>> dosh darn it, those exporters. no, i don't know how i feel about this. we're going to talk more about it. i'm becky quick along with joe kernen and andrew ross sorkin. the dow is coming off its biggest drop in more than a month. the economy is going to be front and center for investors today. on the agenda, we have may durable goods and a final revision to the first quarter gdp. polled economists say they expect to see a 2% decline in first quarter growth. not a huge surprise. we knew things were weak, but that would be weaker than the 1% drop in the last revision. worth watching today, treasury is going to be auctioning $35 billion in five-year notes. this comes after yesterday's stellar sale of $32 billion in treasuries. the u.s. equity futures this morning after that triple digit decline for the dow yesterday are looking a little higher, but not a lot. dow futures would open close to 12 points. s&p up by just over 1.5 points

and the nasdaq up by just over two points. first, andrew has some of the day's corporate stories. good morning. >> thank you, becky. good morning to you. gopro is expected to price its ipo after the closing bell. it's expected to be the largest electronics debut. to mark today's pricing, we have a gopro right here on the set, joe. >> yeah. >> i don't know if you see this. i'm now taking an image of you. come of, come over. >> is it a video gapemaker? >> no, no, it's just the camera itself. >> we just said video gamemaker gopro. >> no, it's a videomaker. it makes videos. . you see the double box. that's a little better for the viewers, probably. >> nick invented it. he's a surfer.

he was surfing through bali, indonesia, australia and came up with the idea of want to go be able to -- like if you want to punished it on the front so you can videotape yourself while doing it. we have him on the show tomorrow. >> we can show my skiing stuff. >> they're waterproof, you play around with them. >> we've also talked about what your plans were for it. >> oh, yeah. >> we talked about -- you have to look up p.o.b. and -- >> i central haven't looked it up. >> it's called point of view. >> my guess is it's a point of view. >> yeah. it's the point of view. >> you're looking up your nose. don't do that. >> actually, you put it on -- you might put it on your forehead and be looking around and stuff. >> you can wear it on your head. they have headbands. >> we didn't discuss this on the air, did we? they was just off the air?

>> off the air. >> the captain of the ship met someone and he was not captaining the ship because he was -- >> he ran into the laguardia runway. >> the new york post has been all over this story. we had the pictures yesterday. >> really? that's a shocker. they're supposed to -- >> huh? >> and i can just place it like this. >> it's cool looking. it's nice. >> it fits a camera. >> they figured out a way of putting it on -- >> the sony cameras last year, the thing that's interesting about it is the km is already making a profit. so it's a technology ipo. it's already got the profit. we'll talk to you guy tomorrow. >> it's a weird day and age. anywhere that you are, like -- >> cameras, right? >> yeah. everybody has their phone. i think maybe it said video cameramaker and i think you may have read it as game. >> i might have. >> yeah. >> but it confused me because

now i thought maybe they also had combined the camera with the -- like -- there's no games you can play, right? >> no. >> okay. but it is very tiny and great resolution and everything else, right? >> and i'm just going to have it stare at me. >> the tripod is not a gopro, that's ours? >> yeah. but you can get all sorts of devices for it. i can read the news like this and -- >> people are looking up your nose, andrew. >> do you think i have to -- >> instead of looking down your nose at our viewers, we're actually looking up your nose at -- man, don't -- >> do you think that's a bad angle? >> never shoot from underneath. >> always shoot from over? above? anyway, this is a little harder to do. that cancer drug worked in a late stage clinical trial. as a result, bristol is ending that study early.

google is now holding its developer conference this week. "the wall street journal" reporting that the company is expected to unveil a new television set top box and that will happen later today. the box would be support i by google's new software, but "the wall street journal" reports a google device will carry another brand nail. it's designed to play movies, games and other content. but the strategy is not to build the device itself. it's another android device. we don't know the brand of it just yet. >> andrew, where is it? oh, it's still you. keep the ram a on you. >> no, that's okay. i don't want it. amazon's drone delivery plans might be grounded. the fa adidn't mention amazon air by name in an announcement published later this week, but under graphic will what is barred, the agency mentions the

delivering of packages to people for a fee. current regulations allow the use of drones for hobby and recreational purposes only. i think i was on the drudge and some lady was standsing there naked and another drone. >> that was a lady running a marathon. it felt on her head and knocked her down. >> and by the way, if it's really high and falls on your head -- >> a penny from a tall building is deadly. a penny will go right through your skull. so a drone would -- >> and you can get it positive the clouds. with a basic -- >> really? that's a drone? >> it's like a toy helicopter 37. >> and i don't know where it is? >> well, you can see it because you have an ipad and --

>> unless you get disoriented. >> yeah. >> it's kind of dangerous. >> you see the great video of a boat on fire. that was taken on drudge. i wasn't on drudge, but linked to on drudge. i'm saying the video wasn't taken by drudge and there was an amazing video of a boat that was on fire. and they could have never taken those images without a device like that. >> it's a little disconcerting. i told you i was at a party where behind this thing kept coming down and taking shots of the party. it was a little strange. a little disconcerting to have a drone around with a camera. dollars. yahoo! is holding a shareholder meeting today. someone was able to wake her up has come under pressure to show progress in the company's turn around plans. we're hoping she shows. shares of yahoo! so far, if

there was a chance of her coming on, we wouldn't be saying this stuff. but we've been blown off so many times, that we really don't care. it's early in the morning, anyway, no chance she's awake. "the wall street journal" reports officials have given approval and a private ruling to p pione pioneer. i'm going back and forth, joe. i think i get it at this point. i understand it. >> i thought maybe it wasn't oil for you. it was more natural gas? >> no. it's the same thing. it's all natural resources. they're going to come under fire for doing this at a time when wti is trading over $1100.

>> there is no border. you have to have free trade for everything. where would you draw the line? there's a lot of things that are -- >> i know. i know. >> there's so many things that are precious that -- >> well, it takes a village to raise -- >> on free trade right now. >> we're all citizens. soon there won't be any borders with certain people. anyway, senator thad cochran sending off a tea party challenger in mississippi's widely followed tea party challenger. and what i was saying earlier, john, is i don't know who is more disdisappointed. i think definitely democrats are much more disappointed than the tea party people themselves. >> well, if they were thinking

rationally they would be. but, in fact, i can what happens was the members of the tea party because a you just said a moment ago, it tats a village and thad cochran turn out african-americans, independents, meem who don't usually work in primaries. this was the handy work of the former governor of mississippi, barber, his nephews were involved in this race. and it was really an extraordinary thing because you don't see turn outsurges in runoffs the way you saw last night. that was because of their plan of expanding the electat beyond traditional primary voters. and it works last night, oh joe. >> you know what i'm saying, though. if there's a rift in the republican party where they don't know where to go, it works well a couple of years ago in

dividing and conquering for harry reid and -- you remember what happened. seats that were totally safe were not safe. >> well, yeah, except that was the tea party guys and in this case -- >> voted against cantor. they voted for the tea party. down here in mississippi, the -- yes, they did. >> look, the democrats chances of retaking the senate got a little bit worse last night. not because travis chilleders, the democratic nominee would have been a big favorite over chris mcdaniel, not at all.

he would have been a long shot, but he would have had a shot. he doesn't have a shot against thad cochran. >> he didn't mean democrats retaking the senate. he mean holding on to the senate. >> yes, sorry. and with thad cochran, he took sang of the fact that there's a large mass of people who vote in general elections who reflectively will vote for him. and he pulled those people identity in the primary. that is not easy to do in politics. it took a lot of money, a lot of brains and a lot of effort. mcdaniel last night indicated he wasn't necessarily conceding. i think he will in the end because i vice president seen any evidence and nobody else has cited any that there was any widespread irregular layerty or problem with the primary. this is provided in mississippi law that anybody, no heart how

you think of yourself, republican, democrat, independent can vote so long as they didn't voe in the democratic primary the first time around on june 3rd. >> yeah. that's the same with virginia, too, where cantor was open. john, did you -- we're going to talk about this. everybody is talking about this soccer thing. we're going to talk about that in a second prospect you watching? i was watching. >> did you see it? >> yeah. >> john, stay around. the world cup story says here that you can sink your teeth into. uruguay's luis suarez chomped into an italian player during yesterday's match. he didn't get a penalty because they didn't see it. here is the crazy part. he's done it before. quintanilla immediately tweeted that he was having italian

foent. tonight. i'll tell you what i was watching, john. the italians were playing rope a dope and the slightest thing, they were falling down -- no, long before that. they were playing for a tie. all they needed was a tie to win. >> he's acting like he ran into him, but it was a gross -- a mike tyson-like moment. but this guy obviously has some type of problem, mental problem because he's done it before. i don't know how you resort to biting, but you have a problem. >> after three times, how do you not get kicked out? >> did you see the teeth on that guy? >> yeah. big choppers. >> oh, man, that's a weapon. >> what do you think inspires that? that's a last resort, isn't it? that's what you're fighting for your life, weird in a soccer

game. but it was surreal to watch that. >> i think he's got one of toss brains that makes them think that he's fighting for his life. are those genes with us -- >> my little brother used to bite my older brother. it was the only way he could win. >> joe? >> yes? >> what kind of provocation would it take to make you bite sorkin? >> it's very funny that you should say that. when i've been mad enough to do that. but he's far away and there's a big desk between us. but there's been times when he has another liberal over here and they talk about something and they look at each other and they both roll their eyes and point at me. that's when i felt it in the past. >> and you felt -- >> yeah. >> felt your jaws locking?

