question? >> it's a necessity. >> i'm out of here. >> are you coming in tomorrow? >> you can get me back tomorrow. i'm here all week. >> you think i'm jealous? >> i'm going to your house. >> i'm going to see what you have. >> we'll all be here tomorrow. "squawk on the street" is next. ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. it's the first day of august. a big week. retail and media earnings. isms, jobs number on friday. ten-year is hanging onto 2 .2. oil, another bruising session. close to 46. the lowest since march. the road map this morning n the president expected to unveil the

first national standards to limit carbon emissions from power plants. >> at&t releasing the first given the completion with direct tv of that deal. >> and more monthly auto sales due today. chrysler and nissan are out. coming up soon ford and general motors. first up wall street is gearing up for the first trading day of august. last month the s&p rose almost 2%. dow up 4 %. the nasdaq the best performer of the three, up 2.8. greece, the stock market finally opening and tumbling after opening for the first time in five weeks. trading suspended in late june as capital imposed. the biggest crash ever and their pmis are at 30. >> you're talking about a great depression there. the makeup of that decline, coca-cola, greece greek coca-cola company is a huge part of that index.

that's down about 10%. the banks are down because i think there's a sense that the banks have to recapitalize. but remember, there are strict rules about buying stocks in greece. it's viewed as a way to do capital flight. so they're really littled. we're kind of taking it in stride. i think we're very concerned about china. once again, the chinese market goes down and the pmis are weaker there than we thought. there's no doubt about it that if greece were to just start functioning again, then you would see some good numbers in europe. we have been having some pretty decent things occurring there. greece is bad. the rest of europe is a little better. china not good. i don't know china. i mean it's just not good. >> we have some additional pmis out of china overnight. the official one is at 50. roughly in line but others at $47.8. that's a two-year low. you've talked about them being

the marginal taker of everything. that explains why there are new raw materials at new lows. >> one of the things that's interesting about china, no hedge fund i talk to trust these numbers, and yet, what would be the real numbers? and i do think there's a general discussion about how much the stock market represents the real economy, and i think the stock market can represent some of the consumer portion of the economy. the so-called real economy, manufacturing side is very bad. that's how you see iron hit and trading a lot. you see a glut. i think people are saying oil, iran comes on total of 1 million a month from now. china is not the marginal taker anymore of oil. the china picture is more grim than i want it to be. europe is better than i want it to be. maybe they could balance out. >> maybe they do but you take a look at copper or more importantly oil. in particular what's happened over the last few weeks, and i

wonder whether, when does good news become bad news j so to speak? >> that's a great question. if you read the exxon and the chevron call i don't think there's such a panic at these places but there's a sense of wait a second. we thought there could be a v of recovery recovery here, and then a year recovery and now there's no recovery. that's a very big change of stance. >> and as we pointed out, it's not that -- it's going to impact their stock prices but not their balance sheets in a meaningful way where people need to get worried. but second tier third tier we need to start having the conversations again. >> i agree. a lot of the questions were exxon, you have the capital. do whatever you want. isn't it time to do m&a? . they're a big company, but it does address these questions. they say we'll do what's right. but they didn't say we're

looking for bargains and i think that was people. chevron said we'll do what's right. we'll support the dividend. exxon cuts back the buyback. they bought a lot of stock higher. then you question if they know what they're doing. i think there's a great long-term view. but i think a lot of people felt it isn't just the time for the consolidation talk. you didn't get that from exxon. and certainly not from chevron. >> as far as the markets, august down four of the past five and it's been wild swings. last year up 3 .8 on the s&p n. some of the prior years, down 3.1. down 5.7. >> this is a very thin market. it's just i think that when you see news there's going to be an overreaction. there's another question about the volatility being great after the earnings. there's not as many players, individual investors trade etfs

now. i think that we're going to overreact to anything. anything that happens, we will be overreacting. that's why this week is so important. i think retail sales, i think we'll react. we'll react to every piece of data. we're going to be like wow. it's glaring. i saw china was down. china down again next time. wow. we can't have china fall to the nasdaq. the nasdaq trajectory of 2,000 overlayed on the chinese trajectory, you can't see the difference. >> the president is expected to unveil new rules for carbon emissions. the white house's clear power plan will increase the required decrease in national standards to limit carbon emissions from power plants. they are looking to reduce the levels by 32%. the national mining association

says it will seek to block the plan in federal court. mcconnell is advising governors not to come ply, period. alpha natural today filing for chapter 11. this is amazing. >> if you look at the coal loadings this week coal is -- this was a glacial decline of 2%. now it's in the areas that are coal states. it's just almost as if they've stopped taking coal. now, alpha was the coal that you need to make steel. the thermal coal i think most of these plants that they're closing are 40-year plants. they have a 40-year life. coal is still 35%. >> it is. they want renewables to get up to 32%. i think it's 2022 when the states have to start complying. this is not dissimilar from the

plan we've all heard about. it's not as if coal hasn't been in decline as a result of cheap natural gas. they are favoring nuclear energy which i think is interesting. or not favoring but -- including it in that total. >> i speak to almost every single major utility company in this company. there will be no nuclear plants built. >> but that's a cost thing. as part of this plan they're saying nuclear is okay. >> we can't make them. they don't know how to make them. >> there are a couple coming online. >> a huge overruns. the rate base has to bear it. i think the main thing is when a coal plant is retired, it's a natural gas plant that replaces it. the rex pipeline is going to be able to take all the natural gas you need to the southern. coal is dead. >> it's wind and solar that they really want to replace it not

necessarily more natural gas even though it has a much smaller carbon footprint. you also need billions and billions in infrastructure to support it. especially the people who put their solar panels on their roofs and are sending the energy back to the power company. >> the utility companies said they can be wiped out. the solar people say that's ridiculous. there's 50 million roofs in the company. one thing i would point out, all these utilityies say this stuff is fabulous when it's windy and sunny. the rest of the time -- >> works in some parts of the country. >> and then the battery. >> baseline the level you have to have, coal is going to be in the mix. these companies just -- when you buy -- alpha natural buys mas si at a good price. china set the price for coal for a long time. they were talk about putting a coal plant up every week. the problem with coal the

chinese communist decided that with the million people dying every year of respiratory illndillnd illndillnd illnesses, maybe we need to pull back. >> and we'll be joined by a senior advisory overseeing these things. >> at&t announcing it's going to bundle its offerings with direct tv. beginning a week from today, at&t plans to offer h.d. and dvr service for up to 4 tv receivers, unlimited talk and text for four lines. all of this part of the combined offering part of the deal that they at least offered up as an opportunity for the consumer when they were in the midst of trying to get it approve nfltd they finally did. they closed it on the 24th of july. that being the purchase of direct tv and the analyst community seems to slowly come

