joining the rapidly expanding car sharing field. it's wednesday, june 24th 2015. squawk box begins right now. ♪ >> good morning and welcome to squawk box here on cnbc. >> i have a bunch tomorrow. >> i'm becky quick with andrew ross sorkin. joe is off today. we have a great story for all of us that have ever had e-mail regret. maybe that it was that mistaken apply all or maybe you sent a nasty note about your boss that you accidentally sent to your boss. now gmail is rolling out an undo

option. the details coming up in a bit. in the meantime let's get to the market news of this morning. take a look at what's been happening with the u.s. equity futures. there's been a pull back on concerning stories out of greece. the dow futures down by 55 points and the nasdaq down by 12. >> bonds and currencies also reacted. identify mans ministers from the-- finance ministers are set to meet tonight. we'll bring you a live report from europe in a few minutes. in washington the senate is expected to pass a bill today to give president palm balm expanded trade negotiating powers. this comes after a lengthy fight with unusual bedfellows. the house already passed the measure and on the economic docket a final revision of third quarter gdp expected to show an improvement from prior readings. looking for a contraction of two

tenths of a percent. so less negative than it was. >> well we'll see. today is going to be a tough day. stocks to watch this morning, the current president will be taking over as ceo on july 1st. the transition was expected. he started with boeing as an intern. been with the company 30 years. here's what he had to say last night. >> this is really about stability and confidence in our path forward. we're well positioned as we head into our second century as a company ramping up our commercial airplane business. growing our defense business international internationally and we're investing in productive for the future and we have a strong strategy in place and we'll continue to execute that. >> i love a story where the intern makes it to the ceo spot. in the meantime netflix today, the company announcing plans to split it's stock 7-1. shares have nearly doubled since

the beginning of the year. also a well-known internet analyst is going to join us on the set with his take on all of that in the next half an hour. also trouble in mna land. a federal judge ruling that cisco cisco, their food meshlger should be stopped -- merger should be stopped. a lot of these mega mergers are going to get tougher and tougher to do given what's going on in washington. >> the insurance companies are going to have to sit up and take notice of this. it's not just one industry they're looking at. it's a tougher look across the board. >> totally. >> let's take a look at the markets this morning. the futures are under a little bit of pressure. headlines coming out of greece concerned the markets at this point. those include things like the greek prime minister saying that there are certain creditors that

rejected some proposals by athens. but the dow futures are down by 47 points. s&p futures off by close to 5 points. of course this comes as the dow and s&p 500 and nasdaq are on pace for a third straight month of gains. that hasn't happened since the five month stretch in june of last year but we'll continue to keep an eye on this through the morning. take a look at what's happening in europe. the same reaction there to some of the recent headlines about greece. the dax down by 1.1%. the cac in france is down by .8% and in greece the market down by 3%. overnight in asia you saw there were green arrows. moderate advances when it came to the nikkei which was up by about a quarter percent but the shanghai was up by 2.5%. that's where we have seen much more volatility. wpi is up by three quarters of a percent. that's a gain of 45cents to

61.46. the ten year yield yesterday was back above 2.41%. that was the highest in two weeks. yield giving back some of that today. in terms of the dollar yesterday, the euro tumbled against the dollar. down at 2.5 week low. this morning the dollar is giving back some of that. the euro is at 11209. dollar-yen at 12376. if you check out gold prices you'll see at this point they're up slightly. 1,000, $178 an ounce. now to the ground in greece the latest on the debt negotiations. what's the story? it does sound like thing versus hit a bit of an impasse at this moment. >> i would hold off. a lot of this is noise. we know which creditor they're

talking about today. the imf doesn't like it as part of the description whether it's in east asia or in other program countries they do not like tax increases for corporations and tax increases for wealthy individuals as well and that is part of the remedy to avoid cutting pensions and that is going forward and they're saying we don't like this. this is a real problem for us and we want you to have a look at your numbers again. the problem is the further he goes to the center and taxes the rich on this before he actually cuts numbers elsewhere the more political trouble he runs into not even with the creditors but he's got so many problems in the parliament behind me later today because they hate this deal. i have spoken to new democracy and in order for them to say yes

we'll back this deal they want him to drift to the center. what happens if he drifts to the center? he loses support from his own party and he could lose his coalition partners and his own finance minister as well. aparentedly and i've heard it from more than one course he doesn't like this deal as well. he is giving in too much to the austerity merchants of the creditors and thinks he has gone too far which is part of the second bailout package and the other thing he really wants, he wants language that talks about debt relief going forward and the creditors, the germans, the imf and everybody else said you're not going to get that language about debt relief until you agree to the terms and get it through parliament. this is interesting as well because the german versus really turned it a little bit more and said we want you to get it by parliament quickly. very quickly. not only if we get a deal today but you have to get this through by sunday because they meet on

monday and tuesday and we're going to ratify it only if you've got your house in order in greece as well. so the traps are everywhere. they have laid another trap. this is very interesting. they said would we back it? i lost swo very senior members and they said we would if he asks us for our help. that is mitt cal suicide for them and two members of parliament have said to me today and i'll leave this as my final point, do not discount the prospect of another election this year already. that says to me this crisis goes on and on and on. >> that also says that any terms of any deal would be hard to be believed if you can't even get coalitions within your own home to do this because there were deals that were set in place before that get tossed out every time there's a new government that comes into place. if you're in a situation of cutting terms of a deal that you don't think can necessarily keep the party in play that

basically means that we know that this is just space saving at this point. that nothing that anyone tells them can be believed. >> i've been coming here since 2009 doing reports for squawk box and they promised to reform this country. they promised to get rid of the corruption. they promised to get rid of the ex excessive state and not enough of that has happened and in the meantime he's been very competent with the creditors and hasn't done the clear actions and he still has the problems. growth was going to pick up this year. it's going to be zero at best this year and they still have this mountain of debt. over 300 billion euros. when you have massive debt and no growth you can't get your way out of it so those issues are not going away even if they agreed to a deal in brussels. even if these guys behind us

agreed to a deal in parliament as well they have to enact it and that's the hard part as well and the prospect of another election in greece they're rising by the minute. if he has to go to the center he'll lose his majority and the left wing of the party and lose the independent greeks as well and that creates a field day for the other parties as well and could mean years and years of debate and greece remaining in the mire. in the meantime i haven't mentioned this yet and i know michelle has been talking about it as well in the meantime the ela is coming from the ecb and is coming from the creditors is pouring money into the banks here because the greeks have taken their money out as fast as they can. 45 billion euros in the last 6 to 7 months and ela had to go up to nearly 90 billion euros. no wonder they're getting frustrated. >> i'll ask you another question. we're short on time but we'll check in with you later today.

thank you. >> round and round and round it goes forever, this whole greek thing. headlines from greece dominate the markets but next week the focus is going to turn to jobs. here to put things in perspective is the head of the u.s. value equity team and ed campbell. let me ask you to put this in some form of context. how much should people watching care about this whole greek thing? >> well you have to care about it because if greece stumbles out of the euro zone we'll see significant market repercussions. that being said the market reaction on monday was overoptimistic. it's pretty clear that we're still negotiating here and that we're unlikely to see a deal close sometime this week. >> let me throw this to you. i would like to propose the idea that i can completely ignore greece over the long-term.

>> it's a very human story it's a political story it's an economic story. at the end of the day it matters this much to macro global outcomes and this much less to u.s. outcomes. >> you're right. the greece economy is about two or three times the size of louisiana and if you want to trade off greece you better be ready to trade every day and as an investor i don't think that's what you want to do. you see people trying to put themselves back and forth. if anything especially in the u.s. focus on company fundamentals. back to the way you're supposed to. >> let me stick with you on this idea. give me an idea of something that animates your thinking about the next six months in investing over 2015 and then give me an idea for the next couple of three years of something i can bank on. >> sure. i refer to the longer term over

the next six months. i still see the focus on yield which i understand if there's no yield anywhere. the u.s. at 2.4. spain was around 2.4. maybe less. people going into equities. i still think it's a crowded trade. the trade for yield and then don't be afraid to go to the unpopular places. the big banks still look attractive. there's opportunities in tech and a lot of that stuff really isn't tied to greece. the banks a couple of years ago -- >> were tied. >> yeah. anybody not out of greece deserves to be punished. >> it looks beautiful there. >> it sure does. >> what about you. the next six months or so -- >> i want to respond to some of the things that were said about greece. so i think it's a matter of time horizon. we'll have chaos for a week or two but krur penneeuropean policy makers will step forward.

it matters most to greece and european equities and matters less so to u.s. equities over the longer run. >> what about something for the next couple of years? the longer term investment horizon horizon. >> we still like stocks. they're the place you want to be over the longer run. we have pulled back on our positions earlier this month in terms of our overweight but we're still overweight stocks. the types of gains you're likely to see are likely to be pretty tepid because we're dealing with anxiety related to the fed. we'll have pretty weak earnings growth this year but ultimately things get back on track next year and you see more robust earnings. >> you're going to cash for some of your investments. >> you're all in it sounds like. >> i'll always all in. >> you have to be. >> but looking at it historical

terms don't look that cheap but relative to bonds, equities are really cheap. >> for the next six months i would recommend u.s. high yield bonds sporting yields at 6.4%. so i think you're paid for the risks that you're taking on in that space and i think they're likely to out perform he requestequities. >> how much of a challenge will rising wages represent? >> that's likely to be an issue. we're looking at margins that are very high. i think it's finally here and i think it's growing faster than what we're seeing in the average hourly earnings data. if you look at the eci up 2.7% for the quarter. if you look at the survey data like the compensation index, that's growing at a rate more

consistent with 3 to 4% growth. >> your outlook on the fed for the rest of the year? >> don't fear the fed. we're in such a low interest rate environment and the fed is like greece. people get overly focused on that and they take their eye off the ball. >> thanks for joining us this morning. >> boeing announcing that the ceo is stepping down as of july 1st. his replacement is the current president and coo a 30 year veteran of the company that started out as an intern in the 1980s. >> carter thanks for coming in today. >> thanks for having me. >> while we know that boeing has a mandatory retirement age of 65 this still came as a little bit of a surprise to some

people. >> in general the street felt that year end would be the timing but i don't think this is as much of a surprise. they had more of a year of transition time working together with him being in chicago so although it's faster than we expected i don't think there's a lot of shock here. >> what do you think. >> he is a different choice than jim. he came from the outside. he came from 3-m and ge before that. he has been with the company for a long time. he's an engineer by training. he made a reputation for himself inside the company as a cost focused manager so he's a bit of a different kind of choice but he's very well seasoned and well liked. he's a high energy high enthusiasm type of guy. >> if you looked at the stock it was trading in the 50s and 60s.

