you for that. we should say -- i think he just said this -- a beautiful place. by the way this is happening all over the city. >> the big one here not quite as big as $100 million. >> but also the big shadow that it casts over central park. make sure you join us tomorrow. "squawk on the street" begins right now. good monday morning. welcome to "squawk on the street." i'm here with sarahizen, david faber, kramer is off today. we kick off the month of june with a flurry of news a $17 billion buyout? tech. a lot of rumors about a greek deal. futures in the green for now. oil set to have a very busy week as well opec meeting this week journal saying its clout is at a new low.

personal income again changed. a deal finally getting done. intel buying altera. >> you're going to have to wait almost two more months for microsoft update among or lineup the first television with the new ceo of bristol-myers. a preview is straight ahead we'll start off with the big deal, another one in technology in shifts following last week's enormous deal. intel follows through with an acquisition announced of altera. as carl said the price tag russly $16.5 billion. those of who you have watching for some sometime are not un -- it was late march when the "wall street journal" first reported on talks between these two companies, and then nothing until we reported that intel had walk away from the same talks after offering $54 a share and being rejected by altera.

what followed? well, you had certainly shareholders move intoed stock of altera many hedge funds that focus on events or risk/arb, and almost all of them were not happy with the decision by altera's management to walk away from $54 a share. this after actually the company reported less than an expected quarter as well. so that pressure having built resulted in altera coming back to the table, in part because after a time shoulders did have the opportunity to act by written consent. was it enough to get amateriala to say okay we are reengaging? yes. do we have all the details? no but of course we have a deal that brings together this company with intel, will be able a part of that company. intel already manufactures altera's chips to a certain

sterns that are very important for the likes of growing businesses such as those that makes servers, intel still reliant to a certainly extent on the growth of the personal computer market. this will help diversify its product base, if you will into an area that many see as a continued growth area. as well it is perhaps a sign of a new intend. he's not been ceo a particularly long period of time and they were very aggressive. one would anticipate that they will continue to be aggressive in the future. that doesn't necessarily mean doing a another enormous or big deal, but simply a new approach to them. >> he'll be on the "closing bell" today. part of the motivation was to keep altera as a foundry

customer, which is sort of an odd reason to do a deal of this size, but we'll see what the response is later. >> there was some future work that was out for bid essentially. there was a question as to whether there was intel would win that biggs, of course no longer going to be the case here. as for the $54 price, to come back to fundamentals here it is a huge multiple in many ways 22 years worth, in fact many people saying who i spoke to when the company declined that price first said we don't think we'll see it for five years, if not more. they did seat to prespay on the management to come back to the table. >> no surprise it is a record year to deal making in the semiconductors. is there anyone left? >> we are sort of in an end game

here but there are a lot of different chip companies out there. >> probably some we have never heard of. >> we'll look it up obviously a big story in tech today is the freight train of m & avmt. personal spending flat for april, below expectations income up 4% for the metropolitan as we head into the first trading day for june. the month of -- nasdaq was a winner up to 6. june has a reputation of being a weak month, but say, go back to 1950 on the s&p, june has been up 33 sometimes, down 32 times, so it's been a bit of a coin toss. the first session of june has been up 20 of 27. so we have seen good action in the front part of the month. >> the u.s. economy has to take center stage after we learned that in the first quarter our economy contracted we actually saw it shrink which isn't

something necessarily new. wife seen it a few times, but the question is how strong is the comeback u.s. economy built 3/4s on quiteconsumer spending. will we get the rebound we saw last year. care to discusses? joins us is david jervis and it is about the data. we'll get -- and jobs report on friday. clearly the federal reserve is itches to raise rates. will the data let them? >> what i think we learned is the u.s. economy isn't isn't necessarily ready for a strong dollar. the trade numbers came in really poor. i think you add on what we saw today in the data this weaker consumption side. the savings rate is going up not down it's gone up from the low 4s to the hive 5s.

that's not what you would expect when everybody gets a windfall from the gasoline bill every month. the consumer is not as healed as we thought, and a strong dollar is keeping i think a real nervousness in the business community. >> shouldn't a strong dollar by help up for the u.s. consumer? >> exactly. we should have had that offset but what we saw was a consumer it would rather save the income than spend it. >> mike where do you stand on where the u.s. consumer is and what the data will show? the next few days? >> look, this morning wasn't a great number. i think we're off to a soft soft. i would agree with what david said. certainly the number in q1 were pretty brutal. we also saul the core pc number dip a bit today in terms of consumer price inflation, so all of that will make it

challenging, but the bar doesn't seem to be that high. just need to be some stabilization and growth here. so i think, you know this morning's number was important, but i think friday's number will be from the fed's perspective much more important. >> we are expecting another 220,000 jobs to be added. how are we seeing such consistently strong job growth without the economic growth to back it up? >> i think it's fascinating. you look at the jobs data an amazing picture of the economy, you look at the consumption data and you've got this terrible picture. not terrible but unbelievably weak. a lot of economists i think marty feld stein and ken roegrove stan fisher gave a talk in the spring talking about how he doesn't believe the gdp data that much, looks mostly at the employment data.

i think you're starting to see economists question how robust and accurate this data is. are we measuring it correctly. i mean we all live in this world with amazing innovation and it's like we're the least productive. so something is not connecting. i think the feds -- we had that san francisco fed paper out earlier a couple weeks ago that got the market in a bit of a lather. to me that points to something that mike was alluding to the bar is not as high at the fed, because i think a lot of people on the committee are questioning this data and its acraegs. that said i mean it's going to be hard to do anything aggressive in the face of a negative gdp. >> mike on this subject of data. i'm curious to get your take particularly on where we started the data. it would be indicative perhaps

do you question the data on that front as well? >> certainly there's a big picture issue here about measuring technological change. it's not new to the last year last few years, but then there's this issue regarding q1 in particular, and does seem to be with how we're measuring and seasonal swings in activity. actually in two months' time from today, the government will restate that first quarter gdp number. if you look at the income side we actually expanded about 1.5% annually so i think there is reason to be -- put as aasterisks next to it and we'll see in a couple months whether it's actually an accurate gauge. >> i can imagine an alternate world in which we would be complaining that quiter were spenting once again, their fiscal discipline.

