we're not particularly bullish on alcoa or earnings for alcoa. investors shouldn't get sidetracked by one numb birth. you have to look what happens over next two to three weeks. if the overall trend line is positive. we've seen very little in terms of downward revisions for third and fourth quarter earnings. we have positive momentum. you see strong earnings. companies have to deliver. that is what we'll look at. let's not forget a little bit of a pullback today and yesterday. less than 1% off all-time highs. let's not panic. adam:less les if we wait for pull back where do you come back in the market. >> that is kind of thing here. we talk about buying stocks, hard to talk about buying here. we're less than off 1% clip of all-time highs. that is not a great place to say, go ahead and boy. i like proctor & gamble and clorox throwing off 3% dividend yield. it protects against decline in the markets. in regards to what larry said earlier, markets doing very well here. adam: i have to hold you right there. got to hold you right there, lance, because

that forced alcoa to cut back on mining and focus increasingly on finished products. a higher margin business. rolled out expansion plans of several area space related facilities and last month announced the acquisition of a jet engine parts maker for $3 billion. >> we think the next leg is aerospace. the first accusation highlights what alcoa can put together. >> reporter: so far the strategy seems to be working despite being booted, the stock claimed dramatically as products accounted for more and more of the revenue. >> the business which area space is a component went from 43% to 80%. with the stabilization, any upside from there is icing on the cake. >> reporter: there are head winds. alcoa faces increased competition from other aluminum produces and steel makers and despite diversification, aluminum prices weigh on the company's mining businesses. for "nightly business report", i'm morgan brennan. >> andrew berkeley joins us to talk for about second quarters earnings and the market. he's a portfolio strategist. we got the news and samsung warned of a possible 26

for years alcoa has been plagued by the commodity fom of lum nim, and at the same time alcoa has lacked the you poor of innovation and the wonder metal that has been usurped by other materials and alcoa can wait. kleinfeld is tackling both problems at the both time, and aluminum smelting by causing uncompetitive plants and locations where labor is too expensive. that's moved alcoa down the cost curve of the commodities and make the market more competitive even as kleinfeld takes down revenue numbers and listen revenue-obsessed investors and so what? it's nonsense as long as alcoa is doomed to be a second-rate company and alcoa has been a cause and lightweight multimaterial powerhouse. they have new kinds of aluminum that offers superior weight and strength characteristics that allows customers to create lighter aircraft, autos trucks and this is a huge displacement that involves kleinfeld dealing with the manufacturers at the highest level and it's all ceo to ceo and letting the procurements run the show. almost every single market that alcoa plays in has terrific growth and nonresident

alcoa kicks it off.he dow anymore, not considered a bellwether, but it is still the number one, and it has turned positive here, as you can see, as we get ready to report those earnings. the expectation is for a profit of 12 cents. whispernumber.com says that they're expecting 13 cents, and the revenue expectation is $5.66 billion. alc alcoa, does it matter? >> doesn't really matter. it's not much of a bellwether for anything. later this week we'll get wells fargo, next week we'll get general electric, far more bellwethers for what's going on in the u.s. economy. >> but what do you think they'll tell us? >> what i want to hear interestingly is what's going on in europe. we've seen europe bring down interest rates here in the u.s., we've seen europe weigh somewhat on the stock market here of late. i want to hear better results. nike had better things to say about europe, carnival cruise lines as well. i want to hear that from a broader selection of companies. >> i know two days does not a trend make, but

we have a very busy show with alcoa coming up. adam: we have alcoa earnings. season. we'll talk about the vix jumping up. we'll talk about what is happening right now. cheryl: let's go to nicole petallides at new york stock exchange. internet names really tumbling, nicole. >> no doubt. that was on heavy volume as well, cheryl. we saw nasdaq composite down 1.3%. linkedin down 6%. twitter was down 7%. part of this was at least to blame on options trade and push. this was hedge to balance that out. it was interesting how that happened. socl to be specific. adam: talk aluminum. alcoa, massive run up this year. 40% up year-to-date. last 52 weeks up 86%. what is going on? >> interesting to say what will happen with aluminum prices. we're eagerly awaiting alcoa to kick off earnings season and bob evans and container stores as well. cheryl: big turn for apple after it hit a 52-week high. it was a bright spot. >> closing 95.36. it hit a high of 96.80. we saw tech stocks really coming under pressure. it was hard for almost any stock to survive in the green. there were e

