Changes in fed policy in the meantime. Or will they . The eternal question remains. Or not. Yes. Someone joining us says the feds next move, jim grant will join us. No big fan of the fed and its policy the last six years. Well get his take on the fed policy. His take is always controversial. Contrary. But its fun and very wise, too. We love talking to james grant. Thats coming up. After the bell, elon musk joins us for a special, rare interview. His spacex firm he founded in 2002 was just ranked the Number One Company on the cnbc top 50 disruptor list. Among the plans he has for spacex is to colonize mars. Well also hit on news involving other companies. Solar city and tesla. A lot happening there. Big moves in the shares today as well. Lets show you the markets, get you caught up. Not a wide range for the major averages. The dow range has been 90 points. We are up 39, just off highs of the session now at 16,820. The nasdaq is the outperformer, up 24 points now. Technology is doing well. A gain of half a percent. We are at 4345 and the s p 500 index at this hour is up five points at 1943. Lets kick it around, talk about it. Get reaction to todays markets and a look at tomorrow. From the finance report for courts, rob morgan, kenny bocari and are Rick Santelli as welch. Kenny, a quiet market. A wait and see market waiting for the fed tomorrow. Its been the fed, whats happening in iraq. Its been uncertainty over what the next policy movement will be. Not only from the administration but also from the fed. Therefore, you have seen the markets have been stuck in a very tight range. 1950 on the down side. 1950 on the upside. Support and resistance in there. Not a lot of action as it waits for clarity. One of the things thats clearly moving the market and a Big Development this year is the increase we are seeing in deal activity. We are talking already about the number of deals surpassing 2007 levels. The amount might be shy and we are only in june. This could be a big deal. I wonder how much some of the small cap names that recovered are doing on the back of acquisition hopes. Yeah. There is a lot of activity in the m a universe. Good news for banking. You are seeing trading instead of the tight range we have been trading in. That will alleviate pressure. There is also a lot of pent up demand in m a. We heard hit in 2012, 2013. There is always cash on Company Balance sheets. We are seeing it trickle out now. Why now, mark . Thats my question. Often it will happen at a particular time of the business cycle. Whether they expect prices to begin rising so they want to get in before it happens. Interest rate wills go up. The cost of borrowing will go up. Why is it happening now . Why not now . Perhaps thats the question that some of the companies are asking themselves. Certainly you have to think that the m a bankers are convincing. Its a decent atmosphere to go out there. A lot of negativity we saw two years ago just coming off the financial crisis, thats starting to shed. So if you have a better reason why you shouldnt be making moves, linking up with companies, figuring out how to start planning for the future, this is perhaps one of the better times to do it. Who knows what the future holds . I think its as good a time as any. I want to ask you about Andrew Ross Sorkins piece that talks about Insider Trading using data from a Research Study finding Something Like a quarter of all Public Company deals may involve some kind of Insider Trading. Are you aware this level of inside activity and information is the case today . Yeah. I read the article. It was surprising. It seems to indicate if the findings are true that the fcc is behind the curve on this. If there is a Silver Lining and Andrew Ross Sorkin mentions this in the article, the s. E. C. Has hired palintar technologies which used data to find terrorists for the government. If three professors could show this, im sure they can come up with a program to show the same type of activity as well. What about the fact and this is outlined in the piece. We know it from a lot of pieces in the news now regarding clorox, green mountain. So much activity is happening in the option space. Because its easier in the option space, less expensive than the equity space. Its not a surprise. I dont think people should be surprise bid findings in this article. Its been going on ever since the start of human kind, right . Secret sharing. Right. Except now the technology exists to be much more on the top of it, catch it, follow and trace it to where it begins and whos taking advantage. Rick, i bet you have thoughts on that as well. Im curious how the markets are trading ahead of tomorrows fed announcement. Probably no big expectations there. No. You have to remember whether its the bank of eng flanlanden u. S. Fed, they are flattening in the uk and here. We had twoyear fresh flats on fives versus tens. Fives versus 30s. The two year at a high yield. The five year at a two month high yield. The ten year at a one month high yield and the 30 year bond at a four day high yield. The curve is a little squirrely. Hey, we had weak housing. Starts and permits down six and a half. What did the market Pay Attention to . Different. It paid attention to up. 4 on headline. Thats something to make note of. The market might be in flux. As to the other