why is this seen as a bad thing? i don't think it is a bad thing. that we have to go back to crazy heydays of people doing reckless things is kind of frightening. it's not reckless to be buying apparel 59 department stores. >> no but we came out of the greatest debt boom we have seen since the great depression. it collapsed these -- these consumers that are still kind of reeling from that debt crisis. i think it's healthy to see people build up precautionary savings. for decades you thought your house was an atm, you could refinance if rates went down. it's good to see some precautionary savings, building blocks for a healthier economy in the future. it may not give an exciting liftoff that wall street wants, but, you know as we've been saying, we don't think this year is a great year to focus on the risk assets.

there's a greater story over in europe. >> even though we have that friday amf payment due. we have to leave it there. mike and david, thank you for coming in today taking a left turn tracy morgan spoke out this morning in his first interview since the car crash last june. he suffered a brain injury broken bones when hess car was struck by a walmart truck. the terms of the settlement we are undisclosed. he spoke with matt lauer on "today" about the settlement. >> bones heal but the loss of my friend will never heal. i'm happy that walmart stepped up to the plate in a tremendous way. they took full responsibility as you said because it's true they took full responsibility. i'm happy that they looked out for jimmy mac's family. he can rest in peace. they took respond for that and

in the beginning there was a misunderstanding, but that got squared away and they came through in a clutch. >> interesting. obviously a high-proceed file case. his lawyer said that doug mcmillan would meet with them this week to talk about it personally and apologize to what happened to morgan and hi friends. >> it was interesting to see him -- he was asked if he would get back to comedy. he said i'm not 100% there, but the quote was i'll love her, and i'll be coming back and you'll know when i do. of course this morning the ceo of bristol-myers, stock's been volatile a news regarding the cancer treatments and meg tirr a lot of greek rumors are swirling around. we'll get to that when "squawk on the street" comes back. ♪ ♪ ♪

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power players in the pharmaceutical industry are gathering today at the conference in chicago, highlighting treatments for cancer. other meg tirrell it live with the latest and some good

interviews coming up. >> that's right. by the way farce the biggest is on immunotherapy, the drugs that cancel cancer's ability to invade the system it's been making some tremendous strides in melanoma and lung cancer but also the topic drug prices front section of "wall street journal" quoting a presentation here saying the drugs cost just too much. but a lot of big movers out of the conference briggs toll meyers was one that dropped on friday, rebounding a bit before the market is opening this morning. another is clovis oncology which is down today. mixed today thea. then there are a couple smaller cap movers we might normally mention them. big mover, immunogen, and on

cohhyreon, and we'll have an bur with giovanni caforio. >> we'll see it later on in the show. thanks, meg coming up art cashin what he's expecting from the first day of trading in june. simon hobbs is in new york taking a pulse on the hotel industry. >> good morning, sarah. over these next three days virtually every major player is here for the nyu conference. we're going to talk to one of the superstars, the rock stars of that industry the ceo of hilton who is arguably making it a two-speed industry as he pulse away marriott -- puts it up for sail also the first interview we've ever had with the ceo of four seasons. they brought in alan smith from

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spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day. just about nine minutes before the bell on a monday morning. let's bring in art cashing, who joins us here at post 9. good morning. >> good morning. >> if the early morning is any indication, today is going to be about separating fact from fiction when it comes to greece right? >> pretty much. you had a rather confrontational tone over the weekend out of

siemcyprus cyprus. for now our markets are relaxing trying to make up for some of that weakness we saw late in the week last week. you wound up doing 48% of volume on the friday's bell so pretty huge stuff. it's been tough. the first day of june with a mild up-year-old bias so we'll see if those -- a lot of stuff is coming up later in the week. everything from opec to importantly the ecb, what are they going to do? will it be comments from them about greece? so we look like as you can see from the futures starting out with a mild up tick.

the question is can we hold on to it? you get a better opening and it tends to face away by 10:30. >> we do get a big manufacturing number at 10:00 a.m. friday we get employment numbers, u.s. economy is center stage this week. are you getting a clear in ale on what's going on happen in the second quarter after that dis mall reading for the first? >> it looks like a rebound, but not as robust as what we saw last year. somewhat muted as a matter of fact. it's going to be very interested in the payroll numbers. the payroll component of a lot of the regional indicator that is we have seen have shown weakness in some cases layoffs, so i would think there's almost a 50% chants that the number could come up under 200,000. >> that would be a weak one. we did see an up tick in volume on friday it seemed like during the sell-offs you're seeing more

activity. >> you're absolutely correct. it's been unfortunate, and it's been consistent. when they sell off, this el seem to do it with a bit more vigor, and we'll see where we go and several commutator versus notice theed percent up moves, in other words numbers of stocks up 5% 6% those that fell were down two-tenths, whatever now we're beginning to see the percentages equal on both sides, which is a worrying thing because it looks like you're getting a balance between the bulls and the bears. >> miller tailback trying to make the point that even though the u.s. equities are running in place, china, european debt the dax, japan, there's been rising volatility. is the u.s. market masking a rise in volatility around the world? >> well i think what you are seeing is a lot of people that ordinary would be playing here the hedge funds and others are

off playing elsewhere. that's moving that volatility. but, you know i would much rather see a more bullish tone here. this is where i live okay? and i'd like my backyard to be greener than most. >> art, we'll see you later. opening bell five minutes away. don't go away.

