Earnings could well determine whether we get that late summer swoon or, josh, perhaps a surge. Do you think people are too negative today on where the market is . I think we probably need some new tools to measure whats going on in the economy. If youre looking at commodities and saying this is representative, then youre ignoring the fact both Consumer Discretionary and Consumer Staples are within pennies of new record highs. And the fact that those two things can happen concurrently, this massive downtrend in Commodity Prices and this huge uptrend in what the consumer wants to do with their disposable cash is like a non sequitur of commodities being a leading indicator. The fact is theyre global now. Theyre not a good leading indicator for the u. S. The real economy, 70 of which is the u. S. Consumer, is doing just fine. Not great. Not gangbusters, but household formation is happening. Were building and buying homes and people are out in the stores and restaurants. Go out on a saturday night in most major metropolitan areas and thats basically the current status quo. So, joe, the transports coming off their best week, best week of the year, the vix has all but collapsed again. Where are we . How are we set up for now between now and the end of the year . I think we are at a place, and ive learned the lesson the hard way, where you are not trading the macro. I think pete and josh and steven have all identified that throughout this year and done an excellent job. Youre finding opportunities whether its particular assets, finding particular stocks where you think you could get some momentum. The market right now on a macro basis is in a very difficult place. The upside is capped by disappointing earnings were seeing. The upside is capped by resource names right now disappearing. On the down side, no one is talking about it. So whats going on with commodities. Why arent we down more . Theres one Central Bank Left that could make a move to ease rates. Thats what the market is picking up on the down side right now. Find particular equities. Pete, a week ago were talking about how the vix had exploded up 8 even though it was at a low level. Youre down 12 and change again. And why not own some of that, right . Are people too complacent or negative . Or aggressively getting positioned on these drifts down to the down side and thats whats exaggerating the moves. Short interest ramping up in the markets. I think the most interesting thing we talked a lot about hey, look, we had gone from the macro. Then over the last couple of weeks engs have taken center stage. How about u. P. S. And they paid 1. 8 billion for low jess particula logistics. The transport getting a leg. Last week it was all about technicals. We held that s p 500 josh talks about all the time in terms of where is it going to sit . The same thing happened with the financials. When you looked at the earnings last week thats what was propelling the markets to the upside. The problem is were most of the way through earnings season. So lets bring in keith banks, managing more than 380 in assets. Good to see you again. Good to be here. The criticism is the breath of the rally, if you want to call it that, has narrowed or a small number of stocks that are really carrying the bulk of the weight and that will allow them to run out as it tries to go higher. Were not as negative in jep as the market seems to be. What theyre not seeing is the underlying strength and certainly in the u. S. Whether its the consumer who grew 2. 9 . Spending grew 2. 9 in the second quarter. You have housing, autos up to almost 18 million units. The second half will be better than the first half. You get the benefit of lower energy prices. We think well see increasingly better growth and pete made a point about earnings. People have been wringing their hands about earnings. 81 , give or take through the earnings season, and right now were running 4 above expectations and expectations that have not been lowered. Three quarters have beat on their earnings. An economy growing. And the dollar, right . Theyre merging, theyre acquiring, theyre finding inorganic ways to get growth not ideally but you do what you need to do. Youre painting the picture, steve, sounds like of a market that can go higher. Right . Youre finding more positive than negative, clearly. I think the market can go higher. We have the fed that looks likely come september so theres some trepidation. Why more likely . You could look at the employment cost index and say its less likely. Except talking to people in the street. There are nuances in terms of how theyre calculating. Apparently that pressured the number. One data point doesnt make a market or make a fed decision. Theres too much focus with the fed that hasnt reached 2 yet. Not where it is and all the commentary that i here. I think the question is there too much optimism for what josh said and joe said. The market is trading its highs and some key elements such as cyclicals that are trading down. Lets revisit this, keith. Counter intuitive to everything you hear. Why buy any of those stocks . We find right now as we look at energy a lot of great value. Ultimately the u. S. Is going to spend more money on the infrastructure in the u. S. Its a value play. Theres money to be made in energy. Weve known each other over 20 years, not having a good day. Its going to go higher. Are you saying your goodbyes . Ive been trying for 20 years. No need to explain. I dont think you have to own it long term and the energy assets, the infrastructure, its all calibrated to the price