that's how they describe themselves. >> adjective, dash y? how do you spell that? >> check with larry paige on that. >> thank you, gary. >> thank you. >> went too fast. come on back. see you soon. >> join us tomorrow, and "squawk on the street" begins right now. good morning, and welcome to "squawk on the street," i'm david faber with jim cramer, and carl has the day off. the road map starts with the markets looking to extend ral ralli rallies. they are racing around new record levels. home depot boosting guidance with better than expected second quarter results. sprins swinging, a new ceo, and now a new mobile pricing plan spurring colorful comments from the once almost merger partner, john ledger, and it's the 10th anniversary of google going

public, and we have some blast from the past sounds when he was talking with you, mr. cramer. >> yeah. >> futures on the rise, and upbeat data on housing added to the positive sentiment. new home construction up 15.7% in july, a rebound after two straight monthly declines. building permits up 8.1%, and meantime, consumer prices up only .1 % last month. the nasdaq closed at 14-year highs. yes, sir. i do remember march of 2000 quite well, actually. >> yes. >> it was my birthday of that year that we hit 5,000, whatever it was. >> right. >> of course not to be seen again, will be a generation, but we're getting closer. >> we are. the makeup then was different because it was cisco powering things higher. people need to remember the companies that cease to exist, and that's totally understandable, a couple billion dollar company, but the reason why things got awry was that the

s&p was infected with tech, radically overvalued, and at the 2,000, wow, it was bad, but there was a dramatic switch in march meaning the money went out of tech into bristol meyers and coca-cola. people remember the period fa e falsely. we have companies not undervalued that are doing quite well. it's important to point out that the cisco, which i know a lot of people were not crazy about the quarter, but i liked it, the stock's up nine. >> wrn you did. >> cisco is rarely valued. yesterday, they downgrade the sem semis. you're valuing the companies at dramatically reduced multiples. there companies whether it's workday or concur, add them together, put in really salesforce.com, and they don't make up a tenth of what cisco is valued at in march of 2000. >> incredible.

don't get carried away. apple has past that mark in the past and is up almost 24% this year. >> right. >> talk about technology broadly speaking, certainly. >> yes. >> an agreegs of market value. >> good notes today, don't trade apple, own it. i6, wearables, and it's done a remarkable job. people felt they lost their way. if i think that samsung lost its way. we don't talk about about it because it does not trade here, but the key story behind am's rise is the dramatic fall of samsung dating back from a very weird almost suggestion of -- there was a commercial that was the worst commercial i recall. we had the trivago. >> talk about creepy. that guy, by the way, not as creepy in person as he is in the ads. >> it's the blue-eyed thing.

>> looked better. >> made me want to go priceline. >> that ad -- >> it was about suggestive about -- i was waiting for ro roofies. that was the peak of samsung. >> that said, we'll talk about it. i know a number of hedge funds here who own it because the yield is high, and the pe multiple's extremely low. >> true. not happy campers, because as you point out, the numbers have been not trending in the right drervegs. >> no, what happened, the ibm did that deal with apple, and i think in a lot of ways that was really an attack on samsung because you get that iphone in, and then you do a lot of other things, and this is -- look, talking about the anniversary of google and androird, it's a successful story, but in the end, apple took share back.

apple got cooler. apple addressed some of the concerns the street had about china, and apple left other companies in the dust, including nokia. turns out that ballmer had a true call. >> it was the clippers. >> absolutely. >> here's going to make mark cuban look like he's bored. >> he wants to be a in shark tank. >> he would have survived. only live twice, dropping in. >> yes. you're absolutely right. he's dr. yes, to, when it comes -- brook ballmer is better, classma classmate, friend of mine, is he like that? no, this was a much more subdued ballmer than i remember in college. yes yo political concerns continue at the forefront, but today seems to be relatively

acquiesce on the front, but it could change in moment whether it's ukraine, cease fire in gaza extending, iraq, taken back from isis, so what? we just have to live with that. >> merkel's going to kiev. remember in the months from march until september in 1938, british and the french were in the possibility of stopping hitler or delayed him, chose not to speak with the ceo of the czech and dealt with hitler. merkel is into 1938. this is her period. she's going to kiev, going to prague, not to munich. if putin believes there's a deal, if he believes the west throws away the businesses, he's got it wrong. this is merkel saying, look,

listen, we're wise to you. that means that i think that putin has to back down, and that's what we're seeing. >> wow. that's a lot geopolitical strategy coming at us. >> putin has to back down. >> indicating he's rational. >> i think it would realize that the game plan has changed and there's not chamberlain there. the producer has the samsung commercial ready. >> he's watching that awful creepy commercial with the guy watching the girl -- oh -- >> no. that was the peak in samsung. you had to go long apple. it was like apple at 3735. >> we'll play it in a break. home depot raise the the full year earnings guidance and second quarter profits, $1.52 a share, revenues above analysts sfi

estimates, had a 6.4% gain in the united states. in the release, blake said in the second quarter our spring seasonal business rebounded, and we saw strong performance in the core of the store and across all of our geographies. when i hear that, okay, what is wrong? where is the ching, is there anything? >> frank was concerned. there's a period which is their christmas, the planning season. i go back and forth with frank because i buy all my flats at home depot. they had a late season. planting did not begin until may because of the weather so there was a concern things would not go right, but they had a remarkable late spring, and this is a fantastic quarter. i don't think he throws cold water on it. they made the efo, remarkable job. home depot does not put stores up.

they do not add stores, but getting more and more of each store, center of the store is tools, the outside is plantings doing well, and this is also encouraging for spending in the home, coupled with the home sales, meaning you have a real jackson hole so get ready, people at home, to be scared by the jackson hole who says the fed has to raise because of the housing number. they'll try to scare you out of the stocks. strap jr. seat belts on. they make it six flags. they make a sea world. >> oh, god, don't start with sea world. >> the ideologs make it sea rld, kill willie. i'm joking. sea world's done nothing, they are good now. >> they increased sizes of the tanks. >> they've done everything. like putting them in graduate school. >> tanks are larger. >> scholarships.

>> the documentary still has impact. 9:00 a.m. conference call on home depot, any reference to lowe's? >> lowe's, look, the spring planting season was good. i go to lowe's too. i didn't like the selection of the tomatoes as much as home depot's. home depot had the right selection. they understood that people wanted romas to can. i am not kidding. they were delivering fresh every day, and frank blake runs home depot the way walmart needs to be run. it is responsive. you get through the line very quickly. they are helpful. i actually told frank about a guy who helped me get my bask s baskets. immediate response. it runs like a truvalue in lower manhatt manhattan. or penbrook, and everyone is, like, this thing, wow. that pen just exploded. >> my, lord.

