amazon's second annual prime day is in full swing. some customers reported difficulty with check out. in a tweet, amazon is working to resolve the issue. >> so you hear tomorrow night? >> i don't know. i think we're going to hear later. >> make sure you join us tomorrow. "squawk on the street" is next. i'll be here. good monday morning, welcome to "squawk on the street," i'm carl quintanilla, the new york stock exchange, a day after the s&p hits a new high, futures indicate the blue chips could get very close and the nasdaq might go green for the first time in 2016. european markets are stronger, and the uk up over 2.5, and oil

is up a buck. our roadmap begins with historic highs for stocks, and the worst plays at these levels and where it may go next. >> it is amazon prime day, and now the company hoping for a big boost to its bottom line from new amazon prime members, the real driver behind the massive craze. >> and pokemon driving nin tete stocks up high, and stocks looking to make more history, a day after the s&p set those record highs since may of last year. all-time internet high now 2143, the closing high, 2137. nasdaq poised to open in positive territory, which it has not done, unlike the other two, all year long. your point this morning, jim s, not enough people care at this point? >> no, too many people ordering shoe dog for you on amazon prime day right now. right? here we go.

>> i'm ordering shoe dog. >>nick nike has yet to confirm, starbucks has yet to confirm. if we can get amazon to get going, we get cisco, say through 30, intel positive note, we take microsoft and shoehorn nintendo, we could get them. this is still hated. yesterday, a guy says to me, until the airlines confirm, you're washed up, cramer. >> i love washed up. >> you had a good run. >> fabulous run, bryan krantz was on yesterday. but, you take a look at some of these stocks like continental, united airlines, raises their bottom end of their forecast by a half percent. delta, aol, down 25, 26, 27 f.

th if they get moving where is the new objection? che someone was saying food stocks have been on a 30 year bubble. i'll take it. you were talking about dutch guilders. >> 499 year history in the bond market. >> i don't know how long the total craze is. maybe general mills is -- gees, let's do some harvesting. >> i just keep coming back to this basic idea that it's not even about earnings or anything else. it's just about finding a place to get some yield, buy dividend-paying stocks, because the hope is it's going to do better than your negotiation hihi negative-yielding bonds or if you want to go get paid .164, or

italy at 1.186, which is just bizarre. >> i'll give you one and i'll be in his face. alkoa, yesterday, on their conference call talked about autos being incredibly strong in europe, okay, trucks being incredibly strong in europe, construction being strong. i'm telling you those bonds, they're wrong, because the economic activity, according to alkoa is really starting to move in western europe. so, yes -- >> okay. >> those bonds are wrong. it's time to buy -- there are certainly things that are wrong. >> in europe? >> no, i'm saying those bonds are wrong. what happens if those interest rates start going up, which they will. >> that's a question a lot of people are asking. if unexpectedly we get a move up in rates. we got our own ten year in bonds and the state -- >> those bonds are all wrong. they're artificial. with you seeing actual growth in

the economy. clause, last night, said china is growing. he had more anneecdotal. what i'm saying is the bond market's wrong and we may have decent earnings. klaus was the most bullish i have ever seen him other than at my wedding. remember what lisa wrote on those napkins. "best day ever". >> alkoa coa is at a two month . >> and we said a billion of debt will be loaded on to our corporation and that will be reduced inside of what will be our numbers. and the intelligent solution, which is called the 80/20 solution here, so we'll continue to have a 19.9 equity stay in

alcoa corporation. we also said we would want to do this ideally in the next 15 months after separation, but we have five years' time. >> he did make clear he's still operating in a low-pricing environment. >> aluminum was up 22%, bulk site, of which he's the largest producer. china is in deficit bulk site. maliss mal malasia shut them down. precision company, a lot like precision cast parts of which they're taking share, that's going to get a bid, maybe united technologies and the bulk site business, chinese buy it, the old commodity. chinese buy it in order to lockup bulk site. that's the dream-team scenario. >> let me come back to your economic growth scenario here in the states and a company you know well, starbucks, raising

wages. is that a sign -- >> starbucks raising prices. >> jpmorgan raising prices. >> yesterday, schultz -- >> announced they're hiring wages 5% to 20%. >> and schultz raises wages and his stocks go down, but jamie diamond, jpmorgan, raises wages, his stock goes higher. what is that about? >> the point i was simply trying to make -- and, yes, jamie diamond, with plans to increase the employee salaries, is it a sign the employment market is getting more competitive and therefore a sign of potential growth to come that's going to be more than 2%? >> i think we polimight have a decent me and going here. let's be really clear. if you are bank of america, you know they're taking these jobs jamie demond jamie diamond is talking about.

jpmorgan does not have the option -- >> they've got a lot of branches with a lot of people in them. >> they still love those branches. >> i think there's enough -- enough layoffs -- i see you starbucks, and i raise you c-gate. >> heartless one. >> yes. >> that's how the stock goes up. you fire people. >> raising their guidance, as western dig did announcing 6,000 more layoffs weeks after a prior round of layoffs. >> and intel, on notebooks we get some city. some of you have this picture of pc's being not as bad even though we got some broader numbers, but there's been enough shutdowns at various plants there's an average selling price increase in disk drives. that has happened only a few times in history. remember when conor -- and

alschugard -- >> what's happened is. >> mergers. >> okay. >> all right. >> m and a. >> let's talk a little bit about amazon. of course this morning, one day after its shared hit all-time highs, amazon featuring more than 100,000 deals exclusively for its prime members. retailers such as walmart and target responding with sales of their own, and says global members purchase more than 14 million items during last year's prime day, or three 98 items per second, exceeding black friday records at that time. we should mention right now, amazon is report something problems with the check-out process. it says it is working to resolve that. perhaps an embarrassment of riches for them. >> you're not going to fill my book then. >> apparently, you would not be able to buy it more me, as you were trying to buy it. >> my sister loves it. the estimates, amazon prime day,

1 billion versus 630 million last year, would that be something? wouldn't that show myou that retail is still -- you know, let's say a little bit difficult. customers having issues with check out. >> amazon just tweeted a few minutes ago -- >> is that the real amazon? >> and we all recall the first time when the #primedayfail, because of difficulty finalizing orders, when you try to do black friday four months early. >> it's true. >> listen, high-quality problem. >> and extremely successful in terms of focusing people, did, what, over 14 billion last year when they had their big day at a ali baba. >> we don't want that thick going down, not making the billion dollar city target. how quickly can they fix it? >> i have no idea, but i bet there are top people on it. >> top. >> computer science people?