around to the benefits of the deal. at first people questioning it. the most important component being the addition of cash flow that will help solidify that dividend. we know the payout ratio was getting close. but we'll see if this gives them any traction in the overall marketplace. we know how competitive it's been. we all seesaw the t mobile numbers after we got verizon and at&t. at&t and verizon, he may call them one thing but they are also big and biggest. >> right. i think it's a substantive issue that you might want to buy at&t more than you did before. i keep thinking that verizon has always been the fair-haired company versus at&t and ten t mobile comes in and john legere in this whole grill of methods he has going sl there is

eviscerating people. i think it's good. i like at&t. it's a better bond market equivalent than it was before the deal. >> ford and gm are putting their numbers out in a moment. first we'll take you to san juan for the latest on the puerto rico debt crisis. one more look at the market and more "squawk on the street" in a moment. hello. i am a fully automated investment advisory service. i can help you choose investments. monitor them. and rebalance your portfolio. i can do a lot of what humans can. except have a real conversation. if you'd like that, you can always speak to someone at schwab. they aren't algorithms.

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ford just about to release the auto sales for july. we are in chicago with the numbers. good morning, phil. >> reporter: a big month for ford. sales increasing 4 .9% last month. that's double what the street was expecting. it was expecting an increase of 2%. and what really drove ford trucks and suvs. in fact, when you look at the suv sales last month, up 13.4%. trucks up 5.7%. and first of all, the f series alone, ford sold more of the f series alone than it did all of its other cars combined. that's ford and lincoln cars combined did not outsell the f series which speaks to the demand that's out there for that

truck. and when you talk about suvs being in style right now and in favor, especially with lower gas prices ford explorer sales up 27.2% last month. gm numbers in about 15 minutes. >> thank you very much. phil of course -- >> this is a difficult situation for people at home. you keep seeing these amazing numbers from ford. you keep seeing them do everything right. then you think why is the stock always at 14/15. these are big international companies. even though ford isn't as big in china, people say where is it going? it's big in latin america. >> the focus in china is on those sort of second tier and third tier cities. in the earnings call he said we're bullish in china but it's going through fluctuations. we'll work through it in a positive way and grow the

business. that from the conference call. >> and you cannot do better than mark is doing in the united states but he is stuck with ford being a world company. they've done a lot of things right at ford but in the end when people say why isn't that -- there's a doubling in the numbers, why doesn't et go back to where it was in 2011. it's a big worldwide company. concerned about latin america, i am. europe, gm is ahead of ford i believe in the turn in latin america, but these companies are widely considered to be only a portion as america and we don't want to make too much of their sales other than to say they're doing pretty great here. it's not enough to move the needle. amazing. amazing how big these companies are that it can't move the needle. >> let's get to puerto rico now and the latest on that crisis there. a weekend deadline came and went without the u.s. commonwealth making key payments. we are in san juan kate. >> reporter: good morning.

a $58 million payment does not appear to have been made. they still have a little grace time. i'm here with a delegate from the u.s. congress. he's puerto rico's nonvoting representative in the congress. he's recently within minutes issued a press release condemning the government's decision not to make the payment. >> it is the first time in puerto rico's history that the government fails to honor one of its payment obligations. regardless of the fact that the constitution of puerto rico does not specifically guarantee this payment, it is the moral obligation of our government at the very least. it is our name our credit worthiness at stake, and the funds were available. it's just a matter of the strategy that the government is following to force creditors to come to the table to negotiate. i disagree with the strategy. we should be making your payments and at the same time to the extent you need to restructure any obligations,

then sit down and negotiate. you shouldn't fail to make any payments. >> reporter: you think this posture, and you're political opponents. you're going to be running against him in the next week. why does it harm the economy and the people sneer whyhere? why do you consider it detruktive? >> this particular bond issue was marketed a lot in puerto rico. they are co-ops like credit unions, individual investors, banks, who are going to get affected by this failure to pay. and so with this -- keep in mind that the underlying problem we have is lack of growth in puerto rico. we need financial institutions to be able to lend to local players. >> you don't want to see borrows losing access to the credit market. >> exactly. a lot of these people are retired people who trust that the government would be making it payments as it has always

done. apart from that what i see here happening is i don't see government officials negotiating with creditors as they should. with the sense of urgency that they should have, particularly with the puerto rico power authority as we speak, and down the road with the puerto rico water authority. >> we have to leave it but back to you, carl. >> thank you very much for that. we'll count down to the mad dash with jim and the opening bell in a moment. one more look at the premarket. copper in a bear market and oil lower in the weakest consumer spending in four months. more "squawk on the street" back in a moment. here at td ameritrade, they're always working. yup, we're constantly making thinkorswim better. like a custom

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♪ time far mad dash on this monday ahead, of course the market open a few minutes from now. i want to talk a little sears with you. they haven't actually officially reported, but they tell us they're going to experience the fourth consecutive quarter of improved adjusted ebita compared to the previous quarters. despite the fact that it looks negative. you look at the comp stores and you're talking down 10.7%. sears down 13.9%. because they did this offering they have $1.8 billion in cash.

$3 billion if you include the resolve.re revolver revolver. they can keep the balls in the air because they have a lot of capital. and we might like their ebita going up but in the end as we learned from the sell off in whole foods, if you don't have same food sale growth they turn on you. >> i'm starting to wonder if that's true. >> well that's a good point. i mean i think in the end there's a big short squeeze going on. >> we should point out, it's only a $2.2 billion market value now. obviously a lot of spinoffs and a lot of other things they've done but it's a tinny company now. >> they did do a reit. >> right. >> srg. i'm going to ask them tonight, black stone, a spin off. >> now clorox. >> they're interesting. people are selling it down. they

they think it's not that special a number. this is a great bond market equivalent. i find the markets fine. i think everybody who sells clorox ends up regretting it. it's like kimberly. they do quite well. i think clorox is one of the companies, they beat back carl icahn because they delivered. i'm hesitant to tell people to sell off of what i thought was an okay number. >> and kings foot charcoal. they did -- they were victorious. >> they got some good brands. it's a solid company. >> a lot more to look at this morning. keeping a close look on oil and owl all those commodities. the opening bell is just minutes away.

