johnny depp is in the band and playings guitar. >> and alice cooper. >> you're so --! >> no, i'm not. you don't know about the hollywood vampires? >> out's big with the johnny depp news. they have been touring around the area. >> i go to the opera. >> bye, everybody. time for "squawk boon the stre." >> "the opera." [ laughter ] good monday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer. the s&p at an all time closing high. earnings season, fed speak, data, ipos and more. europe is higher. stronger pound as the uk has a presumptive new prime minister in teresa may. oil coming off the worst week since february. the road map begins with markets

near the all time high as the start of earnings season i can cans off. alcoa tonight. >> twitter will live stream the republican and democratic national conventions. this on the day that the stock gets a downgrade from sun trust. >> you will look here at a live shot of the microsoft worldwide partner conference where they just announced a partnership with general electric. we'll talk to satya nadella and jeff immelt later on. after friday's job report rally the s&p beginning the week within a point of the all-time closing high five points from the intraday high. we head into the unofficial start of earnings season. alcoa set to report. what a day to come back. >> tgs rejuvenating. take a week off. i'm thrilled for the opportunity. thank you, cnbc. italy, amazing. you have a full week off.

>> okay. >> it was hard. you know. without you. >> it was hard. >> don't do it again. >> it was frustrating not to check in. didn't check in. i will say this. friday's rally, felt like what the market used to be like when we made new highs. it was led by j & j, 3m. the laggards came up. biotech. even the banks for heaven's sake with interest rates down after momentarily spiking. the banks set up so low ahead of earnings this week. you may have something going here. when i see a union pacific breakout they aren't doing that well. when i see the overall tenor of a lot of big cap stocks going up, kimberly goes up, clorox, a new high. the utilities didn't even synch.

it has a better one. everybody else, the noises drown out. my big worry is boeing may not have a lot of orders. they said it was pretty much in line. that's the only area i'm concerned about. that doesn't matter. alcoa will talk and aero space is key for them. >> are you looking for what jim paulson calls a breakout in optimism after the brexit loss is reversed and the jobs. the earnings recession could end this quarter. >> i don't know where that comes from other than perhaps the dollar not being as strong. i think what happened is if you go back we had redemption monday. it was right after brexit. it was the final exhaust. everybody wanted to get out and has gotten out. it was one of the ten worst days

for redemptions ever. that was the signal that, okay, who else could throw in the towel? yet there are interest rates, the ten-year is going by procter. >> that's one of the keys thus far. brexit is low interest rates for everyone forever. >> yeah. >> according to the latest statistics we have $14 trillion at negative interest rates. that's bonds. obviously you have the entire swiss complex. most of germany, japan in negative rate territory. also corporates. i noted disney sold the ten-year bond at 148. my point is on the stock market how in the world, 1.48. >> alexander hamilton working? that's crazy. >> disney borrowed money at 3% for 30 years. >> the mouse. founding father of disney. donald duck was the third signer

of the declaration. >> clearly that was the case. >> i don't know where disney will be in 30 years but people are happy to get 3% a year that they will be here. >> i guess espn won't cause a revolution. it won't be like the south succeeding. >> apparently not. i don't know if there is a link in the future. >> what does that make a utility company? what's duke? dominion. these are sovereign states, too. this is nuts. >> the yield will continue. i guess my point is how much of this is a function of where am i going to put money when so much is negative yielding or disney can borrow 148 over ten years. i have to put it in the stock market. what was i doing losing money for clients. is anybody paid to run money over there and lose money? i'm down less than everybody. >> if you're a bond fund, what am i supposed to do when you

want to reinvest. >> you hedge the currency. or buy white way for a huge price. >> we'll talk about that. >> we mentioned you that day. we said somebody would like the deal. >> really? sp. yes. >> i have to tell my daughter. >> david asks a lot of questions about price. today the post argues pepsi was interested but balked at price. >> yeah. we did have it that day. the cfo indicated pepsi isn't interested in pursuing large deals. they got a good price but others believed general mills would have been interested or might be. i cannot say they are. >> general mills didn't have a good yogurt quarter. that was the only spot in the whole conference call i read at midnight when my daughter was asleep. the only spot disappointing. >> for general mills which is also at a high multiple. >> david -- >> the entire group.

wow. >> it's the only company with double digit growth in the area. >> exactly. >> when i look at the number for clorox, at the p.e., it reminds me of microsoft in 2000. you have incredible p.e.s but, look, they have aaa balance sheets for the most part, a lot of them do. look at clorox. it's a 1% growth at 38. things are upside down. i know it shouldn't be as it is. but at the same time if you listen to programming at 10:30 on friday after brexit, that friday. you shorted clorox. you thought it was the end of the world. you shorted a bond at a wbad price. >> are we exiting the market for an alcoa market? >> that's tough. >> starting to deal with real earnings. you have the commodity prices

are up all last week. >> hows's it looking these days? >> put down a hundred thousand euros. they don't make mortgages. the rest is done on a cash basis. you go to the oldest bank in the world. i'm just shopping for a bank. >> bank shopping over there. >> we have mentioned it more in the past week than in a long time. >> could be a bail out, bad bank, good bank. that bank in sienna is gorgeous. >> yes. >> somehow italy is able to borrow 1.221% over ten years. >> i remember there was 7 rnt and you talked about a possible failed auction. >> by the way, do you remember corzine, what he did there? he was right. that was the right time to buy

those. he didn't realize the leverage part on the balance sheet. the actual bet at that point, what was a play. >> didn't work out. >> might be playing poke mon go now. we don't know. >> meanwhile, microsoft and ge announced a cloud partnership today. john ford is live from toronto. he's got a busy morning. hey. >> hey carl. it's a big deal for microsoft in particular. what ge is announcing here at microsoft's conference today is that predix, their software for the industrial internet will run on microsoft's cloud. that's not exclusive. it was already available on amazon's cloud and/or ra on ora cloud. now microsoft has the opportunity to use that to build up their overall enterprise adoption of the cloud.

