never sleeps this is "squawk box." ♪ shake it off ♪ good morning, everybody, welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin and brian sullivan. joe is out. he is son a much deserved vacation this week. unfortunately for him, he probably didn't catch the end of the u.s. open. it didn't wrap up until after 10:00 p.m. on the east coast. that's about 3:00 a.m. for where joe is right now. we did see a heck of an ending jordan spieth winning after dustin johnson missed a birdie putt on 18. it was a three-putt in the end and he could have tied it if he made that putt and continuing in an 18-hole playoff. but instead, spieth wins his second major in a row early in the season. the top story, the market's in rally mode on prospects of a greek deal. check this out, in germany, the dax is up by 3%. the cac up by an equal

percentage point. the ftse up by 1.25. and in greece putting it back at 750. greek prime minister alexis tsipras will be meeting with the e krb ecb and the imf. so far the greeks are talking about concessions saying that they would not take. we'll have more from michelle about carebrera. take a look at what's been happening here in the united states. the futures here have been up strongly as well. the dow futures were up by over 150 points earlier this morning. right now up by 127. s&p had seen much bigger gains earlier but still up by 13.5 points. the nasdaq up 13 1/2 points. as we hear what's coming out of greece. we'll take a look at what's

happening in the currency market. the dow is down against the euro 1.156. >> let's talk about what was a very busy weekend. there wasn't a deal yet. the biggest development, cigna rejecting a $47 billion merger proposal from anthem call can go deeply disappointing and lacking growth strategies. anthem is offering $184 a share towards cigna and they'd bid public to influence shareholders. we should tell you this has been going none talks for quite some time. this was for force the hand so the talks have not moved forward. cigna andet-a etna going with humana. alet that approached humana with a take over. and the united health group if you can follow all of this recently approached aletetna.

we have the big fight over this anthem/cigna transaction. i will say having been on the phone with these guys last night, the craziest part so far, in rejecting the anthem deal they're claiming there's an antitrust issue. >> well there probably will be. >> there probably will be. >> you are clearly on the ball. >> clearly. >> for all of them what's crazy for me at the same time they're also playing the price game. which is to say, yes, we're available, but by the way, we think there's an antitrust issue. the second you say there's an antitrust issue, it almost doesn't matter what the price is. >> it doesn't matter the price. >> they've also attacked anthem on the idea they had that cybersecurity issue, do you remember? and that they're a mismanaged company. it just seems challenging or will be challenging within a month from now, all of a sudden cigna says -- or rather anthem says, by the way we'll raise our price. okay. all that stuff we just said about you, it's fine. >> once you get the bad blood

going in. as brian was pointing out, the lead story talks about health mergers could cut consumer options. you're talking about major overlap in areas where you just won't see competition. i think that's something that anthem may be paying attention to. >> i didn't realize until digging into the story and looking at the market cap how much big united health is? >> yeah. >> the market cap is about $104 billion. the other are combined. i think the market might allow four. >> right. >> i don't know if the department of justice would allow three. >> there's also an ordering issue. this is why at the same time whoever gets out of the gates first, they can get to the government first. >> the thing about this story, too, a lot of the deals we talk about cnbc like mom and pops are like -- ahh -- but this matters.

. this is your health care. this is your insurance company. >> and do you think people think about their cable? like comcast? wait until you mess with their health insurance. on other potential news williams rejecting a $48 billion buyout offer simply calling it too low. now williams did not name its suitor but it's widely reported to be rival energy sector equity lp. >> in case we needed to say that it was -- or -- >> so you will say that it is energy transfer. >> it is energy transfer. >> texas based company bid by one of the richest companies in texas that nobody has ever heard of. nice guy. it's a $48 billion bid that's a big deal. obviously, a bright future in pipelines. williams calling the bid too low. it now plans to launch a strategic review of alternative,

i.e. potentially either selling assets or buying assets. that's what that generally means. shares of williams company right now, you can see are trading way up. well keep tabs of the airline stocks today because baron's said shares could rise 15% to 50% amid competition and dropping fuel costs. american delta and american midwest were all mentioned. stocks are down 15% 20% so far this year. you need a much bigger gain to get back to where you were. >> meantime barrons also talking about merck. merck, a dow component that is trading as well. stocks to watch, advanced

micro to watch indeed according to reuters. the chip maker may spin off a business or break itself up as it tries to better compete with rival intel. fitbit, that coming off of strong gains in its first session as a public company. and qep resources is leaving the s&p 500. the deal will be relaxed by bextra ultra. the qep will move to the s&p midcap. in the meantime let's get back to the greek drama that's playing out in europe. renewed optimism finally, of a deal to avert a default saying the market is higher this morning. cnbc's chief international correspondent michelle caruso-cabrera joins us. michelle. >> reporter: this move may have a better ending we will see. all the official meetings happen

today. alexis tsipras, the greek prime minister is meeting with the ahead of the european commission jean-claude juncker. we know within the last 24 hours that the negotiations have been quite intense. and that a new proposal was submitted by the greek government late last night or early this morning, depending on who was on the receiving end, and the signals are much more positive than we have seen in the past. first of all, the eu spokesperson said good basis for progress. and we haven't heard another finance person come forward and just laugh the proposal off the taken as we've seen in the past another good sign. and there are reports that the european central bank gave more leniency, more liquidity and cash to the greek banks again this morning. an investors says the proposal was designed to get to the e krb in time to make sure they could see.

and openfully be satisfy there was some progress being made in order to give liquidity to the banks which by the way, people are openly talking about whether or not they're able to reopen tomorrow. the greek stock market is up 8%. what is up with the any greek proposal? we do not know. i have the old greek proposal from three weeks ago. i'm going to focus on one key question that seems to make both sides very crazy which is the retirement age, particularly of government workers. in this old proposal the greek government put forth, they said listen the current effective retirement age of a government worker is 56.3 years old. in their old proposal they said we promised to get that up to by the year 202058 58.5. that was not considered fast enough bit europeans. the sooner you get people to work longer the less the

pension system is going to cost right? so what is the new number? we don't even know if that's the format of which the new proposal has been submitted. that's one of the key questions that we're watching for. pensions are a huge issue here. last night there was a pro government, anti-austerity rally, pensions came up quite a lot. these people are very angry. they're so angry to the point that many of them say they are absolutely willing, some of them each of the want to leave the euro. now, keep in mind they are not the majority but they are certainly the most downtrodden of individuals who tell us drop the euros, i don't have any money, so it doesn't matter. they are exhausted. here's just two of the people we spoke with last night. >> we don't want more austerity. enough is enough. >> reporter: then is it okay to leave the euro? >> we don't need the euro. >> three months it's the

european union, it is the imf. and, of course the central bank of european union. >> reporter: three events maybe four to watch for today. we've got two big meetings. we've got the finance ministers and the leaders of the eurozone countries tonight. they promised, they said there's no sold deal for sure but maybe able to announce progress. we expected a four-year rally, et cetera. and we're also going to watch the riot police out as well. a lot of people last night said if there's an agreement they didn't like, they weren't going to be happy about it. i think that's why we have police on the streets. guys, back to you. >> michelle is there any way of knowing how much support tsipras actually has? have they run any polling that is you think is reasonable or up to date on some of these issues? >> reporter: he's still extremely popular. his popularity has fallen but there's a great sentiment that

someone, quote, finally stood up to the europeans at this point. and really tries to drive a much harder bargain. and that has returned to them what they say, let's return some dignity to the greek people. in their voice, if i were to quote some of the people that we spoke with last night. >> and he then has the power to go ahead and change the deal and change all of the terms of the agreement that they've been supporting to this point? >> reporter: okay so that's where we're really going to find out today exactly what did they give in on what are the things that will bring people out on the streets in one direction or the other. hard to know at this point because there's a real dichotomy, right? people want to stay in the euro right? more than mafl of our greeks want to. but are they willing to accept the tradeoff that goes with it. previously, they've been told depending on which party it is the most leftist of the parties say, no we should leave the euro, if that's what we have to

do. but when you move towards the middle class and upper classes, they're saying absolutely we should accept the couple of austerity terms if it means staying in the euro. >> michelle thank you. the situation is anything but accomplished and finished at this point. there are a lot of questions. right now, the markets are moving higher on this news here in the united states. but it does leave a lot of people wondering how investors can actually play out the greek debt crisis. steven englander, and forrest strasbourg is economic manager of investment assets. steven you say there's no real winning here. no matter what happens there's going to be a lot of questions remain? >> i think that's the case. i think very short term everybody wants to get to next year. the six months for greece is a victory. and for europe i think that there is this desire to get past

the spanish and portuguese elections where many of the same issues come up again, they done want to look as if they caved too much. >> well we looking, burress, at the euro trending stronger against the dollar. but we don't know exactly what any of this means at this point? >> no i think steve was right, in bringing out that old phrase kick the can down the road they do seem to extend this issue. either the players forgive it or the debtors pay it. greece is never going to repay that debt. they've got to reschedule on monetize that debt down the road. but if they can come to some sort of an agreement that extends this issue for a year that certainly is very positive. something that was interesting, none of this would matter if janet yellen was much more hawkish last week. that said, everything is kind of enter

intergent? >> why wouldn't it make -- >> because the dollar would have rallied. the reason why she didn't this issue that what's bothering her. they're thinking they don't know what kind of a credit crunch. steve thinks i'm giving her way too much credit. if they had solve this if this becomes a nonissue, then the fed feels much more relaxed about raising rates and the euro is actually going to fall. >> with all due respect, so many people on this network are talking about the wrong thing. michelle hit on it at the end of the piece. i was there six years ago when they were throwing things around. all the complex talk about finance, all the imf, the loan payments and debt reschedule and austerity. i spoke with many many people there, every single one of them brought up the retirement age. they want to raise our retirement age from 43 to 66. the germans retire at 63. the average is 65. so with all of the complex stuff that we talk about every single day, boys if you talk to men

and women on the street in athens, they're like don't touch the retirement. >> i think the key issue is that europe has seen them promise structure reform many times. they realize it's not going to be sustainable. >> this is just a granular issue. >> you're absolutely right. i think they have to -- perhaps why you're seeing positive comments because they good move on the age. maybe that was the key thing in the proposal. there's no way this thing can get solved just by forgiving the debt. >> greece became an independent nation in 1821 since 1821 they've been in default or severely delinquent in debt payments. 51% of the time. 200 years greece has effectively 50% been in bad credit. >> correct. >> why is anybody surprised by this? you can go in and talk to people, and they'll scream about the imf.