now $144 so anybody on wall street applauds what he has been doing. what does he have to do at this point. does it stay the same or are there changes that need to be put in place? >> it's a different era for the company than when jim took over. the stock was down significantly at that point in time we went through the financial crisis but the company made their way through that. i think dennis inherits a very great situation in terms of where the company is today. they have several very profitable platforms. they have been the most comfortable they have ever been in their history. that's a great situation to be in. >> the history of boeing is one of ceos who have made big bets. >> yeah. >> right to the edge. is dennis a guy that you think

is going to make a big bet on revolutionary aircraft? >> the good situation that dennis found himself in is he doesn't have to make a big bet. the big bet that the company made in the last decade was the 787. they'll probably spend $50 billion on that. >> you don't think they need to make a new bet every decade? >> i think they do. i agree with you. >> i agree. it has the 797. >> where is the company ten years as a result. >> i would actually disagree. i would say that the major push back on boeing as an investment over the years has been despite the fact that the company has been a great secular grower they reached too far out on that technology curve to try to deliver the last bit of efficiency and technology and they don't necessarily get paid for it. that 787 teaches them a lesson. >> not to go so far. and to get it -- >> you're saying no personal jet

craft for me. that's not going to period happen. that's what i'm waiting for. >> are you suggesting that innovation in the airline business, if you will is now at least temporarily halted? i mean airbuss have a disaster of an experience trying to innovate. boeing, i wouldn't call it a disaster, it's been a success. >> is that what you're saying? the 380 disaster? >> is there a more polite way to put it? >> no both programs were not value creating platforms although they did push technology forward. i think what both companies learned as a lesson from those introductions was maybe we don't have to go so far out on the technology curve where we don't get compensated for it and as a result the products they have chosen to release this decade are about redoing aircrafts. >> what's the next big thing going? >> i think higher profit.

higher profit -- >> you're boring. it will be revolutionary. >> the big story in the mainstream media has been the tight attendants that put this wall street charging that boeing knew about potential dangerous leaks of poisoned air. the air gets refiltered through the engine system. at least in everything up to the 787. >> yeah. >> is there a liability with this? how big of a problem do you think this could be? >> honestly i don't think we know at this point. it's not, you know our normal sort of area of expertise but we'll watch with interest. >> can i ask you like a weird customer question that maybe relating to the thing, you know when you get in plains sometimes and the air is like misting -- do you know what i'm talking about? >> yeah humidity. >> is that just con sen dags? >> no. >> they're not spraying everything in. >> i hope not. >> it's not as try when you get

in these planes now. >> thank you. >> thank you. appreciate it. >> coming up how ford says it can help you -- >> it's condensation. >> sometimes there's a smell to it. >> like a perfumish kind of smell and i was wondering if they were doing something. >> guys what did the fill in anchor do at this point? cut andrew off? >> coming up how ford says it can help you make money from your parked car. but first a stock to watch. home builder just out with earnings beating estimates on the top and the bottom line as new orders jump 18%. now as we head to break, here's a look at this date in history. automotive innovation starts... right here. with a control pad that can read your handwriting, 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. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

kids are expensive. so i'm always looking to get more for my money. that's why i switched from u-verse to xfinity. they have the most free on demand tv shows and movies on all my devices. it's perfect for me because my kids are costing me a fortune. i'm going to cabo!

[ music plays ] don't settle for u-verse. xfinity is perfect for people who want more entertainment for their money. welcome back. ford announcing new car sharing programs with u.s. and u.k. partners. the pilot program will let owners and vehicles rent their cars to prescreened clients. this test will launch in three california cities as well as in chicago, washington and portland. phil will join us with more later this morning. >> the biggest names in advertising gathering in france this week and kayla is there. >> good morning. all the heaviest hitters in the tech media and advertising world

descend upon the south of france for this week. it has been focused on the way advertising and social media have shaken up the way a lot of these companies generate their revenue. twitter has been increasingly in focus because of the attempt to get it's groove back as well as the fact that the company's product pipeline had slowed. adam is the president for partnerships for twitter. back then it had basically no revenue and he set up a card table on the beach and took whatever meetings they could. now the company has $1.4 billion in revenue and they have a client suite with vine periscope and all the products

that twitter has to offer beyond the traditional news feed and of course people are wondering where the company's product pipeline is going especially as the company seeks a new leader but he told me yesterday in an exclusive interview that morale as a company is strong. >> he had been at the company for about six years and now leaves the company in a strong and resilient place. the team actually is very focused on the products that we have set ahead. when i look at the pipeline it's absolutely incredible and we started showing the marketers here what is coming and the excitement that you feel in the room when we show them what's coming is just palpable. >> that's an important note to make because investors have often mentioned bain as one of the preferred internal candidates for that ceo job that was vacated and jack dorsey will be interim ceo as of the

beginning of july. he was diplomatic and said he's focused on doing the one thing he knows how to do at twitter which is scale the company's revenue but his name continues to swirl as that parlor game continues we heard from them who yesterday unveiled a richer format for that company's add and we spoke to the head of advertise advertising and here's what she had to say about the power of new media coming to facebook. >> we think the mobile video will be more significant than the first mobile revolution was for facebook. we're seeing such increasing adoption of consumers spending time looking at videos. 4 billion video views a day.

>> that's about 2-thirds of what youtube does. we'll hear more in our exclusive interview as well as what google has to say about that coming up later on squawk on the street and squawk alley. and we'll hear from the co founder and ceo of vice media. for now we'll send it back to you. >> thank you for that we'll look forward to those interviews. >> we weren't going to pass this one up. >> i wouldn't either. when we come back we'll talk about gmail's undo. all the solution to your e-mail regrets. but first as we head to a break a look at yesterday's s&p 500 winners and losers.

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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 everybody. we're in chairs. steve liked that music. not me so much. we have all done this right? raise your hand if you have ever been in a position of e-mailing the wrong person. >> questions and veryyes and very embarrassingly so. >> do tell. immediately afterwards you

realize you sent it to the person you were talking about instead of the person you meant to send it to. >> or writing something to a person you wish you hadn't sent. >> i've had that happen. >> gmail is now coming out with a new feature that will allow you to unsend it. it's a delay of five to 30 seconds. you could set that delay yourself but it gives you a little bit of extra time to rethink what you have done. >> i would set it to 30 sexd. >> i tried to do it last night and couldn't get it to work. you're supposed to go to settings and general. >> scrolling about midway through the general tab. >> i don't know if it's just for the public consumer version. >> can i rain on this parade a little bit. i've had this feature on my galaxy s 5 for over a year now. >> and. >> i use it all the time. >> i think i have delayed it like five seconds and what i

basically do is like i'll see somebody call me and i forget to put my phone number on there and there's something about hitting send that triggers that but what everybody needs to learn is not to send that e-mail. >> save you from yourself. >> that's true but the other one, the tirade that you write when you're angry, one should learn not to send. >> by the way, microsoft outlook has had this feature where you can pull back an e-mail but all it does is alert the other person but there's times when your sending mission critical styling. like you're trying to get a quick e-mail to somebody because they just sent you something back. there's like a chain going on. >> that cub frustrating. >> and now if you put it on to the 30 second delay. >> perfect solution perhaps.

>> i'm going to talk about sex. >> please. >> this guy is the gift that keeps on giving in terms of news. the ceo or former ceo of american apparel you'll remember him very well he is involved in this crazy defamation suit with aamerican aparallel. they found that he was not only having sex with employees and models but he was video taping all of this and not only was he video taping all of this but he was kind enough to save it to the company's servers, so you know that's what is going on in corporate america. >> so all the employees could see it and other people can see it? >> no but apparently that's where they found it. there's a whole back and forth going on. >> isn't he contesting something about this? >> he thinks he is in the right and he of course got kicked out of the company unfairly and unjustly and there's a whole back and forth going on but they

discovered this. >> but you have no larger point. you just brought up sex for the sake of bringing up the sex thing. >> pretty much. my brain goes to the gutter. >> i have one as well which has nothing to it but this is great. >> i consider it a business story. i want to be on the record saying this is a business story. there's a ceo and money involved. >> so they're building a replica of the seinfeld apartment on west 14th street. >> why? >> i did that just so they would bring up the baseline. it's to mark the launch of the series of hulu which i'm sorry brian roberts and steve burke, i don't know if we have an interest anymore. >> we do. >> i'm supposed to know this. we have an interest in it so let me just point that out. it's premiering on wednesday and i don't know why this hahn been done before but they built it with the couches and things you can touch like the blender and

all of these other things. >> you can actually walk on in. >> you can do a cramer entrance there. >> that's great. >> is it permanent or a pop up? >> it's a pop up. >> would you have had that couch in your apartment? >> 15 or 20 years ago when the show was on the air. i can imagine that being a huge tourist mecca. >> i would think so. i used to go to tom's diner when i went to columbia before it was on and you couldn't get a seat there afterwards. >> you also wonder whether or not -- how popular seinfeld is going to be. >> as an on demand feature. you flip it around and land on it. it's great. if i've already seen the episode would i. >> i was living in russia and i

friend of my wife's used to send it over by video tape. that's how i watched in the 90s. >> when we come back from facebook to netflix, what he's doing with this year's high flyers. check out shares of netflix up more than 100% since the start of the year. right now as we head to break take a look at the dollar.

kids are expensive. so i'm always looking to get more for my money. that's why i switched from u-verse to xfinity. they have the most free on demand tv shows and movies on all my devices. it's perfect for me because my kids are costing me a fortune.

i'm going to cabo! [ music plays ] don't settle for u-verse. xfinity is perfect for people who want more entertainment for their money.

>> netflix announcing a 7 for 1 stock split after a big rally leading the individual joe streaming service to be one of the priciest stocks in the s&p. we'll talk about facebook as well and the new high flyers from rbc capital markets who is an analyst there. one of the best. it's nice to see you. i want to talk about netflix and also facebook does this make any sense to you. >> both of them are at all time highs that were hit yesterday. so first netflix, why is the stock moving as well as it has? one the stock got oversold at the end of last year. they had a miss on the quarter. you beat quarters stocks go up. new international launches planned for the back of the year. u. is profitability levels continue to rise and they'll add

more sub skiebscribers this year. so the fundamentals look extremely strong. >> you buy the stock still? >> yeah. it depreciated 80% and we took it off of the top buys list. we've done a lot of work. customer satisfaction levels continue to rise. >> what do you think this company is worth? on what valuation me trick are you using to get there. >> they have a very profitable u.s. business and earnings are depressed so they have taken the approach to it. you can put a 30 or 35 pe multiple on almost 30% earnings growth which is reasonable for the u.s. market and then you have to do a price to sales multiple but if you prove the home case, if you prove it can be profitable in the u.s. market you'll give them credit. >> what kind of pump do you get out of the stocks in. >> i think we had it. it's irrelevant to fundamentals for the company. >> let's flip over to gookfacebook

hitting it's all time high. i don't know if you saw the tweet pointing out our friends at barons had a great cover. facebook is worth $15 -- actually less than $15 was their opinion and he writes the good stuff. how wrong they turned out to be. >> once they figured out mobile which is where all the dramatic growth has been then the stock deserved to go higher. it hit the all tile trade higher yesterday. then there's the rift coming out of the e-3 conference last year. we're starting to see more ads with an instagram. that could generate 2 million for the company next year. what's the theme? mobile and video. facebook is probably the single best off that trend. >> we're seeing facebook and instagram try to go after

twitter. will they be able to take on twitter and how do you think about twitter these days? >> we haven't recommended a stock in quite sometime. there's too much wood in terms of fixing the product for users and advertisers. if one can take out the total adjustable market it's more likely facebook taking out twitter than the other. >> does instagram become the modern day twitter? we're in the modern day. >> but there's a possibility. look at what facebook is doing. they're integrating more and more news feeds into their news flow. there's the possibility that the communications, the news the information, usefulness of twitter could be by facebook. it's much greater on the flip side. >> my band advertises on facebook. we tried to do it on twitter. we can't figure out how to do it. >> the logistics. >> it's complicated.

we don't know how to target. we can target people within ten miles of the bar we're playing at that like the grateful dead. we don't know how to do that on twitter. we even had a guy take a course in it and he doesn't know how to do it yet. it's not possible and there's a lot of people small businesses that would like to be on twitter but the interface for advertising is very complicated. >> right. >> and for users it's not right brained enough. why do i have to limit myself to 140 characters when i want to post something on twitter? when i want to make a comment? that's a company that can't get out of its ways. it needs to expand. a lot of people have opinions longer than that. there's basic user changes they need to make to broaden their audience and they doesn'thaven't done it. >> thank you for coming in this morning. >> coming up, a penny for your thoughts. five things you didn't know

about money from the author of a hot new book called coin. first as we head to break, check out the price of oil. stay tuned, squawk box will be right back. ♪

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>> mortimer, we're back. >> so you think you know money. well, our next guest has written a book about it and we're going to do this in a fun way. we're going to do five things almost no one knows about money. joining us is the author of the new book "coined: the rich life of money and how its history has shaped us." you started out to write a book about the financial crisis and ended up writing the history of money. >> that's right. i started working at jpmorgan just months before the credit crisis began. i couldn't believe what was happening. i wanted to know what was happening -- >> hold on. you left out the best part. you almost came this close to working at lehman. >> i know, i know, i know. i chose jpmorgan based on office location. silly decision. i was really shocked at what was happening on wall street. so i wrote this book i traveled to 25 countries researching for four years. it culminates in "coined."

>> there's a lot of stuff in it. we're going to boil it down to the most interesting stuff here. first thing you didn't know about money. money is filthy. how filthy is money? >> money circulating in manhattan is particularly bad. they found 3,000 microbes on it. resulting in staph infections and acne. 4.5 billion dna markers, traces of dogs horses even white rhinoceros. >> on cash in manhattan. >> that's the best argument for bitcoin i've ever heard. >> well there's a whole section in the book about the future of money and how there may never be money. about a pay chip in people. >> we're already implanting pacemaker technology why not a payment device? >> a pacemaker serves a purpose you can't get by without. money -- >> old on becky. i want to pick up on that.

that's a huge part of this book. the idea -- and all my hippie friends are going to be bummed by this. the idea that money is an artificial thing. you make this argument that money is simply an outgrowth of an evolutionary process of creatures. it's natural. >> i went to the galapagos islands to study money. energy is the currency of nature. what is the first type of money that gets traded? salt. money when you boil it down gives us the calories we need to survive. >> so at the gets to -- i want to skip to one. number three. money is like cocaine. stimulating parts of the brain the same way that it does. >> they look the same to the brain. the part of the brain that activates is a neuroeconomist. i brought one to wall street and

introduced him to hedge fund leaders in of the world. they wanted to know how to use brain scans. neuroeconomics is going to be the next province. >> but cocaine shows up on money too. >> it does. >> that was not such a stretch. but the idea that the same parts of the brain are stimulated as cocaine from money, it shows there's this internal natural process. >> it gets us excited. they've showed men pictures of naked women, dead bodies and money. what gets the most excitement? money. >> all right. number four. touching money numbs your pain. >> it does. actually in one study they asked people to count 80 pieces of paper, blank pieces of paper. and they asked people to count 80 $100 bills. if you touch the money, you report getting less pain after

putting your fingers in scald b hot water. >> we did number five already. money is more exciting than naked women. i would debate that but who knows. and this whole section, money and religion. how much of religion the new testament deals with money. how much of hindu culture. all religions have some aspect of money. religion created almost as a backlash against coinage. >> you look where money was invented around the world. greece, china, india. that's where organized religions spring up. >> you're a renaissance man. >> thank you. >> you did a jazz album, you've written children's books. this is a great accomplishment. >> thank you. >> and we didn't talk about the $10 bill. we'll talk about that in the next hour. come up this morning's top stories. beat the heat and june swoon. chief marketing advice. as we head to break, check out

the futures. we are back in a moment.

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deal in doubt. prime minister tsipras says international lenders are rejecting the latest proposals as a step toward the greek default continues. a live report straight ahead. netflix announcing a big stock split. facebook an all-time high and amazon crushing it this year. and the governor of arkansas joining us to tell us how he plans to bring tech high fliers to the heartland. and is it time for a quiet riot? ♪ come on feel the noise ♪ ♪ girls rock your boys ♪

>> no not that kind. this is the kind of quiet we're talking about. ♪ an introvert. less head banging. more listening. the second hour of "squawk box" begins right now. ♪ live from the beating heart of business new york city, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin along with becky quick and steve leisman who's in for joe today who's still on his european vacation. meantime, let's tell you about the top stories this morning. jim mcnerney is retiring. the current coo is going to take

the helm. mullenburg started 30 years ago as an intern. we'll have a report in a couple of minutes. meantime netflix is on the move this morning. planning to split its stock seven for one. and shares have been red hot, doubling 100% up now since the begin og the year. another tech mover, facebook hitting an all-time high. this after the social media giant kicked out walmart from the top ten u.s. companies by market cap. then there's the nikkei breaking through an 18-year high. reaching levels not seen since the 1997 asian financial crisis. let's check out the futures at this hour. we've been watching what's happening. after i think five out of the last six sessions the markets have traded higher. this morning you are seeing some red arrows. this is coming with the dow down 40 points below fair value. the s&p futures down close to 3 and the nasdaq off by 6.

it's due in large part to the ongoing drama in greece. a lot of the headlines that have been coming out have shaken the markets. for more on this let's get to steve sedgwick. he has been following what's been happening on the ground. he joins us live from athens with the latest. steve? >> yeah becky, thanks very much indeed. i know the market only deals with binary ones and zeros, but there's something much murkier going on in brustbrussels. since i have been coming to athens, various governments are not going to get that in the next 24 to 72 hours. tsipras has got to go to see the creditors who we know now amongst those creditors are having their own disputes. the imf is holding out. they don't like the terms. they don't like the tax increases. what they want to see is more public sector spending cuts. but the problem for tsipras is

there could be a citizen note to his party. other parties including the new democracy which formed the previous government before february. and i spoke to one of the key members of parliament for that group to ask him what he thought about the deal. listen in. >> it's the wrong plan. it's a left mou. so is we are completely negative. if we arrive at the point where no alternative is given, the prime minister decides he desperately needs to have votes to pass that of course we're not going to leave the country backdrop. a. >> now, he is a former minister. he's a bit of an important player. he comes from the far right but mellowed over the recent years and moved to the new democracy which is a right party still, but he just doesn't like anything about this deal from tsipras

tsipras. he says it's wrong for the country, it's taxing the rich and the companies exactly the people who need to be encouraged to spend money in this country as well. he said it's a left mou which is a mem renorandum of understanding. he said this is a leftist plan to push their own agenda. possibly he was saying to push the country out of the arms o the eu and perhaps go towards the likes of russia. that's what he was saying to me this morning. because he thinks this is more about a culture than anything else. and rejecting what is going on in the european union and integration with the northern partners as well. it's interesting talking to him as well because if tsipras has to go to the center rather from the left and stalk to parties, he's got to ask them to join him in symptom form which will get this through the greek parliament. if he has to ask them he's going to lose people on the left of his own party.

