weaker than usual for this time of year. texas instruments says customers are cautious due to global economic uncertainties. you see it there. shares fall slightly in extended trading. the 2 q results beat the street. they say they're making progress to increase the number. the stock hit an 18-month low last week on worries the weakening chinese economy could hurt it. pfizer's experimental alzheimer's drug failing one of four big trials. it involved patients with mild to moderate forms of disease, it did not improve cognitive and life function. johnson & johnson is partnering with with pfizer on that treatment. they'll continue with three other late trials and you can see it falling on the news. irish drug maker has a long-standing financial interest in the drug and its shares were also hit the hardest. we've also got a bit of deal news. car law group and bcb parngs joining forces in a bid to bayou nighted technologies industrial business. the transaction could be valued at more than $3.5 billion. >> we have earnings just coming out. dupont hitting the wires. the company has earnings slightly better than expected, $1.48 versus the $1.46 the street was looking for. revenue looks like it's a little light. the company is also saying it's looking for full-year earnings to be towards the lower end of the existing yoult look range of 420 to 440 a share when you strip out significant items because of uncertainty associated both with the macro environment and currency as well as a higher tax rate related to the earnings mix. 4.20 and 4.40 is where they told the street. that's in keeping with what the street is expecting right now, too. this may not be much of a prize to wall street. their earnings today coming out two cents better than expectations at $1.48. they pound to things happening right now. comments from ellen coleman, who is the chairman and ceo. she says the agriculture food and biosciences are performs exceptionally well globally when you look at corn prices and things but the advanced materials business -- and other advanced material businesses are achieves solid results and continued weakness in europe. >> this is the story of the earnings season, though, which is to say everybody is beating on the bottom line. there's a lot of messages on the top line. what does it mean long term? >> more than 65% of the company have missed on the revenue lines. it's from global companies dealing with currency issues coming back in. that means they have lower costs in those arenas. i wonder if it means we've peaked out in terms revenue or if this was a one off because of some of these currency issues. >> if that's true, we have larger problems. >> margins have not been bad, though. margins continue to improve. >> if margins are improving and keeping up the bottom line, they're continuing to squeeze. goldman sachs had an interesting report out overnight on just this issue. >> right now just looking at this bid on dupont, which is a dow component, it's too early to say where this will shake out. we'll keep an eye on it as we get closer. look at the markets overall right now. futures are weaker this morning after big losses yesterday. i guess the positive news from yesterday is we paired those losses by half by the time the closing bell came around. the markets down by over 100 points and they're indicated down by 11.5 points. s&p futures and nasdaq futures indicated lower. oil prices came backhandily last night. at this point they're up 39 cents but well below what we've seen in recent days after concerns of what was happening with iran. if you look at the ten-year, this was the big story. it was trading below 1.4% yesterday. right now the yield is higher at 1.448%. that was a record low level, and that was huge news. >> i told you i had the phone call with the mortgage -- i don't think if i said that on the air or on the commercial. i had the phone call with the mortgage broker yesterday. >> it fell below 1.4 at one point. >> i don't know if we got the bottom or not. we might have missed it, but we're trying. >> let's look at the dollar. the euro is the big story and the weakness with the euro. this morning you see that the dollar is stronger once again against the euro at 120.99. joe is over there and is going to get his way. he talked about the euro at $1.20. it might happen while he's there. the dollar is down against the yen at 78.20, and gold prices which gave back some ground yesterday morning are down once again by $2.60, $1,574.80 an ounce. >> i hope he hasn't blown all the money out yet. let's go across the pond not to where joe is but close. it's time for the markets report. kelly evans is standing by in london this morning. kelly. >> hello, andrew. as you can see behind me, a little bit better picture to the euro stock 600. one in particular to watch, swatch is the company in question. up almost 3% in the morning. we'll come back to that. we'll have a broader sense of the market action we're seeing, about roughly split. the stock is up about 0.1 of a percent this morning. it extended into your trading session. ilgts quieter today. really spain is want one to watch. the ibex 35 after instituting a short selling ban, what happens? falls out the bed. down another 2%. why? if you're exposed to spain and can't hedge or short that position, you have to back away. buyers' strike continues. the dax is up 0.4% right now. the ftse is up almost 0.2% in the uk. i want to show you starting over here with germany the ten-year. actually, the price is losing some ground today. the yield has risen to 1.248%. that's an interesting development to keep an eye on. the rest of the story today, guys, spain. we have seen the yield curve starting to invert. if you look closely, the yield on the five-year is higher than the yield on the ten-year, which is 7.58%, typically a recessionary sign. this two-year does not bode well. it reminds you of the price action in it lae last fall and the ecb had to rescue. spain auctioned short-term debt that wt off reasonably well in the market today. not doing much to change the picture here mplt let's get back to swatch. they're one of the green spots this morning, guys, the almost 3%. a great interview, very colorful interview earlier this morning on europe "squawk" with the ceo. he was asked about whether the market today, whether conditions today were similar to what we saw in 2008 given up all the fear and panic we've seen lately, and here's what he had to say. >> i think weather forecast is more reliable than what is said at the stock market. we should stop with