ultimately, they say, and they want to raise our retirement age. >> any good deal has compromise on both sides. >> but i want to go to the janet yellen conspiracy theory. >> i basically what yellen ted is he press conference is that their only thing to hike at press conference news. there's no way the fed is going to sound hawkish, three no, sir june three months before september, tip their hand. have the equity market go down have the dollar rally like it did in march. and if something goes wrong, they get the blame. we think a few week next september, maybe they'll give a signal, but no way three months in advance. >> i agree. but a couple weeks before her tone was much more hawkish. the fact that they had backed off, i don't know if this is a concern -- i wouldn't put it past them. >> she's watching the dollar.

>> she's watching the dollar. and i think the most important thing, nobody knows -- if greece does default, nobody knows what kind of a creditor to the global system just yet. >> let's be fair too. greece has -- i don't want to say quality defaulted -- i will say, 2011 the banks took a cut in the majority. greece has already in some ways defaulted. they weren't going to get paid anyway, 80% of greek outstanding debt is held by the ecb or the imf. who exactly is going to be defaulted on? in 2011 this was a banking crisis oh gosh deutsche bank is doomed if greece is doomed. now, it's been transferred to the taxpayer and the federal government of europe, if you will. it's a different scenario. >> i think the ecb -- >> the united states -- you get my point, boris. >> yeah i do.

i think your points are extremely valid. the deal to have any sustainability it's got to be a compromise on both sides. hopefully, they can raise the retirement age. >> because of qe and the possibly that the ecb can explain to help protect the other peripherals who play and at the end of the day, there's much less fear about greece leaving, it's undesirable, but it's not a catastrophe has it would have been in 2011 and 2012. i think they're going to play hard ball and try to get some of these reforms. >> let's leave the conversation there. gentlemen, thank you. when we come back moviegoers got in touch with their feelings this weekend. pixar in and out had a strong showing versus the dinosaurs but not enough to win the weekend. disney shareholders running for cover. then we're talking taylor swift facing off against apple on policy. we'll head to a break, take a

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welcome back everybody. it looks like there may be bad blood between taylor swift and apple.

and apple may have just blinked. swift signing off on apple for not paying royalties for three months. on a letter posted to tumblr from taylor. in it she called it shocking disappointing and completely unlike this historically progressive company. apple apparently got the message in less than 24 hours did a 180 analysis and paid back royalties during the free trial, maybe they won't ever get back together. apple put out the coolest -- you rarely say a company say we read taylor swift, we decided we were wrong, we're going to change our minds. that was pretty awesome. >> i read taylor's letter and gave apple huge credit for immediately saying that's good credit. >> taylor saying we don't ask you for free iphones so why are you asking us? >> good point. >> another huge weekend at the

box office "jurassic world" taking the top spot again with 12 $102 million in gross sales. and the new movie "inside out" also. david companying media stocks. is this opening weekend of pixar's new movie enough to make up for the disappointing sales of "tomorrowland" that we talked about a couple weeks ago. >> financially, no but from an investor sentiment perspective, i think yes. this movie going into the week was supposed to do $60 million or $70 million. it was kind of the second consecutive, oh, coming up a little bit short. tomorrowland will be a meaningful wright off. >> what do you mean? >> i think it will cost them $100 million. >> and this pixar film how much is investmented itself, do you know? >> theres probably a negative

cost of 150 in production. >> you can call it the flaposaurus rex? >> it wasn't a flop. it just missed. >> we got to get through -- we still got a long ways to go to get that money back. >> it was an international marketplace. i think this movie -- usually, there's an index, there's kind of a formula, something like three to four times the opening weekend is what you'll expect for domestic. that didn't include international, international is probably just about as much. i can't overemphasize the importance of unlike "tomorrowland ""you walk into "inside out" you see a direction from the director who welcomes you to the here and reesminds you that it's a disney movie.

this is not like a franchise movie like "tomorrowland" or "jurassic world." you could have been seeing like any movie, you know from any studio. this is such an uniquely disney experience. and that's why i think it's powerful for the company, powerful for the stock. it's probe more important. >> you have a really interesting component in your note which is this idea that somehow when it comes to modeling out the earnest performance of entertainment companies, the thing that i read that was fascinating disney you gave credit to. >> yeah. >> -- in terms of repeat business. comcast universal or somebody else, you say it's hard to actually model that out. >> well -- >> and you don't necessarily call this recurring business, i think is the word you used. >> i think the way we often talk to investors about the studio business, it's a series of kind of recurring, nonrecurring events, right? because you can't really predict whether or not there's going to be consistent clean and

success. that's what financial analysts point out. we're not really in this business. although i did think this was a great movie. the disney studio is really different of course there are so many franchises that are so proven and so consistent. actually, i think you got to give them the benefit of the doubt in creating new franchises that you can rethink a model of a studio in a way that's different. >> because you do believe every summer it's effectively a reoccurring business? >> it's not just every summer it's there are franchises that are sequelable. >> right. >> so there are franchises that aren't quite sequelable that are popping up. next big thing for disney is "ant man." does that roll off the tongue as being the next hit movie? normally we wouldn't give it benefit of the doubt, popping out of "the avengers" and "star

wars." >> with universal per se but all the other studios, is there any other studio that you actually say this is a reoccurring business? >> no -- well, we see reappear reappearing franchises right? "fast & furious," it's kind of hard to call it not a reowe current business or recurrent franchise. at this point, "jurassic world" seems to be reformed. >> you look at like a minions is coming. >> well, minions is going to be a big movie. but the number of predictable franchises that are coming out. i think you have to have a couple years of track record before you also get that wall street has the confidence to see it. >> thank you for coming in. sounds like we got to see this movie. >> got to see it.

>> what age? >> definitely over 6. it's a little dark. i think everybody over the age of 7 or 8 is going to love this movie. it's like "up." it's like wall-e. it's a lot bit more thought-provoking than the typical cartoon. we want tyke a moment to remember cable television pioneer and founder of comcast ralph roberts. ralph passed away on thursday night. he founded the company back in 1963. back then it was american cable systems. in 1969 the company was renamed comcast and the rest as they say is history. roberts would remain ceo until 2002 handing over the reigns to son brian but he stayed close to the company and involved in the controlling stake to nbc. ralph roberts was 95 years old. last doesn't happen at first. ♪

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♪ welcome back. we're in the chairs looking at articles that are fascinating us this morning. before we do that, can i say, we always have fans hanging out on the street. but today we do. you can just get this shot right here. we have some nice guys right over here. can they get that camera shot? there we go thank you. move your sign over it's the nicest sign i've ever seen. look at that. that is our first official -- have we have an official sign like this before. >> he pointed to his son and said don't -- >> yeah. joe always gives a hard time to

them. anyway, he's with his dad nonetheless. a big article that i was fascinated by over the weekend, this whole situation with uber in san francisco. you've seen what's happened over there. there's a decision that's come down that suggested that uber at least in san francisco, those guys are not contracted employees. those are actually employees and what that actually means to uber. and whether we're going to see uber across the country have to become an employed not contracted business. >> isn't this more than just about uber? it's about the sharing economy and whether all the employees in uber economy are going to have to become real companies. >> and like something at airbnb if something happens, are they responsible for it? where you have no employees and know -- >> it's just the future of work. we just talked his son is trying to do an uber for

lawyers. which i think is funny, you can see the lawyers walk around on the street like a crossing road -- >> there's a lot of them. there's a lot of them. >> i'm not convinced that they're employees, i just want to say it. >> this case is a lot more than just uber. >> this is only in the case of one employee. >> right, it's unspecific employee. in cases around san francisco and others around the country are trying to push this situation. >> be careful what you wish for, too, there is a benefit from being an independent contractor from a tax perspective. there are a lot of things you can view in a debt that you cannot do as a salaried employee. >> that's true. >> there are benefits but drawbacks. >> i don't mean nobody is taking a pension these days. but the question is whether uber is going to have offer all of these things. that means the prices are up. you guys also may have read

suggesting that maybe it doesn't matter. they're so far out ahead of everybody else all this does is make it that much more difficult for a competitor to come into the space. >> that's interesting. one article that caught our attention is one that takes a look at high cost of colleges. it points 0 out that colleges have since 1976 more than doubled the cost of attending college, it's more than doubled since 1976. that is much high thaerner than the rate of inflation, just in terms of of what you put in your car in terms of gas. at this point, parents and kids are starting to rethink some of their majors. it points to an example of a woman accepted to get into juilliard and saw the price tag of $54,500 a year. mom said she would kick in if she gets a degree. if she switched to political

science, her mom kicked in $20,000. people are looking at the practical applications of these college degrees. if it's something that helps you to get a high-paying job, maybe you're willing to take on hundreds of thousands of dollars of debt if not so then you don't. >> it's a huge problem. >> there's also luxury now. last night, jordan spieth is your u.s. open winner. this after dustin johnson missed a putt on 18 that would have forced i play job. in fact he three-putted. along with the new face of golf does he have a chance at a grand slam? in the next hour john hess continental resources founder earl hamby heidi height camp and ryan lance, they'll talk

about the challenges facing the industry right now. it's a huge summit. "squawk box" returns in just a moment. >> announcer: this cnbc is sponsored by --

