begins right now. good morning, welcome to squawk box on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. a large tornado touching down in the texas panhandle hitting a drilling rig. there was extensive damage and at least three injuries reported. flooding still a huge concern in texas as many rivers are above flood stage. thousands of homes have been damaged. the death toll is climbing and the search for the missing is growing. more residents are being asked to evacuate today and the rivers aren't expected to crest for another 36 hours. now to the market news of the morning, a big sell off in china overnight. the shanghai composite closing down 6.5% breaking an 8 session

winning streak. catalyst seems to be more news that chinese brokerages have tighter marginal rules raising concerns about regulators having other things up their sleeves. things to slow down the massive growth we've seen over the last year. we'll have a live report in a moment. in the meantime if you're watching the u.s. equity futures markets were higher yesterday. there is a slight pull back this morning. dow futures down by 18 points. apartment building futures down by 2 and the nasdaq down by over 8. >> san francisco fed president jon williams says the central bank likely to start raising interest rates later this year. told a group in singapore that he expects economic growth in the u.s. after a weak first quarter. also the head of japan's central bank telling cnbc he doesn't think a bubble is brewing nor is he worried about where the yen is heading. one says the yen might appreciate but in his words it

should move in line with economic fundamentals. another deal in the works. avago technologies to acquire broadcom. the announcement could come as early as today while we're in session this morning, guys. >> do you know avago. >> i don't know them well. >> as well as i know broadcom. >> really? >> yeah you. >> i know when i look at what it is. it was the hp division spun off taken by kkr and silver lake and then brought back out and then changed it's name when it came back out, went public in 2009 and then bought a punch of stuff. bought lsi. it's supposed to buy others. this is big for a company that i wasn't that familiar with. made a lot of acquisitions. a totally different company though because i remember them well as a spin off. >> so you're doing all the serious stuff. >> no i'm not.

>> i just think broadcom and the layer. >> have you ever heard of avago. >> do you remember the layer, broadcom. >> no. >> but when you think of broadcom, remember the caves, the layer. >> that guy. >> that guy. >> that's been awhile. >> that's what i think of. >> i'm not surprised. like sex slaves and drugs and all of that stuff. >> where is that guy now. >> you're thinking of that. >> and also broadcast.com which is mark cuban that he made so much money and then i was thinking how often do we show a chart of shanghai? because we showed one and talked about it for ten minutes yesterday at the 6:00 a.m. hour. i say why is it up 200%? >> pointed out that their company does nothing to explain why we have seen the run up in

the stocks. >> he said that and i said well the rational is they're entering into a qe like we entered into and we went from 666 on the s&p to up to where we are but they have been easing just as long on 2009 as well. >> regulators there have been very concerned about the run up in the stock market too. they have made more cautionary notes and tried to do more things over the last year to slow things down. >> i think my point is that we booked the segment yesterday on shanghai shanghai. >> because we were smart? >> we finally decided to look at it when it hit the top and was ready to go down 7%. if that's our role that's fine. at least we worked at it it -- >> they'll send you a lot of money. >> it was like why is this up here? there's no reason. don't forget that 7% times 18,000 here that's over 1,000 points. so this is you know, it's up

200 o%. but a thaw point pull back on the doubt is what they're experiencing there right now. >> should we go to singapore right now? sri is around and hanging out in singapore now with more for us this morning. sri. >> hey there, let me just paint some context of what happened today. this is the sharpest percentage decline since january 19th. the second shartestmartest this year you're right it was lead by the brokerages on reports that they're imposing tighter conditions on margin lending. so remember margin debt has fuelled this 140% rally over the past 12 months and consider this the amount of margin debt accumulated in the market now, 2 trillion. that's the record level of 3% of gdp in china. what it comes down to this is they want to reduce mitigate

moderate the excess leverage in the stock market right now. one stockbroker put it to me the regulators want a small ball. they do not want a crazy ball. i'll end by saying this. you have to consider the momentum of today's sell off and what it was and i think that it could persist into friday's session session. back to you now. >> thank you very much. >> you're most welcome. >> we appreciate it. we'll check in with him again. that's something we're going to keep a very close eye on. on the meantime let's take a look at the broader markets here in the united states this morning as we showed you. slight delines in u.s. stocks. nasdaq down by 9. let's look at early trade in europe. these comments coming out of greece that they hope to reach a deal soon. that most of the creditors were on board. that seemed o to beto be part of the

reason we're seeing strength here in the u.s. market. the imf will be the controlling vote on all of this. the dax is down by .04%. the cac is down by .6% and in greece markets down by 1% as well. let's check out oil prices. yesterday wti was down by almost 1%. you can see this morning it's up by about 20 cents but still well below $60. brent crude is up about 29 cents. it was down more steeply today. now trading at 62.35. the ten year note yielding 2.132%. let's check in on what's been happening in the currency market. dollar is down fwens the euro which is back very close to 110 right now. 10938. dollar up against the yen. in terms of gold prices this morning, it looks like they're up just slightly up by about $2.30.

$1,187.90 an ounce. >> i'm glad we do the jumble occasionally to keep my mind sharp because it starts to go. it starts to go. sorkin henrik nicholas the lair the cocaine, he had a beard. >> he did. >> who was the dude that allegedly got mad at the dog and shot his neighbor or something? >> that was a different guy. >> which guy was that? >> symantac down in the caribbean. >> first name nicholas. >> no i don't know. but he had a beard too didn't he? >> yeah. >> he was wacky because we had him on here. >> mcafee. >> right. >> symantec. >> yeah the murdering ceo, the guy from symantec. >> no no mcafee. what's that dude's name? >> his name is mcafee. >> that's right. he's back here now and

remember -- >> i don't remember. i don't know where he is now. >> and supposedly allegedly he thinks methamphetamine is this wonder dug. >> and people were following him and trying to get him. >> we talked about them both. >> but somebody killed the dog. did he kill the dog or he thought the neighbor tried to kill his dog. >> i'm looking at it. >> the thing was barking, barking, barking. >> hissing to was shot. >> shut up. >> but then he had all of these guns in his house. >> maybe we should stop talking. >> different people both insane and my mind is much. on the squawk planner today two economic reports of note. weekly jobless claims at 8:30 eastern and then pending home sales at 10:00. in political news former new york governor is expected to be

the latest candidate to throw his hat into the crowded gop ring for president and a speech to watch today former lehman brothers ceo dick fuld is expected to give his first public address since the financial crisis. he's the luncheon keynote speaker at a conference in new york. he now has a financial advisory firm. he hired some guy, some reputable guy with a big reputation to come. so it's been kind of nine years since he's been around. >> we're going to talk about this in the chairs a little later. >> well you still correspond with this guy. >> i don't. i would like to. i have corresponded one way but not the other way. >> i saw him somewhere. maybe it was the time when we went on our date. i saw him lurking in the shadows or where were we? remember when we when on our

date to see boardwalk empire? >> he was somewhere like that. >> was it robin hood a few years ago? >> i don't think so but i saw him and i said high to to him and he said hi. >> he's a good man. >> why aren't you corresponding with him? >> i would like to. >> he's not taking your calls? >> he's not taking my calls. >> well, you wrote a lot of stuff about too big to fail. did you not? >> i thought the book was fair to him and the film was fair but wasn't -- >> as fair. >> as -- >> there's different degrees of fairness. like different degrees of pregnancy. >> what? >> it's like your partially pregnant. you can't say your partially fair. >> i think james was a brilliant actor but if you were watching james woods be you. >> james woods is my new idol. do you follow him on twitter? >> he should be your best friend. he should be everything. >> but when he was with you he

was complaining that the next time the bankers go crazy someone is going to die, remember? someone is going to die. >> he is trying to sell a movie. >> i don't know. >> now he's traveling across the country and he's going to military cemeterysemi i see him tweeting pictures and he's upset with the obama administration and says i'll never work in hollywood again. >> he's been saying that again. >> that he'll never work in hollywood again. >> you can only be mad at the obama administration for six years. >> i think he was mad from the beginning. from the get-go. >> well he can think and read newspapers, right? >> let's talk about a couple of stocks to watch today. enterprise security provider palo alto networks with better than expected earnings and revenue. that stock looks down. teva disclosing more than a 1% stake in mylan saying that the

purchase underscores it's commitment to buy the company as soon as possible. teva proposed to buy them for $82 a share in cash and stock last points higher. mylan said it quote, grossly undervalued the company. it's pursuing it's own hostile takeovers. >> futures here are a trade lower at this hour. chief strategist at t.d. t.d. ameritrade. over the last three or four months, every time there seems to be a sell off that seems to have real rational to it and it looks like it's going to continue but it reverses the next day. i've seen it so many times and i don't know whether you can tell something from the vicks or from some other technicals that explains how one day it's down. there's just no conviction. it seems to end up around 181 or 182 on the dow and you can't put any faith in a one day move.

traders are really concerned about something one day and totally elated about something else and seems like they're minor. >> it's very true joe and, in fact, if you looked since april 1st we have been through 2080 to 2130 on the s&p 500 and we bounce back and forth. like the other day you have this big, what seems like sell off yet we still hold 2100 and we bounce back. to your point, we look a little bit weaker this morning so we may see a little bit of a sell off but when it comes to it joe we had a 20% jump on tuesday but overall it's still at such a low level and people aren't you know -- i think what's happened is over the last year and a half it's paid so much to buy the dips that people used to hedge more of their positions. they're hedging less and less as a portion of their positions. the one thing i would say viewers should keep in mind is that we have june expiration

coming up in basically three weeks. three weeks from tuesday and with that we saw somebody buying a lot of the june 18 calls. there's a big play out there to buy the june 18 calls. so that relates to back when the s&p 500, about a month and a half ago was just below 2060. so people are looking for some volatility. as you talked at the top of the show you still have greece on the horizon. the fed, and i think part of why traders are having such a tough time is we don't know what the fed is going to do. she did say we're going to raise by the end of the year but it's a speculation game. what day are we going to finally raise rates? we'll finally get clarity and more day-to-day follow through on our trader rather than a constant speculation. is it going to be june? is it going to be september? what are they going to say next meeting? >> do those june options expire after the fed or will we --

maybe people are buying those in case it happens? >> yeah. i believe it's the same day. >> okay. so it's just -- it almost seems like the market goes down to a certain level that people buy and then gets up to a certain level where people sell and then, you know it's on any given economic indicator or comment from a fed official or something out of china or greece and it's just a little bit -- i don't know what that really says. it's just a little conviction either way. now how about traders, wall journal, traders pile in at the close leaving a void at midday. maybe is the three really the most important hour of the day? because we used to say that. >> 3:00 it's not even there. it's the last half hour. >> we used to have someone that was the most important hour of the trading. anyway go ahead. >> well, a couple of things on that joe.

