i had it first. >> and i thought he was talking about the difference between pluto and goofy. what is the difference between those? do you know? >> one is a dog and the other is a dog but one owns the other. i don't understand. it's not right. >> you can't answer any of these questions. >> i'm canadian. i can't help you with any of this stuff. >> thanks. that does it for us today. right now it's time for "squawk on the street." good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jamim cramer and carl faber. got some upgrades of coke sam zon and others but retail sales disappoint. down for the first time in four months. negative revisions.

ten-year down. oil is down as the u.s. reaches an risk deal with iran. >> it would be the largest chinese takeover of an american company ever if a reported $23 billion bid for a technology company is for real. >> and first up the u.s. iran and five other major powers reached an historic deal this morning. the agreement eases some sanctions on iran. oil prices down on that news. brent down nearly 2%. this is the president announcing the deal early on this morning. >> i welcome a robust debate on congress in this issue and i welcome scrutiny of the details in congress. but you don't make deals with

this like your friends. we negotiated arms control agreements with the soviet union when the nation was committed to our destruction and the agreements made us safer. this deal will meet the national security interests of the united states and the allies. i will veto any legislation that prevents the successful implementation of this deal. >> some of the safeguards go 15 to 20 years depending on the things they're looking at. he called it a deal built on ver by the ification. benjamin netanyahu calling it a mistake of historic proportions. >> i'm not a fan of iran. i don't want to go down that path. but there's 80 million people in this country and if it joins the council of nations and becomes a real country, there's more of a chance for them to become more like the rest of the world

rather than less. i don't -- i think that the president will not have his tough sell. i think it's done. >> you do? >> yeah. >> the hope as you said ten years, perhaps things change. and ten years or even as much as 15 years and that's what you have to do. i'm sure he'll argue what's the alternative. can you continue to maintain the regime sanctions with your parter? s? if there's no deal, where does that lead? >> those who don't like it really don't like it. those who like it basically say what other choice did we have? >> i'm in the latter camp. and it would be interesting. we are -- they've been a criminal regime. they had hit squads against our soldiers in iraq. there's been great work about bing west about this but i would point out that in the end, there's going to be a gdp

impact. i knee people don't want to confuse economics with war and politics but this is a real country, and it will be a real spender, and it will redevelop the infrastructure and it will be companies like sum ber jaylumber jay that get the contracts. benjamin netanyahu, i've met him a bunch of times. what do i know? i know this is a real country with a president that is tough. i think business will be done and a the perception is that business creates a more rational regime. >> yeah. and that is the thinking is that they are getting their economy on track. and it's such a priority that that's the reason they agreed to this. alove john bolton's tweet. the only thing we need to verify about the iran deal was what obama was thinking about when he agreed to it.

this deal is a disaster. >> in the end, were they going to just start behaving without it? suddenly have an epiphany? >> it will be interesting to see tensions between saudi arabia the other power in the region and iran. do they need to increase the military budget with the oil prices down. keep an eye on their budget. i think they did a bond deal for the first time in about eight years recently. >> there's a bunch of rollouts of the defense companies today. >> in the meantime earnings season kicks into high gear this morning. some of the big banks reporting in the next few days. jpmorgan profits up 5.2. and wells, revenue a bit lower than analysts expected.

that stock is moving lower in the premarket. as >> the instant reaction a lot of people watch the tape and see trading down. must be down. i'm sick of that. i'm sick of the idea that you think you can take your cue from the tape. there's things going on at these companies. j.p. was excellent. you're not going to get the -- the curve isn't like that. they can't create a curve themselves. they are in america but this quarter the wells fargo quarter, net income margin up. these are great quarters and i think keeping about pepsico which closed down horribly and then two days later -- >> and then the other day, i think continues concerns about the dollar. >> j&j. there were some things i didn't like about it. the medical device business what's going on the consumer products business not as good.

the pharmaceutical business is so strong. he's not going to do this. if you looked at this company as a pharmaceutical company and you did what an dabvi did. >> we should mention to beat on the top on the bottom line j&j, 15% currency hit. that was a big number. >> super freakin' dollar. >> and the stock looked to be up a little bit but you're talking about them splitting the company? >> i'm saying there's two different companies. a company that continues to underperform which is a consumer group and the medical device group and then there's the thing that you like about a company which is pharmaceuticals and it's really strong maybe among the best. it's kind of just -- you have two different companies going. i kept thinking they'd clean up the problem of the consumer and the medical devices would be a leader again.

that's not happened. it's a 3% yield. it's a fantastic company. i just wanted to see this stock go back to 106, 108 and i thought one of the divisions would outperform. >> where are we on the 4 x picture? you think it's the key narrative of the earnings season? >> one of the problems is no one believes it could be that big but it is. 14 to 15% hit. big numbers. i was adamant that germany was a big winner yesterday. you look at the foreign exchange and the euro gets hit. it's a little bit stronger today, but our companies are international companies and the dollar is so strong versus everybody else's that you can't even recognize the quarter. the actual number of inputting constant currency you would think our companies are doing horrendously. >> they're not. we kind of hit the banks briefly. >> i'd like to do it deeper down.

>> we'll have time. but you've said a number of times the banks are the key to the markets to a certain extent. the expectations that rates will start to -- have been rising can be beneficial for them. but overall on the report from wells fargo at this point, jim, which i know you've liked for a very long time i mean housing continues to be an important part of what they do and refinancing. what's your sense? >> look, everyone says i don't like to change horses here. everyone says listen when the interest margin finally goes up we're going to like the stock. it was up 2 basis points. that's not a lot. 2 .97. i'm not going to change directions and say i'm worried about the vaer income. no. this is a good quarter. it will go down today and half the day tomorrow and come in on thursday and warren buffett will say it's a great quarter and then it's at 62 and we're saying why did we sell in that's right.

there was an investment securities line that wasn't as good. whoever is doing the snap judgment trading you're as stupid as the people who got short ahead of greece. not everybody is a brilliant guy. they're not all suma. there's andrew lock and then a lot of other guys. >> we know some of those guys, unfortunately. >> they're the first guys to hit the trade. >> >>. >> or dez. >> i didn't want to go there. i did not want to go there. >> he may not be suma. back to jpmorgan for a moment. legal costs down sharply. it may be the first quarter we can say wait a second not even figuringprominently.

