finally. shares of pvh, going to close out with a boost. beating the street raising its outlook and announcing a stock buyback. join us tomorrow. "squawk on the street" begins right now. >> good tuesday morning. i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. futures volatile as the greek deadline's proeches. auto sales set to hit. oil steady just's bofb 60 and ten year just below 224. first up fiat chrysler posting its best sales for may at 4%. the results driven by demand for

its jeep brand. ford and gm due out with their sales figures later this hour. chrysler came in 4%. the best may in ten years. there is a ton of news regarding cars today. >> fiat chrysler is doing so many things right. marcione distinguishes himself as the person who most gets it. i saw ford the other day. still can't produce their best truck, the f-150 at a level they want to. >> they've got frame supply issues. >> that's just killer. when we look at this year we'll see fiat pulled off maybe the steal of the century. they put together an amazing car company with tremendous momentum. taking share. fantastic turn. >> we'll hear from other automakers this morning.

we are talking 17.3 million is the estimate for this year. that number is-0 i remember that number from years. that's a good number. >> i saw an $18 million figure yesterday. 18 million unit. i've got to tell you, if we are doing 18 million units, you've got to buy everything related to autos. that was extraordinary. this is the strength. we are seeing it we saw different federal reserve numbers and so many numbers aren't good. auto line? autos are fabulous. union pacific said autos are good. >> it's an answer to all the lack of enthusiasm some argue in apparel and other things you say are largely execution based. >> yes. after pvh. >> would you argue the consumers, even if they are saving more even if they are not using all their gas savings, they are spending for a few big things. >> yes. they are spending on iphones spending at home depot. auto. where they are spending is an unusual pattern for americans.

now target yesterday, brian cornell came on "mad money" and said they are spending on apparel. it's a share take. >> i don't think we can figure this out. we hear different things from everybody. >> yes. it's a puzzlement. i was listening about paychecks. we get small business. he said in indiana, it's very good. okay. it's region to region city to city. banks in tennessee saying things are terrific. zions came out with good things. i'm saying it has been more difficult read on this market and on the economy than i have ever frankly, i've ever seen. >> did you talk with brian cornell last night. one part of the conversation regarding millennials and the focus on millennials.

here is what cornell told jim. >> millennial families more and more they love to shop. they expect great value. we have to understand how to meet their needs. and more and more, they are digit digitally connected. they might have a shopping cart but in the other hand they've got their smart phone. we have to embrace this new shopping environment. >> you are a fan of his? >> yes, i am. i think he came in with a very bad hand. target very much underinvested on digital. walmart, which on the web, digital efforts of walmart taking great root. hard to figure out where is the consumption. you'll have target. there will be some stores that have plus 10% comp growth. you'll see it's this stop pick-up thing.

you go and you literally, you order online of which they have a very good site and a lot of good deals if you are a head card member. next thing you know you're picking it up at local target. they have done -- they are going back to the days when they were more fashion oriented. brian was proud of the lilly pulitzer which sold out in ten minutes. is target cool? i think brian would say target's getting cool. it's cool among the hispanics because that is the growing cohort of shoppers. lowe's indicated that's the case, too. earlier he had been interviewed this week. people don't want to shop. brian is saying no actually they like to shop. if they are inconvenienced, they won't go to the store, they'll shop on the web. there is no cooling for shopping. it's hard to get a read on the shoppers given how strange the

comp stores are because of hand-held and orders and where people are buying. so hard. >> speaking of comps, dollar general, 3.7 comp. pvh. >> i was looking at pvh. the numbers look horrible. like a 3 cent beat. revenues are down. then you work out the translation. this freakish dollar. no longer the strong dollar the freakish. that's what happens when you have a day in court and you are trying to concentrate. >> what did you do in court? >> you're not allowed to have anything on. i was trying to figure out how to destabilize my apple watch. what you are trying to do at all times trying to figure out what's really going on you step back and you look at manny and say, manny did 10% international

comp store sales for what he bought for calvin klein. 10%. that is an unbelievable number. it comes out to be negative. that's why pvh could be up. warnaco acquisition is working. does the buyback. you come back and say, maybe we ought to look at ralph lauren. that had bad numbers. maybe that's better again. you are going to see apparel act well. brian cornell is saga parl selling well. manny saying macy's is doing very well in apparel now. hey, apparel was bad last month. apparel is good. this inconsistency is driving people mad. that's why the market tends to do nothing. >> we should mention quickly overnight the dollar did hit a new high against recent high 12-year high against the yen. >> freakish. >> yes. it is freakish. >> on another topic this morning, airlines getting hurt after these reports of bomb

threats called into some u.s. carriers. tom costello has been all over that this morning and joins us from d.c. >> good morning to you. what we had is five flights named with these bomb threats. four are already on the ground. american 648 which was us airways, san diego to philly on the ground. delta 55 los angeles to atlanta on the ground safely. ual 995, san francisco to ord chicago is on the ground. valari air, portland oregon to mexico on the ground. only korean air 23 seoul to san francisco is still in the air. the government as well as the south korean authorities and korean air determined that the threat is not credible and the flight is continuing on to san francisco. it is expected at about 2:22 eastern time. again, four of the five flights are on the ground one in the air. all threats deemed not credible.

the caller said there was a chemical weapon of some sort onboard the plane. we had nearly a dozen or so flights affected. most of them were international flights inbound into the united states. were met by police and dogs all found to be safe. the issue is who is behind this latest series of threats or is it all coordinated? >> appreciate that very much. we've got the patriot act expiring news about the tsa. >> the numbers coming in from may for the airlines no surprise, are terrible. delta just down with that revenue average seat mile down 5%. this is something gary kelly, the excellent ceo of southwest air predicted. he said may looked bad for southwest. but one of the things happened

yesterday, gary kelly, you saw the midday 2:00 rally in the airlines. >> there's a lot of people saying we are going to grow 8% capacity which had been means price war. now you could say maybe he shouldn't be growing that. that caused the rally and is being unwound by tom costello's story and monthly numbers. monthly numbers should not be a surprise. tourism is down big in florida. san francisco, vegas, new york. >> it's an important issue. >> we'll see what the overall numbers are. >> fedex is going to retire aircraft earlier, take a charge on that. >> you talked about that as being the achilles' heel of fedex. they still had a lot of expensive planes. >> criticizing airline company

not delivery company. >> i do think ups is making a turn they changed their pricing. i was dealing with someone does large mail order business. ups tightened up what you can get away with. transports are in flux. union pacific saying you know what? things are just okay. a lot of this is coal. the coal market is going away. you can add the coal stocks up and you don't get $10. >> there's been interesting stories about, not just the war on goal but the disappearance of coal. it's not just the administration. it's in a lot of different areas coal has been -- i the numbers are staggering when you look how many coal-fired plants are being shut down almost every day. >> nat gas is -- there are two prices for nat gas. posted price then local price. you get nat gas from the marcellus which is the pennsylvania area, it's like a buck. coal companies can't compete.

