Cramer, faber is off president is in wisconsin, surp positive, yields tick up on decent core ppi. Tech stocks taking a tumble. Treasury is out with its plan to loosen Bank Regulations and is the worst over for under armour . The stock having a nice bounce after the warriors take the title. First up, tech stocks looking to rebound from their worst twoday streak of the year jim looking at some of the percentage declines for fang, somewhere in the 4 to 5 range. What happened is you didnt get followthrough other than the negative apple you got a downgrade of adobe that lasted for about 30 seconds. There were no substantive calls and by the way no preannouncements that these great tech selloffs that weve had there usually is a linkedin tableau data, upgraded today by goldman. Theres something to hangon to which says tech has slowed down but we didnt get that, which made it so it was more of an air pocket than it was the beginning of some gigantic rollover. Just didnt get it i was looking for something. I came in this morning and said okay, who is not doing well. Cheesecake factory, hard to, i dont know, the technology there. Lowering guidance today a lot of tech there scotts miracle gro, not a lot of tech i tried to use it but people say thats too much chemical i thought that would be up because of the people saying they have hydroponic, but thats what were faced with. We dont come in and discover that netflix has preannounced, we didnt get something from sales force saying it looks like you cant make the quarter or workday is discouraged, without something fundamental we cant follow up. And analyst calls are not enough to do it. No. Goldman on shopified today is not going to do it i totally get that, the stock, the guy has been right. What a huge run hes had hes taking it down because he doesnt want to be caught into a friday situation i look over the things that people downgraded, i didnt get anything i was surprised just to be clear that we didnt get more defense. I would have thought people would be out in full force saying they did not kill the stocks yesterday i thought they get out of the fox hole, the pill box and rerecommend facebook. That did not happen. Maybe that happens tomorrow. These analysts dont realize the old way the game is played you get hit on friday, you stay under the table monday, maybe even take a day off, go to the beach and come in tuesday with guns blazing these must be too young. That was the routine from 1983 until a few years ago. So we did not get enough disappointment to take things down instead we get good news about micron, quiet defensive apple, that kind of thing b of a has their fund survey managers out and the second month in a row, most crowded tried is long nas 38 , it was 26 in may you know, mike, the problem with the most crowded trade if you go away and go to the banks, controlled destiny, no, in the hands of the fed retail, controlled destiny, no, in the hands of the consumer an Amazon Health care, controled destiny, no, really the disarray of the government so when you get these big sectors, do you not get them, you cant have them say you know what were going to have a great quarter because in the end theres too much negativity. I like merck what comes out merck has a drug that did not do as well as we thought for myeloma. Without knowing for certain the fed will raise twice you dont have certainty but when it comes to adoption of the cloud and internet of things what can i say . Its just a very powerful force. So youre not an advocate of rotating here. I was hoping into laggards i was hoping more than just under armour and the golden state win. Under armour bottomed not because of golden state. Its selling well at kohls and thats a wakeup call. Kohls is doing very well with nike and under armour. Ron barron put up an impassioned speech about under armour. I dont have enough negatives in tech i thought cheesecake had a good quarter. Its not all fat they have a menu just so people know they have a menu if you dont decide that you need you dont have to fast after going to cheesecake. But there is a kind of it said the east is not doing that well. The scotts miracle gro is disappointing. Why . Ive been trying to figure out why home depot goes down almost every day since the great quarter. People will read through maybe the guaardening season is not ta strong weve had a very negative reaction to home depots quarter. Well watch for that. Ron barron on strauquawk this morning. Heres what he said. To 2030 i happen to think the stock market and the economy are both going to double as they have every 12 or 13 years for my whole life that means the dow jones will be somewhere around 38,000 or 40,000, up from 21,000 presently and it means that gdp, which is now about 19. 