Good morning and welcome to world Wide Exchange. Im sara eisen. And im wilfred frost in london. Last nights attack in the coastal city of nice marks the third terrorist attack on french soil in less than two years. It comes just eight months after the rampage in paris. Well have the latest on horror that took place on frances bastille day in just a few moments. Another difficult morning wilfred, but first lets check on the markets for you. U. S. Futuring giving back some of the gains. We have gone on though for five sessions in a row. Closing at another record high for the dow and s p. Little action in the futures action. Dow futures down five. S p down three. Nasdaq down three. A heavy data dump in the u. S. Marked by retail sales later this morning. As for the 10year treasury no yield. We have seen them move in the complete opposite direction this week. That has pushed yields up into the 1. 50. Were sitting at 1. 53 this morning. Lets check on the markets in asia. The figure showing China Economy going 6. 7 . Slightly better than analyst had expected. The reaction as you can see relatively muted. The shanghai market ending flat for the week. Shanghai up around 2. 2 . The real gainer for the week was the nikkei up some 9 following talk of more significant stimulus and the yen moving the direction. Its up 7 today. Lets look at the european trade. Theres been some reaction to the terrible attacks in the south of france. Not too significant. You can see rights across the screen. Less than half a percent. France is down just over a percent. It has been a strong week in europe as well. Up 3. 4 for the week. Germany doing particularly well up around 4 as we stand for the broader week. Wilfred, the yens biggest weekly drop in 17 years, really setting the tone of japanese stocks and sentiment around the world. As for the Broader Market picture right now, let show you the commodity trade with oil down 1 . Brent down a percent as well. Wti hovering above 45. Brent above 46. 46. 87. As for the currency market. The british pound having a good week with the introduction of theresa may earlier. 1. 3417. Continuing to push higher away from the lows ewe saw. As for the dollar yen, thats has been the mover of the week. Its going the other way a bit this morning. No, actually weaker japanese yen continuing up to 106 almost. Better for the japanese stock market. Stronger euro, 1nt 1135 and gold under a little bit of pressure. Its higher this morning, but just barely. Still, holding near its highs for the year. Now to this mornings top story. At least 84 killed after a truck driver drove into a holiday crowd in nice. Ed to forensic investigators are examining the scene and our chief International Correspondent joins us now in studio with the very latest. Thanks sara, at least 84 people were killed when the truck plowed threw people. French Officials Say another 18 are in Critical Condition after the attack and witnesses in the resort city described a horrific scene. Drove up onto a crowded sidewalk and ran down people for more than a mile. Police eventually killed the driver. This appears to be the work of a loan assailant and identified as a 31yearold frenchman. Officials have not yet confirmed that. Frances president described it as a terror attack and said the nation will extend the state of emergency. He is also calling up rebooks reserves of police. Came a day after suicide bombers killed 130 people in paris. France, dealing with this horrific situation. I think the third since january of 2015. When you include Charlie Hebdo and paris, and then the two days after Charlie Hebdo remember the attack on the jewish super market which they put altogether because they believe the same group of attackers. And french president hollande out last night. A familiar and uncomfortable position for him. They have been stepping up the bombing on the islamic state. They have and running this state of emergency ever since paris. It was set to expire the military teams on the ground there are said to be looking to end it, but now clearly theyre going to have to keep it in place. It comes in the wake of a report that came out which was equivalent of the 9 11 commission in the United States. They did it in france on a smaller scale about paris. They felt a lot of those patrols and what they had set up in the wake of it wasnt helping at all and wasnt increasing the amount of security in the country now with the result of whats happened in nice, thats going to focus in on that question a lot more. How do you protect people . Its so random. This was a celebration. Like a french independence celebration. Equivalent of. And a truck drives into a crowd. It seems like a whole new danger that isnt even considered. A lot of people have pointed out even without there are very strict gun laws. Apparently this truck was loaded with arms and grenades, but many strict gun laws, but if someone is determined to do something, they are going to. Wilfred, absolutely right, very hard to protect against these types of things as you guys touched on president hollande confirming it wassen undeniable terrorist nature. France has really led the air attacks on syria and iraq from a european perspective alongside the United States and president hollande hinted add needing to step those attacks up further. If we look at the Market Reaction, stocks taking a hit on the news. Shares of accor. Easy jet. France airlines all slipping. Down close to 4 . Overall, as we suggested, the reaction across the markets not too pronounced other than those specific sectors. U. S. Traded airlines that travel overseas also down in premashlgt trade for the u. S. Airlines. You can see there around 1 to 1. 