utilities are switching. the epa is not backing down at all. a lot of these guys are waiting for republican administration. >> by then it will be 2017. >> forget it. it's like the war on drugs. the war on coke. is that yours? >> it's not mine. >> can yeah it? >> you can take it. >> when we come back we've got streaming news involving apple. we'll fill you in on that. former pay poll and intuit ceo bill harris whose personal capital is on the cnbc disruptor 50 list. we'll get to the euro now above 1.11 as the cpi and euro zone comes in positive the first time in six months. ee in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics

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we've got chrysler auto sales for may. now it's ford's turn. >> better than expected numbers from ford for the month of may. a decline in sales of 1.3%. the estimate was for a decline 3.4%. do not focus on whether or not they are up or down a couple percent. focus on the fact these are better than expected sales results. you combine this with what we are seeing from chrysler.

early commentary from other automakers. i would not be surprised if the end of the day we see a sales pace the month of may 17.4 or 17.5 million. it's just starting to feel like that as we get these numbers coming in. >> that is amazing. seems like a while ago, 16 seemed too far to reach. >> it's so difficult to recognize how strong autos are. there is an overall feeling in this country things aren't going right. autos are a tremendous part of the economy. >> ford is going to reduce its number of summer shutdowns. they normally take a lot of breaks during summer give people weeks off. that will let them make 40,000 extra cars. >> these companies are big international companies. look at latin america, europe china before you start buying the stocks. what phil said is so out of sync

with so much other data. >> those are big numbers. they really are. >> meantime future of apple music may be coming soon. the "journal" says apple may unveil its new beat service on monday. it will cost $10 a month. will not have a large free ad-supported service. apple will not announce television plans next week because it has yet to finalize some of those licensing deals. we may not see that until later this year or next year. les moonves said last week they would probably do a deal with apple. >> he likes to make the point on any stream any over the top streaming service out there, cbs will be a part of it. they will get yet another revenue stream. when we say tv plans, we are talking not about a tv on the wall we are talking about apple tv the box, a new streaming service from apple. an over the top product that will complete against the likes

of sling tv from dish the sony anti-rant. these over the top products are proliferating at a rapid rate. you can anticipate that amazon why wouldn't amazon have an over the top product at some point that incorporates its centerpiece. why wouldn't netflix have an over the top product that includes others since it's part of so many other over the top strategies, if you will. >> and there is enough time on people's hands to look at these different products and play their video games. get their hair done. >> you'll figure out what you want. the point is you will be able to at least start to have a sense what works for you. there will be options. at different price points with different channels that fit what you want which means you will disengage from the overall bundle at some point. >> it's incredible how many people are watching tv on their extra large hand held.

apple iphone 6. catching people watching tv when they are supposed to be eating dinner. >> there was news from pew research research, where they get their political views, facebook. above any network, newspaper or magazine. >> facebook is the major media company in this country. >> this is where advertisers want to be. the embedded thing works. people people -- i have denny's on tonight. >> you think music from apple will make a dent in anything? do you think it's of any importance. >> i think they have to give it away. maybe that's anti-trust. just give it away. >> why not just buy spotify? >> i don't know. i think that makes sense. qualcomm should buy skyworks. i've got a whole list.

>> i know you've got a list. >> i do. did you notice i snuck in "vanity fair" because i wanted to get this thing going? that's all anyone is talking about away from stocks. >> a million followers in four hours. that's not bad. we'll talk later about "vanity fair" -- we know what they are getting. what does twitter get out of this? >> i was watching melissa's show last night talking about the twitter death cross. at the same time everyone was on twitter. maybe dick c. ought to take this blessing of "vanity fair" and figure out how to save his -- stop beings existential about his job. instead of talking about the job, say the death cross, i am messing with that. go totally in on the stock. what do you think of that? >> it's great. that "vanity fair" cover made for interesting conversation with my 12-year-old and 9-year-old. here it is. his name was bruce.

oh, yeah. >> now it's caitlyn. >> i didn't mean to be political. i don't know. >> we'll get cramer's mad dash and count down to the opening bell. more news to come as the auto sales roll in. more "squawk on the street" from nyse straight ahead. push your enterprise and you can move the world. but to get from the old way to the new you'll need the right it infrastructure.

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get was apple pie a la mode with a slice of cheddar cheese on top of it at crackle barrel. this is a play on gasoline. they just did a $3 special dividend. much better than expected numbers. they are on a lot of the interstate exits. >> they had a fight with an activist that went on and on. finally ended. they are doing extremely well. >> this is what people want. they want to travel in their car. >> wait. i thought people want natural and organic. >> there are two different kinds of people in this country. people who don't mind being a little obese and not eating well which they want a treat which is where dunkin' donuts does well why darden does well. how can popeye's louisiana kitchen do so well? cracker barrel that says let's get off the interstate find a

nice bathroom have pie a la mode, buy candy, maybe a rocking chair and $3 special dividend. >> that's america. that's why we've love it. opening bell after this. my name is jamir dixon and i'm a locate and mark fieldman for pg&e. most people in the community recognize the blue trucks as pg&e. my truck is something new... it's an 811 truck. when you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you don't hit them when you're digging. 811 is a free service. i'm passionate about it because every time i go on the street i think about my own kids. they're the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california.

