history. it's tuesday, july 28th 2015. and "squawk box" begins right now. good morning, welcome to "squawk box" right here. i'm andrew sore kin. we've got to a big day for readers. dr. seuss fans of all ages. the title, this morning, it's called "what pet should i get." and we have more on the rectangle iran dom houses book project later this hour. but first let's get to the market new this morning. take a lack as we see how tuesday morning here is seth itself up for the day. joe mocks me. good morning to you. dow could open up 32 points higher.

s&p up 17 points higher and the nasdaq up 38 points higher. give it a little context. >> give it a little context. the china situation. >> what did it do yesterday? >> it was bad. >> it was bad. >> no today. >> it was bad. >> closed already. >> closed already. >> it had gone down as much as 5% in the morning. >> so they have indicated they're ready do more if necessary. but people don't necessarily believe that they're ready to do more because it can only do so much. and if they truly are trying to open up capital markets and inflow and be more free market orient, the more that they've manipulated, the less it looks like they're going that way. >> right. because then you don't actually trade on fundamentals. you're always trading is the government going to come in or not. >> we've been trading on that too for years now. >> you mean like for banking shares? i mean we don't have the u.s. cogovernment coming in and buying stockmarkets.

>> are you talking about the feds? >> you don't believe that. >> i do believe that. >> you do. >> i believe every other morning we sit here and we say the fed is not going to -- >> it's conjuring up animal spirits through qe and low interest rates versus printing money to buy stocks and giving it to someone and saying here and try and hold this market up. it's different. it's like when we say that other countries -- when we accuse them of manipulating the currency and we say we do it too. >> we do it too. >> that's a cynical view. i going to be -- >> the noncynical -- >> i don't know what's going on. >> here are the other big stories we're watching today. let's talk about chinese stocks. they closed lower. china unveiling new measures. the government said through the agency that does this, they announced the local gft will increase purchases of stocks. meantime they injected cash into

money markets and hints at further monetary easing. take a look. here's the shanghai composite. remember it's two sessions over there. a drop by 5% at one point before coming off the lows and finishing a little bit lower than 1%. looking at this chart, trying to make sense of it here. back in the states it's all about the reserves. they're gathering for the start of the two-day policy meeting. speaking of the central bank check out gold prices. they're hovering once again near five-year lows. expectations for a hike in rates at some point. joe. >> dupont is hitting right now at 1.18 -- actually it's flight line with expectations. that's the number. revenue revenue. $8.8 billion. they had people looking for -- i'm looking.

let's see if we get an organic number versus a forex number. u.s. and canada sales, $4.25 billion. o'parts of the world $1.73 billion. i see -- >> still down basically? >> i see operating number 2 for the year but it doesn't make sense. >> so it's negative impact from currency, 5%. >> okay. here it is. >> yeah. >> it's -- it says operating earnings, for the year and then it goes on to say 60 cents a share in negative currency impact. i don't know if youed a that necessarily. >> right. >> but here's here's the sentence written. i think it's a special for nelson peltz.

this was his issue. even as we address industrywide challenges in agriculture and ongoing currency headwinds which is just what you were referring to. the question of course when you look at dupont is whether you think nelson peltz is finished with this company, is back, and wakes up and is listening to us right now and says it's awful. i'm going go after them and do it all over again. >> does this suggest they're done with the separation of the performance chemical now complete the next generation dupont -- >> i think you might -- do you think he wakes up and theys that? i think you might think about it more than nelson peltz thinks about nelson peltz. you love activism. >> promise you as this was being written last night that somebody in that building -- somebody in that building was speaking about nelson peltz. it's the wi of the world. >> and i'm thinking back on your

cynicism about -- >> my cynicism about the feds propping up the markets? manipulating the markets dare i say? >> there was something called a bernanke put and now it's a yellen put. and then you say it's myth. the minute they saw the market break. >> now you're coming along with me? >> it's not same as china, but it certainly is -- >> if you're sitting in china looking that -- >> i think that the understand pinnings of the math here are currently much more solid than over there. >> that i won'tdy ace degree with. >> they ran up on speculation and excitement and margin buying and the chart supposedly looks pretty similar too. that means there's a long way to go. >> kind of exciting.

>> comparisons to 1929 in the united states. >> what if we didn't have that year 1929. nobody would have anything to compare it to. >> they would compare it to 1904. >> 1904. but 407 after the flat year right? it was up 40%. >> but then 1907 happens. so you have to sort of -- you have to remember yeah you want to be in between 1904 but out. >> it's a new chapter today. >> there were no -- >> somebody might have missed yesterday's show. we talked about 1904. >> more china stuff here. it has to do with baidu. you've googled yourself on baidu. >> you've baidu'd yourself on baidu? have you? >> no. have you baidu'd me on baidu? >> no. i baidu'd myself. it comes up in chinese. >> because it's a chinese search engine. >> i haven't done it in a while.

i used to. they're forced to increase spending. >> a couple of years ago you were baidu'ing yourself? >> i did. >> you were streaming music too. >> becky was too. >> i'm going to baidu myself. >> baidu your name. it used -- >> look at that. wikipedia in english is the first thing. >> look below that. >> it's in chinese. >> do you read that from right to left? >> i don't know. i believe you do. >> i think there's different -- >> you have an imbd. of course, you do. >> i have one. >> wow. >> glenn close show "damages." >> i loved that show. >> i still think of her as alex

what's her face. i don't know. >> baidu's current quarter -- >> the current revenue was out. and bp's quarterly profit missed the mark. taking a pretext charge related to that 2010 spill in the gulf war unto its settlement. bp's also cutting its spending for a second time which we're watching china. we probably ought to be watching oil too. the lower that goes the more disconcerting that gets. you never thought you'd hope for firmness in oil prices. people are saying what's happening. honeywell. buying the utility con sulgs of the meter business. melrose industries. it's an all cash deal valued at more than $5 billion. >> you always have to measure stuff. metering.

i think it's -- >> a lot of it is done now where those guys come in. they don't -- they just send it like water meter. they have a little wireless thing that they send it back. it bills you, tells you how much you've used. >> technological improvements. >> i'm still working on baidu'ing myself. >> did you? >> i did. it's in another language. >> i don't know what they're saying about me. >> it could be anything. >> possibly. >> you can only hope. >> it would be better than what they're saying in english. in see suite news david taylor the widely expected appointment could be announced as early as thursday. he's been the president of p&g's global health and grooming bins since 2013. he's going to take over for

a.g.lafley. expect expected to remain. >> it's a cut. >> suggesting it could be a very big miss. >> it's a cut of a preview because they're talking about increasing weakness. so you might be giving some -- you know some ammunition to activists. it barely hit -- they did hit this current quarter, but i don't know. they've got two quarters left. they even supposed toarily 40 and 56 kreblts. they're going to be light in both of those quarters. that would be half of the next quarter and more of a third of the next quarter after that. >> do you want me to do that? >> you want me to do that. >> you have his number, don't you? >> do you see me make an

outgoing call? >> do you think he gets it specifically to see the dupont number? >> i think so. he's spent the last year of his life engaged this battle, sure, sure. >> okay. >> speaking of battles, let's talk about the battle of the day. will the market meltdown in china overshadow the bank? here now is peter hooper former commit of the the federal reserve board and covering china we have jeff dennis. he's the head of global emerging markets. let me go to you first, sir. china, what do you make of the discussion we're having here and what just happened in the past 48 hours? >> the market got very frothy very rich. nothing like the earlier sector. it was triggered by a number of things. too much supply.

it just tumbled down. even now we don't think it's particularly cheap. so it's probably going to go down some more. it could well go down some more. >> how much more? >> well our kitchen sink throw everything bad it into, is 1,600. what could that be? that would be 30%. that would be the worst case scenario. the other point i wanted to make we don't think it reflects the economy. it was a frothy market that pulled back. similarly we don't think it's going to impact the economy. so it's kind of separate from all of that. >> we had bob iger on yesterday who said the actual economy seems fine. we're not worried about that peace of it. >> i think as nervous about it. we're at 6.8 and that's slightly higher.

>> when you think about what the fed is going to do veeis-a-vis what's going on in china, do you think, for example, commodity prices are where they are because of a slowdown in china? >> no question the economy market has been affected by the weakness in asia the trade numbers have come off and oil prices are coming back down are impressive. we're testing the lows we had earlier this year. but that is not going to affect the fed. >> the fed doesn't care. >> i don't think that this has any -- i mean keep in mind oil prices -- another thing the fed's been wired about is this little bit of weakness in retail sales. our consumers are pulling up tents again. dropping off the oil is a little bit of gaft. so oil is a double edged sword yes, it's lower on inflation but maybe helping the consume ear little bit. the fed needs to see two things.

it needs to see evidence that consumers are continuing on track, that we've got 2.5% growth in the second quarter because consumers are coming back more recently and it needs to see some evidence inflags bottoming. >> and it will tighting in september, in december and in 2016. >> i'm strongly in the september cam snoop camp. >> is that a will? joe says it's a will and a should. >> yeah. >> you have a labor market very close to full em ploichlt feds estimate 5.2. it's 5.5. >> it's time. time for janet to do it. >> absolutely. >> to do it. it's only a quarter point. how much -- number one, how much can it hurt and if they do have to go back down, how much would bit to take back a quarter. but we're not going to get a clear signal today.

she's not going say we're raising rates in september because there are still a lot of negatives to come. >> what if oil went to oil and the chinese stockmarket was down 40%? >> chinese stockmarket down 40% is still up 60% from last year. that's not an issue. i think it's an issue if it spills over big time into equity markets globally and in particular the u.s. >> throw in a greek deal. no. >> i think what commodity prices are doing is they're making people wonder how weak the global economy is. i don't think it's solely china. >> the markets have come down and why the emerging markets have come down they're saying how slow is the commodity and still the feds can raise rates. so it's kind of like a double whammy i think people need reassurance about it even though we'd like it to be 40 for our pockets because people are concerned with what's happening.