from ge's perspective, predix is the center piece of the strategy which yields $5 billion in revenue last year. the digital strategy. they are expecting by 2020 it could yield $15 billion in revenue from ge digital. this is important to them. microsoft wants to work with ge not just to bring predix but to build in hooks to office 365, dynamics, cortana, microsoft's other cloud offerings so the industrial partners ge works with on this digital project go over to spend more money on microsoft's cloud. i will sit down with satya and jeff in an hour. dig into those and other important issues. from what's happening overseas. the macro environment, ge capital no longer designated as

systemically important financial institution. lots of changes. they have opinions on globalization. the challenges businesses face throughout the year. it should be an interesting conversation. >> for sure. see you in a bit. it comes a few days after ge set multi year highs. >> it's important to note even though boeing may not have a big book to build you have to recognize the air show that orders may not be skyrocketing. the backlog is big. that's important for ge with a huge backlog number. predix is basically a system that says you are about to break down before you break down. this is the industrialization digital which is not just words. >> no. it's connecting industrial machines to the internet through the cloud. that's basically what we are talking about here. >> what did you do? >> looked at the quote in the press release. by the way, you can read the first three paragraphs if you are a layman without any

understanding as to what they are talking about. thank you for a clear quote in there for people like myself who have only a keen sense of the obvious. >> it begs the question who may have been in a position to get this business from ge creating industrial machines and the ability for them to connect to the cloud. you would think ibm or others would be interested in being in the position microsoft cleary is now in. >> this imperva is for sale. ibm has to say, listen, we'll stake out cyber security. there has to be something ibm does that says, listen, we are back. they want to say they are back but their stock says they are not back. people were unsure about linked in, including bob peck who talks about twitter going out at 2021 if you use linked in valuations and takes it from a buy to a

hold. a shrewd move. >> highly unlikely. seeing a deal this year. we'll talk this morning. >> he's a downer. you also downgraded yahoo! >> i saw that. >> he wants to make -- made me unhappy. >> did he? >> they were two things i want to talk about. >> we can. he had interesting points. >> he took the mind share. he has it. >> now that jim is back we'll get his take on the white wave deal. take a look at the premarket. all time intraday high. we are not far away. more "squawk on the street" in a minute. and can you explain to me why you recommend synthetic over cedar? "super food"? is that a real thing?

it's a great school, but is it the right the one for her? is this really any better than the one you got last year? if we consolidate suppliers what's the savings there? so should we go with the 467 hoepower? or is a 423 enough? so should we go with thegood question. you ask a lot of good questions... i think we should move you to our new fund. ok. sure. but aryou asking enough about how your wealth managed? wealth management, at charles schwab.

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the vision of the consumer. >> whitewave's greg ingalls along with emmanuel faber after danone agreed to acquire whitewave for about $10 billion in cash. we have talked about the name. it's one of your favorites. we have known it might be a takeover candidate. a year passed since it could get out of spin-off jail in terms of the tax ramifications of a deal after it was spun. here is the deal and the stock. still slightly. in fact, it's one penny above where the bid is. there continues to be at least some belief. although relatively small that you could get an overbid. a $300 million break fee. a buck 75 a share. do you think there could be a potential buyer? let's x off pepsi, give them what we heard on thursday. >> in this sector, mondolese isn't done with hershey. if they are, they should look at

this. now, candidly as i said when we talked about why we have over many months, it's expensive. it's got debt. it is expensive. a lot of firms had sells on it at one point. to find double digit growth in an area where many people from my era do not understand the power of soy milk, almond milk. plant-based foods will be the biggest thing in china because they can't afford -- if you hired a banker and hershey says no. >> hershey said no already. you may be right. we may hear something. don't expect to hear anything this week. i don't know what they're doing. it's been a couple of weeks.

what about general mills? >> general miller should do it. >> really? >> also you run the risk of getting in a fight with danone. that doesn't mean they'll back down. >> look, this is the area where i think general mills, if you look, did it tip this quarter in to be more natural and organic when they lose green giant and do more with some of the bars. they have a couple of nutritious bars and they have obviously got annie's. this tips it so general mills is the first natural and organic, major old line food company. do you think the choices are getting limited, running out of ideas? >> they don't want to sell but

everything at a price. >> he has to be a seller at some price. the stock was up 10% on the day of the white wave deal. stocks were trading down with whole foods. the kroger of the world went natural and organic. not to get sidetracked but the sector is good. when you see walmart, you go in. i remember going to walmart six years ago. i said i would like to buy rice cakes and they sent me to trice krispy cake aisle. fresh as the day it was canned. walmart, costco. they are all natural and organic. cereal had its first growth quarter in years. but that's because even cereal got a little bit more natural

and organic. general mills took out the artificial coloring out of trix. >> and the high fructose corn syrup out of things, too. >> kellogg's has a cereal restaurant in new york city. changing times. >> there is only one kind of granola worth eating. what kind? >> you tell me. >> the kind your wife makes! come on, man. don't screw it up. my wife doesn't watch. i'm fine. >> when we come back, we'll count down to the opening bell. also, satya nadella of microsoft and jeff immelt on the partnership in the cloud. another look at the premarket.

on twitter today. lowering to our 18 dollar target. m & a not likely in 2016. why? he thinks it's inevitable. jack's first year, not good enough. but estimates are reasonable. not overly conservative. they can't do it. >> he says second quarter growth is challenged. new products. yet to reignite user growth. engagement from the new users appears lower kreelting a slight drag. says it will be taken out wu not this year. >> ever since linked in. >> 32 times. 56 cent estimate for the year. >> the rally is based on linked

in thinking that the last property out there is twitter. it probably is. at the same time and microsoft stock isn't down since they bought linkedin. i am more positive than peck. i think this idea that because it is jack's first year and they won't sell. that resonates with me. the stock is up really on takeover chatter. >> right. it does feel like we got more to come in technology. >> o david, a lot of the companies involved with apple parts could see consolidation. watch nvidia, this is graphics. if i don't mention nintendo go i'm an idiot. >> apparently. >> have you kids found it? >> no. they are both away without devices, thankfully. they are in device prison. no, they are not. they're very happy. doing kid things. did you ever hear of that? >> no. >> not walking in traffic with the phone in front of you.

>> we were in the colosseum looking for things. >> people are hurting themselves with the pokemon thing. >> to heck with this. we have the opening bell coming up after this.