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you are watch withing cnbc "squawk on the street." we've not talk to the cpi euro zone, up three. core up 0.9. is qe working already? >> it's so funny. you get good numbers, everybody freaks out there. we need to see the freakish dollar stop. this makes me feel we have seen the bottom. if that's the case a lot of international companies will have good comparisons by first quarter next year. we'll be looking starting july 1 at 2016 numbers.

this is going to be from a head wind to tail wind if this keeps up. do we have to worry about qe? what we have to worry about is the dollar not making it as if we lost competition. auto companies are doing great. we'll see the actual earnings and they'll be terrible. >> there is some bifurcation. euro weaker today. bank of japan saying i don't want to comment on currency levels, on the speed of currency moves. it's important to reflect economic fundamentals. he's not saying fx markets and saying dboj is not aiming to weaken the yen. sure, they are not. >> the commerce should say enough. they cannot take our business away and not let our product in. we don't do that kind of thing. that would be too helpful to the

american worker. >> dollar/yen 1.25 the first time since 2002. unbelievable. >> sony's killing it. some people got out of sony before the big move. >> they did. >> there's the opening bell on this tuesday. take a look at the s&p. big board talen energy celebrating its spin-off. at the nasdaq analog devices celebrating its 15th anniversary. >> adi is in the crosshairs of people who talk about takeovers. ad ifrn adi has a lot of intellectual property for people in cell phones. remember when you hear adi, i've got to be thinking they are where intel wanted to be. intel needed to be in internet of things. adi is an internet of things. somebody asked me what is the internet of things? i'm doing work on a lock

company. the internet of things is let's say your cable guy is coming between 3:00 and 4:00 that little window. you'll be able to remotely put in your code guy gets in guy gets out. covers from a camera. when you think internet of things, you think adi, skyworks and altera. >> there are notes less than complementary for the intel altera deal. some negative saying they just paid an enormous price and are not sure of the return. >> where did they get that? maybe because brian said maybe we paid an enormous price. he is such an honest guy. love him. >> we've gotten chrysler and ford. phil's got gm. >> sit down because this is what jim is talking about when he tweeted out autos are on fire. gm may sales an increase of 3% much better than the expectation

which was for a 1% decline, according to edmunds.com. what is noteworthy is the commentary from the sales release. gm is estimating that the auto industry sales pace last month was 17.6 million vehicles higher than anybody else out there in terms of estimates. again, you've got gm ford and chrysler all reporting better than expected sales numbers for the month of may. gm an increase of 3%. >> that would be a record i'm assuming, 17.6? >> it's not a record. there have been some months above 17.6 but now we are getting back into that 2002 2001 time frame. we are going to go back and check. near term we had 17.44 last fall, i think in september. you've got to go back into '04, '03 to get into 17 range. >> employment growth is helping.

you get more jobs you get more cars. >> pricing is up about 4% and people are paying it. the insensitive talk last month, moderate. clearly people are paying it. they are taking out longer loans. >> that is the blow back from twitter. the 0% financing incentives out of control. >> about 1/3 of the vehicles out there for sale right now offer 0 3rs financing, but those are for three year loans or best credit. come in you get 0%. in reality, most people 90% of the people are not getting 0% financing. they are offering it but you are not going to get it.

when i listen to the autonation conference call, you listen to carmax, credit is not that easy to come by. people are wrong that this is a finance boon. >> right. this is not driven by financing. you look at latest numbers from experian. it's better than '09. anybody, come on in. if you are walking, you will get a car. >> thanks so much. >> what's leading the s&p is pbh. >> 10% comps for calvin klein. by the way, calvin klein underwear if you go to macy's a giant selection at high prices. prices are going up for underwear. prices going up for denim. >> really. why? >> the market can bear it.

>> really? >> maybe this is too much information, but versus what i'm seeing in anniversary, you can handle this information. i said i go to tj max. he said people go to macy's they buy full price underwear and pvh is the winner. they've got that buyback. denim has been -- it's been ages since there's been price increases in denim. denim's been footballed. it's a lost leader. denim is back. margins on denim are gigantic. pvh isn't done. ralph lauren goes higher. >> people argue it's under armour or nike or lululemon stealing share. >> no one seems to care. nike is having the jordan renaissance.

lulu was a currency problem. >> "wall street journal" spending a lot of ink on prices coming down with china with increased production of goods and increased demand for good. tires being a key example. auto, tire prices have come down sharply. >> monroe complained about that years ago. i didn't think it was going to get worse. i thought once again maybe someone in our government would complain about dumping. we seem to be a dumping ground according to dan d'amico former ceo of nucor who says we don't stand up. >> look out, you are going to be hit by a piece of rebar coming from china. >> anything that is a commodities coming right at us from china. we say nothing because that's the business we've chosen to

sell a lot of product from china. this is about prel. >> you mentioned the airlines a while ago. the transports coming out of correction territory yesterday. even as these bomb threats are being said to be not credible. a lot of the airlines having trouble getting out of the gate. delta down 2%. >> that delta number. i don't know why people are surprised when they see monthly numbers be bad when the company said monthly numbers are going to be bad. did people not hear? the numbers are bad because there's a lot of competition. we haven't had competition in a long time. welcome to the new world. yes, you are talking about tourists. people don't realize some of these airlines have tremendous exposure overseas. people aren't coming here because it's i too darn expensive because of the super freaking dollar. >> super freaking dollar. >> despite these very strong numbers from the auto sector? >> too expensive to bring the

dollar home to mother. >> it is. you can't bring it home without paying taxes on it. >> that's true. a lot of things going against the u.s. in the end, our companies are selling a lot overseas. >> gm is down. it's like in the end, they are also selling cars in other places. they are not selling as many because our friends in japan decided to subsidize any japanese car coming from mexico. a japanese car is selling for less than it did five years ago. >> back to that freaking dollar too. >> super freak. >> freakish. >> we'll get rick james on that story. >> don't you think? he was a titan. mary thompson watching what's moving. >> dow jones industrial average just off the lows of the day. down 94. basically a lower open across the board today. traders are watching number of things, higher interest rates here in the u.s. rising bond yields, i should note. greece waiting for any word on

any signs of progress on negotiations with the eu. transports today. they are watching that super freaking dollar which the dollar index is weaker because of the gains we are seeing in the euro against the dollar on the heels of that strong cpi number in the euro zone. take a look at transports. mentioned it earlier. this is an airline story today. down 60 points as delta's may passenger june why it revenue was disappointing. down 5%. that puts pressure on the airlines with those bomb threats we had earlier which have been down played at this point. you can see they are weaker across the board for the airlines. we are also watching bond yields. rick santelli will have more on this later. we've seen a sharp uptick. as a result we are seeing a pullback in some of the rate sensitive sectors in early trading. dow utilities are weaker today. we are also seeing on weakness in the reit index, as well. the stronger dollar moving off

