Good morning and welcome to World Wide Exchange. Im wilfred frost. Very good morning to you from me as well. Its throw back thursday. Were throwing it back to some summertime classic. Business morning ahead. This is old school. This is old school indeed. We have a busy morning. Lets start with the buzz out of cleveland. Ted cruz steel lg the show. He failed to endorse donald trump. The live report from cleveland in just a minute. All i will say is given he was a candidate, sounds a little bit like a sore loser. Different if it came from mr. Ryan or many continental. He had been a candidate. He certainly overshadowed. Be positive. He certainly overshadowed governor pence who is the running mate. After another record close for the dow and s p 500. U. S. Futures little change to slightly lower. So could change over the next hour or so. Well keep you apprised. Dow futures for the moment down 24. S p down less than 3 points and nasdaqless than three as well. Check out the japanese yen. On the move and rising. The dollar is weaker and the japanese yen is stronger. That is a result of media reports just in the last 20 mints or so quoting the bank of japan ruling out helicopter money. This is an idea that gained steam over the last couple of weeks. The bank of japan is not out of bullets. Its as easing overload and it was getting certainly investors excited. They were selling the japanese yen. The yen earlier in the season hit a sticks week low. Thats helped the market rebound more than 10 from the june lows so throwing a little cold water on that this morning. Exactly and Central Banks will be in focus today. Its an ecb meeting today. Certainly thats a change in direction from the recent move where the dollar index hit a new fourmonth high yesterday. Lets have a look at european equities right now. They are in the red. Not too significantly less than half a of declines across the european embassies, but decedent gains yesterday. The ftse 100 is up for the week. Unsignificantly for the month. 3. 5. The dax is up for the week and up 5 for the month. Little bit of profit taking today ahead of that ecb meeting is nothing to get too worried about. If we look at asia, knnikkei wa higher. Japanese manufacturers Holding Steady in july, but its expected to worsen over the next few months as britains vote to exit the eu could weigh on japanese exports. The real reason sara touched on the yen was weaker. Its now moving in the opposite direction. Theres also hopes for a fiscal passage which could be in the works and give the economy a much needed jolt. As for the Broader Market here. Oil hovering around the 46 barrel level. 45. 81 up slightly. Brent crude 47. 21. Here in the u. S. As for the 10year treasury note yield, yields inching up slightly. Less demand for safe haven. The twoyear bond as well is above the brexit lechl so we did see. So Economic Data comes in better. Exactly. So we saw a lot of buying stagt after brexit pushing the yield down and were now back to where we were on brexit levels which is quite a significant reversal. Absolutely. The question now is do the fed rate hikes ramp up and spook the market as weve seen in previous markets or is the Economic Data just that much better and earnings better so theres confidence that we can handle it. I think overall im bearish and i cant believe were hitting new highs. What weve seen in the last week is encouraging. Encouraging signs when you see yields go up. Dollar stronger. We see gold lower and equities higher. Thats a fundamental rally. The question is how long can it last. And can the multiples keep up. Who said i just dont see stocks at these valuations, but if the earnings do come in better and start to look better and start to show higher multiples, they could justify the stock prices and with earnings overall looking better, at least on beats. Well continue to see next week is another heavy week of earnings with Consumer Staples and technology. Well see if that hold true. Well show you the trade. Everything is reversing a bit here this morning. Its a fractional move. Now earnings have of course generally been better. One name in particular was disappointing. Intel however had slower Revenue Growth at its Data Center Business weighing on the firms bottom line. Chief Financial Officer giving a spostive outlook for the second half of the year. We have insight into what we think some of the big cloud customers are going to buy. We have new products come sboog the data center that we think will give them capabilities to buy a richer mix of products for us. So momentum in the data center and particularly in the cloud as we go into the back half of the year give us more than seasonal growth in q 3 and q4. Plenty of other stocks to watch today. Earnings related. American express posting earnings that exceeded. Revenue growth a big focus for the Company Coming in slightly below wall street forecast. Ebay hiking outlook for the year. That came in better than analyst estimates. The firm also launching a 2. 5 billion repurchase program. The stock up higher. Qualcomm beating on both the top and bottom lines. 6 higher. That Company Offering an upbeat forecast as well. Citing Strong Demand for mobile chips in china. Strong demand for barbie doll. Mattel posting smaller than expected loss. The better than expected results after toy maker add add diverse selection to its collection. F 5 posting revenue. Thats up 2. 6 . Meanwhile new mont. Mining. Thafl looking pretty as gold prices have gained. So elon musk has unveiled the new master plan hes been teasing for teslas future. He teased on twitter. In a blog post last night, musk outlined a vision to expand the company to commercial vehicles, car sharing and slor energy system. The new lineup includes a heavy truck, a public transport bus, a new kind of pickup and a exact suv which will be unveiled next year. Musk also restated his argument for tesla to combine and make the auto pilot feature much safer. Thats come under scrutiny. The plan doesnt offer details how the plan to pay for these details. At a time the company is burning through cash. This company and this man is not short on ideas. Many investors have been buying the stock over the last few years on his grand ideas, his disruptive ideas. The question is can he deliver it. Where they have struggled until the mast is on those production targets. Theyve had to continue to lower forecast, even this year. Last year came in very short and the cash burn happening at the same time. Absolutely right. The title of this was master plan part two. Overall interesting ideas. He talked about a future exact suv. A pickup self driving buses. Lots of ideas like that. Theyre quite vag and ambitious. Its really what the stock price now is. Can he hit production targets. Do you believe the hype or do are you going to be realistic about production targets. Right, economic reports on the agenda. June existing home sales are released at 10 00 a. M. Expected to slip half a percent. Following a 2 increase in may. The ecb comes at 7 45 eastern. General motors travelers and Union Pacific are among some of the names reporting results. After the bell well here from starbucks, chipotle. Twitter question of the day gets to discussion on the skperngs markets. We asked you with earnings coming in a little better, i would put microsoft at the top of that list, do they justify the record stock prices . Clearly valuations are running up into the 20 times Early Morning frearnings for the broar s p. My answer is no. Very loud and clear. Get your answers in. Well bring that and discuss it further. It looks like twitter agrees with you so far. Back to politics because it was a drama filled evening at the rnc in cleveland as ted cruz was booed by the crowd. Amon is on the flor of the convention. He joins us with more. What was that like . Its an astonishing thing going on here. They are trying, sara, to bring unity to this party thats had such a divisive primary fight all through the year. That effort to bring unity failed last night. Lets start with mike pence the governor of indiana. This was supposed to be his big night at the Vice President ial selection last night. This was his chance to address the crowd, to pivot towards november, toward the general election. He did formally september the Vice President ial candidate last night. I am deeply humbled by your confidence and on behalf of my family, here and gone, i accept your nomination to run and serve as Vice President of the United States of america. Will despite that uplifting moment though there was the ted cruz nonendorsement. So much anticipation going into this. Whether or not ted cruz would endorse donald trump formally after that bitter fight. The expectation was high going into the speech and over the course of the speech, the audience here at the cue in cleveland began to realize there was no formal endorsement coming from ted cruz and they began to guest very restless, in fact booing him at the end of the speech. Heres how it all went down. In you love our country, if you love your children as much as i know that you do, stand and speak and vote your conscious. Vote for candidates up and down the ticket who you trust though defend our freedom and to be faithful to the constitution. That provoked a reaction. That vote your kashs is the phrase the Trump Campaign has been using in the hall. They want to be able to voes their conscious as delegates in the hall. That was loaded language to show he wasnt going to endorse. He congratulated donald trump on winning the nomination, but he didnt endorse him and clearly the speculation is setting himself up again for president ial run in 2020 guys. So a lot of politics here in the hall last night. Sort of sound like sour grapes to me given he was a candidate and a losing candidate. Not like paul ryan or mitch mcconnell. Either way the fact he was booed and jeered, is that not positive for donald trump. It is pottisitive. Theres a broader Republican Party out there and a broader american electorate out there. You have to reach a number of audiences. You have to reach the group in the hall. The broader party. The entire voting public of the United States. These are bigger groups than this group here in cleveland this week or very much for donald trump, but when you look at ted cruz, hes saying simply im not going to compromise on principal. Very tough to do when you lose in the way he did which is with donald trump calling him lying ted. Suggesting his father was involved in the kennedy assassination. These were things he took to heart and was not going to turn around last night. What are you hearing about Donald Trumps own headline speech tonight . Is he going to talk about policy, Hillary Clinton . What do you know. We dont know much. The Trump Campaign has been keeping everything close to the vest. On the stump, donald trump doesnt like to speak from a prepared text. His aides have been trying to get him to use the teleprompter more. He mocks others for using the teleprompter. They want him to do that. Youll assume we will see that tonight. A much more scripted donald trump tonight. Thats why this convention has been so unconventional. A throw back to the 1960s or 1920s. Nothing like what weve seen over the past several decades. This one has been very political, very wild, very out there and very much reflective of the campaign year. The unconventional convention. Thank you very much. Tweeting ted cruz said dont stay home in november. He said cruz should have stayed home tonight. Why did he go why did they let him come. He rallies up the base of the Republican Party. A programming note, tune into cnbc tonight 10 00 p. M. Eastern time for complete coverage of the rnc including Donald Trumps prime time speech. Will it be scripted on unscripted. Thats certainly one question. The ecb is holding the first policy meeting today since the brexit vote last month. Followed by mario draghi. In frankfort with a prove, julia. Reporter thank you so much. I expect reassure rens from mario draghi saying we stand ready to provide more stimulus if the market and economy need it, but for now, we have to wait and see what the data says. We just havent had enough real data since that decision by the uk to leave the eu to make any kind of decision on just what the impact will be on growth and on inflation so i think hell sideswipe that one for more i think the more interesting aspect here is the market response. The flight equality weve seen in bonds. Thats raised the challenges the European Central bank faces in buying bonds. 50 of German Government debt is out of bonds. Its not eligible due to the ecbs own criteria so the question is do they decide to tinker with some of that criteria to open up the amount of bonds valk. Im not sure he does today. He said last month we talked about it, were not ready yet. So jump forward one month. I think hes likely to wait until september in the updates of the inflation forecast to make a move. We wait and see. Also expect him to get plenty of questions on the banks. The real dent to share prices since the brexit vote. They havent recovered. Only half of the 20 losses in fact since that vote was made. He is going to face questions. Again, i dont think hes going to answer because weve got stress test results at the back end of next week. He want want to preempt that. Plenty of questions. Long answers, probably not saying very much. Back to you. Thank you very much for that preview. That News Conference 8 30 a. M. Eastern time. The difference of course going in was he didnt want to influence the vote. Maybe hell have something to say on brexit coming up. When we come back a breakdown on intels Second Quarter growth. Overshadowing better than expected profit. Well get more insight of what to do with that stock next. Before taking his team to state for the first time. Gilman go get it, marcus. Go get it. Coach gilman used his cash rewards credit card from bank of america to earn 1 cash back everywhere, every time. At places like the batting cages. [ crowd cheers ] 2 back at Grocery Stores and now at wholesale clubs. And 3 back on gas. Which helped him give his players something extra. The cash rewards credit card from bank of america. More cash back for the things you buy most. The cash rewards credit card from bank of america. 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. On is the cnbc news line. Executive director and senior analyst. Good morning. This is a stock that has run up quite liesly into the report of the last three months as the Company Transitions away from the pc world was last night a step back . Not really. Youre right the data center missed expectations for the quarter. We think that weakness was temporary. They generate a lot of rev flen from cloud customers like facebook and amazon. They didnt buy a lot of processors in the Second Quarter. Saw weakness in enterprise. Been a theme for a couple of years now. Theyre introducing a new chip for a lot of their server customers called broad well. We this that resulted in customers waiting to make purchases. If you look into the Third Quarter t growth and the data center is going to accelerate. We think that business is going to grow from up to 5 year on year in the Second Quarter to up, you know, double digits very solidly. Data Center Business was a little weak in the Second Quarter, but it looks like its rebounding pretty strongly. The share prices off 3. 25 . Is this a buying opportunity this pullback in morning . So the way i think about intel, weve got a 35 target and relative to market which has had a tremendous run over the last few months, intel in our opinion stands out as being a defensive name, a stock thats got a good risk reward. Doesnt have a lot of downside risk. We think, look, whats being overshadowed here is a p chad qualls pc business showing strength. Better than expecting in the Second Quarter. Thats a business that could show some upside as you look into the q 3, q4. The name has underperformed tyrell 2i relatively speaking. They have 3 dividend yield. Very quickly here. Are they going to be is intel going to be part of the new iphone 7. I know theres a lot swirling around about that. How much is priced in there and how much of an opportunity that will be for intel if that happens. Yes, theyre in there. They more or less confirmed theyre going to be shipping the base band in the Third Quarter. You know, qualcomm who is losing some share also confirmed you know that point yesterday. I think this is fairly well understood by the market. You know, whats, you know, critical at this point is figuring out what happens next year. We really wont know until november, december, but intel did confirm they are on the iphone which is symbolic because its the first major win for their mobile chip business. Thank you very much for joining us this morning. Still to come, the dow closing higher for a ninth straight session. Its longest winning streak in more than three years. Well talk about the factors likesly to drive todays action. Stay tuned. Youre watching cnbc first in business worldwide. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. And grease in just a minute on dirt and grime mr. Clean will clean your whole house and every room thats in it. Floors, doors, walls, halls hes so tough, he cleansem all grimy tubs and tiles hell do so your bathroom looks clean as new mr. Clean gets tough on stuckon stuff cleans kitchens in a minute. Mr. Clean will clean your whole house and every room thats in it. Mr. Clean, mr. Clean, mr. Clean announcer are your children in the right car seat for their age and size . It may be too late to check when youre on the road. [blaring car horn and skidding] fortunately, youre on the couch. Stephen king, the master of suspense and the macabre. I enjoy keeping people up at night. My Analysis Shows your stories are actually about human connection, even love. Great storytelling needs drama and empathy. My cognitive apis can help any business Better Connect with its audience. You should try writing a book. Find a remote hotel. Bring the family. I do not think that is a good idea. Tyrell tyrell javers. Good morning. Earnings alert. Instel and the shares are getting pun irned. New this morning. Elon musk delivering a master plan for tesla including expanding to bus and suvs. Ted cruz reopens party wounds in a party address. What should we expect from the candidate himself. Its thursday, july 21, 2016. Youre watching World Wide Exchange cnbc. Good morning and welcome to back to biejworld wide exchang were throwing it back with some summertime classics. Usually our director nails it. Wilfreds song of the summer. Throw back, coming up later in the hour. Its slow. Theres been some other fast ones. Anyway, lets check in on Global Markets which are in fact slow. Were lower only slightly though in muted fashion. Possibly pointing to the dow breaking a nine day winning streak. Long nest three years. Though we do have Economic Data on the ecb coming up. We only slightly blow flat at the moment. The dow could make it ten days in the a row. Only 18 points to eradicate to get it to positive territory. The s p is down and the nasdaq by four. Lets have a look at the european trade. All be it slightly around the quarter to half a point of declines, but bear in mind the dax is up around 5 . The ftse 100 is up around 3. 5 month to date. So some declines ahead of ecb meeting are not too much to get concerned about. Asian trade we did see gains for the nikkei because the yen had been lower. Changed directions after comments making the likelihood for helicopter money a little less. The nikkei had already closed and finished up. For the Broader Market picture here. Lets quickly show you what happens with the price of oil. Little change, 45. 79. Hovering below that barrel level of wti brent slightly lower by a cent. Still about 47. Wti down 7 for the month. Tough month. Energy stocks are the worst performing sector for the s p this week. Technology actually the shining light of the week thanks is part to microsoft. Weve seen yields take a bit higher. Nothing extreme. Theyre floot right now. There has been less demand for the safe haven Treasury Bonds on the stock market rally. 1. 57 is your yield. The two dwreer as the better Economic Data comes in. Thats also helping u. S. Dollar. Ta dollar index at a fourmonth high. See if they can maintain those levels and see if the stock market can continue to rise despite a stronger dollar which weighs on corporate profitability. The stronger yen could hurt sentiments for Global Markets. Lets have a quick look at todays top stocks to watch. First up, american express, a mixed quarter for the company. Earnings beat the lev news fell short. A little bit later. Intel shares bheen while as you can see down 3 . A big drag slow Revenue Growth at the bat Center Business. Qualcomm jumping this morning. Offering an upbeat forecast strong bhand for mobile chips in china. Up some 6 . Following in suit of microsoft tech performing well this season. Among todays other top stories elon musk unveiling his socalled master plan part two. Hes been teasing it on twitter for a few days. Joining us now with all the details. How many years before we see tesla semis on the road. I think its quite a ways, sara. Youre looking at promising, wee along ways from seeing electric autonomous drive semitractor trailers out on the highway. Here are the main points he made during his master plan which he released on the tesla blog last night. Really four main points. Integrate solar city. Expand the vehicle lineup to include a suv and pickup. Autonomous drive cars. All vehicles will have the ability to be autonomous drive in the future and that works with the fourth point that tesla plans to start a care share fleet. You may have a tesla that you own that could be part of the car share program. You will also be able to add your car to the tesla shared fleet just by tapping a button on the tesla phone app and have it generate income for you while youre at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or loss or lease cost. As i mentioned earlier, new vehicles are in the future for tesla. We dont have definitive timelines. One is a exact suv. The other one being an electric pickup truck which is interesting considering the fact that pickup trucks in the beating that they take, you would think perhaps an electric pickup truck may not sell that well. Believes part of the portfolio in the future. Finally when you take a look at shares of tesla. They made the announcement on the bid for similar city. At the time everybody said this is ridiculous. This is going to really tank the stock, push it down well under 200. It did for a while. Look where its at right now. 230 a share up more premarket today. The interesting thing, guys, no mention of specifics in terms of how much this master plan will cost or how it will be paid for. And i just wonder if theres increasing scrutiny on those points because weve sort of the gotten used to this idea that musk presented grand ideas that are very disruptive and really show us the future, but has been unable to deliver those ideas in a timely and Cost Effective manner. Im not sure theres going to be a whole lot of scrutiny. There are people mentioning whether its on twitter or the internet, look he hasnt developed prooefts plans and made the company profitable. Why should we expect this is going to happen in the future. The counter argument from the people who are supporters of tesla said this is a grand vision. This is not a corporate statement in terms of im on this date we will make in amount of money. I can understand both sides of the argument here. Im not sure when the analyst listen to all of this and they take it all in, its going to change their projections at all. I doubt it will. Good point. Important distinction. Thank you for joining us this morning on teslas master plan part two. I wonder when well get part three. Lots of earnings on the agenda today. Chipotle is going to be a share to watch. Share of the chain down. This Company Continues to struggle with the fallout from its problems last fall. Plan d. Thats about as far as im going to go. Trying to recover from series of food born illness. Second whether sales have recovered following the e. Coli scare. Chipotle has been pumping up Customer Loyalty programs. Offering free brurritos. Continue to droif that momentum. It could take years for sells to fully recover. Is down more than 12 so far this year. The third thing to watch. The menu. Watch to see if the recent addition of chor right knee sow helps to alleviate the drop in quality. Thank you very much for that. Made me hungry. Its day four of National Convention in cleveland. Todays speaker ivanka trump and finally the candidate himself, mr. Trump. Joining us now, good morning to you sara, thanks for much for joining us. Heard you discussing yesterday what we were to expect from ted cruz. You kind of call he wouldnt in fact endorse mr. Trump. Therefore we were overreacting a bit today. Given the coverage the fact he didnt endorse mr. Trump is getting. I dont think so. Neither the cruds campaign or the cruz operation or the trump team here at the convention properly accounted for what would occur on the convention floor. Ted cruz made a significant gamble last evening. He decided that donald trump was not going to win in november so he was going to lay his stake on one of the most important nights for team trump. I dont think cruz handled this particularly well. He probably wouldnt have gotten booed had he simply not told delegates to vote their conscious. He would have had a great speech and a great moment if he hadnt said that line. The fault goes to the trump team. They should have known what ted cruz was going to say and they forecast it. They failed to do that. Now theyre going to pay another price another day with bad news heading into what is the most important night for donald trump of this campaign so far. I wanted to look ahead to tonight. Peter tooel, who is a name thats familiar to us on cnbc, noted venture capitalist, billionaire investor. One of the first on facebook and the board. Speaking ahead of trump, do we have any sense of what his message is, how uncomfortable its making other tech executives in Silicon Valley and what he might be getting in exchange for the support for trump. He is a long been really a libertarian and not a republican, although hes certainly been more in line with republican candidates than democrats in the past. Hes very much his own person in my estimation. I suspect hes going to give the speech he wants to give. Not the speech the republican officials backstage want him to give. I would expect as weve seen forecast in the news hes going to call Silicon Valley out. I would expect he is also going to call typical politicians out. This is something weve seen out of him and his comments in the past. You know, when you have a billion dollars plus as peter teal does, you dont care what anyone educational lducational do you think its going to be a typical donald address or will this be more structured with policy coming from the teleprompters. I believe hes going to give a teleprompter speech. I would be surprised if he didnt. I think it will be a wellwritten speech with the help and input of professional speech writers and if he follows the script and also offers as you suggested some forward looking policy, donald trump has done a very good job or defining Hillary Clinton. That has been much of what his complain h campaign has been about. Hes had high level policy conversations with a little bit of specifics on tax policy. Beyond that we havent heard a lot. Tonight is a very important evening for him to make the pivot to Start Talking about how hes doing to lift people up. What hes going to do to help people in the middle class and those in the country in poverty. Well see if he duds that. Hes unpredictable. That would indicate to me the company and an understanding of what he needs to do if he wants to be successful in november. Will he win sara facten over, that is a question. The great thing for him about to the. This is so key. If he has a great night, if all the speakers hit it you out of the park and we dont have stroefgs e controversy amongst delegates. Tomorrow we wont be talking about anything beyond what happened last evening. He does get a do over. Thats a nice thing about convention for candidates. You have a new night with a new set of speakers. So i suspect that we will have he will do a good speech. Hes a very good speaker when hes focused. Thank you very much for joining us with the commentary from cleveland. Be sure to tune into cnbc tonight. Completely coverage of the convention. Will he win sara eisen over as well, thats the other question. Less likely to discuss. Coming up, todays must reads. Heres a look at this date in history. Six years ago president obama signed the doddfrank and wall form Consumer Protection act. Certainly a hot topic in the election this season. Stay tuned. Well be right back. Welcome back to World Wide Exchange. Nine Straight Days the of gains for the dow. Current the dow lower. Only around 13, 15 points. The s p and nasdaq only around north. 1 . So perhaps eradicate. What. Whatever. Just below flat. Theyre expected. Anyway, well see if the futures can turn around and continue to mark all three closing at record highs. Approaching the top of the hour. The team is getting ready for squawk box. Andrew joins us with a hook of what is coming up. Good morning. We have a lot of top this morning. Were going to talk about the election. Were going to be talking about voting your conscious. Were going to be talking about what took place last night. We have Governor Scott joining us. We are also going to talk Corporate Governance this morning. Warren buffett will be on the program at 8 00 a. M. A big corporate government announcement among a group of heavy weights coming out this morning. Talking about principles about how management and shareholders should interact and a couple of big surprises out of that. Of course can you give about earnings and a react to what happened with intel. We have the cfo of gm and a little tesla throw in in between. Thats what on tap. Skru have you have Warren Buffett on the show. I should have ended with that. Warren buffett, 8 00 a. M. Well see you in a few. When we come back, a ecb meeting. Well get insight from lindsey piegza. Youre watching cnbc first in business worldwide. Welcome back to World Wide Exchange. Among todays top stories, ecb and Interest Rates. Joining us is lindsey. No change expected from mario draghi although the News Conference all sprinteresting. Will he signal more stimulus on the way. Thats exactly right. Were waiting to see if we see anything. Both Central Banks have signaled a willness to add additional stimulus if needed. We havent seen anything yet. Of course the boe still waiting on the shriideline. We do not expect any additional annoyance aannouncement. Up their pledge for additional stimulus later in the year, but somehow increasing the qe program. Right now theres a tremendous amount of uncertainty in the marketplace. When there is this uncertainty, Central Banks tend to err on the side of caution. Lindsey, lets switch the focus back to the u. S. More record highs for u. S. Markets. Earnings have been coming in slightly better. We put that question to our viewers on twitter this morning. Do the recently improved earnings justify the record highs. 62 say no. What is your view. I dont think they do. Right now swooer still seeing the fundamentals in the u. S. Economy very fragile and very moderate at best. Youre still talking about Corporate Investment negative for more than a year youre talking about a very modest consumer facing very limited income growth. Limited job creation. Were not expecting much of a bounce in the second half of to year which we would expect to bereflected in the equity market. Just to push back. I know this has been your theme for a while. Youve been less optimistic. The argument is not that things are robust and everything is great in this economy, but the argument is were getting a little out of the 2 range and that Economic Data and therefore the earnings as well and the outlooks for companies are better than low expectations. Do you admit thats the case. I think you can make the case things are slightly better than the worstcase scenario, but when you talk about getting above that 2 growth rate, i would actually argue the u. S. Economy is poised to fall below that trend rate. In fact i think that Second Quarter may be the peak for this year and we continue to see a slow bleed in activity through the end of 2016. If youre talking about the bar of expectations, this may be the peak level that we see for the year. Lindsey, if we look at the market gains, its come in a more traditional fundamental rally with the dollar still being strong with bonds selling off while equities have been bought. Is that reason to take confidence at all . I think at this point right now the dollar is looking as if were in the prettiest girl and the ugliest girl contest scenario. Right now investors are concerned. Looking for capital flees into safe havens. That will continue into the yen, the dollar, and, of course, u. S. Equities as well. This isnt a recognition of fundamental strength as it is finding a safe haven amid a sea of uncertainty and weakness. What data point are you worried about and when you look for the weakness you call in the second half of the year, where do you see that stemming from. The number one sector im concerned about is the fact that businesses are not investing. Theyre not growing 6789 as i mentioned. Were talking about 17 consecutive months of negative business investment. So corporations, a wash in cash, are still very concerned. Very hesitant to put that cash to work to play in equipment, structures, highwage fulltime employees and without that type of development, we cant expect to maintain even this moderate pace of hiring that weve seen and without that type of job dreegs, we cant expect to maintain a stagnant 2 growth pace. Politics is shaken markets across the pond in recent weeks and months. Youre at the convention. Will the president ial election start to do that a little bit more as we get closer to november. Theres always uncertainty surrounding this type of major election. This time around with such a divergence in the candidates proposals that could affect the economy one way or the other, i think this president ial election will add even more uncertainty to the marketplace. Which in a time when we have businesses and consumers still on the sideline, this will only exacerbate that he is tsitant s that is out there. When you look at the bond market which people say is more pessimistic and depend on central bank easing and not raising Interest Rates any time soon. Sara, what are you watching today. Earning and Economic Data. Well see if the it has been trending lower, which is a good thing that the number of americans filing for unemployment claims is coming down. A sign of strength and less firings. Ill be watching the ecb decision. Not the decision, but the press conference. Mario draghi the best central banker in the world. Always good to listen to what he has to say. You agree hes the best in the world. No, i wouldnt say best. I think hes the most interesting when it comes to language and rhetoric. So well watch his press conference, 8 30 a. M. Also squawk box coming next with Warren Buffett. Dont misthat. To earn 1 cash back everywhere, every time. At places like the batting cages. [ crowd cheers ] 2 back at Grocery Stores and now at wholesale clubs. And 3 back on gas. Which helped him give his players something extra. The cash rewards credit card from bank of america. More cash back for the things you buy most. Good morning. Today on squawk box the dow climbed to another record high. Now on a nineday winning streak, but whos counting. As we just alluded to, ted cruz stealing the spolt at the republican convention. He didnt endorse donald trump then he got booed off the stage and reportedly heidi cruz had to be escorted out. A mega beer deal getting the okay from u. S. Regulators, but with some caveats to protect craft brewers. Its thursday, july 21, 2016. Summer is flying by. Squawk box beginning right now. The winning streak for the stock market continuing. The dow ending at record highing for seven straight dies now marking nine days in a row of gains and youre looking at the u. S. Futuring right now. See how the market sets itself up. Not looking well, not looking terribly bad, but not in the