geico advertising more and aflac as well. do you have gazu? here's a quick gazu. decide for yourself. >> very nice. >> decide. that was harvey korman. >> we want to thank miles for being here today. >> pleasure to be here. >> come on back. join us tomorrow, "squawk on the street" begins right now. >> a lot of fun. ♪ canada canada ♪ ♪ it seems everything's gone wrong since canada came along♪ >> good monday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber is off. stocks up three straight weeks in a nice start to a new one on tap. s&p 2000 should be on your radar today, too. road map begins with flamed broiled doughnuts, burger king in talks to buy tim hortons and the canadian mailing address. the heated tax debate. a biotech company cramer's been recommending for months

gets $8.3 billion buyout. roach and intermun on the buyout? new all-time highs driven by the possibility of more stimulus in europe. just a few points shy of s&p 2000. first up, tax inversions in the spotlight, not talking about europe. burger king in talks to buy canadian coffee and doughnut chain timms. both companies say a combination would create the third largest quick service chain, a deal structured to shift burger king's base to canada, which has lower overall corporate tax than the united states but some thinking this morning is that taxes may not be the driving force on this one. >> look, i think that there's always going to be anytime, it's a hot button, especially walgreens not doing the alliance and president and treasure secretary saying we've got to stop these. this united states a deal that makes a lot of sense. burger king challenged at

breakfast, tim horton doing fath f fantastic. burger king's last few numbers, doing okay, they're not as bad as they used to but flattish comps. tim horton had great numbers last time. they had 5% comp, people looking for 1.4% comp. put these two together it makes sense both stocks are going higher. they need each other. too many players in the area. coffee is a strong segment. that's a good dovetail. tim horton trying to do lunch, somewhat unsuccessfully. stocks should go hire. >> it's not going to do anything to dissuade people burger king has been a financial engineering play, right? going private in 2010, public in a complicated deal a couple years ago. >> we've got 3g owning both. tim horton is a company, people have never been to canada, don't understand why they have 3,600 stores successful. you feel, you have dunkin' donuts.

we're overstored in the couldn't trip this is an overstored merger. take out some, put some together. look at dunkin' donuts, growth has slowed dramatically. mcdonald's growth has slowed. the only sector in that segment is natural and organic of which chipotle was 17%, doesn't need to do any of the deals. >> mick mcdonald's, looking at millennium, percentage of 19 to 21-year-olds go to mcdonald's once a month is down 13% in three years. >> amazing. people don't want to get sick. they don't want to get fat. they don't want to have diseases. what is with them? you know, there's a thing called the web. when you go on the web, it's incredible. you see what that food can do for you which is -- plus you have like endless pseudosoft propaganda movies that come out from chipotle which say, do not trust the food chain. the food chain is mcdonald's, like it or not. it's mcdonald's. this is a rebellion against the food chain, not so much that the

stuff doesn't taste good, boy, is it fabulous. >> speculation that a deal, "the times" says a burger king deal will come this week and structured to appease any regulatory pressure that might come upon them. >> when you have a real ka hcann company merging, why not in canada? if i were the canadian government, the canadians, pro-business, if tim hortons were to become an american company that would be a bigger deal than whatever the president might say about inversion. tim horton is rock solid canada. i said, wow, this is good coffee! it's like people go across the border. they like tim hortons, doughnuts pressure. this is a company not as challenged. it's just a great darn cup of coffee. >> absolutely. not the only deal today. roche has agreed to acquire u.s.

biotech firm, intermune, a 38% to the deal friday. expanding treat of respiratory disorders. a live interview with ceos of roche and on "squawk alley" at 11:00 a.m. you've got history with these guys. >> yeah. we had them on, we called dan walsh to come on, what he said, may 22nd we said, we here your company's for sale. three years ago you tried to sell. they've had billions of -- literally more than a billion in losses since 2005. >> take a listen to what they told you back in may. here is it. >> reuters article that came out in march of this year which says that that your company's attracted takeover interest and that's not that odd because several years ago you -- three years ago you thought about selling yourself and decided not to. is the latter story true?

>> well i wouldn't want to comment about that. we don't comment on speculation, jim. but what we're focused on right now is getting our documentation together. close to filing that documentation with the fda, getting it to them. they'll have six months to review it, and hopefully get the drug approved. >> they were referring to pulmonary fibrosis. >> a portfolio in a product. a love these companies they have one drug. allergen, botox, multiple uses. this drug is not just for this terrible disease that is five years progressive and people die from it. so this is one that the fda, whatever they see a fatal disease, they're going to approve if it works. this will get approval, could be $1 billion a year drug, ancillary things. the roche coo came out and said -- took my breath away -- this is a full-on acquisition. when i heard that, it men $200

million. this is $8.3 bolt on. this is where you have to be. now, ironically, because i think janet yellen's doing a very good job. >> here it comes. >> they came out and said that it's the -- this is where the -- this is where the overstretched valuations are, in the meantime if you're roach, you're sitting there with an oncology franchise, trying to expand. here is intermune, a drug, could be life saving, 100,000 suffers in this country, another 100,000 overseas, buy for $8 been, a new product line, you have a sales force for pulmonarpulmonary. look at all of the companies that are $1 billion that could be bolt on, a year and a half, two years from now. let's not rule out pfizer coming back again. but i have to tell you, these companies need to do deals as stra accideas stra denny ka --

>> the roche deal makes sense. not blinded by the wave of m&a, right? >> no. you're a drug company. you have to have growth. look at gglaxo. burger king teams up with tim horton, you take out competitors. this i dollar tree/family dollar. overstored, over retailed, overrestauranted, big pharma companies don't have enough drugs. gill add goes up every day, since the pill they reported that stock's gone from 89 to 104 quietly, probably right to 120, valued at the same price as merck. drug companies that are challenged to grow. restaurants challenged to grow. retail challenged to grow. what do you do? buy. you any burger king's down? it's up. a no-growth company has great growth. >> speaking of the challenges to growth, s&p poised to open at new all-time highs marching

closer to 2000 after gains. u.s. futures taking cues from european markets on the rise on the hopes of more stimulus from the ecba the friday speech by drag draghi. you were making the point -- >> easy to focus on yellen. yellen's visible, fed chief, new. draghi kind of basically said, we're still not doing enough. now they've got this ukraine headwind, germany has been sticking by the notion of austerity. why? low unemployment, in great shape. i see rebellion among the ecb. i see the french -- we can't keep going with this. germany's saying, look what spain did. spain got -- they fired a lot of people, tightened their belt, now they've got growth. but they don't have employment. french want employment. it's difficult for the germans to say we're going to block the russians, even if it hurts our economy, when other countries really bad growth and they've

got to get the economy going. that's -- we're up, you woke up, you thought maybe ukraine, maybe it's calmed down but the russians will send another convoy, thanks a lot, russia. things are heated up. parading prisoners, doesn't matter. france is saying this is bringing our economy down. germany relent. a rebellion against girmermany l mean more qe-2, thinking the fed will have low interest rates which means more burger kings, more tim hortons. >> does s&p 2000 bring in selling or buying? >> i think everything brings in selling. all we ever do is talk about it's about to end. >> yeah. we're always -- you know, the cheap thing to say, since november 20 1 correction ended, posted the downgrade of -- the s&p groudowngraded the chic thio say -- delivering alpha, smart guys saying the fed's going to