>> i want to -- things are going crazy here. sprint up in the wireless pricing wars or at least in way would be the wars of pricing. the company unveiling new mobile pricing plans that offer, get this, 20 gigabytes of shared data up to ten lines, plus unlimited talk and texting, $100 a month and pays up to $350 if you switch from the current carrier. this offer only applies if you switch. if you're current sprint, you don't get this offer, which interestingly is priced on the amount of data, not on the amount of lines. up to ten lines means we're not charging you per line. >> interfamily, step family, what is it. >> it's about data. >> there is a price target, had a sale on it, but, look, if you're the man who through sprint under the bus, t-mobile,

john ledger, look at this, okay, this is a race to the bottom. >> isn't this supportive of the fact make the fcc was right making it clear would not support the merger, that is it is going to be better? >> yes, it is. >> this is what you have to do, and, in fact, the new ceo admitted you haved to do when the network is not up to snuff at the verizon level, compete on price. some believed they would be more aggressive on price, and we'll see whether it helps to stem losses they had, and as i said, if you're a current sprint customer, you may be jut set the deal does not apply to you. curious what the new ceo is capable of doing. >> billionaire ceo. >> started bright star, now fully owned or soon to be when they close it by soft bank, but supposed to be a forceful presence. >> in the meantime, american tower, brown castle, spa, these are the antenna companies, the

patch work way that sprint has to build the network because they are not all over the country. the former ceo was always, come on the show, listen, if we could just blanket the country, we could have a shot. well, they are not. they haven't. spent so much money from the worst acquisition in history. >> up there with aol, time warner. >> forgot that. >> one of the worse. >> made apple look good, right? >> oh, man, that was nothing. john ledger, of course, the interloper that, when he brought 79.9% of sprint expected he would be. ledger had this to say in a tweet, very active on twitter, as you know. saying it's a new day for data, but the same day for the [ bleep ]. >> unbelievable. is it right he's a ceo? >> are you kidding me. >> he's winning. >> where would that company be?

>> he's the steve ballmer of the -- >> he is. >> he ought to own the browns. >> t-mo and sprint going at it and conceivably bringing down prices overall. don't forget at&t is in the midst of repricing the subscriber base last quarter. that's happening. there's a good deal of impact amongst verizon and a ten a tt&. >> the phone bill is down. your heating bill is down. your electric bill is down. your staples in the supermarket, we have now had corn come down big, beef peaked and coming down, poultry's come down since the sanctions, cotton had a five-year low. >> cpi rose 1% month over month. it's nothing. >> that's why yelp can continue to keep rates here.

the ideologs say she's behind the curve. how much of the ideologs made you short the nasdaq and s&p? ideologs have thrown you off. when i say "ideolog," i'm speaking of very nice people. >> got it. coming up, a wide ranging look at google ten years after the company's ipo. shareholders had a lot to cheer about over the last decade. as we head to break, that samsung commercial we just referenced? take a look. >> ha-ha! >> oh, hey. yeah, how is it going there, man. >> incredible. >> so jealous. have fun. >> want to see something cool? >> yeah, sure. >> give me your number. >> then he follows her on the ski slope. >> all the way back. >> tracks her, and he stalks her, and, you know, this is a sign for advertising executives to say it does matter, our work. >> yeah. >> all right. we'll be back. >> frightening.

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today marks the 10th anniversary of google going public. the company priced initial public offering at 85 bucks a share. reverse dutch auction. since then, hundreds of

millionaires created, and they have become, of course, multi, multi, multibillionaires. six years ago on "mad money," here's what schmidt told cramer about the company's future. >> google is growing. we're growing globally. we have a lot of new products coming. you talked about android, which i know you were interested in. there's more stuff coming. core search is not solved yet. we have too many answers. the web is getting larger. we have to introduce all of these other technologies and content and so forth into it. there's a lot of new search coming. >> search not solved yet. went to look at the original letter of the origin nalorigina mobile only mentioned six time, and you look at the innovation at this point, and some you go, what are they doing? they warned you about that as well, but the core innovation, what they've done in terms of

changing search and adapting it, of course, to mobile and android, so many things. >> brilliant. they missed social. well, you know what? they can buy social today, and the amazing thing about this, they department know what they had. eric is a smart guy, and used to beg for servers when i started the street.com, give me the servers, but they didn't know what they had. they didn't realize how big it could be, and that was extraordinary, particularly because there was so many bears all the way up. so many people did not believe in this company all the way up. they fought it and fought it. that's really kind of one of the themes of google. >> from the day it was a powerful tool from the beginning, jim, and also, by the way, always had incredible mar gyps. >> it was generational. >> see, we're always generating cash from really the fair hi early days. >> but it was generational.

had to learn it from your kids. a theme is you had to learn ipads, ipods from your kids. you know, you had -- those who have kids understood these far better because you would get, come home, and the assignment for your kid in fifth grade, you were not allowed to use google. why would you use this thing called google? dad, that's because the answers are on google. let me google something. you had to have a kid who got the homework assignment that said you must not google, and you realize, holy cow, they are on to something. bought youtube for a billion. they have not monitored youtube. they could call the nfl, we want it. >> oh, and that could very well happen. i think it's the third most visited site out there. >> could have been googing. >> very well may be. a $4 billion market cap for google. watching other stocks this morning. up next.

cramer's mad dash counting down the opening bell. firstings though, more cramer on goog google. >> april 21st, my calendar says this is national google day. i think google goes to $250. i like google, it goes to 350. i'm raising the price target of google from 500 to 560. google? hallelujah! i'm taking my old $6 00 target tonight, and i am raising it to $750! this is a total and unequivocal lowball estimate. i think google's going higher than. when i get it right. i want to celebrate it too.

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taking up a lot of time, five minutes until the opening bell. mad dash, a little retail? >> yes, the expectations for home depot were high, and, frankly, beat it, but the expectations for tjx, so it's the least emotional of retail beat it. see, when you see this, and then the number comes in just okay at comp 3, boom. you have a lot of raised numbers. the retail complex after macy's took another leg down, and now we're starting to see retailers do better. dick's, tjx this morning, and home depot. this is a sector that's lagged. you'll see a lot of money pour into retail the next couple days. don't forget, gasoline, i paid $3.80 in a place i paid $4.50 two months ago. gasoline and natural gas came down so much because of the revolution, not because of the demand, even though the papers

say it's demand. >> right. >> the papers are wrong. >> it's not clear to me that correlation is strong people seem between prices at the pump. >> it's a brent market, but set in texas because we have so much refined capacity coming on. >> that's another story people don't want to talk about. i don't know why the heck i talk about it other than the fact it's made people money. >> a good reason. >> thank you. >> all right, a lot more coming up, aeropostal is up, the ceo. >> yeah. >> and more from me as well on family dollar and dollar general. stay with us. "squawk on the street" is coming back right after this. [bell rings]

