swings. squawk man, christopher, sharing his tweeting. he also says he is losing hair daily and days like this can make or break your year. >> we're all losing it. >> who has more hair, you or andrew you? >> i got your back there. >> thank you. thanks for joining us. more "squawk on the street" is next. >> good morning. ike david faber along with jim cramer. we're live from the new york stock exchange. carl quintanilla has the day off. we are looking for an up open. things can change. europe has been open for quite some time. take a look at the major markets, all of which are significantly in the green. you can see there germany's dax, which has suffered the most of

the three, up about 3.38%. overnight in asia, shanghai came back big-time. as you see there, up 5.3%. the hang seng, 3.6%. the chinese did seem to intervene a bit to help things along in china. as for our ten-year note, we started this week. we were below 2% on the ten-year. no longer. back to 2.20 despite those comments. crude oil above 40. the first time i have seen that in a few days. let's get to our road map. has the market bottomed for now? for good, for a while? another upgrade for amazon. why now is, quote, an attractive entry snoint. >> retail pain continues. tiffany and williams sonoma both disappoint and both stocks are looking down this morning. we begin with stocks on

track to maintain momentum from wednesday's big rally. futures extend gains after data shows second quarter gdp revised upward to 3.7%. that's up from an initial estimate of 2.3%. this comes one day after a 4% jump on the s&p. the dow also posted a gain of more than 600 points. that was the first time it had gained that much in points since 2008. we always come back to '08 when we at least talk about it percentagewise. . it was a lot more back then given the dow was far lower. we had a lot more down days than up in '08. these big movement days that are reminiscent to a certain period. probably the only thing that is reminiscent of that period. >> numbers are bigger, because the averages are higher. you raised a really good point last night in our special.

there is a lot of good things happening. we are not seeing these flow of funds. i would like to explain to people, why are treasuries where they are? we have a great bond guy on last night. he is giving you some insight that perhaps it is the chinese that are selling. now, the euro, the chinese have 1 trillion euros in sovereign debt. they may not be up as big because the euro is down. the chinese apparently are selling much of what we are seeing. they are moving the interest rates more than i think our fed is or you are seeing supply/demand. china is moving out of stuff. then, we thought that china wasn't going to prop up stocks. now, we are buying. >> i thought they were out of the business for a while trying to let the market find its equilibrium. they intervened, 5.3% up for shanghai, down dramatically over the last few sections. >> they want to celebrate the end of world war ii.

>> for the 70th anniversary. >> they are trying to clean up their city. >> the volatility. there is very little stock for sale or to be bought at various times. yesterday, you didn't see any margin calls between 12:30 and 2:00. on tuesday, it sold off beginning at that point. there were margin calls. is this morning, it is all facebook, amazon, netflix following on some news about the real numbers and google still with the fallout of the bolini recommendation and apple. very positive call. >> let's go back to this point you are making on china, the bond market and the stock market, rick reader, who runs fixed income or strategy over at

black rock said it is the equity market leading the bond market as opposed to the reverse, which is often the case. so that's why china, whatever they are doing, if they are selling is having an impact on our rates. or vice versa. >> if they are is heing their 30-year paper, the 30-year treasuries or 10-year treasuries, those interest rates go higher, which is good for the banks, one of the largest groups in the s&p, which was behind yesterday's rally. we want to look at it as tech. the thing that really crushed this market were that all the financials which are such a huge part of the s&p, they get obliterated as if they were tech stocks. dow, 18-month gains. jpmorgan, did you see them? wells fargo, 50.

>> it is a purely domestic bank, the largest. those are here. now, you get to the point that these comments were they thoughtful, not dovish, not one-way. >> i always did want to hear what he had to say about the long island economy. we cut him off at that point. >> on the moves in the market, the overall big moves, it does unsettle people, even when you have a big "up" day to the extent they remember big periods of tumult where we are trying to find a new level so to speak. i don't talk technical at all. is it more concerning to you even though you have a big update as though we did yesterday. more volatility and more down side? >> i feel like we are keying off federal reserve people that talk, lockhart, still in favor of a rate hike but maybe not this one. the bullard decline. it happened friday afternoon. you can crush a market. we are going fed to fed.

stanley fisher speaks this one. >> i am talking to hear people call qe 4. >> that's coming up. that's ridiculous. look, the inventory build is important and on every one on the retail, talking about stock markets volatility. it hasn't hurt retail sells. >> the underlying, as you and i have said, the underlying u.s. economy seems to be fine. you can make an argument that a stronger dollar, lower oil prices, chinese exporting deflation over here are all positives for the u.s. consumer. >> they all work. >> you talk about 2008 being the last time you saw the moves. >> you know when you saw the moves before that? 87. this week in '87 was a disaster. >> you are really going to bring up '87. i had to stop being on vacation in '87. it caused a real conflict at

home, first of many. >> there was plenty of that. those days are over. now, it is all. >> why do you bring up '87? >> i want people to recognize that the stock market can difficult verge from the real economy. in '87, the stock market was great and got crushed. the stock market could be d diverging from the real economy. it didn't in 1998, '98, because we did import those problems. >> '08, it was just catching up with the underlying economy. the last time the underlying economy was robust and we had a selloff was '87. i have been talking to a lot of

regular people who are scared to death about a market that can go down 600. there are five brokerage houses that basically stopped trading on monday. that is not reassuring. >> you are talking to somebody who sat here. don't look at some of those prices on monday an wondering what in the world was going on. >> the most important moment monday was what? when you look at the cameras, listen, i have to go make the calls. we don't know what the heck is going on. we have to own the fact. >> monday. >> to that larger point with big moves, whether they are up or down, those enormous moves that were quickly reversed. the fact it sounds like the a o algorit manies r playing out. >> you said you are not a technician. on tuesday it held the low for

monday. that made a lot of people that are bullish think there is a recovery. some fed guy says today we are tightening because the market was up 600. we erased the 600. we are way too close to the fed and not focusing on what the companies are saying. let's use the 2011 ann aalogy. you can say, it is not as bad as 2011 where we felt it in spain and portugal and italy and ireland and greece were going to default. this isn't as nearly as bad. why don't we think within a few percentage points, we are done. look at oil today. unless the saudis have decided about pumping, i have data as of last week. houston data, not the inventory data. it doesn't include that.