5 . Alongside air france down a little more than that. Its a busy day for both Economic Data and Earnings Report here in the u. S. Session. June retail sales and Consumer Price index out. Thats followed by Industrial Production at 9 15 and the first v. Kashkari and bull ard williams. Speaking on the economy as well. Earnings really heating up. Were in the middle of bank earning season. City group and wells fargo reporting before the opening bell. Also hear from others. After a better quarter and very well received by shareholders yesterday by j. P. Morgan. Absolutely right. Financial performance, s p. The best performer off the back of that. Well have to wait and see if the rest of the banks can match it, all banks did so perhaps a little room for them to disappoint today given that. Well wait and see. Investors rushed into domestic shocks in the latest week. Seeing their first inflow since late april. According to new data, funds took in money. There was heavy buying of etfs and funds focused specifically on domestic equity. The japanese app line surging. Sharing began trading in tokyo today and the offering was well received there as well. Ending the trading day 32 higher. Our chart does not appear to be right. It also debuted on the New York Stock Exchange yesterday ending higher by about 30 . The Indian Software expor term reporting more than 14 rise. Info sis. Infosys. The bid for yahoo core internet businesses are due on monday and the board will make a decision soon afterward. This all according to the new york times. Con ag ra naming a knew chief financial officer. Conagra will take the job at the end of august when the current cfo retires. The chinese internet giant announcing a merger. The terms of the deal werent disclo disclosed, but the new company will reportedly be valued around 6 billion. Ten cent up today. Xerox rejects donly merger. When we come back, president ial hopefuls in this country react to the tragic attacks in france. We take you to john harwood in washington next. 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Were looking at slight declines in the premarket right now. Weve lost a little bit of steam in the last hour or so. Gains we are seeing in asia, but not in europe. Europe just below flat. Gdp data out of china this morning. You nis joins us now with a breakdown. Thank you so much. China had a steady second quarter. Hinted this was going to look similar to the first quarter. And actually came exactly the same. Much of the growth was in the june data. The industrial output and retail sales figures came in better than expected. The fix Asset Investment tapered off a bit. In the property sector that was raising concerns here because the revival in the property sector especially in the large cities has been credited with helping china avoid a hard landing. Much of the growth was driven this time by credit as well as an increase in Infrastructure Spending. In fact what was interesting the private Sector Investment came in at a record low. That again is raising concerns that the economy might not be so sustainable with the growth. The authorities said today they saw further downward pressure on the economy because of the uncertainty around brexit on the global economy. That the other factor they said was they had decided to release yet another trench of Infrastructure Spending to the tune of 30 billion which should help offset some of that falloff. My only question, was this already baked in you didnt see a Market Reaction. Its been a strong week for hong kong and japan, but really little action in the chinese stock market and currency. Well, no, i think that it was baked in. A lot of people were expecting to hear that we would see 6. 7 or 7. 6 so because of that it will Market Reaction just wasnt very strong. Thank you very much for recapping the all important gdp number. In u. S. Political news, donald trump had scheduled an announcement of his vp pick this morning, but he did cancel the event in light of the nice terror attack. This was an extraordinary reaction. Donald trump had been all set to announce his vp choice by all accounts according to what Senior Republicans said they had been told by the campaign and what they had told me was that mike pence, the goemp of indiana, was going to be the choice. In fact mike pence had flown to new york to be present for that 11 00 a. M. Announcement and after the nice tragedy, donald trump put out a tweet saying i postpone the announcement. We do not know when that