of fried scorpion. seriously? >> tastes like chicken, ate bull frog, pig tongue, they eat everything in china. look at the whole animal, the face, and eat it all. >> ben, thank you for being here, brian, thank you. have a great weekend, everybody. right now, it's time for "squawk on the street." good friday morning. welcome to "squawk on the street," i'm with jim cramer at the new york stock exchange, favor is off today, dow jones industrials going for the sixth straight win today, something it's not done all yearlong. futures are encouraging after yesterday's record s&p close. ten-year crept up, ye yields now 264, gold had a good day in months, and mild action in asia overnight. we have a disappointing quarter for oracle. earnings and revenue light,

attacking in the right direction. ultimatum for family dollar, icahn says, sell or i'll come after the board. not backing down. a cross-border fistfight, rejecting a takeover, and looking for a buyout? all you need is a pulse and a u.k. postal code. first up, oracle reported fiscal fourth quarter operating profit at 92 cents a share missing estimates, and revenue below consensus and disapointing sale of software licenses. some expected more progress in the cloud computing business, giving metrics on, jim, for the first time, up 22% year on year, 4% of total revenue. is this a reminder of last year's rough time? >> i don't think so. the portfolio manager, we huddled in this last night and felt it was a buying opportunity. we say that with the big tech

companies repositions from traditional metrics to the cloud, there's glitches, and you look back and say, wow, that was an opportunity. reminded of adobe with a glitch and came back very strong. what can i say? when you switch models, like, you just have a rough spot or two. i think the company's being very aggressive in what they are trying to do. i think morning has done a great job. the stock had a nice run coming in. i'm looking for things that are down, not things that are running. it's so hard to just come in and pay up. i loved intel's quarter. i want to buy intel so much, but here we go, back to 28. you just don't get high quality tech on a discount very much anymore. >> oracle up 11% since the last earnings report. >> a nice run. >> discussion of how accounting changes with the cloud. >> right. >> you are given revenue over a period of time oppose the to buying -- >> a subscription business, hard to figure it out. if you want to go over the

numbers, i mean, you still have, look, licensing, it was not that bad. i mean, when i hear it was not that bad, jim, i have companies shooting the lights out. companies shooting the lights out, you pay a huge multiple on. i have red hat on last night on "mad money," they shoot lights out on 30 times earnings, and next thing you know, not a sixth straight day of dow, not a rollover, paying 30 times earnings. i look, and say oracle's feasible. >> right. to be fair, they blame some sales execution issues that sounds familiar from a year ago. >> i didn't like that. i mean, when i -- stocks don't go down big if things are all good. the market's not stupid, but i do think that justify setting the miss was cloud revenues, rose 2 2%. the cloud is small, but they have to move. the analysts, for the most part, stuck by it. it's no carmax. it's no someone that came out

today and said, oh, how can that be? it was like, come on, oracle, you can do better. >> old school tech in tact? >> yeah, i stuck by micron and seagate, by intel, sticking by cisco. this is one that you get a discount in, next quarter better, and you look back and say, oh, i thought it was bad, but it was not that bad. >> the title reports it's not about the quarter. that's in line. >> i think that's a very, very good piece, and i also like the top of the first inning of the transition journey, reducing estimates. that's what you have to do on the journey. you are moving over to what is a very different model in order to blunt what tablow, and mark is an aggressive guy. they think it's larry ellison. he's involved. he has mark's phone number, calls it, mark is running the company. i backed him before, not leaving

now. investor carl icahn demand family dollar put itself up for sale immediately or he'll replace the board. he believed family dollar would attract significant interest from strategic buyers. they are open to ideas to enhance value and in the midst of the in-depth business review. we know his pattern. he's getting loud on this one. >> well, look, i mean, he looks at dollar tree, looks at dollar general, what is going on here? family dollar had the lead. family dollar was the dollar store, and the levine family ran it long enough. time for new blood. this is shareholder democracy. i think the capital is not democratic. i don't know. this is a campaign. this is the campaign to unseat eric cantor, and, you know, it worked. could be an incumbent.

>> of course. >> when i go to family dollar stores, frankly, carl, they are not just that nice, even the remakes are not nice. when you get a remake of a store like what's going on with rite aid, you get enthusiasm. when you go in a new family dollar, it looks like an old family dollar, and that's not good enough anymore. you go to a dollar tree, and you find yourself thinking, you know what? this is an interesting place to shop. seasonal merchandise. come in july 4th, and the whole first part is stuff you want to take home. go to family dollar, it's dowdy and the private label is dowdy to me. go into the some of the great supermarkets, kroger, their private label is more attractive than premium. go to family dollar, like, wow. >> separate from the shopping experience, do you like it relative to the others because of what icahn is about to do? >> look, there's a big store

format, have new blood, it works. you can say the same thing. garden -- i used to love to go there to olive garden and red lobster, but now there's other places i like to go more. i think that's what this is about. wow, they used to be better. i recommend bob evans farms. someone else can do a better job. when companies run, a board is supposed to fire the ceo. that's not happening at garden or family dollar. people are saying, enough is enough. >> we'll talk garden's numbers later on. we have a rough q4, people expected, but we'll get into the comps later on. in the meantime, drug maker shire rejected $46 billion takeover offer because the proposal undervalues the company. shire say its boards has concerns about execution risks soerlgted with the imposed inversion structure. they would redomicile in the u.k. for tax purposes.

we have a smarter conversation, but what's your take? >> oh, i know. i look at david, jim, what about the fundamentals? the key to the inversions is to see if there's synergy. if you notice, they continue to go higher because it's -- while inversion matters, the two companies are made for each other. that's a great one-stop shop. the two companies, do they have a lot in common? actually, so much in common in one division they don't need each other. the rest of it seems like cats meeting dogs, so this one seems very driven by inversion, not unlike pfizer has a good cancer pipeline, but no one says, wow, the pipeline is great, no one in the industry thinks, wow, shire, that is the jewel of overseas drug companies. look, they are playing the game. shire, one of the things a lot of our views are upset about is that stock has been going up for a long time. you read about abbvie, guys, why

didn't you announce this earlier, why are the guys who know what's going on making the money? i think that's going to be a lot of empathy bout this. it doesn't seem like a surprise. teems like people knew. >> between metronic and ge working hard, t-mobile and sprint close on financing, where is the megadeal picture headed in the next couple weeks? >> you're going to keep getting deals, look at mettronic, a great company, losing a war with ew, edwards life science, a company i really like. they leapfrog over everybody, and people love it as long as the acquirer's stock is loved with the exception being tyson in a bidding war with pilgrims, then you'll see the deals. you know what? if an acquirer's love, five deals pitched to the company, and some of them are going to stick. i like this part of the market.

i don't want to steal the ipos. yesterday bob talked about all the ipas. i don't want supply. i want increasing demand and supply taken out. these deals take out the supply. i don't want to see secondary spill, and -- but the ipos we had in the last few days, some good, some not so good. >> not regimely a fan of day one. >> no. >> buying on day one. >> no. >> i think back in terms of the poster child for the acquirer and the acquired. >> right. >> going up on the same day. significant amounts. >> completely. look, connected growth, boom, if you look at hillshire, it was interesting. when they first bought pinnacle, hillshire went up big because there was no growth. speaking to the kroger cfo yesterday, they do the deals, no growth. they didn't want to be bought, and hillshire goes back down. the dance that we're playing are

companies that are trying to get some of the aisle space in kroger, the drugstore space, feel they need deals because they are not growing fast enough. >> a fascinating summer. we decided that. >> typically it's not. i go to the beach, i call in, and nothing to do. now it's, like, jim, five buyers after five companies. here i come, be right back, sorry, beach, see you later. >> you're off next week. we'll miss you. >> i have to take more time off. the care givers in my life have said -- what do you do? the answer is, i love my job. that's what i'm doing. that's right. when we come back, apple's ceo tim cook have an iwatch up the sleeve? speculation for the company's plan for a watch today. we'll fill you in in a moment. pulitzer prize winning journalist has a take on amazon today. talking with him, and a look at futures. as we said, dow is going for six straight, first time this year.