>> meanwhile, basos on the cover of "newsweek," having surpassed walmart, now buffet in their sites above b.a.r.k. >> book out above. >> $355 billion and counting. >> jugger nut. >> it is, and amazon web services. >> and at what point do you step back and say maybe the moment up is slowing. maybe all the praise and everything else. i don't know. >> you're doing that -- you're having a reset. >> i'm just wondering when everybody's uniformly positive on something you have to wonder whether or not maybe it's kind of run its course for a little bit, that's all. >> the time to buy was when you did your sdoudocumentary, revea the 13th amendment may number play there, in terms of the -- >> workforce. >> that's when you had to buy it. people are very doubtful still of amazon. >> do you think so? >> you read twitter and people,

stuff like that. h they don't realize they are taking share in other categories. when was the last time you bought toilet paper at the store? >> i haven't purchased many things. we have a very traditional relationship seemingly in my household. i don't go to the store very often. >> there you go. listen to him. >> it's sad really isn't it? >> do you even play pokeman go? >> i'm a throw back. i don't know how to cook. >> that's embarrassing. >> you stick it in the microwave and you press one, gees. followup with the kids though. i'm not like -- >> we stopped buying stuff that we normally would go to the supermarket. now, there's button that we have. you press it. now, you think what would happen is i would -- makes you -- no, tied comes if you press the button. tide. >> that's proctor and gamble. >> do you think it's going to be

delayed because of this amazon crisis? >> crisis? >> i went from being a simulation to now being a button that's pressed. >> you are. when we come back, a lot more on the pokemon craze, this full-fledged phenomenon, has their stocks soaring, and calling for the 150 bail out of the banks, we'll talk to him, and premarket near all-time highs. we'll also get the president in dallas today. hillary clinton with sanders in rhode island. love rest loretta lynch on the hill. busy day shaping up. back in a minute.

shares of nintendo has been soaring compared to the pokemon game, to catch virtual monsters have boosted the cap by $9 billion in only a few days, past $31 billion, up 12% in tokyo, on every morning, late-night show, and people are talking about what it might do to peoples' data plans. >> i try to figure out pen to paper, verizon, t-mobile.

they don't care whether it's right or not. nintendo, how much do they make? >> the fact is when you're on page 1 of the "new york times," and the s&p for the all-time high this is big. i'm glad it's not happening during school. would people -- you know, i mean, this is great it's not happening during the school year because kids have just been -- this is it. >> apparently, if you go to central park, there's just hordes of people wondering all over the place with their phone in front of the place. >> apple is going up because of this. >> jim, to the larger point -- and your point on nintendo, a lot of people are trying to work through the numbers and understand what the real profitability will be for the company, since the company that actually owns the game -- >> and who else owns a part of it? >> google. >> yeah. >> but to the point, augmented reality is something a lot of

the game companies are going to, say, works. >> ar. >> so you wonder about act vision, which i notice has been up, nowhere near percentage wise in nintendo. this is a case-point usage for them to say augmented reality is a new area for us to start to really make some end roads into and make some money. >> it's funny i was out in, what, silicon valley three weeks ago and people were talking about a.r. -- i knew what it was because i have kids. they kept saying there's going to be a break-out moment for a.r. who knew that break-out moment was three weeks later? it's here. augmented reality is suddenly like artificial intelligence. it's what people talk about. it's there. >> it might be gaming. it leads the way all the time. >> yes, it does. >> the conversation is shifting to whether there will be industrial applications and

that's what jon fortt was told yesterday. take a listen. >> i think it's fantastic to see these augmented reality applications getting built. the best thing that can happen when you're creating a new category, these killer apps, whether it be gaming or the industrial scenario, to be invested in it. >> let's say whether you can say everything right the first time, had you a chance to visualize and manage the human interface down by 10%, that's probably worth $50 billion or something. >> billions in productivity, on all sorts of businesses and critical mass within a couple years basically. >> the enter innoceinternet of virtual reality, when we decide to go to the mall by putting a hat on, thinking about which store we want to go to. it's here. i feel very handicap, my page. i think younger people are so fac fac facile, and i wish they would spend sometime in the stock

market because their level of knowledge is rather extraordinary, and it's here, and the younger people who are going to work at g.e. are going to leap frog everybody. this is really kind of an age issue. i think augmented reality is something your 18, 19, 20, 21, 22, 23 ins and people in your 50s and 60s, people who are going to be left behind, just have no facility, and that's part of the problem, too, with our economy. where do these people go? they don't even know how to use their cell phones. >> just stop talking. enough. you're making me just down. marose. dolrus. >> the baby boomers have been left behind by the cell phone. the let's own okay? let's own this. this is a generational app. nidela happens to have a substantial gaming business that he doesn't talk about enough.

jim, why are they moving to boston, for heavens sake? where do students live? in fairfield, connecticut? there's good university but you know what i mean. >> i do. a lot of them wanted to move to new york. >> they're inheriting the world a little bit fast, these younger people. >> i don't know. >> ten years ago if i asked you if you were going to be on twitter, i don't think you would say, yeah, i'm going to have a million followers on twitter. >> and i was asked, jim, why aren't you using boomerang. do you use boomerang? you don't even know what that is? >> we're going to get you on dub smash, thriller. >> i know twillio. >> twillio doubling. >> when we come back, we'll get

cramer's mad dash, and we'll count down to the opening bell with the futures gaining a little steam. back in a minute. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card.

we've got opening bell about five and a half minutes from now. we've got a "mad dash". >> let's talk about the genex group. sage therapeutics. this is literally, 60 hours

complete remission, no more depression, versus placebo of just under 10%. this is what happens when you start getting a market that gets a little cheery and this drug could be use thd. these are remarkable results. my most skeptibcal person who writes about this, is this is real. the problem is, is that right, that you see this kind of levitation suddenly it takes a small study and blows it up into a big game. we have to be on the lookout for froth at the same time. >> we will be. >> let's just be a little bit on the froth alert. we know when it starts going crazy we don't want people to start getting hurt. >> it ain't 1999. >> no, it is not, david. >> one benefit to being old, remembering some of those days.

>> i saw the pictures -- you look the same. you're like a -- >> i'm asimulation. got the opening bell coming up right after this. great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important.

