As low as 2. 44 or 2. 43 last week. Lets take a look at europe. You can see the marks overseas not too bad, a little more red on the screen. The china pmi released saturday night, people seemed to think that was positive. The nikkei in japan is up 2 . Sent the bonds down a little bit. Hence the yield back a little bit above 2. 50. Let as get to our road map the dow s p finishing may at record closing highs. The nasdaq outperforming both last month and stocks continue the upward momentum through june. After striking a deal to buy beatz the watch is on to see what apple will do for itsen core. Carl is live from San Francisco, hell have the lowdown. Carl icahn, Phil Mickleson and Billy Walters are reportedly subjects of an Insider Trading investigation and icahn is speaking out. Well have the latest on that coming up. We enter june with the dow and s p at record closing highs and four months winning streak. The nasdaq has a 3 gain that it posts in may this week, in fact the markets will be bracing for fridays may jobs report and the ecbs Interest Rate decision on thursday and as i mentioned of course jim, you briefly remarked on, we did get a more positive pmi out of china, that was released i think saturday night that tends to have some impact. So here we are beginning in june, where we find ourselves as i said not too bad. You just talked about the nasdaq. If you recall, lets go back four weeks ago. What the trend was is to say the nasdaq is overvalued and thats going to bleed into the s p, like it did in 2000, we were in april 2000 moment and that story was obliterated. There were some stocks taken out and shot, and it was cordonned off to that group. The ipo stopped, so there was not a glut anymore, that could change of course in september, but everything that was supposed to go wrong didnt. In the interim, we saw some good jobs numbers. We saw Interest Rates go down to the point where people stopped talking about oh, boy, is it frightening at the federal reserve. Remember tapering, we were supposed to sell stocks and tapering . Yes. I dont believe in the china numbers because the baltic freight and copper is not adding up. You get a good china number, people say wait a second they were all bad before this and the takeover chatter is endless and the takeover chatter is what makes shorts really afraid. And activism, too, as we continue to see it rear its head, whether its this morning with starboard and veco or moves on, well get to it on valiant or Endurance Holdings or another deal, ventas buying yet another ventas is nick shoorish again, hes involved with a host of deals, including darden and with Aubrey Mcclendon on a Brand New Company youll hear about that hasnt come public that will be gigantic. This gentleman is who . Nick shoorish, he runs american realty. Thomas piketty talking about ceo pay, hes widely regarded as overpaying himself. Hes created a lot of money for people. Suki pays his people too much but that was a package put in a couple years ago so theres income inequality going on all over the place, companies shrinking the growth, broadcom, a heavily shorted stock in the nasdaq and theres too much activity in a normally slow time to be short and think that you can make money. Okay, that being said, a year ago this time, we started to suffer in the markets, tapering talk, of course, and the emerging markets, wow. They just really kind of recovered. Im still not getting a good read in emerging markets other than people who have an axe to grind in emerging markets. Mexico hasnt come back, brazil is terrible. India, perhaps private and foreign investment. China seems to be going down. They want me to invest in malaysia and indonesia and the philippines. Shame me once, twice, three times, four times, you get your fees to take that money in, fool people with the idea of reaching for yield and we deal with the consequence of your reach for yield. Im tired with those guys getting away with a free ride. Im talking about the managers who always come on and says thats the great growth area. Then we deal with people who didnt know what they were doing and went into that, take big losses and the next thing i know, wow, that was a shame. I know, geez, we didnt understand cheap money, the idea of it going away might hurt the markets more than our own at home. Reaching for yield is the dumbest thing you can do. Dumb in the 80s, dumb in the 90s, dumb now. The people who tell you to reach for yield are shameless charlatans. I cannot play for dinner and tell the truth about these people. You havent been up until this point . I felt last year i let people down by not saying that this could happen if rates rise. It was a bad thing i did. I knew it could happen but sensed those people always say hey listen, i dont want people to lose. Professionals you can be there. Individual Retail Investors its not for you, theres not a lot of suitability there. People will come on air and tell you it is suitable. Lets get to carl quintanilla, second time in less than a week headed out to the west coast, there in San Francisco this time for apples Worldwide Developers conference. Take it away, carl. It is a very big month for tech conferences. We had the code conference last week. Googles io conference later in the month but of course today, they call it the single biggest newsmaking event in technology, centered around one company, and that is apples Worldwide Developers conference here at the Mosconi Center in San Francisco. 