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welcome back everybody. we've beench whatting the u.s. equity futures and they have been sharply higher out there the morning. the idea that we may see some sort of settlement reached for greece. now things are very tentative at this point. and there's a new point being put forth and michelle caruso-cabrera has been watching the market. greece up by 8%. german market french market major average up by 3% as well. as saw here in the united states the dow futures up by 120 points

above fair value. here's a latest look at numbers. again, things are tentative at this point. we don't even know what's on this potential settlement but we'll continue to hear more. the 2015 u.s. open coming to a dramatic finish late last night. jordan spieth claiming the title only the sixth player to win the masters and the u.s. open in the same year. by the way, he's 22 years old. to take us inside the favorites of nbc sports. dave, is this about jordan spieth's win or dustin johnson's sort of i don't want to say collapse. but he looked like the average suburban dad out there. >> absolutely. let's start with jordan spieth. he's the picture of poise and the reason why many win this golf tournament. he doesn't have the highs, the lows. he's steady he's poised for a 40-year-old, let alone a 21-year-old. when he double bogeyed 17 you

thought he's done. but he stays on a 287-yard 3 wood. the kid is solid. he joins the likes of nicklaus tiger and hogan, youngest to win these first two majors since 1922. he could claim the spieth slam winning all four majors. he's got the game and poise. just on the bag is dustin johnson three-putting from 12 feet. many thought he would sink the eagle and win it outright. he has to hit the three-footer to send this thing to a playoff. it was painful to watch. there is the eagle on 18 with his fiancee paulina gretzky, her dad, wayne gretzky watching on. >> poor dustin johnson, his fiancee is paulina gretzky. let's ease up. >> let's not feel bad for the guy. >> he's still a heluva golfer.

jason day impressed me a lot. medical scare on thursday or friday. scary situation. hit his head hard. comes back. i think he was even or minus 1. >> he was even for the tournament. probably won him more fans than any golfer. outside of jordan spieth. people were pulling for him. the physical effort the wear and tear got to him. finally to the ugly that is the usga, mike davis is ahead of the usga and chambers bay golf course which was a circus. player a nine-time legend said it was the most unpleasant golf tournament he's ever seen in his life. hendrick stenson likened the greens to putting like broccoli. then it was said it was more like cauliflower. >> does it get fixed? >> well this course can't get

fixed. it is what it is. it's exactly what they wanted at the usga. it's a public course ups and downs, link-style trains running side by side. will they ever go back to that course? i seriously doubt it. >> as you point out last week a couple of caddies wound up in the hospital. >> right. >> two cad diswound up indies wound up in the hospital. jordan spieth, his caddie is a local. he got married in this neck of the woods and used a caddie during the summer. that is say brilliant play my friends. have a hometown advantage. >> when a player like johnson misses, you're going to win because the other guy screws it up, what's the etiquette in terms of how -- >> how you take your bow? >> yeah. >> he was already finished. if you're on the green, it's a little more difficult. jordan was offscreen. had finished down his round. now, we can look ahead to the possibility of winning all four

majors, which i don't want to ask is he the next this next that? he's outstanding, he's poised. he's paul liquored. >> golf needs that. >> networks need him. tiger woods li literally. i have friends who could have shot that. tiger woods is -- waiting for it to surge. it still could. an 86 or whatever he shot on that course, there are local pros that could do a round like that. >> there were three golfers that finished worse, with a total of score worse, than tiger. three. one of them is 15 years old. the question used to be could he beat jack's record. now i wonder could he beat jack. jack is 75 years old. i'm not sure right now he beats jack nicklaus head to head. the widest fairway in the history of the u.s. open. he misses it. he lets go of the club it goes

20 yards backwards. i think it's the biggest collapse we've ever seen in professional sports. make mike tyson is something close in the modern era. i don't think we've ever seen anything like this spectacular fall from grace. it's sad. >> thank you, sir. >> thank you. >> thank you for staying up late and coming in early. when we come back the gop candidate overload. more names, more choices. will the candidates get their message to voters or will the party get splintered? we'll debate it, when we come back. ♪ what if we finally had a backyard? that'd be amazing. ♪ hey, what if we took down this wall? ♪ what if this was my art studio? what if we were pre-approved? ♪ shut up. from finding, to financing. how'd you do that? zillow.

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you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

welcome back to "squawk box," the latest poll out this morning the key take away jeb bush's standing is now climbing 75% of republicans say they could see themselves supporting bush. now that's up from his 49% rating in march. meanwhile, two-thirds of gop voters say they couldn't support donald trump. let's jump into this discussion now, former george w. bush white house, both cnbc contributors. i want to get your views on where you think the republican field will play out to. a capitalist confederate flag we haven't really talked about

the tragedy in charleston and the confederate flag debate. a number of republicans coming out and talking about this for the first time really after mitt romney yesterday said take the flag down others really wouldn't go there. so i wanted to ask sarah, where you think they will go? >> well i have a feel income politics they will be forced to go there and probably more of them than not will be calling to remove it. because it's such an emotionally charged debate understandably so given what happened in charlton, this issue was largely settled in 2000. an emotional debate they took the flack off the capital and moved it to the grounds. in these emotionally charged times, they're not going to have you reason debate about there again. >> we thought ted cruz came out yesterday, he said look i'm

not going to jump into it. there are other republicans who made the same argument. >> well i think that's a mistake on substantive ground and as sarah was suggesting i think on political ground as well. much more importantly, substantively, this is no more no less than a symbol of deep racism and a blemish on our history. i thought mitt romney's statement was wrong and i commend him for it. it certainly doesn't belong there. >> it's politically popular to take those positions, many people from the south do not understand southern culture, surgeon history. i think it's important to point out when we are having this discussion not everybody who supports having aing that fly over confederate for a memorial or a cemetery is a racist. i think sometimes we have this

debate, that gets lost on people. >> that certainly wasn't my implication. >> i'm not saying it was. i. >> i must say i don't certainly have that cultural kind of connection you are suggesting. i suspect many if not most americans don't. i'm telling you from the perspective of both people, by the way, i include mitt romney that is a symbol that no longer ought to be where it is. >> jared, i want to ask you separately. we talk about how the field is shaping you. you talk about jeb. we read from this "wall street journal" poll saying the numbers were going up. you said you thought he was stumbling more than you thought. what do you mean by that? >> well, you know the classic answer to that question would be his response to the question would he go into iraq the way his brother did. that was a major fumble. i thought anybody in his

position would have been ultraprepared for that question. he didn't seem nearly as sharp coming out of the box. by the way, i think this is something you sigh from politicians on both sides of the aisle. you think ms. clinton would be prepared with some issues i think partly it's early in the season but the kind of jeb as the automatic front runner that idea i think has faded. it may be coming back with the polling you talked about. >> is donald trump good is this good or bad for the party? >> he does not have the chance to be a gop nominee. even it's not a good thing is because of the way he cheapens the discourse of the debate. he calls his opponents idiots crocks, liars. you know this is language that

just isn't appropriate. the republican party has an embarrassment of richs in candidates this cycle. very strong candidates. none of them are idiots. none of them will be losers. >> there you have it. sarah, thank you we appreciate it too. when we come back we will talk about optimism over a debt field boosting world markets. we have senator heidi hicamp and conoco philips chief, a big special hour coming up on "squawk box" when we return.

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the markets are in a rally mode a surge in american

futures. we are live from athens with the latest. deal or no deal. insurance giants rung around looking for dance partners. need a new car? phil lebeau will tell us what is fueling the buying frenzy. the second hour of "squawk box" starts right now. >> live from the beating heart of business new york city. this is "squawk box." >> welcome back here to "squawk box." along with becky quick and brian sullivan, joe has well deserved vacation. he will be talking about it for montht montht. we have assembled a special energy at this hour.

senator heidi heitkamf is joining us. we will kick off that discussion in just a few moments. first, brine has more on this global rally. >> thank you very much. good morning everybody, your top story china is closed today for a holiday. the prospects are sending every major market higher. they are offer u offering a proposal. to head to the commission the ecp and imf today. michelle cabrera is on the ground in athens coming up in a minute. let us check out the rally and see the numbers we are seeing in europe. we got germany and france. the greek composite. the athens index, there is your big gainer up 6.3%.