i think first of all, it has that last hour of the day. one of the things about that i think is because everyone is more kiddish than we have seen them in a long time you're starting to see a lot of rotation of assets at the end of the day. people staying in trades for less time. one of the things to watch is the relationship of fixed income and stocks. what's happening with the institutional firms, i might rotate out of some stock and put my money in short-term fixed income to rotate it back in they're using the 10 years and 30 years because there's so little interest to be had in the shorter term. there's been a little bit of a kang there and you may have noticed that rick talks about it all the time on your show. some of the relationship in the curve has changed because of that because the bigger traders are avoiding the shorter term products to go to longer term products even when they're just storing money temporarily. that's an interesting thing to

watch also. >> the article points out the danger here is it could mean a lack of liquidity. do you think that's a valid concern? >> right now i wouldn't say so. right now some of the mistakes retail traders make is trade a bio stock where the market is wide anyway. if you're going to trade the facebooks, ge apple in the middle of the day with plenty of liquidity. that is just fine in the middle of the day also. you're starting to see those that tend to have liquidity stay with it and those that don't may widen out more during the middle of the day. that could be an issue going forward. >> all right. thanks. >> always a pleasure buys. have a great day. >> when do the blackhawks play. >> great win last night. game 7. nbc network should be excited rangers friday and black hawk saturday. >> two game 7s i know. i'm not going to weigh in on any

of these because i told my daughter there's no way they're winning. we went to the game the rangers where they lost 2-0 and i said blake they're going to win tonight because i think there's no way they can win tonight. >> no team wants you on their band wagon. >> opposite day. >> i don't think they can win friday either the rangers. i'm on the record. but i don't know what people want. anaheim, chicago and new york will be good. is anaheim tampa bay a good -- >> you mean for ratings? media market? >> yeah. >> but chicago -- >> they can get involved. by the way, very quickly, just so we know nickels, remember our friend. >> nicholas from broadcom? >> yeah. >> remember he was charged with back dating in the end. it didn't happen. so i didn't know if we said that he had been -- i don't know oif

we got into it as more. >> we're worried about back dating. >> by the way, his pilot alleged that the pilot had to use an oxygen mask on the plane because of so much pot on the plane that he couldn't stay -- >> i thought it was a blue very well have the frank booth type thing you were getting to. do you remember that? do you remember frank booth? >> no no idea. >> dennis hopper in his most classic role. >> yes. >> now you remember. >> it's a big buzz story of the morning. jamie dimon calling out some of his shareholders speaking in a conference in new york said investors that follow the voting advice of shareholder advisory firms are being lazy. of course he said god knows how any of you can place your vote based on iss or glass lewis. if you do that you're just irresponsible. i'm sorry and you probably aren't a very good investor either.

>> love him. >> he also said bank officials have not done enough to show howell the company is run. it comes after one third of the shareholders disapproved of dimon's pay and the practices of one person holding the chairman and ceo roles. >> did you see who he was talking to there? this merger might be coming. >> do you think it's going to come back. >> i don't think so. >> did you see them talking? >> i don't think he liz belgelizabeth warren will allow it to happen. >> when we come back a sales miss at costco but first here's a look back at this date in history. ♪

welcome back to squawk box. costco with profit of $1.17 a share. revenue fell short of forecast. shares are up 26% over the past year. john was here. he covers costco and john you have a neutral rating on the stock but 60% of analysts that cover it has a buy rating. so tell us what is holding you back. >> we have been cautious for awhile. two issues number one, street expectations are too high for

the next two or three quarters. there's a lot of moving parts in their pnl, profitability, i think forecasting profitability is very volatile. we'll cycle unusual profits in the next couple of quarters so we thought they're going to miss at least a couple of the next few quarters. say the next two or three. you combine that with an above average valuation level. this is trading above where it historically has. that's not a good formula for out performance. >> when you look at the numbers and what looks like out performance you put that all on the profit of gas at the moment. >> you look today, missed on top line. >> how big of a difference is gas by the way? >> it's less important for sales. it can drive in certain quarters. so for example last quarter they

beat by 18 cents. the bulk of that was the profit. it didn't filter into the price at the pump. there was probably $100 million in that quarter. so it's significant to the bottom line. less to the bottom line. >> when you take gas out, the larger problem is what? >> there isn't a problem. the fact is if you think about what we tried to do. >> you think it's a stock market problem? >> i think it's a valuation. that multiple an you're probably going to miss more often than not over the next year that's not good for the stock. that said if you step back and try to deconstruct everything and say what's the core business doing, it hasn't chained. high single digit sales an even growth. that's continuing. >> lastly. >> yeah. >> american express, this whole switch, what do you think is going to happen? we know that the switch is

happening. but what does it mean for the business? >> slight positive for costco. at the end of the day a customer isn't going to go because they no longer offer american express. they'll get a better deal with their new partners. pass half of that on to the customer. keep half to themselves which we think is about 25 million a quarter. it's a positive. >> we'll leave it there. thank you for coming in this morning. >> coming up t home where f. scott fitzgerald penned the great gatsby is for sale. but first a look at s&p 500 winners and losers. ♪

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the home where f. scotts fitzgerald penned the great gatsby is for sale. it could be yours for $3.9 million. they rented the home in great neck new york from 1922 to 1924. that's pretty cool. >> do you know all about there's an east egg and west -- do you know about that?

sorkin you're not a hampton's type? >> no i'm not. are you? >> no i just remember not being from here. i went to a wedding and read greats gatsby and knew there were places. >> i still couldn't figure it out but that was my introduction to the hamptons too was the great gastby. >> i used to live in that house. >> you grew up in that house with that silver spoon up your -- >> there's a new bug that lets anyone crash your iphone with a simple text. that's why your phone went dead yesterday joe. there's a message with a specific stream of characters that can shutdown your iphone. it just reboots it. in a statement apple says we are aware of an imessage issue caused by a specific series of unicode characters. >> it shuts down your phone, reboots it. is there any suggestion that it

inserts anything. >> no when you mean losing things if things are not saved in the way they should be at that specific moment. >> you don't have to click on anything? you just open it. >> i think you just have to open it. >> someone has to send it to your phone number. >> it's a really weird string of characters including some -- not those, emoji things. >> you know how you see the text before you open it? does that count? or if you don't go to that message? >> i don't know. there's people online that tried to recreate it that say it doesn't happen to their phones. >> watch how i do this now. when was the last time you got a check from too big to fail? you still get them right? from the book? from the movie? >> sure. >> i'm trying to help by talking about james woods again. you hung out with him too.

>> yeah. >> i've been in his presence but i've always been -- i was a big fan of his -- did you ever see savl salvadore. he plays sleeze better than anyone in the world. how about no way out. >> that's true. >> just phenomenal. anyway. i have been following him lately. >> in a stalking sense. >> i have been following him on twitter because meeting normal nice people and going to little diners and stuff taking pictures with them and the beauty of the southwest, he a guy driving him around but i love this guy now and you hung out with him and went places with him. >> he's a very nice guy. >> you're friends with him. >> i don't know about that but i like him. i'd be happy to be his friend. >> this raises my opinion of you. >> can you bring him in. >> maybe, you know what today would have been the day because

dick fuld is going to be on our air later today. >> this is is why i did this. >> to lead right into it. this is the first time that he has publicly spoken i believe since the crisis. actually probably about two quarters before lehman brothers went under. i still think he works there. used to have an office through here. >> what's the speech about? and as you mentioned in the last hour or last half hour he's going to try to get into the real estate business. a former executive is where that executive came from. trying to do private equity work and other things. i don't know if this is part of a public come back campaign. >> like a return. >> i'm not sure what his ambitions are. but i'd like to hear what he has to say and he has a lot of views

about what the government did from that period. >> what he did at the stock and everything else he has this look that's kind of a cool look. so he went from greatest ceo ever hard driving to where the same look can look very villainous. >> he was on the cover of new york magazine. >> that picture. remember that? >> yeah. >> him as the villain and someone illustrated him. >> i finally saw the golf course. when we go to sun valley that's a beautiful course. >> he still out there? he has a house out there? still plays out there. >> you should bring the minions out to play at sun valley. >> there's a picture of the minions in too big to fail. the whole group. >> minions has a new universal film coming up too. >> it's going to do quite well. those new? did you see those things?

>> are they new? >> they're sort of new, yes. >> sort of new? >> i haven't had a reason to wear them. i've worn them with jeans. i've worn them way suit. >> i have sneakers on today because i have a blister -- i have a blister on any baby toe on the end here and it's really not very good but scott wears cooler shoes than these i'm sure -- >> you haven't had a reason to wear them. >> i can't think of a possible reason in the world to wear those. >> to wear sneakers like this. >> there isn't any reason in the known universe. >> i could show you my toe. >> no. >> no. >> there's a reason for these shoes. >> a what? >> it's a little -- >> easy boy, down boy. >> can i tell my story. >> yeah you can but maybe that guy could give you a foot massage. >> that would make it feel better. you don't like these shoes? >> they look really new.

i like the red trim on the back and everything. >> thanks. there you go. >> who made those? i'm sure they're expensive too. >> no i got them on sale. i was excited about that. >> let me tell you about another story very quickly. any of you -- you both have landlines at home still, right? >> we do. >> i couldn't get all my solicitor calls. >> does anybody get a call at their home phone. >> my mother occasionally. >> for the most part though you know that if the phone rings at home it's a robocall. tom wheeler is trying to step in and make it tougher for those to go home and not only home but your cell phones and text messaging. i don't know why i still have a landline other than emergency. >> you go a long way to bringing him back a little bit where i don't revile him to the extent that i do right now.

