2014, and "squawk box" begins right now. i'm andrew ross sorkin along with joe kernen. becky is off this week. we talked about beach goers on both coasts, storms kicking up massive waves at 900 miles off the coast of baha, california. it has spectators and surfers flocking to the beach to see some of the biggest waves to hit the area in 25 years. we're going to have more on the storms coming up later this half an hour. let's talk about the banks and the fbi investigate. the fbi and secret service are investigating reports that cyber

attacks on u.s. banks have been struck in a series of coordinated attack these mop details at the moment, unclear. but the attackers are believed to have stolen large quantities of data, including information on checking and savings accounts. they're looking into the possibility that russian hackers are behind those attacks. there were other reports that suggested they had gotten employee information, joe. one of the things i wonder more than anything else about this, beyond my own security, i'm a customer, by the way, of chats. i don't know what banks you frequent, but these are reports coming from sources that are close to this investigation, whether they be government sources or bank sources. the banks themselves have not publicly disclosed this. and the question i always wonder is we talked about this on the air before. when if you are a company are you supposed to disclose that there has been a hacking attack? clearly this has happened at least over the past several weeks and we heard nothing from the banks.

>> that distracted me when i was trying to read the bank story this morning. >> the bank story is on the right, there's the lead story. >> i guess that's life in gaza on the border there. yeah, so it's worth talking about, for sure, because of -- >> well, you have the russian issue. >> what do they do it for? what's finally happening? will you ever check your account and go, wow, i have no money? will that ever -- >> that's what i worry about. >> you don't worry about that? >> no, not really. the more i read about it, i guess i should. but i figure someone would owe

me, wouldn't they? i can talk to -- i wasn't going to say who i was, but i'm a brian moynihan and i see your heat. >> i know of him. didn't you get a christmas card and all that? >> i did not get that. >> well, i'll tell you what, we'll talk about it more, but it's a significant breach. where is the beach? ain't nothing happening. >> all of these attacks, in the medium term, there's no impact. >> the user name and password -- >> you know, my worry is that each time, somehow -- i don't know if you're the same way. i have one or two or three

passwords at the most. so if you figure out one or two or them, you can kind of own me pretty quickly. and so to the extent that they're able to get pieces like that, and it's unclear from these media reports about what they have. >> i have dozens. in fact, that little thing we use for remote access that changes every minute, my password -- i've got that hooked up to that. so i have to look at that to get into my -- so don't even attempt to try to do anything to my account. >> thoses of passwords. >> joekernen1 is not your password. >> no. >> do you think they could find out my birthday? >> yes, they could. >> so i should change that at this point, right? i didn't think anyone could ever -- no? microsoft ceo nadella is reportedly planning a visit to

china next month. the chinese government recently opened an anti-trust investigation into microsoft focusing on the -- of microsoft's webb browser and media player. they don't like fumbling. microsoft is widely pirated in china. former ceo steve ballmer said microsoft got more revenue in the netherlands than china because of the theft. in other tech news, ibm is launching a system that could quickly identify patterns in data that can -- >> i'm sorry, dave, i'm afraid i can't do that. >> lead to breakthroughs in science and medical research. the service would be available, naturally, through the cloud.

private compieand trial outcomes published in different journals all at once. you can sort of colate that information and help speed up drug phase. andy is verery resistant to the idea of the singulairty. but all i can tell you is that when machines start being able to teach machines and start being able to design -- they already are computer aided design, computer aided manufacturing has been going on for years. but when the total sum knowledge of machine knowledge is something where you need sciescientific notation to desc how much more than humans, all human knowledge that they know, things like this would become more and more common. the other thing that's here, and

i've seen recent articles that machines might decide, a, that we're not very good to work with, that we get in the way at times and we slow down progress. they might decide that they like it better. they might like us, they might think that we're ben negative lent, but they're going to be smarter than us and look at us and talk amongst themselves saying these humans are -- you need to feed them. you need to take them out to go to the bathroom. it's not a hundred years off. you can -- do you understand math? if you look at -- you can draw a straight line through all that's things and you can see each thing happening. and it's -- the amount of time between these huge -- why would it take longer with the speed you're seeing? you can do it on this, look at the giga byte on a daily basis, just plot it out. you'll see by 2035, we're going to be vastly different. yesterday we talked about all the children, all of our children walking around in a line, looking at their smartphone.

there was nothing like that 25 years ago, nothing. >> let me tell you a little bit about -- >> how long did you used to stare at your pager? >> i never had a pager. >> no one did. you couldn't stare at it now. you probably run into people when you walk in new york city, don't you? >> totally. forget about texting and driving, texting and walking. what's related, though, to some degree, apple once again failing in its attempt to get a samsung smartphone ban opinion earlier this year, apple won a $120 million jury verdict against its rival in three patents. a u.s. district judge yesterday rejected apple's request to stop samsung from selling infringing features on its devices related to those. do you see the word? >> what? >> patents. >> i was trying to see if i -- if i put an apost fee in, what if it was like that? how would you say --

patents? >> that's better. >> it will be a tool. >> it's hooked on phonics right here on "squawk box." samsung unveiling a smart watch that can make phone calls without a mobile phone nearby. it's hoping illustrate can off set slower earnings. it's called the gears. it has a bigger 2 inch curve display, offers wi-fi, connectivity, pedestrian navigation. can you believe it? perfect navigation. and a build in gps. apple is expected to launch a similar watch. lg electronics, also. >> the last one that we had here with great fanfare, you needed your phone right there. >> next to you. >> right. to do that. this one, apparently people said, well, what good is that? then they said they've been

working on getting just a watch to do it. >> i don't get it. >> is that the bottom -- oh, no, that's how big it is. >> it's a big, big thing. >> this is like the jerry seinfeld phone. he's walking up and -- >> he looks ridiculous. >> or gordon gecko walking along the beach. >> '80s style. >> why wait? it won't take long. we were just talking about coming in quicker. wait, don't buy that. stocks say off breather, but not much of one. one day after the s&p's historic finish, jim dunnigan of pic wealth management and john wilson. principal of rev ly letter.com and you, of course, probably remember him. he's famous, former director of equity strategy and chief technical strategist at morgan keegan. you've been coming on for 20 years probably, right, john?

>> it's ban while. >> so i just sold your experience in all these matters. does this stock market look different than anything you've seen before? >> it does if you go back in history. if you go back and look at what happened, you had a massive pendulum swing back. you know, there wasn't an outlier in there. it happened twice in the 19th century and it happened twice in the 20th century, 1920 and 1974. we both know what happened subsequent to those lows. certainly in 1974, we went on to have a bull market. it didn't end until 2000. if you just kind of lay out those parameters, the high returns, we're close to 16. the low returns over that ten-year period whether those

things happened were around 12 1/2. the markets have pretty well traced out over the last five years. little have maybe of where it should be. but that's easily cured by a correction of some sideways action. >> there's no reason not to be bullish. >> as simple as when you basically get a whole generation of investors so pet phied of ever going to the stock market again, it takes that long to get them back in. >> there's no question. we had two bear markets in the first decade of the century that were just hideous. and, you know, about the time somebody could take a deep breath, lucy pulled the football right out again and, you know, carly fell on his back. so it takes a while to get over that and it's kind of like the baby duck syndrome. it's new every morning, you wake up and you're affected by what happened to you most recently. >> yeah. >> and what happened most recently was, you know, gloom, doom and despair in the market in the first decade. >> jim, sometimes it gets

frustrating to not just be able to talk about corporate earnings and gdp and then just immediately know what the stock markets do. but a lot of times, it's as simple as this. it's human nature and if you look at the attitude or the sentiment of people in the market right now, everybody that talks to me asks me, you know, when is this going down? this can't continue, it's too high. it just sort of is a reflection of the experience that they've had that june was just talking about. is it that simple that as long as people don't embrace the market, it's going higher? >> i think it is, joe. i think the scars from the turm moit moil we saw in the financial crisis run deep. behavior financial would say you look to those. so i think there is a certain amount of nervousness here. everybody is sort of watching the exit making sure they're not the last one out the door. so i think in this environment, equities can go higher. and the trend seems to be positive as you look at the

economic backdrop supporting that. >> jim, what will the best early sign be of a total complacency by everyone that, wow, i finally believe in this? or will it be something that -- you know, some geopolitical event? what is it that -- i'd like -- everybody would like to get out, have one foot out the door. and the problem is, everyone does it at the same time and everybody gets -- you know, by the time it opens, you're getting out 30% lower. what would it be, do you think? >> well, i think certainly, you know, that there were only one headline away from anything around the geopolitical tensions that are out there that would cause some turmoil in the markets on the short-term. but we haven't seen the euphoria that typically marks the top of a bull market. so i think we have a ways to go. valuations are reasonable here. i think we can get a stretch out of p/e ratio necessary this environment on continuing improving corporate earnings. so i think at this point, i'd watch euphoria. i'd see that sort of -- that

real extreme bullishness in the marketplace and a market that's much higher levels than we have where we see -- >> john, with your experience, is there one thing that -- in my experience, and i'm obviously not you, but it's always been easier to call bottoms than tying -- i never know when we're at a top. i've never been able to have a decent feel for that. is there one thing that works best, john? >> no. and you make a very good point. it is easier to call bottoms. indicators work much better at bottoms, i think, than are virtually useless at tops. but the fact is, most investors aren't well served trying to time corrections. if you look at how stocks have done historically, we clearly have an upward bias. you know, when we have a 100 or 200 point down day and i see a parade across your screen of, you know, sue sayers and strategists trying to make the big call, i just don't think it serves investors very well.

and i wonder sometimes if there are any real long-term investors left. i certainly hope there are and i think this is a great time to be taking that approach. >> that's a good point. you can make a name for yourself. and don't pay that much attention until after the fact, so people that are bearish, i've seen guys try to call a crash or a pullback. i've seen them try to do it like ten times. and we forget that they did the first nine times. they finally get something close to a correct. >> the lead in, joe, on your website this morning is, you know, two experts call for 60% correction. >> i know. i saw. >> you need to put it back out. both of them have done that before. so, you know, change that to, you know, two experts call for, you know, onward and upward. >> oh, yeah, great, john. so the house is not burning we're going to lead with. no, no, we're a new service. we can't lead with a slow steady drift higher. >> you can't lead with stay the

course? >> the judge picked up on that, too. they love stuff like that. >> 60%. i know. i saw it. >> gentlemen, thank you. it's all about psychology more than any of this other stuff. that's what you finally learned. the market tries to go higher. >> let's get to the next story. a little bit of international news, which could impact the market. russia has now reportly opened up a third front in ukraine and what western military officials are calling a stealth invasion. avena kojova joins us from moscow with more. good morning to you. >> good morning. so we have ukrainian president pet ra poroshenko has called a russian invasion of ukraine this morning. that's at the same time as kiev authorities are calling for europe to have an emergency u.n. meeting. at the same time, the osb are having an emergency meeting in switzerland this morning. and just to explain, we are talking about a new front that's opened up in eastern ukraine.

previously, the fighting between pro russian rebels and ukrainian forces have been in the city of downtsk, a city of about a million people, and a city of mugansk. about 400,000 people were living there before the fighting started. now, the last couple of days reached a movement across from the russian border of what ukraine and journalists on the ground are saying are heavy russian weaponry. they're not the same kind of rebels that we've been seeing in donetsk. today, interestingly, one of the rebel leaders has said that they're up to 4000 russian volunteers fighting in east ukraine. at the same time, there is russian military presence. so we taught no conirmatifirmat yet, but it is a crisis. >> one more question for you.

what is going on here? these russian courts apparently upholing -- there were three mcdonald's proposed in moscow and the courts are saying that's okay. what happened here? >> this is not the only incident. in fact, there are a number of mcdonald's across the country that have suddenly been checked for sanitary conditions and they're being suspended for a 90-day period. critics say that this has to do with the atmosphere against the west in general. russia has sanctions in russian eu, and this is part of a trend here. and the russian population, if you believe the polls, are not that worried. in fact, many favor russia's opportunities to harvest and people here think bad things

will be all right. >> the other news in the morning here in the u.s. is the story and the alleged that there were russian bank hackers involved. what is the relationship at this point like between the russian government and the u.s. government when it comes to hacking and trying to stamp some of this out? >> unfortunately, these days, the relationships between russia and the u.s. is not as low since the cold war. so i am really not sure what kind of cooperation at the moment there may be. officials say in washington that cooperation are russia is almost at a stand still, including top international issues such as terrorism. so we'll have to wait and see what the cooperation could be like in this situation. back to you. >> thank you for that report. we appreciate it very much. coming up when we return, a record number of chinese trying to get out of the country. they're willing to pay top dollars as it gets to the united

states. and the surfers are enjoying the waves in california and the speculators are coming out to see. it gets more dangerous heading into labor day weekend. we'll talk about it in just a moment. ♪ [ male announcer ] during the cadillac summer's best event, lease this 2014 ats for around $299 a month. hurry in -- this exceptional offer ends soon. ♪ hurry in -- this exceptional offer ends soon. you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights.

