The nikkei up a half percent hang seng up 1 111. 2 . In europe, big effort gains in spain. Crude, the one big driver for crude the past couple of days would be harvey. Now a category 2 storm were seeing wti crude up by 0. 7 brent up by 0. 7 welcome back. Thank you great to be back when did you get back last night. Last night. 8 00. All right do you feel different . Do you why would you ask that, joe. Im wondering feels g right . Enjoyed it. Congrats. Everybody knows by now now they do if they dont, theyre about to. Misses melissa lee. Is there a new name. Im still me. Congrats. Good to have you here. Thats dedication, 8 00 last night anything anything to help you out, joe i will do. And the viewers heres the big stories were watching today that was maybe the biggest in corporate news, uber could hold a vote for its next ceo as early as today uber is holding a Board Meeting later total. According to sources hpe c eshs Ceo Meg Whitman will not be there, but former ge Ceo Jeff Immelt will be there re code reported earlier this week that immelt is the frontrunner for ubers search for a ceo. Amazon says its 13 13. 7 billion acquisition of whole foods will close monday. It says customers will see special savings, especially for prime members. Kroger, costco, sprout, super value all fell yesterday wall street will be closely watching fed chair janet yellen today. Shes delivering a speech in jackson hole, wyoming. The topic is Financial Stability and fed watchers will be looking to find out clues about plans to wind down the Balance Sheet. We will also hear from ecb president mario draghi full coverage throughout the day here on cnbc including an interview with cleveland fed president , Loretta Mester at 8 30 a. M. Eastern. Fed governor jay powell at 2 20 p. M. On power lunch. The big story this morning is Hurricane Harvey, gathering strength in the gulf of mexico now a category 2 hurricane lets get an update on the storms path from wvit meteorologist Kaitlyn Mcgrath. Good morning thats right. Harveys central pressure is rapidly falling as it continues to gain strength moving through the gulf of mexico already starting to make its mark on texas. You can see the center of harvey, again, continuing to tighten, becoming a stronger hurricane. Forecast to become a category 3 storm later today. We can see the outer convective bands working their way on to the texas gulf coast this is just the start when all is said and done, expect 15 to 25 inches of rain with locally heavy downpours up to 35 inches of rain so well show you the track here and what well be watching carefully throughout the day today. Harvey will continue to gain strength as it heads through the day today, working its way towards the gulf coast, towards Corpus Christi late their e Corpus Christi late their e thi evening. High tide this evening expect storm surge 6 to 12 feet as it tracts clos s tracks cloo the texas gulf coast a number of watches and warnings in effect for the entire texas gulf coast we can see Tropical Storm warnings and much of the coast under the hurricane warning as we head through the day today. Expecting from 15 to 25 inches of rain with some areas getting more than that the primary threat is flooding and how slowly the hurricane continues to leave texas once it makes landfall it will sit there for a number of days flooding will be the primary threat as we head through the next few days for the texas gulf coast. Thank you since 2008, hurricane ike, the last hurricane to hit texas. Its all about the refiners, so much of the oil industry i was thinking about katrina, 2005, 12 years already yeah. Think how much has changed in the oil industry in terms of oil production, back then 25 of u. S. Production was gulf of mexico today 18 . What is interesting is for Anything Energy investors they cant catch a break. Oil and natural gas will be obviously spared this is slightly bearish for oil if you think about it. The refinery need for oil will not be there its critical for refiners to not have flooding, but you are going to see flooding. The Energy Industry to your point that changed dramatically, its because of technology and what it has done i dont think this is going to be necessarily the story for the Energy Industry that it might have been back in 05 and 06 well talk about that now a third of the Refining Capacity is in the gulf coast it goes from texas to alabama. Jackie deangelis joins us now with more on the refiners. Shes live from Corpus Christi, texas. Jackie. Hi, good morning to you certainly that 25 inches plus of rain that is expected here is going to be a problem on these coastal areas, especially like this beach where were standing. Its also the wind that has been kicking up some reports are indicating we could see wind later tonight when this potentially becomes a category 3 storm of 125 Miles Per Hour those are some serious gusts you combine that kind of flooding and that wind, you start to have refinery shutdowns. Theres about half of the u. S. Refining capacity all along the gulf coast here in Corpus Christi you have five big refineries that have already started to shut down operations and evacuate personnel. There have not been forced evacuations. These are voluntary. As we were driving in last night you could see people leaving town you could see a lot of people in the middle of the night lined up at gas stations. We stopped at a walmart to get supplies a lot of shelves were empty. People were filling up jugs from outside. People were moving out of this area as a precaution thats because the forecast is saying we could see this storm really pack a powerful punch tonight. If you do see some of these refineries shut down, this is a category 3 storm, were talking about shutdowns of about 2 to 3 weeks, maybe potentially more than that. Thats what the market is bracing for. Its been measured so far. Crude and rbob have seen moves up right now its a wait and see approach as this day progresses, i think youll see more of a spike in some of those prices according to Government Data, its not just refineries. We have about 10 of the onshore drillers shutting down facilities about 15 of the natural gas facilities are shutting down i expect those numbers to increase with time we have seen the crude market under 50 a barrel rbob moved in lock step with it. This will be a shortterm blip it could last a few weeks certainly. But it will move the markets well watch that is what we do but the more important thing, hopefully everybody stays safe more flooding than anything at this point its the property and the casualty loss that i think will be the real story on the other side of this hopefully not well, obviously if it is going to be sustained over several days, youre talking about potential for 25, 35 billion in potential damages so you think of state farm, you think of all state obviously they hold a lot of the risk in that region. I saw some charts showing different scenarios. Just for this storm. And depending on the track and theres here and here you have no idea but its the flooding hopefully 25 inches of rain 10 to 15, or 25 to 30 its going to be one or the other. Hopefully its 10 to 15. I think either scenario its bad. It is but 10 not as bad as 30. True. I saw from some website there was something positive on the internals of the hurricane it may not go in as a 3, but a weakening 2 or 1 tax update from washington the Trump Administration will let Congress Take the lead on a tax reform bill. Eamon javers joins us now with more reporter white house official told me yesterday that the white house does not intend to put out its own tax plan as many people had expected theyll let Congress Take the lead on releasing the details of the plan heres what the white house official told me yesterday the congressional committees will take the lead on this that would be most likely the house weighs and Means Committee that would put out the first detail there. They said passing the bill is more important than what the details are of the bill. Also they said theyre now intentionally using the phrase tax relief rather than tax reform to garner support for this bill. You heard Sarah Huckabee sanders yesterday at the White House Press briefing asked about tax reform she gave an answer about tax relief some interesting messaging choices there and tactical choices. The white house was criticized during the obama care repeal and replace effort for not putting out their own bill and letting Congress Take the lead on that that effort was not successful earlier this year. Well see if this can be successful addres a strategy th time around. We heard paul ryan telling ylan muai that he thinks congress can stick the landing also a possible spending deal floated by people in the white house particularly on funding for the wall with mexico an official telling nbc news that the president will back a compromised deal which would fund the government for three, four months without funding the wall then trump would demand a border wall funding on an omnibus spending bill. Speaker ryan talking to us yesterday saying he thinks theres going to be a need for a spending extension, so they wont be able to get everything done in the time frame they imagined so there will need to be a shortterm spending bill between now and when the ultimate deal happens that is giving us a bit of a picture about how the fall will shape up politically in washington eamon, thank you. Coming up, markets and commodities are in focus Dennis Gartman will join us after the break. Who better on this Hurricane Harvey coverage that were having both of you remember who if you say harvey, dont you think of the giant invisible rabbit . No Jimmy Stewart . No. No. No. Why is it only me harvey, fantastic. One of James Stewarts greatest movies it was about a guy who was friends with a sixfoot tall invisible im not going to watch it. Its good you should. Later this morning, blackrocks cio of fixed income, rick rieder will join us squawk box will be right back. Cameras. Introducing the newly redesigned gla suv. At a price thatll make you feel like youve gotten away with something. The 2018 gla. Lease the gla250 for 359 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats up to 16 times faster than slow internet from the phone company. Say hello to faster downloads with internet speeds up to 250 megabits per second. Get fast internet and add phone and tv now for only 34. 90 more per month. Call today. Comcast business. Built for business. Stocks to watch today. Twitter downgraded from hold to buy. Jeffries says twitter will lag behind google and snapchat when it comes to digital video, which he calls the biggest opportunity across social media over the next few years. Ulta beauty. Can i buy a consonant . Can i buy an r you mean ultra . I think they misfiled it ulta sinking in the after hours session after reporting earnings gamestop Second Quarter profit falling shy of forecasts. Revenue Beat Estimates the Nintendo Switch console helped results gamestop expects a boost from the apple iphone when its released theres just one piece of Economic Data to wrap up the week, july durable goods out at 8 30 a. M. Eastern time economists are looking for a drop in heavy alliances, aircraft and construction equipment. Dennis gartman is here to talk broader markets, and our guest host