♪

time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. you are watching ynbc's "squawk on the street" live from the financial capital of the world. bell going to ring in 30 secs to start off this tuesday of trading. >> yes. >> quiet week, no doubt about that in terms of volume, at least they can be. a lot of people on vacation. >> right. the streets are empty down here yet. other than the tourists with the

umbrellas. >> they have taken over new york city. >> that is every day of the year. >> right. i think, remember, home depot is a real trend setter. we have a lot of positive -- almost every single -- even the negative retailers are viewed as positive in this prism. urban outfitters i did not like, but it does not matter what i like and don't like. >> i don't know that that's the case. the big board, by the way, heard the bells ring, child abuse prevention program doing the honors at the nyse, and s&p celebrating world humanitarian day. >> i'm for those. >> you should be. when you give this up, focus on being a humanitarian. >> may be my goal. right now, i'm too merchantile. >> you can be both i think. stocks up with urban outfitters. >> you find this with retailers,

they are not as bad as we thought. they said tat the end of the quarter, you saw urban. anthropology was good. there's a lot of congratulations of free people being good. i'm not excited about urban. get excited about dick's, which seems to be addressing the weakness in golf. finally said, you know what? the be rest of the store's doing great, take the charge, golf, congratulations to the team there for recognizing we're sick and tired of dick's being brought down by golf. >> there's a look at dick's, of course, as you see, up over 6%. >> a big move. >> $5 billion market. hung in there. very competitive. >> a tough time with golf as you said. >> should go to 72 or 73 with this, and kevin plank is the genius in the group, most competitive ceo i've seen. john ledger and kevin should get together. >> yeah. >> yeah.

i mean, would be the t-34 armor -- that's a soviet tank. >> kevin plank or -- who is macho? >> i don't know. you don't see kevin wearing a pink t-shirt, but mesh, black, protect this house shirts. okay? he was the world's sweatyist man, and he's changed that. >> dick's is up. you mentioned restructuring golf, 150 courses close every year in the country. >> has been gaining. >> it's not a growth sport right now. >> no. the fact that dick recognizes they went all in golf was a mistake, should have gone all in underarmour, foot ware doing bell, the bull market going on. dick's got it right, will be fun to shop again. i hope. used to be fun to shop there. >> it was? >> it was fun. my daughter's a great athlete. >> never step foot in one of

those stores. look at retail overall, aeropostale, the ceo, replaced, not a good quarter at all, small company. >> used to be a big company. >> i know. didn't take long to be a smaller company. >> dallas retail. >> a 10 % move when they do that. >> there's a pulse. is there a pulse in land's end? they are a good company. screwed up. sent you that -- >> i got another gq. >> did you get the pornographic thing? a cover on it? a paper cover? >> regular cover of a very pretty lady. >> was supposed to have card board. >> she had something on. >> land's end stock did not go down because the management team is good. they apologized immediately. one of the case studies where it shows you they addressed it well, and i think people are going to come and take restoration hardware up, only up a dollar, and that stock takes out the high. we're seeing a lot of retail, a lot of interest in retail, do not forget the gasoline purchasing power means a great

deal for retail. >> asking that question earlier because, does it? i mean, the correlation -- attack. >> we believe, still, despite what is much larger, for example, fuel economy -- >> clarence otis -- >> mileage, opposed garden ceo who had the best work on gas prices versus the check. >> $4 the level where people stopped going to al live garden as much as they did. garden is interesting to watch, david, with the high yield. >> bob evans, and that's this week. bob evans, i believe, could have hillshire brands. >> well, you could see a lot of directors replaced. >> housing stocks have come alive with pleasure. toll brothers. smart guy. seeing a lot of areas that have been dormant including banking, which is surprising because

remember the rates did not go. i don't know what's going to move rates. the rates did not go up on housing, but banking doing a little bit betterment housing doing a little bit better. these are the airlines making a major comeback. even oil making a stand here. a lot of groups that have been weak are getter stronger. >> home depot off the earnings, up 4%, and as you said as well, lowe's getting follow through on that. appears up more than 2%. >> and, david, while you're away, ge went to 26. >> yes, i noticed that, 26.14. >> thought that important to point out. that's a big move, from 25 to 38 cents. just pointing it out. >> something i should be focused on for some reason? >> no, just a breakout in its own right. it's a 62 cents. >> we have inside jokes here, but i don't know, should we share -- >> well, if they sell the appliance business, that was a price target the other day.

someone instituted a buy while you were away. >> on ge? i was gone one day, by the way. >> it was a huge day and a thoughtful piece talking about gross margins, perhaps expanding for general electric. top line was not bad. >> right. >> it's interesting, there's a lot of things, rand did an acquisition. people don't like that. they want to see inversions, takeovers, they want to -- they don't want to see bold on acquisitions, ousting ge, what rand did, they want to see outright takeover, and you're not going to get those. >> bhp down, the company, as was expected, creating an independent global mining company based on selection of high quality assets separating the businesses, they say, with the potential to unlock value, but there had been an exception was a significant buyback associated with that. >> didn't get it. >> didn't getting, stock's down. >> minerals in mining have been

low, baltic freight went over, that's the number for china importing. don't write them off. it's a rotating correction. that's the good that's corrected. >> and finally, just coming back to button up retail. i noticed shares of amazon, i'm not particularly weak at all, flat, but uptick this morning so far. down 16% this year. we talk so much about amazon, though, impact on retail, and how people use their mobile devices, and not going to the mall, yet amazon stock down so much, i do wonder whether that's going to impact their ability to keep an acquire incredibly strong talent. so much in compensation at companies like amazon, and by the way, this is part of what's a virtuous circle for the likes of google ten year s today. the stock goes up, bring in the best and brightest, pay a lot in stock, hence the margins are so much better, and, you know, if

amazon, big part of comp is stock, you do wonder how long they go down that road without putting more cash in. >> talking about that with sales force. do you remember, is that a real number? >> that's right. that's what you're talking about. that move up. >> there's a notion last week on the conference call, and it was we have to spend a billion dollars in tech. i remember when blake nordstrom told me, why do you think people go to amazon? he says, they got the best customer service in the world. no, nordstrom does, i get a jw shirt. no, amazon. so, i mean, you have to spend to keep up with amson. by the way, amazon is a good spender on tech. other companies buy tech, but not necessarily the right tech. >> google is an important part of this, especially when you get a lot of software engineers as amazon does. nordstrom is not hiring tech

engineers. >> you can't amazon plants. spring is not an amazon season. you cannot amazon starbucks. look out, trucks going to college campuses selling starbucks, another venue, they continue to amaze. a buy. home depot, still, a buy. >> let's get to mary thompson on the floor with more on what's pro moving this morning. good morning. >> modest gains for the markets, dow, s&p, and nasdaq over the best levels of the day, and nevertheless, the gains in asia and europe in early trade, it is data here in the u.s. as well as good earnings driving the markets higher today. the dow up 38. s&p punching through that 1973 level, an area of resistance yesterday, now up 3 points. keep in mind, less than 1% away of the all-time high of 1991 and change. nasdaq yesterday after closing at the best levels since march of 2000, extending gains

