Today a pair of deals. Endo buying parr pharmaceutical and for just over 2 billion. And potentially a third in the making i can confirm that they have resumed talks around a possible deal. Well have more timely to help, tim cook tells graduates not to live lives on the sidelines while apple acquires a gps startup. The dow and s p just shy of new alltime intraday highs. The dow, as we said about 16 points away from record territory. People wonder if this is the breakout of the wedge weve been watching for so long jim. Its certainly possible. We saw things last week that were really kind of very positive for the market. One, Interest Rates were good. We need them higher because the financials roared last week. The other thing that roared were the health care stocks. We still dont have the transports. I know that i was doing some work on the oil lines on the train lines for oil, with rbn, which is my energy source. There theyre going to be challenged. So we need the rails, but the health cares, the fins stuff that goes into houses why is that important . Stanley works. Leg get and plath, so theyre all breaking out. Im thinking if those retailers report good numbers, well move higher. The dow theorists will have work to do. The transports 6. 5 . They look terrible. When i went over the charts it was rather a downgrade by bush did ksu, the rails really looked tattered. A lot of that is coal. A lot of that is oil not being shipped, just big decline. So that group could keep us. Takeovers could make us. Etsy coming out with first numbers. Be careful. I think the home depot stock didnt even flinch during this decline in retail nor did lowes. Aseena showed me we were over home depot and lowes are the hopes for this group. Target this weekend, brian cornel pulls out some of the traditional packaged goods, cereals, hes moving all in natural and organic. That stock acted terribly last week, and kohls had been up in a straight line. That groo group needs to reverse, starting with urban tonight. I think anthropology. We havent had a good number in quite some time. Target home depot and lowes have been sort of outside of that mainstream, if you will but people are still trying to understand and figure out exactly whats going on within broader retail as we define it. We just dont seem to be spending money. We saw a big breakdown against in pbh. And then went down. There are there are underoccurrence of housen that were policy. I looked at Toll Brothers this weekend, very strong. The housing complex is good, but theres john stump, the ceo of wells fargo saying its a muted housing recovery. How long can we build so few homes . Some of it is obviously zoning but in the end, the Housing Demand has not come back yet, yes the refinance and rebuild and refinish and make your home better trade has been extraordinary. Williams sonoma might be a good tell this week but they were hurt badly by the port strike and said it could be hurt again. And any expectations you have in terms of Housing Starts being anywhere near once maybe it was so beyond what anything ever should have been, it truly was completely false. But were building as many homes and we were building in 1960 when we had less than half the population. Thats a good statistic. I didnt know that. Yeah half as many as 1960 . In the 60s we built far more, when the country was in half. California had just become a state that is passed new york now one fifth of the economy, though its dry there. Seventh biggest economy in the world. A great piece this weekend how the state was uniquely not set up for the water drought. How governor browns father a great piece. Some great reporting lets move on to deals this morning. The first one to chime in on involves altera and intel. New york post reporting talks between the two companies have resumed. What i can tell you is this there were principal to principal talks last week. That means not involving advisers, the investment banks that typically work on these deals, but ceo to ceo or Senior Management to Senior Management apparently alteras board has gotten involved to a certain extent s that said its not clear where these talks are going, according to people who i have been speaking with if you remember, of course as i reported some time back intel had offered 54 a share for altera, which was rejected by the company, and intel walked away. We do have a resumption it would seem, at least, of some conversations, principal to principal principal. Whether that will continue is unclear. Altera has heard from many shareholders and frankly those shareholders, when speaking to me were surprised how willing potentially to reengage but it had not until late last week. Altera does allow for shareholders to act by written consent 121 days after the annual meeting. That took place, what was it last week i believe . Last monday if i recall alteras annual meeting, then you still need 50 days after that. But you can, it only takes 20 of the shares to actually be presented to call the meeting to throw the board out. So they are operating at least with that over them but jim, you do wonder are they serious . Or are they trying to create a fact pattern that would help if they were ever to go to a proxy fight . I dont know the answer. I think the world of the ceo, hes doing a lot of great things but still constrain that centrally their business is still pc related. Altera is a top notch telco supplier, so to speak. If you want to know why your cell phone can have such fabulous video, its because of the Companies Like altera and zylinx. I dont think intel goes down. I think we go higher. Will they be able to stay at 54 they did know they had been a bit higher then came down after due diligence, but more to come here. Of course well update you if and when we get more. Consolidation everywhere. Just too many players everywhere. Youre not kidding. Endo of course agrees to buy par pharmaceutical and then dress barn the parent of dress barn and lane ascena agree to buy ann inc. Theres two other divisions, justice has not been good and some people cause it marreese maurice. You went from prince to i did follow that within. Ascena needs to do this. This is a good acquisition for David Jaffray. I feel like if he can pull this off this is a highend play that they have lacked. Endo is also got to be added to that list in that ever consolidating pharmaceutical area. Whats interesting here you may remember endo came in with the strange bids for sailics, it was stupid frankly. You call it stupid . It was stupid but it shows how i think aggressive endo needs to be or wands to be. 1. 55 billion in stock the rest is in cash. Most interesting, tpg, selling par farm sued cal 1. 9 billion. They took it private. 50 bucks a lair for par. They turn around and sell it three years later for 8 billion. Thats the way its supposed to work. By the way, when you throw in the leverage that they used the returns on this we can figure it out pretty quickly, but lets just say theyre going to be substantial. This is just a fascinating group. If that were to ever happen. There are too many generic plays. The theme is where were overstover, were overgeneric. Obviously this endo is one of these its an aversion endo is an aversion. That was paladin, and then they got together and decided to move entirely to a different place. Endo will go up i predict, because again people want to have players taken occupy generics did well. It was great timing on the tpg. The patent clip was extraordinary, chug just a windfall. Ptgd. We should make the point not the londonbased ptg. Yeah, who are they bidding for today and now word that the fbi is looking into it. The fbi does look into this. I once testified on behalf of another phony bit. You know the and it was 25 years ago, but the fbi is the one that really does a great job on these. Theyre fabulous when theyre involved in securities situations. They get their man, so to speak. Well see how they respond again today. Just fourfold for what this could have bat it three years ago. When we come back apple kreismt. Ceos if message to graduates and mill lane vich bullished and whats behind one more look at the free market. The low to high range on the dow for the year to date is the narrowest ever since 1896 if that holds for the first half. Unbelievable narrow range. A lot moyer squawk on the street in a minute. Its part adrenaline and part adventure. Its part geek and part chic. Its part relaxation and part exhilaration. Its part sports car and part suv. And the best part . The 2015 gla. Its 100 mercedesbenz. Get off the sidelines, that was apple ceo tim cooks message to the graduates at the university of washington today. Saying someone has to change the world, it might as well be you. Take a listen. Graduates, your values matter. They are your north star. Work takes on new meaning when you feel youre pointed in the right direction. Otherwise its just a job and life is too short for that. Sort of echos the stance hes taken publicly on things like laws in indiana, and as well as a bunch of other things. I think you always get this is a very inspirational speech. I just think that younger people need to hear it. I find a lot of younger people are a little too cynical. They may be but i think theres a sense on cook and other ceos in order to attract talent they were they need to stand for something, have values as a corporation, if you will because those are more important to the audience theyre speaking to 30 20 even 10 years ago. I think thats right. The guys who are head quartered in minneapolis, a lot of those companies, target general mills, 3m feel that way to attract new people. But i was talking to mark bennie about this, they are uniquely we will do this for you, if you do this for us we will give this much away. The one thing i would say that tim cook would know if youre in comp sci or comp engineering, you have ton a Computer Science major to be able to crack it out there and be at the top. Absolutely. Speaking of apple and cook last night we got our first look at the new steve jobs movie written by aaron sorkin. The premiere aired knee made men. Its going to shift on the axis forever. Two most significant events in the 21st century, allies win the war and this. You cant write code you are not an engineer. What do you do . The musicians play the instruments. Some say michael false bender looks more like cook than jobs. I think it will be great. One of the things i saw. I threw out the first pitch on saturday night. I had my apple watch in full display. I did not see tim cooks apple watch when he was speaking. Someone had to promote. I guess its just going to have to be me. Bright hinge, i gets its gone . No, no i still have it. It was a promise, but you know the wife says will you put that away . Youre doing messaging, checking your stocks okay. I thought the whole idea was to do it furtively. Adam cheffer is telling me who i should be playing on this thing. She finds this is a new way to get away with doing all the thing that tim cook suggested. No remember he said silence your cell phones and pass the samsungs. You mentioned first pitch. We should show some pictures. This was at the fisties game on saturday night. Yep. And you were tweeting up a storm all night long. Going nuts. This was one of the most exciting things i have ever done. I got to meet schmidty and then i did nick the outside corner. Most people bounce it just so you know. Right before i went out, skipper hale from the debacks, he says youre doing a twoseam he said, listen. Let me you do a twoseam it goes in the dirt you are choked and you will be boozed and you deserve everything that comes your way. You nailed it. Heres chase. I brought chase luck. I had a chase jersey on. Earlier i had a 20 jersey on he saw me in the hallway. He said boy, your loyalty runs deep. I saw you