he's going to see a split with the coalition partners. and he's going to see a split as well. this is fraught with difficulties. in the parliament here beyond as well. back to you guys. >> thank you very much. joining us right now to set the table for what this means for the market day ahead a kate moore. she's from jpmorgan private bank. thanks for coming in today. >> thanks for having me. >> we've been talking about greece kind of ad nauseam. but you still have some cautious optimism. >> i think you have to have cautious optimism. one thing that's frustrating is that greece has been dragging this out now for over five years. and now everyone just expects it will have no market impact. i worry a lot about what the sentiment impact is going to be on businesses across the entire eurozone if greece continues to push. a little bit softer than people had expected. and i think it's going to be difficult to quantify the

sentiment, but i worry the longer this goes on the more of a challenge it'll provide to european recovery. >> just in terms of businesses not knowing what the rule of law is or what the rules of the game are? >> if you don't know what it's going to look like three years from now, how are you thinking about hiring new people or really, like you know engaging forward-looking investment plans? i think we have to be thoughtful about this overhang what it might mean for lots. >> meaning if this gets kicked down the road once again and we are still looking at kind of just pushing this off and not dealing with it you think that's a bad result in itself? >> i do. i think the sooner we have a resolution, we can all kinds of move forward. it's not we don't like european equities with but i do -- >> steve has argued you should look past greece. right? we've had so many people come on the show but you made the point in the 6:00 that you should forget about it. that it's irrelevant. >> i just don't see it.

i think that everybody's been preparing for this. that sensitive areas are walled off from it. and i think a lot of the risk subsides with the government institution at this point. i don't think we care if they take losses. those don't matter a whole lot to us. and anybody who gets punished from greece deserves to be punished. i don't mean me people of greece -- >> but at this point in the cycle you should know the kpanss you'll experience loss is considerable. i would say that's reasonable. regardless of whether or not there's a resolution in the near term, europe is a buy. if there's a dip, it's a buy. if there's resolution it's a buy. one thing i worry about is that's a very consensus call saying that european equities without question are going to appreciate faster than other markets. we want to be a little bit more

thoughtful about our allocations and staying on the higher quality side. >> in terms of china there, you like what you've seen there. >> i do. there were points of it where that view is quite unpopular. this year it turned out to be quite profitable for us. we're overweight emerging markets. i think china ran a little too far too fast. we know the story about the flows and the technicals. but one of the things that we were really launching was how much institutional investors were participating. and for global institutional investors. either global mandated or global emerging market mandated. and only very recently have we started to see them dip their toe in close underweight, get to a neutral position in china. that means if the fundamentals are okay on the earnings side as well as the macro and we continue to get policy support, i think china and emergeing can do well. >> what about the u.s. market. >> like the u.s. we started 2015 saying u.s. equities needed

to be earnings driven. i'm surprised we've seen multiple expansion we have so far this year. but i really am going to be watching like a hawk everything that comes out in the second quarter from earnings. and really using that to drive our allocation in u.s. equities for the balance of the year. >> where are you? overweight? underweight? >> we're overweight. we have a quarter of equities in mid-caps. they've done well on the earnings side. >> because of the dollar? >> a little bit from the dollar. but i think, you know not even mid-caps or small caps are as cushioned from non-u.s. sales as they once had been. everyone's global everyone's part of global supply chains. we really like the quality of the earnings we've seen across. >> so the news today is that the trade pact looks more likely to pass. that would be good news based on what you just said? >> i think that's good news for the economy. i think trade in general is very good news for growth. and we actually have a very global equity allocation.

i think this will benefit a lot of the regions we're invested in. >> does this matter? >> we think the fed should feel comfortable lifting off in the second half of this year. i know there are people who are concerned about inflation. looks to me that the labor market is strong. we're hearing from our clients that there's actually a very tight labor market in many different industries. they're having trouble finding really qualified people. that's actually a very good sign. plus the rate and the amount of flexibility people have in their job opportunities. and the amount of entrepreneurism in this country i think is really exciting. >> thanks so much for coming in today. >> thanks. as andrew mentioned, boeing announcing ceo jim mcnerney is retiring. the giant naming a company veteran as a successor. cnbc's phil lebeau who knows boeing better than anyone joins us now with more. >> steve we've been expecting this transition at some point,

well, in the second half of this year. the fact it's just been announced, i think wall street generally is going to look at this and say sooner than we expected but we're ready for jim mcnerney to pass off the baton to dennis mullenburg. july 1st is when he will step down. he will remain chairman through february of next year. this ends a successful ten-year run for boeing in which the stock was up 120%. when we talked to mcnerney last night during "fast money," he said he thinks they'll take this transition in stride. >> i think what the analysts are really looking for because i think most of them think we have a winning hand the company's been doing well the future's bright. if we execute, i think the source of reassurance that they

can draw on is that we have crafted that strategy together. >> the we he is referring to is himself and former coo or current coo who will replace him as ceo, dennis mul inglenmullenburg. he was coo from late 2013 all the way to now. now he becomes the tenth ceo of boeing. last night we also had a chance to talk with mr. mullenburg. we asked him about what he expects to change if anything, once he takes over the top job. here's what he had to say. >> this is really about stability and confidence in our path forward. we are well positioned as we head into our second century as a company ramping up our commercial airplane business growing our fence business internationally, and we're investing in productivity and innovation for the future. so we have a strong strategy in place and we're going to continue to execute that with pace and confidence. >> and that's the message we

will hear from boeing not only today as wall street starts to digest this news but over the next couple of weeks as dennis mullenburg takes over. take a look at this stock under the tenure of jim mcnerney. up 123%. guys i want to take you back to 2005. remember when he came in there had been a couple of scandals that led to the two previous ceos leaving abruptly from boeing. this was a company a lot of people looked at and said what are you doing here? you've been on top for so long. jim mcnerney righted the ship. and i think most people on kwal street will look at his tenure and say there were a few bumps, but generally speaking extremely successful. and that's why i think they're looking at this and saying we knew dennis mullenburg was going to take over and we're confident with that transition. >> phil we had an analyst on in the last half hour who said mullenburg is not the guy that's going to make a big bet on a new airplane. he's a guy who's going to make

extremely profitable the existing operations of boeing. what's your take on that? >> i agree with that. i agree with what copeland said. i heard what he said to you guys. dennis mullenburg is not the type to come in and say let's go for a moon shot from here. he's going to be very measured very deliberate. he sees the path that boeing is heading down right now in terms of squeezing out costs from the existing lineup of aircraft that the company is building. and increasing profitability. one other thing, guys boeing doesn't need to make a moon shot right now. yes, it's got the 777-x and the bridge to the aircraft. they also have a replacement for the 757. but they don't need a come up with a dreamliner right now. that dreamliner look how far it extends into the future. you're looking at 2022 right now. >> i don't disagree. my question is may be great for the company in terms of profitability. but when it comes to innovation within the airline business do you think boeing is going to be

leading that? i mean airbus has basically stopped too. >> yes. i think that they will be leadsing it. but i think we're in a period here as carter copeland mentioned where they're going to be stressing profitability and driving efficiency out of the current designs. there will be innovation. will it be the type of innovation like the dreamliner where they're going to say we're moving the benchmark all the way up here? i don't think so. i don't think that's in the forecast for boeing over the next five or six years. again, there will be innovation but we won't see the moon shots out there. >> no warp drive, no personal aircraft, no nothing. all right, phil. thanks. >> you are not a boeing customer. >> i am. i fly boeing. >> you fly on boeing airlines that were bought by their actual customers. >> okay. coming up when we return giving introverts a voice. we have the leader helping companies tap the power of those considered too shy. and we're going to talk about the housing bubble and go

housing bubble hunting. more data pouring in. plus we have the arkansas governor joining us on his state's plan to create tomorrow's leaders in tech. and later, biotech high flier working on ways to treat cancer. we've got the ceo of kite pharma with us. "squawk box" beginreturns in a moment.

welcome back to "squawk box."

what do tech pioneers have in common? well, they're all introverts. and usually they prefer listening to speaking yet they're often overlooked in our culture where being network savvy are prized above everything else. our next quit her job to pursue this quest. she's author of "quiet: the power of introverts in a world that can't stop talking" and her ted talk is one of bill gates' favorites. now she's started a company to help businesses cultivate the potential of their quieter employees. susan cain is the cofounder of quiet revolution. you are not quiet though. >> i am. >> maybe you started quiet, but you're not quiet anymore. >> no. you know i think this is the great misunderstanding that when we talk about introverts i think people imagine we're talking about a hermit living in a shack at the edge of the

woods. but we're really talking about half of the population. so we're talking about people who are out there working alongside you but they get their energy more from working on quieter projects and being able to put their heads down and focus. >> and so your idea though is not to tell corporate leaders or tell introverts rather you need to be louder. it's actually trying just to harness the energy and power of introverts introverts. >> exactly. it is to go in and help companies harness the talents of the quieter half of the employee population. because it is half. and it's also to help introverts and extroverts on teams to help understand each other and have more mutual respect. >> so what does that mean though? how do you harness the introvert? >> well, a lot of it is giving people the quiet time they need to really focus on what they're doing. giving people breaks.

and really having people start to open up dialogues where they talk about what is the way that we like to interact? how do extroverts like to interact? how do introverts like to interact? and how can our communications be better if we just understood one person wants to go in their office and put their head down before they come out and talk with their colleagues. >> how much of this is about quieting down the extrovert? >> it's a bit of both. introverts sometimes have to stretch out of their comfort zones, right? public speaking let's say. and extraoverts have to do a bit more listening. >> does this have a gender thing? >> it's true for men and for women. it does tend to play out a little bit differently for men and women. but their issues are very much the same. that's a great question. yes. so psychologists have -- >> i feel like -- >> you feel like you're in the middle? >> yeah.

>> there's a term abrovert who is in the middle. >> what about people who start as introverts that become extroverts? can you change? >> you know people ask me that a lot. what's really happening is people gain skills. people think an extrovert should sit and focus. and the introvert should network. but your underlying preference for where you get your energy that doesn't change. that's what companies need to understand. we've been working with companies like procter & gamble to go in and raise awareness and give people the tools they need to thrive. >> thank you for coming in this morning. >> thank you. it's been a pleasure. >> congratulations on the book and all you're doing. >> steven strikes me as an ambrovert.

>> most comedians tell me they're introverts. >> yeah. >> thank you. coming up arkansas governor asa hutchinson on his state's plan to breed the next mark zuckerberg. but up next, one for the highlights. a dad gives new meaning to multitask. ah! aflac? aflac! i thought you said this guy was the best? oh, he's a horrible stylist. gah? but he's the best at paying claims fast! really... mmhmm. paid mine in just one day. one day? yea. aaaflaaaac! in just one day, we approve and pay. one day pay, only from aflac.

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check this out. last night's dodgers/cubs game. jason hammel pops one up. dodgers first baseman comes over to make the play but a fan holding a baby reaches out and makes the grab. upon further replay review they called the batter out for fan interference. >> fan interference. if i'm the mom, i would smack him. do not put my child in harm's way by reaching out to grab a ball. >> yeah, he's in the field there and he needs to not go for the ball holding the baby. >> yeah. >> little priorities issue there. i mean at the same time it's a pretty impressive catch. >> yeah.

>> and he did not drop the baby at the same time and didn't drop the ball. so, you know want to criticize him but also acknowledge the accomplishment. coming up when we return the latest retailer to pull confederate flag-related merchandise. plus why a group of americans are renting with not buying homes and they're paying more. first look at equity futures this morning. the dow opening 40 points down.

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welcome back to "squawk box" this morning. among the stories front and center shares of lennar getting a boost. beating top and bottom lines. also fantasy sports site draftkings will release funding from someone other than disney. disney was planning to invest $250 million. but now draftking wills still have exclusive rights starting next year. and chinese alibaba is the

latest retailer to pull down links to products displaying confederate flag imagery. it comes in the wake of last week's mass shooting at a historic black south carolina church. big morning for housing. whether you're buying renting, or looking for a mortgage. let's get to diana olick in washington. good morning diana. >> good morning. mortgage applications didn't raise much last week. up 1.6% week to week. revised rose 2% but that's off a low volume already. applications to purchase a home rose 1%. this is the average contract interest rate for 30-year fixed mortgages. fell to 4.19% from 4.22% for loans with 20% down. the numbers show growing strength in housing. as we saw this week from sales of new and existing homes. but again, while improving the housing market and home ownership overall, it's well below historical strength. it may not improve any time

soon. new news today suggests that rental demand will soar to historic levels. and it will not all be driven by millennials. households 45 to 64 have accounted for twice the share of rental households. also households in the top half of the income distribution, they contributed 43% of the growth in renters. really surprising new stats, steve. >> diana, thank you very much. let's get more on the health of the housing market with douglas duncan fannie mae's chief economist. good morning, doug. >> good morning. >> so is that it? homeownership down for the count? it's over? >> we don't think so. certainly our surveys of consumers don't square up with that. we do think we're in the later stages of a rebalancing between owning and renting. the homeownership rate in the decade of the 2000s got well

love the long-term sustainable level. and that's resetting itself. a lot of folks, of course had trouble, lost their homes. >> but hold on. because we've not only taken out the highs of the 2000s. if i heard what diana said correctly, we're back to 1990 levels now. >> yeah. >> so it's more than just taking out the high. >> it is. there's no doubt about that. we may break through the 60% range. demographics is the driver and the millennials are saying that they're not going to own today, but they do expect to own in the future about the same share of them say they want to own as previous generations. >> but i thought what was interesting about diana's report is people from the 35 to 64 range, these are generally the big buyers. but they accounted for a lot of the growth of rental. what's going on there? >> well demographics is barbell.

you have the boomers which at their time was the largest generation ever. they've peaked and are starting to drift downward as they age in terms of homeownership rate. the genx-ers -- and have yet to start to form households especially owning households. so the weight of that demographic shift is what's taking the homeownership rate down today. >> you know people talk about tastes and trends and demographics and stuff. i wonder if more of this is self-imposed douging with when it comes to what's going on in the regulatory world. fannie mae your employer and freddie mac, still unresolved. so the broader long-term housing finance issue in this country remains unresolved. you have all kinds of new restrictions from dodd-frank that seems to have made it harder. plus you have the fed from a

supervisory standpoint clamping down while federal programs don't seem to be all that successful. how much of this is trend and how much of this can be resolved and bring back some homeownership if we resolve the regulatory environment? >> last fall we took a message to the federal reserve, to the treasury department to our regulator. which was very specific. we said today demand weakness trumps credit tightness. that's not to say credit's not tighter. it's definitely tighter. and looking at the mid to late 2000s it should have been tighter. but the -- on the demand side, what we're suggesting is this demographic profile combined with the clear view among younger house olds that yes they want to own but they want to be in a position to sustain ownership. so that doesn't mean buying today. is the driver.

no question the tightening of standards has had an impact on the credit availability side. >> but you have people who have rising rents and they're throwing money. they have an opportunity if they were to own a home that could be gaining equity something that would be long-term for their retirement. you even had a story that diana did yesterday which i found incredible. people borrowing money to pay the rent. that's sort of insane right? >> well it is. i think your lennar results this morning give evidence of what's going on in the market. the supply of new homes and existing homes available for sale are significantly below long-term averages. so -- and with adding 3 million jobs last year and on a path to look at something like maybe 2.5 million more this year. with increases, the demand side of the housing market is starting to strengthen. and you're seeing in the orders in lennar the profits, the

house price increases that they're able to capture. the movement we've been suggesting will happen in the market. >> okay. the demographics should trump it all unless we screwed up with the regulatory side. >> ultimately. >> thank you. coming up will the nation's next tech titan come from arkansas? we're going to talk to the governor there. he's going to tell us why his state could have the competitive edge over the rest of the country. and innovations in medicine. the ceo of kite pharma on the next generation of cancer treatments. "squawk box" returns with all that in just a moment.

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today cnbc is taking the wraps off of our new top stage for business for 2015. last year arkansas was in the middle of the pack. it was tied for 30th. what brought the state down? well, education and innovation. two things the current governor is tackling with his push to make coding courses available at all high schools in the state of

arkansas. joining us now to explain his tech push is governor asa hutchinson. good morning. >> good morning. delighted to have the opportunity to talk about this. >> we were at 30 this year. i don't know what number we're going to land you at this year but explain what you're doing with coding how much it's going to cost, and when you're actually going to see the benefit. >> well the fact is that nationally only one out of ten high schools in america offer computer science or computer coding classes. we're changing that. in arkansas next year we'll offer it in 100% of our high schools across the state. we've mandated it to be off of legislation and we put $5 million to retrain teachers, math teachers, so it could be offered as a core graduation credit. with that incentive, we're hoping our students will be encouraged to take it. i've been traveling to different high schools promoting computer science education. and the fact there's over 1.1

million jobs that will be unfilled in our economy between now and 2020 in the computer science field. so this is about innovation. it's about providing the workforce of the future. and arkansas is leading the way. the first state to have this comprehensive computer science education program. >> you have companies, obviously walmart is the biggest. but tyson foods, dill lards. you say that coding is going to become part of everybody's job. is it going to be like learning a new language for everybody? broadly speaking. >> it is. and that's the message of whether you're in agriculture. it's a software that monitors how much water you put on the crops. in manufacturing, it's robotics. these have to be programmed but software. every field you go in and of course we have walmart, it's really a high-tech company in retail. you have dillards you have murphy oil as you mentioned. we have seven fortune 500 companies in this state all engaged in the tech arena.

and our workforce needs to be prepared for them. but it's also the innovators. we're trying to encourage the innovation hubs so we can have the next tech giant right here in arkansas. >> you're going to offer the program to all students. but how many do you think are going to take it and what are you going to do to persuade them to do so? >> great question. and my goal over time within the next four years to have 20% of our students take computer science while they're in high school and this will mean we'll produce 6,000 graduates that have ability in computer programming, that can change the economy. how do you get there? one, you've got to retrain teachers. and secondly we made it a core graduation credit. this is a math class or science class that can give you help toward graduation. those incentives really should inspire the students as well as the ability to get a job when they finish the course. >> governor while we have you here i'd love to wade into the

debate on the confederate flag. walmart has decided they will not keep it on their shelves. is that the right decision? >> well you know each company will make the decisions based upon their customer base. it's market driven but it's also sensitivity to the customers. i think it's certainly important that we don't have symbols in our society that are offensive to a segment and that arouse the racial division. and so i really am proud of the fact that we're focusing on unity, we're focusing on bringing people together. and i think really south carolina has been an incredible example to the nation in terms of faith and response to this incredible tragedy they've experienced. >> just to put a fine point on it. if you were the ceo of walmart, you'd take it down? but your personal view on this? >> walmart does what they need to do. i think that their decision make

makes some sense. but every retailer will make decisions for themselves. walmart certainly as large as they are being the number one retailer sets a pattern. i think it makes sense as a sensitivity to customers. but there's going to be a market place. i don't think government should be about banning products that even might reflect some type of speech. to some people it's history. to some people it's a symbol. so the consumers will determine that. there's going to be a marketplace out there, but walmart out of sensitivity to their customers i'm sure said no to that. they set an example and a high standard. and hat's off to walmart. >> governor what about the arkansas flag? i know it does not have the confederate flag on it but there is a blue star on it that is representative of the confederacy. that's something the critics have called into question at this point. what do you say about that? >> you'd really have to be a history major to figure out all of that.

we've got one star. we have four stars and they all represent a different part of arkansas history. you cannot deny history. and so i think whether it's our connection to spain or whether it's our connection to france -- you know spain had a spanish inquisition at one point. i don't think you can simply erase all of that. and so i haven't heard any complaints about it from my constituents. but it's -- you know we want to continue to measure whether it's there as a point of history which is how i view it. i don't think we want to have symbols in our society that have political representation of being divisive. and i don't see our flag in that context. we'll see whether there's greater returns saved. it's not a symbol of divisiveness. >> we're going to leave the conversation there governor.

we appreciate your time this morning. thank you. >> thank you. great to be with you. >> and again, a reminder it is a big day for cnbc and cnbc.com as we revul the list of the top states for business. coming up at 8:15 eastern time scott cohn will reveal number five counting down to number one. then find out where your state ranks on cnbc.com. up next a biotech technology high flier that is developing new ways to treat different types of cancer. the ceo of kite pharma will join us here. stick around. "squawk box" will be right back.

