Good morning and welcome to Worldwide Exchange on cnbc. Im sara eisen at worldwide headquarters. Im wilfred frost outside the house in london. We can hear it, we can see it. It is throw back thursday. Were throwing it back with Old School Songs changes in honor of your prime minster. Lets show you whats going on with the Global Market this is morning because that bullish momentum continues. Stocks closing at a record high. The dow and the s p yesterday. Didnt take much. We managed to do it in a big move higher in futures this morning. Check it out, dow futures up 1. 12. This would be the fifth day in the a row of gains for the dow and s p. The 11th for the nasdaq which is still a few Percentage Points away from a record itself, but really caught up here. 10year treasury note yield, there has been some demand on and off for this treasure amid rally in u. S. Stocks. The 10year is back below 1. 50. There was some buying. Strong auction of the 30year debt yesterday. The current theme of buying bonds and stocks has sort of held up. As for the early action in europe. The bullish momentum there continueses as well. The german dax up 1. 3 . Sit the standout. The ftse mib thats the italian stock market second from the bottom up, 1. 2 . Weve been watching that carefully as well. The focus and concern swirling around the bank. As for the currency action, british pounds stregthens to mark carney the bank of england governor first postbrexit rate decision. That has been a continuing theme. Theresa may steps up at prime minster. 1. 3218. Well off those lows. Well see what happens into the bank of england key decision. As for the dollar yen continues. Helicopter money continues to swirl. Talk of potentially new stimulus in the japan. Pressuring the yen. They like to see that. After asia overnight. Lets show you what happened. The nikkei continues to surge. Its having its best fourday streak since back in february. Up another 1 overnight. The shanghai comp flat. Oil shed about 4 yesterday and stock continue today gain in the face of weaker oil. Coming back a bit today, wti back above 40 dollars a barrel. Same with crude oil, 46. 63. Gold rebounded from a twoweek low and saw some strength yesterday, giving some of that back today. Todays stock to watch and likely the big market mover of the morning and of the day. J. P. Morgan, the Bank ReportingSecond Quarter numbers. Forecast to earn 1. 42 a share. Both figures would be down from a year ago and all the focus is going to be on the outlook for Interest Rates which has moved sharply against the banks favor. Of course whats happening with brexit and the plans for j. P. Morgan. Capital results. Got a green light from the regulators lately with the stress test and how the banks perform because they have been the lagered all year long. Caught a bit of a bid. Well see that sharp reaction. I know youd normally be wat watching the banks if you were here, but youre full on uk politics todays. Absolutely right. The banks is an interesting point i think as you rightly say. Theyve raild a bit into earnings. People being reminded they did actually make money and q 1 and yes on the Interest Rate curve side things are looking worse. On a lot of other areas theyre looking better. Energy losses, oil prices for example and can Investment Banking activity. People are thinking, okay wait these guise did make a profit last quart. Maybe they can again. Banks certainly have focused. J. P. Morgan reporting later as you said. Lets get to uk politics and sum up the scene here. The Times Leading the mays clean break. Particularly focusing on the fact osborne was sacked. That was the boldest move of her cabinet announcement. The big surprise was boris getting the role of foreign secretary. Br although the mail leads with a picture of fiveyearold florence cameron. She was the darling yesterday. Alongside larry the cat as well who got plenty of attention as we discussed in the mirror. Some of the sentiment toward the level of surprise. Sorry they say with that infamous picture on a zip line. And a lot of interesting reactions to boriss appointment. Many seeing it as a master stroke in keeping your friends close, but your enemies closer. Not just his appointment, but the other two leading roles that brexiteers like boris got. Fox and davis heading up the two departments that will leadle eu withdraw negotiations so shes really sticking to her promise that brexit means brexit. I just mentioned osborne was fired. Hammond made it clear there would be no emergency brexits. Some expansion ri fiscal policy to come. Not immediately. He also was talking earlier about brexit in terms of when those negotiations should happen and trying to give some certainty to businesses. Lets listen in. We will take whatever measures are necessary to restore confidence, stabilize the economy, as we move forward with the start of the negotiating process. Lets try to get to a conclusion as quickly as we possibly can so that people can see how were going to take the economy forward in the new circumstances. Of course, brexit the top of the agenda for the new government. As you pointed out earlier, the pound has rally from those lows around 1. 