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sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it.

you're watching cnbc "squawk on the street," live from the financial capital of the world, the opening bell in about a minute. as we are watching these new high levels, for the year, is 5,007. we're a week from the president of the rnc appearances today by hillary clinton, and bernie sanders together. loretta lynch on the hill, and veep steaks obviously a lot going on. >> i was saying last night on "mad money" somehow the market is making peace with both candidates. they are really. they don't seem to be as concerned about the higher taxes for the other candidates. really rather amazing. they're calm. i would have thought the opposite. right now, there's, like, hey,

better than this guy. >> and earnings season unofficially unway as we've got alcoa under our belt. let's get a look at the opening bell and the dow. at the big board, ford corporation, and industrial technology and professional instrumentation company, and over at the nasdaq, it's staples kicking off the back to school season, which happens a lot earlier than people think. >> that's going to cringe pokemon go. maybe you get a degree. >> in pokemon go. >> i've got to tell you. this spin off is good. danders now more life science, very exciting business. those guys are a good manager. we know they're good. one of the great unsung industrials. >> and on the all-time high list, seemingly fantastic.

>> i am concerned that we are -- you know, that a lot of things going right. but, i do still think it's a hated bowl. i think it's a hated bowl. oil goes higher. we've got retailers, we've got the airlines, the hated bull. spot copper. i've got to tell you this alcoa quarter people gotta go over it. people has to hear what he has to say. bonds could be wrong controlled by central banks. >> investors have pulled twice as much out of domestic equity funds in may as they did through the earlier period. are you saying there's chase? >> i'm saying the individuals last flash monday -- let's call it the allen greenspan, redemption moment was some sort of capitulating -- mark grains

talked about the kcapitulation. on top of a hedge fund short, that mark raihaines would have d this is a creschendo. >> ten to one volume days. >> that's how much he care body that. he always looked at 10 to 1, and whether there was redemptions. he always looked at the highs and lows and said that was some sort of capitulation. >> your airlines are almost going to be the top gainers. ual, and p and margin guidens. >> thbefore they were looking f 6.5 to 7.5% down. now they're moving it to 6.5 to

6.75 and that's got the whole group on fire. in other words -- >> just that a little bit of inflection. >> was touenough? >> because it's been beaten down. >> beaten down. down 27. >> even last week? >> even last week, they were getting hurt. >> swept touthwest is the only doing well. they've been going down, but today is a new day. >> it seems to be a new day for many things including the s&p up, and the nasdaq in positive territory for the year. >> you know one day amazon will have a virtual stock market and we'll be sitting here buying stocks with no commissions. >> is that what's going to happen? >> it just said if you like f l phill phillip morris, you may like altrium. >> and managers will be replaced

by ai -- >> you mentioned earlier the market doesn't seem to be paying concern to the election, perhaps the machines. >> that's not the individual investor. the individual investor is not there. i had a robin hood when one i was out in san francisco. they were saying investors don't have to pay commissions, and anything on the internet could be free. this is an anathma to a lot of businesses. i'm looking at this two-track generational thing. >> you're really seeing -- >> it's like a mid-life crisis. i can't take how good they are. after it was still oh,n, i said still don't know how to do it. >> you're talking about a bunch of time walking around like this, aimless in areas not productive at all. >> it's the new york times.

at least they're outside getting exercise. i don't know. we have had -- i have had incredible executives from different -- strauss zelmer. they multitask. they're also playing candy crush and they're looking at you and looking for pokemons. they've got some life. >> and you want their undivided attention? >> i want their life, gosh. >> amazon all-time high nasdaq green for the year for the first time this year. vicks is at a 2016 low. >> that's worrisome, but two weeks -- right after brexit, the vick's was going down. jam jamie dimon raises higher wages and howard schultz's stocks went down yesterday.

so what does that mean? >> i don't know. i'm putting it out there. >> you're the man who answers the questions. we ask them. >> i raised eyebrows on this one. why did howard schultz not getting any credit is and jamie dimon is our wisdom. >> he has, but in this case, it was about why he's not running for president. >> all i can dell you when i read this by jamie dimon, i thought how much is this stock going to go down? magic tusk. >> tesla is worth watching. two things, the journal says the sec is being looking into the disclosure regarding that may crash. morgan stanley thinks this big announce me announ announcement, this master plan, may involve public mobility. >> that's the secret plan. >> master plan part two. >> yes, secret. >> i think to him, frankly, the sec is on cbs. i don't think he cares. sec on cbs. >> as in the southeastern

conference. >> i think he says -- he's a little bit immune. he is probably saying why is the sec going to -- the big 10 likes me. >> do you really think he cares? when the ivy league comes after him. the sec on cbs, you're going to be watching him, georgia, and florida. louisiana state takes it all. he does not care. won't matter. >> i want to know what the master secret plan part two is. and i'm excited to hear about that. driverless cars -- >> particularly when you don't keep your secret plan secret -- >> does uber make any money? >> uber. profit wise, no. >> does tesla make any money? it's a secret. >> if you own the stock you're making a little bit with it over 5.6%. yesterday, xerox, and rl

donnelley, i know you know the company well. i do want to weigh in with a little bit of reporting here from me. there had been some talks early days according to people familiar with the situation. very early days, and importantly, if it they were to do a deal, while there are a number of different ways you could do it, most likely, it would be after the spin off from xerox, which is splitting in two. >> right. >> and then something might be able to occur. you have to have a tax efficient deal, meaning using a morris structure deal, because of the ramifications after a split, jim. and they're talking for the potential of very large synergies. very early days. and i know again you've done a lot of work on the potential split for the donnelley side. >> and the famous business, which does all the catalogs where i felt they would buy the graphics company, and split up,

i thought it was very value-added. i think the split-up is going to continue. i wish the stories were a little less definitive, because i don't think this necessarily is going to happen. it may take too long. >> they do, and it's complex to say the least. and again i think they view the easiest way is wait until xerox does their split and wait until the donnelley businesses is part of the xerox split. >> okay. >> finally, some research calls b.m.o. upping oracle -- >> and that's expensive. i find is this nasdaq will catch up literally because of that kind of call, and oracle has

been -- has daniel naone nothin. intel creeped up a little bit high. cisco, broad comcom go higher. remember, i have a buy recommendation on apple. >> people forget the dow was out performed in three years. >> interesting. look at that s&p, it's filled with company it's they're so right. look at johnson & johnson. look at the brothers johnson. >> that should i be thinking? can they borrow at 0 at this point? >> aaa balance street. j and j has a better balance street than germany. >> certainly than italy. >> italy. >> yeah, i just came back from italy. who needs a balance seat, although i wouldn't use the, tm

machi machine. >> monte is the oldest bank in the world. >> the contrast between when you're there. dolche, and what is going on across the country -- >> dow is less than 20 points from an all-time high but it's above an all-time closing high. bob pasani is on the phone. >> nobody has more fun than the italians. that's why we like to go to italy. you have seen what's going on? i know everybody is trading off of our momentum. there's some better news, and not just may being the prime minister of the uk, but look at the european autos. he talked to klaus klinefeld. the group kept the guidance for the year. bmw came out, sales up 9%,

peugeot, and sales in europe rose 7%, they sold over a million units. look at these numbers for the european auto, and with the italian banks, renzi, prime minister, saying a deal within reach, those are his words. treasury might offer guarantees. merkel weighing in, saying the italian bank issue will be solved. look at the banks here. they've been up for a couple days in a row. unicredit, up 11%. they're doing some restructuring, as well. and intesa sanpaolo. those are the ones that really matter right now. same situation. this is the fourth day in a row, the u.s. banks have been leaders -- third day. friday, monday, and tuesday.

