Portugal recovering by more than 2 . That doesnt get back all the losses from yet. Lets get more headlines from sara. Billionaire investor carl icahn putting up the caution flag. Reuters says it is time for investors to be cautious about the stock market and hes been very selective about the companies hes choosing to purchase right now. Well hear more from carl icahn next week. Do you have something to say . I can just tell you, ive known him a long time, ive been to dinner with him many times. Hes always every time i have had dinner with him, hes on the stock market, every single time. And especially like carl that looks at first vacations, a lot of these ooips guys always sort of think that things are overvalued. Im thinking this time i dont know if we had children, i mif just had any daughter. So its 14 years ago. We had a huge discussion at dinner on and on and on about it. All these reasons. And he went up well, since then weve tripled, probably. But weve at least doubled over the next few years. Guys like him are always looking for great deals, right . When they cant find them nobody has a better record over the last ten years. When i was talking about him, he was a billionaire. He went down to hundreds of millions of dollars, right. To get that kind of a search, whether the market is overvalued, undervalued. Theyre looking for a change. Guys will talk about that. And down at the lows of 656 on the s p, roubini kaem out and i was a stock market timer. All of it when they come on, Alan Greenspan at 5,000. The pundit crisis. Wells fargo is going to be reporting this morning. Analysts expecting profits up 1. 01 a share. Thats versus 98 cents in 21. 4 billion a year ago. Well have instant reaction to those numbers as soon as they are released. Same story. Who is supposed to read this . Yes. Citing gains on asset sales, chevron reported First Quarter earnings of 2. 36 per share. Chevron expected to report Second Quarter earnings in august. Gap reporting that sametore steals fell 2 in june versus a 7 increase a year ago. Comparable scales fell 7 . Turchbs out thoughts sales at its old navy shot, pretty mixed picture were getting in the last 24 hours. Youve got the other guys that are actually and people will never look at carl and say wow, he doesnt know what hes talking about. Jeremy siegel, or pick a guy like ron baron who is always optimistic. Suddenly were at 17,000 and you look at those guys and you snicker. But were at 17,000. Who has been right . Al. Ableson, who is so smart that hes always bear yesh from 800 and maybe it just doesnt change. You guys are late, great if i came back as something, i would come back as appear embarrassing they have celebrity status. They do. And you can feel like a contrarian because you feel like the market is the crowd. Finally, their moment and its going to get worse or its over. Lets get to the conflict. Were talking to Martin Fletcher who is legendary. I used to watch him. But now i get to toss him which is an honor. Martin fletcher joins us from tel aviv. Hello again, martin. Hi, how are you . Im well. Good to see you and glad to be able to speak to you. Did you ever find out what that was yesterday that you were hearing . Were those more rockets . Well, there were more air raid sirens, but no rockets over tel aviv at that time. Hamas today issued a statement warning airlines not to fly into tel aviv because they say theyre going to target there are archts. I flew it into the air a couple of days ago, lufthansa delayed their flight to tel aviv for about five hours. They said because of the political situation. The iron dome presumably will be an effective defense. Auto serious set from her mad military wing. And at the same time, israel is continuing its attacks against gaza. We will see more in just a few moments ago. Is israelis have been ringing their cell phones and sending Text Messages saying evacuate the hotel, you have ten minutes. Theres cell phone calls and drops telling them leave your homes now. Normally that is a precursors for raids in those places. So if you had to handicap that at this point, mart yip, thats one of the things we talked about yesterday is how many times weve seen something similar to this play out. A lot of times, it doesnt accelerate into any or get worse than it is at the current time. What is your gut feeling this time . Thats right, joe. Israels movement here is to prepare for a Ground Invasion of gaza. To terrify everything that its going to happen. Hoping theyll be too afraid of the combination 37 that will stop. Everyone is afraid of a Ground Invasion. However, it may happen. Its not something israel wants to do. As long as the rockets keep being fired from gaza, israel has to find a way to stop it and the Ground Invasion increasingly day by day becomes more likely. The palestinian rockets, our 550 palestinian rocket have been in israel over the last twoweek period. Nobody has been killed by these rockets. But today, a rocket did fall on a gas station creating some serious damage in the gas station. Eight israelis were wounded, one seriously. Thank you for your reporting this morning. You figure israeli reservists are they dont mess around. Not that we dont have guys here, but a reservist is almost like a regular database. Well, theyre more ready to be called up. Exactly. If i was a reservist you would have on be trained first. You could do it. Everyone in israel does it when they turn 18. Lets get back to the problems in pore tu began. Steve sedgwick joins us from lisbon. Hey, steve. Hey, michelle. I remember a conversation i had with john, i think it was about the lisbon zoo. But that was premay 2011. Thats when they had their bailouts because sth this economy was in a real big problem. The season is expected to get nervous. The fed in porch with a tenyear debt saying below 