pull it. think back to who got it right, temper, said the downdraft because europe has not done enough, draghi goes, puts the pedal to the metal. temper's not involved with the dichotomy we're being do reckless, too tight. he's involved with trying to make money. i use hims a paradigm. what he's saying, look, i'm not going to get focused on the debate about the fed. i'm going to make you money. great philosophy. >> yeah, absolutely. coming out of jackson hole, the likes of lockhart saying, we're in a fierce debate about whether the risks of doing too much outweigh the risks of doing too little or vice verse sap you're saying there's a different play than the classic debate? >> you're being paid to be any general mills and clorox -- i like both ceos -- interest rates -- >> below 2. 4. >> remember, the whole consensus, everywhere you go,

rates about to go to 3%, that hasn't happened. we're in that debate. as long as the debate goes on, you have stocks that have good, steady yields with dividends going up, so much corporate cash, and then deals. and they are no longer needles in a hey stack. we can't say intermune and tim heart hortons -- there's a hey stack filled with deals. ow, i thought there wasn't anything in there. >> don't sit on the haystack. >> any moment yellen can change their mind. they're think, we've got it sell more doughnuts, get out of my face. >> not one for fed debates. >> i'm tim horton coffee versus mcdonald's coffee and dunkin' donuts. >> staples co-founder and former ceo tom stemberg, back-to-school shopping season heads into the homestretch. california's wine country

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. . california's wine country cleaning up after the largest earthquake to rock the bay area in 25 years struck yesterday morning. josh lipton in napa valley with the latest. good morning. >> good morning.

yeah, you guys can take a look at this building behind me. this was actually the oldest commercial building in napa. it was a brewery, it was a saloon. now it's actually one of 33 buildings the city has red tagged as unsafe. that's the biggest earthquake in 25 years hit this area. now, as we go through here, what you'll see is a few photoize want to show you, one from my producer got this one, moment time stopped here in napa. he caught this photo of a clock in a gallery window. you'll see 3:20 a.m. that's when the quake hit and the earthquake started rolling. just one of the many images we're seeing in the 24 hours since the quake did hit. feeling aftershocks here, last one i felt around 7:30 p.m. last night. despite that, though, city officials, they are out in force because they want people to know that napa is still very much open for business. >> most of the valley's operating as normal. i've been getting a lot of calls

from people from outside the area planning on copping here that were worried about it for fear that this is some kind of a disaster area which means they can't come here and enjoy the valley. the damage is in isolated locations, the issues are significant. but we're on it. it's getting better. i think it's going -- the conditions will be vastly improved over the next few days. >> reporter: now, inspectors are going to be out again this morning doing damage assessments, looking at structural damage, what they need to do next. we also did see local kids, carl, making use in their own way of the damage. we saw young skaters actually using busted up road as a kind of skate ramp. we're going to be here all morning, all day bringing you news and headlines as they cross. carl, back to you. >> thanks for that. we'll keep an eye on aftershocks, jim. the wine industry for napa

county $13 billion in revenue. >> you see the label that come tumbling down. they're the ones you're paying 90, 100, 120, who knows? but, yeah, i mean this is a great destination. anyone that's been on the trips know that this is a national treasure. i think that, wow, it seems like it's only injuries. >> thousands without power, though, as josh mentioned. >> people think about collectibles. unbelievable. >> wine? >> unbelievable. >> yeah. >> it's an asset, no doubt about that. when we come back, cramer's "mad dash," count down toward the opening bell and interviews with ceos of roche and intermune on the deal announced this weekend. take a look at premarket. s&p 2000 in our sights. more "squawk on the street" straight ahead.

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♪ ♪ just about nine minutes to the opening bell. cramer's "mad dash "as head of that. watching goldman. >> goldman naming partners, wow, harder times ahead? think about that lloyd blankfein is driven by the profit motive, fewer partners, more money for everybody else, including shareholders. i think, by the way, goldman trying to rationalize its workforce. took away a lot of what had been goldman's fixed income business. some other businesses doing great. merger and acquisitions doing great. smart move. i think goldman will go back to its premium multiple over time.

that's what they're going to give you. >> last few quarters weak trading activity. >> let's not make as many partners. let's tell people, maybe you ought to go elsewhere. remember a frustrated associate is a potential departure rather than a big payment. i think goldman in the end is starting to recognize the new world that people didn't think they could recognize and say, you know what? there's a lot of money in m&a, a lot of money in corporate finance and let's not do as poorly as we were doing in fixed income which was good. these are immensely profitable institutions then became more profitable. >> goldman departure. >> i did work at goldman sachs. >> also boeing. >> boeing this is important, boeing's been quiet since the big aerospace show where people say that airbus did better. boeing never said, we didn't do that well, they don't put up the white flag. boeing gets the aircraft order for the 50 of the most

profitable planes, 737s. first, that company, boc bought airbus jets back in july. people felt, maybe that's a loss for boeing. no loss. look what's happened. right here, when the beav deal fell through. people started thinking the aerospace cycle was over because that company wasn't able to sell itself. that was a technical level, it held. this stock going back. people felt it was good. they thought it wasn't as good. department like the defense problem. mcnerney assured you over and over, do not have a loss of faith. our company is back. it's going to be big. it was not the best stock on the dow. people got tired. >> last quarter, they talked about the acceleration of the dreamliner production. now ten a month? >> yes. the profit is increased by 13%. now, right here, people got faked out because they reported a quarter which was better than expected. i say go through the release,

wait for the conference call. they did have a problem, sequestered, we thought that was behind them then had a problem in manufacturing and there was a sense, where's the big cash flow? well, mick nernny's going to show you cash flow galore after your people are no longer tired of owning boeing. goldman, say good-bye to underperformance. >> good analysis of two important dow stocks. >> thank you. opening bell in six minutes. don't go away. ♪ [ dog barks ] ♪ [ male announcer ] imagine the cars we drive... being able to see so clearly... to respond so intelligently and so quickly, they can help protect us from a world of unseen danger. it's the stuff of science fiction...

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great a month. don't forget the beginning of 1987 rollover truly started this week in august of 1987. the market had gone up, up, up, suddenly profit takers came in. it's not happened this time. that was the prelude. people said, start taking profits beginning of august, don't get caught in the '87 mode than had been the prevailing the these this for many years. a remarkable month. people felt like, one big seller comes in a thin market. it's like the deals, not that long ago we had a company that -- we had companies talking of doing inversions. this time lifetime fitness, had them on the air many times, doing a real estate investment, stock up 9%. ann taylor, couple guys take down 1%. 1%? 1%? buy a couple hundred shares. >> engine capital. >> and they're saying, it's underperformed.