banks materials and energy leading the way. utilities are lagging right now, so that's the important thing, i think. crude is really helping move the markets right now up about $1 here. we had some comments from opec, tighter oil market, global demand higher than current production. excess inventories will be widthelwidt whittled down in 2017 productions. so on this, oil is up more than $1, that happened a little bit more than an hour ago and the oil stocks are all needing. the dow jones is knocking on the doors of new high. chevron, newexpiration, and the

dividende dividend aspect is at new highs, as well. the snp's been up 720% according to my friend dan wiener, but if you add in the dividends, the total return on the s&p 500, it's double that. 2.2% over many, many years, reinvest dividends, you get almost twice the return overall. i also want to point out with the italian banks, we noted that and some of the other banks with etf's. look at the dtt these have been hitting historic highs, as well, some weighted towards the dividend, but dvt, also at historic highs right now. and the search for yooeield is

continuing. lqd, took in the biggest notifl in its history. >> thank you. and the dough w is very close. we need 18, 327.56, which is one point away. the dow has never been higher, and crosses 18,350. >> that's mega millions. it's a $3 mega millions ticket. >> monte pashi, not yet. >> we're in this period where firms like goldman, continue to fall down in the summer before ending the year flat. is their thesis losing relevance? >> we had brexit. the impact lasted two days in

the equity markets. >> greenspan said it was the worst crisis. >> he did. part of the journalists is those exogenouv events are taking locker to recovlonger to recove from. >> we think back to that greenspan appearance where he was dower. >> and societiful. he was talking about the larger picture of entitlement spending and bankruptcying governments eventually. >> goldman, should read this call. clause -- i thought it was positive. oil consumption in china, i believe there was some repute able statistics. i believe he's more up-to-date? >> and you have to go through his deck, which is always

incredibly expensive. is anybody reading my deck? your deck is great. it's a full house. >> there it is. >> look at this things, north american truck, terrible, that's the only one that was bad. look at this china. 25.4% year-over-year truck gains. automotive, europe, 4.1 appears, you heaappears, these bond yields are insane. >> insane. >> and i think they're wrong. and the yooeields reflecting a little bit more reality. >> the tenure is now at about 1.5%. >> yep. >> which is still very below where it was. remember when the fed raised interest rates, wasn't that long ago when we hit 2%.

>> do you think the treasury sits there and asks should they buy j and j paper? >> i think in japan they do. j and j, they wish they could get that. >> they wish they would be in the round one venture investment company that created pokemon go. >> may they are. >> don't joke about stuff like that. >> no, you're right. all i'm saying is this craze is a craze. can we at least remember zinga? words with friends? dorm that? >> i remember all the crazes. >> it's not solo. you're meeting new people, you're exercising. maybe this is, you know, better. >> there have been some takes that it increases human

interaction. >> because you bump into people. >> yes, or get hit by their car. we don't want that. >> so dow record high, s&p 2151. >> that's right, the nasdaq about four% from a new record high, certainly a much faster trip than the first time it got to that level. it took 15 years, now within 12 months, july 20th, is the anniversary of that high, at 5231. amazon today has certainly contributed although it is off of they opening all-time high. amazon today continuing to chip away at that market cap, getting very close to beck shire market cap. there were a lot of complaints about deals being not as good as people have wanted. there's issues in people being able to check out, but the stock performance, it was up 3% on the

day, and according on to our friends, it was up about 15% a month after that far out performing the major averages. seagate is the best performer, cutting 14% of categories workforce, but upping its guidance, and finally, alfastanol. we've got watch some of these other companies in determines of earnings, like in perva and cognizant. >> let's check in with rick san te santela at the cme. >> they think equity are wrong. they look how central banks continue to try to push the envelope to negative rates. here we sit at 21 -- what, 2150 in the s&p? wrong is in the highs of the be

older. look at the two day of tens. if things change, let's look at one week of change. when things are untethered they can change. the equity markets may have putt a little bit religion, but how long will that last, until we ge get in front of another meet something let's look at a one month boones from minus 20 to minus ten, that says everything, let's change. greenspan was right, but he was talking -- the great monetizer was talking about the tip of the iceberg. he was referring to all the dynamics including the global and everything around the debt. that's what's behind brexit, not actually brexit. let's look at gilds, the epicenter from where it all started, from 50 to 79? let's look at the year to date

of the jgb's. they've sold off. they're only 27 basis points and finally, the pound versus the dollar. where everything is upside down, why don't we look at the rabid ho hole. it's stabilized. the risk parameter, that's as good as anyplace to focus on. carl, back to you. >> thank you very much, rick santelli. we'll get stock trading with jim, s&p sets another one. "squawk on the street" will be right back.

time for cramer in stock trading. >> we've got deutsche bank, and the last one is going to move, are they going to get to the free ports of the world, copper is bottoming, oil coming up. and why is this important? because this is the kind of stock that worry the us about the banks.

because we were worried about credit crisis the last time the banks reported. this could take a lot of pressure off the banks when they report. i'm looking for a reason to like them. okay? and the way i would like them is before we were worried about a free port last time the banks reported and we were worried about their solv envy it brought the banks down. you literally have a kind of, like, link, guys, you were worried about nothing, and employment growth is good. now, maybe they can make a case, and that would really hurt the bares. >> does the price action not set too high a bar for earnings season? can we only be disappointed? >> i think so, and i was thinking before alcoa, it was down from the restructure. there's still a lot of areas of the market that are down, so i'm not as concerned about that.

look look, if jpmorgan comes out, and -- and channels greenspan the way rick santelli did, the stock isn't going anywhere. we're losing the big bear case which was the criticized loans, the hundreds of billions of dollars in oil loans are looking a little bit better and freeport will be your case. and the reason i like this, is this is wind power. they have a regular business, but wind power is something ge has done a lot of. there's a lot of things that have just kind of sat there like in ge. it's really breaking out, and airlines. i don't know. do you want to get -- come back with sage therapeutic. don't want to play pokemon go

with these people. >> you're the perfect age to do it. this is jen -- i don't know, a, coming back. >> mad money tonight, 6:00 p.m. when we come back, david kostin of goldman sachs. don't go away. to do one thing & another. only at&t has the network, people, and partners to help companies be... local & global. open & secure. because no one knows & like at&t. in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow.