peter so right. the trade numbers have been so terrible. >> why would you raise rates if you're the fed? >> that's peter's call not mine. we have the same call albuquerquety way. >> the fed's job is to deal with the u.s. economy and in particular the u.s. labor market and inflation risks down the road. >> we geeshtd to go. here's the one question for you up. doesn't janet yellen somehow have to telegraph to the market this is coming before she does it? >> absolutely not. it's data-driven fed. it's meeting to meeting. they've made this clear. >> you don't think she needs to look at the forecast and say you know what? 20% sthi -- >> fed funds too. >> you don't think that she looks at that and says i've got to somehow let these guys know. >> that's what liesman said. >> these guys will know when the july employment report comes out, the august report. there'll be a shift. you'll have plenty of time to react to those numbers. both fed speak and market

reaction moves those. >> gentlemen, thank you. a story of a chinese investor who lost all his savings. he was about to commit suicide. instead, he traveled to the government. first here's a look back at this date in history. when you get up to 50% off thousands of hotels with travelocity it means you can also afford

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welcome back to "squawk box." we talking about the chinese government. we're joined with a vernal personal story of one chinese investor. eunice. >> thanks so much joe. well, today the buzz and social media was mainly about how investors were losing faith in the government's ability to handle the situation. many of them are waiting for the government to move in to buy shares so that they can get out and also several people including one who i spoke to said that they're all losing hope. far from wall street and the financial capital of shanghai this farmer saw his dream of getting rich disappear in the stockmarket. he began investing in 2008 from

a remote town in southwest china. he lost everything. file so hopeless rngs, he says. traditionally average chinese shun the stock marjt as an unreliable investment. that changed in 2013 when they start grand plan to open the economy. yang put his savings of $164,000 in the bold market and invested his relatives' money too. he bet it all on one stock, a local mining company. when the market climbed to 4,000 points, i realized the risks were pretty high however, government policy affected my judgment. what doomed him was market trading. his broker convinced him to try it. he borrowed $1 million, more than five times his portfolio.

in an ironic twist he now owes roughly the same amount he originally invested. yang isn't along. across the country virtually hundreds of thousands have been caught off guard. many suffered catastrophic losses. he bought a train ticket. he traveled to the offices of the leadership and stocks regulator but was turned away. i don't know what to do. i trusted the government too much, he says. i won't touch stocks again. returning home empty-handed the full weight of the family crisis sinks in. i have ruined everyone in my family. and based on the sentiment of people like yang as well as other investors who have called

our office with their stories, i think that we're going continue to see a lot of this selling pressure despite the government's efforts to try to support the market. incredibly illuminateing story. so many heartbreaking stories. buying on margin. rolling it all into one stock, everything, and them listening to him say i trusted the government too much. i mean over and over again we've seen those. it's just so sad to watch and yet incredibly predictable while the government is trying to prom up the market when the government is falling and then like, wow, they've created this monster. >> absolutely. what was interesting going out there is the mindset of a lot of farmers is that they just always believe that the government is going to be there, the idea like the iron rice bowl like they're

always going to be there. i think for him and for your others that have been calling this office actually every day, people like that really don't understand the concept of markets, that they didn't grow up with markets and risk and so they don't know how to properly i assess risk. so he took out -- for example, he took out a million dollars on margin and when he discussed his portfolio, he would talk about his portfolio as if he had $1.6 million and the full amount of money was his own. so it really shows how the lack of awareness on the part of a lot of these smalltime investors and that the government just made too many big moves without the mindset of these people. >> unbelievable. or actually maybe quite believable. eunice thank you so much. coming up the rise of the machines. a lot of people in recent months have talked about a.i. and how they're a little bit worried.

now elon musk and physicist stephen hawking are calling for a ban on killer robots. but first as we head to breaks, a look at yesterday's s&p 500's winners and losers. >> my mission is to protect you. hasta la vista, baby.

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because a large group of scientists have come out. there's a big artificial intelligence conference goinging on in argentina where they have warned the world that killer robots should be outlawed and stopped. they're worried. artificial intelligence experts. remember elon musk being so worried? >> they're talking about autonomous robots -- >> -- trained to kill. >> what are they actually talking about there? are they talking about -- because we're not obviously yet creating robots designed to kill people. >> drones. >> drones very something. >> they may not know what they're doing. i just saw that mean we were talking about. "x makena." you know what happened. they're like sex pots i know but they do other things. >> stephen hawking, elon mosque

urging the ban of killer robots. >> it's latin for act of god. you've heard it before. ex- "x machina." >> i'm worried about when i'm downloaded. i'm worried. i think i can hold my own. >> you're not worried about this? >> no. >> there's already a movement to ban drones drones period. >> i have much greater worries like nuclear proliferation. >> that brings up a good point. there's been this whole movement. nuclear arms. do you think this is ever going to work? >> we're still 50 years off on this, don't you think? >> what are you talking about? drones are already killing

people. >> the driverless car doesn't even work yet. >> you can't have a machine running on a.i. people with flesh and proto palace.plasm. i don't need it anymore. >> when siri actually got my e-mails correct when i'm actually talking to it then i'll know the technology is there. >> when they're taking each thing out and they tear getting dumber and dumber. it's easy to watch. >> at some point it becomes one. >> we need safeguards. bring up "terminator." talking about behind the times. laguardia is an example of how

advanced we are as a country, as a nation. here's what they're described as a third world airport. four billion later according to the governor. from four it will turn into eight. you have to double it. it looks quite beautiful. they're going to actually finally merge all of the buildings into one. >> instead of having to go to different ones. >> owe now how right now everybody's in a different one. the thick that always gets me about those, then you have those long walking sidewalks that -- the moves sidewalks that look like escalators takes forever to where you're going vchl you been to the new delta terminal? beautiful terminal beautiful. >> i love it. >> except if you are at gate you know 60 something, you might as well walk three miles to get there. >> you don't wear a fitbit anymore? it's good for you. >> travel with some kids and have some bags with you.

you know when the golf cart comes by and you're saying how do i get onto that thing. so this is always the conundrum. >> what's so frustrating about airports in america is we all pay lots of taxes to improve the airports but the way the airport distry bugs fund -- the way they distribute it it all goes to congress and congress distributes it tout -- it's cronyism. if your money went to laguardia it would have been fixed a long time ago but congress gets their ditty little mitts in there. >> i would not -- well i live in new jersey so i go newark anyway. but jfk internationally, that's not a great place either. >> awful. >> that's kind of gross. and newark isn't great, but it is okay. >> the jetblue is blue. they take a long time to walk nebraska. you think 4, you have to double triple? what happens? >> probably. >> they just spent $4 billion.

>> are you allowed to give any work to nonunion? >> it's all union, come on. >> yeah. let's talk an big friend of the union but not as big a friend as bernie sanders, i guess. >> who's that? >> hillary clinton. don't know if you're impressed with the campaign she's running right now. it's tough. she has a lot to answer to. i'm not quite sure she's the campaigner that her husband was in terms of comfort levels. >> who would be. >> yesterday was a classic -- she gets mad and says of course, i'm playing the gender card because there are a lot of things that need to be rectified. but she was playing it again at iowa state. i think we have a shot maybe a quick sound bite. let's see. >> those guys on the other side -- and by the way, they are all guys last time i checked -- sorry. >> so she's trying to slam the other side. all those guys -- because they are all guys.

then she remembers -- then she remembers -- >> gender baiting maybe. >> right. but then she remembers one woman, carly fiorina. but she still remembers that on her side. >> there's only. >> all guy and one woman. so they're tied in terms of all guys and one woman am if you look at the makeup you have lincoln chafry bernie sanders, mark o'malley and webb. four pretty -- >> white guys? >> i didn't want to say that. ted cruz bobby jindal mark cruz. >> a lot more minorities. >> who's advising? >> that's their nature. that's what they do. >> number one, you can't remember there's a woman in the race and number two -- you know what? you're a network guy. this wasn't mentioned on any of the networks. >> call me a network guy. >> you had to see this somewhere

else. >> it's a joechlkt it's a joke. >> what do you mean it's a joke. it's a lousy joke. >> she's a front-runner. >> it's hillary? >> the field is so small. >> we'll see. there's one woman running on both sides so you can't smugly say that that's the situation. coming up and feel good about my side -- >> and play the gender card. >> coming up this is no child's play. the toy company trying to stay relevant as kids choose electronics over dolls. not those dolls. we're going to talk to the ceo. >> sex pots. >> yeah. sex pots again. >> let me ask you. if there was one, would you like a bratz doll or a barbie doll?