again, these are situations whether lifetime fitness, there are too many health clubs and there are too many retailers. prevailing theme here is, guys, sell yourself. lifetime actually has a great bi business. very nice facility. people feel like give us growth. dough a real estate investment trust. people are looking at burger king, give me the next burger king. >> which is? >> is it a wendy's move. >> i think wendy's has to think. dunkin'. the first thing, cramer, how could you say that? we're doing great. tim horton had a big, international idea. take -- burger king can take them nationally, 3g international company. tim horton can be everywhere. the tax rate in canada for burger king pretty much the same. it's not driven. it's really -- it's not driven by cash. it's driven by the notion that tim hortons' brand will carry overseas not unlike starbucks,

where i had a cappuccino with skim on the enppennsylvania turnpike and took too long. pointing it out. >> as an aside. opening bell. a look at s&p on the top of the screen. here at big board, deutsche kicking off its 12th pga tour championship in massachusetts. at the nasdaq, saia, transportation and logistics provider, celebrating its 90th anniversary. >> this green when people are focused specifically on when yellen's going to pull the rug out or i think the chatter's like she better do it or else, people at home thinking, i left the market because i heard that janet yellen was going to wreck the bull. the companies continue to make a lot of money, people say that's only because of the fed. wow. if you go to some of the companies making money, like

sales force.com the other day, the stock jumped hugely after the quarter, he's not thinking about the fed. workday, brand-new ad, i like it. they're not thinking about the fed. they're thinking about profits, okay? facebook, they're not saying, geez, what is -- who is that fed governor? what's that guy's name? no, they're thinking about world domination. so, let's not forget that the companies are not caught up in the same dilemma of jackson hole. they're just not. i know you're a fantasy player. >> yes. >> when i hear jackson, i don't think hole, i think number 11, dijon, whether they can get someone to throw him. i've taken him down in my fantasy, i watch the material, preseason games and stocks. >> at least information we can glean from the preseason, a totally different story. >> adam telling me what stocks to buy these days. no, he's fantasy insider. >> friday, lightest volume of the year, take any of the shine off of this? >> i say, listen if you want to

sell a million shares, a deal that came at 23, that everyone bemoans, i was concerned and now up at 25, there's a bid. there's a bid. as long as there's a bid, you can sell. there's a guy who downgraded intermune last week, i'm not he going to share his name. >> charitable of you. >> charity toward none and malice -- no, anti-lincoln thing i used to do. people who left the table because that was -- i mentioned intermune, the valuation was stretched ahead of time, already up 260% going into the morning -- people who leave because they're worried about the fed are being whipsawed. people think the move is being done on light volume. what's driving stocks is a huge amount of profit. you get europe turning, i've got to tell you, you'll have big upside surprises. it's difficult, the dollar's strong. >> yes. >> the dollar -- >> the euro's near low for the year.

focus -- walgreens, my charitable trust owns, walgreens, saying off-line for some of the prescription, that was more devastating than the fact they didn't do the inversion because they keep missing numbers. it's about the numbers. companies are beating numbers. that season, earnings seasons we went through, it was good, carl. it's driving stocks. >> look at the winners again today, jim. gill add, cell gene. >> people say abbvie and merck will come up with a competitor to the hep c drug. the fda has given this game, set, match to gilead. it is endless. it is endless. celgene reported good quarter. if i want to own something that give me good dividend, taken over, i'll do clorox, not merck. celgene and gilead giving you

what you want. stakes in ten different biotechs right now, if they wanted to take over. i mean, gilead's model, we spent $11 billion buying the company that everyone said was overvalue. it's given us the greatest value it will past lipitor, and they're going higher. >> a taste of earnings from retailers. best buy tomorrow. tiffany, williams sonoma, abercrombie, lookinging at turnaround. taking more logos off of the clothes, that's what's millennials want. >> you know, i don't want to bet against retailers even when they disappoint, you look at them awe few days later they're higher. one of the disappointments macy's. macy's, 52 all-time high this morning home depot, people concerns, the stock blows it away. lowe's disappoints.

i wish i had more d disappointments like lowe's. best buy, behalf, and then when it gets hit if they miss, buy the other half because five days later it's going to be higher. remarkably forgiving mark for retail. remarkably forgiving market. >> you know who will win on the burger king deal is bill ackman. >> congratulations. i'm putting it out there. he's deserving of congratulations. continue to go after allergan. allergan continues to be one of the big pharma companies with growth. but it would have -- they're putting out big numbers in 2015, 2016. i think it's just beginning for allergan. you can win two ways. >> david did mention on friday this letter to the judge, saying that a third of the investors of allergan asked for the special meeting trying to oust a majority of the board before the year's up. >> look, people who want money fast and want money slow. i think aller georgian's a

situatiwhere products came in, trying to get higher prices. i believe in dave pyott. people don't want a longer term view, they want instant profits. i believe in pie out. >> you think the ten year's done coming down in yield? >> no, not if i see austerity in europe. i mean if the merkel forces continue to win, then you're going to want -- pay 2 1/8 for the ten year. the ideologyists are saying ten-year should not be here. it's fostering too much risk. i heard that from martin feldstein. but the problem with that is that why do i want the italian ten-year, spanish ten-year, when i can be in a stable growth environment -- in france, wake up, prime ministers -- so what? no, no the so what. they've got major -- they have major fissures in the european central bank in the establishment in europe because there's some people who say,

listen, we're falling behind. 6% of the world's population, 30% of the gross domestic product, and europe is falling behind. there are people worried about that. other people saying, we've got to stop russia. some people replaying the cold war and other countries are just going out and making a lot of money. >> a note from jpmorgan on jcp. they are keeping their neutral rating, 11 target, shares are set up for a long trade into the year-end, given restructuring, potential cal lift, around october 8th analyst day, up 4%. >> mike alman was not on the conference call that concerned people. still waiting for a permits change to jcpenney. they diluted the stock. there's a lot of stock. i watch the penny preferred. that shows you their balance sheet. it's been sneaking up more aggressively than the common. led the common down it's leading the common up.

jcpenney goes higher. you don't realize that there's a return of people who went to macy's. it it doesn't matter, everybody wants these -- they want retail. they want retail and there's very few retailers other than radioshack that have kind of dropped off. amf, keeps sticking in my craw. the moment you push team retailers, teams shift to another play. but amf behind the market and too many teen retailers. too many. holdings is up, 4%. >> s&p opened at a new record this morning. and the nasdaq at 14 1/2 year high. bob's on the floor. good morning. >> good morning. good to be back. spent a week in san francisco. my heavens is that city hot, i don't mean in the mission or any parts. everywhere i went, business strong. in wine country, missed the earthquake by two days, business strong. san rafael, business was strong. south in redwood city on the edge of silicon valley.

i saw people in stores and restaurants everywhere. everywhere i went, that's one hot city right now. maybe the hottest city in the united states. meantime, hot in europe. stocks are up. we're up roughly 1%. germany's had a great month overall. up another 1% today. positive all throughout the month. draghi, late friday, came out and acknowledges expectation of low inflation. that's the hint maybe they'll ease even more. buying yields are down. another 4%, 5%, excuse me to the downside in germany. take a look what's going on, 4, 5% declines in german bond yields, italy bond yields to the downside. we're below 1%, .92% right now for german bond yields here. let's move on. there you go. look at that. .945% right now. meantime, here u.s., new high on the s&p 500. one article e-mailed around the ft article about buy-backs

slower for the second quarter, 120 billion in the s&p 500, slower than the 160 in q1. this caused concern among the trader concerns. they can't quantify it but everybody believes. it's true but i wouldn't worry about it this much. one, 159 billion, that's the second biggest buy-back ever. 120 billion the seventh biggest. share count reduction continuing, 20% of companies in the s&p reduced share count by 4% or more in the second quarter according to s&p. that's a huge reduction. you can't quantify impact on prices but everybody knows that it's a positive somehow. so i wouldn't panic yet about it. we're in august, a month that's not supposed to be very good and the s&p's up 3% at historic high. so even if lower buy-backs, the market is holding up well. talking about tim horton and burger king. i was down here when tim horton

rang the bell several years ago, they started selling in the united states. i hope everybody remembers what happens. wendy's owned tim horton, 1995 they bought. remember the old owner, famous dave thomas a big fan of tim hortons he saw what the combination of tim horton and burger king did when they were combined side by side and several buildings in canada. doughnuts and burgers worked well. dave thomas was convinced to buy the company in 1995. eventually, it was 2006, as i recall, they did spin it off. and hortons decided to go back to canada because of the tax issue. you might argue, it's not that important but it's certainly was at that time the tax issues for horton a major reason they went from the u.s. 2006 back to 2009 i believe it was, back to canada. bear that in mind right now. here we are with the s&p at new highs. back to you. >> thanks a lot. bob pisani.

