a quarter, i don't see it changing much. i don't think the global economy is to the velocity or trade, but, listen, i'm open minded, and i hope it does mostly because half of the economy that do not own stocks need it. >> thank you, brian, thank you for hanging out, and becky back at the nasdaq, thank you for the interviews. join us tomorrow, and "squawk on the street" begins right now. big debut for go pro, looking at the nasdaq this morning where the maker of the best selling video camera in the world is going public. becky talked to the ceo moments ago. we'll cover the bases this morning including the opening trade. good morning. welcome to "squawk on the street," i'm carl quintanilla, and cramer is off today. the market is flat digesting the data, and personal spending is a miss for a second month in a row, but jobless claims in line.

ten-year yield down this morning. speaking this afternoon, and europe is mixed as well. road map begins with general motors halting sales of the chevy cruz sedan due to faulty air bags while the ceo offers an explanation on nbc. >> pricing at the high end of the expected range, we'll bring you all the action of those very first trades. >> and shares of bed, bath, and beyond are taking, well, a bath this morning. the company missing earn's expectations due to high costs. >> alcoa buying for 2.48 billion in cash and stock. dealers temporarily stopped selling 2013 and 2014 chevy cruz sedans due to air bag programs. mary barra was on "the today show" to answer questions about the crisis, and we have more.

good morning, phil. >> reporter: good morning, carl. whenever a dealer is told to stop selling a particular vehicle, it's not good news. it can be damaging not only to sales, but to the reputation of the dealership and company. that's what happened to general motors, telling the dealers, stop selling 2013 and 2014 chevy cruz models. why? there's faulty air bags, trying to figure out what the models are, how many are on dealer lots, and fix the air bags, there's no fatalities known of at this point linked with the faulty air bags, but, again, the cruze is the top selling car for general motors and told to stop selling those. that should be lifted, they expect, by the weekend. look at the total number of recalls from general motors, stands at 44, over 20 million vehicles worldwide, 17 million

in the u.s. have been recalled. this morning on "the today show," the ceo, mary barra, was asked if there was criminal activity involved with the faulty ignition switches and if they should have been recalled sooner. here's what she said. >> that's for the court to decide. i took action for the people who shouldn't be on the company anymore. >> would you take criminal charges against those who worked for general motors while it was going on? >> that's for the courts to decide, not right for me to speculate on that, but there were mistakes made, and we're dealing with the situation. >> reporter: part of dealing with the situation is coming up with a victim compensation fund. that is being organized by attorney ken feinberg. we talked with him monday morning. he'll announce time maps or initial plans for compensating victims of the faulty ignition switches. interesting to see not just the dollar amount, carl, that goes

into the compensation fund, but the total number because until now, general motors said 13 were killed because of faulty ignition switch, and lawyers say it's higher. we'll find out on monday. back to you. >> all the bad news, phil, is essentially mixing in with a banner year for auto sales overall. have you seen evidence that their recalls are having an effect on sales? >> no. in fact, traffic at probably this dealership and other dealerships has maintained a steady pace. now, when you have a stop sale order that goes through, that's when you might have people saying, i'm not sure i want to go to the dealership and check out buying aed specific model i can't buy it that day. we'll see what happens with the cruze. >> thank you so much. meantime, of course, go pro pricing at $24 a share, at the high end of the expected range, values the video camera maker at

$3 billion, and we are all over the pricing on that at the nasdaq with more on the market debut. >> carl, the founder, nick woodman, called it a 12-year overnight success. it was originally a camera company he founded because he wanted to go surfing and take pictures of his trips out on the water. it eventually morphed into a company with more than a billion dollars in annual revenue, loyal fan face, a youtube channel with 1.9 million subscribers to the channel. he founded it with $30,000 of his own seed money, and now it's thee de facto camera to record active lifestyles and extreme sporting events around the world. that's led skeptics to say this is essentially a hardware company, what's stopping other companies from entering the space? this is how he answered the question on cnbc earlier this morning. >> anybody can go make a piece of hardware, right?

but then they need to attract millions of people to capture and share their lives and give the hardware maker credit for it. all of that needs to be delivered to the market, to the consumer by a really rock star high energy compelling brand, and you have to hit each of these points to be go pro, and that is a taller order. >> demand for the deal is strong. skeptics aside, underwriters say the book for the ipo, 20 times over subscribed, meaning peoplemented to buy 20 times more shares than the 17.8 million offered. the call was late into the night, the pricing was not finalized until a quarter until 7:00 p.m. eastern time because they discussed whether to price if higher, possibly $25 or $26 a share, and that was an active discussion going on, carl, but before woodman went on c nrg bc this morning, i said, why didn't

you price it? he wanted to share the love, make sure the deal was successful. we'll see after 11:00 a.m., but i'll be here with the latest on an exciting company and exciting deal with the exchange. back to you. >> kayla, thank you we'll talk about the structure of the deal, and we talked about the camera business is being commoditized quickly. how quick? >> i think that's the growth opportunity they have to stress in terms of moving from hardware to as you say software content distribution, the youtube channel mentioned, we heard, of course, in the long, great interview becky did with the founder. that's the open question for those looking at this company now, certainly a brand name that's become very, very well-known. that's certainly great help, but what they will need to do is show that the business model can transition and show significant

growth into the future with that new -- >> priced at three times earnings though, up there already with the other media companies. it would be roughly half that if it was just a consumer electronics. look to the way the dpie handled the interview, he's telling a phenomenal story. it's, you know, 6,000 videos uploaded every day was the figure he gave, and that basic realization that people are interested in filming themselves as a selfie going out doing extraordinary things other than filming other people. >> it is an amazing story. he looks the part. >> yes, he does. >> a surfer background, selling goods from the vw van, the whole bit. we got to all of that. the importance is the dominance of the brand in the categoriment analysts suggest it's the most dominant position of the category since the ipod. >> it's doing extraordinary well. >> it's still consumer

electronics, and if there's not a system around it, it's unclear how you create value. >> he's trying to get into content. if there's that many people devoted on the sites watching, and uploading, at some point he can monetize that. >> well, he's already able to monetize it. that's happening today. >> on the pricing. >> yes, the shares are 22 cents. there's modernization going on. >> woodman and his family, 49% of the shares, billionaires. >> it's a good day. tim cook at apple listens to "squawk box" on the way to work, and i wonder if he heard the guy and thought, i wonder if i need him on my team? >> we'll see. >> he would have wanted to do that prior to the ipo. >> usually. >> meantime, bed bath & beyond. >> falling, and it earned 93 cents a share, that's shy of what wall street was expecting as higher costs hurt the bottom line despite increased revenue.

the company's current quarter guidance, perhaps, more importantly, is also below consensus, and they had a fraught year. the first was dominated by the bad weather, and now the gdp numbers bad as they were, we have a little nor sympathy with the co's that blamed it at the time. >> yeah, comps up .4, and higher couponing, higher shipping costs, that brings guidance down, and street's at 120. it's, obviously, a tough time. >> a big move online. a lot of investment online. >> and more consumers buying consumables, in the mix, hurts the margin. yes, we have a deal with alcoa to get to. usually we talk about it in earnings season. they are buying jet engine components maker from oak hill capital partners. it's 2 .8 billion in cash, and a

little stock. they are looking to broaden their aerospace offering. they spoke about the deal today on "squawk box." >> this is a transaction that creates a lot of value for the shareholders and customers, and on top of that, it's a highly growing market, fantastic. we are already strong, but this gets us additional strong, completing the product range, and that's what we like. >> they are talking about completing in a sense or continuing the transformation of the company. as he said, it's about growth in the commercial aerospace sector, suggesting it compounds at a rate of 7% from 2019. the company they buy has locked in contracts guaranteeing revenue growth, as much as 12% annually from 2019. it was the 2007 leverage buyout, $2 billion was the price tag, but don't ferg, that's debt. this is a pretty nice one, it

seems, at least at 2.85 billion for oak hill, and watch shares of alcoa. we talk about it, but how do the acquirers's stock do? that gives confidence to other ceos out there considering a deal. this morning, alcoa shareholders in the early going seem to be responding positively to the transaction. >> as importantly, can we check a year to date chart? you heard the rating, up 40% so far this year alone partly because of the view that the supply growth -- there you go, look at that, 42% -- as a result of supply growth in china, and aluminum in car body parts. >> he mentioned auto sales as a reason why he thought the q1 gdp print was not reflective of the economy. it's the second biggest european materials deal this year. a baseball statistic. >> there you go, using the

benchmark bridge facility will be used, but one of the themes we talked about for so long, cheap money helping to fuel stock prices responding positively on the buyers's side. >> is it the end of the rally? >> that's the question. >> two more years to go. >> that your prediction? >> no, no, that's the discussion. end of the rally? no, they could go for two years. when we come back, the go pro's ipo debut, and 20 deals coming to market this week al e alone. take another look at the futures as the dow comes off the day shrugging off the gdp number. a lot for "squawk on the street" from post nine in a moment.

all right, the go pro cam, go pro's going public today, pricing at $24 a share, high end of the range. what will the offering mean to the ipo market? david menlow is joining us, good morning to you. >> great to be here. >> like how it's structured. >> i like it very much. from the beginning, all the press that came into this ipo process, the slow and rather reserve pace by which they did it, they didn't go over board

and make all kinds of representations. the ceo is just a model of what you want for an ipo voice. the product, i don't know where to stop as far as the sue perlatives. >> what about the decision not to price above $24 despite pressure according to reports to do that? >> tremendous applause. i think that is a very bold move because in today's market, if these issuers can shave off another 50 cents on the deal they push to the envelope and forget the issuers, who is the ultimate buyer of the stock. >> what's the prediction at the open, then? >> we always had the stock on our hot list, a minimum of three to five points higher, up seven or eight points, that's fine. the stock will continue to move higher, but the valuation concerns, you know, that everybody's talking about is beginning to be a stumbling block for them. >> what is conservative for an ipo that's 20 times over subscri subscribed?

you expect higher than that? >> you would, but if it does, we're not upset, but the problem with that is 20 times when you start out in the allocation process doesn't develop to 20 times more stock once it opens. people will say, do i want it at this particular level? i think it's a great move, and i love the fact we may be low on the call. >> david, you know, sorry, people are going to look at whatever the open may be today and say, oh, here we go, revisiting the heights we saw, 14, 15 years ago, the height of the dot-com boom. people want connections, curious given you have been studying the markets for so long, is that spurious or is there something to it? >> you know, for those people that really want to dig their teeth into something like sanchez, they are not going to get anything there. it does a side by side checklist of the early '90s and 2000s and what it is now, the stocks are dissimilar. let them talk.

in the meantime, smart buyers are there, gauging the stocks, and it's not 80 or 90 points higher, much more reserved and every's thinking better. >> livestock of the nasdaq as they are setting for the opening bell in 12 minutes. how do you put valuelation on a company that's in the midst of the big transition in terms of the model, overall model? >> you know, this is the problem i struggle with for basically 25 years i had the company. once you get into a valuation modelling bull, and there is a bubble in the modelling, it does not make since no matter how yo parse it. go daddy is looking to come public. morgan stanley's lead manager probably said to them we believe we can get you money here. all the sudden, google decides they are going to go into this space, 10 what do you do with the deal? take the valuation, cut it down to a third? do you not do the deal? there's a lot of reality bumps as companies come, and there's a

evaluation reset. >> is it realistic the nasdaq won it and not the new york stock exchange? >> i want to say it's significant, but facebook was a similar situation, and the battle back and forth is not a battle of quality, whether they should be here or not. >> well, i'm told it's the third busiest week in 14 years. >> yes, yes, but it's not a very healthy type of ipo market from the standpoint of the sector distribution. we're seeing too many deals in the secondary part of the marketplace where there's a focus -- this is a hot sector, let's bring deals into the sector. when they saturate it, the market says, done for now and move to something else. if we had a better distribution of stocks across various sectors, i would find that to be a healthier market. >> what is saturated first? >> pharma, trying to come back, tech will be there because of the sparkle in every's eyes.

>> we didn't talk about secondarie secondaries, but something to watch as well. >> absolutely, 3.3 times secondaries pricing than ipos, unbelievable rate and continuous. >> david, thank you for joining us on a key morning. david menlow. we'll count down to the opening bell and a last look at the premarket on this thursday. we're back in a minute.

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brand in the camera category. a few minutes before the bell here thursday. let's bring in art cashin, director of floor operations, post nine as well, and art, good morning to you. >> good morning. >> were you impressed with the bull's tenacity yesterday? >> i certainly was, bears had the opening, and they gave it up after 12 minutes. it looked like the buy, the dip crowd came back in. they apparently have the strategy of when things are moving to the downside, stand aside. yesterday morning, we failed to make a lower low than the previous days's reversal low, and they immediately came back in and started buying, so -- and this morning, we got a little sigh of relief bounce in the bond market because the pce deflator was mild baring out

janet yellen's idea it's noise. >> they have the ball today? >> yes. >> is it back to 19 74 or what do we watch? >> yeah, resistance is higher up because of the reversal, up around the 1970, 75 area, and should the bears find opportunity and come in here, they want the hold of the s&p above 1940. >> last week, you felt the credibility of the janet yellen would be tested as a result saying there's noise on inflation. is that argument deflated partly, not just because of the pc numbers but because of the gdp data shows contraction, and, therefore, inevitably more slack in the economy. >> well, i think she got a renewal of credibility. i don't think she's completely off the hook just yet because you saw how the markets reacted, the big jump in gold, et cetera,

so people feel that there is kind of a less than fully visible inflationary pressure out there, downsizing of packaging in a variety of other things, but, yes, the pce this morning gave her a little boost in credibility. there were people saying she was purposely ignoring the inflat n inflationary pressure, and now she's off that hook. >> we will not name names. >> yeah, she did ignore it, and it was bizarre, but, you know. art, thank you so much. opening bell minutes away and so is go pro going public. we'll be right back. radio announcer: it's mattress discounters 4th of july sale.

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the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade. you're watching cnbc's "squawk on the street" live from the financial capital of the world on this thursday, opening bell in a few seconds here. the story, admittedly, will be at the nasdaq in the early going as go pro goes public having being priced 17.8 million shares at 24, the top of the range of 21 to 24, valuing the company at almost $3 billion, and, of course, you know the brand already, the maker of the best

selling video camera in the world. we've talked to the ceo on "squawk box" this morning. let's get the opening bell and look at the s&p at the top of the screen. down here at the big board, service master global holdings, a provider of building maintenance services celebrating its ipo today after a 17-year absence at the nyse, and, of course, how appropriate, as seen through a go pro camera itself. that's go pro at the nasdaq celebrating its ipo today. as david menlow just said, nick woodman, who founded the company, owns 49% of the shares, former -- actually, probably current surfer who created the camera initially as a way to tape himself and friends surfing, ceo voice you want if you were coming into the market, guys? >> yep, he sold a good story and priced accordingly, still at $24

a share, no higher. pressure to raise that due to the interest, 20 times over subscribed, phenomenal over subscripti subscription. >> interested to see how it evolv evolves, and if they are successful in doing that. they hired tony bates, a senior guy from microsoft i got to know a bit as president, impressive guy. don't undersell the ability to evolve, but they have to, no doubt about that, because you don't want it end up as a seller of hardware. >> people don't buy hardware, but a solution. they believe they are -- i mean, i know this is hyperble, but he's providing a solution filming himself and sharing it. >> has a mystique, a brand. that's why one of his idols is the founder and ceo of red bull, which has become not just a

brand name, but an idea, a category into itself. we'll see what the opening trade brings us when they begin trading later on this morning. overall, it's not a good morning for consumer names. we brought you bad bath and beyond, down 7%, missing by a penny and guide low forget second quarter. mccormick spice has problems at open here, u.s. consumer volume down six. jpmorgan says they are struggling in the spice market in a way they have not in ten years. >> i don't know what that's a sign of. any ideas? >> less spice? >> you cook occasionally. are you using fewer spices? >> no, not at all. >> i don't know. maybe it's exclusion. >> i can talk about phillip morris. >> jim were know about the spice market or forgot more about it than i know, but he's not. i turn to you, simon. >> i'm sorry. >> you mentioned morris, they

are cutting guidance for the year calling it a complex year. price cutting in australia, currency head winds. >> and their facilities, not producing cigarettes in australia and netherlands and taking charges for that. brutal in australia, bottom end of the market saying, actually, we have to downgrade expectations again if that occurs, and inevitably, the currency cross winds, we'll hear more about, if the dollar does continue to fall. obviously, the jury is out on that. opening trade down almost 3%. >> trying to transition into e-cigarettes. a lot going on. >> they made a purchase in the u.k. with a dominant player there. they didn't give a figure on that deal, carl. >> david, you mentioned alcoa, up 3% on back of the deal. >> 3.5%, see if they maintain that, and "squawk box" explained the rationale, getting bigger in commercial aerospace, transitioning the company to focus much more on what is a

higher growth and more sustainable, perhaps, business. >> higher margin. >> yes, and higher margin with long-term contracts that you can at least have a lot of security or decent amount of security in terms of your revenues and higher margins. i think applaud it right now. >> simon, not a chance to look at bar you know clays, but curious at yesterday's action, sniderman, a busy guy. >> i thought of that, opening lower, came before the end of the session, it may be baked into the adr. trading at 170. >> wow, a big number. >> there is a huge amount of concern about the aggressiveness of u.s. authorities n notwithstanding the trade there, not deliberately, the fines, still questioning as to what they have to pay for their dealing in the sudan or dealing with people in sudan and iran, and latest is that they could be

barred from transferring u.s. dollars for up to a year is what is being reported. now, that could have material consequences as well. what a will the of people are saying, it does a point come at which as international banks, we shy away from the united states because of this very muscular reaction now to everything. >> right. >> hard to do in some ways, hard to shut the united states out of the financial system. >> for people like barclays, but there's other european players that could easily sidestep it to an extent. >> the futures certainly is in that regard, would be in some doubt, their ability to conduct business if they can't for a year -- >> and force the resignation of 30 of the staff. you get -- it's getting more muscular as time goes on. >> it does. there's a lot of people involved. the new york state ag is busy as

of late. >> yes. >> risk in the markets, i note the spread between treasuries and corporates has come down to less than a hundred points, i believe, for the first time since 2007. whenever you hear 2007, people start to get a little more concerned. that spread is not bad in terms of trying to, at least, we know the reach for yield continues. we know junk yields have been low, but spreads have been okay historical historically, but they are coming down. >> one of the risks to that as was wrote overnight is the idea that the fed becomes more aggressive, but with the data we got yesterday, it's clear that the fed -- you can push back which the fed is going to be able to talk about raising interest rates because you have that excess slack from the gdp data in the first quarter in the economy, carl. speaking of the earnings, and in the housing market, 61 cents beats by a dime. new orders up eight, a little

light. deliveries beat up 12. average selling price up 14, beat as well. pretty good performance in the core home building business. watch social today. twitter just cracked $40 for the first time since april 29th. we remember what a tough time they had after earnings falling below 30. it's been a long road back. evercore reaccelerating, looking for 20 % in q1 after 19 in q1. barclays initiated big cap internet names over throe, twitter, facebook, and google. the equal weight, four names, amazon, linkedin, and yahoo! and underrate netflix. >> did you get the notes on that? did they explain why they underwaited on netflix? they are explaning the buoyant side of things. i didn't get an explanation as to why, though. it's been a good run. >> the target's on facebook 78,

650 on google, a 46 on twitter, so we do have some enthusiasm regarding the internet and social space as well. >> twitter responding most positively to the move this morning. although, twitter moves more percentage-wise in the group one way or another. eclipsing the $40 mark. not much action after yesterday's significant ruling basically putting aereo potentially out of business. as we said so many times on the broadcast yesterday, the follow-through, there is none. more or less flat. disney up a bit, cbs down a bit. big winners yesterday, focussing on larger cap companies were the smaller cap companies that own affiliates. they were talking about scripts, you know, did want to point out that today, got a bit of a move,

but nothing much in terms of follow-through to what was a very good day for them yesterday. >> mention service master an the ipo priced below the expected range. waiting, of course, for that to trade. bob will have more on that in a moment, but pricing at $17 a share. the expected range was there $18 to $21. some ipos having more difficulty than others starting the traditional business versus tech. >> when companies are public, there's marketing efforts, passing out goodiegoodies, swag to give away chocolate chip cookies that have dried crickets in them. >> we've had a number of our crew ate them said they did not taste them. i'm curious about that as well, carl. as marketing, i don't care, i mean, really? you can look the cricket in the eye next to the chocolate chip.

i didn't open it. >> there it is right there. >> that is not a joke. cookies with dried crickets. >> bob, can you try one? >> he'll eat anything. you had it, didn't you? >> ate the wrapper, did not eat the cookie yet. it's nutritious. is therein an ipo today? there is. it's gopro. we are awaiting servicemaster here. here's the crowd, indications around $17. the important thing about servicemaster, folks, priced at 17, a bit of a disappointment. the full screen here, residential commercial services as well, home inspections, residential cleaning, furniture repair. the issue for them is a classic lbo, folks, clayton and rice did it, most of the money is going to pay down debt for that, and there's slow growth, 4% a year. that's part of the problem, and i think, of course, a lot of the people involved in this were eager to get the deal out, $17

right now. moving on and talk about lennar. i thought they had important information. first, disappointed, 8% orders? that's below expectations, weak, but stuart miller insists, his quote, the market continues to outpace supply, modest decline as you see there in lenar. b bed bath & beyond, the profit and sales miss, q2 guidance again below expectations. that's simple. too much competition from online and offline. that's a one-year low for bed bath and beyond. i don't know how that changes or how they turn it around. you talked about new york attorney general's suit. this was a big surprise to the street, not that he's investigating, but they thought he would come up with something, find a rogue, high frequency trader. this was broader and sprieding saying that the dark pools favor

high frequency trading over at barclays, and the allegations surprising, specifically on fraud, but also a lot of misleading of clients, falsi falsifying information, deceiving clients who was trading in the dark. this is not so much about high frequency trading, but misrepresentation of information, misrepresentation of marketing materials, and that word, misrepresentation, is a key element in the martin act. the idea they gave information to high frequency traders including information on their identities and trading activities, that they gave to high frequency traders, that raises eye bro brows, dark pools f anonymity. this is not a settlement. he's essentially suing them. they have 30 days to respond. the question is what's it mean at this point?

a lot is going to depend on what barclays says in the next 30 days, but, certainly, some dark pools may lose orders, and there's certainly more momentum now to figure out a way to return order flow more to exchanges in a way from dark pools. the fcc fretted for a couple years that about 40% of the volume goes to dark pools now trying to figure ought a way to move volume to the exchanges without significantly changing the market structure. for sure you get more disclosure on how to route sbugsal orders at a point. guys, i don't know if there's more investigations into other dark pools. that's what everybody is trying to figure out now. sniderman declined a comment on that when becky quick talked to them. here's a point, guys, apparently, had former disgruntled employees at barclays, key part of the help for him. it's not clear if that's other disgruntled employees from other firms helping. finally, talking about gopro

today. germany, u.s. soccer game at 12 noon, i bet the screens here will change. we're going to get servicemaster to open. servicemaster now opened at $17.45, pricing at 17. a lot of people cheering down here. guys, back to you. >> just give us that price again on servicemaster, bob. >> 17.45. >> oh, it has bounced. >> from the 17 price. >> let's come back to this that. in the meantime, the latest from chicago with rick santelli. rick? >> how are you this morning? the chart passed down here is not of the soccer field. it isn't the comments that sniderman better watch barclay's hard drives, no, but a 20-chart of the deflator. look at the chart. if it was a stock, they would be looking to buy it. it doesn't look like there's a

huge downside to it that this inflationary argument, i don't know, if you look at the chart, it doesn't seem to hold water, but looking at that, tens minus two flattens. 206, see the chart? open the chart up for a bit, for one year, what should jump out at you is at the beginning of the year, this spread was 60 basis points wider. wow. look at the ten-year. we see that the yields are going down. we settle at 256, we're at 253 now, dropping is more buying coming in. that's a four-week low. you open the chart up to june 1st, you can see, but here's the situation. traders are wane. the income spending numbers in the general economy post gdp continues to trump the ongoing issues of what we see in the deflator, and the inflation scene, and the break evens. if you look at the tips, but reconciling the two is not easy as traders said because maybe without inflation, the news out

in the last couple weeks, we would be 30 or 40 basis points lower in yield. you just never know. look at booms versus teches, it continuines to expand its 15-ye wide. look at intraday, the boom yes, you see why, and the rast chart year to date of the dollar index, the ranges pick up a little, but on the right side, still a lot of consolidation and crucial, virtually unchanged on the year level. david, back to you. >> all right. thank you very much, rick santelli. staying on top of the ipo action, see how gopro opens for trading, as servicemaster is now trading." squawk on the street" is back in a minute. e save money for over 75 years. they've really stood the test of time. much like these majestic rocky mountains. which must be named after the... that would be rocky the flying squirrel,

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locations across the country, and it was unfortunate in the first quarter because of the cold weather, the traditional termite revenue did not do as well so there's a low base off the ipo, into the book building and priced this below expected range there at $17. >> right. still waiting for opening trade on gopro over on the nasdaq, and when that happens, we'll bring it to you. dow down a hundred points in a hurry. only a couple components in the green, that would be disney and caterpill caterpillar, i believe, led largely lower by the banks, guys, jpmorgan the worst at the moment. cashin said the bulls have the ball at the open because of the pce deflator, a number mild at 15. seeing losses here in the middle of the session. >> unusual to have volatility, triple digit move on no big news. the data benign.

maybe there's a break out in the financials moving important for many, the big move on barclays. >> goldman sachs down two points. >> the united kingdom warned with its results that could play into the world wide argument. >> yeah. income spending missed, sec miss in a row, and it's two out of three for q2 now we're looking at. there's the argument people toss around, toss out the number as being old, is some of the data that's coming in for the current quarter weak? there's discussion that you won't get a free pass on q2, maybe 1 because of the weather, but 2 another story. >> it's interesting with the consumer-oriented stocks today, bed bath & beyond, and it may be

evidence of people trading down, which is what bed bath & beyond has been trying to cash with the couponing data. >> yeah, and lowering gdp to 2.9% after the softer than expected u.s. spending personal numbers from may. it may be the market is digesting that first quarter number, and then revisions as well potentially for what we're going to see for the second quarter or at least coming down. >> one of my favorite stats, you know, almost to the mid point of the year, just a few sessions left in q2. take the dow's gains so far this year, double it, 2014 is up 3.5%, and last year, 26.35 management. >> but the s&p has done better. >> i think people would take 12, take 12 for this year, people take it. >> i will. >> that's the issue. when we come back, gopro's

opening trade and a conversation with one of its board members, and, first, an investor in the company joins us on "squawk alley" at 11:00 a.m. eastern time. dow's down 15. be right back. e. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow customers to customize their preferred chocolate. we needed a scalable cloud solution allowing them to select what they are looking for. now there is endless opportunity to indulge. customization is made with the ibm cloud.

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welcome back to "squawk on the street," i'm jackie deangelis, watching oil decline today in line with equity prices. starting with brent crude seeing a drop today after hitting a nine-month high last week, getting closer and closer to the $113 a barrel mark. traders now saying we're not seeing supply disruptions out of iraq, so they areless fearful about the price, and we are seeing the spread between brept and wti contracting to $7. the wti price under $106 a barrel right now. traders say they are talking about the conversation from yesterday about the idea that washington may lift the ban on oil exports, but they are saying we'll cross that bridge when we get to it. right now, prices are lower. i want to talk about nat gas prices ahead of the department

of energy's weekly storage report. it's about how many digits we see here. some traders want a triple digit build, but prices now are higher with most people thinking we're not going to get it. that number at 10:30, and we'll have the latest headlines on that. carl, back to you. thank you so much for that, jackie deangelis, go you know pro makes its opening debut, trade coming up, and key rulings due out from the supreme court. don't go away. ♪

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breaking news here on the world cup soccer front. we now know that fifa, the international governing body of soccer banned euroguy player for nine games, banning him for soccer activities for four months after the high profile biting incident where he bit an italian player in a world cup match. we now know he's ban for nine games, ban for all soccer activities for four months and ordered to pay a $100,000 swiss frank fine. officials speaking, and this was

the bite felt around the world. an interesting development on the sports front. he's ban nine games and four months from soccer related activities. >> cue the headlines, reality buys, dom. thank you very much. waiting for the first trade on the nasdaq ipo, talk with the founder of flip cam and a competitor. question is, is this a fad or sustainable business? >> the drip of negative headlines continues for general motors, why sales of the most popular car at risk. >> bed, bath, and watch out below, tough report for the retailer that stock is diving. >> shrinking economy did not detour bulls yesterday, but stocks lower this morning, a triple digit decline, and why risk is off the table now. >> we are waiting more decisions out of the supreme court this morning after that block buster decision yesterday as the court declared aereo illegal. there's more decisions coming at