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the opening bell brought to you by powershares. leading the revolution. >> you are watching cnbc. live from the financial capital of the world. the opening bell in 60 seconds as we kick off a busy week. we look to open above the s&p's all time closing high. we have earnings season beginning tonight. there will be fed speak all over the place and more data. cpi and ppi later in the week. >> the more we hear that the more you hear the chatter after the great employment number. will the chatter be overwhelming? i think what will happen is if we -- wow, i have to tell you. if we hear more stabilization there, we'll pick them up. especially if london cuts, we could take it up. >> it's above -- the highest

level it's been post brexit. the u.s. markets made up for the losses late last week. let's get the opening bell. s & p at the bottom of the screen. at the big board it is spo logistics being named the fastest growing company in the fortune 500. over the nasdaq consumer products. helen of troy doing the honors. >> brad jacobs has been on "mad money." it is a roll-up of trucking and logistics. it's taking down a lot of debt. it didn't work for a long time. people are fired up now about it. >> s&p, 213431 is half a point away from the all time intraday high. you want to get the .72. we are essentially right there. we'll see if we make it official in a few minutes. it's been a long time. may 20 of last summer. >> go back toen ja. go back to the first week of

february. let's forget about sell in may. january, election year. all of that stuff was soporific pablum. pablum! >> apparently. there are a number of months left in the year. >> bring me up short my first day back. >> we'll see how we conclude. we have an election coming. donald trump is soliciting ideas over the weekend. twitter this morning as we talked about. got a live stream.

i have a secret plan to take over the world. >> you are referring to a tweet the other day saying working on top secret tesla master plan part two. hoping to public later this week. >> what does that mean? >> take the stock to 220. >> he's got a master secret plan you don't tell anybody. that's the whole idea. it's got to be secret. >> that was pre-twitter which, by the way, is done. stick a fork in it. >> you don't tweet about the secret plan. >> do you think they will find out who trump's running mate is from @the real donald trump? how is that not worth more? well, because twitter isn't run well. i don't know. these things are being done on twitter. >> it is a communications tool unparalleled in a lot of ways. doesn't seem to add a lot of new users. >> like oxygen. just because you breathe it doesn't mean it's a good stock. right? >> 2137, jim.

if i told you the night of brexit we'd be here in essentially two weeks would you have believed me? >> no. i got off the plane at 3:00 a.m. the market was looking down 500 points. a lot of people came on air not just on tv but in print and said, look, this is kind of the western world, the beginning of the unraveling. we found out, don't forget. the uk has done better than the e.u. over the past few years. it's important for people to recognize that we are now seeing the blow-back resonating positively in the united states. you can't keep your money there. >> that's the thing. >> you have to get your money out. >> this is not necessarily a reflection of expectations that earnings will improve or the market multiple will have a decline. there is nowhere else to put your money. you have to put it in equities. you can't find a debt instrument to do anything in terms of a return. you have to put it here.

over there it's too uncertain. until the world starts growing you have to be here. there is no choice, if you are a fiduciary. you can't put it in the dutch ten-year. how many years since -- >> apparently 499 years. or it's never been negative. it's been around for almost 500 years. >> tulips? >> never had a negative until today. >> when tulips went negative. >> the dutch ten year. >> they switched. >> correct. >> that was the guilder. those were the days. >> they were in business back then. i'm sure they may have been the first to issue a ten-year brond. >> they were killer traders. >> great. >> also helping matters overnight, asia, japan, abe's party, landslide victory. raises the prospect of additional stimulus there. they finally got a win on the

yen after several days of losing the battle. >> also, china had lower inflation. maybe china can do something. the stars are aligned for shorts to cover. i didn't say the stars are aligned for earnings. starts are aligned for shorts to cover. they are so afraid of what happens later this week when jpmorgan reports and jamie diamond says this is the greatest time ever. he fills the letter with why it is a great time to be an american. you are short jpmorgan. do you want to be short when jamie diamond says how fabulous things are or do you think they will say things aren't that great? >> i don't think they will say things are fabulous. i haven't -- when was the last time he said that? that's not a word he uses. >> i don't think he'll throw cold water on the rally. >> no, no.

the stock is all the way down. remember the last time we thought oil was 35 going to 26. we were worried about the criticized loons. oil at 45. if oil goes to 50 you will only be thinking, wow, they have reserves. maybe they don't need them. >> none of the banks had a good year. ones that are focused on the capital markets. fixed income is an issue to a certain extent. >> they are doing terribly. >> ipos are relatively sparse. >> the stocks are set up for them doing terribly. i wonder whether not unlike the pacific crest piece about apple which says apple will be every bit as bad as you think. that's good. >> right. >> you know? >> yeah. but jpmorgan is down so much less than the other big names. >> little less than 5%. bac is down 20%.

>> and wasn't able to buy back as much stock. >> goldman sachs down. >> discount to book is extraordinary. as predicted the return on equity wouldn't come back. one thing i would say is wells kept a lot of power. they didn't announce a new buy back and they have a problem. if they do well, warren buffett needs an exception from the government to go over the 10% rule. >> meanwhile they will watch the window of new issues. later in the week line will be the biggest tech debut of the year. cbs radio we haven't mentioned yet. >> they have a lot of revenues cbs revenue. a lot of revenues. >> yeah. we'll see. they could still sell it if somebody showed up and wanted to buy it. they will pursue is spend route. >> i'm sorry. i heart radio. >> these are challenging times.

>> struggling. >> what's not challenging is twilio, my favorite ipo of the year and it's not done. >> because it did so well? >> no. they have a piece of air bnb and they are involved with what's app. uber. uber! >> uber. >> can you elaborate? >> he laughs. >> they have a model that actually if the companies grow, they grow. what a great model. >> it is a good model. >> first time he agreed with me. you noticed everything i said. tomato, to-mah-to. >> the eye rolls begin. >> we will not call the whole thing off. >> how about this? >> a little cole porter in the morning. >> yes, jim. >> 2137 is what we are watching closely. comcast, a new all-time high. "the secret life of pets" does

well. bob pisani? >> 4-1 advancing to declining stocks. who cares about utilities in tell. co -- telecom. energy, tech. we'll see. this has been going on for a couple of days. utilities and telecom lagging. the new high list is expanding in the right places. i don't mean clorox. ge has been there for a couple of days. lock heed, honeywell. there is the big three. all at new highs. important thing here. we are expecting industrials to do better. everybody is trying a trade off about the q-2 numbers which are sort of in the books here. if you look at global markets we have a triple whammy going on. we have a jobs report. a new high momentum going on.