5 trillion will be about 38 trillion then all right, so theres boaron were not that close so i cant say his forecast is outrageous, because were a little far from there. I will say this. He is kind of a Warren Buffett attitude toward life, i think the underlying them is we have progress, and when we have progress things get better i dont know if anyones been able to dispute that it isnt like were back to downsizing so i think people feel if you listen to the poll, its technology. Elop musk is a visionary and visionary per share is kind of something we give to reed hastings, and we give to jeff bezos and elon musk. Baron, we dont talk about them often but they take their target from 193 to 464 i saw that leap frog target tes tesla, they. You the it in reverse and recharged and they put i dont know, those bears are looking, whoa. They got tire treads all of them and difficult to stay short that stock and hard to borrow there are diehard guys who say that he cant, musk cant pull it off and all i can say is you know what . They certainly have demand they have demand yep and you see them everywhere now. Thats a big difference. Thats true for a long time it was a west coast phenomenon i went shopping this weekend because i like to shop and get a real sense, faber is not here is i had to shop twice. I go through, theres tesla, tesla in the parking lot im like, wow i guess i got to get a tesla maybe my 2005 lexus wagon is time to retire that. And i love that car. Eric saltz ill be back, dont worry. Hes not going to let you forget i will not forget the Treasury Department plans to soften bank rules put in place after the financial crisis the 150page report features proposals including restrictions on banks trading operation, lightning the annual stress tests and reducing powers of the Consumer Financial protection bureau, basically protecting voelker in principal but not for banks less than 10 billion you have to have the Federal Reserve and congress and of course treasury. Behind the scenes you have Bank Regulators and this is a part of the denuding of the Bank Regulators who put their feet o jai jamie dimons desk thats going away. Mnuchin does not want heavyhanded regulations if you can principle, able to buy stock for a client and not worry about some sort of regulator saying hey, come on man, thats really what youre doing is buying for yourself thats going to make goldman do better and if you wanted to know who does better in these rules in this environment it is Goldman Sachs but i also would tell people it takes many to tango. The Federal Reserve could be in there. You still have Federal Reserve holdovers who i think are still more aggressive. It isnt they can say we want a gigantic dividend boost for all the banks. That capital has to be redeployed the only way to get the bank stocks moving unless we get two rate hikes which Steve Liesman has been adam ant we will. I prefer liesman to the Financial Times guy who argued yesterday june and done as far as other policies go mor creeping conversation theres the mueller trial balloon that the president was considering. I remember writing this story about Archibald Cox and nixon and the special prosecutor would that be negative for stocks wed freak out we have an all Republican Congress it would be a gold buying opportunity is the way i want to put it there are too many of us old enough to remember the saturday nice massacre when Archibald Cox was fired. He was a Great American like mueller and when he was fired, you kind of said, well, nixon was guilty and i think there will be too many people saying trump must be guilty or wouldnt fire mueller because mueller is regarded as a Great American theres whispers that congress may curtail their sixweek recess to work on tax reform that would be fabulous. Could we please throw in that debt ceiling would it kill us when the secretary mentions it i always think this is something that the republicans and democrats would fight about, but the republicans . Come on, lets move on and tax reform, yesterday the downgrade of apple, we didnt talk about it enough one of the points was hey listen, tax reform, repatriation not going to happen. Maybe only 10 or 15 because the rates may be higher. If you got the repatriation wed justify a lot of tech and industrial buys. We need to see that. We have to have that dealbook has a piece today about why ceo confidence measures are so high, but m a is down 40 from q 1 15 and we said with faber the other day a lot of it is tax uncertainty if you dont know whats going to happen, youre not going to take a radical action like an m a. I did a Corporate Governance conference and we got that same report that the jpmorgan fellow said we got a lot of dead deals. Look, without some clarity, its just not worth it because maybe youve done something wrong. I go back to the allergen deal killed by treasury i guess that he the end of these deals. We dont know what will and wont be killed. I think if youre in the government you should just try to give us a little clarity please but they dont seem, there doesnt seem to be urgency. Because the mrkts so good maybe they dont think they need to do anything theyve got some cushion. Yes youre sitting on doubledigit gains 2018 an election and not until then it isnt like every day i come in and the nasdaq is down. We better do something right we will find out, when we come back well talk some under warm your bouncing back from its lows of year, curry and the warriors are champs the nasdaq is still double the dows yeartodate gain. Isnt that something . Unbelievable, and the dow and the s p are on track for their seventh quarter of gains were back in a minute online u. S. Equity trades. 5. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. So, how are things cartheyise . Youre fired [ screaming ] its time to get back on top. Were going back to villainy. So bad so good that im so bad. [ maniacal laugh ] dont try to fight the feeling of somethin thats so organic. [ pop ] despicable me 3. Rated pg. Is the worst over for under armour stock rose almost 6 yesterday, that was before curry and the warriors won the nba title last night. Shares though still down 19 yeartodate 37 over 12 months its one of the big s p laggards all year nike tried to buck a downgrade, vf corps starting to move pbh had a good number. I think under armour is playing catchup. I dont want to get too far ahead of anyone because again its retail. There are so many Stores Closing that most likely have some under armour that youre going to end up seeing a lot of the stuff at the Bargain Stores dont get too ahead of yourself. Under armour was not as bad when it was trading at 17 and 18. I no he that kevin plank is a competitor and will not allow it china is strong. Its better than the alternative. It absolutely is. I remember talking about whether it would mean anything if the panthers won they had lined one the panthers and the answer is cam newton, if he had won they would have marginally sold more steph curry yes, lets give them some kudos kevin plank is a competitor who is not going to give up and he plays a long game. Long game. Delightful guy jeff immelt is a delightful guy but youre only as good as your numbers say you are as it relates to urry, remember we had this discussion whether a shoe sells when the player endorsing it is maybe not as physical, shooting from long distance, but maybe at this point, youth may see look, the guy is cool, ill buy the shoe thats what happens, and we all know that happens, and it may seem a little glib, but it has happened before. It will happen again this is something, by the way, in shoedog, an unbelievable book by become knight, you read how important, it all started with pres the prefontaine we wanted to stop pre. We it our shirts saying stop pre. We want to wear what the great people wear. As it relates to retail we briefly mentioned Sears Holdings some layoffs, restructuring and sears canada raising doubts about growing concern today. Sears canada, the previous ceo was saying that this was just a dying chain theres nothing the whole chain is dying but eddie lampert, restructuring. Theyre always making progress but progress is not their most important product there. Losses are i can tell you they can continue to do this gymboree on the other hand did a bankruptcy even though they had money to get ahead of it and close stores that was smart j. Crew today as well those j. Crew numbers soweres bad and a payment in kind. If i were a Hedge Fund Manager maybe thats attractive but it is in the mall and the winners here right now, the winners is childrens place, with the remarkable number last time and the stock should go higher but what can i say one of the problems about the rotation, it isnt like the mall overnight became someplace that the cloud lifted its the cloud we want to be in the cloud we want to be in work day. Tableau data not in the cloud but does measurement, Goldman Sachs comes out and says you want to own it adam silipsky, a former Amazon Web Service guy, he will see data, congratulations, steve weiche recommended that on the halftime show. Im not going to be there. You game of lambert a run for his money yesterday. I did but we went back and forth in email, a delightful guy, but there was a prosecution aspect of it, but you know he was yeah. Ooh, the prosecution never rested he knows the deal when he comes on, i have no doubt. Yes, and you know what . Wapner instead of being judge he was a witness for the prosecution, a great one that is true. Well get kramers mad dash and count down to the opening bell in a couple of moments take another look at the futures on this tuesday, more squawk on the street from the nyse straight ahead rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Lets get kramers mad dash ahead of the open. One of the stocks that came down for us, we did an announcement stocks had been up. Mcdonalds had been hit for about 36 hours here we go, bank of america, Merrill Lynch says no, have no fear, price target goes 165 to 175, and theyre talking about the franchises doing better. What i thought was interesting the hiring 250 people, they are allowing to you submit it, submit applications via snapchat, and people are buying snapchat on that may i remind people theres 900 million shares that are unlocked in the month of august so steel yourself if youre buying snapchat off that mcdonalds news, be aware that theres some others who may not be as sanguin who can tell during the month of august difference between mcdonalds and cheesecake the only casual Dining Company that is really doing well right now is darden, but red robin had a good quarter red robin has drinks mcdonalds coming off a 22 win week streak. Talking about ml yesterday and the00component performance since he began, ge was last number one mcdonalds if you took apple out, absolutely by the way, just so we know, there was only one positive comment about ge, and that was steifel saying we like what flannery will do i thought some had sells and holds on it, might say victory, no victories were declared which i thought was very interesting because a lot of people did want immelt to go, and i thought there would have been at least one guy who went from sell to hold. Flannery is so far theyre in abeyance opening bell in four and a ngonyerlfines dot awhe. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in about 90 seconds, a busy day today of course the fed kicks off a twoday meeting, sessions will testify in front of Senate Intelligence later this afternoon around 2 30, but as for the fed well get some fresh dots tomorrow, jim, and a fresh presser i cant it is so important for the rotation, because you have the bank stocks hanging in midair theyve made their way back almost to where they were, and if you get the right commentary, which is that we see the economy being strong then they can break out to the upside. If they dont youre going to wish you did some selling. I