data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm.

both coasts dealing with

rough waves from both marie and cristobal. in california, big surf pounding catalina causing major damage to a boat yard. boats scattered. also last night, a structure slid down a hill. it partially entered the water. let's get the forecast for this and other things. it's a big labor day weekend coming up, too, alex. i know the other stuff is -- certainly the pictures are more interesting. if you can, will you just touch on what we're looking at for the east coast here. >> basically, the east coast, that rip current risk is going to be main pretty high just about from florida all the way into new england. so still want to be careful getting into the waters even as we head into the labor day weekend. same across southern california, through the weekend, conditions will be improving but we have to be careful getting out of the waters. meanwhile, we've got the threat for storms in the middle of the country. some of those could be strong to severe. a couple of areas we're watching

from iowa into missouri, just north of kansas city, and another area here down through the central and southern plains that we'll watch for damaging winds and hail. that could away threat out there for us, as well. as we head into the weekend, quite a bit of moisture working northward. low pressure developing and hanging out and keeping that for storms across the midwest over the next few days. you're always seeing quite a bit of heavy rain in some of these areas. already over the past several days, some of the yaerts areas, 35 to 8 inches of rain from parts of illinois into indiana. over the next few, the heaviest rains will be farther west here across des moines. that's where we think we'll see the heaviest 3 to 5 inches of rain. that's coming in just over a couple of days. so very short order and that could lead to flooding problems. while we've got all this wet weather in the middle of the country, some nice weather to enjoy here in the northeast. 83 today. some 70s, as well, tomorrow should be looking at full sunshine as we get into our friday. and then on saturday, for you here across new england, look at

that in boston, 78 degrees. new york city, also enjoying those upper 70s. so not too bad. guys, we'll send it back to you. >> hopefully the weekend pans out. >> is it too far to look out to sunday and monday, alex? you don't have a high degree of confidence? tell us about labor day. are you going to be able to cook outside? >> that mess in the middle of the country, that's going to be making its way east. >> no, no, no, we would prefer if that didn't happen, alex. >> you and me both. but yeah, it looks like it will be more unsettled sunday than monday. >> so if you just change your report to say it's not coming, that doesn't mean that it won't? so it's really not you? >> yeah. i have no control. >> all right. try it. i mean, it's -- you know, a lot of weather forecast. who knows, right? give us what we want to hear. >> i wish i could. >> all right. thank you. let's talk china for a bit. that would be nice. >> it better be nice here for this week, right?

>> plame him if it's not. >> the open, are you going to go? >> i'm not going this weekend. but you're going to go. >> i'm going to try to go next weekend. that's another sorkin, right? >> what's that? >> being recognized, tennis, there's celebrities everywhere. alex baldwin, they're all sitting around there, right, watching tennis? >> i think the open is one of the coolest things in the world. >> that's what i mean. i know you. >> but not for that reason. i actually watch the tennis and the people. i'm up in the bleachers. >> oh, man. i look for you every time. a record of number of chinese are looking to get into the united states and they are willing to pay big money to make i happen. eunice yoon joins us now. she has that story live from beijing this morning. eunice. >> hey, andrew. they're doing it through an investor immigrant visa program

called the eb5 program. basically, the way it works is if you're a foreign investor and you have about $500,000 or $1 million to put into some place, you can put it into a u.s. project and create or preserve ten american jobs. if you do that, you will have the right and the ability to get a green card or a permanent residency, possibly within one to two years. now, there are about 10,000 of these types of visas. and the interesting part is that already this week, the u.s. decided to stop taking applications from chinese because chinese people have already filled up 4/5 of the slots for this year. now, why is all this happening? well, one of the main trends that we are seeing here is that despite all the talk of growth here as well as economic opportunity for a lot of people, there's still people who have sizable wealth in the country who are starting to move that financial -- their financial assets overseas as well as themselves. now, one of the main reasons for

this is that they want to have an insurance policy. there are a lot of people here who feel uncomfortable or at least not confident in the rule of law. and they're concerned about the preservation of their wealth. also another important reason is a healthier lifestyle. there are a lot of people tired of the polluted skies. another important reason people are talking about here is the fact that they like the u.s. education system. they're trying to get their own children into american colleges. and finally, the one reason that i thought was pretty interesting talking to people was that despite all of the talk about the u.s.'s perceived problems, such as a deadlocked government or a talk about how it's struggling with its competitiveness, there are a lot of people here who still believe that the u.s. is a good place to invest. so at the very least, a safe place to invest. in the u.s., of course, there's a lot of discussion and debate about this particular program. there are people who say that it's a good thing because it attracts a lot of foreign capitals to the country. but on the other hand, there's people who said yeah, it allows

a lot of wealthy people to jump the line and they think that's not very fair. fair or not, there are a lot of chinese people who are eyeballing october 1st because october 1st is the day when the fiscal year resets and they will be able to start applying again for these visas. guys. >> thank you, yooun eunice. if you really understand what's going on in the united states and how these guys are trying to use this to get the visas, there's a larger story that's behind the scenes. anyway, eunice, thank you for that and we will see where that all goes. in the meantime, joe. >> coming up, get pumped up over gas taxes. and this has been an idea that from reasonable people, mike jackson, for example, should the states torts to get the revenue directly or should the cash flow keep coming to uncle sam? and what do we do with a gas tax? build roads with the money we raise? as we head to break, a look at yesterday's winners & losers.

♪ we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates

from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2.

at a special site for tv viewers; dovisit tripadvisor new york. with millions of reviews, tripadvisor makes any destination better.

good morning. welcome back to "squawk box" here on cnbc. i'm joe kernen along with andrew

ross sorkin. we have things to ourselves. >> we do. >> becky is off today. u.s. equity futures under pressure at this hour. down 735. it's been the first pullback early in the morning that we've seen in a couple of weeks since we had that week in late july where we had that 300 point sell-off on i believe the finding. it's been pretty good since then, back about 700 new highs, the s&p closing above 2000. today looks a little ragged. we can't really point a finger at anything specific. on august 28th, i don't think -- you know, unless, you know, someone is not cooperating geopolitically, and even those guys, putin knows -- >> i'm just wondering what happens when everybody gets back to work. >> it's always something. >> you know what? my performance is less than my peers, it need to find some of these stocks that are moving higher. we don't know whether people end up coming back and buying or is it saying, you know, maybe --

>> but i think it moves -- i don't want to say dramatically, but i think it moves one way or the other, more in a meaningful way. >> because normally it moves a lot of times because there is no liquidity. and then in the after, spreads are even greater. making headlines, business at nonbank mortgage lenders is doing really well. "the wall street journal" reports the specialized companies made a quarter of the loans in the first half. the mortgage business at many of the major banks has declined because of all these legal settlements and cash payments and tougher regulations. quicken loans is the largest lender outside of traditional banks. okay. we see an end to the federal government's control over taxes on gas? michigan's candidate is now proposing taking control of the gas tax away from uncle sam and griffith to individual states. but is that a good idea? joining us now to talk about it, john hofmeister, founder and ceo

of citizens for affordable energy. john, where do you come down on this idea? >> well, i think the federal government has basically absc d absconded on the whole issue of tax on fuel for the last, what, nearly 20 years? it was 1994 the last time that the clinton/gore administration tried to raise fuel taxes. they wanted 6 cents, they got 33. since then, no one has touched it, republicans or democrats. >> are you suggesting that we raise taxes? >> no, no, not at all. no, that's the last time it was touched. i'm in favor of reducing fuel prices because we've got to get a whole -- we've got to get a grip on how the fuel price affects the larger economy and particularly middle and lower income families in america. i've been on that crusade, really, since i departed shell nearly five, six years ago. >> jan, where do you come out on this idea, though, of taking what would have been federal money and giving it to the states? >> i'm all in favor of that. the federal government, really, has given up the business of

running highways. in 1956, when the -- when they start today whole process with the interstate highway, the highway trust fund, they were building for national security purposes an interstate highway system. since then, it's largely the states. let the states take it over. there's no reason for the federal government to be involved. it has multiple financing needs, whether it's issuing bonds, whether it's raising taxes, whether it's increasing user fees. let's keep it local because that's where people travel, they travel locally. >> the question then becomes does the rate stay the same, meaning right now we're talking about federal money and moving it to the states. once it gets into the state's hands, if you will, is that rate in each state change and then you are going to have people literally trying to arbitrage the different states, i'm in new york going across the bridge in new jersey, people doing that in terms of fuel prices itself, but adding on the tax issue, as

well? >> well, i think you have tax differentials between states. so california, illinois, had very high state taxes on fuel. other states have much lower taxes. and so i think you've already got that differentiation. and i think in terms of leading the federal tax as it is or eliminating it. eliminating it might be a good idea and let the states pick it up in terms of what do they need to run their state highway systems. >> john, you're a person that if someone were to try to dispassenger you and say oh, he's a fossil fuels guy, you will probably take that as a compliment. but in general, you don't think we need to get off all fossil fuels immediately. assuming that this natural gal gas boom is sustainable and that there's not some -- i don't know. i don't know what could cause us to get off this great track that we're on right now that is making this perhaps the leading energy supplier in the world, you know, some horrible fracking

accident, i don't know what it could be, but let's say it goes on as it's been happening. how can we convert the natural gas to -- so that that takes up more of what we use oil for? we can't do it for jets. should we do it for trucks? how do we take advantage of something you've probably watched for the last five years. you love what you're seeing, right? it's the greatest thing that's happened to the country. how do we make sure we don't squander this stunt? >> we're not going through a transformation, joe. we're going through a revolution in my opinion when it comes to the future of domestic energy production. it doesn't just influence fos l fossils, but it includes renewables, as well. let's come back to transportation fuels which touches everyone's pocketbook. we could get rid of 6 million barrels of oil by using natural gas. we could convert natural gas into five different fuels.

gas to liquids, liquified natural gas, compressed natural gas, but most importantly for the consumer, make ethanol and methanol out of natural gas and eliminate 5 million to 6 million barrels of oil by producing 30 billion cubic feet more a day of natural gas, getting us to about 100 billion cubic feet better day. that would further increase energy penetration, domestic, energy pen fraigz in the u.s. with canada and mexico, we would be north american independent, and if you start using natural gas as a transportation fuel, say 20%, 25% of our fuels, you'll drop the gasoline price to somewhere between $2 and $3. it would be a boom to the economy, jobs, the middle class, those who worry about the fume price. all its takes is a couple of changes in federal regulations. it takes no taxpayer money.

we have a movie coming out, it's called "pump" and it talks about competition for fuels between oil, natural gas, ethanol/methanol and how we can lower the fuel price while we clean up the environment because natural gas is so much cleaner than oil. it doesn't put the oil companies out of business. it doesn't attack fossil fuels. it really gives time for the electric solutions, batteries, hydrogen fuel cells to incident kramentally enter into the fuel process, as well, over the next 10, 20, 30, 40 years. >> so we don'tny to throw money -- the federal government doesn't need to throw money at this infrastructure if they just get out of the way, you think the private sector will build the infrastructure necessary to let this happen? >> absolutely. if you have a natural gas pipeline, let's say, coming into little rock, arkansas, and you have entrepreneurs in little rock, arkansas, bhok make methanol or ethanol from that

natural gas with a few hundred million dollar investment which is all it's going to take, knoll billions, hundreds of millions, not billions, you have a new entrepreneur who is on the scene making fuel for the domestic region around little rock. and that could be duplicated all over the country where new entrepreneurs come into it. >> why isn't it happening? does the federal government have to -- does something need to be done? >> yes. two things. one, the federal government, the e.p.a. has to make methanol a legal fuel. it's currently not a legal fuel. secondly -- >> you need to do -- you need the e.p.a. to do anything with fossil fuels, they're not going to do it. nicks that. >> there's some of us talking to the e.p.a. regularly about this that haven't given up. you can't give up. we have to keep pounding on the rock. we'll keep doing it. as long as we draw a breath -- >> what's the second thing?