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was broken early by market news. and so for july a reading of 52.7 versus 53.5 in june. that's why we saw a bit of activity in the futures. but ism has not confirmed. >> in the end, our economy is strong. i think maybe someone says the fed is doing the right thing there. i mean i tire of questioning the fed a few days after the fed spoke. it's like they're not going to speak again. >> it doesn't stop us. we do it all the time. >> exactly. >> in the meantime, exxon is going to try to defend 79. >> i think oil goes to $42. i think the glut is not as bad as people think. importing a ton of oil. it's not like we're short oil. and we're not low on oil. in this country, and i think in iran we have to stay focussed. that is -- there's no room for that additional million but the

exxon quarter was not a great quarter. and the chevron was bad. bad quarters. >> well that's going to impact the dow. we'll watch that as they open. there's the opening bell and the s&p at the bottom of your screen. at the big board today, it's barnes & noble education celebrating the spinoff from barnes & noble. over at the nasdaq, biopharma focusing on developing a cure for chronic hep b infection. we're waiting for numbers. we have ford nissan up 7.8. >> honda stock has been strong. a lot of things that happen if europe is strong, don't assume that's good for it. it's good for the systemic risk of the whole market. but a lot of companies are killing us because of the strong dollar. and the dollar is set up bad

again today. need to see the fxe above 1.10. we need europe to come back if you're a bull. >> wti falls below 46. i have 45.97 right now. down another 2.4%. we talked about it constantly before. and now we've sort of adjusted in a way to this world, but we've been moving substantially lower over the last few weeks. one has to wonder not on the exxons and chevrons wbut -- >> down another 1.8%. they made changes. >> what other names should we be keeping a closer eye on. >> a lot of people are concerned about whiting. i saw them upgraded today. a lot of people want to catch these falling knives. i say let oil go to 43 and see it in bounces.

that was the level it held last time. the stocks did lead oil down. they can -- if they bottom here it's significant. exxon, this is the level. if they break to 75 you'll see a lot of forced selling but you're right. a lot of these companies, i saw magnum hunter. mhr, magnum hunter declared as preferred. >> maybe the stocks were leading the commodity lower. you point the point that the pes were lower than they had been when oil was lower than it was. >> right and i think that's what happened is we're seeing a recognition in our country that there were no takeovers. the last time around we thought there would be takeovers. >> the year is not over yet. even in august deals can happen. >> look we get, there's an anti- -- there's a fossil fuel

bias. we can't export in our country. i'm not a bear on oil if we hit 43 and bounce. i'm not. >> in the meantime, dow is being propped open. the best performing component is disney. reports tomorrow night. you mention price targets 130. they see star wars making $2.2 billion globally. i'm not sure how they know that. >> i'm a big fan of sketchers. they have a disney and star wars shoe. i think people are afraid to sell disney be ahead of star wars. it's not necessarily this quarter. am i going to sell it and hope it goes down and then buy it back. maybe an espn line is not that good. it's a dangerous sale is how people are going to view it. >> or be opening a shanghai or for a number of things. by the way, never been a good time to sell disney.

. >> is that ever right. what a great thought. not since the old days when there was the stanley gold remember shamrock. there was a time to sell when the big chunk fell down the big block trade. remember that? >> i do. >> and i don't think that -- i think that they inspire a lot of confidence. you don't feel cord cut, look out. >> the ten-year yield has broken 2.2. rick santelli has some reaction in chicago. >> reporter: carl, it seems has though we're starting to see a lot of things whether it's the staff putting issues regarding the dots in the federal reserve future outlook early. some of these numbers early. i understand we live in a highly tech world. many traders are a little gun shy to put full throttle horse power on the notion that the numbers are released prematurely. as you look at a chart of 10

-year note needleyields, it's just basically getting rocking and rolling right now. we can clearly see a couple of issues. first of all rates were already pushed down a bit. as all the issues of the day, maybe of them emanating from china and what it's doing to equity and various markets. we see that chicago pmi showed a snapshot of strength but the respondents question some of the sustainability issues regarding the pop, especially in new orders. instead die greszing a bit and talking about things like delays on some of the orders. backlogs and when i see this number at 52.7 definitely well below 53.5 no matter how you slice it we can debate how much slowing is going on globally. we could debate slowing is going on in the u.s. but there's no doubt it's slowing. does that mean we have no glide path at all? no. we have quarters and quarters of history showing that our growth

rate most likely is somewhere in the twos. we either live with it or find ways to find growth. it seems like-- let's look at a june 1st chart to look at how we've dipped below the crown of activity. this is significant. in the yield curve, much of which is driven by the long end most of the time is a growth issue domestic and international. the short end has had its moments like last week where a ten-year note yield goes to levels we haven't closed at since 2011. but we see it's back at 67. there's two dynamics going on. quickly, the market is not on the time line normalizations coming any time soon and global growth is locked and loaded on the long end as something that's going to disappoint. how do we get out of it? usually we look toward business. maybe regulation is having a

negative effect but no matter the reasons, we'll continue to monitor this drop in yields that has put us close to unchanged at 2.17 in ten-year note yields. back to you. >> thanks rick. one loser we have yet to get to is hiesen. a miss and a cut. revenue was light. they cut their full year on beef export related issues they're talking. an expensive beef trust. >> the company was very bullish. very bullish from cattle. very bullish on beef and they were maybe blind sided. it does raise questions about the credibility, i think. >> that's ugly. >> i think this is a company that there were a couple of cautionary pieces saying perhaps the quarter wasn't that good but the company has been talking a pretty good game and now i just think that it's kind of taking your breath away that they're more commodity related than we

thought. they bought beef. the cattle it turns out they've levered to a new commoditity. >> and what they paid for hill shire, it seemed like it was going to pay for itself. >> the company is trying to put a good face in the conference call but this is very disappointing. they traded one commodity for another commodity. and this was going to be the protein play. and i'm kind of -- i don't want to say i'm agas. in the end the cattle herd is hard to predict, but they should have signalled more that this was going to be a bad quarter. one of the reason it's down is i think they were positive. >> the biogen dynamic. overprompting, too bullish. >> i think they overpromised and underdelivered. that's not what you can do far company that was trying to reposition itself as much more of a proprietary food company and less of a commodity.

it was a take your breathe away quarter. >> a couple big retail earnings this week. coach and coors, both of which being hammered today. >> people are saying bad things about coach ahead of jpmorgan. the new bag is not working. coors, piper comes out and says inventory is building. that means price cutting. the handbag different is as difficult as the athletic apparel business is easy. one, just became -- athletic apparel was a crap shoot but the athletic apparel is strong for a lot. the accessory business has become quite hard. >> we've mentioned sears during the mad dash. it's not up at all. it's turned around. it's down. >> maybe the same-store sales are ruling. >> people got to page two of the release. >> that brutal whole foods call where at one point the co-ceo just says listen you should

judge us by square footage and not same store. people won't do that. whole foods, they are so lucrative. i don't think there's an activist coming in. it's a well-run company. they're making so much money per square foot but same store sales are not good and same store sales are positive for sears, terrible. >> kmart down almost 7. sears domestic down 14. >> i know. that is extraordinary. >> those numbers have been the rule rather than the exception. quarter after quarter after quarter. >> right. you're smaller base. >> a lot of capital returns. they've put the balance sheet in order. as they head into the fall and the christmas season maybe you don't have vendors concerned at all about their availabilityviability. >> they did the lands end spin off.