of crude and you cant have a definitive view because there are so many unknowns. The next 20 down. Its like the civil war movies. These guys would line up, get shot. The next guys get shot. Those in droves and droves of value players go elsewhere. Would you still like energy if the second half becomes a situation where the smaller Energy Companies and this rolling wave of defaults and would that make you even more bullish with the best Balance Sheets in that sector. I think you want to stay away from the companies that have financial leverage. Ones that are vulnerable. I dont think you have to take that kind of risk to play it. You dont go in all 100 from day one. If you believe Global Growth is accelerating, and we do, at some point an underpinning for the commodity and value will shine throu through. I agree with that. Always good to be here. Well see you soon. Thank you. Two other stories i wanted to highlight. Tomorrow we have a cnbc exclusive with laszlo birinyi. A good time to hear from him on what trader extraordinary is thinking about where we are and where we could go. Well talk to laszlo at noon eastern time. Also twitter which broke 30, 29 and change, a key level many of you have cited. Note worry in its own right. Lets do twitter. 29 and 76. I dont think you buy it. You want to wait for something fundamentally that acts as a catalyst. We talked aboutface book versus twitter. The opportunity most people looking how much can i make seeing how much twitter is down on the year. I still think you sit on the sidelines and wait. Im willing to wait it out. I dont want to touch it. Josh, you have skin in the game here. I own some and this is what ive been waiting for. I mentioned this on the show after they came out, this is the setup. Youre going to get a breakdown below that 29. 50 level. I think you can do that in a relatively lowrisk way. Most people know me as a trend follower on shorter term ideas. Theres a little bit of puking and then it reverses sharply to the upside. I am keeping shares as a longer Term Investor but this is an interesting setup and ive seen this thing play out before. So youre selling a little bit here. No. Getting liquid to buy more. Okay. Apple, reach 200 . Reached it but holding at that average. The important thing is the implied volatility in here. When you see below the historical numbers trading at 18, great opportunity. Any lift to the upside im in that camp. I would go with the options rather than the stock. A 20 rally in shares of starbucks. Is that too bullish . Our desk will weigh in. Plus, one of the first bearish analysts on the street predicting oil would fall to 45. There it is. What does he think now . Hell join us and tell us. One analyst says coors is primed for a buyout as part of todays double dose of calls of the day. Youre watching cnbc first in business worldwide. We want to hear your crowd noise. Tweet us halftime report. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. My name is peter tran. Im a gas service representative. Ive been with pg e nine years. As an employee of pg e you always put your best foot forward to provide reliable and safe service and be able to help the community. We always have the safety of our customers and the community in mind. My family is in oakland, my wifes family is in oakland so this is home to us. Being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. Together, were building a better california. Having Necessary School supplies can mean the difference between success and failure. The day i start, im already behind. I never know what im gonna need. New school, new classes, new kids. Its hard starting over. To help, sleep train is collecting School Supplies for local foster children. Bring your gift to any sleep train, and help a foster child start the school year right. Not everyone can be a foster parent, but anyone can help a foster child. Welcome back. Time for our trader blitz. Four trades on four stocks making news. Goldman sachs raising its legal reserves, pete, from 3. 8 billion to 5. 9 billion. A pretty significant move. I think the move itself in the stock actually says a lot. Its about a quarter percent down. That shows you more and more of these moves are getting muted. We expect it. If you look at goldman sachs, the problem is they broke through a couple of technical levels. You dont like goldman . Im not in the position. You want the other side, joe . No. I think hes making a good case. Im fine with it. I was trying to drum something up there. He came to the wrong guy. You want to take him on . No. Sands is down along with wynn. They were down an amazing 34. 5 and the bulls, believe it or not, are saying it wasnt 36 like last month. Look, to me these stocks can go lower, china anticorruption is still going on. I wouldnt go near them yet. They want to turn macau into a theme park, into disney, and do away with some of the gambling. Tyson may have a credibility problem after what were seeing today. Down 10 . Whats the story here . I cant believe you gave me the food related stock today. Totally random. Tyson foods, this is a company thats got a couple of things are you starting to develop a complex about this . Not at all. Youre looking good. Im losing weight. Summer lean. Im going to show you all. Tyson actually how do we get out of this . Just keep going. They cut their outlook. Yes. Their earnings were bad and the stock is getting hammered. But its finding support where it should have. Its continued to bottom. Tyson has a lot of things working against it. A lot of turmoil in the cattle. Those are the