Near the all time high as the start of earnings season i can cans off. Alcoa tonight. Twitter will live stream the republican and Democratic National conventions. This on the day that the stock gets a downgrade from sun trust. You will look here at a live shot of the microsoft worldwide partner conference where they Just Announced a partnership with general electric. Well talk to Satya Nadella and jeff immelt later on. After fridays job report rally the s p beginning the week within a point of the alltime closing high five points from the intraday high. We head into the unofficial start of earnings season. Alcoa set to report. What a day to come back. Tgs rejuvenating. Take a week off. Im thrilled for the opportunity. Thank you, cnbc. Italy, amazing. You have a full week off. Okay. It was hard. You know. Without you. It was hard. Dont do it again. It was frustrating not to check in. Didnt check in. I will say this. Fridays rally, felt like what the market used to be like when we made new highs. It was led by j j, 3m. The laggards came up. Biotech. Even the banks for heavens sake with Interest Rates down after momentarily spiking. The banks set up so low ahead of earnings this week. You may have something going here. When i see a Union Pacific breakout they arent doing that well. When i see the overall tenor of a lot of big cap stocks going up, kimberly goes up, clorox, a new high. The utilities didnt even synch. It has a better one. Everybody else, the noises drown out. My big worry is boeing may not have a lot of orders. They said it was pretty much in line. Thats the only area im concerned about. That doesnt matter. Alcoa will talk and aero space is key for them. Are you looking for what jim paulson calls a breakout in optimism after the brexit loss is reversed and the jobs. The earnings recession could end this quarter. I dont know where that comes from other than perhaps the dollar not being as strong. I think what happened is if you go back we had redemption monday. It was right after brexit. It was the final exhaust. Everybody wanted to get out and has gotten out. It was one of the ten worst days for redemptions ever. That was the signal that, okay, who else could throw in the towel . Yet there are Interest Rates, the tenyear is going by procter. Thats one of the keys thus far. Brexit is low Interest Rates for everyone forever. Yeah. According to the latest statistics we have 14 trillion at negative Interest Rates. Thats bonds. Obviously you have the entire swiss complex. Most of germany, japan in negative rate territory. Also corporates. I noted disney sold the tenyear bond at 148. My point is on the stock market how in the world, 1. 48. Alexander hamilton working . Thats crazy. Disney borrowed money at 3 for 30 years. The mouse. Founding father of disney. Donald duck was the third signer of the declaration. Clearly that was the case. I dont know where disney will be in 30 years but people are happy to get 3 a year that they will be here. I guess espn wont cause a revolution. It wont be like the south succeeding. Apparently not. I dont know if there is a link in the future. What does that make a Utility Company . Whats duke . Dominion. These are sovereign states, too. This is nuts. The yield will continue. I guess my point is how much of this is a function of where am i going to put money when so much is negative yielding or disney can borrow 148 over ten years. I have to put it in the stock market. What was i doing losing money for clients. Is anybody paid to run money over there and lose money . Im down less than everybody. If youre a bond fund, what am i supposed to do when you want to reinvest. You hedge the currency. Or buy white way for a huge price. Well talk about that. We mentioned you that day. We said somebody would like the deal. Really . Sp. Yes. I have to tell my daughter. David asks a lot of questions about price. Today the post argues pepsi was interested but balked at price. Yeah. We did have it that day. The cfo indicated pepsi isnt interested in pursuing large deals. They got a good price but others believed General Mills would have been interested or might be. I cannot say they are. General mills didnt have a good yogurt quarter. That was the only spot in the whole Conference Call i read at midnight when my daughter was asleep. The only spot disappointing. For General Mills which is also at a high multiple. David the entire group. Wow. Its the only company with double digit growth in the area. Exactly. When i look at the number for clorox, at the p. E. , it reminds me of microsoft in 2000. You have incredible p. E. S but, look, they have aaa Balance Sheets for the most part, a lot of them do. Look at clorox. Its a 1 growth at 38. Things are upside down. I know it shouldnt be as it is. But at the same time if you listen to programming at 10 30 on friday after brexit, that friday. You shorted clorox. You thought it was the end of the world. You shorted a bond at a wbad price. Are we exiting the market for an alcoa market . Thats tough. Starting to deal with real earnings. You have the Commodity Prices are up all last week. Howss it looking these days . Put down a hundred thousand euros. They dont make mortgages. The rest is done on a cash basis. You go to the oldest bank in the world. Im just shopping for a bank. Bank shopping over there. We have mentioned it more in the past week than in a long time. Could be a bail out, bad bank, good bank. That bank in sienna is gorgeous. Yes. Somehow italy is able to borrow 1. 221 over ten years. I remember there was 7 rnt and you talked about a possible failed auction. By the way, do you remember corzine, what he did there . He was right. That was the right time to buy those. He didnt realize the leverage part on the balance sheet. The actual bet at that point, what was a play. Didnt work out. Might be playing poke mon go now. We dont know. Meanwhile, microsoft and ge announced a Cloud Partnership today. John ford is live from toronto. Hes got a busy morning. Hey. Hey carl. Its a big deal for microsoft in particular. What ge is announcing here at microsofts Conference Today is that predix, their software for the industrial internet will run on microsofts cloud. Thats not exclusive. It was already available on amazons cloud and or ra on ora cloud. Now microsoft has the opportunity to use that to build up their overall enterprise adoption of the cloud. From ges perspective, predix is the center piece of the strategy which yields 5 billion in revenue last year. The digital strategy. They are expecting by 2020 it could yield 15 billion in revenue from ge digital. This is important to them. Microsoft wants to work with ge not just to bring predix but to build in hooks to office 365, dynamics, cortana, microsofts other cloud offerings so the Industrial Partners ge works with on this digital project go over to spend more money on microsofts cloud. I will sit down with satya and jeff in an hour. Dig into those and other important issues. From whats happening overseas. The macro environment, ge capital no longer designated as systemically important financial institution. Lots of changes. They have opinions on globalization. The challenges businesses face throughout the year. It should be an interesting conversation. For sure. See you in a bit. It comes a few days after ge set multi year highs. Its important to note even though boeing may not have a big book to build you have to recognize the air show that orders may not be skyrocketing. The backlog is big. Thats important for ge with a huge backlog number. Predix is basically a system that says you are about to break down before you break down. This is the industrialization digital which is not just words. No. Its connecting industrial machines to the internet through the cloud. Thats basically what we are talking about here. What did you do . Looked at the quote in the press release. By the way, you can read the first three paragraphs if you are a layman without any understanding as to what they are talking about. Thank you for a clear quote in there for people like myself who have only a keen sense of the obvious. It begs the question who may have been in a position to get this business from ge creating industrial machines and the ability for them to connect to the cloud. You would think ibm or others would be interested in being in the position microsoft cleary is now in. This imperva is for sale. Ibm has to say, listen, well stake out cyber security. There has to be something ibm does that says, listen, we are back. They want to say they are back but their stock says they are not back. People were unsure about linked in, including bob peck who talks about twitter going out at 2021 if you use linked in valuations and takes it from a buy to a hold. A shrewd move. Highly unlikely. Seeing a deal this year. Well talk this morning. Hes a downer. You also downgraded yahoo i saw that. He wants to make made me unhappy. Did he . They were two things i want to talk about. We can. He had interesting points. He took the mind share. He has it. Now that jim is back well get his take on the white wave deal. Take a look at the premarket. All time intraday high. We are not far away. More squawk on the street in a minute. And can you explain to me why you recommend synthetic over cedar . Super food . Is that a real thing . Its a great school, but is it the right the one for her . Is this really any better than the one you got last year . If we consolidate suppliers whats the savings there . So should we go with the 467 hoepower . Or is a 423 enough . So should we go with thegood question. You ask a lot of good questions. I think we should move you to our new fund. Ok. Sure. But aryou asking enough about how your wealth managed . Wealth management, at charles schwab. Denon erkdanone is an extr partner for us. Both of our companies have an aligned vision that the consumers will increasingly seek healthier, more Natural Organic options that are more sustainable for people, for the planet. We both have aligned our companies and portfolios against the vision of the consumer. Whitewaves greg ingalls along with Emmanuel Faber after danone agreed to acquire whitewave for about 10 billion in cash. We have talked about the name. Its one of your favorites. We have known it might be a takeover candidate. A year passed since it could get out of spinoff jail in terms of the tax ramifications of a deal after it was spun. Here is the deal and the stock. Still slightly. In fact, its one penny above where the bid is. There continues to be at least some belief. Although relatively small that you could get an overbid. A 300 million break fee. A buck 75 a share. Do you think there could be a potential buyer . Lets x off pepsi, give them what we heard on thursday. In this sector, mondolese isnt done with hershey. If they are, they should look at this. Now, candidly as i said when we talked about why we have over many months, its expensive. Its got debt. It is expensive. A lot of firms had sells on it at one point. To find double digit growth in an area where many people from my era do not understand the power of soy milk, almond milk. Plantbased foods will be the biggest thing in china because they cant afford if you hired a banker and hershey says no. Hershey said no already. You may be right. We may hear something. Dont expect to hear anything this week. I dont know what theyre doing. Its been a couple of weeks. What about General Mills . General miller should do it. Really . Also you run the risk of getting in a fight with danone. That doesnt mean theyll back down. Look, this is the area where i think General Mills, if you look, did it tip this quarter in to be more natural and organic when they lose green giant and do more with some of the bars. They have a couple of nutritious bars and they have obviously got annies. This tips it so General Mills is the first natural and organic, major old line food company. Do you think the choices are getting limited, running