i'm waiting to see how the real estate investment trust does. the whole foods call was a great lesson. people will not let up. they will always address the same store sells. >> an retail overall, macy's riding up after the delivering alpha presentation. it's come in a bit. >> it has. >> 68/78 now on macy's. >> the it was a compelling discussion and nothing happened. same store sales are a brutal metric. >> we'll see. this is in process. we'll see what macy's chooses to do and how they choose to deal with mr. smith. >> i feel he said there was give on the macy's board side. >> i think so. >> my problem with macy's is they have a big store levered to the strong dollar. they don't get a lot of -- the tourists just aren't coming here the way they yooused to. >> you can't blame them. >> i bump into them all over the place when i walk around.

it's endless. >> those may not be the ones who are flying here -- >> they're just wandering the streets, not buying anything. >> they're not flying here to get the bargains. i was with a friend on friday who flew to milan and there were some bargains. >> he wears them onset every time he comes on. >> it tells you the biggest problem we have here is that you can't necessarily translate that strong dollar so quickly when we go over there but in terms of coming here they don't go to macy's. they don't go to dollar tree. >> they stop by the new york stock exchange. >> a new dollar tree at the hamptons, special balloons for me. the best candy. this is the dollar tree to end all dollar trees. it's replaced my hampton rituals. >> i'm not moving on your comments but give it time.

once again the oil is down and the airlines up. let's get to bob on the floor. >> happy monday. a very mixed open. once again, you can see china and the influence on the commodity markets. take a look at what happened in china. the pmi numbers were disappointing y. anddisappoint disappointing. china down. both indices to the downside. that's bleeding into the united states markets. if you look at the weak sectors here, it's materials and energy stocks to the weak side. oil breaking through $46. a little bit of support with telecom and health care stocks on the up side. that's helping a little bit but energy and materials the focus. it's encouraging on china that the casinos are not down. the numbers were not good for gaming revenue in mccow is down more than 30% in july. that's continuing throughout the year. we've been having a problem with them. but they're just pretty much fractional on either side of positive or negative on the open

this morning. i thought this was encouraging. as for tyson, i was as baffled as you were by what happened. the initial explanation was a lower supply of cattle than expected with higher feed costs. i noticed chicken was okay. they seemed to do fine there. apparently the cost metric chicken was more appealing than beef was, more favorably priced than we've. lowering the full year guidance. that's the problem right now. s&p for the quarter, q 2 70% reported. 72% beat on the earnings so far. revenues only 51% beat. that's happening again. the estimates are coming down in the third quarter. flat to negative in the third quarter. we were supposed to be 4% or 5% positive. if this happens again, we'll be flat. not a good trend that we've seen. what's working, two sectors, anything that gets double digit revenues and secondly defensive names. if you look at the consumer

discretionary group, we closed at history high on friday. that's a historic high. all the sectors were helped by major players. amazon had an incredible month. up 20% on tremendous earnings. netflix, tremendous earnings. under armor great as well. when those kind of stocks move up, you can move up the whole sector and that's led a lot of people to think maybe we're overbought. we asked our buddies to run the numbers. right now the consumer discretionary group is stretched. typically it's lower in the following week. that would be this week here. a lot of buying in that consumer discretionary group probably flat to down this week. consumer staples is the other one. anything defensive has worked well in july. all the tobacco companies are doing well. wall greens was good.

defensive stocks have also been working. to point out what happened in europe and extraordinary. greece opened down 22% and germany germany, france, spain to the up side. most of the greek stocks trading down here including national bank of greece. right now dow to down. >> when we come back amazon and netflix among the top s&p performers in july. which is best going forward. dow is down 65. exxon below 78. back in a moment. i thought you said you were gonna test drive this buick first. i am test driving it. for 24 hours. where's the salesperson? at the dealership. nice buick! i guess that test-drive last night went well. actually, i'm still on it.

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♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? more auto sales numbers this time from gm. let's go to phil as we've been waiting for the numbers for about 20 minutes. >> a little later than usual but worth the wait if you're a gm investor. big numbers from general motors. july sales up more than 6%. well above the estimate of an increase of 2.9%.

specifically they saw greater sales on the retail level and pulled back a little bit on the fleet level. those are certainly good numbers for general motors but here's the number that i think will get a lot of attention today. gm's estimate for the sales pace for the month of july? 17.6 million. that's well above what everybody else is expecting which is in that 17.1 to 17.3 range. gm up 6.4%. well above estimates for the month. >> remember when getting to 16 was a big deal. >> i think it's the biggest part of the economy. autos are pushing the whole country. >> eight years ago, jim took the fed to task for not acting more aggressively before the financial crisis. take a look at this.

>> these firms are going to go out of business and he's nuts. they're nuts. they know nothing. >> people say you haven't aged a bit. >> i certainly -- maybe i've -- you know mellowed. not matured. mellowed. there was fed minutes that happened during that period that were disclosed seven years ago. they made fun of it and they laughed about it. and look i think they pivoted, and i think bernanke did a great job. they got it wrong. i'm proud that i did it. although mad said i was off my meds. >> what was it that led you to that? did you know you were going to do that in advance? >> no. i was supposed to talk about proctor. there was some talk i had with country wide some talk i had with a couple of major firms that were saying when are you guys going to realize that sub

prime is worse than you think it is. and these were lots of people who were in that market or were in the sub prime market who were friends of mine who had moved up. friends of mine in new jersey. they were all saying you always come on and talk about individual stock. don't you realize this could wipe out any individual stock. and i was boisterous. i wish they had not laughed officially. but then they didn't. >> i've been around far long time. the ones that started with me that haven't retired, for the most part they've moved up at companies and they were after me to say listen jim. >> it's a moment that has lived on. it has its own stature now. we like playing it. we'll get to stop trading with jim. dow is down 58. don't go away. but how can you spot who's at risk?