things that work themselves out. If youre an opportunistic investor, 11 times earnings. Probably a better buy than a sell. Starbucks can gain 20 . What does joe say . Sure it can. U. S. Dollar remains strong. Sure. This is a phenomenal company. I know youre looking for a battle. Ill take the template and mention twitter. Starbucks when the stock went down did the right thing. The insiders went in and bought the stock. I asked the question, why are the insiders on twitter selling the stock and not stepping up and buying it . Whats your take, pete . Is it a good call . Yes. The innovation and when you look at ceos across the fortune 500 this guy has to be in the top five. Okay, coming up, he called for a swoon in oil and since his prediction its down 24 . Where is it heading next and what is the play . Auto sales in july. Expected to come in at the highest rate since 06. Your best auto trade. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . What if there were only one kind of dog . Then it would be easy to know everything about that one breed. But in fact, there are over three hundred breeds of dogs. Because no one can be an expert in every one. An app powered by ibm watson will help vets tap Specialized Knowledge in the cloud for every breed. And whatever else walks, flies or slithers through the door. Ibm watson is working to make medicine smarter every day. Usic etta james at last plays throughout sometimes, at last doesnt happen at first. Your dad just kissed my mom. Turning two worlds into one takes love. Helping protect that world takes state farm. Welcome back. Crude oil prices hitting sixmonth lows on new signals of growing supply and demand in china. The Energy Expert who called the bear market in oil. Tom is with the Oil Price Information service which tracks the energy service. He has been bearish since last summer. Good to see you back here again. All right. So europe the guy in the know. Its 45 here. Where is it going . These prices are very reasonable but i think theyre going lower. Some other analysts, and im like the milli vanilli of analysts, actually right now weve been through the best demand cycle in terms of july and june weve been in in a while. I think you could see another 10 pullback, certainly 40 for wti and 45. Looks like theyre reasonable and that will be an overreaction. Were going to have a lot less Refining Capacity online in september and october. Exxon kicks off the turnaround season late they are month and that will bring to bear a lot of pressure on the market. With exxon, chevron, some of the biggies. How much of that is already known . So, for example, you take clothing, the backtoschool trade. How much of the refinery trading are we seeing now . I think a whole bunch of it. People are anticipating this weak shoulder season or whatever. When crude oil went to 42 in the First Quarter a lot of people got into these Exchange Traded funds. When crude oil prices are higher they get beat and lose some of the equity and they roll forward. Probably 150 Million Barrels or so of Retail Investor exposure that needs to get kicked out. You think about a million experts globally and three or four dimensions to what moves the price. Its not like the stock market, how much oil is there and how much can we get, et cetera. What does it say the fact none of the experts saw this coming to begin with . When you look at it whats the thing if we watch one or two metrics, what is the one that enabled you to pick up and not quite experts but what happens . A lot of people were predicting what they wanted to happen. They wanted higher prices. There was a buzz we couldnt be this low. We can be this low for years. What people have to look at is supply. Not only have we seen an increase in opec supply but in nonopec, nonshale supply. Shale is finally coming down by about 150,000 barrels a day or so. When you look at some of the numbers for the fourth quarter. You have perhaps 2 million more barrels than demand. Still . Still a problem. China is big. If china continues to show growth thats a little bit anemic, thats a big problem. On the other happened they could start adding to their own strategic reserves. So oil is at the lows of the day. A three handle is not out of the question. No, its not out of the question. Its probably a great buy. If we go below 41. 50 or so we could test some of the old lows from december of 2008, 32. 40. Good to see you. Everybody is fixated on that. That chart that we were looking at down 3 2 3 percent. Good to see you. President obama set to unveil regulations. To Jackie Deangelis at the nymex with the movers. Good afternoon to you, scott. It is the coal industry that will hurt the most as a result of this plan. Lets go through some of the names that were watching on this. Some of the largest producers in the country but just filed for chapter 11 bankruptcy this morning. Some are literally bleed iing cash. Then the steel producers. Watching their u. S. Steel and new corps as well. There always is a canary. Some of the alternative players to be winners here. First solar and also the two main etfs as well. Always new, innovative ways to produce energy from natgas and its cheap right now. Companies like dominion and ultra petroleum. The last thing, there is expected to be a lot of litigation. This may not take effect so quickly. Back to you. Joe, coal couldnt get out of its own way before this. What do you do with these names, if anything . Take them off your screen. Thats what you do. You wait for them to default unless you have the ability to play that side of the ledger