28 in the past couple of days partly because of the uncertainty. Also partly because people ease expectations of mark carney might do later today. I found the Boris Johnson reaction, especially only social media, twitter, complete mockery of them. All of sort of the funny pictures of the past. Saying we were already the laughing stock, now we have Boris Johnson as the foreign minister. At one point, he was the running to be the prime minster. Could you imagine what the reaction then would have been. I think its somewhat a master stroke. Clearly didnt have the support of the mps so he had to pull out of the race. Wider reasons that do adore Boris Johnson and shes pro kated those people by appointing him in a senior position. Clearly he is a divisive figure. He is a colorful fig you are. I think hes not quite as controversial though in his politics as some of the coverage suggests. Its a big surprise. When he strolled into downing street and we were still there, no one could believe it. Two weeks ago his career was doomed. Now hes got one of the great offices of state. They put on a show for you yesterday. I know you mentioned the pound. That is definitely something were going be watching that investors are going to be watches out of the uk today. That is the bank of england which could make the first cut to Interest Rates in more than seven years. The goal of course to boost the economy in the wake of the brexit vote. Mark carney has indicated the Monetary Policy would vote on a cut in july or august. Hes already strongly hinted economists are looking for a quarter point cut today to a record low of a quarter of 1 . Well get that statement at 7 00 a. M. Eastern. It could come today or come in august. Doesnt seem to matter much. Clearly he is on the ball. I mean, we have heard from him a number of times and he has been on the front linesover the brexit response in terms of the policy action. Yes and also comments from the new chancellor earlier seem to suggest that he expected some kind of easing. He wasnt getting involved on it, but he implied there would be supportive policy across the board as these brexit negotiations happen. Absolutely right. Mark carney got out in frontover this. We heard from him a few times since the brexit vote. As we discussed before, i would caution the certainty of a cut this month. I think hes implied there will be a cut over the summer. Markets will be a little disappointed if they dont see it today. That had been a lot of chatter. I think either this month or august is what markets are starting to expect. Just the confidence it might come today has slightly waned. People now looking for august. Heres a press conference. It will be interesting to see what he has to say about the new finance minister. Theyve got the tools in other words. Mean tile, wilfred, Central Banks here are also making head license. Philadelphia saying the central bank will opt for a shallow series of Interest Rate increases. Harker saying he wants to let that play out a bit. That could impact the path to normalization. Todays agenda, thursday weekly job claims. Wholesale inflation out at 8 35 a. M. Eastern time and more feds speak for you. We have lock hart, gorge, and kaplan. Earning heating up j. P. Morgan as we mentioned. Black rock out this morning as well Delta Airlines. And some Corporate Airlines to tell you about as well. Has reportedly held talks with via come about acquiring a minority stake. This comes as via come and controlling shareholders deliberate over paramount future and via come future. Red stone has reportedly done the sell. Legenda Legendary Entertainment back in january as it tries to expand u. S. Movie. Google could get worse. The antitrust charging against google company. Breaching rules by imposing strict contractual terms with its ad service. This adds to other charges that europe brought that google abuses the dominance with Android System to preinstall Search Engine on mobile devices. Shares of alphabet on this report down slightly. Havent seen a big share priegts reaction, but it is a risk investors have watched. Stocks to watch today. Lower costs help offset a 30 drop in coal shipment. The railroad report was released an hour early. The stocks shot up as a result. Yum brands is reporting results. Rebound in the China Business in the first half of 2016. Shareholders liked that move. Conference call this morning. Jm smucker raising quarterly dividend. The maker of smuckers jelly, Peanut Butter and foldiers coffee will pay that dividend on the first. When we come back, a cushion for brexit blow. Were waiting on a big decision this morning from the bank of england which could send Interest Rates to the lowest in history. We will discuss a potential market impact, next. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Sams thanks for joining us. What are you expecting today . A rate cut. Next month were looking for a further cut. We think the floor at 1. 4 . And also we think easing as well. The pound has rallied in the last couple of days. Does the marngt price that in or will it be surprised when the cut comes. I think it may be a b to do with the political uncertainty. Being resolved until the shortterm. The way i see the markets theyve moved a lopg way. Particularly the riskier assets i think have been well supported on the expectation that carney will dlir something today. I think we would see the equity supermarket suffer quite significantly if the rest dont go ahead and deliver some sort of stimulus. You mentioned the political developments. Comments from him over the last f few hours suggest hell abandon the pledge to balance the budget by 2020. How big of a boost is that on the fiscal economy. I think its inevitable. Actually forecasting growth next year would be zero. That would be consistent with a fairly significant slippage in the borrowing plans. Next year the deficit was set to come down to just under 40 billion. It clearly looks it will be higher than that. Potentially much higher. I think at times when the economy slows down it does make sense to provide a little bit of fiscal stimulus and particularly in the bank of england is doing a quantitative easing policy. That should keep Interest Rates low and stimulate the economy. N you have the loose Monetary Policy. Should be a combination that serves the uk economy well. The softer pound. Do you feel that we sort of found a medium term equilibrium with the pound . Obviously the pound can continue to depreciates. The forecast is at the lowest point. So we do see further weakness there, but i think one of the ways in which we would see that playing out is actually even if it does cause a bit of inflation pressure in the shortterm. It shouldnt be enough to influence the medium focus on the two to three year horizontal. At that point we think the Inflation Impact would have worked through and allowed the right thing to do is address the potential fall. Sam, thank you very much for joining us. Sam hill from rbc. Expecting a rate cut from the bank of england in just two hours time. 7 00 a. M. Eastern time for that announcement. Thank you. When we come back, the veep stakes. Donald trump promises a running mate tomorrow. Good morning sara and wilfred. Weve got storms again on the move today. It was a quite a severe day yesterday with more than 500 reports of severe weather. A lot of damaging winds. Thats what we can see today as the system moves into the northeast. New york getting storms by the evening. Weve got storms from pits burg. Into the great planes again. Hail here also a possibility. The other huge story is the heat that continues to build setting up for a pretty big heat wave getting into the weekend and next week. Look at dallas. All time record highs for the month of july. Its hard to do. Certainly july temperatures can be warm. Were going there. Thats your latest coast to coast forecast. Worldwide exchange continues afterthis. With unlimited clean power. In less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. And if you thought that was amazing, you just wait. Thys gotten used to the sme. In her kitchen rbage. She thinks it smells fine, but her guests smell this. Ding, flies, meow febreze air effects heavy duty has up to. Two times the odoreliminating power to. Remove odors youve done noseblindo [inhales] mmm. Use febrezair effects, till its fresh and try febreze small spaces. To continuously eliminate up to two tis e odors. For 30 ys febreze small spaces andir effects, two more ways. [inhal exhale mnemonic] to breathe happy. Welcome back to World Wide Exchange. Lets get you caught up to speed on market action. A strong rally. Dow futures up 1. 22 this morning. S p up, nasdaq up 33 set to make new record highs for the dow and s p. Bank of england decision out of 7 00 a. M. Eastern time. J. P. Morgan out earlier than that. The yen is weaker. Political news, speculation of Donald Trumps running mate taking on the feeling of a Reality Tv Show here. Celebrity apprentice perhaps. We now know the big reveal is set for tomorrow morning in new york. Nbc joins us now. Hes going to hire someone so to speak. Who is it going to be . Its not clear this morning trump has made a final decision. We do know the short list of his, its getting shorter. Down to five people. At three, potentially four, but in my own mind, i probably am thinking about two. Sources tell nbc donald trump hasnt decided yet between new jersey governor chris christie, form early House SpeakerNewt Gingrich and indiana governor mike pence. These are good people. This man is going to be a great president. Pence can draw political swing state voters. Shows trump tied with Hillary Clinton in ohio, three points behind in iowa and down by nine in pennsylvania. Shows trump tied in ohio, but leading florida and pennsylvania. Republicans who want to dump him at the Convention Much harder to do so when he shows these numbers. Thats not just a huge loss for our democracy, it is a threat to it. Today near dc. Clint on t clinton appears with her own secretary. Labor secretary are believed to round out her top three. Shes not expected to at least announce her decision. She may make a decision, but shes not going to announce it until after the Republican Convention is over next week. Tracetracey, do vp selection really matter . I know they get a lot of attention and a lot of hype and theyre very strategically thought out in terms of swing states