how much oil is everywhere. i threw that to come over there. the storage is out of control. there is so much oil. we can't take it from canada. we can't take it from saudi arabia. oil us up today. maybe someone knows that the saudis are finding that in yemen more. they have to stop flooding the world with oil. we had the senator say that the iran dude is a done deal. >> highly unlikely they will be unable to override a veto, if, in fact, they voted that way. >> you have the dollar up today, the euro down. we have oil up. now, last night, reader was very, very saying that if we see oil go up, it will restore confidence. >> you believe that too. >> sometimes you believe people who are really big in the market. i think that that man is a very thoughtful man. >> you were impressed? >> i was in awe. this guy has common sense. he is in the market.

he knew the fund flows. how much is he controlling? >> a lot. when he said they need to stabilize, they is him. he represents the they. >> he is a thoughtful guy, rick. he has been around a long time. he got thoughtful with someone who is not there. he is not just a marketer. we have a lot more to talk about here, of course. we have tiffany's quarterly. you can see it right there. that is weighing on the stock. not the only retailer having a rough morning on the earnings front. we are going to fill you in. let's give you another look at futures here. as we get closer to the opening bell, about 27 minutes away. a lot more "squawk on the street." 17 minutes away. a lot more coming up. here at td ameritrade, they love innovating. and apparently, they also love stickers. what's up with these things, victor? we decided to give ourselves stickers

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yes, it was up about what, 3.8% yesterday. we are looking for a higher open this morning as we get set to begin trading stocks, about 15 minutes from now. we also have a lot of retail, earnings news this morning to digest. difficult any missed with second quarter results.

it cited a stronger dollar and challenging economic conditions in certain markets. also, dollar general quarterly earnings were above forecast. revenues were below the consensus that analysts had come to. williams sonoma's weaker outlook overshadowed better than quarterly results. pvh was a beat on the top, the revenue line and the earnings line. it did raise earning guidance. ceo last night told them how pvh is fairing in china. >> a lot of volatility in that part of the world. >> the volume concerns me more than our actual business. our actual business continues to be strong. we are well-positioned, selling affordable luxury. we are not selling luxury goods. we continue to post strong gains in china. >> the journal has done a good job giving a snapshot of the

chinese economy. another story of that exact segment that is not seeing weakness. it goes to some of the comments we heard earlier from tim cooks as well in terms of iphones. an emerging upper class in china. it is a lot of people. >> there seems to be a decided effort to have people not spend on the $500,000 watches. we know the flow of funds for expensive liquor is down a lot, gambling numbers down a lot. we have seen pvh brands, calvin klein, do quite well. one of the things that manny chirico was saying to mes la the night w last night was, the stock is down but our business is good. it is almost as if the party has decided, we don't want margin but we are going to prop up stocks. we don't want a waitress to take

a picture of a watch and send it to the police of a patron. this is the return of communism. they want the middle class to do better. this becomes a very confusing situation when you see a guy that says, i don't know what's going on in china but it is pretty good and then williams sonoma, beat numbers, beat numbers. this es not a great quarter for williams-sonoma. they were up. they would tell you the quarter is more down beat. in a lot of different areas, they didn't think it worked. >> dollar general, i wasn't crazy about the comp numbers. tiffany was because they came out the last quarter. they spiked the stock from '85 to '94 with the guidance and took back the guidance. they better have some numbers. they took down their guidance. they were looking for double digit earning growth in the second half. no earnings growth in 3-q. come on, tiffany.

tiffany reads like macy's. >> why would they have taken that guidance up in the first place? stronger dollar, clearly going to impact some of the abilities of the customer to come over here and spend a lot. they got too optimistic there. we have seen that from some companies. too much optimism. we saw that from a lot of the oil companies. they said oil is going to hold 60. now, the debate is lower longer versus you recovery. people thought that some buyers of the camera would signify the u recovery. the inventory was signaling a longer, lower. saudi arabia being the key. sa saudi is pumping the most it has ever pumped. >> iraq at $4 million now. china, diesel numbers were very bad. european diesel numbers were

very bad. just in terms of where gasoline and oil are. they are on ships. the suez that i'm on remain high. that's the people's story. >> i continue to believe this is the story when it comes to at least some of the things that i'll be covering and the equity markets or the continuing restructuring of any numbers of companies. not the big guys or dives divestitures. >> i think you want to analyze. the black light crude, with he don't need it. receipt fineries are built to handle heavy crude. what we are looking at, we have to look at region by region. eagle ford, i'm very happy with and bokken, the discount is so big. you have to be very careful if you are investing in companies.

coming up, jim's mad dash as we get closer to the opening bell for this thursday. let's give you one more look the afutur at futures before we have that opening. we are going to have a strong opening at least if you are long. a lot more "squawk on the street" right here from the new york stock exchange coming up.

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xpi follows this company. they are all into cell phones. we don't know how much is gel ming and apple and samsung. i think it is really important that people get to know this name in the way we used to think about intel and amd. this is the leader in the group because it is the most inquisitive. >> it is a roll-up. the key is having your stock price move in the upward direction. >> if they get it rolled up, deals get done. watch this. this is the new intel for people who are momentum people. the most important stock. i want people to know it. work day is one of the most

important stocks in the cloud universe. they had 56% sub revenue growth. some people were saying that oracle is having input. it has some sort of impact. citi goes to buy. this stock was at 67 last night. it is now come back to 70. battleground, david, battleground. the way to resolve the battleground, sales force. workday and salesforce are close. the only one that is delivered at a level people are shocked at is tablo data. the more mature company in the group. >> we have a lot of stocks to watch, whether it be oil or the

bond market or currencies. a lot of that coming up. opening bell, a few minutes away. can a business have a mind?