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welcome back to "squawk box" this morning. the arizona cardinals have hired the first female coach in history. jan wells. in the preseason she played 14 seasons of pro football mostly in a league called the women's football alliance. >> that's you do like that? one woman. >> breaking that nfl glass ceiling. we're going to talk about something similar in a minute. a newly discovered title from dr. seuss hits the shelves today. it's called "what pet should i

get." it's expected to become a hit. they found a manuscript back in his office. they think he wrote it around in 1960 and may still have been playing with the text. can't wait to read it. i love dr. seuss. >> do you like when the publish publishers publish books of people when they're dead and they're no longer alive. this whole mockingbird -- >> they were going to public a hemingway. why not. you don't have anything else. what is it? >> i feel like the publishers are exploiting something that the author may not have actually wanted to publish. >> he's did. for fans that crave any type of thinking from that what harm is it? >> and everybody knows. >> when people read harper lee, they're going know it's an early version. >> harper lee has been quoted a

million times saying she cared very much about the prose being perfect. >> she submitted it. >> and took it back. >> because she was told it wasn't very good. >> get over it. >> bratz is launched a comeback. taking on mattel's barbie with a new look. it's a look at what's acceptable has changed. i think of a lot of thinking from ten years ago were so different today in terms of the way even the way little girls and little boys think of themselves in so many different was. maybe the britney spears midriff- midriff-midriff midriff-bearing makeup wearing

-- >> they're more like taylor swift. >> she's a bare midriff at times be she's successful and knows where she's going. >> thattite right. when we launched bratz 15 16 years ago, it was a dirnts era. no facebook, no twitter, no instagram instagram. it's fascinating. now today's kids boys and girls, are on this social media. >> you say even basically is not the perfect height and weight. if you think about it. now it's not so much the external appearance. you've got engineered bratz, doctor bratz. >> actually we don't have labels like that like they're engineers or doctors. they can be anything they want

that. ire they're independents. they self-express. they say who they are. >> the girls are still pretty leggy. >> they are, but if you look at them, they don't look like real people. they're cartoonish they have big head, big feet and that's intentionally to bring some humor and also -- >> and you've brought versions. i know you've brought versions -- i know it's cartoonish but versions of us. >> there's andrew. >> there's andrew. >> look at the book. >> you have liftings on. >> look at that. i think it's crazy. a camera. what's my shirt. it says hello, my name is andrew do. we look alike? >> the hair is. >> look at the hair. tell us about the hair. >> we need to talk about the

hair. >> this is still real. >> i immediately thought about this because the hair is the most expensive you can buy and i'm looking at that hair. you can wash it you can style it. is there life size models? >> i'm going to look into it. >> let's see joe's version. >> "too big to fail" just fell out of andrew's arm. >> this is pretty metrosexual. >> this is joe and "the wall street journal." >> praise god. he's got an iphone in his hand. what is he reading? >> this is what joe would be reading on the iphone. about himself. it's his web page. he googles himself.

right. i understand. look what's written on "the wall street journal." >> do kids play with these? >> yes. >> can i play with your doll? >> i don't know how that sounds. >> and then since becky's not here today we should do this. becky has her own thing going on here. >> yes, exactly. >> okay. >> so becky has a wsj magazine with the hashtag "girl boss" on the cover. >> it's been going on for how long? that's why -- you've been focusing on that for how many years? >> the launch was in 2004 and we won the case. we took ten years. the only thing pending right now, we have a lawsuit against mattel for a billion dollar. >> you had to remove some bratz

from the shelves in 2009. >> that's right. in the beginning there was a court order that said we have to remove the bratz dolls from the shelves. >> this is a beg relaunch. >> it's a big relaunch? and it's tied in with smartphones and iphones and ipads. >> you say you don't manufacture it but a little girl can customize the type of bratz doll including she can be a doctor bratz. >> as a matter of fact, we have launched something that nobody has ever done in the toy industry. it's called create-a-bratz where kids can go literally on their iphone or ipad or p.c. and they can create them with different eye colors and hair color and fashions. they can label what they want. >> can i go with a suitcase?

>> do you see my eyebrows are super dark? >> this is greats suitcase. very charming. like it. good luck. >> thank you. thank you so much. >> did you make one for yourself? >> no not yet. >> they'll be in target stores. >> create-a-bratz will be in target sometime in -- >> can we set up a licensing fee? >> how much will you pay us? >> coming up turning course. what the technical tells us about the recent summer stock swoon. first as we head to break check out the oil prices. they're lower. 47.08. ooh. stay right there. "squawk box" will be right back.

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we are talking technicals this morning. the s&p briefly falling just below it's 200-day moving average which experts are viewing as a key support level before bouncing back in late day trading yesterday. here to take us through the charts is chris johnson, director of research at jk investment group. good to have you here. >> hey michelle great to be with you. >> three things you're looking at which lead you to be negative on the market. first, tell us about this chart

that you sent us which shows how negative the breadth has become when it comes to the s&p 500. >> this is one of those things where we hear the term rising tide in the harbor lifts all boats. in this particular case we've seen the s&p 500 move to the top of the range since the beginning of the year. fewer and fewer of those boats have been getting to the top of the harbor or going up with the tide. what that means from a technical perspective is there are few companies doing the heavy lifting to get the s&p 500 back up to that range. that means it's going to be harder for us to get back there. the fact that that number is below 50% and declining pretty rapidly as we go through the 200-day moving average means two things. more companies are breaking that technical day and then that 200-day moving average which the general market sees that trend

line, that's one of those that definitely has lights going on on people's radar. >> i countdown five other times in that chart you showed us going back only to 2013 there were five other times -- not that one. the other one, there were five other times it was below 40%, too, and it kept going up. >> you'll notice when that hits below 40% you could say that's a capitulation moment. when we look at the latest trend, this is more of a discerned, slow steady trend. it's not a volatile move of these companies getting whipped around. >> you've got the line showing higher highs and lower lows which is different than the other times it went down. >> exactly, exactly. so right now, unfortunately if i were to look at that six months from now, i would see x. i think we'll see the number of 50 days on the s&p 500 companies down in that 30 range and maybe

down into the 20s. that's where you start to get into capitulation mode. >> we got to jump to your conclusions here which is that your outlook is that you're going to trade below -- explain it to me. >> i'll wrap it up quickly. you've got seasonality of august, one of the three worst months of the year when you look at total returns of the s&p 500 over the last 20 years. the vick doesn't spike once and go away. it keeps coming back. this adds up to a 5% decline that we've not seen in a long time. that's going to scare investors a little more than the headline risks we've seen here. you'll see an opportunity in august to buy lower. >> thank you, chris. >> more top stories, plus quarterly giants merck and pfizer and ford ready to pull

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pfizer and merck and ford set your report. the numbers and instant analysis straight ahead. the warning from oil giant b.p. the company positioning itself for crude prices to stay low. details coming up. classic cars have been a hot investment -- >> the 1961 ferrari gt california. >> we're going to ask the ceo of one of the world's largest collector car auction houses if prices are headed for a crash or still have room to take off. the second hour of "squawk box"

begins right now. welcome back to "squawk box" right here on cnbc. becky quick is off today, back tomorrow. we should tell you overnight chinese stocks have closed lower but at their worst levels of the overnight session. china unveiling some new rescue measures following yesterday's big selloff. are they going to work at least temporarily, maybe for a day until people realize they won't. u.s. equity futures at this hour, dow opens up looks like it would open up about 115 points higher s&p 500 up about 14 points and the nasdaq about 31 points higher. ford is rolling out quarterly

results. phil, good morning. >> these are better than expected numbers thanks primarily to what is a very strong north american market. ford for the second quarter beat the street by ten cents, earning 47 cents a share. the street was expecting 37 cents. automotive revenue coming in at 31.5 billion. you've got the currency issue and that's why you have lower than expected revenue there. net profit of $1.9 billion, think about this guys, up 44% year over year the best quarter since 2000 operating margins, 7.2%, a nice increase from a year ago. in north america, best ever quarterly profit any quarter, not just the second quarter, of $2.6 billion with operating margins of 11.1%. a couple of notes on key markets in asia pacific, best second quarter ever earning $192

million. north american pricing is driving the profits right up $745 million. the guidance is unchanged for the full year although they do expect to do better in the second half than the first half where they made $4.3 billion. guys i thought i would save perhaps the most interesting nugget for the very end. ford is now lowering its forecast for automotive industry sales in china, the world's largest market when you add in passenger and commercial vehicle sales. ford is now forecasting negative sales for the year. they were expecting 24.5 to 26.5 million vehicles to be sold overall in that market this year. they're now saying it's going to be between 23 and 24 million and just for a point of reference, the pace in the first half was 23.8 million. there you have it guys. ford going negative for the year, for the industry in china. we all know what's going on over

there in china. back to you. >> the stock market in china is not supposed to affect anything else but the more stuff that comes in makes you wonder. let me talk about pfizer. they just reported the do you component had a better than expected current quarter number. the estimate was for 52 cents. i think the company managed 56 cents. however, for the year it's forecasting 201 to 207 and analysts are still at 204. they've already beat by 4 cents. 51 and 51 is expected for the third and fourth quarter. they beat by four so they do see a range of 201 to 207. the revenue number at pfizer was above expectation. it was 11.9 billion. the expectation was 11.4. if you look at what the strong dollar has done you can look at a couple of these numbers. for established pharmaceuticals around the world, it was down 22%. you got to think a lot of that

was probably dollar related. their new stuff, global innovative pharmaceutical revenue was down 1%. the company is saying it's pleased. it's talking about a strong performance to date. it has an improved business outlook, and the stock at this point is called higher as you can see, up about 65 cents. so the report is being well received. we'll keep an eye on it. i haven't had a chance to look at merck yet. >> they say they're raising the mid point of their 2015 guidance range. >> merck said that? >> yes. >> the estimate was 81 cents. looking for an adjusted number for merck. i think that's -- is that -- yeah, 81. what's the adjusted number? i see they're saying fiscal year adjusted 345 to 355. 345 is where the analysts'

expectations are at this point. a nickel ahead. 86 cents. there it is the adjusted number. i think it can use sales for revenue. sometimes you can't. 9.8 billion was the estimate for revenue for merck. >> they do highlight that they had a 7% negative impact from the currency. >> that's nice that they break that out. 2015 revenue scene between 38.6 to 39. that is below. 39.7 is what people are expecting. 39.8, the very high end of their revenue estimate could be achieved if they hit the high end. then they break out all the different sales and analysts have estimates for all of these. >> they also say that they have

a 7% impact negative from acquisitions as well. so something not being -- >> yeah. >> but pharmaceutical sales were down 6% and probably most of that -- >> animal sales they say are also down decrease of 4%. >> that's probably a global business as well. >> right. >> animals need pharma, too. >> it's getting hurt by the dollar. let's tell you about other stories we're feeling. b.p. saying that low crude prices are here to stay. ceo bob dudley said company positioning itself for a period of weaker prices. the company reported second quarter replacement cost loss of $6.3 billion. that's a measure that takes into account changes in the price of oil as mentioned earlier this morning. dupont reports across the tape in the last hour earnings of $1.18 a share. that matched wall street

