G20 bond sell off continues in the u. K. In japan, italy, germany and here and oil is reversing some of yesterdays losses our road map begin with after a strong start to the second half stocks are stalling. Markets set to open lower amid signs of a tech rally and lowing sector hiring last month president bullish on u. S. Markets as he prepares to meet merkel, putin at the g20. Shares of costco climbing in the premarket stronger than expected june sales. Futures moving lower ahead of tomorrows key jobs number shows the private sector added 158,000 jobs in june meanwhile jobless claims fell still near historic lows well see what it means for tomorrow. Historic loes and some of the minutes yesterday, some of the deviciveness still lead me to believe there would be a rate hike which is what we need its not talking to north korea. You saw the futures go down. They actually rally. I dont want to put too much on that. I think that the fed minutes created a little bit of a flurry some thought i always liked that because you cant ignore the decline. The decline is something exten shl. How do we factor in north korea. We spent an hour and a half on squawk box about north korea we talked about what the president was speaking has been a big misinterpretation about what the president is saying i think he was talking tough about germany because poland has always liked to be independent of germany its not just against rush yans. Its just germany. At a time when youre look for uniformity against north korea. The square where he was speak was the epicenter of the uprising against the nazi occupation are you saying he is trying to revise germanys image. I think both. They waited a month. Churchill wanted him to go they wouldnt go held off which allowed the germans to annihilate the polish home army and then the russians came in. It was considered to be a horrendous move by russia and germany. Thats what he is representing you go in and youre basically saying you guys destroyed the greatest city in Central Europe and you also tell the russians thanks for nothing he has brought up things that have not been brought up for years. The reason why he went into that long discussion of polish history. That polish history is something that the polls have been begging to have reopened for a long time which is how the russians crushed the home uprising. Waiting on the outside of warsaw a horrendous thing they did. So you have a horrendous occupation and in order to make it so there would be a phony government put in at the minute that it ended to bring this up again is so fraught. He is saying listen its time for the quarter to be independent of russia and germany. That was supposed to happen in the 20s and 30s. I think this is very similar to when reagan said tear down this wall this is independence of a corridor against germany and russia wow. Yeah. Harsh words for russia as well well find out very soon what it means for the g20 a man is watching that this morning. Hes in hamburg. Good morning to you. Yeah, good morning youre exactly right. We saw the president in warsaw this morning as you guys have been discussing and the president putting on a president ial sales pitch there particularly in terms of u. S. Military hardware and equipment saying the americans make the best in the world and we want you to buy more u. S. Military equipment and also specifically on something the United States and poland can really do a deal. I want to take this opportunity to congratulate the government and people of poland for receiving their first shipment of u. S. Ly Liquified Natural Gas last month and you made a very good deal i understand let me be very clear about one crucial point. The United States will never use energy to coerce nations and we cannot allow others to do so so the president there very much suggesting that the United States is simply a better trading partner for poland and the rest of Central Europe when it comes to Energy Rather than say russia which is right over the horizon there from poland. So that is an important sales point that the president made. He also did something that he had been criticized for not doing on foreign soil earlier in the year that was specifically make mention of the mutual defense Agreements Inside the nato treaty heres what the president said on that part. We stand firmly behind article five mutual defense commitment. Words are easy but actions are what matters and for its own protection, europe, you know, this Everybody Knows this. Everybody has to know this, europe must do more. Theyre not as interested on his perspective on the paris accords. He might get push back there as well well wait and see what happens. So much speculation on what the handshake guys will look like. Those handshake what is trump has been doing all year have been scrutinized and well see how the one goes with putin here tomorrow. After those swieps aimed at the president in the past week well check in and the company and this is a spot trade. And between 5 and 5 30 was a major change all its doing that one shipment is to say listen we combine pipelines and shipments and poland, lets put it in perspective. There is really this was a drop in the bucket it would be something if poland tries to get a diverse identified way to get natural gas including not just russia that would break the hammer lock but this was a spot trade. No more and the president seemed to make it sound like it was a longterm agreement. There are so many ships right now in the water that have natural gas. If you want it, the market is going to be the second biggest market by next year. Polish govern. There was no longterm agreement. For people that may not remember, he was the leader in actually retro fitting this huge terminal that it was spending billions on to import natural gas for the export of it which now as jim has mentioned so many times is a very important market also free port, another big producer will be coming online and huge market. This is a very important commodity for our country. And the biggest statement is it would be natural gas that was the 3 billion shipment to poland just to give you perspective. Its been over 2 billion cubic feet per day to various countries but mostly latin america. The big win would be if we produce a gigantic we have a gigantic amount of gasoline our natural gas. To mexico that would take the natural gas which is far bigger than anybody realizes all of these things were very geopolitical. When you talk about trade with mexico people tend to forget but that becomes a very important part of it. Mexico thats because they have not been able to put money in their own drilling offshore which if they did they wouldnt need us at all this Natural Gas Market is something that i talk about endlessly. Why . Its big, its liquid and it will be a major factor globally by 2018. The next project obviously is 20182019. 6 moss away. Its all happening. When i talked to him this morning very proud of what im very proud of what he has done theres going to be one more and we do have so much lng today so lets put what trump said in perspective but lets recognize that this is a major, major export opportunity for the u. S. And i wish there was more places for us to put it he had an api data number last night. Were going to get numbers today that give Us Inventories the key number snou not the w is not the inventory number. Thats what we need to see to see whether our producers cannot make enough money. Hence the downgrade today for exxon and chevron out of rbc. Brutal saying wooechb the diverse identified models they cant do enough. A lot of people look at volvo and texas is the one they could highlight. Unless we get ahead of ourselves were a fossil fuel burning world. Lets get over that. Speaking of that news, were on track for their worst week of the year this is down 18 from a week ago monday well watch that we got a downgrade at ge, costco, apple news, a lot more squawk on the street continues in men aomt. The power of innovative thinking. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. President trump will give a major speech and talks will focus on developing ties in industry and infrastructure. Shares of tesla on track for the worst week in ten months the model s failed to achieve a top score in one of the crash tests run by the Insurance Institute for Highway Safety it only received an acceptable rating however tesla is saying the most objective tests are done by the government which found they carry an extremely low rate of the injury the other part is the journal takes a look at what volvo might mean for teslas future. Arguing that if others get into the space like that teslas lead might not be as large as some think. This has been against tesla in the last 48 hours and have to tell you that there are many analysts if you even read what the bulls have been saying they have been saying okay, look, the stock is going higher but maybe the fundamentals didnt dictate it and then the bears are saying the fundamentals dont dictate any rally at all this is the exposure of what i always felt was a cold stock but remember what jim stewart, my favorite writer said on this show which is the shareholders of tesla and drivers of tesla like tesla and the street has been unable to shake that. Unable to shake that love and that the model 3 will come out and happen once again. We got a nice email from tesla talking about the show case of it its so inexpensive. I do believe thats frozen a lot of the buying. When i look at this, i goes goodbyes back to 2,000. A lot of Companies Like tesla didnt produce didnt produce numbers but the difference is theres a product. Theres a product that you can get in and drive and enjoy as you say we made this comparison before he gets as much leniency as besos has from his with this expectation that it will come if you believe. Its a tech company not a car company. It has come although people are still arguing about amazon as well you got thats kind of the play book right here, isnt it theres no way to justify 53 billion market value on the number of automobiles theyre going to produce next year or the year after. Only if its a tech company thats the only justification. If its a tech company that happens to also sell cars i can understand the cut. Yeah, you have been, i would argue agnostic and removed but 309 a friend writes would he equal a bear market from the high would you get more aggressive then in your stance . I just think that hes a great showman for technology bang, bang, bang, boom, boom, boom we move on to costco. June comps were up 6 some wondered that this morkt the stock in the premarket wasnt reacting more. I was going over with some very good retail analysts about what the real issuers retail but the issue is wait a second its 25 times earnings amazon represented a compression of the price to earnings multiple so the reason why costco cant fly is people think wait a second, the group and we look at oreilly yesterday is every single retailer is having price attorneyings for home gamers its hard to understand people dont want to pay up even for the best costco is the best i think longer term costco does fine remember how we talk about tesla as a tech company. Costco is a club and they pay your dues and give you good prices on everything and if you look at where you can charge me more, you can charge me for for costco club and amazon prime and more for netflix and thats why i like those three did you see theyre working on a wine called next. I bought that which i just use for cooking. Can i just make a point that this is a good example im in italy and its the house wine for tuscany who owns it . Do you think the italians own it Constellation Brands best wine in tuscany when we come back well get kramers mad dash and countdown to the opening bell. Futures remain in the red. Dont go away. Lets get to a mad dash well talk a little ge dow component has not been able to maintain any sort of momentum in terms of its price. No. I talk about my Charitable Trust winners. This is a Charitable Trust loser. Heres what jp morgan. Broken below 27. Theyre saying 27 price target goes to 22. Thats pretty aggressive they talk about being worth only 20. They expect a major restructuring. I regard that as positive and then they say no quick and easy fix for the new ceo. This was a piece and undercurrent of all of this is that the company is broken and cant really be fixed. I question that. I think theres assets here. I think theres possibilities here but do understand that people have to recognize that the numbers are probably going to have to take a hit down i still regard a triumph position on the board, if that occurs to be a nice catalyst. Well, you would have to believe as this price continues to move down that they are getting more focus despite the change in leadership thats taking place in the company it does not mean that they necessarily would back off. No and i think theres no reason you have to keep pressure on a new ceo. Their focus has been on cost. Delivering on the promises already made by ge management. Thank you because i think they can deliver a 2 billion cut and if thats the case then jp morgan may have to eat its words but down first and then up and the guy has been dead right so i question the current ceo exactly on what jp morgan has been saying he said i was captive to the bears. I have to tell you, captive to those that are right. Well be watching ge shares breaking below 27. Convenient that in a little bit of time. Down over 15 as you see this year we have a lot more stocks vimong up well be getting to those as well when we get to the opening bell guys, five month high. Italy ten year one month high. Japan ten year five month high our own 237 is the highest since may 11th how hard does this go. To me whats going on in europe we have things not being put together we have the final bailout of the major bank in italy. That was 6 billion. We had the recapitalization early. We had the recapitalization and theyre ready to lent. They finally did what we did multiple years ago and therefore the money will flow the cash economies in these countries will change can. And its dramatically undervalued and youll continue. I think the bond yields are insane anyone that owns them nuts just nuts but i know theres a lot of, you just have charters those firms will be crushed in terms of what generates income for their shareholders and the pensions. German ten year, wow. Yeah. Twice the level two weeks ago. Thats hurting a lot of people by the way. Including and some of the stocks in europe have been reacting to that as well theres a big move in commerce bank. I watch the banks. I watch recapitalization im quite impressed. Its the administration for Childrens Services at new yorkers for children its encore wire maker of electrical building wire sell brath its 25th listing anniversary. Take part in whatever happened yesterday this is becoming monotonous. These are all part in parcel with a market that doesnt know what to do with itself people said it was good so kfc is good. If thats what were going to trade on that speech in poland. And l brands, were short things to trade on. Its still working day it should be so people dont have to go back and forth and lose a lot of money. You mention ge. Brings the year today loss at 15 . Not quite as bad as verizon. No, its really just, these are good yield and jp morgan piece did not call into question the yield. But, you know, in davids world we have deals and the deals continue when theyre positive again im trying to fight the trend of sell today by tomorrow. I dont want to say you shouldnt take a period seriously. Thats really big news from last night. Thats very bad for retail its the key to this market. That has just been dreadful. Where is this thing 5. 25 yield. Cash flow is great there nobody claiming that the dividend is in any danger. Its not the question for verizon is what will it do through talking about acquisitions theres a general feeling that the company will need to do something to enhance its top line instead of waiting for g6 which at some point will be a meaningful contribution and he believes that will be the case buts hard to ghetto cussed on something thats still quite a few years out potentially and we hear ludicrous things that are not going to happen. There are a group of things that might be more likely when it comes to what they may or may not do in terms of trying to fight what is a Competitive Landscape in their core business. The acquisition of yahoo and aol. Theyre putting it together. Its right. Its not as though, its not in anyway equal to at ts decisions to diversify by buying directv and then of course by buying time warner which is a deal far, far, far in excess. I always felt verizon was a good core holding. Thats a widely owned stock a lot of people own it for the yield. People own it and when you meet people, theres good people own tesla and good people own verizon and a lot of stock but they dont get talked about much like jp morgan that i think has been an excellent stock but what happened this morning . Goldman sachs comes out and says hey were at our price target. Theres not a lot more upside. I thought that that piece was indicative of wha think youre going to start hearing which is some of the banks are fully valued if you tell me that jp morgan is fully valued at 14 times earnings ill tell you youre far too negative. Implicit in that is the tax reform goes nowhere right . Exactly right an undercurrent is that youre not going to get any help from anybody else and jp morgan has done selfhelp the reevaluation is begin with the fed raising rates. The market value is 332 billion. Far in excess of wells fargo in a 280 million market value. We do have a lot of cash. We saw they were interested in buying