the day ceos are like us, if they do a deal and the stock goes up, they like the deal, more deals are coming. we're going to have a very busy m&a. >> good to see you. come back soon. that does it for us today. join us tomorrow, right now it's time for "squawk on the street." the boys are back in town as we welcome jim back from vacation. great to have you back. >> thank you, buddy. good morning, welcome to "squawk on the street." i'm carl quintanilla with cramer, david faber at new york stock exchange. close out june, second quarter, the first half of 2014 today. what a year so far. s&p up 6%. we'll talk to jim about the second half play book later on this morning. ten years right around 2.52. busy week for data. chicago pmi, don't forget the jobs number thursday, because of the fourth of july thursday. eurozone core inflation, .8.

the big month-to-month hand-off in the markets. major indices looking to tack on another month of games for june. july opens with data intensive week, ending with jobs one day early. >> ken feinberg set to announce details of the general motors compensation plan for crash victims. we'll bring it to you live. >> outrageous, facebook conducted a large-scale psychological experiment on more than 500,000 users. >> and the u.s. expected to unveil a near $9 billion fine for francis' bnp paribas. >> futures pointing to a lower open nasdaq on pace for two months of gains. s&p and dow shoot for five months of consecutive gains and data over the next few days. chicago pmi, pending homes also out today. auto sales, june jobs coming later in the week, adp challenger. a good time as always to take

stock of what the first six months have meant. not good news for actively managed funds, as "the journal" points out today. >> we're in this business where there's a deal that happened this morning that really does in many ways capture what's going on. ppg, a buy comex, paint company. the ceo who is terrific, at ppg, came on "mad money," what happened if you buy comex. he said we're always open to m&a. no one thought it was not going to happen after sherwin-williams, not a surprise. but the stock goes up big. mannkind, see that stock going up on the tape this morning. >> yep. >> everybody knew the fda would approve this insulin dispensary. when it happens, it goes up, where we are the good news is not correctly discounted because people, i think too skeptical. i come back, you know, charged up, very engaged, and i feel -- >> i'm happy to hear that.

>> more engaged than ever. >> than ever, yes. >> than ever. >> that's fire. >> i feel what's happened the skeptics never stop. all bad -- all news is interpreted as negatively. i come out, watch the headlines when i'm away, it's like central banks to blame for big rally. blame? blame? i mean, why is there blame? so when i come back and say, as long as we get deals, as long as we still have a lot of stocks selling at 17, 18, as long as interest rates stay low and obviously we're in a situation where our rates are low because of worldwide rates, enjoy yourself. enjoy yourself. i had to go -- i had to go to buddapes budapest, vienna, prague, to enjoy myself. i'm saying i'm on wall street and i'm going to enjoy mois and revel in the. pgs, in the gw pharmas in the mannkinds and say good news is not factored into the market. >> all right. enjoy yourself. it's later than you think.

>> thanks a lot. >> sure. there was a song from a woody allen movie. >> better late than ever there on the other hand -- >> i'm not saying suspend skepticism. i am saying that the fact that good news never seems to get in the stock price is different. that's very 1990s. >> then this morning what do you make of bis, bank of international settlements over the weekend arguing that the stock markets around the world are not reflective of what's happening in real economy. >> rationally detached from underlying economic conditions. >> gdp was down, companies managed to make money. did they make money with buy-backs, by firing people? yes. can you look through that and decide that you should sell stocks? i slard tihard time doing that i see companies doing self-help, the broader time for things like sandisic, relational takes a

stake and did what they did to timkin which i have on "mad money." we see if they -- if it's sustainable. stock reacted positively. >> self-happen transcended gdp. do i think that europe with their rates where they are, is that artificial? i've got to tell you, coming back from europe, they're pretty depressed. i think our country has certain areas that are literally, because of the internet, technology, are not inflated. inflation, which everyone seems to fear, i think is weather-related. i like yellen. when she says noisy, i agree with her. what i'm saying is, stop saying that it's the fed's fault that the market goes up and say the self-help is working. >> before we move on, market dynamics, it's traditionally a slow time of the year, volume is weak, can move stocks up and down. another story today that buy-backs and basically some individual demand are the only demand for stocks. you don't have a lot of

institutional demand for stocks at all. without that you don't have the underpinning for any buying in the stock market. >> companies are buying and shrinking the float. until ali baba comes we get a new deluge until gopro, which is not a deluge of stock, i say if you pick a stock where management, once stock goes higher they see the play book, go buy comex, buy another company, that actually causes an inversion, if you don't do it, if you don't self-help, stock doesn't go higher. individual stocks are going higher because management says i've got the balance sheet and interest rates to do something. i'm going to do it. but cbs last week, i saw that one, i was watchi this aereo thing, did anyone think that the supreme court was going to say yes to that? >> yes, apparently some people believed that. >> some, yes. >> if you look at the supreme court as it is, then you would

recognize that they're pro-corporate rights. you know, i just think that people -- people think ever end of the government is anti-corporation. airlines, phenomenal story for the first half, that was obama blessing. the justice department blessing higher air fares. the government's not -- the government's doing a lot of stuff that doesn't help the economy, but does help individual companies. larger companies do better in the environment when smart companies are -- >> let's move on to an individual company. general motors, attorney ken feinberg will announce details of the compensation plan for crash victims 10:00 a.m. eastern. federal prosecutors and congressional investigators are quick to say, however, that gm could still face a number of criminal probes related to those crashes. ken feinberg is going to join us live first on cnbc, right after the announcement. of course, mr. feinberg has carved out an expertise in this

arcane area of amassing funds to then be distributed to victims, whether it's bp or boston marathon victims. >> the political dance that goes with that. >> yes. >> no less a skill, right? it's not just about tables. >> not at all. the idea and the times today has a long article that still a lot more to come and the use of the word "criminal" in the southern district, the u.s. attorney, getting involved. does this just continue this overhang on gm despite what many people saw today as perhaps the day where daylight starts to break out? >> feinberg, when he got involved with bp changed things a bit. that's when the bottom was put in. you have to churn through all of this. the government was more involved than realized. breaking news. devon sells $2.3 billion in assets to lyn energy. devon trying to change its balance sheet. look how it's done to be able to make it so it's stronger, move into shale areas. two companies helping themselves.

i don't know whether linn will get the right message. look where devon is selling. look at oil and gas, continue positive. i look at gm, i see the stock bottomed at 34. i'm stuck with stocks that react positively to news that we may even in turn think is not positive and then react wildly positive to anything involving takeover, acquisition, taking action. ands that ha to do, to me, some degree of lethargy on the part of individual managers. they feel like, let's buy etfs, the s&p. it's not etfs or s&p. 9.3 million shares of ny melon. does pelts come and start talking about -- i'm saying, this is activive? >> activism, self-help, m&a, all of the things in the toolbox we're seeing a great deal of, tax inversions. we've hit all of our themes.