expectations but the revenue fell short of estimates. we talked about what nelson pelts thinks about all of that. >> the company cuts its forecast for the year. >> so this is going to be -- i think you could start hearing the drum beat all over again. >> from merck and pfizer they're both higher and i think you have to say that it's trading on what they were able to manage on earnings per share on the bottom line and maybe we get to the point where -- because we've been talking about how revenue is not going to be up to par because of the strong dollar. maybe sooner or later the street starts putting less emphasis on revenue because it's going to be affected by the strong dollar. they're both up. >> what struck me when we had the conversation yesterday with dom and how you mentioned the one analyst who said these trade like bonds essentially because they've got a nice dividend. if we ever see long-term yields go up, do they become more affected by interest rates than

anything else. if you say i need 3% from merck, i'm getting 2% in the ten-year okay i'll buy merck. but if suddenly now you've got -- you know the ten-year yield -- >> i saw pfizer was up. merck should be -- looks like up as much as a dollar. it's tough to see. the dow closing near six-month lows. our next guest it's important to distinguish between equity market contagion and economic contagion. steve reads, head of j.p. morgan private bank. because the chinese establishing getting hammered we shouldn't be worried? >> this is a market that was up 60% earlier this year. we're off about 30 from that. we're still up -- the shanghai kpos et that is. that is spooking i think, some investors. they're looking at gains in

europe and we're seeing investors lock in those profits. we're trying to separate that from the potential for economic contagion. at this point we don't think the china slowdown really derails the recovery that we're seeing here in the u.s. and as well as in europe. if you look at the exports in the developed world to china, looking at europe and japan and the u.s. it's actually quite small, around 2% of exports going to china. we don't think the china slowdown really changes. >> but the growth story for the world for the last ten years or more was asia and mostly china and it's not anymore, you got a total reversal of what we've been relying on. >> you'rechina is slowing but we're seeing improving growth in the u.s. which we haven't had in a couple years and improving growth in europe. japan is coming back. you're right, there are risk out there. we're watching how does this impact the china consumer.

they have to evolve to a more consumption driven economy and does the consumer start to pull back. what we've heard is that the consumer there is still healthy. we've seen this morning companies are still beating. >> phillip just reported four things when it comes to china, a decline. >> car sales are slowing in china. >> isn't that a consumer headline thats suggests that maybe the confidence isn't what it used to be? >> we think it's reflective in the valuation. at this point we're not overly concerned. we're telling clients to be selective but take advantage of the pullback we've seen in the u.s. across some of our favorite sectors like healthcare technology and financials that are still up on the year and we think can go higher. >> do you give advice on be all in on equities right now or do you still maintain fixed income

exposure? >> we balance our portfolio. >> to what? >> we want to have more equity exposure. we're keeping durations short, preparing for rising rates. on the equity side we're rotating towards sectors with growth. find the earnings growth and environment where earnings growth is going to be tough in the u.s. look at healthcare, technology and financials earnings growth is quite strong we think close to double digits this year. >> how much of your portfolio do you put in there? >> we want to be overweight the u.s., europe and exposure to japan. these regions i think are going to grow the fastest. your point earlier on the core dividend stocks you need to be cognizant of how much you have in defenses versus cyclic kls that are going to have better growth. >> you're going back to the reference where i said merck -- can you double-check the yield on merck? it's higher than the ten-year at this point is this. >> what healthcare gives you --

you're right in telecom and consumer staples but healthcare is the perfect balance of yield and also demographic trends pipeline trends. that's why we like it and we still like it. >> are you convinced long-term rates are going up? >> our view is that the fed will hike in december. >> but that's short tirm. >> long term rates i think will go higher. it's not a concern of mine in the short term. >> when you look at what commodities are doing -- >> it's telling you that they're not going to go higher. from an equity perspective, in the u.s. higher short term rates can keep the financial sector working which is why we like it. >> thanks for coming in. changing the ad 2k3w5i78game, advertising dollars going to social media sites. we're going to do that next. then we're going to talk luxury travel with the ceo of

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welcome back. that's a funny kansas city accent. >> i know. >> futures up right now. not from those parts originally. >> london. >> i knew it was either london or australia. futures up 107. 1.7% down in china and there's a little bit of relief believe it or not, in europe and here. that's all it took to get us more positive than we've been in this country for the past five sessions where we've lost ground. a couple of other earnings of note ingersoll rand earnings and revenue were short of wall street estimates. the company says it markets its industrial segments were softer than expected. d.r. horton with a 28% increase in closings. >> let's talk social media. the key for companies getting their next like may be in the power of the news feed and the time spent skroelg as advertising continues to shift

to social media sites. new report from e marketer projecting that instagram and revenues could soar to more than $2 billion in the next few years. that would outpace twitter and google. here to discuss the winners and losers of the social media ad space is bed lake. is that possible? >> the big driefrs of revenue on a social network are the audience. instagram has 300 million people twitter has 200 million. it's the ad units, the ability to target and the infusion of advertisers. i think instagram is going to have all of those and ramp up quickly. >> right now could you argue that one is simply so much more effective than another in terms of when i actually see the ad which by the way, i'm predisposed to trying to get rid of as quickly as possible. is there one technology or social media platform that seems

to have gotten it right? >> facebook is doing by far the best job. it helps that they have the biggest audience, therefore people take it more seriously. they have a very smart team who are developing lots of ad units that work that help you -- recommend that you download an app, make you show a video and other units. they've got phenomenal data about the consumer which helps people target different consumers with different messages based on who they are and what they like. they tend to be more effective and i think all the other essential networks are trying to learn from facebook. >> we're getting earnings reports from some of these guys. twitter, what do you make of what's going on? is there an effective platform? >> for us and our advertisers it is. advertisers don't really care whether twitter users are growing or shrinking. maybe there's a buzz effect if the users don't grow really fast. they care about enough people and do the ad units work and in general they do work. we're still seeing phenomenal growth. >> any social media ad unit ever going to work as well as what we

use today rely on for so long television? you had a passive person sitting there and for 30 seconds they were forced? >> i think it does. first of all, video is becoming a major part of social media. >> i have never clicked on a video. when i click through a story it irks me that i got to sit through 8 seconds, ten seconds. >> they'll say this lady never clicks on the video so you'll probably doing the right thing or you'll get totally bland ones that target the mass market. >> do you say twitter reaches a different type of person than facebook reaches and tumblr reaches a different person than whatever? >> yes, to a certain extent. you can target based on age and sex and hobbies and marital status and other things anyway but in general, facebook people are there to find out what their friends and family are doing. ads that fit with that mind-set

work very well things like game downloads or humorous branding videos work pretty well with a bit of e-commerce. twitter people are looking for a news feed. quick fire ads tend to work better there. >> how much of it is paid media in the way that you think about advertising versus organic media in that somehow -- i have found by the way that i follow chobani yogurt i don't know why i do that -- >> it came through the feed and you clicked on it. >> they're not paying to send me -- >> they are. when a brand pushes out content and doesn't pay facebook anything very few of those fans see it. to prioritize it in your feed they need to pay. >> if i follow chobani but they haven't paid if they send out a tweet like anybody else -- >> you're unlikely to see it.

2%, 5% will see it. >> twitter pushes it lower? >> yes, it deprioritizes it. >> i have a prioritized feed? >> i would think they would contact my friend and i would see all my friends' tweets. >> when you get a few hundred friends, you get too much. they will work out your frequency of visitors three times a day for five minutes each. they'll say that means you're going to see x-number of units. the rest will be prioritized based on what you look and what you've reacted to in the past. >> if you were a fortune 500 company how much would you bucket towards social media versus google search versus print versus tv today? >> it would depend on the audience but in general i would say probably at least 30 to 40% of total marketing should be on digital versus tv print, et cetera. of that, for a typical company,

just under half would be spent on search and the rest on various social networks websites et cetera. >> thank you for coming in. >> pleasure. coming up vladimir putin making headlines this morning. you won't believe what he said about the embattled president of soccer organization fifa. >> i like how they spell that out in the teleprompter for you. >> nice. plus a basketball team who thinks he should win a nobel peace prize. >> based on other people who have won, i'm not sure he's wrong. and asking taylor swift to reschedule a concert, that story and more coming up. 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors

that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back. when you get up to 50% off thousands of hotels with travelocity it means you can also afford to get up to 50% swedish-er swedish

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outgoing fifa president sepp blatter was in st. petersburg russia for the 2012 world cup preliminary draw and got high praise from russian president vladimir putin. speaking on a swiss tv station, putin said he doesn't believe blatter was personally involved in corruption and said i think people like mr. blatter or the heads of big international sporting federations or the

olympic games deserve special recognition. if there's anyone that deserves the nobel prize, it's these people. some of his economic principles are pretty inven tif you would think. that's not a real nobel prize anyway. >> the economics one, right. coming up living the high life. the coo of ritz carlton joins us with a read on luxury travel. then we're going to talk plastic cars with the ceo of the world's largest collector auction house. as we head to break, take a look at the pharma stocks this morning. pfizer and merck trading. we're going to talk to an analyst in just a few minutes.

welcome back to "squawk box" right here on cnbc. among the stories that are front

and -- the stocks that are front and center dupont earnings matching estimates but revenues falling short. shares right now you can see are down in the premarket. also pfizer earnings and revenues beating the street. the pharma giant raising its full year outlook. plus check out shares of merck this morning because earnings are topping by a nickel. don't miss the ceo ken frazier, he's going to be joining squawk on the street at 9:00 eastern time from merck of course. you do not want to miss that. the houston astros are so confident in this season's playoff chances, they asked taylor swift to move a concert at their home ballpark because it would fall in the first week of the playoffs. wow. the astros haven't been to the playoffs since 2005 but their chances look good. they're just one game back in the american league west. there's apparently no bad blood with taylor swift. she moved her concert from october 13th to september 9th.