>> this was something i was in favor with. >> what is the president? you better ask him to know what he needs to do on this. >> i put myself on all of these do not call lists and i still get the calls. >> but i think that's the problem. when you first put yourself on the do not call list probably 15 years ago it was an effective measure. since then there's been all kind of work arounds. >> survey you're allowed to call. >> i occasionally just go along with it and give them a hard time. i tell them crazy stories. >> i used to curse and all of that stuff but i'm going to get recorded like that poor anchor person and i don't do it anymore. i try to be nice now. >> my brother about 20 years ago very briefly had a telemarketing jobs which are the worst jobs on the planet. he stayed for three months and they gave him an award for being a long lasting employee. >> if you had gotten with which

you never will if you had gotten x 1 and the comcast, i see on a 75 inch screen who is calling. mother-in-law, whatever. >> time warner cable that is one of the services they offer. >> but you don't have that. >> i have that. >> you see it come up. >> i see the phone number. when you call all the time. >> that's one of the minor features. the major ones, there's a lot your missing. >> gopro jumping into virtual reality and drones. we have the details when squawk box comes back live from the heart of midtown manhattan.

welcome back to squawk box. tech leaders gathering in california for the code conference. gopro says it's going to the virtual reality and drone markets. a six camera device to capture 360 degree video. it plans to come out with a squad copter drone. here's the founder and co-ceo. >> drones. >> quad something or other? >> so do you guys all want gopro to make a quadcopter? do you guys want gopro to make a quadcopter. it's official.

you may think that i'm joking. but we thought it would be terrific here to drop the news that we are officially developing it. >> i know i just dragged that out of you. >> check out shares of gopro up close to 3%. we'll have more later this morning. there's the drone which is one piece of o it and then that's the quadcopter. and then this virtual reality. >> either on or off camera has really talked about this oculus stuff. this is going to be the sickest thing. >> they priced it finally, yesterday. at this conference. >> i read articles about how they're work on this. so many of these technologies

first emerge. >> that's where the money is. >> this is sick because they're sinking up. what you're seeing are things that you're playing with and it's going to be a really messed up world. >> they finally came out with pricing yesterday at the conference and they say the first ones will be about $1,500 to get set one the oculus. not the attachments. >> okay. all right. >> $1,500. they hope it comes down to about $1,000. >> just to see what the thing looked like and they would be -- you hook them up to your iphone the world is insane. i don't remember the name but there's two different competing but they're iphone ready. irs phone ready. >> i'm sure they are. >> i don't understand what the iphone could possibly do. >> joe is ready too.

>> i don't understand either. i'll give you the website. you're afraid to look it up. >> when we come back a stock with formidable power. shares of black and decker trading near a high of 80% in the last five years. good music for this. the company's ceo will join us next. first as we head to a break check out the price of oil. yesterday you saw crude oil prices pulling back a little bit. this morning wti is up 14 cents to 57.65. stick around. squawk box will be right back. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely

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welcome back everybody. we are going inside the tool shed with the world's leading tools and storage giant. stanley black and decker. shares of the company trading just below their all-time highs with the stock outperforming the broader industries by ten percentage points over the last year. joining us on set, the chairman and ceo of stanley black & decker. >> great to be here. >> the stock up about 18%. that's pretty phenomenal growth. what do you think the markets are seeing here? >> i think we're pleased with that obviously. 172-year-old company. i think we're being rewarded. we've always been rewarded or recognized for operational efficiency. we call it the stanley fulfillment system.

efficient use of assets but of late our organic growth has been at the high end of our pure group. i think the combination of pretty good operating efficiency, organic growth a lot of which is product driven and a lot which is just good retail partnerships both domestically and abroad. with growth in a flattish market that is being recognized and the investment company has responded with el.well. >> the u.s. market depending on your source probably low single digits. we're two and three times that in our tools and storage business. but the real outliefor us is europe. in a market that is flat at best. >> right. >> that's a combination of really really good and customer

and user acceptance of a variety of new products. global tools and storage, industrial products, as well as some good retail partnerships. expanding our penetration with particularly with the large retailers. >> you're not abroad are you? >> 50% of our revenue is outside the u.s. half of that 50% is in europe. 25% of our business is in europe. >> what about the dollar? >> that's difficult. as they say, organic growth first quarter was 8% and almost all of that was offset in terms of revenue. 7% for exchange. and we're dealing with about $200 million this year. of exchange head wind to your point based on the strength of the dollar. >> you brought a few toys aroundwith you. >> toys. bite your tongue. >> for other men i know. >> for real men. >> you can use these.

this is probably these are probably two great examples driving the organic growth. we have two products here. both they're dewalt products and three of our brands dewalt stanley, black & decker, really known around the world. dewalt professionals. 72% of what we sell as a company go to folks who do it for a living. these are both professionals. >> so for us amateurs -- >> i'll give you the example. >> would someone in a house buy a leaf blower. >> they wouldn't need it. >> a landscaping company has those. >> this is new. this is a 20 volt dewalt drill lithium ion battery. what makes this product so successful you get 50% more run time. 20% more power and it's lighter and smaller than a conventional drill. so, all of you know all of that really relates to efficiency on the job site. >> my guess is though that

these are pretty durable tools. >> essentially a, essentially a lifetime warranty other than certain parts in which case we'll repair it. >> like what apple does. >> andrew bite your tongue. >> you don't want things to break in this area. >> that's true. >> what else you got there? >> this is a new product. we put the dewalt brand and a tremendous benefit of the merger stanley becker years ago. professional brand where we had black & decker and stanley to a lesser extent outdoor products. this is a, excuse me 40 volt lithium ion leaf blower with tremendous advantages. joe, you pointed it out. but a landscaping company would use this particularly in a gated community, places like that. because it has the same run time as a tank of gas. much less vibration, i won't

turn it on. it will blow the studio away. but much lower less noise, lower emissions. you don't have to fuss with changing a tank of gas and every bit as powerful. >> john, we are about out of time. but there are questions about the security business. >> we were very public in our investor conference about a week ago. the answer is a year to a year and a half from now. we'll take a view. we love the business does it fit in our portfolio. is it performing up to our expectations and we'll take a good look at it. is it adding value to our shareholders. we've been pretty clear on a timetable. >> you sell chain saws? >> we sell small ones. not to professionals, we have a black & decker lithium operated saw. >> in caddy shack bill murray uses that to clean his, chevy

chase is really dirty. >> you just made an interesting point. you did this. that's a cord. you don't do that. you press a button. >> turn it on as we go to break. >> clean up around here. >> does it work? waste management ceo david steiner runs the largest trash hauler. we'll talk about what is happening in texas and the economy.

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built for business. market alert. stocks slammed in china. breaking an eight-session winning streak and the dollar hiing its highest level against the yen in more than 12 years. new hopes for a greek deal. a government spokesman says they aim to have a deal by sunday. european officials say, not so fast. and a war in wearables. jawbone crying foul. the company taking fitbit to

court. we'll tell you why as the second hour of "squawk box" begins right now. live from the beating heart of business new york city. this is "squawk box." good morning, again, everybody. welcome back to "squawk box" here on cnbc. first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. the dow futures are down by about 20 points. nasdaq futures down by 4 and the s&p down close by 2 points. overseas stocks in china were slammed. down 6.5%. that is the biggest one-day selloff since january. kind of surprising to think about that being the biggest selloff since january. you can see the hang seng was down by 2.25%. take a look at currency.

124.07. dow is down against the euro. oil prices we've also been keeping an eye on that. slightly higher after a two-day slide. we do have u.s. inventory data that is due later today. okay. some other news. it is official right now. avago technologies is buying broadcom for $37 billion in cash and stock. we talked about that deal in the last hour. joe had done a little -- >> i never heard of it. you know how to say it? is it avago. >> it's been back and forth. >> probably avago. i don't think it's been back and forth. >> i actually heard, but we'll go with avago for right now. >> doesn't matter. >> but it's a huge huge transaction. >> it is. >> we're also talking about broadcom and the history of broadcom.

>> or the history of avago. >> and then it came back. >> and among the other stories we're watching this morning. greek government official says the country aims to have a debt deal by sunday. the german finance minister says he was surprised by the upbeat tone. also a war in wearables. jawbone now suing its rival fitbit. approached employees who downloaded confidential information before leaving. fitbit planning an ipo. we'll see what that does. if it makes it a little bit more complicated. the pentagon says that lethal live anthrax was sent to labs in as many as nine states and overseas. a utah lab was supposed to ship inactive anthrax samples for use in training exercises, but mistakenly shipped active samples via ordinary fedex

packages. four workers and 22 people at the u.s. base in south korea were treated for possible exposure. a severe weather update. 23 people are dead and 8 still missing after storms ravaged texas. slow-moving thunderstorms are likely to produce more rain and flash floods in kansas oklahoma and texas. last night a tornado in the texas panhandle struck an oil rig injuring three people. flooding and downed trees closed highways in the area as well. our guest host company is headquartered in houston and we're going to talk to waste management ceo david steiner about his business and read on the economy. but let's start with an update on that storm damage in houston which starts us out in a very serious way, david. i, we'll get to that in a second. but i can't start with you. you know that. you expect me to say something. you know i'm on the record after

saying a physician, a person's garbageman is the most important person in their life. try to live. it's a noble profession. but i always have to kid around a little. like if your kids or someone, what business is your dad in and if they say waste management everybody gets nervous. but you really are. in new jersey if you're in waste management, you get nervous. if your you really are in waste management. >> we came into new york city 25 years ago and i wasn't with the company then. but we were nervous coming into new york city. >> in waste management. >> all right. we will get to the economy. but you are based in houston. >> we are. >> as well. and i understand your guys just getting to work, just getting to the trucks. you had 80% showed up and 20% couldn't even do it right? >> you know at waste management, we really are the first responders.