>> he's at pepsico. >> the attorney who got them to pay up back. they were down 57% from the year ago period. >> i guess jpmorgan doesn't need to pay again? >> i don't know. i was facetious when i said that. there were some people i think who did not -- they weren't as humorous as i am sometimes but that is a very big line item to have go down. a lot of times we do our show and put a little humor in. >> not everything translates. people have different senses of humor. >> listen to me. camera on me, please. over there. that's fabulous. it's called irony. when i make that it's irony. something i learned with edgar allen poe and the gift of the madgi. it's called irony. >> when we come back we'll get

to the report on micron and greg abbott, he's going to ring the opening bell and join us after. tomorrow morning, do not miss our coverage of cnba and institutional investors delivering alpha conference. jim cramer will kick it off with his panel tomorrow. take another look at the futures. dow first back to back 200 plus gain since january and the s&p up today would be the first four-day win streak since january as well. we're back in a minute. the mercedes-benz summer event is here. now get the unmistakable thrill... and the incredible rush of the mercedes-benz you've always wanted. but you better get here fast... yay, daddy's here! here you go, honey. thank you. ...because a good thing like this won't last forever. see your authorized dealer for an incredible offer on the exhilarating c300 sport sedan. but hurry, offers end soon.

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reports of a bitter mikeover from micron stating the yuni group plans to offer the chip maker. if completed it would be the largest chinese takeover of an american company. you may remember green light's owner. he said recently in alert letter that micron could be worth more. i have nothing to add in terms

of facts. it seems to indicate they haven't received said letter with offer but that may be the fog of war at this point. it appears the chinese wanted to make sure certain news outlets were aware of their interest. i come back to the national security review that would with v have to take place if you have an agreement of a deal and whether the u.s. would allow china to own our only real maker of d rams? >> yeah. and one of the three. also they have proprietary flash that's good. d rams went into oversupply. that's what happens. you'll see the stock go up. it's like economics 101. when supply goes down there was a tight supply because different companies from japan went under and merged and micron bought it.

that was a good deal but we got oversupplied because of personal computers. i don't know that outfit that made the bid. i would think that -- >> they're the real deal. if you recall that hewlett pack card deal when they transferred ownership to china, it was to them. >> micron has enough proprietary information and product that i would think given all the hacking in china, this would not be an appropriate time to make that bid. >> yeah. >> i mean -- >> you might expect some political skepticism in terms of approval. >> i'll tell you what. the administration is probably hoping they don't have to have a review on this because if they do reject it you know there's always an anti-trust we refer to cry in a oftentimes not necessarily when a u.s. company is buying a chinese happen. even when there are two u.s. companies merging, there are times when you need to get anti-trust approval in china

because they do a lot of business there. if this deal did get done and then rejected who knows what the chinese response would be because they do things a bit differently than we do. and you already are seeing delays on the anti-trust reviews. we'll see. >> they are criminalizing a lot of selling in that country with the ministry of police which i'm not sure if the due process over there is exactly the same way ours is. they criminalize things that would be civil here. if you were a senator from idaho, i would say micron is a treasure. go with the canadian approach like potash. this is a great american company. it is. with great manufacturing. and it employs a lot of people. >> with intellectual property the chinese need. >> right. >> how are you going to let that

happen? i don't think you can. >> we don't let waway sell anything in this country. it's hard to imagine. >> i love the sour grapes on missing netflix. says red i think is the new black and calls these exciting stories with accountabilities in the distant future with netflix at 711 today? >> he's a critic of content. >> what do you think he thinks of true detective on sunday night? the last ten minutes, david, i don't -- if he's going critic i here that banchi is good. >> i've enjoyed a couple of am don shows. catastrophe, that's been a fun one. >> people kri of criminal minds as being violent pornography? >> i don't know but i think

fascinating to see his reviews. >> i remember when he made fun of me that i liked keurig on the way up. i said it a good coffee. i think he's a chuck full of nuts coffee guy. >> take one more look at the premarket. we've not yet gotten to reviews of urban go pro and a downgrade of intel to sell. we're back in a minute. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

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♪ >> we have about seven minutes or so before the opening bell. you want to go go pro? >> yes, i do. barclays had a very important report upgrateding report talking about the concerns of commodities, strong execution. like fitbit that you know i like it's eco system. i've looked into four. i peruse. it's sold out. but the great thing about this go pro is it's come down a lot. it's no longer up here where it got overvalued. this thing has some room. this go pro is more expensive than fitbit. go pro is very expensive. >> it's been high multiple and that's given you pause at certain times.

particularly this run up here. >> i said when they go the ipo and the lookup expiration it's like shake shack when it's at 90. it's too juicy. this is going to work and i like the piece because it's about how they had great concerns when the stock was higher and now there are considers of going down. we often talk about good research. that's someone who says i'm concerned but i'm less concerned here when they've done less execution. barclays did the research i liked. i didn't know they executed better. i know the four is better. gross margins have improved. this makes you want to buy go pro. >> we'll be watching that stock. it's up almost 4 %. a lot more stocks to watch this morning as earnings season has begun this morning with j&j, wells fargo, jpmorgan. we'll check in on all that coming up next.

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the street." live from the financial capital of the world. the opening bell in just over two minutes. it may not feel like it because of everything the markets had to deal with this month but month to date the dow and the s&p are on track for their best month of the year since february. >> i feel like this is a battle ground like you wouldn't believe. every day i'm looking at j&j and saying how could this market be up when a great company like this is off badly or the tech stocks are miserable? i v have you noticed that? the industrials are so weak. it's incredible that some of the drug companies can move things up and some of the u.s. consumer stocks have been fantastic. it doesn't feel good. >> on the macro front the retail sales numbers down. we were looking for up.3. revisions in may down. eight of 13 categories down including clothing building

materials, furniture, autos. >> it was a weak month. >> we haven't had an up side surprise this year. >> no. look, this market hangs in because there are some companies that keep doing special things. takeovers that occur and breakups that bring out value, and we see these deals that are 20 billion. they barely get a mention. >> yesterday's deal did not -- it got a mention, so to speak, that pipeline deal not a great reception, we should point out. mplx down sharply. >> although the refinery itself was up. you see the oil is down. when you see a stock like chevron down so much it's almost impossible to imagine the market could be higher. that's why i'm astounded at that figure. it shouldn't feel like it. >> s&p hasn't had four days of straight wins since january. it's shooting for that today, and of course as we mentioned yesterday, all the major