it. let's look at the real facts and be calm and continue to do the business. >> a very colorful interview. i encourage everything to go online and look up the whole thing. he really rails against broader market activity and he's continuing to build a business. the company does see a slowing in china but more in the high-end market that their lower end brands are growing 30% to 40%. it's the omega type lines where they see a slowing. it may be people shifting to buy those watches in cheaper locations, which as far as swatch is concerned, is business. on that note, back over to you d guys. >> thank you very much. we'll check in a little later. what do you think? you see the five-year versus the ten-year yield on the spanish. >> i'm thinking i'm buying? >> are you really? >> no. >> you're crazy. >> we near we were in big trouble. the question is how it happens. >> this is the level where it forced change to happen urns burs burlisconi. customer ks make deposits by submitting a photo of a check through a smartphone. citi group and chase offer services like this. >> we did it on the set with his check. >> when he paid you to read his book. >> he could not believe we cashed that check. i still have the check. i'm thinking the framing the check. >> you can keep the check and deposit it. >> that's the best part. the thing i worry about that it certain people by accident try to deposit the check twice. >> wouldn't the bank catch on that? >> i assume they would. i don't know. >> wells fargo launched its mobile check deposit service earlier this year, and the bank will gradually expand the program across the united states by the end of the year. also, we talked about china. china plans to double the amount that insurers can invest in private equity. the country is set to let some companies trade financial derivatives both at home and abroad. these moves are part of china's efforts to broaden it. >> let's talk about mitt romney. he's taking his campaign overseas. he shifts his focus to foreign policy this week with a major speech and overseas trip to three different countries. today he addresses a veterans of foreign wars conference and he'll visit the uk, israel and poland. all is parts of a trip to the beginning of the olympics, which begins at the end of this week. >> did you see the "usa today" poll that's out that says romney is trusted more on the economy when they actually went through and put some of these questions that had gone into it. something like with his business background 63% think he will make good decisions on the dme based on his business background. 29% think he'll make bad decisions which raises the question whether all these attacks about bain and his business background are really the right strategy for coming at it. >> what do you do? what is the right strategy? >> i've always questioned that. the idea of attacking a business background as being a bad thing. >> i thought it was the right thing. >> to attack? >> no. we talked about it before. he should embrace being a private equity guy. i'm a mr. fix it guy and this company needs fixed and that's what i do. >> the president came out well in terms of likability. he's more likeable than romney is, but this is a huge question mark about the way the negative ads have gone against romney and whether it's a totally wrong strategy. >> if you're obama, what is the right strategy? >> i don't know. i guess make people -- make it more about you if people like you more. >> i don't know. that's tough for obama right about now. by the way, just because we're talking about it, can i mention it? >> we were looking at the front of all papers. today everybody is looking at the colorado shooting. there were two pieces of news overnight. one was a sad story out of pennsylvania where there was a batman showing, and a fight broke out. now apparently everybody left the theater freaking out. >> i would, too. >> it was a very scary story. >> the other thing that's good news, warner bros. is making a huge donation to the victims in colorado. i thought it was interesting. the last piece of this is i was sort of frustrated yesterday and went online to see how easy it is to buy some of these things. i don't want to suggest what is possible. it was unbelievable. i'm sure someone was tracking what i was doing, and he wasn't trying to buy a gun or ammunition. with one click you can do it these days. did you know that? >> it's why there's going to be such a bigger focus on gun controls and gun rights. >> did you see any focus -- >> mayor bloomberg and others are talking about it. >> you don't see it from the presidential candidates, and that does not poll well on this country. i'm on the opposite side of that issue. let's talk about some other news this morning. google and facebook boosting their federal lobbying spending in the second quarter. google increased the amount by 90%. that's year on year to $3.92 million. year-to-date facebook's already spent more than 1.35 million that it spent in total on federal lobbying in 2011. target issues include online piracy and pattern changes and immigration reform. >> new yorkers can have their say on mayor bloomberg's proposed ban on large sugary drinks starting today. there's a public hearing scheduled for 1:00 eastern time. it arequires the approval of the board of health, but they could convince legislators to step in and stop the proposal. if you have an opinion on t-we'd love to that's true from you. over whelmingly people are out against this. the idea they want to decide where they use their calories for the day. it's also interesting that the mayor pointed back to this and said this was the way people felt about smoking and look what happened with that ban. >> i don't want to seem like a complete idiot, but yesterday we talked about the 16.9 ounces. >> half a liter. >> 16.9 ounces. we were talking about why it was a standard size. that's the standard size. for our audience in europe, thank you. coming up, earnings the story of the day. you heard about dupont, but we have a lot more. at&t, ups and we have a number of other ones. we take a look at anames to watch, but first, attention aspiring "american idol's". becky, he hope you're watching this. there is a new person to impress. grammy-winning pop star maria ca carey will join "american idol" next season. for those of you playing money ball at home, the news reports say she's paid a whooping $17 million. >> wow. choose control. introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz. welcome ba. the equity futures are indicated slyly lower. they were down by 30 points after big losses yesterday. again, at the end day the dow was down by over 100 points and that was less than half the losses we'd seen earlier in the session. in our headlines this thursday morning, warning brothers reporting that ""the dark knight" rices took in as the debut felt the impact of last week's movie massacre in colorado. rebekah brooks will be charged with phone hacking offense. the david cam ran oes ex-media chief and six staff are also to be charged. right now let's go over to alex wallace from the weather channel channel with today's national forecast. alex, good morning. >> good morning to you. unfortunately, not a great morning for us weather-wise across parts of the midwest. right now we have a severe thunderstorm watch in place for the chicagoland area and across northern illinois until 9:00 local time. look at this nasty cluster of storms in that general drekdz. there's a warning on the storm cell at this point. we have seen damage reports of trees coming down across southern wisconsin and northern illinois. these storms mean businesses and there's more storms to deal with in the north and west in the twin cities and down around cincinnati. that's the general pattern through the mid-part of the week. we have this boundary stuck in place across the upper midwest trailing into the mid-atlantic region. these storms ride up through that general vicinity, while the middle of the country stays hot and dry. some of these storms could be strong to severe throughout you're day, getting down into the southern mid-atlantic. damaging wind and hail is the mainly risk, and the darker shade to the red, we could see more storms develop late into the evening and overnight hours. minneapolis backed ut again towards chicago. outside of the storms there is that heat. more heat advisories to deal with for the day. kansas city, st. louis over towards western kentucky including paducah. heat index values brutal. it will feel like it's around 105 to 110 degrees. actual degrees for today 10 to 15 degrees average. it's going to be stifling, so take it easy today and even into tomorrow. so guys the hot summer, it continues. >> thank you, mr. wallace. let's talk about the markets this morning. of course, worries over the euro zone debt crisis and earnings on the home front continue to drive the markets. joining us is jason pride and he's director of strategy and kevin ferry at cronos future management. what's on your mind? is it earnings or europe at the moment? jace stoso jason. >> right now the economy continues to weaken a little bit. we feel we're in a third annual growth scare, but it's great for long-term investors, very few have a true ten-year horizon and mindset. therefore, you have to play defense to some degree in this environment but not too much. not all the way to the cash and non-paying assets. >> what's your version of defense right now? >> it's the middle of the risk spectrum. dividend growth stocks on one side and having some credit risk in the form of high yield bonds and international sovereign debt. >> mr. ferry, how are you feeling about that? >> well, yeah, i think that's good for investors, but the world is full of traders right now. people are more like me. i think yesterday was a telling session, because it could have really gotten out of control. it didn't. so that's one of the few days where i say -- >> you say that's a good sign, that we didn't get quote-unquote out of control? >> i think that's a good thing, yes. usually if you say oh, well, it was down 200 and finished down 100, that doesn't really impress me. certainly yesterday was one day it did. i think maybe above 1347 in the s&p futures today, things look a little brighter. and we have to come with some paper. you saw the short end in spain this morning, so we have bills and notes coming here in the states, too. look for a little concession. rates aren't going up dramatically, but you look at record low yields that might be tricky to get this paper off. >> how are you thinking about volatility right now? >> it's -- they're doing everything they can in every central bank around the world to lock it down. so i think that's a danger. i'm in favor of more volatility, obviously, but i think it's dangerous because the policy is try and keep the market as locked down as possible until they sort things out. you can see friday and yesterday that the markets have a way of finding their way out of the cage. that's why i think it got a little stretchy for sure in the first two hours yesterday. >> jason, i just want to -- because you're not trading day to day. you think about this a little bit longer term. if you think we're hitting the fiscal cliff or at least the debate will continue, do you think that the spanish issue and the euro issue is not going away, why not be more defensive than what you talk about? everybody is in dividend yielding stocks right now, and i wonder whether there's a bubble in that market onto itself. >> the valuation there is are definitely something that cause us some concern every once in a while. when you dig into it, a downside scenario of the type that you're talking about surrounding the fiscal cliff or the situation in spain is going to impact the more cyclical companies. those dividend growth companies not necessary high yielders, but dividend growth companies, high quality companies are more likely to have an ability to carry through their business with a disaster snare yoi. with the risk to the yound side, that protect is important. >> jason, separate out the disparticulars and throw out names so we understand what you're talking about. >> sure. dividend growth are companies that be capable of carrying forward a dividend payout ratio and a growth to that dividend over time. examples include phyllis morris international, colgate pal monthly live and the companies that stabilize their eshg earnings in a downside economic scenario. >> you're saying to stay away from which thing? >> staying away from the more cyclical stocks more expose to the economic cycle. they produce economic growth in a slow economy anyway, and on top of that their propensity for dividend growth in a more sdus yus period is lower. >> we thank jason and kevin this morning. we appreciate you guys being with us. >> there's more news coming out with that hacking scandal. >> yeah. >> with "the news of the world." apparently brad pitt and angelina jolie were named by british prosecutors among the alleged victims of the phone hacking. so we're getting more details on this. we'll hear