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production of apple's first smart watch reportedly will start in july for a fall release. the up named device which many followers dub the iwatch will be

mass produced by a tieland company and apple expects to ship 50 million units in the first year of the product's release. there's competing reports today. the journal says only 10 to 15 million and multiple screen sizes, but it looks like this is about to happen. >> right, and i think -- apple has that great ecosystem, which amazon does not have, even though i like amazon. this is a platform. we have to look at apple as a platform in that many things will be added. now, i was using fitbit for a while. i don't know. i -- i think this is where the apple brand name can play a role. you say, you know what? i'm going to check this out. it's interesting. i was going to get -- i mentioned the other day i'm going to buy a surface this weekend, and i got an e-mail, don't buy it, wow, they listen, and their take away is, jim, don't buy a surface. here's something that i think, you know what? i want one. i want to have -- all my -- the

people -- the doctors i see want you to know more about yourself. i feel -- i see a world where i download this to my doctor before i see it. >> right, right. >> a smart doctor should want to see my downloads. >> the journal says ten, maybe more than ten different types of sensors, obviously, as you point out, focused on health and fitness. >> right. >> do you think it needs to be more than just a health watch? a health and fitness data gatherer? >> i got to defer to kevin plank who has done a lot of work on this, and i think the answer is that, yes, it has to be more and more sophisticated. intel, by the way, wants to be in the area. i want a readout of myself. i have a car, and it has a better readout than i have of my body, and i want to -- you know, you fill out an application with a doctor, and they take a look, order an mri, maybe they don't. how about we take a blood test for cancer -- i had a company this week, disruptive company, they take your blood.

give them my download, look, here's my vitals, the guy says, hey, listen, you don't need to come in. >> funny you mention that. at a conference i was at this week asked about the most exciting thing in the world of mobile, health care was the first answer. first answer. >> yeah, i mean, it's time. it's time as we get older, it's time that we have -- here is what my body is up to. you know, it's like -- dr. oz, a great doctor, you, the owner's manual, but we lack a readout of the manual. this is not right. our doctor can look at it. we use aethena health care, shorts take that. we have -- the ecosystem we agree to waive privacy to our doctors because i think that you're afraid that people can see things, and the doctor says, would you come? ? item nine is wrong. >> the way the car is called into maintenance, service in nine days. >> i have to do the treadmill

with my excellent heart doctor, but he would like a quarterly read out. >> tell you what, thinking of a barclays with a buy on app 8 for a very long time, go to an equal weight because they don't believe any new product moves the needle in a material way for apple. >> new products don't move a needle until you try it. he hence why i thought the surface. i thought about the amazon phone, and i was not sure, and then all the sudden, i look at the -- it's always the app, i look at the ad for at&t, and it says, oh, look at the features you get. i said, you know what? i'll go to the at&t store, take a look at this thing because i like the deal. now, if apple does this in conjunction with something or has to do with the istore, the apple store has something interesting, why not? if you have disposable income. now, income disposable income matters. >> this is a miller piece today. >> in the country, people are

not doing well, but there's, what, 40 million x-boxes sold? does that give you a read other than the fact you're not doing jobs? you're not at work. hey, plugged into x box, and my mind did nothing for four hours. i don't know. i think health matters. >> and productivity. >> wouldn't it be great to have the doctor know something about you before walking? >> sure, absolutely. >> how much time is done saying, how you doing? item four. >> the journal says the specks are being finalized, but production is around the corner. >> when does tim cook get the benefit of the doubt? look at the antitheft thing? it's working. the app universe is so good, blows my mind away, please. they will. >> we'll see what happens in october. when we come back, cramer's mad dash, opening bell, premarket, and more "squawk on the street" from the nyc straight ahead. ♪

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about eight minutes before the bell on friday. let's get cramer's mad dash. a couple calls in the auto space. goldman ups auto nation. >> oh, yes, that was important. >> and there's carmax. >> the best quarter of the week, remarkable number, increased 13%, wholesale units terrific, used car, make a fortune, carl, people continue to buy cars. they continue to spend on cars.

you get a job. you get a car. you get a car, you get a job. this is about the job economy coming back. i want to contrast that with owens corning. this took my breath away. we need more information. roofing volumes may be down 20% for april and may, carl, i understand this was winter, but this is supposed to be when you do your roof work. are people spending less on house, more on car? one thing is absolutely certain. you need a car if you have a job. but this whole housing's become a drag on the economy except for the highest -- we'll talk about that later -- but i don't know this is kind of a metaphor for the company. i wonder if this is going to hurt home depot. they had a late growing season. home depot was well run by frank blake. it's going to be a challenge begin the roofing number. what helps is insulation and

composites business is good. you know what? maybe owens corning is having execution -- this was not a good number. surprising. carmax and auto nation. i wish i was in business. they have the demand and cars. >> you have the television dealdea dealer commercial attitude down, you could do that. >> come on down! >> you're watch sherwin williams and whirlpool? >> that's important. we are really split. i like a possible breakup -- the idea that fortune brands could merge, the idea that these companies continue to bring value. mixed picture housing, new home sales next week. i just keep thinking that housing should be doing better, and maybe it's because tuition is too high, maybe mortgages are too hard to get. this housing market is vexing the fed, and it's vexing me. >> yeah.

we know it's not just the individual buyer who is at play here. we have institutions that have been in the game, made a lot of money, maybe enough money for now. >> yeah, boy, i got to tell you, i'm -- in the new york area, there are no homes, okay? i mean, i was looking for property the other day. now, this shows you where we are. beautiful water front property, i'm not kidding, hey, last universe -- the fact that it stunk did not detour me from looking at nice apartments. that's where we are in brooklyn. >> that's right. >> it could be venice within my grandchildren's lifetime. do not rule that out. >> there's cleanup to do. we'll get the opening bell in just a minute. don't go away. bulldog: ah, the dog days of summer!

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in india we have 400 million people who don't have electricity and i just figured that it's time i do something about it. what we're doing right now along with ibm is to actually transfer data through the satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when it's needed by the consumer.

[b♪ll rings] time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. you're watching cnbc's "squawk on the street" on this friday, live from the financial capital of the world, opening bell in 90 seconds, dow going for six straight. of course, tomorrow is the first day of summer. >> yes. >> a long time coming. by the way, year to date, as of this moment, the dow's gain for

the year, about 344 points, almost exactly 10% of last year's gain of 3,440 points. >> what happened is i was listening to scott, a real stock pickers year, if you had kroger, you did magnificently. if you bet with whole foods, you've lost as much as you made, and so it's been kind of up ended. i think about starbucks, controversy in the "new york post", i think i can correct that if necessary, and, boom, an upgrade, coffee down in price, rise it a little, and margin expansion. stocks more abundant comes alive, and other stocks that just killed you in the growth space, and there's other stocks like carmax, like, are you kidding me? that's, like, they discovered a new drug. it's just a car for heaven's sake. >> yeah, a new car.

there's the s&p at the top of the screen. we'll get our first opening bell here for the friday. down here at the big board today, performance sports group celebrating its ipo, and name change today, we'll talk with the sports equipment company ceo in the next hour. the nasdaq, the rbc decathlon raising money annually for cancer research, and that will take place this sunday. >> it's the only way i can skate. the skate is like this thick. you know, it's like walking. i love it. if i had the thin skates, i, like, fall down. speaking of stocks that killed you, garden under performed the s&p by 15 points this year, 84 cents misses by a dime, red lobster comps down six after almost down nine in the previous quarter. >> i think about what dan meyer told me. they are fuel, that's all they

are are fuel when you go to olive garden. >> meaning the food? >> yeah, never thought of it like that. i think the places are tired. they have a specialty group that's doing better, but this is one of the things, carl, you keep thinking the atavists say that red lobster could be run better. they throw it away. the numbers are not good. protein is loved. we know when we go to nice restaurants, a piece a fish is what you order when you want to be good, and nobody associates them with health and wellness. that's a problem. >> yeah. the journal has a state today, i think they are citing cracker barrel on this one. the number of u.s. casualater ies is up, and traffic did down 9%. go to a mall, there's a million places to choose from, jim, and that's a problem. >> yeah. i think one of the things, though, we have to be careful of

is i went to panera last night. i'm surprised. i spend too much at panera, north of ten, with a drink, 13. i want less money to be able to go out, and i think a lot of the guys are challenged because of food costs. think about what -- think about what's going on. i keep coming back to, okay, look, it could be, like janet yellen said, noisy. coffee came down 20%, but these guys are all being challenged to raise the price of the menu because of the costs. >> garden's food costs up 85 year over year. that gets your attention. >> right, and remember the guys from deadliest catch don't like garden because garden is tough with them for when they bring in their crabs, but the fact is it costs money to bring in fresh seafood, so these guys are squeezed, and you can't raise price, and that's, you know, they are also old. red lobster is old. i remember when they first

created red lobster, like an affordable place for great seafood. now i just don't equate them with something where i'm going to have a healthy meal. >> at red lobster. >> yeah, at least fresh and ogranic if i go chipolte with the salad. the calories are bad. don't look at the calories. oracle down 5% now. again, it's going to take you back to levels in early may. >> look, oracle is in the transition. there were execution issues. there was a charm offensive oracle that happened in the last two months with oracle management coming around. that was probably premature or drove the stock too high. this is all about can oracle take business back from workday that they are losing of which they have to first say that they are losing it. they have -- they have to say,

look, when new contracts come up, we win them. it's oracle. it's sap. it's microsoft. last year, they had the deal with the sales force. the year over year comparisons were not great. oracle has been a buy only f several times. this is no difference. smith and wesson. >> cabellas told us gun sales were down. >> forgot about that, absolutely right. >> yeah, this one people did not want to believe. look, do we have guns -- my family has guns, but not handguns, and i think that smith and wesson had the spurt, and now it's come back down, and turns out they were not immune. people felt the problem was with the hunting rifle, but guns across the board declined. i don't want to get anyone mad at me. i'm not saying guns are good or bad. i'm saying this is something people felt handguns might be immune.

it looks like all gun sales are weaker. >> yeah. i want your take on oil, 107 now. we know gas prices for this time of year, highest they've been since 2008. >> got to pay attention. >> you said yesterday it has to come down. a chart argued that the -- because it's been quiet and crude and because we are -- d.c. is the next big move to the downside if and when there is a move. >> you can't make that conclusion with -- unless the u.s. government unfortunately gets involved to stop the isis. a powerful piece talked about if we exported oil, oil would come down. right now, we've so much oil coming out, and yet we can't export it. we could lower the price of crude ourselves because we cannot refine it. there's five refineries being built now in north dakota, five, because we don't know what to do with the stuff. export it and the price of oil comes down. >> do you think the average for

gas, 3.6 7, and in 2009, it was 2.68. >> i don't like tax increases, and that's what it is. plain and simple. it goes to, well, i don't know, valero, every right to return -- earn a cost of capital, and i think that a lot -- there's a big split. i think the administration -- there's people in the administration saying, look, as long as gas prices are high, we use less fossil fuel. that's a tricky issue if you're lower income person trying to take a job 25 miles from your house. >> look at the winners today, baker hughs, haliburton. >> coverage on haliburton saying a buy. i have oil consecutives on constantly, and basic energy was on the other day, a mid range oil service company. carl, they're biggest constra t constraint? trying to find employees.

the mismatch of where the employees are and where they need to be is horrendous in the country. that's something the federal government could do something about. >> yeah. with that, dow up 35, six in a row. we'll see if it holds. >> i think people are sick and tired of it going higher. complacency. you know what, you're short kroger because you think they will miss. you have to cover. people are short. the only short is the gift that keeps on giving is coach. >> coach, closing another 70 stores yesterday. >> coach lost its way. don't bank on a turn there because once they get it wrong, it stays wrong. >> interesting point. >> yeah, i mean, coach, there's a will the of overweights because of the holes -- probably have to go to sells before it bottoms. >> yeah. >> you know, this oil move is amazing. it's breathtaking. someone in the live show, jim, chevron, you know, stocks are broken out of ranges that have

contained them for a very long time, and that's one of the things that, carl, people can't get arms around. 131, no, how can it be? when american express is over a hundred, what? that was an 87 for two years. we are having a sticker shock on stocks. >> interesting one too. with that, mary thompson, what's moving on the floor? hey, mary. >> hey there, carl. expecting heavy volume because it is a quadruple, the simultaneous expiration on stock index and futures today. modest gains at the open, as you mentioned, dow up 30, s&p continues a run into record territory today. the nasdaq, actually, has come off a little off the highs, weakness in teches. semiconductors are a little shaky in early trade. s&p up for the best weekly gains since april of last -- or of this year. this in the face of higher bond

yields, 10-year yield continues to climb. some say the fed is ready to keep rates low, expecting pickup in the inflation, yields there, and jim mentioned continued higher oil prices today, in part, because of concerns about the unrest in the middle east. as it continues to climb, the dow is holding on to the gains in today's session. as i mentioned, tech looks weak. we are seeing strength in energy. drugs and retailers today, the drug stocks, of course, responding to the continued merger activity or expected merger activity in the group. oracle, jim mentioned it, the company missed on earnings and revenue. revenue is expected to increase in the current quarter, but keep in mind for the last 11 quarters, revenue growth is weak, less than 5%. investors looking to exceed that in the current quarter this time. ge, reason being the rival,

siemens presented an improved rival bid. of course, ge is bidding for this company since april. this is one of the most important deals done by ge, and we should know the outcome of it by monday, the deadline for the board to vote on the competing bids for its power business from both ge as well as siemens. you heard jim mention smith and wes son. like other gun makers, there's a pullback in sales. sales picked up last year in the wake of the newtown massacre. typically, you see the type of response in the gun area because people jump in expecting there will be further restrictions on owning or buying ammunition and guns leading to a pickup in sales in guns and ammunition. that was a bit exhausted as they warn on the full year. the dow up 27 points. s&p, again, into new record territory up over 2, and the nasdaq up just about 3. back to you. >> thank you for that.