to the bond pits. check in with rick santelli. good morning. >> good morning, carl. we can always debate the most recent story, the jackson hole stories, but one thing's for sure. you're a trader and looking at chart, many of the trends, lower interest rates, flatter curves, have been in place not only all year but hooking into the last quarter of last year. a chart going back to june of 2013. call it 14-plus months of tens minus 2s. very stable. now here we are, under 190, so 14-month flat on tens minus 2s. look at hook in on the fi five-year. the long end, 5s versus 30s, breaking 1.50. this chart goes back almost 5 3/4 years, january of 2009, just stable flat. ing flattening associated with lower rate, weaker global growth and the weather pattern these days is the european growth

rate. two-day chart of 10s and two-day chart of bunds. tens on friday in the u.s. touched 2.44 in reverse. technically perfect 2.44, 2. 45, a stopper. now we see down to 92 base points bob referred to now at 94 basis points. you can't pick up all of the draghis, all of the geopolitics. it's been going down for a long, long time. look at a one-year chart of bunds. now let's look at euro versus dollar. here we are, 131 handle. the chart go backs to the last time here against the greenback, september on of last year. we can talk about dollar strengthen, as americans we may want to do that but it's a european weakness chart. 57% of the dollar index is euro. not shocking the dollar index at the highest level since the euro was at the lowest levels since september last year. back to you. when we come back, roche 8.3

billion deal to buy inmun, stay tuned for a live interview of the ceos of both companies. netflix hoping "orange is the new black" snapping up emmys. will the new streaming service enhance its reputation as a game changer? take a look at s&p 500, a new record high about points away from 2000. how do you beat the number one seed? you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win,

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building something better for all of us. ♪ pretty nice breadth on the s&p. just, i don't know, maybe an eighth of the stocks in negative territory. watching 2000, currently 1997. if we do get there it will have taken over 16 years to move 1,000 points. first hit 1000 in february of '98. >> maybe -- i know a lot 0 people feel the market's overvalued. certainly has taken its time there. now ever since the november 2011 bottom, it's been kind of nonstop. you don't get big pull backs.

when you get pull backs people say the fed's going to kill you so don't use the pull backs. they've been unbelievable. even the last one, i felt how many times can you come back well and buy the dip? the answer is you can keep doing it and individual sectors rotating aerospace was down, biotech was down, the cloud was down badly, the industrials down badly and they recharged. oil's been going down. oils seem to be recharging, as odd as that is. >> meantime, news on amazon, taking on google, not in shopping but in its profitable advertising business. amazon's developing its own software for placing ads online, hoping to expand to third party websites, amazon is one of google's largest customers. amazon signalling it wants to supply those ads it self-and compete for the same ad dollars that dole and facebook are chasing, with a large degree of success. >> when you read amazon wants to come in, you can hurt profitability.

i believe that google is a play of off-line going to online. room for more than one player. amazon amazing competitor. google is an amazing competitor. people will sell google off thinking they are not doing well and i think they should hold on to it. >> nasdaq 100, up nine straight, moved 4% in that time we haven't had a nine-straight win streak in over a year. >> i mean, it's led by the same thing. it's gilead. it's celgene. it's regeneron. regeneron, every time it goes up, san flow up san notify trying to get a big stake. and gilead remains to be the drugstory out there, because a pill that kills something that kills people is going to be paid for by the insurance companies, even if the insurance companies are driven kicking and screaming

because no one wants to be the insurance company that denies people right to live. >> unbelievable the list, gilead, celgene, regeneron, amgen, biogen, top ten. >> new valuations on things. the kind of the unsung hero of the period, the regeneron ceo, when "mad money" started we couldn't get ceos to come on. heed hey $5 stuock, he had a formulation. this amazing drug, for macular degeneration, a winner. they've got other things in the fire. you start getting a company, you say, wow, that's multiple billion of dollars but you think, wait a second. if intermune is a bolt on for $8 billion, is what sanofi if they want to buy regeneron? regeneron, i like alone, it's doing so well.

celgene, no one's going to buy celgene, it's too big. gilead, it's too big. look out, merck. look out, pfizer. they're coming to get you. >> we'll get stop trading with jim. s&p 1998.5 now. "squawk on the street" will be right back. we do? i took the trash out. i know. and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? [ male announcer ] whether you're new to medicare or not, you may know it only covers about 80% of your part b medical expenses. it's up to you to pay the difference. so think about an aarp medicare supplement insurance plan,

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comcast business. built for business. record today number at top will tell you the story, 1998.60 a hair's breadth from 2000. >> such a broad-based rally. oil's gone down to 93 from $103. oil stocks are moving. few groups are being left out. obviously the big leaders have been stocks like netflix, which we should talk about for" stop trade." emmys, "the orange is the new black," a series i like, millennials like very much. when a company wins an emmy, big deal, right no, not this one. this is netflix. netflix is becoming the way you get your cable bill, i see i paid $5 for espn, so what? you'll pay nine bucks for

netflix, more will sign up. the emmys will be an add for "the orange is the new black" after "game of thrones." watch netflix again. does go up on emmys. unbelievable, but it does. >> i think 33 some odd nominations. i remember when them getting one nomination was a story. >> this is -- it's a great series. people say, i'm not going to pirate. what else do they have? just another run in the stock. why someone didn't buy them to make it so they had an espn of entertainment, which is what this is becoming. as they add things, by the way to online, very spartan online, as they add, people view it as netflix. >> doesn't mean international expansion is a cake walk. embroiled in a dispute with our parent. >> look, these are all in the end settled because people want to have a good -- no one wants to be the reason why you have to buffer netflix. >> that's not a winning

strategy. >> right. the buffer, i don't blame netflix for buffer. i blame ply provider for buffer. my provider must say get a better wi-fi. i'm getting her all she's got wi-fi wise. u.s. steel, there is a -- we used to kind of talk about the shale revolution, i talked about shale all the time. a shale you until the cows come home. u.s. steel taking advantage of lower cost of natural gasp credit suisse goes from sell to buy, you don't see that arc. basil, announcing a gigantic expansion of its plastic business in the gulf area. do not forget that our energy costs are the second lowest in the world versus unstable region in the middle east where a lot of companies regretting they're spending a lot of money. we have a company that finished press corps buy. this company's been on fire. people don't like quest core. mark trudeau likes. too many restaurants?

charl bachelder, the stock's not moving. the stock's stopped going up. what do you do. >> i goendon't know. >> buffalo wild. >> i've got to tell you, the cost of chicken's coming down. the cost for cheryl's company very calm. i know fantasy's a big thing. buffalo wild wings has been -- there are 50 million people who play fantasy. buffalo wild wings synonymous with that. what they should be synonymous is with beer. corona off the charts. robert sands doing a great job. >> see you tonight. "mad money" 6:00 p.m. new home sales after the break. how about over there?

