June 24th and then theres oil, wow, up 16 in two weeks and well talk about why you should expect sticker shock at the gas station in a few moments. First up, as we said, the dow closed yesterdays session up 118 points and thats back from may 28. Futures indicate we are likely to open above that level and charge toward the intraday high of 15. 542. This coming on the latest message of Monetary Policy delivered late yesterday. The dual mandate is to pursue maximum employment and price stability. Currently, zee an Unemployment Rate of 7. 6 which i think if anything, overstates the health of our labor markets. On price stability, inflation is 9 which is below our 2 objective and so both sides of our mandate, and both the employment side and the inflation side are saying that we need to be more accommodative. All right, jim. Lets kick this off here. A, lets just talk welcome back. Oh, thank you. Were going to talk about your vacation a little bit later. Our faces going to get ripped off today . It does feel like that. There was another one in chicago, Rick Santelli who didnt and the reason why thats important is bonds are traded out there, and i think a lot of people were ready for Interest Rates in the tenyear to go to three and theyre being pulled back. So suddenly the bond equivalent trade is back on. We sold that yesterday and the drug stocks started doing better and meanwhile, we can start saying wait a second, Mortgage Rates and maybe there was a spike and maybe the applications will come back and i think if you get something for everybody, then what happens is people that are short who went the wrong way. You in general dont like big, up opens. No. And we are facing some that look at the dow inflation adjusted and looking at key resistance levels and that kind of thing. I dont like the fact that the Big Bank Earnings are tomorrow. Speaking of which, one of the most powerful Business Leaders is coming to squawk on the street tomorrow on our program. Cramer will have a live interview with j. P. Morgans jamie dimon live at the New York Stock Exchange. Of course, after the banking giant releases its Earnings Report in the morning and thats tomorrow at 10 00 a. M. Eastern time. Thats big, jim. It took two and a half years to make half and in another two and a half years maybe hell it will be on every corner. Its a Long Time Coming and i am very excited about it, and i think were going to deliver. Cant wait for that tomorrow. Thank you. Lets get to john ford and we have numbers back at hq. Carl, thats right. Microsoft right now rolling out the news of its reorganization. Heres how theyre doing it. The idea is for microsoft to be more one microsoft, less organized around Business Units and flattening out the organization. You can read this as Steve Ballmer taking a more direct hand in trying to move this company more quickly in mobile and cloud. Heres how it breaks down. Three four Engineering Groups now that this is organized around, one in operating systems, windows, Windows Phone, xbox and Terry Meyerson will lead that group. The cloud and Enterprise Group will be led by satya nadala that existed under the previous structure and it includes Data Center Management and that had been part of Online Services and key lieu was previously over online and he now gets office, as well, that huge business that was part of the business division. Also, theres devices in studio, surface xbox, et cetera, mice, keyboards, all of the hardware and thats going to be an Engineering Group also. Now pulled out in this, no longer part of these Engineering Groups functions like marketing. That will be tammy reller leading that across the entire company. Evangelism and Business Development and the outward facing product of microsoft and working with customers and tony bates who had been leading skype financed across the whole company will be led by amy hood. There wont be any changes to things like legal and hr. This can be seen as the meat on the bones of this devices and Services Approach that Steve Ballmer had been talking about. So much for the past few months and this is how microsoft intends to present itself to the developers and folks that its trying to coax away from the apples and googles of the world to have taken such a stronger hand in computing, carl. Interesting. The early take on this, jim. John, stick around is that theyre trying to smooth out what has been a very political organization, and a very siloed organization. And theres Something Interesting here and in a piece by Karen Swisher and one microsoft, ballmer wrote this, where do we hear that term . One ford, who did ballmer meet just ten days ago, two weeks ago . Allen mulally from ford, where did ballmers dad i think balmer is taking a page from ford, and i think it works. Interesting. John, it comes on a day when pc shipments around the world, down five quarters and thats never happened. Pc world, the bible of the industry losing the print element. Its happening at a tough time. So much has changed. A lot of water to carry. So much change, carl. When i talk to ceos particularly around silicon valley, they talk about how you have to reorganize your Company Based on the time. Sometimes when youre kind of on top of the world youve won the latest battles and it makes sense to organize into Business Units