1,000 apple developers, 5,000 app developers. Theres a lottery to get tickets to get inside. Banners outside the conference saying write the code, change the world. Developers show up, they get the updates, they get the beta version of the code to write apps for devices debuting in the fall and that helps drive the demand. Well see if theres any indication on hardware today. In the past jobs historically did unveil a refresh of an iphone here. We talked to mike gurman outside the Mosconi Center this morning and said what could happen in the way of surprises . Heres what he said. Apple theres always surprises, qt is the really nice pipeline for the second half of this year so its possible theyll talk about that today when they have developers and media watching closely. Will there be a new iphone or ipad . I dont think so. They like to save those for the fall. Its possible to throw a curveball here or there perhaps, a new watch product or tv related product. Would i count on it . No, but its always possible. Guys like mark who watch the company closely are not dismissing out of hand the debut of some wearable, maybe a watch, or updated set top box for apple tv. More confident in looking for a health book that would be an app that manages and aggravates all of your health and fitness data, itunes radio perhaps broken out into its own app to better compete with pandora and the smartphone news from the ft guys last week, who knows if it will be a true platform in the sense of the word or maybe a Certification Program where apple gives their blessing to manufacturers of other products saying you are now blessed with the halo of producing a product that works with the iphone. Tim cooks keynote is at 1 00 p. M. Eastern time and headlines outside all day long. Carl, i think this is again im hearing a change in the way apple likes to deal things, deal with things. Is it possible tim cook comes out basically and says weve created a huge number of jobs. The real story is you, the audience, youve created more jobs than the federal governments created during this period. In other words once again the inclusion of people who are not apple, in order to make people realize that apple is more than just the company itself. Thats a good point. Obviously domestic mac production for them is a big political card. Theyve beenle to play it lately. There is a sense the conventional wisdom is theyre behind the eight ball. The beatz news from last week lets them come in with a bit of a head of steam. We might see jimmy iovine and dre on stage and some speculate a musical performance to get the buzz going. I think you agree, jim, the stock not withstanding they could probably use. Maybe theyll have shakira, i dont know if you were in Silicon Valley but i love that show. No but im going to watch it right now. Because the sales force has done, your dream force and suddenly dream force has become this event that its a tough ticket. This notion of the tough ticket, kind of exciting again, isnt it . I wish we had a camera across the street because the line outside is always fun to watch, guys, who even at this late hour, a few hours before tim cook takes the staplige, there a competition to get inside even though its streamed and headlines, people want to see this in person. That says a lot about the buzz that apple continues to have years after jobs death, of course, and years after one year after the stock was hitting those 52week lows. Carl, well be checking in with you of course throughout the next three hours. Carl quintanilla of course in San Francisco. Weve got new developments regarding valiants push to require allergan. Well have that after the break and hilton introduces a new brand. Simon hobbs will have a live and exclusive interview with the ceo. Another look at futures, a lot more squawk on the street coming to you live when we come back after this. Questions this morning about an Insider Trading inquiry involving Phil Mickelson, William Walters and activist investor carl icahn. Scott wapner has a closer look at mickelson, icahn and the whole situation. Already reports that the investigation were talking about, which has shocked wall street and the sports world, has potentially hit a snag. The wall street journal saying the investigation going public may have hurt the governmentserts to build their case. For his part, carl icahn has denied any wrongdoing, telling me exclusively over the weekend he knows of no fbi investigation, hasnt received a subpoena and has never given inside information to anyone. He also said that, while hes heard of Phil Mickelson, the two have never met or spoken. Icahn telling me hes proud of his 50year career and unblemished record and thats why this news is so stunning. People have certainly criticized icahns style and takeover strategies over the years but hes never had a big dustup with federal authorities. Blockbuster creditor sued him four years ago alleging he used inside information as he converted his equity stake to debt but that case was dismis d dismissed. Mickelson is mostly mum releasing a short statement over the weekend from the memorial Golf Tournament saying ive done absolutely nothing wrong. I have cooperated with the government in this investigation and will continue to do so. I wish i could