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 lot more m&a activity.

oil remains our road map begins with the markets and growing optimism of a deal for grease.ece. and futures on the rise. >> anthem launches a bear hug for anthem. they're all in play right now it would seem at least in terms of deals. >>. >> and we are getting back together. taylor swift admonishes apple for their streaming deal. or on that in a moment. >> we'll start out with the match making. anthem reiterating their want to buy cigna. cigna rejected the offer yesterday. they have been speaking for quite some time. the latest deal was $184 a share. it continues to be that 69% of it in cash. the remainder in shares of

anthem as well. which could give cigna shareholders significant ownership in the company. social issues key to be the key impediment to any deals. the ceo wants to be the ceo of the combination. anthem says we offered him the number two position. many shareholders may agree with the idea that he would be best suited to run the combined company. they put out numbers that put us at $2 billion in overall synergies that they're talking about. i'm looking through the deck right here. pardon my looking down, for the deal. >> $2 billion? that's the biggest synergy call i've heard. >> they're talking about that by 2018 in terms of their ability to achieve annual synergies approaching $2 billion. and they're talking about as

much as $17 a share in overall earnings for the combination by 2018. we've got so many moving parts here. >> i know. it is so hard to figure out who is buying whom and difficult to figure out the level of confidence that they have that the regulators will bless it. an article in the wall street journal said you get together with these two, it's the, if they all go together, look out. you're not going to get the best drugs. you're going to get the number two and generic and arguments every time you call on any sort of drug. this is what the drug companies fear is that these combinations. >> it also goes onto talk about hospital consolidation and the power of hospital operators to start to be able to push for price increases and, therefore, the ability of an hmo industry to push back. antitrust is one of the keys. it has to be when you have five

players that seem to be going to three. how they get to three is not completely clear at this point. >> then you layer on top of that a decision that we might get today, we might not. it would change the game in terms of how states that rely on the feds don't have exchanges of their own. >> this is the most up in the air, and this is -- the cable companies of health care. every time david talked about the cable company merger, they all made you money. no one seemed to fight it exempt for comcast. remember remember. when i hear 2 billion synergies, i think are you kidding me. >> a lot of people believe anthem could get more if they acquired humana but it appears humana's price tag is going to be high enough that the multiple

it would have had to pay, and humana is a higher growth company, but it did not justify the deal at that point in terms of what they would have gotten them number one in commercial. humana has a pryer growth price but a high e price. you have social issues from both companies. cigna taking issue not just with the ceo and the chairman at anthem but also taking issue with a number of other things at the company including anti-trust brisk risk, and on the company's overall growth rate but what anthem as done by making this bear hug is it may make it more difficult for kig in acigna to make a bid for humana. >> that's why i said aetna is more likely to buy humana. >> the other is u and h. reported to have made an

approach to aetna. the anti-trust questions become even more substantial one would imagine given cigna and anthem would only be a bit larger in terms of customers than u and h already is but you have to wonder whether they think they have an opportunity to play it. >> the funniest thing is you wake up saturday and you're going what you're doing and you get the e-mail it's happening. and you say sure saturday. why not? >> it is odd for a bear hug on a saturday. >> wasn't that odd? >> you get it and it's like okay, i'll break up my weekend. >> all the bankers and investors complaining to me about having to work on father's day. >> whoa is me. twitter waited for monday. the board of directors have

shired hired spencer stuart. the search committee will only consider candidates for recommendation for the full board who are in a position to make a full time commitment to twitter. >> thank you for saying that jack dorsey is not able to do this deal. >> unless he gives up square. >> which is coming public in a couple couple of weeks. >> how much of this is just sometimes the government does make a call and say we're not that comfortable. you've got to pick one, jack. >> right. >> we can't have the company come public while you're running twitter. >> square has a $6 billion value. we asked mr. dorsey that question when we talked about it a week ago or actually two weeks ago. i was on vacation. >> they disavowed that interview, not everything that happened. but they wanted a do over. that was the interview that changed the tone of everything. that was when it was almost like twitter said there were people

at twitter, maybe board members or big shareholders who said i just watched an interview, it's not possible. could you guys be that bad? >> you were not happy with it. you guys were both not here. >> right. >> i'm home watching it and i'm thinking they're not -- did david faber just say -- what do you mean? i mean remember at one point you were like quizzical? >> it got an answer in terms of clarifying what he was talking about. >> it looks like i think there's a new sheriff in town. the senior managers whoever they are are running this thing now but i think this was the right thing to do because it was -- >> some people say it's not exactly a high bar to suggest that your new ceo, that's going to be his job. >> right. you would expect that. >> it was very strange, but they watched our show. they watch it. they should work more and watch our show less. that's the first time i've ever said that. ceos should do a little work

stop watching the show and then not talk to faber again. >> don't do that to me. always come to us. you have to talk to us. >> because i said it, they will now talk to you. >> i don't know what you did. >> that interview was out of body. >> you have a search going on for the next four to six months most likely, and may not include mr. dorsey unless he is willing to say i am going to give up square. that's where things stand for the next ceo to take over from the interim ceo who is the company's current chairman, mr. dorsey. >> he's probably talking to bankers today about square. it was probably easier for him to just focus on square for a couple of days rather than -- this thing was ridiculous. >> on a broader level, stocks moving higher around the globe on hopes that greece and the creditors can strike a debt deal. the greeks are said to have made some concessions regarding

lender's demands for tax increases and pension reform. there's an emergency meeting today. the meeting is wrapping up now. most of the headlines are things like we still have days to come. don't have anything in hand. expectations low. if we get something, is it all clear? is it like bye bye bye? >> i think as soon as you see this, you'll have people who do nothing except talk about the fed come out and say the july meeting they're going to issue a statement. this is what i think the fed was most concerned about. i think a lot of what's driving this is this who lost greece. the more i read about this i think this was the president saying we have enough problems in russia. we do not want greece to leave nato. we do not want improoesgreece to be a partner of russia and i think that's driving it. in the last week by the end of the week it was like people were saying to president obama, i believe saying to merkel