bond yields is giving a positive boost to some of the commodities, both gold and oil higher today. automakers, better than expected numbers from fiat crieser, ford as well as general motors. pullback even in those two stocks in the wake of those numbers. gm hugging the flat line right now. walmart ahead of its annual meeting friday is raising wages for over 100,000 workers in electronics and autos and the auto service sector of the company. auto service, i should say. stock under pressure on that. we also want to note cracker barrel better than expected results issuing a special dividend and raising its quarterly dividend. investors like the news up over 2%. quick check on the story stocks today. all companies out with better than expected results. medtronic's forecast weaker for the year. was weaker than expected. the dow again off 109 points

right now david, back to you. >> thank you very much mary thompson. and that freakish dollar. let's talk about the latest war of letters, if you will and a deal or potential deals i've been following for some time but we haven't mentioned in a bit. talking about teva's opportunity or attempt -- okay. i'm i going to stop before i start and we'll go to phil lebeau with breaking news on the tsa. >> it's been a skittish morning for those either flying or traveling in the united states. the latest is that united airlines briefly had a ground stop for all of its aircraft due to an automation issue. that ground stop was lifted just within the last minute or so. again, united flights that were grounded, although very temporarily are now going to proceed with continuing on to their destinations or taking off or landing as scheduled. again, that ground stop has been

lifted by the faa. back to you. thanks phil. i'll get back to write started on mylan/teva. we get the animation, too. makes it official. yesterday mylan sent a letter to teva saying any number of things. first saying teva you just bought 1.3% of our stock and we think you violated anti-trust laws doing that. saying a number of other things. they said that acquisition violates u.s. anti-trust laws and remains silence with respect to using those shares and consider it a further intention to meddle with our business. it remains unclear as so many other things do in this heated battle whether or not there is any violation here. there is a provision that says if if you are a foreign company buying shares in another foreign company which mylan is you can

buy up to 50% without any questions under u.s. anti-trust law. however, if you are a u.s. company certainly, if you bypass $76 million, you have to buy hart scott to get anti-trust approvals. did they blow through that? there is also a provision that says if your ceo is based in this country, maybe you are. or the laws are applicable to you. in another area where it's hard to understand exactly where the truth lies but it is yet another salvo saying we don't understand what you did or why you did it and we think you are violating anti-trust law. mylan going on to the bigger issue which is the fact it needs a shareholder vote for its deal to try to acquire perrigo. once it gets that vote it will wait for anti-trust approval and put that vote to shareholders perhaps as soon as july or august. teva seems to be trying to make that vote a referendum on its own deal to acquire mylan.

that's perhaps what mylan is most concerned about. will it or will it not get that vote. if it doesn't get that vote will they say this means shareholders want you to negotiate with us. the path for teva is very difficult, given the foundation that is in place in the netherlands that could block a potential deal and ability of mylan's board to appoint its replacements. you heard me right. you can't just elect board members. it's board members who get voted off get to elect their replacements. there are a lot of potential impediments to the deal. they are relying on the court in holland to come to its aid. one key will be that shareholder vote. in the letter mylan also going on to say actions can only be considered to be a thinly-veiled attempt to frustrate our boards successful tragic direction, including the vote at the egm on

pending acquisition of perrigo. stakeholders the keyword here. not shareholders stakeholders. that's why they incorporated in holland. saying it was most similar to where we were in terms of pennsylvania. it goes back to the overall thesis that says we are thinking more just not about shareholders, but about all the people. that's how they think about it in the netherlands. this continues. the spread is enormous. remember it's 2.3 shares and $75 of mylan. we'll see whether teva raises right before the vote were to come. >> medtronics talking about making more acquisitions. tax domain. >> medtronic went ahead with its inversion. mylan is inverted. perrigo inverted. teva is an israeli company.

such important component to strategy when it comes to pharma consolidation. those left out, makes it so much more difficult. >> st. jude med complaining the other day. >> pfizer too. >> big pharma valent. valeant is the story of the year. and actavis. they may be ready to do another deal. >> the ceo of actavis asked about doing a big deal as much as dick costolo is asked whether he is keep his job. >> brent ready to strike saunders. let's get to the bond pits. rick santelli joins us from chicago. >> good morning, david. well interest rates are hopping and the dollar flopping here. look at a two day of 10s. 2.29% is the high yield close of the year going back.

these markets lurch on data points. last night some lurches you see in the two-day opened the chart up to december. how quickly things change. i told you many traders keeping a simple model when it comes to ten-year rates. below it you look for lower yields above higher yields. it has worked well. look at closes over the last six weeks. you'll see what i'm talking about. let's go to europe. may 1st chart of bunds, they got back into the mid 60s quick. listen, we can all talk about how long low inflation is going to last because it gets paired off with low velocity and low growth. i guess many don't believe that deflation is a huge problem. boy, the market certainly jumped back because of more inflation in the euro zone. let's look at other countries. let's look at the 10 year in france, may 1st almost at 1%. spain p, have to go back to november last year. over 2%. portugal.

back to december of last year. it's getting ever closer to 3%. two day of the euro versus the dollar. look at what happens when you get above that 1.10 pivot. it just rocketed higher. last chart two day dollar yen, boom it reversed quickly. dollar is now under pressure by the tune of a penny and quarter in the dollar index. >> we'll see you soon, rick santelli. when we come back, google photo is just what about the doctor ordered for your picture library. a review on that. >> dow down almost 100 points, back below 18,000. playing for the usual phil? always stacy. at kpmg we've always believed leadership is about vision and integrity, confidence inspiration and passion.

pitching wedge. thanks phil. and always having the courage to take your best shot. see the best of the best at the kpmg women's pga championship.

three days to go until the big jobs number. tweet us your predictions for may nonfarm payrolls. use the handle @squawk street. the winner gets a cnbc polo shirt autographed by the "squawk on the street" gang. you'll have until one minute before the release of the number. the first guess gets preference.

2.25is the estimate which ticked up. >> we'll have to hear a whole day of friday right hike. >> this is 100% cotton? it's got that feel. it's i nike. wow. >> made in the usa, i assume. >> let's just say the company's head quartered in oregon. >> all right. >> boo-yah, right. >> not a chance. >> it's got the oregon thing going. stuff like that. here you go. >> save space for david who likes to sign big. >> does he? >> i'm incapable of signing effectively so i need to go big. >> stop trading with jim. don't go away.