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breaking news, the dow hits a record high, and the nasdaq goes positive for 2016 for the first time all year. the dow at 18327, and the s&p below 2150. watching crude, as well, up almost 2%. api inventories tonight. you're watching "squawk on the street," i'm carl quintanilla, sara eisen is back from vacation, and obviously a lot of things going on, politically, it's hard to pull your attention away from the markets just two weeks and change away from brexit. >> it is hard to believe how many of a come back we've seen for this market and how long it's been since the last record high. back in may 2016 we got through the worries about china's currency, and about the falling price of oil and the brexit

crisis. and you come back to a record high. >> and people who invest in the stock market, that should be the norm. what's interesting is that very strong payroll report on friday and a lot of concern ease body whe about where we're going. earning season brings us, and also what the effect of perhaps a blackout there for corporate researches had wi researches will do for the market. we'll hear about that in the next five-minutes. >> and mcdonalds, we have some breaking economic data that just crossed. rick santelli with wholesale trade, rick? >> yes, may whole inventories, a little bit lighter than expected. last month, revised from six tenth, to seven tenth, the fact we've had three negative numbers so far this year, but the 1% -- they moved to seven tenths makes

that the best looking back, a little bit better news. half 0.1%, to .08, and maybe the mostest on t most optimistic, 5.588 million to 5.55. going back to the series, which started in late '99, i believe that is the highest number on record that revision for last month. carl, back to you. >> all right, rick, thank you very much. rick santelli, stocks on the rise. are we likely to see this in investor continue? let's bring in chief executive strategist, at goldman sachs. david, it's good to have you back. you've told us we're in for a spill. do you stand by it? have we already seen it?

when is it coming? >> let's think about strategy, and tactics. the strategy is the u.s.eck wid equity market will generally rise. and the economy, driving sales, margins coming down a little bit, so modest growth and earnings at 2,100, has been my forecast and if you look at 2017, we're looking around 2,200, trend in equity prices. from a tactical point of view, there's no risk. the last time we had you as a guest on june seventh, we expected the market to fall somewhere between 1,902,000 and the idea behind that was concerns about political uncertainty, mostly focused in the u.s., with more in europe, to be fair. here, looking forward from this point, we're looking at concerns about earnings, second quarter

earnings. we have political uncertainty, and conventions coming up on the republican and democratic side. generally speaking, higher raise in political uncertainty would lead to a different market, and the black-out period in terms of corporate purchases or not happening between now and the fifth of august. look at a variety of near-term developments would be more cautious tactically. >> in the next few weeks? >> the concern on third quarter will dissipate and you'll have a general move higher around 2,100 level. >> what do you make of these technicians after a pause of more than a year, it's higher a year later, nine times out of ten? >> certainly there's classic event studies. i tend to focus on the fundamentals and economic demand, how that influences sales and earnings and margins. one of the issues to focus are

on margins. they've already peaked, and one of the key driver ws was specifically apple, 25% of all the improvement in the s&p 500 over the last five years. margins in technology are also turning down that. is a concern, broadly speaking for lower margins across the market. that's worth some value -- some multiple there. think about sales. we have issues and head winds of the dollar. you have a 6% stronger dollar this year, relative to last year's second quarter. for those companies generating more revenues overseas, that's why an inventor, preference is for more exposure, looking for companies with higher prospective ratios. this is a market where that is a variable. think about dividends and income. amgen 3% dividend yield, growth probably 20%, that's a

characteristic likely to survive in this market. >> you're giving away all the data from the research noted. we hear hedge funds are betting against this market. for a number of reasons, people do not like the rally. they've been yanking their money out of mutual funds. how much does that bear positioning have to do with the fact we're at relatively higher highs? >> i would disagree with your statement in terms of our clients -- our clients are basically up sizing calls, participating upside in the market and believe that would be a pain trade if you would use that proverbial technology. a lot of people are be grudgingly recognizing the market has moved higher and there's risk it could move higher. bond yield at 4.4%, which suggests there's, not a lot of others. >> coming into the interview,

the one thing i thought might be useful to know is where you think the market will go in two or three years. what the central projection would be for the market and the probability of that outcome, the risk to reward and i think you heard you say 4,200 on the s&p, that would be a 2% gain from here, is that 2% over two years? >> that is correct. and the thought process behind this, is -- first in response to your question about the trajectory in terms of the market, a roughly 5% annualized total return on dividends, that would be the central case we would put forward. the market is trading at the 87th percentile, median stock, 98th percentile over 40 years. so the starting point of valuation impedes in my view, a significant upside return from these levels. we think about the drivers of this.

we have the u.s. economy expanding, so at 2% growth and real gdp leads to some growth, and you've got markets turning down in technology, which would suggest lower margins. and evaluation market that goes lower. >> on the top of all of that, people will say what happened that's suddenly the chief strategist from major houses like goldman were not cheerleading the market, and years gone by, as a group of people, a cohorts, might have done. did the fed it's what are we living through now? what's the big picture as to why the market might only rise 2% in two years? >> the big picture -- and i've been on wall street for 30 years. >> yes. >> the idea is you have starting point of valuation, which suggests you have muting and limitation on the expansion. number one. number two is what's the bottom line in terms of revenue growth

and earnings? the idea of revenue growth is associated with the economy, and is not growing at 3% or 4%. it's growing at 2% or sub-2%. sales and earnings is what drives the market. relative from the allocation prospective, there's not a lot of opportunity in bonds in our opinion, so the idea of bond yields would put the risk that u.s. stocks go lower, not higher in that environment. >> you mentioned dividends and amgen. does it make her sense that can go after a company that can boost the dividend, or paying out, 3, 4r, 5. if given a choice between the two, would prefer to have dividend growth over time. the swap market is implying a less than 2% annualized dividend growth for the next ten years. my forecast is 4% dividend

growth so that increased rate of dividend growth leads to a gently rising market. >> do you think they've reached on campbells and all of those. >> it's a concern broadly across the market and essential in some areas that you mentioned. preference would be for telecom, we get high dividend yield and relatively less highly valued stocks. some of the consassumumer discorrectionary presidents, as well. >> david kostin of goldman sachs. just lost 18,300, and other indices in the positive as you can see in the wake of the payroll, and all the details we got from david. coming up, amazon is hitting an all-time high today, as its prime day kicks off. we'll break down what it means

for that ahead, and deutsche bank landau coming up on "squawk on the street." at the beginning of the 21st century, the earth needed to find a new way to keep up with the data from over 30 billion connected devices. just 30 billion? a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called... the machine. it changed computing forever. and it's been part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine and accelerate the future. see star trek beyond.