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you're watching cnbc's "squawk on the street", live from the financial capital of the world. the opening bell is just under two minutes. we kick off the month of june. it will be a busy month and a busy week. ism numbers at the top of the hour a.d.p. on wednesday, jobs numbers on friday a greek deadline on friday and intel buying altera. now some headlines out of the cisco, chuck robbins says two presidents, lloyd and gary moore happens to leave when possible successors don't get the jobs

they go somewhere else. new leadership on june 11th moving to a flatter leadership team. not surprising. >> new guy comes in new teams but gives up that role after many years to mr. robbins. you do expect he wants his same team and anyone who thought they had a chance at the top job goes elsewhere. >> just on the broader market here on equity markets, the chief strategist says valuations look expensive on most metrics. that's the 98th percentile historic valuation. that's a big question here right? another 1% gain in the s&p for may, is it expensive? or is the data going to turn and justify higher multiples. >> of course relative to

everything else right? and your returns, good luck buying german ten-years today, for instance. unbelievable. so much for 0.6. there's the opening bell and look at the s&p at the bottom of your screen. big board today it's black knight celebrating the recent listing. over at the nasdaq charles river associates a litigation regulatory and financial consulting firm celebrating the 50th anniversary. we have rossengran earlier, and now it's stan fisher. steve liesman has that add headquarters. >> stan fisher talking toronto has some tough words for bankers today, and the opposition to dodd/frank. he's warning against a bangers back lash and saying opposition is making headway. he sets it's a mistake to believe the financial crisis is at an end, and he's really talking to defend the current regulation that's out there.

on the issue of fed policy he's not saying the government -- it's not clear the government has all the tools it needs to prevent all the financial crises, so he's weighings in on the debate whether the fed should use interest rates. he is warning again complacency that's kind of a sign to congress don't relax the occurrence reg lazy that have been put in place. weighing in a bit on the economy, saying it's unclear for a this secular stagnation something brought up by larry summers whether we're locked into 2% or mea yolker growth so they fisher points out the world economy is growing very slowly. the boston fed president says the weak economy he sees makes the case for patience in monetary policy as he's in no

particular hurry. he does not expect improvement 2349 unemployment rate nor does he expect progress towards that 2% inflation rate. too soon to know he says if the economic weakness is temporary. he seems to suggest, guys in that telling any of first quarter growth number there was more than just bad weather at work. we have a full plate of economic data this week dodds if he's right or wrong. >> you'll be very busy. thank you very much steve. on that fed note guys stan fisher has been at the fed for a year now, he comments have been driving a lot of the market action. he's been speaking a lot. he's also known as a bank regular, going after the banks very hard when he was the head governor of the bank of israel a few years ago, so clearly not focused as much on monetary policy, but that will be a big question. financials are actually the leading group. in is -- energy was the worst performing group in may, opec

meeting in vienna on friday. >> goldman takes citi to a buy today, one of the best performing components on the dow, the argument the c-car results were a little better. this blew my mind they argue cheaper that 96% of the s&p on earnings and below book? >> is that true? >> wow, some news on the u.s. ban tam-x -- the shares are actually down but again the continued pace of asset sales from ge capital as they essentially in many ways wind down that unit with the hope that they will no longer be designated a significantly important financial institution, that continues. the journal reporting on another sale of potential assets there. of course last week it was reports about the leveraged

lending business and bids coming in there, but this continues at a rapid pace despite what was, of course, a year's long time frame for the company to eliminate many -- not completely all, but most of the operation of ge capital, certainly all of those that don't relate to what ge sells and the financing of them. ge capital was roughly the seventh -- coca-cola got an upgrade, pretty bullish note out there, saying after years of underperformance in the stock price, relative to the rival pepsi, coke is primed for a turn around s analysts say that carbonated soft drinks while everyone says they're in structural decline, they're saying that's not the case if you look at volumes and dollars in emerging and developing markets. remember it's in a transition year in 2015.

high expectations for what that means in 2016. bmo analysts are pretty optimistic. i want to come back to the real estate investment trust i covered a while back. they had their annual meeting i think on friday got very little attention, but somebody interesting happened. there were two directors up for the board who didn't get elected. not because there was anybody against them but they did not receive more than 50% of the votes from shareholders to be reappointed, so they reduced the side of the board from 12 directors to ten, and interestingly as well they dees classified the board. they were expected to do that next year which means taking it from a staggered board to one that's up for election all at the same time, but they did it immediately, meaning next year this entire board will stand for reelection. just worth noting of course given the failure of simon

properties, of course to purchase that real estate invest trust, macereth rejected that many sloelds not happy with that rejection. up another 6% on -- >> yeah as we said a lot of ups and downs with this deal given they started talking earlier this year frankly, did not get to the finish line. the records from the journal were in late months which sent the stocks soaring, but still a significant premium, as you say, sarah, to the unaffected stock price, talking almost a 40% premium to where that stock was prior to, let's call it the first reports of the talks. 56% premium is what they're saying to the undisturbed stock price, calling that rough le 34 1/2. and as you mentioned earlier, huge multiples, 37 times last 12

months p.e. and 23 times to ebitda. intel's willingness to pay 23 years worth of ebitda for this company. they expect it to grow for that multibalance to the not look as bad. anything done with cash today is accretive. when you have cash earning nothing, even when you put it to work earning not that much it's still better than what you're getting. >> i'm just looking at the headline-year note yield break breaking just be low 12. a lot of folks looking for higher yields on disappointing data. >> dollar hitting a session low as well. of course, you heard what fischer just said. the conditions are not yet met. >> will the data let them do it? >> let's get microsoft on the record quickly, windows 10

out -- old starred so that's going to be a key month for microsoft in the next few weeks. >> and partly on this. they did some channel checks and found there was very strong demand raised the price start. wanted to get back to deal talk. certainly the big deal on friday though we got reports of potential consolidation in another instrument and that not much of a surprise either the name here was humana up over 20% after the journal reported that it had been approached by potential buyers. end game consolidation here coming for the hmos it would seem. five major ones, remember.

session in a, aetna, humana. could 5 go to 4? 4 go to 3? in the current environment that becomes a key concern when you're talking 5 to 4 there is nothing imminent here in terms of a deal for humana there is an expectation that this company could get sold and does appear to have the eye of not just cigna, but aetna and as well perhaps anthem depends on who you talk to what would be the best fit.

kernel one more deal if not two, but, you see those that don't want to be ball. even though some are wonder whether the we'll see how this develops certainly interesting to note that humana shares were open it depends on who you talk to about the benefits. one other movement we saw on friday that may not have been noticed was express scrips was down. humana owns a pbm, and anthem the old wellpoint -- i haven't seen a deal like this very often -- back in 2009 where they basically sold their pbm to sxre scrips for ten years, but they get it back in 2019.