topic, everything is so easy. I work in an exchange. All the trades on options are done on exchanges that can tell you who the customer is, where he is, the color of shoes he wore. They can put in different filters. The najarian brothers understand this. If anybody wants to know who did suspicious activities in line with merger activity it would be no trouble at all. They could comply. Issue on my mind is nobody is asking for it. Thats the thing. If the technology exists why isnt the s. E. C. On top of this . They are always crying poverty. They dont have enough resources to go after the bad guys in Insider Trading cases so they go after the high profile stories and miss the others that the professors at nyu were studying in this case. To some extent its the high profile cases that are more popular. More people care about. Thats probably why they focus on it. This isnt the first study to look into Insider Trading. To the point earlier, this has been going on for a long time. There is a study by pinkerton, i believe that talked about 1981 that said you could see anomalous trading activity 12 days prior to a big m a announcement. This more event study talks about how prolific it is. I would say that im surprised there isnt more of that type of activity. Guys like myself who go out and try to find out about deal activity to write about, you have to have the same sort of force. You have to have the same forces at work looking to find out information about deal activity. You know, there is a whole segment of the industry, Merger Arbitrage that looks to benefit from m a activity. Its not going away any time soon. Thank you. Appreciate it. Thanks, guys. We are headed for the close. 50 minutes left in the trading session on this tuesday. The dow is up 28 points. Been one of those days as we wait for tomorrows News Conference by the fed. This is nothing in terms of tight range. We have had sessions where we moved barely 20, 30 points on the dow the whole time. The summer doldrums are upon us maybe. They struck early. Elon musk, spacex rocketing to the top of the disrupter 50 list. Hell be at the New York Stock Exchange with me later. Well talk hot competition and the commercial space race. Of course well talk tesla, a cutting edge company. Just last week opening up patents to competitors. Thats generating a lot of chatter. Well ask about that. Its coming up in an hour. Dont miss it. Honeywells ceo will talk to us. They make thermostats to jet fuel. The new green jet fuel is powering 200 commercial flights for the world cup. Well talk about that and spacex and lon musk and more things coming up here. Jim grant will join us in a few minutes. Well get his thoughts ahead of the feds big day tomorrow. Hes not holding back. No, hes not. Well be right back. In a world thats changing faster than ever, we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. 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Niiice bank from almost anywhere with the citi mobile app. Welcome. We have breaking news on another mortgage settlement. Scott . Another nearly 1 billion settlement between sun trust. Over mortgage issues, mortgage issuing origination and foreclosures. The bank is admitting between january 2006 and march 2012 it originated and under wrote fha mornls that didnt meet the standards. Tacked onto the existing National Mortgage settlement. Suntrust to provide relief to homeowners and reform. It does admit wrongdoing in a civil settlement here. Scott, honeywell celebrating 100 years. Company executives are here ringing the closing bell later. First they are talking to us. We have a plethora of activity on the set today. That stock is higher as honeywell trades not far off the 52week high. Lets get to it, talk about the trends in their businesses. Honeywell ceo dave cody is back with us. Tim mahoney is next to him and then honey well performance and technologies ceo darrius adonchick. How did i do . Very well. A hundred years. Pretty cool. And the evolution. Its changed a lot. Both tim and darrius will tell you it was almost within two days of each other a hundred years ago it started. From that 40 billion company thats doing well. If there is a theme of the show it has to be energy. We are talking to tesla about lech are trick vehicles. The reason we have plants is we have biofuels to power aircraft. How different is the future of energy and emissions going to look than today . It could be different for number of reason ares. Not just the Energy Efficiency side which we have a lot of work with. But something that the Business Leaders cooperated with. We flew planes. Some at super sonic speeds. This one we flew across the atlantic to the Paris Air Show using darriuss fuel on tims plane. We had a nice combination. Business synergies there. Talk about the technology. We have a seed for the tree you have planted here. You use it to make green jet fuel. Green diesel. You can use a lot of other biofuels like algae or other plants we have on the floor today. We use our license refining process to convert it to real diesel and real jet fuel rather than an additive. It makes our special. How expensive is it . It seems every quality of the fuel makes it attractive except i assume it is much more expensive. The process costs are equivalent to fossil fuels. Its the seed where we have a little bit of work