modestly at 6 points. broad based gains with the exception of drug stocks which are weaker. as i mentioned, it's data and earnings driving the markets in early going, specifically the data received on housing today, that being housing starts better than expected, second piece of good housing news received this week, and watch thursday because then we get existing home sales. as a result, the home builders' index continues the strong move off the year lows in july, extending those gains today. it is also spilled over, of course, into the home improvement space with home depot comes out with better than expected results, trading an al a all-time high, and lowe's catching a bid from the news of home depot and lumber liquidators. they are performing well in the wake of the data released today. all higher across the board. the other group today is retail, not just home depot, but tjx with better than expected results, and dick's sporting goods, saw weakness in golf and

hunting areas, the strong sales in the rest of the units, and as a result, the stock up over 5%. urban outfiters in line with expectations. the same story here, weakness in the brand -- its -- i should say primary brand, urban outfitters, anthropology, and free people doing better, but the company in line with expectations and share's up 3%. elizabeth arden the loser, a loss for the quarter, celebrity fragrance sales down. we want to point out crude oil, a headline crossed about the iraqi-kurdish independent pipeline expected to be fully operational, i guess, by the end of the month with improvements that had taken some production offline, and as a result, we saw a pull back and crude ticked higher since then. david, back to you. >> thank you very much, mary thompson. big over bid yesterday, vacation day, joined you on the

phone to talk dollar general's decision to blatantly enter the bidding for family dollar, acquired a deal with dollar tree, and cashed in at 74.50 a share. family dollar's boards is going to be the central place to look for the next chapter here weighing the 78.50 all cash bid from dollar general, and what is it going to do here? simply accept it? will it not accept it? well, what will it be focused on if, in fact, it says it does not believe it's in the best interest of shareholders to move ahead with a general dollar bid. despite the economics, it's $4 high their the existing bid. people close to the situation is the board will meet this week. that could change, but the expectation is they will meet this week. from what i'm hearing, you can expect they'll reject the dollar general bid. where will they center

rejection? my sense would be on any trust concerns. >> oh, you really go there? >> oh, i know. >> because of the overlap? >> i know they'll go there. >> so smart. the "new york times" will be in favor of the dollar tree bid. i'm not kidding. >> well, i don't know about that. >> i'm saying this is a liberal-conservative issue. >> really? >> yes, because there is an element that says if you cut the world down to two dollar stores, poor people will be doing badly. i have to agree with this, by the way. >> they were looking at this antitrust argument at family dollar. remember, they've been in not sell mode, awe activist in the shares in 2011, and garden got on the board from pelts, and icahn showed up years later, but they thought about it for quite some time. lord knows how many times we discussed. >> because they closed all the bad ones. >> when you go to the dollar tree, take a look.

by the way, this was before dollar tree showed up, all right? before dollar tree had jp morgan call, and say, hey, we're interested in working something here. they had an economy consultant to conduct analysis from antitrust per speck tis, potential business conversations. what do you think they were thinking about? had to be dollar general. >> definitely. >> on the ninth, company a is dollar general, to say they discussed antitrust law. >> where did you get this? >> i read the background. antitrust law perspectives between the two companies. company a said they preferred just a discussion. dollar tree by june was in the mix going back and forth with family dollar about proposals, and finally, of course, on june 19 th, family dollar's ceo made with company a's ceo, who will stay on if the deal goes through, to learn the extent of interest, and company a said,

not interested right now. >> what was that? >> that was the 19 th of june, announced the intent to retire in may of next year, now said he'll be on if, in fact, the deal goes ahead, but antitrust is the key. they offered to divest 700 stores, jim. there's a belief, seems to me, family dollar's board and the consultant that it's going to take a lot more than 7 00 stores to make them feel good about signing on to a general dollar transaction. >> to be clear, not doing a liberal-conservative, but there's a concentration of stores that are very similar, family dollar, dollar general, where you can really eliminate what would be a lot of price competition. dollar tree does not have the same kind of merchandise. >> right. >> it's important to recognize that family dollar, i mean, the family dollar has a great case to make, the dollar tree, family dollar, would not hurt the

underclass in the country. that's where they shop, and that's -- these are not amazonable stores with the price point so low. >> eventually, the deal will get done in some way, in some fashion. >> definitely. >> with the addressing of the antitrust concerns. let's go to cme in chicago. >> good morning, david. intraday of ten year note that exactly at 8:30 eastern is when we made the high ye of the session at 238. why is that significant? because we have pretty decent starts and permits. now, of course, existing home sales yet to come out this week. might be the swath of the housing market to pay attention to and dynamic of multidwelling versus single family. end of chart in may, so many things jump out at you. first should be 345 above us is the key the market, and the

break, how orderly is this? you want a filter for interest rates? the filter is the clotse, closig yields, you find ten closes in a row under 250. no violations above it. now we're working on the third close under 240. treasury markets easy if you take out the white noise. look at other interest rates, bund in particular, intraday slipped under 1% briefly, the 0 20-year chart never traded at please levels before. pound against the dollar. they had inflation, less elevated on the core in year over year, similar to our numbers, a bit under 2%, but they have a litmus test of tightening. so the pound was hit hard. biggest chart, lowest levels since april. euro against the dollar, fresh lows since september of last year. david, all yours. >> time for a trip. europe.

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former microsoft's ceo, steve ballmer, introduced the l.a. clippers the only way he could. ballmer entered the arena to lose yourself," and he got the rally going. listen. >> yes, i do live in seattle. no, no -- woah! we can all love seattle. there's no team there. we're not moving the clippers to seattle.

for a hundred reasons, but i think i got the one people understood is we bought l.a. beach front, not seattle breach front. >> that's your buddy from college. >> i love him. >> not shying away from overpaying, perhaps whether it's skype, nokia, or a number of things throughout the years. >> i talked to a number of nfl owners, and many felt it's peaked because it's on every night, what's the worth of the franchise? all they say is two words, steve ballmer. changed the equation of how much a team is worth. including even teams that looked horrible like last night's redskins and cleveland browns, one of the worst preseason games i've seen, but football business is higher because of how much ballmer overpaid for a franchise no one felt was worth anything near this level. >> i know. >> steve, nokia and clippers.

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trading. interesting metrics from the home dee toe conference call with implications for other names. >> yes. this is 10th anniversary of google. frank blake, the on the call carol, a terrific ceo, says print will be less than 10% this year of the advertising. we all had home depot inserts, right? 36% from digital. 36%. that means facebook, go buy facebook -- no, that's terrible, google too, may mean twitter, but this company is forward looking. homedepot.com is terrific. yoo i've used them, it's dynamite. i used it for my inn. this is it. this is the tipping point. >> the tipping point. >> 36%. >> print coming down, only going up, a great point to make. >> piece of data. >> important theme we know on the 10-year anniversary. google is interesting. >> home depot is transparent. they tell you everything. it's incredible.

this piece of data they are doing 36% of total advertising on line, bingo, there you go, the twilight of the idols, of even maybe what we do. >> don't say that. >> sorry. >> what's coming up? what's on "mad money"? >> all energy, all energy. i have wpx, and rick muncrief, the driving force for resources, and john schiler, disappointing stock. i did my show from the platform of of the gulf of mexico, and there we found out what's going wrong with wpx, what's going right, and remember onshore is doing so much better than offshore. >> as i said so many times, learn an incredible amount watching your coverage on energy. >> thank you. coming up, u.s. consumer and rest of retail reporting later in the week. [ intercom ] drivers, to your marks.