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time for cramer and stop trading. >> i'm a popeye's fan.

mr. bojangles rolls out today. you have six buys and three holds. this one has been stronger. i don't think it measures up to popeye's. i would swap on it into popeye's. >> they do chicken, too? >> yeah. they have a lot of breakfasts. i think popeye's had a fantastic quarter. this restaurant group, every day there is a new winner and loser, which is why i'm proud to have denny's on tonight. the grand slam is back. numbers are big. company is buying back stock. there is nothing wrong with denny's. it is ramping. then i have international flavor. i've got cinco ban. denny's operation grand slam

which my mom loved. >> john crowe is on. >> you know nothing john crowe, you've got to say that. see you tonight. >> good to be back. >> former pay poll ceo bill harris.

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good tuesday morning. welcome back to "squawk on the street," i'm carl quintanilla with sara eisen, simon hobbs and david faber at the new york stock exchange. auto sales inflation coming back to the euro zone as cpi finally goes positive. airlines had a ton of news thrown at them. we'll keep an eye on that with the dow down about 68 points off the lows. >> let's get you the road map for the hour. multiple bomb threats against u.s. aircraft were made this morning. government sources saying the threats were not credible. this after news the tsa failed 95% of airplane breach tests. we'll talk to a former tsa administrator and director of the fbi about all of it. >> bill harris former ceo of paypal will join us live to

weigh in on the future of mobile payments. >> starbucks says there is room to get in, buy it and make a profit. >> let's get to rick santelli. >> breaking news. yes, carl. april factory orders on the older side. down 0.4%. much more than the down 0.1 unchanged we were looking. last month was 2.1. that was upgraded to 2.2%. if you take that out, all the factory orders negative going back to july of last year which was up 10.8%, which is the biggest month over month change ever. let's call it 8-9 numbers have been negative in this series something to pay attention to. simon hobbs, back to you. >> thank you very much. breaking news from the federal reserve. steve liesman back at hq with

more. >> thanks very much. the former undersecretary for international affairs of treasury who moved to the fed giving her first major speech on the economy and she is down beat. saying a rate hike is possible. she says the data so far does not suggest a significant bounceback for the economy. she says the fed could hike rates before the end of the end of the year. on the economy, she talks about the dollar saying stronger dollar delays the return of u.s. rates to normal levels. its rise reduces net exports and drag on exports can last for some time. foreign head winds from foreign economies being weak hurts u.s. manufacturing and u.s. inflation, pushing it downward. consumers have so far showed themselves not to be inclined to spend the gas price wind fall. the pace of job gains slowed.

very down beat on the economy saying the economic data needs to clear. needs to come to a clearer view before rates would go up. still suggesting rates could go up before the end of the year. simon? >> thanks very much. at least five bomb threats were phoned in against flights originating or landing in this country this morning. government sources deemed the threat not credible. four of the five flights, one from usair, delta have landed. korean air flight 23 from seoul to san francisco is scheduled to land this afternoon. welcome to the program. thank you for joining us. >> good morning. >> this news would be very troubling to people today. what would you say to them? >> i think there are a couple of things to take away from these

findings that have been published. one is how seriously the government particularly the department of homeland security and secretary jeh johnson and tsa take these findings and want to make them right. second, there are these tests, covert tests that are done all the time by the inspector general in this case government of accountability office and the tsa red team themselves. the purpose is to try to find vulnerabilities, try to exploit those in an effort to improve the system. that's what secretary johnson and tsa are working on right now. >> when the authorities say these threats are not credible what does that mean? what do ordinary people make of that? what goes on behind the scenes? is it like a tv drama within mini seconds they are able to pinpoint where a call has come from or does it mean something else? >> it depends on the

sophistication of the person making the threat. an actual terrorist who is planning to blow a plane up would they call that in to give advanced notice and give authorities a chance to disrupt it? actual terrorists don't do that. obviously, they want to be successful and giving advanced notice isn't a way of achieving success. there are calls like this literally every week. some get publicized and some don't because they are so incredible or incredible that they are not reported. the traveling public should feel safe in terms of travel. there is a whole network of national security intelligence community, law enforcement, homeland security professionals who work on this every day to make sure the 1.8 million people traveling every day in the u.s. are safe and secure when they travel. >> if that's the case why when the plane landed in philadelphia was there, were there police firefighters and k-9 dogs called

in to search the plane if it's called in on a telephone call means it's not credible. >> not the fact it's 100% not credible but just based on my experience and those in the business have been in the business recognize it's highly unlikely. authorities will respond and take appropriate measures to mitigate any possible risk. >> tom? >> i missed part of what you were saying because i was doing "the today" show west coast. the government believes the threat is not credible. four already on the ground. the other ones are on the ground safely. we now had more than 15 of these threats phoned in over the course of the past two weeks

including, you may recall that air france plane on memorial day met by u.s. fighter jets and escorted in. the question it just seems -- it's amazing what somebody and who knows if this is a lone wolf or high schooler in his mother's basement, but somebody can cause this kind of chaos and have it ripple across the system and two weeks later struggling to find him. it seems amazing this guy is out there. >> do you want to handle that? >> really. it goes to the sophistication of the person making the threats. there's any number of ways a person can disguise their true identity. the challenge becomes to get that attribution, where it's coming from and able to locate that person. many times these threats come from overseas.

then it's a matter of working with the foreign counterparts or the other agencies to say track this person down and let's find out what's going on here. is it credible? as you mentioned, every time these calls come in they move to be not credible. >> we are in this volatile environment when it comes to security. senate failed to approve the patriot act. would you think these are being leaked to the press through some political motivation? >> i don't have insight into that. look, if people want to draw attention to themselves, they know aviation is a way that attract as lot of media attention and obviously government response. because of the significance of the industry to not only the u.s. but the global economy. so terrorists recognize that long ago. going back before 9/11 and looking at different ways to

disrupt air traffic. i think it's simply a matter of how can we best address the issue with those who are making these threats, as has been mentioned in prior coverage somebody making these threats is subject to a criminal federal felony subject to up to eight years in prison. something that is serious. >> just as a final comment, the fact we have now the partial suspension from the nsa of this ability to collect bulk phone records of americans around the world or other foreign nationals, does that impact the security of airlines or planes in the air as we speak now? >> not to anybody's knowledge. if you have a gap in collection that may be the means of identifying a potential threat can clearly there is some risk there. there is no specific information that i have that would indicate that. the whole point is to prevent

