Numbers and, of course, the payroll report tomorrow, which leads us to our talk of the tape we ask how results from apple and amazon right after the close of trading might drive the tape from here. Here to discuss all that is stephanie link, and malcolm etheridge, both are cnbc contributors both are here at post nine as well welcome. Hi. Steph, obviously, look, apple and amazon together more than 10 of the s p they matter for the index how the market reacts to the numbers. In general, in the context of an earnings season that has been strong relative to expectations, the mark kind of shrugged on some level, where do you think that leaves us as we figure out if this has just been a little bit of an air pocket in august i think it is a little bit of an air pocket, digesting the doubledigit gains we have seen across almost every indices. And i think august can be volatile maybe trade around, maybe to september, mike. But i think the economy underlying is pretty good. The Economic Data has
Morning. This bloomberg surveillance. More than a decade since the last one, s p Global Rating the gene the top rating for u. S. Of america. Fitch follows up after the close yesterday with this quote, the written downgrade of u. S. Reflects the expected physical deterioration over the next three years. The erosion of governance relative to aa and aaa rated peers. Whether it is justified, and if it matters, are two different questions. Lisa i would agree as this is the second Major Company to downgrade u. S. From aaa rating. The response arbitrary and based on outdated data. That is janet yellen. Larry summers the idea that it is a decreased default risk is absurd. Here is the question, is there Something Real behind this in terms of how much Interest Rate expenses are going up and like a convention there is on capitol hill . Jonathan theres governance issues u. S. Has that is inconsistent with other aaa rated peers like germany. Lisa i would agree because we were talking about u. S. Po
The opening 20 minutes or so from now we are positioned for a higher stock market at that 9 30 mark europe has been open for some time and over there it is also been largely a positive day so far. You can see germanys dax of course and france the best performer. The 10year note yield so much of a focus yesterday as it same close to the 2. 9 not sure we ever got there were above it now thousand. Yesterday we flowed 2. 89, 2. 915 and stocks dont see particularly concerned wti is down though, higher than it was this time yesterday this morning stocks are looking to extend their daily winning streak, five all three indexes gained more than 1 yesterday shrugging off the stronger than expected cpi after what was a sharp decline early in the session and inflation data out this morning shows Producer Prices rose. 4 in january. That was matching forecast now the core rate minus food and understand also up 4 . That was twice what many economists had been expecting. What a difference a day makes.
Stephanie greece has responded to that ultimatum in europe by asking for a new bailout. Today, the greeks formally asked for a new bailout. In return, greece said it would impose tax reform as early as next week. This morning, the greek Prime Minister promised to deliver. In the next two to three days, we will put forward concrete proposals in detail and i am confident we will be able to meet the obligations of the crucial times. Stephanie the European Commissioner meanwhile says there is a scenario if greece has to leave euro. We will hear from the Economic Affairs commissioner in europe in the next hour. Erik in china, the government is trying to stop a meltdown. Nothing is working and on paper, investors have lost trillions of dollars. Down with 30 since june 12. Here is the issue. Much of that money is wrote money. Borrowed money. At one point, walk locked out of the market because the trigger had been tripped. Jpmorgan is preparing to settle federal investigation into credit card
, a titanic shift we have been waiting for. The speech itself, im not sure the market misinterpreted it. There was a very clear shift in the tone relative to the last policy meeting. It was quite a dramatic tone. A backslide to explaining how the tightening is not really a tightening, and i think the hope was if you explained it that way, Financial Markets will not get into a tizzy. I didnt read draghis statement on tuesday to be anywhere near as bearish as the market is taking it. Actually i took it the other way. I think it was a signal from draghi that even if there was going to be further support and tailwind in the economy that, economy, that the central bank is still there. They need to get going early here. They are already late getting going. Jonathan eloquent or confusing . Joining me now is jim karen, from Morgan Stanley Investment Management, and from boston, the senior Portfolio Manager with the wells fargo asset management. Lets get to the quote itself. These are the words