alcoa was kicked out of the dow last year. had it still been in the dow, it would have been the top performer up 39%. the next one is caterpillar, i believe, up 221%. similar story with bank of america. that would be the top financial institution. we'll move on. the container store is cutting its full year outlook amid a retail funk. even as the company reported a first quarter loss. the company, which went public last november, saw same-store sales for nearly 1%. in a statement, the ceo says we thought our sluggish sales were because of calendar and weather shifts, but consistent with so many of our fellow retailers, we are experiencing a retail funk. shares dropped 13% after hours. just down 14% at this point. matthew is still with us. earnings season crucial to seeing a share rally in particular here in the u.s.? >> really important. really important in the u.s. after the difficulties of q1. we know they were weather related. suggestions of q2 have been better. perhaps not as good as we were expecting to offset. the traject

the first stock suggestion is alcoa. all of a sudden alcoa is this magnificent company.t earnings report, revenues were up 7%. global royal aluminum up 34%. upstream business improved for the 11th straight quarter. earnings came in 50% above the street's consensus, and fiscal year 2015, it goes up every single week. building a construction 6% and further to take advantage of the insatiable global demand they have bought a company a jet engineer component maker. management is smart and building up blade business as well. i'm look for 17.77 cents. that's the big test for the stock on the upside. i see the stock rallying in the mid 20s. back with us is great friend of the show james. co-founder and president of new hope capital. he's here. let's see if he'll be back again. alcoa, jim? >> i might make it back then. they're hitting on aerospace, commodity market is providing a good tailwind for them. i like what they did to diversify. they did a billion-dollar deal with united technologies pratt whitney, engine fans, it's a great play. i think it will help in the aerospace. i

alcoa is probably the largest producer of alluminum for china, granted, alcoa is universal, china is one component. but this stock has been on fire since this time last year. we've talked about it. it pushes up to 18, in my opinion, morgan stanley upgraded the stock. there will be a react sell racing, i think it plays in the hands hoff alcoa. >> we talked earlier about the industrial metals. >> that area has been on fire, you look at cliffs natural, and a lot of the different names, tim mentioned a lot of the names, you look at the last couple of weeks, they have been performing. this has not been talked about a lot. you see that performance. you look over at the chinese internets. this is not a chinese story or a two-woke story, up 17%. when you look at vips, these various names in the chinese internet world other than i believe there is one that has been faltering, tim, of like, yoko i believe it is, other than that these have been on fire as you see the company education stock pummelled. i think you have to be careful. a lot are reporting. e-house is another name. i think this is

good morning to have jim back as alcoa unofficially starts earnings season. pun iring action in the momentum names, we will see fed minutes this afternoon, get a sense of what yellen and company think on inflation, europe is mixed and germany is happy they are buying anyway. road map like this, markets looking to recover as stocks stumble, cautions sprepds and earnings begin. >> speaking of earnings, a beef for alcor, returning to profitability, and shares rise in the premarket. >> skies clear, american airlines raise a forecast for shares growth margins, up sharply after a rough week for the other carriers. >> another day, another inverted dollar, a brpd new motivated tax merger this morning. marching overseas ending up in dublin. >> stocks hope to bounce back from a rough tuesday, nasdaq falling more than 1% for the worst session in two months. stocks like facebook and netflix take a hit. small caps slide. the russell 2,000, biggest two day drop since political and dow closed below 17,000. dow and s&p still positive for july, jim, but dow's in danger again

alcoa stock has been on a tear. it's up 16% is since the end of the first quarter and up just over 38.5% for the year. joining us from mshg, director of research at thompson reuters. thanks to earnings provisions, earnings in the last quarter have been nearly 3% higher than forecast at the end of the earnings season. can we expect the same in q2? >> stock advisers do not expect too much from them in the second quarter. today, in terms of preannouncements, we've received 97 negative preannouncements and only 24 positive. and as a result, we've seen that analysts have become bearish on the quarter and they have been lowering expectations from 8.5% from the beginning of the quarter to 6.2% today. however, that is improvement from the previous quarter that was at 5.6%. and so in terms of winners and losers, what we're looking at is the technology is expected to see double didn't growth of 12.3%. then we're seeing a boost from semi conductors and services and energy materials are expected to do well because of comparison