you today, a key obama ruling, all the headlines, of course, as they trickle out. the markets, though, lower on the board on weakness of consumer names, financial names, bullard making hawkish comments, dow down 111, not too far from the open. the chief market strategist, charlie, vice chairman portfolio manager of aereo investments. good morning to you both. what duo you think? are we extending the downward action? >> you know, still seems to be a churn. we had a low volatility period, and we are coming into quarter end. don't place a lot of importance on what we see going on right now. we're still positive on the second half of the year, and i think stocks continue to extend gains modestly in the back half of 2014. >> would be nice for personal income and spending that beats rather than misses, right? >> absolutely would. look, the u.s. economy is still

running on two and a half out of eight cylinders. we need improvement there. the market's anticipating it. i think we'll see some of it, but it's a lot more choppy than all of us hope. >> part of the rally, charlie, people pointed to, was the better growth outlook in the second quarter begin what we saw in the first quarter down 2.9%, given the numbers seen, personal spending below. do those gdp forecasts have to come down? >> you know, we are cautiously optimistic. if anything, we think we'll get a bounce back from pent up demand in the first quarter. we think auto sales will be strong, housing is coming back, energy is pretty strong. we are cautiously optimistic on the outlook for the economy on the rest of the year, a contraryian view, but sticking to it. >> janet yellen says inflation is noise. what do you say? >> be worried when other people are not worried. the big risk not factored into

stocks and bonds is in inflation. you can't have central banks around the world print money the way they are and not have the risk of inflation. it's not being built into stock prices or bond prices. protect yourself and your portfolio against inflation going forward. >> nick, help me, i'm confused where the federal reserve is. last time, the statement from yellen, no mention of increased inflation pressures despite the fact so many members of the fed were hawkish in public. we didn't get much of a move on the dots when they felt that interest rates were going to rise, and then this morning, in the weigh of that, james is kicking off again. he's getting more hawkish. here's in the middle, for many people, an indicator where the committee overall might be heading. he's just made comments, almost like carney at the bank of england, surprised by interest rate rises and indicating that rates could rise in the first quarter of next year. what do we do? what are they telling us, nick?

>> yeah, it's a very, very good point, obviously. the number one surprise of 2014 is the rally and bonds to the low levels of interest rates. makes a ton of sense to be cautious. i'm not worried about inflation because we're not seeing wage inflation yet. without wage inflation, hard to see how prices kick over because people can't afford to pay them. i'm not probably as worried as others about inflation, but honing in on the right point. >> charlie, would you agree? >> no. exactly the right time to be worried about inflation is when the market isn't. i grew up on the south side of chicago where a famous man said inflation is always and everywhere a phenomena. when governments print money, which they are, it shows up in the value of the dollar bills worth less, so you don't need to have short term labor pressure. by the way, we had a very good labor markets, but they will get tight e and we're going to have inflation, it's just a question

of when. >> what do you do? what's the investment? do you want gold here? >> what you don't do is own bonds. bonds are wildly over priced right now, even if there's no inflation, but with the risk of inflation coming, it makes bonds doubly unattractive. you want to not own bonds here. there are some kinds of stocks that will do relatively well in the inflationary environment, things like oil stocks do well, i personally like fertilizer companies doing well as corn prices pick up, but it's what you don't do. it's you don't own bonds. >> so one final point here, nick. is your expectation for q2 gdp stronger because one was weak or weak weaker because of the data points today? >> we'll have a better one, knock on wood, than q1 that was negative. i'm worried about the back half of the year with numbers that have a 2 handle on them. maintaining low cost structures for great earnings in a

lackluster economy, but better for growth to have top line growth in the margins is what i'm focused on. >> guys, thanks a lot. good to talk to you, nick and charlie. see you later on. >> thank you. stumbling for general motors, this time with the top selling car in north america, phil has more on the phone. over to you. >> simon, we're talking about chevy cruze, the best selling car, in the stop sale mode now, means general motors told all dealers stop selling this car until we can get the parts to fix about 33,000 that have a faulty air bag. they are in the process of fifrging out which vehicles need to be repaired. they will go through the process, pull them off the lots, and fix them. they expect the stop sale order, by the way, lifted by the weekend. this will not have a huge impact on the bottom line, but it's bad news when you cannot sell the

top car by the dealer. it has an impact on your customer base. meanwhile, we talked with attorney ken feinberg, with his office, and he'll announce the gm victim compensation plan monday morning in washington, d.c. there's going to be a lot of attention focused on the dollar amount, those killed or hurt in recalled gm vehicles. what's more intriguing to people is the number of victims that, according to feinberg, because he's setting criteria for how many people were killed or hurt in the recalled models, keep in mind, general motors up until now said 13 deaths, may be more, but for now, gm says 13. this morning on "the today show" mary barra was asked about the number and possibility that the fatality rate could rise. >> i think people have misunderstood that 13 was when we first looked into this issue and looked at things that could be related to this defect.

the compensation of programs that we're doing, we want every single person who either lost a loved one or had a serious physical injury to be a part of the program because we want to do the right thing. >> and the estimate for many inside general motors is when you set up a program like this, usually 85 to 90% of those who could take advantage of the compensation program opt into the program. you have 10 to 15 % who say, no, i'll take you to court, and those who opt in, going to court is no longer an option. again, this program is going to be announced on monday, guys, and the estimate from a number of analysts is that when it's all said and done, it'll probably cost general motors anywhere from a billion to a billion and a half dollars in terms of the impact. guys, back to you. >> all right, phil, thank you for filling us in on that. the high court limited the presidential appointment power,

supreme court just ruling here that they are going to make temporary appointments to fill high level government jobs, the president's power to do so is limited. the court saying that president obama exceeded his authority invoking the constitutions provision on recessed appoinments to fill slots on the national labor relations board back in 2012. we'll continue to go through the verdicts on that, i want to keep you apprised from the supreme court in washington. the other top story following here this morning, gopro, pricing at the high end of the range, and kayla is at the nasdaq where the trade could come at any point, right? >> it could. high alert, mingling, drinking champaigne, blue confetti everywhere. more than two dozen go pros on hand with executives making sure to document every single moment, but the moment will come in just a half hour's time, and we expect to see that cross. that's the settling of the buy and the sell orders in the

stock, and the first indication where it could open is expected around 10:50 a.m. eastern time, the time selected by jpmorgan. it's a big day for nick woodman and tony bates. woodman boot strapped the company from the beginning, putting $30,000 of his money in. he had 50% of the company as of today's ipo. he'll have a third of the company, but when i asked why he didn't price higher, he wanted to leave money on the table to, quote, share the love with investors. it is a fast growing company. revenues up 87% year over year from 2012 to 2013, but there was a question about slowing revenues in the first quarter, revenues of 235 million in q 1, 2014 down 8% from a year earlier in this morning, becky in the squawk box team asked woodman,

what does that tell investers? here's what he said. >> that tells you that we gaffed a product launch in q4 of 2012 allowing customers to over eat a little, retailers, distribution channel got more invenn story than they should have so there's a ballooned qis 1, and q2 came down handlely. that was not intended or normal. that's a sign of a fast growing, maturing company. >> it's the mark of a company learning as it goes to figure out how to meet supply and demand orders for a product that's just skyrocketed in popularity over the last few years. there are some doubts as we've been talking about all morning about the company's shift to content to monetize its millions of subscribers to its youtube channel. the thousands of uploads that it gets from gopro users on a daily basis. we'll see what happens, but when i talked to investers, guys, about the company, and asked