>> it's moving. and my german shepherd, when i hold a ball in the air, it's like a -- and that's what i felt like. >> would you go for the shoulder or the forearm or finger? >> having watched quite a bit of the walking dead, i know where to go. to get the maximum amount of -- >> you're going for the soft underbelly. >> i don't know. it's right here. >> i've been warned its on tv. is there like an insurance policy i should be -- so the next time we have one of your comrades in arms -- >> we're berets and maybe scarfs. >> i went home and immediately turned on uruguay versus italy. i think this country may have turned the corner on soccer. what do you say?

yeah. hey, the fever is everywhere and we just got a little challenge on thursday against germany. but you know, that game is at 11:00 in the morning. i don't think a lot of work is going to get done that day. >> i know. i'm worried about squawk alley and fast time half money reports. >> the quality of those shows is going way down tomorrow. >> no, no, they booked elvis. they found him apparently. michael jackson is going to be on at this point and scott wapner has arranged a naked wrestling match with carl icahn at 12:00 newspaper. they're going to wrestle actually a bear. i don't know if people will watch soccer when he -- >> is there biting involved? >> i was going to get promos made of those things. but i don't think you can actually say you have elvis because some people might actually tune in to see -- >> a sass zach. >> that's an idea, too.

john, thank you. the reds, don't count them out now. >> hey, joe? >> yes. >> bless you, my child. >> thank you. >> when i started watching those returns last night, i had no idea that we would get the results of cochran/mcdaniel before we got the final from the nationals and the brewers. two-run homers in the 16th. after i had gone to bed, after thad cochran had accepted victory last night. >> that's interesting, john. and baseball is great. it will get great. i'm sort of looking for a place after all this stuff ended and i don't like the nationals. they boerth me.

>> now when i know that there could be biting at the table, i'm not relaxed. >> you can't believe. john has relatives in mississippi. >> why are you shocked by that? >> i don't know. he doesn't seem southern. >> i'm still anxious about the biting part. i have to watch myself now. >> you've been warned. >> i'm going to use my google glass to sort of keep an eye on you. google glass to steal your passwords. and then five years ago today, michael jackson died. i love this man. i want to just be on record because the records for him keep selling. >> tease when we return

. woish, everybody. someone is watching you and i could be wearing a google glass. if a high deaf is increased, the view increases to 150 feet. we've talked about the ideas of cameras being everywhere. i think the reason the google glass bothers me, is if you hold

up your gopro or your phone, you know you're being taped. if you're wearing glasses, somebody might forget. some of you guys have iphone 5s already. then did you ever go on an airplane and you see people with certain types of laptops, they have a special screen so you can't see them? i imagine once wealth into a camera crazed world, we're all going to need some kind of -- >> i found something more low tech. >> i go like this, right? hide with your hand. >> try to get up to it. >> i go to lifetime every day. i have a locker and when you open it up, the four numbers are over here so the people over there don't see it. so nobody can steal your underwear while you're working out? >> no.

there's a wallet in there and a watch and everything else. you don't want people getting into your locker while you're -- and people do steal stuff out of lockers. you know, what are my underwear worth on ebay? so you have to be aware. i think the fingerprint technology -- >> i have a safe with the fingerprint which has never knocked worked. and nobody else's finger works. >> there's something wrong with my fingers. they're too cold. >> did you ever file them down or -- >> no. it's just they're cold. i have typical girl fingers. they're cold and they don't work right. are they cold or are they actually frigid? >> ha, ha, ha, i'll show you. >> they're so cold that -- all right. i'm sweating now after i said that. >> you should. >> anyway, it is graduation season and the "wall street

journal" has some surprising findings today on the value of a degree. a new york fed study fiepdz both an associate and four-year degrees remain solid investments with an annualized return on investment of about 15%. holders of a degree in a technical field are receiving bigger paychecks. i think they looked at one year out, guys, if you were one year out, you had a better shot at having a higher starting salary if you had gone through one of these technical schools. >> we're doing a disrupter thing where -- >> no, i claimed higher education. >> you can do that. >> what is it going to look like? >> i think it's going to look very expensive. >> you need to know how to do something, not just how the read. the whole thing is -- what is your degree again? no one. english or something? >> journalist, communications. >> that's what people do when they want to party for four

years. >> they used to call it commies, communications. >> that's what you turn into. the hard core liberal degree where people get out and owe $80,000 and it's like what can you do? they go i can write a hell of a book report. it's a problem. i wonder what it's going to look like. you're not going to spend $200,000 in something that are not result in a job. >> most students who graduate with a liberal arts degree actually do get jobs. they are not the ones struggling to get good jobs. they are getting good jobs. they are not the ones struggling. on a relative basis -- >> what do they know how to do. >> to a communicate colleges and people who do not have degrees, it is a different story. >> the unemployment rate is much, much higher if you don't have a degree betweafter high s.

>> what do they do? they know nothing about science, engineering or math or -- >> there are people who need to do marketing jobs. >> marketing. is that really a position? >> there jobs at this very network that have lots of -- >> you're struggling. they have no skills really but they can find a place somewhere. >> what about all the people they're working here? >> hey, lugger, are you a liberal arts major? what are you? >> i'm a liberal arts major. >> oh, you did well, but it's journalism. >> i was not a journalist major. >> i brought him up. this guy changed my life. >> today is the five-year anniversary since michael jackson's death. escape has sold more than 300,000 copies since its may

release. the sound track arrived four years after jackson's deaths and debuted at number one. >> i went to a michael jackson concert in fifth grade. it was the bad tour. i've never seen anything like it. i used to walk around wearing the white glove. he was one of the great transform transforme transformers of all time. >> beat up on bubbles, supposedly. i don't know whether that's true, but -- >> i don't know whether that's true. but i'm -- >> there were some other troubling -- >> i'm not giving them a free pass on everything. >> that's big of you not to do. there are a couple of things that are eccentric, right? it's just weird that you would bring that up as someone you -- who changed your life. >> he did. i don't think i'd ever seen a performance like that. then i just followed music,

performance, the dancing. >> the king or some -- it was -- >> michael jackson. i'm putting him up on a pedestal right now. >> jfk. reagan? >> he's your guy. >> he was taken. >> he was taken. when we come back, economic markets start to sway the markets. we have a review right after this. plus, the story of an eccentric chinese millionaire inviting 1,000 homeless people in new york to lunch today. as we head to a break, take a look at yesterday's winners & losers. ♪ ♪ a ten-second test

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good mortgage and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. making headlines, gopro is set to price its ipo after the bell today. a suspected price range at $21 to $24. to mark today's pricing, we have a gopro camera on set this morning. i don't get it. it's a video camera, right?

it's small. >> and you can catch it to everything. >> it seems like the technology is more -- correct me if i am wrong, we've had video cameras for a while. remember those white things, you can press it and play it. >> the flip camera. >>. >> i had a friend who did invest in this company about three years ago. i remember sitting with him having coffee and he said, do you think this will do anything? i said i don't get it. you can do this with your iphone. but somehow, they both the technology and -- >> why haven't they come out with cases for the iphone like that? >> check it out. >> i got a new crown. >> your biting capabilities?

>> i couldn't bite down on this side. >> oh, so i could injure you. >> yeah. where is mac? >> he's right over here. >> is he hiding? >> when you're showing off your teeth, yes. >> there's mac. here, mac. let's just keep it on my teeth. very uncomfortable whenever we show him. he's the brains behind this whole operation. so if you have any problems with this show, write it to mac. mac, can we see your hair? where is your hair? >> can it you a programming note? we have gopro's founder nick woodman joining us live on "squawk box" tomorrow at 8:30 eastern time. >> he said he would. we'll see. >> what do you mean? >> well, marissa mayer said the only thing i need is that attaching thing. but no, he'll be here. he's going to tell me on it. >> he is. we're going to get to the markets and the economy right now. former treasury secretary hank paulson spoke to cnbc about his biggest concern for the u.s. economy. >> my big concern is growth.

our economy has been growing at 2% roughly since the third quarter of 2009. and i think to accelerate growth, we're going to need bipartisan structural reform. we're going to need immigration reform. we're going to need tax reform. you know, tax system that gives us the revenues we need and allows us to create jobs. >> joining us right now on the markets is steve wood. he is chief market strategist for north america at russell investments. also covering the economic angle, joining us is steve rashudo at mizuho securities. thank you both for being here. joe, steve, why don't we start with you talking about the market's reaction to everything yesterday. were you surprised to see a triple digit loss? some something that's going to shake us out of the lethargy or do you expect tooz more of the same? >> i think the lower volatility will be with us fort a while, but it could spike up towards tend of the year.

i think we're in that range, so a bit of a chop between now and the end of the year makes sense. what we saw yesterday, i mean, i'm just not convinced it's terribly news worthy. >> it's strange to me that we even think a triple digit move is news worthy. you get into a situation like that where people haven't seen it so long. >> what i think would be an interesting point is we're celebrating the second anniversary of not having a correction in the market of 10% or more. that i think is more notable from a volatility perspective. even if there were to be a pullback, we would want to assess if this is a buying opportunity, valuations look fair right you now. if we did get a pullback, we would get our shopping list out. >> but you wouldn't necessarily be putting money into stocks at this point? >> i think we would. we like the u.s. when we look at the u.s. compared to europe.

we're having a lot of conversations about europe being cheaper, but is it cheap enough to offset the structure risk there? i think in the united states, the economy is grinding albeit reluctantly forward. i think the fed is likely to stay more accommodative. i think in the united states it goes more of a broader beta game of last year. it's more like hand to hand combat. it's going to be income statement by income statement. >> steve, let me ask you, hank paulson's comments about how we need to create jobs, how do we do that? how do we get into an environment where job creation is happening at the pace people expect? he's coming up with a number of good alternatives and asking the right questions. part of the fundamental problem we have in the united states is short-term earnings focus. it's a my open ya which is an environment where you have global economic activity slowing, inability to raise through pricing power.

you ever to buy back your shares, increase dividend or fire your employees. we're doing all three of those and none of those add to long-term economic value and that's the problem. >> i was looking at numbers yesterday that suggest captain expenditures are climbing. if you look at the s&p 500, i think something like -- i don't want to get the number wrong. something like 65% have come out with capital expenditure plans that are greater than the street was expecting. so is that a sign that maybe we're getting back into this point? >> not really. you look at the consumer confidence numbers yesterday, for example, everybody's expectations are through the roof. your assessment of current conditions dropped dramatically and their assessment of current legal markets deteriorated rapidly. everyone has this hope. and the thing about expectations for capital goods is you can always pull them back. it sounds good to say it. it doesn't mean you follow through on the plans. >> what numbers will start to

show that? is there a fed series? >> you look at the nondefense, nonaircraft capital goods components. you go in beyond that, the shipment component, nondefense, nonaircraft rolls in. equipment, that is one of the main line stems that go into the gdp. it's part of what they call the key source data. if you want to drill into this morning's numbers, you look at the orders and shipments of knob aircraft capital goods. >> thank you guys both for coming in. it's great talking to you. coming up, how to improve u.s.-china regulations. one ek century billionaires starts with a lunch for homeless people in new york city. that's not all. find out what else he's giving away next on "squawk box."

