Eliminated from the world cup. That was crazy. Road map begins with the market. S p at the new high claims setting the stage for for another move. Blackberry up 12 after better than expected results, but could new competition from amazons phone be a head wind . Fight is on with insurgents over the oil refinery. Oil this morning at a ninemonth high. First up, jobless claims fell more than expected last week, down 6,000. This one day after the s p hit that new record and the fed said it expects gradual improvement in the labor market over time. Earlier on squawk box this morning, larry spoke about what he sees ahead for the u. S. Markets. I think the markets are more fair priced here. The central bank is further along, the u. S. Economy is further along. I would not expect to see large price increases in equities over the next year or so unless we see corporate earnings continue to do better. We actually had a great discussion about yellen herself who he argues is more dovish than ber nan ki was and discounted her. I think that fink was fabulous this morning, and i think what ye yellen is trying to say, we want to have more people do better. Its unusual for a fed chief to basically say, listen, the heart is more important than the head, but i think shes very rigorous. I think those who say that shes not rigorous, how do you explain the fact that the stock market rallied dramatically if shes really viewed as someone with no rigor . She said the inflation number was noisy, the stock market would have been down. I take a cue from what people say, which is the rally. Evaluation, asked again for the third time now, said evaluations are not outside historical norms even though we know its a fort higher than the long term average. What do you think . Does it feel rich right now . First of all, i love that whole dialogue. The reason i love it is because whenever the fed chief talks equities, okay, please, say its not my job, please, no comment. I didnt want her to say anything because its not her job to comment, but i felt like, well, yeah, overall, we have a lot of stocks that have moved up a great deal, maybe they are ahead of themselves without any data, but every time i try to say, you know what . Dont be complacent, i get a federal express, which then puts out shoots the lights out. I get a red hat last night, amazing. I say, well, wait a second, all three were misvalued into the quarter. Yeah, theres upside. You mentioned kroger, heck of a quarter, they raised their forecast on comps for the year by 50 basis points. Right, the largest transportation carrier, fedex, raising number, kroger doing a fabulous job, same store sales, key guide up. I wish i owned them yesterday. Thats in sync with what she said yesterday. They would be going down if they reported good numbers and stocks were too high. What do you think of the notion were not making up the loss ground from q 1, surprising . No, i think theres a big Service Economy and the sales just disappear. People who, frankly, live or die by the weather, Small Business people, are dying, and shes sensitive to that very much. You know, she made good points about every time we talk about housing, every time the under current of these things basically is were not doing as well as we should, and i think that the average person agrees with that. I think that thats also president obamas theme. President obamas forget it, president obamas Federal Reserve person, president obama says, listen, not doing that well, she says that. The people who are hardliners, they never want to hear that because it has nothing to do with what they do. Theyre not about how people are doing, but about the nations finances. These are just completely two different worlds just colliding this morning, and its interesting that the world that says people are not doing well, its got to get better is the stock. Its not like the bonds went to 3 . Right, right. Well get to more including blackberry, the release here. A new report of a cyberattack against a hedge fund. We are in washington with details. Reporter good morning, thats right. Cyber experts in va systems tell cnbc exclusively they stopped an unprecedented attack against a Large Hedge Fund in which the attackers not only sought to steal data from the hedge fund, but block the trading strategy and abilities. Heres what we know as of today. The hackers penetrated the firm. They were able to slow the firms high speed trading strategy, and they were able to insert gaps of hundreds of milliseconds into the firms algorithm that caused the trading to slow down and strategy become ineffective. They were able to reroute trading data off site to computers controlled by the cyber criminals in an effort that cost the va systems estimates millions of dollars over a period of months. The malware was in place for months before va systems found it and able to eliminate it. What we dont know here is the name of the hedge fund involved. Va systems says they will protect the identity of the client here. We talked to paul, va systems implied intelligence, about the reaction to the brazen attack. On the one hand, its pretty amazing. We have certainly seen incidents where people penetrated hedge fund systems, rooting around for information about trading strategies, but this was the first time we saw someone Design Software explicitly designed to attack, you know, the core systems that these folks use to trade, ie, the order entry system. Paul said a few weeks ago they spotted an attack against a large Insurance Company in which hackers were able to get inside the insurance policy companys underwriting system, generate false Insurance Coverage for false clients, and then cash claims