and demographic groups, but do they actually carry weight when it comes to the election. Two words. Sarah palin. It was a tough one for john mccain and once he selected her, it may have cost him the election. It certainly seemed to have an impact on his numbers after that. So theres one kbampl. One of the things the Vice President ial candidate can do is make up for some of the gaps or the flaws or the weaknesses of the president ial candidate. For Hillary Clinton, you know, questions about whether she can be tough enough on wall street and pulling in the progressives for donald trump. Someone is maybe a little more stable as opposed to whats been for him an unstable public image. It can matter. Its balancing the campaign. Good point. In the meantime, billion Venture Capital will be speaking at the Republican National convention on the fourth night, peter thiel. Confirmed appearance to recode, but didnt plan any details. Facebook board member has been a strong supporter or the republican nominee. One of the very few in silicon valley. The of course triggering that all important article 50. Well be right back on World Wide Exchange with dow futures up in the triple digits. You wont see these folks athe post office. They have businesses to run. They he paions to pursue. How do they avd trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post offic ght on yr computer. Gea 4 week trial, plus 0 in extras including postage and a digital scale. Ght on yr computer. Go to stamps. Com tv and never go to the post office again. Good morning. Stocks soaring to new highs. Plus breaking news out of the uk. A wellknown government leader out of jobs this morning. Well tell you who, why, and also why Boris Johnson could be getting the last laugh. Its thursday, july the 14, 2016. And youre watching World Wide Exchange on cnbc. Good morning and welcome back to World Wide Exchange on cnbc. Im sara eisen at cnbc world headquarters. And im wilfred frost live outside the houses of parliament in london. Its throw back thursday. Throwing it back with Old School Songs about changes. Theresa may making the cover of the new york times. I know all over the cover of your papers as well. More on that in a moment. We have to take a look at whats happening in the Global Markets this morning. Strong rally for u. S. Equity futures. Going on day five. The dough wouw would take us to records. Dow futures up 1. 25. S p up 14. Nasdaq up 33. Fresh bat of momentum here for the bulls. Taking their queues in part from europe. Ra rallying off a flat session yesterday. Italy up 1 . The ftse 100 ahead of the bank of england decision up abo about. 60 . As for the asian market overnight, we saw green in hong kong and japan. The borrow nancy visit sparking some enthusiasm. Singapore had a trading glitch and never reopened. We left that down there flat on the day. Have a look at oil, repounding this morning from a 4 slide yesterday, which was interesting because a 4 slide in oil may have earlier in the year taken stocks down with it, but not so yesterday. At the bullish enshoes yam continues. Brent 46. 75. It is up a little more than 1 . Some buying in the treasury market in the last 24 hours or so continues to show that sort of risk eversion or at least central bank easing around the globe. Still, historical lows. As for the currency market action, the pound continues to strengthen into that bank of england decision. Thats due out of 7 00 a. M. Eastern time. There is an expectation that mann mark carney will cut Interest Rates. The first postbrexit response in terms of an Interest Rate decision. I would also point out on this board, the weaker japanese yen which continues to weaken and provide much needed relief to japanese policymakers, the euro stronger at 1. 11. Gold giving back some of yesterdays gains yesterday as well. Still holding free and clear the hi near the highs of the year. Wilfred, out of london, at least. I know the talk is out of the cabinet changes. We are expecting the big bank of england decision coming out in just an hour and a half. Absolutely right. Our last guest told us hes expecting a rate cut. It wasnt just expecting one rate cut either. He thought we would get qe in a months time. Thats about 90 minutes away. The decision from mark carney and the bank of england. Political decisions coming out in the last 20 minutes or so. We saw a big smile on Boris Johnsons face yesterday. I imagine the smile that will be beaming once again because michael gove, the man who famously stabbed him in the back in that leadership battle, has lost his job in the cabinet. More developments, more announcements coming out for theresa mays new cabinet in recent minutes. Michael gove adding to the list of losers. Gorge osborne also getting the j chop yesterday. Gym. Great to have yo with us. Some crazy developments in british politics. How big a surprise was Boris Johnson becoming foreign minister. Will complete striez. You have to look at this as theresa may has great character. Phillip hammond is a great character. And suddenly you have Boris Johnson one of the most lively people in british politics popping up. Its a slightly less important position than it was prethe vote for