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. Alltime 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. Im 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, youre 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. Ill take it. You were talking about dutch guilders. 499 year history in the bond market. I dont know how long the total craze is. Maybe General Mills is gees, lets do some harvesting. I just keep coming back to this basic idea that its not even about earnings or anything else. Its just about finding a place to get some yield, buy dividendpaying stocks, because the hope is its going to do better than your negotiation hihi negativeyielding bonds or if you want to go get paid. 164, or italy at 1. 186, which is just bizarre. Ill give you one and ill 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. Im telling you those bonds, theyre wrong, because the economic activity, according to alkoa is really starting to move in western europe. So, yes okay. Those bonds are wrong. Its time to buy there are certainly things that are wrong. In europe . No, im saying those bonds are wrong. What happens if those Interest Rates start going up, which they will. Thats 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. Theyre artificial. With you seeing actual growth in the economy. Clause, last night, said china is growing. He had more anneecdotal. What im saying is the bond markets 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 well 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 hes still operating in a lowpricing environment. Aluminum was up 22 , bulk site, of which hes 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 theyre taking share, thats 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. Thats the dreamteam 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 theyre 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 thats going to be more than 2 . I think we polimight have a decent me and going here. Lets be really clear. If you are bank of america, you know theyre taking these jobs jamie demond jamie diamond is talking about. Jpmorgan does not have the option theyve got a lot of branches with a lot of people in them. They still love those branches. I think theres enough enough layoffs i see you starbucks, and i raise you cgate. Heartless one. Yes. Thats 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 pcs being not as bad even though we got some broader numbers, but theres been enough shutdowns at various plants theres an average selling price increase in disk drives. That has happened only a few times in history. Remember when conor and alschugard whats happened is. Mergers. Okay. All right. M and a. Lets talk a little bit about amazon. Of course this morning, one day after its shared hit alltime 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 years 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 checkout process. It says it is working to resolve that. Perhaps an embarrassment of riches for them. Youre 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 . Wouldnt that show myou that retail is still you know, lets 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. Its true. Listen, highquality 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 dont 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 dont know. Youre doing that youre having a reset. Im just wondering when everybodys uniformly positive on something you have to wonder whether or not maybe its kind of run its course for a little bit, thats all. The time to buy was when you did your sdoudocumentary, revea the 13th amendment may number play there, in terms of the workforce. Thats 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 dont realize they are taking share in other categories. When was the last time you bought toilet paper at the store . I havent purchased many things. We have a very traditional relationship seemingly in my household. I dont go to the store very often. There you go. Listen to him. Its sad really isnt it . Do you even play pokeman go . Im a throw back. I dont know how to cook. Thats embarrassing. You stick it in the microwave and you press one, gees. Followup with the kids though. Im not like we stopped buying stuff that we normally would go to the supermarket. Now, theres 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. Thats proctor and gamble. Do you think its going to be delayed because of this amazon crisis . Crisis . I went from being a simulation to now being a button thats pressed. You are. When we come back, a lot more on the pokemon craze, this fullfledged phenomenon, has their stocks soaring, and calling for the 150 bail out of the banks, well talk to him, and premarket near alltime highs. Well 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, latenight show, and people are talking about what it might do to peoples data plans. I try to figure out pen to paper, verizon, tmobile. They dont care whether its right or not. Nintendo, how much do they make . The fact is when youre on page 1 of the new york times, and the s p for the alltime high this is big. Im glad its not happening during school. Would people you know, i mean, this is great its not happening during the school year because kids have just been this is it. Apparently, if you go to central park, theres 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 casepoint 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. Its 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 theres going to be a breakout moment for a. R. Who knew that breakout moment was three weeks later . Its here. Augmented reality is suddenly like artificial intelligence. Its what people talk about. Its 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 thats what jon fortt was told yesterday. Take a listen. I think its fantastic to see these augmented reality applications getting built. The best thing that can happen when youre creating a new category, these killer apps, whether it be gaming or the industrial scenario, to be invested in it. Lets say whether you can say everything right the first time, had you a chance to visualize and manage the human interface down by 10 , thats 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. Its 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 its 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 thats