be "world war z." >> brad pitt. >> it was originally going to start in china and then it changed it. >> i was going to go, but we had stuff we had to do. >> it's great fun. is it a great movie sflp yeah.

>> it's so fast and there's so many of them. they do a lot more twitches. it opens june 21st. i shouldn't be pitching paramount's movies. >> yeah, no, wrong company. >> i only go vista on the wrong tomatoes if it's 85 or above. >> rotten tomatoes -- >> it's an aggregator of reviews. if it gets 100, casino royale got 100. >> this is great fun. but unlike other zombie movies, you have to suspend your disbelief a little bit in certain places. >> don't tell me. don't tell me. don't tell me. coming, a jobs report so important that we are starting the countdown days earlier.

we're going to talk expectations number. first how does a penalty get more? the california coastal commission and parker have reached a $2el 5 million settlement how to pay for coastal conservation programs after he built a large movie set without proper permits. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience."

good morning. the dow would open by about lower 20 points. miking headlines, hilton plans to eliminate room as much this morning. one of the largest hotels in the city will offer gourmet takeout. fewer guests are said to be using room service and it is not profitable for many hotels. hilton's ceo says he expects other hotel companies to scale back or scrap room service. time now for the national weather forecast from -- we saw this gentleman yesterday, i'm always interested to see him. he's just guessing. there he is, eric without his jacket today, which i kind of prefer. >> what would surprise you?

what could i wear on the show that would mix it up for you, make it more interesting? >> chaps. >> i don't know how i would feel about a dress. a clothing consultant would be necessary because i've got some wide hips and you have to get the right shape. >> a line. >> thanks. we usually do this ourselves. would knew we could get the weather guy to cooperate. you know what? we will have some of our viewers what they would like to see you in. >> a call a twitter poll for this. we'll call a twitter online poll and we'll figure it out tomorrow. >> have you seen those guys that just wear a bow tie with no shirt? >> announcer: this squawkward moment has been brought to you by joe kernen. >> won what you're doing after the show, but that's not my flavor. let's move to the forecast. here in new york, we have 58 degrees. today's weather, these are the days you wake up for. the sun is out on. we're going to be talking about beautiful weather, 70s for new york and boston and d.c., 60s in

buffalo. we have a three-day stretch of nice weather here into the northeast. unfortunately, oklahoma city, again, we've got big storms rolling through, flash flood warning in downtown oklahoma city. it's not a tornado threat, but a lot of on lightning, a lot of rain. our thunderstorm watch is out from 9:00 a.m. so more big storms and more will develop this afternoon. so in terms of severe weather, we're watching the plains here especially from iowa and eastern south dakota. down into oklahoma. there may be a tornado threat later on, so that would be something to keep a close eye on. we're watching the tropics, it is june now which means we're in hurricane season. rain is starting to move its way into florida. lots of clouds. this area has been percolating over the last few days. so through the rest of the week, we're talking up to 5208 inches of rain, 3 to 5 for central

florida. on friday, this will start to move. so we've got this low. if it does get a name, it would probably be best a weak tropical storm. it will be named andrea. then it's going to track up the east coast. as we head toward friday and into saturday, we'll watch this. it may stay out over the water, become a hybrid storm, meet up with a cold front and bring rain up the east coast for friday and saturday. we're watching it. the bottom line is not going to be a hurricane, probably won't even make it to tropical storm status. >> eric, thank you. and we will let you know what the squawk viewers want you wearing tomorrow. >> i'm curious to hear what the response will be. >> @squawkcnbc. eric, look forward to seeing you tomorrow. >> i'll be watching. >> thank you. we will, too. folks, we are countsing down to friday's jobs report. joining us on set right now is bob brusca. also, david joy who is chief market strategist at ameriprise

financial. david, is this what it's come down to? all we can figure is the stock market went up yesterday because of the lousy ism numbers. is that what you think? >> i think that's how the market is behaving. i'm not sure that's what we should want. i think good economic news is what we should want, but -- and even though that will result in the fed trainering their stimulus, that's what you want. i mean, that should be the desired outcome here. i think it will still cause some volatility in the markets. i think maybe the fall is the earliest. but, no, we should want good news. >> i agree with you. i think this is kraet crazy to watch the market reacting. the ism numbers dropping below 50 and that means we're looking at a contraction in the economy. is that what you think is really happening here? should we not get too concerned by one number? >> it's a contraction in the manufacturing sector which is an important part of the economy. and, you know, it was last below

50 in november. other than that, you go back quite a number of years brit was lower than it was in this month. so we're concerned about that. one interesting thing is that the import component report was actually fairly strong, which suggests that domestic demand in the economy is actually doing a little bit better. so i wonder if it has been some pick up in the services sector that will compensate for the weakness in manufacturing. there have been some hints that maybe services might be doing better. that's the job producing sector. that's the theme that i'm looking for. is this weak manufacturing? are we going to see better services related to maybe that improvement in housing and other things in the economy? and that's really what i want to see, if that's going to play out. and we've got the job numbers coming this week, the nonmanufacturing ism coming. so we have some things to look at to see if that's true. >> service is a much bigger part of the economy at this point, too. >> they're a much bigger part of the jobs economy. in terms of output manufacturing is still pretty important. it's very small in terms of jobs.

>> four jobs on friday, what would be a number that you think we're likely to hit? is there anything -- i mean, if we're below 150, does that set off panic buttons at some point? >> i don't thinkably 150 does. i think if you get a number over 200, that's the thing that opens up people's eyes. we go, oh, that's impressive and it's different than we thought. numbers that are closer to 1100 start to get disturbing. that's not enough job growth. right now, the economic data has been ebbing and flowing and at the end of the week last week, we had that strong chicago in you number and we had a big increase in the university of michigan. you know, current condition and expectations indices in that report. and so sentiment was moving up very strongly. it's weak, but it moved up very strongly in the month and that was impressive and took people by surprise. >> but to the spirit of the original question, if we get a number below 150, could we see the stock market rally sharply on that? that would mean the fed is totally off the table, right?

>> off the table for much of this year. david lockhart was talking about how we shouldn't be doing it now in terms of tapering, but he thinks that conversation has to happen in the next few months. from your perspective as an investor, if we sell off because it looks like we're getting good economic numbers, would that be something that makes you buy? >> well, yes, it would because i think one of the big issues for this market in addition to the fed is what happens with corporate earnings and revenue growth? it was pretty weak in the first quarter. second quarter's growth rates will be less than the first. we're going to have probably a pretty weak second quarter earnings season when it comes around. so i'd like to see stronger economic activity so that the bottom line in the second half of the year can perform a little bit better. but as i say, i think the markets are a little bit confused by this. there are a lot of people who think we wouldn't be where we are without the fed and once they start to scale back, that we're going to give a lot of this rally back.

i don't necessarily agree with that, but i would like to see stronger earnings to feel more confident about that point of view. >> we also saw a big pullback in the dollar this morning. i think based on some of that news, too. bob, if you're looking around and trying to figure out who has the best economy and it's almost a beg thy neighbor situation once you throw the central banks in there. i don't know which side you'd come down on. >> our economy is doing better than most right now. japan is getting a leg up because of this export-led growth. china is still struggling and the european economy is appropriate for different things. but pretty much it's still struggling. so this is it. you've got this scenario that's kind of confusing. you have to remember that when you look at the fed, you have to be concerned about the fed's being in the manufacturing business. one of the things they do is they manufacture the viewpoint that they want you to consume in order to justify the policy that they want to engage in. and so this is why we watch the fed very closely. sometimes they see the economy a little differently than we do. they decide it's time to change,

they will start talking differently about the economy. and numbers that maybe looked weak a year ago may turn out to look better because the fed now is no longer worried .they'll start to point us in a different direction. i think that's partly what this taper talk is about. the economic numbers aren't better than they were. and the fed is thinking maybe that down side risk isn't there and they're going to see the bright side of the numbers and that's what you have to be careful of. when the fed starts spinning the numbers differently -- >> that's a very good point. you're wondering about them being effective. >> i don't think it's much less effective than qe right now. but i do think the fed feels that it needs to be seen as giving support until the market -- until the economy has gone over a hurdle to do better. and it hasn't gone over that hurdle yet. >> there was about 2,000 points where both bad news and good news was good. >> was good. >> that's when we thought the market was going to stay. then the minute they raised the specter of possible tapering, then --

>> now we -- >> now good news is bad news. but the ism was so bad that we're probably going to get -- we're probably going to get it back to where even if there's a little good news, so bad, anyway, that good and bad are both -- >> i think they are signaling that they want to be able to start moving and they're trying to prime the market -- >> but the numbers aren't cooperating. >> but i think that's right. the numbers are the same, but now they're spinning them differently. >> can i help you? >> way to help himself. >> are you trying not to be seen? that was good, mac. i think maybe we go back to that, you know, because it's obviously not going to be -- >> i don't know. you think if you get a lousy jobs report, i think that may be the case. but i think you need a big number. >> but then a good jobs report would help bus because we would be coming back from this possible gloom. >> a good number on friday, the market sells off. nobody wants to fight the -- >> i don't know. the fed, now people are thinking

tapers most likely. who is this? this is helicopters. this is euro. this is global. yeah, that's global printing. we've got the helicopter ben. helicopter ben, draghi, those are euros. >> nice. >> yours is a race to the bottom. >> mine is currency. >> oh, the drachma. that's weird. >> what, is it a greek deal? >> yeah, it's greek. >> thank you very much for coming in. david, thank you. >> you're welcome. coming up, he's a well known bear. david rosenberg makes his case for the markets and the economy, next. first, a little squawk sports news. the miami heat advancing to the nba finals for the third consecutive year. lebron james scored 32 points to help crush the pacers, 99-76. now as we head to break, a look at yesterday's winners and losers.

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good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and michelle crusoe cabrera. andrew ross sorkin is off today. joining us, david rosenberg. it's been a while, david. it's been a really long time.

and the economy has really been crappy almost the entire time. that's what you were saying last time and the time before ta and the time before that. is there anything on the horizon that makes you think that the light is finally starting to appear at the end of the tunnel? at least in housing, right? >> well, i think the housing story is already in the market. you know, the way i look at it, it's almost like a game of do know domino toes some extent. wa goes the ball rolling after the recession ended of course was the government sector. now at the federal level, austerity is the name of the game. and then we had the manufacturing sector, the renaissance taking over and now, of course, the ism index, the weakness in the overseas economy is starting to dampen industrial activity over here. then it was housing. that was the third leg. and housing has been in a recovery. no doubt about it. a lot of it has been led by institutional buying as opposed to the first time buyer. but we have had no doubt when

you look at prices or sales or how it is housing starts, a meaningful contribution from the housing sector. although i wouldn't be surprised if we started to see that level off, considering that mortgage rates were up 70 basis points. what's the fourth leg in the name of trying to be optimistic, which i am, is going to come down to the consumer. and my sense is that although the labor market isn't tight yet, it is tightening. i mean, the unemployment rate -- and no matter what unemployment measure you want to look at, it is coming down. lay off rates have come down. companies right now, because productively growth is so low, they can't find the skilled workers. they're trying everything they can to hold on to their existing staff. the hiring rates may not be very good, but the layoff rates are extremely low. at some point we'll see a wage response. then the question is going to be if we start to see the business sector start to share the spoils of the national income

considering that the consumer is 70% of the economy, considering that the business sector has a 7 35% savings rate, the 2% savings rate, i think the next leg in terms of would is going to carry the baton has to be the consumer and that's going be the key in terms of any forecast or 3% or better growth for next year. looking at how the game of dominos is being played, the consumer is going to be the part of the economy that carries the baton beyond 2013. >> as you said, that would take a tightness -- a tighter labor market because, you know, the corporate america is not -- you know, is not the red cross. they don't just decide, wow, we're not sharing enough of the spoils with the middle class. i mean, this has to be a competitive reason where there -- once again, you know, tahrir trying to beat their competitors globally and then to get the right workers then it would go up. so i mean, i understand the way it would work, but a tienting labor market would add that factor in, which would be good.

when you talked about housing just now, david, wouldn't you say given how low mortgage rates were for the past two years, even though housing has recovered, you would have expected even more of an upturn. is that because banks are still -- it's just too hard to get them to open up the coughers? and if so, why would it matter if it went up a point or so when you could get 3% mortgage rates not 4%, would it really matter if the banks were suddenly lending? >> well, you know, i think that the fed surveys are showing that the banks will willing to lend. of course, a lot will depend on the credit borrowing of the customer. we have very high rates of unemployment for young people. we have a $1 trillion debt problem for students. so the missing link in this housing recovery all along has been the first time buyer, which has been accounting for 30% of sales activity. whereas in a normal real bull

market for housing, that number is closer to 45% or 50%. so this has really been institutional related buying of homes that are then rerented out. and you take a look at what's happened in this housing recovery, take a look at housing starts and sales, prices, we know what's happening. but what's still going down is the home ownership rate. >> david, is that because the new people, the young people can't get jobs or they can't get a mortgage? >> it might be a combination of the two, but what's happening, i think at the same time there might be coming off the scars of 35% peak to trough plunge in home prices, housing was also viewed -- not just, you know, the american dream. that's a colloquial. but the house is always viewed as a bedrock, not just as a place to raise your family and entertainment, but also as your critical investment. the peak to trough decline was greater than in the 1930s. we had 70% of the population

owning the homes. in the 30s, it was 30%. this is broader. so i think the general psychology towards being a homeowner as opened to a renter has gone through a profound change in this cycle. >> i'd give you like a 9.9 for david rosenberg. aren't you? you have never been -- this is as happy and bullish as you've sounded in forever. so i mean, i think that says something. >> five years, eight years. >> let's round out the conversation after friday's payroll data. >> can't we just leave it at -- don't just leave it at that. we're not checking back with you. you are in a much better mood. i'm glad. >> no doubt. no doubt. >> great. good to see you, david. thank you. >> you, too. when we come back, we've got a different take on the markets. we'll be turning to the charts for direction right after this. but first, some more squawk sports news. the boston bruins now own a

two-game to none lead in the nhl's eastern conference finals. plus, boston beat the penguins 6-1 in pittsburgh last night. >> who? the penguins? >> yeah. the pittsburgh penguins. >> the penguins? >> yeah. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say?

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welcome back, everybody. take a look. right now, the u.s. equities are indicated lower. dow down by 38 points below fair value. it is a tuesday and we're going to be watching to see if the markets can pull off -- what has it been now, 21 weeks? this would be 22? >> i think so, yeah. >> 22 weeks in a row of consecutive gains on tuesday. not looking great now, but we'll see. anything can happen as we get towards the opening bell. also in our headlines today,

disney is raising its ticket prices. starting on sunday, a one-day adult ticket to either disney land park or disney california add venture park will cost $92. >> wow. that much? >> an increase by $5 been you've seep how the parks have been doing all the way around. kids tickets jumping $5 to $87. prices are also changing at disney world in florida and, again, parks have been doing very well. so i guess they figure at the time they can raise prices. >> what? i haven't been to a park in ages. i don't understand. >> i wasn't going to say that. she doesn't have kids. hasn't been to a park. that is right where prices have been. >> george bush was going to the super market -- >> you don't pay to go on the individual rides any more. $92 is where it's been. it's been up there. >> just to go to great adventure. great adventure here, it's pretty expensive. >> it's the pope with birth control. you have to idea what --

>> what they cost? >> yeah. no. why would you be to an amusement park? you've got your own adult -- >> no, anyway. >> good luck with that. >> technicals in recent trend line failures for the s&p 500, joining us on the set is jeff white. jeff, good to see you. >> good to see you. that was a triple toll breakout in those disney land prices above $90. i don't think there's any -- >> and it's worth it, too. it's worth it. >> the val proposition is pretty good. >> yeah. a lot of money. look at universal. >> it is hard. if you've got a family or five of six, it gets up there. >> he ya.the great -- >> is it extra to go and have dinner in the castle? >> yes. >> blackstone, comcast, nobody knew at the time. comcast was buying nbc for a specific reason. >> parks were up. >> parks wasn't the reason at the time. >> it's been a huge upside. and they're really well run, too. and i love them.

all right. how is the s&p doing? >> the s&p is doing well. we had a major breakout back earlier in the year. and we've done just fine until two wednesdays ago when we had what i would call a negative reversal pattern in the s&p. and that followed a test if we have the chart. >> i hear you referring to it. i keep waiting for it -- >> there we go. >> we'll talk more about disney ticket prices. >> this goes back to 2000. >> yes, well, what this chart is -- >> why is that significant? because we've been talking about it on this show. as of that thursday -- that was the bernanke day. >> the day that someone talked about tapering in the market. >> that's the march/april 2000 weekly close. that's a trend channel and you'll notice how lovely that line lines up from the 2007 highs. now we're above that line. so even though i think we have a near term top here, it looks to me like 1585, 1595 on a weekly

closing basis is fairly good support. and i would expect that if the s&p comes down and breaks 1600, it's going to be more of a temporary situation and what we have believed is a primary bull trend for the market. >> you sent is two other charts, right? >> yes. that was the number one showing support.. be let's take a look if we can, q, at the resistance. this is a dhart going back to november on r 8. notice the trend line which context the 2010 and 2011 and recent -- >> and we're below that. >> we are below it. every single high -- >> i should notice that. >> in the video, you can be a technician. but if you take a look from where that arrow extends from, november of '08, we're talking now 4 1/2 years. as a tech nimpan, it's not so

interested in the minute to minute and hour to our transition. if we get above that trend like and hold, that's when you think you get your next up. but for now, i think we have this upper 1600 s&p top on a daily closing basis. >> but bottom line, it's bullish, no sfp. >> bottom line bullish, yes. >> okay. >> that's funny the way -- all the technicals line up with fundamentals. it always works that way. >> well, the technicals, joe, and you know i'm not bias having done this for 37 years. the technicals precede the fundamentals. >> well, that just -- >> that wednesday was -- >> happened to be the day. >> you never know when the market -- well, let me put it like this. we know what happened in europe. >> it's a chicken and egg thing. >> who would have thought the s&p would have done wa it's doing going frurnd ,000 to almost 1700? and what could have possibly justified what the s&p has done since then? what justifies it is looking at the trends, trying to ride it

for all it's worth and always employ risk management. >> i thought waits printing money. >> and i can give you all the fundamentals. >> you don't even think about -- technicians. there's two kinds of people in the world. and technicians and fundamental guys, they -- you use both. fundamental guys -- >> no, i don't. i use technical. >> right. but fundamental guys -- >> because, joe, let me put it like this. say someone gets a margin call. can you say i own a wonderful company with an unxwrumted streak of earnings and dividend projections. >> by definition, the market is technical by definition. >> because stocks are discounting mcnimps, the technicals by definition will be ahead of what's going on. but then you can look back with hindsight and see what's happening all along and it makes

sense looking back. >> i can't look back at hindsight. you have to see the future and act before it occurs. and then i always add putting in some sort of risk management plan. >> looking back, it was that wednesday and you come in as a technician not looking at anything. and you go back to the same date that i said. a negative. but also when we had another, the question is once they come out, where's the stock and what percentage of the gain or loss has occurred. i'm still a technician, joe, despite your best efforts. >> you can be. it's like arguing whether -- >> you respect then with a good track record with the greatest integrity. >> as of wednesday, the possibility of the fed not being there, good news started being

bad news. and markets started getting a little rocky. >> now we'll see what happens. >> so the financial crisis occurred because we got were an overbought -- trim line, advanced decline line. >> nothing to do with some of the fundamentals that were happening. if that led to a temporary major bull move, do you sell out the s&p? >> say we're in a primarily uptrend. just like a surfer catching a wave, ride the market for all its worth. >> thank you. good to see you. >> this is to be continued, kernen. this is to be continued. i'm available tomorrow, kernen. still to come, veteran market matchers david blitzer and ed kion.

>> i think i'm making progress converting ed. >> really? to turn in a 21st consecutive gain, we have some work today if it's going to close higher. and arthur brooks wrote "a road to freedom." and senator marco rubio on immigration reform. the man who turned the the coin "sack" in football has died. played with the rams in the '60s and '70s. nicknamed the secretary of defense. he is ranked as the the 15th greatest nfl player of all time. he was young when he died. 74 years old. you make a great team.

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all right. there it is. dow futures down 28 points. if we were to end today higher this would be the 21st tuesday in a row of the dow actually ending higher. that's a record people have been watching. we have already been at record for weeks. these are modest declines at this point. when we come back, jobs, the economy, the fed and the markets. and then aei's president arthur brooks will join us on set. and the ceo of gulf oil.

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the bulls battle back. and this morning looks like more of the same. what to expect as we head towards friday's job report. taxes, immigration and the irs. how it's shaping washington with marco raoub wroubirubio. ceo's of gulf oil and choice hotels join us as we get ready for the official start of summer as the official hour of "squawk

box" begins right now. good morning, everybody. welcome back to "squawk box" on cnbc. andrew is off today. we've been watching the futures, and they have been a little bit weaker. dow down 27 points. s&p down 2.5. in our headlines, regulators are proposing oversight for aig, prudential financial and ge capital, trying to designate them as systemically important. none have yet decided whether they will do so. this move by the financial stability oversight council is reforms made after the financial crisis. the government is out with april trade deficit numbers at 8:30 a.m. eastern time. congress thinks it will come in

$41.5 million, up from march deficit of 38.8. fedex is raising its quarterly profit to 15 cents a share. it's a move designed to save ongoing maintenance costs. joe? >> bank of america will be back in court today in a case involving countrywide. will 8.a $5 billion that went bad. b of a agreed. aig and others have said they offered only a fraction of the money they lost. bank of new york melon is asking a new york state court to approve and make it binding to

all the investors. >> treasury inspector general's report will be released today. this is another report on the irs. the agency spent $49 million on travel and training. from one conference alone it spent $135,000 for speakers. including 11,000 for a happiness expert. you need to recognize it before you can destroy it. some groups targeted by the irs will testify in another series of hearings on capitol hill. the dow posted its best gain in a month. june is traditionally one of the worst performing months in a year. david blitzer is chairman of the index committee and s&p dow jones index. ed, we've been trying to figure out what to make of the economy. that is the driving force. ism was weaker than expected.

the market went up because they assumed the fed would be here longer. what's your sense on how we're doing? >> the economy is much stronger than we think. it has been hurt by two things. lower federal spending and state and local government spending compared to a year ago. as well as the sequester which further lowers spending. and the tax increase was 1% over gdp. that should have reduced economic growth by 2% or 3%. the fiscal drag, which will be good news in 2014. but for gdp only, for whatever your philosophy is about how big the government should be, this year that one-two punch has slowed down overall gdp growth. the underlying private economy, where the real wealth is created is growing faster. i think as that fiscal drag

eases going into 2014 you will see overall u.s. economies start to grow. >> i think i agree with you. but when you see a number like the ism, that's not manipulated by the government. it doesn't have anything to do with taxes. plus, you have jobs. >> right now we have -- things are still weak in europe, slow in china and other place in the world. it is relatively modest. the consumer sector is actually growing at a much healthier rate than you think. >> david, you agree with that? >> yes, i think i do in general. certainly the fiscal greg has been quite sharp and quite severe. and the fact that we're still growing, even at 2.4%, given the the fiscal drag i think is quite

impressive. behind that, at least nobody in washington will admit is the deficit has come down. near term outlook over the next few years in terms of deficit divided by gdp looks stable. it really looks good. we have all this hot air in washington. that's probably what's behind the stock markets. good track record. >> do you think we need the fed at this point? >> it has a profound effect, no doubt about that. but we know they're going to taper at some point. this policy can't lost forever. at some point, later this year, early next year, they will go to a -- will start to move to a more normal policy. the reason they're changing is the overall economy is stronger. when you look at markets you have to not just look at the fed itself but the fed relative to

the economy and earnings and evaluation. >> you said as long as they're doing it for the right reason. bob was here earlier and he raised the suggestion that the fed will be looking at the same sort of so-so numbers and changing their mind and changing how they are looking at those numbers so they can in turn start to pull back a bit on qe. they are looking at that before they can move on interest rates. some of the 85 billion they can pull back before we hit some of the numbers. >> if they are going to pull back, would it have a negative on the market? of course it would. >> if the fed starts to do less -- >> i'll tell you why i say this.