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stocks extending the rallies, nasdaq opening at a 14-year high for the a second day in the road, where you should be putting your money right now. >> plus, home dee poet getting a

big boost thanks to second quarter earnings, headlines from the conference call. >> google celebrates ten years as a public company. get the story behind the company's success with the author of "the google story." >> up 39.son the dow, market's continuing a nice rally. remember clocked 17 5 higher yesterday helped by perceived easing of tensions in russia and ukraine. geopolitics and strong u.s. housing report pushed treasuries to session lows, and yield at 2.38. we'll come back to that. jack is executive vice president and cio of vemo private bank, and the portfolio manage with lumis sales, gentlemen, good morning. >> morning. >> morning. >> jack how far can the mark go, do you think? >> you know, i think upside is probably single digits just because we need valuations to keep pace. you know, if we get a second

boost from the economy and earnings and revenues catch up, we can go higher, but i think -- >> so when you say "single digits," what do you mean? the next 12 months, percentages, or talking about points? >> i'm saying in the next 12 months, you know, year end, next 12 months, that kind of thing. you know, over the near term, the thing is we're going to need some kind of leg, a catalyst, and it's going to have to eventually come from valuation and fundamentals, and right now, you know, we have a lot of liquidity, and that i'm starting to see some evidence. in fact, i want to hear dan weigh in on this, starting to secret spreads wideen here even while stocks rise suggesting that liquidity is pulling back a little bit, and that's a concern for me. >> dan? dan, what do you think? >> i agree with the liquidity pulling back, big time. and part of that is seasonal here, people on vacation, but part of it also is really

structural. there is on the fixed income side, liquidity in the middle of the market because of the changes. >> so on tight liquidity, small volumes, you move the market down. somebody said over the weekend about the ten year, look, don't worry about the ten year or where you are on yields at the moment. people have blood on their hands from trying to be preemptive on a rally of yields for three years, and at this stage, it's just basically mispriced. would you agree with that? would the yields on the ten year or send a powerful signal? >> well, i think the signal it's sending is here for the last year the game changed for the world's central banks, not just their own, due to the stress in the geopolitical side, and starting late last year, the first signal of this was the

bank of japan with their currency swap line with every country, and then as you watch central bank activity since then and look at the front page of the papers, you get the sense that while in addition to everything else had central banks normally look at, they have to be very, very concerned with the geopolitical side, particularly in eastern europe and in the pacific. >> jack, what seems to be holding us back is wages, price pressures, we're just not seeing it as evidenced by the data. how do we have an economy growing 4%, interest streak of job creation since the mid-1990s, and no inflation? >> yeah, i mean, it is incredible. the fact is, i would have expected some inflation by now, but what we've seen is that, you know, that $3.5 trillion created by the fed is winding up on banks' balance sheets, great for capital ratios, but not lent out

to the extent that normal recovery would suggest saying that's part of the reason why inflation's lagging. some of it is because of the renaissance of banks, and other is demand for borrowed money. we had a debt crisis in 2008, and, you know, borrowers are reluctant to take on more credit. >> we are dancing around the subject, jack. bottom line it for me, if you would. if you think the equity market rices only a few percent over the next year, what's the advice to those watching now? >> sure. stay in for now, but watch the two critical measures that i'm watching are liquidity levels, notably credit spreads, and that's why, you know, it is a concern. >> okay. >> considering that they are widening while the market is rising, and also momentum. >> okay. what is your central advice to people watching you now? >> oh, patience. you can't -- i mean, the world's a very uncertain place right now. it's playing out in the market,

and i don't see any major moves here at all. there is slight upward pressure on rates in the u.s., but not elsewhere in the world. >> that's true. >> guys, thank you. dan and jack. >> let's go to dom chu for a market flash. >> the mining giant is moving lower in the trade today, the mining company plans to spin off $16 billion worth of assets to shareholders in a form of a new company, but disappointed some without announcing a share buyback. the stock is down 3% on the day's trade. back over to you. >> all right, thank you very much. another mover up next, home depot trading higher after second quarter results beat the street. the company's conference call about ending now. we'll get you the headlines from that, also talk to the analyst straight off the call about what the company's ceo had to say, and whether it's not too late to buy the stock.

home depot shares are jumping on a big second quarter beat thanks to strong seasonal sales. we are back at hq with more. what did they say on the conference call? >> retailers lagging, but don't count the home store as part of

the problem. consumers are not buying clothing, but are buying home improvement merchandise. home depot beat top and bottom lines, sales gaining 6.4%, and upped the previous full year guidance by 10 cents to 4.52, 11 cents above what the street expected. traffic and transactions up more than 4 %. in fact, record number of transactions for home depot. they are metrics notably stronger than what many other retailers have born able to accomplish, and many say, look, the market is behind when it comes to rewarding shares for two years of strength. credit swiss agrees saying, wall street does not get it. investors may be making up for lost time, and shares trading at all-time highs, there's areas of strength, including the core of the store, large appliances, higher cost pro, and seasonal merchandise and home exterior goods. executives say they are most concerned about mortgage

financing availability. where there are bright spots in the housing market and home depot has been a beneficiary, it is certainly not blemish free. >> thank you very much, and we'll pick up where you left a off with peter keith, just off the conference call. peter, what did you learn about the call, any additional color to bring us from home depot? >> well, as courtney said, it was a solid quarter above expectations. what was nice it was strength across the board, and that would be in terms of geography, across categories, and i think it really just well defines the strength of the management team and power of solid execution. >> does that make you think? numbers show 5.8 % comps, do you believe home depot can handle a bumpy housing recovery with this execution? >> would not be immune to a slow down, but when you look at the strength across categories,

you're still doing a lot of work inside the store to optimize the space. you look at a category like appliances they sold for years, and that was up double digits in the second quarter. what i look for is continued out performance. the overall housing space. >> i'm sure it raises the bar for lows out with results tomorrow. >> absolutely. yeah. i mean, there's clearly been some historic differences between execution with home depot and lowe's. i think investors will be optimistic if there was a weather bounceback for lowe's in the second quarter, but tomorrow morning will be interesting as th might show if the home depot team well executed. >> i love the home depot, and what concerns me is the stock price has not done well over the last year when all is said and done with the rally on the broader market, with the recovery in housing, however strong that might be, the call is what here for the stock? 97. what's the catalyst to drive us $10 higher? >> sure.

it's a great question. i share the views on being a home depot shopper. i think that there's been some concern about housing metrics slowing for the last 12 months, which is fair. housing turns over slow, and you've seen the multiple compress. not seen earnings come down, and estimates animal have gone up. as we look forward, you'll see the housing turnover numbers stabilize, and i think you'll see the investors begin to come back to home depot rewarding the company for the solid execution and strong management. >> is it all about new homes? i mean, don't most of us go to home depot when we remodel our own home without buying a new one? >> that's right. when you look at the housing turnover number, it's about 4 or 5% of total homes in the country. really, the large majority of what drives home depot's business is nonmover remodelling, and as long as home prices go up, that's the key growth engine to the business. the housing turnover slows a few points here and there, but the home price depreciation is the main metric we look at.