something before it happens rather than to prove who did it after the fact. >> good to see you both. thank you. thanks, guys. it is a busy morning. we've got auto sales out. general motors ford, fiat cries chrysler coming in better than expectation. getting close to that 17 million milestone. >> we are above it in terms of a sales pace for may. nobody is disputing that. the question is how far above it. take a look at the about ig three. all of them reporting better than expected numbers for the month of may. an increase of 4% for fiat chrysler 3% for gm. ford that decline 1.3% was better than expectation of edmonds. tablg a look at shares of nissan up 16% the last year. nissan reporting its may sales down 0.8%. flat for the month of may. as we look at shares of gm and ford both companies out with

industry sales pace estimates for the month of may. listen to this carefully. general motors is estimating that the industry sales pace will come in at 17.6 million. that's higher than most people have been expecting. that tops just a few minutes ago by ford telling analysts it believes the may sales pace will be in the low 18 million range. ford estimating may sales pace in the low 18 million range. what you are looking at much stronger than expected sales for the month of may. we need to hear from toyota as luxury manufacturers. the big number's already out from the big three. all indicate that we are seeing the consumer going into the show room and buying new vehicles. back to you. >> busy morning for you. phil lebeau in chicago. thank you. gillette jumping into the shark tank. daymond john will join us live with details.

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are. joining us is daymond john. >> how did you get involved with gillette? >> i'm the brand guy. talking about the gillette shave club i realized they had not only comparable but i think premium blades at the same or less cost for the value and quality. >> you can get five cartridges for a few bucks every month. gillette is $19 for 10 of them. >> that's correct but you get anywhere from 14 to 16 shaves. when you amortize over the course of time you save probably about 50% to 60%. i would say 40% to safe and

saving 40% of anything is a shark's deal. >> how do you bring it in. >> they have a head start in subscriptions. you have companies like gillette in the shave club you can purchase through target and amazon and strategic retailers, as well as other partnerships such as sitting with me for an hour. they have a lot of value they can bring to the table. >> is shaving back in? we heard from the cfo of gillette more than a year ago at least now that november, people were wearing beards p, you go to williamsburg and see it. is that ending? >> no. you still have to shave all the other stuff around. you don't want to have the sour taco meat sticking out. most men don't realize when they are out there and doing

business, first thing people notice shaneis shaving, shining their shoes, their nails. >> you notice shoes, don't you? >> when i think of gillette i think power house name. massive sales through huge big box, drug stores costco. this is small potatoes for them. >> i don't think it's small potatoes. any big brands they have to learn how to touch individuals at home. look at nike. they'll make a custom shoe for one person no matter what. they still are not suffering in retail. they still are one of the top brands. gillette knows how to talk to the people. >> why are you cutting through? president obama made you an ambassador for entrepreneurship. you are a hot guy people want to have to push forward their agendas. what do you bring to the table?

>> first of all, that is great in line with my new ambassadorship. i'm part of the my brother's keeper initiative by president obama. it's about to teach young men and women, especially young men, about the brand that starts at home at first. as they go out to the streets and are selling themselves. we are constantly selling ourselves. this is one of the reasons i believe when you are branding yourself, it starts here. that's why i decided to become the face of gillette. >> behind closed doors when you're talking to gillette are you suggesting to them or they suggest to you their brand couldn't do what you are doing without your help? >> i don't think that. as they strategically align themselves, they are looking for influences like everybody else out in the market that represent their brand and can speak from an educated standpoint. you are branding yourself as well as saving money. i'm on the road 280 days out of the year. i don't have time to look for

these things. >> i was a gillette user almost all my saving life. you are talking here shave to shave would differ with each person. this value proposition i find hard to believe. >> if you look at getting 14 to 16 shaves per blade then how many blades do you need a month? you are going to need two. the blade will be sharper. look at the fusion and the glide. we are all sharply shaved individuals. >> i use men's razors. >> you have to cover more area right? >> is it better to do this than to go onto cvs and buy gillette

products. >> this will be delivered to your door. >> i cover these big consumer names and they are struggling with the internet retailera. it's different than gaining scale and gaining leverage with retailers to get shelf space. >> it is. if you are partnering with retailers such as gillette shave club you can pick it up through your retailer such as target or amazon or have it delivered to you. the retailer respects that. you are helping bring people through the door or give them awareness. judge, that was like a shark tank. >> i watch it all day. that's why i learned to master the pitch. thank you for acknowledging the page ambassadorship. obama was kind enough to make me a a presidential ambassador. i want to spread the word to everybody how to empower

themselves. want to get to eamon javers in washington. >> testifying on capitol hill today about the breach of irs' own website announced last week which 100,000 taxpayers saw their information accessed by hackers. what he is saying on capitol hill to law makers right now is the irs is working with tax preparation companies planning to announce an agreement as soon as next week to enhance the security in the short term. he's providing additional detail on just what happened in that hacking incident last week. this is important for people who fear they might have been affected. there are about 13,000 suspect returns filed for which the irs actually issued refunds as part of that hacking incident. those refunds according to dow jones totalled $39 million or about $3,000 on average per return.

that's the big fear here with the hacking attempt into the irs 'system. hackers will then file bogus tax returns on behalf of those taxpayers then collect that money, have it redirected to a different account. the taxpayer is going to have a problem when he or she goes to file his or her own return. they realize, that return's been filed. that will cause difficulties for a lot of people. saying they are working on a short-term fix. >> could be a nightmare. >> absolutely. >> thank you. when we come back former paypal ceo bill harris now the ceo of personal capital which made cnbc's disruptor 50 list will join us live to talk about the future of mobile payments.

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mobile payments have become more mainstream. bill harris is the ceo of personal capital as well as former ceo of paypal and intuit. he joins us from the exponential finance conference in new york. walk me through personal capital and what you are trying to change here. >> sure. personal capital is a new breed of financial advisor, one that combines online financial tools with a team of dedicated financial prizors. >> who are you trying to take business away from? >> it's the traditional players. our top three losing brokers are schwab, fidelity and vanguard. >> your fee structure is different how? >> much lower than the traditional players. well under 1% in all instances,

all in. >> we topped the segment talking about mobile payments. how is that related to what you are doing? >> another example how technology is being used to democraticize democraticize. they are focusing on short term money. we are doing electronic wealth management and focusing on long term money. >> is that robo advisors? that's a thing gaining in popularity but there are concerns with the quality of the idea of electronic financial advising. >> we are not a robo advisor. a robo advisor is automated. we combine our propriety technology with dedicated financial advisors so you have a complete hybrid servers. >> are you getting from the traditional shop? >> we hire people with two to