we need more fossil fuels. get your ability to adjust your fueling system which will handle methanol or ethanol to much higher percentages if you change the software in the fuel system. >> i didn't know any of this. >> that's all it takes. >> what is it, john, a fifth of what it calls for wind or solar? >> yeah. >> a fifth as much for cpus. >> that's right. as well as a fifth of the gasoline price, too. >> i know you think you're -- you're still going to be riding in a car to cnbc. you're still going to need that, right? we have to do this. >> it can be the tester. >> okay. you see, john, this is what we're dealing with. thank you. >> you've got to charge it with something with -- this is true. >> airplanes. airplane fuel, they're never going to be wind operated or solar. what if there's clouds and you

were on an airplane that sold operative? it has to get up there. coming up, they've been gusting ghosts for 30 years. now they're back, sort of. that's next.

welcome back. today, august 28th is national ghost busters day. the holiday pegged with the new release of the film starring bill murray, dan aykroyd. ghost busters back on the big

screen for a limited engagement starting tomorrow on a u.s. classic. sygorney weaver. there was a rip off. i forget what they called it. was that in your neighborhood? did you see what when they flipped it? >> i don't think i was -- >> you remember it, though? you saw it? >> of course i did. >> okay. when we return, coming up, why students are showing up for college football games. plus, a guinness world record for the longest dirt to dirt mountain bike back flip. cam zync hit speeds up to 45 miles per hour launched off a 15-foot high kicker soared 100 feet in the air and landing on a 25 foot so-called run out. that is a very cool image. back in a moment [ dog barks ] ♪ [ male announcer ] imagine the cars we drive... being able to see so clearly...

to respond so intelligently and so quickly, they can help protect us from a world of unseen danger. it's the stuff of science fiction... minus the fiction. and it is mercedes-benz... today. see your authorized dealer for exceptional offers through mercedes-benz financial services.

college football kicking off another season this week. and a story in "the wall street journal" today notes that many student sections are likely to have empty seats now. average student attendance down more than 7% since 2009. among the reasons, soaring ticket prices, and fewer face-offs between old rivals, as everybody switches divisions. also, more televised games, and you know, sometimes i do, you

know, sort of think it -- when you think about what it takes to go to an event. >> yep. >> you think about your big screen tv with hd. >> it's a great thing. >> and golf especially. you don't watch golf but to try to get hole to hole or -- >> you're never going to see it as well as you do on tv. >> no. >> okay. this, as far as reality shows, there are certain days where there's nothing on with my kids where we'll put on the network that just carries cops one after another. >> the best and first real reality show on television. >> cops. and unfortunately, i've always wondered if they really got some bad actors, you know, that are intent on on resisting the police. what about the camera crews? and it finally did happen. a sound supervisor for "cops" killed while covering a shoot-out. this was in omaha. he was inside a wendy's restaurant, as three police officers opened fire on an armed robbery suspect.

it's really sad. he was wearing a vest, too, but it went -- that doesn't guarantee you can't get hurt. it went under the arm. a first time a crew member for "cops" had been killed in the 25-year history. and we send out our condolences. but, amazing that it's hasn't happened more than that. >> it is one of those -- i think it might have been the first reality tv show. i mean in terms of how we -- it's not the real housewives of jersey. >> and i'm trying to understand the appeal. it's not, most of the time it's nothing as serious as this. it's -- i don't know. just to see some of the -- you know -- >> the car chases. >> but it's the car chases at some of the places where they go where maybe, you've never, you know, down south or something in the rural areas, you know. you'd be like a fish out of water anyway. but you know just to see that. see what's going on. see that the -- >> let me tell you about another story. >> go ahead. >> you have a dog -- >> three dogs. >> you have multiple dogs. >> and they do get depressed.

>> and you have two children and there is a new study that says when your kids go back to school, the dogs, it's not just the kids that get depressed it's the dogs that get depressed. >> i have no doubt that that is the case. >> and they haul and they cry. have you seen this? >> separation anxiety. i've seen all kinds of interesting phenomenon. and also, since we have three dogs, two kids, and two adults, it's kind of a pack. and it's a pack mentality. there's alpha males, there's people -- you can watch all the dynamics that go on. and the dogs i don't think know that we're not dogs. and they do get sad when people leave. they don't like being left alone. there's a pecking order. >> when you go on vacation do they get sad? >> they do. they do. and our little maltepoo crumbles in the car on the way to -- it's okay. trembles. do they know we're coming back? we always wonder whether they know we're coming back. >> have they watched enough disney movies? >> we're not going to talk about

couples that smoke pot. >> and why they don't fight. >> and we get along. >> no we don't smoke pot. >> coming up --

oh my god! look. you need to see this. show 'em the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪

introducing the world's first curved ultra high definition television from samsung. that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business.

hack attack. the fbi and secret service investigating reports of a massive cyber attack on jpmorgan and other banks that could have been orchestrated by russian gangsters. latest on how data may have been exposed straight ahead. one of the most iconic cars in history, celebrating a milestone. the ford mustang turning 50. ford's chief of north america set to tell us where in the world the pony is set to ride.

plus, summer's last wild weekend. we're going to hop the squawk roller coaster of love with the ceo of amusement park operator cedar fair. buckle up, the second hour of "squawk box" begins right now. good morning and welcome to "squawk box" on cnbc, i'm joe kernen, along with andrew ross sorkin. we didn't get to finish our thought over there. maybe we just -- becky's off today, another interesting moment at the u.s. open, not an upset, but a tennis player who was follically challenged. and steve liesman interestingly has joined us on set today. danish tennis star caroline wozniacki, you know her from rory mcilroy, moving along in her match until her ponytail got

tangled up in her racket. she lost that point but managed anyway to advance by winning 6-3, 6-4. she told reporters when she tried to swing it almost took her head off. you could like wrench your neck that way. she also said that this has happened to her before. >> got to do something different, maybe a bob. >> who is watching again last night? sharapova lost her first set but then she is -- i think she won that. lost the first, won the second. and i think she won the third 6-0 or something. she turns it on, she can turn it on. that can't happen. or can it. is that what happened the first time? >> i believe i could grow a ponytail if i wanted to. >> i've seen guys like that. >> doesn't najarian have a -- >> yeah, yeah, yeah. both of them do, don't they? >> yeah. >> the guy who founded ebay -- >> you know there's two of them. >> there's two of them. >> okay. i've never seen them both in the same -- >> i was hoping you didn't think that that was just -- >> the same guy every time.

one of them is better than the other. i see the other and i think he's better looking than the other guy. it's a good problem to have, andrew. right? pretty nice to say >> i could grow a ponytail, too. we have important news this morning and i got more on this by the way talking to some sources during the 6:00 hour. the fbi now looking into reports of cyber attacks in major u.s. banks. officials would not name which banks were involved but reports say that jpmorgan chase was among the victims. according to the "new york times" jpmorgan and at least four other banks were the targets of coordinated attacks with large quantities of data stolen including checking and savings account information. now joe in the last hour i said to you is there a disclosure issue. these are reports coming from it looks like law enforcement for the most part. maybe some banks. but there has not been a public disclosure by any of the banks. and the reason that the banks felt that they did not have to disclose was exactly what you said. >> no fraud. >> which is no fraud yet.

and therefore, they did not see a problem. now, what i don't know is in the example of like target or some of these other situations, had there been fraud on those accounts and is that why they disclosed? at what point are you supposed to disclose? i mean this is sort of an interesting both a shareholder issue, a customer issue, and i think we're going to see how these things play out more and more. >> at this point didn't things happen to certain target customers? or we still don't know that to this day. >> i'm not sure we know how far it went. what happened in that instance was a lot of banks started seeing, i think that the banks started seeing fraud on other people's accounts. and then -- >> so it was -- and someone had to make someone whole somehow. >> i assume it's the fraud issue. at some point you have to make a determination were these accounts compromised and to what extent were they compromised? not just was there a hacking attack. and i think in this instance, firms like jpmorgan and others are saying this happens to us, actually probably more often than we even know and the headlines even suggest base some of the times -- >> who are these russians

andrew? just private citizens? >> are you suggesting that these -- >> i don't -- >> part of the -- >> certainly -- >> i mean i don't know. we have our russian expert right here. and look what's happening with mcdonald's. that's purely retribution. >> the health ministry as an instrument of the state. >> yes. >> is what has been out there for a long time. when i was there, they banned american chicken parts, and they're doing some of that now. >> i mean if you start attacking -- you're attacking me and you're attacking the united states. >> what's interesting, joe, is whether or not the russian people feel like they're being deprived of something new. >> well, i think that's obviously -- >> was a big deal. >> obviously. >> a very big deal. they lined up two blocks around the corner. >> are they not being deprived of mcdonald's fries? you need to ask the question whether they're being deprived of something -- >> you're being sarcastic. >> i'm not being sarcastic at all. >> but now they're calling them french fries not american fries. >> not american fries. >> freedom fries.

every report out of ukraine seems to be moving the global markets lately. here's the newest head line this morning. ukrainian president poroshenko -- >> good. >> -- that's good. i was going to let andrew. says russian forces invaded ukraine. he's calling a meeting of ukraine security and defense council to decide the next steps to take. futures move lower on the report. the 2e7b-year, there's the futures, that's probably why, that's what knocked us for a loop three weeks ago on that friday. the ten-year are now 2:33. look at that. i'm just laughing that, you know, we're nowhere near 3, 3.5% >> 2:31 we had this morning a couple seconds ago. >> japan's 0.4%. >> and under what is the ten-year bund, it was 0.8 something? >> yeah. >> and spain going to drop under two. >> italy's same with the united states. r equal to the united states. >> something else i was going to mention. just with this situation hasn't

the dynamics been -- there's a convoy supposedly carrying aid. you don't know what it is -- and then they do this. the other guys that they had plastered on every paper said we got lost. we were in a field. the way that this is happening is like putin is doing all this, isn't he? isn't he really like sort of stealth invading ukraine? >> he is. but my whole context in putin has been to think about putin not vladimir the great. but vladimir the loser. if you think about what he has lost, as president of russia. 80%, joe, of gdp of the former soviet bloc is now in nato. is now in nato. he lost seven countries in '02. and what did he do? people talk about him trying are reform the soviet union. >> you think he lost it in the first place? >> he lost it. and he's trying to -- retain the status quo. i had this a little bit more sympathetic opinion, which is -- >> of him?

>> not of him. of what western policy should be. i'm not quite sure how to execute this. but in the '90s we were very careful about expanding nato for fear of undermining the russian leader who we supported at the time. >> in a reset phase -- >> right. but what we needed to do and what we did back then was help russia manage its loss. putin's losing. there is no idea that putin has that's selling overseas. the only way he can maintain his sphere of influence is by force. >> we've got to move on. >> we have to move on. >> steve pines for the days of the soviet union. when you were there. and you want to put the whole thing -- >> we have -- did i say anything pine for -- >> you want to put the whole thing back -- you lived there. you don't look russian. >> i did live there. >> you're not pining for russian -- >> i'm not pining. >> you don't want to put humpty-dumpty back together. >> i did like the georgian food. >> let me bring it back home. in terms of the economy here, there's a new poll that finds

americans are still pessimistic about the economy, even more so than they were after the great recession. 71% of people surveyed by researchers at rutgers university say the recession put a permanent drag on the economy. so becky quick's university. also here to react to this new poll and get set for the latest read on the economy in next week's all-important jobs report, drew matous is here, the deputy chief u.s. economist for ubs. also mr. liesman cnbc's senior economics reporter. what do you make of this study? >> you know, look. every time you ask consumer their opinion of the u.s. economy i'm not saying you have to leave it in the hand of experts. but 71% of americans couldn't tell you what gdp was last year plus or minus five percentage points. >> you don't think this is relevant? >> i don't think it's relevant. we've seen this in the data, there's a bifurcation of the labor market. people out of work are finding it very difficult to find work. and people in the labor market

are beginning to see the light at the end of the tunnel but haven't gotten there yet. and so, you -- >> but you're looking at it as the glass half full. that the consumer is just not -- has not come back and may not come back to the extent -- >> except for the fact they've been on a car buying spree the last few months. people say one thing and they do another. and one of the great examples is, if you look at consumer confidence and try to relate it in any way to spending, you never find -- you'd never find a relationship. one of the reasons is you spend money when you're happy or when you're sad. right? when do you go and splurge on somethi something. when you're sad to make yourself feel better. >> after 9/11 americans found themselves wandering in the parking lots of car dealers. it was an amazing -- drew is absolutely right. >> i don't buy things when i'm happy -- i mean when i'm sad. >> you don't buy things when you're happy either. >> right. i'm cheap that's my problem. that's a separate issue. >> i think the poll is meaningful. i think there is a permanent

scar -- not permanent. a lasting scar from the recession. and i think it means, drew what do you think, a slightly higher savings. maybe it's a couple points in terms of what people will spend out off their total disposable income. >> if that's true -- >> i'm not sure that's the worst thing in the world. >> also bearing in mind the savings rate is on a structural decline because we have all these baby boomers retiring. negative savings -- it could also mean that the question is phrased very broadly. but it could be like do you think the economy is damaged in some way? or do you think there's changes afoot? and the answer is yes, you know. there aren't going to be as many people owning a home. right? >> but explain this -- >> here's the other thing. you can look at cars on one side but then look at just general retail. take luxury out of it. there's a disconnect. >> cold summer. >> now it's the weather between? >> very cold. >> too k08d of a winter to go shopping for winter clothing and too cold of a summer to buy summer clothing. global warming.