this is trickling over to our markets. futures up more than 100 point right now. let's check out the currency mark, this kind of deal if it happens can have implicates too. the euro has weakened dramatically over the dollar the last year-and-a-half or so. >> it's probably worth pointing out, we are offered highs for all of the stock advances. at one point we saw the dow futures up the markets in greece was up by more than 8% t. germany market was up more than 3%. there have been headlines out from the eu finance minister suggesting things aren't as far along as we initially thought. there was a german chancellor saying the finished finance minister saying we've wasted a lot of air miles today. there are probably a lot of moving parts on this. >> let's also not forget the dow has doubled since the greek

began. if you are waiting for greece for six years. >> you have been missing out. >> you recovered, obviously, lost a lot. there are a lot of other reasons, but this greek issue has been going on a long time when we say deal it's moving -- >> the headlines. >> they're calendar deals. i'll trade you easter for march. world markets ral lig on optimism about a greek deal. here to separate fact from fiction is our own correspondent michelle caruso-cabrera. what do you think? >> reporter: becky, you highlighted what happened in the last 15 minutes. an hour ago i said thus far, all signs are positive. there were positive comments from people out of the european commission. i said very specifically after the new greek proposals were

submitted late last night, early this morning, so far we have not heard the germans or the finns come out and dismiss them out of hand. i spoke too soon. the brirk british prime minister said we wested a lot of air miles today we won't get a deal today t. german prime minister saying there can't be a deal without proposals on the table suggesting that we're not there yet. the ecb didder, tend liquidity this morning. a member of the governing council said specifically and this is incredibly frank talk from central bankers. we gave them money one more day. we will review it again, the growing banks are living day-by-day. what is astounding to me is there is any money left the people are talking whether they will be opened day after day after day. yet we don't see that cat chris

minimum run to get the money out. i will say this the marks are still up based on the optimism perhaps they will november the ball 5 yards today to get them to another meeting on thursday. maybe they get an agreement in principle and they start working out the technical details, which is what needs to be put on the table at some point because they got to figure out we have all these agreements in principle. it will be a long day, guy, thanks, to you. >> we will get more as this drama continues to unfold. the director of global macro at fidelity investments, are you supposed to buy the rumor, sell the news meaning the mark will be up today? at least this morning it looks like it will be. i don't know where you want to be at the end of the week if in fact we ever get there. >> i think if there is

volatility. i think the germans are down 12% at some point. so people sold the rumor. now they're buying the news essentially. for me it comes down to what it always comes down to. that's, it's systemic. i mean to us as maybe american based investor the reality is that greece in 2011 is not greece today. back then their debt was held by private investors, now, 80% is in the hands of public institution,ed with qe happening in europe it's not as can they just as it is to proofread in portugal. so it is a much more contained than in the past. i think for the typical investor you sort of stick with your plan. this is important. ultimately, i don't think this is systemic. >> we talked about this you

made an incredible point. the implications to the european banks were big, they own so much of the delaware over the last number of years, that debt has been systematically transferred to becky pointed out earlier, the taxpayer of europe. i'm not saying greece doesn't matter him but it is fair to say greece doesn't matter nearly as much as it did five years ago. >> absolutely. in 2010 when it first came about, it was 2010 when we had that first flare-up. >> literally, somebody threw it in the square. >> it blossomed into a full fire. at that point it was truly contagious. it spread wide everywhere. we don't have that there is a lot of good things happening in europe with the economy, eastern in italy, there are some good stories there. i think europe will be able to

withstand this. it will be the debt ceiling, can kicking, 11ing hour deals. >> if the u.s. markets move up today, i imagine they will justified or not? given you think dproes is so detached from what we are doing. >> if you look at the last few months s&p has gone sideways the dash has gone down. we have been on a holding pattern for a number of reasons, now the mark has a relief rally. now would i boy today because the markets up. i take a longer term view on that. but the s&p has recoil. it doesn't surprise me the market will rally and continue to rally. >> thank you for coming in this morning. appreciate it. great tie be i the way, the summer tie. >> merger offers are flying. bertha coolmbs joins us.

>> a big one is a potential anthem cigna tie-up which is generating a lot of bad blood. no surprise ceos would wrangle over control of equals. you don't see dirty laundry aired in the open. after making four unsuccessful bids for its rival cigna, anthem made all the details public this weekend. the final offer was $184 a share, more than two-thirds in cash. anthem ceo joseph swedish in a letter to cigna's board, chastised directors for rejecting a deal last thursday that met cigna's demand for $180 a share and greater control. the offer included six cigna board seats of the combined company, though president and coo position for cigna for two years at which point 63-year-old swedish would step down and serve as chairman. they said cigna wanted a guarantee he would become ceo

one year after the deal closed. cigna released a 49-year-old and the chairman's letter that was scathing, fighting back you're insis tans that one person assumed rules ceo president and head of the imdprags is disconcerting and risky. but with games on the table nearly 7% will feel the same way. the analysts over there said she spoke with cigna and they seem to indicate that this is surmountable. it could be a price. the kiple effects with possibly a deal. >> the other thing a grenade to throw in the middle of this, if

you want to pursue a dell. >> right. >> i mean the issue is that anthem is the largest blue cross blue child operator. in some of the places they come up with the blue california is the largest managed. on medicaid, and texas as well. so those are some potential issues the blues might complain but at this point everyone thinks this deal will get done. >> for a couple extra buck they'll all be friends, ridiculous. a battle keeping u.s. oil companies from exporting their crude. it's become a crusade. they will bring their case to our set right after this. inting. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing

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welcome back to "squawk box," everyone, we have been watching the futures. check this out. right now the dow futures are indicated higher. s&p futures up by 12. the nasdaq is up by 32. this is on hope hope that there might be a greek deal that near based on some additional offerings. it was a great news the dow futures are up 150 points. the german finance minister

we'll see how things work out for the do you. >> introducing two bills trying to lift a 40-year band on exporting crude oil. this morning, continental resource ceo haroldham is out with an offense saying if america will allow it to export oil with iran why can't we do it at home? a good question. >> the good senator from north carolina and harold hamm chairman and ceo, they are the largest oil producers up in north dakota. we appreciate this. mr. hamm welcome to the program. why come out with this export. it's a 28 year low. why the time? >> this is the first time we ever need to export.

we have noted that do over before. with the oil renaissance that's come about here in america, we v have the and there is a huge mismatch of production today, former producer lifetime oil doesn't fit into the refining complex with this. >> this is a point. you hear this all the time. contradiction of it will say, why should we export oil? we are importing a couple barrels already, it's stupid to export. we can use it for ours you are getting into what we are importing is a different kind of oil the foreign oil companies have used to invest in refineries here. they've basically recruited their own chain. >> that came in here in the u.s. it looks like we ran out of oil. refineries are cheap. they brought their supply from

venezuela, mexico, canada. they're heavy in crude into this country. today we're two-thirds refining a complex for those heavy sour crude. the 18 million barrels a day refining we only had 6 million barrels. >> the bottom line for our viewers and listeners, a lot wouldn't work in these refineries. >> you could retrofit the refineries. >> if you had ten years to do it you could do that crime. >> we don't have that time. it takes a long time to retrofit and a whole lot of refineries. the big news is we are exporting the have been thing consumers use to refine products. there is no limitations on refinery. >> there has been an argument made if we export at least in

the short term if not the long term, we raise the price of oil in this country on our own people. >> i don't know, andrew in what world increasing the global supply will raise the price t. more supply we get into the marketplacely is into europe the lower the international price will be, the more we will make that equivocation between west texas and the brent price and the interesting thing, harold just talked about how we allow the export of refine product, in fact we are the number one country. if this is about price control, about controlling the consumer price, why would we allow the product the consumeers use to get exported. what we're trying to do is do what the economists tell us do the right economic thing. let this commodity find its market. we increase global supply. we will reduce prices in this country because the price that our refiners are pricing their

refine product on is the international global price, not west texas. we got a real problem for consumers. that's been one of the biggest lists in doing bills like lisa's and mine. this is not a new issue. this is being driven by fundamental fairness of a commodity being able to be exported and reach its price. it's about balance of trade and soft power. this is about policy t. policy banning exports is wrong on so many levels. we can talk all day about it. >> i understand every one of the arguments you made. they're logical arguments. then you hear from a charlie munger who says we shouldn't transport oil. it's different than any other commodity. if you look at energy security, we will be the only ones left of it. >> that's an argument for the 70s. not only that it's an argument that we were confronting when we didn't think we had this massive

reserve of oil and i think we need that in our thinking. >> what's weird about the munger argument though berkshire hathaway they own bsf. it's the biggest railroad in north dakota. i have been to williston a number of times, senator. you can't get the oil out. if you pump let's say they overcome this export ban and all of a sudden we start pumping a bunch more oil again, how are you going to get it out of there? you can't build a pipeline t. irelands are full. >> i think we have proven we can move the oil if we pacific, can find a market. the question is we are moving the oil we are producing, albeit we thought we would be closer to 2 million barrels, we have peaked and are going down in terms of our problems. this export ban has actually had the opposite relate. >> the export ban, i don't know that's responsible as much as oil prices have come down

drastically the price itself has been what killed the job. >> that's true across the world. it's much trueer in places like north dakota. >> it's more expensive to get oil out of the ground here. for a lot of people it doesn't make a lot of sense there the expense has flattened. i think it's transportation plus. the more we build odd infrastructure. who will invest if you don't have a market for your product. this is sort cited in terms of our energy security. >> what do we need to do to change our refineries here that can refine your stuff? >> well it's not going to happen quickly. first of all, 28% have an ownership of refineries by foreign government to foreign countries. they own 28%. we can't stop them f. they want to import it, they can do that. we are down to practical limit of imports.

so we need to take it somewhere else. why would they do that? right now they make a lot of money. they're getting their product from canada and mexico and venezuela and here why would they do that? there is no incentive for them to do that. they're not going to do it. the last guy tried to build a refinery, he give up after seven years of permitting. >> let's talk about the price of oil. you look at it senator, it's a boon town it's almost like the wild west in certain way, i mean that complimentary. it's unbelievable. the best anecdote is my hotel was prand new but on a dirt road t. private operators can work faster than the government. is there a perfect price? if it's too expensive, it shuts off demand consumers shut off production, you have to lay off a lot of people and oil has created millions of jobs over

the last ten years? >> a lot of people get concerned, but price is adjusted according to supply t. best way to bring the price down is through supply and here you don't want to pri price down do you? >> we do want to bring price down. that's why it's lower in the u.s., this most defining aspect on this planet. that's what brought the price down. >> what i would say is if you restrict the market you are going to distort the market so if we expect supply/demand, 101 economics to work you can't restrict the market. that's what we are talking about. >> how much support do have you? >> you'd be surprised. i think, always tell the guy, we come in, there is one level. yeah, i get it. we have a lot of support, yeah,ly do something about it is the next piece. we're working people to that

end. you realize we need to get a good bipartisan bill. i think the administration understands from the state department energy and really to the president in the white house this is a policy that's failing. >> harold, before you go you want to comment on the williams bid? you got to ask them. are you friends with kelsey? i don't know if you know him. >> i know him. i don't have a comment. i'm not up on all specifics of it. it sounds like big deal. >> 48 billion was turned down reportedly. there you go. >> harold thank you very much. the senator is with us coming up next hour we will continue our summit with john hess and why lance ceo conoco philips both will join us on set. >> then when we return taking

swift action. when this pop star calls you out, or writes a song about you, what they did about it. "squawk box" returns in just a moment.