so the prospect if anthem were to make the move and do a deal with humana they'll get back in 2019 from express, and humana's open pbm, is seen as a powerful once. in that sector as well. we'll see what happens. you do tend to see a frensy. not quite a frenzy overjaw in m & a, but the numbers we've been talking about that some companies seem willing to pay are very high. >> in chips and cable, we're talking more about that. meantime, a quick fate here on the dow, up over 50 points bob is back on the floor. >> good to be back. thank you, and broad rattly at the open. we fade a little all ten sectors were on the up side. take a look financials consumer discretionary. tech has been the best performer so far this quarter, but a lot

of actions overseas. europe has been mixed. it started weaker but it rallied a bit. remember greece missed that self-imposed deadline. greece is closed today, but europenian stocks are generally to the up side. important thing is what's going on in asia the nikkei is up for the 12th straight day. the chinese market is back. the shanghai marge and shenzhen is up msci the -- is going to aknown if mainland china shares will be included. the eem is the big one that everyone owns. that index, if they add, china mainland shares to that a lot of western money manager will owning shares in a big way. that has a lot of people talking about how it would change the

dynamic of global investing. now, china mainland shares have been a real roller coaster recently, but on the whole, shanghai sup 45%, that's not a typo up 107% over the year partly on the stimulus from the chinese government partly on more trading, but also anticipate maybe they will be include the a-shares. this is why china's been quite angry about their weighting. china is only 3% of the global weighting of a stock market. u.s. is 50%. china is 15% of the global gdp. their argument is simple. we want more weighting in the global indexes. remember, everybody uses these indexes now, so it will change the way people invest. finally just a quick note. a lot of discussions over the weekend. the industrials on the to many line down 9% on the transports to up 1% on the thrills for the

year. that's a huge divergence. some people are arguing over the weekend s&p cap iq, for example, this is a yellow alert for the markets, they're lowers their expose jury open hyper has the opposite feeling, their technical analyst say it's not a harbinger of weakness for the broader markets. so a lot of differences of opinion where we should be going on that diverge nsz. >> thank for now, bob. rick santelli at the cme group in chicago. good morning, rick. >> good morning, sarah. this morning's data was very interested. even though interest rates were low and the federal reserve and central banks have not picked savers as the winning category to be a part of we see that spending really didn't do it. it was about income. savings went up to some of the best levels we have seen since december of '12. you could see an intraday of 10 our low yield was made when the

data hit the wires, open it up to may 1st it's been a rambunctious time. traders are trading 217, the close yield for the ten year and 2014 is a biff volt it's worked well. good resistance up at the high yield on a closing base after 229. two-day bunds, nice slight drifts open the chart up to early april, low intraday was close to four basis points but you can see we're reremaining in the high 40s at this point. not a lot of volatility. if we look at foreign exchange where volatility is hanging out these days listen 110 is the pivot a lot of traders are using. it hasn't worked as well as some of the key technical levels but nonetheless we're a bit below it it seems to do better when it closes above it. it's had a reversal to the down

side. if we look at what's going on with the pound, the pound not that long ago against the greenback was 158. this chart shows it's given up a lot of ground even though the talk is potentially about the bank of england. the last chart, the wild one of course going back to -- dollar/yen. intraday was around 124.35, a new high let's see where it closes. carl back to you. >> thank you very much rick santelli. when we come back a look inside the cancer drug pipeline. meg tirrell talks to the ceo of bristol-myers but may was a month to forget for the transports. we're going to look at whether now is the time to buy -- the dow's face continues. don't go away. when a moment spontaneously turns romantic

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good morning. good to see you again. >> good morning. thanks for having me. >> are we oversold here or not? >> we think we're getting there. we think that may is going to be the bottom for the airlines especially with respect to unit retch trends and we think that beginning with the june report on a quenchal monthly basis you're you will and then on a year on year basis beginning with july and august we should start to see improvement, so the stocks have really not worked as you've pointed out, but we think we'll get better price performance as the markets start to look ahead. >> you've been covering alliance for a long time. why would i not be worried about a boost in capacity coming up later in the summer? >> yeah so remember every summer there's an increase in capacity and then there's always a decline after labor day. that's what we see this year

happening s we're definitely seeing declines especially in international markets berle ginning in -- you know the other thing, remember what we are seeing with respect to capacity growth is more official capacity growth than any time in my career in the sense we're getting more seats per departure, not getting more in the way of aircraft and increase the fleets. we just don't have the pilots available to fly the aircraft so we're definitely seeing the number of units stay flat while seats per departure grow. even though we're seeing capacity growth we're seeing it in stage length longer haul routes so we call a more efficient capacity growth. >> that's interesting. would you even touch the rails at this point? >> well of course i don't follow the rails. that would be a question for my colleague jason seidel. >> helane i wonder where you

stand on this debate of the overall market given the weakness in transports which are usually very representative in what's going on or looking ahead in the global economy. >> right. yeah so we haven't quite gotten to the peak shipping season yet. we have come through the first clutter for fedex, for u.p.s. that i actually do follow that would indicate that we're up in part because of the port slowdowns and so on. as we look ahead to the summer months when the peak shipping season starts in another four or five weeks, we'll get a better sense of what's going on out there in the world. so companies have been indicating they're seeing improvement in europe and starting toss definitely some green shoots there, so that gives us cause to be a bit more

optimistic. with respect to the divergence, remember we have seen a big shift in the dow as we've gotten to fewer manufacturing companies and more service companies, so that should start to be rereflective of what's going in the broader market and economy relative to the transports. >> helane good to see you. we'll see what june turns out. thank you very much. >> thanks very much when we come back simon talks with the ceo of hilton. don't go away.

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now playing close to all-time highs. phil lebeau is with a look at what's behind this trend. good morning, phil. >> it's all about getting more vehicle for your sglar, and a lower monthly payment leasing has become incredibly popular. in fact almost a third of all vehicles financed a record high, are done so through a lease. the average monthly payment has dropped down to $405 a month, and the top states for leasing, more than half financed are done so through leases.

for people still buying is the amount to finance continues to go higher, the average payment now close to $500 $488 a month and the lengths now up to five years and 7 months. don't forget we gill may auto sales tomorrow. expect the rate to be close to 17.3 or 17.4 million units. carl, back to you phil thanks a lot. when we come back ism and the head of bristol-myers. don't go away.