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you are watching cnbc "squawk on the street" live from the financial capital of the world. the opening bell is going to ring a minute from now. this is the time when carl is not here. i turn reminiscent of our time together could i say the '90s. is that true? >> i think it is. >> what is the key to this market, mr. cramer? >> easy. call disney. disney, i think, was the so-called twilight of the gross stocks. disney, i think they are in there buying the stock aggressively. i think they are in there aggressively. the stock is back over 100. i wonder if the long-term people shouldn't stay focused on disney as the possibly. it is true that espn has had some problems. >> there is a change going on,

slow, perhaps in some ways. >> the speed of the decline and the cash flow at disney makes me feel that they draw a line in the sand in terms of their buyback. >> you hear the applause building here. there it is, the opening bell. you take a look back. a lot more green on the board than red. the multisector, unconstrained, bond etf. jim, unconstraint. they are running wild celebrating a recent launch. >> that's the chinese company. over at the nasdaq and business advisory services. >> boy, i'll tell you, david, someone who is just looking at this market, recognizing they are all up or they are all down. they start discerning at around 10:15. >> is that when it -- >> that's when. yesterday, the discernment went out. >> who knows what's moving the

market now? we are only up 100 points. at lunchtime, wie were only up 100. that's when buyers came in as opposed to the day four. later in the day, when we went down, suddenly, the buyers disappeared. it was almost as if buyers saw what they had to do in order to be able to get stock. david, i keep thinking, what are you hearing about levels of cash on the sidelines and levels of people who have to come in and do some buying. >> i hear various things. it depends where and whom you are speaking with. >> cash levels. art cashin has brought this up a lot saying there is some. >> hedge fund. >> on the hedge fund side, i have to say, a lot of guys did take some risk off late july, early august. we are hearing some bad numbers. those are the guys that are really usually long, very much long and a little levered.

>> that was reminiscent of the 2011 analogy keeps coming back to me. os lay tore. that's the s&p. that's where it was in 2011. both of those bottomed. i think what you are getting is a lot of the technicians are able to point to something that says, a plus 4 day has often yielded more positives than negatives over the course of the longer term. the technicians came out and said ignore the idea that the market, a lot of this death crawl stuff. i have no use for that. this is not what retail was. i see it goes up 600, down 600. we want, need retail to balance. >> the high frequency traders, i

don't know if they are moving things. it is much more the quants and the algorithms. >> people are wide wily convinc that dudley's statement from saying they will be thoughtful is different from the hard line. when we were down 11, 12, that was factoring in a rate hike in the united states. the flow of funds overseas, if china stabilizes for a couple of weeks, if oil doesn't go down, you get the rate hike. people are going to talk about the december rate hike.

>> a fraustrating time for thos of us that want to analyze because of the stocks. back to one of my beats, m&a. there was a story they were preparing financing for a story of saint jude medical. that stock is up 5.2% even though a spokesman at abbott has denied they have interest in saint jude, that denial coming to cnbc. the stock, as you see, is up rather sharply on that ft story despite the spokesman denying it to us and bloomberg and a number of other news organizations. >> it is a great company. >> saint jude, you are talking about. >> they were also kind of miffed that mechtronic did that. >> saint jude is the better mouse up. they have the smaller cardiac devices.

i have always felt they had superior technology. if they didn't get the stock price up, they would get it. >> do you think they are a consolidation candidate in general. >> i do. >> the company is so well-run. it is a fantastic company. it is too small. it is too easily gobbled up. the stock price doesn't reflect how good it is technologically. on edwards life science, has a great mousetrap. you don't have to crack the chest cavity, e.w. is taking the world by storm. >> they never recovered from the purchase of guide. >> goldman upgraded and bsx. >> does j&j still have interest. they once were about to own guiden until they came in.

>> they are cryptic. this he declined from 108. my charitable trust owns it. to 90 was pretty precipitous. the run from 90 to 96 was cryptic. we don't know what j&j has up their sleeves. remember the story that j&j was going to buy phrmacyclics. >> i don't like commenting. >> or be rhetorical. >> the stock was up 10, 11. someone bought it. now, someone is down on it. >> i did talk to a couple of bankers that were cited for working on something. >> abbott is really well-run. they don't have to do anything. this company, saint jude, is a

gem. >> just to change things entirely. the governor of the bank of japan, coroda. he said, the fed consistently argues their policy is data dependant. if they raise rates, that must mean they are confident in the strength of the u.s. recovery. that is good for the global economy, including scrap. i don't know when they will raise short-term rates. >> the yen would sink and they would sell more toyotas and fewer gms. >> how much lower can it go? where are we right now, .95. the dollar against the euro, the dollar stronger, 1.2. >> interesting to watch some of the things that are happening that are bullish. now, the stock is off. just be aware technology has a real bit underneath it. there was an upgrade of nike. back to school season very

strong. a lot about the united states is very strong. forget about overseas and say, raise the rates. our economy could easily do this. go back to the toll brothers, they are not worried about it at all. it is about malarb ysia, about thai, ukraine. it is much less about our country. >> maybe we should work. speaking about largely our country, although they do a good amount of overseas business. amazon is over about 4%. raymond james, they raised their target to 640. how do they get to that? based on a sum of the parts analysis of 2016 revenues. the sales multiple of 2.4, not 2.5, not 2.3. 2.4 times their 16 revenue estimate which, by the way, is $128 billion. there, you have that. >> today is the day where the shorts are furious. they thought the most overvalued stocks in this market were

facebook, amazon, netflix, google, tesla. >> google? >> how did you throw google in there? >> i don't think google is overvalued. there are people that said they did this alphabet thing and suddenly you should be able to add 80 points to it. if you separate that venture capital arm filled with un corns from the rest of the company. the rest valued at 20 times earnings. >> your larger point is that we are going after perhaps some momentum stocks with great growth and incredibly high p.e. multiples. >> anytime flicks up another 3.5%. >> that keeps coming on. that's what's daunting to the shorts. they are the ones who always say, listen, you just wait. remember. we had a lot of ideal locks. they say they are hard liars, who were saying on monday, they

were coming on air saying, i told you, it was all pumped up. what do they site as all pumped up? facebook, amazon, netflix, google, tesla. those stocks are now coming back. >> including facebook and google in that list based on what are incredible growth rates and as, opposed to amazon, multiple, far lower. >> you are so right. manny treeco talking about social media and how it has boosted sales for underwear. why? >> instagram is boosting underwear sales. >> miss jenner. >> i have to keep my kids off that thing. >> facebook, by nature, is generating sales. they are not even doing anything on facebook generating sales. i am not just saying that. they are an inexpensive stock on the 2018 numbers. >> i had some hedge fund manager

tell me they are going to go $10 in 2020. >> that's much more than i'm using. >> i'm giving you a sense as to the bulls out there on the facebook case. >> $10? >> i'm talking about 3 and change for next year. i say the stock is not expensive right now. facebook is doing a lot of things that are right. those that bet against facebook should recognize, it does have a p.d. there are earnings there and they are impressive. >> and they are growing fast. >> i have popeye's and louisiana kitchen on. it is facebook. 30% of their advertising budget, facebook and google. >> that's why viacom is down 47%. they are not spending more in terms of ad budgets. >> the return on investment that

they are able to get from facebook. i have a friend that was in to see facebook for a plan, because they had such great luck on facebook. they put in $1 and get about $2.10 in return. it's harder data. the people that run the advertising budgets, they have always said, listen, half the advertising is really good. >> we don't know which half it is? >> now, they do. it is the half that goes to facebook and google. >> let's get to bob pisani. >> good morning, david. good morning, jim. 10-1 advancing the stocks. a lot on the up side. technically, very good. we were helped by the gdp numbers. take a look at the s&p futures. we moved five points almost immediately on that. that came out at 830.