averages back in the black for the year. let's get the opening bell and the s&p at the bottom of your screen at the cnbc realtime exchange. at the big board it's the governor of texas. greg abbott promoting a business in texas. staples kicking off the back to school season at the nasdaq which is starting now, although it doesn't seem like it. you mentioned the go pro upgrade over at the wall. amazon, ubs to buy. >> you have a situation where the analysts are out of the fax hole. each guy takes another shot at why amazon is so great. i find that amazon is as loved as netflix. it is incredible. >> another name with upgrades this week. upgrades of amazon and netflix, two of the biggest gainers of the year and dumping the intels that haven't worked. >> there's a lead story in the

times about how the authors are going after amazon. >> what about? >> well we all feel that way. >> there was the book. >> there was a big battle not that long ago. they're sort of still girding for battle. that continues. prime day is tomorrow. >> yeah. >> where they're going to be pushing a lot of significant sales on amazon. >> they just published a list of some of the discounts. >> 32-inch tv $75. >> i'm looking for -- bose head fines. chrome laptop. >> for a chrome laptop, $199? that's less than my nike jordans. i can get a chrome. what are you learning from

sneakers? you can learn -- >> i hadn't thought about the fact that my son's sneakers probably cost more than his computer. that tells me the margins are much better on sneakers than computers. >> 10,000 in amazon gift cards. this is exciting. can i get off the desk for a few minutes? tomorrow, i guess. >> yeah. >> it's like singles day. they make up things. >> this is a response to the success that alibaba has had with its singles day which takes place in november and the enormous. as for that stock, hasn't done much. continued concerns about the health of the chinese consumer. yesterday there were some numbers released about auto sales in china that were somewhat worry some, at least

some say. that stock has not appreciated nearly as much as amazon which is up almost 50% year to date. >> and netflix is up what 100%. >> yes. >> and a lot of these stocks when averages are up, these are jie gigantic moves and then there are some stocks that are up a dollar or down a dollar. >> we didn't mention facebook. it took google eight years. it was 200 on september 8th. now it's 250. >> the company, the numbers moved up rather dramatically for them and the estimates continue to go higher and higher. i had a chartest last night who said best stock in the book. new product with earning per share going higher and it has the best-looking chart. >> and it's coming up to comps

against expenses that were up a year ago. they were ramping expenses so the comps may be somewhat favorable as we move into the next reporting quarters. >> and advertising dollars go on their way. >> that pie, more and more of it, you hear it going to digital. >> dominos at $119. how much business did they get from facebook? >> yeah. >> and we always talk about the brewing war between facebook and google. today the journal takes a crack at, usa today calls it one of the four companies that are disappointed the most over the past four quarters. >> i looked at that and that was true. that's one of the reasons why my travel trust likes google. going into last friday the stock was unchanged but you have someone who i respect a great deal in the cfo. ruth porat is someone who people

say is not proon expenses. >> we talk about the fact that these are criminaled companies whether -- controlled companies. when they are spendings, they compete for talent. a lot of the way people are compensated in silicon valley is the stock. it has to move up. you may see a response from google in that we have to make sure that we're competitive when it comes to issuing stock and our employees are happy in that record and maybe we need to start cutting out a little bit in terms of some of the moon shoots. there are plenty of them. >> we don't talk enough about that. my kids are graduating schools and you see that the number one kids in the country are computer science, if you can write code you're going to be big between facebook and google. the sales force wants you.

computer engineering, amazon wants you and spacex and walmart. and these are -- there's not that many kids. i wish we could go to inner city schools and teach them code writing. i don't know anything about it. i have someone program my watch. but there is without a doubt, a dearth of talent and the unemployment rate is incredible and it's stanford and berkeley. i was with someone the other day and i said what do you think about clairemont mckinnon. they said i'm not familiar. facebook google amazon. >> the battle for talent and part of the compensation again, is not just cash. it is stock. when you're facebook people want to own the paper. for amazon for a while it was a concern. a lot of the composition can be in stock but when it's up 15%, it helps and it's positively reinforcing. >> that's such a good point.

when we went to frisk which i regarded as eye opening, the culture is different. i'm ans this is a good opportunity to do a little camera work. we would take this and we move it there. and we make $7 million. now, obviously there were things written on the paper, but they create. >> people wonder why we're in this age of unicorns. it's because incredible infrastructure relative to the rest of the world, incredible talent and you have kids growing up who have dreams of moon shots, as you said. >> some guy who dropped out of college i had on my show box. came up with an unbelievable way for that a lot of the companies use his device and you look at the guy and you just say, you know, this is a guy who might have finished school at one point and gone to a city to do project finance.

remember project finance? >> it's still around and it's important. it is. project finance is important. you're giving me one of my looks. >> i'm looking askance. this is an s.a.t. class. >> and i would add to that list of positives, our capital markets and the ability for companies to raise enormous amounts of money. facebook gets to three years but they were private for a long time. longer than google -- >> but people want to go to different schools now because they want to get jobs at facebook and google. >> i think it's great. >> i remember when i talked to andrew lock he was comp engineer. he was thinking that could hurt him at facebook. >> that's tough to beat. >> he graduated. >> he graduated near the top of his class. >> that dude is smart. >> he is everything. we're nothing. >> muted picture here this

morning with the dow almost exactly flat and the s&p right at 2100. let's go to the floor. >> reporter: really a very mixed picture. everybody is talking about what happened to retail sales down 0.3%. this is a big problem for two reasons. number one, we're going to see cuts in second quarter gdp estimates, bond yields are down here, so maybe 2.5%. take a look at the banks. the retail sales print caused the yield curve essentially to flatten. that's going to be a little bit of a problem. that could be a big head wind for the banks. jpmorgan and wells had earnings out. what i care about them is there any loan growth and are they making any more money on the loans? jpmorgan, total loans growths up 6% year over year. that's pretty good. that was better than expected. nest net interest income, it was flat but the net interest margin was

up a couple of basis points. moving in the right direction. we all know that yields on the loans are not very high. they're not growing that much but we're going to head in the right direction. overall, i think it was a good report. they ran up operation of higher earnings and higher rates. they always sell going to earnings. we'll probably see that in the next few days. mixed reports overseas. asia, here's what's important. they're getting back to normal. here's the score card. i keep track of this stuff. 2800 companies lifted on the shanghai and shenzhen. almost a quarter of the market is suspended. almost 80% by market cap is trading right now. we're slowly getting back to normal. still i wouldn't say we have a clear representation of what's going on in china yet. speaking of china and the strong dollar, did you see j&j's numbers? sales were down 8.8% in currency

