♪ good morning. i'm andrew ross sorkin. i'm not one of those faces. orange is the new black markets in the green after the u.s. economy added 217,000 jobs in the month after may and it's been a busy morning. we caught up with outgoing ford ceo and the brand new ceo of u.p.s. david abney. joining us is cara swisher, coexecutive editor and all hour john and kayla. >> i watch the first ten minutes of the new "orange is the new

black." >> you are an overachiever. >> i made sure it was there and watched ten minutes and went to the gym. >> and? you stopped after ten minutes so what does that mean? >> i don't want to like ruin my opinions. >> okay. let's talk about this. the war of words heating up between verizon and netflix. verizon sent a letter to the streaming service demanding that netflix stop sending messages to users blaming verizon's crowded network for slow speeds. here's a picture of the message of netflix running that got verizon upset and a bit of a surprise since they signed a deal a month ago to improve streaming speeds. guys, who's in the right here? >> it's impossible to know. i mean, that's the reality of it. and netflix said they're looking at all ways of studies the disruption and could be your wi-fi router. the network in the building. so that i think is why verizon has a right to be a little bit cheesed off and not necessarily true. >> cara, tech guru, who's to

blame here? come on. >> we had reed hastings at our conference and did the same thing with comcast. he's being very aggressive in the fight of streaming fees and signs the deals. >> where do you stachnd on that? >> they have good arguments. you listen to -- we had brian roberts, also, talking about it and one point of view that i have to pay for cable boxes. why can't reed hastings pay for carriage and faster speeds? it is an interesting issue. how important is the internet and internet connectivity to the country? is it a utility? i think a lot of it is posturing possibly on netflix's side. at the same time, it's correct. i mean, even though, there should be access to, you know, good streaming, it happens they use 34% of the pipes right now. >> right. >> this weekend it's going to be 900% or something like this. >> yeah, probably. it's interesting because when

you listen to brian roberts talk about the deal they struck with reed hastings and netflix and says it gives more control over the medium. the intermediary and the technology and where it streams through. >> right. >> upstream and i'm just wondering, if that's actually true, can netflix in this situation be blaming verizon for this slow streaming or the crowded network? >> they can. they want to call attention to the issue and legislation around it. they want, you know, i don't think they want too much and they want the issue to be debated and so there's pressure on these pipes people. and so i think that's exactly what he is doing. >> what is the chance that in the context of the comcast time warn ir deal and the at&t directv deal that the fcc tries at some level to add stipulations around how all this works? >> in the context of sprint/t-mobile, too. >> this is the point. this is the point. >> but the big issue here now is

the press release netflix put out in response, we are studying or evaluate and continuing to test i think is the word they used and they don't definitively know that verizon is causing this and misleading. >> sending a letter to washington only does so much in these situations, cara. you know, i wonder if you think this is effective. it has been successful in drawing attention. >> yeah. >> but do you think that it will bring this issue to the table in washington? >> i think legislators can't ignore it. this is the most popular streaming service, popular with consumers. shows people want and this weekend. and they have more to come. they have several new shows that look pretty good. so i think it's very effective. what's interesting is they're the only ones doing it, they're out front and other people that should be concerned, google, amazon, others. so it's -- >> before we move on, why do you think -- you're right here. i'm going all over the place. why has amazon not said anything? why has google not said anything?

>> that's a good question. reed is good at what he's calling attention to. because it's absolutely as brian did say in reed's best interest and comcast's best interest and everybody hates the cable companies. he's just playing on a lot of different things and the right thing probably for him to do. >> except for us employed by them. >> i know. but you know what i mean. brian said it on stage. everybody hates the cable company. i don't wake up wanting to be hated. i think that was his quote. >> the entire second season of "orange is the new black" available online and a huge hit and joins "house of cards" as one of the most successful original shows on netflix. people excited including the drummer of roots, quest love saying finally. it is here. the question i have for everybody around the table is, do we believe that this show is going to draw even more viewers to netflix? does every time they offer a new show, how many more come through the door?

