Officials are saying it will not be as damaging as back in 2010. The fire is located just 150 miles from that bp oil spill where that happened. Connell the rig operator is hercules offshore. The stock price today is down by a little more than 4 . Dagen phil flynn is in the pits of the cmb with more on this. It has backed off. As far as the Market Impact of this particular blowout right now, it is not that much. This particular well was not in production. We had this rig getting ready to prepare for more production down the road. They already knew that they had a problem with this well. It was trying to fix the problems that they already had with this well. The impact is about tighter regulation in the gulf of mexico. Regulations became a lot more stringent. There is a concern that a mishap like this could make it even more difficult to bring production online in the future. This is a Shallow Water rig. They have a lot of experience with tapping these kinds of rigs in Shallow Water. It will not be anything like the challenging situation they had where you are drilling close to a mile underwater. Again, you have to worry about the regulation side. This is not bp all over again. This is going back in time back to april 2010. It is dramatic photos that you see. Maybe in washington they start looking at this. We have trouble on our hands from the companys point of view. Absolutely. There is a bigger microscope on all of these Drilling Companies after the deepwater horizon. They look at all the checks that bp had to write for the damage. To see if there was anything wrong, more than like lee, it seems like the company did everything right. They knew there was a problem. They call them people to help. They evacuated everybody. They did everything right, in this particular situation. Before the fire started, they had people on the scene that were going to try to go in and fix the problem, but they deemed it too dangerous. It may be easier to deal with now because you do not have the threat of explosion. Right now, the coast guard, other people are on the scene. I do not think you will see a repeat with what you saw with deepwater horizon. This happened at a time where we had another gulf of mexico platform shutdown. It got shut down yesterday. Interestingly enough, it was not because of what was happening out on the street, it was what was happening on land. They could have to deal with a possible Tropical Storm that could be headed in that direction. It is too early to tell. Dagen phil, thank you so much for that terrific analysis. Phil flynn at this cmb. Connell shifting gears now. Nicole petallides on the floor of the New York Stock Exchange. Nicole there is a lot to watch here today. We have a mixed market on wall street. The dow and the s p are pulling back to a certain extent. The tech heavy nasdaq within of arrow today. The nasdaq is up one third of 1 . We are in the thick of earnings season. We are seeing lots of names on the move. We are also watching boeing. Ford also a winner. We have had deals that we have been watching from Maidenform Brands and also michael dells team beefing up their offer over at dell. Those are names that we are watching very closely. Oil and gold are pulling back. Dagen we will talk about ford and general motors. Connell president obama addressing the economy. The first of speeches he gives this afternoon. Dagen it is always how you spend it. Rich edson kendig through all the verbiage and tell you what is really at play here. Rich one of the preview messages that the white house gave, the president will talk about an economy where everyone has a shot and opportunity. Not when our economy is winner take all. The administration not really previewing anything new. We spoke to a senior advisor, she says, when it comes to an action in washington, basically printed on congress. These are critical for business. They are ones that the Republican Party has traditionally supported. When will they get back to what they have traditionally done . That is simply just say no. Rich republicans in congress have been previewing his speech, as well. Instead they say the president is just bashing congress. Instead of taking responsibility for his failure to lead, he will probably try to cast some struggle between those that believe in investing in the country and those that want to eliminate paper roads or stop signs or whatever ridiculous strong hand he invent this time. Dagen thank you so much for that. Rich edson down in washington. Take a look at this. President obamas Approval Rating dropping to just 45 . Ron christie is a former assistant to george w. Bush joining us from george w. Bush. No harm, no foul. I think that is right. The American People expect their president to lead. This president has spent his entire term in office blaming people. The American People have put in a representative to be responsive to them. Dagen what is happening now . His centerpiece legislation is coming apart at the seams. It is not working right now, particularly with the oneyear delay. Can the president do anything . I also point out again, cutting fulltime workers or reducing peoples hours below 30 hours so they do not have to worry about the mandate. This is a travesty. We need to pass the bill. We see it is crippling businesses. Parttime work seems to be the norm. We have fewer people working today than when the president came in office. I think it is frankly disruptive to our economy rather than getting it back on track. I think republicans should have had the opportunity to work closely with them. We should have found a way to pull together Small Businesses. Having a onesizefitsall solution, i think that is a mistake. We are seeing that by the way businesses react, as well as consumers. Dagen stay tuned for lou dobbs poll coverage. That is coming up halfway through the next hour. Connell we have the dell meeting in taxes on hold again. The last and final offer to take the company private. Dagen why it all comes down to sales of the iphone. Connell they could be the lone bright spot. The automakers. They are bringing their bottom line on profits. We will dig through those numbers. We talked about it earlier with the red fire in the gulf. The most Free Research reports, customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Dagen eight quarter past the hour. Looking at caterpillar. Nicole we have the dow down 38 points. It is down about 2 at the moment. Its profits shrank 43 . Not good news there. Revenues were sliding. Their margins have contracted. Ultimately, going forward, are things looking better . No, they are not. Dagen thank you, nicole. Connell lets get to dell now. Silver Lake Partners revise their bid for the company. About 150 million. What they are saying is this is a traditional amendment to their offer. The special committee that is reviewing the buyout plan a proof a change in the voting rules. Essentially, right now the unaffiliated shareholders are counted as no votes. They say that the presumption that the shares should be treated as if they voted against the transaction is unfair. They will only raise the bid if the special Committee Votes to change the rules. We believe that 13. 75 a share is a full and fair price. They are willing to change the guidelines if it is 14 per share. They have not confirmed that with fox business network. We have been reaching out to michael dell. The next step in all of this, if the special Committee Says yes, is friday, august 2. Connell thank you, adam. Dagen more iphones sold than people expected. Now what . Connell Lance Armstrong, he is making the argument that the post office should have known about his drug use. He wants to keep the sponsorship money. Here are currencies today. Back with more on markets now in just a moment. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. 22 minutes past the hour. In moscow, the lawyer for Edward Snowden says his request for temporary asylum in russia is still undecided. He has been in the transit zone for more than a month. White house says it is seeking clarification from russian authorities about his status. After another scandal, pressure is mounting on Anthony Wiener to drop out of the case. He admitted doing it again and apologized again. This time with his wife by his side. Queen elizabeth went to Kensington Palace this morning and met her new greatgrandson. George is the favorite followed by james. Those are your news headlines. Back to connell. Connell thank you very much. Here is apple. We will spend the next few minutes talking about it. The stock, as yoo see, just about 6 higher today. We are talking about the markets. Good to see you, ryan. It is kind of different the way we look at the stock as a company. The last four quarters, the stock was down the day after earnings. I do not know if this is a bounce back, but how do you look at these numbers . A big number coming out. You scroll down to the bottom, you see their prices are down in every product statement. Connell it was a big calling card for apple for years. So much so that there are big rumors that they will start selling a cheaper iphone. We would have never had that conversation a few years ago. I almost say, who cares. They need a transformative product. Things that look similar to the older ones, but thinner and a brighter screen. That will not cut it. Connell we are waiting for an iphone. We are waiting for an ipad. The iphone established a new market. I do not think you will get the guidance. 106 billion in cash overseas. Connell do you like other ones in that group . I would be more inclined to google. Connell where are you on things for the next few months . You are not getting any negative significant development. The fed statement toward the end of this month, ultimately, what will come out negative in the market. Connell thank you for coming on today. Appreciate it. Dagen detroit is flat on its back, but not the automakers. Some good news ahead. Quite the opposite for as a seed capital and the founder steve cohen. Charlie gasparino has the story. Lets make a winner sandwich. Winners on the s p. [ male announcer ] the mercedesbenz summer event is here. Now get the mercedesbenz youve always dreamed of. But hurry. Because a good thing like this wont last forever. Here you go, honey. Thank you. [ male announcer ] see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. On the exhilarating c250 sport sedan. We replaced people with a machine. R, what . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. And so too is the summer event. Now get an incredible offer on the powerful c250 sport sedan. But hurry before this opportunity. Disappears. The mercedesbenz summer event ends july 31st. Dagen bottom of the hour. Heres what is coming up on markets now. Detroit is bankrupt. How these automakers can or cant help. And the feds case against sac capital and why Charlie Gasparino says the firm is built around saving the man at the top of the heap, steve cohen. Pull the popcorn in china. Hollywood films not making it into chinese theaters and the list is growing. Connell lets go back to nicole now. Were going to talk bea sports and electronic arts. You thought, big news, nicole, there would be no college games, ncaa, no deal. Boy that would hurt the company but not today, right . That is very big news. That is not great news for electronic arts. Today theyre focusing on quarterly numbers and says that they have had. The stock is up 12 and a quarter percent. 26. 74 at the moment. The loss was narrower than expected. Theyre in the middle of a transition away from games you buy at Retail Stores which is gamestop and the like and moving to downloads. That is really where theyre making a lot of money, online, offerings, digital sales. That is accounting for more than 76 of First Quarter revenue according to the chief Financial Officer. They have a battlefield and fifa just to name a few. A stellar performer for this videogame company. Back to you. Connell thanks very much, nicole. Union stopping the detroit bankruptcy filing, suffered a major set back. The Michigan Court of appeals put on hold the challenge to detroits bankruptcy. Clearing the way for the federal bankruptcy judge to review the case in court. Connell to talk more about this, Elizabeth Macdonald is covering. This see. Macks bottom line. Good to see you guys. Steven rhodes were looking to see a ruling whether u. S. Federal Bankruptcy Law preempts, basically overrules state law in michigan that says pensions and Retiree Health benefits can not be cut. The thinking is u. S. Federal law may preempt state constitutional law. That is what the judge will decide on today. We have 18 billion in debt detroit owes. Nearly 10 billion of that is for retiree pension and health benefits. Whether or not they can be done is at issue today. There is other news. Kevyn orr, he will argue in court, basically overseeing the bankruptcy for detroit, he will say that the city used dubious accounting to basically understate the amount owed. That will be part of his argument today. More breaking news coming out of whats happening in detroit. Gerald rosen is expected to be named the mediator between the unions and the city. He is a chief district judge for the Eastern District of michigan. He has been active in gop politics. He is known for basically taking a stand that is unpopular so long as it comports with the law. He reportedly ran against democrat sander levin in 192 but lost. Well see if gerald rosen is the mediator appointed to duke it out or rather, help oversee the mediation between the city and the unions. I will give it back to you guys. Dagen thank you very much, liz. Good to see you as always, Elizabeth Macdonald in the newsroom. Detroit is not getting in the way of booming business for automakers. Ford reported betterthanexpected earnings. Its Second Quarter profits climbing in thanks to major part to strong truck sales and higher Vehicle Prices. We have the editor of cars report. Com with more. Again, its the truck business but does that help devote at all to ford based in detroit . That is one of the big problems. The Auto Industry is booming but the Auto Industry is not in detroit. Ford is in dearborn, chrysler in auburn hills. General motors has headquarters but dont make a lot of cars in detroit. A lot of build something going on in michigan and other states of course. Dagen look at the average Vehicle Price nationwide for a new vehicle is above 31,000. The big truck sales for a truck, i think the average price is well north of 40,000. But are they going to repeat the same mistake they made back in the day when they were completely relying in the 90s on these big vehicles and the market dried up for them and boom, they all fell flat on their face. Ford didnt go bankrupt. I see estimates that ford makes 90 of profits off truck sales. That is not much you can do. When youre selling calendar year, so far, 360,000 vehicles alone you will get profits from them. Theyre not relying on it though. Their fundamentals are strong. Competitive cars in the midsized segment with fusion, focus and compact segment. You have ford escape doing very well. Theyre not relying on truck as much anymore but when theyre selling well you cant help but make profits. The story is the same for general motors. You have the new silverado coming out. Truck sales are great for them. But the smaller cars, that is a huge bright spot for the American Manufacturing sector. These cars are terrific inside and out. Yeah. Through june, truck sales in general for the big three up 22, 23, 24 . Sales of the company broadly i think ford is up 13 and chrysler and gm are up 8 each. Obviously trucks are driving this. They have more competitive cars. Theyre slipping into the top 20 of sales and matching up a little bitter against foreign competition. There is more after focus getting those cars right. You cant just rely on somebody buying a pickup truck and picking up a midsize car in the dealership. That is happening because the cars are good. Dagen housing, how critical is housing to the pickup sales . That is exactly where its at. That is the sort of business that is driving this. Not all consumer purchases. A lot is business sales. That is good for the industry, chrysler as well and ford will have a new one next year. They will keep the momentum going. They will probably introduce the new f150 at the Detroit Auto Show in january. Dagen we cant wait for that, right . F250. More important, new ford mustang will be showing up sometime soon. Dagen Interest Rates a