new leadership that happened quicker than expected in the uk. the pound is up. that's helping. remember what happened. abe had an important election victory over the weekend. they are expecting additional stimulus there. the bank of japan will meet july 29. everybody says abenomics is done but apparently not. the markets are acting like it's not dead here. look at the global markets. hong kong was up. the ftse up, the dallas cowboys in germany also strong today. we'll go into earnings season. essentially at an intraday high here. it is important to note the sector leaders the last time we were here which was may which has been a small one. utilities and telecom. nobody cares about them in terms of how they moved the markets around. consumer staples. the dow is down 400. that's what mattered. discretionary retailers had a

tough time. home builders doing well. the guys that matter are sector laggards. look at, for example, tech doing nothing for a while. the biggest sectors are tech, health care and financials. health care has been down. energy, down. financials are down 7%. there is the big issue. can you move any of the stuff that matters? can you move health care a little bit? energy, oil? that will change things around. can you get interest rates up? that will change financials around. this is the parameters of the debate now. where are you on either side of the interest rate discussion? if you believe rates will be low for longer, the dollar will be low. your portfolio will be set a certain way. if you believe it will change, maybe inflation will come up a little bit. then you have a different way of looking at things. that's the issue. the important thing is we keep talking about the s&p. everything else is still shy of the historic highs.

transports, almost 20% below the historic high and that was a long time ago back in 2014. that's the small cap and the mid cap, almost 2% below new highs. this is what's important for q-3 here. q-2 is going to be a loss. only four of ten sectors are expected to be positive. energy will be a mess again. everything starts turning on in q-3. they are modeling improved global numbers. 8 of 10 sectors are expected to be up. only energy and telecom are expected to be down in the quarter. everybody, again, is expecting certain changes. slight improvement in the global economy. weaker dollar generally. bonds up slightly but not too much. to help financials. a lot of things have to go right for q-3 to do well and be in positive territory now. that's the debate we'll talk about all week here. finally the guys mentioned line. this is the big japanese messaging app.

it priced overnight but won't trade in new york until the 14th. you have a market risk here in this peculiar way. the japanese ipos wait three days before they trade. the good news is they price at the high end. it's about a hundred yen to a dollar. you can do the math. $33. it priced right at the high end. a lot of concern. that's certainly good news. we'll have a big food ipo. advanced pierre food holdings on friday as well. a little bit of an opening. i don't think we'll see torin but decent companies coming. that's got the ipo market excited. the dow is up a hundred. we are essentially at new highs intraday on the s&p. back to you. >> thank you very much, bob pisani. oil almost exactly flat. jack any deangelis for us at the anyway mention. >> oil prices are tent tef.

we started the session overnight in negative territory. now we are bouncing around slightly positive, trying to make a comeback off the two-month low, not convinced it can do it today. recent losses based on the fact there is increased concern asht economic growth. comments out of the middle east from the new saudi oil minister about the market rebalance may be helping things stabilize here if we have a nice solid green session as well. meantime gas prices have dropped according to to the survey. down seven cents. the average is $2.29. post fourth of july we start to see the decline. that's the peak of the driving season. gold prices are hanging in there. we made another push to break through the 1376 resistance. some analysts say the next time we make the push we'll probably take it out. now stabilizing the safe haven trade has not come off the table and we are holding over 1350. back to you.

>> jackie, thanks. when we come back, microsoft and ge striking a cloud rp pa. stay tuned for a live interview. meanwhile the s&p has taken more than a year but at 2138 the s&p is the highest it's ever been. back after the break. e show's pretty much over. (friend) wish we could start it from the beginning. (jon bon jovi) with directv, you can. you see, wve got the power to turn back time let's start over, let's rewind and let's go back and not quit the gym and ve a chance toayoodbye to grampy tim oh, that's the power to turn back time. (vo)et t ultimate all-included bdl call 1-800-directv.

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all-time high for the s&p. with things pretty good. a point above the prior high set a year ago in may. david? >> a number of retailers taking aim at amazon ahead of the prime day shopping event. that begins tomorrow. walmart is offering free shipping with no minimum purchase on all online orders for five days beginning today. gap, the limited, big online discounts. am skon is likely to get a big lift from the second annual prime day as hundreds of thousands of members signed up last year. cowan represents amazon prime subscribers range from 45 to 46

million. that's up 23% from a year ago. we don't know if the numbers are correct. amazon doesn't tell us. except they say tens of millions but we don't know the number. it's a lot. it is an incredibly powerful engine of commerce in this country that's changed so much. probably it will continue to. >> the credit expansion in may was north of 6%. that says can bigger than just amazon. even with 17 billion in additional. the rest of the retailers came alive. looking at macy's, nordstrom starting to go up. target. my charitable trust owns that. it's been not a great stock at all. i see broader retail rally. i think consumer credit is doing better than people thought. people are feeling more comfortable. >> people would be spending more

though sharewise more may be going online and to amazon. >> why couldn't i have said that? >> i come back fresh. >> the article in the journal had something we have known which is the big department stores replaced by smaller retailers. >> department stores paying less on rent. morgan stanley has a note on amazon today, maintaining the 800 target. arguing it's basically groceries and clothes driving 26% of amazon's forward growth will be groceries and clothes. >> they rule the world. they really do. >> not to mention the cloud business. you saw the announcement we highlighted between ge and microsoft. amazon is still on web services. it's a monster. >> that's why thing sto. everyone says it is over valued. i get the criticism on twitter. no. amazon web search had a lot. walmart, we don't talk enough about the stock. it's again going up. with the recognition that doug

macmillan has done something right. >> it's near a 52-week high. >> gave people a raise. spent more money on doing -- buy it online. something is working. the prices are working, the scale. that stock is a horse. it's a good horse. >> it is. it's up 10% in the last three months alone. >> could they co-exist together in peace? >> i don't know. the age of both. >> it's like brutus and caesar. didn't end well. >> the market value is $120 billion more than walmart's. >> holy cow. virtual. >> 74 on walmart looks better than 56. >> oh, remember that? >> in november. >> the walmart bomb. they dropped the bomb. >> right up stairs in the meeting. >> yeah. >> that was a weird day. >> it was weird.

>> learning. now they are back. looking at the app. the app is no longer featuring vel veet at the top. not just that. >> we'll get stop trading with jim in a moment.

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keeping the power lines clear,my job to protect public safety, while also protecting the environment. the natural world is a beautiful thing, the work that we do helps us protect it. public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california.

once again time for cramer and stop trading. >> boeing, though they admit they don't have a huge surge in orders. if the stock is breaking out. that's important. don't forget why you have to buy planes in dollars. they are talking about that. anyway, there you go. intel. two firms both say this is about the break out bank of america and merrill-lynch and cowan, field work suggests the iphone 7 narrative better than expected. maybe 50% of the innards of the iphone. that would be big. i think brian is doing a great job. people under estimate him at their own peril. he's a gamer. he's an actual gamer. i wonder if he's doing pokemon go. >> i don't know. >> who isn't?