what do you want after a disaster? you want someone to help you clean up the mess. and houston, i'm not a native houstonian, but as they say in texas, i got there as soon as i could. houston is the kind of city we saw it with hurricane ike that came through a number of years ago. communities work together to clean up. you have the mayor and you have the judge that runs the county and you have public companies and private companies all working together to address the cleanup. so you know houston really is a city that works. i mean it's a city where government works, where industry works and they work together. pretty rare in this country. but houston is a place that gets things done. >> in a state that works pretty well. >> absolutely. >> although there's always something that the naysayers can point to about texas. when you have that much independence and you have the private sector sort of dominating a lot of things and you're going to hear that education is -- >> obviously. look, every state has its

challenges. but, you know a lot more businesses moving into texas than they are moving out of texas. >> so all things hopefully pass and amazing that you know not just the loss of property but loss of life in this case has been substantial. >> and it's amazing when you look at what happened down there, it literally i now know why they call it a flash flood. they literally had situations where people were on the interstate and within three minutes they started to try to back up because they saw the water in front of them. within three minutes the water came and submerged their cars. >> totally flat and no where to go. >> this is not, houston is known as an area where this can happen. but, still, when it does it's mind boggling. >> okay. let me switch gears a little bit here david. because it all, looking at your most recent report recycling business. you can call it an absolute disaster. but that's partly because of the

commodity price that you get that it can command now. you just look at the energy complex in general, whether it's crude, obviously. but natural gas, too. you're trying to go to natural gas trucks. maybe this doesn't make as much sense now. you're trying to do recycle and looking at renewable energy. without subsidies maybe that doesn't make as much sense with oil as it does right now. the whole world and what we thought we needed to do and what would make sense and be feasible, it's changed. >> i didn't come here to hear how bad my business is joe. >> not you. not you, but, what waste management is the main part of your business. but you know what i mean? look at all the stuff we decided to do with our energy policy. it's all up in the air right now, whether it makes sense. >> and, you know we aren't asking for a handout. we're not asking to subsidize recycling other than when you have situations like you have today where it becomes unprofitable to recycle. we all know what happens when it becomes unprofitable people

don't invest. the last two years we haven't invested any. so, you know we've got to get to a situation where anyone that recycles, not just waste management, that anyone can do it. when you look at the last epa report, what you saw is that recycling actually went down in the united states from about 35% to 33%. there's a new report coming out this year. i expect to see that go down once again. so, i think as a country, we need to make a decision. right? we need to say, do we want to recycle? if we can, let's make it viable for the long term rather than seeing these various fluctuations. >> you got out of waste energy. complimented you on that. you can't get out of everything. >> you know look it revolves around the customer and the customers still want recycling and no where in this country do you have a customer that says we don't want to recycle, but we just need to work out okay if you want to recycle, how are we going to share the costs of

recycling. >> down 10% because of recycling. for the whole company. just based on what happened. >> so when you look at our business, it's interesting. when you look at our business the other pieces of our business, which are 90% of our business. the other pieces of our business are really starting to show some great signs. i guess as the ceo, everything is not always perfect. if everything was perfect, they wouldn't need us. so, we do have the chal chk in recycling. but right now the rest of our business is doing real well. >> in a perfect world. how are you going to fix the recycling piece? what has to happen? share the cost. what does that mean? >> traditionally i'll use cardboard because it's the biggest recycle commodity. typically cardboard will sell for $100 a ton. we'll go to our customer and we'll give you 75%. you get $75 and we get 25% and it costs us $20 to process it and we make money. when the price goes to $50, now

they get 75% of 50 and we get 12.50 and costs us $20 to process it and now we're losing money every time we process. >> why don't you change it so you never lose money. look as a consumer especially with cardboard. i think of the number of amazon boxes that show up at my house constantly. as a consumer i understand that. i don't want you to stop recycle because you're losing money on that. is it difficult to change those agreements? >> no, it's not difficult to change. but we have three to five-year agreements and you have to wait for the agreements to roll over. in the meantime, what do you do? you disinvest. we recover our processing costs. we will split what's left. >> what is the margin you want on the recycling piece? >> look as a public company, you have to earn your return on capital. right? we have roughly a billion dollars invested in recycling assets. roughly 8%. and, so, you know e, we need to earn more than that average cost

of capital. >> all right. we're going to come back and talk about more stuff. because you said something interesting about the rest of your business. it really is a strong economy generates more garbage. >> absolutely. >> we'll figure out how the economy really is whether it's a 2% economy or 3% economy. >> all right. >> then we'll putt out there. >> no you're going to putt. >> putting green. >> i have tried. how do you putt now? conventional putter? >> oh, yeah. you're not doing the claw or something like that. >> i've done -- i've done but i'm okay now. >> really? >> yes. >> that's what they all say. that's what they all say. >> so long that i'm out. i've run out at least with putting. you know there's that moment every once in a while. but the claw is much better. look at sergio. >> well they talk about grips. we're going to take a commercial break. when we come back the squawk

platinum portfolio outperforming the s&p. an update on small cap picks. and then oil prices dropping and a new report saying that opec won't cut production at its next meeting. plus, why women and millennials aren't creating businesses. kate rogers has some new data on entrepreneur entrepreneurship. we're back in a moment. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long

you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

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welcome back everybody. the platinum portfolio outpacing the s&p 500. up over 7% year to date compared to the s&p 500 which is up just over 3%. craig hodges and joins us right now on why he is sticking with his picks this quarter. craig, good morning, good to see you. >> mrerspleasure being on, becky. >> you think the market is misjudging some of these situations. >> a couple weeks ago i was doing well in this this competition. but american airlines has, there's been a real kind of seat change with the perception of american. >> there has been with some of the airlines overall. people think discipline is starting to break down again.

what is your thought on that? >> i think that's a big misconception. there was a comment from southwest airlines about capac capacity growth and that really has to do with the right amendment there in dallas where there is a bunch of new markets to go into and then american was asked about pricing and they said they'd be aggressive on pricing and the whole industry took that or the whole market took that as you're going to esee kind of what used to happen. the difference now, three airlines. that is when there was eight airlines. all the fierce competition. so, i think it's a big misconception. americans are going to earn probably $10 a share this year and probably 8 next year. stock is at 42. so, four times earnings. will it trade three times earnings? maybe. i think the upside from here. the upside down side risk i think is a pretty good scenario at this point. >> in terms of the earnings. $10 this year and $8 next year. why the decline in earnings? >> just people are starting to see that maybe you're starting

to see the capacity. there could be some slight growth. but, really i just think that earnings you know, $8 earnings. that would be amazing. what really could happen here with the airlines if you look at all of them and see the earnings estimate. you can have a whole reconstruction of the airline business. most of them are, you know have big debt and that sort of thing. and, you know, they don't trade any market multiple. you get four or five years of earnings like they're going to have you could maybe get more of a market multiple on the airlines instead of four and five times earnings. you may get a 10 to 12 times earnings. you get serious earnings expansion. a couple years ss out. oil is going to stay down. that is going to play to the airlines plan. >> let's talk about eagle materials because that stock is one that you like. it took a hit earlier in may. down about 6%. >> started a fracsand business about a year ago and for the first quarter, the sand business

was down. but it's a very small part of their business. their main business is cement and wall board. both of those areas are doing well. the pricing in those areas are holding up well. we see eagle having kind of a peak earnings of $10 to $12 a share. maybe $8 to $10 a share. stock around 84. it is a very inexpensive stock. >> a play on construction building. >> when the cycle starts. the next economic expansion building and you'll see them take some advantages from their efficiencies and such. you can see earnings go up pretty dramatically. >> quickly, let's talk about trinity industries too. >> another really low-key stock. been a lot of talk during the kind of barge and rail car business. but they had this small little unit that's had some lawsuits and stuff. but you've seen some insider buying recently right in this range. some significant. not just token buying but some

real insider buying. i think that's a good vote of confidence that this little lawsuit on their guard rail business is not going to be a significant thing going forward. so trinity trading about 8 times earnings looks very very good. stocks around 30. >> craig, thank you for joining us today. >> appreciate it. also a reminder for you. you can go online to cnbc pro on cnbc.com to track the picks of all our portfolio managers. and kevin landus op-ed on picking performing trades. coming up dishonesty the truth about lies. a fascinating new documentary on cnbc examining the darker side of the human character from a wall street trader to a disgraced nba ref convicted of being on games. stories you need to see to believe, right after the break.

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>> nobody would do that. what about kicking the ball? no problem whatsoever. what about hitting it with a club that is even easier. you know what is the easiest? if you're not looking. you look up. and i think you can feel the intuition that if you pick something up and you moved it the act would feel incredibly deliberate. but if there was some distance you kicked it something happened. all of a sudden this distance would allow people to have a big more ambiguity between them. the final act. that was a clip from tonight's cnbc's premiere of "dishonesty the truth about lies." joining us with more dan arieli.

thank you for joining us this morning. >> my pleasure. >> we just saw you talking about golf. why tiddid you make this documentary? what interested you in this topic? >> i have to admit the initial reason to do it was to examine my own dishonesty. i was on the flight and there was one of those tests of the test that tells you how intelligent you were and i looked at the question and i said, you know i think it's b. and i looked at page 174 at the back and i said yes, it was. i realized i was always looking at the next answer. when i went to the next question i was kind of you know a little smarter. anyway, i finished the test and i really wanted to see, you know, how smart i am according to this standard. but i realized i was cheating and i wasn't cheating anybody else, i was echeatingcheating myself. by the way, i came out incredibly intelligent and then i started thinking about other people's dishonesty and to what extent. how do we think about?

i did a little study to start with and had some results and then enron came about. you see, in my study, there were lots of little cheaters and i didn't find any big cheaters. when enron came about. we all thought there were three bad people out there and the intuition, yes, there are bad people and good people and if we take the bad people and just take them out, everything will be okay. but my study did not show it. they showed there were lots of little cheaters. and all of us had the capacity to cheat a little bit and then go down the slippery slope. so when enron came about i said, you know this is more important because if we don't understand what causes dishonesty, we're not going to be able to reduce it or curb it in any way. we had the wrong theory. our solutions are going to be misguided. experiment in the lab. >> so help us though understand how we sell it toolve it to the extent it's solvable. what is it about the environment

that we can avoid to avoid dishonesty, even though you're suggesting everybody to some degree is dishonest. >> yeah. so the thing to understand is that it's not about the fear of being caught. so, think about a timeline and you have time before you have an opportunity to cheat, the moment you attempted to be dishonest and time afterward. the rationale theory of crime and deterrance. make a big punishment. give people the death penalty or many years in prissen and people will think about the long term and they will behave well in the beginning. by the way, almost every aspect of human behavior. this is why we overeat and undersave. so, this theory of saying you incorporate the thing at the end doesn't work out. what is this honesty all about? it is about when do you feel okay with something? what causes it? it's about rationalization.

so, for example, everybody else is doing it. doesn't make anything more legal, but it makes it more comfortable for us to do it. distance from the act is another one. >> dan, when you look at different industries. we've been talking about wall street. we had an author in the other day, we were talking about whether wall street was more honest or less honest than other industries. are there particular industries or worlds that you think are more honest or dishonest than others? >> i do. but i think it's not about the people it's about the set up of the industry. so we find that conflicts of interest are basically corrosive. and, look if you're a fan of a sports team and you go to see the game and the call is calling against your team you can't see reality. you can't see the referee as anything but evil stupid blind, something like that. your motivation to see reality in a certain way causes you to

see reality in that way. it's not about being bad. it's about being human. now, think about which industries have motivational power. maybe not about sports but financial motivational power. every time you have a conflict of interest and a high degree of gray zones, you're going to get bad behaviors. so, think about lobbying. look, the fact that you can buy somebody a beer and a sandwich and they start looking at you in a different way and start liking you is a really nice thing in this social realm. right? you can go and meet somebody and buy them a sandwich and all of a sudden they like you better and life is good. what happens when you incorporate this into something like lobbying which has a business element to it and all of a sudden you buy somebody a sandwich and they can see the world through your perspective and wall street of course a tremendous amount of conflict of interest. imagine you're in charge of

