Solarcity official. Look inside the deal, plus, what elon musk has to said. And china urging with didi. Under the deal, theyll invest a billion. What it means for ride sharing competition. First up into the first trading session of august, s p looking to host its sixth monthly gain with a dow aiming for a sevenmonth win streak. Crude in yul, wti turn nd the worst month of the year, then goldman downgrading. The firm says ek pensive valuations and poor growth are to blame. We know they have not trusted this rally. No. Flat. And yet at the same time, its been a rotational strength. Technology was really strong last month. Now, i dont know if people realize how unusual that is. Technology is historically weak during the summer. You simply do not get the kinds of gains we got. European is supposed to go away. Look at what happened last week. Takeovers, unbelievable numbers from a bunch of the real big cap stocks. Semiconductor consolidation continues. Yes, its possible stocks do new york city but underneath, we had a move in utilities, Real Estate Investment trusts that was incredible. Eit move, but its almost as if the whole group is saying we are going to go a big slowdown, but then the Technology Stocks are saying were going to a comeback. So, its kind of like everybody won. So goldman may be negative and the its possible we do nothing, but underneath, wow, theres a lot of activity. Nasdaq up almost 7 in july. Does that not, does august not portend some reversal, some give back . There should be, but if were done earnings, people can protect. People can extrapolate happiness and i think we are at the beginning of this major consolidation. There was a piece in the over the weekend, journal, about how people like the Technology Stocks from dividend. I think they should like them because theyre merging. I counted 80 stocks in technology that are just kind of out there. Waiting for the marvel technology, right where something could happen. To you know, amd. Micron. These are very cheap. Even after their moves, so im not going to rule out that were not going to see a lot more deals. They just dont need all these companies. Does corvo need to be separate from sky works . Lets get together. They have been typically had high ralluations, so it has been supportive. So theyre being take unders. Look at broad com. Most loved deal there is. Yeah. Those deals go higher. Almost all the companies by the way in the last six months make a deal, stocks been good, overlooking tesla because i dont know. I throw my hands up. Its a great life. Really quick though, dudley saying fed hikes still alive for the year. Markets complacent. Even off of the 12 gdp number. I didnt like that number, but i think dudleys saying the party line, but people want to make something of it. The idea of shotgunning some news into the fed, lets get away from that. I think the fed is saying look, if things get stronger, were going to do something. If things dont get stronger, were not going to do anything and the number friday was off it. Economys back to where a lot of people can complain its not creating jobs. See the jobs number on friday before we nail that one down. Estimate there, 180 after the big 238 number we got prior. Last number was so incredible and you cant believe both parties talk about how weak the economy. Right . Thats true. Both parties. Some of the parties are talking about other thing, but in terms of business, you dont hear a lot of people say you know what . We really created lot of jobs and were going to stick with that game plan. Business investment have been one of the key weaknesses. Theyve been buying back stock. If youre trying to get a job. Dividends. Did you, i mean, the chevron call, its a huge company, by a way, a very good call and the stock was up. Even though oil was down. What does that tell you . Listen, lets put our perspective, our priorities out there. Dividend. We were all doing the math on exxon emotional on friday and discussing the fact that it doesnt work. What, the the math does not work given the numbers from exxon for example. They will have to lever up their Balance Sheet more to support. But they dont have to drip. Cut that cap exto the bone because theres not that Many Properties that really work. Both these companies, lets just give them credit. They always fell, particularly exxon. Too conservative. Here they are. Its kind of like business as usual for them. Impressive company. My hat is off to exxon. Ive been critical of exxon. I thought they werent spending enough. Rainy day spending, paying off. One point, talking about this deal. Its like, the its nothing. Thats an example of what everybody else would say is a gut punch, but not then. Theyve got so much money. Smart guys. Jim mentioned tesla. They are buying solar zls city in the deal ralled around 2. 6 billion. Elon musk, the chairman and biggest hair holder of both companies. Phil has highlights. Still going on in fact right now, somebody is saying to elon musk or asking, how do you rationalize this. You didnt have swren motors buying exxon emotionmobil in th. Hes saying youre looking at this in the wrong way. Well talk about in a little bit. 2. 6 billion all stock deal. Solarcity shareholders will be getting shares of tesla if this deal is aprufed, 0. 1 shares of tesla. That works out to about 25. 