five years experience in the business, direct client facing with an ria, someone not a broker, but an advisor, with a legal obligation to work in your interest not the interest of the firm. typically not hiring people with 10 years in the business. they tend to have too many bad habits. >> are they people at traditional banks or mutual funds or people who don't necessarily do this completely new millennials to the idea managing their own finances? s s. >> these are people in their 30s, 40s and 50s. they find they have more money than time. >> i want to pick up a point you made where you said you weren't employing people, correct me if i'm wrong, with ten years experience because they picked

up too many bad habits. i thought with age came wisdom. >> sometimes yes. what we say in the business is 20 years experience is not the same as 20 years of one year's experience. so many people particularly brokers in this business have been doing the same thing the same way for so long that really it takes an entirely new mindset to use the technology now available to deliver a service truly in the customer's best interest. >> on a separate note this war between apple and increasingly between google now regarding mobile payments do people who say this whole thing is feeling faddish, does that resonate with you at snaulall? >> no. i think consumer technology is changing finally, after years of stasis changing what it people can manage their money. >> great seeing you bill. thanks for the time. bill harris of personal capital,

formerly paypal at the exponential finance conference in new york. straight ahead, markets bouncing back from lows earlier today. the president of the euro group saying a deal with greece will not be theoretically possible this week.

good morning, i'm sue herera. foreign ministers from nations

fighting isis gathering in paris discussing a strategy how to reverse recent losses to the militant group. also on the agenda restarting syrian peace talks. >> secretary of state john kerry participating in that meeting via telephone before having surgery on his broken leg this morning at massachusetts general hospital in boston. he arrived late last night by ambulance. >> a canadian judge awarded more than $12 billion to quebec smokers in a case that pitted them against the three giant tobacco companies. they all say they will appeal but they are required to pay $800 million within the next 60 days. >> adrian peterson is returning to the minnesota vikings. he will participate in the team's voluntary practice after nine months away from football. he missed the final 15 games last season while addressing child abuse charges in texas. that's your cnbc news update. back to you.

angela merkel is pushing hard to a resolution with the standoff in greece. in berlin an emergency midnight summit narrowed the differences with the imf. they will spell out core principles to athens to conclude a deal with a deadline friday. the greeks are waiting a response to their own new proposal, but significantly for 70% compliance with those core principles. the euro zone could immediately release 7 billion euros of cash that's already sitting in a bank recapitalization fund, according to spanish tv. >> morry harris and john declus joins us. good morning to you. >> good morning. >> good morning. >> john it is a statement of the obvious in europe a lot of

cash is sitting on the sidelines waiting potentially for a great deal. it could end in tears. is there similarly the possibility of a major rally here if a deal is done? >> i suppose so to some degree. i think if you look through the temporary negotiations, they are kind of creating a solution with mirrors, irrespective of what comes out the other end. long term structural problems affecting greece are pretty straight forward. the math just doesn't work. they have a growing pile of debt. whatever mathematics you apply to the situation, it's likely down the road there is going to be more that has to be done. what i'm suggesting is potential restructuring a writedown of certain amounts of their debt. we have to hope they do work something out as to the impact on the markets, it would certainly be positive. again, i think we are going to be talking about this issue

months down the road. >> we'll talk about this economy and this market in greater detail in a moment. to clear up one other thing coming from europe they had the return of inflation. if the debate becomes about an early end to qe in europe how would that affect markets here? >> well i think you are going to see qe going on for quite some period of time. i don't know there would be significant impact. obviously, there would be some currency movement around that. perhaps strengthening of the euro. so in the currency markets could you see the most movement i would think. as to anything happening any time soon it would surprise me if qe in europe didn't continue for some period of time from here on out. >> maury, what is the view of the data we are getting here now? >> may data will look better than april data so far.

certainly the factory ism was up in may. friday you are going to get a good payroll report. we've got payrolls up 205,000 for may and unemployment rate coming down from 5.4 to 5.3. begin that negative gdp number in the first quarter in terms of perceptions on the economy, it's very important these data start to sequentially improve during the second quarter. >> but maury, are we going to break out of the 2.5% goetrowth for the year or another sub 3% growth for the u.s.? >> we got off to such a lousy start in the first quarter, it's hard to have a plus 3% year. we think there is around 2.3% growth this year. if you look at growth on a sequential quarterly basis, you'll be up around 3% or better for the final three quarters of the year. >> let's cut to the chase.

what do you think will work best? >> you have to favor risk assets simply because of the level of interest rates. there are attractive stories in all the major world equity markets. we increased our exposure to develop international equities in europe and japan. the emerging markets have an interesting opportunity, as well. >> how concerned are you by maybe a long term of very good effect, savings high in this country. but causing problems because we don't get the bust return on consumer spending. what view are you taking on those figures which are

astounding coming through? >> they are. i had a conversation with an official from the federal reserve in chicago a while back. she took the view it's not unusual given the wind fall of lower energy prices for consumers to sit, wait and save. their data shows after about six to nine months you should see that coming back in and influencing consumer behavior. i'm going to be patient and wait and see before we write off the consumer completely. >> guys, thank you. when we come back it's apple's xet why are to google nest. smart thermostat will be offered as the first of apple's new home kit. try... ...to cook healthy meals.

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welcome back i'm phil lebeau. toyota is the latest to report better than expected may auto sales here in the united states. toyota sales last month dipping 0.3%. that was better than the edmonds estimate of a decline 2.1%. you now have the four largest automakers in the u.s. all reporting better than expected sales last month. most of an incresse or doing better between 2% and 4% versus the estimate. back to you. >> thank you very much phil lebeau. look at utilities today. trading sharply lower as the broader indices trimmed their

losses. dominic chou back at hq. >> rising interest rates may play part of that story. stocks lower led by a decline. the bigger laggards agl, edison edison, cms and xcel. ppl completed the spin-off of its energy generation business causing deutsche bank to cut its stock. interest rates playing a big part in the utilities story today. back to you. >> thank you, dom. it only makes sense to go to cme with rick santelli. yields making a nice move up here today. >> absolutely. yields hopping and the dollar's flopping. welcome, yra harris. i guess the best place to start today is lagarde and imf. you had thoughts this morning on the imf. >> more than this morning. i have been a critic of the

