Tries to recover from yesterday. The premarket is up. Alcoa and pepsi on the tape. They continue to lean on short siders. The tenyear is up and crude is up and oil is back. The imf trimming the global and u. S. Forecast seeing World Economic growth of 3. 3 for the year. U. S. Growth seen as 2. 5 compared to a prior 3. 1 . Not a surprise echoing what the oed and others have done. You have Christine Lagarde telling our fed, guys think twice before you raise. You is want to remember they are a tough organization. There is a lot of feeling the imf must be a bunch of softies. They are very tough. They are very concerned. Merkel is the naernperson that can shut down greece more than Christine Lagarde. It confirms what people felt was behind the two days ago rally, the fed wont be tightening. When you dont talk about them you start getting a little emboldened. Not to say you like the setup. This market is not suitable for a lot of individual investors. I do think when you criminalize short selling and get stocks that have lower multiples that look like american stocks you get actual buyers of china. The futures are trading with china. Like the old days of tokyo in 1977 or 1978 waiting for the market to open in tokyo. Futures immediately shoot up. The government comes in and takes the market up. Sellers come in. China waits. They wait they wait and, boom they take it right up. They slam it in the face of the sellers and then kept it there. I think it is far from clear that the tumult in china is over with one days trading and all of the efforts by the government, so much of which seems to have instead of engendering confidence has destroyed it. It doesnt do a lot to bring about people feeling better about things. It is fascinating to watch given their success in intervening in other markets and their incompetent ability to have done so successfully here. They have encouraged the investment that resulted in that enormous rally in these markets and created liquidity for so many of their Companies Many indebted companies. They brought in so much of the chai chinese not so much. That is actually not correct. A lot of people, percentagewise in the chinese population. Look the market is up from china. Is this the way we are going to be . If this is the way we are going to be, ive got to tell you, get used to it. When it looks really horrible you are going to buy and then you have to trade out. You have to trade this market. Understood. We knew it would be a big front page story, the nyse travails yesterday. The usa today has a bigger one, glitch nation. The important thing is that the nyse says they are expecting a smooth open. I have been speaking with the specialist. They all told me things are operating smoothly. All these people say, we are set to go. Late last night, they issued a statement saying, the cause of the outage was a configuration issue. A server or a piece of hardware wasnt set up correctly. The likely cause was a routine software upgrade. They require changes of the Software Code and sometimes they create problems that go back and forth between the nyse and their clients. There were connect tifl issues at the beginning. The shutdown later caused a cascading series of new problems. The question i have for the nyse is, did they follow best practices testing the upgrade in a virtual environment . Who exactly managed the performs mans of the upgrade . What is next . First, a bit of damage control. They need to assure clients. The fcc is going to determine if the nyse was in compliance with recent regulations that require all the exchanges to regularly update and test. There is going to be a postmortem. Dont expect anything for a while. They move at a glacial pace. This could take a year or more. What did he we learn . There is a need for a safety net f the nyse ar pel i go Exchange Operated as normal. I heard a lot of comments yesterday, it shows the floor is not necessary. I dont think it shows it that at all. The floor is still very necessary, particularly on the open and the clothes. Ask ipo people if they think the floor is necessary. It wasnt about the floor but making sure that the technology that runs anything whether it is electronic or the floor operations operates in the most efficient and professional manner . I think thats what we need to look at right now. Guys back to you. Thank you very much and well said. The times has a headline failure in new York Exchange makes barely a ripple in the days trading. Market share. It was 80 ten years ago and now 20 . The undergoing thesis of flash boys helps, the death of the market. Flash boys is against run ahead. There are so many different markets, it just shows you that honestly i think if we werent here with cameras on it you might have not known. They say we are not using the floor today. At war, it would have certainly been something some people would have been aware of. It didnt actually impact trading. The s p was still moving the dow. Everything was composing itself as it would and the volume moved to other places. Even though it is much smaller than it was. A lot have oof rivers. It is important to point out that when we looked at the market share ten years ago, this would be a major decline. There would be an outlet like hack that would be that came up with a cybersecurity etf. I still think that unfortunately, i wish it were on top. While this may not have been a hack, we all get the sense that everybody, keep checking your balance at your bank. Im urging you to check your balance. I check it twice a week now. I should check it every day. I dont want that 1. 48 taken out. They will take 1. 48. They will skim off the top. As we head earlier, overnight in china, stocks rebounds. The shanghai up 5. 8 after posting losses in eight of the last seven days. Chinas security regulator banned Share Holders with large stakes and enlisted frirms from selling in the next six months. This includes insiders directors, not to mention the threats they are beginning to make on what they are calling hostile shorts. I thought the line that was key was the malicious short science. Remember, they involve the Public Security ministry is now going to be involved. They are criminalizing it. As the ministry of finance started buying stocks out right . I know the government is there. Does every government have a little fire power . I want to point out that david is absolutely right. This market is up and it is not done. There are a lot of p cans that companies that need to issue stock unless they get American Companies to come in. You are not going to get a real bottom. When you have the New York Times on it i have been arguing for a week and a half that it is more important than greece. I still believe it is. You still do . I keep backing you on the idea of systemic. There is the possibility of contagion. We still dont know who owns a lot of these companies. You dont know who owns these shares. It has to be watched closely. The economic effects continue to be debated. It is a small percentage of the overall economy. Apple. Your point last night, can it be 87 here where the market takes a hit but the economy does not. Thats what i thought was most likely. You have this describe began tick decline. We saw apple sell a lot of cell phones. All the parts, the Cell Phone Companies were down. Obviously, china has been a huge lift for apple. Their people have lost a lot of money. Maybe they are less likely to upgrade. I think that 87 is a better analogy than 2000 and tokyo bandied around 40,000 to 10,000. Few companies have a larger interest in how china does than alco alkoa. China is becoming in my view potentially, a very interesting market for products. The presence that we as alcoa have in china is not in the upstream. China need more value. We want to participate from that move. We have already positioned ourselves in that way. It comes after the earnings which you have called aces. I like the earnings. There was a lot there was this moment in the Conference Call where klaus talked about dumping. They use another phrase. They called about semi finished chinese. They are sending a lot of aluminum out that is finished. The Chinese Government doesnt like this. The reason he is saying this is going to be a Good Opportunity for china. Shortage of water. It pollutes the air. They have to keep the finished product there. They are trying to make less aluminum because it is so dirty. The chinese dumping so much in the semi finished fake business they are doing. He is saying the government is going to crack down on the exports. Thats going to help alcoa. They went through you a series of things. I love the quarter. Let me go over some quick points here. Aerospace, still very very strong. 125 worth of orders out of the paris air show. Auto still strong. U. S. Sales up 4. 4 . Heavy duty trucks. He called it a fascinating story. He and i are fascinated by the same kind of things. Turbines, very strong. Natural gas, because of the switch from coal which remains one of the most important underlying stories in america today. And something that is affecting the rails as you said last night. It has been going down 2 year by year. 8 a huge exporter of natural gas to mexico. The mexican government. They are having trouble with drilling. Suddenly, we have all the gas and it is selling at 1. 50, a win for everybody, including the producers, which are making money here. Earning season in the meantime, is underway. We will look at the premarket reaction on pepsi. Former scc chairman harvey pit, with his perspective. Another look at the futures the day after the dow hit a fivemonth closing low. The s p with a fourmonth closing low. More squawk on the streets back in a minute. Verizon say neversettle. Tmobile agrees. Never settle for verizons overpriced gimmicks. Try the uncarrier riskfree for 14 days youll love it, or well pay for you to go back. Volatility continues this week. Futures down almost 200 points amid ul athe infrastructure problems we had on the street. Pepsi raising full year guidance reporting bigger than ever results driven by more demand for snacks and beverages. Walgreens pepsi, organic growth up 5. 1. Pricing in latin america surprisingly good. A lot to like here. It is not just new products. The spending is paying off. Also, a cessation in the aisles for drinks. Soda getting better. Soda is not as important as fritolay. Rush is better. Commodity is better. This was the kind of quarter that you, if you are at home looking for a stock when the market is hammered, you can come back to this. This is a very strong quarter. To the extent you have discussed the impact of a higher dollar and wondered whether that would impact the earnings season. Impact core earnings per share by 11 Percentage PointsForeign Exchange translation. Nobody seems to care. They are recording everything in constant currency. Ill tell you why. If you go back to the release of the previous quarter, take a look. They predicted 11 . The interesting thing is, this he said it was going to be 11 and it was. Thats why pepsi is getting a pass. Freeitolay, year over year went negative for the first time in 2 1 2 years. I think you have to look the fritolay and their soft drinks represent the most favorite brand. Turnover is a big win for supermarkets. Fritolay went down a little bit versus what i would have liked. The entire mosaic of pepsico was very very strong. I see quaker coming back a little. If there is a cessation in the price war with cocacola, there was way nice swing in actual carbonated. Many things to like. I understand why it is up and it should be. We are more to talk about with p g striking that deal with cody. Everyone will want to keep an eye on the nyse as they fire up the engine yet again. Back in a moment. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Ugh heartburn no one burns on my watch try alkaseltzer heartburn reliefchews. They work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Alkaseltzer heartburn reliefchews. Enjoy the relief. Take a look at futures as we head into the open about seven or so minutes from now. Given that timing of course it is time for the mad dash ahead of the opening bell. Lets get to it. A couple of things to mention. It is important to point out that walgreen another company a lot of big changes. This was a monster beat. Looking for 87 cents. They did 1. 02. Walgreen is a very big company. That is indicative of where people are going. Look at that rally ahead of time. Unfortunately, Charitable Trust owns that. Maybe it will make up for the gm disaster. I dont know if you caught it. I tweeted you this minute. Thats why i asked for the junior mint. You dont have to pay 27 for junior mint at dollar tree which is my favorite. Morgan stanley disagrees with me. They say they are constructive. They say all the news of dollar tree is now. The possible problems with dollar general. They finally reached the best in terms of the number of stores wanted by the ftc after the big battle with dollar general. All three of my Dollar Tree Stores are beautiful, all three. My philadelphia one, my one out in the hamptons is terrific and my one next to the jersey beach house. Family dollar the activist was pelts and trian. They ended up on the board of directors. You had other people visit over time. You mentioned walgreens. Also, another board seat given to jana there as they move ahead to sell the business they just bought two years ago. Not a good deal. When you see a startup underrated dollar tree think twice about selling that stock. I think thats an opportunity. Im not being facetious. Last night, you talked about all the things in place that ordinarily would seem to be good. Dollar stabilizing, fed on hold rates are low. U. S. Data has been hanging in there and yet you still think that the rotation out of yield and utilities, thats not going to last. I dont like a market where we are not dependant on ourselves. One of the conclusions i reached was like these should matter. Maybe the walgreen pepsico, alcoa could help. The problem is when i was there last night, we were all waiting for china to open. China opens down, up. This is not a good market where we are all thinking will china or europe hold . I want to get back to a United States earnings. This is nuttiness. We are getting every day up and down up and down. Are those signs that this market is fragile . I think there are parts have o the economy that are weaker. Anybody who is selling into europe, europe is not good. China, not good. We are hostage. Until we are not hostage, i find that this is an unnerving market where i dont like markets where you leave and it is down that and you had to buy the close. Now, i flipped the opening. We havent even discussed greece. On sunday, we are going to deal with it again. The dollar is up again. I dont want the dollar up. Pepsico got the pass. Airport is good. When i look at a market up and down and i see Interest Rates go higher today, they will buy the banks and sell the banks tomorrow. This is not a great market. Walgreens. Historically. They didnt invert. They did not invert even though jana i think, would have liked them to. Did the trust get out of starbucks entirely . Decided to sell it. Felt like it has been too good to me. It is a good company. You liquidated costco and you lived to regret it. Im going to regret it. Why did you do it . It was a bit of a miscommunication. Was it a configuration of your software . To some degree yes. Sometimes you make mistakes. How long has it been in the trust . I got a note. There was a miscommunication with my Research Director on star bucsks where the size was meant to be right sized and instead, it was sold. I said listen we want to get it back. Speaking of miscommunications, i would like to go back and discuss that nokia deal much of what was written down. Yesterday, the writedown exceeded the overall value. That wasnt quite right. The overall value was 9. 4 billion. It was only 80 . It was throwing in the towel as we know. That was yesterdays story. Of course we will keep an eye on shares of microsoft, which were bucking the trend yesterday in the early going. Microsoft, it is surprising. Everything p. C. Related is not doing well. The microsoft positioned themselves as a cloud company, an x box company a company that is doing a lot of getting away from pcs, faster than intel is. I think that is reflected in the fact that they sat down with mark from sales force. Finally, we didnt mention the deal. We hear the applause for the opening bell. We will get to it from the other side. Significant transaction worth over 12. 5 billion. Reverse Mortgage Trust is what they want to do. Somewhat complex. Is that a better buy for cody than avon would have been . You see they sell some brands to walgreen. There is the opening bell. A look at the s p at the bottom of your screen. Obviously, everyone watching how i think the structure holds today today. The pure funds, ise, fiber, security atf celebrating the 1 billion market. Sage therapeutics focusing on medicines to treat rare Central Nervous system disorders. As it appears at the beginning, the boards are looking the way they are supposed to. That was a moment when everything went yellow down here and the traders, if you can marge a imagine, a room of mostly men saying whoa to run around and coordinate saying what just happened. Your calming presence made people feel good carl. Good to have you there. We are going to check in with bob pisani as soon as he is ready. In the meantime a week of highprofile downgrades. A couple for tesla and today goldman on shack. They were right up front talking about that july 29th expiration saying that their stock is going to trade differently. Some feel this is a pile one. Where were these guys when the stock was at 80 90. Where were they . They were having a shake shack burger. Trying to investigate the Fried Chicken sandwich wh