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a chinese millionaire is visiting the states and ready to feet hundreds in new york city. eunice yoon joins us with that story. >> good morning, joe. he is now here, he said it's a right lane big thing for him. he would like to feed several hundred homeless americans at the restaurant behind me. who is this guy? he's probably most famous here for bidding on the "new york times." he's known as a recycling tycoon, he's one of the richest men in china. this is the way he describes himself. i'm pulling up his business card. in china, he's known as a bit of

an eccentric pep loves these types of publicity stunts. he pulled out a full page ad for this event in the in, times and a half page ad in the "wall street journal." this is the most important part. in the "wall street journal," he put a photo of himself with two of his self-skribdz shedescribe. he thinks that china's wealthy have a reputation for buying up luxury goods, for passing all their money to their kids and the next generation. but he says he wants people in china to be more charitable. that brings us back to the event today. he plan toes host a lunch for 200 people, originally that number was for a thousand people and he was going to give away tax -- in the amount of $300 to every single person. however, he got a bit of a pushback from the city as well

as the restaurant. they said they couldn't accommodate the numbers and they also said it's probably not the best idea to give away cash in central park. that said, he said he's going to have the official event and unofficially he is encouraging people to come here to get cash as well as meals. now, the highlight of the event, and we've been following him around for a couple of weeks is he's been practicing to sick to his guests. he is going to sing the 1985 hit "we are the world" so everyone can hear just how important it is to improve u.s.-china ties. >> thank you for that report. good to see you in a different place this morning. coming up, when we come back, americans are about to hit the holiday road with july 4th and the holiday fast approaching. hoe away is ready with over a million listings to choose from. he's going to tell us about the summer demand next. if you're driving this summer, are you willing to pay more at the pump to get your

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and life gets lived. with xerox, you're ready for real business. welcome back. "squawk box," home away announcing it's 1 million live alive vacation rental listing. the milestone is proof it is

growing and thriving. joining us to talk about the demand of vacation rent also is the chief strategy over at home away. good morning to you. we hear about air b and b and that has been a watch word for what's going on in this marketplace. i want to talk about that and the lek regulatory issues your industry is facing, with you just on a -- give us a picture of what the marketplace looks this summer in terms of how are you seeing the economy. >> well the economy for travel seems to be very good this year. first of all, thank you for having me, sorry about that. the economy seems to me is supporting travel this year. we are seeing increased demand across the board in the united states, most interestingly, we see it going back to florida, florida being the perennial place americans lost to go. we are seeing demand strong. >> carl, do you think are you a brmt of the economy or do you think it's what your business does in terms of the shift and the way people are taking trips,

meaning people are renting homes rather than going to hotels? >> i think the growth over the last ten years from about 36,000 listings when we formed the company if 2005 until today when we crop over a million listing, shows there is more supply in this industry than ever has been before. >> that supply to put it into perspective, puts it at about combined about the top, four largest hotel chains in the world. we have more rooms than the four largest in the world. so when you have that much supply coming on line over a ten-year period, it's bund to track demand and demand surge from 5% of the american public in 2005 to 15% that uses vacation homes when they travel. >> how do you compare yourself to air b-and-b? >> we are a different company. the 1 million homes we have a dedicated for the vacation rental. they're used predominantly by

their owners and by travelers as vacation accommodations as opposed to primary homes. we are much larger with a million listings. we have double the inventory. we have about five times their traffic. we have about three times the number of registered users. we're a much larger company. >> carl, what do you make of all the regulatory attention that has gone on to air b-and-b, i don't know if it has impacted your business in terms of taxes and whether you guys should be collecting taxes in certain states and cities, municipalities? you have a lot of hotel chains, you seem to be upset about this, specifically in cities. has that impacted you yet? >> well, we participate through an organization ka tuld short term advocacy center so we can help cities create the best types of regulations for this. i there i the critical thing for air b-and-b has done right now is by bringing vacation rent also outside of the realm of

ownership the idea that anyone that can rent an apartment can rent it and sublet it. that's opened all few pandora books cities have to deal with. >> that is the main subject of most of the rec latory conversations you are hearing around the world. that really doesn't agent. us that much. we offer a predominantly vacational markets. in vacational markets, the short-term rent also we have a vibrant parts of the economy. they rely on these, so the reg lations are much better in those markets. >> they're not trying to check taxes, for example, or have you collected taxes? >> we have a different business model, i think one of the challenges when people are the merchant of record is, of course, they are the collector. therefore, they have the cash and they should be paying the taxes. in our situation, we represent property managers and owners who have their own relationship with their city government to pay taxes. >> o'kashlly, you hear about a horror story, something that goes wrong, especially with a

home. i imagine there are hotels, too, i saw one today, it was not home away related to you, it was an air b-and-b situation, writers, they documented that they had the homeowner actually came home in the middle of the trip, they had rented a place i think in the hamptons, the homeowner comes in, in the middle of the night. >> wow. no, that's actually never happened on a home away property. you know, i think that is one of the problems or the challenges that are created when you are in primary homes, i think you can avoid that situation by renting a dedicated vacation home when you travel. >> okay. carl, we appreciate your time this morning. it's very interesting. >> thank you very much. we appreciate the opportunity. >> have you ever -- >> done b-and-b? >> have you ever represented out your home? >> no, i like those other stories. >> which stories. >> they have the crazy fat

people or jis and stuff. >> there are some interesting. >> i said long ago, either you are the person going into the bedbug license place or are you the nice clean place renting to the disgusting licensee person. either way, i don't want that in write live or going to a person, i'm worried about a cheap hotel. aren't you? >> the one place i thought it might work. >> you bring a black flight to your hotel? i know you don't want to see what's in that place, a black light. you strip those comforters off immediately? you just burn it? >> no, i don't burn it. i don't use it. >> joe, coming up, former mississippi governor amy barber reacts to the runoff the life of the tea party and the growing dewitt over the future of the xm bank if georgia.

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. the future of the u.s. export bank, key republicans pulling support, big u.s. manufacturers line up to prevent the banks, former governor hayley barber gives us a defense for the xm bank. the summer driving season is in full swing. now it's proposing a highway funding program. >> cnbc's top state for business, georgia. what happened to texas, virginia, florida and last year's defending champ, north dakota? the second hour of "squawk box" begins right now.

[ music playing [ music playing ] >> good morning, everybody, welcome book to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin. yesterday we saw a triple digit loss. this morning the dow futures are up 28 points above fair value, s&p futures up just over 3.5. the snacks up over 5 points t. ten year note is yielding 2.579%. below that level we have been butting up against sometime now. video camera maker go pro is expected to price its ipo, it's on track to be the largest consumer electronic company in five years. first on cnbc tomorrow morning we will be talking with nicholas woodman. more decisions are prepared as the high court prepares to wrap up for the summer. there are seven high broadcast

cases. areo faces a major blow. a disclosure, our xarparent company, we have nine days bfrs we have to hear this? >> it was supposed to be the last -- we'll get it this week. it was supposed to be tuesday, now it could be today. >> when it comes out, it comes out. >> usually the big decisions you see them. the sense of drama. >> it was hard core. he tried to ask him the same question ten times. >> about whether it's stealing? >> what was he supposed to say? >> yes, you caught me. >> i want him to say there was a plan b. there has to be a plan b. the thing is, the stocks probably will move. the consensus is it loses.

>> i heard from on analyst he thought they might very well win. >> it could be anywhere from 9-oto 9-4, the other way. >> the city unanimous mus opinion would be surprising? >> we talked about this, the nuance of what is described, what's allowed. it could impact the ability to dvr things in the cloud. >> so many other businesses impacted by a decision there the company putting empg anything out in the domain, that allowed to be repackaged in any other way? >> a lot of follow along implications for you. >> i'm here. >> i'd like you to join in. >> we appreciate it. when you sit down. >> he is here with us. he will be talking with us in

just a moment. >> we appreciate. it's like the voice of god or something. >> many times you think it is. >> the obamaed a pin strax allowing unrefined american oil if nearly four decades the "wall street journal" reports officials have given a private ruling to pioneer natural resources, the two will be allowed to ship ultralight oil to foreign buyers. the good fuse is some people thought this is what we need to create more jobs. we have seen so much more development than we ever expect expected. >> today eamon javers joins us on set. >> the import bank and the fate of it all fueled really yesterday by a story in the

"wall street journal" sucking that fourer, port officials have been removed over allegations of checkbacks and gift acceptance, improper gift acceptance, that's fueling the debate over whether or not the united states should have had an export, import bank. it is up for reauthorization at the end of september. you are seeing an interesting coalition of tea party opposing the obama administration who both argue we have to have an export import bank, it spoers boeing, cater pillar and others. they arc you it creates more american jobs. here's the white house press secretary. the new white house press secretary josh ernest yesterday defending the export import bank. >> the numbers speak for themselves, the tangible impact that the xm bank nas our economy in job creation is reason enough tore congress to act in a bipartisan passion as they have many times to reauthorize the

zblampg what is fascinating about this political moment right now the xm bank has been one of those votes that happens automatic tlirks not a whole lot of questioning. now with the influx the club for growth and others making the argument that the free market ought to be allowed to make the loans the xm banks make or they shouldn't be allowed at all. now real debate. with see some questioning. >> yesterday, there was a bit of a debate about a report that delta's ceo has come out. >> the "wall street journal" ahead of a speech he was giving yelled in washington suggested that he was stepping back, softening his position zbri saw that. >> in opposition. delta says they're not. >> what's happened. >> he gave the speech now. we know, look it up. >> historically the airlines have been critical. they said if you are making thrown boeing, you are giving loans to our foreign competitors to compete with us.

on the other hand, you benefiting an american manufacturer but you are hurting airlines that compete against subsidized foreign competition. this doesn't gain us a lot of jobs. >> thaul small foreign carriers may not be competing with delta. the one they talked about was dubai, one of the big rich foreign airlines. >> hey, that is clear, dem that richard anderson says he opposed the export import bank. >> they have been -- >> what was the journal piece? >> it was based on early look they got. >> reading tea leaves. >> the story, they don't walk you back. they say straight up he reiterated his objections. >> we invited richard anderson to come on. it's a very nuance situation. i think in some situations they would be okay with

reauthorization with spec situations. i just don't foe what they are. >> it's interesting to see xm, they have not been on the road in my lifetime. >> former mississippi governor haley barber argues the xm has been great for the economy. if airbus didn't have all those countries, they have three or four xunts helping them. it more or less levels the playing field for boeing. any time you say crony capitalism the tea party gets in a bunch on this. that's what it is, isn't it, governor? >> look, what you got going on here is america needs growth. we need economic growth. we need job creation. governors are closer to that than anybody. that's why you see so many governors coming out in favor of reauthorization of the xm bank because we see not just big businesses that you all have mentioned but thousands and thousands, more than 3,000 small businesses have gotten help from

the xp bank so they can export. that's before you consider the tens of thousands of small and medium size enterprises that supply the big companies. these are hundreds of hundreds of thousands of jobs and in a perfect world. in a level playing field, can you arc you a case there shouldn't be one of these. every country in a world has an expert credit agency. we got the highest corporate tax rate in the world, 35%. we don't have a territorial tax system. electricity is more expensive, which is a big part of production. finally, we got these companies subs diegz their exporters. i don't think america ought to play, compete in exports with one hand tied behind their back sfwr for a lot of republicans, if they see jay carney or in this case the new guy josh ernest sitting there pounding a

table for something, they're on the same side, they naturally feel uncomfortable. >> well, because i can understand that. and when you look at how they export import bank has said they're not going to do any deals for coal fired power plant when the chinese are building five a week over there, but they are taking the war on coal to the xm bank, you better believe there are some people concerned about that. the fact of the matter, we need to export our goods our our jobs. that's what this is about. >> governor barber, this is a problem within your own party. kevin mccarthy being elected leader in the past has stood up for the xm bank and supported it. now he's facing a situation where they are trying to run to the right to outflank it. what do you think is really happening here? >> well, of course the chairman despite the fact that texas is the largest state and a recipient of xm bank credits.

it is the largest state by far 18% of all xm bank credits went to texas and texas is the biggest exporting state in the united states and lots and lots of the people if texas who are exporting are not big businesses. about 3800 xm bank credits last 84 about 3,400 were for small businesses. now, the biggest majority of the money is for bigger businesses because they do bicker deals. as i said earlier, the supply chains for those big companies are made up primarily of small businesses. despite the fact that texas is the biggest beneficiary the chairman as is his right, thinks in a perfect world we shouldn't have this. >> this points to the much larger problem within your party. with a split party not having, in the past, people would have thought the republicans were the party for business. not necessarily the case anymore. >> when i was a chairman of the

party years ago on the front of "fortune," they put after a made a speech, gop to big business, because i said we are the party of small business and the republican party is and has been the party of small business, but we're not the enemies of big business by anything. becky, loose, beth parties are big parties. both are coalitions, you don't have to agree with hayley barber to be a good republican. there are differences within our party and we worked those out and try to get the good policies,py view put together good policies. >> to govern on a national level, unfortunately, you got to win an election. who should run this time, governor. what should republicans run, a rand palm or ted cruz or jeb bush, chris christie, which style has a chance that of winning in the white house in 2016 in your view? >> the most important point for republicans is 2014. >> we are working with that in mississippi, what down of what happened down there? is that the right thing for the

party? >> i think cochran's chances of re-election are far greater than his opponent's, far greater. >> so you don't know about 2016, which way the party should go at this time? >> i'm not going to give 2016 any thought until after november. hopefully we will have a republican senate and a house. >> when should the party move in general, more to the right or further to the left? >> people want to us get things done. they know this lurch to the left by the obama administration has made the economy worse, america's position independent world has declined by almost everybody's estimation. so we need to move our country being towards economic growth, job creation, but we don't feed to tie one hand behind our back on something like the xm when everybody else is theing this and we have to compete with them. >> do have you the same question? >> yeah. i'm in the same place.

>> because we don't know. we don't know. i don't know what the right answer is. >> well, i'm trying to help them. are you trying to make sure they make the wrong decision. >> that is not true. >> governor, come on this show any time. we wish you were in town, come on up here. we did the right thing picking a state. we picked georgia as the best state for business. so we're getting, learning a little bit up here in new jersey. it's hard for us up here. >> with these east coast elites. >> you notice the vast majority of those states have governors. >> no doubt. >> that's where you see the governors. >> where was ill networks did you networks andrew? >> thank you, governor. >> see what it says here, andrew. >> it says here the reason

liberal arts kids are plugged into college. >> who says that. >> the reason liberal arts majors get jobs is bus they come from rich families, their parents pluck them into a job. >> that's not true at all, my friend. okay. coming up next. it is only one man's opinion on twitter, for the less. an update on the crisis in iraq and the new worries that pop up each day, water up with ukraine and russia right now? we will go through the global hot spots, senator bob corker raising the tax, does a proposal like this make it through congress? the senator joins us in the next half hour. we have a lot more. we are back in just a moment. .

there was a triple digit decline. there are some modest advances, dow futures are up 17 points. subpoena just over 2 points. general mills is reporting earnings, sails short of consensus. the company says it's pro potential spending if developmental markets was less effective. general mills sees cost of inflation up 3% in its current fiscal year. abbvie says a deal would create

superior stand alone prospects for shire. it is willing to move to quickly engage. >> it's time for an update on the global hot spopts and how they could play out rather in markets. we are joined with more on this story. help us. >> let's go to the latest from iraq. first we want to tell you of the 300 troops promised by president obama, we know 130 are on the ground in iraq. there are reports out of the wire services once again the refinery is appreciately under attack, the baivi refinery, the government controls the baiji refinery. this is the largest refinery in the north we have been talking about endlessly for a solid week. syrian jets, this is one of those, wow, the world has gotten really weerld. syrian jets have done strikes in western iraq against the militants.

we have now ended up on the same side as assad and iran in this situation. it is believed he is doing this to help out maliki and give him more breathing room so he can maybe say prime minister. prime minister nuri al maliki prom itsed by july 1st. i would say the governor paid clear they're on the side of the government that can bring everybody together and they're not animal can i's side t. reason assad would be helping out. he would like him to stay in power. iraqi oil reports these guys over there, they do if you can but reporting iraq oil have spoken with the leadership in kurdistan. they say they have sold their oil for $101 polyper barrel. we few the oil got sold. i find it hard to believe we would sell at a high discount. now they are admitting finally they have sold it. let show you the ukrainian headlines.

separatists shot down a military helicopter yesterday and this is, despite the fact this is supposed to be a week long cease-fire, at the same time the russian house today has revoked the authorization to putin to be able to invade ukraine. he requested that yesterday. we saw the russian stockmarket rally on that and all the losses that russia had way back when, when we saw the violence starting in ukraine have disappeared. we want to highlight what's happened in dub boy, a couple shows talked about this, it's down 25% in six weeks. there is a property company there, aerotech, you remember from the -- arabtec. >> it's weird they don't think it's a macroissue t. market got overbomb. they said there was nothing bad happening there. >> a rally is more than 200% in the dub by smashing t. dubai smashing is up for the 84. >> it's down because of that one year. >> exactly. the a lot of the other companies have gone on with it. the ceo stepped down.

there is a lot of drama. >> you have been there? >> i haven't. i was supposed to go twice. it didn't ha happen. >> can i say, honestly, i never understand a lot of the headlines we are reading. you always make it clear. you put it in perspective. >> i am flattered. >> honestly, i feel smarter every time we talk. >> if isis set up a syria-iraq a city-state. those are the rebels, that would be against assad. >> yeah. he's lost the eastern half of the country. >> syria is mostly sunni but it's worried because assad is -- >> exactly. >> it's overwhelming sometimes >> minority ruling these big -- >> it's iron i iran is mostly shiite? >> oh, yeah, for sure. one crucial thing if the sunnis can control a part of sir why

that has oil, now the soviet union fis will be far more comfortable having their own nation state. they will have revenue. they not against the partition in iraq him they would not much, but some. >> but the south had some, too. >> the south is shia. right. >> so if they get frozen out by the kurds in the north. >> and the shias in the south. if they could have that section of eastern syria, then they would have. >> michelle, thank you. >> see you later. when we come back, georgia gets the ynbc top state for business round -- >> you gave him credit? >> i gave you credit. >> you called it? zbri looked up, they said good brownie, i looked up girl scouts, started in scotland, savannah and jimmy carter. >> anyway, we did have some great guesses yesterday. joe guessed it as soon as scott came on yesterday, scott is going to join us with the other winners and losers. also, ford, rolling out the new

redesigned edge. we will talk with the north american operations about the big debut in the next hour. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] ♪ my mom makes hospitals you can hold in your hand. ♪ my mom can print amazing things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] ♪ my mom works at ge. ♪

e my mom works at ge. financial noise financial noise financial noise financial noise

welcome back. when we come back, though, oil

mixing it up. dennis gartman is here and the winners and losers. which states made the biggest move up and down the lists? "squawk" returns with all of that in just a moment. .