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i really like this call today that stays buy monster beverage. this is the last quarter where they switched their distribution system to coca-cola.

i think the combination of coca-cola and monster is monster. a lot of people say it's not good for you. remember this is a guilty pleasure for some and there are other people who just feast on this stuff. but it's a convenience store play. it's what's bought at convenience stores and i think it's right. if you buy ahead, be aware there could be a quick drop if there is not a seamless transition, but cokeca-colaoca-cola's distribution in europe is so good. it's a good situation. >> what's on mad tonight? >> we have the largest grocery anchored, a blan stone spinoff. and then i max. going to talk about the spinoff from china and the fact that the movie business is pretty good. >> rogue nation best opening day in the history of the

franchise. >> people are going to the movies and the weather is good. >> i saw it. it was good. tom cruise still looks great. >> i love mi. i love that series. >> makes 50 look pretty good. >> yeah. 53. >> 60 no good. >> you make 60 -- well whatever you are, look good. >> there you go. i feel fabulous. >> see you tonight. when we come back the president set to unveil new rules for car ban carbon emissions. we'll talk about it more in just a moment. pill? carcarbon emissions. we'll talk about it more in just a moment. carbon emissions. we'll talk about it more in just a moment. carbon emissions. we'll talk about it more in just a moment. arbon emissions. we'll talk about it more in just a moment. forcarbon emissions. we'll talk about it more in just a moment. for carbon emissions. we'll talk about it more in just a moment. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night.

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♪ good monday morning. i'm carl quintanilla along with kelly evans, david faber at and simon hobbs at the new york stock exchange. a lot choinggoing on. the weakest in four months.

exxon below 48. red arrows on your screen. we'll keep an eye on it. >> let's get to our road map. >> barnes & noble beginning regular trading. the company battling steep losses. the executive chairman of barnes & noble education will join us here for a first on cnbc interview. >> and president obama taking on climate change with the new clean power plan. the white house senior advisory overseeing that will talk to us live. >> and it's a big month for auto sales. chrysler and nissan reporting a big gain. we'll break down the numbers. >> first let's go to rick santelli santelli. the ise was released early. >> reporter: construction spending hit their time mark. they came out at 10 eastern. they came out 110. that's the smallest month over

month change since january, equaling january up one tenth. you have to go back to november to find a smaller month over month change. there is a bit of bright news in the rear-view mirror. up 1.8 is now what stands as the previous month prior to the june read. and it was originally released at up .8. the same issues as chicago. a very excitable increase in new orders but not nearly as excitable drop in order backlogs. we'll have to divide exact lib what that dynamic means moving forward as we continue to assess the economy through all the various numbers. back to you. >> the index at a three-month low. oil and other commodities reeling again today. news that china's factory output shrank now contracting at the

fastest pace in two years. and joining us where a chief economist. does it appear to you as if the environment in which we're operating is changing, that it is slowing in the case of china contracting? >> well certainly with the emerging markets and developing economies, china has been contracting. i think people expect them to be able to produce on command, and they can't do it anymore. i'm concerned about the situation in china going forward. their public debt is running between 175% and 225%. those are the kind of debt levels we saw thailand hit before the crisis. i think more broadly we're seeing lower -- there's ripple effects on developing economies. it should eventually be good news for us. we're seeing that in the vehicle sales today.

it's goosing vehicle sales, particularly compact suvs. one of the sectors with the easiest credit and has a lot of sub prime credit to lend. >> i guess the bigger question is the degroo to which health care rises will eat into it is this concerning to you, this ratcheting day after day, is it changing your view on the market? >> it's painful. if i held these things it's awful but for the u.s. lower commodities is actually a good thing. it's an input cost and i know we've gotten some mixed data on consumer spending but it's just not reflected in the consumer cyclicals. i think that if i had to say do i trust the market signals or the data i think the market signals are saying it's in better shape. >> do you like it inspite of the slow down in. >> i do. when we think cyclicals in the

u.s. basic material is like 2%. and energy is 5%. that's not the cyclical economy. it's consumer discretionary, and it's industrials and tech. and tech and consumer are in pretty good shape. i think industrials is really facing a dollar story. that's making it tough. but, again if i think about the next 18 months i think industrials could do well because dollar concerns are going to abate. >> last month up over 2.25% in the snth&p. those that in earnings season have won, have a good outlook. the leadership of the market is clearly falling away at the same time. we can trot out that it's a stock picker's market. but do you see it as a risk on or risk off sign? >> i don't do the markets but in terms of the overall economy for the federal reserve, we've lowered the fresh hold on what

we expect and accept as good growth. i think we're going to see the right move on consumer spending over the summer it's strong. services spending us up partially on health care and also on vacations. vacation bookings have been strong. that is good news out there. although, and consumers buying vehicles in july is good. but we've got an economy that's running at lower horse power than it once did. >> are you saying that we've lowered the bar for the fed on raising rates? >> we have yes. >> i'm not sure with the earnings it expects to trade at. >> the bar has been lowered for the first rate increase. i still think we're going to move in september. although, december is on the table. there will be -- that will not be a unanimous vote. it will be hotly debated vote on september. i think they'll move them. i think the threshold the low. the bar is higher for the next move.

is debate is is the economy hot enough or not. >> this is going to be a hyper or super day a dependent period now. these are the last big thank yous of-- do you see this market as becoming more risk off than risk on because of what's happening with the leadership? >> yeah. so simon, i think when i think about the next six months i think investors should be risk on. primarily because i think -- >> that's not the question i asked you. >> do you see the market exhibiting a more risk off. >> yes. and i think to your point, i think most investors have reduced risk. you can see it in the surveys whether it's institutional or retail. i think it's a market that's prepared. it's bracing for a correction partly because of fed and partly because of calamity in europe and china. but if everyone is positioned one way, the probability of it happening is quite low. i think the market will surprise

us to the up side. >> we'll leave it there. have a great day. >> now, puerto rico missing a payment on the debt this weekend. where do things do go from here? kate kelly livewith the latest now. >> reporter: a day of disarray for puerto rico in terms of a missed payment. of $58 million by a small government entity called the public finance cooperation. in addition to the concern about ripple effects in the credit markets and what this means longer term for the puerto rico's economy, they've never defaulted on a debt and this is the first default in the u.s. since arkansas. there's a lot of concerned about whether it was a calculated move. some believe so. i interviewed someone who is the congress from the ieland not voting and he has strong views.

he condemns the government for missing this payment. he thinks it's a way to get better negotiating terms but it hurts the citizens in the meantime. he also thinks that essentially the islands's creditors of which there are more than two dozen should be negotiating with everybody, even hedge funds. he drew a parallel to argentina which has been in a stand off with debt creditors but said let's have more constructive language. we need to work with everybody. and he thinks the electric utility should hasten the restructuring talks have a deadline for completion in settlement. he thinks it could be a model and he'd like to see it happen soon. whether it will unclear. >> kate thank you very much. >> when we come back barnes & noble's spin off trading at the new york stock exchange. the executive chairman at barnes

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bookstore business today as the company battles losses in the nook unit. shares of barnes & noble education whichtrading lower this morning. here to shed light on the spinoff is the barnes & noble education executive chairman. nice to have you. >> good morning. >> you guys were ringing the bell. there's not a lot of growth. things seem to be moving online. so what is the future for having a bookstore in a college when a lot of people don't even seem to need it? >> well they do need it and we are also online but the core strength of our business is the 724 college contracts we have. we are on site at the school and support the faculty, the students and the institutions there physically. so if you send your kids to school or if you're going to school, it's important to know you have a bookstore on campus that you can go to get all your

needs met. >> as the world goes digital and all these, particularly the demographic going to college now, i can only imagine in terms of their fluency, what role was the college bookstore play? >> we've been investing heavily in digital over the last three years. we agree that to be relevant you have to be physical and digital. and that's what we're aiming towards. there's a lot of money that's been spent in the capital markets in education, higher education, on digital efforts. we can be a seller of digital features and functionalties and content. you look at the other industries we've been involved in whether it's cable, wireless phone, you see the advantages that customers get when they go from an analog to digital environment. we think we can bring the same advantages to the higher ed environment and improve the quality of education and also drive down costs.

