not only is spitzer long gone so are some of the jobs and with alcoa talking about more cuts governoromo agreed to sweeten the deal. >> good jobs first says it's a prime example of throwing good money after bad. >> they were devoted for companies that were there a long time ago and they just w to use a lot of cheap electricity. the alcoa deal helps put new york at the top of good job, first list of top subsidies and followed by washington state that has given massive tax breaks to boeing. in all, states are giving away $70 billion a year. >> that amount of money could have plugged significant state deficits during the recession. it could be keeping classroom sizes lower and it can be facing infrastructure that benefits all employers. but the founder of tesla whose company received a $1.3 billion deal says the incentives t a bad rap. elon musk says it creates thousand of jobs and the tax breaks help the process. >> what the incentives do is they are a catalyst and improve the rate at which a certain thing happens. companies like tesla have growing bargaining power. that's because the n

alcoa. diversified manufacturers. they are also getting titanium. energy transfer.yielding pipe company. fmc technology is varied technologies. lamar is advertising. oil, aluminum. diversified metals. and then travel and leisure. i think that is absolutely perfect. ♪ >>> and now to andrew in florida. andrew? >> caller: hey, jim. thanks for taking the call. recently i started helping my mother with her portfolio. and i wanted your opinion on the top five holdings i've added. second generation cramerican is going to list them off, my son sean. >> go sean. >> caller: the five stocks are, starbucks, underarm our, halliburton, white wave, and apple. >> wow, wow. i think sean's got horse sense. i'm just putting it out there, okay? all right. underarmour is apparel, and we know they are doing well. it trades on earnings. and try to take a longer term perspective than just this week. starbucks, unbelievable numbers this week out in the journal. doing so well i have my starbucks card. i hope you do too. apple. white wave, now free to trade. and halliburton, comergent with ba

i want alcoa -- smart alcoa is in the f-150. what we need is for it to be titanium.e dumps. >> i want to get to steve liesman on hq out of the imf and the fed. >> thajs. a thanks. the imf advising the united states to await the first half of 2016 to hike rates. echoing the bearish or dovish commentary we've gotten from some fed officials. saying the united states should wait until wages begin to rise until hiking rates. it's slashing its forecast for u.s. growth this year from 3.1% from the april assessment down to 2.5%. saying it doesn't see the fed hitting its 2% inflation target until mid 2017. right now, best we can assess the conventional wisdom is for september rate hike. the first one in what will be more than nine years. now the imf suggesting the fed should wait until the first half of 2016 before it hiked rates. >> thank you very much, mr. liesman. >> imf urges mcdonald's to sell breakfast all day long. >> that's how denny's -- they would tell you that's their secret. the grand slam which i take it with lipitor. it's dynamite. >> a good combo. is that paten

host: before you went to alcoa what was your wage like? caller: i can't tell you.y memory gives me a problem nowadays. i would have to look in my notes from the past. i do not remember. host: charles is next. your wages over the years, charles? from north florida. where did you start, and where are you now? caller: i started in the food service industry when i was 13 years old, in the baltimore seafood market, cleaning fish and steaming up crabs at 13 years old, making $.75 an hour, which was the minimum wage at the time. i'm still in the food service industry. i'm actually working as a chef. in florida, in the food service industry as a whole, just trying to make a decent living is rather hard. $15 to $20 an hour tends to be the average. some employers want to pay a little less, even for quality skilled workers. i find it incredible that they are pushing for this $15 minimum wage aspect, because i'm wondering how is that going to affect people that are skilled labor who have gone to call in her school and have years of qualification? does that mean the small busin

alcoa, they made an announcement.close the deal to be able to come less aluminum more other metals. but look, i'm not happy, not sad. >> what does that make you? >> there, a clown. >> let's get back to rick for the numbers. >> 49.4 is our june read on chicago purchasing managing survey. it's supposed to have correlation to the national number and then the domestic economy. but i will tell you this. that's under 50. you had february march, may, and now june under 50 for 2015 thus far. 49 .4 is the best number since it was above 50 which was in april. interest rates have climbed a little bit on that number. i'm not sure exactly why. we'll continue to monitor and update. jim, david, back to you. >> thank you very much. a test of new service. we'll be right back. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means tho