the third consecutive intraday high for the s&p, 1961, almost 62. >> very powerful rally going on because you very rarely see utilities go up, the oils go up, consumer products go up. a lot of people are mystified that how all the groups go up at once. i come back and say there's not a lot of supply issued right now. there's a lot of buybacks going on, people blown away by a couple quarters, fedex, kroger, very important big names in supermarket and transport that made a lot of people feel like, well, wait a second, i can't be short. yeah, here's a piece in the "washington post" why markets ignore geopolitical crisis like around the world, on that note, the point is largely, there's nowhere es to go, earnings strong. let's get an update from iraq, michelle caruso-cabrera is in northern iraq with the latest. hi, michelle.

>> reporter: hey there, carl. a big development in the last couple hours, could be the final push for maliki out. the shia sect has called for a new, quote, effective government. particular csignificance, the message delivered in friday prayers. the shia sect version, their jurisprudence, clerics have authority. we see this in iran, of course, he issued a call for arms last week to form militias to fight the insurgents and thousands of men rallied to do what he said. they heeded the call. we heard president obama decline yesterday to endorse maliki and thinly vailed comments suggest he was not supportive, secretary of state kerry said so. we are hearing voices from europe as well. it could be that maliki's time

is already numbered. we'd like to show you local n p newspapers and cartoons. they tell a good story. this is a magazine here in kurdistan, northeast reason of iraq, semiautonomous hoping to be independent someday, there's maliki surrounded by bombs, and the labels on the bombs say "isis," that's the militant group in southern syria as well. this came out long before president obama's speech yesterday or the statement from the cleric today, but, certainly, maliki under deep pressure so far in iraqi state tv, he said he will not step down, but the pressure may be too great. we'll have to see. back to you. >> michelle, good point, especially after that presidential press yesterday. michelle caruso-cabrera in iraq for us. still to come, wait until you see cramer with restoration hardware's ceo last night.

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17 pounds, the stock is up $17 pounds. it's up here. you said few complaints. it is a topic of conversation. >> yeah. >> would you do it again in light of the fact that people in social media said, oh, come on. >> do we apologize if we sent the books to the people not interested books? that's not the intent, obviously. we don't make money that way,

it's not good for the company or anyone. the source books are the only manifestation of the brand in the market, and it's important. >> that is the co-ceo of restoration hardway with jim last night. genius of putting the catalog on the barbell. did you left it later in the show? >> not me. gary pumped it. he's l 4. i have l-5 problems. stage director, my executive producer. this was -- this is -- you're looking at the great merchant of our era. talked about going to a big mall, you can't -- there's no windows. it's -- kaupt grow anything in the store. he's reinventing retail. bricks and mortar, catalog, gary basically said, listen, the net is just too flat for us. we don't want to be bound by that. we want the source book in people's hands. that's an interesting thing. listen, i apologize to people who didn't want it, but he's

making the stores exciting. this is the most exciting retailer in america. it is not going up. i do believe it is early innings, carl. gary friedman is a man to watch, not bound by the four walls of the web because he thinks the web is limiting. more importantly, he's going to make it exciting to shop again for everybody. the stuff is not cheap. >> that was my question. is there a limit to how much they can scale given the barriers to entry as a consumer? >> i think that there are -- there's a very wealthy cohort in the country that likes a bargain, and if you want belgium linen and finist silk, go there. i've done well in my life. i've done three parts of the house with restoration hardware because i people like it's a bargain, but high quarter. that's gary all over. >> at 88.60 here. >> goes higher.

>> really? >> it's way too low versus the ideas gary has. he's been here since 2001, coming around. they are disrupting themselves. we had a great disruptor series on cnbc. he disrupts himself. what an exciting man, place, team, hard to get your arms and head around how great they are. >> yeah, and what a month they had so far. june is block buster. >> they reinvented the mall. stock trading in a moment, dow and s&p, maddthe dow is 30 points from a high. back in a minute. ou madd

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why pay more for less? call today for a low price on speeds up to 150mbps. and find out more about our two-year price guarantee. comcast business. built for business. mark, the hockey legend, is on the floor the nyse, taking pictures after a season wrapping up, talking about the growth of the league, him named as the sports executive of the year. amazing. >> exciting. you know, the rangers had a lot of great stories, by the way, an extremely charitable man who never talks about charity. >> is that true? >> yes. >> the mark of the good ones. >> exactly. cramer and stock trading. >> there's something fishy going

on in the peer world, carl. you see morgan stanley upgrade from equal weight after a run, you say to yourself, big meeting coming up, is something going on? is -- going to sell its stake in sab miller? will they be able to buy a stake in will ambev buy -- honestly, they could buy the stake of sab miller. there's a deal in the beer world. winner? constellation brands. it's been fantastic. winner, molson coors. there's so much money made in beer. i got to tell you, the sell to hold, they are afraid. sma something's going to happen in beer. the companies are well capitalized. do not be surprised if they make a bold move. everyone's going to profit. >> the upgrade itself is not exciting, right? >> no, you just don't want to

have a sell when something big is about to happen. >> embarrassing. >> like, oh, you put it to a hold, something happens in the next ten days in this beer world that i think will rock us and make us pay more for beer, and not just the fact that modellonegra is the fastest growing it's hard to pour. i got to tell you. i don't have a -- i have a degree from again nesz. i will be able to pour. >> i'll help you practice. what's on "mad money" tonight? >> a disruptor. they have plant based eggs. i tried them. you could not tell the difference. this is a product that one of the richest man in asian backs, a product to cure the problem of salmonella that i had when i was in college. there's lots of eggs recalled. revolutionary. i love this disruptor series so much.

people are so smart, carl, and business does so many great things. >> of all the issues in the country here and around the world, the innovation that bubbles up from our own is mind blowing, jim. >> it's called progress. progress happens in america faster than anywhere else. >> i mentioned you're on vacation next week. >> yes. >> any final imparting bits of guidance? >> five deals next week that will blow our minds. as we get into the summer, they want these deals, and we'll sit back and say, oh, wow, how did i miss that? it's going to be a week of, how did i miss that? >> have a great time. >> i'll miss you. you know, i don't -- i love working with you, okay? hey, listen, it's, obviously, genuine because we'll hang out over a couple weeks. >> see you tonight, "mad money" 6:00 p.m. eastern.

simon? >> fresh records. we need big guns, talking about the markets and where we are with amsazon in particular. the only congressman who served in both iraq wars. mike coffman joining us from colorado as president obama sends 600 personnel back in the country. performance sports quoted, up and trading. we'll talk to the ceo. hour two heading into the weekend. flying, means keeping seven billion transactions flowing. and when weather hits, it's data mayhem. but airlines running hp end-to-end solutions are always calm during a storm. so if your business deals with the unexpected, hp big data and cloud solutions make sure you always know what's coming - and are ready for it. make it matter. then boom... what happened? stress, fun, bad habits kids, now what?