announcement is Going Forward. We do know for mike pences standpoint, hes the governor running for reelection in indiana, he has to file papers by noon withdrawing from the race if republicans are going to field a substitute candidate for him. So thats one time boundary and the other time boundary of course is the Republican Convention begins on monday in cleveland so were going to see how quickly donald trump restarts this process and whether or not he shuffles the deck. Theres been a lot of question about the firmness of his decision. He in fact went on fox last night after the attack in nice and said i havent made my final final decision. So were going to have to see how that goes. Hillary clinton of course isnt under the same pressure. She put out a statement saying we stand solidarity with the people of france. The vp is quite a different tone from donald trump in reaction to is this sort of terror attack. Honestly, its a little bit hard to understand in the sense that you know a couple of political veterans yesterday were saying in a normal circumstances, you would have the candidate and his Vice President ial choice come out sdmiet the terror attack and say this is the team thats going to fight terrorism on your behalf. Donald trump didnt to that. This is an extraordinary campaign. He decided to put it off and were just going to have to see what the next move is. This is an unpredictable candidate. I would just point out that Donald Trump Tweets say a lot. Which the First Response was very trump esk, another horrific attack, many dead and injured, when will we learn. Its only getting worse. There was that. Then two hours later he did put out a tweet saying my prayers and condolences to the victims and families of the terrible tragedy. We are with you in every way. And seems to me to be the tone, the shift in tone from trump as he enters the general election and responding to the criticism he doesnt do that enough. Yes, and with that second tweet, he matched the tone of what Hillary Clinton had expressed, but he did when he phoned into the Television Show on fox last night reiterate im the law and order candidate. He has a belief that hes expressed multiple times when tragedies like this occur, and, of course, weve seen them repeatedly in paris and San Bernardino and ornd and other places. That gav at a tiravitates suppo youve seen that calculation in some polls that donald trump leads Hillary Clinton on certain characteristics of being president , but overall trailing. In fact we have a new set of battleground polls in florida, virginia, colorado that show donald trump trailing significantly by Hillary Clinton. So that hasnt worked dramatically for him. Of course though is a new event and one that presents the kind of danger. Every one of these events underscores a different danger as you all were discussing a few moments ago. Driving a truck into a crowd, theres an infinite number of soft targets where Something Like that can happen and whether this changes the mind set of the american people. The American Voter has we head into the election. We just dont know. John, thank you very much for joins us this morning. Sara, the only thing i would add, of course, on the back of that is there are president ial elections in france next were as well and no doubt, big implications for those elections. And the last two attacks, hollandes popularity went up a bit. Well see what happens as the strategy with the french president is taking continues to seem ineffective as these become a reoccurring theme. I think nine months is the first election there. When we come back, much more on the markets. The dow and s p on a fiveday winning streak. Thats actually the best streak of the year. Industrials, staples, hitting new highs. I want to give you the weather forecast. Sara and wilfred, we wrap up this workweek with a front that has gone through the northeast. It was a warm front. It brought thunder storms and warm early temperature. We will see temperatures warming up and the heat index will be higher than the numbers you see. Southeast heat and humidity. Thunder storm will fire again today. Memphis area here, tennessee, today will be a drier day for them, but the heat will be on. Plus thunderstorms are back into the picture across the front range. If you want to cool off, go to the northwest. Go to the great lakes. Temperatures only in the 70s. One or two day cool down then it heats up next week. World Wide Exchange continues after this. Olay regenerist renews from within. Plumping surface cells for a dramatic transformation. Without the need for fillers. With olay, you age less. So you can be ageless. Olay ageless. Welcome back to world Wide Exchange. Making headlines this morning, Warren Buffett has donated to the gate s foundation. Its part of his plan to give away nearly his entire fortune. 19. 