Data on inflation. Also minutes from the last fomc meeting. The july Consumer Price index will be released at 8 30 eastern time and at 2 00 this afternoon we should be getting more insight into what fed policy makers talked about last month and perhaps what theyre thinking about is the highly anticipated september gathering. Heres the other stories were watching today. Chinas wild and scary ride continuing, volatile perhaps not a Strong Enough word to describe the session. The shanghai composite dropped by 5 early on but then closed up by more than a percent. They point to government backed buyers as catalysts for the turn around as well as rumors that Chinas Central Bank might be ready to cut the key reserve ratio requirements for banks. German lawmakers are voting on a greek bailout. The legislation is expected to pass despite a growing rebellion within chancellor merkels on party. More from our colleagues in europe in a few minutes. Back here in the states the consumer remains front and center among the Companies Set to post their earnings today, target. That retailer up about 4 so far this year but down over 4 over the past month. Lets talk about stocks to watch today. Yum brands announcing new leadership for its china division. The Company Veteran is being named ceo of the group. This comes as activists lobby for yum to spin off china business. Also take a look at Analog Devices. It looks to be a winner as well. Shares of the electronic parts maker get a boost after better than expected Quarterly Results and upbeat guidance. Thats up by more than 7 . Canadian solar coming under pressure. Beating the street with the latest results but the company is issuing weak revenue guidance and the Chinese Social Media Company weibo topping expectations on the top and bottom line. We got a little drug news this morning. I dont know why i have to talk about this this morning but news from a drug maker, private company, getting a lot of buzz this morning. The fda approving the first drug to treat low sexual desire in women but theres a warning about potentially dangerous low Blood Pressure and fainting side effects and heres the important part, especially if theres alcohol involved. So theres a joke to be had here but its too early in the morning. The drug is made by sprout pharmaceuticals. Regulators say the drug will only be available to certified and specially Trained Health care professionals and pharmacies due to safety issues. We are seeing futures not indicating a big change. We are down a little bit. Implied open is down 5. 17onthe s p 500. About a 45 point drop indicated for the dow but its very early. A similar story there. Were town by some but not too much. We referenced the wild ride in asia overnight. That does not tell the story. That market was down more than 5 before turning around the hang seng and the japan nikkei both down more than 1 . Oil has been the big story the last couple of months and crude oil indicating down this morning 19 cents. 42, 43 in a very thin trade. The 10 year treasury note. Some say its going to end the year below . Were marching that way. 2. 84 right now. If youre concerned about the eurodollar trade at 11041 on the euro dollar. That could impact the precious metals. Lets check the gold trade right now. This morning were seeing the Precious Metal Trading up 5 bucks an ounce. 1122 per ounce. Lets take a look at earnings from lowes. Coming in 4 cents below estimates. Taking a look at whats happening with this. They do see quarterly profit of 1. 20 a share. Revenue just above forecast. If youre looking at store sales, theyre up by 4. 3 from a year ago. Its interesting after what we heard yesterday when they came in with good news looking at their guidance. If you look at lowes theyre looking at earns per share of 3. 29. Theyll be thinking that theyll be making up in the third and fourth quarters for the current short fall in this Current Quarter. Look at that stock, its down by 53 cents but again theyre talking about for the full year being just above expectations and that may sooth some of the concerns that youre seeing immediately from this miss for the Current Quarter. They say for the full year they expect total sales to be up 4. 5 to 5 . We have seen a resurgence as opposed to a macys where they havent gone as quickly. Well hear more about this company. Take a look at what happened there. It does expect to see earnings of 3. 29 a share for the full year and thats a penny better than the street expected. Look at that chart. You can see the two have been tracking home depot and lowes for nine months but about four months ago they started to diverge. Home depot is up 17 since june. Lowes up 5 . Home depot dramatically out performed. Its going to add 15 to 20 Home Improvement stores throughout the remainer of this year. Home equity lines of credit have increased again. Remember those . Big Home Improvement projects again. So not maybe topsoil, mulch and other small items but these are big projects and home depot talked about that as well. So its back. The chairman, president and ceo says their year to date earnings performance was in line with their expectations. Its below what the street was e expecting but they have confidence in their outlook. Outdoor Power Equipment and appliances were hot sellers. I could understand the appliance thing. Add on a kitchen, put a new dishwasher. More people buying homes. They need to mow the lawn. I dont understand why lowes is always i know the stock chart, they matched for awhile but operationally theyre so far behind home depot. If you really look for the past couple of years wouldnt you argue that home depot has been the grand winner of this game, by a lot . The last few years, sure. Home depots operating margin is 12. 5 . Lowes is about 8. 5 so you have a big gap in operating margin. Which tells you, number one, lowes operating costs are higher and or their Pricing Power is less. Well, he made the point about the real estate piece that home depot has significantly Better Real Estate and that matters in terms of the location. Thats not same store sales. But it might depending on where youre based. If you have better locations. Ive been in lowes and home depots this summer and every time i go in a lowes they dont have things in stock. Every time ive been in this summer thats happened. We treat them the same but theyre supposed to be quite differment at one point lows was designed more for the casual shopper. Had a wider aisle. Less narrow. It used to be called the home depot with light. I never heard that. Thats great. But home depot has really upped their operations and lowes has suffered. Ive been in and they have people that dont understand how to use, even trying to look up whats in the store and whats not. Theyve had me look up things on the website for them while theyre standing there. It does seem like theyre not up to snuff when it comes to having things in stock. Thats something ive noticed this summer. 4. 6 gains for same store sales. Not too shabby. Yeah. A coup of restaurants might like that number. Why don we change topics and head to europe. German lawmakers are voting on the greek bailout. Seema mody has the latest. Good morning. Good morning, german lawmakers are preparing to cast their ballot on a package approved by finance ministers last week this after 60 members of parliament in the conservative block voted against or sustained in a test vote. But likely shell get the vote she needs. They have been pointing out theres no lack of participation from the imf. Now the finance minister addressed Parliament Today urging them to back the program saying it would be irresponsible not to give the greeks a chance for a new start but also noting there was no guarentee for the success. In the meantime theyre up against the deadline for a 3. 2 billion euro payment. Ministers are taking a tough stance against greece. Some of the hawks have been voicing their concern. Keep an eye on the german vote as well as the dutch vote in todays trade. Thank you very much. Now well discuss some markets. Jeff gundlach this morning says he thinks its a bad idea for the central bank to hike rates. If they begin raising rates next month it opens the lid on m pandoras box. Joining us now is head of capital markets. And then on the economy, Michael Hanson is here. The senior u. S. Economist at bank of America Merrill lynch global research. You saw his argument. Whats going to happen . We will see a rate hike in september and thats probably what should happen given the domestic economy and how much it has improved. It has been far from a flawless recovery but its been a recovery. What we expect though is a very different path of tightening than what weve seen in the past. Expect hills and plateaus. Hills and plateaus. Were going to ease into tightening in a very gentle way. The argument is its more of a straight line. He believes once you start you cant stop. You definitely cant go backwards. That does not seem to be the intention of the fomc. They want to analyze data points as they move forward. I should not be a straight line. Where are you on this . September probably more likely than not. Obviously with china, the uncertainty has come up a little bit on that but if you look at the what the fed is focussing on its the labor market. They have been down playing inflation concerns but im not sure thats a clear path for them. A month or two ago it was stabilizing and behind us and rates are going up and today all of those things are we overstating or understating the china situation. When you look back in the minutes when they talk about china its not about deflation or the dollar its about the Global Growth picture so from the feds perspective, if china is easing in order to address their domestic economy and that reduces the risk of a hard landing, from the feds perspective thats a good thing. If i told you that Commodity Prices are going to plunge and the em markets are going to suffer you would have fed Officials Say thats transitory. We can debate that but thats been the response all along. On the second you heard sam fisher say we have to focus on the domestic market. We care about the spill overs but we have to focus on the domestic market. We would have hiked already. If im lucky enough to have some money, what am i supposed to do with it . Look for volatility going into the fomc meeting and beyond that. Is volatility a downward . Is that what youre trying to suggest in. We could see downward volatility. Our expectation is a miss match and that could leave opportunities for those looking longterm and need more equity. So the second we hear this is really is it become it really comes, when it really comes . You think were having a little miniplunge. Our expectation is that the fed is not going to message this well. Chair yellen stated in the past that she doesnt need to message it because were looking at the same data shes looking at. So expect the potential for some disruption when the fed announces, if it announces a rate hike. I know youre not a stock market guy per say, would you agree with that. Do you think were not going to know . Do you think theyre not going to tell you in advance . I dont think theyre going to give a sign up in lights. Were clearly not going to get clear language the meeting before because that was july and we didnt get it. We got some indication. Theyre looking for some further improvement. That was a sign that theyre getting closer. I do think that the fed learned the lessons from 2013 when they didnt talk the whole summer and the taper tantrum and the market got wrong footed around september. So there is, i think, a preference of the fed to make sure they get their message out there. Why are we worried about china and the fed when we have the Oil Infrastructure relaxing. The drop could save. 5 . Thats a big drop. This is a creator of hundreds of thousands of jobs that has died. Its created 12 million since we hit bottom. We need to put that in context. Most of the decline in the oil structure already happened. So theres a question we dont know that. We know that from the standpoint of the gdp data coming up into the Third Quarter because rig count versus stabilize so the assuming that oil goes to 35 or 30 barrel youre right. But weve had a significant slice out of that. Its 100,000 or so. 260,000 in the last four years out of 12 plus million. So it matters but the economy is doing quite well despite that. Okay. Well leave the conversation there. Thank you. Thank you. All right up next were going to go inside the report from lowes. They came out with their earnings. The Home Improvement retailer reporting results a moment ago but is the stock a buy at these levels . Plus a Major Customer data breach at dating or whatever you want to call it site Ashley Madison. That is not a dating site. Its 6 16 in the morning. What am i supposed to say . Bad news for a lot of people many america perhaps. Gives dating sites a bad name. Yeah. But first before you head to break check out this day in history. When youre not confident you have complete visibility into your business, it can quickly become the only thing you think about. Thats where at t can help. At ts Innovative Solutions connect machines and people. To keep your internet of things insync, in realtime. Leaving you free to focus on what matters most. More and more, data is visual. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging, a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. Welcome back everybody. We do have some breaking news. Parliament approving the third greek bailout. This is the process taking place. The Greek Parliament passed it. Its going through the rest of the parliaments in the eu but they are approving it. Germanys Parliament Just approved that eu bailout ahead of tomorrows deadline for the next payment due to the ecb. Brian. Lowes just out with their Quarterly Results. Earnings falling a bit short of estimates although revenue sales did beat the streets. Joining us to break down the quarter is Senior Equity Research analyst, your quick take on the quarter. Its a bit mixed. You summed it up pretty well. Sales were descent and good but earnings did miss. We saw a little bit of weakness but i suspect there was probably a sales mix shift. They called out a lot of the bigger ticket items. Those are typically lower margins. That helped their revenue but hurt their profitability a little bit. What about same store sales growth . Better than 4. 5 . That doesnt seem too shabby. I was on your show yesterday talking about home depot. Investors always look at lowes versus home depot. Home depot put a 5. 7 comp up yesterday. Lowes was a 4. 3. That spread is about in line with expectations. 4. 3 comp is actually quite good. What is the one thing that concerns you . Is it the margin line brian or Something Else . I think as the market digests these results the market will come with the opinion that this is a pretty good quarter. We see that lowes doesnt operate as well as home depot but pretty good. If you were lowes ceo and you could make one change in the business what would it be . Thats a good one. Id maintain for awhile. There are stores in the lowes chain that are not as productive as they should be. This is easier said than done. Its easy for an analyst to say this but i would look closely and determine if theres something that needs to be done. Brian you joined us yesterday. You joined us today. Thank you very much. Enjoy your day. Well see you again soon. Thank you. Staying on the theme of the consumer this morning and what were learning this season, Courtney Reagan is here to explain more about how Consumer Spending is shifting. Its been the topic. It has been for awhile. If i havent said it before ill say it again. Post Great Recession the Consumer Spending habits have changed. Consumers are spending but its shifted over even the last decade. Retail sales growth. Bounce back post recession and its pulled back a bit recently but still consumers are in a good place. Thats also because were saving more. The recession did such a number on our psyche that consumers were finally compelled to save and not just for a rainy day but for the future. In some ways, saving has really become the priority which is why many consumers consciously or not now place a higher value on spending discretionary dollars on whats permanent. Making memories with experiences and placing less value on whats unnecessary. Stuff. This was the consumers closet before the recession. Lots of clothes. More than 3. 5 of total spending went toward clothing. It sounds small but this is one of about 400 categories. Now Consumer Spending on clothing is the category with the biggest basis point decline over the last decade. Spending previously allocated to clothing is spread out through a number of categories. Medical bills, prescription drugs, housing, education, those have gone up but so too has spending on discretionary, memory making categories like leisure travel, recreation and restaurants and we see those from various data sources. Consumers are skipping spending on the material things and opting on th