Im sharon. Bull is is live and kicking. The s p 500 closed at new high today, something it hadnt done in more than a year investors still giddy after the june jobs report that put a lid on fears that the u. S. Economy is slowing down. Some say investors want to buy u. S. Equities simply because so mu global urn certainty and few investing alternatives out there and today, buy, they dow j industrie cl ld 80 points to 18,226. The s p 500 seven to that record close and the nasdaq which had crossed the 5,000 mark earlier in the settled a smidge below. Earnings season is underway. Alcoa topped expectations after profit from its caan weaker results in its other units due to declines in Metals Prices t. Company that will be spl two this year earned 15 cents a share. Revenues were slightly better than estimates, though 10 employee lower from a year ago. Th than expected results helped g boost. Sush lee has more. Much better quarter. The bar was set low for the quarter with expta drop from a year ago. Acquisitions in organic growth helping to lift revenue in the quarter. Alcoa also reassuring the market that is the company is still on track to separate into two separate alcoa housing its commodities in the fauch and manufacturing business. O this year. The analysts say aerospace sw a key for Going Forward and alcoa raising targets next year, chgd added business. Heres the ceo on the demand. We predict for the second half, a growth of 6 and we see in 2017, the double digit growth in the market and when you look at fund mamentals, theyre t e really be a ke when the split happen, som this business report, im susan lee. As the profit reporting season gets rolling, investors will watch to see if Quarterly Results improve. And whether the earnings recession is endinging. As bob pisani explain, that could easier said than done. Consecutive quarter of negative earnings growth. The worst showing since 2008 and 2009. But analysts are expecting earnings to turn positive in the third and fourth quarter. A lot has ng reces that weve been experiencing. Thats because analysts are expecting it to improve including techno and energy, but a strong dollar could negatively influence earnings and l some financials. And the price of Oil Companies is closely correlated to the price of oil, so improving oils there depends on oil going up or stabilizing. All of this could happen, but getting it all right is a lot to ask. One final point, its true that o earnings he stock growth. Measures. Ow but dont kid yourself, in the long run, the trajectory of earnings has always mattered. Im bob pisani at the new york stock exchange. Well it hasnt been a strakt line for the Financial Markets so far this year. In fact, its been a pretty bumpy ride. Raising the question, do you need to be an active or passive investor to make money in this market . Matt is strategist who joins us now to discuss. I w an interesting satsic saying about twothirds of stock have moved about 10 since the may 2015 high in the market and about 40 have moved 20 or more. That means is that its a stock pickers market and so does mean one needs to be an active investor as an individual investor. I think it does. The one thing where people say first of all, i dont think we should go back to day trader, saws trippers and people can get slammed easily. When you get a market to a position where its as expensive as it is today, i can do that on the cape ratio, which is above 25 again. We saw that this 2000, 2008. The market tends to stall out and if the people can move around a little bit into specific stocks and grou than the market. People say just sit in an index fund, but when the ratio got above 25 and you pulled back a little bit and moved around you little bit. Tter. I am a big believer in the efficiency of passive investing. The economical qualities that it has. But ill grant you the idea that that doesnt mean you t go. Ther times when you need to heavy up and times where you want to take profit. So, what youre suggesting here is not active market timing, is all. Happens one day. Become a then the fed speaking the next day but when the risk reward changes for specific groups and stocks, you can move your portfolio around. Talking months apart rather than days, but a great instance is st were here on the defensive side of things. You tillty side. They had a great run. We were lucky enough. Pe ratio is well above 20 now. One group thats been lagged care stocks. Al ly a d but suddenly, were seeing that when youve got group thats t i loved, sorry, very breaking out, you can shift around a little bit and make that you need to do your homework here. Whether looking at individual stocks or moving between dichbt types of mutual funds, you want to know which one had a long track record even if you are t thanks so much. Tick wi inter he rates are just too low long time critic of low interest rates, esther george, believes the rebound in hiring in june is reason e push rates higher. During a speak today in missouri, she said rates this low can can create economic risk, especially with the economy at or near employment. Now to china are an International Tribunal is set to issue a long awaited ruling that challenges china easter tor yal clai in the south china sea. The area represents 5 trillion in trade and pits the interest of the worlds second largest economy against those of the first. We have a report ahead of the hague ruling, chinas Propaganda Machine is on full throttle, asserting what beijing sees as its rights in the south china sea. The communist party papers have been painted as a victim of a washingtonled attempt to control chinas rising power. Meanwhile, official state tv has been running stories all day say ing that nearly 70 countries hat for beijings position in the a sea, but its. They have their own claims including the philippines, which has taken its case to the tribunal, arguing china is violating international law. Chinese officials have said they will ignore what the court says and over the weekend, china held mili waters. For the u. S. , the beijin is seen as challenging washingtons roll in ase asia well as the American Security system. 