our mission at clover is to highest quality dairy products. clover has relationships with 27 different family farms. the environment is who clover is. without it, we're nothing. pg&e's been a great partner. they're the energy experts, we're the milk guys. pg&e worked with clover on a number of energy efficiency projects to save energy every month. if you're part of the fabric of the community, you've got to ensure that you do things right, environment included. learn how you can save at pge.com/save together, we're building a better california. it is amazon's second prime day. are the deals worth it? >> sara, it is ten hours in amazon's biggest day of the

year. customers have been report something problems adding items to shopping carts. we tried to add a few items. after a couple tries we were successful. it helped to refresh the product page but complaints continue to come in. we've reached out to amazon, but no specifics in the technical difficulties. amazon's goal is to get more consumers to sign up for prime, even for the 30 day free trial. appliances, toys, baby gear, all members only. the challenge to turn them into paying members typically 70% retention rate, so fairly high. prime members are more valuable, spending about $1,200 annually, versus $500 a year according to some estimates. accord to some research partners, estimates 60 million people in the u.s. are prime members as of the end of june. amazon never disclosed its total prime member number. now, in terms of consumer dollars spent, prime day is

behind black friday, and km partners estimated last year' prime day estimated $375 million, to $400 million in sales. it could double. collecting sales data gives us a glimpse into what prime day means for amazon alone. amazon's prime day 2015 was the second largest totals than on black friday, four times higher than an average day in july of last year. hook logic data shows us prime day helps other retailers especially walmart, which has free shipping all this week for anyone and a 30 day free trial for its shipping pass membership if you want to try that one out, sara. >> free shipping for everyone. courtney, thank you. let's dig deeper with walmart swwaving shipping frees. john blackledge is an analyst with cowhan and jump.

gentlemen, good to see you both. i know you like the stock and say it could get into the 8 hundreds, jo hundred, what kind of expectations are already baked in for prime day? >> prime day, as courtney was saying, did about 400 million in revenues last year. we think it will be better this year. increased the number of sellers by 100%, and in a little ba lit that's interesting, you can get prime now, which is the one to two hour delivery service in 30 markets in the u.s. and 38 global markets. they're leveraging their fulfillment and logistics infrastructure to expand -- you know, the results for prime day. >> kneneil, as courtney said, t pay off for amazon presumably is adding new subscribers to its prime membership program.

what are you expecting in terms of those numbers which are always a bit murky. we know they're multiplying very quickly. how many subscribers did they add today? >> they added a couple a few hundred -- >> go ahead. >> so last year they added a few hundred thousand new prime members just because of prime day. we're expecting them to probably add around 300,000, to 400,000 for this prime day and the sales are better this year so we think that'll drive more people to sign up for prime. >> and just give us a refresher on how valuable those prime customers are, how much say that spend, et cetera. >> yeah, they're super valuable. they've been driving the growth of amazon the past couple years. we estimate 45 million new prime members based on a proprietary survey we've done over the past couple years. prime members buy about four

categories per month, versus nonprime members buying about two categories. and we think the growth in the prime members the last couple years is driving growth in amazon's penetration and apparel and consassuumables. by 2017, the number to consu consumeab consumeable, driving growth now and we think for the next five to ten years. >> what about, neil, this idea, that walmart is doing free shipping, kohl's, and best buy and target are also doing free shipping programs. is that aggressive enough to fight what amazon has created here? >> you know, it's probably a first step in the right direction, but really amazon has created some very, very powerful fly wheels with prime and that's very hard to change, not only do you get free two day shipping on almost any good that's on prime, but you also get free movies,

free music, and free e-books so they've really created a very powerful force behind prime and to provide a lot more services that become a lot more valuable to people. free shipping alone i don't think will cause people to jump from amazon to go to walmart or kohl's. maybe you really love walmart and you may take advantage of it but i don't think it's going to take significant share away from prime. and to jeff bezos, the prime customer is the pen ultimate customer that he stripes for. so this is a very important day for them. >> clearly you're both very bullish. neil, you're at 810 for price target, john, you're at 830. 90% on analysts say amazon is a buy, just for those that continue to say, i can't wrap my arms around the valuation, justify that price for us. >> yeah, i mean, for us, amazon'

creating about 15 times next year's ebitda. the multiple has been 12 to 25 times, so last year amazon's e-commerce business accelerated at massive scale. they're near the lower end of their ten-year multiple and they're crushing in e-commerce and with aws, which isn't the focus today. we think it's onward and upward for the stock. it was our number one pick heading into the year, and up almost 20% and we think it continues to turn up. >> we'll leave it there, gentlemen, thank you for joining us, john and neil on amazon. markets are off, and ubs director floor operations, art carb cashon will join us next to talk about what that means in a moment. my mom loves giving me advice. she even gives me advice...

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ubs director of floor operations, art cashon joins us wheredow sets a new high. >> you could sense the move of equity markets around the globe

is almost celebratory. you've got berneky meeting, so the feeling is stimulus is going to continue. a little bit of concern here, that rates -- yields are backing up a little bit. i think that's in front of the inflation data we're going to get at the end of the week, so a mild concern. but other than that, we're all right. we're off the highs mainly because the rally in crude has backed up a little bit. that was a pleasant surprise when opec came out and said they thought 2017 was going to be spectacul spectacular. >> are we in a position now where earning season better not disappoint? >> well, i think earning season better be adequate, but i'm concerned about the forward guidance because these people are going to have to estimate what the brexit impact will be, so anybody who is in a global

market, multi-nationals, we're going to look to them and see if they begin to talk things down and i think that'll set a tone for the market. >> it's a very different world than two weeks ago when you had major stock prices lower because of what was happening with that vote and now as you say a celebratory attitude and record heights, what has changed in that period of time? the things that we feared, do we no longer fear them? why that turnaround? >> no, the things that we feared are postponed for now, and i think the whole idea of the transfer coming up in the leadership in great britain, that slowed things down. we're going to wait and see the incoming prime minister is talking about delaying, invoking article 50 for a very long time. we think that's probably so you can get some elections done in germany and elsewhere in europe without having the pressure of

the brexit negotiations there. >> that would be a very long time that. would be two or three years. she can't delay that long, can she? >> i don't think it will be quite that long. you'll get some of the localized elections done and get some of the pressure off. so, i think there was that, i think we're running into some slight resistance here, the strong dollar backed off the dxy backed away from its 200 day moving average. so you've got a couple things going here, but i would advise, keep your eye on crude. i think it's going to come back into the dominant position again. its weakness yesterday didn't really hold, but the rally today on the opec deal, they got us started and i think crude is going to call the tune. >> cashin good to see you, art cashin. coming up, deutsche bank, david folkerts-landau, urging