about shift to content, they compare it to facebook pre-ipo. we saw that notation to facebook and whether it pivots to mobile, whether it can make revenues from mobile ads, and they say if you believe gopro can, it will be a similar bet. we'll see where it opens, but for now, back to you. >> thank you so much. in the meantime, a good day if you're a reit. >> carl, i bet you never got this news from the irs before. iron mountain like you said, up about 20% on the day so far after getting irs approval to convert into a real estate investment trust. as a result of the change, iron mountain ups the earnings per share guidance by 40% to a $1.52 a share. why the increase? reits do not pay income corporate tax as long as they distribute the vast majority of the income as dividends to shareholders. a slightly different measure of earning paid, but iron mot shares up 20 % on that bit of

news on this big day. back to you. >> a gift from the irs. dom thanks. the dow is down triple digits this morning. the ipo avalanche is here on the big board watching servicemaster, eating the cookies filled with crickets, and, also, the big ipo of the morning is gopro, awaiting the first trade as you heard. you don't want to miss coverage of both. we have the founder of swiss s cameras to talk about what gopro should not do. we'll be right back. for every hacker, crook and nuisance in the world. but systems policed by hp's cyber security team are constantly monitored for threats. outside and in. that's why hp reports and helps neutralize more intrusions than anyone... in the world. if hp security solutions can help keep the world's largest organizations safe, they can keep yours safe, too. make it matter.

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still awaiting gopro's first trade of the day, but in the meantime, remember flip camera? this is the founder on the flip. >> where gopro thrives in the area is the use case is different. we enable people to document themselves, right, turn the camera around on themselves, and it's just a subtle tweak, but it makes the difference in the world allowing go jp pro to be what it is today, and remember, gopro grew up in the era of the smart phone so the concern is the smart phone going to take us out? we play nicely with it. >> well, let's look through the

lens of one of the guys who brought you that popular invention, that's flip co-founder, also the chief product officer and well-versed in the digital landscape. flip no longer in production, shut down after being bought out by cisco in 2011. why is this different than flip? >> i think go pro is going after use case and different consumer. i think where we excelled in a new market, new innovation, starting with before flip, single use video camera, and then a shoot and share category, go pro continued with innovation and created a solution for a new market, and this market is so thirsty for innovation that every time there is a great innovation, new markets are created. i think that flip video follow by gopro and other companies innovating in the space are

going to continue to create great market due to technical innovation. >> where did flip go wrong? >> i don't think flip necessarily went wrong or gone wrong, but i think there's a question for cisco that, you know, the founder, the co-founder, you know, we were sad to be shut dun, basically, but i think -- >> wasn't that the basic idea, it was a camera, popular at one time, but it was a fad, and that's how gamgts. >> well, no, i don't think it was a fad, but the need to capture images in a unique way is still there. the cell phone dhapged the behavior of that and there's opportunities around cell phone. the cell phone has limitations, and the reason the gopro is successful because they overcome limitations creating a different device, and innovation is what makes it happen. >> what one that is robust and water proof and focuses back on

yourself. >> yes. that's an example of innovation due to form, factor, and the fact that you're not holding an $800 phone on your bike. >> i didn't mean to interrupt you. carry on. >> no, no, i think there's more room for innovation. that is either due to form factor or the technology. they are trying to find a way that images themselves are captured. that is a fundamental shift in what you do with images. there's room for innovation that create more new markets in the space. >> just as a footnote to you, you were sad when they shut flip down. how much did you make from the sale? didn't cisco buy it for $600 million? >> absolutely, absolutely, i'm the first to say they were within their right and it made sense from their unique perspective about the business. it made sense for them to enter the consumer business and made sense to exit the consumer business. >> how much, if you don't mind

me asking, but how much did you make from that? >> i will not comment on that. >> understood. you know, part of the story here with go you know pro is that it wants to be a media company, have channels and various media outlets. is that something where you see potential for a gadget company, a hardware company being able to monetize? is that the future of gopro. >> it's an interesting directionmedirection me . it's an audacious goal for the company, but the challenge remain, can they continue with the pace of innovation with the devices that capture food to feed the machine that monetizes that content? i think that that remains to be seen. i think that imaging has been stagnant from a technological standpoint, and companies are trying to change that, and that's where the challenge will be. >> is there not a case, though, in a social media sense, if they create the go-to platform for

people to share their action images of themselves, and it's almost like a form of one upmanship within the sport, how they divide it up, there's a social media momentum that reclassifies the company regardless of the instant montization? >> good question. the sharing element of videos in specific has been unaddressed in the market. we always expected google or apple or facebook to address that in a specific way that addresses the needs of consumers, and i think instead of it, we have something aim towards entertainment or social networking, not addressing all of the needs. maybe gopro can go that. it's poll. ive not seen that today. >> finally, on the camera side, now that gopro has seen success, why can't apple or samsung make a better gopro? >> eventually, it's pace of

innovation. you can copy somebody else's product, and by the time you do, you're a year behind. can they keep the pace of innovation in can they continue and leap beyond the current technology for imaging? i think that's where the barrier will be. phones, camcorders, all running into the same limitations, eventually, of optics, censors, and form factor. there's a need for innovation in the space, absolutely. >> thank you for your perspective. still awaiting the trade. the co-founder of flip. >> thank you very much. ignore yesterday's gdp number at your own risk. markets in the red this morning and an exclusive take on why you should take risks off the table, talking with barclay's chee economist, and we're awaiting gopro's first trade on the nasdaq. it's all coming upright he righn

cnbc.

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all right, keep your eye on gopro and gold. dom? >> watching prices after running up 6 % since the beginning of june, prices pull back by half a percent, and rbc wealth management told in a note this morning current rally prices seen as unsustainable because of things like decreased demand from exchange traded products and chinese buyers not fully participating, and speaking of china, the country's chief auditor uncovered about $15 billion of loans backed by falsified gold transactions so an interesting story there, certainly, gold is a focus today. back to you. >> dom, thank you very much, gdp jolted and trayed on, but what is the outlook for the second half of the year? essentially, they are telling you to get defensive.

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interesting because this is above the five-year average we watched, 81 billion cubic feet. some skeptical ahead of the report thinking we would be urn the 100 mark, and traders made a bet with me, but this is the last week we're going to see a triple digit build as temperatures get hotter and nat gas has more demand, boosts out there. again, watching the prices, 448 right now. back to you. >> lower on inventories, bed bath & beyond lower after a weak quarter, we have more on what is plaguing the retailer, a string of disappointments. >> exactly, the word is bed bath & beyond's first quarter issues not likely to rest soon. the home goods's retailer short on consensus on top and bottom line, reporting less than same store sales and disappoint guidance range in the fourth

quarter. competitors reported stronger quarters causing some to believe that bed bath and beyond has been giving up market share. management calling out free shipping as a drag on margins. that's not likely to go away soon. coupons in the negative shift contributing to the mar join contraction, went gross margin hit the lowest level this decade, and says the retailer lost market share for the third straight quarter believing bed bath and beyond will continue to lose out on other retailers, particularly the online competitors. if the company wants to fight, give up more margin, all lowering price targets on the shares as a result. now, in other retail news, michael's coming back to wall street with 27.8 million shared expected to price after the bell today. that's a market cap of $3.8 billion. more on what's expected for gopro, shares trading for more

than the first time in seven years friday, but on the nasdaq, those that followed michael's progress say it's a well-run business, by question how much growth it in the arts and crafts sector. this hit product, but michael's admits the trend is easing and it is a worry in the s 1. simon, back to you. >> is that your own rain bow loom? >> we bought it for the segment, but i learn quickly. >> thank you very much for that. barclays is telling investors to get defensive. the banking giants's quarterly global outlook just released is clear. the rising inflation in this country is a major risk, and it is not yet priced into market. here for a cnbc exclusive is deen macke, chief u.s. economist at barclays. welcome to the program. nice to see you. >> thank you for having me on.

>> are you saying deflation is a risk? >> the move higher is going to continue so i don't want to give the impression that we're going to search to 10 % inflation or something, but we think there are -- that there is going to be a steady move higher, going to move above the feds's target by year end. >> interesting. so what is the risk to market? the fact that inflation is rising or the fact that the feds will have to change its stance. >> we think that is it is the fed priced into the markets right now is too benign, that the fed will end up hiking rates around the middle of 2015, and that's not something the markets have priced in right now. there's a risk that the feds might have to go before that. as expectations shift, that we will see a sell off in the fixed income market. >> do you think that the federal reserve, janet yellen, is straight with people, then, when in the last kind of set piece

news conference and statement they didn't acknowledge rising inflation pressures initially, and, indeed, suggested the inflation is noise. out there, basically becoming hawkish. we get peripheral talk and hawkish fed, but front and center with yellen, it does not transpire. >> i don't want to question what are her believes. i think she believes that inflation is going to stay subdued, but in our view, though, we think there's more noise to come, that this is not a one-time fluke. we see a lot of reasons for core inflation to be rising this year. >> i like this outlook because it's a longer term view, dean. can we make up the growth lost in the first quarter in 2015 to get growth above 2% this year? >> we see 2.5% growth, leaving the euroowe well below, we see 1

1.6% growth as a whole, but we see below trend growth, not particularly booming growth or anything like that, but better than what we have been seeing. >> dean, cut to the chase on specifics here. people should go overweight oil in your view, correct? >> we do see risks that oil prices will move higher. we do think that the situation in the middle east is serious and that there are risks involved, and we think that the risks there are higher than they've been in a number of years. >> what about the rest of the equity market? how should people rotate within it if they accept what you are saying? >> well, we think that the -- that -- people should not necessarily be moving out of stocks, but we do think that the gains are likely to be somewhat more subdued given that on the fixed mechanic side, we are like hig to be seeing rates rise. >> should people be in fixed income? what do you do there? >> tend to not be long fissioned

income safe picks such as u.s. tra treasuries. we think they are moving significantly higher as we go through the coming quarters, and that's not where we would be. >> dean, talking about modest but above trend growth in the back half and beyond, how does that manifest itself in jobs and housing? what are reasonable expectations going to be for the coming quarters and months? >> we think that we will continue to see job growth of roughly 200,000 per month, more than enough to keep pushing the unemployment rate down. the view over the last few years is the unemployment rate falls faster than believed. e we still think that's the case, below 6% by the end of this year and falling next year. on the housing front, we think we still are in a gradual housing recovery. we think it's rising, but, again, there, not a booming

recovery as likely given the tight credit conditions and only modest moves in housing. >> saying the markets are resilient, higher rates as a risk in the country, the jury is out on what that means for merging markets assets. >> we saw growth in general picking up in the sell half of the year, and that should be good for emerging markets, it depends on particular market what our recommendations are, but we do think that the growth environment will be a dominant force there. >> finally, then, leaving everybody with one other thought that's important to professional investors watching. you suggest people should exit the long standing overweight, sovereign debt, and enter as an underweight, foreign allocation? >> we think it is likely to decline in value against the

major currencies. we think the ecb will remain very easy and relative to other central banks such as the fed, such as the bank of eng land. the ecb will be following an easier trajectory. >> is there qe in europe? >> it's not our baseline case. ? right. >> we do not rule it out if things are weaker than we expect. >> thank you for sparing the time, barclay's chief u.s. economist. thank you. when we come back, gopro, the maker of cameras that let you take video like this, debuts of the nasdaq today pricing at the high end of the range, an hour into trade, awaiting the first trade. we'll talk to a go pro competitor when we come back.

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network, the world brought to you by you type of content captured by our passionate customers around the world and shared on a gopro-like platform distributed across a series of gopro channels. we want them to consume the channel. it's great for business, but it's also just fabulous to see what the world is up to. >> gopro splashing with the nasdaq ipo today, but it's not alone in terms of players in the action camera market place. the market which saw sales jump 37% last year. joining us now is one such competitor, the ceo of ion cameras, thank you for joining us. we're learning about the action camera market. gopro has the 37% of the market share, what numbers do you have? >> we see ourselves, the market place in the fourth quarter of the year, clearly, we've been in

the united states for less than a year now, but we launched product in japan as image, and we see 10% in the fourth quarter this year. >> the biggest distinction, comparable in price, gopro 400, and you are 350? >> yes. >> what about the features? what is different? >> when you look at our product, we don't need an outer casing for it to be water proof. the ease of use, one-click capture. the connectivity is there. i've been involved in designing cameras for over 15 years. for me, it's developing a product out there at the cutting edge of the product. >> how do you plan to take some of their market share? >> great question, asked all the time, how do we take a piece of the business? when i kicked off the sports camera business, for me, it was not about the action, the world of action sports. the business is much greater

than action sports. take mainstream sports, for example, we are going to announce we have the official camera to major league baseball, for example, we have a business. when you look at this as our eye on the game, this is the product that addresses that constituent. inside, you know, less than two years, we've become the most comprehensive when it comes to product-wise, and that's how we do it. >> that's not how he's selling the ipo, not selling it on the product, but on the idea that there are media company to share videos, and he has twice the evaluation as a result of being able to persuade people that's the story. that's not the story you're telling? >> not at all. to me, you know, people ask what's the difference? gopro wants to be media company, they have done fantastically well. nick needs to be applauded. we are an image company, addressing the constituent. at the end of the day, you are endemic, give them the right product. >> do you think -- sorry, down it's worth $24 a share, which is

what it's priced at? >> i struggle with that because i'm traditionally from the consumer electronics business and understand that, but i struggle -- >> a media evaluation. >> right. if they execute on the principles of being a media company, look, there's something there, but, you know, to be a media company, there's big competitors, you know, i'm not their competitor in media. there are a lot. >> i can't imagine you're happy to just stay in hardware, right? i mean, you know probably better than anybody here the dangers of standing still in hardware, right? this is kmodtized as we speak. >> no question. consumers are looking for devices and solutions. this year, we acquired a company all about sports analytics and coaches and platform. take that, coupled with our eye on the game product and franchise like baseball, you know, there's more people that are interested in, you know, this child being a pro in baseball than are there people

playing action sports. the market is bigger. >> as we await the first trade, i'm sure you are as well. is this going to be a litmus test for you as your future plans? going public? >> no question. i mean, we'll watch it carefully, you know, for us, you know, we want them to succeed. we need them to be out there, but what's critical also is that retailers have a responsibility to offer choice, and so that's what it's about. we're going from a year ago we didn't have a few hundred store fronts in the country. sunday, we've got 6,000 store fronts as as much footage as walmart. what's key is the stock price -- it's a check and balance for all of us. >> you want to see it do well. >> absolutely. >> thank you for coming in and sharing your perspective. taking you to d.c., hampson pearson has breaking news. hampton? >> reporter: in a 5-4 decision, the u.s. supreme court

substantially upheld the power of the president to make recessed appointments while the senate is not in session, however, in this particular case, which involved a challenge to nlrb appointments made in a senate recess, the court said those particular appointments to the nlrb were unconstitutional. essentially because during that time of controversy, the senate was holding pro forma sessions every three days, specifically quoting now from the opinion, justice breyer speaking for the majority, the recess appointment clause does not give the president constitutional authority to make the appointment at here an issue, however, to the broader question of the power of the presidency and executive branch to make appointments 5-4, the court says, quote, we hold that the constitution empowers the president to fill any existing vacancy in any recess in session or intrasession of sufficient length. what is of sufficient length

mean? in various statement from the bench while the opinion was delivered, the court talked about ten day recesses at a minimum and beyond, so, again, overall, the court upholding the power of this president and future presidents to make recess appointments, but perhaps beginning to put some speed bump restrictions as far as intrasession and length of recess in filling vacancies going forward. back to you. >> great way to describe it. hampton pearson, thank you very much, outside the supreme court. meantime, ipo watch and gopro cameras are every why at the headquarters. they are at the high end of the range, and we are still waiting for the first trade, see how it opens next on cnbc. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved

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but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. all right. gopro just opening at the nasdaq for trading. it is up 22%, 21%. a sharply higher pop at the open for gopro which priced at 24. trading just below $30 a share. >> kayla was saying last night a heated debate given that it was 20 times oversubscribed. whether or not they should raise the price above 24 bucks a share, the view from the founders was that he should leave something on the table for everybody. a is the result at the open. 20 times oversubscribed. >> got to be happy with the bankers on that. >> david menlo, we talked to him just before the market opened.

he suggested 3 to 5-point pop. pretty good on david. >> yeah. >> exactly what we got. although he labor dayed that 7 to 8 probably wouldn't take it out of a reasonable valuation. he's a big fan of the name. not to mention the dominance of the brand and the category. but the degree to which they exercised, in his view, some discipline in pricing. they could have done this a lot higher but kept it at 24 given the level of oversubscription. kayla, the nasdaq is watching this, too. your thoughts? >> guys just said it. discipline is the name of the game here. anythi nick woodman could have taken morme money on the table and priced it higher because ultimately a lot of this is going into his pocket. a lot is go into employees' pockets, investors' pockets. as soon as it opened there were cheers erupting from the floor. you can imagine a lot of pictures and videos being taken with those infamous gopros.

dozens of them here at the nasdaq. i know we have them at headquarters. we have them at the nyse as well. and there's nick woodman, the founder and ceo who is giving a message to his troops as they're all cheering and celebrating here at the nasdaq, guys. >> i mean, just something, kayla, here on the valuation. multibillion dollar company that makes cameras yet it is not being valued as a camera company if you look at the competition or consumer products, it's being valued as a walt disney in terms of price to sales. >> yeah, but i think people, when we this as one and they saw that it was making nearly a billion dollars in revenue and it's only being valued at roughly $3 billion and change with the pop in the open here, that is discipline, that is the fact that, remember, when this s1 was filed it was right before we saw a big correction in the market for tech companies for some of these consumers hardware companies. so i think there was a lot of

sense among the bankers that they needed to give wall street and give investors something to work with that was tangible, that made sense. and that was pretty much indisputable in the sense of valuation. >> we're just looking at the pictures of nick woodman below you there on the floor of the nasdaq marketsite. his interview today on "squawk box" at 8:30, it went on for a long time. it was a phenomenal interview. to what extent in the way that he explained what they're about, they've realized that people are more interested in taking images of themselves, doing exciting things, than they are of taking i'm manls of other people. 6,000 up loads to the site on a daily basis. he tells such a great story so well, kayla. i wonder the extent to which the valuation and the opening praise is actually based on his performance. >> well, he is the brains behind this company, no doubt. and part of that interview, when becky asked him who his idol was in the industry he cited the

founder of red bull because it was a company borne out of one person's creativity. he was basically saying that was the vision that he had for gopro, that was something that was born from an idea, a camera that strapped on to a wrist bracelet for him when he went surfing. we saw a company that, yes, it does make hardware but it's evolved over the last 12 years. the sound bite that you played right before the founder of flip cam was one of the most interesting things he's said. we've grown up in the smartphone era and figured how to make the product complimentary. it's not just the solution of being able to watch the user watch yourself engaging in some of these activities but being able to seamlessly edit, seamlessly upload and make them really brilliant high def, high, are es images and videos. that's something that the company has as the hallmark. >> i know you've read the s1 probably more carefully than all of us. they don't seem to be as highly lef ranned as they were coming

to market. is that true? >> that is true. but then again, why would they need to be. we've seen a lot of companies take out debt, take out credit facilities. we're talking in the 11:00 hour to michael marks, one of the board members, the very first venture capital round was an $88 million round. that is not what we call seed funding. that is quite a bit of funding. they had $500 million in revenue when that happened. this is a company that's been making money from the get-go. it's never had any need to leverage itself up. >> kayla, i know we will have a lot more from you in "squawk alley." gopro is 26% higher just in trading here at the nasdaq. he's go to chicago and rick santelli with the "santelli exchange." >> thank you, good morning. i'd like to welcome representative lamar smith from the great state of texas. thank you for taking the time this morning. >> happy to be with you.

>> all right. you are the chairman of the science base and technology committee. i guess what is the simple definition of science? i know that economics is not science because if you ask five economists the same question you will probably get five different answers. why is that -- how is that different from science, in your opinion, congressman? >> well, of course, science is a provable theory that's subjected to peer review and science is not just science fiction and it's also not a political agenda which is what we're oftentimes seeing with this administration. give you a quick example. the environmental protection agency is using what i call secret science data to justify regulations that they are not making public. the american people paid for this data. they have a right to see it. we should have this data peer reviewed by science experts and not just trust the federal government to tell us what they have. >> how can the epa or your

committee or anybody on the other side of the potomac, remember, i'm in the midwest, how can they rationalize or allow the epa to hide science, hide the science that could have trillions of dollars of costs to the global economy regarding regulating things like co2 which, to some, is just plant food. >> you are right. the epa is issuing regulations that are costing individuals and businesses tens of billions of dollars. maybe $100 billion, and yet they're not reviewing what data they're using. they come up with reports but they're handpicking the people to write those reports. so just seeing reports is not enough. we need to see the data. by the way, the president's own science adviser and jim mccart mccarthy, the director of the epa herself testified before the congress, the american people should see that data. but they still refuse to hand it over. >> now, basically, if we're keeping this simple, house of representatives holds the purse strings. the, pa has to get funded.

can't you strangle funds until you get the required answers and information sharing that the epa should deal with? >> i would love to threaten the funding but unfortunately that requires agreement not only by the house but also by the senate and you can guess the odds of a democratic controlled senate allowing us to defund part of the epa. >> congressman, you're telling me that politics in the senate, in harry reed's house, has gottgo gotten so perverse, that science, theory of einstein, the more the merrier, proving quantitative is that they're not going to share and the senate will go along with that? that's not ba nnana republic stuff. >> i certainly don't disagree the senate is the problem. they refuse to try to help us out. in fact, the administration has kind of circled the wagons right now. >> congressman, we're out of time because of gopro.

i want to have you back. really, your committee has got to get busier on this. these answers are unacceptable. >> good to be with you. >> back to the "squawk on the street" crew. >> rick, thank you so much. rick santelli. good morning. it is 8:00 a.m. gopro headquarters in san mateo, cal. 11:00 a.m. in new york city where gopro is open for trade on the nasdaq. up 30%. "squawk alley" is live. ft. ♪ ♪ i mean, how could you not open with j. giles on a day like