then, we moved up again. you could thank the gdp for help there. a number of components in the gdp were very strong. government spending was a lot longer than anticipated. net trade, a lot more exports there. the inventories was the largest on record. i don't know about that inventory number, it could be a drag on q-3. as for what we're going to do in the next few days and at the end, i think traders want a little bit of a rest here. there are some hopes that will see lower volume and lower volatility. the two issues that have really rocked the markets might be less often an issue that we have seen. margin call and market on close which cause a lot of problems. if those two die down, i think

you will see things a lot calmer. it is pointing in the right direction. if you take a look at the vix we were at 53. we have been trending down. overall, in terms of sectors, tech and energy, oil back over $40. health care is doing well. discretionary. health care and discretionary are up for the week, believe it or not. those two are up. europe set the highs for the day as i was coming down on the floor. germany, having a good day. spain having a good day. france having a good day. all up about 3% as you can see there. you guys mentioned tiffany and the lower guidance. i don't want to sugar coat it. the stock is down. one of the few stocks that are down here at the new york stock exchange. you can see what a horrible time tiffany's had, $90, $91 a few weeks ago.

i want to point out the terrible impact the strong dollar is having on a company called tiffany, which gets half the sales outside the united states. flat is what they reported. it was down 2% in constant dollars. if you look at asia pacific, they get 25% of their sales from china and japan. their sales were only up 1%. in constant dollars, if you take out the dollar impact, up 6%. europe, 15%, up 1%. in constant dollars if you take out the effect of the currency, it was up 19%. i'm not sugar-coating it. tiffany has a lot of problems. i'm simply pointing out that the dollar impact really hurts companies like this. right now, the dow jones sitting at the high for the day up 240 points. guys, pack to you. >> thank you very much, bob. before we get to rick santelli, i did want to come to freeport,

freeport-mcmoran. oil and gas and copper, two areas you don't want to be in. the stock is up dramatically. they are cutting their mining capital expenditures by 25%. projected consolidated 16 capital expenditures for mining and oil and gas are estimated at $4 billion. that's 29% below their july 15 estimates. reduction in copper sales of 150 million pounds per year. 2016 and 2017. 20% reduction in estimated 16 unit site production and delivery cost. all of this designed to enhance their free cash flow generation, jim. their lenders are saying it is time. >> they are blinking. they have been trying to do everything, which is continue to the big output and also maybe do some ipo. they are trying to do everything. this is a stock i don't like.

when they do the right thing and preserve cash, in the end, those end markets remain weak, because they are chinese. they are copper mines. >> the stock a little over a year ago was in the high 30s to 40 and it is below. >> it is a tense situation. i think you are right that the lenders are in huge debt. they have to go. a lot of people felt in that interview with hp, we were very tough. they are still using very robust china numbers. these mining companies remain the achilles he'el. >> it amazing when you look at mining charts, having peaked in '12 and coming down, down, down. >> 2007, 2008, they got very excited because that was the

commodity boom peak. transocean, why did that stock suspend? because it took three or four years to build those giant platforms. it came out in time for oil to collapse. let's get to rick santelli and check in on the bond market. >> good morning, david. there are so many stories out there. stories that the chinese were big sellers of long and fixed income. maybe they were. there are officials everywhere. there is no real name sources. there is also big talk, of course, that william dudley, president of new york fed in jackson hole saved the day because he said, less compelling. he said a lot of things. this goes back to the roar shack nature, whether it is a statement. there were a lot of things that mr. dudley said. that was the one that was keyed in on. the point of what i'm saying, there is an adjustment process

between risk and reward because of normalization at the fed. it is going to keep going on. does that mean that we are not going to see any down side in stocks? all i can tell you, the credit markets, the 30-year bond, augered the entire process there was going to be some limit to that down side. they prove to be the correct leader here. everything being reverted. look at the two day of tens. look atten aaugust 3rd of tens. we are getting back to somewhere where we were. look at boon deals. same thing. back into the low to mid-70s. if you look at the difference between bunds and 10s. is it temporary? look at inventory and gdp. it was a big historical positive. it is the demand for the widgets. whether we need to make more. it is going to be important.

if we look at 5s and 30s, you can see we are stopped on that. five-year note yields are higher today where you look at the long end. it is very steady. if you do look at the long end that's been leading, start since july and you can see how it is back above settlement. tens are back above settlement for the year, which was 217. this is very significant. i think that the dollar is going to remain the hot currency because it is going to continue to handicap what investors think about the fed and rates. david, back to you. >> rick santelli, let's take a look at what is a very strong morning this morning thus far for equities. of course, you heard a lot of analysis from rick on the bond market. we are basically flat on the s&p for the week. >> the dow is up. we got a lot more coming up including stock trading with jim.

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>> let's get to it. >> food stocks. smucker, amazing. it is their hard business they have bought for pet food and duncan brand. this is a company that's been very inquisitive. popeye's louisiana kitchen, and david chegg. >> they are trying to be competitive. they are not buying their textbooks anymore. >> hear what dan has to say. i'll see you right here tomorrow. >> absolutely. >> if not, throughout the day. many could go coming up, breaking news on pending home sales. we are back after this.