switch. My favorite tweet was when you told the fanatic to own apple, notice trade it. The fanatic was in and out of apple. I said listen man, you dont just hold apple enough already. Thats good form jim. Good form. You are thrilled at that ball leaves your hand. We were doing a lot of highfives and everybody was thrilled. Did they win . Of course we did. Were five straight the longest streak in a long time. Were going out to play the rockies with the worst eratchet. I think were back bigger than ever. Thats the point i made with chase. Thats great tape. Well get kramers mad dash and count down to the opening bell after a short break. Dont go too far. By the time Police Arrive on a crime scene they could have little to go on. A vague description. A single piece of evidence. A partial plate number. With an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. Ibm analytics helps one hundred thousand officers work smarter every day. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade we looked for the best price and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced Technology Solutions, including an industry leading Broadband Network, and cloud and hosting services all with dedicated responsive support. With centurylink as your trusted Technology Partner youre free to focus on growing your business. Centurylink. Your link to whats next. Time for the mad dash. Weve got about seven minutes before the opening bell. Chevron . I thought goldman was a tad downbeat today when they took their oil price down a bit. Theyre going to an outright sell of chevron. John stump bought a lot of stock. Hes at wells fargo, but is a board member. This company mass not gault a lot of stock, and goldman questions how quickly they can do dividend boost. So they pushed that one. But just keep in mind theres still a lot of company, a lot of brokerages, going up and down on the oils with an unsteady group and einhorns admonitions about the frackers continue to churn through the hedge fund community. Not often even in these days when you its always worth mentioning. You may not like the oils but this is a Great American company. Lets move on to another american company. Yelp. Piper says this one is not going to happen. They lowered to 46. Yelp yelp yelp there it is. Its coming. I think the speculation is afteria after yahoo disposes of. Aliblebaba is first. Though theres no plan under way at yahoo to yet separate that out. I come back david. People are still talking about the verizon aol deal and the coming consolidate action among portals and what Tim Armstrong will do. This is a natural property. Grubhub is a natural property, we know about these unicorns to have a vertical where you literally, you know expedia is out there. Expedia is a good company, trip adviser, you could make it with one butting you could travel. Thats kind of what people are talking about. Whoever does that could be able to beat against google which is what everybody wants. They want to stop google. More on google later. Charlie ergen having some interesting things to sea after we taped after our live interview on thursday. For that well have the open bell and a lot more to watch on squawk on the street. Stay with us. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Automotive innovation starts. Right here. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a redesigned cabin of unrivaled style and comfort. The 2015 cclass. At the very touchpoint of performance and innovation. Youre watching cnbcs squawk on the street. A lot going on and a lot to come this week. A big week for retail earnings. Weve covered some of the m amend a. A lot of downgrows, goldman on las vegas sands. I thought the sands was a little late. This is macau. Winn stock has also gone down. Of course petro bra they down very being. We see most people saying neutral things. You know amer i source a. B. C. That has been look with mckesson and cowen downgrades that today, and you have these Consumer Products groups being just kind of maybe on the outs with target and its food group. Credit suite starts with a buy. I think that theyre the winner in the group. Two years is going to inspiring on white way so they can get sold. Yes, and i had management on last week. Jong they have to sell but it may not matter. Somebody makes a big. They have a natural yogurt coming. I think that takes the country by storm. There is the open bell a look at the s p on the top of your screen. Down here the big board, ubs announcing a new partnership, and over at the nasdaq the u. S. Goefl association and fox sports doing the honors there. Altera though the bill its out of the big up better than 6 . Vago was rumored as wanting to buy, consolidate the industry. Cocorvo, the microdeal. That was significant. And xpi an aquirer. Fewer players, better margins. The margins on some of these companies are so much better. Only micron seems to be in the death throes of a battle over dramps. Even there they might deny it. I think this is a halcyon gauge for combinations of the semis that we thought were going to have to happen a long time ago when national semidid its consolidation. Just to reiteration. There were principaltoprincipal talks last week. It doesnt appear advisers are involved. Intel is pretty well versed on how to do m a, but they have at least rekindled the talks after intel was rebuffed with the bid for altera a company that since then has reported a lousy quarter, had its annual meeting on monday and you can act by written consent to throw off is the board of directors. That would be some time before Something Like that could occur if it were to occur at all. Brian sorb mildmannered. Usually hes a gamer, so to speak. First guy involved when i read a fantastic q a on reddit a infirm tiff site that my oldest daughter said, watch this. Brian has a lot of Different Things going in the 3d world, in the smallest semiconductor, that is obviously something that