4 before this crisis, and the peak of the debt crisis in 201 is. People just didnt know what was going on. They saw the questions about default at one of the paring companies. Theyre still not sure how this goes. It is a paid three. The company is reported on its loans is not bank your despirit, and its controlled by this operate family. Getting back to what were doing today, a little bit of calming with the market. They are problems isolated with the family who have a lot of explaining to do. Portugal telecom, which has loans for the Espirito Santo family. You can see the issues here. Everyone doesnt have any clarity. Theres a lot of questions remaining and thats why people got nervous. People get very nervous and rightly so. Absolutely, steve. We were wondering if its slighted or symptomatic here. So this is current. Wells fargo results, is that the day at 8 00 a. M. . That is today. And from rome. Threes company. Im sorry, just me. Anyway, lets continue our conversation. The worries over oorp and portugals banks were muted anyway, that was a short session, dont listen to what everyone else is saying, what, did it go down 6 30 or something . Should investors be concerned . I dont even know what happens in portugal. You said its going to hit 2 at some point. Well, its on its way, well see. In a macro accepts, that the fiscal troubles are back in that part of europe . The bank itself and his oven buy of five or six different holding companies. But my concern here is the ecb and as portugal moves in and investigates the Holding Company, theyre going to buy more than we even know at this time and general michigan experience on wall street has been that is what always happens. My second concern of the situation is contaj him, fear some of the difficult is. Because its al intertwined and we dont mow the answersess. Im shocked 37 and if they ferg out how its whether the ecbc has over this, if that doesnt allow them to capitalize, then what would . Well, i think thats right. I think thats why the market normalized later in the day. I think the two issues here that i mentioned, the contagion issue and whats really there, but i dont think its going to be a disaster for the american markets. Mark, we were just talking about rome and spain. Quality of life isnt bad. In terms of like the brakes in the middle of the day, i remember in pore due gal, not a lot happening between 11 00 and 4 00. Is this a problem in all the Company Companies over this . You do need at some point. The european european country and thats been one of the difficulties of meshing all this together. Honk are we talking about europe in terms of our own situation over here . I think the big issue between europe and the United States is how low their Interest Rates are. In the fiveyear german sovereign debt is 500 less than ours. Which is one of the reasons that compared to value, a relative value basis, certainly you talk about all day in toerms of the equity markets, thats one of the main reasons i think the u. S. Is going down by comparison. Okay. Well, i just we made a lot of portugal yesterday. If none of this is important, i feel used. I think the question when we woke up was, like i said, isolated or symptomatic or something far more widespread . And when you start to read about the governance issues of this particular bank, how the bank of portugal has basically nationalized the management, you start to think not a lot of people on but the Biggest Country to worry about has not moved forward with reforms. This is not a reform issue opinion all right. Mark, youre very calm today. You are basically saying this is not going to be anything. What do they need to change . They dont need were going to keep going there. Its the greatest place in the world. They just need restructuring. I go there and i come back here and think, why dont we all nos to italy. The fact that theyre not going to pay it back, they can just keep going with it. Remember when we said g2 no, it wats g1, when al pachino was struck by lightning. Coming up, three of the worlds richest men are calling out cob for not taking any drones off am con. Check out the fuchs. Weve seen declines in three of the last four sessions. Lookses look like were going tokt a rebounce today. N riemomentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. Act zon making a request to the faa to Start Testing its drone delivery service. Granting the Internet Retailer an exemption to drone testing rules to restrict flights and fix official staging areas throughout the cup. The countrys drones can now carry about 5 pound loans over 50 miles per hour. Outdoor flights and potentially Pilot Program would take place in the seattle area, about five pounds. I dont know. I dont know about this. Tested in seattle. Did you see where those guys were arrested for flying something around, they were commercial helicopters and they almost ran into each other . How far is seattle . Far enough from you. I dont know. How do you feel about it . I wonder how they would do this in new york city. You can put an eye out with one of those things. Yeah, that and how do you reach the fifth floor . I dont know. The windows open, it would be like hovering out there. I love the whole concept. Thats nice but, you happen, Science Fiction is nice, but what if it runs out of gas and hits you in the head . People said that about planes and cars at some point in time, right . Were going to look back and say remember when we worried about drones . Okay. Three of the worlds richest men are taking up the issue of Immigration Reform. Sheldon adelson, Warren Buffett and bill gates have an oped in the New York Times this morning. The three are calling out congress for not taking action on Immigration Reform. Weblg it borders on insanity to train intelligent and motivated people in our