Yesterday you saw a slight decline for the dow. That was breaking after broke a threeday winning streak we saw going on for the two indices. The nasdaq looked to be down 7 points, the s p are 4 points below fair value. In corporate news, the in the in the is reporting that gm officials increasingly believe that Ceo Mary Barra will be cleared in the wrongdoing in the crisis. The automakers internal probe is expected to name individuals and departments within the Company Responsible for that delayed recall. The investigation will also recommend corporate and personnel changes. In the meantime, gm is apologizing to the families of accident victims who have received recall notices for the replacement of detect fektive ignition switches. Some families who lost relatives in fatal crashes have claimed that gm should not have sent them notices to bring in cars for repairs. Andrew . It looks like mississippi is headed for a runoff in the republican race for senate. John harwood joins us with an update from jackson, mississippi this morning. Good to you, john. Good morning, andrew. Late night last night. Look, in this, the most conservative state in the union, the Tea Party Still got life left. The republican establishment both here in mississippi and in washington was unable to getted that o thad cochran to that 5 last night. We have a graphic here with the numbers. Just a 2,000vote lead for Chris Mcdaniel. Hes short of 50 because there was a Third Party Candidate on the ballot. Chris mcdaniels at 49. 6, thad cochran just a shade under 49 . That means a runoff on june 24th. This is not what republicans who want to regain control of the senate wanted to see happen here, because if Chris Mcdaniel is nominated, there is some thought that the democrat, even in mississippi, would have a chance in this race, the former congressman is running on the democratic side and Chris Mcdaniel, allies of Chris Mcdaniel, the guy who finished a few votes ahead of thad cochran last night, some of his allies were implicated in an incident at a nursing home where pictures were snapped, felony charges associated with that case. And so this was not a good night for Republican Leaders in washington. But it was a good night for the tea party. Okay, john, what do you think of this, guys . I dont know. I think this bird dog thing is exploding. I dont know what to think. Every paper has a different angle, john. I know youre keeping up with it while youre down there. Johns more politics. But i think politics may have played into this a little bit. I dont know how this might have legs. And john which one . The bird dog thing. Work with me for one second. There are theres a cynical view that maybe this initially the idea was that to sort of push back on the v. A. Scandal by saying by the good feelings that come from bringing home a u. S. Soldi soldier. The president s going to be making a speech coming up, i think, over in europe and it was maybe they were trying to tamp down the v. A. Scandal. They did succeed in moving the v. A. Scandal off the front pages but not in the way they intended, i dont think. Joe, i dont believe those were connected. But youre right. This has turned into a story which is about the opposite of what they wanted. Youve got a lot of concern among people in the military, about this deal, about bergdahl, who he was, why he ended up in the hands of the taliban, about the price that was paid to get him out with the release of the five prisoners from guantanamo. Its a bipartisan thing on the hill, you saw Dianne Feinstein yesterday saying the law was broken and she was very unhappy about it. In fact, said when consultation occurred, there was an immediate consultation before the conclusion of the agreement that led to his release but when discussion of that occurred previously, as the administration alluded to, there was unanimous opinion against a deal like that. So this is a very bad story for the administration. A lot of different angles. It is odd, i have to say a lot of different angles, john. Its odd they tried to celebrate this in the rose guardth given hguar garden given how it turned out. Why . We always thought you dont negotiate with terrorists. Thats number one. Number two, like the New York Times has already sort of in damage control mode in terms of saying you cant definitively tie six deaths to searching for this guy. But once that started happening, too, think how that infuinfuhr infuriates people. Thats hard to do. I sort of appreciate the times saying that. Thats the horrible part of the story if we lost six other good guys that hadnt deserted. Joe, ill tell you, i did talk to voters at a polling place yesterday about this subject. Mississippis very promilitary state as the entire deep south is. And there was palpable hostility toward this idea. When i asked the voters that i was talking to, well, what about the idea that president obama said that we never leave a soldier behind on the battlefield, that was not persuasive to them because of the circumstances in which bergdahl left. There was hostility certainly among the military community. But there was hostility on the idea that bergdahl was brought back . I was a little unclear. There was hostility, becky, about the nature of this deal. You had people saying my kids in the military. I think he should be tried for desertion. You had people saying how could they let these guantanamo prisoners out in exchange for somebody who left the base under circumstances like that. Those are questions that certainly are being asked in washington but theyre being asked by people who are close to the military out in the country who dont like how this feels. Totally bipartisan, too. This was the last way we wanted to get bipartisan. Because i really cant see anything. Maybe a little bit more but it is really, democrats, just as much as republicans. Feinstein. And everybody else, too. Just people in general. Okay. John, well let you go. Its a big problem. Okay. I understand he has to be somewhere. He never found a tie. I dont know where he has to be at this hour. Hes out in the field as he pointed out. You can be more casual