let's talk alcoa. they're reporting their sec results.his, they got booted from the dow and everybody alcoa is out of dow, guess what? the shares are up 75% since they got booted out. let's talk numbers with rich auerbach. i'm going to start with you, rich. whenever we saw a gain, i think sometimes things may be par all bowlic and unsustainable. am i right or wrong? >> there's a lot to like about this chart, but i think if we get a strong print tonight, you want to sell into that strength. i want to show you exactly why you get into this stock a little cheaper here. that's the absolute bottom, the do you bottom ticked alcoa there. it climbs above the 50-day moving average. last october, we haven't looked back. that's an extremely strong trent. you see that well-defined trend line. what i like is within the context of this pattern we develop a bullish ascending triangle. that gives us the direction of the move and a nice measured upside targets, which in this case is 1480. you havely that's where the stock is right now, but obviously we're

we do alcoa to give you the aluminum situation. and then -- >> i see. >> you see, that i didn't -- now i sort of kind of get it because a lot of aluminum goes into the container. >> a lot of them are cardboard. >> these are big box stores. they have great big -- >> you've never seen a container store? >> and all they have are containers that they sell? >> yes. >> that's why things like crumbs exist. you see, i don't know -- someone really thought this was a good idea? >> yes. it's so american. we have so much stuff we have to put everywhere and organize. absolutely. it's a very american concept. >> do they sell boxes? >> yes. they sell boxes in every color, every pattern. >> so it could be this small? >> yes. >> you can keep your fleas all the way to your -- or lies all the way to where you keep huge amounts of stuff you can find -- >> all the golf junk that you probably have at home. >> we have stored a lot of stuff reasonly. it's possible someone in my direct family has gone to the container store. do you burp the containers? >>

i think that feeds into alcoa. if i were long alcoa, i'd be taking profits tomorrow morning. >> i agree on everyone knew the story on the f-150. i think we have been clouded with xm and the recalls, i think there is a lot of more room to grow on that side of the equakes. granted stock is up 40%. you can't argue they are taking a bit of a profit. much more room on the upside on that. >>> coming up next, it's been a rough two days for tesla. the electric car maker is faid facing trades out of china. why this may be only the beginning of the sell-off for both tech and the small caps, whether the nasdaq can see a drop of 10% or more, that's later on in the show. >>> getting hit in today's sell-off. bank 06 america and deutsche bank cautioning on more weakness ahead t. city of boston also getting closer to signing a deal with a casino developer mohegan sun. >> i think ultimately winn will be okay. i think the real story when i looked at the story was mgm. a massachusetts casino resort lmpbs for the casino in downtown sp

how are corporations like alcoa helping to put the u.s. economy back on track? we'll talk to the ceo of alcoa when he joins us next ahead of a big conference he's looking forward to next week. we're looking ahead on "sunday morning futures." want to know how hard it can be... ...to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled... ...copd maintenance treatment... ...that helps open my airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells,... you can get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. noth

alcoa kicks off second-quarter earnings season today. the aluminum producer reports after the close. likely to say that profits increased after the last quarter. israel responding to rocket attacks by launching its biggest campaign against hamas in two years. willny's commerzbank probably be the next to be fined for allegedly violating u.s. sanctions against u.s. blacklisted countries. they could have to pay as much as half of a billion dollars. some of the biggest players testifying on capitol hill, offering ideas for regulating the brave new world of high frequency trading and dark pools. peter cook has more on the hearing. big names are testifying, and they do not all agree on what is going on in the market. >> definitely, betty, some differences of opinion. it includes the said adel's -- and majorfounder players in the business of stock trading and they have different views on the basic debate happening right now -- are the equity markets effectively rigged against average investors, as suggested by " flash boys" michael lewis, or ha

alcoa.ed to act and my instrument is clogged. >> the largest supplier of aluminum, the planemaker giving us his assessment of the industry and the overall economy. as we head to a break take a look at u.s. equity futures. can get a $1,000 rsou turbocharged reward card with a new volkswagen turbo. so why are we so obsessed with turbo? because there's nothing more exhilarating than a powerful ride. and you can get that in places you might not expect. like the passat. and also in the fun-to-drive jetta. in fact, volkswagen has sold more turbos than any other brand over the last ten years. that is a lot of turbo. vo: hurry in and you can get a $1,000 turbocharged reward card when you lease a new 2014 passat s for $219 a month. [b♪ll rings] time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. >>> welcome back to "squawk box" this morning. in the news, citigroup hosting better than expected earnings and re

how are corporations like alcoa helping to put the u.s. economy back on track? talk to the ceo of alcoa when he joins us next ahead of a big conference he's looking forward to next week. we're looking ahead on "sunday morning futures." >>> from america's news headquarters, i'm eric shawn. here's other headlines we're following at this hour. in an effort to try and stop iran from building a possible nuclear bomb, secretary of state john kerry has now arrived in vienna for a new round of nuclear talks with tehran. the multinational negotiations are just days away from that july 20th deadline for an agreement to try and prevent iran from developing nuclear weapons. but with no deal so far, they are expected to extend that deadline to allow even more time for negotiations. >>> a lawsuit by retired football players, including former chicago bears quarterback, jim mcmahon, now sparking a federal investigation of the nfl for a prescription drug abuse. the "new york daily news" reports the drug enforcement agency is looking into the abuse of pain killers, sleeping pills

alcoa recording earnings that were six cents better yesterday afternoon. that has the futures pointing to a higher start. the nasdaq suffering its worst day in two months as investors sold off biotechs and internet stocks. we'll get the minutes later on this afternoon from the federal reserve meeting last month, and a lot of folks will watch to see what they say about inflation and for any clues about interest rates rising. the dow falling 117 points to 16,906. the nasdaq losing 60 to 4391. and uber has agreed to cap prices in new york during emergencies and natural disasters. it's part of a deal that the popular ride sharing and car for hire app has struck with the new york attorney general's office. uber's rates rise and fall with demand, but it's been criticized for so-called surge pricing. uber is expected to apply the same price cap for services nationwide. >>> and citigroup is reportedly close to a $7 billion settlement with the justice department. the department charges it sold bad mortgages in the run up to the final crisis. the two sides were far

alcoa preparing to post results after the bell. jim paulson, chief investment strategist with wells capital management. jim, not to make too big a deal of yesterday's retreat, but the dow only had four two-day losing streaks since may. it would be an anomaly to see stocks go down. >> yeah, certainly would. i think we're building a sense of a goldie locks economy, not too hot, not too cold, and people get a sense this is a one-way train. i still think we'll have more tu turbulence in the second half. i really do. reflecting back to the jobs report last thursday, reflect back on the central theme of the bull market in the last five years is a constant puzzle for consensus why the stock market goes up when main street was so bad, and now it wouldn't be unrealistic, i don't think, to isn't that now that main street is looking better, finally, maybe there's turbulence to figure out whether the inflation threat is real and have to concern themselves with what the fed may or may not do about that. i kind of think that's where we're headed

cheryl: number one thing will be alcoa earnings after the bell. we are here for you tomorrow.s per share at $0.12, revenue up $5.66 billion. adam shapiro and myself will be here all week and we will be covering alcoa tomorrow for you. adam: writes now "the willis report" is next. you're looking at a big foster farms chicken recall announced today, right? gerri: that is right. we are talking about safety. the lack of standards the government has for salmonella in your chicken. and somebody at the federal reserve finally went to the grocery store. the federal except to the fact food food prices are soaring but what will they do for interest rates as a result? you may be ready for summer heat wave, but is your home? important news about air-conditioners. and credit card offer blitz going on. the ones you should avoid. consumers are a business. we start right now. ♪ gerri: we begin tonight with the massive outbreak of salmonella. foster farms issued a quiet recall for the holiday weekend pulling the

alcoa's been a great winner. i'm just sitting tight.n the news came out from espir espirito santo, after i sent out the newsletter this morning, i must admit, after the fed's minutes last night, i was a bit more bullish. and when i wrote in my newsletter today, it sounded like i was turning bullish, but the news from espirito santo is disconcerting enough for me to do almost nothing. >> okay. >> reporter: >> i'll sit with what i have. i'm long al co-a, i'm long a little bit of apple. i've sold calls against them and i have some derivatives still in place. i've been fortunate, let's call it great good luck, but alcoa's been a great winner and it's now starting to get to everyone's front pages. >> is this the start of a risk-off summer trading environment? >> over the last couple years, we've seen these finally fall apart. three years ago, 95% of the moves in any sector was related directly to the s&p. that's down to roughly 68% now by our calculation, and that's a new low post financial crisis, so, we are slowly unwinding these correlati