>> well -- >> don't get me started please. if you're cold it's just weather. if it's hot, it's climate change. you've got to learn how to -- >> but here's the calling. we've gotten this question from a lot of clients. is good weather boosting the economy? it's like well no because look if you're 35 degrees, and you drop it 10 degrees for two months, right, then you have frozen lakes, frozen rivers, you can't do things. >> right. >> if you're at 80, and you go to 70 for two months, how's that really make a big difference to most of -- >> we're in for a really cold winter? didn't you tell me -- >> farmer's almanac, they have -- >> also have a nasty hurricane hitting new york in like end of september i think. >> don't even say that. >> that was the farmer's almanac last year. >> there are some people that think that a huge solar suber cycle that lasted 100 years ended 30 years of cooling temperatures. >> we're still in the middle of an ice age. the middle ice age.

>> can i get back to the poll. >> we've got to run. >> we're not going to put the soviet union back together again, liesman. >> wrapping it up but the question becomes -- >> 90% of american -- >> americans believe that the growth rate of the economy is now -- is not going to get back to that ap and i think that affects optimism, may effect entrepreneurialism. i think the sense of optimism in the country i think is a significant factor. maybe -- >> it's affecting the fed and investors because the -- a lot of investors have bought into this idea that there is this new permanent lower level. what i think you know the so-called i forget what people call it -- >> secular -- >> stagnation. >> it makes no sense. like we have an expanding manufacturing sector. most productivity comes from manufacturing. even if you get decline in the population growth rate. the productivity boost from the higher manufacturing component to the u.s. economy should be enough to offset it. >> we're going to leave the conversation there. thank you, drew. >> thank you. >> appreciate it. >> we'll take it. >> no -- >> iconic --

>> putin's approval rating 90%. >> in russia. >> don't care what we think of it. an iconic car -- although our president cared what his approval rating was in europe. that was -- you know, i don't think putin cars. an iconic car the mustang turns 50, which is really 40. take ten years off every age now. ford is getting drs if 50 is the new 40, then 50 is the new 30 we're talking about the mustang. in the show room. when we return. [ woman ] the cadillac summer collection is here.

♪ ♪ [ male announcer ] during the cadillac summer's best event, lease this all-new 2014 cts for around $459 a month or purchase with 0% apr. hurry in -- this exceptional offer ends soon.

the mustang is turning 50 this year, and it's going global for the first time. will the original pony car continue to be an automotive icon. here with us first on cnbc is ford's executive vice president and president of the americas. joe, i owned one, unfortunately i got in the wrong time. it was one of those horrible mustangs -- there was only one time when they were horrible and that was after the late '70s because they weren't muscle cars. i had a four cylinder mustang which isn't a mustang. these are real mustangs, aren't they? >> mustangs are such a great part of our history. they're such an american iconic vehicle. over 3,000 tv and movie credits. and we're just so proud to be building the 50th anniversary version now here at the assembly plant and continuing on the

legacy that mustang is for ford motor company. >> you had another really successful launch recently, as if the -- the grill reminded me, it's really a nice car when they come up on me, i see them and i know what it is. it's not a focus, what is it. it's the other one with the grill. >> fusion. >> yeah, we had the fusion. we do the fusion here as well as the mustang. the fusion here last year removed that production, incremental production from mexico. now we have the mustang alongside it and we're slowly ramping up with the new model. >> so can i get this as a six -- can i get a standard transmission still, joe? >> well we'll get you anything you want, joe. we get you a mustang or fusion. we'll get you a gt. a 50-year anniversary. we'll get you anything you want, because mustang is such a great car for us. >> what's the biggest engine i can get. things have changed. and -- hopefully you can still get a real mustang -- they come up, i hear them. so it sounds like there's still

v-8s with -- can you get up to 400 cubic centimeters still? >> well, the new gt, the v-8 verse, the five liter, historic engine that we put in the mustang has over 400 horse power. 435 horse power. we can get you that. or now going global with mustang we have the 2.3 liter i-4 boost which has over 300 horsepower as well. a lot of different options for the different customers around the world. >> where are your biggest markets? where do you think people really want these? i know they like buicks in some places. like not here but apparently they like them over there. where are mustangs going to be big sellers? >> well of course our biggest market will the u.s. and canada. but we're very excited about taking it to europe and also asia. the data we've seen around the world is that when you look at ford, you do customer research, the top five name plates customers bring up about their memories and love of ford,

mustang usually shows up even if we don't sell the vehicle in australia, brazil, other parts of the world. we're looking to china to be a big part of our business and europe, as well. >> really? so, so the you do see v-8s being sold in china and driving around with the like a muscle car. >> well, you know, the iconic story that is mustang and the freedom it represents in the west of america resonates everywhere. but we think actually the 2.3 liter i-4 gtdi ecoboost engine will be the engine of choist for most of the markets around the world. but the v-8 is loved here in america. >> what percentage of -- break down what ford is really selling now the product lineup? is it go trucks, and then go, you know, sedans, and then cars like the mustang? how does it break down? >> well, about 30% of our business here in north america, are f-series. so it's our number one selling vehicle. number one selling vehicle in

the u.s. for over 32 years. that's clearly important to us. we have very strong lineup in suvs and crossovers. we have a very strong brand there. we've been growing our car business with the fusion, and also the fiesta and focus and of course the mustang which will be coming out. we refreshed that lineup. the focus later this year gets flesh so we're seeing the growth in our car business but the strength of our business continues to be in trucks and suvs. but we're working really hard to balance that portfolio. >> are you ready for -- what do you think the industry does this year in the u.s.? 17 or so, or 16 and change, and is that going to continue and are you a company now that could you be fine at 15 or 14 million again? >> well with the restructuring that we did years ago we have a cost base now that can be profitable, much lower volumes than we were historically able to do. we still see the market this year about 16.3, to 16.8 that includes the heavies. august is going to be another

good month high 16s, it could even such 17 depending what happens over labor day weekend a lot of activity going on in the marketplace right now. the market continues to be strong, and there's very strong demand for suvs right now. it's actually being pulled by consumers. >> let's explore the -- i have a navigator. but the explorer is the main one still, or is it the -- there's another one the edge is a little bit smaller right? is that an suv or that's on a car frame? >> the edge is an suv. some people call them crossovers because they're on car platforms. the edge will get a new one next year. and the navigator we're freshening this fall. i actually am driving one of the new ones right now. great new product with an ecoboost engine. a lot of new products. we have the expedition of navigator being freshened right now. the new mustang. the f-150 later this year fresh and focus and then we're in a big cycle right now of new products. >> send andrew some info, joe. he doesn't have -- he doesn't

even have a car. he might be in the market some day. and why not a ford is what i figure. but we're going to -- >> i'd like a big ford expedition. >> why don't you get one? the navigator is like an expedition. i got -- anyway, joe. thank you. we appreciate it. good luck. and you're right about the mustang. it is -- it's like well there's a camaro, too, but synonymous with america. i think, to some extent. all right. see you later. >> it is. we love it. >> the back seats -- i think je jeeves would prefer to drive -- >> coming up we are coming up on the end of the holiday road, so how is the summer for amusement park operator cedar fair? the ceo is going to get on the "squawk" coaster in the next half hour. cute little guy, huh?

this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation.

call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. when i'm working, things can get so hectic. so sometimes i need to find an easy way to express what's most portant to me. like, with my crew, i use shorthand to talk to them and tell them what i need... and when i need to talk directly to my fans... but the most meaningful shorthand of all is the one i use when i'm about to drive: "#x." it's an easy way to tell everyone that i'm about to drive. and i do it every time before i get behind the wheel. use #x to pause the conversation before you drive. because no text is worth a life

welcome back to "squawk box." actress katherine hagel and dwayne veed have come to an agreement to end a lawsuit. she accused the pharmacy of posting a paparazzi photo of her leaving one of their stores. i don't know what the settlement was like. they agreed to end it. get free gum or something from

duane reade for life? >> happy. >> you would be happy if someone took a picture of you? >> i would, you know. see that big of a star, really? she on any nbc things? she's great. love her. she had every right to do this. >> next we're going to unveil three stocks that have had quite a run. i sat next to her and her husband is a musician. and discount retailer dollar general. there's no reason we can't manufacture in the united states. here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. we knew we needed to grow internationally, we also knew that it was much more complicated to deal with. i can't imagine having executed what we've executed without having citi side by side with us. their global expertise was critical to our international expansion

into asia, into europe and into canada. so today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that american made bag within a few days in singapore. citi has helped us expand our manufacturing facility; the company has doubled in size since 2007. if it can be done here in san francisco, it can be done anywhere in america. so i get invited to quite a few family gatherings. heck, i saved judith here a fortune with discounts like safe driver, multi-car, paperless. you make a mighty fine missus, m'lady. i'm not saying mark's thrifty. let's just say, i saved him $519, and it certainly didn't go toward that ring. am i right? [ laughs ] [ dance music playing ] so visit progressive.com today. i call this one "the robox."

welcome back to "squawk box" this morning. making headlines the first human trials of a new ebola vaccine are soon going to be under way. nbc news reporting that the government and drugmaker glaxosmithkline will announce the trials later today. this particular vaccine is one of several that are being developed. the world health organization says the number of ebola cases could eventually reach 20,000. that's about six times the number currently identified. also, had a busy morning ahead for economic reports. the labor department out with its weekly jobless report on initial jobless claims. that's coming at 8:30 a.m. eastern time. the same time we're going to be getting the latest estimate of second quarter economic growth.

that's expected to come in at 3.9% annual rate. and the first talking robot in space has phoned home, joe. we want to return to earth saying, he's tired of spending more than a year at the international space station. 13 inch humanoid was sent to space last august to test communication with a japanese astronaut. >> pretty cute, isn't he? >> cute little guy. >> he is cute. like wall-e or something. >> they just talk to him for a whole year? >> i don't know what -- that's -- >> that's -- >> and you say that i'm not going to download my brain in 30 years and you're seeing this. and you still don't think that's possible. >> and they're hanging out with him. >> yeah. >> all year. >> wonder what it means when his eyes flash like that. let's get to stocks. stocks setting record highs. some investors have been making big money buying on the most recent dips. we screen stocks in the muscle 1000 since the index recently

hit a low on august 7th, and dominic aclu joins us now. he's been tracking these buy the dip stocks, and tough to do, dominic. but i guess it pays off if you can do it. >> it can. and a lot of times people use different kinds of triggers, if you will. so if you're a stock junkie you remember that day back on august 7th. i'm going to take you through this chart. this is the dow's chart, all right? but it's an indicator for overall sentiment in the marketplace. and that green line is the 200 day moving average. the long-term trend line for the overall market. you can see the orange circle with the last time that we hit the 200 day moving average. that was a buy signal for a lot of traders out there. so if you had a shopping list, those stocks that you wanted to buy, but you were waiting for some catalyst, if you will, to go and do it, this was the one here. let's take you through some of the stocks that were interesting in terms of stories overall. first of all, if you put these stocks on your shopping list and bought them on that dip in the overall indices back on august 7th, you've been doing pretty well first of all there's salix

pharmaceuticals. they specialize in treatments for digestive problems like ulcerative colitis. a week and a half ago salix was reportedly the target of takeover talks in allergan in a possible move to fend off a takeover of its salve by valeant. since that time point august 7th, salix is up 19%. how about a retailer given up for dead by many retailers, jcpenney turning a few heads which could be a positive momentum for its turnaround plan. this stock gained 20% since august 7th. kudos if that was on your shopping list. then there's the best performing stock in the russell 1000 index since august 742. i'm going to tell you this is going to be interesting because i want you to kind of guess who this is. it's a mystery right now. but it's up 34% just in the past three weeks. it's, andrew, joe, a consumer staple company based in corona, california. it specializes in nonalcoholic beverages.

and it used to be known as hanson's natural corporation. remember hanson's natural soda? >> i do. >> so it changed its name in 2012 to be this company. one of the best performing stocks -- >> must be because hanson i remember watching that it seems like last week. hanson's was a big winner in a lot of -- who was it that was short? herb greenberg and it kept going higher and hider. used to needle about it. >> it's still going. but it's under a different name thank you it makes energy drinks. >> what is the name? >> monster beverage. >> no way. >> taet hanson's? >> that's hanson's natural. >> so all of these -- >> so salix and monster had two -- had news events. >> correct. because monster got the big investment from coca-cola. >> right. >> and the salix, allergan. >> right. >> jcpenney slightly different. what do you -- what do you

ascribe that to? >> those two the first two that you said salix and allergan had news items. so if you look at the charts for these guys you see this kind of like maybe steady uptrend and all of a sudden a shot higher because coca-cola made an investment or allergan wants to make a takeover of the stock. but with jcpenney this has been one that's been given up for dead. it's been dead money for awhile. but all of a sudden in the last couple of months, you've seen this thing slightly trend higher. look at the chart here. and then all of a sudden, you can say, hey, maybe this is the beginning of a bottoming process for some investors. it's taken a long time to develop but you don't get that same one catalyst event -- >> for ten years with jcpenney you were catching a falling knife every time you bought it. finally it gets to five -- >> was there a news event? >> yeah, there's not -- >> sold out. just was sold out. you can't call it a dead cat bounce, people get mad. dead roach bounce they got mad at me. people like roaches. dead rock -- >> no. what is the lesson?

>> so the lesson here is, since 2009, we know that every single dip has been bought. specifically since 2009 the average depth, if you will, of one of these pullbacks is around 6%. so every time the market dips by 4%, 5%, 6%, people have bought it and they're done pretty well. but if you can pick the right ones from a fundamental standpoint have a basis then you're doing all right. >> thank you, dom. >> sure. >> appreciate it. >> dollar general out with second quarter results, matching estimates with its earnings. falling short on both revenue and same-store sales. it also said it remained committed to its bid to buy rival family dollar. even though family dollar rejected that bid. joining us now is the bb&t managing director and senior research analyst. talk to me about these earnings but perhaps more importantly talk to me about them in the context of this transaction and what happens next. >> sure. so i would characterize these earnings as okay, decent, certainly not great.

as you said, top line was a little weaker than we expected. comp store sales were up a little over 2%. we were expecting 3%. and in addition to that the operating margin declined for the sixth consecutive quarter year over year. now, how this relates to family dollar, quite simple. the -- you know, dollar general was a very, very successful multiyear turnaround plan. but at this point that turnaround has petered out. operating margin improvements, productivity improvements are becoming more and more hard to come by. that's why i think that family dollar, buying family dollar is a must-have for dollar general. particularly to keep it out of the hands of dollar tree. we think that dollar general having to compete with family dollar, run by dollar tree's much, much more talented management team is a nightmare scenario for dollar general. i think that these results underscore that. >> okay. but how hard do these results make it for them to raise their bid which i imagine has to happen for some -- for a

transaction to actually take place? >> it doesn't make it more difficult at all, quite frankly. they've got financing committed, you know, we've run the numbers. they can certainly bid significantly more, and still have the deal be accretive to earnings per share. >> when you say significantly, what's the number? >> you know -- >> play banker. >> sure. i mean i think that at the end of the day, if dollar general comes in with a bid with an eight handle so over $80 a share with stronger antitrust protections, i think that that that that's something that family dollar's going to have to respond to. the issue with family dollar wasn't the bid. the bid was $4 a share higher than dollar tree's bid. it was the fact that there was not a lot of protection for family dollar's shareholders from an antitrust perspective. >> but -- and that's the question, though. they made this argument about antitrust. how is the number, the price tag going to overcome what the company's already said which they think is the problem? >> well i think you have to do both quite frankly. i think that a higher bid would

be more compelling but i think that that has to include stronger, like i said, antitrust protection for family dollar shareholders. >> okay. anthony, thank you for joining us this morning. >> thanks for having me. >> coming up, as summer winds down we're going to ride the roller coaster one more time with the ceo of cedar fair. this thoughts on the economy, the state of the consumer, and his interesting ice bucket challenge later. two very different stories coming from two market pros. cramer says the bull will run, abigail doolittle says a direction of 60% or more could happen. we're going to try to set the record straight. don't just visit new york. visit tripadvisor new york. with millions of reviews,

tripadvisor makes any destination better.

my golden years will not just be gold plated. i had 3 different 401(k)s. e*trade offers rollover options and a retirement planning calculator. now i know "when" i'm going to retire. not "if."

welcome back to "squawk box" this morning. take a look at futures. see how the market is setting itself up for the morning ahead of this open. opening down at the moment. dow looks like it would open down about 48 points off. s&p 500 about 5.5 points and the nasdaq would open down about 8 points. let's tell you about some headlines this morning. there is a new study out, joe, naming the most american city and the report from personal website finance website wallethub says that nashville, tennessee, is the winner, and second place, joe, goes to your home of cincinnati. and what makes a city the most

american in this study? apparently demographics that mirror the u.s. average as a whole. so, you can feel average, joe. >> yeah and you know what was -- next was indianapolis. in fact all the cities that won are places where you said are not cities, really. >> nope, those are wonderful cities. >> you learned your lesson. >> i love -- i love all of america. >> you learned your lesson. it's good to see that if you head your head against a wall enough times sooner or later you're not going -- is even denver a city now? >> yes, denver is a city -- >> what was interesting, they had the places that were the most not representative of the demos of the united states and boulder, where i went to school, was actually on that list. so i've been to both places. it is a final weekend of the summertime. and it's time now to take a ride at cedar fair one of the country's largest amusement park chains.

this was pretty amazing. we're going to talk about these -- i didn't realize this. 69 degrees was the average temperature in ohio. 69 degrees. anyway, cool july temperatures affected attendance but the stock is up nearly 18% over the past 12 months. got a great symbol, fun. are investors still searching for a thrill, with us now is matt -- i was going to ask you to pronounce it. matt ouimet, president and ceo of cedar fair. matt, do you know if you're related to francis? >> you know, joe, you always ask me if you saw my golf swing you wouldn't ask me again. so, no, not related to francis. but it's a great story. >> like one of the great -- i would just say yes from now on. say, yes, i am related. two percent decrease in attendance. i didn't realize so only two days greater than 85 degrees in august in ohio. >> yeah. and only four since june.

so, it's been a little bit unusual from a weather standpoint. but, fortunately we'll get hopefully have that weather continue at exactly that temperature for the fall season. >> yeah so bad for summer but good for fall. what can we take from amusement like down 2%? that's more based on weather? we can't really extrapolate that to the entire economy and weather consumers are not feeling as flush as they have in prior years? >> no. i don't think you can extend it to the consumer economy. we actually see that improving here in the midwest. and certainly improving at places like santa clara where we have a park near the silicon valley. you know, 2% in attendance, you know, we don't like to talk about weather. we're careful, though, it becomes an explanation and not an excuse. but as you pointed out, it's been a particularly cool summer here in northern ohio. and it's affected our water parks a little bit. but we expect it to be very strong attendance here in the

fall and we've got our fingers crossed. >> the one time -- it reminds me of sharks. you got a better chance of getting hit by sputnik, i think, than sharks. but the minute something happens with a roller coaster, everybody always talks about whether roller coasters are safe and they do point out, i think about ed markey who never found a regulation that he didn't love but he said a baby stroller is subject to tougher federal regulations than a roller coaster. is there enough oversight and regulations or roller coasters that are traveling at such high speeds and flipping and going upside down? >> you know, certainly i will say there is. you know, we have the strongest economic incentive to make sure that our park's as safe as possible. the same thing is true for the industry. and if you chub the industry's record it's really good. the number one priority is to make sure our parks are safe. we have a good record of that. >> when you say there's enough regulation. my understand is federal regulation of roller coaster safety ended back in 1981. is there any?

>> no, no, we have oversight in every state we operate in. so i think that is a gross overstatement. and we have very good working -- >> so it's a state basis? it's not on a federal basis? >> it's on a state basis. and quite honestly, it works effectively. and we're happy to cooperate with the state authorities. >> hmm. is there, matt, would you say, a sort of a race, no pun intended, to get even scarier and faster, and people trying to outdo each other? is that something to worry about? does there come a certain point where they shouldn't get any scarier or any more, you know, take any more risk? >> yeah, i don't think it's a risk issue, joe. i think it's an innovation issue. and certainly, the roller coasters we create like the one behind us is designed for the general public to ride. and quite honestly there's a point in time where the general public, it becomes too scary for the general public. so it's a balance but it's more

about innovation than risks, certainly. and the number one new coaster next year will be in charlotte, north carolina, in our carawinds park. the vast majority of people that visit that park will ride that coaster. >> i know. i still have to. because someone has to go with the kids. and for me now it's not that i get scared it's for the next hour i think i'm going to hurl at any moment. i feel like an astronaut that's been in one of those g-force machines. you did an ice bucket challenge and i hear it's pretty good. and you've given some money to als, too, matt. we want to take a look at that. >> yeah. so you can take a look at that. and joe i understand you haven't accepted the challenge yet. so we're happy to repeat that event at our parks for you. >> oh, yeah. i actually accepted a challenge, and then the person i accepted it from is stuck in a foreign country, and it would be neat if we were all able to do this. i'm saving myself. although i appreciate it. >> i under -- >> did we see this yet? >> i understand it.

>> here we go. >> dump the water and then they began the roller coaster ride. >> and then to dry off you do the roller coaster ride. that's awesome. but you wore a hat. >> well, i wore a hat because it's boston college and the als challenge has a relationship back to costen college. my son graduated from there. so it was a little gratuitous. it wasn't to protect me from the cold. >> see he got the boston connection. i think you are related -- it was the brookline country club where francis won. go with it now, matt, from now on. you are related. bc screaming eagle. great school. i need some connections there, too. all right, matt, thank you. i'm going to remember that i asked you about ouimet. but it's such a unique name and such a great story, andrew. you should look into that sometime that this guy actually won with a 10-year-old caddie and everything else. the u.s. open. matt, we'll see you later. thanks. >> okay. coming up, the head of the world's largest commercial real estate services company, the ceo

of cbre is going to talk stock success, commercial leasing recovery and a lot more when "squawk box" returns in just a bit.

take a look at some stocks

to watch. earnings at abercrombie & fitch beat estimates. revenue shy so the stock is now down almost three points. retailer says it is making progress in its words evolving the fashion component of its offerings. home furnishing retailer williams-sonoma shares trading sharply lower. earnings and revenues match wall street estimates but current quarter guidance fell short. and guess falling short of consensus in the apparel retailer is lowering its full-year forecast. traffic drops and promotions continue to cut into profit margins. and work day posting better than expected results, the company seeing growth in demand for subscriptions to its human resources and financial management software. workday also raising its full-year revenue forecast. >> i was going to say i love workday. >> i don't think that i've actually shopped for something in like 20 years. and i did yesterday.

>> what do you mean? >> i don't think i've actually bought clothes. >> what did you buy? >> i bought some jeans. tight fitting jeans. >> tight fitting jeans? what brand? >> i had some. >> skinny jeans? >> i had some already. but we moved out in a rental and they're all packed. so all i have are big, baggy obama grandpa jeans and i needed something better. >> so, what brand did you endorse? >> i mean i don't know why i set myself up for this but i actually went to bloomingdale's and looked around and i made some mistakes initially. >> did you listen to coldplay on the way in? >> i bought something called a seven. >> seven? >> yeah, polyester in them. >> seven -- >> oh -- >> stretch? >> oh, no. >> is that seven from mankind? >> i don't know it's called a seven. but they look pretty good. i was told i did a good job. >> and you got -- by your wife? >> by my wife. >> or by the sales person? the salesperson told you a great

job. >> not the salesperson. but i was very worried bringing them home, and putting them on and modeling them and everything. >> so you modeled them. >> they look good. >> and they stretch? there's a little stretch in them? >> they do. do you -- >> i don't own any jeans that stretch. no, no stretch. >> you know, when we have socialized, your spouse thought i looked a lot better than you. >> she liked your shirt. >> my shirt. yes, she did. and said why can't you get one of those? so now it's going to be why can't you get jeans like that? >> little stretch jeans? >> yeah. >> okay. >> i sacrifice a lot for this show. >> i know you do. >> to sad mitt things like this. but i was thinking -- >> did you need the stretch band is that what the issue was? >> kind of. no, but i hant -- sometimes i do let out my breath. but i hadn't -- it's been 20 years since i bought a pair of jeans. bought anything. in a store. because we get our clothes here, you know -- >> at cnbc? but you don't get jeans.