listen we don't want greece if they leave the rueeuro zone where are they going? to putin. >> and a article this morning about mass economies that aren't equipped for the inflow. >> the banks go immigration happens, the country shifts its allegiances. the meeting with putin was probably the most positive meeting of this era. they were zwroekjoking around and talking about -- love you guys. a lot of people feel like russia doesn't have the resources. they've been cutting rates and quite confident. it's not like putin, putin has 101% favorable. he is higher than north korea. >> he's always got his own wealth if he needs to to fall back on. >> which is bigger than greece's wealth. >> he could just pitch in a little bit and become a secure creditor. >> greece this is a country that at one point was a swing

country in a lot of different ways because of turkey. you don't want them to leave nato. nato is a paper tire as it is. they're spent nothing. you don't want to have russia suddenly say we have greece. you have ukraine and we have greece. chinese in there, they are friendly. they have their own military. who lost greece? well merkel did. that's the tenor of what i'm hearing. >> we're going to find out. a failed state is not good for nato or anyone on this side. >> china comes in and writes a couple of checks and they own greece. >> the futures are up even though the headlines have been cautionary. >> the tenor, the germans haven't said anything that positive. the shorts are hanging onto the fins not being happy. i think the dolphins play more of a role but i know they have

historically been -- they're a prudent country. although finland has played every single side in the world at all times. i just show that shorts we're praying that this would be one of those where there was a big bank run. there were no bank runs. kind of going in and out. s s atms worked. did you get the father's day card that i got. thank you for being the greatest atm card? >> i didn't. >> kind of a back slap. >> mine was still just greatest dad. overall. sorry, guys. >> i like the picture from game of thrones with the mug that says world's greatest dad. >> i loved that. >> finally taylor swift spoke and apple listened. in a blog post she wrote we don't ask you for free iphones. please don't ask us to provide

you with our music for no compensation. it says it will now pay artists during the free trial period. apple will always make sure that ar cystists artists are paid. another said we hear you. love apple. you don't mess with someone who has that kind of market power. >> you don't. this is one where tumbler starts it. twitter starts something. swift makes something. apple makes something. twitter, what does she have a huge number of followers. but i have to tell you that when you spoke with young people this weekend, it didn't matter what was going on in the world, this is what they talked about. she had had enough. >> always good when content wins out. >> apple is higher today. not that it's a material amount of money with a company for 100 billion in cash. >> you have to hand it to them that they changed their mind.

that's unusual. taylor squift taylor swift, maybe more powerful where does she fit it? >> in the music industry. >> no in the corporate industry. she told that company here's the way it has to be. >> apple also as we know values are important to them as well and it's important to their employee base and you want to send a good message. >> i like the jokes that are asking can you handle infrastructure trade, guns and immigration. >> i don't know how broad ranged ler following is but republican field is wide open. >> when we come back another fake take over bid rejected. this one in the energy bid. and also the clock is ticking on a greek deal. a lot of optimism even though it looks like today any deals in greece might be a push. a lot more from post nine at the

nyse when we come back. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

getting some headlines from the euro zone finance meeting. they have broken off talks

without full agreement on the bail out for chief but the chief of the euro zone says they are looking for an agreement on a bailout later this week. the optimism continues today. >> the fact is that most of these meetings end with name calling so far, and merkel obviously, she came out today and said that she is encouraged that would continue the rally. remember, i think once the deal happens then the fed will no longer be worried about the euro and start talking about how in the september meeting it's going to be a done deal and they'll raise rates. there was a conference call last week that told you why you can raise rates and not hurt the houszing industry. that's not exactly what they said but it was the sub text. there is a tenor in business in this country in they can handle it. i said they can handle it if we get past greece. you have to get past greece so you don't become part of the

start. >> we're getting headlines on martha stewart. >> that's right. sequential brands will acquire 100% of martha stewart living for $6.15 per share. this is going to be a 50% cash and 50% stock deal. martha stewart will remain as chief creative officer. she is currently also chairman of slo. she will be nominated for the board at closing. both sequential brands and martha stewart brajds are fairly small. there's a market comp of about $400 million. it was once $200 billion in 199 but because it's so recognizable, we want to make sure the viewers understand it will be acquired by sequential brands expected in the second

half of 2015. >> when we come back we'll count down to the opening deal and one more look at the board. longest streak since the mid 90s. we're back in a minute. time upon a once people approached problems the way same. always start at the starting. and questions the same asking. but that only resulted in improvements small. so we step a took back and problems turned these inside-up-down to approach them newly. and that's when we it saw. garbage can create energy. light can talk. countries can run on jet engine technology. when you look at

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help right away. ask your doctor about cialis for daily use. insurance coverage has expanded nationally and you may now be covered. contact your health plan for the latest information. ♪ >> welcome to mad dash. we talked hmo consolidation. now let's talk pipeline consolidation. something you've taught me a lot about. williams puts itself up for sale.

ete made an offer. $64. i'm going to lose the exact ratio. .9358 eta shares. williams was in the process, meanwhile, of buying wpz for 1.115 wmb. people who own that getting crushed. >> will this break up the deal? >> they said our deal is contingent on williams you not doing this deal so this deal is obviously getting hurt. the prospects for it in r in doubt now with ete, essentially out there. they came out with their own press release saying that they were -- they'd made an offer in may and they started talks. $64 a share for williams. give me your take on all this. if >> if you look at the map of the united states williams energy and transfer are the most aggressive in terms of chris

crossing from a natural gas pipelines. it says the country is going to have kinder morgan enterprise product partners and this, and this is transco-. the consolidation in these pipes, williams has a great pipeline offer to go up new england. this would great the ka los us. this is a sign that oil and gas are done going down. you would not build this network out if you felt there wasn't a lot of natural gas coming from all over the country. it's brilliant. if kelsey warren gets this she's the john malone. >> the former banker that runs ete. >> i have to tell you. williams and energy transfer together, game set, match. rich kinder has done a great job. but i think if the government were sophisticated, they would