brexit because some of the elements of negotiating the brexit deal and taking britain out of the European Union will be left with a couple of other people. Yet, still a big moment for Boris Johnson. His friends, michael gove, and yet here he is standing again. Talk us through what we learned about him when he was mayor of london. Can he now step up to the plate and with the serious politician the role demands of him. He is a very funny man. Hes hilarious. Hes a joker. People like him. Fond of broris johnson. When you look at the articles hes written at a columnist. Hes insulted vladimir putin. He insulted Hillary Clinton. People say hes having fun, but he has a lot of catching up to do in terms of being serious. The job of mayor of london is a ceremonial role. He wasnt out, cut ribbons, did a few policies in a certain way, but it wasnt a job like health or education or administering wealth and benefits. So therefore at least Foreign Sector is kind of a role. Now theresa may has stuck to her promise brexit means brexit. Do we have any inclination of when those talks will start . Were still not certain. Obviously the big question is article 50. When they trigger the actual process that takes two years. I think they want to do a bit of trade negotiation first, and try to sort of restore some confidence around the world. Boris johnson going out there, well see david davis. Who is the brexit minister going out there to talk to other administrations around the world and also fox who is another person from the campaign in the job of International Trade minister. We see a lot of those preliminaries before it happens. Jim, thank you so much for joining us. The Police Correspondent for the Financial Times. The gift that keeps on giving, british politics. Absolutely. For you and all of us. Now back to u. S. Markets. Well continue the series with stocks that tend to heat up during the summertime. And boy is it going to be hot in new york. We have some summer sizzlers for you. Looking at the top five sectors in the s p 500 over the past six years. Weve shown you telecom as number five. If he can is number four and Consumer Staples as number three. Whats in the top two, utilities is the second best performing sector during the summer since 2010. Resources, water works and Edson Company topping the list of stocks. The attractive dividend are the main catalyst for the stocks compared to the low yield environment. All three avrming returns over the past six years and take a look at American Water works. Up nearly 300 in the past six years. Tune in tomorrow when we reveal the Top Performing sector that sizzles the summertime. Back to you. Until other Corporate News today. Japans chat set to go public. What exactly is that company . Cnbc in tokyo explains. Reporter its a messaging platform with a uniquely japanese flair free texts and calls arent the main attraction, but digital stickers featuring cuddly characters cony and brown. You noek appeal where its been winning both japan and also thailand, indonesia and taiwan. Theyve really prochtfited from this local interface. Line began as a fre chat app to improve communication after the 2011 tsunami in japan. Five years later its been a social content flat form dominating the messaging space in japan and three other markets with 218 million monthly active users. And the app isnt limited to messaging. You can play games s online, m payments and group calls, and yes, you can even take selfies with more than a dozen different filters. Reporter ceo calls the one stop app a smart portal. Translator there is a major shift of usage from current Search Engines and portals to messenger apps. Reporter thats transformed into a lucrative business. Raking in more than a billion dollars in revenue last year, a 40 increase. Games and advertising make up a majority of their earnings, though a quarter of ef knew comes from sticker sells. On average, line users send 390 million stickers each day. The Company Expanded beyond the app space too opening shops in five countries where the line app is still banned in the mainland. As a business, the company is in a fundamentally good position. But the company has struggled to expand beyond its core markets. Trailing competitors bloeblly. The number of monthly active users grew just 1 last year. He embraces the challenge saying its been 20 years since a Japanese Company stood up to battle with the big boys line may be far behind american tech giants, but the Company Hopes a dual listing in the u. S. And japan will be the first step in changing that. Cnbc. And we will be all over that line debut at the big board today on squawk on the street, expecting that of course after the open. It is time for our top trending stories of the morning. First one for you, wilfred, Boris Johnson singing ode to joy. New uk insisting that wanting to leave the uk from the eu does not make him antieuropean. Have a listen. I can read in spanish, i can sing the ode to joy in german. I will. Anyway, you know it. How colorful is it going to be the cover of Boris Johnson as foreign secretary as he prepares for the brexit negotiations . Well, the first thing to point out, that wasnt yesterday that was during the