alcoa could work, same reason. agree with stephanie on the fundamental side. the stocks are under owned and due for a lift seeing better and better economic number. >>> coming up, shares of delta losing altitude, but is pete sticking with it? he napped in front of a nation. one yankee fan says it's worth big bucks. we'll explain later in the worst trade. tdd#: 1-800-345-2550 there are trading opportunities tdd#: 1-800-345-2550 just waiting to be found. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 bring what inspires you tdd#: 1-800-345-2550 out there... in here. tdd#: 1-800-345-2550 out there, tdd#: 1-800-345-2550 there are stocks on the move. tdd#: 1-800-345-2550 in here, streetsmart edge has tdd#: 1-800-345-2550 chart pattern recognition tdd#: 1-800-345-2550 which shows you which ones are bullish or bearish. tdd#: 1-800-345-2550 now, earn 300 commission-free online trades. tdd#: 1-800-345-2550 call 1-888-648-6021 tdd#: 1-800-345-2550 or go to schwab.com/trading to learn how. tdd#: 1-800-345-2550 our trading specialists can tdd#: 1-

alcoa coming in with a strong report. now this.way long-term jobless benefits and the states unemployment rate goes from 8.8% to 6.4% in a year and a half. north carolina governor joins us now. governor, that is what you did. you can't long-term benefits. you said no more. >> that is right. the biggest news, though, is the federal government. about 2.5 is now we have less than $1 billion. will free up money from businesses. the two if you drop a rate of 8.826.4 in approximately 18 months, are you saying that all of those people simply got a job or did some of them just dropped out of the workforce? >> our data is starting to tell us that people are two cops. manufacturing is coming back. especially in north carolina. we have a great quality of life. we are creating new jobs. people are taking the jobs that are being offered. in the past employers were telling us that people were not taking entry-level jobs. both you and i have taken a job that is not our dream job. we took the job that was offered. that is what is happening now. i

a 52-week high, two year high for shares of alcoa. aa is the ticker. that is our power mover. >>> oil prices tumbling yet again after a jump in u.s. supplies and the reopening of libya's largest oil field. u.s. crude declining for a ninth straight session today. oil is down more than 1%. we're at 1.21, a fairly substantial jump in the last nine days of trading. brent crude falling eight days to a one-month low, we're at 108.31. as you can see on the show. we have traders on the floor of the new york stock exchange and the nymex. i want to go on the oil story to the cma and kind enough to stick around for me, thank you, phil. with regards to inventories. what a heck of a drop in the oil markets, though. it has been incredible. you know, and what you're seeing here, cheryl, is we know that all the run-up in oil that we saw the last couple weeks was really concerns about iraq and losing that supply. the market is not worried about that anymore, experts have gone up to the highest level we've seen in years. and the story over the last couple of days that l

alcoa is expanding the facilities in virginia and indiana, and of course acquiring jet engines parts maker for 2.85 billion. this added product push is super anthony razuto said more fundamental value and long-only investors have been buying the stock, this despite it's exile from the dow. >> meg, thank you as well. to dom knick chu, the market flash. >> check them out today, it's the only sector in the s&p 500 that's in the green. the sector hit hard over the course of the last week, but they are coming back in today's trade, or maybe a safe haven trade at risk here. if you look at dow jones utilities up about -- now leading the way higher, names like first energy, agl resources. aep, and of course duke energy as well. the bick utility stocks are the leader so far this year and continuing to catch a bid in today's down market. >> dominic, thank you very much. >>> gim shares off their lowing of the years, but still down almost 9%. the recalls a big problem, but so is luxury and cadillac. phil lebeau is live in chicago. phil? >> this is a noteworthy, when you look at the luxury segmen

alcoa is set to report tomorrow. what are the option traders expecting?ere it was interesting. we saw well above average options volume. but the trade i saw that was most interesting was actually the one perhaps the women traders were making, were expression a little cautious. they were spending a little less than 15% for less than 1% of the current stock price. if you take a look at what this stock has done over the course of the last year, spending 1% of the current stock price to insure a 3% downmove on earnings seems like a pretty good bet to me. >> thank you so much, mike co-. we come right back. stay tuned. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. if yand you're talking toevere rheuyour rheumatologistike me, about a biologic... this is humira. this is humira helping to relieve my pain. this is humira helping me lay the groundwork. this is humira helping to protect my joints f

. >> alcoa and bob evans kick off the earnings season. bob evans, a nice place to have lunch. 1:00, richmond fed president jeff lacher speaking. soon after in minneapolis, the fed president. >> very interesting, maybe the fed president and nobody knows but should know. >> there is your morning brief. >> let's look at the data check. equities, bonds, currencies, commodities. a sustained equity market. 17,024 on the dow. 10-year yield, 2.59%. nymex oil pulls back. 11.33, still outstanding. brent crude. and there is gold. let me go to the monitor here. this chart does not go back to 1789. year, new low rates. irwin with a great article in "the new york times" today. >> the idea that every asset around the world including spanish bonds is in a bubble. >> we will talk about it. talk is almost too much to about today. we look at the front pages, the webpages. here is our front page. here is scarlet fu. >> israel is launching more air and sea strikes in gaza third and military says 50 targets struck in hamas controlled region during israel is al

alcoa had nice growth, yesterday, great. overall companies are not growing. new employees are not being added. we're not seeing manufacturing jobs. we're not seeing areas of targeting where we don't see growth. there may be a few outlyers that will show it. the overall picture looks very murky. could we see 2,000 in the s&p? sure. market and main street are not related to each other. one is investing. one is earners. earners are not earning money. in fact we're earning less money than 10 years ago. we're paying twice as much for goods and services. the problem, when do we run out? we'll see how it works out. i do not see growth. i look for very disappointing earnings season. adam: rob you had a comment about the euphoria stage of a bubble. tell me where you would put your money to work right now in this kind of environment. >> i think that the market did very well with an indication that easy money is coming to an end. i don't know where todd, what todd's looking at. the employment report that came out was terrific, 280,000 plus jobs. they revised april to hi

alcoa kicks off a slew of reports.ll, second quarter earnings are expected to grow 5%, just shy of 5% compared to last year. sounds great. good profit growth. itis not as strong as the 7% originally forecast. with stocks near all time highs, they need to help justify that strong growth. >>> general motors recalled more than 27 million vehicles in the u.s. this year. the auto maker resisted recalling more. the national highway safety administration is investigating corrosion related brake failure in trucks and suvs since 2010. this affects millions of vehicles from 1999 to 2003 model years. the rusted brake lines are a maintenance issue that affects it entire auto industry. i's not just a general motors truck problem. the vehicles would still be capable of stopping. two minutes to the top of the hour. "new day" starts now. >>> breaking news. one of the worst storms in over a decade is slamming into japan's southern islands this morning. it's home to a large u.s. military presence. the powerful typhoon is packing winds u

alcoa kicks off after the bell in about 14 minutes time.but talk you through the european close in europe -- we saw stocks trading to the downside at the close. lower-than-expected reading on industrial production in the u.k. brought some uncertainty. there was a disappointing trade onoming out, putting a cap trading or undermining the stock market. let's take a look at individual companies -- airline shares after a proper warning from klm -- the dutch carrier says profits this year could take a overcapacity in the industry and lower ticket prices after shares were down nine are sent on the close of the back of that news. also sawline groups their stocks impacted will stop german banking shares came under pressure following reports that they are looking to settle allegations they did business with companies blacklisted by the u.s. they could pay -- they could face fines of up $2 million dealing with countries like iran and sudan will stop bmps theravada agreed to pay a fine just last month. and it's a sponsorship shocker -- nike is doing ou

alcoa. charles: alcoa was at eight or $9 per share for a decade. charles: look at this chart now.that. i still think it has a long ways to go. they have the right industries. the aluminum being scarcer. i think they have pricing power. alcoa is becoming a great looking stock. you know what, it is a lesson on life. a lesson on how to run a business. stuart: i do have breaking news coming from reuters. a plane crashes in ukraine near the border. no word yet on why it came down. it did in a very sensitive part of the world. treasury secretary jack lew calling on congress to crack down on tax inversions. we have a senator joining us from capitol hill now. the great divide is taxes. on the left they would not be caught dead cutting any taxes, on the right, you want to cut them off. >> senator baucus, we have the highest corporate tax system in the world. that is why companies are looking at these obligations. we should be doing everything in our power to make it attractive. most of which have been supported by the democrats. i have not even seen a response. this administration is not d

finally the action in alcoa, and i hate this, i hate this. this time last year wall street almost uniformly hated the stock. holding ceo klaus kleinfeld in contempt. i needed bullets. i needed ammo. every night i said to people this stock at 8 and 7, it's a buy. tell you to buy it. all right. now what's happened? 100% later alcoa is the most loved materials stock out there. analysts adore klaus' approach to closing expensive plants. the critics who wanted the company to break up, the one who is flame me every day -- how did they get my personal e-mail? oh now they love the finished product and the downstream model. ceo kleinfeld, he was a dope, right? now he's a visionary! except here's the thing. the stock's doubled. the move's already been made. they use the equity offering to pay for the aerospace acquisition so then you can get in a lower price than the 16 bucks. i also wanted to out the clowns who told me to dis kleinfeld and i know all their names. but you know what, i've become in my older age way too jeffersonian to do that. my inner