out of ideas . They dont want to sell but everything at a price. He has to be a seller at some price. The stock was up 10 on the day of the white wave deal. Stocks were trading down with whole foods. The kroger of the world went natural and organic. Not to get sidetracked but the sector is good. When you see walmart, you go in. I remember going to walmart six years ago. I said i would like to buy rice cakes and they sent me to trice krispy cake aisle. Fresh as the day it was canned. Walmart, costco. They are all natural and organic. Cereal had its first growth quarter in years. But thats because even cereal got a little bit more natural and organic. General mills took out the artificial coloring out of trix. And the High Fructose Corn Syrup out of things, too. Kelloggs has a cereal restaurant in new york city. Changing times. There is only one kind of granola worth eating. What kind . You tell me. The kind your wife makes come on, man. Dont screw it up. My wife doesnt watch. Im fine. When we come back, well count down to the opening bell. Also, Satya Nadella of microsoft and jeff immelt on the partnership in the cloud. Another look at the premarket. On twitter today. Lowering to our 18 dollar target. M a not likely in 2016. Why . He thinks its inevitable. Jacks first year, not good enough. But estimates are reasonable. Not overly conservative. They cant do it. He says Second Quarter growth is challenged. New products. Yet to reignite user growth. Engagement from the new users appears lower kreelting a slight drag. Says it will be taken out wu not this year. Ever since linked in. 32 times. 56 cent estimate for the year. The rally is based on linked in thinking that the last property out there is twitter. It probably is. At the same time and microsoft stock isnt down since they bought linkedin. I am more positive than peck. I think this idea that because it is jacks first year and they wont sell. That resonates with me. The stock is up really on takeover chatter. Right. It does feel like we got more to come in technology. O david, a lot of the Companies Involved with apple parts could see consolidation. Watch nvidia, this is graphics. If i dont mention nintendo go im an idiot. Apparently. Have you kids found it . No. They are both away without devices, thankfully. They are in device prison. No, they are not. Theyre very happy. Doing kid things. Did you ever hear of that . No. Not walking in traffic with the phone in front of you. We were in the colosseum looking for things. People are hurting themselves with the pokemon thing. To heck with this. We have the opening bell coming up after this. Welcome to opportunitys knocking, where selfproclaimed financial superstars pitcyou investment opportunities. Ve got a fanstic deal for you gold with the right pool of investors, theres a lot of money to be made. But first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. Yore not even restered; im done with you i can. I can. Savvy investors chk their financial pros background by visiting smartcheck. Gov in new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. Like in rochester, with worldclass botox. And in buffalo, where medicine meets the fure. Let us help grow your companys tomorrow today at businesny. Gov the opening bell brought to you by powershares. Leading the revolution. You are watching cnbc. Live from the Financial Capital of the world. The opening bell in 60 seconds as we kick off a busy week. We look to open above the s ps all time closing high. We have earnings season beginning tonight. There will be fed speak all over the place and more data. Cpi and ppi later in the week. The more we hear that the more you hear the chatter after the great employment number. Will the chatter be overwhelming . I think what will happen is if we wow, i have to tell you. If we hear more stabilization there, well pick them up. Especially if london cuts, we could take it up. Its above the highest level its been post brexit. The u. S. Markets made up for the losses late last week. Lets get the opening bell. S p at the bottom of the screen. At the big board it is spo logistics being named the Fastest Growing company in the fortune 500. Over the nasdaq consumer products. Helen of troy doing the honors. Brad jacobs has been on mad money. It is a rollup of trucking and logistics. Its taking down a lot of debt. It didnt work for a long time. People are fired up now about it. S p, 213431 is half a point away from the all time intraday high. You want to get the. 72. We are essentially right there. Well see if we make it official in a few minutes. Its been a long time. May 20 of last summer. Go back toen ja. Go back to the first week of february. Lets forget about sell in may. January, election year. All of that stuff was soporific pablum. Pablum apparently. There are a number of months left in the year. Bring me up short my first day back. Well see how we conclude. We have an election coming. Donald trump is soliciting ideas over the weekend. Twitter this morning as we talked about. Got a live stream. I have a secret plan to take over the world. You are referring to a tweet the other day saying working on top secret tesla master plan part two. Hoping to public later this week. What does that mean . Take the stock to 220. Hes got a master secret plan you dont tell anybody. Thats the whole idea. Its got to be secret. That was pretwitter which, by the way, is done. Stick a fork in it. You dont tweet about the secret plan. Do you think they will find out who trumps running mate is from the real donald trump . How is that not worth more . Well, because twitter isnt run well. I dont know. These things are being done on twitter. It is a Communications Tool unparalleled in a lot of ways. Doesnt seem to add a lot of new users. Like oxygen. Just because you breathe it doesnt mean its a good stock. Right . 2137, jim. If i told you the night of brexit wed be here in essentially two weeks would you have believed me . No. I got off the plane at 3 00