>> but this is the era where companies just don't like -- >> all we need now is consumer spending money and housing -- >> that, i can't give you. that, i can't give you. another one, micron, focus list credit suisse, it was eight bucks a year and a half. micron bought this japanese business which then consolida d consolidated, d ran prices have gone up when historically gone down. allergan maybe undervalued. >> an update on r&d prospects. >> allergan's one the best performing stocks of the first half, it's undervalued? >> they want you to set the floor higher in terms where the value is based on a stronger pipeline now with the latest release. by the way 10:30 a.m., conference call on that. >> when allergan was at 80

bucks, the ceo came on "mad money" and said everybody's forgetting one drug for glaucoma. no one's thinking about what we can do. there was a patent issue they had a problem with. he came on the show, a quiet, mild-mannered man, he said my stock is too cheap. you know what? it's doubled. maybe it was too cheap. >> well, maybe valeant recognized that. >> hand it to them, they obviously didn't -- they picked a company that had r&d. >> more to go in that long-running battle. >> look what's happened since 9:00, sense i got back from prague. >> true. >> it's not me. i traced this thing down. this happened on thursday when i was in budapest. >> i like the way you say budapest. >> they tell you to do that. >> budapest. >> all right. >> they got this drier beer, someone had a note saying beer isn't doing well. look at beer stocks since they decided to let them consolidate.

try getting a corona in prague. forget about it. it's all pilsner. >> finally, facebook users are angry following news the social network conducted a big psychological experiment on hundreds of thousands of users manipulating content trying to gauge emotional response. some shown positive posts, others shown negative ones. the researcher has apologized. but talking 500,000 people. basically, victim to the algorithms that filter out what you see and don't see. >> my charitable trust owns facebook. you never want to see this stuff but at the same time, facebook's a monopoly in yourself, it's what you use to find out about yourself and tell people. people say, that was unfortunate but glad it's over. i don't think someone's going to say, facebook spied, i'm going to sell facebook. >> no, but i think it goes to this larger concern about privacy that we're only going to hear more and more about as the

tools for invading your privacy, if you believe you have in, only accelerate. look what's going on in europe. look how many people are asking google to say move my search results. >> i will tell you, in the end, there is no expectation of privacy. there's never been one really in this country. >> no one's forcing you to open an account. >> always think you send an e-mail it's on the front pages. >> maybe the supreme court did rule 9-0 your cell phone is not allowed to be searched without a warrant than goes to something different. >> 4th amendment rights preserved. at same time, expectation that there could be a -- this glaxo sex tape, the bribery. i think that you should expect that you could be exposed. it's not like nsa. it's not like anyone said what the nsa was doing was the enemy's lisp i remember the

nixon's enemy lisp one of my partners was on the list and it was shocking weep had an irs enemies list, nsa enemies list, a lot of bad guys out there it's like jack bauer, listen, i'll do whatever's necessary. >> shoot him in the knee. >> throw him out the window, whatever works. >> good to have you back. >> oh, man. >> france's biggest bank could be facing a record fine. 11:00 a.m. eastern, roger mcname. what's on his mind when it comes to technology. premarket on the final day of the first half of the year. more from "squawk on the street" in a minute.

♪ bnp paribas is potentially facing record breaking $8.9 billion fine from u.s. authorities over alleged u.s. sanction violation. the justice department expected to announce the fine sometime most likely this morning. we shall see. of course we've been waiting for this for quite some time. unknown, i believe, whether this will include some sort of temporary ban on some of their dollar clearing business. it's never been an easy time --

well, it has not been an easy time to be a financial institution it would seem, over the last couple of years, when it comes to the regulatory side of things. >> what i'm amazed here is that there is a process that you get when you get the call from the justice department. and that is recordkeeping, freeze. whatever you're doing, stop it. in terms of what the justice department doesn't like. sit down with your lawyers, go over compliance, decide what you're doing wrong before you even get involved in some sort of plea. they didn't do this. they just kept doing what the justice department didn't like. i mean, that's extraordinary. just don't do that. everyone i've ever met in the trial, the securities regulation knows, that when the government calls you and says, listen, we're investigating you, you stop whatever the heck you're doing or else -- i'm surprised that the government doesn't indictment everybody, just doesn't indictment individuals because whoever is doing this is doing it directly while being

investigated -- imagine all of the people we know that have been investigated, all of the companies and continue. okay, here, i know this is financial versus life, but gm, let's say they say, let's keep producing these ignition things, what the heck? that is -- or bp, saying you know what? what the heck? you know, little oil in the gulf, i mean, just don't tell anybody. >> right. >> it is, if you're the justice department like this, are you kidding me? you kept doing this? have you no respect for the u.s.? none? >> whether it's that or barclays dark pools or b of a's recalculations, anyone scared of buying a bank stock. >> i said, you know what, this group, unless you're in a regional bank -- or. >> or wells fargo, up 16.5% this year. >> completely differentiated itself from the group. >> john stumf said we're good at mortgages and redoing mortgages.

>> cross-selling, too getting somebody a mortgage and getting them to be in wells fargo asset management or personal wealth management. >> when wells fargo buys the loan, they follow up. they are like -- they are like good salespeople. everybody. i sat down with john, what's your business, it's just about being a business person. it's not about trying to make extra money somewhere. you know? wells is -- wells is good. one that u.s. bank, by the way, wouldn't of my charitable trust funds, you'll find they're similarly profiled. both warren buffett banks. don't you think buffett isolated banks that know what to do? >> good point. >> right. >> we'll get cramer's mad dash, count down to the opening bell. one more look at the premarket. "squawk on the street" back in a few.

♪ ♪ >> seven minutes until the opening bell on monday. "mad dash." it's been a while. >> a summer of ali baba guessing. guessing the impact on yahoo!. team monster goes hold buy. piper saying that the alibaba valuation is not priced in. david this is two parts. one you've got, one i've got. my part is, will marissa mayer be a good steward of the capital? how much capital will there be? >> we don't know specifically,

although of course it's 22.6% of the company, fully diluted that yahoo! owns. they've moved around a bit but we can assume they'll sell 10% of the stake, if not more in alibaba. figure somewhere in there. you fax tax effect it. they could keep the -- >> is it over there? >> i don't know. i don't know. >> what's interesting, david new york one's talking about what she's done. >> that's the question. >> you'll have a lot of this. we're entering july. road show's going to begin towards end of july. probably going to get priced. guess on the 8th of august. >> as the road show goes on. >> also get another quarter, most likely from alibi bob ba. that being the quarter ending today. >> that was -- a slowdown in the rate of growth last time. >> they say, maybe it was because that fourth quarter took from both the third quarter and the first quarter in terms of advertising. >> my advice, be long yahoo! >> yeah?

>> into the guessing game, be long. >> i like that. opening bell coming up two minutes from now. "squawk on the street," coming right back at you. [ male announcer ] what if a small company

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you're watching cnbc's "squawk on the street" monday, live from the financial capital of the world. opening bell in about two minutes, as you probably know, holiday shortened week. closing out month, quarter, first half of the year. want to guess what the s&p winners and losers are year-to-date? >> we've got a couple of companies that have been taken over. >> year-to-date on s&p, best, new field and neighbors. worst, coach, whole foods, staples and bed bath & beyond. >> these are companies that are either impacted by the internet or have a strategy that has been left behind. >> well, bed bath & beyond, we've talked about a lot here. the report last week, not a good quarter. >> no. >> the stock suffered significantly. >> i mean, i'm coming around to the idea that amazon is hurting them. executing poorly. coach is executing poorly. the focus on the good one, oil and gas, newfield has done

remarkable job. these companies, look at this linn, i don't know what's going to happen with linn because it's controversial, big short position. but companies had asset, you see all over, look at the restructuring with freeport, anything oil and gas, nabors a terrible stock, onshore driller. guess what? on shore's drilling as hot as it gets. they all make sense. >> you mentioned amazon. if anyone's missed "amazon risi rising." tonight a nice reaft-air. >> those of us in prague get a chance. >> i expect your full review in an e-mail form. >> absolutely. >> good and bad. >> i'll do a 4:30 e-mail. >> notes. >> notes. >> congratulations. >> thank you. >> very nice. a lot of work involved with those. >> right. many, many people as you well know. >> a look at opening bell here. s&p at the top of the screen as

we finish out the first half. down here at the big board, new york city rescue mission, raising awareness for the city's homeless. nasdaq, water keeper, protecting waterways, celebrating its 15 24 anniversary. >> i'd love your take more on what gopro means, pricing at 24, high end of the range, closing the week at 35.76. >> so glad you asked me about this because one of the things that i've learned about gopro is every day there's some new way to be able to make it work for you. i mean, honestly, say i was about to have -- about to have -- you little kids -- you know what? gopro's a terrific way to see their life through their eyes. when you -- gopro -- i have seen gopro in action many, many different times, whether it be some of the olympic athletes who like it so much or people say, it's still pictures. this is like a kodak moment,

when kodak was a great growth stock. is it overvalued? yes. >> i'm not sure you want to use kodak. >> it had a good run. >> had a good run. >> a maybe i'm not that wrong. right now it's in a sweet spot where people who have it love it. therefore they buy the stock. how often have we seen that situation. >> all true. but to the larger point here, if they stay as a player in this, i would almost call it commodity it's better. it's not xhom adverticommoditiz. trying to appear ace content company. i get that. sustain multiple. otherwise consumer electronics company, come on, you pay that multiple? >> might have a twitter. >> sony, look at that. >> wow. absolutely. there's a twitter effect where people just say, hey, listen, i kind of use it, i really like it, and that does in this

market, there is a retail element that until they're shaken out really does -- i was trying to put numbers together to make sense where the stock is. and you can't. >> so you can't. >> you can't. >> but you get it. you get it but you can't. >> i get it because i see this thing being used a million different ways. i remember, you know, a year and a half ago, went to a sporting good store, they're like i don't know. i went to best buy to get a new gopro -- >> you did? i got a gopro and returned it immediate. >> i why? >> what was i going to do with it? >> serious. >> strap it on to your kid's head. >> i'm dead serious. >> i have a $500 credit. >> put it on a surfboard. >> great. >> that's a good sport. >> some of the winners today -- >> stick it on your kid's head. >> winners, micron, we mentioned micron yesterday, analysts beginning to have doubts. today, samsung is going to raise prizing in july, inventory

fears. >> try getting -- look, i've been -- i remember the 94 cycle where suddenly they added new capacity. you suddenly went from equilibrium to oversupply and there's just -- nobody building foundries. that's all you need to know. and they also managed to diversify in a flash. look at sandisk. micron is getting a multiple. how many people told me when i was pro-micron in single digits, a disaster, remember 1994? yeah, i remember '94 but remember there used to be 12 companies involved in the industry and now there are three. we have a the of ollie gigopoly pricing. there's three companies, three companies tend not to compete, jut like when you fly, you fly to europe, listen i want to fly to prague.

fly check air or dealt. you realize check is delta. >> empty seats? >> not a single empty seat. >> four different flights, not one single empty seat. >> only empty seat, i flew business class from budapest to prague and business class means no one gets to sit next to you. man i had a cheese and balogna that was as fresh as the day they wrapped it, a couple days ago. that's my first class. >> one airline to watch, ual, did you see the united flight from chicago to orange county where the slide deployed on en route. cruising -- >> negative. >> had to go down 20,000 feet in a hurry. not affecting the stock. >> i've been in a crash landing. actually never talked about. and you know, they foam the runway. i want to say, i know this is -- this is a boeing, when we were

hit by lightning a second plane in that boeing, boeing has two planes, i hope you're listening, there's a plane and when the plane stops working they've got another plane. eight seconds between the first plane and the second plane going on. boy, blad glad to be flying boeing. >> look at ppg industries now that it's open for trading. stock up 3.5%, as we've said a number of times and you've been making the point. m&a one of the driving forces for those who believe that the market is going to grind higher. >> right. >> of course as we've said so often, this is again sort of a reflection of confidence and helps other ceos considering a deal, say, yeah, i'm willing to take the chance. shareholders more often than not responding positively to those choosing to do m&a to deploy capital. >> right. >> and part is incredibly cheap borrowing rate, should it be route they use to raise the

funds. >> originally a sherwin-williams deal. worked closely with comex and the commission in an effort to secure approval, going to the conference call, when the deal fell through, the deal walked away, sher rin williams had to walk way because of problems in antitrust department in mexico. they got 360 u.s. stores as a result. this is a world cup play. >> excuse me? >> 3600 stores in all countries doing well with the world cup. this is central america and south america play. they get 3600 stores, dominate the western hemisphere in paint. makes sense. i hope they can close the deal, ppg. >> interesting. dollar general, last week, ceo's going to step down in 2015. it's the biggest s&p loser today. this idea maybe that icahn's not going to get his way and have it put up for sale. >> family dollar. >> sorry. right. >> icahn is at family dollar but the idea's been there, the consolidation, if you have ceo

change at dollar general what does it mean? some argue it's positive. but family dollar doesn't have a coo. >> right. >> well, we watched the stock, also down a believe on friday when we get the news. >> look, dollar general's a great growth company. it's a great growth company. in that area of the economy, unfortunately, is a boom. it's a boom. dollar general because that's -- two economies in this country. we know that it's the worst at times for a lot of people and they shop at dollar general which is a very nice store. you've been to your dollar general lately. >> i have not. >> he's returning stuff to best buy. that's the shopping he's doing. >> did you say, listen, it wasn't on sale? >> i have a gift card, don't know what to use it for. >> gopro next time. >> really? >> i'm not giving to you gopro, maybe i'll sell it to you above the rate. >> i'm taking surfing lessons. >> not a good idea.

>> windsurfing. >> still not a good idea. >> you roll on that, we'll play it. >> you know how old you are? >> i think young. i think young. >> back hurts just thinking about it. >> dow's down 37. let's get to bob pisani on monday. >> good morning, guys. jimmy, good to have you back. trps transport great morning up 19. materials doing well. technology stocks doing well. talking over the weekend with traders about 2014 and so far, it's shocking. everything's rallied. noticed? look at the board. gold's up 9%, as everybody's worried about inflation. some people are. sarp s&p 500 up 6%. msci world index up 4%. commodity etf, dbc up 4%. total bond market up over 2%. treasuries rallying even more than than everything has rallied in the first half of the year.

for stocks, the reason we're up, all moves have occurred in the last five or six weeks. and that's because of the fabulous rotation story i've been telling you about the last several weeks. we had a great start with technology stocks. march and april, biotech, new tech stocks hit. techs fell down and may and june, high yield stocks rallied, utilities came back. in june, energy stocks and financial stocks rallied. the great rotation has had a huge impact on the market. the big of the surprise, i did an informal poll over the weekend, far and away, ten-year treasury 2.5%. utilities leading sector, leadership in there because of the low interest in the ten-year. q2 volume and volatility drop-off. in may nobody thought it would happen. that dropped off in the second

quarter. we want to talk about the major sectors so far year-to-date. utilities up 16%. energy, health care, tech. look at consumer discretionary, we can't get real earnings the builders slowed down. cnbc's 25th anniversary, talking about the future of trading, traderta tradertalk.cnbc.com. avatars, 24-hour trading and ways to trade individual stocks, many types of stocks. trader talk. >> 24 hours? doing overnights. >> i'm ready for it. >> thank you. >> let's get over to the bond pits with rick santelli in chicago. >> good morning. carl. well, if we look towards eu eurozo eurozone, they had blended inflation data.

up .9, more than the last week, it was up .8. look at our continue-year, we can see we're unchanged on the one-day. two-day, range is picked out already in the holiday shortened week. there is a lot of activity, covering a small amount of ground. remember s&ps up 6%. the ten-year's up 6.5% on total returns, still winning 30-year as of friday's close up 14% total return. if we look at intraday bund, they've been dropping close to 1.20. 13-month low yield if you open up the chart. foreign exchange, dollar isn't king these days anymore. euro at good levels. dollar index it's under 80. settle settled under 80 last year. >> phil lebeau's interview with ken feinberg who will announce

details of the gm compensation fund. dow's down 30 points. "squawk on the street" coming right back. ♪ ♪ in india we have 400 million people who don't have electricity and i just figured that it's time i do something about it. what we're doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when it's needed by the consumer. a smarter energy system is made with the ibm cloud.

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welcome back to "squawk on the street." breaking news. june, chicago purchasing managers survey, drops to 62.6 from 65.5 read last month, represented the best level of march 2011. 62.6 fits in right below april's 63.0 and march's 55.9. we continue to monitor anything that has the word "survey," some of the harder data points to get better gps on the u.s. economy. carl, back to you. >> thank you. gm's compensation plan for victims revealed later this

morning. phil lebeau joins us from washington. hi, phil. >> carl, here at the national press club where ken feinberg, attorney retained by general motors to set up victim compensation program will outline what that program will include. here's some key points that people are going to be focused on when he announces this program. first, there's no cap in terms of the monetary awards that he will decide upon though we're expecting him to give us some guidelines. in other words, per fatality, x million dollars and whether or not he awards that amount of money that will be his discretion. also, general motors in setting this up expects 90% of the victims' families to opt in for awards, though we should tell you that in talking with some attorneys, they do not believe that many families will opt in for this program. and key question is, how many fatalities will ken feinberg say are directly related to the faulty ignition switches? take a look at gm stock year-to-date, victim

compensation costs ultimately in eyes of some on wall street well over a billion dollars, perhaps up to 1.5 billion. again, details in 15 minutes from ken feinberg and stick around. after his press conference, here on cnbc, talking with ken feinberg first in a live interview, his perspective how he set up program and what he's expecting in terms of number of victims' families opting in for the compensation plan. >> david, this morning people have been reading stories, "new york times," about potential criminal investigations, charges. >> yeah. >> ideas they are protected as a result of the bankruptcy filing. give people the lay of the land here, where it may be going, what gm's liability might be. >> the bankruptcy protection does not apply. you can't go to a criminal matter and say it happened before we declared bankruptcy,

that's only for civil cases. ken feinberg will have authorization to make awards for cases that happened before and after bankruptcy. the bankruptcy shield does allow general motors to say we're not going to take on those legal challenge -- those legal responsibilities. one interesting thing, david, in talking with lance cooper, an attorney who represents the melton family out of georgia, he thinks a the of families want the option of going to court for punitive damages which are extraordinary if you went a case like this they want toe see gm pay and that's why he thinks some families will say thanks, no thanks, we want to eyou in court. >> stop trading with jim. "squawk on the street" back in a minute. business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month.

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chicago that occurred for epilepsy, they're saying it's not just for epileptics, for seizures for kidser it's remarkable. parents will do anything, all right. but this piece is very special, talks about -- gw pharma, the only pure play on marijuana, that you can't make in the country it's a class i felony but can make in england. talking about autism and migraines, the market size for the drug continues going higher and higher. it's a shorted stock. but the teslas, the netflix. from when i understand from the medical community the current treatment for epilepsy is so awful, it has so many side effects, versus success of this, that this one continues to work higher. remember, medical marijuana has not succeeded in the country because doctors don't like to prescribe it because it's not in uniform. another secret gem in the piece is that the fda working with gw pharma trying to figure out the

offlabel uses, what to do. the fda would love for this -- for this to be legal, i think. they haven't said it pointblank, but you're never going to get through congress it's not a crime for marijuana. >> this could be potential inversion. >> british company. >> if there were another company that wanted to buy it. >> i can't believe it's not being bought by -- maybe if it got bought by another company, keep it separate, so the company wouldn't be indicted for maker of marijuana. but pure marijuana i think will replace oxycodone because it's not as bad. >> what happens your hurdle for this stock to translate to other pot names. >> fda's not going to work with them they're not pure. it has to do with a pure strain, not having some other drug in. only repository, it's not going to come out soon. frankly, look, this has

potential to be what happened with fda and aids, the people that had it rose up and said, fda you better do this. an old friend from college, she's responsible person, she's head of the fda, she has to look at this stuff and say we've got to give parents this drug for these kids because the rate of success versus what the current course of action for -- it gives you desedation, abnormal behavi. this thing has had remarkable success in trying to curtail seizures. if i'm a parent of someone who is a child, believe me, i'd abthe fda saying, gm pharma, please let us have it. >> "mad money tonight." >> a couple of situations emblematic of what happens going on in the country. timkin, first interview. the spin-off.