fully discuss this matter but under the current circumstances its just not possible. Mickelsons sponsors, amgen, kpmg and barclays, and callaway says the reported investigation does not involve callaway and thus we have no comment on that matter. We would like to note we have a Longstanding Partnership with phil and value our relationship with him. Hes always acted with the utmost professionalism and integrity in our dealings. Important to note neither mr. Icahn or mickelson are accused of any wrongdoing at this point but guys, this was a shocker, friday night, 8 00 p. M. When we first heard about it. Yes, in dealing with icahn as i know you have, scott, and i have for so many years, it seems odd to me. Yes. You can tell the press whatever you want and he obviously wont do that. I dont understand what benefit could possibly these things, i dont know, i mean the trade was in 2011, right . I remember following this fight obviously for clorox, where he failed by the way, icahn, one of his big defeats. Thats the irony in the whole thing. Scott, i read this, and first thing i thought was how outrageous is this . Obviously unless theres some weird guy who is between the government and icahn, how the heck did this get out . The next thing you know, i start thinking maybe mickelson is not a great guy. This is how you wreck people. This is how you wreck peoples reputation. You dont have an indictment. You put something out. You dont arrest, and you wreck them. Who would ever allow this to happen . Now youre obviously, jim, they forced carl icahn and Phil Mickelson and this other gentleman people dont know a whole lot about, Billy Walters, to come out and have to defend themselves. At the top we noted how the case could be hitting a snag, because the investigators apparently had been doing electronic surveillance, human surveillance or whatnot, then when this was made public by two fbi guys showing up at the memorial Golf Tournament in ohio, after Phil Mickelson finished his round, then it becomes public. Now you wonder what the case is. On the other hand, as you know, jim, from your many conversations with pete barrara, the u. S. Attorney in manhattan, theres been a crackdown on insider trader. His record is 800 . You know, but look, you want to go make clear that theres an investigation, you have the fbi show up at a tournament. You want to do it a way where you dont want to ruin this guy, you have his lawyer come in and say listen, this is the way you ruin someones reputation. Its not the american way. Its what happened to giuliani when he wrecked some reputations way back. Early arrest. Yes, its not the way we do it. I looked at the trading in d foods in 2011, you lost anything if you did anything in d foods. I thought you had to make money to have an Insider Trading investigation. Youll be following throughout the day of course. Well check in with you. Final thought for me on this activism is something that we know the federal authorities are looking more closely at in terms of the circles of information, and what does and doesnt actually constitute Material Information in an activist situation where there is occasionally conversation, people are bringing ideas to an icahn for example and things of that nature. Well see how it goes from here. Up next, the mad dash with this man right here to my right. 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Starboard comes in and write a thoughtful letter that says maybe theres a lot of fat here. This is that new thing we saw. 5. 6 ownership, they want to unlike value. Well see. Right away they do hit with you things like corporate overhead expense 4. 2 of sales. We havent heard from them in management. Three times higher than the 1. 2 average. Its a Great Company and done well. No, the stock hasnt done well. The companys done well but maybe with the changes it would go better. I dont think its a bad idea. Its a combination of mead office supply. They have a lot of real estate. It makes tons of sense to me. And of course a fight to replace all of dardens board of directors. Each time we report on these things we incense, enable some of the activist, we give them a platform, their name becomes bigger and powerful. Broadcom. Weve seen them flailing, try to stay in qualcomms orb so to speak. Theyre offloading the cellular base band systems, 700 million in savings. It has been a black hole. David, it is about time that broadcom focused on profitability. If they do, the stock is indeed worth a lot. It has missed quarter after quarter, be very careful. Be very careful. Do we have any idea what this thing is worth, the cellular based band business, jpmorgan is helping them try to sell it. Frankly it may be worth very little. Whats important is that its been a black hole for r d and broadcom has historically had a great reputation but if you were to look at the longterm of broadcom, are you kidding me . Have you developed absolutely no value . Getting rid of a division that doesnt have a lot of value is saying the rest of the company may be worth more than we thought. We got so many other things to cover including bill ackman and valiant getting a lot more, what would you call it, almost constructive in the sense of theyre coming hard at the hostile offer for agn. Thats one of the stories well be following when we come back. 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