hard to believe but that's coming up next week on july 8th when alcoa reports earnings. >> so if you to lean in to and two to lean away from over the next three to six months, what would they be? >> i'd probably continue to overweight consumer discretionary and health care. both of those are right now in a trend which is benefiting from demographics in terms of health care developments in m&a in terms of health care. in terms of consumer discretionary, the consumer is really beginning to spend some money again. >> ones to lean away from? >> i would say utilities as interest rates are poised to normalize. i would also be underweight energy, as well as telecommunications here. telecommunications just too narrow a sector. there's just a couple of players really to own there, we would say. but in energy we can't help but think there is a lot of oil floating around the world at these prices even at $58. i'm getting a little nervous. >> john thank you very much. we appreciate you being with us today. let me hand it over to mandy who will kick off the second hour of "power." >>> thank you,

alcoa was given $5.6 billion in electricity discounts over 30 years back in twfn in exchange for a promiseotect 900 jobs but when the company made noises about cost-cutting and layoffs the state sweetened the pot with more electricity credits. elon musk more than $1.25 billion last year to build a battery plant in nevada. it apparently includes a unique feature where tesla gets to capture not only the own tax that it would have paid but tax revenue from suppliers that set up shop near the plant. our top states for business rankings give points on the states base on the incentives they offer and here's the top state. we're talking about the top states for business not for taxpayers. that's why we do it. here are the most generous states. new york and washington louisiana. michigan and kentucky are the top five states for subsidies. the watchdog group good jobs first which compiles all these data say these states do not deserve credit for us or anybody else for giving your money away. >> the system is rigged now so there's lots of money laying around on tables and companies feel derelict if

like uber for example, but the "associated press," meantime was talking about traditional names like alcoa do you make of this? >> this is more of the same we've seen for so many years. years ago, we used to call it ebitda. companies would say look at our ebitda. then they say, look at our non nongaap results then adjusted results. it's adjusted after the bad stuff. the stuff that won't make us look so good. sometimes there's a reason to look at the adjusted numbers. but many times, it's just the way to get people to look away from the cost like stock-based compensation which people's eyes glaze over when you mention that. but it's actually very important. so, you know we've seen this especially in a bull market, costs don't matter. in a bear market you watch out. those costs are going to matter. >> so dr. jay, what is an investor to do knowing this i would hope and imagine that going back to the financials digging through them but still left with a choice to make. do i believe a company that tells me what's more important is its long-term focus and to ignore these one-off items or ignore

so i think we have to wait a couple of weeks ask and alcoa starts on july 8th.ave to wait until what you're hearing. retail sales here in the states. housing is actually doing very well. so i think there are pockets to be okay about. but i think, unfortunately, macro is really kind of taken hold in the near term. >> carol? >> i think this is much more carl icahn. i think, you know if you look to the beginning of the day, greece didn't seem like it was having that much of an impact. and as soon as carl started tweeting and appearing on cnbc. and you saw those individual stocks, and then he talked about the market being overvalued and high-yield bonds being overvalued. and seems to me there was just a steady acceleration of that decline after those comments. >> guy, is he right about the market generally speaking to take the comments about overvaluation? >> let me say, first of all, i am not worthy to be in this quartet, intelligence wise or beauty wise. i'm a fortunate man right now. that said you know carl's been singing this tune now for quite some time. he's g

. >> as we do awake with alcoa next week, he climbed the 4.3%. maria: on s&p 500 earnings. that is for the second quarter. >> energy is expected to climb over 63%. maria: down 60%. >> right, year-over-year. look back at the first-quarter numbers early on the expectations were in decline of 3.7%. we ended up 3.3% with the improvement from the reporting period to the end of the quarter. that being said from when the numbers start coming in and july and august, we may see 2%, 2.5%. maria: when all is said and done we beat our expectations for the second quarter. >> nike was better than expected. maria: but that's all about guidance. a lot of people expecting cap to pick up telecom companies and others as well. even energy to invest and really get the second half going. are you seeing now? >> they will invest $3 billion in mexico. sprint has been talking about how it's going to start improving their trying not to spend too much. maria: the guidance is critical. what to expect when they start getting the numbers in the next couple weeks? >> was in the worst of the year-over-year