>> mike i'm probably one of the few people on earth who goes into every bookstore that i can find including on college campus campuses campuses. that's one of the few places to find them anymore. but i know most of the merchandise sold is not book merchandise. how much of what you're selling is gear and the convenience store type stuff that students need every day and how much is actually books? >> the great thing about the stores is that it creates an affinity of the students and the faculty to the campus. but the majority of what we sell is still books, and the margins are higher in the general merchandise, and the general merchandise sales went up 4.7% last year. that's still a very important part of our business and it gives us an opportunity to do things with other companies outside of our contracts as well. >> can you give us an idea of how you interact with paersen which is now concentrating on being an educational supplier.

they've sold the financial times. they're boosting the amount of money they have to invest. how do you compete with them and with them increasingly being online? isn't there a danger that you look from a shareholder perspective, quite antiquated? >> it's a great question. they're a commercial partner of ours in our user development? >> they supply the content you sell? >> not only that. we have a commercial agreement with them that we entered into in connection with, they invested about two years ago, and the nook media entity which we've since dissolved and pulled college out of. we entered into a commercial arrangement with them where we're in lock step with them with our digital platform. all of the large higher ed publishers we consider partners. they're also kpet competitors. it's a state of frennys.

>> identify figure here from the ceo of paersen. the number of people going to university is expected to triple. my question is are you as focussed on brazil and china as they are or are you bricks and mortar at home here? >> we're not bricks and mor or the. we have a strong retail component. but as i mentioned, we spent a lot of money developing our digital capabilities and last year we had about $380 million in web sales. we want to get to a more digital basis and serve the nation. and we want to possibly go international. >> amazon is not brick and mor or the either. and they're a competitor. and other competitors. there are no shortage of digital competitors that you guys are into. >> competition puts positive

pressure on what we do. that's one of the advantages of the spinoff. we have a separate board and management team that's allowing us to really focus on education's needs and how we're going to compete against these other companies. we compete well against amazon on the campuses where we are v the instore contracts. we sell more books than they do physically and online. >> and you're quoted as saying this will give you flengsabilityxibility to pursue strategic opportunities. >> there's a lot of money spent -- we're in post secondary. even in that space, there are companies that have created really great digital features and functions that we could incorporate into our program as one example, we made a small investment in a company called flash notes. it's peer to peer note taking. the best student in the class shares notes with the rest of the students.

we can incorporate that into our digital platform. there are a lot of other opportunities like that which i would call strategic fit to our business plan. but then there are bigger deals that we can do because we have a platform for growth. we're a public company with a huge national footprint. >> that's whether weatherre you are. >> last year we added $90 million in new annualized sales in the bookstore sales. this year it's been $48 million to 24 new sales. there's organic growth and the second prong of the growth strategy is getting out there. now that we have the spin off done, you have to be careful what you do before that we can do out and start talking to potential partners. >> michael, we appreciate you spending time with us this morning and educating us. >> thanks for your time. it's great to be here.

>> executive chairman. bned, the new symbol for barnes & noble education. >> next up president obama talking about climate change.

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get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. welcome back. shares of shake shack working on their second straight day of gains. the stock moving higher for the last two weeks. last week an ipo lockup expiration occurred. the stock will be a huge focus for investors ahead of the earnings release next monday. context, the shares surged to 96

plus dollars in may. only to fall to half that. >> thank you very much. the president unveiling the nation's first of limits on power plant carbon emissions today. it requires a cut in emissions by the year 2030. take a look at the video the white house posts over the weekend. >> our climate is changing. it's changeing in ways that threaten our economy and health. this is fact backed up by decades of carefully collected data and overwhelming scientific consensus. we can see it and we can feel it. hotter summers, rising sea levels extreme weather events like stronger storms and longer wildfire seasons. all disasters that are becoming more frequent more expensive, and more dangerous. >> joining us this morning,

brian dees the white house senior advisory overseaing climate conservation. you want to walk us through the plan and the benchmarks? >> sure. the plan is very simple. we have never had limits on the carbon pollution from the power sources in the united states. once this plan is in place, we will set long-term targets. and then states will have time to put together plans to come ply with those targets in a flexible way at the state level. so states will make choices to invest in clean energy sources or a different mix based on what's in their area. >> to what degree is it targeting coal specifically in you're joining us on a morning where we have another coal miner filing for chapter 11. there are some arguing the market is turning away from it. why thuzdoes this cry out for policy? >> it is true this goes with the rule of grain of where the

market is headed. you're seeing investment in cleaner sources of energy but it's important that we set targets to reduce emissions, because we have a vital threat in addressing climate change. the rule it does that in a way that actually reinforces a number of the dynamics we're seeing in industry and i think you'll see utilities will have the time and space they need to make long term investments to keep the momentum going. >> but the thinking is the market is going that way but you need the government to goose it along faster? >> we have a long tradition of setting limits on pollution that gets pumped in the air. we've done that for acid rain in other areas and it's worked. we've reduced carbon pollution. we increase public health benefits. we reduce asthma and achieve solid policy outcomes. and it will help with jobs and economic activity in the united states as we.