today, Joe Terranova, a cnbc contributor dennis, good morning to you. Good to see you. Good to see you welcome back congratulations. Thank you very much good to be back. Want to ask you about harvey i come back, all this talk about a category 2 storm that could make impact to houston we did see a bid to refiners in yesterdays session or over the past week or so. I think whats interesting is how solidly and how well the futures market has anticipated in and tells you whats going on this will be a shortterm event it could be very serious somebody who lives near the ocean like i do, we worry about hurricanes all the time. This is already a category 3, it may slow down to cat 2 and possibly cat 1, but there will be repercussions its put downward pressure on crude oil, when you think about it, thedemand for crude will decline. At same time refiners will be curtailed. So you will see a shortage of gasoline and distillate. As soon as you go out past november and december, you can see them weakening the market understands wha happen wells fargo had an interesting note out in the month of june that refiners, the stocks, tend to return about 6 on average in the ten days following the landfall of a hurricane. I dont know if you buy that that f that sounds about right to you or if you think the market will anticipate that and put that in the stocks up front . In all likelihood the refiners will do better. The crack spreads have widened out dramatically in the very nearby futures however any increase in the refiner stocks predicated upon an expansion of the crack spread for the nearterm probably will be shortterm in nature. I would not be a buyer good morning, dennis. You and i have seen many cycles in the commodity space its confusing this year you have the u. S. Dollar which continues to move lower. Most commodities cant catch any form of a bid. What is it that you see as being the reasoning behind that . Is it the advent of technology and the increase in terms of supply because of that or are we in part of a cycle that will recover once again theres two things. The Technology Changes that have occurred in the oil industry have made it less and less expensive to get the same crude oil out of the ground that clearly puts down waward pressu on crude oil at the same Time Technology created a much better crop on a year over year over year basis year in and year out, drought in, water out, we grow more corn, more cotton, more soybeans, more wheat per acre than the Previous Year finally you have what had been a stronger u. S. Dollar, but since the turn of the year its been weaker hopefully a weaker u. S. Dollar will spur export trade, well begin to see that happening in the wheat market for the first time now wheat has been impossibly overpriced in dollar terms in the course of the past month or so wheat has become more competitive from the u. S. Than in the past. If we see some tenders for the wheat market showing up in the next week or two, that may be the first signs of a slowing of the deflationary pressures in the commodity markets. I want to err upon the side from this point Going Forward to being bullish. I need to see reasons to do so decembnnis, the s p is off 2 from the 52week record highs jackson hole will be a major event. Everybody is focused on janet yellen, but mario draghi has been known to go off script. Hes said some interesting comments in the past that have moved markets what you are looking for today . It could be a quiet friday or a volatile one im hoping it is a very boring friday. One is always suspicious of that sort of thing. The stock market is a bull market i have found it impossibly overpriced i tend to be skeptical of it nonetheless it has moved from the lower left to the upper right for years upon years upon years. It will continue to do so until it stops as far as the expectations today from mr. Draghi, i hope he has, as he has said in the past week, that he has no major announcements to be made we expect to see something from ms. Yellen, probably some timetable as far as the reduction of the feds Balance Sheet. Im hoping theres very little im hoping for boredom boredom is far better for me as far as im concerned going back to Monetary Policy theres been a put underneath the market that has attributed to this. If you mroef the pyou remove thu dont get the fiscal policy initiatives, can we act in continuance for seeing asset appreciation one would have doubts i think the major precursor, the major fundamental behind the driving prices of stock going higher from the lower left to the upper right have been the monetary authorities being extremely expansionary in policies the Monetary Base in the United States expanded four fold. The ecb three fold without that increase in the monetary aggregates, theres probably not that much fundamentally in the economies of the world to allow stock prices to be where they are. If they slowed down, at some point if they begin to allow the monetary aggregates to decline, thats going to be deleterious to stock prices. So the market will stop when it stops, it will stop when the Monetary Authority begins the slowing of and reduction of monetary aggregates. Were you saying theres a fiscal policy put i would think that the put has been gone for a long time. Thats actually my point. So okay. You have the Monetary Policy put. We heard for years from the fofom krsh we need fiscal policies for the handoff to occur the belief is that you dont get them you remove the Monetary Policy put, you need fiscal policy, in the absence of that it seems like you have a problem for asset prices right dennis, good to see you. Thank you. Dennis, you can confirm harv