charles: and my subscribers are in alcoa, and i've always considered it a boring company.ness was to be expected, but it picks up tomorrow -- if it picks up tomorrow, we could see this profit-taking thing accelerate. it's a good test, though, for the stock market because, well, here's the thing, for those late to the rally and who have paid up, it's going to test your resolve. a lot of people came in late. there's also a reason, though, why you want to diversify. it's extraordinarily important. you can't come in swinging for the fences, buying the high bid stuff looking for another $10 tomorrow, but whatever it is,k don't panic because i think overall we're going to be okay. i just wanted to give you a heads up. kate, i know we've got a few tweets. you want to share one? >> one good one on at share says my 11-year-olddi shares. he uses birthday money. >> that is so, so beautiful. that's a wonderful thing. back in the day everyone used to get the certs, and those became collector's item. >> they don't. they're so pretty, too, we still have one or two. charles: really? that

earning season kicks off with alcoa, and wells fargo reporting good results. legalizing recreational pot, washington, will begin sales. on wednesday we get the minute from the open market committee meeting in june. thursday is the anniversary of apple's app store and friday is the bankruptcy confirmation. get ready to pay for your student loans for new borrowers. there may be a way to get them forgiven or reduced. personal finance correspondent is here with the details. what about the hike? >> well the hike is going to cost a lot of new borrowers more money. when you look at the stafford loan, we're talking about a rate going up as of july 1st to over 4.5%. take a look for graduate students, their loeans going up to 5% to a little over 6%. these are the most expensive federal loans, jumping to over 7%. these new rates are for loans distributed between july 1 and july 30. >> that seems crazy at a time where you can get a 30-year mortgage on an house. what's it's going to mean for monthly payments? >> $4 more per month. some say it's just $4 extra a month. it's

. >> obviously, you've got earnings kicking off tomorrow with alcoa.he s&p capital iq numbers, 6.5% for 2q, up 3.4% in the first quarter. we're moving ahead. the grinding up, you know, 8% over in the third quarter up to 11% in the fourth quarter, full-year 2014 looking at about 7.6% earnings growth. should help the market move ahead. earnings, cash, accommodation from the fed, all that put together shows a bias towards equities. >> you think earnings will meet expectations, then, this time around? >> that's what's been the typical game plan. obviously, we start with a little bit of trepidation and, overall. >> you agree? >> it's baked in the cake for this year and looking forward to next year, 126 to 128 is almost already baked into the cake. >> those numbers being? >> earnings for the s&p. >> in other words, $126 per share for combined s&p, for those of you wondering what those numbers were wanting about. there's a feeling that if the jobs numbers continue to get stronger, the fed will have to raise rates sooner rather than later. at least two houses

alcoa from earlier in the week, a clean beat.wells' numbers today, even though they meet estimates. >> wells meets -- alcoa a serious beat, and analysts recognize the stock is -- it's a cyclical commodity play to one with secular growth with a lower cost commodity attached to it. that's really what you knee to see. you have to see multiple things to drive the stock here, and alcoa gave it to you. our markets up big going into the month. >> yes, yes. >> you know, it's okay to see profit taking. >> also four of the last five julys have been positive. by a pretty good amount. historically, we're not in a bad season of the year. >> right. >> let's look at the opening bell here, s&p at the top of the screen as we head into the weekend, final session of the week. at the big board, north star, asset management celebrating its spinoff of north star realty finance at the nasdaq, sky blue sc, new jersey franchise in the national women's soccer league doing the honors. very nice. >> i was a coach there a long time. >> a couple high profile

minutes from the federal reserve's policy meeting with an encouraging start to earnings season with alcoa reported profits. they combined to send stocks higher. the bankers seem to agree on when to wrap up the latest bond buying stimulus plans but differed on when to raise short-term interest rates. despite that, investors like what they heard. the dow closed up by 79 and the nasdaq up 27 and s&p added nine. steve liesman has more on the minutes from the latest policy meeting and what the central bankers are thinking about how and when they will announce the first rate hike since june of 2006. >> reporter: the federal reserve providing details of how it will bring the great monetary policy. minutes of the june meeting show the fed planning to end qe by october if the economy improves as expected. the fed will hold onto the $4 trillion of bonds purchased on the balance sheet until rate hikes begin. at that point, the fed could let the balance sheet wind down to normal levels but gradually. the fed said little new when it will hike interest rates and how much. that leaves the general market