>> they moved to a different league to try to get in. they're not american league now. anyway never mind. luxury hotels are at the forefront of the building boom. there's a 46% -- the three pointers. increase in a number of high end rooms under development compared to last june. the ritz-carlton is set to expand its portfolio of 89 hotels with 12 projects under development. the luxury hotel chain was just awarded and awarded and was awarded the jd powers 2015 guest satisfaction, it was number one. herve humler is ceo and he's here to give us the pulse of the industry. thank you. >> thank you for having me. we have a lot to celebrate today.

>> jd power, they give you an actual point total. you've won before. you're winning again but you're 11 points higher. it's out of 1,000. you're 892. >> this is higher than ever been elected by 62,000 ladies and gentlemen, people who go and evaluate all north america. this is not only about north america. you evaluate by global consumers. of all the consumers who have e evaluated, the best in the world. when we look at all the component in our evaluation great food great service, and wonderful amenities, i'm very proud not only for receiving this award but what our ladies and gentlemen believe are the

best. >> there's 8 touch points. you want to be able to get in quickly, reserve something. it's got to be easy reservation process, check in check out efficiency, guest rooms, food and beverage and then obviously the staff. >> my question though is always about consistency. the one thing that's amazing about this hotel group relative to others is they have different types of hotels so some are city business hotels others might be on an island somewhere, but i would actually argue that there's a consistency on the staff which is different than other hotels. >> i'm going to tell you that i suggested to herve a slogan. the worst ritz-carlton is fabulous. >> there is no worst. >> there's actually another expression the worst mexican food is great. >> this is true. >> for ritz-carlton you have to have that consistency or it's not a ritz-carlton. >> it's all about delivering the

service and everything we do especially in the luxury it has to be well defined. it's how you communicate to your ladies and gentlemen daily. what we are going to discuss this morning in your corporate office, we're going to discuss the same service value in beijing, in new york and in moscow. >> you mentioned beijing and we have been talking a lot about china right now and what's going on in that marketplace. there's the stock market and then the real economy. what are you seeing in china right now? >> it's interesting. we just opened our 11th hotel. all suite, 250 room suite. so when we look at the economy today it certainly do not reflect on the chinese customer they're spending on the luxury. >> i'm thinking that the luxury traveler actually are some of the people who actually have money in this market.

>> absolutely. >> you would think that -- >> you're not seeing an impact you're saying? >> we're not seeing an impact whatsoever. in fact, we're looking at a new goal secondary cities anything between 7 to 12 million people. >> that's the amazing thing about china. even the small cities are huge. >> absolutely. it's been a great goal for us and we're still looking at new things in that market. >> you might recall after the financial crises plus we had -- i remember the ritz-carlton location that a business had a meeting at and president obama said something about luxury. but there was a time where, when i talked to you about it there was a question about whether the big expansion in lodging should be in the luxury -- was it going to stay in fashion, were people going to continue to want to splurge and spend money on themselves. once a year if it's a vacation

i don't think you need to feel guilty about saving up to stay at a ritz-carlton. you went ahead with expansion plans and here we are again where luxury is predominant in the marketplace. >> we announce 100 hotels by 2015 and in fact we're going to exceed this number and when we look at the pipeline across asia vietnam, morocco -- >> andrew is like easy easy. >> do you buy older properties and renovate them? >> we'll be able to announce in the next 30 days. most of the ritz-carlton is new but at the same time as a result of our buying we have accessed great destination and great building. then we rebrand. >> how do you think about the mix? the cities and the bigger hotels

which are always going to be the higher margin hotel versus the smaller almost boutique hotel where the margin is so much tougher to really get but says so much about the brand? >> andrew it's very interesting. when you look at small boutique hotels, in fact, we have several of them people, when you look at value, they're looking always at amenities and service and it's not an issue. when you look at the rate of the small boutique hotels they exceed 1,000, certainly the bottom line then you want -- my core destination, we cater to a new customer. >> that was out in the desert wasn't it? unbelievable. i stayed there last year and it was -- the ritz-carlton 20 years

ago has the same facility and it was gone i think for ten years, right? >> it was gone for ten years and we did have access to that hotel with a new investor and we redesigned the hotel, better now. >> are we going to eat and drink while you're here? >> i hope so. >> no ritz-carlton in greece by the way, right? >> we are looking at micken knows. >> that would be great. >> is this french? it's not champagne if it's not french. >> it's french. >> that was a setup. would you like a kra assistant? >> we're doing this an air. >> if we're in france we're not allowed to accept this. i think we're at about $70 right now. in paris it would cost about

$70. thank you. >> the show is going to get a lot more fun after this. >> cheers everybody. congratulations. >> thank you. thank you. >> we'll see you later. nice to see you, thanks. >> you can drink on cable, not on broadcast. >> that's not true. hoda does it every day. >> she actually sips? up next earnings up earlier this hour from pfizer and merck. we're going to dig through the reports with industry watcher barbara ryan next. later, treasury secretary jack lew and secretary of state john kerry will make the obama administration's iran nuclear deal, the case for it today before a house committee. we're going to talk to a democratic congressman who's skeptical about the agreement.

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isn't it beautiful when things just come together? build a beautiful website with squarespace. pfizer and merck revenues both beat the street. merck earnings topped by a

nickel. barbara ryan is a partner at clermont partners. did you have your electronics in the green room looking at the numbers when they came out? >> a little bit. not my day job anymore. >> but in terms of how they did, were you more impressed with one or the other? >> no. first of all, it's been a long long time since pfizer has beat revenues. both companies have consistently been beating earnings. i think this is the second quarter in the row that pfizer has done that. clearly we're in a renaissance for the bio pharma sector. what's leading that is fundamental renovation. we're seeing that in both company's results. merck had a lot of news today, including the acquisition of a private israeli company to compliment their own efforts. pfizer launched palvo for breast

cancer. that's a very hot area. merck announced as well that they filed their hcv therapy which is getting review by fda which we talked about last quarter when i was here. i think there's a lot going on in this industry that's good from the perspective of generating products from the pipeline in innovative areas, not just in biotech. >> are the macro dollar concerns deindicating the revenue number? >> the foreign exchange clearly is having a negative impact on the industry in terms of translation of revenues. i think investors tend to look right through that. these companies are global and they have infrastructure in those countries and they tend to have a natural hedge on their p and l and i think people look to the bottom line. i think the other thing about these companies, the big companies, the mercks and the

fiezers, they're pfizers, they're generating a lot of cash. >> you're a big thinker now and think about buy things. as a big thinker, you saw the oncologists complaining last week. i understand doctors want to help their patients. i think most patients can eventually find a way to get drugs, but we also had the news over the weekend about the cholesterol drugs, the ones that really work that are going to cost 14 or $15,000 a year. it could be millions and millions that might benefit. you figure it's going to be probably reimbursed by medicare and if you just do the math you can break the bank on that. this is just one -- there's going to be other drugs. >> a couple of things. so a lot of headroom has been created by the fact that 70 to 80% of the drugs that we've talked about for the last 20 years are now generic, pennies a

day. there's no question that the innovation coming in which is truly benefitting patients is coming at a high cost and most all of these drugs are specialty drugs, injectable drugs, and they're expensive. i think we see with the pcsk-9s which you're referring to for cholesterol, the initial indication has been narrowed to patients who have a genetic predisposition. >> they told me that wasn't really true. they said that was a bloomberg headline. >> there's two things. i didn't finish the sentence. and patients who are not adequately controlled on current therapy. >> what about the off label? >> doctors are going to be free to use products in patients as they see appropriate and patients will accept them or not. i think there will be some reimbursement challenges. >> if it's off label is there a reimbursement challenge? >> it will evolve in my opinion, like step therapy. so you have to fail on a couple

of generic statens and if you don't get the go on those existing drugs, these drugs provide a tremendous opportunity for patients to lower the risk of cardiovascular disease. >> you mentioned generics do you have a view on my lan? the front page of the "wall street journal" today about how they're now sort of lost as a takeover target. >> here's the tryifecta that we had. teva is being a generic business for over $40 billion, probably a great trade for both companies walking away from milan. certainly they didn't view that as a potential attractive deal. >> that was their view. >> exactly. in the end shareholders are free to make their even assessment. they don't have a gun to their

head to own milan. they've been successful and it's grown dramatically. they're pursuing perigo. >> do they have to overpay given this situation? >> that's a tough one because overpay as determined by whom? at the end of the day if there's real synergy in the combination, i think people are debating that we're getting to a number where bumping much from there may not produce a lot of synergy. >> two years from now would have been a great decision or a mistake? two years from now you'll say god bless heather blurb or a big mistake? >> it depends on what they do next. >> if everyone is eventually going to get heart disease and cost a lot of money in

hospitals, is there any way that these drugs really are cheap when you look at the alternatives? >> this is the fundamental challenge that this industry has to step up to. we got to stop talking about the cost of pills and what the real value to society is. unfortunately, solvadi secures hepatitis c in 98% of patients. incredible. but the conversation was the $1,000 pill and the $84,000 -- which has already come down in price and it will come down further. merck will have competition. but to talk about the cost of the liver transplant $150,000. a lifetime of steroid therapy, 10, 15 years less than the job providing for your family. >> thank you.