>> i don't know. >> more devices now than twitter and tinder. >> i thought i was a simulation. now i'm a pokemon. >> you could be both. >> really? >> sure. >> that's my secret master plan. >> i can't wait. >> what's on "mad" tonight? >> alcoa. they have construction, turbines. aerospace and a break up. david lately shrinking isn't growing. >> no grow to shrink. it's great to be back. it's fun. >> yeah. you seem surprised. >> especially this week. >> good to be back. rome is fabulous. post nine is better. >> you're like a tesla charged to capacity. >> i have to tell you. zero to 80. no emissions. a master plan. higher without earnings.

i'm ready to roll. >> you're the top, the colosseum. >> "mad money" at can have p.m. when we come back satya nadella. jeff immelt of ge on the cloud partnership. back after the break. ♪ using 60,000 points from my chase ink card i bought all the fruit... veggies... and herbs needed to create a pop-up pick-your-own juice bar in the middle of the city, so now everyone knows... we have some of the freshest juice in town.

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take a look at the markets. s&p sets a new intraday high. without the help of oil which is up just a touch above 45. we'll keep an eye on that ahead of a busy week. >> our road map for the hour begins with the markets soaring at the open. the s&p 500 breaking its previous record set in may. information technology and financials leading the way. the dow closing in on a record. how long will the rally last? we'll discuss.

get ready to report. we'll tell you what to keep an eye on. >> plus an exclusive interview with satya nadella and ge ceo jeff immelt. announcing a cloud partnership this morning. we'll discuss that and more. that interview is coming up at 10:30 a.m. eastern time. let's start with the market rally on our hands. dow up 83 points. s&p 500 hitting a new record high. is stocks continuing to rise after the stunning jobs report. perhaps helping boost investor confidence in the u.s. economy and beyond. let's bring in paul christopher, head of global market strategists at wells fargo. whatever wall of worry the market managed to climb.

is it too late to get in? >> it's not too late. the year-end target with a mid point of 2240 for the s&p. there is decent upside here and pull back, we expect. additional referendum in europe and in the u.s. there will be pull-backs for buying opportunities. >> this rally this morning was kicked off in japan where the nikkei rose 4%. the japanese yen weakening. the victory for prime minister abe's government coalition. why was there such an applause of a policy that doesn't seem to be working in japan. >> it's more of the same. it's a large stimulus markets are expecting. perhaps a few percent of gdp. it keeps the game going. the. conation of central bank activity and fiscal stimulus will keep japan treading water above stall speed like the world.

that's enough. it is growth without inflation. >> is that why the u.s. equity market here has rallied in the face of bond yields barely budging after what was a strong jobs report. we should expect more. that should help the markets higher. >> can we expect more bond buying? can we expect new record low levels for yields? 1% perhaps for the ten-year treasury. >> global bond investors recognize policy rates are likely to stay low for the rest of the decade. just looking at forward rates. one can see in europe they

expect negative rates to persist. similar for japan and for the fed markets are expecting something like 1% plus. with that backdrop, as long as the continued economic growth. that keeps it together. continued cash flow. that's what a bond or equity investor needs. there is a lot of cash out there still. what we are changing, of course, is the acceleration in economic growth. that requires pick up in productivity in nations. we haven't seen action to encourage businesses to invest which would, of course, raise it and left growth rates. as janet yellen said, raise the neutral funds rate. that's not on the horizon. they will be moving in as long as they have the glue keeping it together.

continued cash flow through economic growth. >> hey, paul. on earnings season, a lot of discussion about whether or not the earnings recession continues. s&p is looking for a 5% drop in eps. we know the quarter usually ends up four or five points higher than the estimate. do they have a chance at breaking even or not? >> they have a chance. some of this is due to the problems in the energy sector. they have been a large drag on earnings for several quarters. if you look ahead and we think the market is looking ahead. we see faster growth in the second half of the year headed into 2017. earnings should follow that. so we think it is a matter of time, if not this quarter. >> tony, if i'm a bond fund manager or running a pension fund and we have stuff rolling off that had a yield. and now i'm looking around and can't find anything where i usually focus that has a yield at all. everything is negative. what do i do? do i keep going out on the risk curve and where does that take

us if you're right and this keeps going from 2020? >> first, investors should remember you can't market time the diversification benefits of bonds. what you said is analogous to an automobile driver saying i haven't had an accident in a while so i don't need car insurance, dropping it for a week, a month or a few months. in treasury there is still yield. it's better to move out and away from treasury into other products. we suggest an overall strategy of bend but not break in terms of an investment theme. first, put capital preservation first. that means looking at core strategies and enhanced cash management. investors too much these days running in cash deposits. 11 trillion worth and in money market funds. secondly extracting complexity premium in bonds means looking

at income strategies, credit strategies and liquid alternatives. finally think about how things could go well to bring you into commodities, multi asset and real return strategies. there is a lot to do. don't drop your insurance yet. >> back to the stocks, paul. carl asked about profit recovery. how about revenues recovery? how much harder is that to achieve in a slow growth environment? at this point, you're looking all the them being the same. we have seen companies go back into cost cutting modes but they aring looing for revenues to recover. as is tekd half progresses and the consumer which is the strength of the recovery continues to gain momentum we think you will see the top line improve. with it, the bottom line. >> can you give us a sector for where you are expecting to see

it the most? >> yeah. look. the sector that's been performing for a while is consumer discretionary. we'll have on the list with information technology, health care. we like industrials, too, here. >> thank you. good to see you. paul christopher from wells fargo and tony creczenzi from pimco. >> a major cloud partnership. the worldwide conference in toronto. with the two ceos. >> won't be long now. this is about the platform becoming available on microsoft's cloud. that's going to happen in q-2 or by q-2. they will do some testing.

ge's predix is about helping industrial material. hay work better. that means using analytics to boost revenue and lower costs at the same time. be able to tell when something will break down or when you should run the air conditioning. might be another scenario for that. ge not only uses predix. they want other companies. even competitors to begin on top of that. it's kbrks e digital business in revenue. $15 billion they are targeting by 2020. this is an important center piece. sounds like they want to use this to tie the industrial customers into office 365. to dynamics which is their answer to some of the stuff that sales force, sap and others do. this is a key strategic deal.