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the street" live from the financial capitol of the world. the opening bell in just about a minute's time. a lot of action. the m&a activity in the states regarding energy and health care. you covered the headlines state side. greece, it appears we're not going to get a deal today. the hope is that we will get one later in the week and greek yields have come in. the two-year and the ten-year. >> it's a small market now. a lot of these penny stocks are going higher. no one has heard from the germans saying no. we have not heard from top level germans who leaked to the press

that this is a nonstarter. that's why things are bad. that's what's going on. >> with all that we'll get existing home sales later this afternoon. actually, the week datawise a lot of housing data. the big board it's van eck global celebrating a third anniversary of high yield bond etfs, and first source a manufacturer of building products for residential construction. >> residential construction is very strong because there is demand. and in the kb hoems call they said first time home buyers allows people who are in starter homes to move up to go to second homes. the nicer homes, and that is what it has been lacking the whole time not just the fact that credit has been hard to get but a market for your home before you try to move to the next home and that's what kbh said is done when you get 2

million new households up from $500,000. this is the scenario that a lot of companies have been waiting on. let's see if they agree. that gives you the scenario which gets housing going. >> wmb is the big one. and followed by almost every big health care company you can think of. >> i can't believe there's not a big lawsuit. it's shocking. >> listen end stage, we know rates are low. i know you keep saying it coming back to it. we've had that environment for a long period of time. there's a sense that if you don't move now, your strategy is going to be impaired for the long term. >> the free money is about to end. >> with the free money conceivably coming to an end. did you see my friend who runs al tees with the huge potential deal?

i don't even know how to pronounce the company he's trying to buy. but you talk about fuel by cheap money. some people say, of course they have a unique way of running companies that is unparalleled. and that can get them bigger margins bigger than other people have been able to attain whether it's the cable industry or wireless but that's another example. i call it qe. it's a qe created company. >> i like that. >> it's a smart time to do those things, and so when you look at hmos or pipelines, although there it's all stock, frankly, jim, it comes into the consolidation we're seeing. did you happen to see in the twitter release that they want a bold thinker and proven leader? >> is that what they're going for? >> not a knuckle head and a

chowder head? that's radical. are moe, larry, curly out of the search? >> stock is actually down amidst a broadly uptake. >> they were supposed to get a takeover from google. didn't you read your feed? they're buying them this weekend. how dare you be negative about this? >> may doff rejected supreme court maybe any minute health care. i mean. >> we'll see. >> supreme court gets involved. do a deal with williams anybody get involved? >> you went from russia to williams? >> could the government does the government wake up and say some of the yields are not so great? >> i think you have to raise that question overall. people are still looking at comcast east inability to buy. when it comes to hmos and things that are going to effect the consume and have a political

nature, health care costs, you have to believe the government is going to look closely at it. pipeline, i'll defer to you. >> i think the pipeline industry is opaque. people don't understand that at a certain point the pipeline companies could raise their tariffs but statement, this is much more williams saying we've seen the bottom. don't worry about it. there's going to be natural gas liquids and natural gas comes out places. there is a need for a lot of people to be able to go to transport natural gas overseas. those pipelines are not built and there's still a lot of oils being used in new england. those pipelines which, by the way, williams figures in closely could be profitable. >> we have record highs for the nasdaq and the russell this morning. nasdaq is up. airlines are catching a bid on is it barrons? >> they did seem the bottom. i liked the action in the airlines. the numbers have been cut, cut,

cut, and there's been a sense that the price war. there was a great piece in the new york sometimes that said they all got together at the annual conference and now they are a little more genteel. i think now the numbers will be cut again when they report and the stocks won't go down which is significant. that's my take. by the way, watch sell gene. ep zon, had some very good data on nonhoch kins limb foe ma. >> hedge funds being involved fighting patents to get stocks lower. >> sure. that's out there. we haven't had a chance to talk about that. love to and hope to do so at some point, that strategy of challenging patents.

let's get to just give everybody all the stocks involved here and the hmo consolidation fever. it's a fever. certainly worth doing and this morning right at the top of the show, we told you anthem reiterating its desire to buy cigna for $184 a share. that was in cash and stock. we knew that. let's call it roughly 31% in shares. 69% in stock. they also offered them three board seats. this morning they are talking about as much as $2 billion in synergies that they see from a deal within two years after the close. they're talking about earnings of as much as $17 a share for a combined cigna anthem by 2017. they would finance it through cash on hand and debt and there's equity. they would decline to 40% two years after close. they would expect the close to take place toward the end of

2016 which does give you some sense, even if they were to agree to a deal now, as to how long they see the various approvals, and it's not just federal. you also have to go through each state, or many of them where they operate. the question is what kind of diversetures would have to take place. you could create a significant competitor. if all five are getting involved, you probably could be in the business and create a much larger company just taking everybody's thrown off subs. >> i think that's exactly what someone should be doing right now. it would take a lot of measure off the anti-trust. >> anti-trust is one of the reasons that cigna cited in saying we're not interested anthem, right now. even though they've been talking for a long time and seemed to get through the economics of a deal. they seemed to agree on that. it's really about social issues. david kordoni wants to be ceo. they say your assistance that

one person assume four roles, s disconcerting and risky. this was in the lerttter they put out yesterday. your proposal raises serious questions about your views on proper governance. both those roles are split currently at the respect i companies. but you've got to keep an eye on aetna. >> which is soaring. >> it seems to be a prospective buyer of humana which has been for sale. i have to get a better check on how things stand with humana. >> what is their end game? why are they willing to sell? >> i think they now can clarify the impact of the aca on their business. people say it's about the aca but that doesn't appear to be as crucial. many of them lose money in the state exchanges. those are not money makers for them, the state exchanges. it's the other parts of their business, the commercial parts that are much more can be much

more profitable but once you know how pricing clarity, you know how it's going. that time is here when humana put itself up for sale, everyone was talking to everybody. there's no doubt about that. that's been going on but when humana made that move everyone else had to make their move. >> how about the companies that are covered by say, cigna, if they go to washington and say we're able to get a better price from cigna because we can play cigna off aetna. is that the government just falls on deaf ears? >> i don't know. that's a salient question. without a doubt. >> thank you. >> in the meantime the drama out of greece continues. we want to go to athens today. groorng good morning, michelle. >> reporter: hey there, carl. one of the key events today was all the finance ministers

getting together to assess a new proposal presented last night by the greek government to see if it was good enough to keep talking so maybe they get to a point so they can pay the imf. that meeting ended within the last half an hour. it ended without a rankor with lots of negative statements. this time around the statements from the lead of what's called the euro group, they came out and said this is a good start. we're going to take a look and see if -- we see this as positive. we're hoping we can have a meeting later this weexk. the meeting was broadly comprehensive. that is a compliment in the way the way the world has been talking lately. it appears the greeks have been able to move the ball five yards. tonight there's a meeting of the

leaders. it's not clear if anything much will come out of that because all the work comes at the level of the finance minister level. the ecb every single day is making a decision about whether or not it's going to continue lending cash and liquidity to the greek banking system. they're living on a day by day basis. greece is supposed to pay the imf and also their program officially expires legally, technically, that's when the ecb has to make some key decisions. today it appears there's progress. let's see what happens at tonight's meeting. >> all right. we'll come back to you later on this morning. dow now up about 97 points or so. bob is on the floor for us. >> happy monday. fairly broad rally. nine of ten sectors of the s&p 500 are up at the open. but the real emphasis is on europe and the big issue over the weekend that i was debating

with my friends was is it safe to go back into the europe again. european leaders, the reports they're dangling the ultimate carrot potentially down the road. you can see how germany and france and spain all responding to this right now but the question is is it safe to go back into europe. look what's happened for example, in germany. they're more than 10% off the highs it it back in april, and in the last couple of days the market has rallied about 3% or 4% on hopes of a bailout deal. there seems to be something behind the idea that there is a premium that could be priced in if greece makes a deal. if you look at the vgvk which is not a hedged. it's the biggest out there of

the broad market. it's rallied about 2% since the bottom on thursday when talked about things looking better. there seems to be something in there. the cynics out there, and there are many who keep messaging me saying this is only going to reinforce the idea that central banks will always bail out market participants. it's not a good idea. but it seems to be working. in the united states broad rally, health care stocks you're mentioning the moves in hmo, but financials are strong this morning. technology and consumer discretionary across the board with the exception of you the till -- utilities have been market leaders. week after the june quadruple witching. is s&p 500 has been down 23 of the last 24 years. we did this last week with our

cashes. traders don't believe it's going to be a good week but it's starting out well. the natural gas and pipelines, williams company rejected the offer. the feeling is that the rejection is going to create greater interest in some of these companies. companies that own pipelines in energy infrastructure were thought to have been insulated from the drop in price of oil. it doesn't matter. they pay the same amount of money if energy prices are high or low but if you look at other numbers, this is a basket of all the big mlps, this is down 25%. it's not a 50% drop but it was affected and a lot of people who own mlps have been unpleasantly surprised by that relationship. some of the mlps are up today but i would not call this a big move to the up side. >> thank you very much. we are getting word from the supreme court rejecting an

appeal that could be bad news for some may doff victims. the u.s. supreme court has rejected the bernie may doff trustee. the gist of this is that basically the u.s. stream court has rejected to -- i guess decided against hearing a case involving the trustee going after people who had already taken their money out of the accounts. if you were a customer of bernie madoff and you had taken money out. they were looking to get the deposits back from you in order to help pay the people who lost money. a lower court are ruling has now said that they cannot go after people who had already taken their money out of those related accounts. a big ruling here. what this could do carl is hamper the recovery of any kind of other assets that people have already gotten out of these

accounts to pay other people who had lost money. a slightly complicated twist but it means the trustee cannot go after as many as of the legally gotten profits as they thought they could have. >> oil has settled back just a touch. jackie is with us. >> good morning. that's right. under pressure this morning we are going to have futures expire later this afternoon. so we're looking at the july price right now. $59.22. august is trading at $59.57. a little bit of a stronger dollar having an impact here but i want to focus on the fact that the spread between wti and brent is tightening roughly about $3. that tells us that domestic crude is more competitive with the international benchmark and traders are telling me if you're looking at the broader energy

market and stocks to trade, you want to start to think about some of the domestic producers or versus the international players and if you have the etfs with international exposure maybe something to consider doing a little bit of a rebalancing. >> thank you. when we come back the summer tv wars with a twist. can a new offering from amazon beat out netflix which has a price targeting of 950. dow is up. we're back in just a minute.

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markets enjoying a pretty good morning even though a greek deal is not imminent. s&p back to 21.23. let's say we get a greek deal wednesday. >> well, i think that once the deal is done then market has a momentary reprieve and then the fed people are allowed to speak and they say this is what we were waiting for and now we're going to tighten. you'll be back in a moment where you're worried about the dollar.

the dollar is crucial. you cannot have the dollar going higher into earnings because what's going to happen is in another two weeks they're not going to be talking about greece. they're going to be talking about earnings. they're not that good. you need to have people saying if the dollar would stop we'll be fine but the earnings not fine. that's why there's so much con sal dags. >> we're going to get a smattering from darden this week. >> it's a much better company without red lobster. i was interested to see someone recommend it ahead of the quarter. that's dicey. carnivore reports. i had carnival and they are good. it's good. that's a very good number. >> heck of a comeback story. we'll get stop trading with jim in just a minute.

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full-time for cramer and stop trading. >> a bold call from facebook today. raised the price market. i think they can earn 230 in 2017. he's talking about occuls.

we have seen a move in the cyber security stocks it is to end all moves. this is the parabolic move in cyberark. they're saying fire eye, time far little break. fire eye, you sell this one and we get another hack in the next 48 hours, you'll regret that you sold it. >> we went through a series of hacks where the stocks didn't respond. i wonder what changed? >> i don't know. but when h and r told me when it's about get yourg social security and filing ahead of you and they get your refund and you try to go to the government and the government says sorry, you got your refund already but it turned out to be a hack they had your social security and everything. that's what this is about. many of the hacks are about getting all the information you need to file your tax returns. so please be careful. >> what's on mad tonight?

>> i have one of the hottest stocks in america today, radius health. this is a company that just demonstrated intervention in terms of broken bones. something that makes bones stronger and broken bones is a lot of way -- the elderly need this. i think it's a breakthrough. i can't wait to speak to the ceo. he said the numbers would be good. people saying onning aconagra, something good happening. >> general mills has good things. >> yes. >> and current environment in m&a, basically anything you say people are like okay. >> i hadn't thought of that but i'll pursue it. >> exempt for twitter. spencer stuart is good. this is a good move. i think that square would be held up and i think that the

whole process would be held up with dorsey was really in the running. i salute twitter for doing the right thing. >> there you go. >> you're like the taylor swift. you call fitter it friday and it happens on monday. >> so you're ending on a upnote. >> i like the changes. we're going to get a forceful guy on twitter who is customer savvy in cloud, mobile social. co-k can you listen to me? you have to take a phone call? >> we'll get to existing phone calls after the break. by the time police arrive on a crime scene they could have little to go on. a vague description. a single piece of evidence. a partial plate number. with an app from ibm officers can now access