401(k) plan and you get more money for trading some things than trading other things. to what extent can you view things in an objective way? it's actually humanly impossible to do it. >> dan, real quick. joe made the point yesterday, two days ago when we were talking about this topic. the plumber, the plumber seems to always be dishonest. we oftentimes look at wall street or lobbying which clearly have a target on them but there are other sort of parts of the world -- i'll let joe do it. >> dan, should we wonder why government is so corrupt? which is that's the largest. you said lobbying and people that have their, the control of everything that's going to be done. whether it's public works projects, whether it's soccer. that's not government. but think of people who rin a position, as you say, to be influenced by perks of some kind. i mean government would seem to even out wall street in terms of having the opportunity to be corrupt. >> you know, i think this idea

of who is competing to be more corrupt is a terrible is a terrible competition. but, i think it's absolutely right that we need to think about where there are cases of conflicts of interest. here is another thing about corruption. imagine i invite you to an experiment and i say, look there is an experiment that you can make $4 and an experiment you can make $40. why don't you toss a coin and let's see which one you get. you toss a coin and no matter what you get, we say, oh, you have the low-ending one. now, i say, look come closer. and i say, look my boss is not here right now. so, if you'll pay me the $2 you got for bus fare i'll pretend you got into the other condition. so, i'm basically asking you for a bribe. what percent age, what percent of people do you think give a bribe under those conditions? >> i dont know. 25. >> so about 90.

90%. what happens once they give the bribe? the morales just go away completely. so, you see what happened is when you go to a new environment, whether it's government or wall street or whatever it is and you get the sign that this environment is corrupt, very quickly you abandon everything you learned before and you say this is how the new environment is. let me play by these rules. so we really need to think about what are the conflicts of interest in the environment. what is the environment communicating to the people there. it's not that bad people have gone to government. not that bad people come to wall street, but the environment is such that it has very corrosive effect on people. >> dan, we appreciate it very very much. it's a fascinating story and a fascinating documentary. and we appreciate your time this morning. >> are you honest? >> i hope i'm honest. i'm trying to be honest. >> no in your kaumpt lmentcompliments here? >> i'll watch it tonight and let you know. "dishonesty, the truth about

lies." when we return the price of crude down by more than 5% just in the last seven days. there is key opec meeting on tap next week. new reports this morning saying no production cuts are coming. what to expect, next. right now as we head to a break. take a look at the u.s. equity futures futures. the dow down by 30 points below fair value.

it was me. welcome back to "squawk box." buying broadcom. the deal is valued at $37 billion. amazon is expanding its same-day delavely to san diego and bay area. and comedian tracy morgan settling his lawsuit with walmart for an undisclosed sum. morgan was badly injured and his friend comedian james mcnear

was killed. morgan said though that walmart was very fair to both he and his family with this deal. a new report this morning says opec will not cut production at its june meeting next week, that is according to a saudi arabian newspaper. crude prices coming off a two-day slide. they have been up a little bit this morning. things have turned back around. down 5 cents to 57.46. john is the founding partner and also a cnbc analyst. john thanks for being here today. >> good morning, becky. thank you. >> a lot of people we talked to said they think oil will be normalized between $60 and $80. what do you think about that view? >> i don't think the saudis are done shaking out this market and to use the popular term these days. the report is 100% accurate that won't be a production cut next week and we also saw a pretty interesting article in reuters yesterday about how athe russians got pull under to joining saudi arabia and pumps as much as they can. you got the russians, the saudis

and even the u.s. right now at record production levels and a real battle for market share and a real battle for the saudis to squeeze out the player with sort of the delicious side dish of putting it to iran in particular. >> john, it makes sense to me that they want to squeeze out the u.s. shale production. but it seems like the damage is done at this point. i almost wonder if they would be better off with a volatile price. one that goes up and down and it's an unpredictable price because that keeps long-term investment out. >> for sure. even with our count being cut in half. u.s. production has just really steadied at or near its record levels. we'll see in the report if it ticks up. you know the ingenuity of these guys in the u.s. shale space is remarkable. they've been able to shutter rigs that were inefficient and keep only the most efficient ones on track here and in production. probably in some of the play

for example, break evens got pushed down to around $35 a barrel. so, i think the saudis still have their hands full and they don't feel they're done yet. >> if 35 if a lot of these wells can still produce profitability at $35. it sounds like the saudis can never break that without breaking themselves in the process. >> it's going it be tough. i think they're okay here around 50, but we're already hearing noise and even the rig count ticked up one last week with prices, you know flirting near the $60 a barrel here. there is a lot of what we call ducks sitting out there ready to go. they're drilled, but not completed on completed wells. so, yeah i think there's this whole sort of sleeve of additional production ready to keep for this market. the upper end of this thing never gets worse than 60 or 70 beck. i think the downside will get brutal particularly when the refiners go in their seasonal maintenance and the oil backs up in the system like we saw late last year. >> the technology has gotten so much better when it comes to

what they're doing here in the united states at this point. can they is it closer to nipping a switch where you can turn the production right back on every time prices go up? >> pretty much. that's what i refer to these ducks that we're calling them. they're drilled and ready to go and just flipping the switch now to extract the shale oil that has been set up to go. so we're going to have this lid on prices for some time. and i think, again, it's going to be significant breakdown, again, here later in the year. >> david, what does that mean for your business if john's right? >> look, obviously. we're a large user of diesel. we have about 20% of our fleet now that is natural gas. for us low, natural gas prices are great. you know long term i think, you know coming from houston, we to a lot of the energy business down there. i think you're exactly right. i think long term 60 is going to be tough to get above. for us, it's couple hundred million dollars, but we have a fuel surcharge.

we're sort of naturally hedged with respect to our fuel. so, low fuel prices don't hurt us. high fuel prices they hurt us because they hurt the general eeconomy. >> i would say from a broader perspective, low fuel price is probably good news in terms of extra generations. >> what is good for the u.s. economy is good for us. low oil prices have given a great dividend back to the american consumer and now we have to make sure they spend it. >> for exon and the big intuagrated companies. we have such a refining advantage with the low-input oil costs and our refiners are so big and so efficient. producing a record amount of gasoline currently. a lot of that is going to export. contributing to our trade balance and the gdp. upwards to a quarter or half a point from this export activity from the refining sector. one of the bigger things that we'll have to watch for my scenario to come true is whether or not the iranian nuclear deal goes off the rails or not. there's some, some of it has been priced in and it will hit

the market rapidly and i believe it will, if there is a deal maybe even if there's not a deal. i don't think the coalition will hold together past june 30th to keep the lid on iranian oil sales. other buyers will step in ask take more because they're just so well suited for it. they want to get it back. game over on that. that's another aspect of this whole situation. >> john thank you for coming in. great to see you. don't be a stranger come back soon. >> absolutely. thank you very much. when we come back this morning, entrepreneurs on the rise. not all groups of americans are creating businesses equally. new research says that student debt may be a factor. kate rogers has the data and we'll talk start ups with the editor and chief of inc. magazine. stick around, "squawk box" will be right back.

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women and millennials apparently missing in action. cnbc kate rogers joins us with more on that story. >> good morning to you. entrepreneurial activity is on the rise. annual look finding that a downward trend that began in

2009 reversed this year which is very welcome news. in the report 310 out of every 100,000 adults in america were starting new businesses each month. compared to 280 per every 100,000 in 2014. this nearly 10% increase is the largest in two decades. with 63% of men starting new businesses compared to 37% of women. that's nearly a two-decade low for new startps launched by women. researchers say this is due in part to a boom in construction and in manufacturing, which are more male-driven business models. and, finally here young entrepreneurs lag while those age did increase to 25% from last year's 23%. in 1996 the number was nearly 35%. now, researchers say while there is no hard evidence here student debt is likely a factor. >> that makes sense.

>> definitely makes sense. >> kate we've talked about it before, but older people who are going into ontripnerrial positions that is happening because they are forced into it too. if you're over 55 and you get laid off sometimes it's hard to find another job in places. >> that is certainly true in the recession. but i think those entrepreneurs, you have to remember they're more experienced. they maybe tried their hand at this before and likely have more success and more willing to take a risk than these younger entrepreneurs who are saddled with all this student debt. >> kate eric schurenberg is here. older people who are entrepreneurs now. are they as successful being entrepreneurs? there is sort of a view it's a valley view that you have to be under 35 to really you know shoot the moon and make it big. >> you would totally get that impression of what comes out of silicon valley. if you look at the rest of the country and broad sweep of entrepreneurship most are in

their 40s. when you think about it it makes sense. these are the people who have a lot of sills and experience in their career and they also start their companies with contacts from the job they had before they started. >> what do you make of this gender issue? >> i think entrepreneurship has been associated with people's willingness to take risks. i think there are long long-term studies repeated many times so that women, as a population, are more risk averse than men. so it's just been the kind of thing that has always skewed entrepreneurship towards men. i think that what we're seeing in women and also millennials the lingering effects of the financial crisis. people just don't yet feel safe enough to go out and start a company. >> but when you think about, we celebrate more and more women in business and in the workplace than ever whether it's fortune magazine doing aapologies. this conversation happens all the time. we talk about diversity in

theworkplace. you would think that more women would want to take these risks. >> you would think so. and, indeed there are some really significant successes among women entrepreneurs. when you look at the population as a whole. women entered the labor force but they haven't taken the next step to start their own companies. >> one interesting thing out of this kauffman report in the past more women were more likely to be opportunity entrepreneurs. they weren't looking for a job, they weren't doing this out of necessity. they felt they were ready eto take on the risk. but in this particular report more men were taking that opportunity. more men were entrepreneurs than they have been in the past and that's why the share of males have increased. >> that aspect of male entrepreneurship why the rates among men are so volatile. they go up a lot when men are forced into entrepreneurship by necessity necessity. for women, that number is fairly steady because women just don't

become necessity entrepreneurs. >> what is the diversity like for your company these days? >> i have three millennials i raised. my three sons. what they'd like to do when they talk about being entrepreneurs. they say we want to go to a big company and learn how they do the business and then you can see that age, you're right. the silicon valley that you are 21 and you start a company. they do look at it and say we want to work somewhere until we can build up some money, get some experience. >> that is the smart way to do it. >> peter teal though who invests in a lot of the silicon valley companies will tell you, yes, everybody has this view that you're going to leave college and go work in a big company and put some money in the bank and take this risk. what he argues is that you are never really going to take the risk. what happens is you get married and you get a mortgage and you get all of these other things and then you don't want to take the risk. and in this environment, it gets even harder to get to that point.

at what age do you get to that point that you're prepared to take that risk? >> millennials already have all that debt and responsibility, so why go out there? we want them to but they're not. clearly. even the researchers they're not jumping to make that conclusion. they're saying it may be connected but not enough hard evidence. enough anecdotal evidence. >> i would also say something about peter. he is looking for companies that are totally disrupted. go from zero to one. start whole new industries. there, you really do want people in technology. people who are starting very young. but the real path of entrepreneurship is the one that your sons are taking. at least the one that has the highest probability of success. >> we have to leave the conversation here. it's a fascinating one. >> none of them went into your business? >> the family business. >> you see where he's going. >> the family. >> coming up when we return stocks to watch ahead of the opening bell. we'll have this morning's big movies' before we head to that

break, take a look at the euro. see where it's trading right now. you're looking at it down. we're back in this moment. ts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.