going to get to jeff immelt and satya nadella how they are going to work through blocking and tackling making it work for long-term strategies. >> we haven't yet spoken to them. what do you expect some of the take aways to be, specifically around capital spending and investment? even in the cloud. >> i want to get to that specifically as it relates to globalization. jeff immelt gave an interesting speech a couple of months ago. a commencement address talking about how important globalization is and some of the adjustments he and other ceos are having to make as we get more protectionist policies coming not just out of the u.s. but around the world. we have seen the brexit vote and implications of that. with microsoft, want to hear how much they will spend on cloud and some of the other efforts. we see them snapping up linkedin for more than $20 billion. that has to play out still. what else are they prepared to

spend money on to make the cloud strategy play out. >> we can't wait for it. the interview in 20 minutes. stick around for that. >> first when we come back, the earnings season spotlight hitting the big banks as credit suisse, barclays and morgan stanley are cutting the forecast. bank stocks are up. wall street is bracing for bottom line declines. we'll tell you what to watch for. plus our exclusive interview with satya nadella and jeffrey immelt. don't miss it. much more ahead. stay with us.

friday's job numbers and the win for abe helping s&p hit an all time high. the banking group is down nearly 13% versus the s&p this year. analysts at barclays, credit suisse cutting forecasts on the group. good to see you, jeff. >> good morning. nice to be here. >> is the story going to be investment banking fees?

slowest first half since 2012. >> well, the reason for that is a tough first quarter which we know it's in the books. second quarter got better and the outlook is good for investment banking. especially relative to how the stocks have traded. it seems like they are trading as though the investment cycle turned and we'll flat line on investment banking and trading revenues. there is upside chg turn into good news for the group. specifically in this quarter we should watch fixed income trading. the credit markets are more favorable. we are probably ahead of consensus. if there is a potential here for upside surprises. >> you bring in numbers for a few but not all of them. walk us through the differences. >> our preview wasba for bank o america and citigroup. it was more for the guidance on consumer revenues.

as we look forward we took the 2017 numbers down between 1 to 2%. there are more revenue head winds. there is more cost to come out next year than people are giving credit for and capital markets. as long as gdp growth is north of 3% which is the consensus estimate for the world we should see pretty good trading in investment banking numbers. the pessimism on the universal banks specifically for 2016 is over done. do you see it waying on earnings? the uncertainty about hiring and investment decisions in the uk, europe and potentially m & a? >> that's the question. not how much it is to relocate

london to dublin to stay in the eu. what kind of effect does the uncertainty have an investor confidence with ipos, m & a. i'm encouraged at the market's bounce back after brexit. it's not good news for the capital markets but we are doing well. the uk is the market to be most concerned about. they were down 70% already year to date coming into the vote. a lot of the potential slow down isn't priced in. >> you mentioned expense controls. you thought the buy back announcements were pretty impressive. >> yeah. i thought we were maybe being aggressive. they came in better than we were expecting, especially for jpmorgan. they were strong. morgan stanley was strong. that creates a meaningful tail

wind for next year for eps. we didn't take the numbers down for 2017. that buy back provided enough off set that the revenue we built in didn't hurt the bottom line. good news from an earning perspective and outlook. it suggests the regulatory focus on the guys is easing a little bit. and maybe things will be easier for them going forward. >> finally a question echoing friday's news. did the jobs number do anything to meaningfully adjust the rate discussion? >> i don't think so. you look at how the market reacts month to month on the jobs report. it's like credit data. it's volatile. you have to look at the three-month average. the market over reacted to 38,000. probably caught some of that back up. the employment market is going

in the right direction. that should be good news for at least rates potentially being able to go up. that's the catch with interest rates. if they are not going up it hurts spread income and applies to the economy is in trouble. if the economy is trouble that's a much better opportunity for the banks. >> we are buckling up here getting ready for the week. thanks, jeff. >> when we come back, an interview you cannot miss. an exclusive sit down with microsoft's ceo satya nadella and ge's jeff immelt. we'll discuss the new cloud partnership and more coming up at 10:30 a.m. eastern time. first, cnbc's tenth annual america's top states for business is ready to kick off. scott joins us from a mystery location. here we go, scott. >> reporter: we are in america's top state for business. but we are not going to tell you what it is yet. we are going to tell you about how we do the countdown, the

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in a few minutes an interview you don't want to miss. an interview with satya nadella and jeff immelt. we'll discuss the cloud partnership and more. first, cnbc's tenth annual rankings of america's top states for business. our own scott cohn now with what to expect from this year's top states and any clues, scott? >> well, you can look around me and see if it tells you anything at all. it is a nice part of the country. we have done this now for ten years. the formula has always remained the same. i want to take you through how we come up with this. the first step is we go through every state's economic development marketing materials and see what they are talking about. the more the states are talking about something, the more points it carries in the study. there are ten categories. so the point totals changed over the years but the categories have remained the same. what they are talking about

most, work force worth 400 points. we look at the education level, union membership, productivity. we look at migration. are states attracting workers? the cost of doing business. taxes, wages, utility cost and incentives. infrastructure, roads, bridges, ports, airports, anything to get your people and products on the missouri. the economy. we look at job growth, economic growth, state finances. that type of thing. the quality of life. we look at the crime rate, air quality, things to do. we also look at inclusiveness in state laws and whether people of all stripes can be welcome in that state. technology and innovation. we look at research grants, patents, things that basically support innovation. important in a state in this age. business friendliness, regulations. the cost of living and access to capital. both venture capital and small

business lending. we have to be america's top for business. the countdown will go on all day tomorrow. top states.cnbc.com. always fun to. with a. our scott cohn here. exclusive with satya nadella and jeff immelt of ge. we'll go to the worldwide conference where they will join us in a moment.

hello prhant bhuya co-founder of the fintech services sta-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before marks ose. you know, your analysis has helpeds improve our predicti auracy by over 500%. 552, to be precise, but we can always do better. i like your attitude watson.

microsoft and ge announcing a partnership signalling a big vote of confidence in the cloud business. john ford is in toronto with the leaders of both companies. hi, john. >> hey, carl, thanks. i'm here with satya nadella and jeff immelt. thanks for sitting down with us. big announcements today around the cloud for both of you.

satya, i want to start with you to put it in context. it's clear what's in this for ge. i think they had a $5 billion digital business last year planning for $15 billion by 2020. how do you make this work for microsoft and boost the other cloud businesses as well. >> we are right here at a partner conference at microsoft. we are a platform company. when we think about what a platform company does, it creates an opportunity for other software and other platform companies. they are building out their own platform. it creates a huge opportunity for the partners at this conference to be able to build the internet of things and industrial internet solutions. as part of the solutions, they would wire in microsoft dynamics, office 365 and all of

the other partner solutions. to me, it's that combination of platform capabilities that i think will shape the industrial internet. >> can we think of it being a potential industrial and enterprise on ramp to microsoft's full cloud in a similar way that linkedin would be an individual consumer on ramp to things like 365. >> the professional network to 365. that's the linked ds in dynamics. but the way we thought about partnerships is what are the companies that are innovating in softwares. building solutions that we can partner as a provider. in the past it was about tech companies. now every company is a tech company. ge is a digital company building with predix. in the past, sap was a big partner of ours. going forward, of course. sap would be a partner but ge

would be in the same class. >> talk to me. ge has traditionally been a huge technology customer. you are becoming more and more of a technology player in your own right. what are the cloud providers going to do to distinguish themselves working with you so they don't end up offering commoditized services. doesn't matter if you are on azur, amazon or oracle. >> you have been covering it a long time. there will be multiple allian alliances. for us, having a relationship with microsoft does two things really. one, allows us to go faster. in the industrial world it will be customer by customer, country by country. having azur's presence around the world, being able to build the platform on top of the platform allows us to go faster. >> there is a bridge between intersurprise and industrial. every chief information officer

will have to walk. they will have to be more comfortable with operations technology. i think microsoft -- >> good example of what kind of use. >> sure. >> take a railroad. they have been buying systems. they have microsoft office in their offices. now they want to do a movement planner to then them schedule loek motives. that's operations technology. it's easier if they have a cloud provider. easier if they are able to put predix on top or some other network they are more comfortable with. >> every airline, utility. everybody else. there will be lots of aliepss as time goes on. >> this will help the trains run on time. we are pulling data off the equipment. what we can do is add that with use data. we are coming at this from the asset of. microsoft is coming at it from enterprise across.

we intersect. the industrial world is done in units of one. they are in different countries. having the arms and legs that solve the problems globally is something that takes scale. >> i want to ask about globalization. you gave an interesting commencement address. you said we will produce for the u.s. in the u.s. but our exports may decline. i think you were talking about some of the protectionist policies springing up everywhere. at the same time we'll localize protection in big markets like saudi arabia and countries where export banks like canada will be attractive for investment. that sounds like a warning that if u.s. policies continue toward protectionism both hiring and capital spending. >> everybody looks at the trade deals and things to be from microsoft, ge or big companies.

we have globalized already. we have 400 factories around the world. microsoft is in every country around the world. the trade deals help small not big companies. we are for the export, import bank. if there is no import-export bank we'll move production around the world and take advantage of banks in europe and other places. i think smart global companies have smart local strategies that allow them to continue to grow while politics ebb and flow in every corner of the world allows us to serve our customers globally. >> we were going to have the democratic, republican convention, a lot of policy discussed. what are a couple of issues. not going to ask you to pick a candidate. what are a couple of issues that as the ceo of one of america's best known brands, the biggest businesses. you are going to be looking for. it will be important for moving not just microsoft but also your employees' livelihoods forward.

>> great question. there are many issues. i talked to the politicians every day. whether it's immigration, patent reform or trade. quite frankly right now what i'm looking for is the politics in our country to get to a place where they can win elections by making a case for both globalization and addressing the inequities that exist in the society. that's where we need to get to. it can't be one versus the other. it has to be how do we balance the two such that we can truly have the right dialogue for the progress of the country. america has to be the beacon of progress, where both the inequities in society are addressed and at the same time, we can shut the world out. >> do you see that the same way and what kind of message do you feel we need to hear to get at that? >> i would say three things.

really three things. security. there are other people smarter than the two of us. to work on geo politics. >> 2% won't get it done. we have to have more pro growth policies. 5% of the world population in the u.s. without globalization, that doesn't end well for a country like the united states. pro growth policies and unity. i think all of us want to see more constructed dialogue that takes place between business, government, some of the tragedies that have taken place recently. i would say i look for which candidates will provide security. that helps most people. everybody. >> when you look at the more protectionist moves as some see

them. as you look at brexit, does that make it more expensive to do business globally? if so, who will end up bearing the cost? do you have to raise prices for your services and software in various markets? how does that play out? >> look. in fact, that's the real world to me. they are legitimate digital sovereignty needs, digital security needs that companies have to address across the globe. in our case, for example, we operate in china under chinese law we have the cloud operating under german law. have we have not gotten to a point of equilibrium where it's friction free. we are building azure and the infrastructure. office 365 for that. the costs of that for sure will be higher than just having one data center in one part of the world to serve everybody.

>> are you having to tweak plans based on the headlines. >> more so than we already anticipated it. i'm not tweaking it because of brexit. even take the united kingdom. we have data centers in the united kingdom. we have data centers in the netherlands. we have already anticipated our legitimate security needs. sometime sometimes it's more prediction laden. the world will be simple. an automatic assumption. >> good global ceo. knows the mayor's complexity. we have 400 factories around the world. we know how to make and sell things in every corner of the world. look, we are a $20 billion

exporter from the united states. we are a net exporter in almost every country in the world. we can compete. this year that everybody wants to put forth. i understand it hasn't been -- that there's been people that haven't done as well as others as we have globalized. this country is competitive. we have great people and products. help us compete versus closing the door on globalization. there is more to be gained than lost. >> ge capital is no longer too big to fail. systemically important financial institution. that makes people very happy or pushing for ge to focus on roots as an industrial company. that will free up resources that are don't have to spend with

regulation. what's top of the laundry list as far as where you will invest now that it's freed up? >> we love where the company is today. we continue to have a great dividend and, you know, we'll execute plans on buyback and things like that. we love reinvesting back in core fran iz choos. we love the competitive advantage we have. making investments in predix and the digital transformation. we think these are great for our customers, great for our people and for investors. what i say is we'll get the best company in the world and you get predix for free. that's a pretty good message for investors. >> i'm not sure they are getting it for free. >> a little. maybe not what jim cramer would say free. >> i want to go a little bit

lighter. in a way, pokemon go. over the past few days it's exploded on mobile devices as a popular game. you know, you throw balls at them or something. i never played. i'm too old. it uses augmented reality which is an area you at microsoft pioneered with the hollow lens. are you missing an opportunity? is there room to apply the technology just in this more than you have already? >> it's fantastic to see this augmented reality getting built. the best thing that can happen when creating a new category is for the killer apps. whether it's the industrial scenario for investing it. to the pokemon interest hopefully will translate into interest. if you think about it the game