had an 8% impact on total sales. international impact, 14 %. that's what the strong dollar can you do for you there. finally how big are exchange traded funds? kevin oh leery is getting into them. he's joining me right now. you're talking about high dividends stocks with low volatility. more importantly, you have a fund of your own and this is what you're choosing to put in your fund. this is where you're putting your money. >> it's all about the family trust. this is a legacy for me. i want yield. ousa has twice the yield of s&p. this is how i'm going to own dividend stocks. made my own. >> kevin, always a pleasure to talk to you. if you want more on what he's

doing with this trader talk. and you can see him regularly here. >> it's amazing. this is what i talk about. if you take your cue from the premarket, you're an idiot. you went to college to get stupid. >> let's get to the bond pits and check in with rick santelli who brought us the retail sales number just over an hour ago. >> reporter: weren't good ones. we all walked out on the floor to see if there's any snow out there. doesn't seem like we can blame it on weather. ten-year net yields if you look at a two-day chart, the levels continue to come off of are virtually the high yield close of the year. just a few whiskers under 2.5% as we continue to flirt into the mid 2.40s and back away this

morning. if you look at a june 1st start, you can see the way we've been chipping away, bites at that area and many technicians pointing to the low 2.60s as a high probability to trade. you want to keep an eye above that should we start to close above 2.50. the bundle not the same pattern. a little up today but definitely not at the levels we saw yesterday after all the volatility associated with all the fast traders and greek headlines. if we look at a two-day bund it gets a better perspective. the next three charts are about the euro versus the dollar. with fed talks coming and the meeting at the end of the month, we want to pay close attention to the message of the euro versus the dollar. dollar getting stronger fed gets closer. a lot of the greek issues have drifted away from it.

euro versus dollar but the two-day, we're flirting with 1.10. didn't get below it. that's what it looks like since june. >> rick, we'll see you in a bit. when we come back governor greg abbott of texas just rang the opening bell. he's going to join us at the other end of this break. dow down 2 points. don't go away.

fresh from ringing the opening bell first on cnbc we're joined by the governor of texas. his state is home to about 300 ncse listed companies representing a market cap of over $2 trillion. it is great to have you onset this morning. good to see you. >> good morning. we had a goal to take it from 2 to $3 dlltrillion. we are drumming up business. that is because as great as the texas business market has been we just made it even better.

this past session, we lowered taxes in the state of texas while other states are raising taxes, we cut them by $4 billion. we invested it in roads and education so the future of the state of texas is even brighter and it is attracting businesses from new york from new jersey and from the country. >> we've been sitting here at the desk watching the price of oil get sliced in half and watching production come down and reading reports that warrant a recession in texas. somehow that squared with reality? >> texas has continued to grow jobs because we have a very vast diversified economy. what state in the country has the largest amount of technology exports? you would think california. i asked the question because the answer is texas. it shows how diversified we are. we lead the nation in technology exports. we have the largest medical

senatorsen center in the entire world. we're doing more in technology. today in arlington texas general motors is investing $1.4 billion in another manufacturing facility. we run the gamut as far as a broad-based economy is concerned. that's why we're here attracting even more businesses to texas. >> speaking of technology the amazing breakthroughs in oil and gas, they are american breakthroughs. do you think that your state is able to pump as much as it was with far fewer people doing it and do you expect production to not peak in 2015? >> this is cool jim, because i want to show you where we're going. it's one thing to be where we are today. let me tell you what you're going to be talking about next year and the year after. facilities are being constructed as we speak for the exportation of natural gas. and so we're going to start

selling this across the world. i have had countries lining up in my governor's office in texas begging that they be put on the list of being on the receiving end of the natural gas that we will be exporting. you will see an increase in natural gas and oil production in the state of texas. >> and those jobs, i know free port wants to but it appears to me to be a good article -- this is enough infrastructure. can we build more ports? can you help people be able to build more ports? >> we're doing it as we speak. texas is going to have four robust ports. houston, corp. us christy, brownsville and we're shipping this stuff right and left with the expansion of the pan in aama canal. we have so much more and you will see the robust texas economy grow even more vastly.

>> governor, as somebody who relies on city services in new york and i hate -- governors keep coming up here and hurting our tax base. back to texas itself one area that i've discussed with this governor perry as well that you get criticized for is spending per pupil. can you respond? >> at a time when we cut taxes, we invested more in education. in fact i set up a new program to attract noble prized lar yats to texas a and m. we're putting hundreds of millions of dollars into education. texas ranks third in the nation for high school graduation rates. first in the nation for african american and hispanic students. we're doing even more with regard to the job training skills that are needed in today's market as well as in

higher education. one quick story and that is i was at a ribbon cutting for amazon just north of san antonio, and the big executives from amazon came in from seattle and i asked them a question i thought i knew the question to. i said why do you keep opening up the large centers in texas. immediately he said top quality work force. and so we have a great work force. we're making it even better by investing even more in education. we're third in high school graduation rates now. we want to be number one in the nation for high school graduation rates in the future. >> when donald trump diszs the border what do you say? >> we do a billion dollars worth of business with mexico a day. so the economy relationship with texas and mexico is robust. however, at the same time, as governor of texas, i just signed a law that invested $800 million

to secure our border. we're putting boots on the ground boats in the water, and so we're going to have a more robust secure border than any state in the history of the country. >> how about the presidential election real quickly? you have one of your own, senator cruz running. you are the leader of one of the largest states in the union, and a republican. who are you going to support? >> i'm going to support the candidate who for one, commits to securing the border, two commits to enforcing the constitution, three, committing to reigning back and overreaching epa, four i would love to peel back dodd frank a little bit but give states a little more autonomy in their medical structure. >> who is that? >> listen everyone in the country is running for president. we need to narrow it down a little bit.

>> everyone is in our ears saying we love you too much. des, will he play? >> he got cheated in green baey. that was a catch. >> you're living in the past sir. that was robbery. i was looking for a couple of people wearing pinstripes to arrest. >> that was a catch. governor, it's great to have you. thank you so much. governor of texas joining us here at post nine. we'll get to stop trading with jim in just a moment. don't go away.

time for cramer and stop trading. >> it's been a long time since someone has said cokeca-cola can get out of their range. this could be a breakout quarter and i think no one went wrong buying coca-cola. weapons pepsico had a great quarter. coca-cola shows you have a beverage company is by itself. but i think mutar kent might deliver. we have chart week continued this week on mad money. i do not want to reveal the stock but i think you're going

to want to watch and be impacted by the report. >> we'll see you tonight, jim. >> great show. i thought the governor -- i love that optimism. >> we'll get business inventories after a break. don't go away. push your enterprise and you can move the world. but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come.