welcome back to "squawk box" this morning. it looks like there may be bad blood between taylor swift and apple. apple may have just blinked. swift sounding offer on apple for not paying a trial period for apple's music service. taylor took to tumbler with a letter posted to apple love taylor. she called apple's policy quote shocking, disappointing and completely unlike this historically progressive company. but they might have been more progressive than she gave them credit for. apple got the message, in less than 24 hours did a 180. saying the company will now pay royalties during that pretrial. so maybe they won't ever tail get back together. i will say, by the way, taylor swift then tweeting out her own note thanking them. >> so all is good? >> all is good that ends well. >> except they are making the

play on streaming services. >> a lot of the artists will make a lot of money. >> don't mess with the girl. because. when we come back we will return to our energy summit. ceos on set next hour. what is turning sales? better financing? find out next on "squawk box."

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it isp:32 in the east. 4:32 in the east if you are awake in california. sig cigna rejecting a deal over the weekend, this comes in the midst of a flurry of takeover in the health insurance industry vying for humana. did you catch on that? more on it later. also, fresh data on the housing industry later on this morning existing home sales due out at

10:00 a.m. eastern. they are expected to show a rise of 4%. an advertising conference. maybe joe will be there. >> maybe. we have been talking about auto sales here in the united states they have been red ought this year if you think it's through the subprime lending, phil lebeau joins us with more on that story. good morning. >> we have folks at equifax, we asked them to pull the most recent data year-to-date. it's for the first quarter, anything recent is partial data. what they found is when you look at all the financing and the increase in auto sales new and used in the united states it's not due to a subprime loan bubble. in fact, if you take a look at subprime loans in the first quarter, 1.95 million were written, that's 23.9% after all auto loans, oh by the way,

that's only up .7% compared to the first quarter of last year. it is 34% of the financing increase we have seen year over year. in the subprime market the average new loan taken out for somebody who's got a credit score of 620 or lower, the average used loan just over $15,000. here's the key point. the delivering whency rate is actually falling. now down to 3.3% of all subprime loans. by the way, june auto sales, we did an early check with dealers. they are seeing strong sales continuing from what we saw at the end of may. the sales rate is expected to top 17 million. if you look at autonation and group one keep this in perspective. at the current pace where we are right now. we are within 130,000 if this pace continues for the rest of the year 130,000 o. best year ever for auto sales in the united states. we'll get those numbers next

week. guys we get this all the time from people saying it's subprime that is not the case. that's why we put this data together from equifax. it is clear the data shows that. >> phil they sound like that when they say it. even on twitter and stuff like that they sound exactly like that. you are right. >> car prices are the highest they have ever been. clearly, the american consumer is suffering. i apologize, not really. >> phil thank you, great to see you, coming up the oil industry battles spoiling energy giants are turning to congress to look to overturn a law they say is a relic of our time t. ceos of hess and conoco philips will join us to make their case. take a look at where crude

prices are this morning. you have crude at $59.99. "squawk box" returns with that conversation in just a moment. n you hold on? ♪ hold on for one more day ♪ really? hey, i know there's pain. why do you lock yourself up in these chains? ♪ ♪ this would be so easy if you had progressive. our mobile app would let you file a claim and help you find one of our service centers where we manage the entire repair process. things will go your way if you hold on. [ sighs ] someday somebody's gonna make you wanna turn around and say goodbye. ♪ say goodbye ♪ no, you just made it weird. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

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you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. back now to our "squawk" energy sum t. question for so

many oil producers is how can we get the nation's oil out to the marketplace. ryan lance is the chairman and ceo of conoco philips. they are joining us both now. both made their case to the obama administration. senator heidi heikamf has a bill of her own. >> we went over it with harold ham. are you the number three producer you think it's important. >> it's great to be back. at a time when the u.s. is considering removing sanctions on iranian and crude oil exports, we should remove the 40-year-old sanctions, our oil is literally trapped here because of the ban. inventories have gone from 350 million barrels to 470 million

barrels. as a consequence, it gets less than we can get if we sold on the open marketplace. >> you say that's because of a lack of refining? >> on top of it. >> we export refined products though. >> we export 3.5 million barrels a day. gasoline and heating oil. why don't we export the crude? it makes no sense. i don't know any other industry that treats crude this way. will you make more energy security a. lot of third party studies have shown gasoline prices will go down. it's a big impact on the economy shale. 2 million jobs have been created because of shale and on top of it we invest as an industry in shale $100 billion a year. almost 10% of the capital investment a year. so we're the largest producer of oil and natural gas liquids.

it's time we start leading like one. >> ryan i know this has been an issue your industry has been pushing for some time do you think this is a moment when they might get done? >> i think the senate side represented the burton on the house side there are issues building, the economics, the reality today it's a resource abundant world today. we have to excite on a global scale a. lot of our investment is coming here to the u.s. it is a competitive world out there. we want the seller of crude on the global market like everybody else, because it will help here in the u.s. >> we talked about how you have people lining up in the senate saying yes, we understand why. they're maybe not to the point of saying we will go along with something. >> this is a politically

sensitive issue. a lot of people don't want to see more oil drilled. >> they'll come up with a whole lot of excuses, but they fundamentally do not want any more production of fossil fuels so we have to combat that. ly tell you frequently in the senate people don't make decisions until they absolutely have to. since the people hasn't been on the floor, we've advanced this twice. the second has been on the defense authorization and we didn't get a vote on either one of those amendments. it's had opportunity to continue to advance the bill. i think we have enough people that understand the economics of this if they vote up straight up economic we win. >> you pointed out these have been riders in the past. >> i don't think so. i think it's new. it's not like gse reform. it's not like tax reform that happen year after year where people kind of build opinion.

this is a fairly new issue. last congress we said this isn't going to have an impact on consumer prices now we have to continue the next step everybody that is bali hooing this should understand that restricting the export will stop the investment and will curtail ourself sufficiency. >> have you ever head a conversation with this since it could be solved with executive order? >> i have had a conversation? these are conversations i frequently don't comment on. but you know i will tell you he understands. he's in that category of understanding. i think his state department understands how significant and the energy department understands. >> he doesn't want to sign it. >> everybody wants kumbaya and

say we will make a bipartisan decision to do this. so, obviously, i can't speak for the administration, but i will tell you at the highest level they understand that this policy -- >> john if we don't export will the price of oil go down? we seem to be in a situation where you producers can't stop producing, weekly production is on a 40-year high. >> a year ago, u.s. shale production was increasing 100,000 barrels a day per month. right now it's zero barrels per day per month. you are looking at a lag number. when you look forward, some say our production could be down by december of this year. >> 9.4 million barrels a day. >> i don't know if that's an act rat prediction if you talk to exxon mobile they say they're doing this oil prices are down. the reason you cut back on capital expenditures was not

because of the export of oil you knew was banned but because in the industry. >> i think the point we would make is the opposite point that if you can sell in u.s. crude at a global price and eliminate that artificial differential that exists for crude, it will increase the cash flow reinvestment will go back into the business which will drive more production down the roodad. >> i cross the industry investment for finding oil and gas has gone from $700 billion. >> shale is more expensive. >> shale costs actually have come down quite bit. harolds, we have been able to take the costs of drilling bach bakken oil to less than 7 million. >> yes, but the land comfort versus gone up.

>> actually that's not right. >> it is right. i have been there. i talk to the guys preaching this stuff. >> that's before oil price went down. there is a correlation in land price. >> you are talking about over a price over the last ten years. >> i'm looking forward and the impact of this ban it's crippling versus the rest of the world. the real point here is we want to be able put shale on because shale has been disproportionately impacted. >> the decline is fairly cheap. as you see production the other point is commercial land values have come down dramatically since the oil price versus gone down. >> it could have gone to 1.2,000

to 1.2 million barrels a day from a decade. >> a lot of the high inflation value needed to be perfected, so there was a rush to drill now we're at a position where it can be stabilized over the big term. >> i was at opec and the message is it's hear to stay t. coronary of these unconventionals will compete with some of the best resource around the world. unconventional is not going away. >> how did that message go over? >> well it was interesting,ives there three years ago to tell them about the revolution. i said something provocative, the u.s. would surpass them in

ten years. i got laughed off the stage. i was invited back to tell them it is going, you are not knocking it down it's here to stay. taking the costs out of the cost supply as a result of the lower prices made it more effective and efficient. >> that will continue. >> what's the reaction you got back or heard off the stage? that has been a huge frustration? >> they recognize they missed it and weren't prepared to deal with the extra production. now i think to harold's point and john's point earlier this export ban, this restriction on getting u.s. crude into the global marketplace is the next big thing they don't understand but we have to get it out there to increase the investment. >> john until the beginning of this year texas accounted for 23% of all u.s. job creation over five years. it's only 9% of the u.s. population. i have been in north dakota. if you can drive truck, you are

