The companys outlook misses analysts views. Shares of the chinese internet nosediving after hours. Twitter, the temporary Ceo Jack Dorsey under pressure as user growth could fall short again. It was an ugly day on wall street yesterday with the dow, s p, and nasdaq ending lower, a lot of it having to cowith mixed earnings. Keep in mind of the companies who have reported earnings, 76 have reported its above the mean estimate. Taking a look at futures, were in for a potential rebound. The dow up about 17 points in premarket trade. If you take a look at the u. S. Close, yes, i as i just told you stocks ending lower on monday. The dow jones at 17,440. The s p 500 dipping below its twoday moving average. Not a great sign for technicals about 0. 6 and the dmakz which has been powered by four main stocks, some of those momentum and high Growth Stocks coming off their high os testify day including social media and twitter, losing 2. 3 . We saw the nasdaq moving lower by around 1 . Ale though still above 5,000, the key level that traders watch. When we take a look at markets, yesterday, a down day for european stocks. Perhaps thats where u. S. Markets are getting their cues. Xetra dax. The cac seeing it. There you go, the ftse 100 up around 100 points. This as the pound is strengthened as well. Absolutely. We want to take a look at the bond markets. Youre seeing that treasuries were weaker overnight and they still are weaker this morning with the yield back up to 2. 26 but still not a huge move from yesterdays 2. 25 . Finally we saw yesterdays boon preess pretty much up since the selloff. This morning sitting at 73 base points. The gilt yield. The earnings reaction quite a strong one. Were up by 0. 2 . Changing hands currently at 1. 5588. We get the boe meeting next week along with the inflation report. The dollar is making a little bit of headway this morning after losses in the last couple of trading sessions. Its even higher than the safe currency, the yen. It shows that Risk Appetite is back just a little bit ahead of that fed meeting. The euro dollar off by a quarter of 1 back to below 1. 11. And despite the reports of the 50 yuan by the pboc the largest liquidity session since july. Meanwhile the chinese regulator is investigating what it calls, quote, sharedumping incidents that occurred on monday after the shanghai posted its biggest oneday drop since february of 2007. One of the reasons they were selling off specifically on wall street. Whats behind todays move to the downside. Lets get out to sri jegarajah. Hi, is re. Hi seema. Compared to where we closed tuesday to around where we stood yesterday, we were down by 8. 5 at the settlement on monday. Down, an extension of the declines we saw on yesterday. Only i say only, by 1. 7 . So relative calm has seemed to descended on the market. The losses appear to be limited by the fact that beijing has once again reaffirmed its commitment to buying stocks. A as you mentioned, the pboc said theyre pumping more liquid liquidity into the markets as well. That seems to have stemmed a vicious decline in the market. We have not seen a preet of what we saw in the afternoon session of what we saw yesterday. Mind you the morning session was an ugly one. More than 1,500 listed stocks fell by their daily downward limits of 10 . So it was very messy. And i think whats happened here is that the market now expects whenever you see a disorderly decline, the government to step in to intervene, to backstop the market to bail out the market. This has created something of a dangerous and risky in terms of the authorities and their reaction to the declines that we are seeing in the market. But if there is a saving grace here we havent seen much of a contagion effect in the broader market. The hang seng up by 152 points. Stabilization at the close there up by almost 26 points. On the performance in Southeast Asia was the jakarta composite. Thereses about currency market and volatility there as we get closer to the fed and normalization and that spilled over into the stockmarket. Something of an easy calm i mighted a, has descend. You and i know with leverage comes high volatility and i think were still in for declines in the region of 5 to 10 before we see a bottom. Very hard to call in this kind of environmental. Absolutely. Sri, thank you so much for that. The major u. S. Averages logged their first fiveday losing streak ending near the lows. Our next guest says several factors indicate that now is the time to sell the market and that guest is carter worth head of Technical Analysis at cornerstone macro. Carter, i just wonder if you ever look at history and the extent that very few stocks are driving the small gains that were seeing on the s p so far this year. Whether thats a good indicator that now is the time to sell. Well thats just it. Yes, one of the principles of how a market moves higher is that