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♪ good tuesday morning. welcome back to "squawk on the street." i'm carl quintanilla with simon hobbs and carl faber. a couple of days of 200 plus gains on the dow. jpmorgan and wells both reported this morning. jpmorgan beating by a dime. wells meeting but revenue was light. >> breaking news on inventories with rick santelli in chicago. >> reporter: even though we had june retail sales the last second half of the second quarter. we learned that may business inventories increased exactly as

expected, up three tenths of one percent. we want to continue to monitor inventories for that among other reasons and also atlanta fed gdp now should update later on today with the current data that will be significant. all of today's data has been on the soft side. >> our lead this morning after years of talks, iran the u.s. and five other major powers reached an historic nuclear deal today. the agreement will mean things will be eased. we are look at hq manywith more on the story. >> reporter: president obama has wanted this deal very badly. he was out at the white house at 7:00 a.m. heralding this deal

and anticipating stiff congressional resistance. >> i welcome a robust debate in congress on this issue and i welcome scrutiny of the detail thofs agreement. but i will remind congress that you don't make deals like this with your friends. we negotiated arms control agreements with the soviet union when that nation was committed to our destruction, and those agreements ultimately made us safer. i am confident that this deal will meet the national security interests of the united states and our allies. so i will veto any legislation that prevents the successful imp menation of this deal. >> reporter: here's the significance. congress has a vote on this iran deal, both the house and the senate but they don't have to vote in favor of it. if they vote negatively and say no deal president obama can veto it and the only way the deal is stopped is if they muster the two-thirds necessary

in both chambers to stop it. that is very unlikely given the levels of democratic numbers in the house and senate. >> because it's not officially a treaty. >> that's right. it's an executive agreement. of course it could be altered or junked but a future president, but barack obama is counting on hillary clinton succeeding him and sustaining this deal and even if a republican were to defeat clinton clone and become the next president, he's hoping that this is so difficult to reverse that that will not be done. >> okay. thank you very much for that. oil prices bouncing off their earlier lows in the wake of the news flow overnight. much expected during the last few days. we have the global head of kmoimds at research. thank you for joining us. >> good to be with you. >> let's get timing from oil

supplies from iran to flow back to world markets. presumably they have to dismantle the centrifuges and destroy the iranian stockpiles before they get a green light, six months maybe? >> certainly we now have a date certain. it's not before december 15th because that's the date that the iae needs to certify about the weaponry program. no earlier than december 15th and probably a couple of months after that. so the interesting thing about the sanctions is that they don't get phased out. they get lifted or they don't get lifted. >> okay. do you have an idea of the volume of oil because obviously you haven't had the big western investment. we know that for some time. shell would like to get in there. i read they've got 40 million barrels sitting in tankers that they could release more or less immediately. >> two issues is oil and tankers

and what they can surge up in the way of production. the oil and tankers is a bit misleading. about two-thirds of it is blended crude oil. it can be exported under the sanctions regime. the question is why is it not being exported. the answer is it's so high in sulfur that no one wants to take it on except for at a steep discount. two-thirds of the barrels is not overhanging the market. only about one-third is. and then in addition to that there's the question of how much they can surge. the oil minister from iran has touted a million barrels a day within a half a year. nobody who looks seriously at that believes either that the market can absorb that amount or that iran can produce it. we're thinking realistically about 400,000 barrels a day. maybe 200,000 at the beginning and growing.

it's a 2016 event. >> which doesn't sound a lot unless you're already amply supplied in the market and the question becomes if nobody else is going to reduce their output is it a race lower than prices as an attempt to keep the market share? >> certainly, this is a bearish overhang on the market. we've had the recent reports, none of which included iranian incremental production on the market. they all point to stock builds not disappearing any time. it will have a negative impact on prices. >> okay. what sort of impact do we have in there are some people suggesting that today isn't really about iran. it's the fact that we couldn't keep oil at 60. those long in the market have gone short. the dollar is moving. the effect comes further down the line. talk about the price action and where you think it's likely to go. >> the price action now is a

result of a lot of things. data points on u.s. drilling activity, where u.s. production goes is a big wild card. is u.s. production going to be down a half a million barrels a day or is it going to be slightly up. our view is it's flat to slightly negative but we also think given the resumption of drilling, we could see a rebound in u.s. production. that's also an additional bearish factor. the global gdp situation is not warm and fuzzy. we have a global gdp that we at city think is around 2.6%. the recent news from china is another negative factor on global gdp. gdp being kind of tepid means oil demand is not going to grow as rapidly as people are thinking. there are these demand moving parts and then there's also the overriding question of saudi arabia and how much they'll continue to produce. >> just so put -- i'm anxious

for you to put a figure. where do you think we'll be trading in six months or a year? >> six months we think we're going to be at exactly the same level we are now. and it'll maybe go up a bit in the third quarter. we think it's going to be volatile movement but downward pressure bearish to the downside. how far down? we'll repeat what we said before. if nothing gives, production will have to be put in. that hasn't changed at all. despite the noise. >> it's good to see you. thank you for taking the time. >> markets relatively flat today. s&p trying to get the first four-day winning streak in a few months. a chief economist joins us this morning. good to have you back. >> thanks. >> a good set of notes the last few days from you.

you argue that tsipras actually collected some political capital. it seems like you don't -- the math does not suggest to you that greece is going to do much of anything from here on out. >> well i think that ultimately, you know greece is going to be their feet will be held to the fire. this time around compared to the last few including 2012 their feet was held so close to the fire this time around that i think they're going to be forced to aggressively meet their targets. and i think they will. the bottom line here is that tsipras was really doing nothing more than following the polls. when you look at the polls in greece during this whole crisis you had an overwhelming percentage by a 2 to 1 ratio, greeks that were saying they would rather say in the euro and accept a bad deal than the opposite by a two to one ratio. they ended up getting what they

wanted. they're still in the zone for now. but the austerity is going to be far harsher. no question about that. >> and now we're left to worry about china and wonder what the fed will do what yellen will stay say beginning tomorrow. i like you say why you're in the no move camp for this year. i'm guessing things like retail sales back it up. >> we have the nfib index this morning. it's a huge move. it's only happened three times in the past and two of the three times the economy was in recession. the imphieconomy is not in recession but you're going to start to find in light of the latest data that second quarter gdp estimates are going to come down a little bit. there's no question that the fed collectively want to desperately move off of zerp. it's a matter of timing.