against those false insurance plans. Thats the kind of damage that were seeing now, and what they describe as a new way of Cyber Attacks designed to attack the business processes of companies themselves, not just stealing credit card numbers and other easy to exploit data, but actually to get into the companies and manipulate the business itself. Thats a much more dangerous and threatening things for the Companies Including hedge funds that are seeing these attacks. Talk about a ripe target there for the hackers, thank you for that. Can you imagine going through this when you ran your firm . I would have never done high speed trading. They feel like they are robin hood. Theres been a huge backlash lately about whether these hedge High Frequency traders are doing the right thing. Look, no were all anticyber hacking, but theres probably more sympathetic. Great point. Blackberry reported narrowly reported loss, 1 cents a share, down 68 year over year, and margins rose substantially from a year ago as they are slashing cost, and the company says they expect break even cash flow by the end of the current dpis call year, hardware profitable in 2016, but adjusted operating expenses down 57 . You read this release, you say, what was blackberry . Just the fattest, Happiest Company in the world . Maybe they were more of a principality than a company. This kind of release, when i read it, i just say, i dont even look at the numbers that are sold. All i recognize is, wow, they took up cost. Margin, 43 to 48. Stock probably goes to 11. Goes to 11 . Companys not going under, cash flow. If they do this, Companies Target results by 2015. Some are worried about the cash burden. Listen, they are in business. They are staying. They are not goingunderpar. Staying. Nothing excited. Made remarks, going back to the roots, cast the net too broadly earlier on, but its colliding with the amazon news yesterday with the tmobile interview with ledger in a minute. I cant wait. These guys are all at war. Be careful. Everyone has an ax here. This terrific at t man, interviewed him before, heres the merchant to you giving you the amazon phone. Im sure anyone who says, look, i dont know about that amazon phone, is not the seller of the amazon phone. Those of us who are prime lovers right here. Right, like, i dont have to i just flash that, and i order it . Sorry, i mean, i like that. Yeah. Its a cool thing. Washington post says forget point and shoot, this is point and shop. Thats the dream. Right. How many times have i looked at something when i get back, check amazon, i maybe buy it and forget about it. Now its like, boom, i got it, be there tomorrow. Speaking of tmobile, well hear more in a bit. First, heres a taste of what ledger told john about profitability and their outlook. We have been very consistent on the three to five year outline for the company and the profitability targets, and were actually ahead, very bullish, and i think really whats behind some of this, john, is people are misunderstanding the profitability of these moves that tmobile is making, and they are very good decisions. Its just that the other guys have decided not to treat customers this way, so grope will continue. The ultimate disruptor. I love him. Were all from this school which says the other guy, they are doing fine. Were doing better. No, i mean, this guy is the way hes an nfl coach, okay, hes kind of coming from the point of view, like, were going to destroy them this sunday. Were not used to that in this business. Were not used to sports figures who run companies. He is, like, all of us when we talk about world cup. Yeah. Its like, you know, hes saying, theres spain. You think they won last time, forget about it. They are eliminated. You say, you talk to the coffee guy this morning, they are spain, they are eliminated. Hes coming with the world cup analysis. Absolutely. A programming note, watch our cnbc original documentary, amazon rising, hosted by faber, airs sunday june 29 th, a Company Whose story rarely well told. Still the most fascinating. When you get with people off the desk talking tesla and amazon. Why . Inspirational and they shop on amazon. Guy pulls up at the party, what did you get at walmart . Does not happen. I cant wait to see what david put together. Yeah, and davids most successful documentary was about walmart. Exactly. The man knows retail even if he doesnt shop like he should. Because of conflict of interest. He wants to remain neutral. When we come back, the latest development surrounding the crisis in iraq. Headed to that country with a live report, and ahead, we mentioned kroger ahead on numbers, out performed the s p in a big way in a tough low margin business. Well talk exclusively with the cfo of the nations supermarket chain. A look at futures as we kick off thursday morning. For squawk on the street from post nine in a minute. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Update on the crisis in iraq. Chief international correspondent, michelle carusocabrera, in iraq with the latest. Michelle, good morning. Reporter good morning. Its increasingly clear that the Prime Minister of iraq is going to struggle to retain his job. The wall street journal reports today that based on circles outside the United States and middle east policy consul at that particular times that in conversations they are having with the administration, the white house is looking for potentially a different leader of iraq, similar to who could perhaps bring the country together. The country had an election in april. Hes been Prime Minister for a long time, his party has the most votes. In theory, he should be able to bring together a Coalition Government, but considering how divided the country is between sunnis and shites, is there someone to bring the country to the ethically . They think that could go a long way as others look the other way as the insurgents, convince them to support the Central Government because they are not doing so right now. The other big headline is that baghdad has asked the u. S. To launch air strikes against those sunni extremists. The u. S. Is not and so far they indicated they are not going to, but nbc news reports that the u. S. Military is flying manned and unmanned Reconnaissance Missions over iraq. This video was uploaded by the u. S. Navy by their website, theres f18 flying over and unmanned drone flights as well. The rebels have not been able to reach baghdad as they promised they would when they began the strong uprising last week, however, the vieps reached baghdad, second car bombing in a week, seven wounded this morning when a parked vehicle exploded in a neighborhoodaccording ini officials. They are calling this sectarian warfare. Guys, back to you. Michelle, incredible story as we continue to watch. The battle over the refinery itself, right . The insurgents want to control it, not destroy it, i imagine they are tiptoeing around the battle so to speak, right . Reporter that would be the impression you get, right . If you want to control a piece of infrastructure like that, presumably as the rebels did in syria, take over oil fields and sell the oil, they want it to stay in tact. At the same time theres been video unverified where we see parts of the refinery on fire, but, yeah, that battle for the refinery, the largest in iraq, comets as far as we know at this point. The res have claimed at one point they controlled it. The government claimed they control it. The refinery to me is emblematic to the phrase, the fog of war. We have no idea. What we know is its offline and long gas lines in this part of iraq and kurdistan in the northeast because people in that part of iraq come here to get their gas, and as a result, the capacity here, the refinery here doesnt have the capacity to meet the huge serge in demand. Right. Well come back for more today. Michelle carusocabrera covering the story out of iraq. If you cant send the oil to that refinery, where is it going to go . Back into the world. If the oil goes in the world, price of oil comes down, it is going down. Its a very strange thing, but that refinery, like our country, if you cant refine oil, you got to put the oil somewhere. Problem in our country is that youre not allowed to ship it overseas, but you can if youre iraq. People are confused why is a terrible piece of infrastructure so key to iraq . May produce more oil for the rest of us. Oddity. Right. Mad dash, count down to the opening bell, a look at the premarket, and squawk on the street from the nyc straight ahead. Fame, makes a man take things over fame, lets him loose, hard to swallow fame, puts you there where things are hollow the evolution of luxury continues. The next generation 2015 escalade. Fame [ girl ] my mom, she makes underwater fans that are powered by the moon. [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] my mom makes hospitals you can hold in your hand. My mom can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] my mom works at ge. My mom works at ge. In a 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. Just about seven minutes before the bell on a thursday. Lets get cramers mad dash ahead of opening bell. Starbucks is convinced on sustainable long growth. I want to talk about this, classic growth stock, kppss lower because of the price of coffee, the welltimed upgrade say, you know what, the company is doing strong, stronger than the coffee, i love good head liens with the research. Saying, look, you know, people felt that kind of growth, and maybe paying too much for it. This is not Janet Yellens stock, yeah, were not paying too much or exub rent. I like it very much. Duncan thinks coffee prices peaked. I had him on three weeks ago, worried about the trajectory. Coffee represents less than 5 of the cost of goods sold. It has so dominated discussion. Howard had a good laugh with people and does the same thing. Higher price of coffee, not my first rodeo. People didnt like that. There was pushback on tuition. I was at the conference. You saw people crying. Thank you. I mean, you know, howard has a lot of things going that are not earnings per share oriented, but sends stock up anyway. Full tuition reimbursement. That gets your attention. Arizona state is a great school. I know. Why do you want to talk about it . Credit squeeze, it comes out today with a 225 price target talking about the pipeline not recognized. Theres been issues, patent issue, turning to the sales. People talk about a possible cure for crones disease. That would be a big thing. Those of us who are tremendous sufferers of arthritis believe this could be the holy grail. Arthritis is the baby boom disease. If they can cure this, even ten years from now, well, the stocks going to be higher. Thats the way the ceo of cell gene thinks tenyear horizon. We hope that horrible disease, arthritis could get cured some day. Interesting story to watch. Yes. All right. When we come back, starting the day, the opening bell just a few minutes away. Female announcer dont miss sleep trains 4th of july sale. Save 300 on beautyrest and posturepedic. Plus, pay no interest for 36 months on tempurpedic and icomfort. Sleep trains 4th of july sale is on now. Your ticket to a better nights sleep being able to pay as we go to is crucial for a start up. Deas. Having to fork out a lot of money up front was risky. 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