universities, often subsidizing their education, and then to deport them when they gautt. Many of them people, of course, would like to stay. But some return to their home country. Thats fine. But for those who wish to stay and work in Computer Science or Technology Fields badly in need of their services, lets roll out the welcome mat. The three of us vary in our politics and would differ also in our preferences about the details of an Immigration Reform bill. But we could without doubt come together to draft a bill acceptable to each of us. We hope that fact holds a lesson you dont have to agree on everything in order to cooperate on matters about what you are reasonably close to agreement. At the time that this occurred, they picked the easiest stuff to talk about. We all want Legal Immigration to come in, how then do you address whats happening in texas and the concerns . Its almost like a different bill. Its almost like a different you know, almost a different aspect of the whole issue . What a lot of folks dont want to say out loud is we need immigration, high skill, but we also need low skill immigration. No one wants to go near that and that speaks to the border issue that youre talking about. Trying to bring those two items together, incredibly difficult. But that doesnt mean they shouldnt try. They call out what happens in virginia where 36,000 votes elected someone completely new which put the whole immigration issue off the table and saying thats completely ridiculous. We didnt elect our congressmen for that. But out of the people that have come in so far, what is the answer for what we do . They go back, they stay, what do they do . I thought you were talking about the amnesty issue. Youre talking about the children . The people crossing the border right now, what do we do . The logistical details of trying to return all of the people who but how many border people are now trying the keep people out rather than pay for the people who are already here . Boy, so if we had a much better immigration system, a lot of that would be reduced dramatic will i. Then those who are trying to sneak across the border you know because of the criminal element and you think its a humanitarian issue right now . Yeah. If you were in texas and there is a humanitarian wouldnt you have gone for the season . Uhhuh. So this is a poisoned atmosphere in congress causing all this . It has become a political issue. Thats what the president is making of it right now. Despite the fact that its a humanitarian issue. Why would a photoop means that why would that somehow tarnis his image if he was photographed at the border assesstion the situation . I dont know. Because it would somehow associate him with the problem. Were at a place in politics in this country right now where theres a lot of plame on both sides, but its unbelievable. Its part of the lame duck. Hes not running again. Which is why i dont understand why he cant take up immigration. Thats some relief there. You want to make well, i dont know. Someone said literally. Coming up, should the bulls proceed with caution as carl icahn says . And as we head to break, a look at yesterdays winners losers. Veggies youre cool. Reworking the menu. Mayo, corn dogs. You are so out of here ahh. The complete balanced nutrition of great tasting ensure. 24 vitamins and minerals. 9 grams of protein. With 30 less sugars than before. Ensure, your 1 dr. Recommended brand now introduces ensure active. Muscle health. Clear protein drink and high protein. Targeted nutrition to feed your active life. Ensure. Take life in. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. But ive managed. I got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. When i finally told my doctor, he said my crohns was not under control. He said humira is for adults like me who have tried other medications but still experience the symptoms of moderate to severe crohns disease. And that in clinical studies, the majority of patients on humira saw significant symptom relief. And many achieved remission. [ female announcer ] humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening Heart Failure. Before treatment, get tested for tb. Tell your doctor if youve been to areas where certain fungal infections are common, and if youve had tb, hepatitis b, are prone to infections, or have flulike symptoms or sores. Dont start humira if you have an infection. If youre still just managing your symptoms, ask your gastroenterologist about humira. With humira, remission is possible. Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with Michelle Caruso cabrera and sara eisen. Were playing these weird songs and stuff. I had gender blind. If im playing andrew today, i guess you are. You know what they say in universities . Gender is a social contract. Im blind to everything. Im blind to everything. Politics. Everything. And i get a lot of mail that says that im blind to everything. And the headlines this morning, britains Imperial Tobacco says its in talk toes buy assets from Reynolds American and lorillard. Our david faber our david faber . Yes. Has been reporting that reynolds and lorillard will soon announce a merger deal and that imperial is likely to buy and possess the assets. Analysts say it could be worth more than 5 billion. Sales of video streaming devices are booming. New figures show that roku and googles chrome cast are leading the way. Roku and chrome cast each accounted for about 32 of u. S. Devices held last year. Al. Tv was third. And the Energy Department says there wont be a repiece of the long gasoline lines that were seen during sandy last year. A planned 1 million barrel gasoline reserve will be in price. There a peak between midaugust and october. Lets check on the markets this morning after the selloff that we saw yesterday. Futures are higher.