i found once again, you know the headlines are all about janet yellen saying the yesterday is prepared. that's a base case in terms of raising rates sometime this year but nobody mentioned the caveats and she did mention the high degree still of business caution that's out there, and she mentioned the word uncertainty as many times as she did back in march. when you're uncertain over the outlook, you'd better produce some vigorous economic numbers to generate that first rate hike. i'm not sure we're there yet. >> can you afford to be constructive here with markets 2 % off the all time highs? >> well i'd say that we're right now, i'd say a little more positive say, on the eurozone where there is more compelling valuation. japan, the japanese market has proven through the periods of risk on risk off to be a very reliable market this year. and they're not relying on a

depreciating yen as much as they were 12 or 24 months ago but the u.s. market has become a classic stock picker sector selection market. we're barely up for the year. this is where active fund managers like us have to prove their mettle. but have the sectors are up. half are down. we'll talk about a flat market. if you've been along the utilities and the energy and the industrial names that are hurt by the strong dollar you're down 7% for the year but if you've owning the health care the consumer discretionary, the technology stocks you're up 7% for the year. sourcing is normal. we have 15% annualized price appreciation. barely 5% earnings growth. at some point you think we're going to press the pause button. i think that's the story of the year. >> a lot of people passing around recent years of flat years followed by big years. we'll see how the second half

shapes up. nice to talk to you. thanks. >> thanks. >> a mixed morning for bank earnings. what is the tone for the financials moving forward. and johnson and johnson beats the street but shares are lower. we'll take a look at that when "squawk on the street" comes right back this tuesday morning. it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank.

financial earnings mixed this morning as jpmorgan reported profits higher than analyst estimates but wells saw revenues mix expectations.

both shares higher this morning. joining us is a ubs analyst. i know that they benefitted from a lower tax rate at jpm and of course, i remarked on the first time seeing legal expenses down sharply year over year. give us your sense over all to the quarter. >> right. no you hit on two of the big points. it was a little bit below where we were looking for, but all and all, reasonably good quarter. the environment isn't exactly great. if i can was pretty difficult. that's the commodities trading and the like. that was the big delta as far as the revenue miss. probably one of the big sources of weaknesses. there were some positive points though, to pithit on. net interest margins expanded a bit. we haven't seen the fed take the first move and i know that's got

a lot of bank investors excited. the idea that jpmorgan is going to get to benefit once the fed starts to lift and also you had some loan growth that was better than we were looking for. it wasn't all bad, per se and then finally they brought down deposits in a big way. the nonoperating wholesale deposits. that's a big capital hit for jpmorgan. all and all, a little bit good a little bit bad. what i would call a mixed quarter. >> but you're not particularly positive on the stock. i see from a recent report you're talking about a $65 price target. why is it that ten times 16 numbers is justified here. why not a higher multiple? >> we revisit our price targets every quarter, and so we'll be taking a look at that today, and thinking about with the fed about to raise, maybe we use a

moderately higher multiple for the banks broadly because we need to start to think about markets pricing it a little bit more juice on the nii side from higher rates. i don't know whether i would look too closely at the price target per se. the reason i'm neutral on jpmorgan has more to do with the fact that stock is near all time highs. there are other names that i think are more intriguing. when we think about what happened today and what it might mean for the rest of the space, fik was -- equities for strong. morgan stanley and then goldman sacks, goldmanthe results bear well for those stocks. >> before we come onto talk about wells fargo, on the shrinking of the deposits and the desire to get a better deal on the capital surcharge from

the authorities, can you talk us through the promise on investor day and where we are now. to what extend could it move the stock in the future? >> they had gone through and walked through a reduction in the deposit base the nonoperating deposit base. they've brought down 100 billion so far in two quarters. that's better than i expected and other analysts. that's my sense of things. what they're hoping to do nonoperating deposits are treated poorly under the liquiditity. that means you have to hold liquid assets versus liabilities that could walk out the door quickly. nonoperating deposits are clearly in the latter camp. you need to hold a lot of cash against that. it is incouple bers your balance sheet and so it's a problem for earnings, and it's a problem for

capital. also you've got interconnectedness and complexity. these are issues under the calculations that add to the surcharge, the systemically important surcharge from the fed lays on top of these big banks. it's all fairly problematic for jpmorgan and that's why they're trying to work that down. >> as we see the stock up and the group up as well not dramatically but up nonetheless, we bid you thanks and we'll see you thanks. >> thanks very much. >> when we come back j&j beating expectations. so why is the stock down half a per senta% percent? more on that when we continue.

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expectations but the company taking a currency hit on international sales. we have more on that story. >> reporter: that's right. the company beating eps coming in at 17 1 per share. coming inline with revenue and raising the full year earnings guidance to 610 to 620 per share. an impact of about 8%. if you look at the three different business units, pharma has continued to be one contributing to most to beating expectations but you can see there currency took a hit across the board. pharma did increase 1%. medical devices, consumer increased 2.3%. tylenol and myotrin and things like that. are they going to make a big

purchase in pharma because they wor were said to be a potential buyer and questions about competition coming to their big rheumatoid arthritis drug. >> thank you very much. straight ahead on the chairman, the ed lazear will join us. the retail sales figures and what he thinks about the nuclear deal with iran. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ the 2015 cadillac ats. lease this from around $269 per month, or purchase with 0% apr financing

here is your news update at this hour. scathing criticism from benjamin netanyahu of the iran nuclear deal calling it a bad mistake of historic proportions and one that israel is not bound to. severe weather causing lots of damage in quincy illinois overnight. the storm packing winds of 70 miles per hour. quincy's mayor declareing a state of emergency for that area. by nasa's calculations, we've made it to pluto. the closest approach came at 7:49 a.m. eastern time when it flew within 7800 miles of the dwarf planet this after a nine

and a half year journey. france celebrating bastile day. the french president preside aid long with his guest of honor, the president of mexico. and that is your cnbc news update this hour. back to squawk now. earnings season is now in full swing with jpmorgan and wells fargo reporting number. j.p. beating on the top and bottom lines and wells, the revenue lower than some expected. >> good morning. the reason why these two companies are so indicative of strength and earnings j.p. morgue season looked at as a barometer and wells for the

barometer for the housing industry. any benefits they saw came from causes from internal forces at the company rather than positive external forces from the broader economy. jpmorgan you saw the bottom line beat. that was because of the cost cuts and a lower effective tax rate and without the tax benefit they only beat by a penny. at wells fargo, the number for eps met expectations but because wells fargo has been buying back shares, there's fewer shares. the bank also released about $350 million from reserves that were previously set aside for loans that would go bad. analysts expected continued low rates to keep spurring loan demand. helping revenues overall but slightly hurting profitability and while we saw that happen it didn't really happen to the degree that many on wall street expected.