>> investors are curious to see how fast the online business is growing. home depot has taken a number of initiatives to increase that. is that bearing fruit? last count, it was 3 to 4% of overall sales. >> sure, that's another great example of what we view as really a gold standard in management execution. it's a small percentage of sales, probably always be small given this industry, doesn't lend itself to online shipments, but it's growing 40 to 50%. i think this quarter it grew 38%, and it's contributing a hundred basis points to the same-store sales. the growth is there, small, but there's impact. ? did we learn anything about the underlying strength in the housing market or in consumer spending? home depot fits in with both macro theme, and both have been uncertain. >> sure. i think where home depot, and we have a lot of respect for their view on the housing market, the industry in general is trending in line with the company's

expectations. turnover here is now beginning to stabilize, and home price appreciation slowed, but still up. the key point today is that consumer spending overall looked choppy when you look at the retail sales results across the earnings announcements, and the fact these guys put up nice same store sales growth, consumers are putting money back into the home, and that continues through the end of the year. >> good construction numbers in the housing market as well. peter keith, thank you for joining us. $97 price target on home depot. up next, an exclose uf with maria sharapova, building her business off the coast, and four-time champion, rory mcilroy says golf will survive. we'll be right back.

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the u.s. open kicks off in new york next week, but maria sharapova has her mind on business outside the court. we have the popup store in midtown manhattan, and we have the success of her candy business. >> we're very happy with the sales. we've been in over 26 markets in the world with exclusive distribution deals, unique after being on the market for only two years. we still kept it minimal, and, you know, very unique too because when i started this, i wanted this to be a very unique project and something different than what the market has seen in the gummy world, and we created

that, and that's created this reaction. i've been able to experience a lot of different unique things in my career, and i learned so much from each and every one is a process. you meet different people that are experts in their feels, and i've learned an incredible amount i've been able to bring to sugarpova even though i don't know half the business, but i learn so much from the people in the candy industry, but overall, it's still having a lot of passion for my sport and what i do, but off the court, being able to enjoy different ventures. >> sharapova, of course, the highest paid female athlete in the world, estimated $29 billion last year, $23 million from endorsements. you were transfixed by that. >> i've seen her play at the u.s. open, and she's a great player. >> strong player. >> she is. >> very well spoken. i noted how there's not a trace of a russian accent. interesting. >> she's, according to the

interview with "self" magazine, she has soup for lunch. >> i've had that candy, it's amazing what kind of business empire she has while playing tennis. >> nothing wrong about a tennis star promoting candy? >> no. she's in skin care lines, endorsement deals, but sticking with sports. tiger woods and mcilroy unveiled nike's latest line of irons, vapor franchise and speak on the state of the golf industry. chu sat down with the number one golfer in the road, mciroy, must have been a good deal for you. >> it was. he has an irish accent, and it's still there, a charming one. he's the man of the hour, a man with a hot hand, and when he talks about the game of golf, there's no secret it's been in a secular decline, if you will, from dick's sporting goods saying the sports industry, the sales, down, and weighing on some of the stocks in the marketings but rory mcilroy

spoke on what he sees as the future of golf and when he thinks his role in the game will be. take a listen. >> people that are playing the game, the numbers are slightly down on that, and whether that's just because of the demands of the modern world, modern life, people not having time to play 18 holes of golf, golf is a great game, and, you know, it's a game that i think people still want to be involved with, and do i feel i have a responsibility? in some way, yes. i feel, especially kids, can be inspired by not just what i do on the course, but i was inspired by tiger woods, and these young kids might be inspired by me or rickey fowler, the young guys coming up. we have some responsibility in bringing the younger generation into the game, but i feel like the game of golf will survive. >> you are the golfer of the moment. you got the hot land. how does a golfer like you keep that going? what are you doing personally to

make sure you have the longevity to make that career in golf one of the great ones in history? >> i mean, i'm not -- i'm not thinking ten, 15, 20 years down the line, but thinking the next week. taking this week by week. i had a great run so far, and i want to keep that going. you know, i've -- you know, i've played great golf over the last few years, got the four major championships, but i just want to keep the stretch of golf going as long as i can, and there's no point in me trying to think five, ten, 15 years down the line because i don't know what's going to happen next week. i just try to make the most of every week i have and go from there. >> now, like you guys know, nike golf is a small portion of nike's overall sales. still, nike golf's leveraging of big personally like rory and woods is carrying across the lineup.

this series is pinnacle for nike, and they have taken it to the golf side of the business. back over to you guys. >> why don't young kids watch golf? why not as popular as it used to be? because tiger is injured and not as good as he used to be? >> no, i don't think it's that way at all. rory spoke to that want maybe this young generation can want squeeze so much in a busy day, like a six hour round of weekend golf. >> golf is played, by middle-aged, slightly overweight white guys. that does not appeal. >> rory is not middle-aged. >> or dom. >> and sharapova, you know, there's a different demographic, surely. >> it's a different demographic, but that does not explain when woods was in the hot streak, the game of golf hit all-time highs in popularity. >> he was the hero, for sure. >> you sure? >> you've seen that in the sale

of adidas, and across the country. >> right. adidas had great years for golf. taylor made -- part of that tha group did. they are seeing sales on the decline, but there's no secret. i mean, golf is hitting a rough patch right now, but if you look at the way the pga championship played out this past week, right? cbs said their ratings went up 36% from the last year, and we're at a five-year high. you need a good amount of protagonist main characters, guys, to get people interested in golf again. >> protagonists. maybe you can do it with mciroy. thank you for the conversation. do you watch golf, david? >> i don't watch or play because it's hard and takes a long time. >> your career would be better if you did play, though. >> that actually is true. that is true. another topic, bitcoin hitting the lowest value since may. are new regulations on the

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a look at what's moving. here's what we are watching. retailers are certainly on the move, some of the biggest today, urban outfitter, t.j. maxx, david, had a nice quarter. i continue -- i mean, this is a stand out in the retail word, not just among department stores slumping, but among the competitors, filings basement, they all went under. >> to be fair, t.j. has not had a great year, and there was a lot of disappointments so coming into the quarter, expectations were not overly high, but they did a good job beating those, and therefore, the stock is rebounding, but down overall for the year. >> and outperformed, aeropostal has new ceo. >> lack of talent in retail, having to go backwards. >> yeah. >> just that the old guy gets it and the new guy doesn't on some of these businesses? >> or they come in to clean up the mess, i guess.