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call our specialists today to get up and running. good monday morning. welcome back to "squawk on the street." we're at post 9 of the new york stock exchange. first week of june has historically been positive but we're testing that a bit today. now up about 50. simon hobbs is at the nyu hospitality conference in new york. he'll interview the ceo of

hilton worldwide. let's got to the road map for the hour the ceo of hilton worldwide joining us for an exclusive interview. we'll get his take on the state of hospitality plus the first-ever interview with the nuismt c oeismt of bristol-myers squibb and intel buying altera for more than $16 billion. david faber will have much more. altera the best performer in the s&p an atlanta fed might update their model to the up side because april construction spending zoomed up 2.2%. let's look at more real-time numbers, shall we? 52.8 we're expecting 52 our last read on revised at 51.25.

52.8 is pretty good but keep in mind in february we were at 52.9. the high watermark for year on the headline was january at 53.5. if we look at xwlomt with adp, and of course the employment report at the end of the week it moved over 50 to 51.7 and of course new orders are always important, moved up from 53.5 to 5.8, so this batch of 10:00 data was actually some of the better data we have seen in a while. >> and we're seeing a reaction. the dow is up 70 points takeoff? treasury yields. it is a big, busy week ahead and we have friday a jobs report. also another deadline for greece and its debt. this morning fed vice chair stanley fischer saying that the world economy is still growing very slowly. so a lot of news.

what should investors expect as we head into a new month? let's bring in the chief investment strat citi and -- and steve liesman is also with us. steve, the better batch new orders, all pointing to a rebound. we're not a manufacturing economy, but does that factor into. >> yes sarah, a good place to start. i want to hear what our investment professional has to say. what i think we're seeing here what i like about this construction data is that it speaks to the theory of the springtime bounceback that you have problems in the winter tiism that had to do with things like construction. in the flatter gdp even though -- might have taken a couple tents away but it's in line with the idea that the manufacturing bounceback. i want to real you one line from one of the respondents, saying west coast port issues have eased up and our incoming imports are flowing again. that seems to confirm the idea

that what happened in the west coast had an influence with what was going on in the economy. i have employment growth over 50 again. a lot of positives in the whole -- in all the subcategories here so it's not off the charts. i don't think we're talking about a 3% economy, but we might be in the 2, 2.5 range coming back here sarah. >> mark what does it mean for the stock market which is already trading near a record high? did manage to gain a little more than 1% in the month of may. can those gains continue with the data coming out like we have just seen? >> i think data points like this are exceedingly important. much to steve's point, the fact is we were expecting for about a month and a half better economic news as a consequence of those seemingly anomalous factors that we expect a bounceback from. the news there is pretty mixed a

little better cpi reading are all pointing for an economy showing signs of restrengthening, if you will, which is sun ambiguously positive to support current valuations. >> and the big question is what does it mean for the federal reserve. fed policy widely expected to lift interest rates. what we've been hearing from our guests this morning is that the bar is pretty low, in other words, they want to raise rates. they just needs to get a bit of a comeback here in the economy. are we seeing enough given the consumer numbers? >> in order to understand the fed this morning, we have to grab our fly rods and go down boo the weeds of the data. we have to look at the pci. i want whoa this morning when it came out at 8:30 and joe kernen mocked me this is what he likes to do. remember what the fed's criteria is for raising rates.

what is the pci price index? the fed's preferred inflation indicator. which way is it going? it's going the other way. that's the core number but the headline of course was unchanged that means there's nothing in this data that gives the fed confident. december may be more like it. i'm not sure i agree with it just yet. >> but steve, why can't they just as easily look at core cpi last month versus say, december on an annual basis? >> this is part of the quandary that's out there, carl. the cpi data is going the other way. the fact is sometime back in the alan greenspan was successful at getting the fed to embrace the pci indicator as it's preferred, inflation indicator. i do not -- see the fed changing

course in midstream here on the issue of inflation. >> given this economic backdrop mark why do you like large banks? >> well, it is that. very reasonable when compared to most other sectors. they've been very disciplined with regard to costs, and at the same time the earnings growth profile looks very attractive. with c and i loan activity being robust and residential loan activity coming online as we saw some of the new and existing -- all the point to improving conditions for banks to great balance sheets i they enwe've got to leave it there with 9 dow here.

mar, good to see you. steve liesman, thanks as's. meantime the biggest names in hospitality descending on new york this week. we find our own simon hobbs with a special guest this morning. >> perhaps it's befitting in the largest lodging gathering around the world, we actually interview one of the rock stars of the industry, as many people within the industry would tell you, the ceo and president of hilton worldwide. good morning. >> a lot of meetings lots of analysts what is the basic message? >> the basic message that business is very, very good right now. we probably have as much momentum in the big coming off a great first quarter, coming into the quarter, and frankly i think no the next few years. so i think the fundamentals are

great the cutting ink of what you do is flying around the world signing up hotel owners with the brand so you will service the hotels in the future. what is the pipeline at the moment? >> it looks great, the highest we have ever had, 240,000 rooms, 1400 hotels in roughly 70 countries. even more importantly, over half of that or close to 130,000 rooms are unconstruction today around the world. importantly -- you can't interrupt me importantly that's with little or no investment because that's without -- that's working with great partners building the properties. >> which will deliver half a billion of operation -- >> run rate ebitda from the pipeline is roughly half a billion. 25% to 30% initial to what you

have right now? >> that is right. what's interesting about our rooms under construction today we're about -- a little over 4% of the existing supply of hotel rooms around the world. we are four times that in terms of what we are under construction around the world. it tells you our brands are faring well. >> you are executing. marriott is executing, one of the big four that has fallen to the side starwood lost its ceo, up for sale why has the ball dropped in your view? >> well i think you need to ask starwood. i think what has really become clear is that there are some in the industry and i think we're at the top of the heap, that have everything you need to be successful, including versus brands that create a theater system, so the limited service phase at the upper upscale space, and you create an