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good morning. welcome back to "squawk on the street." i'm david faber along with sarah and simon. let's give you a look at the markets rebounding from the

thrashing they took earlier. we are almost back to flat on the s&p. off the highs, check out oil. it's down at the bottom right, if you will, of the screen. >> thrashing is a good word. >> after that better gdp report, let's see what housing looks like. diana olick, breaking news on pending home sales. >> pending home sales up. 0.5 percent in july from june. call it flat but june's number was upwardly revised. we are still up 7.4% from a year ago on the pending home sales index from the national association of realtors. this represents signed contracts in july, out in open houses and making that decision to sign in july. these are not closings.

they only slipped in june. the street was looking for 1% higher. kind of a miss on that unwith. mortgage rates did ease in july. we were expecting that we might see a surge in pending home sales. again, kind of flat. the northeast really pushed things higher. up 4% month to month. the west was the only one showing weakness, down 1.4% from the month. south and midwest were basically flat. the realtors chief economist, lauren dunes, saying given all the market volatility this past week. some buyers may air on the side of caution. others may think a house is the safest place to put their money. we'll see. back to you. >> up 164 points on the dow. all the markets, major equity indices are in the green. let's bring erik smith and seth masters.

seth, let's me kick off with you. there was some concern after yesterday's great rally. there was some concern on the floor here that may have been more short covering than big institutional participation but there were lower highs, lower volume than what we had seen in the week. i mention it because it is important, adds to the sustainability of the rally we are now witnesses. where are you? particularly, what color are you able to add for the institutional side? >> what we think is going to be sustained the volatility level? the amount of noise around the signal. that's because we're caught between two big polar views of the world? is the world really in the throws of all kinds of problems, weaker growth in china and potential problems elsewhere or, in fact, is the world still doing pretty well by and large because companies like the united states have great economies, companies that are doing surprisingly well in the strong consumer. >> i think i need your analysis,

rather than describing the problem that we know sole well. when you say there is volatility around the price signal. what is the price signal? where does the market go from here? >> i think it will be grinding higher with a slow pace with a lot of noise around that. we think we will see probably the major stock indices like the s&p moving at about 6.5% up over the course of the next few years. with days like we have seen in the last few days, there will often be days that are up two, down two around there, driven by what the fed governor says or what the chinese are doing to support their market as we saw this morning. >> let's pick up with eric. yesterday, william dudley decided to come out saying that a september increase had grown less compelling. we are going to see what stanley fisher says on saturday. is the fed shifting here? what does that mean for the

markets? >> i think the fed is shifting. dudley, being the obvious example of that but not the only example, will see what jackson hole has to say. i can't imagine it will be all that different in the sense that there have been two new uncertainties introduced, china, the extent of the weakness, not just in chinese markets but economically and question over how the movements will affect the real economy. stock market moves aren't all that relevant. the fact that gdp recently was quite good in terms of the revision, helps as well. it is not inconceivable that the world congeals in a way that allows a hike. they are probably thinking it is a 25%, 30% probability for september. >> do you see these moves in the market? the global economy is there or is there a disconnect between how the market is reacting very emotionally to what we are actually seeing? >> i think there is a disconnect.

certainly, in the domestic u.s. space, in the sense that the u.s. economy looks to define obviously global conditions do matter. it is relevant when china slows. a percentage point off chinese growth is probably a quarter of a percentage point off u.s. growth. these linkages exist. some of the excitement around china is a bit overdone. the currency story, we will look back in 30 years and recognize it as momentous and a shift in direction. china had a fairly obvious stock market bubble. it is a bit perplexing why they needed to support this. this is a small market as well. >> there is a potentially quite profound effect here rather than constant easing for the first time in over ten years. the deutsche bank has argued for a tight on treasuries.

the yields there are up 25 basis points. that's actually a very big move. the argument goes, the chinese are selling treasuries for the first time in 12 years, whatever it is in order to raise doll rs aand fund the capital flight for their country in addition to supporting that. i just really want a context from you of how important that is, given what all the other central banks are doing. >> china is less involved in the treasury market. that is consequence, less than many would imagine in the sense that the u.s. treasury market is extraordinarily deep. every $15 billion that china pulse out is mainly worth a basis point or two. it is ultimately quite manageable. china's current surplus has shrunken. it is putting an upward pressure on yields. yields are still lower than they

were a few weeks ago. >> thank you for the context. >> eric lasells and seth masters, thank you both. the dow is up 151. tiffany shares taking a big hit. they are still down 1% after reporting earnings getting hit by a strong doll are a. is this stock worth a buy? we will be right back. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it.

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profits continue to decline. sharply, cutting a full year outlook. what will it take for tiffany to turn things around. let's bring in brian nagle, a senior research analyst. usually, when the strong dollar is the primary concern. that suggestion is temporary. is tiffany a buy? >> i think so. i think it is really good to see the stock trading higher as the trading day has gone on. i wrote a note to our clients basically saying, the results activity, the trend can activities are much stronger than these headlines would suggest. i guess people were surprised that the forecast was for decline and full year profit. what's behind that? >> tiffany has a different comparison in the third quarter. comparisons get easier in the fourth. they know how to deal with investors and they don't have any incentive to be aggressive.

their mind-set is given the uncertainly and a strong dollar, let's be conservative with this guidance to let numbers meet them. >> is there anything here to glean about the health of the consumer. >> i think we have to be careful, these results were the end of july. much of the stock market volatility happened after the q-2 result. >> there was already a slowdown in china and the emerging market. in local currencies, you saw very good sales in europe and japan. the u.s. is holding up okay. >> the stock has already been beaten up pretty hard. 20% for wednesday's close. are all of these negative factors factored in. i know you say it is a buy. >> i think they are. the sentiment around, i talk a lot about the sentiment in the

stock. it is already quite cautious. we climb back towards $100, $110. >> you also cover home depot and lowes. we get continued confirmation that the housing market in this country is improving. how much is factored into those, because there is already money made in those stocks. >> i think home depots and lowes will continue to grind tire. another solid data point. every data market in the homes lookses solid. the home centers are big beneficiaries of that. with these issues overseas, concerns, money is going to flow into well-positioned domestic companies. home depot is really well positioned for that. >> you think there is still more up side to go on that.