jcpenney, proctor and gamble as well. there's a glut. >> great talent leaves the company rs but there's a small circle of people whom others believe are the only ones. >> maybe it's stability. this is the guy that built aeropostal to what it was, you know, now -- i don't know. we're also watching afterle, we should say. i guess -- actually not far from a hundred dollars a share after the stock split. i guess middle of september is when we'll get the new iphone launch. might be the point which you decide buy heading into the fourth quarter. correct me if i'm wrong. >> yes, leading up to it. the stock tends to peak before the launch, but a lot of enthusiasm and momentum into the big launches, the sapphire glass, everyone's talking about, the harder glass that does not break, giving momentum and enthusiasm and people are due for the product refreshes,

upgrade to the new model. shares of elizabeth arden on the move. disappointing results, the celebrity fragrances not selling like they used to, down 25% right now. just closed a stake from roan capital, not doing much to lift shares. arden trying to get back to profit the to cut costs and all sorts of things, but could be taking several quarters. >> sharapova selling candy. >> the business valued more highhig highly than arden. shares of sprint down yet again today. that stock has been in nothing short of a freefall, of course, since the potential deal that we talked about endlessly for over a year to merge with t-mobile, fell apart when they said, you know, we're not going to get there in terms of rial believing we have what we need to get the sign off from any trust

regulato regulators. sprint shares owned by soft bank, and today's news, of course, a new pricing plan, not pricing lines, but data, and they are doing so at a much more favorable rate than the competitors, but they have to because of their network not in good shape as at&t and verizon. this may go to the point made by the fcc and commissioner wheeler when he really made many of us believe i'm not going to allow the deal to happen, that being t-mobile and sprint because we need competition. they have been aggressive on the competition, and sprint entering that with a new ceo a couple weeks ago. >> which price is better, sprint or t-mobile? >> well, ledger -- do we have the tweet from earlier? i don't know if we have it. been extraordinarily aggressive in terms of pricing. the sprint plan's interesting, offered to those who would move from their current carrier. if you're a current customer,

it's not available to you as of yet. >> a hundred dollars for a good amount of data and up to ten lines. >> i can no longer operate on a cnbc smart phone. i need my own. what's the cheapest plan for that. >> >> i don't know. ledger says go with him, new day for data, but a new day for [ bleep ]. >> not good coverage there? >> hashtag "sprint like hell." woah. >> he's not one to have a lack of words. >> you get better service with verizon. >> the cap dwarves the other two, hence the idea to gain real scale you need a merger at some point, some day of t-mobile and sprint. >> that said, it's impossible to actually drive in a car on the west side highway and maintain an at&t line all the way up.

you still drop. >> i don't drop on verizon. >> a man like you should have no concern about price, however, simon, just network quality to drive your decision. >> only the best. >> good point. >> can i mention -- >> you have a plan, i expect. i'll let you know the highest rate to offer you the best service. >> thank you so much. bitcopy, waiting all morning to talk about it, falling sharply in recent weeks. there was a flash crash in bitcoin everybody talked about that happened yesterday where the price dropped 12% on one exchange. zoom out, remarkable, the stability. the price has fallen over the last few months, i mean, levels at 500, and the reason we have not been talking about it because it's remarkably stable. >> moved by 20% peak to trough in one week, and that's stable? >> stable if you're an investor in bitcoin, you've come to

expect this. >> investor in bitcoin? >> it's not a wildly popular investment, but it is attracting more. >> you'd be better -- you'd be more certain of getting 50% on a roulette wheel red or black. >> it's not true. regulators looking into it, and some say that's why the price is under pressure. bit licenses announced here in new york. >> the superintendent here. >> and there's others. >> you see the fact he's doing a license as, woah, must be safe then. what he's saying, well, i'll put checks in to get us to stay j. it's not, you know. it's not an endorsement. >> trying to make it safer as it's popular. overstock telling rioters they sell 2 million in sales since january. it is bursting more in the mainstream. it needs regulation. >> they can't hold it, they can convert it into dollars instantly.

>> the point is it's attracting users and shoppers. we can fight about this as long as you want. >> that's why you were excited to mention it. in new york, hyatt unveiling the global flag ship for the luxury hotel brand taking up the first 25 floors of the apartment building in central park, the park haytt charges $9 00 a night, the largest on the market. mongs other giants selling hotels to return extra cash to shareholders, hyatt, controlled, paid $390 million in cash to buy this hotel. that's $1.8 million a room, which i'm told is an industry record. now, landmark international trophy hotels tend to be marketed to rich foreigners or sovereign wealth funds. here, too, it's widely reported now that the sultan of brunei may buy the plaza hotel from a jailed billionaire in india raising cash to post his own

bill. the sultan's other property is the beverly hills hotel which leno protested of instructing strict sharia law. he might buy the downtown dream hotel. you know, construction work in the apartment, i had to stay at the dream for a full week. it is a nightclub hotel. people are screaming down the corridors at 2:00 or 4:00 in the morning. >> i thought you would say the dream was a nightmare. >> i enjoy it -- >> it was a nightmare for me at a bachelorette party, not a good experience there. >> a hotel owned by a man who institutes strict sharia law? >> $900 for the park? >> on average, goes up to $1300, but there are big suites. >> hotel rates in new york are high, aren't they? average price of the room is not

-- >> what's interesting luxury was the first to rebound, saw that out of the crisis, and more recently, because it made gains, it's not grown as rapidly in average revenue per room as some of the lesser categories, david, in answer to the question. >> right. on 57th street? the 157 building? >> i believe so. >> a lot of artwork in there. >> apparently, the pool is magnificent. >> i'll have to check it out. >> have not been invited to the opening party. >> one can always hope, simon. one is always hope. this was the scene ten years ago after google went public. the man who literally wrote the book on google up next. drivers, to your marks.nte] go! [ male announcer ] it's chaos out there. but the m-class sees in your blind spot... ♪ ...pulls you back into your lane... ♪

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ask your doctor about cialis for daily use with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile. welcome back to "squawk on the street," shares of american expre express, one of the leading gainers on the dow jones industrial average this morning,

upgraded from neutral to under perform based on valuation. it's down 6%, and you see the shares up now by 1 % on today's trade. back to you. >> thank you very much. a soaring share price, every deeper bench, and as barry diller put it, the ability to vacuum up money. it's been a hugely successful decade for google since going public ten years ago today, but after a search, google glass, and now what will google look like ten years from now? on the cnbc news line, author of "the google story" from 2005, senior adviser at new mountain capital. a good question, david, given there's so much going on when it comes to new projects, fancy projects. what is the vision of google from google's eyes in the next ten years? >> well, google's vision is to organize all world's information and make it universally accessible, and that means, as you look to the future, you'll

see google with the operating system that will be using in cars, it'll be providing information there. you're going to to see google doing a mammoth job in health care where it'll be possible to google all aspects of your own personal health and your jeegen and be able to see google in places that you can't even imagine today, and if you look back ten years, who could have predicted that google would go from 2000 to 52,000 employees. that google would go from 0 to be the third most valuable company at $400 billion behind only exxon and apple, and that google would go to, this is a remarkable figure, 1 trillion clicks per year.