and let those products like windows and office have a lot more autonomy, but in a time when theres change when you need it retool your strategy it makes sense to flatten out. You can argue microsoft should have done this a couple of years ago, but given what microsoft is facing a lot of people would say this makes sense. Favors back at hq. All of that said for those who have taken a fly or the stock below 30, theyre feeling good about it now. I am so glad you mentioned that, carl, because those have been the keys that weve been following. It it may have been april and i was at an activist convince and they took a significant stake and a very small percentage of microsofts market cap and a 2 billion position, roughly and that stock has never looked back and you can see that move from april of this year, significant accretion of market cap. Apart from all of this people should keep in mind that you do have the activists in the shares and you have the meetings back in august and what pressure, if any, has been applied if any because the position of ownership by mr. Gates and mr. Ballmer not nearly as large as it once and was you do wonder if theres been a dialogue and this is another example of where theyre trying to do things to either forestall potential criticism in the future or respond to it. Something else i want to mention that folks like us will Pay Attention to and certainly a lot of investors. I do expect that at some point this will affect the way microsoft reports its numbers. They have been, of course, reporting things by business unit. Microsoft will be required to report numbers based on wait the ceo looks at the company. Ballmers looking at the company differently now. Im not clear yet on how that might change microsoft reports, the intelligence im getting is we wont get microsoft earnings at some point, any changes in the way microsoft reports its numbers, we will get those defames. One of the thing zees to watch been. Heather bellini downgraded the stock. People were positioned and the stock was at 27. Which of these people has to change their mind at 35 and get onboard and uses one microsoft as the reason . Thats interesting. Because when the rubber meets the road, the bulls argument is there will be changes to Capital Allocation to shareholders, right . Much more aggressive on dividends and buybacks. With the new cfo in place thats the argument, right . Yes. Also remember the Entertainment Division which i think is chronically underrated. They have almost twice the number of people on netflix. The Entertainment Division could be unlocked here. Look at amd upgraded today. Why . Because of the huge xbox splurge. This company is undervalued and i am a believer in ballmer and wait a second, jim. He was your buddy at college and totally true, and he has a legacy to preserve here and david and i have gone back and forth, but i do believe his legacy is at stake and i wonder what theyre saying at hp, and you do have to change the conversation if youre microsoft and do you have to if youre hp or dell, and lenovo. They take margin out of the business with every single pc they sell, carl. Thats kind of where thats going and microsoft certainly moving in a different direction. Many have already pointed to enterprises being the key here and certainly being perhaps undervalued and the perception of investors perhaps with this change that will no longer be the case. It was like being in my 30s. Its hypnotic, and you cant look away. The producers did a good job including the cinema thing they were doing that made it look like everybody was right back. I love that show, and i love that show, and i miss you here. Im sorry im not there with you guys. I was mesmerized by kern ins hair from the 90s. Like flintstone. It comes out this far. I think we need a new tweter, like avatar and it was kind of like a before and after or whatever. By the way, guys this marks the twoyear anniversary of squawk on the street as we know it. David, you used to join us down there, and now you join us down here as we prefer it. I love working with you guys and this has been a fantastic run. By the way. As we mentioned tomorrow on this program, cramer, a live interview with j. P. Morgans jamie dimon right here at the nyse, 10 00 a. M. Eastern time after their earnings come out and dont forget that. Goldmans chief equity strategist in the u. S. , david kostin doubling down on his target and well talk about what hes expecting from earnings season and what that does for your money. Take one more look at the futures and the potential 150 to the upside above the record close from may 28. A lot more squawk on the street live from post 9 in just a moment. Wi drive a ford fusion. Who is healthier, you or your car . I would say my car. Probably the car. Cause as you get older you start breaking down. I love my car. I want to take care of it. I have a bad wheel i must say. My car is running quite well. Keep your car healthy with the works. 29. 