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welcome back, an all-time enter day high for the s&p, markets in the green again after the 21st record close yesterday, but with volume low, tensions in iraq, worried about going into summer? >> the smart phones front and center, revealing details about the behind the scenes thriller, and we have a glimpse of this week's coal yum. ? what does the red lobster look like, a disappointing report. >> and big changes coming for

performance sports, once own by nike. the company changing its name, listed here on the new york stock exchange. we'll have a first interview. another record day high, dower on pace to close up, the s&p modestly in the green after the 21st record high. slow and steady climb. can the rally hold? let's bring art, and i was asked on "morning joe" why is the market going higher and higher? we have iraq, americans feeling financial pressure, is this all the federal reserve? >> well, it's a good deal of the reserve, plus the fact you have an enormous amount of corporate buy backs, amount of stock reduced, and that is a key factor, and that's helped in keeping the earnings up where they are. the gains have been frustrating because they are incremental, but they keep coming along. for example, this morning, you

got help from a quadruple exploration. there was just under $2 billion to buy, and in five minutes, we did close to 400 shares, came out of the gate strong here. >> what do you think of the vix? continues to go down, multiyear lows for the vix, volatility index. does it signal anything about the fundamental. >> he doesn't like the vix. >> i think it's a broken instrument. i've said that for years. everybody's talking about complacent si, and the vix reflects that. could be the case. >> surprised at how little effect iraq had on the markets? >> yes, i am. the markets decided, with all do respect to the news media, they monitor the other assets. they are looking at oil. they are looking for confirmation from things like gold and the yield on the 10-year, and if those begin to

move, then you may get action. the weekend worry is that isis may move its attention to samara, which is the location of some of the holyist sites of the shia, and if they move in and desecrate the sites, there's high risk that could turn into a regional holy war, bringing in people from different nations in the area. >> what do you think of this? looking at gold here, what do you think of the short covering frenzy yesterday? >> i think it came across naturally. if you took it apart minute by minute, it's when they reached the 1300 lev, turned into an absolute spike, shot up to $20 in nanoseconds, and i think that was the shorts trying to protect themselves, buy stops in around 1300, and once triggered, it was off to the races. >> what do you feel -- we didn't speak to you yesterday, what do

you feel about janet yellen at the federal reserve, deliberately ignoring the pressures and the dots moving? >> credibility is somewhat at risk. you hear that around the street. some of the gold bugs and others are talking about maybe a two year tenure for janet, but i think the fact that she was dismissive of the inflation and other aspects in there have people a little worried. >> look at the deflator, yes we have seen rising inflation and prices at the supermarket level and various other places, but at the moment, it's not enough for the fed to worry about, is it? >> coming in at 2%. >> the trend, yes, has been doing that the past three times, but overall, there's slack in the economy. >> particularly, among the gold bars, who remember the inflation, is that it began

like -- it began gradually, gradually, and then suddenly. the concern is that things might get out of hand here. >> did you see the op-ed in the journal today? writing about quantitative easing, writing about the fed policy. a line that jumped at me, there's no balance in wealth creation, the sooner and quicker the fed exits, the sooner businesses get back to business and labor gets back to work. it was not scathing, but the fed did all it can do. there's an inequality problem that's not helping most americans. >> and janet yellen is very aware of that breeding inequality problem. she tried to address that in her first press conference. she may have to try to address it again. the fed's got a couple credibility problems here. >> all right. well, art, good of you to join us on the fed, the vix, and the markets. joining us now on set is the

"new york times" columnist, pulitzer prize winner, and contributor, good morning. >> morning. >> what do you think about the fed? >> fairly interesting, fairly significant, not a trend yet, but be aware of this. i said for some time that i think investors need inflation hedges in the portfolio, basic material stocks, commodities, producers, maybe index funds. i'm not a big fan of gold, but maybe a little gold here is appropriate. i'm surprised it's not moved more frankly because pressures are building. look at yellen. she's a monetary dove. i thought it significant. immediately after being confirmed, goes out and holds hands with the unemployed. well, you know, bond, and that's her priority, and i think investors need to wake up we'll have a situation. >> i see it differently. i think people are waking up to the idea that the policy statement is deliberately manipulative and the desire here is not to scare markets talking

inflation, not to push the yields up. i mean, in just three weeks, we moved 20 points higher on the 10-year yield. we're moving, but they don't want an acceleration on that. >> they don't want to panic the markets, and i applaud that. it's as sure as you can get in the investing world, they are going, they are going to stop the qe and raise interest rates next year, pretty much on target. that i find surprising that stock investors are not focussing on it. 2015 is not far away at this point. >> the second half of the year factors that in. >> i would think so. >> you think deflation camp is dead? close the book on that? >> yeah -- well, pretty much. feels that way to me. i'm not hearing talk about that. all the worry shifted, inflation is out of the barn door and hard to get it back in. >> what's interesting about the market action, utilities lead the way over the last few stations, staples, a defensive

play in the record rally. >> defensive, especially for utilities, until the interest rates go up. utilities trade like fixed income, and, you know, it's great until it isn't, and i don't see the rally going on longer, to be honest. >> talked about amazon all week in the context of the phone. >> right. >> you're taking a crack in the news over the weekend in the column. >> i think this is a tremendously significant because it actually shows the antitrust laws sort of work. the government sued apple and the book publishers. why are you not suing amazon? well, they are out there to foster competition, not competito competitors, and now we are seeing real competition in the book retailing world. amazon is refusing to promote books, the new ruwling mystery out this week. they are slow walking it to people who order it, and competitors move in. everyone from walmart to the independent bookstores with clever, imaginative, aggressive promotions to take share away from amazon. it will be fascinating to see how much market power amazon

has. this is real competition. it's going to benefit consumers. it's going to benefit readers. it's going to benefit authors. i think this is a win for the justice department. >> you talked to people who don't want to be named, and even they admit going up against these guys is like having a slingshot when they have a tank. >> yeah, and they quote this famous thing from brad stone's book how we're the cheetah and the publishers are the weak gazelles. we basically do feel like the weak gazelles, but they are doing something here. they have power, they control the contents like the cable standoffs, and you get a big seller like rowling, next week patherson, and we'll see. >> i wonder what you think of the amazon move into the phone business? everyone seems to have an opinion here. >> i wrote a lot about people moving into phones, and they all pretty much failed so far. the idea you point the phone at a product and immediately buy it on amazon is amazing and clever,

but, look, the google people, the androids and iphones will get that. you don't just get amazon, but everyone else too. i don't see the competitive advantage lasting long. >> thank you for joining us. >> thank you. shares of garden hit after earnings, red lobster sale, of course, the question, will it help the turn around? dissecting the numbers in just a moment.

garden restaurantings earning 84 cents a share, 10 cents short of estimates. revenues down almost 4% this morning. rachel rothman has more. rhing, getting used to disappoinments, how long is it going to take before they engineer some kind of turn around at olive garden? >> the first thing you have to consider is activism is a tremendous amount of distraction for the company, and the thought they go into the annual shareholder meeting in september and all eyes focused on operations between now and then is pretty unlikely. i think if this is ongoing, you're going to see sales continue to be lackluster. >> the sale of red lobster, referring to, the more than $2 billion sale there and activist

pressure, wanting to take control of the board of directors to change the strategy. would that be a good thing for this company? >> it's hard to say. you know, activists traditionally are not geared towards operating companies, and essentially what you now have a is fundamental story where it's about the turn around because the sale of red lobster is going to move forward in july as planned, and so does starboard think another management team does it better? i'm not sure. >> i think it's worth a lot more. >> the company is worth more in their view, absolutely, but that's dependent on sales. >> you know, rachel, somebody said the other day you have to understand in hospitality, it's all about the entire business knowing what it's doing, knowing what its market niche is and energized towards that. you have that with star jp bubu but you don't have it now with clarence otis, basically a money

guy. the money guys are going round and round and round, and that's not what, ultimately, this industry's about. it's about leadership. it's about people selling the grassroots. would you agree with that to some degree? >> to some degree i would. i would consider when joe lee was running darden, an excellent operator, it was different, and there was not the fast casual encroachment and supermarkets that we have today. today it is a much more fiercely competitive industry with a lot more supply, more alternatives, and more focus on value, which makes it harder to drive profit the. it is not the same environment they operated in, you know, ten years ago. >> one of the proactive sort of ideas out there around the company is split it between the olive garden and red lobster. i know they are selling red lobster and higher end chains they have like long horn steak house. i couldn't help but notice they had a gain in same store sales and olive garden went the other

way. is that a feasible idea, to split them up? >> i think at this point, no. it would essentially amount to spinning off the concepts that have just recently acquired, including yard house, and both of which posted lackluster same sales. could you split long horn off? you could, but concern the deleverage at that point and see where the competitors, for example, texas roadhouse are streeting on a stand alone basis and whether that creates value. the key here is turning sales at olive garden with or without activis activists. if you can do that, the shares will be higher. >> how long do investers have to wait before that happens? >> unfortunately, i think as long as the activism is going to go on, the sales are probably going to be under performing because people are going to be focused on the activists's efforts, meaning the management team, and not necessarily focused solely on driving comps at olive garden.

>> has to be tabout the busines too. olive garden has a value perception, and in a world where this competes on prices and gained in such popularity in terms of quality, how do you do that, turn around and freshen up a brand like olive garden? >> it's less about convenience and more on experience. you highlight panera, excellent con cements, they are driven to convenience because they are faster. think of olive garden's tag line, when you're here, you're family, it's an experience you share with other people over a period of time. they need family and friends back sharing meals together in the restaurant, and i think it needs to be less about convenience and less about value alone, and more about the perception and experience you have with friends and family, which is where they were, the corner stone under joe lee as you mentioned. >> and the garlic bread. thank you for joining us. up next, ringing in big

changes at the new york stock exchange for the country's most popular sports brands, changing its name, having listed right here on the big board. the company expanding out of its trademark hockey equipment. talking with the company's president and ceo live after this. 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.

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welcome back to "squawk on the street," check out owen corning, lowering earnings outlook for the year, this on continued weakness in the roofing business. this stock currently trading down about 4%, and for the year, the stock is down about 5%. carl, back to you. >> thank you very much. from the rink to the diamond to the nyse, formally owned by nike, a equipment manufacturer, now popular of the easton baseball brand. the ceo is here to celebrate the listing on the new york stock exchange under, and thank youing if being here. >> great to be here. >> brought the party as well. we have a shot of outside.

goals and batting cages and -- >> synthetic ice. >> really? >> oh, yeah, do it all. >> a field day all day long. >> perfect. >> timing with the world cup, in terms of awareness. >> yeah, it's great. >> what's the market look like from the equipment stand point? apparel's crowded, competitive, but what about equipment? >> it's different by sport, so we just entered in a really significant way, the baseball market with our acquisition of easton baseball, softball, and there's quite a few competitors in the space. very similar to what the hockey industry looked like, fewer now, but invest $20 billion a year in development, and product and technology wins. >> you brought a bat which is hard to demonstrate well on camera, but basically the bottom turns, so as you swing, it gives you what? >> keeps you straight right in the power position, palms up,

down all through the swing, inside pitchings outside pitch, changeup. it's coming to retail this summer. >> i find your history with nike pretty interesting. you used to be a part of nike, and then spun off of it. >> yes, that's right. >> what did that allow you to do? >> we loved being a part of nike, one of the greatest brands in the world, but we were a small part of the business, and the ice hockey space. by separating, we had great partners with the private equity group, allowed us to make investments in the business. we have acquired seven businesses in the last six years across multiple sports, and it's been quite a ride. >> sounds great fun, a great hobby. why should investors buy your stock? >> well, one of the things we've been able to do as we continue to participate in the sports is when we bring technology and high performance to the sport, we're actually able to raise average selling prices, we have a pretty strong cash flow in the business, the model is cap

light, and we demonstrate significant and top line and profitable growth. >> where do you make this stuff? >> depends. we have some in-house factory, one in new york, one in ottawa, one in quebec and asian sourts as well. >> do you message competitors come in and right the way through or not interested, is this a niche area? >> the businesses we are in are about authentic brands. if you don't have an authentic brand in the high performance sporting goods space, it's difficult to compete. consumers want to and trust certain brands, and with the high performance that we bring combined with the brands, it's a pretty high barrier to entry. >> what's the top seller? >> probably still be in ice hockey equipment. we launched a new line of high performing ice hockey gear in april. >> do people play ice hockey in the country? is it popular? >> in fact. >> it must be good for you.

you see live sporting channels, nbc sports and so on, showing live games, paying more for the sports. >> absolutely. >> that ultimately has got to be good news for you. the more you take, and i know it's not niche, but smaller sport, build them up, viewers p viewerships on screen, how do you engage in the process? >> lacrosse is a super example of that. more colleges and universities have that, and they are airing far more games than they ever have. had the final four a little while ago. it's been really a great season in that sport, but that's a great example of the more that's on tv, the more kids want to play, and we participate in the growth. >> how do you characterize everyone talking about soccer this week? all the kids play soccer, soccer games every weekend, but it's not cross the some magic threshold with professional soccer. >> yeah, we just recently got into the soccer youth apparel business with the brand. it's exciting place for us.

we are sponsoring the largest youth soccer thing in the cup this summer. >> you're coming into soccer against nike and adidas? >> in youth apparel. it's a youth apparel brand. >> it sells? >> they do a good job in footwe footwear, but this is the next tier down where all the kids, towns, associations play, they need names and numbers on the jerseys and that sort of thing, it's a great business for us. >> finally, how global does it get? canadian and north american or huge asian and middle east sales? >> before the acquisition, 25% of the business was outside north america. we have a great presence and look for further growth there. >> congratulations on a great day one. >> thank you very much. >> come back. >> we'll do. the ceo of performance sports group. straight ahead, secretary kerry goes to iraq while the state media is saying that