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welcome back everybody. check out shares of kite pharma. that stock more than doubling over the past year. crushing the biotech sector. joining us is meg tirrell. >> as you mentioned the shares have doubled over the last year. people are very excited about this area kite is working in known as cancer immunotherapy. personalized treatments that take a patient's cells out of their body and make them better to fight cancer and readminister them. now, there's a lot of players in this space. we talked a lot about novartis juneau. kite obviously is a big one.

bellicum as well. but for kite specifically, their first product is expected on the market in 2017. they're working in blood cancers cancers. they have partnerships with amgen. and just announced with bluebird. we mentioned this is earlier but they're partnered at the national cancer institute that shows what these therapies are able to do. they say they can work where other therapies just don't work anymore. you can see they're showing some of the cancers on the left. the before and after with the treatment of what happens to the cancers basically looking like they disappear. this is working on patients with those who have other options. >> thank you very much. come on over to the set. joining us right now is dr. ari beldigrun. thank you again for being here today. >> good to be here. >> so what's exciting about this is the amazing options that it gives you when it looks like

there are no other options out there. this was just at nih, but now you're working at some hospitals around the country. >> that's correct. just about a month ago we had started a clinical trial across the united states where we are believing for the first time this treatment. it comes out from a center manufacturing place. the therapy is now becoming available under the clinical trial to multiple centers around the country. >> how many patients? >> we would be in over 100 patients. and that follows a rather small study that we have done. but now it's going towards our registration study where we expect in 2016 to finish all the

clinical patients enrollment. and hopefully if everything goes well in 2017 be on the market. >> what meg was describing was this was a last ditch effort when other therapies have failed. do you see this eventually though, becoming the first regimen that people try with particular cancers? >> this is a very good question. when you start something that has never been done before that the fda has never shown improvement, you want to start with the patients that have no other hope. as with many other drugs some of which i personally developed, we start with the worst type of patients and then move it slowly to the mainstream. but we need to understand this is immunotherapy. and i'm sure you hear a lot about immunotherapy. but there are different types. what we are talking here is

different than the entire buzz that's happening around what's called check point inhibitors. this is a multi-billion-dollar new market of immunotherapy. but as exciting as it is what we often hear is the next generation immunotherapy. it's engineering your own t-cells so recognize only cancer cells and sparing healthy cells. so this is a unique opportunity. it's as if somebody would put a gps into a t-cell and direct it kill a cancer cell spare a healthy cell. looks like science fiction but it is not. >> you have to worry about the safety obviously. we have seen safety issues in earlier studies. how is the safety profile of this approach?

>> the safety is an important issue. but we have been in new drug development in many similar instances where there were a lot of side effects to the treatment. however, once we learned to anticipate these side effects, we took care of them. if you don't have to go back more than 50 years ago when chemotherapy was just introduced. to mainstream oncology. if you would study what happened to chemotherapy, there were many, many death. up to 50% of the patients died from their cancer in their region of study. and today nobody talks about death form treatment. so i believe while it's significant, we can take care of these patients as we go along. for now what's important, the

side effect are happening in the first week or maybe two after the patient is being treated. after that there is no long-term side effect which is significant. >> thank you very much for joining pups meg, thank you. >> thank you. still to come when we return, are you ready to drive your car to work park it and then hand the keys to one or more strangers to use it for the rest of the day? can you say ferris bueller's day off. if you're raising your hand saying yes or screaming at the tv saying no the news from ford after the break is must see tv. we're back in a moment. when you're not confident your company's data is secure the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. we monitor network traffic worldwide, so we can see things others can't. mitigating risks across your business.

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can your business deliver? kicking the tires on car sharing. how willing are folks to rent their ride? >> all right! now would you let me out? >> will you pay for the cleaning? >> a trip behind the wheel of this program straight ahead. plus it's time to take the wraps off this year's cnbc top states for business. the countdown to the top numbers. and the debates to who gets number one straight ahead.

and golf goes high-tech. how to make people feel more like pros. >> you're going to play golf and you're going to like it. >> the ceo of taylor made will join us as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin with becky quick and steve leisman. we're 90 minutes from the opening on wall street. the dow looks it would open down 35 points and the nasdaq would open down about 6 points. and check out what's going on in europe right now. you're looking at -- things are looking a little bit down after the comments that were made earlier about what's happening

in greece and some debate with creditors. >> i saw stuff come back that had -- like i saw the 10-year rally on news early this morning. then i think i thought it come back. so i don't know if -- >> in the yield? >> yeah. >> all right. we'll continue to keep an eye on it. let's get you caught up on other stories. as andrew was mentioning the headlines to greece taking the front line. to meet with his country's international lenders. tsipras has been quoting as saying the revenue raising proposals have been rejected. however, officials say the talks are continuing and that explains some of the bouncing around you've seen today. we are just about 30 minutes away from first quarter gdp revisions. economists are predicting a contraction of 0.2%. also the senate is set to vote today on the fast track trade

bill. it's expected to pass after several failures. netflix announcing plans to split its stock 7 for 1. the split will take the form of a stock dividend and occur on july 14th. mark mahaney joined us earlier think the show. >> the stock got oversold last year at the end of last year they had a miss on the quarter. you've got new international losses. and looks like they're on path to add more subscribers this year than last year despite the price increase. that is evidence of pricing power. the fundamentals look extremely strong. >> netflix shares have already doubled since the beginning of the year. and "seinfeld" episodes begin on hulu today. they hope it will get more people to subscribe to the service. while some are available on hulu for free "seinfeld" requires a

subscription as steve pointed out two hours ago. we started talking about the new "seinfeld" set that's been built as a tourist destination in new york city as this event. >> it's real and it's spectacular. i stole the lead from the news story. couple stocks on the move this morning. lennar getting a move on better than kbptexpected results. and to the conviction buy list at goldman sachs. and citigroup downgraded to hold from buy at deutsche bank. pointing to a list of short-term drivers. and we've got one more story. happening overnight, ibm and box to transform work in the cloud. ibm will now get to use box into the offerings. and box will get access to large cooperations and other customers. and this is part of ipm's

strategy. you're starting to see them do more partnerships in ways they haven't before. so it's part of their growth movement to the cloud. into the cloud. despite auto sales rolling at close to an all-time high in the u.s. and around the world, ford getting into the car share business. cnbc's phil lebeau, he's had a busy morning. with more news now on ford's new plan live from the motor city. >> and i know you're excited because this means you can now rent out your fiesta on an hourly basis. this is the program ford is unveiling and it will go active in six cities in the united states. three in the bay area as well as portland, chicago, washington, d.c. they'll also team up with a company in london. people will be able to rent out their vehicles on an hourly basis. you have to be a ford motor

credit customer, the actual renting of the vehicle car sharing will be done by a san francisco start-up called get around. it will run the mobile app. and the owners they will decide the rate that they're going to charge for letting somebody drive their vehicle for an hour two hours, however long it might be. ford ceo mark fields said there was no hesitancy deciding to get into the car share business. >> there was no drama with this whatsoever. it's about listening to the customers. and customers particularly in urban areas want access versus ownership. >> now, for ford this is just one of several initiatives the company has announced as it's trying to promote mobility. the other one is it will be offering the new e-bike. people will say what? yes. this is the third and most versatile electric bike that will be offered by ford. it will fold up and be stored in almost all ford vehicles. that is the theory here that it

will be able to. and finally you can recharge it while it is stowed in the car. quickly take a look at shares of ford. yes, it's down 8% in the last year but keep in mind this is a stock that just got upgraded in part because they're dealing with stronger sales as we see greater production of the new f-series. car sharing is just part of the plan for the future for ford. they've got to think about different ways of reaching their customers. and that's what this is all about. >> okay phil. stick around. we want to bring in bob lutz into this question. former vice chairman of general motors and a cnbc contributor. bob, can i out you on this? you seem to think this is totally and utterly -- >> i personally would not say to any stranger come take my car. >> is that because you're a germaphobe or -- >> a little bit. >> bob, what do you make of becky's anxiety here?

>> it's clear that things like car sharing are an extension of urban mobility where you don't have to buy the car. the only new thing here is that they have a deal where the customers are able to rent it out. i just see it as it's basically not so much a ford motor company scheme. it's a ford credit scheme. it's a trial balloon and see if it works. frankly, i'm much -- as i watched the news clip i was much more excited about the electric bike. that i think is a really good idea. >> you know what's interesting, guys is keep this in mind regarding car sharing. a lot of people sit there and they say well it's only a few young millennials that are doing it in a few cities. there are 4.9 million people worldwide who are part of car share programs and that is expected to grow to 26 million by 2020. that's according to a new report

that was just put out yesterday by alex partners. so it is growing. there's no denying it. >> no question about that. and i wouldn't have a problem borrowing somebody else's car. i would have a problem lending someone else my car. >> that's a personal choice. i understand what you're saying. that's a personal choice. >> so what does this mean for car sales? >> aren't car sales long-term going to go down if everybody's sharing cars? >> well ultimately, yes they will. in the meantime, car companies are going to supply these vehicles. and if you look at it in the urban areas, the concept of sharing cars and not owning them look at new york. basically nobody owns a car. they take cabs limos when they need them. and on the weekend if they want to go out to the hamptons maybe they'll rent a car. so the idea of sort of fractional ownership has been around forever. it's obviously going to go -- it

is clearly going to be on demand transportation opposed to owning it. i see this ford initiative as just another interesting mosaic stone in the overall picture of on demand urban mobility as opposed to ownership. >> bob, but on demand urban mobility is long-term. if you were to play it out 10, 20 years from now, is that good or bad for car companies? >> it's uncertain. because where i see it finally and first of all, we're going to have, like millions of cars out there that are available on demand an hour at a time et cetera et cetera. and are probably still going to be driven. this is in the big urban rural america and rural germany is a different story. ultimately all of these vehicles will be autonomous. but i see that fully autonomous vehicles that you dial up

arrives at your location. you voice input the destination. it takes you there, drops you off, and you're automatically billed. that's probably 20 years out. but the same concept of the instant availability and turn it back in when you don't need it can be done with driven cars. and that's what we're seeing now. short-term -- or i mean the automobile industry will adapt. they're not selling that many cars to owners in big cities anyway. it's not going to affect urban america where the whole scheme is a lot less compelling. and important for detroit, it's not going to affect pickup trucks or full size vans which are not only a means of transportation, but they're also the guy's office or shop. >> i like this idea of the autonomous car and ride sharing. the autonomous car will drive to you where you need it. >> exactly. >> what about that? >> yeah, of course. >> again, though i go back to the point that i would be happy

to share -- drive a share car. i rent cars all the time. but i'm not giving my personal car to anybody. >> that's true becky. but keep in mind -- >> you won't own it. it'll be owned by a big fleet and you'll just effectively rent it out temporarily. isn't that how this will work bob? >> no. no. i think the way this is the car will be sold by ford motor credit to an individual -- >> no. this current program by ford yes. i'm saying when -- your sort of ten years out jetsons future suggests -- who owns those vehicles? >> they'll be owned by fleets. and it's possible let's hope this is so. but the autonomous fleet i think is more than ten years out. i think we're looking at two 20

years out. but the same concept of on demand instant mobility as i point out is also possible with drivers. and we're seeing uber of course, is the early proponent of that. >> bill are they working on the self-sterilizing vehicle? >> you'd love that wouldn't you, steve? becky, i know you're hesitant to rent out your vehicle, but keep in mind there are a lot of people who are driving to a location often in the city or in the suburbs and that car is parked from 8:00 in the morning to 5:00 in the afternoon. at the end of the day they sit there saying what am i doing? i'm parking this car. >> i guess if it saves you the parking too. >> i don't know. i'm a little skeptical. seems like the idea is you have a huge demand for those automobiles at a specific time. and they all use them between 8:00 and 9:00 to commute to work and 5:00 and 6:00. i'd think the demand between 5:00 and 8:00 is not so great.