ecosystem where customers trade up and down and around which most importantly driving premium market shares. our average market share is the highest in the industry we get 115-plus percent. that means owners want to build us hotels because they make more money with us. the reason is the feeder system that includes very -- >> i get it. i have so many questions, i'm desperate to get in. you're paying down debt. blackstone has reduced its stake. the burning question for many people is at what point do you start returning cash to shareholders? >> i think we've been clear, in the second half the year we will start returns in the form of a dividend. >> what about share buybacks? >> we will consider that. i don't think that's going to be in the consideration set until next week. we'll gel to our credit stats that we desire by the end of this year. >> the other big conversation is about the real estate that you

sit on -- you saw waldorf -- >> wonderful deal. >> astounding. >> reinvested in it 13 times. >> but still siding on $13 billion of real estate. the conversation is clearly do you spin that out as a reit. i understand you're having an act -- >> i would say all options are open. my job is to maximize value. if that's the way to maximize it for all of the shareholders we're going to want to do it and we are actively looking at the options right now. >> do you run the arbitrage multiples? >> yes, we are running the math looking at it very carefully. if it makes sense we are open-minded. >> when do you come to a decision? >> sometimes in the second half of the year. >> the other question is obviously the consolidatation of what starwood -- >> we already talked about starwood. >> we're going back again. >> nice. >> do you feel -- >> we do. >> do you see yourself as an

aquirer? >> here's what i would say. we're never going to talk about, as you would expect any particular deal that i would -- as a general matter we're not generally acquisitive, and the we have all of what we think we need to get and create huge amounts of value. you are our team focused on executing, because i don't think we need to distract ourselves. we are not in a particularly acquisitive mode you do have some killer brands. >> we do this is where people don't have a consequence years of age, the big growth area in the country. >> it's also some of the big growth area in the world. >> if you were to add brands would you add there or luxury scale? >> i would say if we add brands the lower scale, it's the biggest segment of the demand globally hampton has grown much

because of its success, we are looking actively at a brand that would create a bigger theater system at a lower price point. >> what does the fact of select service or that you say about the economy? where is is the economy that that's the part that's growing? >> i think the economy is doing fine. i don't think the first quarter numbers are consistent with what we are seeing. i think the economy is growing at a reasonable rate. my guess is you'll see the u.s. economy tick up. everything we see in our booking patterns suggests that. the reason we are interested in that space is simply to do with the fact we have a gap in our system where we think we can serve as only broader customer base. and nothing to do with economic issues. >> good to see you chris. that's chris nassetta in an exclusive interview.

distill to come, sarah, we will talk to the new ceo at four seasons. boy, does he have a job at his hands. >> love how you hammered him on the starwood deal. thank you the first-ever interview with the brand-new ceo of bristol-myers squibb. find out what he has, bristol-myers, the best performer, it's up sharply. we'll be back on "squawk on the street." big day? ah, the usual. moved some new cars.

hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

our meg tirrell is live joins us with an exclusive interview, the ceo of bristol-myers squibb his first interview since taking 9 helm. thank you for joining us. >> thanks for having me the biggest mover today, you had a tough day on friday. can you tell us about that data and how people are interpreting it. timplgts there is a lot of excitement about our data. it really positions as foundational -- in lung cancer melanoma, and the data is exciting. we've shown in some patients with non-squamous lung cancer, it doubles survival. in non-squamous lung cancer

almost doubling the survival at one near and it was the first product to be proved. we had a positive opinion in europe, so the data really validates our strategy. >> tell us where we stand with biomarkers, a key message here identifying which paints maybe saying which drugs will work best, which worchlt what we are discovering is a continuum. it varies by tumor, by line of therapy, so fullback in a group of patients operativo doubles survile, but in a broad patient population, it was also active. we have a biomarker test. we will continue to investigate

the biomarkers. >> right now is seems like the message is use the drug regardless of the biomarkers? >> so obviously we are very focused on ensure that patients have access to our medicines. they prolong survival. just think about 40 years ago there was really no hope for patients with melanoma. yesterday there was data presented with the combination, 60% response rate. incredible progress doubling

survival in some patients with lung cancer, there was really not much before so it's important for you to make sure they are available to patients. our experts very proactively is that in the presence of true inoy investigation for really valuable medicines, patients have access and we have a xre comprehensive programs patients assistance program. . i want to ask you more broadly, as you have just taken over the role, how do you think about the strategy going forward, particularly in business development. do you see making more partnerships? where do you need to beef up? >> our strategy doesn't change. we have successfully transformed the company and we're entering a period of sustained growth what we are ka ugh a new chapped, which is exciting for us. business development is important. it will continue to be. we have a really integrated

approach complemented by business development. we have a proven track record. pharma the academic community. that will continue to be a critical part of our strategy. remember, we are active with our leading science scenarios, where the medical need is very high. >> i want to take about one last question, aural you're looking at partnering or buying, do they -- have they gone up two high? >> this is tremendous progress in science. we have the pioneers in the field. we are making progress very, very rapid so the promise is great. when we look hat big development, we look at strategic feet the strength of the science, and obviously it must make sense financely. again, what is happening really validate or strategy. >> dr. giovanni i hope we get

to talk with you soon. >> thank you for having me. when we come back in a country with 300 million smokers china's capital just banned smoking in all public places. violators will face some serious fines. is that going to work? we'll have a live record from beijing, after the break.

bang judge outlawing it in put places. eunice has more. high eunice. >> reporter: carl, this is the toughest antismoking ban we have ever seen. as of today, people in china, in beijing won't be able to smoke in public places nor will they -- in -- to schools or -- for the government to really trying to push its overall agenda to get people to stop smoking. the country is the bigger consumer as well as producer of tobacco products a near monopoly, though they do have a

bit of a presents. however, the authorities are worried about the impact there hasn't been many financial penalties. now we are going to see both. the authorities say they will send out thousands of inspectors. and 1600 for businesses that are caught allows people to smoke on the premises. the government also said they're hoping at that time public will take part by reporting smokers they could call the government hotline or a new social media app is being ute liesed so you could post photos of those smokers to the government. then finally what was interesting is they have this poll that's going on to get the public to decide what the university hand gesture should be to indicate to smokers they

need to stop smoking right now the contenders are smokeses is not allowed. second, i do mind and the third is time-out stop smoking. we are waiting for the results of the poll. with the ban starting today. we'll see what happens. eunice yoon thanks very much straight ahead, a long-awaited deal finally gets done. intel buying al tertia. what it means for the industry. al tertia up 6%. back in a moment.