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you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck. ♪ good monday morning. welcome back to "squawk on the street." i'm carl quintanilla, with sara eisen and simon hobs. looking at the good week as we await headlines from a series of meetings from greece and crude

started the morning stronger but back to $59 and change. >> the road map for the next 60 minutes. the greek drama infolds. the plot is quickly changing this morning. >> cigna and anthem in a saga of their own but the final act yet to be revealed. >> and taylor swift has apple changing their tune. >> and break news on existing homes. let's go to washington. >> reporter: good morning. existing home sales up 5.1% month to month in may to a seasonally adjusted annual rate of 3.35 million units. the street was looking for 5.25. this is the highest since november. sales up 9.2% year over year. the real headline is median price. up 7.9% year over year and they

now believe 2015 prices could exceed the prior peak in 2006. the median home price we're seeing today. we saw 230 ,400 back in july of 2006. he says he does not believe we're in a bubble for housing due to demand. let's talk about inventories. they're up 1.8% to 2.29 million units. we're seeing the month supply come down and that's what's pushing these prices higher. days on market just 40 days. that's the third shortest we've seen since the realtors began tracking this five years ago. all cash still at 24. the first time home buyer to coming back at 32%. that's versus a year ago at 27% but if prices keep going this

week, it could impact sales soon. >> thank you. for the latest on the greek debt negotiations, let's get to in brusselsls. a make or break becoming a make or break week. >> reporter: absolutely. no deal here. and perhaps one of the shortest meeting of finance ministers i've witnessed on record. earlier the possibility of a deal dissipated when we learned the greeks submitted the wrong proposal. they then proposed the right proposal. it made it difficult to agree on anything. basically 18 finance ministers arriving here to do absolutely nothing. i tried to talk to them on the way out. they said little progress was being made but they'll be back here on thursday to try to sign up on something. i think the message was carefully presented by the

president of the your ree group. he said it's an important step. we hope to come up with a deal later this week. he's meeting with the ecb and christine lagarde of the imf, and then they'll meet with the prime minister. that happening for angela merkel flies in this evening. she said over the weekend, i need to see a deal from the finance ministers before i'll sign off on a deal. it's difficult to see what she can add to it but we've been surprised by the meetings before. if it had to be my guess, i'd say same time and place on thursday and in the interim we continue to watch the greece bakes bake banks. >> thank you very much. hoping and waiting for a deal. the markets are certainly in rally mode beginning the second half of the year with a bang largely on optimism over a deal. the nasdaq and russia notching

highs as we speak. joining us at post nine citigroup's chief equity strategist. what do you tell clients about greece? >> a couple things. one, expect this thing to go down to the wire in the sense that both sides, if you think about angela merkel, and the other side they have to say we tried to get the best deal possible. our sense is there will be something. it could get pushed down the road again but they're going to try to find some solution at least to patch up the near-term risks. >> what if you're wrong? what happens to the u.s. market if greece does have to default and with that comes a lot of unknown unknowns. >> welli think we've been telling people, the impact is fairly -- i should say con stabed in the sense that we haven't had the

contagion phenomenon. they're not having the same problems they had four years ago, and in that sense con sin jenty plans have been put together. people are trying to figure out a way that this stays within the confines of greece. this doesn't mean we couldn't have accidents. what we focus is is what's going on in the markets and japan. we're focusing on earnings. the first half earnings are probably up 2% for the s&p s&p. >> that's in contrast of the journals in the street column this morning. >> we have a more bullish view of earnings. >> they're talking about the stats coming through on the earnings season suggesting that six of the ten s&p sectors, appealed to second quarter. >> i said second half. we're looking for second half. the first quarter, consensus was

down 5%. we came up 1.5%. that was almost on our target. we think we'll see the 2% range in the second quarter. as you go through the year, two things happen. the drags you get from the energy and the dollar don't disappear but become less of a drag and secondly you get some of the economic development. we're seeing it in terms of wage growth. we're seeing the normal lags. this is important. there's about an 18-month lag between changes in energy prices and changes in economic tvrt. everybody thinks it's immediate. you save money when you save it the pump. it takes 18 months. the second half should start to see the benefits of the crisis. >> are you not worried about the estimates trying to come in the classic cut ahead of quarter? >> for the second quarter, they are starting to come in. second half consensus is not there.

in other words they have actually been constantly cutting back. that's why i give you the example of the first quarter where everybody cut their numbers down to 4% and we beat the numbers. i'm not that surprised. analysts tend to wait for company guidance. they don't want to get out too far and companies aren't confident enough. >> did you see the survey from cfa. two out of three global fund analyzers analyzers, they're worried about what happens. i appreciate if the earnings kick in then maybe they're not overvalued. if we don't get great news over the next month or so as they raise interest rates and liquidity dries up over the summer the suggestion is it could be quite tough. >> some of the markets have that potential. the u.s. is up 2% 3%. it's not like we're sitting there saying markets are going to be saw sm.

around the world, you have to worry about it. a lot of people like to use an adjusted pe. i have great respect. i will not be one. on the other side of that the shiler methodology, admitted has zero predictability of what happens in the euro. some of ours give you predictabilityies of a higher market. >> you don't see stocks as expensive? >> i don't think that's the issue. that tends to be a subjective call. i can't force millions of investors to do what i want. i have difficulty getting my children to do what i want them to do. from that perspective, i think you have to look at the earnings trends. the highest correlation with equity markets is earnings of

the equity companies. if they are better and they should be, we can get some improvement. >> even with the stronger dollar? >> stronger dollar is less of an impact. 10% would be about 2% of impact. it's not devastating. i think if you have a 50% move in the dollar then we probably have a lot to talk about. >> we almost did over the last 12 months and so. and then finally m&a, that's helping give the stock market a lift. does it signal confidence? >> it does. companies are willing to buy growth. i think in certain industries you have consolidation. the concern i have is that people believe this to be a signal of a late market. history isn't necessarily on your side. if you look at the number of deals, they're going down. the dollar value of deals are going up.

it's mixed signals. >> with all the perspective on equities. always good to have you. >> when we come back cigna rejecting the takeover offer from anthem. what deals will get done in the health care space. who is going to merge with whom and she speaks america listens. taylor swift's tweet, and the impact. we'll be back in a minute.