brexit campaign, but one of the aspects that got trending of course on twitter after he was appointed foreign sec tarm because it highlighted as you rightly say his colorful nature and the person of course that many foreign leader are going to have to welcome, but i suppose you could offset it by saying hes fluent in many foreign languages. It is a big question what the attitude is going to be toward germany for sure. Calvin harris taking to twitter saying taylor swift did write the lyrics. Swift initially wanted to keep her participation in the song a secret which is why she created it under a pseudonym. Also bringing up the feud with catty perry. A gift of Hillary Clinton smirking and struging leading many to believe the tweet storm. Basically what ill tell you missed quite a dramatic sort of Twitter Exchange between taylor swift, her exboyfriend, catty perry getting involved. You can image that the world was enthralled by this. Im getting a little bit tire of it all. It seems to be never ending. Shes flaunted that new relationship a little much. I would agree. Beauty is pain for taxpayers. French government confirms hollande has been paying his pay dress dresser during the month. This hairdresser had to abandon his salon and hes on tap 24 hours a day. Who needs a hairdresser on tap 24 hours a day, especially president hollande . Saying that 10,000 is expensive for haircut. Sound pretty cheep. Seems like a high monthly stiefen, especially for a country facing difficult economic growth. When we come back, the must reed read on both sides of the atlanta. The dow up more than 100 points at this hour. J. P. Morgan shares participating in that premarket action. Stay tuned, youre watching cnbc, first in business, worldwide. Mr. Clean gets tough on dirt and grim and grease in just a minute mr. Clean will clean your whole house and every room thats in it. Floors, doors, walls, halls hes so tough, he cleansem all ber. Mr. Clean will clean your whole house and every room thats in it. Mr. Clean, mr. Clean, mr. Clean it is time for our must reads. My pick is can trump win ohio . This comes after the poll shows he is tied with Hillary Clinton in the all important swing state. No republican has ever won the presidency without winning ohio. Heres what the opinion piece reads from cleveland to laker ri on lake down to cincinnati ohios voters have historically demanded hands on attention. For now donald trump is campaigning for this must win state with not much more than the trump brand. The argument here is that hes got to get involved on the ground in ohio if he wants to win. Its sort of a somewhat optimistic take for the protrump voters that he can do it. They say he needs to get governor kasich who is still pretty bitter about some of the insults on the campaign trail. C kasich is very popular. He needs to get the ground game. When it comes to the republican winning this state, a state with cities like cleveland and cincinnati very much on the rise. Not sure how that message is going to work for them. Absolutely right. Its interesting to see sanders now backing clinton and i suppose trump is desperately waiting to see if kasich will do the same. They with the last bitter rivals the same way sanders and clinton were. Well have to wait and see, and, of course, were going to get a vp announcement reallitively soon. My must read today is on british politics. Theresa may must now tell us what brexit means. Chris charles in the Financial Times writing brexit must swiftly produce a definition of what brexit means. All the policy stuff can wait what britain needs is a definition before we seriously regret it. Thats top of the agenda for the new prime minster. I think its interesting to point to the minister in charge of these goerks, david davis, who well learn about now, has an Important Role has been a euro skeptic through and through forever. Its not been someone like Boris Johnson or michael gove as seen adds being opportunistic. Hes always been euro skeptic so she has not diluted her intention there whatsoever. Its going to be fascinating to see as this develops how enough is the past the uk tries to take out the eu. I think its going be interesting. The pound has stabilized. The ftse 100 has recouped all of its postbrexit result losses so all of these warnings they need to deal with the uncertainty and deal with everything, its not being backed up by the market in the sense of urgency. Yes, i think its also going to be smoothed over we expect by some kind of easing on the monetary front. Whether that comes today or august. That helps as well. Theres nuances in terms of what ftse stocks have recovered or not. What is certainly true on the ground here, now, sara, compared to when we were here a few weeks ago. People are more relaxed. Not quite that sense of nervousness and unease. That gives a little bit more wiggle room for the government to work with. See what happens. When we come back, a u. S. Future is trading sharply higher this morning. Of course that bank of england meeting that wilfred was talking in just a little over one hour time. Tom lee is going to join us to talk all things market as these record highs look to continue. Stay tuned, youre