good morning, everyone. i'm sue herera. we have basically the senate in a rare sunday night session, failing to act on legislation renews the p.a.t.r.i.o.t. act, which allows the nsa to -- the soonest it can restore the power is tomorrow. the state department says secretary of state john kerry will be flown to boston for treatment of his broken leg. he stayed in a swiss hospital overnight after breaking his leg in a bicycle crash yesterday. south carolina senator lindsey graham set to announce his bit for the republican presidential election. the three-term senator known best for his hawkish views they're looking for a woman

who dropped off boxes she cleaned out. the firm discovered a vintage apple computer made by steve jobs and wozniak, which they then sold for, they're looking to give the woman half of money. back to you guys. speaking of technology we have a very large technology deal this morning. intel perhaps some would say finally announcing its acquisition of altera the maker of field programmable chip arrays, and they're buying it for $54 a share in cash. the deal has had somewhat of a tortured history. the two companies did start speaking earlier this year the talks were then reported in late march intel walking away.

asp it offered altera cash and it was rejected. over time altera ace changing shareholder base and some of the long-term shareholders as well made it clear to management that they were not ahead with the decision to break off talks, and they felt the price of $54 a share they would be happy to accept from intel. altera did resume those talks, largely avoiding the advisories on sets side and they were able to hammer out an agreement at exactly the same program, perhaps not that much of a surprise for many investors who did at least have the added weapon if you will of being ability to and by written concept 121 days after the company's annual meeting, at least a threat to potential replace the board of directors if it did not reengage with

intel. it did, of course and an aggressive move and the relatively new ceo, paying a 56% premium, what's called the undisturbed stock price that it believes of the multiple 23 years w0r9 the company's ebit dad over the last 12 months. that certainly is a number that got the attention of system members many telling me we don't see the stock price obtaining a multiple or a price that multiple would bring for years and years to come the conference call is going on right snow, intel's celt otalking about product synergyies synergies, talking about the new internet of things products that are expected to expand by as much as $11 billion. i want to bring in jon fortt,

he's been listening in on the talk. come for me if you will. to the fundamental reasons behind this dpeel, and whether it makes sense. >> let's talk strategy here. this is kind of the first quint essentially brian krza ♪ ich acquisition. he came from the manufacturing side from the foundry side. intel has been manufacturing the actual chips for altera for quite a while in and out. brian krzanich knows that basis here. think about how intel lost mobile. part of what they didn't do is integrate 9 right sort of things into a chip. intel is great at building the most sophisticated chips on the planet. but they didn't foresee the need for flexibility in mobile for

having the right antennas for doing the right kinds of power reduction. here they're trying to get that for the next generation so what does that mean? what are the examples that he gave on the call is things like facial recognition and security. if you can have the right kind of software and settings for that built into the chip that's going to be a lot more effective than having to do it in software. you can switch back and forth and make sure you're seeing the right -- into doing something with security and encryption on the fly. if you have that capability built into a chip. also has the programmable capabilities of altera built into it. that's also going to be key for driverless cars, you need to understand who is on the road who is doing what? it could be key for like facebook and other heavy image things. part of what krzanich is saying

a 2-x perform ag -- so think of it being similar to a virtualization benefit, but based on chips. they also menned the cap roll expense requirements are not going to change because altera was already a foundry customer of intel. so it's their job now to make good on all these efficiency promises. they're saying the efficiencies in the workforce will come from things like accounting marketing, not from r&d, not from the sales force. they'll still have a dedicated sales force. >> 44% coming from telecom and wireless on the financial side even though they're paying a very high multiple. probably earning less than they're going to. these deals are accretive, and the key is whether intel is

being rewarded. we want to look at that as well. down about 1.6%. jon, thank you. >> i'm so -- did that really come out of your mouth? >> in fact years ago, joe kernen and i used to talked about, and we would joke that they made gatorade. >> because they made gate array. xilinx is like the sixth best performer on the s&p. the game of who's next is clearly being played tune into "closing bell" tonight, brian krzanich will be live for a first on cnbc interview. still ahead on "squawk on the street", an bur view with the ceo of fizers. live from the conference in chicago to talk about the company's pipelines, when we could see a decision on a split and much more. the dow has tlipg from positive

and negative. we're right back. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.

e financial noise financial noise

financial noise financial noise better getting breaking news out of the supreme court today. good morning, hampton. >> two important rulings on key cases. the first, the central question here was essentially how much notice or accommodate should an employer make when it comes to a religious preference on potential hire someone, a young muslim woman who wanted to wear a head cave if you will with the abercrombie & fish look or

uniform, the employer did not want to go along with that today essentially the court ruling in her favor. justice scalia speaking for the court majority talking specifically about title vii, it forbits adverse employment decisions with a forbidden motive, when it derives from actual knowledge or well-founded suspicion or merely a hunch. that's the essence of the ruling in that particular case. the other ruling one that's been waited for in quite some time. the supreme court is taking on the whole quick of free speech on social media. there was a man who had separated in his wife. he sent out 5u9 kinds the rants off internet basically threats. he was convicted of the threats, but his defense was he wasn't threatening his wife and family.

it was all under the persona of this rap character that he created. so the court had to take on that free speech issue, in essence say that the standard here was not enough for a criminal conviction but perhaps had been enough for civil. justice reports had the decision and said he premised it solely on how a reasonable person standard it's familiar in civil law. a very important free speech case in terms of the internet and social media going forward. back to you. >> thank very much hampton pearson. over to chicago to the cme group. >> hi sara. harvard economist professor quinn mills. thank for you joining mess this

monday morning. >> very nice to see you, rick. you know back in february professor, you and i had some interesting discussions on the seasonalities of the gloimt reports and how they can get offkilter. you brought up during the interim periods we can have bad policy based on bad faulty data. the new thing is not -- but potential the seasonality to gdp. can you talk to the seasonality of gdp on multiple quarters and how far it gets out of kilter and how far -- when they go through first, second and ultimate third revisions? >> the gdp data is made up of information from a whole variety of industries and whole variety of sources. much of that data that goes into gdp is seasonally adjusted. not all of it much of it is.