6 million shares. He typically makes his donations in july, reducing the number of shares he earns by 5 from the previous dwreyear. The charities usually sell the shares. Pokemon go has barely been out for one week, but Hillary Clintons campaign is using it to their advantage. Planning to hold a Campaign Event at a pokemon go gym in ho over the weekend. Join us as we go to the pokemon stop in madison pardon me. Get free pokemon and battle each other while you register voters and learn more about Hillary Clinton. She actually mentioned it on the campaign trail as well. Go to the voting booths, get out the vote. Tmobile want tots help users catch them all on a budget. The carrier set to offer free unlimited data for one year as part of tmobile tuesday give aways. Ready to catch them all . Along with the photo of himself inside the augmented reality game. Lots of businesses and even politicians. Will frez capitalizing on this phenomenon. Arrived in london just yesterday was there. In fact in and around when our show started. Its here. I havent used it yet. A lot of people talking about it this side of the pond as well. Lets get to sports. Phil mickelson continueses to hold the lead. After he began the tournament in nearly historic fashion. He shot a 8 under par with eight birdies. On the 18th hole he had a chance for a ninth birdie. No golfer has ever shot a round of 62 at a major. His put just missed the cup. One of several americans the a the top of the leaderboard, including defending ownership champion, zach johnson. Well have the latest on last nights horrific terror in nice. It is the third attack on french soil in less than two years. Stay tuned. World Wide Exchange will be right back. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Breaking news, deadly terror attack in nice. The latest on the investigation and if Global Response, straight ahead. Plus, markets now u. S. Stocks on a winning week. We havent seen a socalled perfect week. Five new highs in more than 18 years, but will Global Concerns and gop worries derail the rally. It is friday july 15, 2016 and world Wide Exchange continues now. Good morning and welcome back to world Wide Exchange on cnbc. Im sara eisen. Im wilfred frost in london. Lets get straight to the top story. Last nights attack in the coastal city of nice marks the third terrorist attack on french soil inless than two years. Comes just eight months after the rampage in paris. Well have all the details on the latest horror in france in just a few moments. First we want to get you caught up on the gloeshl Market Action this morning. It has been a strong week for stocks around the world. Dow futures giving a little back. Really little changed ahead of a data dump this morning. Dow futures down 2. S p down 3. Nasdaq down 3. Coming off positive sessions. As for the early action in europe, taking a breather this morning as we can see declines across the screen. Nothing sharp really. Not a lot of action. The french cac has been hit the hardest after the attacks. Some of the travel stocks in what has become a familiar pattern here unfortunately have been hit after the attack. As for the action in asia. The japans nikkei have a very strong week thanks to the biggest selloff for the japanese yen in 17 years. The nikkei ending on a high note again today. Up 9 for the week. Hong kong also having a strong week in terms of the market. Little change after chinese gdp did come out better than forecast. Lets have a look at Broader Markets as well. Oil prices have rebounded this week after sharp declines last week. Up about 2 for the week as a whether or not he will. Just losing a percent of that. Net about a week of 1 of gains for the week. Wti at 45. 26. Weve seen significant selling of the bond market. Yields to pick up. 1. 534 on the 10year note this morning. Clearly the move over the last few weeks and months has been one of yield compression. Just offsetting that. Dollar prices lets have a look at the pound. Once again reboupding. Had a strong couple of days as the political situation has cleared up a little. Theresa may announced her cabinet. The biggest move in the last 24 hours when the bank of england did not cut rates as some had expected. The yen sitting at 106 this morning. Gold prices have eased off. Now back to this mornings top story. At least 48 kill84 killed afterk drove into crowds in nice. Reviewing safe measures. Joins us from outside the French Embassy in london with an update. Karen. Good morning, wilfred. European are again digesting the news of another violent attack on their citizens again on french soil and the third attack since january last year, here at the French Embassy, the first order of business was to lower the flags. We saw that after the paris attacks so this morning the french flag has come down, along with the european flag. Security has also been increase instead a show of support, not necessarily a security concern, but just to show the local police force are behind the french. We have seen french tourists coming to lay amemorial in a sign of peace, lighting some candles, flowers have also been laid in respect. 