welcome back to "squawk box" this morning. the number of mortgage applications declined by 1% above purchases and refinancing dip as the average 30-year mortgage rate fell a bit. in other economic news, new york fed president says the central bank can reasonably wait to raise interest rates until mid-next 84 without risking an undesirable rise in inflation. he suggested the unemployment rate can move considerably lower without a problem. whole foods agreed to pay $800,000 after an investigation found they overcharged customers in california. inspectors discovered they charged more than the advertised price on many items. >> covering that story is deep, isn't it? >> that's been going on in supermarkets, all sort of

retailers. >> whole foods? hold the press,er, they're overchargeing, whole foods? hold the presses. >> otherwise known as whole paychecks. >> whole foods is overcharging, you are kidding? >> mispricing. >> they are charging for things that aren't there. you are paying more for things that aren't in there. >> but you see my point. needless markup, neiman marcus, that's like casablanca, whole foods is chargeing more. >> i am shocked. >> i am, so am i, let's check in with dennis gartman. we saw more market pains coming, the editor and publisher is also a cnbc contributor, for dennis, short-term is 15 minutes. medium term is three hours. long term is overnight. >> asen explore trader, that's about right. >> i believe you when you say we

are in a correction. it was that day, the futures were down, a one-f day correction. we were not in a correction. we went to new highs. >> so we set a series of new highs. we were not in a correction. >> yes, i did. >> he's up for the 84. >> when did you get long after telling us and misguiding, misleading me. >> if you read my fuse letter, two days later, i was back behind the stockmarket. >> that was a medium call for you. >> i think it was long term. >> that was long term. >> what about now? tell me what to do now. yesterday was ugly. >> i think it was really quite ugly, very much so. the fact that i take a look at that a great deal. it tells you about the psychology of the market. yesterday you had something i pay attention to, history told me to pay attention to this, when you make a new high and take out the previous day's low, if you don't pay attention to those, history has treated you

very ill. i think you are going to have to. >> never a dull market. >> with the vix at 10 and volume down and the fed is still in, nowhere else to go, it seems like money, it's not rushing downhill but it seems like it's trickling downhill in the stockmarket. and it's, shouldn't that continue? >> yes. it's still a bull market. there is not a question about that. i say to people consistently all the time, there is only three positions one can have in a bull market, really long, pleasantly long and future tral. >> i think the time is right to be neutral for a while, that's a far cry from being short of the stockmarket. still a bull mark. you buy weakness, try your best not to sell too much strength. >> may 21st, you did bottom us out. may 21st, on the chart. >> thank you. >> that was a crappy time. it went up the next day, one, two, three. you called the correction before a ten-day run and then it went up even more. >> yes, we did.

>> but you say that. okay, may 21st so two days later, you went back. >> and got long. >> that's good to get long. >> you didn't call into the show two days later. >> no, but he does do a daily -- >> i do a daily news. >> you just said doo-doo. >> you don't say doo-doo. >> you are lucky you did that. because, you know, i had you. now i don't have you. but that's why i prefaced this whole discussion with three hours, six hours, two days is long-term here. okay. so now wince we are short-term oriented, you think it makes sense to mess with this lighten up and get back in? >> it depends on one's perspective. if are you a professional like i hope i am myself, your tendency is to do that sort of thing. if are you the public, your tendency is to sit quietly by and let a 5% develop it is still a bull market.

>> that has to be reiterated. i have to define that very consistently. one doesn't consider being short of the stockmarket. >> what down shakes people out of tear thet aernlheir lethargy? >> if the circumstances in the middle east get worse than they already have, how can they get much worse? but they can. >> that is probably the precursor for something far more severe. is that going to happen? i haven't the faintest idea. surprises come out of the woodwork. last night we had a surprise the united states government would allow the exports of compensates. next thing you know you have wti crudes trading $1.20% higher against brent. who knows? if there is a problem that erupts, it will probably come from a geopolitical circumstance. >> we did have jim paulsen on yesterday. >> he is way part is.

>> he said if you eventually see inflation starting to pick up. that's his concern, it could push the smashing into some sort of a correction. he doesn't think it's the most likely scenario. >> i tend to think inflationary circumstance develop from three things, monetary policy, commodity prices and labor. i'm sorry, commodity prices are probably not going to go up at all much, especially in agriculture, you got an abundant crop being formed out there right now. >> that will tend to keep prices and food down, labor, i'm sorry, you will not have much pressure upward in labor rates. you will not get much inflation from that. the only place you will get inflation from is from the mon they'ring a gre gates. everybody has expected that for years. it hasn't yet. it will sometime. it's not right now maybe by next tuesday. >> we were under the impression we were already seeing food, the drought, we were under the impression food prices had already been impacted.

>> by what? >> by climate change. we are already under the -- >> i tell you what, if the climate is changing, it's changing much for the better t. crops in the mid-west are probably the best tan we have seen in 15 years. >> the president talked about nine years the longest period if history since a major hurricane made landfall in the united states. buffet told under the circumstances that. >> they're wrong i am a believer in climate change. i'm not a believer. >> you think we do not believe what the scientists say? >> no, not for a moment. >> i wrote a piece this morning about what happened 480 million years ago when the architect ocean fell 9 degrees in temperature. we weren't there 480 million years ago. the climate las always changed. it changed eons ago.

it will change now, it will change again. >> you think human behavior has nothing to do with it? >> if you talk about c 02. >> 0.4 percent. >> .03 it is now.04. >> okay, we've had some effect. but it's at the third decimal point. >> do you think oxygen went up, because c 02 is ubiquitous gas. >> somebody will be right. somebody will be wrong on this. >> i'm a believer of climate change. i'm stand on that. >> dennis, thank you for coming in today. >> thank you. when we come back, will the american people go along with paying more at the pump to fix our highway system? senator bob corker tells us about his new proposal. "squawk box" will be right back.

. >> welcome back, everybody, senator bob corker has a solution for the trust fund. he is teaming up with senator christian mur by the to propose raising the gas tax, senator

corker joins us, it's great to see you here. >> it's great to be with you. >> it's not often you see people teemg up from both sides of the aisle. the problem is the highway trust fund will run out in august if we don't get more funding back into it? >> that's correct. >> so your proposal is what? >> becky, we haven't raised the gas tax since 1993 and so it's purchasing power today is 63% of what it was, every so often, we go lou this charade that we're going through this month where we'll steal.from future generations to make it whole. a trust fund like this is set up so people can enter multi-ier contracts. so the states can make long-term plans the contractors who are building the roads can boy equipment and know the future is solid and that we have a long-term plan. that's what a trust fund is for. so christian murphy, a democrat, has agreed we ought to raise the

gas tax to fund the trust fund appropriately but lower other taxes at exactly the same level. now, let me say that one more time. all people are hearing is a gas tax rise, what they haven't heard is the other offsetting component, lowering other tax, the equivalent amount. it would seem to me that those people who want to see economic growth in our country and know that roads and bridges will be built and repaired would sell it like this. it would seem to me that people who care about tomorrow or government would care about this. because what happens every year, becky, we saw it last week on the veteran's vote. even the people that say they are the most conservative people in the world, when it comes to popular issues, they'll throw our kids under the bus him well, transportation is the same. so this week, yesterday, the finance committee unveiled a proposal to spend $19 billion to make our trust funds whole, if

you will, by again borrowing money, borrowing.from future generations to pay back so what would happen is you have a trust fund that is whole but the other priority, government is, congress here is more likely to cut other programs to get in line more so than they would transportation some this is a win for small government. it's a win for transportation. it's a win for our country. it's set priorities in the right place and candidly i had people on both sides of the aisle saying this is the right solution. so i know that congress is going to do the non-courageous things over the next 30 days. it's disappointing to see, it's going to happen, i know i. i hope over the course of the next several monthsles, people will understand the logic of going ahead and dealing with the trust fund, making plans for our country. by the way, getting congress to

cut other things in government that are much less a priority. >> senator, let me ask you, i understand the need for transportation, for making sure the infrastructure, roads and bridges are beefed up. i do get that. my question is, what taxes would be offset be i the higher tax for gas? >> yeah, one of the things that would be really easily done would be to do some of the pro growth extenders. >> that again we'd extend those every year, this year, as a matter of fact, accelerated depreciation, research and development. we still haven't enacted those i think you know for the beginning of the 84. you don't get the economic growth you could otherwise get if companies knew those things were going to actually be in place. >> you are not tying those together in this bill? >> yes, we are. by the way, this is a proposal what we laid out the other day was the exact offset for this in

the areas that i just laid out. candidly, i'm opened to other things, a marginal cut for everyone. >> i think they're taking a tax consumers pay in terms for companies geten an offset. >> that metro detroit be where the criticism steps in. >> becky, i'm all for looking at marginal reductions for everyone that would create economic growth again, to have a trust fund. this is the fifth time since 2008 where we get to this point where state government, local government, people all across the country don't know if the program is going to be extended. they are pretty sure congress will throw people under the bus to pay for this. they still don't enter into those longer-term contracts better for our country. again, let's talk about this. anybody would have to say the current six is totally atenable. it's ridiculous for a nation of our greatness to be handling

transportation, road funding, bridges the way that we are. why not pay for it as we go. let me say in sens tennessee, that's what we do. we have zero grow debt. >> they say when you look at interest rates, these historic lows, why wouldn't you take this time to beef up as much infrastructure and get it at lower interest rate? >> it's a state thing or a national thing. >> look, joe, i'm okay with that debate. if people want to deinvolve some of this back to the state. let's quit do wack we are doing. we have been doing this it seems like almost every summer since 2008. it's ridiculous. it's unsophisticated and sophomoric and why don't we just deal with this issue? again what you will see happen over the next 30 days. it was announced yesterday by the majority finance committee. they will take $9 billion out of the general fund. only $3 million, not billion, will be paid back over that same

period of time the next six months. so we're stealing from our kids to keep us from going ahead and making what, i don't even consider to be tough decision to solve our transportation problems. so let's move on. >> other people think we ought to bring back all of thatry patriotated money t. other side of that says you shouldn't be able to dictate where someone's hard earned money goes when it comes back. yoution be able to ask for it in the infrastructure. >> i would think, joe, we would want to use that candidly to lower other deficits. by the way the repatriation thing is a way for people to figure out how to solve this problem without really making -- >> paying for it. >> that's right. >> it seems like, you know the one thing you got going in the early 20th century, government was 71st of gdp. we built roads with that 7% somehow. now we got 25% of gdp and no

money for roads. so somewhere along the line we started paying for stuff we didn't used to pay for. i don't know what it is. >> yeah. >> we do need roads, we don't feed bridges falling down, that's for sure. >> that's right. >> senator, thank you so much for joining us, it was great talking to you. >> okay. when we come back, cnbc top states revealed. georgia came in as no. 1, there were losers and winners. find out what happened to florida. unveiling the new redefined ford edge. investors have an edge. of course, we are coming right back in a moment. at optionsxpress our clients really appreciate our powerful,

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. >> welcome back to "squawk box." the cnbc top rankings of business has finally been revealed. scott cohen joins us with more. he never gave it up. >> coen, i tweeted, his name was on the tweet i sent. >> you couldn't admit it before that? >> it was later. he said some guy got it right. you heard me yesterday take georgia, coen, i know you did. >> what time did you say that? >> what time were you on "squawk box"? >> i was on "squawk box" yesterday around 8:20. with egave that hit, famous brownies we found savannah.

>> i knew about georgia. that's where i vacation, that's write own property. i already knew that was the best state. it can't bliev picked it, though. >> you are always on the ut caning edge, joe. >> no, i finally came around t. rest of the world finally came around the elites won't start vacationing. i think obama lost by 23 points to romney in georgia, scott. >>. >> reporter: let's not go there. it was the top state for business, i'm not scared. it's the top state for business, also by the way as you can see has the world's largest drive-in restaurant, we are told. this is the varsity. we will be there all day today. they serve two miles of hot dogs every day. i plan to take up a quarter mime or. so in case you missed it, we unveiled the top state after all of our crazy hints at stone mountain yesterday with the help

of the amazing de kalb school choir singing "georgia on my mind." we introduced nathan diehl. he is in a trade in tel aviv. the additional businesses haven't an announced yet. his opponent florida state jason carter. we hope to have him on, he declined to comment, for putting out a statement the governor is leaving people around for things that matter. georgia number 1, texas no. 2. utah number 3. north carolina at number five. every year we have big movers in this study. the most improved states, illinois which has had a lot of difficulties with its state balance sheet and still does, has had some improve. though, in its economy. florida hit so hard by the housing crisis the housing

market bounced back. it comes up ten spots to number 20 washington state, another hit hard in the housing market. it is doing really well now. it jumps 13 spots, california has been cleaning up its act. still relatively high cost. in 32nd place, that's up 14 spots from last year. nevada, hit hard in the downturn up 29 spots with a lot of job growth there. up to still 29th place. still a big improvement there. as for the biggest drops, north dakota. we hear so much about the economic miracle, but they're feeling some growing pains and hurting in their cost of doing business score. they dropped eight spots to number 11, south dakota was the top state last year, it falls for some of the same reasons, growing pains out of the top ten at 11. vermont down 11 spots, wyoming down 12 spots. montana, which is now dealing with a lot of foreclose years in that state, down 15 spots to number 33. we first got all kind of

information about this, so many stories about what's going on in the world of competitiveness, at top states, cnbc.com. we still want to hear from you on twitter and using the hashtag top states. guys. >> what happened? why did vermont move down so much, scott? it was like the one that didn't -- >> why does vermont move down? >> well, i think probably a number of reasons. it may not have been improving in the economy. the other issue going on with a lot of these northern states, we look at utility prices as the cost of doing business. we know it was a rough winter. it may have hurt. it definitely hurt vermont, that impacted tear cost of doing business. >> i love atlanta. i love the whole place. a lot of the elitists, when i go into the city, they don't like georgia. they would think the reason their business is so good is because they carry so many guns.

the carry permit. then other people think of, you know, think of walking dead, atlanta, there is a lot of cheap real estate since everybody is gone. they're all zombie, essentially. but i like that list. >> i think romney won every state in the top five or did he lose north carolina? >> i think he lost north carolina. >> i really don't in a moment. >> it's interesting, though. >> 36 states electing governors this year. >> thank you, scott. >> that will be interesting how this play noose it. >> we'll be right back with more "squawk."

ei. >> don't look now, the first half of 2014 is almost gone. should insors adjust their portfolio for the second half of the year? we will open up the play book next. keeping the dream alive? senator marco rubio lays out a plan for security. many of the topics buzzing on capitol hill. >> ford's edge is unveiling the redesigned crossover. they're talking to "squawk" first t. third hour of "squawk box" begins right now.

>> all right. welcome back to "squawk box" here on cnbc. i'm joe concern nkernan with b sorkin. people look at the alternatives to the stockmarket. nowhere else i can go at this point. >> pretty much. we have general mills quarterly results. the ceo says the number one objective in this coming year is to act sell rate top line growth. that stock is down just over 3 thursday this morning. aerie fpharma says it's in a

mid-stage trial, that stock is up by 28%. hachette books is buying merseus group. it could give it leverage in a dispute with amazon. >> if washington today the white house weakened a draft of the fda's proposal to back the omb changed language detailing health risks from cigars and deleted restrictions that might have prevented ecigarettes sales. the public comment is opened until august 8th. we talked about this, in other news, amazon's drone delivery plans, they night be grounded. by the way from the moment they mentioned them . the faa did not mention amazon

prime air by 2345i8. it was on earlier this year with jeff besos. they announced the federal register under graphic of what is barred, the agency mentioned the delivering of packages to people for a fee, not allowed. current regulations allow the use of drones for hobby and recreationalal purposes and there is the drone that amazon talked about and now may not be anywhere best. >> romney won. >> lost in '12k3w4r08 what were the top five, georgia, texas, utah? >> i'll find it. >> north carolina and what's the last one, was it virginia or not? >> that would be funny. they probably didn't check if they picked all five. they can tune it off for the first time in decades.

the "wall street journal" says government officials gave approval to pioneer natural resources, the two would be allowed to ship ultralight oil. walk is coming under growing pressure to ease restrictions in domestic energy production and most people that see a resurgence of the united states globally talk a lot about our energy, the what it could do for our manufacturing sector if terms of input costs and that it may be a way for us to really do well. >> over the next 20 years. >> only hope. >> i agree. >> becky once did, she is with us now. >> you said that in the last hour. >> sort of. >> well, you are not really sure. ? >> what's the fifth state? >> i don't know, it was in the walls. >> what's the fifth state, georgia, texas, utah, nebraska. >> i think it was sort of coming

along. >> did romney win? >> nothing dragged along. i have reservations about the two. i am concerned. i don't like the loss of resources. i understand you feed something to pick up economic growth. that can be a way to jobs. >> very good. more supreme court decisions are expected today today. watch for this one, i'm interested in there. >> we're in the business. >> i like calling it scotis, too, it's close to scotus. there are seven high profile cases to be announced, including one about broadcast rights involving aerial. aerial faces a major blow, if they find them disrupt copywrite law. our parent universal opposes

copywrite claims before the court and we would get corn cutters, it would probably accelerate that entire print, would it not, sorkin? >> potentially. >> i think the people say it accelerates the other way. i don't understand the other way. i don't see how it could cause people not to cut cheer cords. >> no, i would imagine long term this would help people who want to cut the cord, no question. >> that's what i mean. >> you also have to have cable operators make some of the channels available unbundled. we have to see if they will do that. i imagine not. >> i just asked our producer. i think that's funny. >> of the top five states. >> second straight day fueled by more fears overseas, so how should your portfolio, how should you adjust it to brace for the second half? with us now on set is jim oshea

h henesee. it's funny. anyway the firm has more than, you have $7 million? >> 7.2 american. >> american. >> that's amazing. >> more in pesos. >> where are you in cash right now? >> we are fully invested at all times. >> do you feel good about that? >> we do. our take is basically if you don't have a five-year time horizon, you should not be invested in the stockmarket. i listened to your earlier guest, his time horizons are a little shorter than ours, basically, we find that investors who can't commit for five years shouldn't be in the stockmarket. bake amy, one of the things we wanted to talk about today is something every every investor can do. >> that is look at stocks that are outstanding values.

we use a composite of pe, price to sales ebitda and shareholder yield. we ranked shocks on all five of those issues, one of the things we found between 1963 and 2013, if you took $10,000 and invested in 10% of the cheapest stocks, bake amy, after inflation your portfolio is worth $5 million. that's about a 13.22% compound return. an investment in our all stocks universe, which is basically all stocks with market caps above $200 million grew to about 300 and change, a 7% compound return. investment in the s&p half that, 156 for about a five and change return, but here's the kicker. few invest it consistently in the stocks that everyone wants

to talk about the glamor store, in the news, et cetera, your $10,000 is inflated in 1973 in inflated adjustment is worth $2,000. >> what are glamour stocks? >> they're ones with the biggest valuation so these are stocks priced to absolute perfection. for example, netflix is a flam our stock. when you look at glamour stocks, are you looking at investor sentiment says i don't care what it's valued at right now, i'm thinking about what this could be worth in the future. >> does that mean you will sell a company if we talk about it a lot on air? >> we are quantitys, so we have rules when we will sell or boy a stock on a portfolio, but, for example, few if you want to look at the cheapest store, apple.

it's an interesting story. >> we talk about that all the time. >> see, i know, it's very cheap. sometimes they're both. exactly. >> so you know direct tv, j.p. morgan, ibm. these are all stocks in the bottom desk aisle. these with big names. >> basically, i am picking larger stocks that will be here. there will be names you know. >> they are small names in your portfolio? >> it depends, we run the spectrum from megacap to microcap. so each one obviously microcaps are tiny, the others are huge. >> what does this, i love saying single most important. what is it? what is your single most important thing about deciding

it's cheap? >> the single most thing is it scores well on the five factors, p.e. ratio, price to sales ratio, ebitda value and shareholder yield. >> i'll give you a great example. it's 2007 and city corep as a dividend yield of 7%. it's one of the cheapest stocks, yet, we won buy that stock. on other pet tricks it was do youing very, very poorly. for example, it piled on deck and that's a very bad thing so it kept us out of those so-called value traps. we think if you are an individual investor, you can really do extremely well if, a, you lad the discipline to stick with it, which is hard, and, b, you understand that it's not just a single value factor, you know, like with that stock

cheech. you think, yeah, it has a p.e. of 10. >> that doesn't mean it's cheap. it has cheap p.ism. it can be expensive, to ebitda, et cetera. >> it's keen appeal. i want to this them on the show, they made a guest appearance on fargo and they did the soccer parody where every time you barely brushed by the guy they're on the ground getting like cpr. those guys fake more than anything. >> in the game. >> or the guy went to heaven. anyway. when we return, ford has a new edge. we will be unveiling the latest redesign later, senator marco rubio on everything from corporate tacks to income and equality. we have a lot more on "squawk" in just a moment. .

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on two of our most popular plans. xfinity continues to innovate, bringing you the fastest, most reliable internet, period. [ heart beating ] xfinity internet from comcast. double the speed. [ heart beats ] welcome back, everybody. ford is unveiling it's all new edge. it will be the first time the model is offered in europe. phil lebeau joins us from chicago. >> let's bring in ford henry from the ford headquarters if dearborn, michigan. joe, you unveiled the new edge.

this is an important vehicle for ford, given the fact the c.u.v. market used to be red hard particularly in north america. >> that's right, fill, we are happy to be offering this with more styling. in a cuv with now power trains and platforms and features for our customers. >> joe, your valleys are on the wedge, you are discontinuing the model. they're down 8%. you look at the crossover and sport utility market. did you wait too long to bring the new edge to market? >> well, we have been focusing on keeping all our line-up, the new ford and explorer continues to do well. we know this is important in the edge and escape and the explo r explorer. we are excited about offering it in 2015. >> any concerns about gas prices

right now and whether or not we might see people perhaps pull back a bit in their desire not only for crossovers but suvs? >> well, the crossovers and suvs continue to be high, consumers are adjusting to the 380 to $4 range. as long as we don't see a spike, we think it will be hot in the crossover segment. >> where do you worry? >> historically, we see it spike 50 cents to a dollar. as long as it spai stays around the $4 range, we will be okay. >> you have to make sure this launch goes well, you have had problems with ford in the last three or four years at a time when nitsa is look at you and auto makers closer than ever to make sure you don't have defects. how much is that potentially

slowing down the launch of new vehicles or once you have them out adding up a little, guming up the works, if you will, in terms of making sure you have all the defects out of the system? >> certainly, every single launch has its own issues. it's a challenge process from the beginning to the end. it's a record number of launches, as you know, fill. we believe we have a good process, not just on how we launch our vehicles, we are excited to launch these this year, in the process, the data we get and the process we use to protect our customers. clearly, we believe it's strong. we believe we will have a great launch here. >> have you added more people? nitsa is looking at you and other moderate risk here? >> it's a part of our improve. s from the last several years and learning from that. we have been adding people out

in the field of suppliers and here in dearborn in the engineering center. it's independent of what's going on from our competitors. >> the president of ford in americas is joining us, you just got a new pros starting in a couple of days, right? >> it's a busy life. mark will be excited having the ceo last woke he has been doing the rounds, immediateing all our people, saying good bye. we will miss him. we are excited about the future as well. >> thank you for joining us. >> that vehicle by the way comes on the mark early next year and it will be interesting to see how that does if a market increasingly competitive when it comes to cross joefrs. >> phil, thank you very much, mark fields is a rutgers grut, too. >> oh, look at that. you rutgers people. >> populating everywhere. >> i will write that down. >> another liberal arts

education president. >> i'm going to write it down. >> older than the country. >> you can see rutgers is a liberal arts? >> tell me what you believe he was in. >> probably an engineer. >> coming up, "squawk" is on data control, rolling out the durable goods. we have the numbers and instant reaction. secureing the nick i economic future. >> so so a leader of the zeta phi fraternity. >> is that animal house? >> we were going to talk about that. he looks like a frat guy on capitol hill at 8:40 eastern time. "squawk box" will be right back. ♪

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. yep, the good the bad and the ugly star eli wallach died at age 98. he became famous over six decade career also appearing in "the magnificent seven." >> i don't remember him, i don't

remember anything about that movie. he also played mr. freeze in the batman tv series, received an honoraries a core in 2010. he was born eli wallach. so that no. i was looking to see other. it's funny we played the good the bad and the ugly the spaghetti western was not exactly, at the time it was made for nothing. it was funny the way it was made, where it was made. sergy leoni played tukko, the lovely bandit. he was in a lot of other stuff you may not remember with steve mcqueen. he worked with all the greats of his day, 78-years-old. >> that's a good age. >> until you are 95. then you start thinking, wow, how do i get to the next one? >> wafer we go, let's tell you

about another news story, joe, you are writing this off. >> he was married to his wife for 66 years. >> good, i'd like to get there. we should tell you whole foods must pay $800,000 for overcharging customers, this coming after a year long investigation by state and local inspectors, they found failing to check the weight of the salad bar containers, less weight than thoen shown on labels for packaged item, selling deli foods by the piece rather than the pound. >> are you kidding me? >> as required by law. >> so it wasn't just the overall? >> they told you, it was priced at $4.nierngs i woukd out, it was $8.fine. >> it's the institutional. this is adding to the general overcharging. >> is the kernan families a

whole foods consumer? >> at thanksgiving, we get a duringy from whole foods, in general. >> i like things that cause things not to go bad and might sill salmonella. >> this was the bike scene around the world. he thomps into an italian player during yesterday's match. here's the crazy part. he has done this before. suarez was spernd suspended for separate biting incidents. in fact, listen to this i found the story online, it turns out that there were a number of people, 167 that bet he would bite somebody in this series. there is a website betting site in malta betson, 167 people bet on this, a guy walked away with

$916 bucks. >> it was so weird watching it. >> anyway, when we come back, the big question, will the durable goods create action in the markets today? right now, though, as we head to a break. take a look at the u.s. equity futures we see green arrows. "squawk box" will be right back. means keeping seven billion ctransactions flowing.g, and when weather hits, it's data mayhem. but airlines running hp end-to-end solutions

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welcome back, everybody. we got durable goods coming up in a moment t. final revision for the first quarter. let's go to rick santelli standing by. >> reporter: minus 2.9. the whisper number on this trading floor is 2.2. we were rolling our eyes like ralph kramden, the first quarter gdp following a second revision that put it down to 1%. the consumption number was 1%. that's another huge drop, this is a revised, originally released at 3.1. obviously not good there, corporate profits revised q1 down 13.7%. the price index at 1.3 is basically unchanged.

durable goods headline down 1% strip on transportation, down .1 of 1%. if you look at the proxy for capital business investing, that's goods, fawn defense exaircraft on the orders side, it's up .4. so that isn't bad, orders, i'm sorry, up .4. it's down a bit, these numbers all run together t. orderers are up .7 that's good .7. >> that follows a minus.1 originally released .2 most of the day is not as good as the last look up .8 on the original extransportation. the durable goods, gdp not very good get this. >> that is a three-and-a-half

low. last time we were anywhere near this yield is on the 2nd of june. ce prices on the final 1.4 unrevised. gdp sales down 1.3 vs. up .6. there is a lot of data, suffice it to say many will miss the soft quarter, it's what's ahead of us. there is a lot of truth to that. but there is also the notion that between the weather and the slowing that we saw in the second half of last year. we are now starting to define, the weather played a factor, there are certain sectors of the economy that won't get the bounce back in on real estate. we learned yesterday, it's very geographic. i'd like to see a lot of data on the table. back to you. >> that was kind of shocking. we knew it stumping, it was backwards looking, down almost 3%. >> let's assume it's a one off. just for architect sake, let's

say something happened with oil to slow the economy a little more. let's say it's not all clear sailing where we get the 3% by the end of the year. at least we can count on the fed to help us. they have so many tools left in their box. >> that would help us, right? will that work again, rick, if, god forbid we hit a slow spot? what do with egot? >> i don't think it does. you know, listen, we all foe there is only one tool in their tool box, that's easy. you can get to easy boulevard through a number of ways. can you do quantitative easing. you can tweak what you pay or don't by a for reserves. in theened, it's about easy and easy makes the markets uneasy as of late. after five first half years, we are not in a crisis anymore. europe isn't in a crisis anymore. what we are looking at is a baton shift from amassing lots of debt and ious and balance

sheets and central banking activities, how will those things, questionable outcomes, do they give us the growth in a sustainable durable way? if they don't, it probably isn't worth the price of admission, that's what the marks got to wrestle with at this point. if terms of what you asked before, listen, the world the climate, politic, our own health, morality, nothing is constant in life. it's always the unexpected. it's the fat tail. the change the ground is always moving. whether it's what's going on in the middle east, there is a boat load of division, whether it's weather. to some extent, these abnormalities are normal. markets have to deal with uncertainty and questionable future activity. >> that at part of what markets are, to pull these things and say, oh, we're not going to get a winter-like that, it's because of oil, that's what marks have to deal w. i tell you, if one of these things really starts to

surprise, let's say oil as you brought up or middle east, what do the central blanks do for an encore? i think this is bothering them behind closed doors, they're pushing the spring. they have 14 people physical out how they can do it. things deteriorated from this new normal of low growth into something worse, yeah, i think that's where the market starts to get nervous. >> we're going to have judge miller on thursday. >> i'm sorry, we're going to have him on thursday, you will have chucky miller on delivering alpha. >> rec, thanks very much. >> right now let's bring in joshia feinman, wealth management in new york. we few those numbers would stink. this is worse than people have been anticipating. do you think there is something dill lingering, out there, is this a one off? >> i think it's a one off. no question about it.

it is backward looking. frankly, the gdp data seemed out of sync with the other data, independently derived. so it just seems like it doesn't quite pass the smell test. we put it behind us, going forward the growth numbers will look much better and the economy is building momentum, putting the head winds behind us. >> what about joe's point, when does that act on a track on the consumer? >> a little of a track, it's true. i would point out, i think the economy is less vulnerable to higher oil price the economy is less of a net energy importer than it used to be, so it will sting a little bit less. the other point is, earlier if we get the stronger growth going forward, which i think we will. we still have a lot of slack to take up. >> a lot of slack to take up, how do we do that? >> grow stronger for longer. i think the fed will not be

rushing for the exits. i think they will give the economy as much scope as they can to try to grow faster. >> but to rick's point. the fed doesn't have a lot of bullets left. thatry getting out of qe. >> they can keep as you said stay easy for longer. >> nobody is looking for this before the middle of next year at this point. >> the middle of next year i'd say at the earliest. >> i think it might be later than that, beyond that they might move more slowly. the other thing is, you know, i think they're leaning in the direction of thinking that equilibrium neutral interest rates may be lower than in the past. >> what is your guest for the year, if you are starting down 3% for the quarter. >> just the arithmetic, you will not get to two, so the aright met tick of growth is going to be tough to overcome. >> it's tough to bring up your grade point average. >> when you flumplg first test, it's hard to make up for that.

>> unless you are communications. >> i think what the markets will be looking forward to is the sequential momentum. they will put it behind us and look at how much growth we are getting going forward. >> josh, thank you so much. appreciate it. joe, let me ask you, the one thing den fits brought up was that yesterday when the administration decided to allow the export of some oil products, that you saw wti bounce something like 1.6% versus brent. would that change your mind on the export question if we started watching oil prices and then gas lean prices rise. >> we're at 120. >> do you remember the worst thing in the world is stagflaings. we are are not there. you need the raise rates because of inflation, that makes the economy, it's like so bad. we're not there. but there have been a couple little numbers in the inflation

front that were scary. now a minus 3. it's not great. next on "squawk box," searching for economic security. senator marco rubio has a plan. he will share it with us next. check out the futures. they didn't like this number. we'll have more "squawk" in just a moment. financial noise financial noise financial noise tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities.

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and foebl. >> that company, ford, giving manage:the okay to separate the retail and nook media businesses into two separate public companies and hopes to complete that split by the end of the first quarter of the next calendar year. >> senator marco rubio says that the time is now for the nation to find economic security, joins us now with more. good morning, senator rubio. today, you know what, we will only talk about this. i know you don't know who the republicans should run in 2016 and i know you don't know whether, was that a good thing or a bad thing in mississippi overnight? we don't know for the republican party at this point. we didn't talk to you sis cantor, have we? >> i don't think so. we can talk about that, too. but i certainly want to talk about the future of the american dream. >> we will fix it right now. the future of the american dreams, how can we do it? >> first of all, i go back to my own upbringing, my parents didn't have much formal

immigration and were able to make it to the american middle class service job. the more important part is i grew up believing i could go as far as my talent and dream would take me. i could have the same dream and future as the son of a president and millionaire. now you have a number of americans that don't make that true anymore. i will highlight four separate americans, a young single mother in florida struggling to provide for her two daughters. she is stuck in a job that doesn't make any money. the only way to improve her prospects are to go back to school. she can't. we have a higher education cartel that doesn't allow innovation to provide her cost effective and time effective ways to get that education. we'll meet two young americans who live in florida who did go to college an graduated. neither one can find a job in the field they graduated from. one was about to start making payments on a student loan the other needs to go go back to

grad school is afraid to, because she doesn't want to owe 50 or $60,000 when she finishes. the last is a family that runs a small business. they were starting to climb out of the hard hit recession an got hit by obama care and the general malaise. for all these people, their dreams are not exotic. none are looking to be billionnaires. they want to have a home, raise children in a safe environment and have a life better than themselves the fundamental challenge we face is every single one of our institutions from government to higher education and everything in between has completely failed to adjust to 21st century reality. none of them are responsive to the new world we now live in, where globalization and information technology have changed the nature of our economy and our laws and our education system simply don't reflect this. >> that's right. senator, this was in summary

what you are saying everybody i think everywhere agrees we want equal opportunity for everyone in this country, especially in terms of getting an education. then few work hard and you earn your own success, you radio ten benefits or if you don't, then you don't, that's what all of us can agree on, that that's really the nature of the american dream. but we have a disruptor series here, we talk about things that are disruptive. it looks to me k through 8 education, so hard to disrupt a. higher education, so hard to disrupt. there are so many entrenched parties, the union, the tenured teachers. you look at the way colleges operate, it's almost impossible to disrupt that. this teams seems like the hardest nut to crack right now. this is the one area, so many regulations, so many things that make it impossible to disrupt that that's why there is a problem. >> so there is two primary impediments the quality opportunity in the 21st century. one is our economy has become

enkriegsly lost its edge, because of regulations and a tax code that makes america a much more difficult pla toys innovate and invest, as a result we are not creating the higher paying jobs the 21st century promises. the second part is the higher paying jobs all require a higher level of skill or a higher level of education. the only system we have is the traditional four-year college mod thael costs a lot of money. there is no viable way for to you go back to school and work full time and raise your families. if you don't, you are never going to emerge from that $9 an hour job. we need to create alternatives to the existing college track and that includes something you just talked about. >> that is allowing people to graduate from high school with industry certified job skills so you can go to work right away as an airplane mechanic, as a bmw technician, a welder or any of these other professions that pay

middle class wages and you can get when you are 18 years of age. >> who pays for that? in there we spend more money per student than any nation on earth. the money exists already. the question is will we will offer those programs. >> you don't have to take the money, have you as to repurpose the money. >> what is it? is that where you will have higher education all the time and lower education? >> i don't believe that's accurate at all. we have an existing pool of money that is primarily generated at the state level. it is poured into a mid-20th century education model that basically says you will either graduate with a high school diploma. >> senator, the devil is in the details. agree 100%, where do you take the.from? >> i fundamentally disagree. what makes you think this costs more money? we are already educating the students. >> are you saying the money needs to be reallocated. where are you realocateing it from? a kid is going to school, i'll give you a perfect example.

in miami, florida, we have a high school with a lot of kids that end up dropping out before they turn 18. so a local car dealership went down to the school district and said, send those kids to me, the first couple hours, they go to high school, like they are now. they take their classes the rest of the day, send them to my body shopch when they graduate, they will have a diploma an a certification that allows them to go to work in the body shop right away. >> that doesn't cost more money, i argue it saves us money. >> that dow jones require any sort of new tax or other ernd expenditure, that requires taking our existing students and providing alternatives to the way we teach them today and, by the way, these sorts of programs are springing up all over the country, but we need to incentivize more of them. >> in this particular instance, isn't part of the larger conversation that you are having when it comes to re-allocateing that money, becky asks, through the losers, i imagine in this case the losers have to become

the teach, again, i may not disagree gree with you, that is a buzz saw, no? >> why would teachers lose in that ekwaegs? maybe those kids are not going to be take electives in the afternoon, they're off doing their job training. they will have plenty of students that want the four-year track. the only difference is instead of 25 kids in the classroom, they may have 15 kids, providing a better learning environment potentially for that teacher. plus, i would make this point, many of those children, they don't stay in school. they drop out. you lose those funds yaerp anyway. once they are not a part of your student population. so this whole notion somehow this will require new expenditures isn't accurate. what it will require is forming the existing. >> you are talking about reallocateing exists funds, that's where every problem when you have tried to reform school has run into. i don't disagree with anything you are talking about. >> the problems that have happened. i know this from my time in the state legislature in florida,

reforming k through 12 in macrohave largely been the result of two things, creating greater blth anteand and provide changes in the way we teach children. it's not been about money. of course, every district wants more money and to be able to provide new services or to give teacher raises, but that's not really what the fights have been about, but things like teacher tenure, benefit, and more importantly, innovation and choice. >> before we go, you saw mississippi, you know, everybody's watching after what happened to eric cantor and the fight and the republican party. just in your view, do you think, for the next presidential election, would a cruz or rand paul do better or a jeb bush or a christie or a you? who do you think -- which -- who should the republican party run

to convince the nation to give the keys back to the republicans? >> the republican party doesn't decide who runs. the individual candidates do. >> what's your opinion? >> my opinion is that america desperately needs a reformed conservative movement explaning to the american people what free enterprise and limited government looks like in the 21st century. if the republican party runs a candidate on the platform of that nature, we'll be successful, not just winning the election, but uniting the country. >> do you think the establishment forgot about free enterprise and limited government? >> yes, i do. i think to often there's instances where they are the party of big business opposed to the party of innovation and free enterprise. >> not do the bank? >> the time has come and gone. >> we have to two, but the president, you talked about families, he proposed that we -- says we should join the rest of the industrialized nations offering paid leave for mothers

of newborns. weigh into the debate. >> many countries -- sorry, companies provide that, and if a company decides to do that as the benefit package -- >> legislate it? >> not federally mandated. >> do you think state mandated? >> states can decide to do that because states have to compete with each other for business, but i don't believe there's a federal mandate to the effect. >> all right, senator, thank you for coming on. see you soon. >> thanks. "squawk box" will be right back. fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that.

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a look at futures this morning. if you look, right now after yesterday's declines, we are looking at green arrows, modest advances. take it back, they turned around, probably with the gdp, a bigger than expected drop for the first quarter. knew it was lousy, but didn't know it was 2.9% lousy. bad news is bad news. dow is down by 16 points below fair value and s&p futures down by two points. stocks to watch today, monsanto

boosting in early trading. the company's authorizing a two-year, $10 billion share buyback program. the stock up almost 5%. >> shares of barnes & noble up sharply, the board has the okay now to separate the retail and nook media businesses into two spr separate companies and hopes to kplet the split by the first quarter of the next calendar year. >> general mills fell short, a company's ceo says the number one objective in the coming year is to accelerate the top line growth, the revenue growth. we will matwatch the markets to, the ten-year immediately, yield fell, price spiked. >> lowest level since june 2nd. immediate knee-jerk reaction. >> how long did we -- do we believe 3% is what we're going to do this year? >> mathematically -- >> questioned it the whole time. >> you questioned it. . >> are you sure 3%?

>> the worst nonrecession gdp drop in 53 years. >> unbelievable. >> you know what? climate change. join us tomorrow. >> go pro. >> "squawk on the street" is next. good wednesday morning, welcome to "squawk on the street," simon and we've just received a stunning revision to q1 gdp, one of the worst nonrecession numbers in half a century. futures down as investers take stog of the number, durables a miss this monk, in fact, the worse miss of the year. europe in the red after selling