i made the worst call of my career in the beginning of 2001. if you look back and said every time before that the fed unexpectedly cut rates in the market and did great six, 12 months out. how does the fed influence the economy? if economy is doing well, inflation stays lower. i think the markets will be fine. >> so, david, does that all sort of add up for you? if the fed is moving for the correct reasons, do you think that's actually what does happen? >> that is the right direction. but we spend far too much time trying to read the tea leaves.

let's step back. truth of the matter, the last several years bernanke has done fantastically well. we would have had a much, much worse recession, if not depression without the fed. let's not try and second-guess them every two minutes. at some point they will change the policy. at some point they are going to stop the qe3. let's not worry about whether it's today or tomorrow. recognize it's not very soon. it's going to be a while. we know exactly what numbers they're watching. let's dig into the rest of the economy what's going on with this sector, that sector. then i think we will understand the the dynamics of the market instead of this tea leaf reading that seems to go on forever. >> it probably unnerves people. we thought we were doing okay.

we thought we were coming out of this. and the ism is a little frightening. >> the ism, like a lot of statistics, subject to revisions. back in february we all got very upset. the job growth came in 88,000ment a month later revised about 150,000. it takes more than one point to draw a trend line through. you need a bigger picture. i have yet to meet somebody day by day, week by week and makes money at the end of the year. you can't predict too much noise in the economy. let's understand where it will be 6 to 12 months, not 6 to 12 days. >> broadly you say the bull

market continues. >> there's been a rotation. the low volatility, high dividend stocks. >> the stuff that looks like bonds. >> that's right. >> you have seen a rotation in sick cal areas for cyclicals and industrials. we're moving in a more optimistic direction. and i think that will continue in that higher beta stuff will ultimately perform better than the lower beta stuff for the rest of this year. >> david, thank you. we appreciate your time. >> thank you. up next, american enterprise institute president arthur brooks doing the walk on "squawk". politics, free markets. he joins us the remainder of the show and then later, oil prices staying steady in the low 90s. why aren't gasoline prices

lower? ceo of gulf oil. and all this leads up to our interview with senator marco rubio. tax incentives, immigration and more with in just a few minutes. ♪ 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. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪

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we have been watching futures. down 35 points for the dow futures. s&p off 3.5.

we're also keeping an eye on shares of dollar general this morning. that retailer came in with estimates for first quarter profit 71 cents a share, excluding certain items. the company is citing kwrul year guidance below expectations. growth is slowing. jim cramer said stock is down 4.8%. to our guest host this morning. arthur brooks, american enterprise institute president and author of "the road to freedom, how to win the fight for free enterprise." also "the battle." you haven't been on with us since the election. >> that's right, joe. >> we are used to ebbs and blows. we're in a period where the other side has the gop and

conservatives on the run. >> yeah, so they think. >> the party -- i don't know whether -- and you're not. >> i'm an independent. >> i'm not saying you are -- but you are a limited government. >> free enterprise. absolutely. >> private sector. earned success versus learned helplessness. >> well done. >> it's a slippery slope, obviously. we know the current movement had been towards a more european style safety net and cradle to grave. suddenly it has shrunk a little. austerity -- democrats talk about it with a sequester. and don't give any credit to the sequester in lowering the deficit.

neither side gives any. in spite of themselves we have done a little bit better in terms of spending and growth of government. >> that's true. here's the big threat we see right now. this is going to come back to bite the democrats and be one of the big reasons there could be smiles for republicans come 2016. we see the the beginnings of european style austerity. we're a social democracy already. look at the data. now we see we're trying to get a lot of fundamentals under control. trying to control the the growth of the state. we have to go into some sort of austerity. here's the the fundamental truth of austerity. it always hurts the poor. this is what always happens. the rich will be inconvenienced. but the poor are always hurt. we will see more people with learned helplessness. fewer people with impossibility by 2016. >> kropb whether that's going to be true. a lot of posturing with the

administration, in spite of even trying to make progress, it's making sure we paint all the republicans into an obstructionist corner. they're there. >> here's what the republicans have to do. they have been talking about the what of politics. we limit government, lower taxes. we want more economic growth, lower regulation. that's a what, what, what. how do we do it? republicans are in the minority. therefore the why is kind of implied. because we have to fight against things. they need to start with the why. we fight for people. vulnerable people who can't fight for themselves. how do we do it? compassion towards vulnerable people. real fairness. it means earning your success. merit, hard work, innovation and opportunity. what do you do under those circumstances? you have the kinds of policies that republicans have been talking about all along.

but if you start with the why, like the the democrats have, fighting for people, you're going to turn this around. >> and it was said many times growing the number of people that you provide this great safety net for, growing them and then providing an even greater safety net it's not the end we're trying to do. you don't feel virtuous. >> hooray! more people on food stamps. >> many more. and social security disability. we're at record number. participation in the workforce. >> you said something that struck me. on the front of the wall street journal. suggesting business and individuals are less likely to take risk and more prone to thinking they don't want to take a job because they're afraid of

what happens. >> we have undergone a horrible -- >> it's rigidity. here's another fundamental trend, the most alarming of all. we actually have two recoveries in the american economy today. at the top half, unemployment falling. unemployment really low. wage inflation, housing price inflation, luxury good consumption. you look at two quartiles. falling purchasing power every year for five years. ridge i.d.ity where people don't even want to lose their job. >> isn't that half? >> that's half. >> you're good. >> half of the economy is seeing nonrecovery. >> what is that? how do you change that? >> with real opportunity policy.

instead of this tphop sense going to a more democratic state. if we want to be spain, we're on the right track. it is great if you want to be the the person who barely gets by and doesn't work. you can do okay. if you like making 800 euros a month and think you can get by because you're 35 and living with mom and dad, that's fine. that's where we are going for the bottom half of the economy. on the other hand, think about it. a lot of us started out in the bottom half of the economy. if we're not going to pull the ladder up from behind us, those of us free enterprise advocates better come up with ideas not about how to help the top 10% but how we help the bottom half. that does not mean more of a social democratic welfare state. >> growing the bottom half and helping them -- we would like to

help them be socially mobile. >> i keep waiting for ronald reagan to arrive. >> they think people will spontaneously come across these concepts. this is why we need a warrior for those who are vulnerable using truly conservative principals. >> we had eric cantor in here. we talked about a lot of things. i asked about gay marriage. i heard free enterprise, gay and business. they couldn't vote. why do we not have these people -- when we went off camera i said the one thing republicans should be talking about is free enterprise. all this other crap that gets in their way that alien ates people, we want jobs, we want to raise the standard of living for

everyone. and they get bogged down. >> they get confused. they don't want big government. yet when you have in vasive social policies, that's big government. still to come, summer travel preview. stick around. "squawk" will be right back. time for today's aflac trivia question. which nhl team has gone the longest without winning the stanley cup? the answer when cnbc "squawk box" continues. enses while he c, 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. which nhl team has gone the longest without winning the stanley cup? the answer, toronto maple leaves. they last won in 1967. shawn parker's lavish big sur wedding just got more expensive. they reached a $2.5 billion settlement to pay for coastal conservation programs after the he built a movie-like wedding site in big sur without proper

permits. he married saturday with gowns and sets made by a designer for the "lord of the rings" film. it was without permits. it was okay to do it there. all right. questions, comments. got to pay the fee about anything you see here e-mail us @squawk @cnbc.com. so you want to beat the heat with a road trip to the beach? well, it's going to cost you. prices at the pump. at the top of the hour, former g.m. executive bob lutz joins us for the repharpd of the show. so buckle up and hold on. "squawk box" is just getting started.

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welcome back to "squawk box", everybody. in our headlines this morning,

calpers is selling 4% stake in carlyle. it made $175 million for its stake back in 2001. it went public last year and the stake is now worth $373 million. also, auto leasing hit an all time high during the first quarter. it accounted for 27.5% of all new vehicles financed. consumers who borrowed to buy a new car are doing so for a longer time. 19.5% were done with loans of 6 to 7 years. a much longer time frame. general motors is returning to the s&p 500. stock will be added to the index after the close of trading on thursday. g.m. is replacing hj hynes. michelle? should consumers be preparing for the usual pain at the pump or reprieve for the road trip season?

joining is gulf oil ceo. good to see. >> you thank you, michelle. >> hey, i keep hearing about we are at record levels of oil in america. we are producing natural gas. we're doing all this energy we didn't do before. why isn't gasoline cheap senator. >> it's going to come down. in certain areas it is cheaper. the midwest is 70 cents over the east coast and almost a dollar over the gulf coast. >> why? >> lack of infrastructure to move the commodities from where they are to where they aren't. we're relying to much on rail to move crude. you know, for example, we're moving crude 2600 miles to the canadian refinery in st. john's where we buy a lot of our product. it's just a much more expensive movement than if we were to move by water or by pipe.

>> and the reason we're not doing that is because we don't have the the keystone pipeline, for example. >> sure. we don't have the big east/west pipeline. we have the jones act from 1920, which restricts vessels moving port to port to u.s. flag only. which makes no sense to have the law in place for 93 years and not review it. >> that would be government. tell me about demand from where you see it. >> demand -- we have several things happening on the petroleum front. demand is soft for das lean. we'll be down 2% to 3%. part of that is cafe standards. we now have, i believe, over two dozen cars that get over 45 miles a gallon. >> cafe standards are saying your fleet has to have a certain mileage per gallon over all.

and they've been raised shed steadily. >> every time someone buys a new car, replacing an old car, you're improving efficiency. there's a demographic shift in the united states also that we're seeing less driving for shopping and much more online shopping. it is flat to down. mile standards are up. in certain sectors like heating oil, it is crashing the floor. >> how much of a decline in heating oil demand? it's pretty dramatic, right? >> 13% to 20%. >> from last year? >> that's right. >> holy smokes. >> natural gas is taking almost all new construction. and there's probably as many as 12% to 13% conversions from oil to nat gas. nat gas is simply cheaper. that's why we as a company are

morphing from downstream distribution on the gulf side to natural gas and electricity. we're in those two markets in the distribution of those two markets. we don't want to rely on petroleum products. and there isn't a retailer out there who isn't trying to drive people inside the store as we are. we spent over 100 million dollars in capital to focus on healthy food. >> clean barmes. you have to have really nice bathrooms. >> you absolutely do. >> you you pick a gas station based on -- >> men will walk into an open sewer as long as you can aim somewhere and don't have to touch anything. >> without getting into the

physiology, it's different for a man than it is for a woman. >> so i've heard. >> what about this talk about raising the gas task? they're going to build all these wonderful things, joe, for us on our behalf. do you think that's a good idea? >> i would be against it on a per gallon basis because i think it's regressive. it hurts people who pay the least. i would be much more in favor, if you're going to try to raise money, put a tax on the weight of the vehicles. now that i've lost a lot of weight i wouldn't even mind including the person on there. but tax the weight of their vehicles rather than per gallon basis. because if you're trying to encourage people to buy lighter cars, much more efficient cars, it may put a strain on the road.

>> how much do you lose? >> over 100 pounds. >> atkins? >> no. doing everything different than i used to do. eating healthy stuff and eating less of it. surprising. >> you must be running for office. >> you had a health scare, joe? >> i'm trying to get chris christie to make me secretary of energy and his nutritional counselor which would save in government if i could do both roles. >> we will talk about him in a second. a lot going on down here in injure, as you know. >> i like chris christie. i met him last year. i realized he was 54 short and i was 58 long. and i decided i had to lose some weight. >> coming up next, senator marco rubio on immigration, taxes and the state of the economy. and summer lodging with

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one of the principal architects of the immigration bill told his constituents that improvements need to be made. joining us is senator marco rubio. if you're part of a gang, right there it's the wrong -- there's got to be a better name. it's going nowhere if you're a gang of eight. senator, thanks for joining us today. appreciate it. >> thank you. it can't even get through the senate as is and then you have to do the house. what are the chances we ever get this done. >> the bill we have now is a good starting point bill. it has a lot of good measures in it. that being said, our goal is to pass a law, not just a bill. to do that we're clear what we need is to make some additional

improvements to border security. we're going to have to work on that. this is about not just passing a bill. this is about passing a law. we need the votes to do that. that's what it's going to take. >> that would appeal to maybe more to this people on the right. a lot of these people are not going to vote for anything that barack obama would sign. >> well, first of all, it's not just republicans. there are a handful of democrats who say they can't vote as well. not to mentioned entire u.s. use. we know that we have to do that already. >> how about the number of people, though -- >> as you handicap it, senator. do you think it can get through the house ever? >> i do. i think the vast majority are prepared to do immigration

reform as long as we ensure this problem never happens again. >> you have taken your lumps. even your chances for 2016. what do you think christie will do? >> he will do the right thing. appoint someone that represents the state of new jersey effectively. >> is anything changing in the party that you can see, senator? you remember the primary season the last time around and how far to the right romney had to move. he never recovered from that on immigration and other things. and you've got a party that, by definition, seems to move people to the position. >> let me say i think the the principals of conservatism is about playing time tested

principals to the modern day 21st century. government has a role to play. government's job quite frankly is to make it easier. >> to joe's point, there are people within the republican party who thinks president obama doesn't want immigration reform to pass. they know the far right isn't going to allow that and the thing will be dead in the water instead of agreeing on things they know everybody will agree on. >> we will come out with the bill with the largest amount of support as possible. even if we didn't have a single illegal immigrant we would still need to do immigration reform. we need to deal with the people now here illegally because they're not going anywhere. we are going to try to do that, at least i am, in the most responsible way possible. ultimately the president will have to decide whether he wants to sign that or not.

i suspect he will. our job is to pass laws. his is to decide whether he wants it or not. >> one of the interesting things is the democrats are dining out. they say, look, you have to get your act straight and figure out whether you're more racist or more greedy. that's how the democrat is portraying this thing. you are trying to say, look, this is a compromise not between racism and greed but compassion and fairness. can you talk a little bit more about the fairness concerns and how you can handle them with compassion. how are you trying to frame that? >> three things. we need an immigration system that's good for family. we need to recognize you have 11 million human beings living in the united states illegally in violation of our immigration laws. but the vast majority have been

here longer than a decade. some have children. they're not going anywhere. we have to recognize they are human beings. these are people with real stories, real lives, real families. most of them want to be americans and contribute. some won't be able to stay. they haven't been here that long. they have committed serious crimes. if they go through the consequences of violating our laws, we should give them a chance to become americans. our sovereignty depends on being able to protect our borders in a reasonable and organized way. that's important as well. if we do one without the other two, it doesn't work. >> when you talk about border security, more specifically, a wall, more border agents, everything in between? >> all the above is absolutely right. obviously you don't need a fence everywhere. there are places where technology works better. manpower works better. we're engaged with the border

agents and talking about the improvements they want to see. and e verify, that's the magnet. what's drawing people by and large is the jobs available for them. they're coming. they need to ensure we make it harder here in the future to take that were magnet. it's a multilayered approach. it all works together. >> how do you get the far right to come with you on point number 2 about people who are already here. it's rewarding illegal behavior? >> i think conservatives are split. many are prepared to accept the fact and accommodate 11 million people. >> a lot of them have said it out loud. >> there's always going to be opposition. sometimes they raise very valid points. >> the devil is going to be in the details in all of this.

what is the appropriate time, appropriate point. do you think you can coalesce around some of the ideas that are already out there. >> look at the agricultural workers program. that was good measure that was taken. look at what happened with the the path people have to go through. >> should a family be split up and gone back to the country they came from. >> that's not what the bill comes for. undergo national security criminal background checks, pay a fine, start paying taxes. if they do all these sorts of things they will be given a provisional status. they will renew it once in the 10-year period. after it elapsed they're able to apply for a green card through the normal process. >> we didn't even get a chance to talk about the scan tals and the irs. i can't wait for the irs to implement owe bam a ma care. >> we will leave it largely out

of the immigration bill. >> the real business of washington, it's crazy. you're definitely going to stay there for a while? >> i'm not ready to leave yet. this is a big country, the most powerful country in the world. we have to be able to handle multiple issues. >> we should. >> he's legally in congress. >> i would like to talk to you about arthur brooks. and talk to him. aei. you've been harassed 40 years. >> 40 years of harassment. >> as a conservative group. so it's nothing new. >> now people will call you mccarthy. there's nothing there. anyway, senator, thank you. appreciate your time. i wish we could do this so we could get to other business of

the day. thanks. >> thank you. coming up next, the ceo of choice hotels talks about summer lodging trends.

welcome back, everybody. we are in the first inning of the summer travel season. steve joyce is ceo of choice hotels international. he joins us with his outlook.

steve, what are you expecting? are americans going to be on the road this summer? >> the great american road trip is about to kick off. 83% said they will take one trip, up from 78 last year. half said they will take more than one trip. >> and those trips are going to be taken by which income bracket? people think they're going to the parks? park tickets are going up in price this year. >> parks are big. what's happening today is because of people looking for valley, more and more customers who may have stayed at a more upscale hotel before are looking for us, free wi-fi, free parking so they can spend money on the park tickets or an additional meal for their family. >> what does that still you about the economy? >> people are growing more confident about their jobs and companies. they are hitting the road. they are taking a vacation they

deserve. on the other hand, they're looking to make sure they get value for what they do. they're still in a cautionary mode. >> comfort, quality, and sleep inn. you have been trying to refurbish as you go along? >> we have a major thing for comfort. iconic brand. we waited a little bit long to upgrade the look and feel. we have a terrific new product. we're in a hurry to get it out for our customers. we're spending $40 million to help the franchisees. the consumers have have seen it already love it. >> it's difficult to take one of the brands and refurbish while people are still going. how quickly will it be done? >> we're shooting for two years, which is quick for a couple thousand hotels.

the sooner the better obviously. yeah, you're right. particularly with today's connectivity. a customer that doesn't like the experience is likely to tell a lot of people. that hurts everybody in the brand. we're working hard to make sure all the hotels represent us well. we think we're making progress. we'll have it done in a hurry. >> what do your chan franchisees tell you? >> they are worried about taxation, health care or positive immigration outcome. they want to make sure the government is helping them create jobs and not preventing them from doing so. >> i have a question for you. this is arthur brooks from aei. we are hearing there's a lot a problem with government. the problem is demand. you're saying the opposite. the problem is that the

government is encroaching on businesses. that's bigger than demand? >> demand for us is up. the impact is significant to our employers. right now most of our franchisees are in subss or partnerships. they're getting hit from both sides. profitability is going up because revenues are growing. at the same time it is forcing a much bigger slice to go other places -- >> but health care reform was going to make health care che cheaper and more affordable. >> not for anybody i know. we have yet to see a fall season when we see what the rate hikes will look like, which will have a i negative impact over y'all. for the the hotel industry, i think we're in for a good run.

look, the american public is going to get out and travel this summer. the back end looks even better. stkpwhrf you're talking about national parks? steve, thank you very much. thank you for joining us. >> coming up, former bob lutz. ceo of auto nation talks sales ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients

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. the dow reporting its biggest single session gain in a month, but will friday's employment report be a game changer. squawk goes behind the wheel. our guest host for the hour is bob lutz, former chairman of g.m. we'll ask about leadership and his push to by fisker automotive. the third hour of "squawk box" begins right now.

our guest host arthur brooks. becky has your morning headlines. start things off with the markets this morning. stocks beginning the month with a winning session. dow gaining nearly 1%, gaining much of the ground that it lost on friday. the blue chip index has been down in seven of the past eight junes. it is tied with september as the dow's worst month of the year. today, though, is tuesday. that's been good news for the bulls for the the last 20 sessions. it's been 20 consecutive tuesdays that the dow has closed higher. if you look at the morning -- this morning, the futures have been indicated a little bit lower. will it make it 21 in a row. s&p futures off by just over two. tell us if you think we're going

to break this streak. vote at squawk @cnbc.com. in asia overnight, japan has been interesting to watch. up 2% yesterday. 271-.gain. it has been driving some of the activity here. europe, they are indicated just barely higher. cac up 7.5 points. we're also watching shares of dollar general. the company came in with estimates of first quarter profits of 71 cents a share. that was in line with expectations. excluding certain items. with revenue also in line. calpers planning to sell its stake in carlyle.

shares have risen 34% since the ipo. aig, prudential and g.e. capital systemically important. none have decide whether they will do. the move is reforms made after the financial crisis. dow logged its best one-day session in a month. stock prices performed a levitation act in may. we have cantor on. barry knapp a lot.

>> you are seeing mid double digit returns for the year. >> right. >> is that where we are or lower? >> where we are right now. >> what was your target at the beginning of the year? >> 15.95. then we raised it 16.50. it was based on looking at multiples and what multiples could trade at in a low inflationary environment. >> so you were close. >> we were fairly close. we expected a 14% total return at the beginning of the year.

>> surprising. >> it drives an 18% rise in prices. the quality was really nothing to write home about. >> does the fed eventually affect the economy? >> well, look. has the created any jobs?

we're nowhere near getting back the jobs lost in this recession. you know, have they scored well on that point? i would say no. i would give them an in complete. a for effort, though. >> you're surprised at the lack of volatility too. that's fed too. >> the singularly most unrewarded exercise this year is calling for a correction in the market. >> right. >> volatility has been remarkably absent. if you look through the lens, probably 13 this year. a couple of spikes up to 18. that's really nothing given everything we have been dealing with, whether sequestration and taxes and the like. for it to be as why else epbt as it has been, nothing short of remarkable. we started to pull back.

>> does it go up or down? >> we're in a perverse sector right now. >> everything is aligning for what you're saying. >> it was going to be the near time tops. if it all makes sense that the fed is not going to be there without the tapering maybe we have seen the games for the year. >> don't you think it's interesting we make a big deal out of conversations about tapering? >> when they first thought about 85 billion a month, i thought, you're out of your mind. you can't do that. in the first place i thought it was insane to do it in the first place. >> it is the new victorian parlor game of 2013.

we should get all three of you guys. barry knapp doesn't pronounce his "k." why leave it there? >> the e in your name. >> oh, yeah. >> bob lutz is a board member at via motor and former general motors vice chairman and former chrysler president and the author of a new bob "icons and idiots." bob, thanks for coming in. >> thanks for having me. >> the new book basically implies these are one and the

same. >> yeah. people tell me of the people you described, senior executives i've worked for in my 40-odd-year career, who was an icon and who was an idiot. the point is almost everybody that i describe is a little of both. >> where does it blend? >> i describe a number of ceos with real odd traits. stealing stuff from hotels. really odd behavior when they weren't actually on stage acting as ceo for the company. yet in the final analysis you have to look past the that and

see what have they done in creating shareholder value. >> nobody is perfect is kind of the message. >> nobody is perfect. look, it takes a certain kind of personality, type a personality, extreme self-confidence to be a senior leader of a large organization. >> there are a number of cases -- for instance, one former ford ceo, he desperately needed the trappings of power.

we talked about lee iacocca in the book. a person who, in many social situations was really quite shy and had a level of insecurity that drove a lot of his almost seemingly unusual behavior. but the people inside the company see it. so the the book is loaded with funny anecdotes. people say it's influential, a quick read. it imparts leadership questions instead of a bunch of leadership rules like books usually do, this is kind of examples of dos and don'ts. >> who is the person you learned

most from? >> that's interesting. the person i learned the most from was also in the book. my high school teacher in the french part of switzerland. he was in his late 40s. maybe late 30s. he looked very old to me at the time. and i said this is just way too smart, way too well rounded to waste his life as a high school teacher. years later he was president of switzerland. >> bob, question for you. you're talking about business. i'm dealing with politicians all the time. might be the chief executive. same deal? do you get a sociopath, tphars sift, somebody with real personality traits?

>> well, i hope you don't -- i think the history of strong leaders, especially. joseph stalin, adolf hitler, chavez, et cetera, et cetera. mousse leany. i think the history of dictatorship is people have an absolutely exceptionally brilliant side but there's also a path ol' that can be very damaging. >> can we cultivate visionary leadership among normal, well adjusted people? >> probably. >> can leadership and creativity and drive be taught? you can take a person who doesn't play the piano at all and teach him to be a moderately

good player. but you'll never get a person who isn't gifted in music to be a great player. it's the same in leadership. i think leadership personalities are always with quirks. some are normal, stable, predictable. they don't drive change. they may be comfortable ceos to have for the board. i find they don't get a lot done. >> you went on the bill marsh show. >> yeah. >> why? >> i like being lashed. >> do you like -- the left went

crazy. you're a flat earther. i'm a former marine officer. >> you can be ex commuted. >> bob lutz, arthur brooks will be with us the rest of the show. stick around. coming up, america's largest retailer out. mike jackson will join us next. strength in truck sales. there's joe. still ahead, much more on the fed and the economy as we count down jobs friday. [ male ] here's a word you should keep in mind. unbiased. some brokerage firms are. but way too many aren't. why? because selling their funds makes them more money. which makes you wonder -- isn't that a conflict? search "proprietary mutual funds." yikes! then go to e-trade. we've got over 8,000 mutual funds, and not one of them has our name on it.

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welcome back too "squawk box"ment making headlines. salesforce.com is buying exacttarget in cash for $2.5 billion. companies including coca-cola, gap, and nike use exact target

to management. it's paying off for nike to stick by tiger. now he's going to stick with him. >> it's on 1,000 acres. we will be like this. all the suburbs. right in the middle of a suburb. >> in america you can reinvent yourself. we're a giving nation. you have to stick by people. auto nation says sales increased 11%. joining us now from pleasantton, california, mike jackson. good to see you. >> michelle, good morning. first i want to assure you i

have none of those quirky idiosyncrasies. all my people will assure you i'm absolutely perfectly normal. let's get that out of the way first. i look forward to reading your book. >> thank you. >> truck sales up 17%. housing is having a very strong recovery. 15% increase in sales here in california. so auto recovery continues. >> i want to ask you about that. >> i think i interviewed you a couple times at the height of the crisis. if we sell these number of cars the entire year, we're going to get to x number of cars per year. i saw the numbers. 15 million potentially for this year. could we revel in that.

remember the 10 million year how awful. is this normalcy, finally? >> we're on to something greater than 15 million units. the difference from the last time we were at 16 and this time we're at 16, and bob will verify this. in the old days the industry needed 16 million at the manufacturing level to break even. it's a completely new industry. and the kadens is faster today than it was back then. it is real. it's real in detroit. bob lutz brought his magic and

emotion to the product size. yes, michelle, you're absolutely right. it is bigger and more exciting. >> mike, you're very sweet to say the auto industry reinvented itself. arthur, when we went through the whole process of reinventing the process, what did that mean? breaking control of the union. >> management structure, labor. a lot of organization that had to change. unfortunately that's what the private economy is supposed to be able to do through market signals. is that right, bob? >> yeah. but what really happened with the american automobile companies is they were driving legacy costs.

we were talking about changing benefits because it was 7 billion off the top just for health care. what company can survive that. george w said as far as i'm concerned a contract is a contract. they signed the contract. they should honor it. we got no solace from washington whatsoever. what you and michael say is correct. but the difference between the 16s and 17 millions we used to see is a lot of that was purchased through very, very heavy incentives. sales numbers were there, but the quality of the sales were lousy. today if you look at the aggregate margin. >> mike, great to have you on again. >> great seeing you this morning. >> you got up early for us.

>> i would do anything for you guys. >> 200. this is 110. >> all right. >> when we come back, international trade data set to hit 830 eastern. and el-erian will be joining us. [ male announcer ] with free package pickup

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stick around. breaking economic numbers. we are minutes away from the trade numbers for april. a $38.8 billion. stick around. we'll be right back. you've known?person we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

welcome back to "squawk box". we are seconds away for trade data for april. rick santelli is standing by at the cme. what are the numbers, rick? >> trade balance is a deficit. surprise! minus 40.3 billion. that is a little bit better than we were expecting. however, last month 38.8 deficit. revised to 31.7 deficit. actually now becomes the smallest deficit going all the way back to january of 2010. but we do now currently ramp that back up to 40.3. so to give you a little historical perspective there, interest rates continue to be in a very tight range after they

escalated. we're hovering in the low two teens. dollar index has really gotten trashed the last couple of days. it has stabilized. dollar/yen back over 100. they may be the canary in the gold mine. >> looks like it's for good reasons. i see here that exports of goods were higher. imports of good also higher. so that's also a good sign. i'm looking at the petroleum. a lot lower. i have to figure that out. that is a funny report in the following way. the trade deficit subtracts from growth. this is structured with so much in import in the way of consumer goods. sometimes you look at the rising trade deficit. increased imports as a sign of

economic activity. what it ends up being is retailers are buying more in expectation of consumers buying more. so one of the things we saw yesterday was an increase in the ism with a question whether there was involuntary. that was something you don't want to see. by the way, a lot of talk about that ism yesterday and the manufacturing data. >> right. is that the reason the market rallied because it suggested the fed was less likely to taper. >> i have this indiana jones metaphor in my head. remember when he tried to replace on the stone. >> right. >> the way indiana jones worked out, there was a brief moment -- >> and then the stone comes rolling down. >> he messes up.

>> it is the unwinding of liquidity around the world. >> there were three things about that ism report. there is a government component to it. defense manufacturing. it has been on the negatives. the other component, there were comments about weakness in china. and the third was a domestic economy being flat. it's like getting hit. all three legs of the stool were chopped off and we're a little lower. >> i think it was going to be a lot more of the same. obviously wednesday and friday with the the jobs inches going to be big. most likely very perverse. if it's weak, probably see stocks rally. if it's very strong, we could argue. but i can't imagine even a strong number isn't going to be friendly when you get these

markets that can't lose. sooner or later you lose. but it's a question of time. and the market has a lot more capital than most investors do. >> thank you, rickster. thank you, steve >> coming up -- i'm trying to figure out the ford guy. >> who it was? >> that needed sunglasses. >> that was phil caldwell. >> i thought it was phil. wow, you are old. that was a long time. >> if you read no other chapter you should read the phil. >> and the ford guy who put mulaly in. >> all right. >> if you read the phil caldwell

chapter you'll laugh out loud. really strange. we'll come back. coming up, we'll talk markets and the fed. we count down to friday's employment report. guest host tomorrow ed lazear, chair of president bush's council of economic advisers. looking at covered call strategies to generate income? with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

welcome back to "squawk box". the open down four. >> a squawk market master joining us from newport beach, is co-ceo of pimco. it has created a lot of volatility. what do you make of it all? >> think of steve taking us back a few minutes ago to the scene in indiana jones. the hope that's priced into the market is that we're together to replace artificial growth with real growth. two things are happening.

japan, as rick pointed out, is something to watch carefully. in the u.s. we've had what one of my colleagues calls assault on carry positions. on the other side the growth is not coming quickly enough. it's a fascinating time. both sides of this equation are under question. that's why you're getting this incredible volatility. market liquidity is declining. people are stepping back waiting to see clarity on both sides. >> we have all of these things. we're trying to figure on the what to make of the market. u.s. funds bruised by heavy may bond losses. it points out the lead is that every one of the most popular class investing in bonds lost money in may. highlighting the risks that come along with trying to anticipate

or figure out any of this. is this the beginning of a bigger scurge? >> may was important because every source, foreign exchange with, volatility with. whatever you name came under attack. >> will it differentiate between different risk factors and will it cascade down? you will get a lot more differentiation. some cascading. >> what does that mean for an investor trying to look at all the signs and see what's happening? what do they do with it? >> do what pimco has been doing for a few weeks, which is pull back from risk. it is becoming more untable,

both in terms of its composition and in terms of how it breaks. step back from risk a little bit. we are seeing walk away from risk. don't sprint away but walk away from risk. there is a lot of moving pieces out there. think of it -- another analogy to keep in mind. qe is a medication that comes with a warning. do not use for a very long time because you get side effects. we used it for a very long time so we're getting side effects but we don't know what to replace it with. that's the dilemma investors have. >> how important is the friday jobs report? >> it is important -- the next three or four, michelle, are very important. together they're going to give you a picture. we need the next three or four to average well above 175,000. that's a signal that we're getting close to vol lossity and we can effect this handoff from assisted growth to genuine

growth and from purchase stability to structure stability. we need three to four really good reports in excess of 175,000 per month. >> if we don't get those are you going to have a better month? >> it's going to be really interesting. because then the credibility is going to be tested. >> you say pull back from risk. does that mean get out of equities? >> it means reduce your equity. those are the three to reduce. we said it's going to be bound. >> u.s. treasuries? >> yes, that's treasuries. it gives you optionality going forward.

>> i think one of the consequences fed has been doing is arlt officially with the pass. either the fed has to do even more and therefore break even more in the system or prices will have to come down. >> it's amaze to go me. i don't know how long we have been predicting rates to go back up. probably four or five years. for these guys, not picking on gross or pimco, i guess there were so many so many -- we tried wolf so many times, when it happened nobody was prepared. you said we made the return

elsewhere. it's not we were under performing. it seems like he finally got in and said it lulled into that. right when that happened it turned around. how could every major bond fund lose money not knowing interest rates would be headed up. it's staggering after waiting for it and predicting it for so long. >> remember, joe, it's a market of many different types of bonds or what we call many different types of risk factors. and the first reaction in the market is to be undifferentiated. the s&p, all 500 sell off. so the first effect of a liquidity being taken out of a market. that's why i said people like us are watching very careful market liquidity. everything comes down. then you start getting the differentiation. on performance, i encourage you to look at one year, three year, five year, seven year, ten year.

>> aren't you shock that evs blind-sided that rates are back an equy tkpwagap. that's why navigating the next stage becomes so important. in some cases thing overshoot as we have seen over and over again. differentiating this is absolutely key. >> all right. thank you very much for joining us this morning. as we should mention, mohamed is one of our rebels and icons not one of the icons and idiots. two very different lists. >> thank you. >> coming up, jim cramer getting ready for the trading day. head down to the new york stock exchange and find out what stocks you'll be watching this morning. >> tomorrow on "squawk box", the countdown to jobs friday is on. we'll get an early read with the

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welcome back to "squawk box". futures indicated down seven points on the open. down to the new york stock exchange. jim cramer joins us right now. i think good news is good, bad news is good. that was about a month ago when we didn't think there was any tapering. but now that ism number was so bad we can have good news or bad news. where are we? have you got any idea? >> yesterday was, again, a giant buy program that matched the cell program on friday. but i hear you. because there's just an inconsistent data does not produce the end of what the federal reserve is doing. we talk about what the federal reserve is doing. as if all that matters is no company is really doing the right thing. g.m. is not doing the right thing. merck is not doing the right thing. just like mohammed was saying bond fund, initially they all go

down and you try to figure out which is right. initially stocks get hit when we worry about the the taper. then companies doing well come right back. i don't want to the backdrop isr after yesterday than it was on friday. >> we talked dollar general yesterday and when the notes came out, how were they? not so good, huh? >> gee, i don't know. i was going after the previous forecasts and they told a pretty good story and suddenly they're basically saying is we were way too aggressive is the way i would read this. they're selling stuff for less and higher shrinkage. more people are stealing? i find it quizical at best. the group had one of these swoons. last year around here, it will have another swoon. it just seems that no one is spending other than in the high end now. >> yeah. shrinkage, bad. >> bad kind of shrinkage. >> leakage, shrinkage -- i don't

even like the terminology. >> but how much fun was lutz today? he's just a joy, isn't he? >> i know. >> he should have his own show. i find myself mesmerize said. you're mesmerizing, you are just so good. >> yeah. he's funny. we found some good -- off-camera we're finding out some good stuff. >> yeah! >> i'm looking forward to 80. >> 80? holy cow! he looks great. >> not all 80s are created equal. >> between that and the gold sky. the whole show is about looking good and feeling good. >> jimmy, are you a divide by two minus seven or plus seven? never mind. never mind. i say why bother with the plus seven? anyway -- >> the show is adult themes today. >> you have to connect a lot of dots to get that, i think. >> oh, yeah. tough one with, that one. >> earlier you said are all these guys today have really big

egos and really small. and then you came up with something instead of what you were trying to say. >> huge egos and deep insecurity. >> i knew exactly where you were headed. the two dominant characters. >> big egos. >> they love me. don't they love me? >> when we come back, our guest host for this hour have been arthur brooks and bob lutz. we will give them the last word when "squawk box" returns. and earlier this morning we asked if you think that if that can continue the tuesday winning streak, the results are in. 53% think the dow will end higher today. 36% said it would end lower. we'll see. we'll be right back. my mantra?

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today. arthur brooks and bob lutz for the last word. bob, we have not talked to you about electric cars and you made a bid for fiskar. >> i can't confirm that. >> we've heard -- we've heard speculation about this, why don't you tell us about electric cars and why you think they are the part of the future? >> right now they're a tough sell. the electric car was vastly overhyped. most people are worried about either the high price for teslas or the low range for affordable cars, but i think in another five or ten years, battery technology will be such that you will have a 300 to 400-mile range, rapid re-charge and priced like regular cars. when that happens the electric car will finally gain a lot of traction. >> you can't confirm because you can't remember. you were telling us this 80 was this great thing and now you have no idea. this would be important to know whether you did or not? what do you mean you can't

confirm? >> it's legal issues. >> you know whether you did or not, you're just not telling us. >> yes. >> okay. >> i've been asked to comment publicly numerous time and i have to say no the whole time. >> excellent. >> but you think electric cars are the future. they are the future, but it's long term. it's going to require lots of breakthroughs in battery chemistry and those break threws are all being worked on and it's called lithium sulfur and lithium air which will store five to ten times as much as -- >> i feel like our power grid can barely handle the situation now. we use the backup generators and now you want me to charge my car off of this infrastructure as well? >> imagine you plug it in at night and the next morning you have 400 miles in the tank. you always have a full tank. you never have to go to the gas station. >> obviously, that's an infrastructure problem and we're dealing with infrastructure issues.

>> yeah, sure. an hour ago we were listening to marco rubio. when you think of immigration reform underneath the surface, republicans are under immigration reform and we let people in and make them citizens and we'll make them work for the democrats. that's false. we know that's false because if you look at what's going on in the data underline. you have two groups of voting hispanics today. one-half indeed tend to vote for democrats. the other half stay home. what's wrong with the staying home latinos? they tend to be more conservative than non-hispanic whites. >> the republican party -- >> so what republicans have to do is stop worrying about more people coming in and stop worrying about more latinos in the united states and start getting their house and rdz onner and start talking about the issues that the conservatives sleeping the latino giant cares about. >> all of the problems with the republican party seem to be self-inflicted wounds. >> they're a typical thing forra i party that has been really

mediocre for a while. the nice thing is that the republican party today is in a period of reform. there's a reformation going on and this should be scary to democrats because they're in a period of hub russ. republicans are reforming all over the place and look at the voices saying what do we need to be doing and we need a strategy of talking about compassion for vulnerable people and fundamental fairness in this country. when conservatives start talking that way, liberals should be very afraid. >> you remember illegal immigrant you can't use anymore. do you remember jay leno's show? they replaced illegal immigrant with undocumented democrat. ♪ >> which is what the republicans are worried about. >> that's when they're worried about, but they don't have to worry about treating them as a potential voting bloc which are faith, family, community and work. and that's what appeals to the half of latinos who could vote,

but currently don't. >> you're preaching to the choir there, i'll bet you you do go out and vote. >> do you have a guess about how i vote? >> i have an idea, bob. >> thank you. >> thank you, joe. >> michelle, thanks for being here. >> a pleasure. >> make sure you join us tomorrow. "squawk on the street" is next. ♪ ♪ ♪ the miami heat going for a championship repeat after beating the pacers. what a game. next up an nba final with the spurs. good morning, welcome to "squawk on the street," i'm carl quintanilla. one day after kicking off june with a 138-point rally and the futures are moderately to the down side. futures are on the rise recovering from some of yesterday's sharp losses. the dow's had four