>> we never know. they get off scot-free and never disclose the ratings, the viewership and put out press releases every monday saying this is the best ever. this is the best ever. no, this is the busiest ever. >> definitively a percentage watch the original programming and come for that. one thing about not a spoiler, they opened the second season of "house of cards" with a shocker of a moment and done the same thing with the opening of this season. i think they do that to get people to resubscribe or come back and a technique they have started to use. >> cara, do they have enough content, though, to keep growing because they have -- i mean, they will have to have must see tv every month. >> they have marco polo. a cartoon thing that looks fascinating. they have a lot of stuff that's quite good. i mean, attracting a lot of hollywood interest because they -- the creativity and freedom to have. it's a similar dynamic.

>> can we talk about your star turn there? you had a star turn in the finale there of -- hbo "silicon valley." what was that like? >> i can't believe i'm on here now us. >> so special. >> what happened? >> i feel like the emmy should go to but whatever. it was fun, cool, i really love mike judge and i like hbo. i have known richard for a long time and doing cool things with that show and going to do more cameos. maybe you, andy. come on. >> is peter -- tell me srks the character peter gregory peter teal? >> no. i think it's more -- he is interesting. why e, yes. but not exactly. like a couple of people. he's a great character and all great, you know, the guy is eric schmidt and a little bit of -- it's a great show and it was really fun to do and lots of people noticed. it was kind of bizarre actually. >> the set, cara, was it reminiscent of the companies whose halls you have been roaming for so many years? >> yes.

>> very similar to? >> real companies in there. there were real companies in there which was funny. i got a lot of cards from cool start-ups in los angeles and working with you guys on los angeles this next week and so it was cool. it was -- it was very much -- they've really hit on something and no show about technology has ever hit on something as much as this one. >> speaking of tv shows, we won't let you go without showing -- you can do the star turn twice now. take a look at cara on the finale of "silicon valley" of hbo. >> you made over the top promises about nucleus. can you deliver? >> absolutely. for me, cara, goodness, greatness, these are not simply catchphrases but the intention of us from the beginning. >> there she is. >> thank you. >> thank you for everything. >> oscar, oscar. i mean, you know. >> actually not next week. next up. we have more to do. >> oh, all right. >> keep talking. >> all right. >> don't go anywhere. is apple's i-watch coming sooner

than we thought? a report saying that apple's smartwatch will hit the market in october with a monitor device for health stats like calorie count and sleep activity after apple announces the health kit at the wwdc earlier this week. do you buy the report, cara? >> yes, i do. yes. absolutely right. >> who then -- i wear a jawbone. when's the loser? i'm assuming fitbit -- >> all of them. >> is that game over? >> i don't know. but it depends on what the device is like. we understand it's rather large, though. may not work for different people. probably not aimed at women i think possibly. you know? it's interesting. >> large like the samsung watch? >> samsung. >> can i say that's big and ugly? can i say that on the air? >> whatever you want. i'm borrowing it from my wife. >> that's interesting. >> wears it regularly? >> started to play around with it a little bit. what's the big issue, apple with the new operating system, you

basically need an iphone to be able to answer the call on your computer, start an e-mail on the iphone, answer it on the computer and same thing with the watches to get all the impact. you will need to be an android or ios and like the '80s or '90s as an mac or pc person. >> will you wear one? >> i don't know. i haven't really gotten on board with the health revolution. i don't think i get enough sleep. i think as soon as i start sleeping more, maybe then i can start monitoring it. i don't want to see all of that data laid out just quiet but maybe that's just me. >> okay. >> you know, i'm just saying the problem is none is actionable. i have an obsession with actionness of it. it's data but doesn't tell you what to do. if this watch tells you what to do and gives you some more beyond the steps and that it could be -- >> i don't know, cara. i downloaded an app of carrot supposed to be a to-do list and

one time it said you have achieved nothing today. >> is it possible -- >> you achieve so much in a day. so unfair. >> can i pause? is it possible? cara, weigh in, as well. is it possible that the watch doesn't move the market the way everybody -- we all think this -- >> no. i think glass doesn't move the market. >> it's amazing coming and google glass i'm not sure gets you there. >> people want the wearables and the pebble or this, there's a convenience. i'm curious what you think. >> this is critically important. it's right before the iphone. just think about it. this is the moment before the iphone. everybody was debating smartphones for a long time. they're big, clung i can and then the iphone and everything changed and so i think these wearables are critically important. i think the sensors, the home things, we are on the cusp of this finally and so i think the issue is what use does it bring to your life and help and on your thing of becoming part of planet apple and walt calls it or planet google, that's the way it's going. that's the way it's going. >> a different topic.