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jo nes. zero, three, two, six. here to make a deposit. [bell chime] ting welcome back everybody. let's look at stocks to watch. the general electric is near the end of an auction process. could fetch more than $17 billion. "wall street journal" is

reporting that ares management are the among those to post bids today. the company is raising its full-year dpidance and that stock, wow check it out. up 11.5%. chipotle upgraded to a buy from a hold. the analyst cites the stock's 20% drop over the last month and its forecast of 20% growth through 2016. that stock is up by 1%. passengers on a delta flight diverted to knoxville got a taste of a takeout before takeoff when flight crews ordered pizza for everyone onboard. i wish this happened to me. delta flight 561 was on its way to atlanta. i'm not glad it was forced to land which is what happened in thus case. they landed in tennessee due to bad weather. when the delay began to approach the dinner hour crews onboard announced that they ordered pizza for the passengers. 65 pizzas delivered to the

airport by marco's pizza. part of a standing procedure to get food and bev rnls sbeverages to delayed customers. right now let's head outside. joe, what do you have coming up for us? >> the pga tour commissioner is here and we'll ask him apothut health of the game and also this weekend's at&t byron nelson tournament which is down in texas. it tees off today. i have a putting green here. huge left to right break. it is going to be fun when we get him here. you know you can't make a straight putt anyway. good there is a little break. we'll be right back.

an energy ceo summit. the ceos here to talk innovation and the future of energy in america. plus the pga set to tee off this weekend in texas. but will storms and flooding impact the tournament. tim finchum talks about the

byron nelson and the rise of the young guns and a whole lot more straight ahead. go pro pointing its cameras at the drone business. virtual reality to boost the bottom line. nick woodman sounding off and the stock is on the move this morning. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york. this is "squawk box." >> welcome back to "squawk box" here on cnbc first in business worldwide. i'm joe kernen along with an draw ross sorkin and becky quick. futures down two days ago eand up big yesterday and we have been talking about that. unclear exactly why there dozen seem to be two-day conviction and where the market is headed. 18,000 has been where we sort of settled in and, what is it?

is it june yet? >> not yet. >> june 1st on monday that the job's report is coming again on friday. do you believe that? we just did -- i have to come up -- >> the older we get. >> it does. >> anyway, indicated lower. today we'll see how that plays out and has to do with shanghai. we were up yesterday because of shanghai. because it was up 200%. we are down today because it is down 6%. there is europe as well. taking it on the chin a little bit today. but nothing like the 6.5% in shanghai. 844 in greece. the dollar i am hoping 107. >> you're hoping wrong. it's 109. >> 108. we have time. we have couple weeks to get down to a dollar before the big chevy chase european vacation. and then finally, the ten-year note. 2.13.

also seems to get started on its way to that inevitable 3% where it has been headed for the past six years. once again, headed back down towards unbelievable. >> look kids big ben. parliament. that's going to be you. >> yeah. i remember that. >> no london this time right? >> if i say that in paris, it shows you my knowledge how worldly ei am. look kids, big ben. that's the eiffel tower. here are the stories investors will be talking about today. avago technology is buying broadcom. valued at $37 billion. in global news a greek government official says that the country aims to have a deal done by sunday. however, european officials denied a deal was near and that's probably what matters here. the german finance minister said he was surprised by the upbeat tone from greek officials. jpmorgan boss jamie diamine who followed the voting advice as being lazy. at a conference yesterday he

argued, god knows how any of you can place your vote based on iss or glass lewis. if you do that you're just irresponsible. i'm sorry. and you probably aren't a very good investor either. follow blindly along has concerned ceos for quite a while. >> a company saying the truth. >> dimon says bank officials have not done enough to show how well the company is run. the comments came after one-third of shareholders disapproved of dimon's pay and the practice of one person holding the chairman and ceo rules. the fifa scandal unfolding this morning. visa is now saying that fifa it could end its sponsorship of soccer world governing body if it does not act fast enough to restore the reputation of the game and to make it easier to score goals. meantime nike says it's cooperating with authorities on yesterday's indictment. in 1996 an unidentified global

sports company agreed to pay $160 million over ten years to become the brazil team's exclusive supplier. nike sponsors brazil nfs national team. one more twist. russian president vladimir putin accusing the united states of meddling outside its jurisdiction and by arresting fifa officials. putin says the arrests were in his words, a clear attempt to prevent the re-election of fifa said who has russia's backing. isn't there a world cup going to russia, too? >> it is. 2018. >> they pot that right? >> paid for it fair and square. >> they bought it from the guy they're backing. >> they are looking back and going back to all of these things. go back 20, 30 years in some of these cases. >> putin looks at this corruption at fifa and says this is not good. you want to see corruption. i'll show you. right? i'll show you corruption. isn't he worth $100 billion. he's worth more than $100

billion. >> we don't know where the money is. >> this is like you're kidding. you have a problem with what we're going with fifa. >> you're in dangerous territory. >> what about that show we were going to do in moscow? is it off the table now? >> probably. you were going. yeah you were going. >> just stand there and say, look, kids big ben. a couple stocks on the move this morning to keep an eye on. costco earnings beating estimates but revenue and comp sales were below forecast. warehouse forecast by lower gasoline prices and a stronger dollar. general motors upgraded to equal weight from morgan stanley. various market forces may push gm to consider more radical strategic changes. teva is closing a more than 1% stake saying the purchase underscores its commitment to buy that company as soon as possible. to buy mylan and mylan rejected the offer saying it grossry overvalued the company and

pursuing its own hostile takeover. fresh off of their annual meeting southern company is announcing they reached a battery testing agreement with tesla motors. they'll test commercial scale battery storage and energy storage technology to help meet customers' energy needs. joining us now to talk about this is tom fanning. chairman, president and ceo of southern company. nick atkins is chairman president and ceo of american electric power and our guest host today is david steiner of waste management. gentlemen, thank you. the reason we have you all here is you are both customers of david's. why don't we explain that relationship first? >> well one thing about the electric utility industry is they have been doing recycling for years and years and years. no one recycles more material than the electric utility industry. they're using leftover coal ash to do road beds and all sorts of different beneficial uses.

and then what we do is we work with the plants to also get the inside of the plants more green. and, so the commitment these guys have to making their businesses more green, making them more asustainable is demonstrated every day when they work with us. >> let's talk about how energy prices are affecting all of you at this point. nick, why don't we start off with you. talk a little bit about what it means for the low natural gas prices. >> natural gas has a big impact on our customers from a fuel cost perspective. our fuel cost pass through to customers. it's a direct benefit to the economy and our customers and, really it's a value to us because as we go through and use our portfolio, we're using less coal, more natural gas and more renewables and so forth. it really balances out our portfolios. great thing. >> prices for natural gas have comfounded many people for many years at this point. is this a whole new game? we're looking at low prices

because of the massive production we've seen and the discoveryies that we never realized were there. >> absolutely. in the past before shale gas activities were occurring. natural gas was running $11, $14 but today to get above $3 is a particular challenge. you think about the conversion rate with natural gas units. they're much more eefficient than other types of generation units. so, it turns out to be a really double positive for customers. >> tom, you at southern company have really made a point of trying to have a very well-rounded energy portfolio of different sources that you're using. you want to talk a little bit about that? >> we're leading the renaissance of nuclear in america and continuing to have great success building our new nuclear plants. we have converted a whole lot of our coal production to natural gas. used to produce 70% of our energy from coal and now it's going to be about 32. >> when was it 70%? >> about five years ago e.

gas used to be at that time 16% and now it's going to be about 48. in terms of technology innovation, one of the things we were talking about. we have remained i think, the only company in our industry doing robust and we built our own gas technology and we will strip out co2. so from a carbon standpoint footprint it is cleaner than natural gas. we are deploying that in mississippi. great applications in frankly china and a variety of places around the world. >> do you retrofit old factories? >> no, this would be more for power plants, not factories. >> can you retrofit a power plant. >> the next revolution will be more suitable. the technology we're putting in place. >> if you're trying to use it in china. lots of power plants there running on coal. >> a whole lot more demand. we think as much as 30,000 megawatts new coal that could be suitable for this kind of technology. if you think about eastern europe, where you have countries

like poland where 85%, 90% of their energy comes from coal and they're also dependent upon if they can use this technology in a carbon friendly way, boy, that works like a champ. >> you invested also in wind. >> you bet. >> and solar. >> one of the biggest investors in solar in the united states. >> the economics of that. does it still work? >> sure. the economics are really tilted towards tax ben fits. you know the energy information administration gives tax preference items to wind and solar. about 100 times -- >> that would be a no it doesn't work. >> the economics don't work. >> with the tax ben fitsefits it works beautifully. with the tax benefits it does without it is certainly not as competitive. that's for sure. >> did you ever -- >> the tax benefits exist. and let me say this joe. hang on. we talked about this before.