>> where is jcpenney's? >> the business has stabilized. a new ceo has taken over. i am interested to see what he will do with the company. i think he is a great operator. right now, i tend to stay on the sidelines with jcpenney's. it seems to have stabilized but i don't see much up side there. >> an analyst from op enheim retail. >> the moves on the market have been huge in the last few trading sessions. 860 points on the dow. we want to get as much context. martin newton, chief technical analyst at gray wolf. trying to get clues as to what is happening longer terms? >> an extraordinary amount of volatility in a short amount of time. in the last couple days, we did see some evidence of capitulation, short-term, oversold conditions combined

with pessimism that makes it sound like we can get a little bit of a bounce that has gun today and started yesterday, not only in the u.s. but globally. s&p getting over tuesday's highs provided a short-term catalyst for today. you can see in the last few days, here is the range that was ongoing since february. when you combine a six-year rally with a seven-year or seven-month type trading range, we have a very low period of volatility. that was broken as of two weeks ago. a six-day decline. it reaches very low oversold conditions. that is constructive in the short-term and near-term, probably we get to 1985. maximum up near 2013. however, in the longer term basis, we have done a lot of damage in a very short period of time. that's what concerns me. >> we have broken the trend lines. >> we have broken the trend lines since 2011 and the dow broke since 2009. when you look at the msci or the

bloomberg world index, you can put things in further context when you see you had this large trend that extended over the last few years. it has actually broken where it needed to, in my opinion. we have actually seen a much more severe pullback than when we saw either on october 14 or 2011 in regards to extreme oversold conditions when you look at the percentage of stocks above the 10. 50-day moving averages. putt to call ratio soaring to new yearly highs. there were some signs that things had gotten overdone. monthly mack d, some technicians use. the movedown caused momentum to start to wane and caused it to cross over. the break has caused it to spike to the down side. near-term, right for a balance but longer term, an unprecedented rally. now, we started our first move down.

>> let me tell you very short-term. the concern was that yesterday was short covering, potentially not enough institutions participating in it on the long side. therefore, whatever we get today, people might sell into. can you shed any light on that? do you have any color on that? people are largely on vacation. there is no doubt about that. the volume has picked up quickly. the volume was heavier on the down side. very heavy volume. yesterday was a flip-flop. >> technically, for three to five days, i have confidence we can bounce further. we are heading into one of the more seasonal bear times. if we get near july lows, 2044, another 5% higher. it is right to initially look to sell into the strength and not put too much stock in this rally

being a one-time affair and it is all over from there. >> you did want to mention the ten-year aund suggested we look at a three-year. what is the essential message from this? >> right now, a lot of things are moving all in the same direction, the u.s. dollar index, ten-year treasury yields and the s&p. treasury yields sold off. the dollar after the yuan evaluation, started to sell off. then, the s&p. treasury yields held up a little bit more getting above .221. that would be a little bit more significant development technically and thinking the yields can extend. this is the long end of the curve. there is only about a 28% they hike in september even though we have robust data this morning and a coin flip for september. it is a very uncertain time,

particularly when they are paying attention to the global data, not just u.s. >> sarah, over to you. ukraine has reached a deal with international bond holders today resulting in a 20% debt hair cut. michelle caruso-cabrera just talked to the ukrainian finance minister. >> hey, there, sarah. about $4 billion worth of debt reduction for ukraine, which doesn't sound like a lot but according to the finance minister, it is an enormous amount of money for ukraine. they get an extension in their payments as well. one key piece of drama here is, are the russians going to participant. ukraine owes russia $3 billion. repayment in december. however, that has been included in this restructuring agreement. are the russians going to tender that or not? natalie jaresko tells me the message is, this is the best deal they are going to get and they need to take it.

a big milestone for ukraine this morning, because it keeps them within the imf programs and guidelines that they need to keep receive programming as part of that program. >> >> we are live in jackson hole. for many people, all about the central banks now, kansas city fed president, esther george, says she is prepared for a rate hike despite this week's volatility. more on the rate debate after this. when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night.

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focus for the markets this weekend is clearly jackson hole. bill dudley said it was less compelling to raise interest rates than previously. steve liesman is on the ground there as the central bankers begin to gather from around the world. >> simon, thanks very much. the great rate debate is to listen to the markets that are still off around 7%, 8%, 9%. pick your nup. an economy that's growing at a stronger than expected 3.7% as reported today by the government. esther george, kansas city fed president or host here at this conference says she knows the answer and says, listen to the economy and not markets.

>> this week events complicate the picture. i think it is too soon to say it fundamentally changes that picture. in my own view, the normal zati ization process needs to begin. the economy is performing at a rate that needs to take that. >> >> here is some evidence or ammunition. 1.4% higher than reported. housing higher, government higher, specially state and local spending surged ahead more than 4% with one caveat here. big inventory build and economists expect that's a workoff over the next several quarters and a lot in the third quarter. that could take some shine off that number. a big bounceback from the 0.6% weak first quarter we had. ian shepherd at pantheon says this is a weather hit reversal.

every major component of gdp was revised higher. i'll note the work we have done showing the perennial weak first quarters. dan says, fed officials are likely to view the economy as having a bit more oomph than originally thought leading into q 3. barclays says, these statistics are stale in the minds of fomc policy makers relative to the recent volatility in financial markets. data continues to come in showing a healthy economy with the caveat. speaking of tomorrow, with he will have narayana kocherlakota. for more easing, simon.

>> that should be really interesting, steve. a quick question. what's nice about jackson hole is, it is actually global. you get global central bankers. i am wondering who else is there from around the world besides the federal reserve if that's going to impact the conversation. the pain is being felt there. the fear of higher interest rates is being felt abroad. >> i think that's right. >> can i talk about what we have tomorrow, elizabeth? good question, sarah. unprompted. we have the indian central bank governor on tomorrow. i didn't know if i could say that just yet. i think it's an interesting conversation. they are each going to grab each other by the lapel. the americans are going to say, get your economy going. we have been telling you for months and months now that we are going to raise rates. why aren't you prepared for it. the emerging market, why are you going to do this to me? you are causing my currency to

depreciate. you are forcing me to make interest rate policy. i think they are going to be talking to each other quite a bit. the jordan senn tral bank. i saw victoria constanzio checking in. this has always been a global conference and a place where they get to talk to each other about, in this case, maybe policy. >> that sounds great, looking forward to it, specially to hear from the central bank governor of india. straight ahead, china's stock market did bounce back in the later part of the session, still down nearly 20% in the last week. should we brace for more losses? what else should we be expecting on the policy side? we'll be right back to discussion.

welcome back to "squawk on the street." i'm jackie deangelis. we are seeing a build here. 69 billion cubic feet is the number coming out from the eia. prices are roebounding here a little bit. 2.64 is where we are seeing the gas now. surprising that we saw hot weather last week. tropical storm erika is something to watch. one does show it going along the gulf coast. that is something to keep an eye on. at 2.64, nat gas is testing the lows of the range. with he were in the range of 2.62 to $3. traders don't think it will go much lower without a more significant disruption. over to you sue herera. here is what's happening at this hour.