there are individual components in the market that are in a position to move higher and we have a very clear circumstance thats now many many months in the making which is to say we have one very strong momentum name some of which were just mentioned on the program, things like google and netflix and amazon and facebook. Visa starbucks. Theyve been big growth names that are fully exploited. Meaning Great Potential but much of the potential has been exploited and therefore can we count on names like that to take the market high e. Presumptively, no. Theyre probably in a position to rest to not help. Too, we have heretofor markets. And we have plunging new lows. So dwhom we look to to take the market higher. Very, very weak stocks that are not Getting Better getting worse, strong stocks or here to for strong stocks. So the parts that come pose the whole would suggest that the whole is not in a position to move higher because there arent any parts that are in a position to move higher. Yeah. The narrow leadership, specifically in technology has been a concern. Ite something jim cramer has been talking about. He coins it Fang Facebook apple, nazsdaqnasdaq, google. It was the front page of the newspaper yesterday. I wonder if the fact that these f. A. N. G. Are still above they average that technically the stocks still look strong and are poised to outperform. Sure. Theres too much of a good thing in the sense that what makes an ideal situation is a sorts of northeast by steady upward climbing trajectory which is therefore sustainable. If someone thinks of a disney among other names youre quite orderly, but when you become euphoric and too far above your trend lines whether you like the 50 or 200 or 150 in our case then the principle of exhaustion comes into effect. So those stocks are not like throw help the market. In fact, as they pull in theyre likely to hurt the market, so we dont have the fuel, if you will to to really move the aggregate. And so it would have to come from the weakest names literally reversing, like slamming on the brakes and Energy Stocks start coming up. And certainly global names and material names like steel and aluminum thats a very low odds bet. You know, if we take a look at the dow, carter were looking at 50 of stocks on the dow now trading in correction territory including intel. Many of the energy names as well. Is this a bearish sign for traders Going Forward . Right. That gets to the principle of all this in which we have a breadth problem. Its such a key elnt many. Its the highest complement you can say. So and sews great breadth of knowledge. Breadth is everything. Its been in question for the better part of 12 months. In fact, if you look at the s p over the last 12 months, june to eun june weve made several highs. Theyre still trading above their key moving arngs, whether its 150 or 200. So thats just it. We have a breadth problem and breadthth as an indicate kerr be early by quite a bit but it cannot be late because the parts come pose the whole. Look. It doesnt mean you have to crash. Nothing like that. It does mean, we a clear moment of asymmetry, limited upside we would argue. Unknown but plenty of downside. Carter at the moment you say sell stocks sell the market. But at what point do you want to buy back the market . I mean is it when china stabilizes . Is it when commodity stabilizes . Whats got to be the trigger . Thats just it. Theres no known trigger. What you want is to be sure youre not first. One of the oldest is not to buy stocks. Im tempted all the time. Wow, that one looks cheap. Wow, it went lower again. Let me buy some here. But what if one tried that just six days ago in six energy names or ten. Theres no timing element to Say Something is down so much its got to stop. Stocks can go much lower than the imagination will allow just as on the upside when they get pair a bottic they can go much higher. The reciprocal of great runups, we see thaw in china now are great implosions. So there will be a time to buy weakness in certain Industrial Energy commodity names but we think its very early and we think also at the other extreme in the buy fur indicated market its time to reduce exposure in some of these most extended of names. Weve been keeping a closer eye on china, how vulnerable are they . Is there any korg relation when you look at the technicals . Theres certainly a correlation to the industrials that are tied to whats going on in the global scene, the commodity scene, and energy. More idiosyncratic operating businesses in the Industrial Complex in the u. S. That were thought to be lets say, not exposed to whats going on in broad global commodity and specifically energy markets. It turned out to be quite exposed. Thats just it. Theres no sign that the route we know in shanghai is over. In fact, theres great precedent for what one calls boom bust, and echo. Now were having this