Hillary clinton. Got rumors of two potential deals swirling this morning. Chemicals and tobacco in the spot light. Well put a dose of reality on both. Apple mac users being targeted by hackers with ransomeware and how the company is handling that problem. The dow coming off its third consecutive week of gains closing above 17,000 for the first time in two months. S p just shy of 2,000 friday, closed at 1999. 99 as china said it would target Economic Growth between 6. 5 and 7 . Some talk in china about cpi targets around 3. We know thats more a political chan nick thing. Exactly. One thing that happens out of china, we believe everything they say. Our country can say these things. They say theyre just making stuff up. Target, 6. 5 to 7 , and we believe them. The coal stocks go up. Steel stocks go up. Iron ore. Will you give me a break . Were in an era of where a lot of the stretched names whether its valet or cliffs natural or u. S. Steel, or a seadrill are going up. Its like the froth here scares me. The froth in those names. Theres no froth in the big cap stocks. The froth in every oil company that raised equity and how far theyve gone up, i dont trust them. They dont have bases. If you want to go back and buy stocks on this weakness, dont buy the stocks that have no base and went up like that because people felt like everything is over. If you look at the sevenyear curve, if you look at the sevenyear curve for oil, it hasnt moved. Its still you can get oil 45 bucks out seven years. Yes, we have had a remarkable move off of oil, which has triggered a lot of this. The Chinese Parliament triggered some of this. Dont get too ahead of yourself. What happens is as oil goes up, the futures get sold again because the Oil Companies need cash. Wells do get opened. Its been a remarkable cessation in drilling, but dont get too excited about the stocks that have been hammered. Still more bad news to come on the Balance Sheet front for many of these producers. Yes. We talked often about those who have raised equity. Im sure theres more equity raises to come. Definitely. And some bankruptcies which we have yet to see a wave of. Were not talking about the mega caps or the large caps. Were talking about small to mid cap. But not insignificant. Everyone can draw down the credit line. If you look at chesapeake, chesapeake is up 5. Natural gas was 1. 66 on friday. Thats much lower. Some of this is warmer weather. Thats back to 1999 levels. I think people will start saying who has more oil . Who has more gas . Mcclendon was trying to shift chesapeake towards oil. He wasnt able do it. Its a natural gas company, and that stock is up gigantically. More broadly on commodities, you guys mentioned iron ore. Holy cow. This is the biggest gain going back to 09. Youre saying the supply cuts and telegraphed cuts in Chinese Labor is not taking hold . Up 16 , iron ore up 19 . No. Thats a big short cover rally. I think copper is doing a bit of a peak here. Thats been up for days. Watch alcoa, aluminum has not kept pace yet, but that would be next if you think iron is real. Theres a big throw in the towel or maybe profit taking trade for everybody short all these heavily indebted oil, gas, copper, mineral companies. Once you got their covering done, i dont know who comes in and buys. A lot of things we were worried about earlier in the year, high yield we talked a lot about. European banks we were worried about. High yield recovered dramatically. Yes. Theres been a big rally in that market. Thats important. Certainly because it is also seen as a proxy more often for the equity market than the actual bond market. It also reflects the ability of companies to do a lot of different things. Its not just about energy. You have that going. We dont seem as concerned about the european banks, though we are awaiting for the ecb to make its move this week. A lot of negative publicity about negative rates. February 10, february 11, february 12. That was the bottom. We thought Deutsche Bank would have problems with the converts. Deutsche bank came out saying well buy back 5 billion. Heres something interesting. What was the exact bottom during that period . What occurred . Quiz. Ask him. Hes better at quizzes. What occurred at the exact bottom on that thursday on february 11th . What . Jamie dimon bought 500,000 shares at 53. 14. Take a look at what that stock bottomed. Its a little eerie. Perfect. He cant flip, but that was the bottom where he said, wait a second, were in much better shape than people thought. I looked back, spent all day yesterday looking thinking what is metaphorical for this moment . Dimon said banking is better than we thought. February 10, we found out hillary got soundly beaten by bernie, but Deutsche Bank said well buy back our bonds. I think that was the end of the credit crunch period. Since then, weve been straight up. I dont know if thats right. We have the political quotient to consider. A debate last night. No pause in the harsh rhetoric between candidates. Our chief washington correspondent john harwood is in washington wrapping up a busy weekend where he sat down for that exclusive with Hillary Clinton. Carl, lets run through the results over the weekend. You had a split verdict in both parties. On the republican side, donald trump won the biggest contest in louisiana and kentucky. Ted cruz had wins in the caucus states. Rubio won in puerto rico. Hillary clinton won in louisiana, biggest single delegate haul that day. Bernie sanders won in maine, nebraska, kansas. Look at the delegate race, donald trump has a lead over ted cruz. He has 395, about a third of what you need to capture the nomination. On the democratic side, Hillary Clinton has a larger lead if you count the superdelegates. If you take those away, its a closer contest. But she has a clear lead and a path to the nomination. I sat down with her in detroit and asked her when why she designed her tax plan she set the 4 tax at the 5 million level. I have several proposals. Number one, i would like to apply the buffett rule on anybody a million or more. So we avoid what Warren Buffett rightly points out as the anomaly and unfairness of he paying a lower tax rate than his secretary. I have a 4 surcharge on top of income at 5 million because i want to try to stop gaming of the system. Were going after where we think the real money is follow the money. The tax system has been, in my view, not effective in capturing money from people who are very successful. We need to do a better job. Follow the money. That is Hillary Clintons guiding principle in her tax plan. She doesnt go after as much income as Bernie Sanders does. Very populist race for the democratic nomination. Hillary clinton has a lead in michigan and so does donald trump. Front page of the times today tries to argue that Donald Trumps victories over the weekend were uneven. His opponents are beginning to get some traction. Do you buy that . Yes. The question is whether its enough traction. You need to see somebody change the path that this race is on. Donald trump has got an advantage. Once you get an advantage in a race like this, if you keep winning especially when the delegate contest turns to winner take all as it does a week from now, you can be unstoppable at that point. Michigan is important. Can somebody stop donald trump there . Then next week can marco rubio hold florida . Can john kasich hold ohio . If they cant, and if trump wins, this thing might be over. John harwood in washington, thank you very much. Jim, we havent had you in the past few days. How have recent events colored your views of the market . Once again this election is more set in the sense that hillary, i listen to what she talks about for taxes, people say thats more business as usual. I think shes gotten more strident to fend off bernie. Sanders. When it comes to the republicans, theyre still not talking about anything that would necessarily impact the stock market. A trade war wont impacts the stock market. Hes been saying it from the beginning. Yeah. But the likelihood of his nomination is bigger than it was at the beginning. I just think as everyone theres been a parade of people on this morning who refuse to say whether they would be for him republicans, if he got the nomination. I just think this market in the last few weeks has been trading up because we have a better idea who will run. I still think that cruz has a shot. It matters that we went in with certainty, and the market is saying that Hillary Clinton will be the president. Thats one of the reasons why its been doing so well. Is that so crazy . National polls show her with the lead over trump. Those things are virtually meaningless at this stage. Yeah. Theres a lot of yards to go between here and the end zone. True. But if you go back to again, go back in the way back machine to february 10. Thats when we didnt know who would be republican and democrat. Thats the bottom in this market. Now as long as we get certainty even if trump surges in the poll i dont want to say we know where he stands, there is a daytoday element of where he stands. Plus it is an entirely new race, the general. I do say as much as the media would like to say Bernie Sanders is very much in the mix, we get a sense that hillary is way ahead. Hillary is regarded as being fine for the stock market. Fine. Fine aint so bad. Fine. Fine. Something investors will have to think about more over the next few months. Remember, it was not fine on february 10th. On february 10th, sanders was in the lead. Not fine. I think its fine. When we come back, apple staying on offense against the fbi. This new argument, well talk about that. And the ceo of anthem, joe swedish, sits down to talk about healthcare, obama care, drug prices. S p break even for the year. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. A couple of stocks moving this morning on various reports of large deals. Well see. Lets start off with bats, British American tobacco and a report in the telegraph that says that there may be something going on there. There isnt. There is nothing going on right now between b. A. T. And reynolds. B. A. T. Owns 42 of reynolds. The report cites the possibility of a center view been hired by b. A. T. My understanding is center view which advised on another deal, which b. A. T. Helped, buying up assets leveraging up to do that, owning 42 of the combination still, they did bring a banker on from ubs quite some time ago from center view who followed and advised b. A. T. That does not mean that theres anything going on here. In fact, there isnt from what im hearing at this point. It doesnt mean strategically that eventually you wont see a deal. I note a jeffries note that says it seems almost inevitable there would be some sort of end game consolidation in Global Tobacco over the next five years. Thats more the point, over the next five years. Right now reynolds is trading at 22 times earnings. Not an insignificant multiple. B. A. T. Has leverage on its Balance Sheet already. To get to a number that would make sense, they would get to a leverage number that in this market seems too high, 5. 7, almost 6 times, and foreign exchange. The fact they would be buying u. S. Assets with currency coming from other markets that are not doing well. For any number of reasons, a,ing theres no going on. B, it doesnt make sense right now, and c, it makes sense that this could happen in the future. Were in a new era where the people who write the stories dont have to correct themselves. There will be another era where a person will say i wrote this story, it didnt happen. The story was more rumorish. You dont do rumors. Its easy to rumor. Its easy to rumor based on some guy getting hired. Okay. Theres a giant german chemical company. Yes. That is supposed to be in talks with a giant american chemical company, seems like we cant put a stake into that one. Bloomberg late on friday reported basf was weighing counterbid to break apart the dupont dow merger by trying to make a bid for dupont. The journal says the same thing, they have been considering it for weeks, a counterbid. They also say the chances of an offer are low. Again, i dont have reporting on this one. I would simply say having followed this area for so long, its hard enough to do a cross border hostile. But to do a cross border hostile to break apparent an existing deal, where theres a 1. 9 million break fee, and some antitrusts as of late, if thank you dont want it, look what United Technologies was able do in terms with honeywell. We got the background of the merger last week. We think one of the companies referenced there was basf. They sniffed around dupont, as you expect they might have. To break apart an existing deal, antitrust risk, doesnt happen very often. Thank you. When i read this, i know it would make sense. Basf looks a lot like dow. If you felt that dow and dupont should team up, you can understand why they would do this. Dupont is a major american company. Basf is a major european company. Our country will not accept this deal. This is an alleged breakup that will not happen. People should buy dupont because they think the earnings are coming back. I think breen will break them up into three companies, this is dupont dow, it is terrific. Do not buy dupont because you think basf will bid. Its easy to talk honeywell did bid. They had an absolute proposal and talks. Theyre going to win. I just dont want people hurt. You are buying dupont at 64, buy it because you think the earnings power is there. Please. Dont buy it because you think something good will happen. A lot of stories swirling in m a. When we come back, well get cramers mad dash. One more look at the premarket. More red ssquawk on the streeta moment. Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Thats why i run on quickbooks. Details. I use the payments app to accept credit cards. And everything autosyncs. Those sales prove my sustainable designs are better for the environment and my bottom line. Thats how i own it. We believe in the power of active management. Management, by debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Man, its monday. Its a mad dash. We got about six and a half minutes before the opening bell. Ubs goes hold to buy wynn. I wish it looked more like this. The numbers are done going down. The numbers can go up. Steve wynn has done a remarkable job. I would say on any pullback, numbers are so good Going Forward you want to own it. I wish you could see, this is up from 50 to 80 in a straight line. Right. So the call is late. David, the casino stocks have bottomed, whether its wynn. There you go. There you go. Thats straight up. As this comes down, it will get buyers. The casino numbers for macau the last month are quite good. Were beginning to get easier comparisons. Theres a lot of easier comparisons coming because of the dollar or china that will make it you wanted to buy stocks that you hated. Wynn. Steve wynn is back. The numbers are good. Its macau and to your point these are comparisons as this year moves along. Yes. People have to understand, i know it seems a losery. Those compares were down last year. No, market doesnt look at that. They say theyre doing better than last year, lets buy. As the stock goes to here, you want to be a big buyer. There it is. More coming up on squawk on the street, i including that opening bell five minutes from now. We got another one. I have an orcogram for an owen. Thats me. You should hire stacy drew. She wants to change the world with you. She can program jet engines to talk and such. Her biggest weakness is she cares too much. Thank you. My friend really wants a job at ge. Mine too. Im a wise elf from a far off shire. And sanjay patel is who you should hire. Thank you. Seriously though, stacy went to a great school and shes really loyal. You should give her a shot. Sanjays a team player and uh. Youre watching cnbc, squawk on the street. The opening bell in a few minutes. Futures lower after stocks were up three weeks in a row. Vix at the low of the year. Oil best week since august. Jim stubbornly says watch out. Youre not a Firm Believer in a big rebound in commodities at large. No. I think we may have reached do the m bottom in a lot of commodities. Theres so much money waiting to invest in oil, every time they do a deal you look at the marathon deal. That was one of the great trades of all time. I will point out that the whole stance of what the fed is based on is a fed being on hold. Commodities are not going to continue to rally. I dont think they continue to rally this far. I think were seeing a bottom in china, bottom in oil, bottom in iron ore and copper. This doesnt mean we suddenly shoot up. I dont want people to come in here and say its time. Time to start buying freeport. I think its not time to start buying freeport. The time to start buying freeport, three weeks ago. Chesapeake, too . No, its 1. 66. It moved from 2 to 5, the stock. Be a nice trade. This is different from exxon. I like exxon. I think exxon can go higher. Any of the high qu