not the base but the high end proprietary. sonic reinvented itself. there's 3600 sonics, but this is a company that is -- drive-through fast-food. finally, emerge energy, who's ever heard of this? they've got the best fracking sand in the country. based in wisconsin. it's an mlp, done remarkably. fracking is not going away. these companies don't come on tv, guys, you've got to watch. >> there's actually -- >> only a certain kind of sand that works. >> make a competitive product in that area that's better. fracking sand, offer that to companies -- >> only a certain kind of sand that worked, based in wisconsin. this is the pure sand. had to go from 4,000 railcared to 8,000 railcars to transport the stuff. it's one more part of the revolution in fracking that i'm not stopping in talking about. >> no. as i point out, you've done a

great job. i didn't know about fracking sand. >> i'm watching amazon. >> also, nasdaq, another 14-year high. the best performing nasdaq 100 performing stock of the year, apple. >> wow. >> that's going to lend a lot of weight to the 100. >> aerospace stocks are down, because of eric canton losing. i think that people are being short sighted. the stocks shoot up higher, if it goes away. if it does go away, fully discounted. be aware, i think those stocks like boeing, which my charitable trust owns, are getting overdone. there's a moment -- >> it's good to have you back. >> fully engaged. >> more engaged than most people are. >> you may not be engaged forever. there's another step after engagement. >> i'm further excited. >> yes. full engagement. >> see you tonight, jim. >> simon's here with a look at

what's coming up on the ten. >> a big hour of live news events coming up. ken feinberg about to a. unveil gm compensation packagen two decisions from the supreme court, one on union dues and obamacare. and bis, bank of international settlements launched a blistering attack on what it describes as euphoric markets, we'll consider that as well in hour two of "squawk on the street." ? ? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business. built for business.

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the street." i'm diana olick. pending home sales jump larger than expected 6.1% month-to-month in may, that's is the index that measures signed contracts in may, not closings. forward looking indicator of june and july. this is the largest monthly jump the roler tos recorded since april 2010, when people rushing in to get on the tax credit. pending homes 5.2% lower than may of 2013. regionally, northeast, sales jumped 8.8%, midwest 6.3%, south up 4.4%. in the west where we had been

seeing slower sales, pending home sales up 7.6% month-to-month. all lower year-over-year. realtors citing lower mortgage rates and inventory. first time home buyer still not in the market, just 27% share, far lower than usual. they say that full 2014 sales will come in lower than 2013. again, unexpected 6.1% jump in those signed contracts in may. more online, of course, realtyche realtycheckcnbc.com. >> thank you. it's the last day of the supreme court session for the year. we've seen the courts striking down aerial, saying police need a warrant to search your cell phone. today rulings on two issues. one key provision of obamacare and contraception, ruling on collective bargaining. we'll bring you decisions as

soon as they hit the we'res. already issued a decision rejecting attempt by the trusty to sue banks to recover money lost in the bernie madoff uppon scheme. >> watching general motors as well. compensation expert ken feinberg is set to announce the plan to distribute money to victims of accidents caused by ignition switch issues. let's listen in. >> as much information as we could about what ought to be in this program. i thank general motors for the total cooperation in establishing this program, via funding it, and funding it without any cap on the aggregate amount of money that's going to be availablen gm basically has said, whatever it costs to pay all eligible claimsed up the protocol, they will pay it. there is no ceiling on the aggregate dollars.

also, gm has said, under this program, anybody who already settled their claim with general motors before they knew about this coverup or this ignition switch problem may rip up the release they signed and come back into this program to get additional compensation. so i've read there are some individuals who already settled and gave up their right to sue in return for compensation. they may now ignore that release and come into this program. and receive additional compensation. the program will begin to receive claims on august 1st of this year, a month from now. and i want to thank the deputy

administrator, my colleague for over 35 years, who is right here in the front row, camille has worked with me on virtually every one of these compensation perhaps over the years and she'll be here after the press conference to answer additional questions that individual media may have. the program will commence on august 1. it will begin to receive claims between now and august 1, we'll have the claim forms, the frequently asked questions, the website. we are translating the claim forms into french, canadian, spanish. but it will be august 1 when we begin to accept claims. all claims must be postmarked no later than december 31st, the end of this year, for accidents that occurred any time up to

december 31st. the gm bankruptcy is no bar to filing a claim under this program. there is no bar. if an individual was injured or killed, unfortunate, in one of these accidents before or after the bankruptcy, it doesn't matter the date of the accident. the bankruptcy will not be a barrier of any type to the filing of a claim. now, we'll obviously have to stick around into 2015 because people will file claims, some of them late in the year, and we'll need time to process the claims during 2015. but if you file a claim with the fund, a few points should be made about the overall program. first, the program is entirely voluntary. nobody is required to file a

claim. this is a voluntary program. second, once your claim is submitted and we deem it substantially complete, that is it has documents necessary, we will process that claim either if it's a simple claim, we will process it -- >> ken feinberg laying out gm's voluntary compensation plan as he put it, a key milestone for gm attempting to move forward clearly, as the internal investigation. let's get some reaction from an attorney who represents the families of 80 alleged gm death victims, more than 1500 injured individuals. bob hilliard joins us. immediately we have two key elements coming out that the gm bankruptcy will not be an impediment for people who wish

to file a claim and at the same time if they have settled with general motors, they are able to come back the waiver doesn't stand, they can apply for increased compensation as he basically lays out qualifying criteria and some stage the formula by which people will be compensated. what is your reaction to those two specific measures? >> i'll start with second one. good morning. so, if you sued gm and settled your case mr. feinberg's right you can come back into the plan. but i've read the plan and as they say the devil is in the details. gm or mr. feinberg's plan will require an offset as to anything you may have settled. in other words, let's say there's a case where you settled for $5 million but you didn't know about the fraud. you didn't know about the defect. so you tear up your release, come back into the plan. looking at numbers that the plan provides, i don't know that you

would ever reach your $5 million threshold before you actually got any additional money. so in regards to coming back into the plan, once you have settled the case, you'll have to take a look at each individual claim and make a decision. your first part of your question was the bankruptcy issue. my response to that has always been the same, and it was my response to mr. feinberg and gm, if this is voluntary, how can it be voluntary if the alternative is should you not choose it, they will use bankruptcy to defeat your claim? this is almost like voluntary servitude. if you have to use the fund in order to get compensation, otherwise you face a bankruptcy defense by gm. my suggestion to gm is, if you really mean it, then waive your bankruptcy defense in litigation.