just -- >> just tell the truth. >> where. telling the truth, joe. here's the deal. we're one of the biggest investors and i'm very much on record as saying that i think it's bad policy to have these kinds of tax ben fitsefits inp this way. >> they take investment. >> ewe should let people play at a level playing field. >> then the question is, can a level playing field world, do you ever see your solar or wind power projects making economic sense? >> i think down the road we've certainly seen this in the solar industry where production costs continue to come down. we continue to see marnlinal improvements and translation efficiency improve. so, yeah i have been and have been on record. solar is probably my kind of favorite renewable. wind has some applications. not necessarily in the southeast. we don't have the climate that supports win but i think solar does. >> but it will never be the base load. >> heavens no. >> technology continues to make

hydrocarbons cheaper, too. solar comes down. >> remember remember southern company is the only company in america that does the full portfolio. when we say all the above. one company doing it. i say we got to have base load cuapacity. i testified in congress last week about this. america needs capacity. >> you would have answered that question differently. you're not under oath. >> but, wait a minute -- >> you have to look at tax policy. >> absolutely. you have to. >> the question was not whether -- -- you're saying does it make economic sense? nothing makes economic sense. >> subsidize. >> without the subsidy. >> you think there is. >> we have over 2,000 megawatts of wind power that we participated in. and if you have a higher capacity factor. in other words, if you have wind located in areas where wind is blowing considerably you can get relatively low, very low wind power prices.

the key to that is making sure resources are placed in the proper places in the country from a resource standpoint. if you do that and use transmission and infastructure to get to the load centers, that makes sense. but try to put wind power everywhere or solar everywhere some of the climates just don't match up. >> nick, you and i see the same stuff here. wind relies on long-term transmission. that's not the way to design your electricity networks in america. that's not good policy. you don't want the greater the distance, the greater the risk. that's a big issue. also you would agree. you wouldn't build as much if you didn't have the production tax credits. that's kind of the point here. >> i would disagrooewith you because transmission is the key component of optimizing the grid. you can't overdo it with natural gas and renewables and so forlth. but you have to have a balance port fellow of resources and transmission and infrastructure to support it. >> the downside to wind. the noise.

if it's around people you know -- >> that's right. >> and in the past we've had states trying to outdo each other from a political standpoint with these kind of notions. >> how can you outdo natural gas? i don't think you can overdo natural gas? ? yes, you can. natural gas infrastructure doesn't support the ability to move a massive amount of our resources to that. >> the infrastructure. >> that takes time. and, also during winter months winter months natural gas is less effective because -- >> restructuring why not build out the infrastructure of the natural gas. >> we should be building out infrastructure. >> don't forget. >> why build out -- >> that's what i mean. >> joe, let's remember there is a natural resource that creates more than electricity, garbage. >> i love garbage. >> thank you. >> thanks, guys. >> david is staying with us.

>> a great doc on cnbc tonight about "dishonesty." coming up a big weekend, yeah, 10:00 eastern time. we love you. we love you. we love you! we'll talk golf. the at&t byron nelson taking place pga tour commissioner will be with us next. later joe and guest host david steiner go outside for a friendly competition. find out who has a better game. back in just a moment.

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the pga tour second consecutive week and the pros will tee off in irving for the byron nelson today. although the heavy water can affect some scores. joining us now to handicap the weekend and discuss the business of golf tim finchum, commissioner of the pga tour. commissioner, always great to see you, as always. how are you? >> i'm great. great. thanks for having me on. >> you're welcome. i bet you are because even the tournaments maybe that don't, that don't get as much publicity as the majors even those

suddenly have just been incredible. at tpc and just great finishes and you got some young guys that are just you know i still love tiger and i like when he plays, but now i always need to know where jordan speigth is and rickie rickie, finally silenced some of the naysayers. what a year he had last year. people were still questioning him and now you have him. things are going pretty well for pga right now, i think. >> well the professional side of the game pga tour side of the game is at an all-time high. and, really in a very strong trajectory. and, you know i think it's two things. i think it's sponsors and the youth movement. we got great sponsors. the fedex cup is a great addition to what the pga tour is all about. week in and week out we got great sponsors. waste management down at the biggest event of the year in

scottsdale in phoenix. this week the at&t. just heard tom fanning talking on the show big part with coca-cola. the tour championship in atlanta. and these are companies that believe in what the sport can do for them from a marketing standpoint and also what the sport does to help people in communities raising last year over $140 million for charity. you combine that strength of sponsorship with the youth movement with these incredibly attractive mature market players that are coming up today who are really into social media, reaching out, signing autographs, reaching out to people. in addition to their great play and we just seem right now to be clicking on all cylinders. >> i'm not sure how to think of you know i don't, for me i don't care if everybody plays golf. everybody has been ringing their hands, oh, nobody is playing. it takes too long. we have to make it bigger. i don't, people don't want to

play golf. they don't have to be in front of me. they don't have to be waiting to get a tee time or something like that. but there is a problem. it seems like there is kind of a problem, right, with the popularity of the game just with the public or something. >> we don't see tat. i think that the media has focus odon the ripple effects of the financial crisis. on some details that came out of that crisis. like more pressure on public clubs and we think, actually, is healthy. but they haven't focused on the big picture. the last two years the number of golfers has been very consistent consistent. 25 million people in this country are playing golf. there are another 25 million that do other things in golf. simulators top golf par 3s. other golf experiences. and interestingly enough over 30

million americans who don't play golf today would like the opportunity to play. when we look at the first tee program. when we look at drive, chip and putt in augusta. when we look at the pga junior leagues. when the kids are lined up to get into to be able to play this game and learn about the game and in the case of the first tee, learn core values. there is a real demand for golf. the challenge is to bring golf to people. people aren't going to come find the game an hour away. we have to create more facilities and right now the biggest headwind we face is the housing industry e. from 1960 for four years, the housing industry drove a lot of our golf course development. we need to fix the way we deliver our product and golf experience to people. but we are healthy. we are growing. and we have great potential in the u.s. globally, no question. golf is growing globally. we're in the olympics now. a lot has been written about

golf in china and pushed back on golf in china. i look at it the other way. i look at it from a positive standpoint. the reason there is tension over golf in china is because golf is growing. it has gone from 300 golf courses to 600 golf courses in the last seven years. it's put pressure on the politics of golf in china. that's understandable. but the good news is it's growing. same in korea, same in japan, same in vietnam. same in south america where we have the pga tour lutina america. we have pga tour china. global golf is very strong and when we get to rio next year in the olympics golf will take another step up in its acceleration of the growth of the game on a global bases >> commissioner, there is playing golf and watching golf. as you said joe, the excitement around these young players. in phoenix we had a bad day of weather and we still set a record, 600,000 people at the waste management phoenix open. so there's playing golf and watching golf. never been more interest in

watching golf with these young, great players. with the exciting tournaments they have. >> and with the tour going worldwide. >> we have a great tournament. is it still in the four seasons there? i've played that course there before. did they move the byron nelson? >> no they haven't moved it. we're build agnew golf course down in trinity forest with at&t and the salesman club. we're still at las calinas and we have a nice field. i think when you talk about viewership, it's interesting that a young guy like jordan speith wins the masters and ratings up 50% over last year. same phenomena at the players' championship and you have these young guys coming up. juxtaposed against still tiger and phil and the other veterans. it's really nirvana for the golf fan. i think you put yourself into this as a golf fan and what you

want to watch is great viewing. and i can't say enough about the quality and capability of the young guys coming up. but these veterans are still playing well too. so it makes for a great week. we're seeing record numbers across the tour. it's all good stuff. >> commissioner, thank you. and we'll be watching. and byron nelson what a great name in golf as well. so many great names. anyway, appreciate it. thanks for your time today. that's a coincidence. it's on nbc? how about that. you can catch coverage of the at&t byron nelson today starting on the golf at least the golf channel. we're all over the place. is it nbc this weekend? >> i don't know. i'm not sure. >> golf channel on thursday and friday. and then it's on nbc, watch it on the weekend. coming up when we return the man many blame for the failure of lehman brothers back in the public eye. we have details on that just ahead. and later, go-pro officially

getting into the drone game. release a quadcopter in the future. caught up with ceo nick woodman and asked him about it. the stock is on the move in a big way this morning. we'll hear from him in just a bit. "squawk" returns in just a moment. ♪ ♪

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welcome back to "squawk box," everyone. johnson & johnson accepting an offer to acquire its business.

that deal valued at $2 million. they expect the transaction to close towards the end of the year. subject to regulatory clearances. seven years after the collapse of lehman brothers former chairman and ceo with lehman brothers is back in the public eye. the keynote speaker today at a conference in midtown manhattan being built as his first appearance. he is expected to talk about how companies valued at under $500 million could make it in today's tougher capital environment and expected to touch on lehman brothers, the financial crisis in his speech. catch live coverage of that speech starting today at 12:30 eastern time only on cnbc. i will be doing a little color commentary. >> you'll be watching it from afar. >> from afar. >> if he touches on how that happened gotten over hank paulson yet? >> i don't think he has. >> see how you can touch on it. >> i think he may make some

comments. he thinks he was the unlucky one. >> hank paulson didn't like him. always vindictive. >> we will see whether he has comments on that. in the meantime just seconds away from jobless claims. we are going to go to rick santelli standing by in chicago at and he has those numbers. rick? >> yes. 282,000. so that's a bump up of 7,000 from a 1,000 upwardly revised 275. originally stated by us exactly one week ago at 274,000. continuing claims 2.222. yes, a little over 2.2 million and that indeed is pretty much a lateral slightly higher move from 2.21 million. yes, these are what a decade and a half close. you know, the participation rate and the size of the labor force compared to the population may make this data, you know, a bit less than enthusiastic with regard to what it represents.

but there's no doubt when it goes down it's better than going up, but we still are at low levels. a lot of data to come out today. we're lower by five base points and where we finished last year. many technicians say the key, if you think the spike in rates for now is definitely over watch 275 in the 30s. that's where it closed last year. back to you. >> okay. steve is standing by. >> jobless claims are like taking your temperature, right? 280 level. this level below 300 is a good number. it says it raises questions about just how weak the economy was in the first quarter. i've got a chart here. i don't know if you guys have it in the back but it shows a wonderful trend. the one-month trend. a wonderful trend right along. when something is going down. the unemployment rate going down and jobless claims come down with it. so, what you'll see when i get done with this a number like 280 is consistent with strong

job growth in the month of may. and it probably is going to be somewhere in that 200 to 250 range. if it spikes up you wonder, is it a one-time seasonal thing. a holiday here or a holiday there but when it remains in the zone here. i want to maybe turn to our guest host because, now, i'm guessing that the amount of garbage per unit of gdp has come down long term. that people are producing, but within that long term downward trend, you is up and down cycles that give you a sense of how well the economy is coming. so, sir, based on the trash, how well are we doing? >> well you know it's interesting. i'm on two of the boards. and both of them went down in the downturn in 2009. but their volumes now are higher than they ever were in 2009. the volumes haven't bounced back. more recycling and more smaller packages. >> in my garage. >> and what i really recognized

after the last down turn how tied we are to the housing boom. when you build a house, one can in front of it. but when you build a subdivision, you get 300 new residential customers and they have to build a new restaurant and dry cleaning and i think what we've seen over the last few years that we haven't seen new housing starts pick up enough to really start to swing our bonds to where we can get back to 2009 levels. we're just starting to see that in the last two quarters we started to see that. >> i don't think that's -- >> it's gone down a little bit. >> it has to. >> get more stuff sent to us. >> the way, i was just thought about that joe. i'm not sure. but the amount of energy per unit of gdp has gone down. and with more gdp generated with the silicon molecule rather than the hydrocarbon molecule it speaks of less stuff per unit of economic output. >> big computers. smaller computer chips and packaging. packaging.