when youre out in the field. In mississippi. You can wear a tie or a jacket. Is that the way it works . Yes. I have no pants, either. Are you wearing socks today. I have socks. Good for you. My little boney feet. Were your feet slimy for the rest of the morning . I went home and put socks on. The consensus is that your feet werent that bad. Feet in general are gross. Especially when someone is rubbing lotion on them with us right here. Andrew, there is, as in the movie, it quickly turns into something more than a foot massage. Not that theres anything wrong with that if theyre both consenting adults. You can walk into a store and get a foot massage. Vinnie vega says to samuel l. Jackson would you give me a foot massage . He catches him by saying, of course, youd never give another guy a foot massage. They should write the code on human relationships. They had messed up views on the world. I could probably give you a foot massage. You say youd do it for 100,000 yesterday. No, thats something even worse. That was not just a straight up foot massage. No. I forgot that part of it. Were pivoting according to the producer. Were pivoting, hes panicking. They are panicking in our ears right now. Its been a quarter century since the crackdown on the Tiananmen Square protest in china. Eunice yoon joins us from beijing. Eunice . Reporter 25 years after the crackdown, the economy here has changed dramatically but the political system is largely the same. Thats really the legacy of 1989, in the runup to that summer of that year, there were prodemocracy students who marched on the square and they were demonstrating against communist party rule. But then on june 4th, Government Forces came in and fired on those students and civilians and they ended up killing by some estimates anywhere between hundreds or thousands of people on that square. Now, that day was such a pivotal event for china, because it really was a signal from the government that as much as it wanted to see economic reform, it would not tolerate political change. And that is really the main message that many people had seen here. So people are asking at this stage, as the country continues to deepen its reforms, will it really be able to keep the same political system . Weve seen so far theres been a tightening of controls, president xi jinping has been consolidating his power, many people have said its become even more repressive than in 1989. But at the same time, his government unveiled a wide ranging program to liberalize the economy. A lot of people have been asking can you really have bankers who can make commercial decisions if ultimately the banks are controlled by the party . Can you also have a Silicon Valley here as china wants to do if at the same time academic life and the internet are largely controlled. So that is really the big question that china has. Its a fundamental question for the future in the next 25 years. Guys . Eunice, thank you very much. Yale ceo summit about to kick off here on squawk box. This morning, management professor jeff sonnerfield will join us. And the biggest issues facing the Silver Screen when squawk box returns. Okay, listen up im reworkin the menu. Mayo . Corn dogs . You are so outta here aah [ female announcer ] the complete balanced nutrition of greattasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. Nutrition in charge™. Welcome back, everybody. Yesterday you did see the markets sell off a little bit. Stock markets saw the dow and the s p 500 snapping a threeday winning streak. The nasdaq was down for the third day in a row. The dow was down by 21 points, nasdaq down by 3 points and the s p 500 was down by less than 1 point. You see red arrows once again this morning with the dow futures indicated by 18 points and the s p off by 3. 5. Take a look at oil prices. At this point oil prices are up by about 69 cents. 103. 35 for wti. The tenyear note has been incredibly interesting. It was up for four days in a row. Not saying anything. It went rapidly, the yield is now looking at 2. 58 . It was at 2. 6 for a while yesterday. How about the way markets work, though . When it was 2. 9 and tapering started, i said watch it will go down because its the opposite. Exact opposite. And then when its 2. 4, and we get a minus its not because i know anything. You get a minus one the day the minus one comes out and youre at a 2. 4, you know its headed back up. The market confounds to most people. They do the exact opposite. That was my single best idea. Single best. Can there be more than one best idea . After all these record highs fresh record highs. Fresh record alltime highs. New fresh record alltime highs. We want to make it special, dont we . Very special. We do. Okay. Its hard to make the dollar special. Take a look at the dollar because we do have an ecb decision this week. We have play her have told us this is very important because well see if the ecb can finally get the euro to come down a little bit. This morning, the dollar is up against the euro trading at 1. 3613. Its up against the pound and yen. Gold prices yesterday snapped a sixday losing streak after rising 60 cents. Not massive gains. This morning, another 30 cents. Gold has come under a lot of pressure. Did you get eunices tweet. Did i not. What did it say . Not surprising joesquaw surprising joesquawk, becky quick, Andrew Ross Sorkin blacked out during our piece on Tiananmen Square. I guess theyre blacked out on twitter, too, arent they . Amazing. Amazing how quickly they someone is sitting there. Quickly, today is the 25th anniversary of the Tiananmen Square crackdown. Trying to get it in. Get it in, yes. Is that on now . Terrible pictures. Our next guest by the way i cant believe its been 25 years, honestly. Our next guest, their Company Bought by the chinese. Yale University Holding its 77th ceo summit today in new york where some of the best and brightest minds have come together to tackle key issues. Joining us now, jeff sonnenfeld. With us gerry lopez, the company i was referring to, ceo of amc entertainment. You may be blacked out in china right now during this conversation. We can talk about any topic you have in mine. We wouldnt be in china, our Parent Company is based there. Theyre on their own chain of cinemas. We operate quite independently of them on a daytoday basis. Amc is a great model on how Global Commerce can transcend frictions and diplomacy. This is a great example of crossborder investment. Its been a win win win. Thank you. Yes, absolutely. I want to talk to gerry as a barometer, if you will, of Consumer Sentiment and where were going in the economy. I noticed, gerry, that the price for tickets, movie tickets in this country has moved down, not up, in the past quarter. It went from 8. 