>> yes, sometimes you do. i have. >> oh, really? >> mary has gotten me jeans. >> coming up, on that note, who are the investors to believe? the fear mongering bears calling for a slide of 50%, or the bulls, who say nothing to see here? we're going to follow the money with the man at the helm of trim tabs investment research right after the break. we're going to talk more about joe's stretch j jeans, and then later golf's decline has been a boom for tennis. tennis coach and analyst brad gilbert is going to join us to talk about the sport's growing popularity. and what the greens can take away from the courts. "squawk box" returns right after this. this is a burrito made with chocolate, soybeans, and apricots. what kind of chef comes up with this? a chef working with ibm watson, on the cloud. ingredients are just data. watson turns big data into new ideas. and not just for food. watson is working with doctors and bankers to help transform their industries.

today there's a new way to work. and it's made with ibm.

is caused by people looking for parking. in a city that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years. we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information, sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants,

and that certainly is huge. it's the comeback versus the correction. can the bulls hold onto gains this fall season? or will the bears move in to feast? >> building success one investor at a time. the ceo of high end commercial real estate broker company cbre joins us to talk about their current investments. where they see the commercial market headed. >> courting golfers. the popularity of tennis is booming, while the greens grow weeds from ratings to tickets to dollars, what golf can learn from the success of tennis. as the final hour of "squawk box" begins right now.

welcome back to "squawk box" here on cnbc, first in business worldwide i'm joe kernen along with andrew ross sorkin. becky is off today. check this out. this is a viral video that's picking up some steam. pun intended. put out by the bissell corporation for a new vacuum cleaner. he's cleaning the floor in a toronto subway station, freeze that video, you're not going to believe what this man does next, we'll roll the tape later in the show. and i haven't seen it, but i do know what a bissell is. >> i think another video that could -- tonight, your wife could just -- if you could do a little modeling of the stretchy -- >> i did model it, too. >> if you could do it with your iphone. >> it would be good if they have -- sometimes they have

surveillance in the dressing room, too, actually trying -- >> i think you should tweet it out and we'll see. >> no, no, please don't. please don't. >> save everybody's eyesight. tell you about some serious headlines. dollar general says it remains acquitted to acquiring rival family dollar. they've rejected the $9 billion buyout offer saying it could run into antitrust issues. opting instead for a smaller bit from dollar tree. if dollar general comes back with a higher bid whether they can even accept it given they've already made the antitrust claim. dollar general reported nearly 8% rise in quarterly sales but that falls short of estimates the company citing a keltive environment and a cautious consumer. in global news this morning we're following the rhetoric out of ukraine. the president there saying today that the russian forces entered his country. he warns military conflict is worsening after russian-backed separatists got to a key town in the east. joe? >> all right. andrew, let's check on the markets, and what we're expecting this morning with some of the news from ukraine.

once again the futures were under pressure and they are, now. they've been down 75. they've been down 45. now they're down 63. over in asia, take a quick look. a lot of times that gives us an indication of what we could expect. there are red arrows there, also in europe, probably with the ukraine situation, losses there anywhere from a little over a point to a little less than half a point. and as we sit here record levels we are hearing the smart minds on the street call for everything from smooth sailing ahead, to the apocalypse. >> there's not much to fear here. and like the rest of the market, there's a ton to embrace. >> as scary as it is, i think that we could see possibly a 50% or 60% correction. >> with us to try and make sense of this market charles biedermann is in studio, founder and chairman of trim tabs research and founder of biedermann's practice -- were you ever on fnn, charles?

>> yes, 1990. >> i was going to say, going all the way back to fnn. >> yeah. >> on bollinger. >> that's exactly right. ron. so, you've been following us a long time and i've always watched the way you try to figure things out because it's not necessarily something that everyone else looks at. and again, i'm seeing the same thing from you today. i didn't even know any of this stuff but it might be really helpful in trying to determine where we are. the one thing that you say is you're still bullish and you plan to remain bullish even though you know it's kind of dicey, isn't it? so many people holding their nose but staying bullish. why are you staying bullish and what are some of the warning signs you see? >> i use the science of ontology to track markets. shares of transactions, shares of stock being bought for cash. supply and demand right now shares are shrinking by $70 billion, $80 billion a month between actual buybacks and cash

takeovers of public companies. $70 billion to $80 billion a month we have 25 billion on average of new offerings, so the float shrinks about $45 billion a month. as long as 45 billion more shares are withdrawn, meaning owners of stock have more money to chase fewer shares, the market's up at the end of 12, it was 17 trillion in market cap of all u.s. stocks. it's now 26.5 trillion dollars. in a year and eight months. >> do you see the -- all of the central bank easing around the world, as the supply is shrinking? are the amount of dollars growing from that? or you don't really even factor in all the printing presses? >> zero interest rate policy means if you have cash on the balance sheet, you're not going to earn anything. so companies are taking some of that cash and reducing the amount of shares outstanding. >> why not? >> and we've heard from some

people that attribute the tepid recovery to the notion that instead of investing for the future, and making it an income statement recovery, it's a balance sheet recovery that we're seeing and that's why the corporate america hasn't invested as much as it should. >> i think that's nonsense. the real problem is wages and salaries are growing less than 3% a year for the last four years. so you have stocks growing 25% plus a year. wages and salaries are only growing 3% a year. how do you -- that doesn't -- one doesn't justify the other. >> and let's get to your next metric is which you've looked at past market peaks. looking at -- i didn't even know this metric. you should explain what it is. looking at the stock market compared to wages and salaries. >> everybody looks at gdp. why? i don't know. nobody understands what gdp really is and it doesn't count income. it counts spending. so if you look at wages and salaries of everybody with a job subject to withholding which is what the bureau of labor statistics report is, it's

been -- it was 7 trillion at the end of '12 annual rate. 7.5 trillion now. the market company at the end of 12 was 17 trillion -- >> and now it's 26. >> and a half. so right now if you look at the relationship between wages and salaries and market cap it's like 3.5 times. the last two times it was close to this was in march of two,000 and october of 2007. >> and it got to 3.7 to 3.8? the market cap versus wages. >> it's depressing -- >> so it's now 3.5 so the last two peaks were at 3.7 to 3.8. >> yeah. >> so that's still enough for you to stay in now? >> well, it could go to four. i don't know. you know you have this market in essence rigged. >> so what are you supposed to do about it, though? >> you ride the tide and hope you can get out before the game ends? >> you think the game is going to end but you don't know when it's going to end. we always know the game is going

to end -- >> yes. >> but based on what you're looking at when do you think the game ends? >> the first key point is the alibaba offering. if new offerings expand by $30 billion to $40 billion a month and eat up the cash generated by buybacks that could end it. if buybacks slow or interest rates rise, if, as and when. i don't think interest rates can really government can't let interest rates rise because without the wealth effect we're not going to have the 2% to 3% gain in salaries. this is not a huge economic recovery we're talking about -- >> we're like in a box almost then. what we need is, what we need to keep doing is part of the problem of why we're not doing better. >> well, what we need to keep doing is create where it's cheaper for business and people to start new things, to expand, to grow, instead of making it more expensive to do anything. >> you don't think keeping it that cheap and allowing companies just to abuse it to buyback stock to boost earnings you don't think that's part of the problem? >> i think it's symptomatic of

the problem. >> we don't have an economic underpinning that we used to have. it's much too expensive to do anything now. legal fees are so enormous for doing anything in business it's like why bother? so much paperwork. >> okay so worried about 3.7 or 3.8 times wages. but is there any way that you can forecast how ugly it would -- we could say 10% to 15% to 20%. there are people talking about 20%. have we built up a big enough imbalance to where we're -- way ahead of our means and need a 50% pullback? >> we've been around a few years. >> the stock before it goes too far on the downside. always goes too far. always goes too far on the upside. you know, you can't -- it goes the way it goes. >> you want to mention you're a nonprofit success and you can get something free, what on curious.com. >> yes. >> that's the website? >> it's an ontological based

course which you just talked about. >> in the practice of successes, if you're fully -- the key practice is being fully present, totally engaged in the areas of life important to you, particularly when you don't want to be. we all know when we're fully present life works better, we're successful. if we're not present, we're unhappy, things are bad, we have a cloud we're walking in. under. the results aren't the same as when we're smiling, happy, things are great. so it's how to be present in life, and on curious.com it's a course. >> okay, good. all right, charles. someone asked me yesterday what time do you get up every day, right? and they say that must be hard. it is hard for him. but how true is early to rise and early to bed -- ben franklin quote. makes a man healthy, wealthy and wise. right? it's good. >> but you live in new york. and it still kills you to go to bed at 9:00, doesn't it? >> still tough to go to bed. >> because you've got things to do, places to go, things to see. stars to meet, right? >> tough. >> i was in bed last night at

8:37. >> that's what you've got to do and get up is the 4:00. >> i do it on the west coast. so i'm up at 4:00 to watch you guys anyway. >> 4:00 a.m. -- andrew, life is better. embrace it. good job anyways. >> but don't get stretch jeans. >> wait a minute. >> thank you. >> skinny -- >> okay. we've got to get to some serious news this morning. because the fbi and the secret service are investigating reports of cyber attacks on u.s. banks. media reports say five banks including jpmorgan have been struck, in a series of coordinated attacks this month. cnbc's eamon jafrers joins us now with more on this developing story. where is it eamon? >> andrew, right now jpmorgan is confirming that it's been the victim of some kind of cyber intrusion here. exactly what kind though they're not saying. take a look at a couple of bullet points. that we have that jpmorgan provided for us. they say as of so far they're not seeing any unusual fraud activity and they're working

closely with law enforcement to determine the scope of this attack. they say they're taking additional steps to safeguard sensitive or confidential information that might have been available for these attackers. and then as russ they say customers should contact them if they have any suspicious activity on their accounts, and they'll not be held liable for fraud. they say our cards all have zero liability protection. so a little bit of peace of mind there if you're a jpmorgan customer. this morning, worried about this potential cyber attack. the fbi says it's working with the secret service on investigating what might have happened here. they say they're looking at attacks against a number of banks. the fbi not saying exactly what number of banks might be involved here. and the question here is, who did this, we've seen some media reports saying that there mite be a russian connection here. i talked to a cyber expert last night, a former fbi cyber expert who said basically when you're looking at this kind of attack the reports are there's an exfiltration of data which means they stole data. might not be the russian

government. you might be looking at russian organized crime. >> the question we have this morning is the disclosure issue. you have jpmorgan confirming. they didn't come out publicly and say it earlier. you still have four other banks that have been hacked that have not been disclosed. what do you think the rules and requirements are around the disclosure and how we should think about that? >> we've seen this a lot. companies are often wary to disclose anything. they don't want to admit anything that could cause panic or fear among their customers. they don't want to be embarrassed in the marketplace. at the same time they're dealing with a very complicated intrusion. a lot of companies don't want to say anything before they know exactly what's going on. >> if there's no fraud on these accounts do they have a requirement to do so? >> it depends whether they make a determination it's a material event. the definition of material is a little bit gray when it comes to cyber attacks. exactly how much damage, how much potential damage, what the exposure is, all that goes into the calculation of whether they disclose or not but you see a lot of cyber attacks that are never dischoiced by the companies that have been hit.