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welcome back to "squawk on the street." july new home sales coming in a bit under at 412,000, that's seasonally adjusted annualized rate, down less than 2.5%. why? the 406 was upgraded up to the 4 422,000. so down 2.4%. and now for a little bit deeper granular coverage of the number, let's go to d.c. diana olick. >> well, rick, this is a

disappoint. looking for up 4.7% to 425,000. so 412,000 again, disappoint. but when you look at it, still trending higher for the year. remember this is a volatile number. signed contracts in july, not closings like existing home sales respect again, you see the volatility there, you also see corrections month to month. i want to put this in perspective which we don't often done look at 412,000 number, compare that to all of 2013, where 429,000 were sole. we're below that but up from the bottom in 2011, when 306,000 sold. that's where we are from the bottom. just at the 412 number, talk about the peak of the market, sold 1.3 million homes back in 2005. that's where we are. still waiting for a price. home builders have been raising prices just as existing home sales have been going up as well. but we've been talking to a lot of builders in the last couple of month them said last year we raises prices too far to fast.

we have seen this tranend of annual home price gains builders have to slow down to get more people through the door. home builder confidence up, housing starts up in july as well. disappoint but still trending up at least. back to you. >> thank you so much, diana olick. some of the big headlines. s&p 500 opening at all-time high, nearing milestone level of 2000. the nasdaq setting a fresh 14-year high. goldman sachs one of the top gainers, hitting seven-month high as it settles a lawsuit p powellty group buying real estate assets of dominion homes. kicking off the week in the green across the board, you see the s&p 500, less than -- it's a half i pineoint away from the 2 mark. nasdaq fresh 14-year high as we speak. talk about it. the president and cio of castle

mark management, scott wren with wells fargo adviser. the s&p looks like it wants to test that 2000 mark what happen significance is that level for you? >> well, you know, i look at that as just a number but it's going to test it. while we're talking about here, it may trade over it and certainly i think we're going to trade above it here before this rally's over because i think not only through the end of this year, but likely through the end of 2015, i think this market has more upside. so, we're trying to get our clients fully invested here. that's difficult with retail investors. but i think this market's going high. >> you agree the 2000 level, psychologically important at least could see some follow-up, follow on upside foengs from there? >> most certainly. scott's right, there's a bunch of distracts in the marketplace today, geopolitical stuff, just things that happen in the monthly statistics tend to take

people's eyes off of the fact that stocks are broadly cheap across the board. and the economy is still yet to really hit its stride. if you see the prospects for three plus percent economic growth next year, we'll see higher earnings than companies are being estimated on. boy, that's a big upside opportunity. >> you must be very bullish on the economy, because many strategists are not saying that this market looks extremely cheap right now. in fact, if you look over historical average on p/e basis it's above that. what looks cheap to you, why? >> the current reason is historically there's been much higher inflation. if you throw 3%, 4% inflation in, the market tends to fluctuate around a 15 to 18 times multiple. at 2% inflation the markets should trade at 18 to 20 times. we're still well below that. and then layer in the fact that with the faster growing economy, which we see very good signs of, you're just going to fine next

year's earnings estimates are far for conservative than they need to be. that's going to drive confidence of both faster earnings growth and cheap valuations. that gives us big upside from here. >> let's hope some scott, what are we to make of the fact that ceos are buying back less of their shares? we had a bumper first quarter, 159 billion a share buy backs but that slowed, we learned, in the second quarter to 120 billion. it's one of the major reasons why the market has rallied. ceos or cfos aren't going buy ta back their own stock to the degree they have, what does that mean? >> that's been a factor here. i think we're still -- ceos, if we enter a lull period for that, i think it's only a lull. i think we're going to continue to see share buy-backs. the companies have done a good job at really engineering their earnings in a modest growth environment. i think we're going to continue to see buy-backs. i think we're going to continue

to see lots of m&a activity. if you look back, the median p/e on the s&p 500 going back 30 years is about 16.7, that's basically where we are right now. stocks aren't cheap in my book anyway. but certainly not expensive. >> would you -- >> the low interest rate environment, you know, these stocks, don't be afraid of valuations. >> do you think it's a stretch for jerry to talk about p/e rising to 20 with all that's go on in the world? >> all of the work that we've been doing here, we cannot squeeze a 20 p/e out of the market. when i look ahead, i think our 118 earnings number is low. we don't have one for 15 yet. but 17, maybe slightly more than that, we cannot squeeze a 20 p/e out of the work we're doing, anyway. >> jerry, obviously, m&a one thing that scott mentioned, front and center today, inversions. do you expect we'll see more of

these types of deals where american companies looking for better tax rates are going to move headquarters outside of the health care sector, which is something a little bit new? >> yeah, i mean, again, here's another example, with very low cost of capital, the financing of those kind of deals and others can easily take place here when your cost of capital's around 5% and the huge tax advantage you have of moving foreign domicile is staring at you in the face. whether that is significantly altered by something in washington is yet to be determined. but it's another one of these strong winds at the back of equities. don't forget, major equity market up cycles come with a strong m&a underpinning. this is an example of one. i think it's one that people have ignored too long and it's about to start to kick in again. >> scott, you started the conversation by saying you're trying to get your clientele fully invested but it's been difficult. what's been their main reason

for being hesitant? >> well, carl, i tell you, they think they've missed a lot of the market which you know, clearly they have, if they're not in the market, for the last five years, they've misses a lot. a lot of them have been invested but not fully invested. and they're fearful here, because in the modest growth environment, you know, look at some of the small business surveys. these guys have -- these business owners have thought for the last three, four years economy's ready to roll into recession. i think that's what people, they don't believe the economic recovery's going to continue and they're afraid of global events that i think most of them have very little chance of affecting our market. >> they continue to miss the rally. we're seeing this morning. thank you. two bulls, not enough to push us over 2000. still half a point away. >> we'll get there. >> all right. in the mean time, switzerland's roche agreeing to buy intermune on the west coast for $8.3 billion in cash, sending shares of intermune soaring more than 30%, 35% as we

speak. all of the details back at hq. >> good morning. 74 a share. and that premium of 38% from friday's close in more than 60% from earlier this month before speculation took off intermune was a target. more than some analysts expecting and i. say it could be because of a bidding war. the drugs a proved in canada and the eu for pulmonary fibro sus, affects 100,000 people in the united states, maybe 100,000 people in europe. analysts expect it to be approved this year. they say the drug could bring in more than $1 billion in annual revenue, looking for that next. bottom line they say this could be a return of the traditional big pharma buying smaller biotech deals. a tremendous deal activity in health care this year but driven by tax inversions, that's u.s. companies buying companies

overseas to lower the tax rate. this is a swiss company buying an american company. looking for growth, looking for product. analysts saying it could be a boon for the biotech sector. stay tuned for potential dials in the pipeline. >> stay tuned, live interview with the ceos of roche and intermune later this morning on "squawk alley," 11:00 a.m. eastern time. >> thanks very much. apple hitting new highs in reason sessions, as investors regain faith in tim cook and the product's line. should you be buying? another check on the s&p 500 inching closer, so close, to 2000. squawk on the street will be right back. when i'm working, things can get so hectic. so sometimes i need to find an easy way to express what's most important to me. like, with my crew, i use shorthand to talk to them and tell them what i need... and when i need to talk directly to my fans... but the most meaningful shorthand of all