billion merger proposal calling the offer not in the best interest of the shareholder. anthem reiterating its interest to buy. with us, anna thanking for joining us. just looking at your note here. no deals yet but you expect the industry to consolidate. tell us how it looks. >> i think the industry is ready to become a big three industry from big five. the industry has been too fragmented to meet all the requirements of obama care to make a return on capital. the most obvious combinations to me look like anthem cigna. i think aetna humana will create

a power house and then there's united. >> do you expect the anti-trust regulators to actually sign-off on those deals? >> there might be some modest divestitures for each of the deals but if i look at them they don't seem to be any deal killers from an anti-trust perative. if i take anthem and cigna, i think the complimentary capabilities and the footprint from a combined company will be quite ben if i believe for employers. if you look at aetna and humana that is a medicare advantage story combined with meshlcommercials, so if you look at it from a product by product basis, i don't think it raises any red flags. >> you read the analysis that the journal did on this. they're subtleggesting it would

increase by about 180, the number of u.s. counties where at least 75% of the customers are in a single insurer. divestitures won't sort that out. >> it's united with 3. i think they aetna has a very large percentage of its medicare advantage book in employer group medicare advantage offerings. not a retail play and those are large employers that are like ibm or pharmaceutical companies or whatever who have pretty strong goerktnegotiating powers. i would have to look at specifics around what the journal has done but one has to keep in mind it's not an entirely retail book of business. >> the whole group is trading

nicely today. anthem cigna, what price do you see that deal getting done and what happens to cigna's ceo which seems to be a big sticking point? >> the $184 per share is a pretty attractive multiple. i could see anthem raising the price per share by another $5 or so. it seems to me the sticking point is around the governance. my sense is that at this point if anthem will offer them back what they had in the third proposal that was on the table, i believe it was around june 18th, that had the ceo has president and chief operating officer, they had a slightly higher percentage of board seats coming from the cigna board and cordani was also poised to be the co-chair of the merger integration committee. >> before we let you go presumably we don't get judgment

from the supreme court today on the affordable care act. if they strike down the subsidy subsidies on the federal exchange. what will you tell clients? presumably it moves the stocks doesn't it? >> i don't expect a huge impact. fundamentally the earnings impact is 2% or less. it's negligible for cigna. it's a little higher for the others. if the stocks do take a dive i think they'll rebound on that. >> m&a headlines will surely keep it going. thank you very much more joining us this morning. >> likely overall markets, oil prices volatile. joining us this morning, stuart glicmam. good morning to you. >> good morning. >> you don't really seem to see

oil rebounding sharply from these current levels, do you? >> i think the oil markets look oversupplied. if you look at some of the forecasts from a sister company. we're looking for only roughly 5 $53.5 per barrel and only $55 a barrel in 2016 and those prices are both down from where we are today. i think that the supply growth in the united states especially on shore has proven to be extremely resilient and doesn't show many signs of slowing downright now. >> yeah. and now we have the added wrinkle of m&a picture. williams and ete, how does that play into your thesis? how much does it interest you if these deals are consummated or not? >> it's interesting. i think this is true not just in

midstream but in upstream. we're entering a new era of abundance in energy. supply is outstripping demand. it's something also with natural gas liquids. also a mainstay of what the midstream players offer. you have a company like energy transfer equity that's making a play for williams. maybe it heralds the fact that going forward perhaps a better way to grow is through consolidation because there's been so much organic growth already being spent and is likely to continue to get spent in the next couple of years. the further organic doesn't make a lot of sense right now. >> ete is amazing aree where, they've added all the pipeline. is your interest in integrated

pipeline services or some other order? >> i differentiate between the fundaments in energy industries. from a fundamental standpoint the only sub industry i like is the midstream storage and transportation. i think that 2015 2016, there's going to be a lot of hay to be made and i think those companies will deliver good distribution growth. with the integrated i'm more cautious. it hasn't really worked out so far this year. the upstream is disappointed because of what crude prices falling off the table. refining has held up their end of the bargain but i think that refineries especially in the u.s. will be going white hot and i think at some point they're going to have to cool down because some maintenance that's been deferred is eventually going to have to get done. >> stuart i was going to ask you quickly, we don't have much time left but on this discussion of the u.s. allowing oil

exports, there was a great conversation this morning on "squawk box" with energy ceos, it feels like the ceo rz getting more vocal about the policy. do you expect it to gain traction at the federal level? >> there's been a lot of talk about trying to get it lifted. i think it's politically sensitive. no congressman is going to want to vote for that and then watch gas prices rise and get blamed for it. i guess a more likely of the lifting ban by stealth. further increases in splitters that allow you to refine the oil and ship it overseas. that doesn't require political lifting in the same way. >> thanks so much for your time. >> thank you. >> coming up on the program, a fresh look at what's driving record auto sales. new data suggests one popular

explanation doesn't actually add up. more from "squawk on the street" in just a moment.

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auto sales are at a record high and some have warned about the roll of sub prime auto loans fueling the sales. new data is showing that's not necessarily the case. people have been worried about this for case. >> we're hearing it's overkill from experts who track the auto loan industry. when you look at the latest data, we're look agent the most recent data. equifax says there are 1.59 million loans. that's basically almost a quarter of all auto loans but it's only up less than 1% compared to a year ago and it is 34% of all the new financing

that's increased in the last year. the average new loan comes out a little over $27,000 for a new vehicle for sub prime borrowers. a the dling wen si rate has declined. the reason we're bringing this up because we're on pace for the second best year for auto sales now at a pace of about 17.25 million. that's what we've done over the last five years. you've seen the steady growth. one reason we're seeing the sales move higher the strength of pick up trucks. an increase in pickup sales. you can see there is a rotation into pickup trucks pent up demand there and as you take a look at fiat and chrysler. this week the ceo will be there for the reveal of a new vehicle.

there will be comments from him, no doubt, about the need for consolidation in the auto industry and that's going to get a lot of attention over the next couple of days. >> he is still banging that drum. in the meantime optimism on the greek debt situation sending stock markets around the world higher. robert kimert will join us live next.