thank you for that. the king of cramps, though, lebron james sidelined with cramps much of the fourth quarter of game one of the nba finals last night. why? because the heat, well, they fell to the spurs but james blamed a malfunctioning air conditioning system and made the temperatures rise like 90 degrees inside. >> everybody pretty hot. >> legit. the official twitter account of gatorade with fun with james sponsored by the competitor coca-cola of powerade and tweeting the person cramping wasn't our client, our athletes can take the heat. so kind of like that. they're kind of fun. right? >> snarky. >> you can run the power aide twitter. that's for us. that's for us to ask. that brings us to the squawk on the tweet question of the morning. and that question, as i was just saying without knowing it, you can run the powerade twitter. what is your response? we want to know your response.

squawk alley. coming up, phil mickelson, i start to -- st. jude classic and could be the worst year of his entire career. insider trading allegations are to be believed taking a toll on the golf star or are they? "the new york times" jim stuart weighs in. a prolific inventer, 450 patents, jaywalker on the next big bet in health care technology. and is this the next man to run the golden gate? neil on his quest to unseat california governor jerry brown. . you need to see this. show 'em the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing...

...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

what is that? richard branson on the couch there. better than expected jobs report for may pushing the markets into record territory. the dow closer to 17,000 here on set. jim stewart, newest cnbc contributor and a pal in the other world. a columnist with "the new york times" and a pulitzer prize winner. i want to talk briefly about the jobs number this is morning. >> good number. >> you're happy? satisfied? >> big question over the economy

has been about the first quarter, was it the weather? and i think now we can say, yeah, it was the weather. so, you know, people are back to work. good. >> should we care about the overall headline number? meaning, not the actual number we what are you actually paying attention to looking at the number in the morning? >> i look at the trend. the overall number. >> does it make sense for the markets to take it as -- >> relief. i think there was some concern that, you know, that this is first quarter thing wasn't maybe just an aberration, another one of these, like, you know, glitches, slow downs to carry over and wasn't just the weather. now people are gaining a lot of confidence and then, you know, don't forget the european central bank this week and giving a bullish tone to the market. lately seen a little bit of rise in emerging markets. you know, it's like the whole world is looking maybe a little too good, a little calm. >> bull sish an understatement. look at the dow 95 points from 17,000. >> yeah.

>> i mean, we joked in january when strategist said 20,000 by the end of the year. where does it go? >> it is kind of like creeping and not making the huge leaps and bounds or something. the creeping thing. >> the people that opted out of the labor force and a lesser headline number today. the people not job searching anymore. isn't that concerning? >> a lot of economists starting to zero in on the question. like, who are these people? i mean, can we just all decide to opt out? like, you know, leave a life of leisu leisure. someone in los angeles couldn't find anybody working and enjoying themselves. well, maybe this is good. i don't know. i don't know how they survive but if they can do it, they don't want to work, they don't have to. maybe there's more going on here. >> the sell in may go away idea? that would be a losing strategy at this moment. the question is will that be the right call come september and keep it going at this rate? >> well, we are overdue for a pullback of some kind. even at a creeping rate at some

point the valuations get out of line. they're not there yet. you know? we have still got the numbers going up. earnings going up. >> what is there? when we get there, what's the inflection point for you? >> a couple bumps up in the overall market pe i get nervous. >> talk about your column today. you are going after phil mickelson? >> not going after him so much as reading about this story which is, of course, fascinating, and i realized -- not entirely about golf. insider trading. this light bulb went off in my head. i'm running with insider traders for decades. why do now mouse rich people do it and get a tip and say call my lawyer. i'm not deeging with that. they can't seem to resist. oh my god, insider trading is like gambling. and so then i sort of probe the psychology and people studying this and the psychic reinforcement, the motivations for it, the sense of control, the ego boost, it's all there.