>> you wouldn't rent it the whole time. maybe 10:00 to 11:00 or something like that. >> i think it's an interesting experiment on ford's part. i don't think it's a huge deal. i'll be surprised if it works out to their satisfaction. >> all right. well, we're going to leave it there then. thanks so much. coming up cnbc's ninth annual america's top states for business. it is back. we are down to our fab five mystery states with the winner revealed later today. which states made the cut? we find out next. and take a look at what's to come in this hour including the ceo of taylormade. "squawk box" will be right back. these two oil rigs look the same. can you tell what makes them so different? did you hear that sound? of course you didn't. you're not using ge software like the rig on the right.

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welcome back everybody. congress is looking into possible safety measures for train transportation. this comes after the crash in may. concerns have been raised about train control and passenger safety. the house subcommittee is scheduled to interview today. we are down to the top five states in our ninth annual top states for business. so who are the contenders for the top spot? scott cohn joins us now with more this morning. scott?

>> good morning. the nice thing about this is really all 50 states are contenders in their own way. we've seen this in the nine years we've been doing this. and we'll see it again today. there's no perfect state. every state even the top states have weaknesses here or there. but it's the state that puts the most together that get to be america's top states for business. without further adieu, let's get our countdown rolling with state number five. georgia, the peach state, is number five this year with 1507 out of 2500 points. georgia was america's top state for business last year. georgia's best category is its infrastructure. the second best in our study including america's busiest airport. its worst category, quality of life. including the biggest number of people without health insurance. georgia is still one of the strongest states for job growth but unemployment remains well above the national average. georgia's income tax rate is 6%. corporate tax is 6%.

sales tax is 4% with local taxes bringing the total as high as 9%. georgia's largest private employer is delta air lines. the largest industry is finance insurance and real estate. so georgia doesn't quite make it to the top this year. it's still, though a very strong state as you heard but slips just enough particularly in the quality of life area to make it number five this year. so where am i? i'm in the top state for business. which we're going to reveal later today. and here's yet another hint. float your boat. float your boat. you can see all the other hints on our website, top states.cnbc.com. follow me on twitter. #topstates. we want to hear your guesses. and coming up later on "squawk on the street," our countdown will continue with the number four state. again, the top state for business where i am revealed later today. then you'll be able to see where your state stacks up. >> give us the other two hints

right now so we can play guess with you. >> give you another hint? >> the hints you've already told us. no the one and two. >> pardon me? >> the one and two hints you've already given. >> one and two. let's see. two was part red, part blue. and one was, a long journey starts here. >> tennessee. kentucky? >> okay. >> where's the start of the mississippi? >> there's some very bright white stuff, your left my right. yeah. your left our right. what is that behind you, exactly? can you explain that or no? >> if i told you what's behind me then you'd know where i am. >> okay. >> what do you think it is? >> you know -- >> no no. it's got to be like minneapolis, right? >> what do you think it is? let's not say. we don't know. by the way, we honestly don't know. that's the amazing part.

>> but i'm going to try and figure this out. i'm bad this year but i'm going to do a lot of research and i'm going to try to figure out a good guess by tomorrow. anyway, that is our scott cohn. joining us from the top state of business we have yet to reveal. when we come back this morning, a close call for some divers off of jupiter, florida. we have the video and the details right after the break. plus need a place to store your high-end car? want to show it off and do some racing? there's a new project that is breaking ground today. find out where you can get your very own car condo. that's coming up next. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash.

the 2016 e-class from mercedes-benz. 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 everybody. bobby jindal is expected to make a major announcement about his possible 2016 presidential bid this afternoon. he would be joining more than a dozen republican candidates vying for the gop nomination. setting him apart, jindal would become the first indian to run for president. car buffs listen up. you need a place to show store, and test drive your high-end cars. get this. a playground for car enthusiasts is breaking ground. the project should roar to life as early as next spring. the project's $25 million first

phase will have construction of a 1.5 mile track and 80 car condominiums which are finished climate controlled garages that can double as entertainment rooms. also the midwest's number one tourist generation is getting a makeover. the ferris wheel at chicago's navy pier is getting a remodel. chicago mayor rahm emanuel said the updated wheel will keep the attraction open throughout the year. the new model will be outfitted with temperature-controlled gondolas that can carry up to ten passengers. check it out. most people prefer to keep a nice safe distance from sharks. then there are others. like these scuba divers that got up close and personal with a curious tiger shark. they were swimming off jupiter, florida, when one of the sharks tried to take a bite out of an underwater camera. wow. nice. >> close for comfort. >> nice. an australian fisherman caught a massive 7,000 pound shark off the coast of victoria.

20 foot long shark was picked up. museum scientists have collected samples to look into the life history of the animal. the head and fins of the shark were taken to the human to build a full scale exhibition model. >> so i have a guess. i did a little research in the break. as for the top state, i'm going to go out on a limb and say i think it's minnesota. it's not been a top state in the past for the business that we've looked at, but it's the start of the mississippi river. >> long journey starts here. >> float your boat. >> the red and blue state thing. >> if you're right, you ruined it for everybody. >> no. she's like everybody else. she didn't know. should people tweet in their guesses? >> yes. >> let us know what you think. >> i have no idea. that's my guess. coming up gdp data.

some grateful dead music after three hours, thank you. as we go to break, take a look at u.s. equity futures.

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seconds away from gdp data. take a look at the 10-year. it's been up it's been down this morning on the greek news. now it's highly unchanged. me euro meanwhile u.s. dollar/euro it was up a bit this morning. now it's 1.12. let's get to rick santelli standing by. rick? >> here we go. our last look at first quarter gdp. up, down. down .2% you guessed it correctly. pretty much exactly as expected. this comes from a down .7%, our last look. as we're ready to wrap up june and the second quarter, many continue to look towards atlanta gdp now. i don't have the exact calculation, but it's hovering in that kind of 2% area. cooperate profits from the first quarter were revised to down 8.8%. and as i look at yields i know we could try to pin the yield

movement on greece. but i find that exercise a real kind of, you know -- it's futility at it's worst. here we are at 2.39. yesterday we were close to 2.43. downside has been rather tame. many traders monitor the thinness of the selloffs. we did have supply yesterday. many believe we'll see more supply. that was a $10 billion deal. so we're continuing to see m&a and deals. maybe these are all kind of benchmarks or over the business cycle. but of course we have to wait and see. the fed better hurry up and beat it. steve and the gang back to you. >> go ahead. >> rick thanks. want to get some details. consumer spending a little bit better. mostly in durables. business investment a lit less worse i guess the way to put it. minus 2 instead of minus 2.8.

equipment about the same. housing investment a touch better. government, not as big a contraction. we started off minus 0.7% was the initial. and as the data came in we thought it might go minus 1.1% decline. this number is going to be revised again, becky, when the b.e.a. takes into account the work in the first quarter being week weaker on a regular basis. >> but they've been underestimating the adjustments. let's bring in a couple other voices on this. david blitzer is the chairman of the index committee. he joins us here on set. also lindsey piegza. what do you think of the numbers we just heard. >> well certainly an improvement. as you mentioned the second round revisions showing that .7% decline. so this is less weakness at the start of the year. but looking at the composition. we still see a pullback at the

end of last year. business investments still negative. housing, a positive contribution, but limited to the economy. the competition, very little change. but a slight improvement in that headline number. of course as we look out to the second quarter again, this doesn't just any additional momentum as we wait for the q2 gdp ro gdp report. >> david, maybe we were too gloomy about the numbers but they're still nothing to write home about. >> first of all, it's a bit of old news. it's still the first quarter. second of all, i think we all had been a little bit too gloomy and so forth. business investment is the -- has been consistently the disappointment, i think that really matters. you know, companies seem to have piles of cash. all they do is buy back their stock. maybe nice for their shareholders. i'm a skeptic about that anyhow. i think mostly they're buying back shares they've issued to pay employee options and that's about it. housing, i think is beginning

to perk up. for the economy what counts in housing is new home construction. and those numbers in the last couple months including yesterday suddenly don't look abysmal. they look sort of almost okay but not quite. so that's pretty good. clearly the fed seems to want to go with another one. so that gives us a little more time to get things rolling again. hopefully some corporation will get out there. >> can we talk about what if anything this first quarter readjustment number tells us about where we are? lindsey, let me throw it to you. our cnbc wrap it update has us running 2.9% as of yesterday. it's not terrific. it averages out if you put the two together under 1.5 over the

firs half of the year. what's your take on the rebound? >> i think that might be actually a little more optimistic than we're looking for. we're still looking for the second quarter to come in under 2%. so if you take that estimation coupled with even the .2% decline in the third round revision, you're still talking about the weakest first a of the year since the great financial crisis. so again if you take it in that context, it's not really posing a very strong economic situation. certainly not one strong enough to suggest that the fed is comfortable with the rebound and can begin to raise rates. >> i'll take the over on your under 2%. but what's your take on where we are? >> i think i'd be over 2% for the second quarter and so on. and i think the economy -- >> but still. 3% is a disappointment. after contradicting in the first quarter, right? >> it is. but i think in the background, one thing is i think the potential growth rate has come down. not just because there's all

this noise about productivity being weak in the last couple months. productivity is a long-term phenomenon. but you don't have the underlying growth in the labor force, the underlying growth in jobs and so forth that you traditionally had. and, you know the potential growth of the u.s. economy is at best maybe 2.5% maybe a little bit below that at this point. 3%, 4% that's not the -- where we are right now. and i think -- you know the ceiling is much closer than a lot of people think. and that's a concern. i think you get a little snap back and it's going to be better than 2% for the second quarter. and the second half is probably going to be okay as well. but okay is now 2.5%. okay is not 3% 3.5% and 4% is good. >> david, lindsey, we want to thank you both for joining us today. coming up next golf going

high-tech. taylormade teaming up with microsoft to help players track their progress. the ceo of taylormade is going to join us after the break. take a look at the futures at this hour. dow looks it would open down 52 points. we are back in just a moment. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. you wouldn't take medicine