making $150,000 a year. it's a heck of an economic boom people say the decline is a net negative. yes, consumers save money and gas prices i get that. you know what they do? to drive more. they paid off credit card debt. so we've seen hundreds of thousands of jobs wiped out. will we see more jobs lost at $60 a barrel oil or is this a stable price? you won't increase production but not you but the industry won't lay off tens of thousands more more. >> u.s. rigs have been cut in half from 1,900 rigs rung in the country to 6.75 today. it's more than 50%. there are a lot of job losses it's not going to come back so

quickly. there is a concern as we lock forward. even though oil prices is down it's hitting the u.s. industry more that $5 to $15 differential will go up. the world price for brent will go a long way if it's in u.s. producer's pockets. >> that itself the biggest argument. it's about our economy. >> because these are middle class jobs you can find without necessarily having a four-year degree or beyond that. >> midland, texas, that is highest per capita per zip code. midland is the williston of the permian basically. >> you all talk about the gdp and the impact of shale. >> we have to ask, do you have a view on that particular deal and what it means? >> a turned down deal. >> but what is an offer for

williams? what it means for the industry. a lot of analysts are speculating that will be consolidation in the space if you will. >> the transportation business master limited partnerships is almost a $700 billion market. it's huge. it's an engine in the economy. this is just a sign that is a vibrant engine. i will not comment on the companies, themselves. >> the only thing i would say is there has been talk around synergiess and putting the companies towing in our business today, i think we will see some of that over the course of the next two years. >> they got to be talking about these deals every morning? >> there will be some rolling out. >> are the synergies real? >> i believe they are. >> i love your point about wti and brent. a huge important point. gentleman, thank you for being here. when we come back we will talk more about stocks to watch and greece and eurozone

officials down to a wire on a deem. markets surginging on hopes that an agreement can be reached t. dax up by about 3%. the gak up 2.8%. right here in america the futureing are up 2,100 points. s&p futures up by 13. we will hear from brian belski in the next hour, a market strategist. a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation.

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>> all right.

welcome back. williams companies rejecting an unsolicited $48 billion buyout from an unnamed company. >> that is open to other offers reports say it's equity. you don't need a source. the source is the company. >> you need two things badges and sources, bad words. we need badgers, by the way. fiat-chrysler shares are ruling. they have been pushing hard with a merger with gm. they look stronger maybe that's it. fitbit poised to keep its perfect rally and jumping in premarket trading.

noodles, they ask for the president and chief operating officer, this may be one of the worst if not the worst i don't have the exact date in front of me. a final thought from senator heidi heikamf. you think there is an impact on international relations as well? >> absolutely few listen to people like tony blair, they tell us the one ting we request do is give it to our allie, knowing there is a supply of crude oil, compete against russian crude, compete against iranian crude, that's a piece, it's our economic strength said of looking at boots on the ground. i think energy exports are a big part of that, including natural

gas exports. >> senator we want to thank you very much for joining us today. it's been a pleasure. >> thank you, it's always great. >> in august we can promise you 80 degrees. >> thank you senator, coming up brian belski of bmo capital markets. he says forget the fear mongers, if we get a correction this bull market has a lot of room to run. stay tuned for that and a lot more when we come back. 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.

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. greece taking center stage. news of a potential compromise. the latest on a possible deal and what it means for your money straight ahead. >> rejected cigna says no thank you no anthem ahead of a ruling on obamacare a. check on the names to watch minutes away afternoon. a farm and a warehouse, we will introduce you to farming. the final hour of "squawk box" begins right now. >> live from the most powerful city in new york. new york.

this is "squawk box." >> welcome back to "squawk box," first in business world wide joe is taking well deserved time off. he's in europe this week. we are less than 90 minutes away. the futures look like they are stunning. the do you up triple digits. s&p futures up by 12-and-a-half points the nasdaq is up by 33. in europe at this hour this is where everything began. the idea that greece seemed to be blinking a little bit has helped markets "across the board" there. greece index up 6.4% t.dax is up and the footsie is up by 1%. sign osf a last minute deal in greece with the investor optimism around the globe, though there are plenty of doubt and cnbc chief

correspondent michelle ka are you a-cab sombrero. -- michelle caruso-cab sombrero. >> reporter: depending on how you want to describe it the early comments out of members of the european movement are fairly positive we heard from the germans and the finns, they are quite negative still. int meantime the greek banks live day-by-day hoping the ecb continues to extend liquidity to them joining us st. head of the greek chamber of commerce. you have been a guest on cnbc since the crisis. how bad is it for business right now? >> extremely bad t. market is

stagnant. during the last three weeks we lad the banking institutions literally backed as a result of the cash draul withdrawals that have been taking place. so we need an agreement tonight. >> what happens if the banks have to close? >> if we don't get an agreement by the 30th of the month, which signifies the end of the program. we will have to have capital controls. it's catastrophic for the economy, for the market. >> has it ever been this bad? >> it's never been this bad. the last five.5 years, we have been pointing out how bad it has been for the business community. we pointed out the mixture of economic policy applied was the wrong type of economic policy. however, it has never been as bad as it is now. >> what's the next step here do you think? >> i'm sure that as the tip realizes what will happen to the

country if he doesn't come back with a solution. i'm not saying the swlugs is what the economy needs. it will keep us standing up. it's the worst that we faced since the second world war. so the current government needs to take care of this situation. >> here's the thing, a large population, doesn't like are we back to violence in the streets? >> i'm on optimist,fall following five.5 years of austerity, anything is possible. >> reporter: the situation is dire, folks, we will see what if anything they can kick the meeting down the road the key data is june 30th. >> that in theory is the day the ecp would have to cut off the banks. back to you. >> i saw some headlines over the weekend, where some greek

officials suggested they would fought be paying back the imf on the 30th. is that a part of the noise that's taking place? >> what they said if there is no agreement, they will not pay back the imf. i think everybody should believe them at that point. it's been called in default to the imf. you go into arears that being said, they used the word default to make clear it will not be welcome. it could be consequential when it comes to the ecb if they don't act before that. every single day now we see whether the ecb decides if they will extends enough liquidity and cash so that people can keep withdrawing their money. >> have you seen lines at the bank? did that change today? >> no it's continuous and steady lines at the atms. almost constant.

no lines at this point. frankly, many people were astounded. because when you see repeatedly in the press, members of the european central bank saying it's possible the banks won't open and people don't go withdraw that last dime to use an american term it's surprising. many people here are quite surprised at how calm the greek prepublic is. more than a billion coming out per day when it comes to cash withdrawals. >> thank you again. we have been watching the futures as we have been showing you trading higher on hopes there ab a last minute deal reached. joining us is bmo capital markets brian belski brian, this is the greek situation not risen to the forefront for most american investors, at least not recently. i wonder what you think about at this point and how concerned you are? >> wel, we spend spent the whole

week seeing european clients are that the clients made a lot of money in the trades so far this year. what that means for u.s. investors in general is we have seen a bit of an exodus with allocations out of america and into other areas like europe and like japan and so i think that sends a mixed messaging and people with respect to their 401 k. you remember it has been the end of trade and people have had in 2015 some success again, so all of a sudden they're starting to nibble on your heels probably at the wrong time. so there were general fears in what happened in europe. at the end of the day, we continued to tell our investors

longer term the stability trade remains in earthquake many. few want to have an active sale strategy becky, you like to play moment item. europe is there for you. really the stability and consistencies trade remains america. >> why do you think this would be the exact time because of what happened with greece could impocket the economy there or those stock versus run and people figured out that will be the place to be? >> those stocks have run. we said we would not be surprised if europe outperformed the u.s. this year prince ply because everyone had to figure it out. meaning, follow qe. at the end of the day, we really fear that european companies aren't at the fundamental condition right now that u.s. companies were in 2009-2010. what i mean by that is investorstime seem to be following this template well, we will buy europe. we expect the same type of

returns we saw in '09, 2011 in america. we think that's a little bit too foolish. especially considering that you know american companies are diversified, remember, the number one trade partner with asia asia continues to be much more volatile. we had a much more european run this notion with the european banks and the greek debt it causes too much volatility given the type of multiple expansion we seen in europe year-to-date. >> when you say you think the safety trade or the better trade to be in right now if you are concerned about volatility with the united states, are you talking about the major averages overall? >> we think we've entered into a period of active investing. we think we are headed into the peter lynch, warren buffet type

of atmosphere where you want to buy stock, you want to own those stocks you believe in. names you can reach out, tuft trust. brand name companies that will benefit from the u.s. domestic recovery. also as the rest of the world becomes an remains volatile you want to own those types of names that will benefit from that so what we have seen so far is active investment is beginning to outperform. the volatility of stock prices has risen. you seen the great biotechs have done and you started to see a delineation with respect to what's happening in financials and industrials an technology so this has become a stock peckers mark. there will be some that get hurt. the market totality we think can continue to plot along as investors realize, hey, there is other more volatile areas in the world. stocks remain in the america we think the most stable asset class considering what will

happen with the thick income market over the next few years. yields set higher there will be more volatility there. >> brian, thanks a lot. good to see you. a couple stories investors will be talking about today. apple now says it will pay royaltys to artists during the pretrial period taylor swift criticized a plan. eddie q coming out boldly saying he read it. he changed his mind. so rare you see corporate executives. facebook in the spotlight today. it will be unveiling a new mobile ad format in france economists are looking at a 4.2 existing home sales that number is reported in a little less than two hours from now. coming up next health insurance stocks are front and center. there is a lot of talk about

mergers, all while these companies await a supreme court ruling on obamacare. later on it was another monster weekend. jurassic world topping the weekend box office when "squawk box" returns. sk if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.