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ups posting a better than

expected quarterly profit. revenues falling a bit short. also lower fuel surcharges have hit the company. a ceo will join us at 10:00 a.m. eastern time. ultra rich car collectors will be gearing up for monterey car week next month. robert franks joins us now. do you go out to that? >> i once again will have to do hard duty and go out to pebble beach. nearly a half a billion dollars worth of classic cars will be auctioned off there. one of the big sellers is mecum auctions. joining us is dave majors the ceo. cars have been the best performing collectable, up 16% last year. is it a bubble? can it continue? >> we've seen that happen actually over the last ten years that collector cars have done very well. i think the statistic is the collector car market is up over

400% over the last ten years. i don't see that as a bubble. bubbles are typically caused by speculation that's fueled by leverage. of course when the leverage turns against you there's a liquidation event. that drives prices down. >> but it is correlated to the stock market, the fact that interest rates are at zero. you specialize in muscle cars. those crashed harder than any other part of the market and it recovered fairly slowly. now they're back. how is that specific segment doing and how do you think it's going to do at pebble? >> the segment has been hot for the last four or five years. when we go to monterey mecum auctions, we're taking the traditional ferraris lam better genies. we're also taking a 1970 hemi cuda. >> you sold a muscle car for

$3.5 million. what else is hot? what else do collectors want from those 60s and 70s cars? >> what's hot are the 60s and 70s plymouth and dodge products the challengers, the birds, the road runners. the mustangs the 429s. >> which is amazing because they made thousands of those cars. ferraris they made 50 of the gtos. thousands of these cars and yet they're now selling for hundreds of thousands of dollars? >> hundreds of thousands of dollars. of course conditions, miles make a difference. >> thank you. when "squawk box" returns, mr. leesman is going to go to washington. he's going to tell us why it may not be a september to remember in our nation's capitol. cnbc's exclusive fed survey is coming up right here on "squawk box" when we return.

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shrug off the problem in china? the fed kicking off its two-day meeting today. will yellen signal we're in for a september to remember? steve leishman set to give us the latest in our cnbc survey. plus on the hot seat secretary of state john kerry and secretary of state jack lew testifying on capitol hill grilled on the nuclear agreement with iran. congressman brad sherman set to tell us why he thinks this is a good bad and ugly deal. the final hour of "squawk box" begins right now. welcome back to cnbc and "squawk box." we're first in business worldwide. here are the stories that

investors will be talking about. the fomc gathering in washington today. an announcement set for tomorrow afternoon. we'll get more on that in just a minute. overnight in asia china unveiling more recuse measures. the local government will increase purchases of stocks and hinted at further monetary easing. stocks closer lower but well off the session. they had been down by five percent. >> local government announcing they'll be purchasing more stocks. i love that. say that with a straight face. i guess we bought a few bonds but local governments never went in and bought stocks. >> in corporate news procter & gamble is reportedly ready to name david taylor as the new ceo to run the consumer goods giant. a.g. laughly is expected to

remain as chairman. >> dupont matched estimates but revenue fell short and the company is cutting its full year forecast citing the spinoff of the chemicals unit and weak demand for agricultural products. pfizer beat on the top and bottom. raising its full year outlook up about 1.6%. merck, earnings were above expectations by a nickel but revenues were a little shy. it's up 11 cents. don't miss ceo ken frasier on "squawk on the street" at 9 eastern. >> the two-day fed meeting kicks off today. we have the exclusive results of the cnbc survey. steve leesman is in washington d.c. >> the question going into this meeting is is it the meeting before the meeting where they raise rates and the cnbc fed survey says yes, it is but just barely. if you look at the timeline which is the average dates for each of the major fed moves expected the september 2015 is

still the median call but it is slipping as you'll see in just a minute. the balance sheet is expected to decline beginning in june 2016. that's a month earlier. and the terminal rate in other words, when the fed finally gets to the final place, is now seen as the second quarter of 2018. that was pushed later by a quarter, and that average terminal rate now just 3% which i'll point out is a lot closer to the fed staff's own forecast than the average fomc member is. now to that issue of the rate hike and september slipping back just a bit. 52% of our survey respondents say it is september. the number who are saying it's september has come down quite a bit and moved more into a degrees december camp. you can see in that number they skip over november where there's no meeting to say when the fed hikes it will be a month with a press conference. so you can see what was in september has now moved a little

bit ahead. still the median call is for that september rate hike. we asked people if it doesn't happen this year why won't it and for all you math bugs at home we asked people to pick two reasons why. weak inflation is the number one reason. weak growth is the second one. weak foreign growth shows up as a major worry throughout this survey. overseas growth is the number one threat to the u.s. expansion. finally, i want to show you this chart of where the forecasts have been on the fed. first you can see the average funds we had expected for this year has gone down below 50 basis points. next year 1.41. look at the left of your screen. what you see is how much tightening has been baked out of the equation for the market. back in august 2014 the prediction was for a 90 basis point fund rate for the end of this year. 40 basis points gone. looking at 2016 there was an

expectation for a 2% fed funds rate. now 60 basis points has come out. why has that happened? weaker expectations for growth. also you have a stronger dollar. the way to think about this is the fed is somewhat leaned against the affects of the stronger dollar and lower inflation by pushing later the time of further of the first rate hike. you can read all about this on cnbc.com. >> steve you said earlier if they're going to do september that fed fund has got to catch up to get to the point where it's indicating. has it been going up at all? >> it's just about 38%. we also asked in this survey how much the fed is going to care about that and our respondents don't think it's going to matter much. >> that's what i said. you said that would have to prepare that market to -- they would have to job own it up so they can do it without a surprise.

>> it's the height of my huts pa that i think my respondents are wrong. they say what they say. i think the fed needs to get the market in line. when i listen to what bill dudley says about the importance of the market they have to bring that back. we also asked will the fed signal in its statement tomorrow that the next meeting is the one where rates are going to raise, and again the market thinks not. if the fed is going to do it, they're going to have to prepare the market through a series of speeches in august joe. i don't know how much you were planning to go away but when you do go away bring your short wave radio, listen to the reports on the federal reserve to see if they start to prep the market for a september hike. >> steve, what do you think they're going to make of what we've seen in china over the last couple of weeks with the stock market and what it may be telling us about global growth especially when you join it with what we're seeing in commodities? >> i think the fed is going to puzzle over this notion of how much the chinese stock market matters in the first instance

for the chinese economy, and then in the second instance for the u.s. economy. i think the answer is going to be not very much probably on both scores. we both know, i think, michelle that you're not going to have a huge wealth effect through the chinese stock market to the chinese consumer and you're not going to have a big effect on the u.s. you do have some uncertainty. i think that's going to be fear of the most important thing which is contagion. i think the expectation at the federal reserve is going to be there's a lot of money in china. by the way, there's a thinking that the chinese are very very adept and in charge of their central banking system. i don't think there's a fear there of contagion to the global financial system from china that's going to worry the fed. but they're going to watch it and if europe is melting down at the same time that china is melting down it could be something that puts things off until september. >> our next guest says that it's impossible for us to know because, steve, do you think

it's possible the fed doesn't know because they have two more labor reports. they may not know. bring in a former fed insider. al brodus. it's data dependent and maybe they don't know whether it's september or december yet? >> i think that's right, joe. as steve survey results show i think it is a very close call between september and december. i think the expectation right now probably has to be december. but you just said the key thing. we had two labor market reports and keep in mind that the labor market reports also include the hourly wage data. that's an indicator not only of inflation but also of labor market conditions and any remaining slack in the labor impact. that's something i think clearly the fed is going to want to see. if those numbers are strong i think that will lock it for september. if they're more mixed, then it

could be pushed back to december. but i do think we need to see those numbers and i think they need to see them. >> we've had a couple of people al, make the case that the sooner you start, the less steep the eventual curve has to be so it would be better to start early and get it out of the way. you don't put some credence in that. september, december, it doesn't matter much in terms of the eventual slope of the rise? >> i don't like to link those things, joe. i think that the slope and what happens over the median term over the next couple of years with monetary policy is going to have to react to a lot of things that we don't know now. i would say this about the liftoff date i really would love to see it in september, not because i'm concerned about a big bulge in inflation right around the corner but i'd just like to see us get it off the table, see the fed get it off the table. i think it's a distraction. we need to get past that point.

the fed does as well so it can focus on what really matters. that is the median term outlook and what the fed has to do in managing this normalization of rates. i think they're well prepared to do that. they've been looking at it and studying for a long time. they've been very transparent about it. i think they would agree, they would like to get on with it and they should get on with it. >> it's been like nine years and at this point there's always something that can come up if they don't do it in september. who knows? if they delay it again, sooner or later, she starts looking like hamlet almost and almost like a tragic flaw you're so indecisive. just get one out of the way and then all of this conjecture and talk all stops and then you can decide what to do after that and 25 basis points isn't going to kill anyone. maybe they're listening. >> i hope so. i agree very much with what you said. >> they might have some excuses though, right? when you look at what's going on

with commodity prices do you see that as we don't have to worry about inflation or boy, that's deflation naer and concerning? >> that obviously has to be looked at and studied. the situation in china as well. but i think there's reason to think that the fed will see this as largely transitory and not something that's likely to persist and really affect things over the median term which is what really matters. so it could slow things down. it could -- if the numbers that we get in the next several weeks are not definitive in other words, if they're sort of middle of the road and it's still pretty much an open question as they get right before the september meeting as to whether they should move then or in december, then these kinds of things could make a difference and could push it to december. but barring that i think if the numbers are reasonably strong

september is a good bet. >> thank you, sir. we appreciate it. >> thank you. >> we'll see you soon hopefully. >> i still think it's possible they don't go at all this year. >> i think it's possible too. >> you heard him, they've always got an excuse. >> i think they'll go because i want them to go. you think they might not go because you don't want them to go. you can never print enough can you? you're adding to the income inequality. >> it's my fault? >> why do you want to add to the income inequality? >> i don't. up next she ran martha stewart's empire was the president of abc's primetime lineup. now she's trying to get more women to start their own internet companies. susan lyne is our special guest after the break.