it was crystal clear. >> is everybody in here ethically challenged? >> absolutely not. it is probably a minority of people to put a tip in front of them and like -- putting catnip in front of a cat. >> you look at the set of facts and resolve not good for phil mickelson. we have interesting statements of billy walters saying no one comes after me losing the money. the information is usually accurate. usually you can benefit from it. what do you make of the facts of the case to give people sort of a preview of what you're saying this weekend? >> we don't know a lot of facts and may turn out not to be illegal. we did know mickelson and walters made curiously accurate bet on chlorox before carl icahn announced about it. how do the information move? did they have the information? what kind of information? we don't know that. but the point i was making, when

the fbi shows up at the golf club or in your front yard or outside of the school where you're teaching mathematics, this is not good. a phone call to your lawyer is one thing. that's not good either. but there in person to greet you and two of them, that's not good. >> teeterboro, right? >> not good there and stepping off the green and they're waiting for you -- >> you don't think it's a scare tactic? >> why would they do that? they're suspicious. by the way, have they screwed up his game? we'll see next week in the u.s. open. i bet he has more attention than any time in his life. people want to know is it affecting him? >> all right. thank you. >> fascinating. >> take a look at the column on nytimes.com later. let's go to sarah in arkansas for an update on walmart. sarah?

sarah is with us. but not with us at this moment. maybe, can you hear us? >> reporter: yes. i can hear you. hi. i'm sorry. i'm distracted here because the people are just coming out. al black is the final performer in what's been a day of festivities here. i think we have a live shot to listen in. ♪ all right. just to give you a taste of the concert and festivities here at walmart today. he came on the stage just after doug mcmillan, the ceo, wrapped up his speech. gave sort of a final word in what's been the pep rally of the day and i thought it was interesting and good thing we are in "squawkally" and underscores technology and innovation at walmart saying we need to be at the forefront of this. pretty unusual coming from the world's biggest retailer. he talked about 3-d printing

saying household products can be 3-d printed and a few numbers on this note. 1,000 new hires in silicon valley for walmart. 12 technology acquisitions in 3 years and a hint at more on the way from mr. mcmillan just a few weeks ago and clearly this is something they're thinking very hard about and what's been, andrew, a pretty tough challenge coming to brick and mortar retail. >> i want to know, sarah, how much -- given that the margin compression -- how much does this thing cost? these guys, these guys are supposed to be cheap. this looks expensive what they're doing down there. >> reporter: very expensive but it is an annual tradition. they don't put out the number. they don't break out the number. there were a few presentations about the cash that walmart accumulated and what it's doing, investing in the business, investing in technology. returning cash to shareholders. but yes, this is an expensive day. we don't know what it costs but the folks coming out here, the

14,000 associates and investors had a pretty good time and it does a lot to boost the morale and get them excited even if the share price is underperforming. >> okay. sarah in fayetteville, appreciate that. want to see a dead body or how your coercion could be in "game of thrones." plus, investing in the future of health care technology. jaywalker on where the individualized health market is headed. you're watching "squawk alley." but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

because you can't beat zero heartburn. woo hoo! [ male announcer ] prilosec otc is tumbe doctor d frequent heartburn medicine for 8 straight years. one pill each morning. 24 hours. zero heartburn. e frequent heartburn medicine for 8 straight years. financial noise financial noise financial noise financial noise

♪ a very happy birthday to tetras today. 30 years old, young. do you play? >> no. the piece like that, that's the hardest and the trick to turn it on the side and slip one under

it. >> an expert. >> it is aged so well and high tech 3-d plays to play. >> defined mobile gaming. gameboy. remember it? >> yep. >> i used to play that a lot. >> i love it. too funny. happy 30th birthday, tetras. "game of thrones" surpassed "the sopranos" and average viewership of 18.4 million with repeat showings and on-demand and mobile streaming and that's an interesting move for "game of thrones" and to be part of the action, the author said he'll name a character after one male and female fan and kill them in a future song of ice and fire novel as part of a campaign for charity. how much will it cost to be so-called killed by martin in this fictional book? $20,000. >> i have one question on hbo.