part of the problem, too, with our economy. Where do these people go . They dont even know how to use their cell phones. Just stop talking. Enough. Youre making me just down. Marose. Dolrus. The baby boomers have been left behind by the cell phone. The lets own okay . Lets own this. This is a generational app. Nidela happens to have a substantial Gaming Business that he doesnt talk about enough. Jim, why are they moving to boston, for heavens sake . Where do students live . In fairfield, connecticut . Theres Good University but you know what i mean. I do. A lot of them wanted to move to new york. Theyre inheriting the world a little bit fast, these younger people. I dont know. Ten years ago if i asked you if you were going to be on twitter, i dont think you would say, yeah, im going to have a million followers on twitter. And i was asked, jim, why arent you using boomerang. Do you use boomerang . You dont even know what that is . Were going to get you on dub smash, thriller. I know twillio. Twillio doubling. When we come back, well get cramers mad dash, and well 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 longterm 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. Weve got opening bell about five and a half minutes from now. Weve got a mad dash. Lets 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. Lets just be a little bit on the froth alert. We know when it starts going crazy we dont want people to start getting hurt. It aint 1999. No, it is not, david. One benefit to being old, remembering some of those days. I saw the pictures you look the same. Youre like a im 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. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. [bassist] two late nights in blew an amp. But good nights. Sure,musics why we do this,but its still our business. We spend days booking gigs, then weve gotta put in the miles to get there. But its not without its perks. Like seeing our album sales go through the roof enough to finally start paying megs little brother i mean,our new tour managerwith real,actual money. We run on quickbooks. Thats how we own it. Youre 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. Were 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 dont seem to be as concerned about the higher taxes for the other candidates. Really rather amazing. Theyre calm. I would have thought the opposite. Right now, theres, like, hey, better than this guy. And earnings season unofficially unway as weve got alcoa under our belt. Lets 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, its staples kicking off the back to school season, which happens a lot earlier than people think. Thats going to cringe pokemon go. Maybe you get a degree. In pokemon go. Ive 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 theyre good. One of the great unsung industrials. And on the alltime high list, seemingly fantastic. I am concerned that we are you know, that a lot of things going right. But, i do still think its a hated bowl. I think its a hated bowl. Oil goes higher. Weve got retailers, weve got the airlines, the hated bull. Spot copper. Ive 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 theres chase . Im saying the individuals last flash monday lets 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. Thats 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 theyre moving it to 6. 5 to 6. 75 and thats got the whole group on fire. In other words just that a little bit of inflection. Was touenough . Because its been beaten down. Beaten down. Down 27. Even last week . Even last week, they were getting hurt. Swept touthwest is the only doing well. Theyve 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 well be sitting here buying stocks with no commissions. Is that whats 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 doesnt seem to be paying concern to the election, perhaps the machines. Thats 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 dont have to pay commissions, and anything on the internet could be free. This is an anathma to a lot of businesses. Im looking at this twotrack generational thing. Youre really seeing its like a midlife crisis. I cant take how good they are. After it was still oh,n, i said still dont know how to do it. Youre talking about a bunch of time Walking Around like this, aimless in areas not productive at all. Its the new york times. At least theyre outside getting exercise. I dont know. We have had i have had incredible executives from different strauss zelmer. They multitask. Theyre also playing candy crush and theyre looking at you and looking for pokemons. Theyve got some life. And you want their undivided attention . I want their life, gosh. Amazon alltime high nasdaq green for the year for the first time this year. Vicks is at a 2016 low. Thats worrisome, but two weeks right after brexit, the vicks was going down. Jam jamie dimon raises higher wages and Howard Schultzs stocks went down yesterday. So what does that mean . I dont know. Im putting it out there. Youre 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 hes 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. Thats the secret plan. Master plan part two. Yes, secret. I think to him, frankly, the sec is on cbs. I dont think he cares. Sec on cbs. As in the southeastern conference. I think he says hes 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, youre going to be watching him, georgia, and florida. Louisiana state takes it all. He does not care. Wont matter. I want to know what the master secret plan part two is. And im excited to hear about that. Driverless cars particularly when you dont keep your secret plan secret does uber make any money . Uber. Profit wise, no. Does tesla make any money . Its a secret. If you own the stock youre 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 theyre talking for the potential of very large synergies. Very early days. And i know again youve 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 valueadded. I think the splitup is going to continue. I wish the stories were a little less definitive, because i dont think this necessarily is going to happen. It may take too long. They do, and its 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 thats 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, its filled with company its theyre 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 wouldnt use the, tm machi machine. Monte is the oldest bank in the world. The contrast between when youre there. Dolche, and what is going on across the country dow is less than 20 points from an alltime high but its above an alltime closing high. Bob pasani is on the phone. Nobody has more fun than the italians. Thats why we like to go to italy. You have seen whats going on . I know everybody is trading off of our momentum. Theres 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. Theyve been up for a couple days in a row. Unicredit, up 11 . Theyre 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 thats 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 snps been up 720 according to my friend dan wiener, but if you add in the dividends, the total return on the s p 500, its 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 etfs. 