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welcome back to "squawk box." futures right now are at least at this point indicating a little bit of a bounce from a five-session losing streak here

in this country, up 123 now, not too bad. china was down 1.7%. continuing to slide, but it was down as much as 5% in the middle of the day over there. so to get back down less than 2, we'll take it. ups posted a better than expected quarterly profit. revenue is falling short. the ceo of ups is joining our friends on squawk on the street i think in the 10:00 hour. there it is. the arizona cardinals have fired the first female coach in history. jen welter joins the team for training camp. the played 14 seasons of pro football and became the first female to play a nonkicking position in a men's professional league as running back for the revolution. cardinals training camp opens

this week in glendale arizona, that's a milestone. >> she could kill either one of us. >> yeah just call her ma'am. >> we should tell you this morning, aol is leaning in launching a venture capital fund. only 7% of funding goes to female entrepreneurs. joining us now on this and to weigh in on our other news making interview with disney's bob iger susan lyne the former president of abc entertainment and the former coo of martha stewart living. that company is sold and we'll talk about what's happened there. >> going to be a long morning. >> a lot to talk about. first let's talk about women and women in technology specifically which is generationally, how far along are we and how far are we from actually really changing the game?

>> it's still a huge gap between men in tech women in tech. as a result, we thought this was a huge opportunity for us and actually a big opportunity for venture capital. when you look at the statistics less than 10% of all funding goes to women. only 4% of venture partners are female which means decision makers. women are the dominant users of all the fastest growing sites on the internet. we make most of the purchases. there's a whole generation of women coming out of these schools as well as engineering schools who are consumer problem solvers. >> here's the question though is the problem that there are women out there that just can't get funding, or is the problem that women aren't even trying to get funding because they don't think it exists? >> oh, no there are tons of women who are starting companies

at this point. there's a generation who are out there becoming entrepreneurs. they've built really interesting companies already. >> and you think they're being discriminated against? >> you know it is they don't get the access that they need and it's partly because of the way venture capital works. it's not like you can call up and make an appointment to come in to ask for money. you get referred. as a result of that, the people who end up getting in to see most vcs are people who look like the founders they've backed before. >> they all went to school for example together if you're talking about the numbers of women getting mbas, why can't they make those calls? >> look i am -- there are women who are being funded, no question about it. the women we back are also being funded by other vcs, but it takes them longer and it's harder. there's still a big uphill road for them.

>> does a woman have to be the founder, the ceo? what's the -- >> there has to be at least one female founder. we're not saying everybody has to be female and, in fact many of the companies we've backed have got men on the team as well and that's great. mixed teams are fantastic. >> wall street has dealt with this forever. >> yes. >> and you walk on the trading floor today, how many women are there? >> not a lot. >> almost zero. >> yeah. >> when you look at the upper echelons in tech et cetera women make the choice that they would rather stay home with the kids. do you think that's part of the issue or no? >> i don't think that's part of the issue and this is -- we're talking young people. we're talking primarily women who are in their 20s and 30s and maybe up to 40. there are not a whole lot of moms who are going for venture capital, although hopefully that will happen. but right now it is really about

them not being able to either get in to be considered or that the companies they build look different than companies that had been funded before. i'll give you one example. we invested in a company called glam squad that is beauty services on demand. the question that she got over and over again going into vcs is what is a blowout. you wouldn't get that question if you had women there. >> i get one every day. are you confused? >> no. i definitely don't know what that is. once a week the blowout because if you have frizzy hair. >> every day. >> i want to switch gears to a male topic or maybe it's considered more male but now that we have a female coach maybe running an nfl team is not so much. we had bob iger here yesterday

and he made a comment about espn and the potential for it to become a stand-alone network a la being sold the way hbo is not as part of the basic tier which everybody has long believed is necessary and they have tried to protect for so long because of the economic model that is such a juggernaut. what did you make of his comment? was it an off-handed comment, a planned comment? he said this would happen in the next five years. i was now thinking after the interview this fall you might hear about apple doing some kind of television service. are you going to be able to get espn on an a la carte basis? i'm just speculating. >> i had exactly the same instinct watching it. bob doesn't make mistakes. that was clearly very considered, and he was putting it out there as a feeler and to put everybody on alert that this is going to come. in fact, i think he used the

word inevitable. >> right. >> and so i do think -- >> but he did make it seem like it was far out there. >> he did. but i think now that it's out there, it will happen fast. >> so you were the star of desperate networks and because of a loss in desperate housewives, it's not going to happen again. you got to have a curse, sex, you got to only do 12 episodes a year. you got to have a niche showtime or hbo drama or something. >> really expensive, good actors. >> you couldn't do it again at abc. >> i don't think that's true actually. i think that what you're seeing now is that people follow shows, they don't follow a network. they don't care where it's airing and they may not even watch it when it does air. >> downton abbey, no cursing and it's on pbs and it's huge. >> yes. there are lots of great shows on

a variety of networks. there's lots of good programming right now. i love how to get away with murder which is a new abc show last year. plenty of good shows on broadcast television and lots of good shows on cable, and people find the shows. where the good shows are, they find them. >> there's the argument for content again, andrew. >> going back to espn where i was going to go with this show was, does the economic model work long term for espn? if you're collecting close to $7 per sub and 100% of people are paying for it even if you believe only a third or whatever the number is are watching it will a third pay three times as much? that's the fundamental question? >> yeah. and, look, that is the question and i think that's one of the things that they're trying to model at this point in all likelihood. but when you think about -- espn is the one network, the one brand, that is really must

carry. >> cnbc also. >> of course. but i think that the cable carriers are going to be much more worried about this than disney ultimately. >> they could gouge you even more for must-see. >> absolutely. >> before we let you go martha stewart, you look at the arc of the martha stewart, what do you think? does that look like success? >> you sounded sad. >> how do you look back at that company now? >> i think she was a pioneer, she did extraordinary things. she was the first person to understand that you could have a brand that stood for something in the life-style area and it could be applied across multiple mediums. she did a lot of great things. but the world changed. a lot of that empire was built initially on the magazine business which was highly profitable for her.

it's not the case anymore, so she's had to contract some and i think the sale is evidence of that. >> when you think about the potential of what that company could have been, was there a moment, was there an opportunity that was missed when you think about if this becomes a case study at harvard business school one day for women to look at a female-led business like this? >> i think there are a couple of them. one of them that i think is obvious to point to was the indictment and -- >> going to jail. >> and going to jail. it's not that the actual jail part of it was only five months but it was probably three years when you put all of it together from the investigation on. and that stalled the company for a period of time and took her attention away. i think secondly probably not enough investment in the areas that were going to disrupt her core business not enough

investment. >> the lesson is not to have a business around one individual. >> yeah you know i think it's challenging but honestly i think there are companies that have been able to build around that. >> walt disney was built around one individual. >> right. but made the transition. >> we got to go. thank you. >> martha for her brand, i think is back bigger and better than ever. coming up iron mike tyson says he's heading back to las vegas but he won't be stepping inside a ring. we'll tell you what the former heavyweight champ is planning next. same power. which one arrives first? hint: it's not the one on the left. the speedy guy on the right is part of an intelligent system that creates the optimal trip profile for all trains on the line. and the one on the left? uh, looks like it'll be counting cows for awhile. so maybe the same things aren't quite the same. ge software.

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welcome back to "squawk box." here's what's making headlines right now. the latest data on home pricing less than 30 minutes away. economists expecting the latest report to show a 5.7% increase in home prices in may compared to a year earlier. what are you looking at joe, over there? twitter is among the companies set to report earnings after the closing bell. twitter shares have lost about 18% of their value over the last three months amid questions about the company's growth strategy. voluntary ks wagon outsold toyota reporting first half sales of 5.02 million vehicles

compared to vw. toyota has led the industry in sales for the past three years. >> 5.02 is 20,000. >> yeah. >> scientific notations cure-all that. coming soon to a las vegas casino near you, mike tyson. bitcoin atms. the former heavyweight boxing champ is getting into the bitcoin market apparently sponsoring an atm that allows users to convert cash into the bitcoin currency. the plans are to launch in two las vegas locations next month, however, the connection through a separate company has led some to believe that tyson could be the victim of a scam suckered into a deal that promised him millions in exchange for his name and likeness. this is your thing. you ought to be thinking about this. >> back up a second. you run bitcoin and you think

mike tyson extends your brand? what is it about mike tyson? >> name recognition. maybe they shot higher that might be a reflection of who bitcoin can get? what's the deal right now with bitcoin? is it better or worse? >> you were obsessed with it. >> i was obsessed with it at the top. i was fascinated. >> where is it now? >> it's dropped precipitously. >> you had like $5 worth. >> which are now probably worth about $1. >> is it really down? it's bad. there's two issues, the currency itself and then the whole echo system. >> it was going to make inscripted trance,ssactions a lot

easier. >> the view of what's called the block chain technology will be applied in other forms. >> the bct. >> net scape or something. this going to be the first one but it won't be the one. >> we'll see. >> how do you buy things on silk road now? >> i don't know. i'm asking you. coming up the iran nuclear deal takes center stage on capitol hill. congressman brad sherman of the foreign affairs committee will tell us why he's disappointed with the deal the president obama administration wants to pass.

