Im sara. Im wilford frost. Lets get to the market action. Lets show what you futures are doing on a week where the trifecta of records happened. That was thursday. Stocks pulled back from the record highs on friday and dow futures up 24. 5 points. S p futures up 2. 5. And nasdaq futures up 9. Were coming off an up week just barely. Quiet market action. It has been higher. The tenyear treasury note yield. Housing data this week and numbers on inflation. 150 is your yield on your tenyear. There has been persistent buying of treasury that kept the yields super low. Not as low as the uk. But low historically. You would say its probably the uk yields pulling it down globally. First of all, japans economy slowing down. Gdp expanding by an annualized. 2 of a percent in the Second Quarter below market estimates, Capital Expenditure dropping more than expected. Weak overseas demand took a bite out of gdp growth for the first time in four quarters. That meant the nikkei did drop, albeit only slightly. The yen not moving too much. The gdp data not having a big the rest of asia strong. Closing sharply high up 2. 5 . Hong kong higher. Traders are expecting more stimulus. Some say from beijing and japan given the data on the gdp front under whelmed. Asia was pretty strong as a whole last week. The nikkei was up 4 . The. 3 in perspective. European markets also very strong last week, sara. They were up 3 . The dax up over 3 last week. Theyre continuing to gain on this monday morning. The german dax up. 4. A lot of the markets are closed in europe. This has been a global phenomenon of stocks rising. One measure, there was a oneyear high. The tenyear, as we mentioned, hitting an alltime low of half a percent this morning. Those low yields continue to be pulled each lower. Check out the 30year yield. Thats lower than our tenyear yield. Extraordinary. It has to do with the buying. Quantitative easing. Perhaps the chance that they buy each more debt to try to fight any negative impact of brexit. 0. 5 on the tenyear as we just said. If we think the monetary policies going to have to keep being delivered because of brexit and everything else. We could have low yields. Clearly the u. S. Is anchored by whats happening in the rest of the world right now. Broader markets. Oil prices were a big decent gains over the course of the week. Oil was up 6. 4 . Wti last week. Moving higher again today on a report suggesting russia is in talks with saudi arabia and others about achieving market stability. Weve heard that before. The talk is working lapt last week and this week as we said. Just shy of 45 bucks on wti. Almost 1 . A quick look at the dollar. Its murted. Any trade on that front the euro at oil prices, quick look at them. Its higher. But just slightly. 1344. I would say on the yen, its at the 100 mark. Many traders think the pain threshold of the ministry of finance, always on the lookout for intervention. That would be a stronger japanese yen. The japanese authorities hate that. It hurt their exporters and stock market. The japanese gdp number is disappointing. The take away is, the Economic Data hasnt been all that great. Retail sales on friday, japan gdp, lending data out of china. Yet, the path of least resistance for the market is higher whether thats on the view that the data is good enough. That means were not in recession. But not good enough for Central Banks to take the brakes off the gas. Thats where we find ourselves. With the backdrop of higher oil prices. Theres no alternative to stocks. Look at whats happening with bonds. The only thing i would say, thats true in dry markets. The gains overall, despite some of the records, very very much muted. We saw a quarter percent gain over the weeks. The nasdaq, the others would bang on flat. Europe and asia very strong. Were making records but the relative performance last week was coming overseas. Equities, bond yield are so unbelievably low. As long as they think easing is going to continue in the world and wont see a complete economic collapse low volumes, small moves. To your point. Theres less than a 50 chance that the fed raises Interest Rates this year. Thats because the data, while pretty much better hasnt been all better. Were going to see what we get from the likes of walmart when it comes to earnings. Thats an economic monitor. Better news after Department Store earnings last week. Well try to get a better picture ou q3 and 4 are shaping up. Tomorrow housing stocks, read on industrial production. Wednesday, the minutes from the fids july meeting will be out. On thursday, the outlook survey. Tomorrow, atlanta fed president Dennis Lockhart will speak. James bullard on wednesday and John Williams on thursday will offer his economic outlook. Sara mentioned, retail dominates. Home dee pea, lowes, target and gap among others. Were following a developing story out of jfk airport. Multiple emergency agencies rushing there in response to reports that shots had been fired at the airport. After arriving on the scene, Authorities Say there was no gunfire. The nypd declaring on twitter that all terminals had been searched and cleared and no shots were actually fired. According to reports, officials believe the woman who initially reported the shooting misinterpreted clapping and banging from people watching the Olympic Games which were quite exciting last night. They were indeed. Fair to say that story has died down. Switching gears to politics. This mornings other top story. Notable piece from the wall street journals editorial board. His supporters face a moment of truth. Assessing his chances, if the gop cant get mr. Trump to change his act by labor day, the gop will have no choice but to write off the nominee as hopeless and focus on salvaging the senate and house other down ballot races. Well have more on the race of the white house a bit later this hour. The other thing about this article, its not just about the gop trying to get mr. Trump to focus a little bit more. Their words, not ours. But also says his family and various members of his Campaign Team are trying to do so as well and saying theyre trying to get Hillary Clinton, the race to be a referendum on Hillary Clinton herself but trump keeps throwing too man incompetent things into the fire that take the focus off that. It was an epic tweet storm each for him against the media for calling him out and not staying true to himself and staying on message. Another week we kick off like this. What was most interesting about that oped piece in the journal, at the very end, they say they cant figure it out, he should let mike pence take the cade si and run with it. Today is the deadline for hedge funds and major investors to file 13 fs. Selling 11 million shares worth 383 million. Dan loads sold young calls and trimmed positions. It exited 21st septemberry fox and added facebook, marathon oil and cce. Appaloosa rub by david teper cut the calls and cut its stake in gm. It add will alphabet and dissolved positions in facebook and sort of interesting. Its kind of old data because its last quarter just to know what the big guys are doing. Always a good indicator. Some stocks to watch today. The kkr may bid to the television distributor. Entertainment one. Its the creator of the character pepper pig. Rejected from itv saying it undervalued the firm. Thats according to reports. Entertainment one up 6. 10 . A sevenyear keel to use ibm services. This would be a big win for ibm. Its a deal that would show its Cloud Business could compete with amazons and microsofts. The Water Technology zie lem is nearing a deal. A Global Market check. Disa pointing data out of japan to speculation about stimulus in china. Everything you need to know about whats going on globally ahead of the wall street open. Stay tuned. Youre watching Worldwide Exchange on cnbc. Were drowning in information. 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. Good morning. Welcome back to Worldwide Exchange. A trifecta of world record closes. Various records touring the week. We only eeked out the other two indexes were basically flat. Albeit only slightly this morning. Only. 2 of 1 of gains at the open, sara. Among the top stories, japans gdp growth coming in at zero. Falling short of forecasts. Were joined from singapore with a look at the market reaction. Good morning. We thought that asia, for the most part was starting to stabilize. I think the legal real thing is all it takes i think is that more bad data. Your side state side and if the fed speakers are cautious in nair tone, that may very well take us further towards our intervention zone of 100. The strong japanese currency hurting export. External demands still sluggish in the japanese context and call for japan is not firing on all cylinders. Cap x spoke to that. They simply do not believe or confidence to deploy capital or reinvest in the business aggressively. Outperformer today. The Mainland China markets, seven months high at the close. It was the markets front running the idea of more stimulus after we saw fairly down beat numbers. Also industrial expectations, policies report in an otherwise fairly mixed market. Sri thank you for that. The big question on everyones mind, when will will britain exit the eu. It could be pushed until 2019. The newspaper cites sources who say the uk government is too chaotic to start the twoyear process early next year. Of course, many perspectives remain on this. Until article 50 is invoked, we dont know. My sources, i suggest it will still be invoked early next year. The point is, it keeps getting pushed back and it will take a while. Each once it is invoked, the worries are pushed out. 2019 is exactly brand new news. It just highlights that we dont know the answer. When we come back, thought this election was all about trump versus hillary . What about trump versus the media . Weekend highlights from the campaign trail and social media, next. Plus, the worlds fastest man. Highlights from last nights events, including some golds for britain over the weekend. Yeah. You had a good weekend. Heading to break, heres the National Weather forecast from kelly cass. Good morning, sara and wilfred. Its not just louisiana dealing with flooding problems. Now that moisture is spreading out along a cold front stalled out the midwest. Parts of missouri, up toward the ohio river valley where there could be significant flooding with several inches in the forecast. Of course, louisiana seeing anywhere from 1 to 2 feet of rain, each up to 3 feet of rain in some areas. The ground is saturated. Were keeping an eye on the parishes of louisiana. The story is you dont have the triple digits to deal with. But warm and humid from the northeast to the southeast. We still have heat advisories for so many in the northeast. A nice day for chicago. 80 degrees. Hot in los angeles as well. Near 90 degrees. Well be right back. [child giggling] child look, ma. No hands. Children i, j, k. [bicycle bell rings] [indistinct chatter] [telephone rings] man hello . [boing] [laughter] man you may kiss the bride. [applause] woman ahh. [indistinct conversation] announcer a full life measured in seats starts with the right ones early on. Car crashes are a leading killer of children 1 to 13. Learn how to prevent deaths and injuries by using the right car seat for your childs age and size. Welcome back. Good morning. Lets get you up to speed on the market action. Looks like the trading week is set to start on a high note. S p futures up. Dow up 23. 5. Nasdaq up 9. Part of reap for the strength and we saw this last week as well. Oil prices are on the rise. Thats helping Energy Shares around the globe. Wti pushes to 45 a barrel. Up. 6 of a percent. Brent above 47 a barrel. This comes off of oils best week since back in april. Nat gas is under Department Store earnings and better oil last weeng. Well see how the target and walmart do this week on earnings. Now to the lip pickolympics. You missed great moments in rio if you went to bed early. Jay gray joins us with all the highlight. Good morning, jay. Good morning to you, sara. Plenty to wave the flag about for americans as they get a fast start in rio. It continues moving into week two. When you talk about speed, theres one person who knows it better than anyone. The fastest man of the world. In a class of his own on top of medal stand. Here he is. Still invincible. With his familiar stride and striking bravado, u an bolt streaked to a third consecutive gold in the 100meter dash. 8 of a second ahead of gatlin. May the best man win. Today usain has been the best man. Simone biles left little doubt that shes the best gymnast in the world vaulting to another gold in rio. The first u. S. Gymnast to win three golds in a single olympic golds. Shell go again tonight in the balance beam. The battle continued in tennis. They finished 1, 2 in track and field continues with several u. S. Athletes in the mix for medals. Mens volleyball takes on World Champion brazil on the beach in copacabana. Really should be a rocking event on the sand there with the home team playing. Also a lot of opportunity for the u. S. To grab some medals in track and field. Want to show you. Weve been trying to show you behind the scenes. The cycling suit. Usa cycling doing great here. Winning silver in the team pursuit for the women. Theyre one. Best teams in the world. These things are unbelievable. Jay, why rpt you wearing that . They study each athlete. Yeah. I think we all know wilfred why im not wearing this. I love the shirt, its outstanding. But tomorrowf we could have the cycling lycra that would be much appreciated. One of those gymnast uniforms with swarovski crystals, that would be great too. Nobody wants to see me in the cycling suit. Wilfred, again, i have to give you props. Team gb with a surge this weekend. Second place in gold. He didnt do anything. I was very much training all of these athletes. Hes been a dedicated fan. I want to give him his due. Jay, thank you so much. Great shirt. We dont really mean the lycra. We would applaud it if it came later in the week. Jay gray, outstanding weekend on all fronts. Mo farah, he came through to win. Hes incredible. Some of the greats continued. Usain bolt. Simone biles on the vault. Amazing stuff. Here is the medal count. Just to sum it up. The United States topping the list with 26 golds. 69 medals in total. China is second. In third, great britain. 38 medals in total. 15 golds. Briefly, they were second over the weekend after mo farahs victory. Outstanding from both nations i would say. Yes, indeed. Agree to applaud each other. Tough, tough, tough for us to do. But well done. Well get there. Well see how the final tally ends up. Now to politics, donald trump is no longer only targeting his opponent Hillary Clinton. This weekend, he was out attacking what he calls the crooked media. Saying its to blame for his recent troubles. Nbcs tracie potts joins us from washington with that story. Nothing new from him. But he really piled on the media in a much bigger way this weekend, tracie. He did, sara. Hes blaming the low numbers, the trump slump on reporters who arent covering him fairly. One of the major newspapers here is suggesting that trump may only are have a few weeks to turn a around. It urges the Republican Party to dump donald trump if he cant turn things around by labor day. The party says its too soon for that. South carolina, republican mark sanford is urging him to release his tax returns. Each Richard Nixon released his tax returns. A speech on national security. Hes going to lay out his vision and strategy for defeating radical islamic terrorism. His strike thatly to win the election, blame the media. Im not running against crooked Hillary Clinton. Im running against the crooked media. Hes calling out news outlets as disgusting, dishonest, each suggested Pulling Press Credentials from the New York Times like he did the washington post. Running mate mike pence says its an ongoing discussion. Hes argued in favor of a pre press. Biden is expected to tell his working class hometown that shes the candidate focused on jobs and education and that trump would make the country less safe. Now the interesting thing about them being in scranton today, its typically a democratic stronghold. You might wonder why Hillary Clinton is spending time there. They always vote democratic. Of course, its in the middle of pennsylvania which is a big swing state that trump is going after. Tracie, thank you. Tracie potts in washington. When we come back, todays top stories and check on Global Markets. Plus the great tax debate. See what tim cook says has to happen before they bring back money from abroad. This is a big issue for companies an on the campaign as well. Youre watching cnbc, first in business worldwide. Crude climbs. On a report that russia is working with saudi arabia. The great tax debate. Find out what tim cook says needs to happen before his Company Brings money from abroad. Snubbed by adele. Why the superstar is saying no to one of the biggest music events. Its monday, august 15, 2016. Youre watching Worldwide Exchange on cnbc. Good morning. Welcome back to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. Good morning from me as wechlt lets check in on the Global Market picture. This morning, were higher in the u. S. Albeit only slightly by. 2 or. 3 of a percent. The dow expected to open higher. After market highs last week. The week as a whole was pretty much floot. The nasdaq was up one quarter of 1 . Europe closing around 2 or 3 higher. The dax for the week was up 3. 34 . Its up another. 3 of a percent. France and the ftse just above flat. Asia was also strong. The nikkei up 4 as a whole. Gdp data did disappoint. 0. 2 . Expected for 0. 5 . The Shanghai Hong Kong up. Thats a nine month high for the hang seng. Better Economic Data fueled the gains imt oil has been a big part of this story behind the strength in stocks. Coming off the best week for oil since april. A 6 plus pop last week. That sent brent up. Its up. 3 of a percent. Lots of chatter about an upcoming opec meeting. Will they or wont they do anything to production the stabilize the market. There are hopes for something to happen this time around. Tenyear treasury note yield hovers. Strong demand along with global debt everywhere in the world. If youre a safehaven, pushing were at the 150 level. See what happens after data later this week. As for the u. S. Dollar, its been weaker. That has been the story on lowered expectations that the fed will raise Interest Rates. The dollar is weaker against the euro. 111. 69. It is stronger against the pound which is the currency thats been the exception. Continuing to go lower. Check out dollar yen. That would be the one to watch going into the u. S. Session today. Because were hovering above the 100 level on dollar yen. That is what is considered a breaking point for the boj. Will we see intervention . Well see. It depends how strong yen gets. The weaker dollar and diminished prospect of fed hiking, that has been positive for the price of gold. The pound might find support given that its backed by more gold now this weekend after a Strong Performance in the open than it was beforehand. I was would wondering about its because the gold is in rio. Once it comes back the end of next week might get a its a relative bet though. Wouldnt the dollar be getting more because the u. S. Has gotten more gold. Thats true. Its spread out over a much bigger population. That would have the same effect. We should move on. On the agenda this week. On the data front, Consumer Price index tomorrow and housing stocks. Wednesday, the minute from the feds july meeting will be out. On thursday, the Philadelphia Business outlook survey. Speaking of the fed, three important speeches to look out for. Atlanta fed Dennis Lockhart, on wednesday, st. Louis fed president James Bullard. On thursday, John Williams will offer his update. Target and the gap and walmart amongst others. In corporate news, google parental according to the wall street journal, they need to rethink its delivery after initial rollout in areas like los angeles, chicago and dallas proved more time consuming and expensive than originally anticipated. Delta is trying to win back customers after a system outage canceled and delayed flights last week. Theyre pending an oped in the usa today newspaper writing this event will not define us. Our focus is ensuring that it never happens again. Delta spent more than 150 million to upgrade infrastructure over the past two years. That investment will continue. Those are the words of ceo. Of course, the stock didnt really react to that. That was a tough one for the airlines. It doesnt help longterm image of airlines. Apple and other major corporations have come under fire for avoiding u. S. Taxes. Tim cook says the tech giant will not bring back that money from abroad unless there is a fair rate. He made the comment in an interview with the post. The tax rate of 35 among the highest in the developed world. Cook told the paper, it is the current tax law, its not a matter of being patriotic or unpatriot unpatriotic. It doesnt go the more you pay, the more patriotic you are. Whats interesting about this, this is one of the features of the trump tax plan to lower the Corporate Tax rate from 35 to 15 across the board. And also to have especially lower tax rate for corporations to bring back work from overseas. He is the one talking about that. Its the topic of focus of my must read. More about that in a minute. Hei hotels and resorts reporting the problem is affecting 20 of its u. S. Properties. Marriott, hyatt and intercontinental hotels. It may have stolen payment card data during tens of thousands of food, drink and other transactions. It follows similar ones in recent months. Theres word midamerica apartment communities is close to agreeing to merge with post properties. The 4 billion deal in the space is expected to be announced today. It would be the largest publicly traded multifamily Real Estate Investment trust by number of units. A second deal in the works this morning. This time in cable space. The wall street journal reporting tbg will buy rcn and Grande Communications for 2. 2 at that billion. Including debt, google capital. The Growth InvestmentFirm Planning to take a Minority Stake in the company. It serves the east coast and chicago, while grandes Business Associated in texas. I used to have rcn. Time for top trending stories of the morning. Bernie sanders latest purchase. Did you see this. Blowing up twitter verse. Sanders closing on a 575,000 lakeside home in vermont. The house complete with a pebble beach and views of the green mountains, sanders third home, i believe. Social media users took to twitter with allegations about how he got the funds to buy the house. He has one in d. C. And vermont and now a lake house. That does not exactly jibe with his image of socialist economics. His vision for the country. It doesnt. The americans can afford three homes. Its fair that he gets a bit unfounded accusations but generally why he has three homes. [ overlapping talking ]. I do feel for politicians generally. No politician can do anything with their private life without it being talked about. Donald trump can. Not seeing his tax returns. Anyway, well move on from that debate. Tesla is now removing the word autopilot from the china website. This coming after a driver in beijing crashed. Complained that the company overplayed the autopilot function. Tesla also removing a chinese term for selfdriving from the chinese website. Pokemon go players beware. The developers are getting serious about cheaters. The company imposing permanent bans on players who violate the games terms of Social Security service. Like tricking their gps system to make them think theyre in other countries to get super rare pokemon. It shows the obsession that people are going to on the game. Trending, bad news for adele fans the singer says she was asked to perform at the 2017 super bowl. But declined the offer in los angeles. She explained and said that show is not about music and i dont dance about that. Fans are upset. Maybe next time for my next album im going to do a dance album. Fair enough. Her kind of music is not really that kind of halftime show vibe, is it . I think it is. Because it appeals to so many people. You dont have to dance. You can make it what it is. The fact that they asked her. Kudos to her. Ill take beyonce every year. First as we head to break, check out the equity situation. Lots of green on the board. Some markets are closed on this monday. But those that are open continue their gains. Global stocks at a oneyear high. Stay tuned. Youre watching cnbc, first in business worldwide. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. Theres only one place where real and amazing live. Book a seaworld vacation package and eat free. Zufrjt my pick in the New York Times from a republican congressman who says i support you, donald trump. Now release your tax returns. From the representative mark sanford, writing i have no stomach for his personal style and penchant for demeaning others, but he does intend to support his partys nominee because of the importance of filling the existing vacancy on the supreme court. However, he says my ability to continue to do so will be driven whether trump keeps his word that he will release his tax records. For all of those Trump Supporters wondering why is this so important, this is a good read. He explanation why, how hes been involved in debates in congress about president s pay and judges pay. He also gives a good reason why republicans are supporting him even if they dont like his style. That is the vacancy on the supreme court, which is important. This is a good one its a good summary of that debate in many republicans minds. It shows how thin the ice is that mr. Trump is on before he loses more support from various republicans. My pick today is in the wall street journal titled the cure for wage stagnation. Outlines various studies object what a cut in Corporate Tax would mean for regular americans. Differentiating with various research to back it up that sales tax hikes tend to lead to wage incompetent creases. Sorry wage cuts. It does feed through to regular workers. If you cut Corporate Tax, youre likely to see wage hikes. The regular criticism is just a benefit big business isnt in fact fair. Wage growth will continue to be disappointing as long as the u. S. Has the worlds highest Corporate Tax rate, denying the need for low Corporate Tax rate may be effective populism. But its causing real harm to americas workers. Its really applauding Donald Trumps view to cut Corporate Tax. I wonder whether he can get more traction on this. If it can feed through to many fra digs al republican voters, the Business Owners of the United States, it could help him. But at the moment, last week the focus was not on this policy. Because of himself. If he starts bashing the media and starts talking about Economic Policy proposal, a lot of informal advisers like larry kudlow have said, maybe he can get that high ground on that issue. Well see. But not yet. Certainly not this weekend. Were in the middle of week two of the rio Olympic Games. Thats where we find our own andrew who made it down to rio. Its pretty amazing. Weve had an a amazing weekend. Got down here saturday morning. Hung out the and saw the 1,000th gold medal get won late into the night. As you heard earlier, the big news overnight for those not staying up light, usain bolt really crushing it. 9. 81 seconds. He was basically beating his chest before the 9. 81 seconds were almost each more. Youll see it right there. It was quite an extraordinary thing to behold. Beating justin gatlin. Justin taking silver. He won in 2004 but was suspended for doping. But pretty extraordinary all around. Want to talk about basketball for a second. U. S. Basketball, which should be dominating. Did win yesterday against france. The 10097. Thats sort of the problem. Only winning by three points. Kevin durant saying he thought he was going to have an easier time of it. They struggled pretty much across the board. Theyve won every time, not nearly dominating the way you might have thought. Your friend justin rose from the uk, winning his first gold. First gold in golf by the way since 1904. Beating henrik stenson. Thats extraordinary. Some people saying there may be an asterisk involved with this one because some of the best players have not come down to the olympics. Rory mcilroy and Jordan Spieth saying they werent coming down in part because of zika. I should say now having been here, i think the zika thing might be overdone and i say a couple of folks on the committee here saying it wasnt zika that kept them from coming. It was money. Thats a continuing discussion down here. Then finally, the womens u. S. Swimming team just completely and utterly dominating. I talked to katie did ledecky. I talked to simone manuel. So many Different Things that have happened. Pretty cool weekend all around. Were also, by the way, going to be talking about what happened with ryan lochte later this hour. As you know, held at gunpoint. Theres a whole security concern down here as well. Andrew, thank you very much. We look forward to squawk box. Ill be keeping your seat in the studio warm while youre away. Squawk box up in 12 minutes time. Looking good out there, andrew. Thank you. Still to come, the nasdaq on a winning streak. The longest run since 2002. Well talk about whats next with kristina hooper. U. S. Investments strategist at allianz global investor. Stay tuned. Cnbc first in business worldwide. Look at you. Youre at the top of your game. Youre unstoppable. Nothing can throw you off track. Wait, is that your car . Uh oh yeah, i saw that coming. That will throw you off track. Youre looking at around ten grand in fines, legal fees, and increased insurance rates. Lets try this again. Smart move. Because buzzed driving is drunk driving. Like having something your fit you, just right, thank you randall. Every stitch and seam of your Home Insurance, tailored to fit you and your budget. With unique features, like claim free rewards. Ohh customized Home Protection 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. Welcome back. If youre just getting up, let me get you up to speed. A trifecta of record highs on thursday. All three at the same time. But the overall gains for the week were muted. In fact, they were flat for the s p and the dow. The nasdaq eeked out around a quarter of a percent of gains. Muted gains around about 10 to 20 points. Oil was a big driver. Wti closed up just over 4 . Sorry. Close to 6 for the week. Its up again today. But fractionally, 44. 53 for wti. Theres talk that russia and saudi arabia might freeze confidence in that has eeked out. Were positive. 44. 5 for wti. Sara . Heres whats on the agenda this week, wilfred. On the data front, Consumer Price index, cpi, Housing Starts and industrial production. On wednesday, the minutes from the last fed meeting will be out. On thursday, the Philadelphia FedBusiness Outlook survey. Speaking of the fed, a few important 1350e67s things to lo for. Dennis lockhart tomorrow. Wednesday James Bullard and thursday John Williams will get a chance to offer his economic outlook. It is a big week for earnings. Big companies will be reportingment rumt from home depot, lowes, target, and gap among others. Joining us now with her strategy for the week ahead is kristina hooper. At allianz global investors. Good morning. Thank you for having me. Peter shack now calls it a modest meltup in stock. Is there any reason to think it cant continue . I think theres certainly a hot of question marks around it right now. Certainly, stocks are the most attractive asset class among a sea of relatively unattractive asset classes. But it looks like this rally is starting to peter out. Its losing momentum. It certainly is vulnerable just because its not being driven by fundamentals. If strox bought for relative reasons as opposed to absolute reason, does that play into that word you just used. If we get external shock, is there a bigger correction downwards than there might be rally upwards across the rest of the year . I think it does. Our expectation for the rest of the year is more volatility. There are certainly more potential for external events and shocks to impact the market, both positively and negatively. Right now, i would say this is something of a post brexit halo. Theres this view that the fed is unlikely and other Central Banks are likely to be more accommodating. That has created i think some of the positive fervor that weve seen in the past several weeks. But that can only take you so far. While it seems unlikely that the fed raises rates in september, its certainly on the table. We also have other events that could wreak havoc on the stock market, including a very unpredictable president ial election. Weve been wondering that election uncertainty is affecting the market and if not, when it will start to do so. Well, it seems to affect markets in small ways. I mean, it certainly has throughout the primary season i would argue. But i think now that were coming into the homestretch, it will have a bigger impact. This week in terms of short stuff, last week we hit the relative alltime highs. But data and earnings wasnt moving too much over the course of the week as a whole. We want to get inside the feds head. So much of what is happening today and so much of the confusion is created because there are so many talking fed heads. Theres interpretation, misinterpretation. Differences in opinions. Thats all aired out in the public. Id like to say fear the talking fed. The minutes give us greater insight into what the fed is thinking holistically. Im interested what youre tell your clients to do. On one hand the stock market doesnt match up with the fundamentals. On the other, you say theres not an alternative to stock. When someone asks you, where do i put my money, what do you tell them . Theres no alternative to taking risk. So we have to be selective. This is a time to make calls on sectors. This is a time to make calls on market capitalizations. Regions in terms of overweights and under weights zie. I want to come back to brexit, the pound, uk, various uk bapgs for example. What about the rest of the world . Have they shrugged off things too quickly. Is there a potential tore blowback . Absolutely. Theres the potential for blowback. I think its less likely to occur soon. Because this plays out in a longterm way, theres a potential for shocks over multiple years. 2019 is the current on the latest shock. Kristina which sector are you recommending . Were excited about technology for several different reasons. Relative to historical valuations, it doesnt look also relative to other sectors when you consider that we think and expectations are that earnings, not just earnings but revenues improve by the end of the year in technology. Likely to see it centered around technology. Biggest underweight is probably what . Probably energy. Does that mean you like financials, consumer discreti discretionarie discretionaries. Those are rotating into leadership positions and tepd to track a better economic environment. Theres opportunities with them. Second to technology would be health care. So that sort of follows the lagging. What about defensives like staples, utilities and those type of thing . We need those in the port foe foal yoe. Thanks for joining us this morning. Kristina hooper from allianz Global Investment tors. Ohm about a minute left. Want to highlight a few things to watch today. Ill be watching the performance of the big box retailers. Target, walmart all reporting this week after the Department Stores posted better results but falling failed. What do they say about the consumer . Also keep an eye on oil prices. Strong gains in oil overnight. Talk that russia might get into bed with its lost a bit of ground recently. Thats it for Worldwide Exchange. Squawk box is coming up next. Good morning. Crude is climbing. Oil prices moving higher on a report that russia is working with saudi arabia on market stability. The wall street journal out with a new opinion piece. Editorial on donald trump. They say trump needs to change his act by labor day. And Andrew Ross Sorkin is in rio. He joins us with the latest olympic action and details about that Armed Robbery of four u. S. Swimmers. Its monday, august 15th, 2016. Squawk box begins right now. Announcer live from new york where business never sleeps. Good morning, welcome to squawk box here on c nx. Im michelle carusocabrera. Andrew will join us from the rio olympics in a few minutes. First, a check on the u. S. Markets. Futures are suggesting slightly positive open. Dow opens higher by 23 points. The s p by 3 and the nasdaq higher by 10. After that trifecta hit we talked about last week, all the major averages at new highs. Shanghai sharply higher. Traders pointed to expectations for what else . More stimulus from beijing. Meantime, japans economy slowing down. Despite 20 years of stimulus, gdp expanding by an annualized. 2 of a percent in the Second Quarter. Thats below market estimates. Weak overseas demand taking a bite out of demand. European equits