>> i didn't realize given the amount of noise that americans are as concerned about climate change than the europeans. they are more concerned than china, less concerned than africa and latin america. i guess the question is whether they're willing to pay for that. recently "the wall street journal" poll suggested that 49% of people in that country oppose your intervention on private companies if it raises the cost of their utility bills. and the powerful argument from marco rubio is why should we do this in china and india are going to burn anything they can get their hands on. >> first, it's nalsfalse this will increase costs. the typical consumer will save about $85 on their electricity bills because we're moving to cheeper sources of energy and we're wasting less. second our commitment domestically to move on these

types of activities is to leadership we need to get a durable international agreement that actually will level the playing field and will make sure that as we move to clonereaner sources of energy the world will be moving that way as well. the president has been leading. this action puts us in a stronger position to get that kind of agreement. >> we know the supreme court struck down some to the epa regulations for not taking costs into account. one of the writers says they should try not to adopt this particular plan and suggestions this might be unconstitutional too. what's your response to that? >> this is a rule that is on strong and solid legal foundation. the clean air act provides clear authority and compels epa to regulate this source of collusion. and epa has done it in a way that is flexible and is responsive to a year-long effort exhaustive effort to take into account more than 4

million comments to this rule. we feel confident about the legal foundation. we think we're going to see across the country more and more states and electricity commissioners working with us to try and put in place workable plans. we've given them more time to do so. we're confident the plan will stay in place and help drive a cleaner energy mix in the country. >> and to those who say we do our part but china and india are going to be putting an awful lot of carbon into the atmosphere more so than it has, so it's not going to help the problem of climate change. >> president obama and the china president, they agreed to peak their emissions and reduce them. president obama went and sat with the prime minister and the prime minister acknowledged the imperative to work, to address climate change. you're going to see president obama continue to lead

internationally. we need an agreement that reflecting that countries come from different starting points but we need to be part of the collective effort to combat climate change. >> and you'll have the climate talks in paris coming up in december. do you expect for mcconnell to have stopped telling governors to not comply? >> this is a process that is going to go on. i can't speak for what others will do. i know across the country when you get beyond some of the hot partisan rethetoric i don't recollect you're seeing a growing recognition that the targets are reasonable and achievable and that states have a lot of tools and a lot of flexibilities to try to accomplish them. what i expect is a solid conversation at the state level about how they can comply with these plans and the work that will go into developing those plans. it will continue through the course of the fall and into early next year. >> brian, we appreciate your time. it's obviously a huge issue for the markets and we'll see what the president says this

afternoon. be sure to tune into power lunch today when the president officially announces this plan around 2 p.m. eastern time. >> and straight ahead, auto sales coming out. all the auto makers that have reported so far have beat estimates. we'll round up the movers for you. then we're talking to the west texas investors club. brooser and butch are here. we'll talk to them in a few minutes. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom-

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good morning, everyone. here is your news update at this hour. secretary of state j john kerri, meeting with foreign ministers from the persian gufrl. he said they agreed that once fully implemented, the iran nuclear deal will contribute to that region's security. zimbabwe has accused a dentist of shooting a lion. they want to extradite him for killing the lion. they say he shot the lion near a national park and did so poutwithout a permit. and erik snyderman announcing that retailers have agreed to keep realistic guns off their shelves. and here's a fish story for you. a florida fisherman was fishing from his paddle boat on thursday when he hooked a 7-foot 412

pound growner.uper. the fish pulled him into the water twice. he landed the fish. no word on whether dinner was on him but he certainly got some bragging rights. that's your news update at this hour. back to "squawk on the street." thank you very much sue. we are just stunned into silence by the grouper. toyota out with the july sales numbers. phil joins us with the details on that and the others. >> reporter: toyota reporting better than expected sales coming in with a slight increase of 0.6 %. most were expecting a slight decline of about 2 % from toyota. that means all four of the major auto makers have reported better than expected sales. let's take a look at the big three. you have gm up 6.4%.

fiat up 6.2%. and ford with an increase of 4 37b9 .9%. suvs and trucks driving the growth. from ford and jeep, ford up 11.4% for utility sales. jeep brand is hot. up 27%. pickup trucks, general motors has been hitting it out of the park over the last couple of months. that continued in july. full-sized pickup sales up for the month of july. the chevy brand, not just full sized pickup but the miss size pickup truck as well. sales up 51% in july. nissan, july sales up 7.8% nature that was weaker than expected but not a bad number by any stretch of the imagination. and general motors saying it expects the industry sales pace

for the month of july to come in at $17.6 million. if it's $17.6 million, that is well above what most people were forecasting. they were expecting 17.1 to 17.3. all the numbers with the exception of nissan much better than expected. i think we'll see a strong number when the final tally comes out later today. >> thank you very much. a strong month for u.s. auto makers. >> up next on the program, striking it rich in the lone star state. west texas investors club, coming up. >> you drink beer? >> sure. >> well get on over here. sit down over there. get yourself a drink. >> first one of the day. if you want to get to know a man and look into his soul, have a beer with him. ♪ ♪

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are stocks about to enter a bull market correction? we'll tell you why one technician sees major pain for the s&p 500. that's on tradingnation.com. work "squawk on the street" coming right up. ♪ ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling.

you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. ♪ as we mentioned, president obama unveiling the nation's first ever limits on power plant carbon emissions today and that has energy stocks on the move. jackie following autoaction for us. >> reporter: good morning. as president obama tries to make climate change part of his legacy, it seems to be a direct assault on coal companies. the president's plan looking to cut carbon dioxide emissions by 32% by the year 2030. the impact the coal companies are going to suffer because right now they are producing a

third of the country's emissions at this point. pea body energy and alpha natural resources, some of the big coal producers in this country. to the flip side, there are winners. we'll see companies in renewables and clean energies benefit from this. the solar stocks we watch. also nat gas companies. more innovative ways to fuel the future. the one final point that i want to add on this is that there will be a lot of litigation. many states that house the coal companies are going to say this is going to take an enormous toll on them because it provides an enormous at of jobs. lots of litigation, and coal companies have had a really tough time as it is. about 25 bankruptcies in the last few years.

walter energies just one of the most recent to make headlines. these companies are going to take a hit. although it may not seem like it in trading. the litigation process could take some time. >> and legislation. let's see what the president says too. let's go to rick for the this morning's santelli exchange. >> i'd like to welcome richard. thanks for taking the time this morning, sir. >> good morning. how are you? >> reporter: very good. you know as i listen to the news of the day, i find so many things rhyme. wls for climate change science is never settled. never settled. but the same is true about the economy. one of your recent pieces, gdp is just right. i think gdp is way too light, definitely not right. who is it right far, richard?

