Crude oil hitting 104. 12, the highest intraday level in more than a year. Road map begins with markets. Bond yields rising, oil back off 15month high. Well break down what it means for all of your investments. Other questions over the crash landing of course in San Francisco airport that left two people dead and dozens more injured. Live on the scene. Crisis in egypt continues. Politicians fight over who should govern the country. Live to cairo. The latest details on the dell buyout. Michael dell key endorsement could bolster his plan to take the company he founded private. Futures climbing with the s p on track for its third day higher ahead of alcoa earns this afternoon which marks unofficial start of earning season. The tenyear slipping back to 2. 69. Dollar at threeyear high against the euro. Interesting session after the jobs number, which in itself was a wild ride on friday. Right. Lost ground in the morning. Made it up in the afternoon. First the tenyear had the big move. By the end of the day the stocks with story with triple increase in the close. Earnings. Now its on to earnings. Based on friday. Of course wall street journal story putting a negative slant on what we can expect for the earnings season in terms of. 7 , i guess. The questions about revenue increases, how significant theyll be, whether they can continue, that is, u. S. Corporations to deliver profferability weve come to expect. You dont have to try too hard to put a negative spin. Conditions themselves have accomplished that. Look at negatives, i cant believe it, the negative depositive preratio, depending whether you look at s p, somewhere in the range of 61. So this is usually in the range of 2. 5. If were if three times as Many Companies as usual are saying things are going to be bad, is that because the fundamentals really deteriorating . Is this the expectations game again . If you cant Say Something nice, dont say anything at all. Their mothers never told them that. Kick off a discussion about the markets. Christopher zook, chairman and cia with kaz investments and a cnbc contributor. Happy monday. Good morning. Dan, quoted in a couple of the pieces about earnings season. Im the course of the negativity. Your point, its not going to be great. I was quoted but im not making im not setting the bar here. Companies listen, what matters. Coming to air we know First Quarter was bad. We knew the First Quarter is bad, the Second Quarter is going to be bad. Does optimism presented about the back hooflt year and beyond warrant higher stock prices because you are going to lose what has been a big beneficiary for stock price, fed activity. I wonder, chris, what am i going to go, to the bond market . Where am i going to look . Im talking about a multiple thats what, 14 times expected year ahead next four quarters . Which is more or less historically not bad. Stock prices are not bad. Not expensive. Also not cheap. When you have the fed pulling out and you have earnings slowing and you have Revenue Growth tepid, its hard to get excited about stocks at this level especially after the pa parabolic moves. Do you put it in cash . Or emerging markets or commodities or keep going, nowhere to hide. I have a slide in my presentation right now that shows the flows coming out of bond funds, the flows out of Commodity Funds and the lack of any flows into equity funds and title of the slide, somewhat, where the heck is the money . That is the big question now. If everybodys pulling out of the investments, are they going into stocks . If they are the answer, money market, cashes. Right now. Absolutely. What changes that balance or moves it back into stocks . Our investment viewpoint, lets wait and see. Right now we have uncertainty on the feds standpoint in the september meeting, earnings season, were in a wait and see mode. To the extent thats happening investors are pulling back and waiting and say week dont disagree with that. Do you have the luxury . People at home might have that luxury, take money out of a bond fund and put it in your bank account for a couple of months. But your cio, you have to tell clients what to do with funds. Are you moving them to cash. Absolutely. Return of my money is more important than the return on my money now. We want to be prudent, we want to park it look for extra opportunities. We see some now as an example in the minors, 15year valuation lows youre going to be wrong short term but youll double or triple money. Youre not afraid of repeating the first half of the year, stocks on a doubledigit tear . Absolutely. Thats possible. Were not completely out of stocks. You pare back, look for evaluations that are compelling. If you dont find a name comfortable owning for three to five years from here, step aside, let somebody else get the last little bit, and wait for prices to come down to you and make real money over time. Got to mention, dan, fomc minutes wednesday followed by a Bernanke Speech after that who clearly wants to continue to control a message that some argue has gotten out of hand last couple of weeks. In related news, to shift the conversation, good story about Larry Summers potentially being the fed chair. Clients, wall street in general, centered on janet yellen. This advances something people arent talk enough of, thats how close relatively speaking Larry Summers is to being near the top or at the top of being nominated. What . Lets assume we get summer as next fed chief. Our view is that inevitably janet yellen, Larry Summers, interchangeable, they have to continue the bernanke policy. We had lunch with a senior republican lawmaker who when i said what are the odds that Larry Summers can be confirmed, let out one of the loudest laughs that i have heard in quite some time. Whether hes nominated or