jpmorgan told invest tofrors just a few moments ago that's because the bank is being cautious about the loans it takes on in certain areas like middle market loans. >> everybody likes the sector for growth. everybody is trying to make progress, and we're being very disciplined. as a result of that slightly lower growth in the industry average. >> they're not just taking every loan that comes their way but jpmorgan saw total loans rise about 6%. wells fargo 5%. each bank on net interest margin rose by a 2 basis points over the last quarter but eve an rise in this environment is considered a good thing. with the other costs, returns by investors are hard to come by. wells fargo 12.7% return on

equity. jpmorgan's roe hasn't bunged. while you would think some of the winds would be moving in their direction, they're considered head winds. let's get >> let's get over to rick santelli. >> reporter: not only one of our favorite guests one of our favorite guests in chicago in the pits. ed lazear former head of the counsel of economic advisors under george bush. welcome back to chicago. >> good to be back here. >> you saw the retail sales day today. listen it isn't recession nar, necessarily, although i hear people talking about has the glide path changed? are we still very low and maybe a slight delta to the downside over time? >> that's what i would say. the reason for that is that the

best predictor of where the economy is going to go is to look at the market. if you look at is s&p 500, look at people who know and ask what they're saying. >> look at the fed? >> the fed too. i like look agent the private traders. if i look at the market and i look at that the s&p 500 is saying, it's saying about a 2.5% growth next year. that's kind of consistent with where we've been. no breakout but no crash to the downside either. that's lower than the prediction has been for the past year. if we did this a few months ago, we're predicting 3%. >> when you look at the zero interest rate policy are you surprised we didn't get a high eer rate of growth at some point through the process. it doesn't look like we're going to surge from here. if we're looking at a bell curve, is it safe to say our

best growth under current policy is already by us. >> the most effect the fed has had is behind us. if you think in terms of fed policy, that has the biggest effect initially and it dies out over time. i think janet yellen is quite aware of that as well and she understands that even if the economy has not taken offer, fed policy is not likely to be particularly productive in getting it going there. so as we were chatting earlier, what do we think the fed is going to do? i would expect that there will be a very slight increase in rates over time probably starting late this year and going on through the next couple of years, but nothing dramatic nothing radical. i know janet well and that's not consistent with her personality to do something that's wild and crazy. so -- >> isn't it kind of wild and crazy in slow motion to keep policy in place this long without the big surge? >> right, but again i think the concern of the fed -- >> boiling fraud. >> right, and the concern of the

fed is they look at the history. they don't want to do anything that's too abrupt. >> 1937 might have done a lot of damage in the 30s but it's done more damage to faulty research in my opinion, han anything else. listen, down here traders were a bit angry that china's market is so massaged at this point in time. truly, aren't we only arguing in the words of winston churchill, about the degrees of manipulation. don't all countries, there really isn't a market that is has vibrant and real in price discovery today as there was as little as ten years ago? >> it's true. whenever you have regulation and have a strong central bank and whenever you have significant fiscal policy as we had back in 2 2009. >> stronger stubborn central bank. >> but certainly a dominant central bank not only in this

country but in the world economy, you know you're going to have effects on prices. that's well documented. >> are you talking about something we've been talking about forever? the only why an investor could get any semiblance of seedbackfeedback is looking at the market and getting the feedback through markets. whether it's the japanese buying e minis. if you don't have plunge protection in your country, it's hersey. investors are blindfolded and trying to pin the tail on the price. >> well i actually believe that the market is pretty strong and that even despite strong government policy and effects that may try to undo the market -- >> all the write offs that come every quarter, i'd think that the balance sheet signals are disported as well. >> true but those are short run effects. i think in the long run, it's

the first indicator we have. >> now if we can find a group that's liquid and has the ability to trade in the long wrong. any price discovery that's left one minute is too long. you are the man. thank you. simon hobbs, it's all yours. >> thank you very much. rick santelli in chicago. still ahead on the program, uber's employee number three, the former ceo of the company will be with us to respond to hillary clinton's comments yesterday about the sharing economy. that's coming up later.

>> how concerned should investors be about the entire global economy in doctor gloom and doom joins us. mark fauber will join us. more "squawk on the street" coming up next.

shares of micron technologies up sharply this morning over 10% on a number of reports that it is the subject of a 21 a share offer from china's holdings. we do not have confirmation of that and for its part micron has not given us any clarity on the situation but as you see the stock reacting to that. if this were to come to pass the question remains would it actually pass the national security review that might have to take place given this is basically the nation's only maker of d rams. also an important contributor in terms of flash memory in a national security review might have to take place and might result in the government saying no china, you can't own this

company. all that said you see the stock reacting quite positively to those reports. >> or would you accept $21 a share when you can see at the chart it's been $36 in the last few months. >> absolutely no idea what the company's response would be if it received a formal offer which it does not appear to be the case as yet, at least according to micron. >> the governor of ohio is among the most recent entrants to the republican field. we sat down with governor john kasich to talk about the economy and greed on wall street. is this a speak easy? >> it is. and john kasich came to national attention as the house budget chair to negotiated a balanced budget deal with clinton in the 1990s but now as he's preparing to enter the race some people

aren't happy with his fiscal past. >> i was looking over the report that rated the governor policies. they gave you a d. they said spending has risen and that you raised some taxes while also cutting taxes. >> i don't know what their rating is. >> brownback got an a. >> good. i come in. we have an $8 billion hole. we are structurally imbalanced. we had lost 350,000 jobs. we went from eight in the hole to 2 billion in sursurplus. we are up 347,000 jobs. i don't have much more to say that. >> are you willing to take the

norquist pledge. >> >> i already did. >> you're running under that pledge now? >> i don't know. you're trying to get me in the weeds and i'm not going there. >> john kasich is one who is pushing his party to a different message. it's going to be fascinating to see how he navigates the republican based resistance but he said don't confuse the republican party just with elected officials. >> interesting. thank you so much. when we come back john chambers joins us live with his take on the latest events in greece. dow hit 18 k for the first time since june 23rd. back in just a moment. that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans they could save you in out-of-pocket

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because we're here we're here and we've got your back. legalzoom. legal help is here. markets relatively stable here. dow back is 18,000 but oil the story all morning long as don will tell us. >> what's happening now, energy a top performing s&p sector. oil prices slide. among the leaders, names like diamond offshore and chesapeake energy south western energy moving to the up side. again, a flattish market overall but energy stocks showing

improoum. >> we may have reached the deal in greece but the drama is far from over. our international correspondent is live in athens with the latest. good morning, michelle. >> reporter: the race is on here for them to pass legislation by the end of tomorrow so that way greece will qualify to begin to negotiate for a full very large refinancing package worth up to perhaps 80 billion euros. that's the task at hand here. we expect to hear from the prime minister here on national television. there's a race on in brussels as well when european finance ministers gather for a meeting of all european finance ministers. they have to figure out, we'll show you a calendar of july only, there's a race onto figure out how to pay greece's immediate short-term debts. including a debt on monday. what they didn't pay yesterday

and last month and in august there's another 3 billion due to the imf as well. the problem is negotiating the new big pack kangage isn't going to be done it's a eurozone problem, but they brought in the entire european union. the finance minister george osbourne arrived and made it clear, don't expect british taxpayers to foot the bill. >> across urineeurope, that the greek deal is signed and sealed. let me be very clear, britain is not in the euro. so the idea that british taxpayers are going to be on the line for this greek deal is a complete nonstarter. the eurozone needs to foot its own bill. >> we're waiting to see what gets decided. there's a fund called the esfs fund which is european-wide that was on the table under discussion. that's why he's bringing that

up. they've got to figure out how to get the ecb paid on monday. >> michelle, stay with us there's some interesting pieces the "washington post" story this morning for example, about tech start-ups that are basically collapsing from within because it's impossible to serve their clients. in the words of one tech founder, it's like our limbs are coming off. and then there's all the political discussion about tsipras and what kind of coalition he can cobble together, most likely with some of his most ardent opponents, right? >> yeah. those are two things that so on the latter yes. he's got to cobble together some kind of brand-new government coalition, something. a bottom line though the analysis is he's going to have the votes. quiet is what's the form of government going to take here? this is a parliamentary system, not like the united states. on the issue of the start-ups, it's been heartbreaking, we spent half a day at a place near

the acropolis, designed for start-ups, it's an incubator. we interviewed a bunch of kids and they're in silicon valley with the glasses and beard and whole thing. a lot of them haven't been able to do anything because their cloud-based service is in the united states, amazon and their credit card is here their funding is here and their money can't cross the border. it's been difficult for them as well. you think of the internet being borderless, but money -- has to cross borders at some time. back to you. >> yeah. bills have got to be paid. michelle thank you. michelle caruso-cabrera live in athens. for analysis on greece let's bring john chambers head of sovereign ratings for standard and poor's. do you think tsipras can get the deal through? >> we may get a deal from parliament. we rate the bonds on triple ccc minus, a very low rating indicating the risk the of

default to commercial creditors is still quite high. greece is currently in default to the imf which is an official creditor. >> do you think the greek government will fall? is that what you're saying when you talk about extracting political costs? >> well whether the government falls or whether it doesn't fall you'll likely get an agreement i think tomorrow on the package. but there's very little you know popular backing for this. it's going to be a difficult program to implement. there's many more legislative steps to go through. it is it's a difficult package. >> i would like your opinion, i'm sure that you know this situation extremely well and many of the players, the german finance minister wolfgang scheuble has made some comments, that seem quite strange. that he said there are many

people inside the german government who believe a greek exit would be in the best interests of the greek people. as such a stressful time for the greek as as they're trying to vote on this you're almost left with the impression that serum the german finance minister would quite like the greeks out of the eurozone what would you say? >> i think you should ask limb what he thinks about that. but it's clear that there's a lot of exacerbation on both sides of the table. it was a proposal that went beyond what was rejected in the referendum last week by 61% of the greek population. it's i don't think there's any good solution to this point. >> in order for greece do repay its bills, it has to presumably function as an economy. therefore its banks need to function. how do you convince people in greece, hey, when eventually they reopen the banks, you don't

need to take your money out, you're going to stay in the because that's the deal that we're going to have. given everything else that's come on. how do you stop a greek bank run once it's started? >> the greek bang run has been gn or for the last six months that's why the emergency liquidity assistance from the ecb and the bank of greece is 89 billion euros. and there's much of the money is already out. but to instill confidence you're going to need to have a program that the political leadership is fully behind and is perceived to be fully behind. and you're going to need the ecb to increase the amount of the ela. that's pretty clear. i think once the banks reopen and there's full confidence that the ecb is behind them that that will help to restore depositor confidence.

but it's a risk that you could have further declines in deposit levels. >> okay. mr. chambers, we'll leave it there. thank you for your time. john chambers joining us from stannard and poor's. let's send it over to jon fortt with a look at what's coming up on "squawk alley." >> we'll talk my kron, a state-owned chinese company has made a huch bid for the chip maker. the stock sup better than 10%. and flip card the amazon of india. we'll have a top executive talking about the transition to mobile and what's next for that company. and the former cto of uber wants to bring something like that mod toll medicine. uber for medicine. about a biologic this is humira. this is humira helping to relieve my pain and protect my joints from further damage. this is humira helping me reach for more. doctors have been prescribing humira for more than 10 years.

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my business... that's huge for my bottom line. what's in your wallet? we're looking on the s&p for the broader market for our first four-day winning streak in almost six months. s we appear to be able to put greece to the back burner and of course importantly, as we start earnings season. let's hand it over to carl and the gang for "squawk alley." >> good morning, it is 11:00 a.m. here on wall street and an

historic day, three billion miles away on pluto. "squawk alley" is live. ♪ ♪ ♪ ♪ ♪ ♪ welcome to "squawk alley" for a tuesday. you got to play flash gordon on a day like today. joining us jon fortt and kayla tausche. some asking if jon won the masters with the coat. >> not only did i get the green jacket, i snagged the pants, too. >> first up, it appears that this week analysts are starting to shy away from potential, highlighting what works and dumping what does not. bernstein downgrading intel