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welcome back too "squawk box." ahold operates stop and shop and

giant chains in the u.s. while delhaize is part. they could now be in the news as a potential takeover target. taylormade and microsoft teaming up to bring money ball to the average golfer. dom chu joins us with details. >> we do. think of it as bringing together the worlds of big data cloud computing, wearable technology. all applying it to golf. that's what this partnership between taylormade and microsoft is meant to do. it represents one of the first time a major golf equipment maker has teamed up with a megacap technology company. in a nutshell microsoft's current wearable will now feature a golf tracking feature. it's going to take data about your shots, distances, how many times you're in the rough. how many times you hit a green or fairway. translate all that in a summary of year round. whether you're playing golf for a living or just a weekend warrior, you're going to be able to manage your game by the

numbers to see where you should focus your practice and efforts and how you're improving. so let's talk more about this partnership. joining us is the president and ceo of taylormade. david, thanks for joining us here. so i've got to wonder about this partnership. what made microsoft the right partner for taylormade? >> thanks. great to be here. when we started doing some research to identify how we can bring a really great user experience, a golfer experience through a wearable technology into e the golf market microsoft was the perfect partner. so everything that you just stated on the lead in is absolutely true. we'll go live with the mike vo soft tile on the microsoft band to allow golfers to have a second to none experience.

>> so david, what was the onus? what was the inspiration? why get into this business? you make drivers, irons, putters, golf balls. why diversify out into the technology or wearable space? >> for a couple of reasons. first all, we wanted to extend our digital platform and offer not just great products that were played at the u.s. open. but expand to different services and offerings to enhance the golfer experience. microsoft really was a viable partner. they have wonderful technology already embedded in their band. gps enabled technology in the band. so it broadened our reach and bringing it to golfers that would be a competitive advantage for us and more importantly a unique situation for folks around the world. >> is this going to try to bring in new golfers who may actually be interested in some of the

technology? >> dom, it's for everybody. it's very everybody whether you're an avid player, whether you're a recreational golfer. to be able to track things like your yardage, your yardage front center and back on the green, to manage your score, your biometrics through microsoft health. then ultimately we'll launch the taylormade app. go to my round pro.com where you can further track your golf analytics. strokes gained greens hit, and ultimately shot tracking and shot detection as well. so it's available to everybody. and that's what's real exciting for us. it will broaden the appeal to a new audience for us. those that are in wearable technologies and whether you're an avid golfer or recreational golfer, it's going to be special. >> andrew had a good point there about towards the average golfer not just the professional. can we talk beyond just the product itself. you're looking to bring more

golfers into the fray right? the idea of getting a product out there that can get technology in people's hands. how much has the game overall -- let's shift our focus -- been impacted by the fact there aren't as many golfers out there playing? how can get this more people involved? when you talked about chambers bay, jordan spieth, is he good for the game? and is this technology going to help? >> dom, fair question. if you watch, if any of your viewers watched the u.s. open this weekend, the future of golf is very exciting. and at taylormade we're optimistic. if you start with the athletes on tour. jordan spieth is just an example of that. but dustin johnson, how well he played. jason day, how well he played. justin rose, sergio garcia. i'm a bit biased because those are our athletes but it's incredible the energy they're bringing to the sport. but we believe that technology

and the opportunity to interact with technology will bring players in. in addition to that dom, we're also excited about all the initiatives around the sport in organizations like the pga of america, augusta national the lpga and pga tours. they're bringing new entrants into the sport. there are 3.5 million new golfers coming into the sport each year. part of our challenge as an industry is to retain those that are in the sport and don't leave. and that's where we've seen some of the attrition. but we're very excited about the future. it's a wonderful sport and the athleticism that we're seeing on tour, the youth that we're seeing on tour and the access to technology all combined we're very confident that the sport of golf is in great shape and will continue to move guard and progress. >> thank you for joining us here on "squawk box" this morning. this idea of technology and golf is exciting for a lot of people. david, we appreciate you taking the time. >> thanks a lot. >> dom, thank you. >> thank you. great to see you. when we come back here on

"squawk box," we will head down to new york stock exchange. we'll find out what to watch on the opening bell with jim cramer. by the way, check out the futures at this hour. right now you're still looking at some declines when the market opens if things stand at this point. dow futures down by about 62 points. s&p off by 5, nasdaq off close to 10. when you're not confident you have complete visibility into your business, it can quickly become the only thing you think about.

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check out shares of lennar. the home builder beating estimates on the top and bottom lines. new orders jumped 18% and where are we now? we're up almost 4.6% almost 5% this morning. in media and tech news fantasy sports site draftkings going to be raising funding from someone other than disney. earlier reports said disney was going to invest $250,000 in$250,000,000. so now there's a deal but just not the deal we thought. let's get down to the new york stock exchange. jim cramer joins us this morning. how are you doing? >> i'm good. i had draftkings on a few weeks

ago and it was supposed to be in the bag. i asked the aol/verizon people are you going to take a share in fan duel? surprised that disney didn't sign this deal. but i think the fan dual is still blocked. >> i wanted to talk to you about a story in the front page of the wall street journal. big story about cyber security breaches. what happened at the government office most recently. i was watching mad money and you talked about a lot of the smaller companies that play in cyber security that people aren't as familiar with. i thought that was great. could you talk about what you see out there? >> i think the group is going to be down today. fort net, i like you have some guys that's an israel defense. i like palo alto and fire eye. i have to tell you, if you look at hack, which is the etf, not to be too granular but they're all in there.

if you want to see the ones people are thinking about, i think that you can go to those. i will say the group is very hot. been waiting for a pull back. every time there's a hack fire eye gets a phone call. >> i knew the stocks were up. i didn't realize how much and i didn't know the other names. >> i was doing little guys. fort net is downgraded. it has earnings. it is not overvalues and i think people have to recognize this is a long-term game and every time you decide this group is to be avoided you end up with another hack and then boom a hort net goes up 10%. >> i don't know if you saw the deal with box? >> yeah. i like aaron. i thought the last quarter was good. the stocks went up and pulled back. 25% of the stock is short. i thought the ibm deal was good.

ibm itself came out with a strong statement about how this is really going to help security in the cloud. ibm is a partner. it's something you very much want. i still think box is cheap. i know the people are fighting it. i think it's time to stop fighting box. >> what about ibm? >> ibm is good but you talk about currency. yesterday when i saw the fxe dip and the dollar got strong it means ibm is going to say in constant currency we would have done this. i think people after oracle people are not buying that. don't give me constant kurpcurrency. i want the real currency. >> you got two cents on netflix? >> i did some analysis of when apple announced the 7 for one. they also reported a great quarter. the stock jumped from 74 to 84 but people who bought the stack after the split, in other words

when you got the split. five days later it was at 92.20. you can get excited but the reason why the apple split work is because it was a company by earnings. this is a company by a note that i saw that says they're going to be bigger than the networks combined. people who chase the stock on the split, that has not been a great idea. >> jim, thank you. when we come back this morning, we're going to talk more about netflix deciding to split its stocks seven for one. also tomorrow the louisiana governor will be joining us. he is expected to announce his run for the gop nomination later today. tomorrow morning we'll get his thoughts on the economy and jobs. that is coming up at 8:30 eastern time tomorrow. "squawk box" will be back.

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>> syngenta has rejected takeover offers from monsanto but the ceo of man san toe says he considers this a long time and still wants to get a deal done. we were also just talking about netflix splitting its stocks seven for one. >> netflix announcing the stock split in order to make sures which have thrown nearly 900% in the last three years more accessible to employees participanting in a stock options program. the stock is up about 37% in apple since its split. that depends on whether netflix can continue giving on the same three netflix that drove the stocks outperformance in recent years. one, consistent subscription

growth. and fast overseas expansion. in three is the ongoing critical and consumer response to the original exclusive content. the cost of netflix is accelerated international expansion as well as the originals does mean higher spending while overseas results are being squeezed for the stronger dollar. now that hbo and show time are offering director services similar, we'll have to see if they subscribe to a range of services as they do with cable channels or if these rivals start to eat into netflix's growth. >> we're still trying to understand all of this. your sense -- also we're talking about hulu. you talked about the "seinfeld" promotion that's been going on. is your sense that people are going to have netflix, hbo, show time and hulu or do you think they only pick one or two? >> well you know people

including the ceo of netflix will say you'll subscribe to all of them. what's interesting is hulu has about 9 million subscribers. i believe the statistic is that four fifths of them also subscribe to some sort of paid tv service. that would indicate that people are basically willing to pay multiple times were overlapping content. a lot of the hulu and hulu plus content is available on tv everywhere. >> somebody then bundles all the paying services together and calls it cable. >> or the next generation of a paid tv service. i think people will pay for multiple services because it's different content than it is on hbo. >> hulu announcing yesterday that it is going to be bundling potentially, show time. >> exactly. it's like the next generation

bundle. it happens to be over the internet at a lower price. remember, you still have to pay for broad band in order to be able to stream it. >> thank you so much. appreciate it. make sure you join us tomorrow. "squawk on the street" begins now. ♪ ♪ >> good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david databaser. greek deals starting to creep in as both sides say there is no compromise in sight. ten-year right around 237. inventories coming up this morning. netflix hitting $700 a share. that's a seven more one split.