not, whether hes confirmed is really a separate issue. We did a snap survey, at cnbc, following i guess fridays jobs number. The consensus, september taper, average asset purchase reduction of 22 billion. Does that seem in the ballpark . I think it is. When you see that tapering begin to happen, that in itself is probably good news. Its anticipation of the taper. Thats what people are afraid. You probably drift. Drift for here another three, six months and we may have an opportunity to go higher. If earnings come out of left field weak this market has a lot of room on the downside. Can i make two quick points . First weve always been in september, glad to see the market coming around to btigs view. The conversation is can stocks handle higher Interest Rates . Since the tenyear bottom to today, the s p 500 is higher by 3 . Since the tenyear bottomed to today the russell, the russell is higher by almost 9 . It is a fallacy proven by today that somehow or other stocks cant go higher if Interest Rates go higher. Always has been. Correct. A great deal of pain in certain areas, particularly dividend related. Absolutely. The key is why the Interest Rates are going up. If theyre going up because the economys doing well and earnings are doing well, stocks go up if the economys not doing well and rates are going up, thats a problem. Christopher, dan, thanks to kicking us off. A team of investigators continue to look for clues regarding cause of the tragic crash of the asiana flight on sunday. Of course it left two passengers dead. Many more injured. Cnbcs aviation reporter phil lebeau, here from San Francisco airport. With the head of the National Transportation safety bore. Take it away. Thank you, david. Joined by Deborah Hersman chairman woman of the board. The fuselage is over our shoulder here. Give us a sense of what youve been able to perhaps eliminate as some possible causes here. Youre not close to determining anything, but is mechanics a possibility here in terms of this crash . Well, theres still a lot on the table and i say theres probably only two things at this point that weve ruled out. We probably are going to start ruling things out in the coming days as we begin to gather factual information. We know there was no evidence of criminal activity at this point. So we dont have any indication of that. And the other piece of it is weather. We know the weather was very good on the day of the crash, that they had a visual approach into San Francisco airport and visibility was about ten miles. Good day. At least initial indications from the data recorders there doesnt appear to be anything mechanical or engine related, at least initial impression . Thats right. We dont have any reports on air Traffic Control tape or cockpit voice recorder that the crew was saying there was anything wrong and we dont have early indications theres any problem from the trace transcripts and recorders. Tel take me back to what weve been able to take so far, the pilots handling the final 10, 15 seconds before the crash. Were they coming in too low, too slow and tried to turn around . Whats your understanding . Sure. Weve got really good information, really help focus our investigation from the cockpit voice recorder and flight data recorder seven seconds out. The crew is talking. They acknowledge theyre moving too slow. They are not at their target approach speed of 137 knots, 4 seconds out they get a stick shaker activation. Basically its telling them that the airplane is about to stall. Their yolk is vibrating, making a noise, telling them theyre about to stall. 1 1 2 seconds before they have a conversation, talking about going around, that means aborting this landing and going ash and trying to come in and land again. Thats corroborated by information on the flight data recorder they were below their target air speed and did attempt to push the throttles up in the last seconds. The Korean Transport Ministry saying this pilot had 43 hours in a 777, actually handling it, and this his first time trying a landing at sfo. Is it possible the pilot should not have been flying the plane and trying to land it . Remember theres two people in the cockpit and thats theres a reason why we have that. We want to have safety redundancy, crew coordination and for them to work together. So we do need to understand who was the pilot in command. 0 who was the pilot flying at the time, what kind of conversations were they having. A lot of people who hear reports today and obviously you havent determined anything, but one of the questions is going to be, how do i know especially with some of the foreign carriers because of the Pilot Shortage thats been going on worldwide, how do i have confidence that these pilots are truly certified and should be doing the takeoffs and landings . Well, we expect that all of the pilots that operate aircraft that transport the American Public are qualified to do their job, domestic carriers have to meet certain requirements and International Carriers that come into the u. S. Have to meet the same requirements. About currency, about their ratings and their testing, about their medical qualifications. Were going to be looking at all of those things to make sure it was done correctly in this case. Do you understand the flyer, the Business Traveler here in his market, as much as they go over to asia, who might be looking at this saying, wait a second, the guys first time landing at sfo . Im concerned about the flights that im getting on in the future. Its really important that everyone does their job. Youve got the pilots that have got to do their job, airlines have got to do their job with respect to training and then the regulators and theyve got do the oversight. The American People and travelers around the