welcome back to "squawk box." health insurance giants have been hit with merger fever the latest of which is anthem's billion dollar bid for cigna. joining us to talk more about what all this consolidation can mean for the consumer the senior health care analyst at morningstar, good morning to you. >> good morning, how are you? >> very good thank you confused if you will about what all these deals mean whether any will actually happen t. front page of the "wall street journal" this morning had a big story on this sort of merger mania. it says not good will any of these deals actually be approved by regulators? >> i believe. so i believe on a total basis, the deal will get passed the regulation reg whattory hurdles. however, you may see some cases

in certain regions or states where the government made push backs, you may see insurance agents from certain regions in the u.s. overall, the deals spoken about they should get approved ultimately by the federal government. >> there is a number of deals, let's clarify which puns you mean so many on the table right now. first let's do anthem and cigna for a moment. sick na by the way rejecting that $47 billion transaction saying there are anti-trust issues clearly, there is an issue of the leadership of that combined company, also taking some shots at anthem security. right. >> well you know there is a lot of political back and forth here. there will always be wrangling with any deem. this is the most or highest profile at least right now. however at morningstar, we have been saying for years now, that

the insurers need to get beth bigger. given the players, there is great regulation obviously, there is also more competition because of the private exchanges or public exchanges and there is the apples to apples comparisons consumers have these companies need to get bigger overall. >> you say they need to get bigger because it will improve the case for the customer or they need to get bigger because it will improve the profit margin or could it possibly be both? >> well i'm not an equity analyst. i am looking at return on capital from my perspective the more diversified it will be the more it will be better at the end of the day. >> the things that have happened to these insurance companies, everyone is predicting doom a couple years ago.

can we throw out a five-year chart is the kicker guys for our viewers? these stocks sig florida is up 70. 7-0 percent in 12 months. they're all way up. what is the driving as far as? forget about the deals, something is pushing these guys to triple and quadruple over five years. >> well there has been a lot of m na talk over the last several years, a couple at least for these first. and what we've seen here is there was some certainty in the investment community about the returns on for these that there is a profitability, given again the aca and what that means for insurance in the u.s. what we have seen is good underwriting by these players, good execution over the past year at least. lowered health costs. utilization hasn't been as high overall, the profits have looked a lot better. at least over the past year of what they reported. however i expect over the next

couple years, well into the future to see some pressure here on the profit/margin line. adidn't they have their cap as far as what they can earn on a gross profitability level. there is greater competition. you have to get bigger more efficient in order to price better and to have good costs leverage overall. >> so they've done well, obviously, under obamacare. king versus burwell, the supreme court decision could come down today. is there an outcome? which would be necessarily better or necessarily worse for the health insurance? >> the best outcome would be nothing to happen. the public exchanges provide growth opportunity for all these players, not just the big five we are talking about today, also for the regional players. there are some head winds here, if they ultimately win, that means there will be a lot of hiccups in terms of subsidies

for certain exchanges in certain states which could hinder groth for these mcos or managed care companies. so ultimately the best outcome for them is for nothing really to happen. >> real quick. you talked about a lot of consolidation taking place. do you go from a big five to a big three, we haven't talked about the other names, you know there has been rumors about united health wanting aetna, that would be a passive transaction between aetna and humana more likely? does cigna try to jump into that? does anthem -- how do you see it play out? >> well i think the only player is united health care united health group. the other four you probably will see some deals here happen i won't be surprised to see a deal between cigna and aetna and the other three. ultimately, i believe the key

targets will be will you mania, aetna and cigna as being smaller players in the industry and needing to become bigger themself aetna is sizable. i think they're pretty much the driver of what they want to do from an m na perspective. they have the cash the capital. so the other three look like they may need to make a deal here at some point. you probably will see anthem buy cigna, aetna or humana and then the other two that are remaining there the other two smaller ones will probably american at some point. >> sounds like a jump off for now. thank you for joining us. appreciate it. >> no problem, thank you. when we return this morning, platinum portfolio manager jim o'shaughnessy. plus, oil prices nudging higher this morning. we will talk to john killbuck all about i. up next could we be in the mix of a grand slam

run? jordan spieth is 2 for 2 when it comes to the majors, his story is next. .

well sit-com back to "squawk box" this morning. an amazing merchandise air rescue caught on tape. two members of the red devils display team had a narrow escape friday from hundreds of spectators. one was caught in midair by

another team member when the parachute failed to open properly him spectators posted dramatic photos with a fully opened parachute around the ropes of his teammate's averagele parachute below. there was no panic. they just used their training. >> that guy is good. >> really good. >> we so called u should all say, master's c'mon jordan spieth, the nerve jangleing win at the u.s. open. dustin johnson blue his chance by 3 putting his last hole. spieth is the latest player to hoist the u.s. open trophy in the same year. he joins tiger woods, jack nicklaus ben who gunn and craig woods, the british open is next. when we return the marks will have a strong open to the week. "squawk" platinum portfolio member jim o'shaughnessy talking dividend stocks he says are buys right now. plus a new field is blooming for

investors in the world of agriculture. this is really cool growing crops indoors on stacks. it is called vertical farming. it could transform agra- business. we will show you the latest place, farm guys in the garden state, the beautiful state of new jersey, newark could become the new capital of farming in new jersey. we'll tell you why coming up. you wouldn't take medicine without checking the side effects. hey honey. huh. the good news is my hypertension is gone.

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welcome back to "squawk box," here's what's making headlines at this hour. the european union extankss sanction against russia until the end of january. they are looking into retaliatory measures. a dispute between delta and the southwest would we'll be right back havoc on passengers alt love field, scheduling overlapping flights from the same gate after an agreement between them expired in july or expires in july. delta says dallas is legally obligated to accommodate its

flights. we will see those two. at the game gate. >> southwest by the way is head quartered there. i think i may know who will with inthat one. >> dlen a little of uber news uber is substituting a new policy preventing riders and drivers from carrying guns. they had been defering to local laws on that issue. let's talk about the platinum portfolio, it continues to outbase the s&p 500. up just over 6% this year. joining us is jim o'shaughnessy the ceo of asset management he is ranked 4th. he is up more than 9% this year jim, thanks for goin joining us. >> great to be here. i have to push harder to get the bronze. >> exactly. you are right there. we have been watching what is happening in europe this morning. the average is there substantially on the idea that

some sort of a deal might be reached. it is probably too early to say for certain what will happen. does that give you pause as you look around this summer? >> not really. i think the amount of ink and air time and everything else that we have been spending on greece, which, after all, has a gdp equal to rhode island is maybe disproportionate to what could actually happen. i mean if we were talking about italy, we were talking about spain. that's a very different conversation. >> if you are talking about the first country to potentially access the eurozone and the eu that does change the impact because you do start thinking about spain and italy and the other countries. >> no question this has been a rolling crisis. it's been going on for years, we always hit these stop gap measures suddenly at the final hour, something gets worked out. i think that if you look at some of the hardening attitudes among

the more prominent leaders in europe particularly merkel in germany, they come to the point where they're like okay this is the deal. you are either going to take the deal or are you fought going to take the deem and so we think that, you know this is kind of going to be an ongoing thing and you know we'll see something come out of it. i don't think it would be the worst thing in the world for the greeks to have to go back to the drawing point. it will be bad for the banks. it will be bad for greeks. but you know clearly the discipline to run an economy just doesn't exist. >> you are fought concerned. we should point out, fi, your three picks are companies that are european companies. >> indeed. we wanted to demonstrate to investor it's a whole big world out there and one of the things that we found using rules based,

factor based investment is that it can lead you to places that you might not intuitively want to be. so for example, these picks come out of a high dividend global portfolio. and we pick them primarily because we want to remind investors, you know the united states is not the only game in town and what happened was u.s. dividend stocks got very fully priced. what we like to look for is deep value. in other words these are cheap stocks, with high financial quality, good earnings quality and high dividends. the fact is a lot of the u.s. names that might have originally been in this portfolio got priced out. and so from a global standpoint there is still all sorts of opportunities available to investors. >> stocks you like first off bp? >> we like bp. it has a big yield. it's huge.

it's cheaper than 70% of the stocks in our universe on our value composite. which is a group of various factors, pe enterprise value, et cetera. we find it's a much better way using more than one factor to take a look at it. here you got this company that is very very cheap, very financially strong 5.8% dividend yield. very attractive under the rules based system. >> in my notes it says it has a pe of 44. i don't know if that's the case. >> what's interesting is that's why we used these five factors as opposed to a single factor. what we found is that overall ruling ten-year periods, this value composite which uses five separate factors beats any single factor about 82% of the time. >> it's more like a 17 pe factor? but again you are looking at a lot of different ones.

swiss reed, a european company. >> cheaper than half right, of the companies in our universe. dividend yields of nearly percent. same reason. so when you talk to us at o'shaughnessy management is what you will hear many reasons for stock. we have another portfolio market leader's value. >> that we base our final factor or shareholder yield, dividendfield yield and buy back. u.s. companies obviously use buy backs far more aggressively than european companies do. >> we are out of time. >> again, super cheap. >> same thing, with the same sort of parameters. >> yeah. >> if people want to find out more about it. they can go ahead and check out what you have been doing and written about this. thanks for coming in. >> thanks for having me. >> you can pick our managers in real time and read their exclusive analysis online at

cnbc.com. >> if you watch this segue, let us use the pun, lets us turn our attention to a new type of farming, nobody laughing. >> morgan bren plan the is down on the vertical farm. let us go to you, morgan. >> let us discuss lettuce. we are in newark new jersey. i want you to take a look at this this is baby water cress, it's no sun, no soil using led lighting and a nutrient mix. by the way, it tasting really delicious. there is a research lab of aero farms, it's developing the largest down the street in a former steel mill that has the backing of the states goldman sacks and it's expecting to yield 2 million pounds of levy

greens. it is using vertical farming to grow vegetable, converting urban areas into high-tech grow houses that use everything from climb control to artificial lighting to in some cases hydroponics to four or five times more produce per acre than a traditional piece of farmland. >> on average, we are growing in 16 days what otherwise takes 30 days in the field, using 95% less water, 50% less fertilizers, zero pest citizen, herbal fungicides. >> so it cuts down on spoilage and transportation costs since they are supplying local restaurants and supermarkets, not to mention there is no worry about seed contamination or bad weather t. concept has been around for years but because it's intensive and energy costs have been high until recently

it hasn't been economic ally viable. the first is new less ens expensive technology, for example, specialized led light bulbs as well as shifting tastes, as more consumers are seeking out holy sourced all natural foods. the company is not technically profitable yet. that i are expanding rapidly t. company is looking to develop and have up and running something like two dozen farms over the next five years. guys, back over to you. >> morgan, so how nervous should a traditional farmer be about all this? >> you know that's a great question. i was speaking to the guys here this morning. the thing ability vertical farming, it's right now many of these farms across the country are specializing in things like levy greens and herbs, which you see here. the reason is that's an $8 billion business that you can grow a lot more in a smaller space. the margins tend to be higher. that's where a lot of the focus is there. it's a lot more challenging to

grow plants on vines or the larger vegetables the idea that this will be a supplemental method of farming, particularly in urban areas where consumers are looking for this type of produ. >> say hello to david an old friend of mine. >> i will. david, andrew says hi. we spoke to some of the biggest players in the industry we'll get an oil outlook after the break. stick around, "squawk box" will be right back.

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welcome back to "squawk box," everyone. take a look at the futures. you are still seeing triple digit gains for the dow. s&p futures up by 11-and-a-half t. nasdaq is up by about 30. this is on hope for some sort of a greek settlement deal reached. although the talk has been a little bit difficult when you listen to the german finance minister or the finnish finance minister but something is going to be resolved. brian. >> earlier, we had an energy simt, hess conoco philips an continental resources, here they are for making the case for lifting the 40-year-old crude export ban. >> with the oil renaissance due to drilling we have the resource developed. we should be exporting.

>> how do you export 3.5 million of refined products? gasoline and heating oil? why don't we export the crude? >> it's a resource of abundant world today. we have to compete on a global scale. >> here to talk to us family partner, 1975 a fear of an oil shortage, so we enforced this ban, we may not have enough oil. so when we put this oil embargo in, it made sense. does it make sense now? >> how soon we forget though, brian? i don't know. i have a lot of misgiving of exporting this resource. you have another crop behind it. charlie munger made a great point in saying it's in terms of exporting our top soil. no question about the fracking boom the depolitician rates on these wells is rapid. it doesn't last a long time two or three years they drop off

considerably. i understand why there is not talk of an export tax on these barrels going off short to help fund things and secure our energy future that way. i have a number of kwechls i understand their argue. if i was in their business i'd certainly want this outlet. they are right about our refiners being more well suited against the heavier crudes from mexico in particular. this is a precious resource. they're in such a rush to drain and put on the open market. there is no beating saudi arabia in this game. i herd them talk about a constrained market. we have a cartel in this mampblth it's a not a pure playing playing field, free makes out there. you are up against a lot of folks that can do a lot of damage over the years. >> what about price? has it helped our economy? >> 100% helped our economy.

we were a two-thirds based consumer economy of lower gasoline prices. wti prices historically when i was in the business there was a premium. over the last several years it's been a defensive one. >> there have been a lot of reasons, because we can't export our wti. >> u.s. crude inventories are at an 80-year high. commodity prices are to a degree local. if you have a lot of product, whatever, if it's corn cocoa beans, what have you, at this particular delivery point, that particular delivery point for that contract, wti guy will be lower than other benchmarks if london or dubai, for example. >> what's interesting, because the price of crude is above the barrel the price of oil has collapsed. >> actually the 25 year average price of a barrel of crude inflation adjusted is about 48

to 50 bucks a barrel. so, john historically we are actually above, slightly above the average. >> that's right. >> so the industry is moaning and groaning about this. this is kind of where oil seems to want to be. >> i can remember when $50 oil was considered harsh for the economy as well. so it's all perspective. the rush to you know outlet this crude is something i think we have to be careful about. we're still importing with all this production we're still importing 7 million barrels ability. so we're hardly after our addiction, granted a lot is from mexico and canada so maybe north america is achieving a sort of energy independence or nearing it. but you know this fracking game is one that i think is fraught with a lot of you know questions, still. >> the largest trade partner is canada overall and with oil. it's not like we are getting all of our oil from slim pickings like countries that don't hate

us. >> hardly at all. >> canadians, very nice. we like them i don't know if we like them. >> as far as having a ready market. right now, nigeria is having a hard time telling any oil, there is upwards of 40 cargo. >> ironically, it is technically the highest oil in the world, it's cheapest. it's light. it's delicious. >> much like the frack oil. >> there is the heavy sour stuff from saudi arabia. which by the way we learned two hours ago, built refineries for them. just so they can process their oil or other countries likes venezuela. we are thick and gooy. >> what can we do to change that dynamic on the refineries? >> they have to retool. >> is there something from a policy perspective we should be doing? >> i think in terms of first of all, certainly the exporting of the fine product referenced is gasoline and diesel somewhat

elevated. there is a heavy market. to the extent the producers aren't getting a fair shake zpli think harold hamm addressed. that. >> he said everyone says, if our oil doesn't quote work we are fineries why not just build new refineries? hamm said i knew a guy that tried to build a refinery. he gave up after seven years trying to get the permits. >> along the east coast over the past ten years, we lad a slew of refineries closed. it got to be scary at one point how many were closing before we got that around 2008. there was great fears we would become drily reliant on foreign product. there has been a tremendous product cheaper. our refiners have a decided international advantage because they have a discounted crude oil. they contribute upwards to probably a half a point to gdp

every quarter. particularly when the winter fuel season is in full swing. so it's be careful. we have to be very careful with this particular issue in outletting this crew being so aggressive on it. >> thank you. >> thanks, john. present it. when we return jim cramer getting ready to kick off wall street. we will find out a lot of things out there, there is a lot of news wlachl are the key things check out the futures, indicating a higher open. european marks are up. prospects of maybe, we mean repeal. s&p futures indicating a nice pop. dow should open 100 points higher. we are back right after this. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your

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you might want to keep tabs on the airline stocks today. barren says the shares of the top four air carriers could raise. less competition and secondly lower fuel costs. american delta, united continental and southwest were all mentioned in the article. even if that happens, it might not soothe ns or thes. they're all down about 15 to 20%

this year. >> barrens also talking about america, an analyst saying the drug maker could see shares rise to about $75 on the strength of its new pipeline. the stock is up 1.2% right now. >> let's get down to the new york stock exchange with jim cramer. it's great to see you. >> good morning. how are you? >> great. i'm hoping i can ask you about the lead story from the wall street journal. it takes a look at the potential health care mergers. we know that some of them, already you have v cigna rejecting anthem. u and h going after another. >> for some reason the five into three which is where we look like we're headed, everyone feels that these will be blessed by the government. it's almost as if they all got sort of bulletin saying do not worry about the mergers. i found that article to be so

true, which is that this is literally the ability to be able to make it so these guys can no longer be pitted against each other. everybody knows that's what happens. you bounce cigna against aetna and aetna against anthem but you know what? the inevitability of these is daunting. i just can't believe the government would bless everything. >> i can't either. >> this is how you get denied your drugs. you get these powers, these are the guys who block your drugs? >> given that, how do you play this? >> well frankly, it doesn't matter. these guys are all going to buy each other and i think next is humana. humana should be up. i'm surprised it's only up the a few. to me it's aetna for humana and humana should be higher. i thigh these companies will somehow get this done. i don't know how they're going to get the this it done but i

didn't understand the confidence of the airlines and they got their deals done. it seems to only be telecommunications that has really upset this justice department. >> don't you think post the airlines, it was the airlines that might have been an inflection point and in fact, when looking at cable, that deal was prevented. they might now look at this in a different way than they did before. >> why are all the lawyers blessing it? >> lawyers have blessed other deals before, right? >> well, yeah. it's been a very republican anti-trust department under the democrats, and it just seems like the airlines were actually par for the course because they let all the rental cars nerj. like a look at that bill. it's high because you can't play those guys against each other either. >> thanks jim. >> when we return a big weekend

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. >> "jurassic world" may have been number one by pixar's "inside out" break a number of records. it's got to be the worst, i mean, it was the second place performance but it's got to be the best second place in history. >> it is. "inside out" is the biggest opening weekend ever for an original pixar film for pixar's second only to toy story three. they grossed $91 million and far exceeding expectations. in fact, this film about the five emotions of an 11-year-old girl is the top opening for any original movie which means one not based on a sequel. pixar films tend to hold up well which puts the film on track to make it a mass i it for disney and establishing what could be a new franchise. with disney stock at an all time high, it opens the door to sequels. even if they don't make one,

there's opportunity to exploit the character herbs across theme parks and consumer products and "inside out's" numbers are particularly strong considering how big "jurassic world" was this weekend. the total weekend box office was up 70% from a year ago and year to date, it's up more than 6%. >> great to see you, brian. thank you for being here. it's time for "squawk on the street." >> good monday morning. welcome to "squawk on the street." i'm carl quintanilla here with jim cramer and david faber. a lot of green. that follow through is courtesy of some optimism regarding a greek deal. a