walmart getting a head start on the holidays. it will begin its holiday layaway program tomorrow, two weeks earlier than last year. the company says, 40,000 items will be available. toys, of course, a big focus with the new star wars movie coming out in december. 500 new star wars products will be in stores beginning next week. a court in thailand has issued an arrest warrant for an unnamed suspect in a riverside blast that occurred a day after the bombing of a shrine in central bangkok which killed 20 people. the suspect is seen there in the surveillance video. china has detailed 12 people for suspected criminal offenses involving the massive explosions that killed 139 people. five people were swallowed up by a sinkhole that suddenly opened in china. several people were standing at a bus stop when basically the pavement gave way and collapsed.

surprisingly, they only sustained minor injuries. an investigation is underway. that's our cnbc news update this hour. back to "squawk on the street." thank you, sue. welcome back to "squawk on the street." asian markets did rebound this morning. the shanghai rallying more than 5%. certainly, a welcome sign for investors after crashing 3%. joining us now is jorge marissco. good to see you, jorge. >> hi. >> so they have cut rates a number of times. they have cut reserve requirements. today, they were reports they bought stocks. they have pumped liquidity. when does it all start working. when do you see the chinese economy rebounding? >> we think there were signs

that the economy was stabilizing before this volatility ensued. and all the febleffects of the stimulus should begin to go. the market is suffering a credibility crisis. why authorities reacted so pan he cannily to the decline in the market that had been up so much in a year. a series of not very well thought-out interventions have further eroded confidence. right now, we are looking for signs that they are going to be pulling back from this intervention measures. is that realistic? >> that seems a little high to us. we are looking for a rebound in the fourth quarter, yes. >> is that what it's going to take to stabilize these markets?

better economic data? >> i think it will help. i think the markets also have grown to distrust the data in china as well. we wonder why the authorities reacted so panicly when the market dropped. did they know something we didn't know? i think it will take a couple of quarters to get full footing on whether the economy is on a real rebound or not. >> one of the flash points in this entire selloff and panic moment around the globe was the chinese devaluation of its currency. it came as a surprise. a lot of people wondered about why they did it, when they did it, how they did it. are we going to see any more moves like that? >> i think that is the key development in the chinese outlook? it is a change of regime that i think has a new set of risk factors into global currency markets, not just asia. i think they did it because they are suffering a significant

amount of capital outflows. about 10% of the reserves have left china over the last year. reports are that another 100 billion may have left in the last two weeks. so it is not a trade problem. they have a trade surplus and a current account surplus. they do have significant capital outflows that will be fueled by lack of confidence in the future and the economy. so i think that is the key factor to watch, how quickly they continue to be eroded and if they continue to be eroded, then that's going to be difficult for the central bank to lower interest rates and to further stimulate the economy. so watch the foreign exchange reserve of the central bank of china. a key indicator for stability. >> as long as we have you on as a senior member of the wealth management team, can i ask you about an art canal in today's "wall street journal," which talks about dangerously high margin balances for high net worth individuals as a result of what your type of business has been doing within the industry.

security-based loans where people pledge their stocks, bonds and mutual funds to raise cash to buy houses. it is part of the product of having markets so stable for so long. in the last few days, you have had some really big margin calls on some of those high net worth individuals. how do you feel about that type of loans? are they the type of things that should be extended in this environment, do you feel? >> typically, we as a house are very conservative and watch the loan to value ratios very carefully. we have not seen any major trend that would worry us in that regard. when interest rates are solo, people borrow money. we don't see any worrisome levels in this phenomenon with our client base. >> jorge mariscal, good to see

you today. >> thank you z. >> time warner ceo speaking out about the recent meltdown in stocks before the market. he talked to karen roth in amsterdam saying, the key is going to be figuring out how to tap into changing viewing habits. take a listen. >> a great secular boon for the tv content business but it has to go on demand. that's why the reaction is oversold. the kind of pessimism or concern if it was right would mean the entire industry never figured out how to take this fantastic product that everybody loves and get it to them in a manner that makes sense. obviously, the industry will figure it out. >> if you are behind on your game of thrones on hbo, he did weigh in on the fate of john snow.

>> the best show, unfortunately, you killed off the most important person. that's troublesome. >> we always kill off the star. >> it's cheaper. >> they do need to focus on costs these days, with these media companies. it is not so much about their opportunity, which remains or the business to a certain extent but the growth characteristics of that business as we move deeper and deeper into this overthe top, smaller bundle world. they do own hbo, which is quite helpful. they are taking it on demand. there are those that say they would love to see it broken out entirely. i think we are far from having dealt with these vast changes that are taking place. there is a whole conspiracy theory that john snow is still alive, not dead. >> apparently, they have said he really is dead. >> remember the bigger picture, david. they always kill off the star in

cable television. >> thank you for that, sighen month. still ahead on the program, the so-called fang stocks holding up pretty well. is this where you should be putting your money? we'll be right back. by the time police arrive on a crime scene, they could have little to go on. a vague description. a single piece of evidence. a partial plate number. with an app from ibm, officers can now access over a billion police documents to find hidden connections, and identify potential suspects. ibm analytics helps one hundred thousand officers work smarter every day.

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let's get over. rick santelli has the santelli exchange. hi, rick. >> hi, sarah. thank you. first time guest on the santelli exchange. danielle demar tee at the, adviser in a previous live to the dallas fed. thank you for taking the time, first time on, danielle. >> thanks so much for having me, rick. happy to be here. >> let's go backwards in time. gdp, any thoughts on the strength or the inventory he

issues? >> something that struck me this morning about the gdp, i still see the world through the lens of a fed insider, was any kind of an excuse that they could find in the data. it bothered me to see the big diverse generals between gross gdp and gdi. when we have seen that big of diver ge ances, we tend to. >> what do you think about china? obviously, that i are lags. i think that's why the line of yesterday by our fed president of new york really struck a cord. although, he said many things, less compelling. >> less compelling, more compelling. >> less compelling. to me, the lags of anything that are going on or trying to truly handicap what i call the great recalibration, is going to take a while. should this impact the fed? what do you think they should do? >> no, i don't.