world, their trusting those things happen. Our investigations are determine what happened and why so we can prevent Something Like this from occurring in the future. Last question, look at the future language that has burned, are you surprised that so many people were able to get oust that aircraft within a couple of minutes . I think its a really good news story that so many people were able to get out of the aircraft. Its a testament to the aviation industry, for the changes that have been made over the years to improve survivability. And also, it goes to the cabin crew and the passengers, getting out, evacuating the aircraft. When they do tests they want to people to evacuate in 90 second. The risk of fire is there, you want to get out. We saw pictures of People Holding their carryon baggage. The luggage compartments were collapsing on some of them. I think it scratches people have to scratch their head and say why is somebody grabbing their bag running out of a plane that might be catching on fire . Well want to take a look where people were seated, what instructions they were given by the flight crew, whether people complied. But i will tell you that we do see in a lot of situations that people may be focused on bringing belongings. Some crews tell them dont do this. Again, you know, it is a challenge. And evacuating in an emergency situation, its hard not to get on a plane when youre just orderly filing in and getting on and getting your seat or getting out. Chairwoman of the National Transportation safety board, an update on the investigation. Still a lot of work to be done, guys. They were saying that this fuselage is likely here for days, if not weeks, as they go through everything involve here. Phil lebeau, thank you so much for that. When we come back, mike dell, more support for his buy outoffer. Does that mean carl icahn will back down . Why investors need to wake up and smell the taper. The fed will start tapering as early as september, growing consensus view, take one more look at futures. Monday morning, getting kicked off in the right pattern. Green arrows. Draghi doing jawboning in europe. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Unh hey lets go [ male announcer ] you can choose to blend in. Yeah yeah yeah or you can choose to blend out. Oh, yeaheah the allnew 2014 lexus is. Its your move. Welcome back. Some welcome news prerhaps from michael dell. Taking dell private in a buyout that will be voted on by shareholders july 18th. This morning, iss, institutional shareholder services, the proxy Advisory Service by which a number of shareholders in dell will headache their decision, decided that in fact it favors the dell deal, so to speak, and advises them to vote yes for that deal. Of course last week i was reporting that many people many of the people aware of and involved in the meetings with iss on behalf of both michael dell and silver lake and the committee of dells board came out of the meetings with iss with a decided opinion it did not go well and in fact they were preparing to not have the support of iss, which given the closeness of the expected july 18th vote, which mike dell will not vote his shares, made them believe the deal would not occur. And so you had the special committee reaching out to mr. Dell, inquiring whether he had interest in raising his bid prior to hearing from iss. Much of that now thrown out. In fact, of course the chances for this deal had been bolstered significantly. The leverage that carl icahn, who has the separate recapitalization plan will not be voted on per se but it is the alternative, if you will, leverage that he has to potentially get a higher price out of mr. Dell and silver lake has eroded significantly. Well see what mr. Icahn chooses to do. Its a close vote. Youve got southeastern and t. Rowe and yacktman and a number of other funds, june 3rd, by the way the record date, will vote against the deal or expected to. Nonetheless, guys, unexpectedly, this has certainly bolstered the hopes of michael dell, not even having to raise. The stock price fall dramatically for a leveraged buyout for a deal on friday because of fears that it would get voted down and then youre left in this no mans land. Iss ignored in the past when it comes to j. Crew buyout. A separate conversation whether this forprofit service which a handful of analyst whose dont necessarily have expertise in material areas have influence. And yet thats the way the system works. Thats why we focus on it but it is worthy. Plenty on all sides, bankers and others, who feel like this should not be the way these things go. Management should not have to spend so much time in a proxy contest dealing with iss and worrying about it. Right. But thats the way the system is currently working. Well, if spitzer becomes controller, theyll be able to deal with him and Pension Funds as well. Oh man. Another story well talk about. Back to future. Absolutely. Reminder, by the way, carl icahn will be a keynote at our delivering conference july 17th. One day before that vote. Hell get a last chance. Well see. We may hear from carl before then. Probably. Kick off the trading week with art cashin. Hell join us after the break. One more look at futures. Well get the opening bell in under ten minutes. For the small and the tall. For the strong and the elegant. For the authentic. For at home and on the go. For pessimists and optimists. For those who love you a little and those who love you a lot. For ultimate flavor and great refreshment with or without calories. For carefree enjoyment. For those who have a lot to say and those who have nothing to add. For those who want to choose and choose. For every generation. For us. For everyone. Forever. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade li