What appears to be a black vest and black boots who may be one of the three suspects firing his gun, and those are the gunshots that you can hear outside the mcdonalds restaurant. Weve isolated this video a little bit further for you because you can see the alleged suspect pointing his gun and then subsequently opening fire. That is right outside of the mcdonalds restaurant. A Munich Police spokesman reports witnesses report seeing three shooters with what they are terming, quote, long guns. That has yet to be defined, who attacked outside the mcdonalds and a munich Shopping Mall. Police are hunting the suspects and no one yet in custody. Its after 11 00 p. M. All trains, trams, buses, subways in the city have been shut down and police are urging residents to stay indoors. There is a very Large Police Presence at that mall and the surrounding areas as they search for the suspects. The attack, as you probably know, is the second in germany this week and it occurred just before 6 00 p. M. Local time at that Shopping Mall in the northern part of munich. The United States is condemning in the strongest terms what it calls an apparent terrorist attack. President obama commenting on the situation saying, quote, our hearts go out to the victims and we pledge all the support germany needs in dealing with these circumstances. Simon, the u. S. Consulate has also put out a statement saying to u. S. Citizens in munich and surrounding areas, do not report to the consulate, shelter in place, because those suspects are still at large. We do have unconfirmed reports that they are shutting down some of the highways that lead in and out of munich just to make sure that if the suspects are trying to make their way out of the city that it makes it all that much more difficult for them to do so. Back to you. Thank you very much, sue. Tough times in europe. This is a finance and business station so lets do what we do, we turn back to the markets. The s p hitting new closing highs, despite what has been an extraordinary week. The terrible reports you just heard, that of course follows the failed military coup in turkey. Arguably very chaotic Republican Convention and a rising dollar, all things that in the past have shaken equities but failing to do so this time around. Dan, what do you make of it . Theres a certain level of complacency. Last friday we were talking about serious stuff but the markets seemed immune to those sorts of headlines. Why are they immean . I think these are lone wolf situations. I know we had brussels, we had paris last year and those were a bit more coordinated but the markets really didnt budge on those sorts of events either. This is a good thing. Its a good thing if youre feeling good about owning u. S. Stocks that we had earnings for the most part, if you look at the snapshot for the week, they didnt generally disappointing and kind of supported at least for stocks to maintain the levels where they are. But i think the main thing is you say why are they so resilient. I think its because of the fed, i think its because of Central Banks. I think its because of low Interest Rate environment. I think its because people want to look at multiples and think its overvalued but you have to look at multiple expansion. You cant look at utilities. You cant look at staples and say historically this is above what you should be paying above a p. E. Ratio. We did not have low Interest Rates for the extended period of time that we have and for the foreseeable future. So multiple expansion is why this market goes up. Let me just say one thing on the subject of Central Banks. Its interesting that because the markets are so strong, the Central Banks arguably are easing back. Arguably you saw that with the bank of japan. It didnt seem to affect the markets at all. No, to the point im making. They can do that. Listen, the Central Bank Activity has absolutely terrified me. Ill say it again, the fact that 12 trillion in sovereign bonds have negative yields, scare me. I dont know what it means, im not an economist. To me it meant that the economies are slowing down globally. However, the market is telling a much different story. Tim has made this point, the market is not looking at this quarter or next quarter, its looking probably three or four quarters out. Maybe rightly so. I think the market is expensive absolutely on a number of different metrics but it doesnt appear to matter all that much. Take the oil market. Youre in a place here where even i would argue that i dont think oil is going significantly higher in 2016 but i definitely dont think its going back down to 25. If youre playing oil stocks and playing great companies, great Balance Sheets and those that can be opportunistic, do you want to be overly cute. People want to know wheres an opportunity for me to step in and buy something ill hold 18 months. Theres a lot of people that trade the market. But again thats why i think the world is different because youre getting numbers. You heard halliburton say they see a turn. When i look at the macro, i look at the payroll number that started this, which was a better payroll number last month. We had a Market Services ism, pmi composite out of the eu this week. The macro is fine. The earnings are okay. If you were to look 18 months out and it wasnt just fast money, what would you buy at the moment . What shows value 18 months down the line . You mentioned oil. When you say 18 months down the road, where are rates going to be . Are they still going to be obscenely low . You still buy utilities and staples. The market ran 9 and utilities and staples are within 1 of their alltime highs. You know, weve talked about this actually. You have this little stealth rally in the biotechs if you look. Now, back in january, oil started to creep higher and it didnt it caught a lot of people off guard. The first 10 or so were a stealth move. I think youre seeing the same thing if you look at the biotechs. Politicians seem to have forgotten about it. It held a level 240 that we have talked about for months on this show. You get that ibb to 285, its off to the races. dowhy does it get to 285. I look at bank of america at 15, the ibb at 285. Weve seen the market went back to the defensive, back to utilities, back totelcos, i think if anything youre probably fading after this period. Its interesting what you mention about cyclical stocks. If people believed in this Global Inflationary trade, look at boeing, look at autos. Theyre well below those 52week highs and stuck in a range. To me theyre not really showing what i would like to see if we if you thought there was going to be a 10, 15 rally from 2150 in the s p 500. To me you ask the question, what are you looking at for 18 months. I would say if youre not a dollar cost averager. Id buy some , then you should not be buying at all time highs. I maybe get too pessimistic when we go down for the wrong reasons. You have to think about averaging into stocks, you cant just pick a spot when you think the fear of missing out is too thats part of investing. I think dan has been consistent with this, but i would say, one of the other things you say is knock yourself out. Weve done 6 in the last 18 or 21 months. My point is exactly that. That in fact equities have done almost nothing. If you validated a late cycle rally in the economy can i tell you why and you know what makes me really nervous. Were only up a few percent from highs in 2015. We were talking about the Interest Rate environment. It seems very artificial. When you think about past market tops, march of 2000 and in november of 2007, fed fund futures were 6. 25 and 5. 25 respectively. Now theyre a quarter of a percent. What makes me nervous is if this is all artificial, at some point it will be different this time, its that simple. Whats really odd to me is volumes. Volumes are extremely light. And its a doubleedged sword because now you have a lot of that cash that guys did not cover their positions, they didnt cover their shorts. They didnt get any longer. So we either leg up dramatically from here or to dans i think its binary. I think were up or down 100 handles in the s p sooner rather than later which makes it difficult to buy the market at this level. If you look at the Merrill LynchManagers Fund survey, theres a lot of cash out there. You wouldnt be supportive of that . Theres a lot of investors who dont trust stocks anymore. If they have been sitting out now, you know, for years now because of all this macro stuff, because they dont agree with the central bank policy, to get in now seems like its very risky because in my view you have a one up, two down scenario, it could be one up, three down scenario and the r h risk reward is not worth it. I get what steve is saying but the market has changed. The market has gone up for the last six years on seemingly volume that historically has been on the low end of things. Up next on the program, the ceo of starbucks making some very interesting comments about what he thinks is impacting the consumer and its got a Little Something to do with politics. Well explain next. Plus crude oil hitting a twomonth low today but could the move in oil soon cause another area of the market to crack. Well tell you why some traders are concerned. And later, techs moment of truth. All on deck to report earnings next week. Apple shares are doing something kind of odd ahead of their results. Well tell you what when fast money returns. My business was built with passi. But i ke it grin making every dollar count. With i i earn unlimited 2 sh cash back onpital one. But i ke it grin all of my purchasing. Count. And that unlited 2 sh bac from spark means thousands of dollars each year gog back into my biness. S. Which ad fl to myottom line. Whats in your walle eeeeohmumo hh my darling. dont fear my darling. hush my darling. man snoring dont fear my darling. he lion sleeps tonig. woman oring he lion slkehe roarg. ounore. A eep numb store. Welcome back to fast money. Verizon shares higher on reports that its close to landing a deal to require yahoo s core business. The reports suggest for about 5 billion. Verizon has long been considered the favorite to buy the internet assets for the same reason that last year it bought aol for 4. 4 billion and thats digital advertising. Steve grasso, is this management with a massive Free Cash Flow just playing at the edges or is it transformative. I think theyre looking at mobile phone sales and i think maybe they think that is peaking and they already are in your tv at home with fios so i think theyre looking to check a lot of different boxes. This helps them to check the digital box. If you look back when Tim Armstrong met with Marissa Mayer years ago in 2014 at than conference, that was probably the seeds that were planted. He went underneath the umbrella of verizon and now you have this going under the umbrella of verizon. I think theyre trying to check every box but i think its about yield for verizon. I dont think its transformative. Does anybody think its transformative . I thought if they were interested in pets. Com or webvan may still be available, they can take those out. Is that heavy sarcasm . Im just saying, listen, the way i think about this is like yahoo is expected to do 3, 3. 5 billion in sales, verizon is 130, Something Like that. Its not going to really move the needle unless they have some other designs. It does sound like a back to the future move. They dont need a portal, i dont think they need content and i think that would be a strange thing. Clearly, yahoo has a lot of eyeballs and theres no question the core has value but i dont think this is transformative either. Thank god this deal may be going down because this is an asset that is falling apart every day. I think david was point out for every billion that they get on this sale, its about 75 cents on yahoo s price. Even for them there are much bigger questions, clearly. There are. But the biggest questions for yahoo forget management. Its really about tax efficiency, its about a spinawspin spinoff, its all about yahoo japan. I own it and i own alibaba but yahoo sum of the parts is safe to me. Theres no denying the Stock Performance of verizon and at t over the last three or four months. Steve talked about these high dividend yielding names, but ive got to tell you something. At ts quarter yesterday was a typical at t quarter. There was nothing spectacular about it, yet both these stocks, verizon and at t have broken out significant to the upside. Why . Because it goes back to what steve has been saying for a while, they both have ridiculous dividends. I think thats the wrong reason to own these stocks and at some point they come ratcheting back down to where they were back earlier this spring. But right now the rallies are intact for both of them. In the meantime the ceo of starbucks, howard schultz, using some very interesting words to explain in part why his companys results were so lackluster. Take a listen. Theres no doubt that we are navigating through a very unusual time of a confluent social and political turmoil at home, weakening Consumer Confidence and global uncertainty. In fact he said hed never seen anything like it in 24 years of being in public business. Youre a holder. Im a holder and im a longterm holder and i expect to be a longterm holder just because i think the combination of how these guys continue to grow the business globally, the fact that they were a multi Channel ConsumerRetail Company and the fact i think theyre growing in a smart way. China is a big part but not a dominant part. Their problem is a big bar and a big valuation. I think the stock pulled back. I thought it traded very well on yesterdays numbers. Job else claims, we can get into Consumer Confidence, but Consumer Confidence is not as low as people think it should be. This is the first time in six and a half years that the same source sales around the world has fallen below 5 . Right. When you see that happen, dont you kind of worry just for a moment that it might be something structural within the taste of people, that suddenly thiss ingenious company that di what it did, might have hit the buffers. I think they have proved to the world they have not been. I think the coffee culture will continue to grow. People that dont drink a lot of coffee spend a lot of time in starbucks. I think tims investment longer term will work out fine for him but tradingwise on a technical basis, duncan brands is up 11 year to date and has twice the yield of starbucks and technically looks like its in a much better situation. To buy starbucks it has to break out of this bounce level which is lets call it 60 and hold that price. But duncan looks like a great entry right now. As we head to the break, lets check out this chart of crude hitting a twomonth low. That could spell corner for one corner of the credit market. Im simon hobbs. Youre watching fast money on cnbc, first in business worldwide. Heres what else is coming up tonight on fast. Who would be better for the smaur stock market, donald trump or Hillary Clinton . Well, despite the answer, weve got four stocks that rise above the political rancor and bring profits to your portfolio. Plus, how would you like to buy shares of apple for just 2 . Thats incredible no, its actually just a simple option strategy, and well show you how to when fast money returns. Where, in alof this, is t stuff that matters . The akes areo gh,his, uyour future. How do you solve this . You don you partner th airm that advises governments and the fortune 500, and, can del insight perso to person, on whamatters to you. Rgan stanley. Dont put off checking out youm. Eligibility . Now is a good timeo t the ball rng. Medicare only covers about eighty percent of part medical costs. The rest is up to you. Thats where aarp mediresupplems like all staardized Medicare Supplement insance pla, they could help save you in outpocket medical cost takinformestepreally makes a diffen later. Atshait means to go long™. Call n andue this free decision guide later. Explore the range aarp medire supplement plans. All plans like these let you choose any doctor or hospil that accep medicare patients. Thesare the only medicar supplement insurance plans endorsed by aarp. Call now and requestour ee cision guide. And start gathering einformatiod youre looking at a live shot of tampa, florida, where Hillary Clinton is expected to announce her choice for vp very shortly. Politics obviously really very much in the news this week with the rnc concluding and of course the dnc kicking off next week. And