>> smaller markets. >> you used to have a lot of newspaper. >> we're going to get a number tomorrow that will scare people. the gdp number tomorrow our cnbc rapid update is tracking minus 1% for the first quarter and 2.6% in the first quarter. did it to you feel like a minus 1% and does it feel to you that the second quarter is bouncing back? >> first quarter was pretty good for us. >> we had weather effects, but pretty good. we have a seasonal upturn for us as construction season starts and we have really good seasonal upturn. >> so seasonally adjusted it is better. >> we're starting, look it's not a huge turn around for us. we're seeing positive signs in our volumes and i think it's because we're starting to get year over year of a million housing starts. >> we are up, 1.1. >> when you look at california down through florida you're starting to see subdivisions being built, again. more cranes in houston than there are in shanghai now and

that's obviously, good for our business. >> we're going to meet with your eeconomists afterward. we'll create a trash to gpo ratio. >> that would be nice. >> i like that. >> cool. >> like economists used to do burgers. >> there is a cardboard index, by the way. >> we're sticking around. >> that's the interstate and you count the trucks. count the trucks on i-75. >> any given hour. >> anything has to be better than some of the economic data. >> you're on fedex. . >> with fedex you get to see the world, right? with waste management you see the world. >> thanks. >> that's good. that's profound. thank you. that's beautiful. coming up, justice winceslow. now, he's expected to be a top ten pick in the upcoming draft. he joins us to talk of blue devil success and coach k. and how he plans to carry it over on the court in the pros as we head to break. he's a small forward. small forward.

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day three of the conference kicking off this morn.

go-pro ceo and josh had a chance to talk to him after he got off the stage and ewe are joined by josh now. josh? >> well, you know andrew go-pro and drone seem like a natural fit. nick woodman told me as much when i spoke to him. >> go-pro is already in the drone market. whether or not we are officially developing a quadcopter we believe it is exploding not because of the device itself but because of the content that quads are enabling when they are combine would a gopro and we see similarities to the viral growth of quads similarly to early days of gopro and we see the same trepdz trend. when we consider it is the accessory, that means a quarter of our business and makes sense for us to get involved

officially. >> now, woodman says the go-pro drone will be available in the first half of next year. no price being talked about just yet. but gopro is capitalizing here on a red hot market. famed tech analyst mary meeker estimates that consumer drone shipments are going to jump she says by about 170% this year. but that wasn't the only new product woodman introduced. he did also unveil a new six camera spherical array, which lets users shoot video for virtual reality. this is the next big wave of content creation. woodman sees a lot of potential partnerships with tech's biggest players. >> if you look at all the major players, whether you're facebook google microsoft. they're all focused on establishing the platform on which people will view this content and they're all actually

talking to gopro about us being the chief enabler of the content itself. >> now, that spherical camera will be available in the second half of this year. these announcements coming at a time when gopro stock has been under pressure. still up strongly since that ipo, but 40% off its high. the stock now, though moving higher in the premarket. remember, bulls wanted to see diversification at this company and now they got it. guys, back to you. >> thank you. what's his real name nick woodman? >> yeah. >> that's one of the guys in boogie nights. nick woodman. >> it's like your name. >> nick woodman, really? >> that's really his name. >> no. >> he's really that good-looking too. >> and he's tall.

>> nice it meet you. up next he is entering the nba draft and expected to be a top ten pick. only 19 and about to make a lot of money. we will speak to duke blue devil winslow and how he is planning his financial future. "squawk box" will be right back.

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next month the nba draft will be held at the barclay's center in brooklyn and we have

today with us one of the youngest prospects. justise justis justise winslow. he just turned 19. congratulations. what an unbelievable season. i didn't have duke unfortunately. you guys rise to the occasion it seems like. >> definitely. a lot of young guys. we just thrive in that moment. we love the big stage and the bright loits andights and we just enjoyed playing with each other. >> didn't notre dame win before the tournament. what happened to that game? did you have an off night? what happened? >> we as a team had an off night, but like all the losses. four losses throughout the season, we just learn from them all. it is tough losing in the acc tournament going into the big dance. we learned from it and watched film and got six wins. so t was good. >> i have so many things to ask you about. your dad, when did you start playing? were you walking or dribbling? >> i was walking.

traveling with the ball a lot. no but it was fun just starting playing ymca with my brother. probably my earliest memory was tying and they wouldn't let us settle the tie and i was crying in the locker room. >> one houston team. that's when houston was best right? and your dad was one of those guys. >> lost in the final four. >> exactly. so you've got, definitely got some serious blood lines in your family. you're leaving after a year. your dad's on the record saying that maybe he thinks there should be a rule you stay two? did you guys talk? what did you say, dad, what was your expression? talk to the hand. i can get my degree later. >> well it's different for each guy. he was in favor of the two years, but i think it's just different for every guy. as a person as a player you have to be mentally ready for that next stage and i just feel whenever you feel you're ready

regardless of what year you are. to take on that that role on the court and off the court. you know it's a big, a big stage, a big change from college to the pros. but i just feel like it's different for each player. i just feel like i was ready. i accomplished a lot. i'm definitely going to go back to duke and get my degree. >> where due i think he's going? >> cut down one neck at duke but in houston cut down two nets. playing against a guy like ben in every practice had to be easy going to duke after that. >> do you have a preference? >> no. wherever i go i'll be happy. two great cities. enjoy my time in new york right now. >> would you have a different view about this if players were paid? >> no. ultimately it's about the dream. it's about living my dream and

be successful and the best player i can be. it's not about the money. >> do you think college players should get paid? >> i don't have an opinion. it's a hot topic right now. i just feel like personally i play the game just for the love of the game the money doesn't matter to me. it's something that helps financially to be able to provide for your family. >> can you explain, maybe you know, what does the nba or if college hoops goes to a shorter shot clock, that's one of the reasons that i don't sit around waiting for the nba playoffs. but the final four i don't miss a game. and i like when i'm watching for 35 seconds. if they do the same thing in college as they do in the nba, won't that mess up the playmaking for college? >> no just speed up the tempo. >> fewer time-outs. the end of the games. but i love the end of the games. >> i don't really feel a difference. it's such a fast paced. i hope they call more time-outs.

i'm tired out there. it's a fun game. coach does a great job of getting us prepared and getting our conditioning right. if it was faster, just something you naturally have to adapt to. >> what do you think about the nba finals next week? anybody you're rooting for? >> my hometown team lost. so now, whoever wins whoever wins. but both really good teams. cleveland and golden state. >> you ever seen a shooter like steph curry? >> no. i actually went to i think it was game three in houston when they got blown out. the rockets. he's just amazing to watch them in person and the things he ecan do with the ball is just incredible. >> can you get floor seats if you come play with the knicks? do you know e? >> i am sure we ecan figurecan figure something out. >> new york, i mean, this is it. this is the center. it's all spread out and traffic is bad. >> you really want me here? >> i really do. and you remember coming -- i'm

joe. >> nice to meet you. >> trying to figure out the ticket situation. >> thank you for coming in. >> i hope you're playing with us. what kind of sneakers are you wearing? you haven't chosen a whoever gets him will not only get a great basketball player but look at his family get a great kid, too. we'll head downtown and catch up with jim cramer. tomorrow we have another great lineup.

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if you don't like it, you have thirty days to call and get your money back. with comcast business internet you literally can't mook a mistick. i meant to say that. switch today and get the no mistake guarantee. comcast business. built for business. let's get down to the new york stock exchange. jim cramer joins us now. wonder what you're thinking about this latest deal avago buying broadcom? >> i think these companies have to merge. apple would like fewer players. when you tear down samsung it looks like it's taking intellectual property away from these companies. you either are going to get together and fight skyworks and not lose the samsung business.

or if you lose samsung, you'll do well. this is apple-driven. these companies are the brains of apple. they are part of connected everything. in the end, it's apple. >> what do you think about this morning as we head into this new market? >> i think that yesterday was the fluffiest day i've seen because every semiconductor company went up. if etf goes up for semis, it takes everything up. we need to see this market more driven by earnings and less driven by takeover. >> the story in the "wall street journal" pointing out the idea that there's a lot more volatility. it raised concerns about whether there is liquidity during the middle of the day. >> it's very bad. the company buybacks aren't supposed to be there. it's the worst time to be doing all that trading.

they say that's when liquidity is coming in. i can imagine you could come in one day and see horrendous volatility. it was a good piece. there is nothing going on during the day i mean like nothing. >> jim, we'll see new a few minutes that. opening bell coming up. those are the busiest moments. >> thank you. you are not going to want to miss this. a friendly bet. david steiner and joe are comparing their short game.

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we are out on the waste management plaza. >> no. >> we are out on the plaza with waste management dave steiner. >> tpc new york. can we say i did that? >> you did make one. it's a big break, a big left to

right break. becky's got the leaf blower out here. >> give me one more. >> okay i'm blowing it for you. >> here we go. that's now in my way. >> i tried like a dozen. >> david paid me to blow all your balls away. >> you are about a year away from playing tennis. >> i have to do the claw. i tried everything. i tried left hand low. >> almost. >> i tried everything. >> where is justice? >> right behind us. come back. take a shot.

>> oh, close. >> i can't get any of these in. >> here we go. that's going to be short. you've got to lift some weight. >> be sure to join us tomorrow. "squawk on the street" starts now. good morning and welcome to "squawk on the street." i'm david faber with jim cramer live from the new york stock exchange. carl quintanilla is at the code conference in california. he's going to have more on that event in a moment. been a busy couple of days there take a look at futures as we get set for our open. we are looking down. shanghai had