5 trillion worth of trade is is shipped through these waters. The u. S. Has challenged chinas rights to the sea and has increased nato wrol pa say its support allies and uphold international law. The fear now is that if the court rules against china, beijing could take more aggressive action, which could lead to greater confli the United Kingdom will have a new Prime Minister soon. Teresa may will become the next occupant of 10 downing street. David cameron says he will resign wednesday. May will take over at a time of after the vote couple of weeks ago to leave the european union. Shell become the uks second female p minister. Margaret thatcher, the first. New planes and challenges are dominating the air show in london. For stri titans, boeing and airbus, the big question is how do they manage a backlog of orders as new Companies Enter the mix. Phil lebeau has more from marlbo after years of soaring higher with huge orders for new planes, boeing and airbus are shifting their flight plans. The focus now, delivering more planes and cutting int a massive backlog of orders. We get about 5700 commercial planes in our backlog today. We expect to build about one this year, so not as great as previous years. Stronger and narrow bodies than wide, but this is about execution now. And successfully delivering on that. Boeing and airbus have increased their annual deliveries and their latest models which are more fufl efficient are in demand, but new commercial planes like the cs 100 from bombardie is an option for airlines, in this case, offering a plane with a wider al and seats than those found on most planes in service. We believe we ha unique solution and the customer likes that. Coming from a Company Based in canada a longterm threat . Youve got a better experience, in flight poten to be perhaps. Better than on other planes today. Zpl perhaps the best news for planemakers, is that over all demand shows no sign of zlslowi down, particularly in asia, where a rising middle class is taking more flights to more cities. Phil lebeau, england. Still ahead, a billion dollar law medias role. When its platform is used by terrorists. Summer driving is getting more expensive. The average price of a gallon of gasoline down seven cents, now e current price is is 2. 54 less than a year ago because of a drop in oil prices and abundant supply of gasoline. The higher price was in san o at 2. 90 a gallon. The lowest in charleston, south. 1. 91. Donald trump says he will decide on his Vice President ial pick in the few days and that hes leaning toward a political pick rather than a military one. Sides will soon pick are running mates. Whats happening on the front with donald trump. A bit of a bachelor reality is aping with potential choices. He campaigned in resent days with newt gingrich, he was with chris christie. Tomorrow, hell be with mike pence, somebody a lot of people think is at the top of tw alongside them. What the personal vibe is. As donald trump said, well get the deci she has campaigned or used as a surrogate, cory booker, the senator from new jersey. She went out with elizabet, t p senator from massachusetts and later this week, shes going to campaign with tim kaine, the senator from virginia, who is seen by many as the frontrunner for that Vice President ial slot, so, again, you test your personal chemistry. Your campaign diets chemistry with that person and then make your decision. Da minneapolis, batson n r rouge and this afternoont michig what did the candidates have to say today . Hillary clinton did not have a public event, so she was silent apart from a few but donald tr notably gave a speech on veterans and at the begi his speech, he had a passage where he said i am the w officers, he also said he was going to be the candidate of compassion, but that is a memorable phrase in american politics, law and order h the police in the disputes and protests that are going on across the country. All right. There yowa. Thanks. Microsoft and swren electric focus. Eal in the cloud an general electrics Software Platform will be available on microsofts Cloud Platform next year. The companies connect machines and devices to the cloud to gather data and under the trans anchor, current customers will get access to microsoft cloud offerings. Shares of microsoft up half a percent. Ge fluttered up one cent to 32. 21. Starbucks will raise the base pay of its u. S. Employees by at least 5 in october. The chain will double the rewa who have worked c as a result, employees can expect their compensation to rise between 5 and 15 . Starbucks shares off a little bit at 56. 32. Kimberly clark is halting operations in venezuela. T they say the shortage of materials and rising inflation has made it impossible to continue business in the south american country. Shares did not react much to the news. They rose to 136. 14. Shares of allianceat activists e funds capital disclosed it had a nearly 7 stake. Shares rose 4. 5 to 210. 39. The securities and change commission is reportedly investigating tesla to determine if the automaker violated a Securities Law by not reporting a fatal crash in selfdriving vehicles in may. This is according to the wall street journal. Tesla says it has not received any communications from the sec regarding the possible investigation. The sec had no comment. Shares of tesla fell in afterhours trading followit fin u. S. Terrorre suing facebook for a billion dollars. The lawsuit filed in new york federal kaurt alleging they provided resources for the gaza terror group, hamas. Soc Media Companies . John browning is a partner at patsman and jones law firm, professor after Southern Methodist university. His firm nor he is a party to this lawsuit. Good to have you with us. Is this suit likely to move forward or do you think it out . I think it because theres while theres a federal statute that allows victims of terrorism to bring civil suits such as this, theres also a federal statute thats been cited in numerous cases to shield social Media Companies like fac from civil liability. This is not the first time that a social Media Company has been, has had a lawsuit against this for terrorism. What does this mean for the facebook, the twitter, the other social media sites in terms of what the future may be for the Legal Proceedings against them . Well, there are other cases currently pending. There are two in california. One in san francisco. Federal court and another. One was filed agains by victims of terrorism over ultimately, the legal defense, the social Media Companies like facebook and twitter with likely to aaes likely to be granted, but in the meantime, the fact these lawsuits are being brought brings heightened awareness to this issue and undersco the fact that social Media Companies which have taken a number of steps to address terrorist activity on their sites, need to continue doing more. O the social media companis have an obligation under the law to police their sites to remove inflammatory or inciteful material that could be seen as glorifying violence, glorifying terror, calling individuals to join terror groups . Whats the obligation under the law . Well, theres really no legal obligation. They have a legal shield under a federal statute called the Communications Decency act, but they have their own internal policies. And facebook certainly has this he their sites and take down content that is add voe tating violence, supporting terrorism and so forth and in fact, earlier this year, twitter announced it had disabled or taken down over 125,000 accounts with ties to or supportive of terrorists. What if they miss something . Could they be, could someone allege negligence . Really, theres no legal basis for it. Weve allowed social Media Companies to have this wide latitude so that, as not to discourage freexpression. Of course, it has its downsides as we see here. But weve left it up to the social Media Companies themselves to police themselves and they have enacted their own policy, claim to be doing more and well see w shakes out. Thank you very much. John browning. Thank you. Coming up, smart phone, an app and a surprise hit that could bring in a new ra for emotional mobile grahming and trigger a turn aroun. The biggest sale ever in sports history. Not a baseball team, an nfl franchise, but a mixed martial arts league. Ufc sold for 4 billion after being purchased back in 2000 for just 2 million. Thats a return with a punch, folks. Buyer is a group led by a Hollywood Talent Agency that including silver lake and coldberg roberts. In 2012, the dodgers bought out a bankruptcy for a little more than 2 billion. The clippers for the sport come bynes diffe incl boxing, kick boxing wrestling. They have grown stadium crowds up to 70,000. Also have big name sponsors as well as large broadcast and pay per view audiences. Tyler, ther and to understand it, you have to think back to the late 1990s. When pokemon was all the buzz. Today, you can still catch him, but theres a modern t game and augmented reality. The new game, pokemon go, has gone viral and shares of nintendo have soared since the game was released last thursday and as julia boorsen reports, this could be a start of something much bigger. Its a new app which uses cameras to bring the characters into the real world on your phones screen. Players chase the characters through the real streets. This is made for augmented realitof always been this thing in your minds that we dont know how to translate when you put it out there in peoples hand. Its popularity sending nintendo shares surging monday, following a 10 jump on friday when the game hit the top of the chart for the most downloaded in the countries where its available. People pay for in game addons. Its helping nintendo recover at the disappointing and delayed launch of its first mobile game last october. Even microsofts ceo weighing in, saying the games popularity bodes well for microsofts hollow lens augmented reality in the works. I think i these augmented reality applications getting built because the best thing that can happen in creates a new category is for applications, these apps, the games or industrial scenario to get invested in. Pokemon interest hopefully will translate in lot of interest in hollow. Reaction is mixed. Jefferies is bullish saying this game is the tip of the iceberg for nintendos move into mobile, while namura warns the rally looks excess i, sharing it with developer among others. One of the things that im skeptical about is nintendo didnt develop this. This is a licensing deal, out. So not sure if its innovation, for them in the short run. For now, the game which looks like this, is such a huge hit that servers have crashed and people have crashed into things as they walk around looking at their phones and looking at this augmented reality world. Trying to find characters li. The nypd tweeting to warn people not to play the game while driving. For nightly business report, im Julia Boorstin in los angeles. To read me about pokemon go, head to our website at nbr. Com. I think it a house near me very soon. Mine, too. Maybe my phone. Thats night lt. Thanks from me as well. Have great evening and well see ewe back here to