which is the cds market and bet on them going under. Do you put natgas in a bigger way. You understand how incredibly challenged it is and i think the death knell, so to speak, for whether its oil, whether its gold, whether its copper, it is going to be the u. S. Dollar. So far the Canadian Dollar both Commodity Currencies down 6 . The u. S. Dollar has risen 2 . If it becomes a high yielding currency and rallies significantly, an even bigger problem not just in the commodity sways. We mentioned the president. You can see president obamas announcement right here on cnbc 2 00 p. M. Eastern time on those new emissions standards. Coming up, a double dose of our call of the day. The force to be with disney when it reports earnings tomorrow. Why is he so bullish . In case you cant figure it out. And what does our desk think . Coors shares kors shares are falling. And apparently, they also love stickers. Whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. Were not rich, enjoy our retirement. E to futureadvisor has identified 9 best practices to help you retire sooner and with more money i was leaving a lot of money on the table. Futureadvisor uses awardwinning technology to give you investment insights once only available to millionaires. Just link your accounts and futureadvisor will show you how youre doing and where to improve. Its like our own team of Financial Advisors 247. We finally have a plan we feel good about. Get an instant assessment of your portfolio and a plan to fix it, for free at futureadvisor. Com. Why should over two hundred years of citi history matter to you . Well, because it tells us something powerful about progress that whether times are good or bad, innovators with great ideas will continue to drive the world forward. As log as they have someone to believe in them. For more than two centuries weve helped progress makers turn their ideas into reality. And the next great idea could be yours. Hello, everyone. Im sue herera. Here is your cnbc news update. Former ubs and citi trader hayes has been sentenced to 14 years in jail by a london court after being found guilty of conspiring to rig interest rates. Hayes says he was made a scapegoat for a common practice. He is the first to be convicted by a uk jury of libor rigging. Standup comedian and actress amy schumer is teaming up with her cousin new york senator Charles Schumer to call for tighter gun control. The senator unveiling a threepart plan that would make it harder for violent criminals and the mentally ill to obtain guns. Days after taking over directv, at t wasting no time rolling out a new offer for new customers for 200 a month, customers can get hdtv and dvr service up to four rooms, unlimited talk and text and ten gigabytes of shareable data for up to four shareable lines. Fiat chrysler recalling Dodge Charger sedans because side air bags may deploy when a door is slammed. The model years 20112014. Thats your cnbc news update. Thank you, sue. I want to call your attention to shares of twitter. People are looking for the stock to go into a downward move. The stock is off and barely holding on at 29 . Pete, give me a comment here. We havent heard from you about this stock yet. With the call post earnings itself, the earnings numbers werent that bad but as soon as they started speaking about the future and they gave themselves all kinds of time, wall street does not like to hear that. They dont want to hear, well, in the distant future how were going to do things and monetize and were going to be able to show you. The problem is people have lost patience. I think what youre seeing is a flush. At some point this is a great buying opportunity. I think facebook put up such great numbers. What are we doing on twitter . It was exacerbated by bob peck who was on squawk alley the show before ours and said that he was looking for more fundamentals from this company. Thats not going to be enough to turn him to the name. You saw the selling accelerating. Already traded a full volume day. Hot and heavy activity. Numbers coming in stronger than expected due in part to rising suv demand. Phil lebeau joins us live from chicago to break down the numbers. I guess, phil, when gasoline prices are down, people will buy an suv. Reporter the general feeling is we want to ride high in america. They are expected to stay there. Take a look at the four major automakers in the United States and by that we mean the four largest. All were better than expected between 1 and 3 . The key thing to keep in mind. Crossovers, utilities and pickup trucks. Thats why they did better in july. I want to talk about honda. Weve talked about how the lineup was a little old, a little stale. They were lagging in terms of sales. Its starting to come around for honda now. They did better than expected with sales up. The crv, sales up 11. 