do you believe that if there wasn't on-demand and took that component out, "sopranos" would win. >> yes. >> good point. >> they got 18.2 million average viewers per episode. i just think -- >> the dvd s.e.a.l.s and -- >> not like -- >> i think they would beat them. >> now it's on amazon. see how many pick it up. >> very good. meantime, let's count you down to the close and the uk and across continental europe. stocks extending the weekly winning streak helped by the u.s. jobs report and thursday's ecb rate cuts and lifting european banks such as commerce bank. also european bonds, they are on the rise this morning. you're looking at the spanish 10-year 1.793 and italy and ireland up. coming up, one of the best

known investors and entrepreneurs in america. we have jaywalker on apple, samsung and google's new move into the tech-driven health care market. plus, lebron james sidelined for much of game one of the nba finals thanks to cramps and the heat fell to the spurs, 110-95. official twitter account for gatorade had fun with james sponsored by gatorade saying the person cramping wasn't our client. today's "squawk on the street" tweet. let's say on the pow epowerade, is your response? we'll hear the responses later in the program.

chocolate is very individual. white chocolate lovers don't like dark chocolate. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow the consumer to customize their preferred chocolate. we needed the scalable cloud solution allowing them to see

all 800 products and select what they are looking for. now there is endless opportunity to indulge.

♪ welcome back to "squawk alley." apple announce health kit at the worldwide developers conference. our next guest says we're running to individualized health care. jaywalker is founder of priceline.com and chairman of patent properties incorporated. welcome. >> thank you. >> you're the chairman. talking in the commercial break. how many patents do you personally have? >> a bit over 700 u.s. patents but none in the field of health and wellness. >> what do you see going on there you want to be a part of going forward? >> what happened in electronics

and software will happen in b biolo biology. the health care of life, figuring out how to hack it for the first time and guess what happens when we get our hands on the software. look at the last time we got our hands on the software. the world changed. we are about to get the hands on the software of us. >> it depends on the human to make the decisions and incorporate that information into their lives as we were talking about earlier, i don't know if i'd be able to do that. do you think that this will actually -- this advent of technology will make us a healthier people? >> we wait and we go to the system trying to get better and fix it. that's crazy. we need to figure out what's going on inside our bodies. they're a black box. we have no idea what's going on. for example, the earliest to detect cancer now is 100 million cells. that's 6 years after the cancer began. that means you could have cancer. we would have no way of knowing. the new technologies we're going to see what's going on.

>> a lot of bio tech companies looking at the therapies, as well. on the technology side, did you like what you saw from apple? with health kit. do you think it will be a game changer? >> here's what's going on. everybody who matters in the world of data in the world of health. everybody. they're all coming. why? because there's more data inside the human body than anywhere else in the world and guess what. that data matters to you, your parents and children. every one of the guys are just beginning to try to build these platforms. so that ult matly they can dominant the health data space. >> all the little guys, talking about jawbone, they're a little guy or fitbit, little relative to apple or google. >> they're the early days of the world of software and computers. we had the little tinkerers. it's the same movie. seeing it in health. >> do they get bought or wiped 0 snut. >> they're probably bought. they have customer bases, they get bought. >> jay, google tried google health for the medical records

and five or seven years ago. didn't work. had to spin it down. apple had cleveland clinic, the people listed in there. isn't this gummed up again and have the same -- >> don't be fooled. they'll fail, fail, fail and then succeed. >> you think this time they'll do it? >> maybe not this time but next time but here's what's coming. complete data interchangeable ecosystem matters to you is coming. >> took consumers time to feel comfortable with finances online. it took a long time, longer than people expected. do you think that people worry about putting some of their proprietary health information in the cloud? >> i think they will and many people make it so you don't have to put it in the cloud. you can keep it to yourself. when you're a parent and worrying about a child heading for type 2 dibt you want to monitor activity level, blood sugar and things for your children. i'm worried about the cloud, way more worried about my kids as a parent in america and more worried about seniors in some place i can't see or be near.

i actually want information. when i get information that relates to my health, kayla, innovators have businesses of a multitrillion dollar sector. >> you, your child and the thousands of employees at the company? >> no. could be your social network. people talk about behavior modifiers. we need to change behaviors in america. what happens when you and your friends together? it's a different way to use your social network and facebook is thinking about health just as much as google and microsoft. this is the equivalent of the information economy on steroids. >> we are talking about health. what's the investment play? if you're playing at home, what do you look for? >> we see ted met. all the time enormous number of start-ups. look at nest which is a small little company suddenly billions later. what you are seeing is tart-ups with a value in the investment area where small companies fit

into the mission of giving people information about their health, systems and platforms, devices, sensors, all of that is coming and so much is big guys gobble up the little guys just like all the app developers when they were looking for a way to make their app environment work. >> it's a brave new world. >> it's going to be a very different world and going to look entirely different than it looks today in a few years. >> we'll have you back. jaywalker, thank you for joining us. >> thanks so much. coming up, a mobile phone operator said the calls are not private. what you need to know about the shocking report. first, rick santelli, what are you watchling this morning? >> don't look at the board or know early. listen, we'll be talking about some of the previous recessions that we have had going back to 1980. how many jobs were lost during the defined recession months? and how many months it took to get those lost jobs back. because i think the magic number today is 6-0. you want to know what it means?