>> well let's give you a little context here. we get a lot of questions from the institutional community on when will rates normalize, so our standard answer is how do you define normal and if you look at gdp in today's world, we have population growth at one of the lowest levels since the great depression. we have labor force growth of 1% or less given what month we're in and we have work force participation rates into keep moving lower. in that demographic backdrop we should get used to gdps of 2.3, 2.5 less than 3% real. that may be the new normal. >> i'm >> reporter: i'm not saying i disagree. i'm saying we should be unhappy that's where it is so we should try to find real answers and real science and real economics.

when i see gd sp soft and productivity is soft and regulations are written by people who seem to be soft in the head. it seems like we're accepting things without kicking the tires. given policy and congress and regulation and half finished regulations, but shouldn't beexpect more? just because we're satisfied that corporations that are multinational thes can find enough new customers, the shared value on the gdp end doesn't seem to be enough. >> rick you're going to get me on my soap box. but i agree with you. ever since the crisis we thought we weren't doing enough. we need to be more competitive. we're just not there. fiscally it seems congress is held up on other issues when they could focus on how to take an economy that isn't growing

and make it more productive. >> reporter: we're never going to get there if a majority of voters think gdp is just right. it's just right given policy isn't just right. and i don't want to pick on the fed. i think the fed's heart is in the right place. we're going to have to leave it there and respectfully disagree but these are issues that all participants in the marketplace, especially the big ones need to communicate more with regard to the gdp future of the u.s. thank you, richard. back to the "squawk on the street" gang. >> up next the self-made millionaires are using their fortunes to invest in promising entrepreneurs but only on their terms. the stars of the new reality series "west texas investors". join us when we come back.

and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.

how much of your money have you got in this thing so far? >> everything that i've saved over my 27 years. so approximately $120,000 of my own money. >> it's very important to us for these entrepreneurs to have some money of their own invested.

>> is this the first company you started at? >> yes. >> i started a bunch of them that went on and hit the deck. >> went south. >> are you getting scared? >> that was a clip from the new new original prime time series featuring two self-made millionaires who invest their own money in entrepreneurs. joining us are the stars of the show michael rooster mcconaughey and wayne. >> good to be here. >> i wish i had a cool nickname like that. what i love is you were doing this before "shark tank" became a thing. rooster, how long have you been doing this? >> we've known each other close to 40 years and we started small doing stuff and we sort of successfully maybe not that long. maybe the last ten years. we found all the land mines first. >> so people come in they present as on "shark tank" but

then you give them tests, you stress them? talk us through what happens. >> we want to find out about the person. so we try to put a test or some sort of chore that they can do. >> like helicopter ride? >> yeah yeah blind faith, jump in the helicopter. we're going to go camping or some adventure or work task that they have to complete in a certain amount of time. just try to get to know the person. >> butch, why is that important? this is a debate investors always have is it more important to look at the idea the financials or the management? what have you found? >> we feel like the person is the key to it all. the best business in the world can be ruined or mismanaged and can fail if you don't have the right person at the helm. >> you made your money, oil and gas pipelines? >> oil fields. >> oil field related stuff. >> did you see that in the businesses you made your money from? is this you drawing on your own experience here? >> exactly.

>> yes. we've had so many deals in person. if you don't have a good person you can have the best idea in the world. we don't have to sit here and just watch somebody all the time. >> do texans do it differently? >> i think we do. >> absolutely. >> they're start to go do it you-all's way now. we're still old school. and that's what we want to show some of the ways -- that's how the mentors when we were growing up did it. they gave us chances, they believed in us. the thing we give to the entrepreneurs, we believe in them, not just money. >> rooster, are you getting any tv tips, public relations tips from your younger brother? >> he got them a long time ago, yeah, a few, a few. just be you, that's all you have to do. >> your younger brother is matthew mcconaughey. >> yeah. >> is this your first time on television? >> oh, no. >> you're familiar enough with this. this is the latest series. >> a little bit. not a whole lot. it's new. it's never been this big. >> what do you think of the

series, butch? >> i think it's going to be good. people are going to like it. it's got a little bit of everything. we're going to make people cry, make them laugh, and we're going to make people mad. >> we're going to make some money. we're going to show them -- not so much what we're going to show them what to do as not to do and be successful. >> what are a couple of the ideas if you give us a sneak peek that have come about successfully from the program or your experience over the years? >> you mean ideas in the past that we've done? >> yeah what are a couple of successful companies? >> mainly a lot of what we've invested in is ourselves and then we've had oil deals that we've done with people we really trusted. there's exl we got in that was unbelievable how it went and it went south and we all stuck together and pooled our resources and brought it out and that was one of the best deals we've ever done and smaller ones we've done and he's got -- we started a fiberglass -- mainly

the oil field related. we're out of our comfort zone doing some of this stuff. >> i wonder if you called the top in the oil market. what do you think now oil prices just collapsed? >> we've seen that before in west texas. we're in another slump but we've always believed the highs create the lows and the lows create the highs. there's another high coming. >> what is happening with the economy? how do you feel about the businesses? the investments are presumably falling. >> the traffic is better, right. that's the upside. you have to look at the upside you know. you get help easier housing is cheaper. as far as the price, we've had a hell of a lot more money before we started the show. but it's happened so many times. >> there's people in west texas that are making more money now than they were when it was booming. >> but the shale development is new.

it's different this time around presumably isn't it? >> and i'm a little worried that they can do it again. supply and demand. supply and demand. they have so much money that comes in there that they can just -- if they do it again, produce it again, we're shooting ourselves in the foot. what do you do? they need to let us export it i would think. i don't know why -- >> those holes are growing louder. thank you both for being here. really appreciate it. >> you're not actually smoking on the floor of the new york stock exchange just for the record. >> it's a bubble gum cigar. >> nice. good luck with the series. >> and these two gentlemen here will be premiering tomorrow on 10:00 p.m. eastern here on cnbc eastern and pacific. let's send it out to dominick chu for a market flash. i need a bubble gum cigar of my own. let's watch shares moving high they are morning on reports that

german company, a huge giant in that category has possibly secured financing for a potential takeover of the company according to reuters. they say that it will wait for the offer before approaching syngenta. stock up more than 3% this morning. but remember it has its own bid or trying to make a bid for this company around $45 billion. we'll watch those shares as the afternoon gets under way. back over to you. >> that's for sure. let's send it to john fortt for "squawk alley." at&t and direct tv have already gotten enticement to sign on. we'll look at what that says about what's coming and uber's valuation keeps going up. where it is and what it signals and finally david byrne of the talking heads, critical about the business model for streaming, not the same as it ever was. all that and more coming up. but not every insurance company

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good morning. it is 10:00 a.m. at at&t headquarters in dallas texas. 11:00 a.m. on wall street. and "squawk alley" is live. ♪ you may find yourself behind the wheel of a large

automobile ♪ ♪ and you may find yourself in a beautiful house ♪ ♪ with a beautiful wife ♪ ♪ and you may ask yourself well, how did i get here ♪ ♪ letting the days go by letting the days go by ♪ welcome to "squawk alley" for a monday. joining us is john steinberg. morning, john. kelly evans is with us. we round out the week with kayla out a few days. at&t fresh off its acquisition of directv rolling out new combined products. all in one tv and phone bundle this morning, a step towards integrating the satellite tv company and attracting new customers. details cost $200 promises the abil