84 have been killed and 18 critically injured. The symbol of peace might be a hope. Youve seen initial response from the french president to say theyre going to step up attacks on syria and iraq to try to conquer the terrorism threat. We havent had any official claim from the likes of isis or al qaeda or any other Organization Behind these ray tax. So far it seems to be a loan wolf attack by a french national. The other response has been to try and show a sign of strong support on the ground. 10,000 soldiers are still beingbeing flo deployed. So many fierce across europe from terror type events. Thank you very much from that report in london. Lets get a perspective on terror now. Former fbi agent. Thank you for joining us. Robert, as we all wonder this morning, how do you prevent such violent acts of terror. I started with the fbi and i was a dea agent for ten years. If you look how dea worked around the world and took the lead, it was formed in 1973. Thats sort of where were headed now. You think about having the nsa under the u. S. Military. You think about jay johnson running homeland security. So right now we have a lot of good investigators, a lot of agents working not only in the United States, but around the world. I think one of the things were thinking about is taking all of those experts, all of that talent and putting it into one agency. So theres one foolproof agency to lead when it comes to terrorism. Why is france seeing so many attacks, three in the last 18 months. Thats a very good question. If you look through europe, certainly theyre behind in terms of prevention, in terms of the security that they have, and its a basic formula. Its prevention and intelligence, its the security, the things you see actually on the street. And then its the enforcement whether it be drone strikes or arrests. Its like a three legged stool. It works together. Unfortunately, in europe, they arent quite where we are in the United States. Weve been able to use homeland security, use the Justice Department and our military and bring all of these resources with our local police together. I think europe is behind us. Theyre beginning to look at what were doing in new york and los angeles and i think were going to see some major changes. Obviously we have to. It also underscores the threat of terrorism in the west is spreading as the attacks ramp up on the middle east. On the home base, we hear isis is shrinking, it is being bombed, it is suffering a major blow. And yet the sympathizers seems to be out how would you characterize the risk right now. Everybody agrees, all of the expert, all of the intelligence here agrees isis is not going away. Terrorism is not going away. Its unfortunate. Ill be back again unfortunately to talk about the next event. This is something that is going to be with us for a very long time. Its something that we are learning to deal with better all the time. And unfortunately were just going to have to keep doing the kind of things were doing. There is no Silver Bullet here. Its hard work. Its intelligence, its enforcement, and its dealing with the security on the street. Its not brain surgery. Its a lot of hard work, but its the only thing that can actually reduce the risk of a promotional terror attack. Robert, thank you very much for joining us this morning. Still still to come, the Global Response on the terror attack. And stocks on a record round of course. Todays test, more banks earnings. Hello watson. Your analysis of social media and conversations on various trading floors, helps us uncover insights. Insights that help investors predict market closes, well before markets close. You know, your analysis has helped us improve our predictive accuracy by over 500 . 550. 2, to be precise, but we can always do better. I like your attitude watson. 550. 2, to be precise, but we can always do better. You wont see these folks they have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Lori. Welcome back to world Wide Exchange. Todays top story. At least 84 people have been killed after a truck drove into a holiday crowd in nice france. Good morning, that death toll could rise above 84. French Officials Say 18 people are in Critical Condition after that attack. There is increased security across europe after that 28 on the truck plowed through people who gathered to watch fireworks. Witnesses described a horrific scene after the truck loaded with weapons and hand grenades drove on to a crowded sidewalk running down people for more than a mile. People eventually killed the driver. Appears to be the work of a loan assailant and identified the attacker as a 31yearold frenchman. Frances president described it as a terror attack and said the nation will extend the state of emergency. Hes also calling up reserves to help police. The attack came eight months and a day after suicide bombers killed 130 people in paris. Neighboring countries are increasing security. German is tagtening boards. And london saying Safety Measures are being reviewed. In france there is a strong equivalent of a leave movement. It comes right after britain voted to leave the eu. Immigration is right up there. There are waves of populism sweeping the countries and france is the second biggest in europe. So this is going to hit the heart of europe. Andly speaking, there was a strong leave movement already headed up there. A politician who said if shes ever the ladder of france, the first thing she wants to do is go back to the frank and get rid of the euro. You wonder what the new security laws are going to be when it comes to immigration. They have allowed a lot of my grants from the middle east which is something i can tell you we were both in london. We heard a lot of that as a reason for people voting no and at the same time, the politicians there struggle with keeping people safe because so many terrorists are home grown. They already carry european passports, Second Generation born there so the ability to send them back is not possible. They live there. The issue of home grown terror is an issue. Thank you for helping us. We are approaching the top of the hour. The team is getting ready for squawk box in new york. Becky joins us this morning and another difficult morning for all of us. Sara, listening to what you and mitchel have been talking about. So many implications about the terror attacks. Were going to kick things off at the top of the hour with colonel jack jacobs. Well be digging into that very deeply this morning. Were also going to be talking about whats been happening with the markets. The s p 500 and the dow both ending at new highs once again yesterday. Obviously the future a little weaker this morning. If the s p 500 were to finish at another high today, it would be the first time that index has done that since all it will way back about 18 years. So following very closely. Ovl a lot of things that are happening to affect the markets today, this terrorism creating a huge cloud over the markets. We will be hearing more about whats been happening in earnings. We have several of the big financials going to be reporting this morning before the opening bell. Weve got city group, wells fargo, u. S. Bank corp. And pnc. This will continue to give us a better picture. After j. P. Morgan and black rock beat expectations yesterday. Well be trying to cover all angles of this and how it relates to the market. Ill send it back to you. We look forward to squawk box in about 15 minutes time. Still to come, Global Markets have a series of issues to digest. Gop political concerns and financial earnings among them. Wooem get insight from Jonathan Golub coming up next. 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Of course been a record week once again with various new highs and we are fighting to have the perfect week of five Straight Days of gains, all be it were not quite looking like well get there at the moment, sara. Absolutely and focus earnings today. Including the Consumer Price index and retail sales. Joining us to talk about where we go from here is Jonathan Golub. Guilty or not guilood mornin has this rally been as a result of the fundamentals, better economy, better earnings or are you one that says its all Central Banks easing the pain. It may be Something Different which is if you look right now at the total yield on stock market, dividends and buy backs, stocks just look unbelievably cheep. That return of capital is just forcing people into the stock market and pushing them out of there. Hang on for a second, we want to focus in on one area of the market that has been doing well, banks. Absolutely right. J. P. Morgan a big gainer yesterday. Led the Financial Sector of the s p higher. Joining us now from the nysc with a look of whats going on today. Kayla. Certainly the market has been hitting new highs by the financials have been left behind. Roughly about 20 below their 52 week highs so the high set in just the last year. We did get a good reading for the banks when j. P. Morgan reported yesterday. Our betting that city group and wells fargo could see some of the bright spots that j. P. Morgan did. First quarter was largely sdointing they expected profits to be growing. The bank came out and said maybe it wouldnt hit certain targets that it had set for itself over the course of the year on the revenue front were expecting city group to match 17. 7 billion in revenue. They do have a robust trading business, it could be flat to slightly up on the revenue front based on the activity he had seen at that point. Based on j. P. Morgan result maybe there could be a brexit bump. All the volatility and trading could have helped them. On the down side, city is the most global of all the banks. For wells fargo, wells fargo is the most Interest Rate sensitive. Deutsche bank says watch out for that because its margins have been hit in recent quarters. Bank is expected to report 1. 01. In revenue. They might see a bump for mortgage refinancing as consumers look around and see that Interest Rates are so low, why not refi your mortgage again. On the same token, the bank welcome making less on those yields. With the rate and yield curve flattening postbrexit, theyre going to be lower for longer and people are really paying attention to what these banks are say about the outlook for their growth and the health of the global consumer. Back to you. Of course, the yield curve, as you rightly point out, has flattened greatly over the last few months, but did we learn from j. P. Morgan there is still a spread to be earned. Bizarrely enough, that small hike we got back in december is feeding through to their earnings this year. On the spread side of the business, you are seeing that play out on the trading side. We did see revenues go up sharply there, but j. P. Is increased. It is hurting their margin so you can argue that it is good on the trading side because people are betting, but on the flip side, on the consumer side, which is what both city and wells fargo have a very heavy hand in, its still going to be hurting them. Kayla, thank you very much for that. Sara. Well see her later for city and wells fargo. Lets get back to the conversation with jonathan galu wurks. Do you buy the banks . Have they suffered enough pain as a result of lower yields. They were talking about how j. P. Morgan had this great result. It was negative growth. You had this push down in Interest Rates. Flattening of the yield curve. Simply not as bad as it was hoped to be so we absolutely need Interest Rates to go up. If Interest Rates stay below 1. Are1. 5 you dont want to own. I guess youre not bold enough to do that with so many people have been wrong. Rate strategists have had to revise their 10year yield forecast 100 times. Its telling you youre not going to get the Interest Rates on a bond until 2020. Its a very tough operating environment for the banks. You need higher rates. Everybody who has bet on that has gotten burnt. You dont need the financials to participate for the Broader Market to rally to knew highs. I wish that werent the case, but thats exactly been the story. The markets has done okay in the actually pretty well in the last five years and the banks have not been a winner on that. And even more so, the banks are so delevered because the rules that keep them out of the trading markets and the like, all these regulatory head winds, they dont have the pop to the upside when the economy gets better. What about technology, which like financials sort of lagged behind in this rally have made somewhat of a move higher this week. Right. Is that going to be sort of the next Rotation Group to participate . If you look at the earning season, theres really two big stories here. Facebook and google have brilliant Earnings Growth rates, but apple which has been the biggest adder to the overall earnings picture for the s p is now expected to climb by 25 in terms of the earnings and its expected to be 0 to a drag Going Forward and so thats a real different story. If you look at the rest of the tech sector, outside of the three of those, is really not much of a story at all, the growth is really quite weekak. Its bifurcated between a couple winners and a couple companies having a harder time. What does that mean for your overall target and outlook on the market . I actually entirely disagree with larry. We put out a note on monday which said weaker earnings, higher multiples and what we actually found in periods where earning of decelerating stock pes are just as likely to go up as they are to go down. Theyre driven by totally different things. People get confused that earnings are the only story. Right now with stocks. Volatility being really low, the vix being really low. Stocks look attractive even if the earnings are really meager so i disagree. There you go, jonathan, rbc capital markets. Thank you for joining us as we look to fridays session. That does it for worldWide Exchange this morning. Stay tuned to cnbc, squawk box is coming next. Choose to smooth. Choose effortless glide from side to side. Choose kneeloving, underarmcaring, bikini linebearing. Choose venus swirl. With five contour blades and a flexiball, it pivots with every dip and divot. Choose to smooth. Venus swirl. By switching to xfinity x1. Rio Olympic Games show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Good morning. Terror attack in france again. Truck being plowed into people. At least 84 dead, 18 celtly injured and scores of other injuries. Well have the latest develops. Announcement postponed. Donald trumps Vice President decision delayed in light of last nights deadly attack. And the record rally in the stock market rolls on. The dow and s p both at new highs. More bank results still going to come our way this way. Its friday, july 15 and squawk box begins right sglrg good morning everyone and welcome to squawk box here on cnbc. Im becky along with joe kernen. We begin this morning with the tragedy in nice france. At least 84 people dead after a truck plowed through crowds gathered to watch bastille day fireworks along the seaside. The truck was loaded with weapons and hand grenades. It went for more than a mile before Police Killed the driver. It does appear to be the work of a loan assail i cant. The attacker is a 31yearold frenchman. That is yet to be confirmed. We are going to have much more on the attack in just a few moments. First lets get a quick run down of the markets right now. Take a look at u. S. Equity futures. They are relatively flat. This comes a