watching cnbc, first in business, worldwide . Whats it like to put your ho in good hands . Like having something fit you, just right, thank you randall. Every stitch and seam of your Home Insurance, taored to fit you and your budget. With unique features, like claim free rewards. Ohh customized home protecti extra features all at an affordable price im going to live in this. In means getting more from your Home Insurance with an expert allstate agent. Its good to be in, good hands. Plumping surface cells for a dramatic transformation. Without the need for filler with olay, you age less. So you can be ageless. Olay ageless. Todd spaletto,resident of the north face, olay ageless. We are working on the protype to match cmers to gear. Watson, lets give it a try. Say its midjune and im backpacking in yosemite. Of our 353 jackets, i can recommend nine. Watson, what if it rains . There is just a 3 chance of rain, so recommend the breathable stretch eece fuse fodolomiti ja. No wonder oucustomer loyal numbers keep climbing. I believe we cano even better. I like the way you think. Stocks are rallying again. S p up 15. 5. Nasdaq up 35. Were going for four days of gains and another record shot at a close for the dow and s p. The bullish moumt tum continues and joining us now to discuss it is tom lee. Head of research at fund strak global advisers. This is a tom lee kind of market. Maybe. Its proving a lot of the fear amongers and skeptics to be overly bearish. We have a few out this morning. We have the bank of england out in just an hour. Set to have the first brexit rate cut. Also j. P. Morgan earnings. What are you going to be watching. I think both. On the one hand, we shouldnt be surprised if Central Banks are being accommodative here. I think the bigger story is earnings. I dont think its necessarily j. P. Morgan. I think its top line growth is starting to form a lot better and i think theres a lot of preannouncements have been much better. Best in five years. That. So youre in the camp that would say that rally, this race to nigh highs, has to do with the fundamentals. The skperngs if economy versus the Central Banks pumping stimulus to gloss over all the weakness. Yes, for the last, you know, seven years, i think everybody who has looked at every rally said, oh, its Central Banks. They havent been kicking it into high gear. Yes, but again if you think the only reason markets have gone up is because of Central Banks. Theyve missed the broader narrative. Companies are going great. Profit margins are high. I think were finally starting to see the Global Economy show signs of life. Thats why earnings have performed better this season. Two key parts of the market have not rallied as much. Technology and banks. Both traditionally seen as major market movers. Do we need to see strength in terms of earnings out of those groups to see this market continue to rally. Yes, you dont want to make new highs and say banks and tech are sinking double digits. The banks i think theres a bit of wait and see. We have to wait and see how banks do with falling Interest Rates. I do think banks today are much better. They have less leverage. Real be theyre a lot more blue chip on the tech side, they have sensitivity to emerging markets. We also have a 10year treasury note yield below 150. How much is that driving the action in stocks. Again, this is interesting. You talk to anybody and they say the stock should be down huge. Well, i think it just means inflation is low and there is a search for carry outside the u. S. It doesnt mean that you should be bearish just because the 10year. Doesnt mean you should be reaching for dividend mpaying stocks. I think theyre pinned. I dont think you should say utility is overvalued. They should be finding other stocks. Tom lee, always a pleasure. Thank you so mump for joining us this morning. Wilfred, well see you tomorrow. We know youre going to be covering british politics and the bank of england all day long for the network. That does it for World Wide Exchange. Squawk box is next. Er to y and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, weayhank you america f a century of tru, for the privege flying higher and higher, together. Good morning. Global market alert. Fresh new alltime highs. Never been this way before. How many times can we be redundant. The s p, theyre doing this for me, climbing to unprecedented, never before seen levels. Fresh new alltime record highs where weve never been. Earnings alert, j. P. Morgan, black rock and Delta Airlines all expected to report in the next hour. The count down is on, donald trump set to announce his running mate tomorrow. 11 00 a. M. Eastern time. The rundown of frontrunners in the swing state poll ahead. Its july 14, 2016. And squawk box beginning right now. Good morning everybody. Welcome to squawk box here on cnbc. Im becky quake along with joe kernen. Lets take a look at the equity futures this hour. The s p and dow closed as fresh new record highs. Oh, boy. Uncertainty. This is overdone. Take a look a lot this, the dow futures up 182 points. S p indicated another 20 points and nasdaq indicated by 46 as the bank of england is expected to hike rates today lower rates today