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here's your cnbc news update. the united nations releasing the report into the gaza war. it finds that both israeli and palestinian groups may have committed war crimes during the conflict. the war which started last july began with a kidnapping and killing of two teenagers in the west bank. a deadly gun battle with police outside the after zban parliament after a suicide bomber struck the entrance and the government tried to storm the compound. afghanistan no members of parliament were harmed. >> and a hack attack grounded planes in poland. the attack attacked computers at the national airline lot. and a shift in the man hunt for two convicted murders.

police are moving their search closer to the correctional facility. it comes coming a new report of a siting about 25 miles west of the prison. they have been on the run now for more than two weeks. and that's our cnbc news update for the hour. back to you. stocks continue to move higher this morning on hopes that greece and the creditors can finally strike a deal in time for the country to avoid the default. we have are in athens with the latest. >> reporter: good morning. a three key events today. two of them thus far gone okay. we were waiting to hear from the european banks will keep supporting the banks in greece. so far so far. second the meeting of the finance ministers after greece submitted a new proposal last night that they hope will unlock some bailout money. that meeting ended quickly

because the proposal was received so late. they haven't had time to go over it however, the finance minister has seen enough to say they think they're at least getting somewhere. >> from the greek government came in this morning, which we welcomed today. it's seen as a positive step in the process, but given the very little time that the institutions have had to look at the proposals, they were unable to give us a full and in-depth assessment. >> reporter: so there's going to be another meeting of the finance ministers on thursday. tonight the leaders of the euro zone are going to meet. rumors that maybe debt relief could be on the table within that meeting. we'll find out. in the meantime there were protests last night for supporters of the government who are very concerned that whatever agreement happens is going to have new austerity measures that

are going to be tough on the population and there are concerns that as details start to emerge about the agreement, could there be violent protests here on the streets of athens. we expect a pro euro protest in the next couple of hours as well. the other thing we watch every day is what's going on with the banking system. more than a billion euros a day leaving the system either through overseas withdrawals or watch withdrawals and every single day it appears there's a day today decision on how much is going to be given to the banks. as we get closer to the date of when the bailout agreement expires. something in theory that has to be done by then. >> i had assumed that since the finance minister said well we can't deal with this. we have to send it back that the summit was off tonight. if it still takes place, it's interesting that the suggestion

that debt relief is on the table. payments that are pushed out into the future so maybe the greek prime minister got what he wanted he got them to shift potentially if the meeting goes ahead? >> reporter: yes. if it turns out to be true you're right, simon. right now it's only a rumor. second, some people would come back and say, look we've always told the greeks we would extend maturities and lower the interest rates as long as you did reforms, and the greeks have wanted a full debt write down just like the imf has said because even if you extend the maturities the debt to gdp stays the stam. the details are what we'll wait and and see, but it is significant. >> thank you, michelle. live on the streets of athens. know from london robert kimmitt

to worked in germany and berlin for this country. now a senior international counsel. thank you for joining us. >> good morning. how are you? >> i think the markets are right here to be rallying. do you think we're getting a deal done here? >> we're not going to get the deal done today. i do share the market's sentiment that a deal is more likely than not but i think it's still a close call. i don't think we're down to the wire. i actually think the wire has been moved to thursday or perhaps a little bit later. but it seems that things are moving the right direction because discussions are continuing both at the level of finance ministers, and as you say, some discussion tonight to at least update the leaders on where things stand. >> the news piece of information we have this hour, and it is only a rumor but if the summit goes ahead tonight and they're

there to talk about debt relief for greece which basically means that the taxpayers from the rest of the euro zone and the ecb are going to have to give up some of their wealth to the greeks there will be a wealth transfer. do you think the governments can sell that at home? can angela merkel sell that in germany? >> well i heard this for the first time in michelle's reporting. i haven't had a chance to think it through. it's hard for me to see the finance ministers taking a somewhat reserved position they did. we have to study this more and then have the leaders leapfrog over them to get to something as significant as debt relief. i'd be surprise first-degreed if that subject were on the table. i think thursday is turning out to be the key day. it wouldn't surprise me if there was a pivot on the side of the leader to address the euro zone restructuring proposal to discuss the decision taken earlier today by the ministers

to extend sanctions on russia. i think thursday tends to be the bigger day on greece and you're right, if that particular debt relief is on the table an thursday, it raises a series of very interesting political questions in all of the euro zone capitals. >> yeah and on those political questions, the former u.s. treasury secretary writing today in the ft and "the washington post," he says financial historians may look back at the next week and wonlder how the unraveling was perntmitted. what is the long term damage of this constant ranging and moving from deadline to deadline over greece whether they can keep it in the euro or not? >> it's interesting. you know this is not unlike what we go through in the united states on debt limit debates. we always seem to go to the cliff, whether it be in bruz

brusselsl or washington. people can only take tough decisions when people can tell their constituents they went as far as they could go. i think we see this on both sides of the atlantic. i think they need to come to a resolution on greece quickly. i think it will happen no later than the 30th of june. perhaps as early as this thursday with details worked out after, but let's watch this new story. this proposal looking for more cohesion cohesion. it's a fairly small step but a step in the right direction. that's about 100% of the euro zone, not just 3% of the euro stone. >> in the meantime you're well adplsh angela merkel is coming not from east germany.

could she ever on her watch allow greece to leave the euro zone and the institutions of europe crack under her watch after decades of being built up and finding a position for post nauz zi era in a modern world. could she allow greece to go at the end of the day, ever? >> i won't speak for chancellor merkel. she'll make the decision she thinks is right for the german people but i think she and the vast majority of germans believe that the european experiment has been very good for germany. germany is in the longest period of peace. there has not been land battle on the german land mass. they are surrounded by nine country, eight of whom are allies, all of whom are peaceful friends and trading partners. i think the german economy has been one of the major beneficiaries of the euro. any place you go in berlin

munich elsewhere in jury roomny, as i think you know you'll see three flags, the local state, the german flag and the european union flag. they're proud of where they come from. they're becoming increasingly likely to show their pride in being german but they also see themselves as embedded in europe now and in the future. >> it's good to see you. thank you for sparing the time. >> we did not get the supreme court decisions dwrrks, the widely anticipated ones on obama care and same sex major, but there has been one. we are live with more. >> it's property rights and raises, believe it or not. the case at issue involved california farmer marvin horn who has been fighting the agriculture department for more than a decade over the notion of

whether or not his raise in crop is property and therefor has to be compensated by the government when taken. the supreme court, and specifically the chief justice ruled in favor of the farmer mr. horn. reading a couple of sentences from the opinion, the fifth amendment requires the government to pay just compensation when it takes personal property justice when it takes real property. any net proceeds, the wage received from the sale goes to the amount of compensation they've received for that taking. now, there are other agriculture department programs that sort of run under the same guise that was at issue here. again, mr. horn who's been fighting this case for more than a decade wins but there could be other implications for similar agriculture departments as well. we will be back in court on thursday for more decisions including possibly the future of the affordable care act and the

status of same sex marriage going forward. >> more to come. hampton, thanks. when we come back nobody can strike fear into the heart of music executives quite like this wonl woman. taylor swift. we will break down apple's major policy change in a moment. dow is up 143. session highs. we're back in just a moment. doing small gigs,side gigs...gig gigs. quickbooks self-employed helps me get ready for tax time. to separate expenses,i just swipe. it's one hat i don't mind wearing. [passenger] i work for me. and so does quickbooks. it estimates my taxes,so i know how much stays in my pocket. and that's how i own it. [announcer]stay in the flow with quickbooks self-employed. start your free,thirty-day trial today at join-self-employed-dot-com.