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. Thats Mega Millions. Its a 3 Mega Millions ticket. Monte pashi, not yet. Were 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 hes more uptodate . And you have to go through his deck, which is always incredibly expensive. Is anybody reading my deck . Your deck is great. Its a full house. There it is. Look at this things, north american truck, terrible, thats the only one that was bad. Look at this china. 25. 4 yearoveryear truck gains. Automotive, europe, 4. 1 appears, you heaappears, these bond yields are insane. Insane. And i think theyre 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, wasnt 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. Dont joke about stuff like that. No, youre right. All im saying is this craze is a craze. Can we at least remember zinga . Words with friends . Dorm that . I remember all the crazes. Its not solo. Youre meeting new people, youre 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 dont want that. So dow record high, s p 2151. Thats 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 alltime 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. Theres 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. Weve got watch some of these other companies in determines of earnings, like in perva and cognizant. Lets 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, lets 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 lets look at a one month boones from minus 20 to minus ten, that says everything, lets 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. Thats whats behind brexit, not actually brexit. Lets look at gilds, the epicenter from where it all started, from 50 to 79 . Lets look at the year to date of the jgbs. Theyve sold off. Theyre only 27 basis points and finally, the pound versus the dollar. Where everything is upside down, why dont we look at the rabid ho hole. Its stabilized. The risk parameter, thats as good as anyplace to focus on. Carl, back to you. Thank you very much, Rick Santelli. Well get stock trading with jim, s p sets another one. Squawk on the street will be right back. Time for cramer in stock trading. Weve 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. Im 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. Theres still a lot of areas of the market that are down, so im not as concerned about that. Look look, if jpmorgan comes out, and and channels greenspan the way Rick Santelli did, the stock isnt going anywhere. Were 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. Theres a lot of things that have just kind of sat there like in ge. Its really breaking out, and airlines. I dont know. Do you want to get come back with sage therapeutic. Dont want to play pokemon go with these people. Youre the perfect age to do it. This is jen i dont know, a, coming back. Mad money tonight, 6 00 p. M. When we come back, david kostin of goldman sachs. Dont 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. Like in rochester, with worldclass botox. And in buffalo, where medicine meets the future. Let us help grow your companys tomorrow today at business. Ny. Gov herthey work hard. Ade, wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. 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. Youre watching squawk on the street, im carl quintanilla, sara eisen is back from vacation, and obviously a lot of things going on, politically, its 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 weve seen for this market and how long its been since the last record high. Back in may 2016 we got through the worries about chinas 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. Whats interesting is that very strong payroll report on friday and a lot of concern ease body whe about where were 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. Well hear about that in the next fiveminutes. 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 weve 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 . Lets bring in chief executive strategist, at goldman sachs. David, its good to have you back. Youve told us were in for a spill. Do you stand by it . Have we already seen it . When is it coming . Lets 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, were looking around 2,200, trend in equity prices. From a tactical point of view, theres 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, were 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 blackout period in terms of corporate purchases or not happening between now and the fifth of august. Look at a variety of nearterm developments would be more cautious tactically. In the next few weeks . The concern on Third Quarter will dissipate and youll have a general move higher around 2,100 level. What do you make of these technicians after a pause of more than a year, its higher a year later, nine times out of ten . Certainly theres 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. Theyve 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. Thats 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 years Second Quarter. For those Companies Generating more revenues overseas, thats 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 , thats a characteristic likely to survive in this market. Youre 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. Theyve been yanking their money out of mutual funds. How much does that bear positioning have to do with the fact were 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 theres risk it could move higher. Bond yield at 4. 