>> 1 trillion clicks per year. well, david, you wrote the book not long after the company went public. i'm curious having assumed watching the dissent over nine years since your book came out, what surprised you the most? >> well, what surprised me the most is how well google stuck to the original mission and how carefully the company has cau t cultivated and kept its culture in tact. i mean, you have to go back to the beginning to recognize that you had two cofounders who met at stanford, and they invented the search enjoin, google, not to make money. they did it to please themselves. they were unhappy with the quality of internet search, so they went to the professor at stanford saying we're going to download the interpret so we can search it better. the professor laughed at them. they did it. they built a better search engine, and they wanted to stay

in school. they were reluctant entrepreneurs. they wanted to continue to get their ph.d.s, and the licensing went out, the microsoft, digital equipment to yahoo! anybody could have picked up the google search engine they invented for a few hundred thousand dollars at most. nobody gave them a dime for it. all said search doesn't matter. >> it is an amazing business story. my question would be for how long they can maintain the position they have when they become really a less neutral arbiter of the internet day by day. you know, promoting their own content, their own listings, prioritizing those that paid more to get a better space on the page. i mean, for example, in the journal today, there's a story about how their vepture capital arm invested a huge amount in uber. go on google maps, you get an

uber connection where you are. they do not pay for that, but they made the connection, and it's to the detriment of lyft who are not listed at all. what does that say about people's willingness to use it? >> it's an outstanding question, and it goes to the heart of the biggest risks facing google, which is potentially arrogance. when you grow to be as big and powerful as google is, your biggest enemy can be yourself because you can throw your weight around too much if you're not careful, and if they go too far in that direction, they will use users because they are not giving relevant search results and lose advertisers as well. in a way, it's a self- -- it could be a self-correcting mechanism if they stay focused enough on user and focus enough on advertisers. despite complaints like that,

they cleared regulators for all they are doing, continue to be the subject of it in europe, but the key that you hit on there is that when you become big and powerful, you throw your weight around, you got to be careful because we know what happened to at&t. they got broke up as a mo notary public ply. we know what happened to microsoft. they hit an antitrust investigation. the biggest risk to google is that google, ewe knyou know, flo close to the sun and crashes because it did not check itself in having a laser-like focus on user, and laser-like focus on advertisers, so, you know, you're right on the correct question. they've got to be very careful treading on that water. >> we'll leave it there, david vise, valuable to have you on this anniversary, author of "the google story." >> i have a quick secret.

>> quickly, please. >> sergey and larry have a secret pact, agreed to stay with the company for 20 years, larry paige is the ceo. sergey does his thing, we're in year 16, stay tuned to see whether they stay with the company four years from now. >> they told this to you? how did you learn this? >> in the course of the research for "the google story," they agreed 20 years they would be there. and i was told this by people very, very close to the it two of them, and what we've seen is larry paige is the ceo, calling the shots at the company, and that sergey drifted from the core of anything involve the with day-to-day management, but more on the creative and idea side, and a really interesting question will be whether four years from now -- i'm confident larry page will be the ceo and

stay in that job, and the question is, will sergey remain there as well? and, yes, i learned that, you know, i learned that from the heart of google. >> wow, well, thank you for sharing that with us. investors would be interested to learn that as well. david vise, author of "the google story." >> a lot of people make promises or partnerships that do not last, let's not forget that. >> 16 years from 1998 meaning four more years. it's a question. hey, remember this yesterday? how could we forget? i could not. >> you enjoyed it, i thought. >> too much, right? >> yes. >> simon took on the challenge, and they are responding. we'll show you the ice bucket challenges a little later. we're back after a quick break. [ woman ] the cadillac summer collection is here. ♪

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show, rick. >> already. inflation data today and a couple of things i noticed. the first is that headline year over year now, fourth month in a row where it's at our higher than 2%. any thoughts on the cpi data today, rich? >> well, sure, rick. i mean, look at the cpi data a few areas where inflation's been coming from. health care expenditure up, costs up. 2.6% year over year. energy costs while coming down, up 2.6% year over year as well. interesting, as you see housing up pretty much the same amount. as you say some ports of data inflation picking up other parts are going down. like apair many, for instance. apparel prices dropping. seems the consumer will accept some inflation in some areas, but not accept it in others, and overall, even though cpi has been rising, it's starting to moderate about 2%. >> there was a time, rich, let

me interrupt you, when equity was the big thing. savings the big thing. >> now debt is the big thing. what do you see on the consumer side regarding debt? >> a great question, rick. we saw other data today. that's real wages. real wage growth is up 0% year over year. there is no wage growth on a year over year basis, when you inflation adjust. think about that. if the consumer is seeing prices increase in other areas of their bucket of spending, there's only one way to keep up, unless you cut back, and that is through debt. interesting over the past couple months you've seen a pickup in revolving credit growth now p. so it's not getting a raise, when somebody sends you a new credit card? that's the sense i get sometimes. stay on the earnings notion. so the fed's target level for inflation is arbitrary as it may be at 2%, maybe it should be 1%. are we doing the middle class any favors? look at the areas in the sectors doing well.

high-end real estate. high-end apparel. high-end collectibles. high-end cars. high-end hotels have come back, simon's been talking about. what about all the other areas? >> rick, i feel like i should just say amen to that. we've been on this tangent for a while. if the banks aren't going to have a run, if t.a.r.p. saved the banks, likes like it has, we don't see a reason whatsoever why you couldn't allow disinflation in the economy particularly to hil out seniors struggling with the inflationary pressures. >> we have to cut it there. the fed reserve system, 100 years old. tried to see how much inflation in the dollar since created. only 2285%. no big deal. thanks for showing up. back to you. >> the days of inflation, rick. coming up, a former apple executive as the stock nears $100 a share. we'll be right back. t i've mana.

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financial noise financial noise financial noise and we have returned to the scene of the crime here. yesterday, of course, i took the ice bucket challenge. i, in turn challenged priceline

ceo darin houston, march yote ceo and nick woodman and gopro responded. take a look. >> yesterday morning on cnbc "squawk" anger simon hobbs challenged me to the als ice bucket challenge. cnbc and simon, i accept. after i take the plunge, i get to make a few challenges of my own. i'm starting with my high school buddy and cnbc reporter josh lipton. after that -- shawn white. finally, what the hell. brad pitt. let's do this.

>> check that out nap is the ceo of gopro picking up the als chirty ice bucket challenge and brad pitt and josh lipton in the same sentence. so it rolls on. >> i like to think of josh lipton as our own version of brad pitt. >> many say that. may be getting priceline coming through on the kalg. done it in amsterdam. kelly evans, maybe able to put that on in your show. welcome to "squawk alley." >> yes, thank you. that gopro video will be hard to top. good morning. 8:00 a.m. at google headquarters in mountainview, california, where ten years ago today, along with the rest of the world, they were watching this. >> six, five, four, three, two, one -- [ cheers and applause ]