imf -- i've been doing this a number of years. three things. when a country got into trouble you raised taxes, you cut spending and you depreciated the currency. the imf got involved in greece which they never should have because greece was a european problem. as long as europe was solvent, what was the issue for them to get involved? they couldn't help themselves because lagarde came with political baggage. she was the finance minister of france and there was a role she was looking to play here. they screwed the greeks totally. they gave them the austerity end but there was no currency depreciation. if you try to do this all through austerity, you are going to leave them in a terrible situation. >> you can't appreciate 121st of the euro for greece? >> no. the politics became so dynamic that they are now left with this and they have no answer for it. as we talked about many times, we understand the economics. we understand the economics of

austerity. judge >> economics is not the driving issue to the force playing out in greece. >> this is politics. every time jack lew makes a statement there are unknowns here that we are nervous about and you are sure and the united states says we are not so sure. quoting jack lew, we don't want a lehman moment here. >> the treasury secretary jack lew nervous about systemic fallout from greece. i don't hear him nervous about that. that surprises me to be frank. >> he can't be. he would have to criticize the fed. you will not see him in that position. easier to criticize the imf. the united states has the veto power at the imf. if the united states says to to lagarde, solve this problem, i've got $7 billion on the line solve the problem. >> imagine a room filled with

mousetraps and every trap has a ping pong ball on it if you throw one mousetrap what happens? they all go up. >> maybe jack lew is worried about greece because in the systemic globe we live in with regard to all the issues anything could be a catalyst could it not? >> absolutely. >> anything could be that ping pong ball. >> absolutely. they are worried about no growth. anything that stifles credit creation which impedes growth is a dynamic they don't want to deal with again. there is nervousness here. >> our income and spending numbers yesterday, real quick, the savings rate is close to december 2010 as we've been in a while. policy makers don't like savers. finish up with the notion of savers. >> secular stagnation. you get into the paradox of thrift which people are nervous. >> the more nervous, the more they have thrift the less the policies are going to work. >> or the lower the rates are, the more you have to save for your retirement.

end of story. that's what they have. >> always a pleasure. sara back to you. >> always a pleasure to listen in on that one. starbucks hitting another all-time high. stock is up 27% this year. can you still get in on the big run? more on that.

that's what they have.

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shares of starbucks pulling back this morning after hitting new all-time highs this morning. the company's shares have been on a roll urging nearly 30% since january. is it too late to get on on the surge? >> joining us is an analyst with smp capital. where do you see within beverages, foods and restaurant stocks the double-digit sales and earnings growth. >> this is one of the leaders in the segment. there's other participants in the industry who are able to grow their business through a combination of new stores and 0

company. we just think right now there's no risk/reward proposition that is hurting it. >> so i mean where do you see better value if you think that this move is already been done in starbucks? >> we think in general the segment of restaurants and are quite pricey. we actually have a sell for example on mcdonald's. and that has done issues. but we think that right now the market is just very expensive for the segment. >> the other question i'd have is there's a lot to be excited about with starbucks. the menu innovation the turn toward food and how that's helping drive same-store sales growth. the technology that starbucks is getting into. the rollout of mobile pay. you think that's all been factored in here? >> i think you hit it on the point. it's a growth story and there's a lot of positive fundamentals, the opportunity to add to food to add k-cups to expand to havana to grow internationally. as well as slower in

domestically. but right now the valuation is above its historical average forward pe multiple and it's close to 30 times or estimate for next year and that's where our concern is we like the story and think it's priced to near perfection. >> can i get more color on that? the stock has basically doubled in three years to the point that you're referring to. >> 238%. >> it's not a momentum stock in a technology sense, though that could presumably, i don't want to put words in your mouth. that could fall dramatically from here. i'm assuming the rally is built on a solid footing, even 30 times, am i wrong in that? >> there's supportive fundamentals there. we look out with our hold opinions based on the next 12 months. we think that this is going to grow for years, but right now we think that it may be more attractive, we're not saying when we would change our opinion. but if it pulled back we're always going to review it we like the story, it's the valuation that gives us some pause. >> some of the restaurants have come in.

i'm looking at loco even denny's, which has been a strong performer have come in a bit. when do they start to get interesting and which ones do? >> one of the stories that we is yum, right now there's activist interest in that stock. it's had trouble in china. and it's something that's growing very fast. in terms of opening new units, comparable store sales generally up. you know there's a lot of positive for the consumer both in the u.s. and globally, people are getting more excited, there's more jobs more spending in their pocket. they're a little more cautious on the spending but we think it's a question of valuation. >> who is winning the breakfast for us? who is taking share? >> mcdonald's we know is losing there's a difference from duncan dunkin' donuts is a contributor there. even starbucks wants to get a little more in that part of the market.

>> i guess the jury is still out on how much share hit can take from mcdonald's, thanks for joining us. >> my pleasure. as we change gears, ready for "squawk alley." let's check in with jon fortt on cnbc. >> i got a list of internet tech rumors that aren't going to happen. apple, giving away iphones, face book charging $1 year. now one on netflix we're going to tackle. there's a nest competitor that's going to be compatible with apple's home kit already out with a product. we will talk to them and walt mossberg reviews google photos just announced at google i/o, is it any good? tune in and find out. but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today.

and stay ready for everything that is still to come.

three days to go until the big jobs report and that means another opportunity for you to nail the number. remember, tweet us your prediction for the may nonfarm payrolls at handle@squawkstreet. the lucky winner will receive a cnbc pollo shirt autographed by all of us here at "squawk on the street." we're going to have to bring in the producer mark gilbert to sign on his back. >> mark do come in we need somebody to sign on. there you go. take it away sarah. >> remember, simon, the kppgts

is more than 220,000 jobs the expectation. to be created during the month. let us know what you think. you'll have until about one minute exactly one minute before the jobs report release on friday to tweet us your predictions. good luck it's summertime. this will fit nicely in anyone's wardrobe. male or female. >> yes. just as mentioned where we are on the euro. the euro is surging partly because inflation has returned to the eurozone. we'll talk about it at the euro close in "squawk alley." >> mario draghi is holding an ecb meeting tomorrow. no changes expected. he is it would seem winning the war against deflation with this inflation number. we'll tease ahead to the european close and jon's friday over to you for squawk alley. >> good morning, it is 8:00 at netflix headquarters in los gatos, california and 11:00 a.m. on wall street, "squawk alley"

is live. ♪ ♪ ♪ ♪ welcome to "squawk alley" for a tuesday, joining us this morning, shelly palmer with landmark ventures and first up we talk about apple. getting a better look at future of apple music. "wall street journal" says apple will take its apps off the revamped beats service, expected to cost $10 a month. unlike spotify. will not have a large free ad-supported service. meantime re/code