then there were three. Where is guy . Where on earth has guy the guy likes to play outside. Guy . What the hell, guy . Guy, what are you doing . Simon, im out here. Rnc just ended, dnc starts next week. Im going to ask people which is the better candidate for the market. Lets find some folks. What candidate will be better for the market, the donald or hillary . Donald. Definitely Hillary Clinton. Trump. Hillary. Hillary clinton, i hate trump. Hillary. Clinton or donald trump. Both will be bad. Why do you think hillary would be better. Shes open, shell promise much more future for the country, for america and for everybody. She wouldnt be better but shes better than trump. Hes trying to fight crime and he dont want no hes not a politician, hes a businessman. Fighting crime and a businessman, right on, my man. More faith in him financially and businesswise he has a better idea of whats going on. Both would be bad. So who would be less worse. Less worse. You cant make a call. I think trump might do something that would be catastrophic and i think clinton probably does stuff that is more consistently bad. I like that answer. Shes going to be the first woman in america thats going to be the president because every time they were a boy it was a boy. Boys stink, right . Yeah. Except your father. Theyre all rotten, remember that. Who said guy adami didnt have the personal touch. We did our own informal poll on twitter. 42 said donald trump, 29 hillary, 23 said both are bad and 6 said both would be good for stocks. Dan, does that surprise you . A little bit. Listen, i think more of the same is not going to be bad for stocks. In the last seven and a half years, the stock market has risen about 200 . And so the one thing i will say is no matter who is elected to be president , theyre very likely to inherit a recession here in america. That doesnt matter who it is. Im sorry, when is the recession coming . Were at one of the longest one is coming. One is coming. Yes. We are in one of the longest periods of the postwar period where we havent had a recession. Welcome back. Good work good world c good, would, mate. This is a Pretty Simple one. Obviously hillary is more of the same and trump is uncertainty. Look, if we rally like were rallying straight up into november, the market will sell off. I mean its very simple. No matter what . I dont think that were going to have a quick read into trump tax cuts that have gone from three times down to one time and a deficit that doesnt make sense and thats if trump the whole point of this is to me the market has done what its done because of the market. Its more about the fed, its more about the Global Economy and this is still going to be what were staring at. If the market has a 15 move on top of this one into november, you absolutely would be fading that election event because that is an event. And i feel like this is the first time where you can actually look away from the election and look towards the fed. We have bigger dynamics at work right now. I think its the low Interest Rate environment. Hang on, hang on, hang on. That objectively isnt true. If trump is likely to win and start a trade war, we have a bigger problem you just said the operative word. If and likely. We dont know what hes doing. But this is why we need to watch. This is a dictatorship, right . We have three branches of government. Hes not going to be able to do unless he owns all the branches. And by the way, theres a lot of republicans, i dont know if youve been watching the rnc, a lot of republicans dont agree with him. So im not worried about him really running off into the wilderness here. But that is a wild card for the market. I think intelligent people that understand markets and understand politics realize that our government is built on more than one person. Okay. In lieu of the final trades on that theme, lets go round the horn with stocks that will rise above politics in 2017 regardless of who is living in the white house. Great job this week, by the way, and a quick shoutout to taylor and avery in orlando. Dyre essentially gets you dividends from the emerging markets which continues to be larger than that. Emerging markets also have bottom and are moving higher. I go united rentals. Its been a great stock over the last couple of years. If you look at it, hillary will either put in a stimulus package and that will benefit uri or trump will have advantageous building projects and that will benefit uri, so either way, uri. So paypal, this is one ive talked about before. I think theyre really very well positioned for epayments. The stock was down 7 on some news or basically not enough news about their visa deal. Guy, wrap us up. Great having you this week. I really enjoyed it. Really enjoyed it. Youll have to find your way back to the desk possibly. Listen to me, l 3 communications, put that thing on top of the white house. Listen, valuation is a little bit rich, but i like this name. Okay, guys, thank you very much. That does it for this team. You can catch more fast money monday at 5 00 eastern. Options action, of course, right after this break. Nature . Ncer] ist a f or a sales eve . E summ of audi sales event is here. Get up ta 500 bonusn le audi models hello there, yes, im simon hobbs. You can see the guys are getting ready for the big show. While theyre doing that, here is a look at whats coming up. Yeah, thats what the charts say biotech is about to do. And well tell you the one Stock Traders think could lead the way. Plus, worried about apple shar