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new to trade on. look what's happening with corporate activity. we walk in this morning, there's word of a possible buyout in the restaurants base with burger king and tim hortons and canada, a deal in the health care space, companies putting money to work now that earnings season past and saw solid earning growth on 4% revenue growth, also a milestone. look at some of the sectors, since 1000 hit in 1998, the only one that has yet to recover fully, interestingly enough, teleconservices, down 19% from s&p 500 1000. >> what telecons were doing in 1998. >> the to bigger point on the economy, it's interesting that the banks are in there today, citi, goldman sachs, jpmorgan up under 2% than will reassure a lot of people because financials, despite the record earnings, record net income that we've seen, $40 billion in the second quarter, didn't join that rally as many hoped they would. >> some say you had to switch

the sectors, get them in the front to see another leg higher. perhaps we'll see leadership from groups like financials. >> jokes of inflation adjusted on twitter, too. dom chu who has statistics on s&p 2000. >> carl you, hit on some of them. pe telecom services, down 19% since the last time we hit s&p 1000. if you look at the second worst performing sector what simon mentions, financials, only up 9% since we hit 1000 mark on february 2, 1998. the single-best performing sector, since 1998 the last time we hit the 1000 mark, has been energy stocks. speaks to what's happening overall with the energy profile in america and how these stocks have done. that's up 300% during the time that we've seen since february 2, 198 to today. as you look at the way things are turn out, energy

discretionary health care, technology, all of those four outperformers during that time span. back over to you guys. >> let's bring in art cashin. good morning. >> good morning. >> there done appear to be a celebratory atmosphere on the floor today. >> well, it's -- the s&p usually doesn't inspire people to put hats out and a variety of other things. >> that's reserved for the dow. >> right. you get much more action out of the dow. but it's -- it's an achievement. they've been trying for some time and we've made it. interestingly, they made it and then there was no follow through. >> what does that mean? >> just that for all of the talk, it was more psychological than technical, you know? if it was a point that was technically important, people who are short and there are more than a few people short, would have said, my god, that's it, let me capitulate and cover my short. >> is it appropriate to mention

we're super low volumes again today? >> it's not only appropriate, it's accurate. >> does that lessen the importance of the rally? does it mean we have to test it and go back over it when the volume picks up? september? >> well, over the decades i have been taught that volume equals validity, just as you wouldn't want the president of the united states picked by eight people, you want to see some real volume to get validity in here. that doesn't mean it has no meaning at all. numbers are numbers. we made it to 2000. the fact there was no short covering or instant follow through makes it just an item of note, as you say, nothing celebratory. >> it's not just s&p 500, watching that level carefully. the nasdaq 100, having its first nine-day winning streak in a year. making new 14-year highs for a sixth day in a row for the nasdaq. that's got to be significant as well. >> that is. what you want to see there for

confirmation of the sort is if the russell can follow through. that will mean the other small caps are coming along just as well. so, everybody looks at the s&p as a broadly based, well-weighted index, and so i think you've got to be happy that we've made it to 2000. would have liked to see a trade through but we have the rest of the afternoon to go. >> if you're going to give someone, say, central banker credit for the last push, is it draghi's? >> yes. draghi's remarks seem to perk up the people in europe who think he's going to be coming in with further loosening. but as we said here last week, not sure, a how he can get the qe going and, two, not sure what the impact. >> it would be ironic if the situation were so bad in europe he's saying inflation

expectations are falling therefore i'm fored to act, if that's the reason you value companies at a higher rate? >> yeah, i think that's absolutely correct. but the other factor is that he made -- he sounded very much like the fed, saying i can't do this alone. i need some fiscal help. >> yeah. >> so i don't see any of that coming from the rest of europe. >> not played out in paris today. good to see you. art cashin from ubs. s&p 500 breaking 2000 mark for the first time ever. more "squawk on the street" after the break. it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.

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e*trade gives you the tools and resources to get it right. are you type e*? welcome bakken apple closed at a record all-time high friday despite rumors of the delay of the iphone 6 release. average rating of outperform and anticipated launch of the phone, apple favorite on wall street. for more clarity how high apple can go, let's bring in jeffrey, maintains a neutral rating. good morning. >> good morning. a lot of people in the

springtime said, watch this name historically it tends to trade well during the summer, leading up to a launch. has everything pretty much gone according to what you thought would happen? >> yeah, maybe even better. talk obviously of them using expensive components like sapphire screen, people worried about litting gross marriages and that hasn't come through. talk of the 5 1/2 phone on a staggered launch, a strong march quarter and march ends up being weaker. positives have given validity to the run. >> what happens now almost at 102? >> the stock holds in. the rule's to sell on the news, maybe we can hold in until march. but the fact of the matter is, perhaps the i phone 6 bringing through pentup demand, people moved to installment plans in the u.s. and the question is, what happens this time next year? do we end up with flat volumes or declining volumes, as

everyone went for a huge iphone 6 replacement cycle? without a new device category, you know, where does growth come from in 12 months' time? >> those concerns obviously, people worried about the ipad, samsung bringing asps down overall, thoughts? >> those are all well concerns. one other thing i add beyond the iphone 6, which should be sizeable based on the work we've done, is you have the iwatch that should come out in november time frame. some semblance of a new product should give them better exploration into 2015. multiple product story, not just the iphones but the iwatch picks up poe mentum as you get into 2015. >> carl mentions the ipad. do you think investors are underplaying the risk? best buy telling that the tablet market is crashing. we've seen decline in apple's

numbers. do you have faith that they can sort of bring those numbers back to growth or are you just not concerned? moving on to other products? >> i think the goal will be stabilize the tablet market. one we can stabilize to improve the tablet market is having a larger factor, having not the ten-inch screen for the ipad could be incremental driver for upsigned the tablet market in the western hemisphere is fair y saturated. >> the journal has what amounts to a love letter to the ipad, still they've got a share of 28% of global sales, margins rising on the ipad from 25% to 30%, at a time when tim cook promising significant innovation on the ipad to come. are we under playing the category, do you think? >>en 0 the last call tim cook spoke of penetrating the market

with ipad. as exciting as that may sound, that's significantly smaller than the consumer market. the problem the ipad, it doesn't replace a laptop. storage limits, real constraint, and the price apple charges for new storage is so high you can't really store your entire library of content on an ipad. it's a companion product. until they crack that, make a tablet replace the laptop the tap let market -- >> if i like at priceline, which increasingly talking about mobile bookings, they're done on an ipad. the flip is not between a laptop to ipad, it's an iphone to ipad. and greater commercial value there for those that have the apps potentially. >> well, most recent comment from sam sungs, obviously doing well in tablets and smartphones the 5 to 6 inch smartphone category's been cannibalizing 7 to 8 inch tablet form factor.

as you come through with 4. 7 to 5.iphone, the mini is cannibalized and has a tough 2015, if the samsung case history is repeated. >> we'll see what happens in about a week's time. we'll talk to you again. straight ahead -- northern california recovering from the biggest earthquake to hit the area in 25 years. a live report from napa after the break.