flying higher and we'd be saying, alcoa's made its turn and citi, maybe it's time. >> proved to be ategy, right? buying the ones -- >> honeywell got the boot. what a great one that was. aig, delivered consistent results. >> with yellen hitting the hill, she's -- >> tuesday and wednesday. >> tuesday and wednesday. >> also profile in the new yorker with nick lemon. >> nick? >> all right. got to get that. >> expect more talk of inflation, more acknowledgement perhaps of that, and a little more hawkish tone and -- >> are people going to get scared? >> have insight, better than anyone else, anyone in the world, "wake up with al," al roker, what matters the breadbasket of america. anyone ever to the valley in california knows that really is where food comes from. and this drought is just killing this country. it's causing noisy inflation that janet yellen talk bpd gasoline's coming down. >> first drop in ten weeks. >> yes. >> wheat, greens coming down. but the problem is, the breadbasket of the country is burning up, we're short water. we don't know how to move water around in the country.

. >> i think we expected some good results from alcoa. there is not much complexity to the whole story. on the other side of things, they've been getting a bigger premium. we have heard all of the stories about deliveries of warehouses and delays. you see that reflected over the quarter. on top of that for the rest of you -- up of the year, they are predicting a bigger supply deficit in the previously forecasted back in april. for the company, a decent set of results. this is a template for companies the common earnings season? >> it is the format of the dow. yet theompany, i think market these results. a company for over $3 billion. >> we know they are cutting back on that. it makes sense that they do something further down stream which is what they are doing. they are building up their manufacturing side of the business. sales were expected to grow by 60% over the three years. they're doing that at the u.s. it is the aerospace company they are pushing into. i think it really matters right now because the markets are a pretty big levels.

market was down, but after hours, alcoa numbers were pretty good.t, which seems a bit of a bellwether for u.s. earnings, kicked off the season with good numbers after hours. citigroup under pressure, according to "wall street journal" and others now, it appears they may have to pay $7 billion to the doj and others as part of a settlement regarding sale of mortgage-backed securities. analysts had expected originally the figure would be around $1.5 billion. $7 billion, a huge chunk. and of course, it follows on the french bank, bnp paribas, also having to pay a lot of money to u.s. regulators to settle claims within the last week or so. >> and steve, let's talk about our iphones, because we've got information that there's video out there that's floating around showing how the new iphone and its screen is going to be more indestructible, because that's one of the bigger complaints people get. murphy's law, as soon as you get a new iphone, somehow, you break it and the screen shatters. >> yeah, this is something that's been talked about a lot. marks bro

conditions have not been met for example the lifting of the blockade of gaza hamas is minute she when the alcoa sign brigades has said that it will increase the intensity and ferocity of its strikes on israel this comes as the israeli army has said that it will says it will cease its strikes on gaza so far today if hamas had accepted the cease fire at this stage it would have struck a blow to the organization given it has not been able to exact real numbers of casualties on israel because of the success of israel's missile interception the iron dome system. almost two hundred palestinians have been killed most of those civilians israel's been able to strike the masses rocket launching infrastructure and cause a vast damage to the hamas organization here so there are those in israel who say that israel's operation has basically been vastly successful and that israel if hamas would accept a cease fire now would actually be winning for itself in the medium to silence in terms of rocket fire being launched from gaza against israel civilian population in the south of the country we visited one of ga

earnings season kicks off with alcoa, family dollars and wells fargo reports results. on tuesday the consumer credit report is due. tuesday, the second state to legalize recreational pot, washington, will begin sales. on wednesday, we get the minutes from the fed reserve's open market committee meeting in june. thursday is the sixth anniversary of apple's app store. and friday is the deadline for creditors to vote on detroit's bankruptcy plan. >>> get ready to pay more for your student loans. an interest rate hike went into effect this week for federal student loans for new borrowers, but there may be a way to get those loans forgiven or at least reduced. many people don't know about those. personal if correspondent sharon he wereson is here with details on this. first of all what about the hike? >> the hike is gonna cost borrowers a lot more money. when looking at the biggest loan that federal loan people have is stafford loan, talking about a rate that's going to go up as of july 1st to over 4.5%. taking a look at for graduate students, their loans are going to go up