there are no statistics in gdp. there are no quarterly reports of the gross national product that are not seasonally adjusted. this is very unlike the employment statistics in which each month we get statistics that are unadjusted and that are seasonally adjusted, so we can compare and contrast a learn and lot from them. so the seasonal adjustments? gdp are much more important actually than they are in the employment statistics. >> i gotcha. so when we see the silt final revision of first quarter gdp whatever that number is how much confidence and what residual inaccuracies may remain, sir? >> we don't really know. the government is working on that. that's why they are revising the way now that they're doing the seasonal adjustments to gdp, but there is clearly a significant error. last year i think what

happened, rick was in the first quarter of 2014 the government underestimated. it adjusted by overestimating the a amount of activity in the second and third quarters. then we came to 2015. got back into a more normal set of numbers, and it turns out the economy was not really weak early last year. where it has been now for six or seven years. professor thank you so much for your those and clarifications.

carl, back to you. >> when we come back this morning, the ceo of four seasons 40e89s will join us live. their plans for growth, and how their business is being affected. we'll be right back. what if there were only one kind of dog? then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs. because no one can be an expert in every one... an app powered by ibm watson will help vets tap specialized knowledge in the cloud for every breed... and whatever else walks, flies or slithers through the door. ibm watson is working to make medicine smarter every day. you wouldn't order szechuan without checking the spice level. it really opens the passages. waiter. water.

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welcome back to the largest larging conference in the world near new york. eight years ago, bill gates and saudi prince took four seasons private for $3.8 billion. they became dissatisfied by the growth of four seasons 18 months they took this guy, allan smith to reinvigorate growth at that the brand, good morning. >> good morning, simon pleasure. >> how have you revig rated growth? >> growth is obviously a high priority for any company. i think in our case what's important for four seasons is we need to be in the most important markets for our guests in the most important buildings with the best partners. and we've been very focussed on establishing those priorities. >> obviously the numbers are

far lower than marriott but you have a large number in the pipeline, i was surprised, 95 at the moment. how many on the way? >> we have a pipeline of 60 properties realized over an extended period of time. you have to realize these projects are development projects, development projects take time. but i think in our case we again are focussed on quality of growth. as i said we need to be in the best markets and best buildings. >> there are going to be trophy projects in the gulf states or in asia where obviously money is no object. they need you as an anchor but there are other hotel owners who will say look, your contracts are really tough, the number of people i have to have standing every six yards or whatever and keep a full service kitchen open through the night. what are you finding as you try and grow this company? what are the trade-offs you're trying to make? >> one of the things i'm

extending to our leadership team is all of our owners of our hotels have objectives they are trying to achieve. it's our goal our role to help them realize those objectives. and so we have to think more like an owner in many instances, in helping realize those goals whether it's financial returns or otherwise. >> it's interesting. your predecessor of four seasons, kathleen when she left, it was the named successor. you are a very different guy. from private equity, from real estate, have you taken it in a different way. have you found it difficult to bring the business with you? >> frankly, no the remarkable thing is people culture, and desire for success. and the team has embraced me with open arms. shareholders have embraced me with open arms as have the owner of our hotels. >> we were speaking earlier, you talked to bill gates regularly,

they are hands-on managers. >> let's be clear, i speak to their representatives regularly, and i would say this we have terrific shareholders they have been remarkably supportive of me and they are committed to the long-term system. >> would you ever buy the assets? >> we are not looking at that. >> the brand extensions interesting, on the one hand there's the jets that you launched that will take people around the world to, how many destinations do you do? >> for a debt? >> yes. >> typically we will stop at eight to ten destinations in these around the world trips that we've organized. >> at a price tag of? >> ranges $130,000 per person. >> the other big development of course is the app which is launched next week. what's in a four seasons apps. people in the high service hotels they don't do things for themselves, what do they want in an app?

>> well i think what it speaks to the way in which people's expectations for service continue to change and evolve. the millennials are having a big influence in this. and so what they want from their app is what they get from people. mainly a seamless service experience, and in this case, that they control. >> right. i thought it was interesting, it's going to have on this app next week released on tuesday, four seasons recommends which is what the concierge is recommending locally. >> correct. >> if i'm not able to afford a four seasons, can i log on and see what you are recommending in the city? >> absolutely. i think that's one of the things that's distinctive about our app. it's available to anyone who wants to download it. and it is a way of putting the quality of care that our concierge brings to people in our hotels to your phone. >> i hope it's the first interview of many. it's very good to see you. allan smith joining us there, the co of four seasons from the

nyu hospitality conference which is obviously taking a break, back to you. >> all right, simon, you've got more from there all day here on cnbc, see you later. now over to john ford to see what's next on "squawk alley," john? >> yeah, we're going to break down the block buster acquisition, intel that's coming on the heels of the news just last week. also twitter investor drama between chris saka and fred wilson. we'll tell you what's behind that and also the visor's ceo, ian reid coming up live on "squawk alley," tune in. has your back. over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. 73% of americans try... ...to cook healthy meals. yet up to 90% fall short in getting key nutrients from food alone. let's do more... ...add one a day men's 50+. complete with key nutrients we may need. plus it helps support healthy blood pressure with vitamin d and magnesium.

i want to give you a quick check of the stock market. the early rally was up as much as 90 points has faded. up 24 points s&p 500 flattish as well. even though we did get better manufacturing and construction data at the top of this hour. that was factored in with the weaker consumer spending number that we got a little bit earlier. few new highs and lows for the session, one i'd like to point out is per green mountain which is hitting a new low. lowest point for that stock since february 2014. boy, has the tide turned on this company in terms of sentiment. with that we'll send it back

over to you, carl for "squawk alley." thank you, it is 8:00 a.m. at intels headquarters in santa clara, california. 11:00 a.m. here on wall street. "squawk alley" is live. ♪ joining us this morning, john steinberg, ceo of the daily mail north america, john ford kayla kayla kayla kayla toush.