>> thank you for that. >> you just got with biderman here i don't think it cooked for you. but you just got empirical data showing that no wage growth and income inequality actually does eventually empirically come back and start hurting asset management and stocks. >> can't go too far. >> just the people the owners keep doing better. you just got it. you should tell "the new york times" that. they can write a bunch of stuff in their editorial page about you finally can -- you proved it. >> they watch the show. coming up next, your chance to win taco bell for life. you want that? taco bell for life? >> are you kidding? yes. >> plus commercial real estate may not be the most exciting investment but some of the biggest fund managers have taken stakes in one company that has brought them some big-time returns. we got the ceo of cbre joining us next.

thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. ♪

♪ [ male announcer ] during the cadillac summer's best event, lease this 2014 ats for around $299 a month. hurry in -- this exceptional offer ends soon. ♪ hurry in -- this exceptional offer ends soon. could help your business didavoid hours of delaynd test caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. go to comcastbusiness.com/ checkyourspeed if we can't offer faster speeds - or save you money -

we'll give you $150. comcast business. built for business. welcome back to "squawk box." taco bell is giving eleven lucky customers a lifetime of free food. in honor of its new dollar menu, the company's releasing 11 unique dollars in 11 cities. wow. this sounds like willy wonka kind of. one each day. the contest started tuesday in los angeles.

yesterday it was chicago. the serial numbers for the dollars are being revealed on the company's promotional website, ever lasting dollars dotcom. it's like the everlasting gobstopper. potential winners have a month to find the bills. the golden ticket. we've seen that, right? >> i have. i have. >> yeah, but this is for -- >> and i'd rather have mexican food than -- >> would you like chipotle for life? >> i've said it the worst mexican food is great. >> let's talk about commercial real estate this morning because that market making a huge comeback posting its strongest quarter of performance in seven years. our next guest runs cbre group the world's largest real estate -- servicing company by revenue. it's ranked number seven on the barron's 500 list. the stock now up over 20% year-to-date. congratulations for that. joining us now is bob sulentic, president and ceo of cbre group.

here's the question. we keep talking about how we can't really figure out what's going on with the consumer. the economy is not really growing. and yet not only is your stock growing, but there's actually real growth in the commercial real estate. what is happening? what's the disconnect? why are we seeing that? >> well, there's a few things going on. what you're talking about when you reference growth in our sector there is i think rental rates are going up. >> right. >> occupancies are going up. there's not a lot of new development going on in the commercial sector so offices, industrial retail, so what you're seeing is a good environment for investing in real estate. and investors are doing well. developers are doing well. >> one of the things i notice, big boxes are doing well. i thought the big box was over? >> no. big boxes are doing very well. and that's tied to the whole e-commerce situation we're seeing now. they're situating these big boxes near hospital areas where people are buying through e-commerce so you have same-day or next-day delivery and there's been 16 straight quarters of

increase in occupancy in big industrial boxes. rents are going up. >> we talk about real estate. we're talking about it on a national level but real estate is always local. where is it working, and particularly where is it not working? >> well, commercial real estate isn't necessarily local. i would say today it's actually international. you see a lot of capital coming in from around the world in commercial real estate. it's generally working well. for the last two or three years you heard a lot of capital flowing into the main markets like new york and san francisco, the gateway markets. what you're seeing now is a lot of capital flowing into the secondary and tertiary markets. there's been more capital flowing into those markets. >> give me an example, a couple of surprises market. >> capital flowing into pittsburgh. capital flowing into denver. atlanta. smaller cities even than that. absolutely. >> and that's -- and on a industry bray sis, that's a function of what? >> it's a function of the fact that there's a lot of capital around the world. >> right. >> wants to come to the united states.

they like the dynamics associated with commercial real estate. the fundamentals are improving. it's a hard asset so there's an inflation hedge there. and there's not a lot of new development going on and the interest rates are relatively low so you have an environment where it appears that's going to be stable for a long time. cbre did over $200 billion worth of transactions last year and moved a lot of cap around the world and into the united states. >> okay. bob, thank you for coming in this morning. >> good to see you, andrew. >> appreciate it very much. >> coming up after the break you won't believe what one business executive did to prove that his product is the real deal. and, the video's gone viral. and later we've been telling you about golf's troubles lately. can the game actually learn a thing or two from what's happening in tennis? ace analyst former top coach brad gilbert, my 20-year friend, also coming up to tell us why his sport is serving winners right now. searching for trade ideas that spark your curiosity tdd#: 1-800-345-2550 can take you in many directions. tdd#: 1-800-345-2550 you read this. watch that.

tdd#: 1-800-345-2550 you look for what's next. tdd#: 1-800-345-2550 at schwab, we can help turn inspiration into action tdd#: 1-800-345-2550 boost your trading iq with the help of tdd#: 1-800-345-2550 our live online workshops tdd#: 1-800-345-2550 like identifying market trends. tdd#: 1-800-345-2550 now, earn 300 commission-free online trades. call 1-888-628-2419 or go to schwab.com/trading to learn how. tdd#: 1-800-345-2550 sharpen your instincts with market insight from schwab tdd#: 1-800-345-2550 experts like liz ann sonders and randy frederick. tdd#: 1-800-345-2550 get support and talk through your ideas with our tdd#: 1-800-345-2550 trading specialists. tdd#: 1-800-345-2550 all with no trade minimum. and only $8.95 a trade. tdd#: 1-800-345-2550 open an account and earn 300 commission-free online trades. call 1-888-628-2419 to learn more. tdd#: 1-800-345-2550 so you can take charge of your trading. but parallel parking isn't one you do a lof them.ings great. you're either too far from the curb.

or too close to other cars... it's just a matter of time until you rip some guy's bumper off. so, here are your choices: take the bus. or get liberty mutual insurance. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. call liberty mutual insurance. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2.

is now time for the bissell commercial that will make you cringe. a bissell canada executive standing behind the company's new vacuum, and eating off a subway floor to prove it. in the commercial, he carries the vacuum into a subway station in toronto, then he cleans off an area of the floor, and eats some italian food while commuters watch in horror. the company wants to prove how

well it thinks its new product sanitizes. one big caveat, and it's a big one. the commercial was shot on a subway platform that has been closed for a year and is basically a filming location for movies and tv spots. >> if that makes you feel any better. got to do this story again next week when becky gets back. for me i'm not a huge germ phone. and it's i five second rule andrew. >> but it's like he willous. what is -- >> that's pasta. >> just head that. >> it looks like -- oh, oh! >> that is something, though. wow. great reactions from the people there. coming up breaking economic data. jobless claims, and gdp is next. you know the five second rule, right? >> i know. we have it. >> then later the success of tennis and what golf might be able to learn from its growing popularity. i guess we keep selling it that way. but the u.s. open is happening ten miles from here.

speaking of tennis last night at the open, i told you this maria sharapova moving to the third round with a win after she lost the first set. her boyfriend and seventh seed grigor dimitrov won his match beating ryan harrison. and he will move on to the second round on the men's side as we head to break, take a look at u.s. equity futures. e. my golden years will not just be gold plated. i had 3 different 401(k)s. e*trade offers rollover options and a retirement planning calculator. now i know "when" i'm going to retire. not "if." [ jackhammer pounding, horns honking ] [ siren wailing ] visit tripadvisor miami. [ bird chirping ] with millions of reviews, tripadvisor makes any destination better.

welcome back to "squawk box." more trouble in the world of retail home furnishing retailer williams-sonoma shares trading sharply lower this morning. >> wow. >> earnings and revenue matching wall street estimates but the current quarter guidance fell short. must be -- >> explain that. >> really short. because we're talking about premarket that stock is off 11%. almost 12%. >> they sell housing related stuff. >> pottery barn, too, everything. sure. >> what's going on there? >> this is the retail story. and that -- i would even argue that's a little bit of a luxury story, too. maybe it's an operations issue. >> and then shocking news. this morning on a billion dollar icon, and it's blowing up on social media. hello kitty is not a cat. >> what? >> no! >> what do you mean it's not a kwat? >> in an interview with the "l.a. times" the curator of an

upcoming exhibit on hello kitty in california said that the icon is, in fact, a human girl. >> no. >> hello kitty -- >> with whiskers? >> hello kitty's official biocalls her, the biodoes, as tall as five apples, and as heavy as three. a bright little girl with a heart of gold. see, i -- >> with whiskers and cat ears. >> i still think you could say a bright little gear in an endearing way about your little cat, couldn't you? >> it's a kitty cat. >> are we sure that means -- is this official or is this your guy's interpretation. >> it's called a kitty. hello kitty! >> did you just make this up, greco? where did you see it? >> is this made up news? >> i'm not sure. you know -- >> it's probably in the "los angeles times." >> that it's not a kitty. >> all right. >> we are just seconds away from jobless claims. and second quarter gdp. it is an icon. there are people that share

shirts -- >> they're crazy about hello kitty. >> almost like the bronys. >> if you're in cool -- >> santelli is standing by at the cme and liesman is here. rick the numbers, please. >> the numbers, please. 298,000 on initial claims. so let's see, it was 298. so that would be lateral. but they added 1,000. so down 1,000 from 299. continuing 2.52. let's get to the biggie. actually, an improvement. 4.2 gdp. 4.2 on our second time around the block on second quarter gdp. and that is an improvement. and it was getting a little dicey there. you had the trade deficit. you had inventories. all adding or minusing. give you a little historical perspective. how many 4% handles have we had recently? the most recent outside of this one was the third quarter of 2013, at 4.5, two quarters later

minus 2.1. we go back to december of '11 the last quarter of course 20114.6 that was followed by 2.3 and 1.6. so listen this is good news that we clung to that handle. better news would be if we have some type of very tight averaging process that keeps us close to those numbers. let's look at gdp sales, it pops at 2.8 versus 2.3 corporate profits for q2 really improved from minus 16 in change to up 8.3 so you know maybe it's better to look at things like debt versus taxation. then debt versus gdp. a lot of new metrics in this day and age we live in. no matter how you slice it. no matter how much you believe in all the granular observations this number is definitely an improvement and we all hope we see many more quarters like that. i'd like to see debt go away. i'd like to see japan have a decade that isn't lost and of course, europe, you know, the more they talk about qe, and the

more they talk about deflation, and then you look at their interest rates. i don't know. i think that the process of how they're trying to cure their ills is probably the process that brings them dropping prices. back to you. >> okay, thank you for that, rick. for more on the numbers we're going to get steve liesman who is back at the stable. what do you make of this? >> i think it's hard to figure out what the trend is. rick was kind of alluding to that. you did a minus 2.1. now you did a 4.2. you know, is the average three? or is it back down to a positive two. and i think that's really the question that consumes the market right now. if you're going to three which is where the fed has their forecast right now, it's an upward shift. you can expect better growth. you can expect all kinds of good things to happen from that. i'm interested in the corporate profits number turning around. it's a separate number from the s&p 500 number to all economy profits number. everything's a turnaround from the first quarter and honestly, i've spent a lot of time in jackson hole trying to figure out what happened in the first quarter.

i don't have -- weather doesn't explain it. >> weather is not it. >> definitely piece of it. it was a piece of it. but it was just too much. >> steve yesterday we had someone on who we he told me historically what where does the ten-year what is it supposed where is it supposed to trade the yield based on gdp? nominal gdp, what's it supposed to be? >> right around it actually. nominal rate. >> we decided it was trading based on european gdp. >> it could be. i mean, if you do -- what do you want to do? real gdp is going to be like six? >> because around -- wouldn't that -- >> that way you could give the fed cover, and not say that they were too low because it's not -- we could be growing at 3% or 4% here and still have historically low rates because of the distortion of what's happening over there because it's a global economy now. >> so, it's -- draghi is going to help you along in a couple of ways. first of all as they withdraw the liquidity -- the excess liquidity created by qe-3 he's

going to be adding it to the syst system. right now there are two programs on the table the targeted ltro and the asset-backed security which doesn't exist. they're going to create a program and basically subsidize it. then there's the question about quantitative easing and the big, big debate as to whether or not they ought to be doing qe. and that has to do with will it have any effect. when you think about where the german yields are or the italian yields. here's something someone told me the other day, a former european central banker i spoke to, if they do qe on a proportional basis, right, based upon size of market, size of economy. >> right. >> what percentage of qe will be german bonds? >> you're asking -- >> i'm asking you a question. >> i assume a huge percentage. >> 30%. >> so if you want to think about the politics of that, let's say -- let's say the fed bought state bonds, they'd have to buy 20% of new york bonds. how would like arkansas and california --

>> on a proportional basis. >> how else would you do it? >> is santelli -- >> is it going to be a fair program -- >> how else would you do it? how could you be unfair about it if you're the european central bank? >> rick has gone. i was going to try and get him -- i could get you started, though. you know, i made the point the other day -- >> you're wearing that pink tie today? >> still kinder gentler. guys like david len hart they can have no idea about anything and still write a column. >> pretty good. >> sawed story the other day. they can take a cheap shot and no one can do anything about it. the other day he was saying things really have changed in the sampling of employment numbers so that they are skewed a little bit weird, not for the reasons that were said before the election. but in the first paragraph, he took a -- made it a point to take a shot at welch saying the whackiest idea ever put forth was prior to the election by jack welch. number one, welch put i think there was a question mark about

it. and he was just talking about in total, participation rate. part time. all the different things that skew these numbers now. and my point, you see what i'm saying -- >> i don't because i think jack welch was off base. i think jack was way off base. i have high regard for jack -- >> here's my point. this person -- >> wrong, wrong, wrong. >> the same way that if you accuse the irs of having a conspiracy by targeting certain organizations for additional scrutiny, it would be the same way to say that that's a wacky idea. as if it could never happen. we now know it can happen, steve. it absolutely can happen. >> i see what you're saying it can happen. >> just to be a smug journalist to all of a sudden say in hindsight that there was no truth to it -- >> but there was no truth to it. >> really? >> there was a gao report on it. >> what about the guys that decided not to go to work that day to actually get the sampling. they were just writing down fake numbers about whether they actually asked people -- >> you want me to go through why? >> no, i don't. i'm just saying that they are

government employees. lois lerner was a government employee and you can't assume there's not individual bias in a lot of these numbers. does it feel flush to you right now, this economy? does it feel like 6%? >> it does not. >> 71% say the country's going in the wrong direction. everyone's working part-pmi. >> you're saying they're still cooking the books? >> i'm just saying to be able to write in print that this guy's wacky and dismiss it as a ridiculous idea, it's as relevant as anything this guy's -- >> eight days trying to run down that story that came from "the new york post" -- >> why don't you spend about eight days trying to run down what happened to that blackberry she had -- >> the irs? that's not my beat. i'm trying to figure out because it happened to the irs it happened -- >> it's no reporter's beat in mainstream media, unfortunately. why don't you do it? >> it's been proven that there was no conspiracy. >> let's be clear -- >> oh, okay, so -- >> oh, it says rick -- he had the message the im here.