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secretary of state john kerry and treasure secretary jack lew are testifying in front of congress on the hotly debated nuclear deal with iran. here to tell us why this agreement is in his words good bad and ugly california congressman brad sherman. he serves on the committee which is holding today's hearing. it's good to see you. if i were to ask you for a straight up or straight down vote when you get a chance have you made your mind up yet? >> there are are three different possible votes.

one would be a resolution of approval. i've made up my mind that i would vote no on that. i will not vote to approve this agreement. i will not do anything that would cause it to be viewed by the world as binding on future congresses or future presidents. the second possibility is a vote of disapproval which would then go to the president. he would veto it and it would come back. if we were to override that veto, then we would get an unusual foreign policy. congress would be confronting iran, but obama would be on the side of the deal to some extent on the side against congress in that confrontation. the question is not just is this deal the best we could have gotten with congress and the president working together last month. the question is what will we get next month if congress and the president are pulling in opposite directions. the critical part of this deal is that we prevent it from being

in effect in year ten when it would allow iran to basically have so many centrifuges that it would be impossible to stop them from having a nuclear ep with. -- weapon. >> when we played the clint eastwood music at the top of the hour because you've characterized it as good, bad and ugly when i really look at it that almost seems too nuanced. we know there's got to be some good in it for us even to be engaged in the negotiations. we assume we're going to try to get something from it. but then you look at the way that it gets stacked one way or another, and that's where i think there might be a problem. it just seems like we didn't -- seems like they wanted this deal a lot more -- we wanted it almost as much as they wanted it but for different reasons at this point. they don't have to change their behavior one iota and that would have seen as the world's number one terrorists that to do this this would have been something that was part of the discussion. that's what i don't understand, what we wanted so badly to take

that off the table. >> we do need to change their behavior with regard to terrorism and the hostages the american hostages that they are holding right now. in fact my questioning of secretary kerry will focus on that. has he bargained away our right as a country to impose sanctions not on the nuclear deal not regarding the nuclear policy. i realize we have a deal on that, we'll see whether it withstands congressional review. but the terrorism, the support for assad. he's killed 200,000 people and iran has helped him every step of the way. we need a whole new set of sanctions to change iran's behavior in that area. if sanctions change their nuclear behavior enough for secretary kerry to think it's been a good change we need a good change in their support -- in their role in the middle east and we need to end their support for terrorism. >> even the good part that you used to illustrate that there was some benefit, you just said

there's a problem with that because in ten years that goes away too. the good part evaporates. >> the good part is valid for at least a few years, some would argue as many as 12. i do have a stock tip for your audience and that is that there are going to be european firms that want to invest in iran. that will show you which management you should not have confidence in. even if congress does not override a presidential veto and does no the prevent him from carrying out this deal for the next year and a half future presidents are going to be taking another approach and iran's terrorist activity is going to continue and that's going to cause a reaction. those who invest in the automobile sector those who make loans, those who invest in the oil sector of iran those are the managements you want to sell short. >> congressman, it sounds like you're voting with your content, a lot of thought going into this and you're not, obviously, just

going to do the rubber stamp because you're a democrat. we appreciate it and we'll be watching today. thank you. >> good to you with you. the s&p 50 oncoming off it's longest losing streak. our guest, richard bernstein here to tell us why he believes the bull is alive and well. as we head to break, check out the shares of caterpillar, a 52-week low, closed at 76 yesterday. that level has not been seen in at least four years. we will be right back.

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start of payment system stripe getting funding from payment giant visa. the new round of funding valuing the company at a cool $5 billion. stripe creates the back end code that enables apps and online stops to accept payments like facebook and lift is part of the partnership of stripe. they'll take advantage of the security infrastructure and visa will tap stripe's expertise. that's a huge thing with stripe putting them with visa way ahead of some of the other guys in their space. we should tell you google may be giving up on it's struggling social network google plus. the company will no longer require an account as a way to collect additional information and target advertisements. it inflated the user numbers

because if you had g mail you were on it. >> i never found it intuitive. i could never tell if my message was private or if you could see it. >> neither for you, joe? >> you don't have a g mail account? >> a g what? >> e-mail account? >> this is a g-rated show. i don't want to talk about anything g. go ahead. u.s. market suffering a beating in the last several days with the s&p 500 posting a five-session losing streak for the first time in six months. our next guest says we are in quote, one of the biggest bull markets of our career. here now is richard bernstein. he has no middle name. we will call him richard f-ing bernstein bernstein. also a financial contributor. >> thank you. >> we had two big stories in the last ten, maybe 20 years. china is growing and the fed is

easy and they're reversing. >> yep. >> tell me what i should do now. >> let's figure out what's going on now. first of all i think, i hope finally people are realizing that we are at a point where the global credit bubble is truly deflating. in credit related asset classes which i would include kmos commodities in china are underperforming. >> that starts to make sense to me as opposed to what the stock market does in china doesn't matter. >> correct. people have looked at the symptoms. they've seen oil falling, china falling and greece and all these independent events. they're not putting them together and realizing that they're all credit related asset classes that have been underperforming generally since 2008. i think that's the big story in the background. >> we should continue therefore, to avoid credit-related asset classes. >> correct. >> and instead focus on equity-related asset classes? >> that's exactly right. this is why we've been bullish on u.s. equities the past five

years. look from 98 to 2008. what were the asset classes that performed the best over that time period. >> what do you say to the cynics who say the stock market was an inflated credit-related asset because of the fed? >> to some extent that's absolutely true. let's look at the beneficiaries. certainly the energy sector was a huge beneficiary where we had rates extraordinarily low and cap ex exploded. now we have a glut and the companies are left with huge debt. what else? andrew doesn't like when i bring this up but the whole innovation theme. what's going on there. free money. why would you invest in some of these companies if the hurdle rate were 2% or 5% or 10%. you never would. the rate is zero. everybody in the pool, let's play. >> why do i hate that? >> i don't know. last time i was here you gave me a very dirty look. >> focus on the fed. what about long-term interest rates? are they actually going to go

up? that would be what pops the bubble, right? >> that's hard to say because short-term interest will have an impact as well. the key thing to watch as the fed raises rates is what does the yield curve do. if the economy is really as strong, then the whole curve will shift up or steepen. >> tell me what high is for long-term rates. >> i don't know. >> higher. >> my point is -- >> 4 seems like the world right now. >> i don't have a clue. i don't forecast interest rates. but if the curve starts flattening and flattening dramatically, the fed has done the wrong thing. >> because then they could almost invert it. >> if they invert it then that's the kiss of death and you won't hear me talking about a bull market anymore. >> you don't think they go this year, right? that's your wishful thinking. >> what i think is kind -- what i want them to do is immaterial. janet yellen is not calling me

up and asking me what to do. but i think there's a feeling within the fmoc, they have to normalize rates. i understand that. with the nominal growing at such a tep i.d. pace right now, what's the rush? >> earnings is -- what's the word that kids use, andrew? >> meh. >> i'm not sure what percentage qualifies as meh. >> they're not very good. >> they're not. >> changed on the year. >> you have the fed threatening to raise rates. at the same time earnings growth is pretty meh. >> why are you still bullish on stocks then? >> there's a difference between a correction and the long-term view are we still in a bull market. everybody has been looking for the correction. i think if meh gets worse on earnings and the fed continues to raise rates, you'll get a correction. >> meh goes in the dictionary

this year. >> because of this moment? >> because my kids use it and i didn't know what it was, but they put everything on that. you've heard that right? >> all the time. actually wrote in the "new york times" magazine they used to have a little column called five used to have a clol um that was buy things that are meh. about two years ago. i'll go find it. >> thank you for joining us. >> thanks for having me. >> that was better an meh. coming up next the world according to jim cramer who is never meh. we head down to the new york stock exchange. find out what he's watching on another busy morning of earnings. "squawk box" returns with mr. cramer in a moment.

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check this out. a florida family has found $1 million worth of sunken spanish coins and jewels. their treasure includes a coin called a royal, made for the king of spain. phillip the fifth. it's dated 1715 and only a few are known to exist. that is very cool. >> it is but it's 1 million which makes me think there wasn't a lot that they were able to salvage or find.

usually you would think it would be much much more. it's gold. it doesn't need to weigh much to be 1 million. it's $1,000 an ounce. you need 1,000. you'd think it's more than just the weight. >> down to the new york stock exchange i was doing that many my head and cramer already now it was 1,000 1,000. you need 1,000 of them right, jim? what can we talk about? pfizer and america? you have usp coming on. that might be important to look at too. and then there's china. your view was people are watching to see how low they -- how low can you go. >> i think the chinese did it right. they opened low and took it out high, brought out sellers and then stabilized it down one. this is the chinese trying to figure out what's the best way

to be able to get people out, cash the shorts looking the wrong way. they let it come down monday. it was like listen shorts come and get us and now they moved it back up. they're trying to keep it from being an actual multiday crash. my hats off to the way they're trading. i think they could ramp this thing but they're trying to keep it so it doesn't fall apart. that's good. they need a slow decline, not something quickly. >> did you look at pfizer or america? merck? it's almost hard to glean anything from either one of those. >> overshadowing everything is a regeneron deal. they seem to come up with everything every day. you're right about ups. it's one of those quarters where like wow, they didn't screw it up. buy the stock. that's a novel approach the investing but that's what happened.

ups is strong on all lines. they got it right and they could go back to $110. i think people are excited ups has figured out. >> are we going to be talking about china in a month? >> oh yeah for a long time. china is greece with a lot more people, and i think the problem with china is it's so opaque. it's so everywhere and it's so pervasive and you have all the hedge funds that have decided china is falling apart and the government is idiots the hedge funds are ruling. whenever we're down you can watch the futures. when the chinese walk the market back up the futures got a little more positive. the chinese government has to play its hand well over the stock market and i think people who think they don't have game are not understanding they know how to play poker over there. they have a lot of fire power. they're trying to not have the market roll over and they may be able to control the velocity.

they can't move it up but they may control the velocity of decline. >> all right. jim. we have about four minutes until jim is on. coming up, it's being called the biggest smart phone flaw. it can leave 90% of the an droids in use today at risk. at the dealership. nice buick! i guess that test-drive last night went well. actually, i'm still on it. you know, we're test-driving this buick for 24 hours, right?. yeah. so what are you doing? test-washing it. okay, well let me know when you're done, i'm gonna take it test-shopping. introducing the buick 24-hours of happiness test-drive. it's on your terms and a better way to take a test drive. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. those who have served our nation. have earned the very best service in return.

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it's being called the biggest smart phone flaw ever found. about 95% of the androids that are in use today are at risk for the hack. the issue comes from the way the phone analyzes incoming text messages. we're going to say good-bye. thaurk thank you, michelle. "squawk on the street" is coming up. ♪ >> good tuesday morning. welcome to "squawk box." the s&p has not fallen for six straight days in three years and it's trying to avoid that fate today. china lost another 2% or so. s&p home prices at the bottom of your screen