physics are built for it. the phone is a great way for the installed base of the phone. it makes it possible. think about the game on hollow lens. you can actually just use your eyes to look through and have the augmented reality experience. we showed not just gaming though. to me, the industrial scenarios whether it is education, training, manufacturing, design will be changed by augmented reality. it is the paradigm. i'm happy for pokemon and industrials. >> are you buying hollow lens. >> we are all over this technology. what microsoft is working on, we are quite keen on. they are quite advanced. if you can take the cycle time

on a utility or l & g plant or refinery down by 10%. say you could fix everything right the first time. you had a chance to visualize, manage the human data interface down by 10%. that's worth $50 billion or something. >> i'm not a great gamer. i really can't say how much it's worth. the industrial applications will be billions of productivity. that's where the industrial -- >> how far off do you think we are from widespread adoption of technologies -- >> like this? >> within 24 months. >> does that mean you are putting in orders? >> within 24 months. >> we are trying to build the right human interface. >> we have 20,000 field engineers repairs mr scanners, jet engines. we are marrying that with

service data right now. this is really right there. vis-a-vis how to unfold it in the technology. >> the scenario we just showed was the japan air lines using it for the training module. absolutely. hollow lens is available today. you have to go out, order the devices. >> it's pricy. >> that will save you $15 billion. >> the price will be a little bit better. >> okay. >> you will be ready to supply this within 24 months. you are seen to use it within 24 months. sounds like augmented reality and the promise of that on predix is something we'll track as a real contributor before long. >> i think, again, i look at our -- say to replace the base today would be almost $2 trillion. the assets, the industrial

assets. the difference between the consumer internet, if you have an iphone you throw it away and get another one. with a gas turbine, 1% more fuel is like gold for you. our ability to deliver in this distributed global network, more productivity tools is like gold for the customers. make no mistake. augmented reality will happen. it will happen in the industrial space. it will be very productive. you know, we want to make sure as a practitioner, first and foremost, we want to be the best practitioner of the technology. >> i noticed just to close you joined your first nonprofit board. tell us why that's important. you picked this one. >> to me, i was looking at what's a world class organization doing world class work and was local to seattle. you know, unanimously, people recommended fred hutch.

when i think about curing cancer and the way things like immunotherapy are really bending the curve on finding the cure for cancer. i felt that i can learn a lot. maybe contribute a thing or two to a world class organization. i'm really privileged to have a chance to join the board. i'm looking forward to it. >> hutch is one of the best in the world. great to have satya there. all right. >> well, i guess one last question for you. you are 60 years old, i'm told. you don't look a day close to that. edging toward the area where people start wondering, okay, succession plans, how long are you planning to serve in this job? are you in it for the long haul? >> joe kern and i are both from cincinnati. we were both born the same year. i'm going as long as joe goes.

wherever that takes me. you tell him i said it. >> put your running shoes on. that could be a long time. i don't know how long a day you work. okay. >> more than joe. i can tell you. >> you said it. i didn't. thank you for joining us. covering industrial internet. the cloud, augmented reality. so much. really appreciate it. exclusive to cnbc. satya nadella and jeff immelt. back to you. >> okay, john. thanks so much. in toronto. happening as ge hit about 32 and a half. going to take you back to the highest level since 2008. the evolution as an industrial. now a tech company continues the conversation immelt made repeatedly. >> it was interesting to hear nadella start with ge as a digital company giving props to them and immelt excited about talking about pokemon saying, i don't know about gaming but when it comes to augmented reality you will see this when it comes to our industrial clients he made a link between that, jet

engines and how it could save billions in productivity. interesting for him to talk about the technology. also about the election and the issues. both companies, multinational. they do business abroad. they are making the case that while they recognize they said this. globalization certainly leaves people behind. it is important to make the case that net-net it is positive for the country. competitiveness and the economy. 2% growth. not going to get it done. >> especially small companies that haven't globalized. meanwhile, as we go to break, take a look at the markets. dow up 90. s&p stopped essentially where we made the last all-time intraday high. 2137. more after a break. we were rn 100 years ago

into a n american century. born with a hunger tfly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america f a century of trust, for e privilege of flying higher and higher, together. ♪

is there a troubling sign for stocks? one strategist makes his case on trading nation.cnbc.com. more "squawk on the street" next.

>> stocks are building up half a percent. and boeing. s&p 500 up. we're in record territory and need to close about 2130.82 for a new record close. some of the groups are the cyclical groups. technology, energy, industrials even though energy and oil prices flip back into negative territory. adjusting that better u.s. jobs report. a 4% rally in japan's stock market overnight and looking ahead attorneyings. alcoa after the bell. kicking off and bringing in multibillion dollar orders. we'll take you live next. in alt. yet alternatives can tap opportunities

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the farnborough air show is kicking off. massive new orders worth billions of dollars are already being announced and phil is at the air show and joins us now with the highlights so far. phil. >> what we have noticed is just

when they're starting to get momentum. just when we're starting to see the first planes taking off for the fun part of the air show a huge storm came through. we're still waiting for the f-35 joint strike fighter to fly in just a little bit. here's a couple of things and we can give you a taste of the air show. the c series is one of the stories garnering a lot of attention. we had a chance to go up for a flight in this plane. it features a wider aisle so it's 21.5 inches and it's easier to walk down the aisle and a configuration of three seats on one side. two on the other and airbus and boeing and delivers more planes and eating into that backlog. they're both sitting at record backlog. if you ordered the new one you'll have to wait many years to get that. here's the ceo of boeing talking

about cutting into that backlog. >> we get about 5700 commercial air unplanes in our backlog today. we're still expected to build about one today. not as great as previous years. stronger and narrow bodies and wide bodies and this is just execution and successfully delivering on that backlog. >> as you take a look at boeing versus the dow jones industrial average over the last year boeing is hoping as they can improve they can cut into the backlog. remember guys, they garner their profits based on deliveries. the rain is gone. let's see if we get the f-35 flying soon. guys, back to you. >> phil, thank you. reporting live from the air show. we'll see you later. let's get a quick check on the markets here. the dow is up 91 points. boeing, that stock is helping 58

new s&p 52 week highs including some new records for amazon, auto zone, comcast, dollar general and more. the s&p 500 inches higher into record territory. 2130.8 would be a record low. squawk alley is next. stay with us here on cnbc.

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>> it is 11:00 a.m. on wall street and squawk alley is live. ♪ >> welcome to squawk alley for monday. kayla here at post 9 and john fort on assignment. first up they're our big stories. this all time high in the s&p. first time since may of last