that what a claimant can look at fund and the litigation and say, no bankruptcy defense, i can value what i want to do. do i want to spend the time -- and it will be years -- in order to litigate it. >> what about the numbers? gm has acknowledged i believe 13 publicly, acknowledged 13 deaths linked with the fault. you are representing people in greater number, 80 alleged death victims, 1500 individuals what your class action, your court case will say. it's feinberg at this stage going to bring in more of the people to the gm fold? what is he saying on the detail of who is eligible? >> absolutely. all of the clients that i represent meet the eligibility requirements generally, as the ceo of general motors, mary barra made clear that 13 has been misconstrued. that's not any attempt by gm to say this is all that has been

injured. ken feinberg has told me personally -- and i have heard it from miss barra -- they want this to include as many individuals as possible. so, you can expect that the deaths that will qualify will be a very, very high number because that's how the plan is designed. >> bob, stay with us for one moment. we want to take you live to the supreme court. hampton pearson has details. >> first important ruling of the day, harris quinn, eight illinois home health care workers basically suing so they would not have to pay union dues or be compelled to join a union. in a 5-4 decision the court has ruled in favor of those health care workers, a key sentence from the majority opinion from justice samuel alito saying, quote, no person in the country may be compelled to subsidize speech by a third party that he or she does not wish to support. the first amendment prohibits the collection of an agency fee

from personal assistance in the rehabilitation program who do not want to join or support the union. the case goes back to a lower court where those workers will be able to go forward with their lawsuit. first important ruling of the day. of course, now waiting -- as you can hear from demonstrators behind me -- on the hobby lobby decision. back to you. >> thank you, hampton piercen, that is a body blow, they will not be able to collect in 26 states dues from people who they can argue they negotiate salaries for. that's politically also for the funding of the democrats in certain states, huge implications. >> with union workers, membership and power in decline. majorly reduced number of workers belonging to unions in 2013 versus years ago. this is another setback. >> we've seen this in wisconsin. when scott walker removed that provision, immediately the

teachers unions losing 65% of membership. that has huge implications moving forward. >> we got that decision. we'll await more. when we come back, you heard him, ken feinberg delivering his plan to compensate victims of g p gm's faulty ignition switch. he'll speak to phil lebeau. more "squawk on the street" back in a minute. ♪ [ female announcer ] we love our smartphones.

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welcome back to "squawk on the street." what mannkind, the stock higher after the company received fda approval for the inhaleable diabetes street. approval comes threes year after the fda asked for additional studies on the effect. there was sell on the news reaction but take a look. it is coming back this morning. >> now they're buying. looking at broader markets, we are higher across the board. economic data here to digest. big jump on pending home sales. david katz. david, here we are, limping along to the finish line of june of the quarter of the second half. we haven't seen a down quarter since back in fourth quart of 2012. can earnings and economic data upon us keep it going? >> we think the earnings are

going to be pretty good. we think it's like the last two quarters, which is at or modestly above expectations. not looking for reburst growth but slow growth has been pretty good for the stock market. we think more volatility but the markets should have upward buy. >> tom, it's strange to have the jobs report on a thursday, because of the holiday shortened week, i would think this would be a biggie given the fact we had 3% decline in economic growth last quarter. >> yeah. look, what i would say is this. q1 wasn't reality anymore than q2 is going to be reality. the fact is you're going to see a significant bounceback in the second quarter, gdp growth up to 4% growth by our estimate. you know i think people are sort of looking through the noise of the first half of the year. once you start to get into h 2, the underlying trend growth will continue. we think the payroll report will be consistent with that as an idea. >> david, a blistering attack over the one by the one

financial institution who correctly warned the financial problems we had leading up to the last crisis, bank of international settlements. it said financial markets are euphoric in the grip of a search for yield but investment in the real economy's week and future remains uncertain. they say a puzzling disconnect between the market's buoyancy and the economic developments around the world. are you concerned by that warning, david? >> we disagree. we think the proof is in the pudding and what we're hearing ceos and cfos spending more, feeling better about the economy, seeing a great deal of takeover activity. seeing the acquiring company go up on the news as well acquired company. all of those things are bullish for the economy and bullish for the stock market. stocks are selling at 16 1/2 times earnings, in line with historic averages over the last 50, 60 years. so we're actually comfortable with things. >> tom, there's also in this bis warning really a shot across the

bows of janet yellen and countries they say in the late stages of financial booms. the trade-off becomes effectively raising interest rates and bringing the cycle on versus storing up major problems further down the line for those, and i paraphrase, that have gorged on cheap money and can't afford it when the rates rise. do you think it will move yellen to get a little bit more aggressive? >> i say probably not. i don't think it has anything to to do with the bis paper. i think one very important champion of this idea has left the fed, governor stein, he was the voice on the topic. what i find revealing in yellen's last press conference, when asked about this by one of the reporters in that scrum during the press conference, she basically said, look, it's really -- i'm paraphrasing -- but said, it's not on our radars right now.

i think for the fed it's not what's going on around the globe. we can recognize there's a number of challenges. for the fed it's about trying get to a point where they can feel comfortable normalizing rates and for bet or worse, continue to print 200,000 jobs, i think that's it for them. >> given the fed policy, david, and economic data, your prediction on earnings, what do you think it's going to take to break this calm? are you nervous about the lack of trading volumes and volatility? >> we're not concerned about the trading volumes. we think volatility's going to pick up, we think external events can spook the market. but in terms of earnings, earnings will come in pretty good. companies have done a very good job of setting low expectations and coming in at or better than expectations. we think that continues for the balance of the year. >> tom, is it healthy to see this level of stock buybacks, corporations buying back stocks instead of investing? yes, increased mergers and acquisitions but do you want to

see this level of buybacks? >> again, it's revealing about the backdrop. i think companies are saying we don't see any other economically viable opportunities for us invest in any different areas of cap. healthiest for other people to decide. as an economist, i'd love to see the money get put into the cap x space but companies don't see the level of economic activity to warrant such cap x at this point. >> thank you very much for helping kick off the week, last trading day of june. breaking news from supreme court. employers can refuse to pay for contraception under obamacare. tell us more. >> reporter: i don't know if you can hear crowds behind me, pro-life demonstrators shouting hobby lobby wins, hobby lobby wins. another 5-4 decision from this court. they did not decide the case based on clear first amendment decision. they decided it based on the

idea that the 1993 religious freedom restoration act was basically trumped the obamacare mandate for contraception. just starting to dig into the opinion. but here's the key sentence from justice alito, again, speaking for the majority. contraceptive mandate, as applied to closely help corporations, violates rfra, that's the restoration -- i want to get it right -- religious freedom restoration act. our decision on that statutory question makes it unnecessary to reach the first amendment claim raised by cona stoga. the key case. court saying in 5-4, contraceptive mandate part of the affordable care act violates 1993 religious freedom restoration act. we'll dig into more of the

opinion and get back with more detail. >> closely held corporations, this wouldn't apply to publicly traded companies, for example? >> that, first glance, would be yes. it's what we thought the court or some of us anyway when we listened to the oral argument, could the court somehow find a way to sort of thread the needle here, if you will, craft a very specific ruling in this case and not necessarily get into the whole mine field of bigger corporations and issues going forward. >> bottom line, would you say, this is a blow to obamacare? >> you would have to see it that way. specifically since the language is so straightforward about the contraception provisions of the affordable care act. vis-a-vis, 1993 law passed by congress. >> hampton, why did the central argument aided by the federal government that you could not ascribe religious beliefs to a closely held corporation fail?

why is the corporation allowed to have religious beliefs? >> i'd have to get into both the dissenting opinions -- which i haven't had a chance to look at and more of the detail of how the court majority got to the five votes necessary to come to this conclusion. i'll get back to you on that one. >> all right. hampton pearson, thank you for the breaking announcements. one of -- in this case owners of that business were religious and that's why they were protesting. obviously the court was search threatic to their case. more on general motors and ken feinberg's victim compensation plan that is being unveiled in d.c. mr. feinberg himself will join us as soon as she's finished the news conference. [ male announcer ] this is the age of knowing what you're made of.

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send it over to bertha coombs and get a check on oil. >> brent crude oil dropping below 113 a barrel, as fears of an oil disruption from iraq are easing. this is government forces launched a pushback against the insurgency. worries pushed north sea oil to nine-month high, above $115 last couple of weeks. right now, take a look, brent is 112.75, down a half point. wti holding up. interestingly, guys, the big move on this oil has folks over at gas buddies saying you're pay the highest prices at pump this fourth of july weekend since 2008. >> not pleasant this weekend. important condensed week in the

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out the criteria used to qualify the formulas for calculating the amount. he's already said that people who had settled before the bankruptcy can come back to the table, and those that have already settled would be able to come back if they were able or eligible for more money. ken feinberg will join us live shortly. s&p trading above the record close, the highest close of year if it closed right now. art cashin at ubs financial service joins us at post nine. help us take stock in the first half, look forward to the second half. >> good to be here. >> what do you make where we are, broadly speaking? >> at an interesting point, the s&p has got to get up through 1968, 69, intraday high, and then there's real trend line resistance, up around 1975. so we're very, very close, some testing points could provide a breakout for the bulls if things

get going. >> you've written about some bulls, i don't know if you want to say lose their nerve but starting to ask deep, dark questions. >> by certain valuations, the market is at levels that it hasn't seen since the dot.com bubble. that's not a timing indicator but it is somewhat worrisome. we'll see how things begin to go. >> you don't sound like you have a lot of conviction in this rally. and it's something that's echoed by a lot of traders here, something we've seen throughout the bull market run. what is driving it, then? is it the corporate buy backs that we keep talking about it? >> it has been, corporate buybacks have been key to the whole thing. in fact, the market's been driven by earningsen this a big schism, people who look at macro, who look at gdp and a variety of other things said, the market doesn't deserve to be here, it should not be this high. people look at earnings say it should. the corporate buybacks have

allowed people to buyback enough stock to keep price earnings ratio high because there's fewer stock outstanding. some of that over the past four weeks has begun to at least indicate that it slowed down. new announcements further buybacks not showing up. now that could be two things. could be they looked at the market and say we're at an all-time high, why should it be paying up here or say, i want to conserve cash in case things slow down. >> art, as far as low volatility is concerned, one, we have low volatility because of the feds and this dovishness which persists. the second thing they said, which i thought interesting, they don't think you're going to get the economy actually running motoring above potential for another four years. then they think presumably some interest rate action to start depressing us. that would mean nine years of expansion. is that possible? >> well, it's possible.

it is not historically normal because you tend to see signs of slowdown and recession, kind of roll over after 6 1/2, 7 years. so, we're all debating how far the recovery's going, it's almost by historical standards a little long in the tooth. >> gold has begun to gain. we're dwe saw the best week for the japanese yen. are you seeing warning signals for the stock market? >> you're seeing some minor divergences but as simon said, with 56% of the world's economy operating at 0% interest, it's really tough to see why this thing isn't being pushed along a little further by the fed and others. >> finally, are you seeing any indication that this baton will be passed to retail, mom and pop

are a driving force behind stocks again? >> i think it may still be months and possibly years off, because it was such a double hit, particularly if you had people who got burned at the end of dotcom, came back, started to feel better and then had the housing bubble blow up on them. yes, we back at highs. yes, if they bought back in or stayed in they might have done equally well, but that scar is still burning, i believe. >> we'll talk to you soon. art cashin. we have two major decisions coming out of the supreme court within the last 20 minutes or so. joining us on the cnbc news line, richard caldwell, former federal judge of the southern district of new york. welcome back to the program. >> good morning. >> thank you for joining us. let's deal with the first decision that they've -- that really stands above all others as far as many are concerned, a decision by scotus the

government cannot compel closely held corporations that have certain religious beliefs to offer contraception coverage as part of insurance packages under obamacare. what is your reaction to that decision? >> well, it is actually a relatively middle of the road decision that attempts to balance deeply-held religious convictions in small closely-held corporation owners against the rights of female workers. the court does not appear to want to write broadly on this subject and basically has carved out a small exemption warning that broader exemptions will not be available. so it's a balancing act of sorts. >> is it a major blow to obamacare or is it peripheral, in your view? >> the decision really isn't about obamacare.

the decision is really a first amendment issue of religious freedom and expression. it will have very little impact on obamacare in and of itself. >> but it does -- it's interest, because it's the first time the court has considered religious freedom applying to for-profit companies and owners. does that set some kind of precedent here? >> well, it definitely has that potential, although it's going to be very narrowly applied, at least from the view of the majority opinion. it is a -- one of the very difficult social issues that the justices agonize over and the of course the 5-4 split is there, i guess at this point, maybe three dissenters on this one. and i would not read it as

impacting obamacare in any direct manner. >> let me ask you the other major ruling that's come out that appears to be a body blow to the labor movement, the union movement in this country, a decision by the supreme court to strike down the laws in 26 states that required public sector workers, teachers, police officers to pay union dues. simply because the union can argue they are negotiating their wages at a higher level, regardless office whether they want to be a member of the union or not than seems very big, sir. >> that is a major decision, and although the supreme court majority did not outrightly -- outright overrule the prior supreme court decision in abude versus the detroit board of education, it eviscerated that decision and it is a very, very

strong blow to the right of public employees to unionize. >> presumably the right of the states to regulate themselves, democratic policy within a given state has been overruled. >> absolutely. this will have a broad impact in the relations of public employees to employers. >> good to hear from you, judge, richard holwell joining us on two important decisions from the supreme court. >> coming up, roger mcnamee on what he likes in tech for the second half of the year. facebook taking flak or experiments altering your mood. squawk alley at the top of the hour. you missed it, do not worry, david faber's "amazon rising" airs tonight 7:00 p.m. right here on cnbc. we'll be right back. if you have moderate to severe rheumatoid arthritis, like me, and you're talking to your rheumatologist about a biologic...

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welcome back. norfolk southern moving higher today as barclays getting bullish on the railway. upgrading for noek foev weight to equal weight, suggesting 10% upside from current levels. the stock up 2.3%, that puts it up about 12% year-to-date. carl? >> not too bad. let's get to the cme group in chicago. the santelli exchange this morning. rick. >> good morning, carl. id like to welcome our guest, professor john taylor from stanford. thank you for taking time this morning, professor. >> good to be here. thank you. >> professor, last week a lot of hand wringing over what exactly is keeping interest rates so low, not only in the u.s. but specifically in the u.s. and maybe around the globe. one of the worry beads is that at the epicenter of leverage are financial instruments known as

repos and the supply of good collateral in the form of treasuries is in short supply. do you buy into that argument as one of the top five reasons why rates are so low? >> i think it's a factor, but i wouldn't put it up there very high on the lisp i think you still have this question about the recovery while it's looking okay, it's still below what many people forecast, you know, if you averaged out the first quarter and the second quarter it's going to look pretty bad. people are forecasting more than that. i think that's what's going on, this continued overall d disappointment in the economy's is what, to me, the main factor that's keeping rates down. >> professor, there's a lot of different numbers to look at. there's no shortage of fundamentals. many of the surveyed type data points, like today's chicago or the national ism, seem to be running pretty strong. of course, gdp considered older is running week. durable goods retail sales better. how do we categorize the data

point? do i throw the surveys away because things are a bit different? >> i think the surveys are basically saying we're going to continue to get this kind of 2.5, 2% growth since the so-called recovery began. you can see sometimes it's better, sometimes a little worse but not seeing a really good pick up like the past. i think that's what the data continue to tell us, first quarter confusing because of the weather. the same story's there, that's what i'm seeing. i hope it could be better but it's not. it's good for markets, good for certain sectors, part of silicon valley. overall speaking, that gdp number could be a lot better. that's what you're focusing on. >> yes. were you surprised that janet yellen's last press conference, do you think personally that she may have been a bit too flippant, if that's the correct word, regarding the uptick that we've seen in certain areas on the pricing side? >> well, there's always a

concern. central bankers have responsibility of price stability. it's looked good. in fact some people say it's been too low. i think it can't be complacent about this. there's a lot of liquidity out there. could pick up any time. i think it's best to keep focus on overall goal of policy. if she's given some indication that's in question, that's not so good but let's wait and see. >> thank you very much for taking time this monday morning, professor. always great to have you. carl, simon, kayla, back to you. >> guess again. rick santelli at cme group in chicago. it's deadline day as contract negotiations continue between international long shore and warehouse union and the pacific mary time association. if they don't reach a deal, the economy would have $2.5 billion per day problem on its hands. jane wells is live in los angeles with the story. >> reporter: i'm at the port of los angeles. they call it june gloom here

when it's gray in l.a. in the mornings during june and it burns off. it's gray hanging over contract negotiations which are expected to continue through the experration of the contract which is 33 hours away. by mid-july, if there is no agreement between the 29 ports on the west coast and thousands of dock workers, well, could we see the pictures from the ten-day lockout years ago, the smell of rotting feed in the air? the maritime association or management, if you will in the contract, says west coast ports contribute $2 trillion to the u.s. economy equivalent to 12.5%, of total u.s. gdp. the l.a. port is the largest. this is an inbound ship coming in. traffic is up 8%, some may be due to retailers planning ahead before the possible shutdown. but that 2002 lockout still being felt as jock o'connell

says canada capitalized on act kri moan yus relations between management and labor at u.s. ports. >> made a major point of selling the virtues of bringing goods through vancouver or prince rupert in the west coast. to say that that's a more secure, reliable route for importing goods into the midwest and the east coast markets. >> reporter: now the maritime association says west coast ports have gone from 50% market share to 43% since 2002. the question is, will that go even lower with the expansion of the panama canal, set to be completed possibly by the end of next year. a lot on the line for both sides. stay tuned. back to you. >> jane, is it fair to say it looks like there won't be a strike and they will ultimately come together? that seems to be the latest analysis. >> reporter: i don't think there will be a strike tomorrow or a lockout. it can go either way. if there is no agreement by the middle of the month we could see

a very different picture. things have gotten very nasty between both sides but both realize there's so much more competition that perhaps they will come to an agreement on more friendly terms than they have traditionally in the past. >> thank you very much. jane wells from port of l.a. next on the program, the markets in 25 years. how big of a role, if any, will exchanges play? ceos of the big of the three exchanges, what their industry and jobs outlook is. more on that after the break. e . over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies.

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the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. we are watching general motors this morning because compensation expert ken fine interlaying out the plan to disburse money to the victims. he is laying out the terms of financial payments as we speak. turns out the flund start applications august 1. the application period will be closed december 31 at 11:59 p.m. it will be completely voluntarily. ken feinberg will join us live as soon as he concludes his news conference. we are spending the day looking at the future of markets. 25 years from now. exchanges may or my not be a big part of that picture.

answers from some of today's biggest industry players. the concept of exchange isn't simple. bring buyers and sellers together to get deals done. >> that's where price is discovered. that's a democratic process through fair access to allow people to express hair opinions. >> trading is a democratic business. everybody has a say in it. collective wisdom of the market will put it in the right place. >> the democratic nature of markets will go indian hand with technology over the next 25 years. >> you have seen that the market become more electronic. it has been more democratized. >> technology and smart entrepreneurs are finding ways of putting networks together of almost overnight. there will be a network that will allow us to trance act stocks and bonds and financial -- >> what started off as a gathering of brokers under bought only in 17292 has turned into a market that connects

millions of people and ideas. the size and scope of financial markets is p only expanding with new products being constant lynn throw deuced. the level of sophistication is bound to grow. >> if you want to invest in starbucks but negative tate risk of the price of coffee or adm the price of corn, products that allow to you do that. >> of course, all of those new products mean lots more transaction volume and the need for extended market infrastructure. >> 25 years from now you certainly had to have the bandwidth and capacity to the volume you seek today will be several orders of magnitude higher than that in the years to come. >> it also means a lot more focus on cyber security and securing the stability of financial markets. >> we are going to have to be hyper-vigilant about protection, prevention, and incident management. >> in the end everyone will have to embrace change but at the right pace. >> two steps ahead.

then your invasion of where you are is probably mott accepted by the marketplace. if you are a step behind then you are toast. >> if you don't change from within you will find a group of, you know, 20-year-olds, smart 20-year-olds will suddenly create something that will be disruptive. >> guys, that's 25 years from now. the exchanges will look a little similar but maybe different but, of course, everything could change in the next 25 years. in the halftime report we will be talking about how you make trades. go to cnbc.com because bob pass an write has a great piece on seven huge changes that will happen to the world of trading over the course of the next 25 years. it is a great read. some of the stuff only comes out of movies. that's the best way to put it. >> all right. a look at the future in trading. thank you. i know there's a lot of interest down here on the floor. let's send it over to kayla with a look at what's coming up. >> we have early facebook invest sxwror venture capitalist roger mcnamee to give us his thoughts

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welcome back. breaking news. bank of new york mellon. bank of new york mellon becomes the second largest position at triumph fund management after mondalese that can be converted into stock. they say they have contacted the bank of neshg mellon to express the interest in discussing ideas and initiatives to drive long-term growth and enhance shareholder value with the company's management and board. not a lot of specificity there yet. they probably will bring ideas from their other financial holdings such as legg mason or state street. we look forward in engaging with

them as we do with all their investors. july 16 mr. pelt is one of our keynote speakers. back to you, carl, for the rest of the news this morning kate, thanks very much. good morning. it is 8:00 at face book headquarters. 11:00 a.m. on wall street. "squawk alley" is live. ♪ welcome to "squawk alley." the g.m. compensation fund being laid out. supreme court decisions. a lot to talk about