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welcome back. about one hour into trading and here is what we are watching. the s&p 500 hitting 2000, that mark for the first time ever intraday. we backed off a bit by a few points, 1998.89. bob pisani on the floor with more color about there is milestone. bob? >> i think the important thing that we've been seeing right now that is we're in a fairly ideal situation for the stock owner, number one. we've got low rates, i mean record low rates look at what's go on in europe and dramatically low rates here in the united states. secondly, commodities generally to tdownside. oil's weak, a great boon for the consumer. it's not great if you own oil stocks. you can see oil companies, oil energy stocks are the laggards. most stock investors will take that overall. three, share counts continue to be reduced because buy-backs are strong. there's a lot of discussion overnight about a financial times argue about buy-backs

being lower but share counts are going down dramatically. that's very good for earnings overall reeshg deuduces p/e rat. those are three things dramatic. what's go on today overall, this month, we've had a broad rally. it's not just like tech stocks or cyclicals going up. consumer staples are going up. broad swaths of the market up 4% this month and this is supposed to be a weak month. right now ideal conditions for stock owners and that's reflected in the prices. >> certainly you're seeing that bullish enthusiasm today. let's dive in and look at the top gainers on the s&p 500 right now. gilead up more than 2%. not a huge move but that stock in the green. drug names are leading the s&p now, after we saw the deal announced, roche akiring intermune for 8. 3 billion. regeneron green there's a

specific catalyst with that one. >> people are talking about the fact that regeneron on sunday in barcelona with sanofi revealing new data on a cholesterol treatment it's trying to bring to the market. the other one worth mentioning gilead, rbc on friday saying, everybody focused on hepatitis c treatment but it has a longer tail on the hichlhhiv business. they feel gilead might be at the forefront of getting this. there are other reasons to rally. >> morgan stanley in the top, financials among the best performers, that group up 2%, that's a change in terms of leadership position. they had been lagging, now out front. as we see the s&p, 1999. >> a quick check on losers monday morning and see what's making headlines there at the bol tomorr bottom of the market. intuit falling in the wake of the results we had friday that

they fell. >> yeah. >> the ceo on "squawk alley." you see some of the energy stocks in negative territory after a lot of recent interest. >> dominic chu, more stats on s&p 2000. >> taking you through the sector winners and everything else. energy's the best performing one. telecom, worst performing one. outstanding stocks in the trade in the larger cap stock index. check out ann inc, the parent company of an taylor stores, the stock higher 5%, after investors engine capital delivers a letter to the board saying the company's yaunds valundervalued. you can see, off the session highsing, up by 5.5% on today's trade. >> back over to you. >> you heard by now about the 6.0 earthquake hitting napa valley. josh lipton is there. good morning again. >> good morning, carl.

business owners are waking up this morning and they have to decide really what to do next. a lot of them did suffer damage because of this earthquake, especially if involved in the wine business which of course is what this area's known for. napa's home to some 800 wineries. they produce some 50 million cases of wine per year, including one called silver oak cellars. we did see rack after rack of wine bottles smashed and broken. a scene we saw in much of the airport another business owner of bill hill of henry hill and company, runs a wine warehouse, close to 1000 bottles of wine but suffered a lot of damage. wading through a sea of wine. >> right now trying to figure out what we have to do today to protect what's left and then later i will have a chance to think about what this means for us, you know, where we go from here. >> reporter: now, hill says he's going to have to find a safe,

secure, temperature controlled warehouse, no easy feat on short notice. in terms of the broader, economic losses, talking about from the earthquake, they can range between $500 million and $1 billion, according to a preliminary estimate from core logic. back to you. >> i can deal with the geopolitics and threat there but are we saying there may be a wine shortage? >> reporter: it's interesting, simon. certainly a lot of wine owners suffered damage. but in terms of the current harvest, no damage to the current harvest which is in full swing in many parts of the country here. >> josh, thanks so much. josh lipton in napa. a tumultuous time for retailers. what does it mean for back-to-school season? tom stemberg will join us after the break to weigh in when "squawk on the street" comes back. s&p breaking 2000 for the very first time ever.

currently just a shade below it, 1999 and change.

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there's been a recent shuffle of several retail executives from home depot, mcdonald's, back-to-school season gets under way and some teen retailers like abercrombie & fitch trying to reinvent themselves. tom mass stemberg, co-founder and former ceo of staples. how about this, headline that an activist investor trying to pressure ann taylor for a split. why aren't we seeing more pressure across retail with bigger named guys? >> well i think retailing has been somewhat challenging overall. the consumer lacks confidence even though credit card debt is down and have some cash. income growth not what you like to see it be. participation rate in the labor force not what you like to see it be.

things are mod evidently better but not great. look where there's pockets of strength, typically it's the value sectors, companies like tjx, costco, which offer exceptional value faring the best. >> seeing other bigger companies lose their customer base. companies like walmart, target. mcdonald's. the "wall street journal" saying mcdonald's losing millennials and not keeping up. how does a restaurant chain with 35,000 locations around the world that started in the middle of the country with some of the best consumer insights miss a huge shift as healthy eating? >> well, it's awful tough when you're big to move these big battleships around. i ran a company north of $10 billion, gosh, it's hard to move quickly internet speed in that way. particularly you've got tens of thousands of associates that you have to retrain and remotivate. it's very, very challenging. only the really great companies

do it well. i think walmart's shift to online in a very aggressive way, near-term pain, long term will pay off effectively for them. it's tough to change but you have to be willing to try. >> the perception that you give people more choice, the point of delivery and that they have active choices to make. you look at teen retail, big thing they sped up production zikle, zara, h&m, forever 21, so there's a perception the stock's moving and changing. if you look at criticism of mcdonald's in the journal today, it's similarly 20 or 30-somethings going elsewhere, there's a more customizable menu. in other words, one size no longer fits all. people want to think they're special and they are choice, exactly the same as airlines might give you in flight. any mileage in that, do you think? >> i could not agree more.

as a matter of fact, we're invested in a company called indo-chino custom men's suit business, the young customer just entering the job market, under $500 for a custom-made suit. we think those markets, as well as niche markets, are the kind of places where you're seeing double digit growth. the big, stagnant companies, incredibly difficult to grow in the environment which is why you're seeing turnover at the top. >> what about the -- >> what's amazing to me -- >> sorry, i was going to ask you, the big product, the big one size fits all products like coca-cola or some of the diet sodas? do they have a future? is there a very strong place for them in this new world where consumers want choice? >> you have to credit coca-cola, aggressively moving into keurig. now moving into the energy drink

business. we're invested in a teacup. they're interested in tea. they're trying to diversify the product mix away from the sugared soft drinks, which were their mainstay for decades into new areas. again, it's challenging to do so, but got to give them credit for trying. >> finally, i mean i know we're talking about food, restaurants, beverages, all a little bit different. back to your roots in retail, why is there a glut of good retail ceos? >> well, there's a lack of talented retail ceos why companies like sears, penny's have try so hard to find chief executives and failed look at successful retailers, walmart and home depot, when successful they groom their own. contrast what home depot went outside to bob nardelli which turns out to be a train wreck, they went inside for frank

blake, sensational job. now inside to craig menire, understands the business and i think will be a success as much as frank was. >> a lack of what i meant. tom, good to see you. tom stemberg, found somewhere former ceo of office depot. still ahead -- roche buying intermune for more than $8 billion. the ceos of both companies will join "squawk alley" for simultaneously, live exclusive interview later on. don't miss that. we'll be back in a short break. being a keen observer of the world has gotten you far, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.