95 or less after 10 mailin rebate at your participating ford dealer. So you gotta take care of yourself . Yes you do. You gotta take care of your baby . Oh yeah the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. You want a broker you can trust. A lot of guys at the other firms seemed more focused on selling than their clients. Thats why i stopped working at my old brokerage and became a Financial Consultant with Charles Schwab. Avo what kind of Financial Consultant are you looking for . Talk to us today. Bernankes words yesterday leading to a rally yesterday. We look to open up 151 and keep in mind the dow 15,409 is the record close from may 28th. Meantime, Julia Boorstin in sun valley catching up with a name we know very well on this show, john malone, talking some consolidation. Good morning, julia. Reporter thats right. We just spoke to john malone and hes push for example major consolidation in the cable business. In the u. S. Cable business were making the observation that it would be nice to see other than comcast. Comcast is large enough to, i think, do okay. The rest of the Industry Needs more consolidation, in our view, in order to get more skilled economics and thats kind of what ive been saying. Malone who owns 27 of charter says it it can be done via mergers and joint ventures to help Cable Companies get things done. Malone says Time Warner Cable should be done, and theyre the other obvious names at play here and he could be looking at smaller, regional assets. Malone says hes focused on cable because of a growing demand for highspeed broadband and he says the cable industry is the primary deliverer of that connectivity and thats the value. David . At least if liberty owning 27 of charter and they want charter to be a consolidator and it is unclear how they can get the Shareholder Base of Time Warner Cable to agree with them, but theyll keep talking about it and he does believe in the power of broadband having spoken to him, i think it was back in april for quite some time. Interesting. You should watch out for malone meeting with Gordy Crawford and i dont know if hes meeting with capri, and theyre large shareholders . Time warner cable and thats got to be the key connection. Can malone tell the Shareholder Base, that yes, the charter can issue enormous amounts of stock and they should let us do it. And david, Time Warner Cable has tried to rebuff him, but it it sounds like he is still pursuing Time Warner Cable and if that doesnt work out it looks like hell look elsewhere to cox or cablevision. When they look at cablevision and are they ready to sell . Julia, thank you. Interesting story that well keep watching. Absolutely. Thanks, julia. I dont know if you saw this op ed, Charles Schwab, founder of the Brokerage Firm baring his name has an op ed in the journal about why they believe individual investors are leaving stocks. High frequency traders gaming the system and glitches and errors like the flash crash and policy uncertainty are giving investors cold feet. Their solution . Make it easier for employers to offer savings plans to employees and encourage marketbased innovation and educate americas workers on how to maximize retirement plans and fascinating piece from a man, who may be no better source on why retail america is afraid. Couldnt agree more. Why individual investors are fleeing stocks. Why . Because this man is not afraid of the industry. This is a Ground Breaking piece because what hes saying is listen, you have to pair back the high frequencies. You and i have talked about this and david talked about it, but the industry does not. This man broke the whole mold when he started. I remember my first account when i remember doing business with schwab. He is coming back and he is saying, stop it. Listen, sec, stop it youve got to get in and solve things. Hes a brave man and always has been and hes a pioneer and always has been. He goes into why High Frequency traders locate their computers closer to the exchange to shave off that extra, and just that extra time between their computers and the exchanges. Flash crash, facebook, sandy. The twitter ap hack. He names it all. There should be better iras. And eamon javers is worthy of pulitzer reporting. This is why javers is writing these pieces because there are some people that get an edge. I know this is con ro veshl and im not kidding, but i have to tell you, Charles Schwab. Hes about you. Hes about the individual industry. Because he always has been, jim and lets not forget where hes coming from. Do you remember when schwabs market cap was larger than that of Merrill Lynch for a brief time . I remember when goldman debated buying schwab. Those days are long gone. David, you have to hand it to the fact that there is someone in the industriy that actually is willing to speak up on this stuff. Everyone, once the High Frequency business. Youre right. He wants the individual business back, but at the same time, everyone else seems to be cowed by the hftc guys. Its an important read in the journal today. Cramer, as you can see, back in the starting blocks, hes got moneymaking advice for you next in his mad dash. One more look at futures in less than ten minutes. Squawk on the street from the nyse straight ahead. I turn ed 65 last week. I turn the math of retirement is different today. Money has to last longer. I dont want to pour over pie charts all day. I want to travel, and i want the income to do it. Ishares incomes etfs. Low cost and diversified. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. 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. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors