Five, the s p basically flat, and nasdaq up five. Lots of stocks moving today. One way or another. Lots of interesting individual stocks stories. And well have them for you. Things are a little bit higher at this hour on the s p and the nasdaq after the bank of englands first rate cut since 2009. The pound, though, falling steeply against the dollar, as you see there now at 1. 3117. Going to london, nice time to go over there. Trading about 1. 5 lower. Biggest drop since the aftermath of that june brexit te. Thank you, tyler. Im melissa lee. Heres what else is happening at this hour. Oil, out of a bear market. The magic number to watch, 41. 33. Any trade below that puts crude back into a bear market. The atlanta fed upping the gdp forecast to 3. 7 , that is up one tenth of a percent and ford is calling 830,000 vehicles in north america to fix a side door latch. You can find a full list of the models impacted on our website. We do start off with a big brexit bazooka from the bank of england. The boe cutting rates to avoid an economic downturn. Steve liesman and dd roy are here with us. Start it off here with steve. Thanks. We call this surprisingly aggressive package of postbrexit stimulus from the bank of england, and its reverberating in currency, bond, and stock markets along with here in the u. S. Heres what they did. They cut rates by 25 base points. That was expected. Its those additional qe purchases, 60 billion pounds of regular qe, and a newfangled qe. 10 billion plus of Corporate Bond purchases. And suggesting further rate cuts ahead. Take a look at what it did to its outlook, even despite this new change here. Cutting 2017 growth down by five ticks there. That 0. 8 . Expecting somewhat higher inflation, or higher unemployment. What it means for the u. S. , it removes the Downside Risk that could have come if the boe had not acted and that could have raised concerns about a much weaker economy in the uk. Its also the reason for the fed not to act as the dollar is already stronger against the pounds and there are limits to i think how far the fed is going to go away from other central banks. Theyre either cutting or they have negative rates. But all this boe news, im going to use the word trump. As in ive got a trump card . It will trump something else. Sandy is screaming to go in the back. But if you pull that back up, guys, 179 on the payrolls after 287 last month. 4. 8 down a tick the unemployment rate. Thats a pretty good number. And its going to cause me to come back on this show tomorrow and say we have another whoa you get the privilege and honor of coming back on this show. If i were to be invited on the show tomorrow thank you. What i would talk about is the difference and the split between the weak gdp numbers and the potentially stronger jobs numbers. Or do we get some consonance between them . Did we see it based on what the bank of england has done . Or is it already priced into i mean, we were talking yesterday about what the market is expecting, and the market is not respecting a rate cut until december. I didnt look just recently, but december is still alive. September is look, they have a lot of talk in jackson hole. There is some data between now and then. If this Second Quarter number gets revised, were a little bit lower for the cnbc rapid update. Again, looking for the bounceback. After what happened in the Second Quarter, how much are you going to bet on that bounceback right now . We were looking for 2. 5, we got 1. 2. We had revisions down to the prior ones. There may be a sense that we tried to overstate and it comes back down to reality. Thank you. Lets now turn to you. How much will this race cut affect investors . Take into consideration this number. Tourists visiting the u. S. From the uk last year spent 4. 6 billion according to the u. S. Government. Visitors from the uk also accounted for the Biggest Group of travelers in the u. S. Outside of canada and mexico. With the sterling weakening against the dollar, there are concerns that the u. S. May be too pricey for uk tourists. Whats the impact on the business here . Its hard to say right now. On one hand, you have Companies Like trip advisor, which in its Second Quarter earnings released today, said theyve seen some softness in june and july, which the company attributes in part to brexit. But on the other hand, hotels are saying while they could see fewer International Travelers in the u. S. , that could be offset by more u. S. Travelers overseas. So whats the best guess for what brexit means for the travel industry in the u. S. . The travel trends index, which gathers data from airlines, hotels and travel sites says International Travel will be muted in the u. S. And slightly down in the next six months. Was it yesterday we had richard fein of Royal Caribbean. He said he had yet to see anything traceable back to brexit. Thats what people are saying. Theres some concern in the backdrop. But not really alarm right now and theyre not releasing hard numbers of people leaving. But boy, with the pound at 1. 31, its a good time to go to london, isnt it . You just came back. I cant complain. It was better than 1. 60. I would argue if youre going to go to london, a couple of differences in the Exchange Rate shouldnt be the difference of whether you choose to go. If things are that tight, dont go. Why is a guy like you buying a nice flat . Thats what i would expect from you. To take advantage. Of all my does posable income. Hes got two houses on ventnor avenue. Does he . A house in the poconos id love to sell. Nice to have you here. Thank you, good to see you. That is the news. Maybe the bigger question, thus, is around this england stuff, what does it mean for you and your money . Lets bring in the chief Market Strategist at boston private wealth, and the president of iht wealth management. Bob, first to you. Do you change how you invest your clients money based on this bank of england news today . No, i dont. But i am at least somewhat more favorable on the banks, because i think with this cut in Interest Rates and the additional bond purchases, its going to help some of these International Banks like jp morgan, like citigroup. So i think there is some favorable impact. But for the u. S. Based stocks, i dont think youre going to see much of an impact. I do think that the market was expecting something. And the market is expecting even more. We see the pound at 1. 31. I think youre going to see it go even a little bit further going forward. Theres been no sector worse than the european banks, especially in italy, but Deutsche Bank at lowes, commerce bank. Are you buying any of those . Do you feel like theyve got a Brighter Future perhaps from an investment perspective because of what the boe and the ecb are doing right now . No. Im not interested in those banks right now. When were looking at Banks Like Bank of america, jp morgan, citigroup, even black rock, lower Interest Rates means positive things for these Companies Going forward. We think that the United States is on track. Probably for an Interest Rate hike in december, and then probably a little bit more as the economy picks up going into 2017. Steve, what are your expectations in terms of rates . Because right now, as bob mentioned, rates arent expected to move at all by the fed. Until december. So does a boe change your view at all . I think were in qe infinity now. Coming up with new ways of qe. We all expected the rate cut in england. It looks like were going to be at zero for a while now. Its hard to see how that helps the banks bottom line. Thats why theyre muddling through the last seven, eight years now. That on top of the fact with the real estate sector being added to the s p 500. A lot of the money thats been in the Financial Sector is coming out of that and will be going into that new real estate sector. Thats only going to hurt from the passive investor standpoint. Its only going to hurt the etfs and the financial stocks, the bottom line on that too for an artificial outside influence. So its hard to see how thats going to help the bank world. Id probably be avoiding them right now, at least for the foreseeable future. Bob, how does this story end . Im not sure how this story ends. I dont think anybody knows how it ends. I dont think yellen knows how it ends. But let me address how it helps the banks bottom lines. Theyre also helping with the m a activity. Theyre also helping issue new bonds for corporations. I think corporations are going to actually buy back some bonds. Buy back their paper and issue new paper. So there goes an Investment Banking fee thats associated with that. I do think its beginning to help. Its not going to help their net interest margin, but i do think it helps in other ways. We pointed out this morning that the ftse 100, britains dow, is the best performing stock index in europe over the past three months. It appears the market has bet on this outcome. Are these all the gains that they see, and maybe that means more money comes here. Ive got to believe that youre going to continue to see like the u. S. Market right now. Its not that were crushing it. Were the best market out there. Theres so much risk thats inherent in it. Its hard to put money into bonds and europe, given that yes, right now, parts are doing okay, but its an unknown game plan. This has never happened before. The unloading of a country from the eu. You cant put a lot of money in the emerging markets. If youre looking for a certain area thats benefiting it. I think thats why were seeing the u. S. Markets are doing better than what a lot of people would have expected at this point in the year. I dont know if you can continue to say that youll see that out of the england, european markets, at least in the foreseeable future. Theyve got major issues they need to work out. Its all going to be coming up in the next few months of what that plan is going to look like. So if im looking somewhere, the u. S. Wins almost kind of by default. I will correct you a little bit and say that europe has had some issues to work out for the last 50 to 100 years. Bob and steve, thank you both very much. Guys, we appreciate it. Lets get a news alert now on facebook. Heres Julia Boorstin in l. A. Facebook is changing its news feed algorithm to show user stories that are more relevant to them and to minimize those that people find misleading or spammy. A team reviewed thousands of headlines to build a system to detect click bait headlines. Facebook saying for articles to make the cut, publishers should avoid headlines that withhold information, required to understand what the content of the article is, and headlines that exaggerate the article to create misleading expectations. Changes could impact publishers who rely on facebook for traffic. In q2, buzz feed received the most facebook referral traffic on desk top. Nearly 200 million visits followed by littlethings. Com, according to similar web as well as globo. 62 of u. S. Adults get news on social media, according to pew research. Well have to see if this changes what news they get, or just how headlines are written. Guys . Julia, thank you very much. Any impact we see on facebook or its desirability as a platform, its stock, anything . I dont see it. I dont use facebook. Im really out of the game here. I do think theyll become a big rival to what you call mainstream media. They can also do it on twitter. Or wifi router makers. Still to come, nikes breakup with its golf equipment biz. What does this say about tiger woods future and the future of golf . We will grip and rip this debate straight ahead. But first, an earnings extravaganza. Talking everything from tony the tiger to swimming with the fishes. Think about it. Power lunch will be right back. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Welcome back. A huge day for earnings, so lets call in the earnings squad. Bob pisani, sara eisen, and morgan brennan. Bob . The earnings picture is slowly getting better. The bad news, its not happening very fast and its a little choppy. Lets look at the scorecard that we have so far. 81 of the s p 500 reporting so far, today, earnings for the Second Quarter down 2. 8 . Thats still not good. But its better than it was on fourth of july when it was down 4. 5 . This has been bouncing around a little all throughout the week. The main thing here is the narrative. We were supposed to bottom in the first quarter. And slowly have some kind of improvement in the Second Quarter. Then in the third quarter, supposed to start turning the corner into positive earnings growth. Its soo0 on q3. So far, that narrative is holding but it can go either way in the next few weeks. We want to hear a little bit more next week and get it from the retailers and see what theyre doing. The Life Insurance companies have been reporting. What a mess. Metlife down 9 . Prudential is down five. They all reported down 4 . Ill make it simple. The low Interest Rate scenario is killing insurance companies. Imagine this. You have these low bond yields. Thats your main source of income. And you have future obligations that are much, much higher than the amount of money youre getting from the yield on the bonds. Thats what theyre facing right now. Met is a good example. They took a 2 billion charge for variable annuities. Theyre buying a future income stream and Life Insurance companies a hard time matching those guarantees. Its a Pretty Simple situation. Mets going to cut expenses by 11 , including job cuts as well. Low Interest Rates hurting a very big part of the Financial Services industry. Im surprised that the financials arent down even more sharply considering these big declines that were seeing in that group. Fortunately, weve known about this for a while. But a 2 billion charge, that was a lot more than anyone anticipated from met. Huge one. Bob, thank you. Lets get straight to sara eisen. Hi, melissa. Investors are certainly cheering higher profits, but dont be fooled here. Its not because of a comeback in cereal. Its deeper cost cutting that is fueling the bottom line for kellogg. For instance, morning foods, which includes fruit loops and other breakfast items, sales there 2 . Snacks declined 3. 8 . But the company says that pringles and rice crispies treats showed growth. It hurts the european, asian, and latin American Business for kellogg. On the plus side, those great cost savings drove the better outlook on earnings and operating margins jumped the previous quarter. The mergers forcing all of the players to cut costs. Kellogg adopted the trendy zerobased budgeting, which is just steeper cost cuts across the industry. What about returning to growth . Kellogg says that cereal is stabilizing and it is investing, trying to make kashi gmofree, for instance. But the company says not to expect much sales growth in the coming quarter. For this one, you guys know the themes, melissa. Its all about costcutting, speculation of mma, and, of course, those safer Consumer Staples and their dividends, which is driving the stocks up in this environment. Kellogg, for instance, sara, has 23 pe at this point. So its amazing that people are willing to pay up for this even though its got a 6. 6 decline in revenue. That certainly is the story. It speaks to two things. Number one, the kind of environment that we are in. Low Interest Rates. Which has driven up sectors like utilities, telecomm, and Consumer Staples. Theyre considered sturdy and they pay out dividends, which has been, of course, the trade on low Interest Rates and the m a speculation has really heated up, especially around kellogg, the potentially three g, which as you know, with Warren Buffett went after kraft, combining it with hineinz, migh be hungry for another deal. Sara, thank you very much. Lets round it out now with morgan brennan, who is watching seaworld. You could get a little seasick from seaworld stock today. If you look at the stock im going to use another pun here. Its drowning. It hit an alltime low. Earnings matched estimates, revenue missed. The theme park operator reported a 7. 6 plunge in attendance. This is a quarter that kicks off seaworlds business season. The company says latin american tourists arent coming to florida. Thats down 40 yeartodate thanks to bad economies at home, especially brazil, and that the terrorist attack at an orlando nightclub also impacted traffic in that market as well. One bright spot, july did see an up tick in visitors and so far we have not seen any impact from zika, or fears of zika. But seaworlds got a slog ahead of it. Scrapping its signature orca breeding and orca shows after years of public backlash. If you take a look at the stock, thats trading more than 50 below its ipo price and almost 70 below its may 2013 alltime high. It has really taken a beating. Is there any word from management on what they expect in terms of attendance after they scrap those shows . Theyve spoken about it a little bit in past earnings, what basically joel, who is ceo, he came onboard about a year ago. What he has said was that the turnaround strategy is on track, despite the fact that they