i really don't. if there wasn't enough evidence a few days ago that there were financial stability risks out there, we certainly have them now. i think the fed should be concentrating on that. if you look tat the past six years, gdp, 2.2%. fed policy has done nothing to move the needle. right now, i think being overly easy with monetary policy is doing more damage than good. >> what is the fed afraid of, danielle? do we know? it certainly seems to me you could do all these mars stories, that's a new comparison. if you came down from mars and looked at this and that. a two handle on gdp is half of what it should be. i think it could be fixed a lot easier if we get the politicians to wake up. it certainly doesn't deserve zero. what do they need to do? is there going to be a perfect time ever? >> there will never be a perfect time. if you look at what's p haing with oil prices, it is going to begin to percolate through economic growth. you mentioned the atlanta gdp

starting to show a slowdown. there will always be something on the horizon that provides an excuse to not raise rates. these episodes don't end well, rick, i think you and i know that. >> let's go to the real enchilada. we only have a half minute left. the big notion is, hey, the topic in jackson hole, disinflation, deflation, pick a name. a lot of various pricing points in the economy by various groups on the economic stratosphere that feel it differently. in the end, negative interest rates throughout much of the globe certainly isn't going to put positive pressure in the system. isn't policy one of the leading contributors? final thoughts. >> i couldn't agree more. i think that policy is very convenient in the wage gauges that it chooses to look at. if you ask the average american whether or not there is inflation, they will tell you there is certainly inflation. if you are talking about the big enchilada, it is rent and housing. they are more expensive for the

average household than they have been since the housing move. i think they should wake up and realize that their inflation metric is a broken one. >> don't they have a big wrench where they tighten out anything starting to eat through on inflation. home equivalent rent. >> bla, bla, bla. >> thank you. simon hobbs, back to you. >> thanks for having me. contact lens makers are taking a price war to court and the result could have a very big impact on you if you buyen could tact lenses meg tirrell is here. >> federal appeals court will hear this case which will have a big impact on contact lenses. they are challenge will go a consumer protection act. it aims to prevent contact lens manufacturers from setting a minimum price on contact lenses.

i was just talking about jpmorgan analyst, chris pasqually. he says that is a way for the manufacturers to enable optometrists to compete with the discounters like 1-800-c1-800-c and costcos. it makes sense for them to want to appeal to them. if you look at the total market, $7.5 billion. the biggest holder is johnson&johnson with accu view and after that. novartis, cooper. this doesn't necessarily have a huge impact on these company's businesses but it could have an impact on what they end up paying. the federal appeals court is hearing it later today. we should get a decision maybe in a couple of weeks. >> so 1-800-contacts, is based

in utah. >> that's right. >> the allegation is that basically they have manipulated local laws to ensure that they are able to undercut everybody from utah around the rest of the country? >> i have read that that is what the manufacturers are claiming. that's not what they told me. i did reach out to johnson&johnson. they gave us a stapt thtement t says, the utah state law prohibits to make it more transparent. it has resulted in lower prices for 65% of the viewers. there is a battle. >> in the meantime, prices have fall fallin recently. up next, the former indiana governor, mitch daniels, says that he has a solution. he'll join us live when "squawk on the street" comes right back. like your natural teeth.

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the figures for student debt in this country are staggering if well known. $1.43 trillion. 7 million students who haven't made a payment in one year. many see student debt as potentially the next big

financial crisis or certainly a weight on the economy. our next guest thinks that income-sharing agreements, contracts with investors could provide the solution. joining us now exclusively, the former indiana governor mitch daniels, now president of purdue university. governor, good morning. >> thank you, simon. >> these income-based repayment schemes already exist, i think there's already four million of them. set repayments at 10% or 15% of a borrower's income. how do you think they could help solve the crisis? >> no one including me, claims they're a replacement for what we have today. but i think they would be a very important new option to add. think of this as debt-free education. the risk has shifted entirely from the student in this case, to the investor. and the terms would be shaken out in the marketplace. it's true that 5 to 10% for a fix term of years is typical in

the countries where they're common now. but since we don't have a market in the u.s., we don't really know. and yet we think that this would be a very appealing option, certainly preferable to many students. think of it as an equity investment, as opposed to debt financing of the college education. >> there are others like the billionaire mark cuban who thinks we should be much more vaethous. he thinks there's a bubble in student debt and also the fees they are charging. he said congress should cap the amount that individual students are allowed to borrow in the private and public sector, in order that you guys are allowed to reduce your fees. what would you say to the more revolutionary idea? >> i think he's right. i think we need a lot of reform of the complicated and open-ended programs of today. they subsidize the wealthy. as well as those who actually need the assistance. they certainly have contributed,

everyone now knows this. to the run-up in college costs, the most recent evidence. the new york fed just produced an analysis that says for every dollar of additional student aid. 70 cents of tuition and cost increases occur. so i absolutely think he's on to something there. another idea i believe that has merit is that universities like ours should be partially at risk for the money that their students do borrow. here at purdue. we know our students do really well in life and in the marketplace. we feel confident and responsible in accepting some of the risk that they don't repay later. >> on these income share agreements, i mean i get the idea behind it. i just wonder, and i wonder if this is the criticism -- can a student end up having to pay more to the borrower, to the investor over time. when it's an attached 10, 15% rate than what would actually

happen if it was a more market-based interest rate that's not as attached for the full career of the student? >> well first of all, there's nothing market-based about the interest rates of today, let's agree with that to answer your question, it's entirely possible, probably certain that some students might pay more. but they would have fixed their obligation in advance at a manageable percentage. a negotiated percentage of their income for a negotiated number of years. they would know whatever their income level, not more than 5, 6, 7% works go to repay the investor. meanwhile, many students would undoubtedly pay less if life and career don't pan out. the risk again is entirely on the investor. the student is not obligated. as they are in today's purely debt-based system. you know you can't, this is onerous debt. you can't even get out of it in

bankruptcy. >> i guess the question is whether they would be gouged. whether they would enter the contracts in full knowledge of where they had been five or ten years time. you know. >> well no one has full knowledge of where they'll be in ten years. so you're fixing your obligation. no i mean we'll have to see. once again, this is only suggested as an interesting complement to what is there today. i think for some students, might be the wisest or the earliest adopters might be those who want to recapitalize themselves from debt to equity. having demonstrated some promising artistry. and having demonstrated a likelihood of graduating. >> it's good to see you. >> come back and see us soon. mitch daniels joining us there on student loans. >> the rally is building, dow up 264, let's send it to jon fortt

with a look at what's coming up on squawk alley. >> time machine, you could go back to the close on friday. that's apparently what the major indices have done. where do we go from here? >> tess la rocketing 7% higher. and could a downturn be good for silicon valley? we'll have the argument coming up on "squawk alley."

good morning, it is 8:00 a.m. at amazon headquarters in seattle, washington, 11 sclk a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪ ♪ ♪ ♪