next sort of what did you just say . Sharedumping incident. What a great euphemism that is. Thats called selling. Thats what thats called. Theres more to come surely. Carter pleasure to have downthe show here on worldwide exchange. Thank you. Carter worth, head of cornerstone macrowho says its time to sell the market. We talked about technicals. Lets turn to fundamentals. The fed is expecting to meet today. Theres no News Conference by fed chair janet yellen this time around but this is the last meeting before september when a majority believes the central bank will start raising rates. Or theres some other shock to the system. Lets give you a rundown of what else to watch this trading day. Prices of singlefamily homes in 20 major metro u. S. Areas are frast to have risen nearly 6 . July Consumer Confidence is out at 10 00 a. M. Expect it to drop back after surging to multiyear high. On the earnings front, dupont ford, merck, pfizer and ups report earnings before the opening bell. And after the opening bell gilead twitter, and u. S. Steel. We analyze the earnings of bp against a backdrop of tumbling prices prices prices. Thats coming up next. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Welcome back. These are the headlines. Twitter, front and center over the concerns of the leadership. China bank stems market volatility with some saying there could be more to come. And thissed aing to pressure on the commodity complex as oil enters bare bear market territory. Bp q2 profits have come in below Analysts Expectations. Earnings were hit by a 9. 8 billion settlement with u. S. Authorities over the 2010 gulf of mexico oil spill. The British Oil Major is suffering from the Lower Oil Price results from more cuts to its spending. Bp however maintaining its dividend. Of course, the question is how long carolin. A quick look at oil prices this morning. Theyre not finding much relief. Brent crude as you heard it there in the headlines falled into bear market territory. Its up some 21 since may. Just above that now. Its off by 0. 6 . And as you mentioned the question is for how long these European Oil Majors can hold onto their dividends. They cut their dividend by i believe, 27 back in march. Bp statoil, they both held on this morning but as i mentioned before, a lot of concern cl weather theyre going have to report to boring to continue to pay the higher dividends. The dividend yield for european oil mail superiors is high. Its double the average for european stocks. One of the attractive points. Of course the question is Going Forward, are they going to have to rack in higher debt in order to hold onto that dividend. Something a lot of Technology Players have been doing as well. I just want to draw your attention to the selloff were seeing. As carolin was just pointing out, brent crude at 22. 84. Wti crude, 3 away from its european low. A lot of data coming out this week including inventory numbers. That, of course could change the story. The momentum to the downside. Whether that will be something janet yellen references it was a Lower Oil Price that was seen as one of the reasons that jeanette yelin was going to delay their hike because of the impact it has on inflation, and now that were seeing oil prices once again moving lower, it seems that were not going see an increase in inflation any time soon. No but labor costs, that is the higher component of cpi. I believe 6 07 is what it accounts for in Commodity Prices. Yes, they do have a bearing on inflation but not as high of waiting azoulay bore costs. Also i would point out you saw that specifically in yesterdays training session. The dollar was lower, yet Commodity Prices were lower so we didnt have that inverse relationship we usually have, which is quite interesting. Were back to seeing that today. It goes to show its a confluence of factors being confluence of factors impacting oil prices not just about the stronger dollar which is making it more confusing for Commodity Traders out there. It has to do with emerging markets and of course the inflation picture has to be accounted for as well. Still to come on worldwide exchange. The highway bill hits a roadblock. Will it be possible to get the bill through congress before time runs out . Were going to bring you that story. Dont go away. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. U. S. House Majority Leader Kevin Mccarthy is ruling out any action on the u. S. Highway before before Congress Goes on recess. Lets get the full story with tracie potts live in washington. Good morning. Good morning. Thats because mccarthy says thats because the house has already reacted. They passed it. Its Something Congress has done 33 times over the last three years, extending the funding for this tran pooration bill. Were were talking about money from washington that pays for road projects transit projects bridge projects, rail projects and amtrak projects. And now its starting to run out. 18 cent as gallon every time we pump a gallon of gas has not changed for year and its not enough money, so congress is trying to balance how do you pay for all of these projects around the country. The house says another five months extension. The senate bill says sort of a longterm plan six years, 300 billion, but only half of it paid for. Thats why Kevin Mccarthy said were not going to even look at it because thats only half paid for. Theyre at odds. Theres a friday deadline before the authorization for the money to spend runs out. Plus the federal Highway Trust Fund is running out of money and its going to fall below the threshold officials expect some time this week that could slow down payments to the states that are trying to get roads tracie thank you so much. Wall street will name david taylor its executive after the board meets today. David is currently president of p p g p g. Hes expecting to remain as chair nan during the transition period. Earlier they announced plans to sell 40 brands to perfume maker coty. It is up about 1 . Meantime the s. E. C. Is expected to make requirements testimony wall street journal reports the agency expects companies to exclude 5 of its overseas workers from its pay calculations. Firms had been pushing for a much larger percentage though. Critics say the rules wont provide investors with meaning meaningful information about its financial health. Still to come on worldwide exchange. Joining forces. A new study says theyre at a record high. How will this accommodate affect the bottom line . Well take look at health care and which stocks to be bullish on. The dow up about 116 points in premarket trade after an ugly selloff yesterday, a lot of that being attributed to the chinese stocks. Nasdaq also positioned to open higher by 32 points. Were looking at facebook, twitter, yelp. And s p up 15 in premarket trade. Youre watching worldwide exchange. Were back in two minutes. All right. Its 10 30 a. M. In london 5 30 in london. Hi everyone. Youre watching worldwide exchange. Im carolyn rocket. And im seema mody. Despite reports of another cash injection. Oil enters bare market territory. Earnings take a huge hit after it settles penalties related to the gulf of mexico oil spill. Betting big on emerging markets. Gm to set aside 5 million for a target in developing nations. Deepening ties with its chinese partner. And twitter getting set to report Second Quarter results. Jack dorsey under pressure as user growth could fall short again. Heres how were looking, dowup and dak. Were looking at dow in the correction territory. Futures, as i said pointing to a strong open. Lets see how trade fairs as we approach opening at 9 30 eastern. Keeping an eye on trade in asia nothing like the sharp decline like we saw in yesterdays trade. There are reports this morning of a further 50 yuan. Shanghai closing down and hang seng seeing a slight gain of 0. 6 . Yesterday, bleeding into other trading markets including japanese nikkei. Another day of losses in the nikkei. Nothing like what we saw. Down just about 21 points. What d us this all mean for european markets. Higher across the board. A lot of it having to do with positive earnings reports plus the euro has been trading in this tight narrow range. There was some worry that the stronger currency in the uk would have an adverse impact on growth. At this point, not so much. Ftse 100 higher by 51 points. Were looking at the markets up. Stronger gains here in europe carolin. Lets stick with earnings seema. Dominic chu takes a look at what to expect. Heres what you need about these two Big Pharma Companies as we approach earnings reports. You can see with pfizer on average theyre looking at 52 cents of share on earnings. That according to them. So those are the numbers, the head line ones. They took a look at the numbers around these particular earnings reports and they found something interesting. First of all, they dont expect a lot of volatility. Thats going to be a big thing. For instance over the last five yearsing theyve beaten average analysts estimates often. Hure is the thing. The stock doesnt do anything on average after that report comes out and its positive about a coin toss. 45 of the time. A little less than half the time. Faiz e no fireworks. Look at merck as well in this particular earnings report. Theyve come out beating earnings estimates 22 times in the last five years. On average theyre about 0. 2 . Theyre positive. Now, if you look at the Options Market right now. Options on both merck and pfizer are pricing in what could be a plus or minus 2 move in the stock as we kielkd of get around this earnings number. Not a lot of volatility here. Of course, like you said here lets take a look at some of the stocks. Pfizer up 10 year to date. Merck, up about a third of a percent. Theres been a die very judge here. Well ee see if there enes to change that overall momentum or direction. Back over to you guys. A lot of it having to do with better than expected earnings. M a now expect at a yeartodate record high for the Health Care Sector that according to deal logic. Its exceeded the record high. Meanwhile u. S. Health care target accounts for 86 of global vacuum surpassing the record volume set in 2014. Now canter fitzgerald said the growing role in health care is fostering a foundation in insurers. The question is there a Business Opportunity for all this. Joseph France Business analyst at canter countying us from new york. A pleasure to have you on the show. Is obamacare the fluorrry behind this and is it driving stocks . Were going to valuebased reimbursement where more reimbursement of the Company Comes from the quality and satisfaction. I think the taxes and costs are got tering a need for the companies to find a way to reduce their cost. A lot has been contributed to cost savings. If you say valuebased reimbursement, what does that mean for rates, joseph in. 20 comes from Customer Satisfaction both the patient and the provider, the physician. And also from outcomes. That being the lower number of readmissions to hospitals and just getting a healthier outcome. That also fosters consolidation. If we take look at some of the specific stocks which have also been involved in plenty of m a over the last couple of weeks, humana lowered its 2015 outlook. How healthy is the industry and excuse the pun here. Well the industrys benefitted since really the financial downturn in 2008 from a steady decline or at least no increases lower than expected increase in medical costs. Thats continues to drive benefits on the commercial side of the business, which is really where cigna, anthem and aetna get the proportionate part of their business. On the other side of the coin more recently humanas had difficulty because of ujds pricing its product in 2015 and they lowered their guidance to reflect that they were much higher than expected. Joseph do, these big price tags suggest that these are overpaying and if so, do you want to be invested in these names that are taking a big risk to pay huge premiums . Well i actually think that the synergies in and of themselves are not as attractive as the fact that the companies are acquiring platforms which makes them more competitive in the future. Aetna buying humana addresses a very limited Medicare Advantage business that they had at a time when this was one of the markets thats least pen traded. Only about 30 of seniors are envoled in Medicare Advantage plans. 10,000 people every day are turning 65 and a significant number of them are elected to join Medicare Advantage plans. Most have spent their adult life in managed care, so thats a Natural Choice for them, so they have created through this ak question decision a platform of growth. In the case of cigna, theyre obviously buying a commercial business. It oohs little bit different because theyre a blue cross plan but this enabled them to expand outside of their 14 states where they have the blue cross markets mark. So i think that while the price reflects some of the opportunity Going Forward, that the stocks are still attractive. Many of them have actually traded off since the deals were announced and i think part of that is because of the uncertainty on when theyll close and in some case wls or not theyll close. There were a couple of names. Joseph, whats your top pick in this sector . Houmaumana has been our top pick. Many of the growth much of the growth in some of the other sectors, commercial in particular, is coming from market share gains. We like it bus of the demographics. As i mentioned, only 30 belong and that number will grow to i think, more than 50 to the next five or seven years. I like your optimism. Joseph thank you for joining usus us. Uk Manufacturing Business mel Rose Industries spiking in london this after the Company Agrees to sell its elster condition to u. S. Conglomerate honeywell. Its disappointing earnings. And still to come on the show, gm is setting its sights on ee americaing markets as the next avenue of growth. We bring you more on its Million Dollar bet. After this short break. Well be back in two. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Welcome back. General motors is making a new line to sell to ee energying markets. Lets get out to morgan brennan. Hey, morgan. Hey, seema. To help facilitate that growth the company is investing 5 billion over the next several years to develop a new lineup of chevy compact cars and suvs with its chinese partners saic. The vehicles will start going on sale in 2019 and the 5 billion will cover gms costs for engineering the vehicles and retooling in china, brazil india, and mexico and thats equal to what gm is spending to update its u. S. Assembly plants over the next three years. The president told reporters on monday theyll use common components. Its part of the companys plan to consolidate the number of design platforms it uses worldwide from 26 now to just four by 2025. A amond says it doesnt currently sell a, but if successful it could account for nearly 2 million in annual sales. It could compete with rivals such as Nissan Renault and gile. Its got hightech features like wifi, navigation and onstar service. Back to you. Thank you so much. Having a great day. Moving on to gaming rovio set to make an announcement to unveil angry bird 2. The first sequel to the original release in 2009. It has over 3 billion downloads and it branches out into books, toys, and even suites. Its expected to hit theaters. Its amazing how theyre trying to monetize angry birds. Its no longer just a video game but movies books, candies. Its amazing. Yeah but its not really working. Clearly in this case its a onehit wonder. Dont think maybe neck week the movie will prove me wrong, but, hey theyre never going to get back to the revenues they saw in 2009 when angry bird was the bestselling paid mobile app of all time. You know i mean the new feature, are they going to be are they really going to be that different . As you see, we still have the sling shot. Its addictive. You have to play. I know youre not player. You will find its quite addictive. Thats one thing weve been claiming. Companies like king digital. They have candy crush and that saw that was a onetrick pony too. True. But theyve been coming out with new games too. Time will tell if they will be as successful as candy crush and angry birds. Here rovio is hoping lightning streaks twice. Im skeptical. I dont know. Now, elon musk has signed up alongside a high list of highprofile tech scientists in an open letter calling for the ban on the use of Artificial Intelligence in the case of weaponry. It warns of the ethical consequences which are able to attack targets without human intervention. It suggests if a military power does succeed a global arms race is virtually inevitable. Wow. All right. Next story. Next story. Nike is to offer compensation to customers who purchased its fuel band tracker. This after users of a product brought a lawsuit against the company claiming the fitness tracker did not accurately measure calories burned or footsteps taken. Nike maintains the product is not faulty. But its not helping them with their foray into wearables. They havent done well. They havent done well at all. We should point out, fit bit, the wearable that recently went public mega ipo up 100 . Just in the last two days the stock has been falling. I thit was town 4 in yesterdays trade. Keep an eye on fit bit, of course, as earnings reports Takes Center Stage on wall street. Absolutely. Meantime these are your headlines. Twitter expected to report later over concerns of costcos leadership searching for profit shares. And baidu nosedaeshed hours after the Company Outlook missed analyst views and china banks carry out stimulus. Some saying there could be more to come. Were back as well. Thats in two. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Baidus Second Quarter profit was set. The company has made a big push into food delivery movie tickets, and other products as it tries to adapt consumer shift from pcs to me bile phones. Baidu is projecting Third Quarter below its forecast. It fell 8 . Two of the biggest social names reporting this week twitter later today and facebook on wednesday. Stock performance over the last 12 months as you can see right there has varied significantly. Facebook shares trading in record high territory up 25 while twitter is down 9 due to a turbulent ride. When it comes to the Second Quarter, which social stock will win the faceoff . Twitter in transition. Theyre on the hunt for a new ce oafter the departure of dick costello. And jack dorsey with twitter. They may disappoint again in the Second Quarter. As you can see, facebook has more than four times the Monthly Average users. Meantime Analysts Expect revenue to jump 36 on the year thanks to me beal as well as video advertising. This to help twitters top line, which is expected the grow more than 50 . In general, two very Different Social Media companies. I always feel bad for twitter. For them its not only user growth and management but whos going to lead. He announced he was stepping down. We also got news there are reports that squares looking to file for an ipo. Of course, jack dorsey also the ceo of square. If thats the case jack dorsey needs to commit 100 of his time to square taking it public, which means more pressure to find a liter as soon as possible at twitter. Absolutely. I totally agree with you when you say its pretty unfair to compare twitter to facebook because i think its like apples and oranges. But if you want to make a comparison,ve got an interesting stat for you. Facebook drives 20 times as much traffic as twitter does. Thats direct traffic, paid organic surge traffic. Thiss the big problem for twitter. The problem is how do you get there . This thats where you need to engage the user a lot more. It will be an interesting night. Twitter reporting after the bell. Okay. Lets take quick peek at asian markets. Theyre a little more stable than they were yesterday. Remember we saw the big selloff yesterday. That was the biggest decline in eight years and today were seeing the shanghai comp only off by 1. 