come back after the break. i have to go back to my board. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪

you wouldn't have it she any other way.our toes. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about experiencing cialis for daily use

and a free 30-tablet trial. thebut in the case of the s to thlexus ls... ...which eyes? eyes that pivot with the road... ...that can see what light misses... ...eyes designed to warn when yours wander... or ones that can automatically bring the ls to a complete stop. all help make the unseen... ...seen. and make the ls perhaps the most visionary vehicle on the road. this is the pursuit of perfection. coming up, from right here out the new york stock exchange, stocks at all-time highs again. why can't the rally get any respect? plus why's the run-up leaving wall street in the dust?

institutional investor calls her a rising star. hedge fund manager nancy davis is here with her top three investment ideas right now and california chrome is going for the triple crown tomorrow. win, place or show, trading that. and much more plus our worst trade of the day. "halftime report" live in a few. >> thanks so much. in case you missed it, secret wirls allow government agencies in many countries to listen to private conversations on your mobile network. this is according to vodafone with a 20-page report of how many governments tap into the infrastructure. it's one of the world's second largest mobile operator after china mobile and it says the tapping was, quote, widely used. >> amazing. went through the countries and didn't tell you -- certain countries we can't tell you about. >> this is a big business opportunity. google announced this week of a plug-in for chrome to encrypt the messages and make it easy. i think every one of the cloud

companies will offer this now and so much stuff dropping now. >> people carrying the big olden days walkie talkies. carry a briefcase with the phone in it. only way to have secure encrypted communication. we'll see. >> you have to carry tinfoil. keep it around the phone. meantime, let's get over to the cme group. rick santelli with the santelli exchange. rick? >> thanks, judge. listen, we had a number today. two teens in dlsh 216, 217 with private payrolls. close to expected. it was smaller in the last number. i think i said the number was average. okay? maybe even when it was below average because of the sequential aspects of being lower than last time but it is what it is. and it's certainly much better than the job growth we weren't getting 20 months ago but there's something different about this time around. whether it's the $4 trillion balance sheet, whether it's five years plus after a crisis. we still have zero interest rate

policy, big central banks like europe thinking about embarking on another round of crisis-type management programs to bail out their economy and saying that when i think of a kitchen sink, whatever that thought is, multiply it by a thousand and throwing at this problem. so how have we really done? why is the bond market so stubborn? why don't so many believe it's telling an accurate tale about the future? tell you what. there's a reason to prove it is. okay? magic number is 60 months and i'll tell you. i did the math. they've recombined the numbers. i heard the secretary of labor talking about them today but here's the long and short of it. this recession we had is deemed december '07 to june '09. it took 60 months after june of '09, okay, 60 months to get the jobs back and today was the month you did it. now let's look at the previous

recessions working back through time. march of '01 and november of '01, 39 months to get the lob losses that we lost in the defined recession their period. let's go to the one before that. july '90 to march '91, 23 months to get job losses back. and go back to the zero line. 11 months from '81 to '82 recession. you see what i'm saying? we do more and more. mr. greenspan redefined the notion to tinker out recessions. tried to tinker out everything. and it's 60 months to get the jobs back versus what used to be 11. that's what the bond market's not happy about. back to you. >> all right. thanks so much, rick. i know a lot of people counting the months, you included. we appreciate it. is this the next govern fornovember california? neel on his vision for the golden state. king james sidelined with the cramps last night. the twitter account for gatorade

having fun with james and sponsored by powerade and tweeting the person cramping wasn't our athlete. our athletes can take the heat. what is your response? tweet us. we'll air the best responses a little later on this hour. stay tuned. and if i tap my geico app here i can pay my bill. tap it here, digital insurance id card. and tap it here, boom, roadside assistance. on'tday ooklay, it's axwellmay. the igpay? otallytay. take an icturepay! onephay, onephay! really, pig latin? [ male announcer ] geico. anywhere, anytime. just an aptay away on the geico appay. [ male announcer ] geico. anywhere, anytime. don't just visit new york. visit tripadvisor new york.