4 , which suggests theres, 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 youve 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 thats 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 its what are we living through now . Whats the big picture as to why the market might only rise 2 in two years . The big picture and ive 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 whats 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 . Its growing at 2 or sub2 . Sales and earnings is what drives the market. Relative from the allocation prospective, theres 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 theyve reached on campbells and all of those. Its 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 president s, 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 alltime high today, as its prime day kicks off. Well 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 its 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, were nothing. Pg es been a great partner. Theyre the energy experts, were the milk guys. Pg e worked with clover on a number of Energy Efficiency projects to save energy every month. If youre part of the fabric of the community, youve got to ensure that you do things right, environment included. Learn how you can save at pge. Com save together, were building a better california. It is amazons second prime day. Are the deals worth it . Sara, it is ten hours in amazons 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. Weve reached out to amazon, but no specifics in the technical difficulties. Amazons 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. Amazons 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. Lets 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 thats 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. Theyre 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 theyre 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. Were 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 thatll 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, theyre super valuable. Theyve been driving the growth of amazon the past couple years. We estimate 45 million new prime members based on a proprietary survey weve 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 amazons 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, kohls, and best buy and target are also doing Free Shipping programs. Is that aggressive enough to fight what amazon has created here . You know, its probably a first step in the right direction, but really amazon has created some very, very powerful fly wheels with prime and thats very hard to change, not only do you get free two day shipping on almost any good thats on prime, but you also get free movies, free music, and free ebooks so theyve 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 dont think will cause people to jump from amazon to go to walmart or kohls. Maybe you really love walmart and you may take advantage of it but i dont think its 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 youre both very bullish. Neil, youre at 810 for price target, john, youre at 830. 90 on analysts say amazon is a buy, just for those that continue to say, i cant wrap my arms around the valuation, justify that price for us. Yeah, i mean, for us, amazon creating about 15 times next years ebitda. The multiple has been 12 to 25 times, so last year amazons ecommerce business accelerated at massive scale. Theyre near the lower end of their tenyear multiple and theyre crushing in ecommerce and with aws, which isnt the focus today. We think its 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. Well 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. About my toothpaste and mouthwash. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again 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. Youve 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 thats in front of the inflation data were going to get at the end of the week, so a mild concern. But other than that, were all right. Were 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 im 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, multinationals, were going to look to them and see if they begin to talk things down and i think thatll set a tone for the market. Its 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. Were going to wait and see the incoming Prime Minister is talking about delaying, invoking article 50 for a very long time. We think thats 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 cant delay that long, can she . I dont think it will be quite that long. Youll get some of the localized elections done and get some of the pressure off. So, i think there was that, i think were running into some slight resistance here, the strong dollar backed off the dxy backed away from its 200 day moving average. So youve got a couple things going here, but i would advise, keep your eye on crude. I think its going to come back into the dominant position again. Its weakness yesterday didnt 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 folkertslandau, urging the european union, saying europes situation is serious. Well hear from him after this break. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Thank you. Now businesses can get more out of their data. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Im 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 excessiveladen 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. Lets 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 its stressing Downside Risks and worrisome challenges ahead. You can see here the potential about 1. 9 , well remain above that in 16, 17, and 18. The fund worries shortterm 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 goslow 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, im sticking to the 0. 