7 . The hang seng actually bouncing back by 0. 6 and this is on reports that the pcob has reject rejected it. Oil continues to see red across the screen. In fact brent crude tradingal its lowest level. More losses there. Wti crude at 47. 12 down just about 30 cents. Interestingly enough gold shining at about 10. 95 and copper coming off the lows. European markets. How are they fairing . Theyre moving to the upside around 1. 3 for the german dax. Absolutely. And u. S. Futures look like this. Were expecting quite a big bounce back. Take a look at the triple digit. Up by 29 points after we saw the losses. This, of course as the fed kicks off another very important meeting. Lets get an update from beth. What do you expect Janet Yellens biggest risk to the market . I think in terms of what the feds are talking theyre getting stronger and stronger. Right now the Unemployment Rate is at 57 low and you look at the other indicators the feds like to look at looking Pretty Healthy as well. I this i the risks that the fed is looking at and one concern, of course s what happens to inflation. Inflation is still rather soft. Youre looking at i guess year other year for the personal consumption as the deflator. Say that three times fast and youll have trouble just like i did. Its one too low. There are signs theyre ticking up. Thats something you want to watch. Indeed the downward pressure from oil and also from the dollar largely from what happens abroad has put downward pressure on prices but were starting to see that stabilize and thats what were keeping our eye on. So we think theyre going to move in september for their first rate hike in tell years. Oil not helping the inflation piks. Picture. I think that the i think they continue first i mean if the fed the fed if the fed could control oil theyd be pumping oil. They recognize they dont have much control on what happens, what comes out of the ground. So what i they do focus on mainly in terms of inflation is they look at core inflation. That would be zpluding food and fuel. Something they can imagine. If you look at what happened in 2007 we saw the Oil Prices Hit to 150 dollars in barrel for west texas crude. It fell down to 40 a barrel. Can you imagine the fed trying to manage Monetary Policy with that kind of swing . Thats one of the reasons they try to avoid that. Beth do, you think september will be the month . A lot of the economists an guests we talk to on the show agree with you. Then if you take look at futures, were seeing that only 17 of the market believes will see that first hike in september. Why do you think theres still that disconnect . Separation anxiety . I wouldnt want to i would not want to let go of that easy money as well. Obviously things can go well. It does depend on as the fed always says t data. So if the markets are imagining the economy is going to weaken over the next few months before we reach september, they could be rightly correct, that the fed will have to wait. We dont see that. We see now underlying economic fundamentals as really holding up rather well. As i mentioned, the jobs market. Now were looking at 250,000 job gains per month for the year. Go ahead. Were going to have to wrap it here. Thank you so much for that. Beth ann bowvino. Thats it for us. Im carolin rocket. Im seema mody. Well see you tomorrow. Next up squawk box. Have a great day. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Good morning. The stocks here hit a sixmonth low. Still watching what the feds going to do. This we didnt need. Bad enough were all focused on china. Now shares of baidu. Shares down sharply after giant surging sales came in below expectations. And the main reason a weaker chinese economy. And a big moment in sports. The Arizona Cardinals have hired the first female coach in nfl history. Its tuesday, july 28th 2015. And squawk box begins right now. Good morning, welcome to squawk box right here. Im andrew sore kin. Weve got to a big day for readers. Dr. Seuss fans of all ages. The title, this morning, its called what pet should i get. And we have more on the rectangle iran dom houses book project later this hour. But first lets get to the market new this morning. Take a lack as we see how Tuesday Morning here is seth itself up for the day. Joe mocks me. Good morning to you. Dow could open up 32 points higher