35 to 7. 96. That feels like a first, excuse my ignorance because i dont follow it enough. Is that new . Its actually a function of the mix, andrew. The prices is our business have been stable for the last couple of three years. And what happens on a quartertoquarter basis is that the percent of the movies being shown in 3d or the percent of businesses in imax will drive the numbers up or down based on that. The truth is when you look at a ticket price today, the cost of going to i amovie today versus five or ten years ago, its actually below the cost of inflation. So its still a great bargain. Its still very affordable for a family to come out and when you see this, its typically driven by mixed changes more than anything else. From a margin perspective, ticket versus everything else, what does it look like for you . For us, two distinct businesses. One business is inviting you to come in for a movie, the box office business, across all of the big exhibiters, that is typically a 40 call it 47, 46 , 47 , 48 gross margin business. Gross margin. The other piece of the business is the food and beverage, the concession stand or the dining theaters as we call them, the lounges in bars. That business operates at an 85 , 86 , 87 gross margin. About a third of the business is double the gross margin of the movie itself. Right. Jeff, congratulations again on your 77th summit today. Thank you. If you were to list out one, two and three in terms of topic areas that you imagine and you have a number of big names, big hitters that are going to be there including gerry. I see meg whitman on the list, among others. What do you imagine the conversation will go like . If you take a look at the list thats there, meg whitman of hp, mike holman of jcpenney, you see a theme emerging. It has to do with the internal activists, how people have ficked out how to build a business for the longer term without having to be shaken down by scare tactics, the sharknado syndrome. These are people who have been building tremendous value but focusing within. The basic theme of the conference is transforming with transparency. Investing in innovation amid public scrutiny. How could i dont build for the long term . Mayors from some 15 major cities feel shortterm pressures. We take a look at financial issues. Let me ask you about that. Even though the activists may not already be in under the tent, clearly theres pressure as youre suggesting for ceos to act as if they are. And the question, therefore, becomes whether that is a good thing for the economy, whether its a good thing for the markets. Well, you know, im very sympathetic to many people who have been targeted, great firms of great leaders, that i think are being unjustly have a match put to their leadership. Mike allman was a poster child of that. It was crazy with big ackman. Pepsico doing a tremendous job. Nelson peltz is quite off his mark on that one. However, the research does suggest, some very good search, i have to admit from up at harvard, in the big picture of things, activist investors arent necessarily a bad force in the economy. Many individual cases, i think dan lobe has done a great job. Well have Ralph Whitworth with us. Well have frank lake of the home depot who has worked well and meg whitman. You can have constructive partnerships. Let me come back to you on leadership. Relating actually to the chinese. Since the chinese have taken over your company, how has it changed from a management perspective . Really not much at all, andrew. What the chinese allowed us to do when they bought the Company Memorial day of 2012 was really invest back in the business. We had a strategy. We were somewhat capital constrained after seven, eight, nine years of private equity ownership. What they did is provide us the runway to let some of the ideas that are now coming to fruition really bloom. And its worked really well. They gave us the cover we needed from a capital perspective, a year and a half later we were successful in an ipo of the company. This is a case, as jeff indicated earlier, it was a win win for everybody concerned. Their investment in our company seasonally doubled over the 14, 15 months from the day they bought it until the day we took it public. And today, we have an emerging segment of our business that is growing at much, much faster pace than the traditional business is growing. Its worked out really well. How many screens in china . Theyre adding about 30 screens every year. Our own company has just over 1,100 screens. Theres about 5,000 screens in the country. Before we leave you, since we all love summer blockbusters, give us your top picks, one, two and three and give me a dark horse to watch for. The top this is an american passport to guess what the big movies will be. We think the big movie will be transformers, clearly, that should run somewhere north of 300 million for its north american box office. Following that one is going to be a horse race, captain america did well, dragon 2 will do well. Youve had big movies in the ask the xmen and spiderman. The best part of the summer, its ahead of us with the fourth of july weekend coming up. You dont have a sleeper for us . You get all the screeners, dont you . Well, we get some. This friday, the fault in our stars i think will be a sleeper. Its going up against tom cruise in the edge of tomorrow. Tom is expected to open somewhere in the 30 million range. We think teenage girls who the fault in our stars is really the target will prop that mov