i wanted to get him involved. he's already gone. trying to stir things up, steve. >> for what? >> up next. >> for what? >> up next -- >> i'm going to get an e-mail from jack now. jack i think you're great i just think you're wrong -- >> he doesn't, jack. >> -- a conspiracy. >> there's no conspiracy. >> they're all government employees. why wouldn't there be a conspiracy? what can golf learn from tennis when it comes to slumping participation? speaking of participation rate. oh, don't show my swing. from ratings to attendance, to dollars spent it's been a scratch for golf, and nothing but aces for tennis. that story is next. oh, good writing. check out this video. the coast guard plucking two men from the brink of niagara falls. the two were less than half a mile from the edge. their 19 foot motor boat was disabled and anchored but they couldn't get to shore. okay. let's check out the futures. back to business news. we're down about 60 points, now 57 points is what the indicated opening is. what if there was a credit card

where the reward was that new car smell and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com

open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm.

what can the golf industry learn from tennis when it comes to try to get exciting again. this is what robert frank has been trying to figure out. he caught up with some of golf's biggest names. everything ebbs and flows, robert. i'm not worried. anyway. what can you tell us? >> well, joe, it's another amazing day here at the u.s.

open in fleshing, queens. over 700,000 people expected to come to watch two weeks of tennis here. ticket sales expected to top over $100 million. tennis is in a bit of an upswing after the big slump in the mid to late 1990. so we asked what can tennis teach the game of golf, which is you guys have been covering is in a bit of a slump, and we got some answers from the great roger federer, who is one of the favorites to win this tournament. >> long time ago we decided to go global. which was a risky thing to do. golf is still very much america based in terms of the big tours, the three of the four majors are still played in america. where in tennis we play them in australia, in france, in england and then here in new york. >> guys some other things that golf can learn from tennis, starting early tennis like golf is kind of hard to learn how to play. a new program called quick start uses lower tennis nets, smaller rackets. the usta building thousands of

mini courts for kids. also affordability. there's a new website playtennis.com which lists clubs offering free tennis. and of course, most importantly, it's about great players. and thins dynasty that we're seeing in tennis with federer, rafa, djokovic and murray, these four guys alone, 36 of the past 38 major titles. have come from those four. >> the product needs to be good. we have good characters, good players, i think it's really, really interesting times right now in tennis. >> yeah, and talk about interesting times. today we're going to see the 15-year-old phenom from san francisco, bellis play. that stadium -- that court is going to be packed once again. you've got 12 american women actually into the second round. and a number of american men. you still got isner you've got sam querrey. u.s. tennis not dead at the u.s. open, guys. >> all right. robert, but, we're going to talk

to b.g., my friend brad gilbert about u.s. tennis and i can draw some parallels, b.g., brad gilbert, tennis analyst for espn, former professional player and coach, 20-year friend. look at you. i wish you were in studio. you probably couldn't get out there in time if you were to come out to engelwood. but next time. >> next time, buddy. i was at the courts last night until 1:00 in the morning. got back to city 1:30. but to be on with super joe i'm not missing it, and you had the human brain there, as steve you had him a little bit flustered, i liked where you were going. >> i know we are simpatico in a lot of our thinking b.g., but you know, i was shocked, but i was also i thought it was kind of cool the last grand slam by an american, you were coaching him, and i was sitting next to you, and it -- >> right there. >> andy roddick. it's been 13 years which might say -- i mean i would think that would hurt tennis. but maybe roger's right.

it's international so we love djokovic, we love nadal. we don't care that they're not american. >> it's only been 11 years. but it will be 13 soon. >> is it? i saw 13. >> 2003 you were sitting next to me when roddick beat nalbandian and beat ferer in the final. but to me the four guys you're talking about, the big four, nadal, murray, federer and djokovic, they're so global. obviously as an american we wish that we had an american superstar. but i think that people don't even really care that nadal and federer, where they're from, they just love the way they play -- they're great feeder, they're great athletes and they just transcend the sport, and what the guy is talking about is so true between tennis and golf at the moment the quick start program for getting kids involved, and it's about having fun. keeping the cost a little lower. and the big thing i'm sure golf will try to address is that it takes too long.

kids now it's the bada bing bad abum generation, everything they want to do is faster. and golf does take quite a long time. >> is there any young american phenom that you think is on the court -- >> brad that's the three-name guy that you always message me about -- >> are you andrew, are you ross -- >> i'm b.g. friends -- >> just became friends. >> to me, we have a few young players that are 17 and under. and i think that's our big hope, there's a young fellow he lost the other day in the first round of the open, he just turned pro from rhode island named jared donaldson. there's a kid from maryland from college park, maryland, a great story. his dad was a janitor at this tennis facility in college park. they let his son start playing at three years old, francis

tiafo he's now the best american junior at 16, and i believe this guy that's a huge, huge hedge fund guy is behind his success, helping him out a little bit, so we have a lot of good players 17 and under, whether or not they will take that next step kozlov another young american 16 is the second ranked american junior in the world. where we've had a little bit of trouble is making that transition from being that good junior, to that good pro. that's a whole other level. that's like being kind of like a stock to being a great stock. >> you and -- i say you and andre, but obviously andre won the grand slams but you were there for six of those, right, and a gold medal? you were coaching him. and then you even coached andy murray, who's not american, but he won finally won maybe what's missing, are you going to coach again? >> well, you know, the older i get the better i used to be. i always say you know, never say never. tv is great.

you know. can't lose any matches. can only make a couple of goofy calls sometimes. but i'm really enjoying, you know, the opportunity that i've had in this sport since 1980. i say about everything, joe, never say never. but i'm really happy doing -- >> i like what you're doing now. i remember -- i mean i was nervous enough but i remember your leg moving watching andre or watching andy. it wasn't pretty to watch -- >> no, always wearing black. i was keeping it together. keeping it cool. >> it's hard. you're dying inside a lot of the times when things are happening. it's hard. it's hard to be a coach and watch. who are you long right now? who would you buy if they are stocks right now. >> the 17-year-old super joe you would love this young fella, he is an unbelievable athlete. and if i'm putting a rating on him, i'm putting a strong buy you're going to get great value, this kid i think in four years could potentially be winning slams. >> djokovic, i mean i've seen

him where i thought he was going to lose. and he digs so deep sometimes. you're long. you got to be long him. he's the best player in the world, isn't he? >> at 27 years old i still think there's value in djokovic because i think that potentially, he's going to play very strong into his early 30s. i'm putting a strong buy on djokovic. even though it's a high-priced stock. >> federer is too old but you still like him. >> no way is he too old. it's like saying apple stock is too high. any time you say a stock is too high it can go higher. a lot of times when a stock is at its low and it's bottom low you don't think it can always go lower. thing with the fed now you're going to get an unbelievable dividend. you're going to get your double your average. he is on your big 30s, and he's going up. >> all right. and then this is a growth stock an emerging market, frontier market, cc bellis. >> this one would have started the other day, joe, as a penny stock. it's now, we're into the dollar

signs. her dad runs a huge hedge fund in san francisco. she lives in the most expensive zip code in america,@erton. this girl's got a bright future playing out on court 17 today, for a small girl. i saw her play the first time at 12. put a strong buy there. get out there. support the young american today. it's a fun thing to see. first american 15-year-old to win a match in the open since 1986. i had the fro back then, short shorts, high socks. nour it's the long shorts, no socks. >> that was so much fun. you do -- you are good at tv, my word. you can do business news too. what's the big mats today? >> williams, djokovic, murray's on, and the big news is the young american, cc bellis, all over espn today.

we make the storys happen, but you backed your boy steve in the corner, didn't get santelli on for the yelling match today. >> you do watch. i love you, man. maybe we need you again before it's over this year. >> i can talk stocks any time, buddy. >> see you. >> take care, buddy. >> walk the walk. >> he can. >> talks the talk. >> coming up, surf's up in california, epic waves hit the golden state fueled by hurricane marie. dangerous for swimmers, a dream for surfers. that story and more when we return.

you want to cut through the noise of an overwhelming amount of analysis. [ all talking ] you want the insights that will help you decide which ideas to execute and which to leave behind. you want your trades executed in one second or less, guaranteed, and routed with institutional-quality technology. look no further. open an account and find more of the expertise you need

to be a better investor.

welcome back to "squawk box," shares of williams-sonoma trading sharply. joining us, the retailer for sun trust. what do you think? what is the company mainly tied to? housing? is it luxury? what is it? i thought it was high end kitchen stuff. what happened, david? >> yeah, hi, good morning. well, it's a combination of higher end kitchen, pottery barn, home accessories, furniture, things like that. >> what happened? >> it was a good quarter, the stock got ahead of itself, up 10 % in recent weeks, so they

actually, you know, hit the number, would have beat the number if not for a higher tax rate, but they kept the change for the year, not exciting enough for folks. >> so expectation they were going to raise guidance? >> you know, there was expectation they would beat and raise, and, you're not seeing that right now in retail, but that was the expectation. >> i still don't think that would do that, higher tax rate would not cause eight points. >> the other aspect to this in addition to the stock ahead of itself, there were optics with the growth margin. the company over time can adjust its pricing and/or catalog circulation depending on the environment they are in. this quarter they took pricing down a bit to show on the growth margin line causing concern. we've seen it in the past, and it's not a permanent condition, but causes volatility in the stock. >> i guess if we try to extrapolate to the consumer, this still makes it looks like things are just in the flush now. macy's and a lot of other

retailers, and now this one is thrown in. tiffany was good, but rich people are doing well, is that it, david? >> well, definitet tt tt tt tty state, and things will get better with back to school. >> back to the long term trend. thank you, appreciate the quick notice you came on. >> thank you. >> breaking news, the talk of the morning, a hot hollywood couple with a money merger. think "tomb rider" meets "billy bean" in france.

i take prilosec otc each morning for my frequent heartburn. because it gives me zero heartburn... annc: prilosec otc the number one doctor recommend frequent heartburn medicine for nine straight years. one pill each morning 24 hours zero heartburn. [ squeaking ] [ water dripping ]

visit tripadvisor hawaii. [ whistling ] with millions of reviews, tripadvisor makes any destination better. your studied day and night with millions of reviews, for her driver's test. secretly inside, you hoped she wouldn't pass. the thought of your baby girl driving around all by herself was... you just weren't ready. but she did pass. 'cause she's your baby girl. and now you're proud. a bundle of nerves proud. but proud. get a discount when you add a newly-licensed teen to your liberty mutual insurance policy. call to learn about our whole range of life event discounts. newlywed discount. new college graduate and retiree discounts. you could even get a discount when you add a car. call liberty mutual for a free quote today at

see car insurance in a whole new light. liberty mutual insurance. a little bit of -- calling it breaking news this morning, i guess. joelie and pit secretly married in france, a notary public denominational civil ceremony, a marriage license from a local california judge who conducted the ceremony in france, and just to make it a business story, reports out they have a

pre-nump. dualing hurricanes on each side of the u.s., warnings of rough surf for beach goers on both coasts. the storms digging up massive waves, marie has spectators and surfers flocking to the beach to see some of the biggest waves to hit the area in some 25 years. join us tomorrow, and "squawk on the street" starts right now. good thursday morning, i'm carl quintanilla, and jim and david off again today. stocks look to sell off at the open despite a nice revision to the 4% gdp number in q2. europe is struggling as reports come in that russian troops move into eastern ukraine wiping out optimism of a deal between putin. a road map goes like this,