37 per share for solarcity. That is a little bit below what people were expecting. Thats why you see the stock for solarcity coming down lower this morning chlts just a few minutes ago, elon musk was talking about this three to fiveyear window that tesla has been targeting as the sweet spot of adoption of electric vehicles and expansion of Energy Storage. Heres musk talking about why this deal makes sense right now. In order for the right scenario to trans pyre in three year, we need to take the action now. Cant take it in three years and have it simply be the right move. It takes time to get there. He did this deal is teslas factory. We were there last week for the official opening of the gigafactory. When we were taking the tour there, we saw the Energy Storage units they are selling to residents around the country. Theyre shipping some of those power walls. They expect to increase those deliveries over the next several years and become a large part of the business. But make no mistake. The model 3 and expectation of selling several hundred of those and the production, thats another part of what he believes this deal makes sense. As you look at shares of tesla and solar city. This deal still needs to be approved by the disinterested shareholders of tesla and solarcity. So musk will not be voting on this deal. He says hell abide with whatever the shareholders want, but also remember a lot of the large institutional firms if you believe the reports, have already indicated those who own tesla shares will go along with this deal and it will likely be approved. Well see what happens by the fourth quarter. Guys, back to you. Thank you for that. Our phil lebeau in chicago. What to you make of this one stop shop clean energy thing . In talking with musk, he has this vision that there will be a huge network of solar power around the country. At some point, were going to be able to generate all the solar power we want from a part of colorado. Hes thinking very big about we will get our lek tris thety. The lack of friction and how were all looking at it as being theres these power plants and maybe they cant be nationwide. Theyre regional. Hes thinking about rooftop solar. 50 million roofs. Hes thinking about the, thats how many there are. Hes thinking about the idea that there wont be that kind of friction. Hes thinking about ten years from now. Now, were not used to that. And im not say iing that like this is a great deal. Im just saying hes thinking ten years out. Zpl wants to empower. This was from master plan. Empower the individual as their own utility. This is the sequel. David cranes nrg. Hes gone. Yes. Come on, please. Its one. Go if there again. Cant help himself. Every time you go there, ill do go there. You know the papers before the papers know things. I try to. Had the same vision and it was too expensive. It was. It wasnt right yet. It was too visionary. Its true. But elon musk is perhaps in a better position because he controls this company and controls solarcity, although again, hes disinterested here. He will not vote in favor. In fact, theyll have a go shop at solarcity for 45 days in which theyll try to find somebody else. If in fact they were to, he actually would actually be obligated to vote the proportion of his shares in favor that other shareholders do, if you follow me. Theyve tried to put in any number of protections to make this appear fire. Lazard gave them a fairness opinion. A bit below the additional range when he filed that 13telling us he wanted to buy the rest. It could be ge, eaten. The guy that makes the box. Isnt this all about lowering their borrowing cost . They have a ver ration appetite for capital. They should. Only getting paid back via the lease. They sure do and the companies i just mentioned, thats just kind of like who would kick the tires. If there were tires. Youve got to have tires to kick, dont you . Youd light up a whole city just you. Musk saying that we are thinking that were looking at electricity very satsically. We believe you have to have these power plants and hes saying thats a pipe dream. What its going to look like ten years from now is very different because were not going to be stuck with a grid. This goes back to that famous Morgan Stanley upgrade two years ago, arguing this was going to be a grid company. Its a grid company. I think people should recognize sometimes, were as jay leno would say, were smalling thinkers than musk and we say, youre kidding me. But the fact that stock deal is up 20 bucks when he did it, hes doing another deal. Secondary that tesla did in may. There are people who made a lot of money with this guy. There are. Hes a visionary. Wehere the vision goes will be very interesting. I think visionaries are jay leno. We need more of them. Why not. Fewer what. Thinkers who really have nothing or just looking at their feet. Right. Did you mention wilfred frost at 1 00 . I did not. When we come back, a closer look at ubers deal and Warren Buffett set to introduce Hillary Clinton at a Campaign Event today. As jim says, today on power lunch, an exclusive with jamie dimon. Thats at 1 00 p. M. Eastern time. Take another look at the premarket dow up six months in a e row, but the first few days of august have historically not been kind. Back in a minute. Im just a guy who wants uber agreeing to sell its chinese operations to didi. Worth about 35 billion. Uber will hold a one fifth stake in the company. Also calls for didi to invest a billion dollars in uber. Now to 35. In four months. Yeah, i dont know. Study thg deal, i came back and said these valuations are kind of among friends. Its kind of well, who i trust valuation. Agree to your, so you agree to mine. Thats right. Just seemed to me, hey, you know what . David, youre worth 50 million if you say im worth 50 million. Just put out these leases. It seems uber says this is very hard country to do business in. We are going to lose a fortune here in some way, i think thats the big take away herement i continue to hear from others who are trying to compete in china