63 fed rounds rate idea, good through 2018, and messer saying gradual hikes are needed over time. Thats 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 Banks economist, and david folslandau joins us this morning. What would surprise many in the market, 350 billion euros could fix it. Its not so much the amount of money and 150 in terms of the over capitalization needs maybe on the low side, but its 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 were here again. And theres whole series of political events coming up. Theres 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 cant sit out there and hope it goes okay. Importantly lined between what youd like them to do are a set of rules that could rattle the euro zone, and potentially with italy, youre not allowed to subdeciied your market banks those are the rules. I think to the point that youre making. Thats the singlemost 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 bailout rules and bond holders, but it has to be done at a time when that doesnt 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 youve been extremely critical. You sit at the heart of Deutsche Bank, and youre 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 dont make it. I dont fault them for that, its a thing they do. But, it hasnt solved the problems in the last six years, so why would you want to persist with it. Plus, in the process of doing that, youve 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 dont 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 pointblank, it didnt. I could say Deutsche Bank, on the seriously independence group, and is our capital. If i talk about that countrys book, youre not going to want to lirsten to me. I can tell you the truth. Its knob tnonetheless the f there was a bank rate, your own business would be better . The former i dont know. The second one very definitely. Theres 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. Theyre the ones that need to pick up the lending to small and Mediumsize Enterprises and thats 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 its a problem. The important thing is, is its not 2008. Its not going to blow up, but thats 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 isnt growing, and europe needs to be growing at 2 , 3 , 4 , to deal with these problems and theres 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 . Lets 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 its going to come to an end, only if europe grows at 3 . But theres no reason to believe thats going to happen over the next five years so in terms of being uninvestable, shortterm trading, definitely. But in terms of you want to be a longterm bond holder, retired debt knowing this isnt going to be sustainable without the ecb some how has to back off. Good to see you, sir. Thank you. David folkertslandau, 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. Lets 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 lets 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 were close to twoweek 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 . Its 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. Its like bonds are no longer a good hedge for stocks if theyre both going theyre reading different things. You know, the bonds are looking at currencies, and stocks are basically underinvested, people shorted and theyre covering. Its very unusual times. And in that unusual environment, i wouldnt 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 isnt 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 theres 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 youre 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 weve had portions of various blogs hes 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. Youre going to see that. Youve got to play this out. I dont 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 weve seen just massive amount of inflows into Corporate Bonds recently, i wouldnt be surprised if theres slow down in there, as well. Andy, thank you, and, yes, i think youre referring to what weve all read, some record inflows in the Corporate Bond etfs. Simon, back to you. Up next on the program, were revealing this countrys top business. Scotty is counting down to number one. Hi, simon, were in americas top state for business, well tell what you that is later on today, unless youve figured it out. Well continue with the count down of the number four state when we come back. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the gle350 for 579 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. The dow just skimming below those record highs an hour and 22 minutes into trade. Lets set it over to bertha, whos watching events. Finally positive for the year. It hasnt really been with the help of the large cap. The nasdaq 100 still fractionally negative. Still both more one 4 of the alltime 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 weve had this big comeback have been the small caps and mid caps. The russell 2000, i want to focus on the smallcap 600. Its at a 52week 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, were counting down to the top ten states good for business. Where are we, scott . Number four . Competitiveness is a balancing act. Its 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 americas top state for business last year. Minnesotas best categories are quality of life and education, both the secondbest 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. Minnesotas largest employer is the mayo clinic, the largest industry is professional and business services. This is minnesotas second appearance in our top five. The ben finish number one last year. So in the ten years weve been doing this, weve 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. Were pondering that, scott. Well see you later, as we continue to guess the top state. Well sent it over to jon fortt with our eye on the stock market. What else is coming up on squawk alley . Lets make the end of squawk on the street meet squawk alley. The highs backed off a bit. Well see where things go from here. Also Bernie Sanders will appear with Hillary Clinton for the first time. Well 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 competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Romantic moments can happen spontaneously, so why pause to take a pill . Or stop to find a bathroom . Cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. 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With that, lets 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, were going to take their opening coaches live when they take the stage. Were told theyre running about 10, 15 minutes late. In the meantime were 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