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directions. chief international correspondent is live in northern iraq with the latest. hey, michelle. >> reporter: hi there, we are awaiting more details about john kerry's trip. he's planning oncoming to the region and iraq, and what message he delivers can probably be guessed based on the president's statement yesterday and when kerry said earlier this week. maliki, the prime minister of iraq is getting a lot of messages. the biggest news in the last several hours is the top shite clericing in the friday prayers delivered a message suggesting that iraq needed a new, quote, effective government. thinly vailed criticisms. that could be the final push that forces the prime minister to secede his position to someone else. we have to see. there's no details or clarity on what is the situation with the refine

refinery, iraq's largest refinery with a capacity of 300,000 barrels for processing every single day, which is offline, which is why there are incredibly long lines here in kurdistan and northern iraq because there's a contraction in supply, and, plus, people left to come to this region to buy gasoline. the lines are whorrendously lon, lines are long. we went to the local market today to see if there was hording going on when it comes -- if there were fears about whether or not there was going to be increased violence and in the past, we saw people buying flour and rice. we got reports there were some refugees coming here to buy extra flour, extra rice, prices had gone up slightly, but, certainly, it was not a run on the situation there. certainly, the situation with the gasoline is incredibly difficult in this part of iraq. guys, back to you. >> okay, michelle, thank you for joining us. michelle caruso-cabrera live on the ground in iraq. we want to get some more

perspective now from the only member of congress to have served in both the first gulf war and iraq war. representative mike coffman, a republican from colorado. congressman, good morning, thank you for joining us. >> good morning, thank you for having me. >> you served in both of those wars? >> i did. >> so what do you see? as we watch together, what do you see in this conflict, what do you feel about what is happening that we may not? >> well, first of all, it breaks my heart that after the extraordinary sacrifices that so many men and women in uniform have made in terms of securing iraq, that those are being washed away, but what i do see is a recuring pattern where the sunni-arabs in iraq feel they have been pushed out, and they have, by a shia dominated government, and they are in

rebellion. there's a coalition government that existed before with tribal leaders and elements align together for purpose of pushing out the shia government. >> the white house is committing overall now 600 military personnel, half of them, of course, to protect the embassies, half to go on a reconnaissance and cooperation mission. when you look at those sorts of figures, do you feel -- i mean, there is an argument, of course, that iran is already on the ground, and therefore, to a certain extent, this country has to respond because of what iran is doing. do you see that as a dynamic? >> yeah, i certainly agree that putting our forces into the embassy to secure the embassy is an important requirement that the united states has, but in terms of putting forward what is a symbolic military presence and what is devolve to be a sectarian war without any

preconditions upon the iraqi government and to reach out to the sunni-arab population, the kurds as well in terms of reconciliation i think sends a bad message. >> what do you think kerry should do this week, moving through the middle east, europe, presumably meets maliki? >> he has to insist as a precondition, of course, we have already committed some forces, but for any additional forces, that maliki lay down the foundation. well, first of all, great if he stepped aside, but that this shia-dominated iraqi government lay for reconciliation. this is a political problem without a military solution. >> congressman, the white house is saying it's not at this stage considering air strikes actively, but, clearly, that is on the cards. it appears the white houbelieve doesn't need to seek congressional approval for that. the last time they wanted to

intervene on syria, the red line then, it was clear they couldn't get it past congress. if there's air strikes, do they need to ask congress, and do you think it would be passed? >> you know, i think that the president should go to congress and seek authority for any military action beyond what he's done. we'll have to debate the legality of whether or not he has that authority. i just don't think -- i don't think it would be effective. i don't think it would be effective because in terms of the areas -- areas that i was in, fallujah, the communities that were sunni communities that have all fallen to the opposition, the fact is that opposition, that military capability will merely fall back into the civilian population as they did before, and launch a guerrilla war, and i don't see the areas, the non-sunni

dominated areas falling. i think all of those areas have already fallen. i think you have a mobilization of the shia militias, and can argue the iraqi army today, when is left of the iraqi army, is shia militia in and of itself. reconciliation is the only solution, and that's a political solution. >> congressman, timely, we had a discussion about what traders worry about over the weekend. o one fear is they get to samara, attack holy sites, it's a regional play with shites around the region. does that change the calculation for you? >> they have done that before in february of 2006, and i mean, that really -- you know, certainly intensified the sectarian conflict within the country, and no doubt sunni extremists will seek to do

something like that, but it is already a conflict of a regional nature. iran is already involved in the conflict. i think we're kidding ourselves from that standpoint. i think the administration took their eye off the ball. i think that they wanted a political narrative that we were out of iraq going into 2012 election, and i think that without any residual forces there to have influence over the government and iraq, i think it destabilizes the country, so i think, again, i think we have got to -- prior to putting forces in, we have to have reconciliation. >> congressman, we appreciate the your time, thank you for joining, representative coffman live from capitol hill. thank you. >> thank you. dow's up 31. hey, morgan. >> check out coach, trading at four-year lows, underweight rating on the stock, lowering to $29 from $36 a share, this pohl

following the analyst meeting yesterday saying it would take a 250 million to $300 million charge to close 70 stores in america. right now, coach is trading down more than 2 .5%, and right now, the stock is down nearly 40%. carl, back to you. >> morgan, thank you so much. it was a $2.4 billion bet, but a second bankrupt could bring rebel casino to a complete shutdown. that story's coming up next. it don't matter, day or night. use your computer, your smartphone, your tablet, whatever. the point is, you have options. oh, how convenient. hey. crab cakes, what are you looking at? geico. fifteen minutes could save you fifteen percent or more on car insurance.

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atlantic city's troubled casino plunging back into bankruptcy, will shut down, staff laid off august 18 if no buyer found. a far cry from two years ago when the then ceo of the 2.4

billion project joined us and thoughted the show be beyonce, was to be a centerpiece of the ai tempt to bring vegas to jersey. we should remember with $261 million of state taxpayer cash. >> we have 14 restaurants, three different pool areas, a great spa, a 5500-seat theater, another 700-seat theater in the middle of the gaming facility, and, really, what we're aiming to be is a complete resort. >> of course, by that stage, at that opening, already, morgan stanley checked out of the project taking a $1 billion loss. sad fact is within five months, superstorm sandy, of course, hit the jersey shore, the reason for the first bankruptcy three months later. big structure problems, everyone knowed increased competition,

falling revenues from gaming, right across the northeast. >> as many states have casinos, hurt atlantic city hard. i've been there a few times, been to revel. i had a hot streak where i rolled the dice for seven hours straight. >> needs to adjust their al rhythms. >> for how long? >> seven hours? you played for seven hours? >> rolling. >> how much -- were you winning? >> i'm going with you next time. absolu absolutely. >> fear not, the cup of joe is not in danger even with the drought. there is a lot of coffee in brazil. jane wells is here to explain. hey, jane. >> i don't think i can do anything for seven hours, wow. >> come on, jane. >> on to coffee. i can drink coffee for seven hours and feel i already have. futures up and down, but down

still, nearly 20% from their highly caffeinated highs this spring. everyone is trying to figure ought how bad the drought will be in brazil, the largest producer of the beans we like. earlier this week, though, nigil travis, ceo of duncan brands saying coffee prices jumped 55% year, quote, if you go back over five years, coffee prices are not that high. i think everyone overreacted about the bad weather in brazil. it was not as bad as everyone expected. stories of people pulling up their crops down there just were not true. ubs yesterday upgrading starbucks to a buy from neutral seeing potential upside to estimates in part because, quote, recent coffee costs pull back could mitigate fears for the full year impact. it think even though starbucks lost in cost for 40% of the coffee, next year, starbucks could be in the market procuring supply for the remainder of the fiscal year of 2015 not already

covered. the latest data shows starbucks giving up market share in the growth in single serve and packaged coffee, partially offset by a rise in share from via and energy drinks. starbucks out pemper at 90 bucks, 20% higher than it is now. today, buckingham downgraded green mountain coffee roasters from a buy to neutral. guys, back to you. >> thank you very much. a startup for the dogs, automatic treat delivery to you and your best friend every month. the company raised millions of dollars in funding, serves tens of thousands of customers both with two and four legs. the ceo is live here on post now after the break. the dow's up 30 points. when you run a business, you can't settle for slow.