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the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. welcome back to "squawk on the street." the s&p's right at 2000 but some shares are even more on the rise. lifetime fitness, operator of more than 100 fitness centers in north america. this stock, not in the s&p, moving higher on news it's exploring converting itself and land hold nooings into a real ee investment trust or reit.

the hedge fund run by mick mcguire the largest stakeholder in the company with 7 plus percent stake. shares up 8% on the day's trade. back over to you. >> thanks a lot, to the cme group. collect in with rick santelli and the santelli exchange. rick? >> thanks, carl. i'd like to welcome my guest, southwest securities, mark grand. thanks for taking time on his historic monday, relative to the equity markets. >> happy to be here with you, rick, as always. >> all right. listen, mark, we'll take a different tangent to this whole story. you know, as we look at the globe, and you always send me a lot of e-mails, write a lot of blogs about geopolitics and i see mr. hollande, french government dissolved his rating, 17%, isn't this one story globally? when there's no jobs, jobs, jobs and the economies are soft,

soft, soft, tensions happen, whether it's world war i, ii, that's what much of the anxiety is borne of, is it not? >> it's jobs, rick, certainly and the quality of the economy. but concerns me in my decades on wall street we have libya, ukraine, we have iraq, we have the gaza strip, we have a multitude of geopolitical problems in the world that any of them could shoot fireworks at any time and that i'm concerned about. >> now, i understand. but when we look at middle east, this is nothing new, it's horrible, i'm not dismissing the humanitarian issues. what's going on in ukraine may be a bit new. when i look at europe and look at france dissolving its government, i guess what i think you have a ten-year french instrument, the bund at 95, ten-year treasury at 240, this

is all hooked. are we all whistling past the graveyard in terms of the dichotomy of 2000 s&p and a globe that you know call it geopolitics,geopolitics -- i call it it's just bad jobs, bad economy, bad future, high unemployment. many of the people of the globe are grasping for anything for things to change. how do we reconcile all these dynamics? >> rick, you raise a very good point, and there's what's called relative value that we apply all the time in the equity market. but also applies in the bond market. so if you look at the yields in hong kong, if you look at the yields in japan, the european yields, you see a giant dichotomy in the united states, and the yields are too high by comparison. the ecb is not going to let the european rates go up. so i think, as you know, that america's rates are going to decline at the same time, you're seeing this huge run-up in the equity market having to do with

the fed and the amount of money in the system. so we've got some very disjointed events in the financial markets. >> now, when i think of the french scenario here, one of the reasons that the government dissolved was the prodding by some of halan's adversaries regarding things like dealing with the problems and not wanting to have the types of reforms. i mean, reforms have been overlooked. is there any future for young people throughout some of the globe who can't find work, have too much time on their hands and bad things happen? >> well, rick, there's no question, especially in europe, spain with a 26% unemployment rate, that bad things are not only going to happen but are happening. they've been disguised as much as they could. the interest rates in europe are nothing except what the ecb has done in terms of providing a carry trade to the bank. and as we start rolling into the

rest of the year, as you know, i'm looking for a 10% -- or a ten-year treasury under 2%. the 30-year's going to be under 3% shortly. and there's going to be implications for all of this for the economy. it's going to stabilize things to some extent. >> well, we're out of time, mark. we'll leave it there. a final thought. if low interest rates is the cure, they've been doing nothing but going down, and it certainly seems like we're far from cured. thanks for taking the time today. simon, it's all yours. >> thank you, rick. thank you very much, rick. we want to touch on where we are with grubbhub which was halted pending news. that news is that the company in a secondary offering is going to place 10 million shares on behalf of the business itself and indeed of its shareholders. 10 million shares at 40 bucks a share is $400 million worth of stock. given that the market cap of grubhub is only 3 billion, that

would seem to be quite a hefty secondary offering. no wonder, then, that we're in negative territory, sara. >> and shares have been absolutely on a roll. up more than 60% from that april ipo. watching grubhub. sending it over to kayla tausche. hey, kayla. >> hey, sara, good morning. that big deal that's pushing the s&p 500 to new highs is roche's purchase of intermune. we'll talk to both ceos exclusively next hour. also, we'll have legendary tech investor dan niles to talk apple valuations ahead of that all-important iphone 6 launch. and fresh threats not only to sony's playstation network but also to one of its executives. we'll tell you what was behind that and what it means for the gaming company. that's all up next on "squawk alley." you can get a $1,000 turbocharged reward card

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your link to what's next. irch the s&p 500 hitting that 2,000 mark this hour. the nasdaq also hitting a fresh 14-year high. seema mody with a look at what is moving in tech land today. seema? >> sara, good morning on this monday morning. we're taking a look at the nasdaq and the nasdaq 100 both powering to new 14 1/2-year highs. really interesting to see that the nasdaq 100 continues to hit

these new highs-the best nine-day winning streak in more than a year, setting, again, that new 14-year high. what's also interesting is that if you look at the month-to-date performance of the major indices, once again, the nasdaq 100, the big outperformer, up about 4.5%. in terms of what's driving the index to new highs, old cap tech, also apple playing a big role. of course, apple does have the biggest weighting on the nasdaq 100, trading in all-time high territory. expectations, of course, high ahead of the iphone 6 launch. speaking of tech, old cap tech, again, playing a big role here for the s&p tech index which is trading at a new 52-week high. hp and intel both benefiting from that pc recovery. qualcomm, a chip player, also trading to the upside. and biotech continues to be a bright spot for the nasdaq 100. gilead sciences celgene among others playing a big role here. back over to you. >> yeah, it certainly is a bullish day, simon. we are well above that 2,000. the dow well above 17,000.

up 116 points. >> what's interesting is the speed of the accent accelerating. our guys back at hq say it took us six months to get from 1800 to 1900, but we've done this last 1,000-points rally in just three months. so the index, the s&p, the big benchmark is rising faster. it is accelerating higher. it is doing it in the summer months which are low volume at a time when qe, of course, is drawing to a close. courtesy of the fed. and that will taper out by october. so you have all of these conflicting factors and yet still it's s&p 2,000. >> we go back 16 years since we saw s&p 1,000, 1998. >> i remember it well. >> telecom, only one in teg tif in terms of percentage term since that time. the best performing groups from 1,000 in 1998, energy, up 292%. and consumer discretionary, up 205%. on a roll. >> on that note, let's send it over to "squawk alley" and carl

quintanilla. >> thanks a lot. it is 8:00 a.m. in mountain view, california. 11:00 a.m. here on wall street. "squawk alley" is live. ♪ and welcome to "squawk alley." joining us this morning, jon steinberg, ceo of the daily mail north america written up today in "usa today," very nice piece. kayla tausche as well, jon fortt. morning, guys. a heck of a morning. stocks trading higher. s&p, if you haven't seen it by now, did crack the 2,000 mark for the first time in history.

currently sitting at 2,001. joining us on the phone is cnbc contributor rich bernstein. rich, good morning to you. >> hey, carl. how you doing? >> good. we love to talk about these round numbers. and the lesson this year, rich, has been that these mini-corrections that we have seen deserve to get bought time and time again. what do you make of this threshold, and how long is that dynamic going to stay in place? >> well, carl, you know, as i've mentioned, as you and i have spoken several times about this, that the underlying long-term sentiment is still very cautious. people are much more worried about protecting the downside than accentuating the upside. and as long as that's the case, it's likely that the buy-on dips will continue to work. eventually that will change, but clearly that's not the case right now. >> what is your game plan here as we go into a week where we're going to get a revised gdp number? we'll see if that 4% handle stands.