perhaps them choosing not to any longer. It is very difficult to do business there. Clearly, there are some multinationals who must do business there and some who have succeeded greatly, but its not getting any easier. And we know ubers been losing money in china. Subsidies and so forth trying to take market share, but youre fighting an uphill battle in china when youre not a chinese company. I remember when white way, they came on mad money and talked about how, we can make plant based meal and it will be so much cheaper in china than the cow milk. Not enough cows in china. Milk cost a a fortune. It made so much sense. Then i went over there. Its like, hey, pay the piper. Its the way the Chinese Government wants things to go. They may ultimately suffer the consequences of not introducing enough competition in their home market, but right now, the move when you speak to people more expert in this, but i listen to them, thats the way its going. We know that. We see it and it just becomes more and more difficult to try to compete there as a foreign operator. People like to partner because theyre told so. Its like, heres my offer. Senator. Right. You dont think it signals a greater unwillingness to go up against some of these entrenched government interests, competitive interests and other countrieses too. It shows maybe shes interested, this is making money. Making some money and that would be something that eventually, some of these people who invested would like to see. Right . Dont you think thats part of the imperative is to become a company that makes money . I think when youre getting in there on these late rounds, the latest valuation, 60, you must be starting to think, okay, going to just keep losing money for how long, especially in china. Amgen, amazon, they lost money for a long time, then people loved them. And they loved them more than ever. Now, its kind of a question of how much he wants to show. Is it . Could they be profitable if they wanted to be . On friday. I think amazon no, im saying uber. I dont know because u. S. Is so hard. I think people forget, san franciscos hard. I dont know, how about if they made the contractors independent contractors, where there were different tax inserts. Ubers gotten away with a positive regime here, yet still dont seem to be making a lot of money. I believe people feel like its a necessity. Like amazon, we come up with ways to believe. We believe. I love uber. I think that people, venture capitalists, they take it, they love it. We inhale oxygen, we love oxygen. Just a kind of not really business, but we take it in. And i think uber has to become more like a business and i thought thats what this was. I thought this was very smart of them. Its like, were going to be a business. Not going to lose billions every single year, we lose, thats not our plan. I thought it was very smart. I thought travis did a good thing. If thats true. Its going to mark a big turn in their evolution. Yes, it sure would. When we come back, look at cramers mad dash. Count down to the opening bell. Take another look at the premarket as we kick off a busy week with a jobs number on friday. Mar squawk on the street from the nyse in a minute. Can an stablished bank move like a startup . Its a question we get from some of our largest banking clients. The face of their business was tellers. Then atms. Today its their mobile app running on the ibm cloud. Across every transaction, the hybrid cloud helps their data move quickly and securely. 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Its gonna change the way the world works. Ok, im telling my brain to tell the drone to get you a copy of my resume. Umm, maybe keep your hands on the controller. Look out ohhhhhhhhhh. You know what, im just gonna email it to you. Yeah thats probably safer. Ok, cool. All right, about seven minutes before we get going here at the new york stock exchange. Start the week off with our first opening bell. What do we got on mad dash . Theres a calm called iotis. This is a company thats been around if for a while. And whats important here that people dont understand is this is biogen believing in their spinal Muscular Atrophy drug, which a lot of people have questioneded. When you look at this move, it was basically because people felt this drug didnt work. Well, theres a loft potential milestone payments. Theres 12 short position. Biogen comes in, it goes up, too. People are quickly saying this could be a great, terrific, new look at that chart. Terrific new iron in the fire for biogen. Now, i think thats a little bit aggressive, but i do point out that once again, when you get anything involving one biotech and another, people get very excited. A milestone. As you talk about with i feel with the bigger. Gilead, jeffrey says maybe they have to spin off their hepc. Cell gene tells you theyre undervalued. In addition to santa fe all the companies are taking a closer look. Its one of the reasons why i dont want to short the nasdaq, so to speak. The biotechs are in play. The semis. By no mean ss this somebody saying you know what, we need lets just combine, no, its a need. Theres a strategic need to have new drugs in the pipe. The other stocks just arent going to move. A lot of deals could happen here. A lot of companies down and out. Not on their pipeline, but on their block. Nice move as you said. Biogen as well. Were going to keep an eye on that sector and a bunch of others. Weve got the opening bell here in about four and a half minutes. Stay with us. 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Bank of england. Olympics start on friday. And then a lot of research today, jim, i dont know if you want to tackle some o