with millions of reviews, tripadvisor makes any destination better. mayo? corn dogs? you are so outta here! aah! [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. nutrition in charge™. bulldog: [yawn]

bulldog: i just had a dream i was at mattress discounters with tempur-pedic and the largest selection of memory foam mattresses under one roof! icomfort, by serta... optimum, by posturepedic... ahh! comforpedic, by beautyrest... ooh! 48 months interest-free financing, free delivery, and queen-size memory foam mattress sets as low as $697! that's more mattresses than you can shake a bone at. ♪ mattress discounters ♪

welcome back to "squawk alley." it's been a big week for the nasdaq up about 2%. fueled by large cap tech. get this. apple, oracle, intel and sandisk trading multi-year highs and seeing this rotation into large cap tech. that's providing a nice lift to the nasdaq composite. they can a look at verifone reporting better than expected earnings, that stock on the move. lastly, jd.com referred to as the amazon of china went public here on the nasdaq a couple of weeks ago and shared picking up momentum today. back to you. >> okay. thank you. california remains the dominant state for i.t. and high tech investment. survey finding 28% of tech companies plan to increase spending and jobs in california over two years and places like

texas and u.s. southeast are closing that gap. with california's unemployment rate high at 7.8%, it will be jobs, tech and the overall california economy that will decide the state's governor's race this fall and joining nous this morning, former assistant u.s. treasury secretary and turned california republican gubernatorial candidate neel kashkari. congrats on your primary victory on tuesday, sir. >> thank you, andrew. great to be back. it feels great. it was a tough primary but i'm looking forward to taking the fight to jerry brown. as you said it all about jobs. we got to lower the unemployment rate. we have to put californians back to work. >> you're wearing a suit. i was in l.a. two weeks ago i got to turn on the tv in my hotel room and who do i see? i see you in an ad and you have an ax in your hand and you're cutting, cutting, cutting, because that what was the commercial supposed to be about, including taxes. how important is that going to be as part of the campaign? >> well, i was focussed in that ad as an example on cutting the high speed trains. jerry brown wants to spend

almost $70 billion on this train from l.a. to san francisco. it makes no sense. it is an example ofegious waste in sacramento. we need to focus on the real priorities of californians, lowering the unemployment rate, putting people back to work, investing in water, so we have enough water to feed our state. i'm going to be very focused on that through the campaign and if i'm governor. >> here is the big issue. i was in san francisco 24 hours ago. i saw mark andreissen, we talked about jobs, the jobs that are being created, which are high tech jobs. but, you know, you know the inequality issue in cities like san francisco. and what do you do about that? >> well, income inequality is a huge issue. i talk a lot about it. people are surprised as a republican i'm talking about it so much. income inequality at its root is a failure of our education system. unless we're willing to make bold changes to transform k through 12 education, income inequality will continue to expand. i have a plan to do exactly that. >> neel, so many companies in your state have the issue of the overseas cash. as a governor, it doesn't

necessarily fall under your discretion, but an issue you face. what is your view on getting that cash back over here so they can invest? >> this is an example of we need national tax reform policies that incentivizes companies to invest here at home. i understand why people don't want to give companies a windfall, but i hate the ideas, the policies that encourage them to invest abroad, keep their cash abroad, continue to hire abroad. we need to lower all of america's unemployment rate, and california being one of the worst, we really need to lower california's unemployment rate. >> this is the solution? what is your proposed solution or idea on that? >> i think there are a lot of ideas on the table, whether there are one time repatriation programs in place, but we need to alyn our tax code with the tax code around the world. there is a competition for investment, a competition for jobs globally. i'm very focused on california now. california is losing relative to states like texas and north dakota and other low unemployment states around the country. we need to do a lot more here at home in california so it is not just the facebook employees and the google employees that are doing well.

it is the millions of californians that are out of work today, we need to bring them back into the labor force. >> how do you do that, neel. you look at california, which is home to the hotbed of innovation. we were talking about walmart, which added a thousand new jobs in silicon valley alone and a lot of the companies in california are some of the biggest hires in the economy right now. how do you create jobs outside of silicon valley, outside of technology, and some of the more traditional sectors where maybe california isn't home for them. >> sure, it is a great question. i'll give you a couple of examples. reining in regulation. sacramento comes out with hundreds of new rules and regulations ache ye s that are intentioned. but it is like a giant ball of yarn crushing our small businesses and pushing our factories overseas or out of state. that's one. number two, investing in water so we have enough water to feed our farms. 40% of the jobs in our central part of the state, the central valley are directly tied to agriculture, we're suffering a terrible drought. we have not been prepared for

this drought. number three, i have specific incentive to bring manufacturing back to california. silicon valley designs great products but usually manufactured somewhere else. we should be manufacturing those products here and then finally we had a huge untapped oil and gas potential. we can tap into that, create hundreds of thousands of jobs, and billions of dollars in tax revenue. >> neel, you won the gop primary on tuesday night. you got 18% of the vote. jerry brown got 55% of the vote. you said you would spend about $2 million of your own money to actually build your campaign. i'm wondering how much do you think it is going to cost to close that gap before november? >> it is going to cost a lot. we have to raise tens of millions of dollars is my guess to compete with jerry brown. he has $20 million. he'll have a lot more when the unions fully fund him. we just need enough money to get our message out. here's the thing. all of the issues are on our side. unfortunately we're near the bottom for jobs. we're near the bottom for education. we're number one in poverty in america. california, number one in poverty.

and jerry brown calls that the california comeback. we're going to make him answer for his destruction of the middle class and when i make him answer, that's how we beat him. >> okay. kneel kashkari, congratulations, republican nominee for governor of california. thank you for joining us. we should say open invitation as always for governor jerry brown to join us anytime. we would love to see him join the show. >> up next, it is heat versus the spurs in the nba finals, but pepsi versus coca-cola in the battle over lebron james hydration. squawk on the tweet and your answers are coming up next. ♪fame, makes a man take things over♪ ♪fame, lets him loose, hard to swallow♪ ♪fame, puts you there where things are hollow♪ the evolution of luxury continues. the next generation 2015 escalade.

♪fame but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa.

ask your doctor about axiron. you need to see this. show 'em the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung. being able to pay as we go to is crucial for a start up.deas. having to fork out a lot of money up front was risky. we can launch a feature really quick, and if the feature doesn't work, we haven't lost anything, and we can have something up and running in days. and this would not be possible without the cloud. we are now supporting over 25 million users each month.

♪ welcome back. another notable 30th birthday. we have 30 years ago tomorrow, did you realize this, classic comedy "ghost busters". >> still play it every summer in the new york city park. we're getting a lot of mileage. >> you can't just zap them with the zapper, you need to throw the trap out and suck them in. >> too good. >> let's talk time for "squawk on the tweet" this morning. lebron james sideland for much of game one of the nba finals.

thanks to cramps. that's what he said. the heat in the room. the heat fell to the spurs 110-95. the official twitter account for pepsi's gatorade had fun with james, who is sponsored by the competitor coca-cola's powerade. the person cramping wasn't our client, our athletes can take the heat. on today's "squawk on the tweet," we have been asking, let's say you run the powerade twitter, what is the response? matt tweets our athletes don't like the taste -- the taste or taste of -- what is that? glycerol ester. and how did you slip your your product into the bottles of ur client. >> this real time marketing is such a thing that everybody tries to do now. >> he's gotten into the throes of this with pepsi, with samsung

too when he was tweeting about his samsung phone. popular guy. needs to get himself out of trouble. >> i'm told the markets are up. >> the jobs market, they liked it. risk appetite is on. >> okay. thanks, guys. have a great weekend. >> it is over to our good friend, scott wapner. >> thanks so much. welcome to "the halftime report." race for the triple crown. will california chrome make history this weekend? we go live to belmont park for the very latest. a rising star, hedge fund manager nancy davis reveals her top three plays right now. worst trade of the day. a rival to one of lebron james big sponsors turns up the heat on the star. wait until you hear about the trash talking basketball beverage battle. let's meet today's starting lineup, pete, josh, murph and steph who ran seven miles this morning. mike santelli joins us as well. we begin with the dow