4 . People are willing to pay at least 33,000 for a new vehicle. Kelly blue book says the average price under 33,500 up 2 compared to a year ago and if we look at fiat, ford and chrysler, we may see something today and we still might. All three of the big three stocks up more than 1 for the day. Its only happened seven times this year. Its been a rough year for the big three. The final numbers for the month. Scott, back to you. Phil, thanks. As far as im concerned those are not trades. They are in four and five year ranges. They fall back down to support. The trade in the sector is oreilly automotive. This stock wakes up, goes to sleep, starts over the next day like a clock. Continue to raise the bar higher and the average age in this country is almost ancient. They are selling the parts for people to keep the cars winning. Its an ancillary trade but its working better. Stocks are trying to move back to the flat line as well on these comments. Toyota, what you used to like because of the currency angle. I do. You still do . The challenge in front of it for the particular quarter in hand is whats going on for the japanese yen. Thats been troublesome but i think overall on a secular basis this is a name trading around i think 132. I could see it easily going back to 140, 145. Good momentum. Coming up, one more for the star wars fan club. Steeple raising disney ahead of earnings. The analyst with the call will join us next to defend it. I want to show you the wall, our stock wall. We are at session lows now. The Dow Jones Industrial average down 120 points. S p down 8 1 3. And the nasdaq down 15. Its difficult to raise rates. Real money. They can go elephant hunting because theyre a big market cap. Real debates. A lot will happen. Thats why the stock was up 20 . The most profitable hour of the trading day. Im used to living in controversy. The halftime report. Coming up, august historically a tough time for stocks. Best plays moving forward. The s p 500 up only 2 . Some top strategists are bullish. Why the s p could rally another 7 and the sectors that they say could take us there. Its a slowdown ahead . That and a lot more at the top of the hour on power lunch. Meantime, back to scott. Two bold calls of the day today. Kors could be a buyout. Ben mogul is at stifel. Is this because of the outlook for star wars . If you look at the setup, you have star wars, the marvel tight rls showing a tremendous amount of breadth. You have a lot of stuff on the film side to both the Consumer Products side as well as the theme park side. On the cable side a healthy debate on how espn looks Going Forward in an over the top world. Not in 2016 or even 2017 issue. Not just the studio side. 2. 2 billion, how do you come to it . Most International Markets and we look at where has Foreign Exchange been, Foreign Exchange is a major headwind but you have a couple of major tail winds. You have three, four times the number of screens when avatar opened. You have far more screens. The tail winds, the number of screens increased in every market especially the premium format side and the box office. If you look back over the last couple of years youve had a couple of movies that have come relatively close. They were benefiting from a time the u. S. Market was better. You can see since 09 when avatar was released you have big, big changes. The Russian Box Office nearly doubling. You have a lot of tail winds from that perspective. The only other big wild card is probably going to be china so airs movies released in december in the United States, some time in january february, depends on what the government wants to do with scheduling. The longer the duration, the more it hurts the Chinese Box Office because of piracy. The theme park one example of such as best of a shot as anyone who is not doing the coproduction. I think certainly disney given its investment in the market will get a favorable release date. Ben, thanks for coming on. I appreciate it. Thank you. Ben mogul of stifel. You would not get ahead of earnings . No. I dont believe you get ahead of earnings particularly one thats got such a high valuation. Starbucks, you mentioned disney. Theyre both iconic, Global Growth. They have far reach. If i owned it, id stay with it. Its not cheap at this level. Lets switch to kors. There was an interesting note out today from oliver chen over at cowan. He says the leverage buyout analysis yields upside. This stock has had a number of problems as we know. Its down 7 today. Whats the story with kors . They have not done a good job in terms of transforming what has been a lot of negative momentum. Retail is about momentum. Kors lost its momentum. Its difficult to reacquire it. The consumer a moving away from the handbag industry. Youre seeing it with coach, with ralph lauren, can kate spade. Its throughout the industry right now. The question i would have, yes, it sounds good, lbo as it relates to kors but not why a kate spade . This is an industry problem not specific to kors. Do you like this . I would say yes. I look at the cash flow and think its a great possibility. Josh, the stock down 7 today. This stock has been under for almost two years. Under its 50 day since christmas. No indication its done. If you want to allow for the opportunity or you could watch it dribble down another 10 . Clearly the sellers are not through yet. Its a fashion stock. Fashions go in and out and cash flow unlike General Electric arent stainable. The brand erosion and price erosion stops. Oliver will be on at 5 00 tonight. Pete has his eye on something unusual in the office space. Stick around to find out what that is. Take a look at the sectors right now 9 of 10 are in the red. Energy is leading the way down. Heart healths important. So you may. Take an omega3 supplement. But its the ingredients inside that really matter for heart health. New bayer pro ultra omega3 has two times the concentration of epa and dha as the leading omega3 supplement. New bayer pro ultra omega3. Mooerd. No doubt, apple is now down 2 breaching its 200day moving average. It is now at the lows of the day. I wonder about the thought here of apple being the stock markets atm. If youre getting out of the market, youre doing it through stocks like apple, arent you . I would agree with that. More so than a fundamental issue with apple . Yeah. Thats exact lip the point. I think it is technically driven. Were at the lowest level since february 3rd. Apple 118. 