all of sudden a strange surge in trading activities. that story on trading nation. more "squawk on the street" coming up right now.

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a blog post taylor swift wrote we don't ask you for free iphones. please don't ask us to provide you with our music for no compensation. she earlier said she wouldn't put her album on the streamings is. joining us with more is a marngingmarng marnging editor from recode. she's 25. we made the biggest company in the world reverse course. >> it's amazing she was able to do that. she's also the biggest artist. >> in tweets. >> she posted to tumbler and apple responded but the point is using the internet and her ability to sell albums like no one else had apple change its policy or basically institute a policy around this which i don't think they'd started out ahead of time. >> could anyone else have done this? >> probably not. >> we've seen calvin harris bow to her this morning basically saying you go girl. these the ambassador for the

industry. >> she's the queen of music. she's potentially one of the biggest distributors out there, apple. they're revising their music business. instead of down loads, now they're trying to catch on what others are doing which is streaming music. >> is this a loss for apple? they're not short the cash. >> that's the thing. she said in her tumbler post, you have point, you can pay us and it's true. it's not like it's something that would chip away at their sales. i think the bigger picture is taylor did the same thing to spotify a few months back and even though spotify does pay a royalty for the free versions most of them use the free version which doesn't net as much royalty for the artists. apple came out with we're going

to do a free window. artists are like no. that's why we didn't like spotify. we want as much of the full dollar as we can get for our music. >> it's an open question why it wasn't headed off before it happened. if it was a mistake, my question would be if there is part of an evolution within apple. i don't know if they've announced it but we think they're going to break this 70/30 split rule in media to not get as much money from selling media but to ensure it's where you buy media from. >> i think you're pointing to the right thing. our sources have told us that apple is looking to adjust the 30% tax they're taking away from publishers. it could go as low as 15%. i think what apple wants is it wants to be the media ecosystem for everything. if you want to buy books,

movies music, whatever it is come here. >> but subsidized by the iphone. >> right. because that's, the iphones, as long as there are plenty out there, they'll make their money. >> on twitter, is jack basically what twitter is saying we are not considering you for ceo because you're not willing to make a full time commitment. you can't be ceo of two companies. they weren't going to ever do that. the fact that jack put out a statement saying that he told us i'm saying as ceo of square, firmly permanently, twitter basically said you're not a candidate for us. >> not to inspire confidence. >> it was up more than a percent earlier this morning. >> i think that has to did with the uncertainty. twitter needs to do a better job of telegraphing of what they're looking for. >> i have an important question. is 1989 going to be on apple? >> i would think it would be dumb for her to not do that after apple made the switch. look out for it. >> up next on the program, look at this the future of farming

lies in inside a warehouse in newark, new jersey. we will take you behind the phenomenon that is known as vertical farming when "squawk on the street" comes right back. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely 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. automotive innovation starts... right here. with a control pad that can read your handwriting,

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it turns out the next big thing for food might lie inside a warehouse in newark, new jersey. our own morgan brennan is live in a vertical farming lab to explain. morning, morgan. >> good morning, sara. this is the research lab of aerofarm aerofarms. it's using vertical farming to disrupt the way we grow vegetables. here's the concept. converting on constructing buildings in urban areas that don't require soil or natural sunlight instead using climate control, artificial lining to produce pesticide-free vegetables at higher yields. vertical farming has been around for years. one reason this is catching on now is new technology that's dramatically lowering costs. in addition to increased automation, led lighting a large cost for many of these companies has become more efficient. for example, in indiana, green sense farms, another startup, is supplying retailers like whole foods. that company is working with

phillips lighting on specialized bulbs. phillips says vertical farming is a business opportunity that's growing exponentially. that's the reason it created a division dedicated just to this concept. >> in addition to being able to really very precisely steer the growth of the plant it's also very efficient for lighting. so the energy use is low. they have a long lifetime. >> so one of the things you will find in many of the farms including here at aerofarms is red and blu diodes. the reason to that is these colors optimize photosynthesis. one of the other things aerofarms is doing is collecting big data. 10,000 data points per harvest sikele. that includes information that allows the company to grow for taste, texture, color. how does the actual product stack up? i'll be the guinea pig here and let you know.

this is a mustard bean, called ruby streak. just to try it. it's very mustardy peppery. actuallify was going to have a whole salad of this i'd probably have it with a glass of water. it's so flavorful. it's amazing that this is being grown in newark. back over to you. >> thank you very much morgan brennan there with vertical farming. let's send it over to jon fortt and find out what's coming up on "squawk alley." >> we'll be talking about taylor swift's note to apple, the master reversal that apple takes based on that. apple getting ready to launch in just eight days from now. an update on twitter's ceo search. who they won't be looking for for ceo and the markets still in rally mode though a little bit off the highs, the dow up nearly 150 points. all that and more coming up on "squawk alley."

seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're

needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day. good morning. 8:00 a.m. at apple headquarters in cupertino, california. 11:00 a.m. on wall street and "squawk alley" is live. ♪

♪ i'm in the streets it's up to my ankles ♪ ♪ out in the street it's up to my knees ♪ ♪ the town of chicago ♪ >> welcome to "squawk alley" for a monday morning. joining us today, slava rubin. good morning. kayla is making her way to ken lie lyon where she'll join us tomorrow. we have m & a in the health care space, expectations for a deal in greece perhaps on thursday. existing home sales at a 5 1/2-year high. we'll keep our eye on that. an e