that's why i always choose the fastest intern. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. it's a subscription based startup, tugging on the heart strings of man and best friend.

barkbox, spoils pets once a month. it's a birch box for dogs. they have over 200,000 customers and ship more than 1 million boxes. who are the customers, and how much more room is there for the company to grow? matt meeker, the cofounder and ceo of barkbox who cofounded meet up.com. you have 200,000 people paying $20 a month for dog treats. >> yes. >> who are the people? >> people who love their dogs. dogs are their children. we have a a long way to go. there's 45 million with dogs, 80 million dogs. we have a long way to go. >> i mentioned the price, what comes in the box in the service? >> everything that makes your dog happies, toys, treats, bones, sticks, anything to make them happy and healthy. >> what's the price? >> about $20 a month. >> 20-30. >> it ranges. >> how many boxes?

>> every month. >> so $20 or $30 a box? >> that's right. >> how many are subscribers try it once and how many continuely do this month to month? >> oh, no, month. we offer longer-term plans and more than 80% sign up for a longer term plan than a month. >> is it free samples? >> no, it's full-size products. dogs want the full thing. and they go through it every month. it's different than a birch box where they don't want to try a treat, they want to consume the entire bag. >> carl is a dog owner. >> you've got a great dane. i have a long haired chihuahua. sarah has -- >> i have a niece. >> are any of the treats made in china? >> no, everything is made in the u.s. >> has that impacted demand? >> oh, yeah. >> my wife and i talk about it all the time. >> it's a big issue. you want healthy things made here. you know they're organic, healthy, good for your dogs. we have a vet on staff who reviews everything, makes sure it is healthy. >> but these are treats, not

food. >> there's lucky, by the way. that's my dog. >> your dog gets a lot of airtime, carl. >> does lucky eat a lot? >> he's six pounds so it's relative, i guess. >> he would probably be sharing boxes then. >> do you cater the box to the size of the dog? >> they are customized to the dog by size. we would get different boxes. my dog would like something a little larger in a toy. but when we customize it. some dogs have food allergies or algas to poultry. some are more rugged. they need more durable toys. we customize in a lot of ways. >> how much room do you have to grow here? >> 45 million households in just the u.s. with a dog. >> spend that? that is crazy. >> the spending is recession proof. $60 billion spent in this industry last year. and that's more than triple over the last 20 years. >> i can imagine doing birch box and cluttering up things for myself in the apartment. but i can't imagine cluttering up stuff for the pets. >> yeah. >> at some point you must reach a point, there are loads of pet

stuff here, this has to stop. >> a lot of it is consumable. not all of it. >> you could have a lot of pet toys hanging around by the end of the year. >> you should come over sometime. it's crazy. people tell us, my house is overflowing with toys, we start to weight your box more towards treats. we listen to people and give them their needs. >> your consumer, they're loy value to their pets, how do you leverage that? are you thinking of going into another dog by or another dog owner business? >> we've gone into several, actually. we have a new uber for vets, where the vet comes to your home and does a house call. so we're in the health care business now. we have a media property that has 5 million monthly visitors called bark post. there are more and more businesses we're getting into already. >> have they called about partnerships, acquisitions, anything like that? any of the health companies. >> no, the vet business is

fairly new, but -- >> you would be open to a telephone call? >> of course. we're just trying to provide great health care. >> wouldn't it be more that petsmart would start up in competition if it's successful because they're already buying in bulk, they're already there. they could arguably undercut. >> yeah. >> what does the future look like? >> the future is pet. petsmart and petco are serving a different audience. they are brick and mortar stores and mostly selling food. >> they have been challenged from a same-store sales standpoint. >> we're not doing either. we're digital. our revenue digitally will be bigger this year than petsmart's digital revenue. we're not selling food. food is taken care of. my dog eats just fine. there's a huge industry beyond food. there's the toys, the treats, the health care, the content, the media relationships. there's so much more. we're focused on innovating and creating new products. >> are people spending more on their dogs than their children? >> i know i am but i don't have

any children. but most of our audience really, the dog is their child. >> you have a great dane, don't you? >> yes. >> more like a small pony. >> when he came over we all pulled out pictures of our dogs. >> you see that. you see this dog/parent market treating the dog as their child and investing in their health and happiness like a lot of people do for their kids. >> it certainly is an interesting industry. and we know it's also bring your dog to workday. >> it is. >> a party at the office later? >> we have a couple hundred dogs coming to work. >> are you kidding me? >> yes. it's going to be a packed house. if you want to bring your dogs by tonight, food and drinks and some entertainment for the dogs. it will be fun. >> thanks for joining us of barkbox. >> thank you. okay. let's send it over to kayla with a look at what's coming up on "squawk alley" this friday morning. >> good morning. we now know apple has that iwatch up its sleeve. what kind will it be? we'll discuss that. another tech giant, oracle

slumping after sales in its cloud failed to impress investors. we'll talk about the future for that company. and finally, the one and only kara swisher finding out that twitter won't replace the out-going ceo. she found out where else on twitter. we'll talk about what that means for the company with her. we've got much more coming up next on "squawk alley." (mother vo) when i was pregnant

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the dow on the march to 17,000. let's send it over to morgan brennan for a quick market flash. >> check out the so-called vice stocks. the summer is here. they're the rage on wall street today altria, brown-forman and molson coors hitting record highs. brown forman has given up the gain but molson coors to equal weight. raised the price target to $79 a share from $58. sarah, back to you. >> some of the consumer staples have been on fire, morgan. simon, i just want to point out the dow is near 17,000. looks like we're about 30 points away from that important psychological number. wouldn't you say? >> i would. the corporate level apparently in paris very shortly the economy minister there is going to give a judgment on g. zeman's

buying molson. it may be they choose a winner. it may be more color and background. also want to point out a few movers on the session. radio shack is falling below that $1 per share mark. investors appear to be most concerned about radioshack's cash position at the moment. the company's insolvency, as you can see, it's been a slow and steady decline, breaking the $1 mark. check out coach hitting new lows. not seen since back in 2010. a lot of concern about that one. on the plus side, coca-cola trading at levels last seen in 2013. pepsico trading at all-time high. simon, goes back to 1965. pepsi pepsico's merger to frito-lay. that continues to what we've been seeing every day. consumer staple strength there. >> that's it for us in our hour. have a great weekend. we'll hand it over to the "squawk alley" team. >> what a day shaping up. dow is up 45 now.

1962 on the s&p. it is 8:00 a.m. at apple headquarters in cupertino, california. 11:00 a.m. here on lawsuit. "squawk alley" is liv ♪ welcome to "squawk alley." joining us this morning, editor at lashed a mashable. good to have you back. kayla tou, jon ford as we wrap up what's been an amazing week in tech. new details on apple's new smart wash. reuter is says production is going to start in july with