69 as i read it last. But i think you are exactly correct, it is exactly what were doing, americas favorite stock, most owned stock, particularly on the mutual fund side right now, it is a source of funds. Thats whats going on right now. Less about fundamentals, more about sourcing capital. Thats the problem. If i could just jump in on that. I think joes right in terms of the technicals. I think it is a bigger, broader issue within tech. The xlk which is the s ps tech second spdr. Xlk below its 50day and falling. Good article today, i think it was in the paper about tech thats missing on earnings is getting hit disproportionately. Thats a fact. The markets been unforgiving in terms of missing and very quick to reward. Not that apple had a bad quarter. No. But i think also, we have not adjusted to apple being in the dow. You got the dow dows down 157. Thats certainly the lows of the day. Right. So if a managers coming in and shorting the dow, shorting the market, apples going to shufr because it is a component. There are only 13 stocks in the industrials. On the technicals, let me come back. Technicals are driving this. November 26, 2014, apple gets up to 119 and fails. For the next three or four months it cant get back above 119. Finally gets above it, never is below is again. Todays the day where you break below so it is technically significant what you are seeing. There are so many different points in the market that we could throw up to underscore where sentiment is. Whether apple, the dow itself. Throw up the 10year. The 10year note yield is falling as well as theres a flight to safety today. You do have that at 2. 14. Thats the lowest level since some time in may. Its been a while since weve seen 2. 14 . Thats an important story. Quick break, well come back and set you up for the rest of the day and talk much more about whats taking place in this marketplace today where the dow is off 167 and fading fast. Back after this. A number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. To breathe with copd . Ow hard it can be it can feel like this. Copd includes chronic bronchitis and emphysema. 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Working with ibm, theyre combining micro weather forecasts with detailed data from local sensors. To predict where outages are likely to occur. And send crews exactly where theyre needed, when theyre needed. Ibm analytics from the internet of things is making energy smarter every day. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Two trains leave st. Louis for albuquerque at the same time. Same cargo, same size, same power. Which one arrives first . Hint its not the one on the left. The speedy guy on the right is part of an intelligent system that creates the optimal trip profile for all trains on the line. And the one on the left . Uh, looks like itll be counting cows for awhile. So maybe the same things arent quite the same. Ge software. Get connected. Get insights. Get optimized. Hi, welcome back. Want to continue to hone in on whats happening on wall street today. The s p 500 is off. 66 . The dow certainly is the underperformer on the day. Pete, you want to zero in here. We didnt hear from you about all this. What do you need to start thinking about as this week progresses into, by the way, a jobs report. Going to set you up for going either swoon or sizzle. At we talked about at the top of the show, are we moving that concentration and focus that everybody had towards earnings, then weve gotten through a big portion of the earnings season. Are we starting to look again more towards china, towards greece, more towards the middle east. There are a lot of things i think all of us are watching extremely close. I think there are areas of the market that look strong but apple, twitter, a number of names are absolutely getting taken out to the woodshed. The backdrop as well, the market that a people are looking for to have a correction. Right . This longawaited pullback. Any time theres some uncertainty, this is it. This is it. This is it. Then is subsides but wait a minute. Half the market you already got the correction. Its already happening in energy. Its already happening in earth moving stuff. It is already happening in select technical. Look the a intel. Intels having a correction and a half right now. So there is a correction happening. The whole argument was are the great 10 or 15 stocks going to get us through without sum co succumbing. Ive seen hedge funds numbers that are down 6 last month, to up 6 . Hedge funds are able to make money on the short side now. Im trying not to focus on the macro. I think the markets worried about the macro. For sure. I think it is unsure. Thats a great point. I think what happens next is all about the pboc. Do they cut rates or not. Do they cut rates and the market doesnt go up, then you have to worry about the macro because then weve got a problem. Well see you back here tomorrow. See you as well tomorrow. Power begins now. Thank you very much, scott. We begin right off the top here. Welcome to power lunch. Im tyler mathisen. Simon hobbs is with me for the hour from the nyse. We are kicking off the new trading month in the red. Equity markets basically at session lows at this hour. Historically august is not underscored not a good month or stocks. Neither is september, for that matter. The dow, the s p and the nasdaq are all getting crushed. Down 171 for the dow. 13 for the nasdaq and excuse