to do. The whole secret is to get the scale we need to build up more of the presence in the jet fuel are we using the same engine or do you have to retrofit something . It goes in the same engine. Its a dropin fuel where the aircraft doesnt need configuration changes or anything like that. Take off. That point is important. Yeah. At the end of the day what you find with renewals people use, its corrosive to pipelines, engines, dispensing advices. These guys have a dropin replacement. You can have a quarter tank of diesel and put in threequarters of a tank of the this fuel and it runs fine. No problems. Why cant you do it with cars . You can. We have it in cars, run ships for the navy, jet fighters all using this fuel. Competition today in aerospace, elon musk will be with us later and spacex and the Cutting Edge Technology there. How do you view those competitors in this field right now. Are they truly the ones youre worried about or the more traditional i can let tim speak to it more. At the end of the day we feel comfortable about the changes that are occurring. The more Technology Advances there are, the better off it is for us. We are a technology bent company whether its darriuss business, tims, what terrence is doing. For us its not a bad thing. I would agree. I think technological differentiation has been the man are tra within honeywell as long as aerospace has been here. We continue to innovate for the last hundred years. Innovation will accelerate. I think there will be more innovation in the next 25 years than there was in the first hundred years. Certainly we have the incredible amount of capability and capacity and talent within the organization to do that. That will be something to see. Were curious what you make of france now. They are trying to get the highest possible bid and trying to Push Companies including General Electric to up the price they are willing to pay. Im glad im not in the middle of it. You dont see that as an attractive asset . Were not in the middle of it. That speaks for itself. Not our business. The pushback they have gotten, its not just about price but sovereignty, the tax implications. Is that an issue you face overseas as well . Outside the u. S. , inside the u. S. Has it become more difficult if you were interested in European Assets to look at them from a Strategic Point of view because of the National Interest many governments there i cant say we have run into it. Who knows. We also havent done anything huge. We have tended to stay in smaller deals. Its tough for me to have an opinion when i havent had to confront it. I still remember the failed deal between ge and honeywell in 2000. The nice thing was im one of the few guys who told mario monte thank you. If it werent for you i wouldnt have a job are. He thought it was funny also. It would be a different General Electric, thats for sure. Good to see you. I will let you get going. This is a fun day for all of us. Can we keep the plant . This is a nice touch. It is. My guess is my guys will be happy about that. It is renewable. 340i7b9s into the close. The dow jones is posting a gain of 27 points. Same for the s p and nasdaq. Building again on the small slight positives we saw yesterday. All ahead of the fed meeting tomorrow. The latest on the middle east. Islamic militants are targeting a city 40 miles north of baghdad. Well go there live for a report. Plus, former u. S. Ambassador to iraq Christopher Hill telling us how he see it is crisis playing out and the potential to destabilize the region along with the oil market. Well be right back. Thank ythank you for defendiyour sacrifice. And thank you for your bravery. Thank you colonel. Thank you daddy. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance can be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Welcome back. Here is a look at where we stand with 35 minutes to go. The feds twoday policy meeting tomorrow. The decision expected tomorrow with the press conference. Markets in a waiting mood. Thats certainly one thing the markets are watching. The other is the situation in the middle east. Militant islamists are on the move in iraq. Now targeting a city less than 50 miles from the capital of baghdad. Michelle Caruso Cabrera is in iraq with the special report. Reporter the situation is growing increasingly critical here. So much so that the white house announced an hour ago that the president will meet with leaders of congress to consult with them about what the u. S. Response should be to the situation here. This as we see more violence. Definitely on the rise. We had a car bombing in baghdad today that left sevenen dead. The first time we see violence in the capital city. There is fighting in the northern part of the country. So for Oil Production in the south of the country is unaffected because it is far i way from the fighting. Today the ceo of bp said they have increased production in the south at the request of the iraqi government. Still the price of oil is elevated and near oneyear highs for the year. The region of kurdistan is in a financial baghdad. They are going to war as we speak. The oil minister announced today that they are going to load up yet another tanker. This would be the third in roughly three weeks full of ale Million Barrels of oil in defiance of baghdad and try to sell it on the open