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comcast business. built for business. i'm sharon epperson and here is your cnn update. a tribunal ruling china has no basis for the vast claims in the south china sea, and has aggravated the regional dispute by reconstructing expensive islands. china rejected the arbitration findings, and has no tribunal to force. and after two training collided head on in italy. the trains were on a single track, and rescue workers pulling victims from the rubble. a suicide car bombing ripped through an outdoor market in baghdad killing a dozen people and injuring 32 more. an excessive-laden pickup truck

exploded during the morning rush. no one claimed responsibility. and the fbi is closing the books on one of the biggest crime mysteries of modern time n. november of 1971, dan cooper sky jacked a northwest orient plane, demanded $200,000 and a par su parachute and leapt out of the plane. back to you, sara. >> sharon epperson, thank you very much. keeping an eye on your market and the record highs for the s&p, getting a lot of fed speak today and this week. also the imf just released a report on the u.s. economy. let's get a recap of all of it with steve liesman steve. growth is going to be somewhat above trend over the next couple years but it's stressing downside risks and worrisome challenges ahead. you can see here the potential about 1.9%, we'll remain above

that in '16, '17, and '18. the fund worries short-term about the fallout from brexit, and brexit volatility. younger term, the u.s. economy could suffer from aging population, aging infrastructure, and the aging middle class. if left unchecked, these forces will continue to drag down potential and actual growth. diminished gains and living standards and worsen poverty. urging the u.s. leaders to take on these challenges and addressing high public debt levels and aging infrastructure, also they supported the go-slow approach for monetary policy. several fed officials spoke in the recent days as sara indicated, including st. louis president jim bullard. he says, do you know what, i'm sticking to the 0.63% fed rounds

rate idea, good through 2018, and messer saying gradual hikes are needed over time. that's not all, folks. ten more fed speeches this week. so far though nothing has been said that changes the idea. feds probably on hold through the summer, simon. >> amen to that for many in the market. thank you, steve. in the meantime, banks in europe are rallying, even the head of the euro group rejects monto money to be pulled into the weaker ones and said quote there will always be and have been bankers that need more public money to recapitalize their banks, and was recalled by deutsche bank's economist, and david fols-landau joins us this morning. >> what would surprise many in

the market, 350 billion euros could fix it. >> it's not so much the amount of money and 150 in terms of the over capitalization needs maybe on the low side, but it's more the fact this problem has to be recognized, and dealt with now. we had a serious crisis in the middle of february, the banking system coming on distress, and it kind of went away. then we had brexit, and now we're here again. and there's whole series of political events coming up. there's the italian referendum, french and germany elections. every one of those could go the wrong way and participate in the crisis. the next question you ask yourself, this has to be dealt with. you can't sit out there and hope it goes okay. >> importantly lined between what you'd like them to do are a set of rules that could rattle the euro zone, and potentially with italy, you're not allowed

to subdeciied your market banks those are the rules. i think to the point that you're making. >> that's the single-most important issue here is them position of rul, is the imposition of the rules, and most us, certainly me, very much in favor of the no bail-out rules and bond holders, but it has to be done at a time when that doesn't induce additional stress. in italy, for instance, and we talk about $360 billion of performing bonds if you take out the somewhat okay, and you have 200 billion. knock off the reserve that is taking place and you end up with 80 billion of seriously impaired loans, and clat seller difficult to value, but if you kind of take a conservative measure, half of that is sitting on

collateral, so you still have 40 billion left that you have to find capital for to recapitalize. >> and you've been extremely critical. you sit at the heart of deutsche bank, and you're extremely critical of the whole project. you said four weeks ago, the bank has correct, and the mass bond buying. it is in itself in your words threatening the entire european project. >> i tell you this, when you look at the continent that now for a number of years, 20% youth unemployment, 10% unemploy mebt a ment stress all around, and you ask yourself something is wrong here, so the current policies just don't make it. i don't fault them for that, it's a thing they do. but, it hasn't solved the problems in the last six years, so why would you want to persist

with it. plus, in the process of doing that, you've destroyed the ability of the banking system to -- to act as a channel for credit into the sme sector. >> and the relative escape people watching this, that you work for deutsche bank, the imf said recently, it was probably the most important net contributor to systemic risk within the sector. i don't ask you about the business, but being in that position, it must have been formed the view that you bring to the table? >> i can say point-blank, it didn't. i could say deutsche bank, on the seriously independence group, and is our capital. if i talk about that country's book, you're not going to want to lirsten to me. i can tell you the truth. >> it's knob tnonetheless the f

there was a bank rate, your own business would be better? >> the former i don't know. the second one very definitely. there's no question negative interest rates are destroying the banking system because what happens is, we cannot pass it on to depositors in the current environment. you margins shrink or you pass it on to your borroweres. somehow, i would say to myself, these are the institutions as a channel for monetary policy. they're the ones that need to pick up the lending to small and medium-size enterprises and that's just not happening. the ecb is essentially now the only game in town that advised corporate debt, so the corporate debt market is suffering, as well. so this is a very -- it's a

problem. the important thing is, is it's not 2008. it's not going to blow up, but that's also a problem because that means we kind of push it out further and my thought is in the early 90s in the japan -- i worked for the imf in japan, saying a little bit of growth we can manage this. the problem s europe isn't growing, and europe needs to be growing at 2%, 3%, 4%, to deal with these problems and there's just no growth insight. >> we hear from some money managers who for a long time felt an unraveling of the euro system was not investable because it was too much of a tale idea, because the brexit put it in the universe of invest ab able ideas . is that true? >> let's go back to italy. 130%, debt to gpd ratio, a deficit of 3%, growth of 1% that

means the debt to gpd ratio will increase year, after year, after year. the reason why the italians spread over bonds, is staying where it is and not going up to 500, 600, is because the ecb stands ready to pick up the individual risk. so now you have in town here, bond managers, very gladly pick up that additional yield. the problem is this cannot go on forever. you cannot have a central bank holding all of that risk, and holding the putout knowing it's going to come to an end, only if europe grows at 3%. but there's no reason to believe that's going to happen over the next five years so in terms of being uninvestable, short-term trading, definitely. but in terms of you want to be a long-term bond holder, retired debt knowing this isn't going to

be sustainable without the ecb some how has to back off. >> good to see you, sir. thank you. >> david folkerts-landau, chief economist at deutsche bank. a lot more still ahead, stay with us.

even as broad markets surgery, financials are lagging far behind. find out at trading nation.cnbc.com, or "squawk on the street" coming right up.

welcome back to "squawk on the street." record territory for the dow as the s&p 500 makes a new record high for the second day in a row. let's check on the worst and best performers, dom taking a look. >> sarah markets backed off those levels. the best performing sectors you

just saw is energy, and jockeying with temperatures fma now. and every single member of the s&p 500 energy sector is trading high or the day so far led by southwestern energy, murphy oil, and the worst is exxon mobile gaining around a half percent so far. energy is the best performing sector, year to date around 15% up or so around 2016, sarah. back to you. now let's send it over to the cme group, rick santelli. >> good morning to my tuesday guests, andy renner. thanks for taking the time, abdom randy. >> thank you, i appreciate it. >> i see we're close to two-week high yields. with a 150 since the 29th, so a

week ago wednesday, the relationship between the fixed income markets especially sovereigns, and equity markets morphed. what are your observations,and me? >> it's crazy times. on friday, you set global records and ten year treasures, and 30 years these are the lowest closes ever and the day after -- yesterday you said a record in s&ps. it's like bonds are no longer a good hedge for stocks if they're both going -- they're reading different things. you know, the bonds are looking at currencies, and stocks are basically underinvested, people shorted and they're covering. it's very unusual times. >> and in that unusual environment, i wouldn't be shocked that as surprising as it is to see rates move down with the pull of many trillions of dollars of negative rates throughout the globe. the other side of the mountain is also true, we can wake up on any given morning and see rates

at a place much higher or much lower without a whole lot of fundamental anchor, in isn't that possible, andy? had. >> absolutely. look at this morning. basically, you have a headline that ben ber knanake is meetingh the bank of japan, and there's more talk of stimulus, which is very probably given the election the other day. so now you had the yen basically collapse, and from 104.5 when i walked in, so now you're seeing a very large selloff in ten years, 30 years, and out of the european space, and so on, and so forth. >> i know ben bernake is associated with the citadel, and we've had portions of various blogs he's written and i agree, as important as this trip may or may not be, giving renewed

political energy, could have a lot to do with the way the nike and t dollar yen have moved. finish up by saying all of this activity, negative rates, higher equity prices, in some preverse w way, it may be successful. >> you're going to see that. you've got to play this out. i don't think going to see a good correlation for the next couple weeks. once you get past that and if there is some kind of normalcy that hits back into the market, i think equities, and corporate bond spreads are a little bit out over their skis right now and given the amount of money we've seen just massive amount of inflows into corporate bonds recently, i wouldn't be surprised if there's slow down in there, as well. >> andy, thank you, and, yes, i think you're referring to what we've all read, some record inflows in the corporate bond

etf's. simon, back to you. up next on the program, we're revealing this country's top business. scotty is counting down to number one. >> hi, simon, we're in america's top state for business, we'll tell what you that is later on today, unless you've figured it out. we'll continue with the count down of the number four state when we come back.

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lease the gle350 for $579 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. the dow just skimming below those record highs an hour and 22 minutes into trade. let's set it over to bertha, who's watching events. >> finally positive for the year. it hasn't really been with the help of the large cap. the nasdaq 100 still fractionally negative. still both more one 4% of the all-time highs aier. apple is a big reason why. apple any any of year to date. still a lot of concern about its

transition here, as it moves on to some in phones and whether it might have been some new oomph. the real stars here, sort of quietly andly, as we've had this big comeback have been the small caps and mid caps. the russell 2000, i want to focus on the small-cap 600. it's at a 52-week high, but take a look at the year to date performance there. small caps are up, that particular index up about 10%. folks starting to look back at the companies with greater exposure here in the u.s., and take a look at the mid caps as well, also on fire. they are the leadership. these are the stocks quietly

moving us higher. back to you. >> berth aa coombs, thank you very much. meanwhile, we're counting down to the top ten states good for business. where are we, scott? number four? competitiveness is a balancing act. it's why we measure ten categories of competitiveness, keep that in mind as we continue with our countdown and state number four. >> minnesota, the north star state comes in four. minnesota was america's top state for business last year. minnesota's best categories are quality of life and education, both the second-best in the name. its worst category, cost of doing business, where it comes

in 35th, pinches a corporate tax of.8%, and a top state and local sales tax of 7.875%. governor mark dayton says his state is a high tack/high value state, but job growth and the overall economy have slowed the last year a bit. still unemployment is well below the senate average. minnesota's largest employer is the mayo clinic, the largest industry is professional and business services. this is minnesota's second appearance in our top five. the ben finish number one last year. >> so in the ten years we've been doing this, we've never had a state back to back. so where am i? here is one more hint, making ends meet. making ends meet. think about that, we want to hear more of your guesses. at the hashtag top states, see

how we come up with it every year at cnbc.com. >> we're pondering that, scott. we'll see you later, as we continue to guess the top state. we'll sent it over to jon fortt with our eye on the stock market. what else is coming up on "squawk alley"? >> let's make the end of "squawk on the street" meet "squawk alley." the highs backed off a bit. we'll see where things go from here. also bernie sanders will appear with hillary clinton for the first time. we'll see how strong he endorsement really is. and it is prime day. big day for amazon, but what does it mean for the rest of the e.-commerce ecosystem. all that and more on "squawk alley." sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other

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the nasdaq is in the black. it had been black after leading. >> nonetheless, a powerful follow-through. with that, let's check it into "squawk alley" and the team. >> thank you very much, simon and sara. >> bernie sanders is expected to endorse hillary clinton. remember he -- by double digits, we're going to take their opening coaches live when they take the stage. we're told they're running about 10, 15 minutes late. in the meantime we're at post 9 in the new york stock exchange, where the dow says an intraday high. s&p does it for the second day in a row. bob pisani has been watching the act. >> the f