what can we expect the rest of the way? meg turrell explains. >> here is what to watch for in pharma and biotech in the second half. the habitat will continue to be hot with gilead expected to receive approval on a drug combination in october and more data on drugs from merck and bristol-myers in november. among biotext, expect clinical data readouts on important pipeline products that could have big implications. and never discount m&a. analysts expect it the record year to continue. and the second half's largest deal may in fact be a rerun of the first half. analysts expect pfizer to make a second run at buying astrazeneca. that's the second half. for "nightly business report," i'm meg turrell. >> so what is next for the stock market and which sectors will be the winners and the losers? we turn now to steven whiting, global chief investment strategist at city private bank. steven, thank you so much for joining us. >> thank you. >> who would have guessed back in january that this is where we would be in july? what is your

we had expected u.s.es to rise at the beginning of 2016, now late 2015, but in europe, not for a very long time. >> also, making a recommendation that investors buy the weak balance sheet firms versus strong balance sheet periods in the s&p 500. and closing growth versus value in the russell 1k, too. can you walk me through the logic on the two trades that they're pushing right now. >> well, i think the back drop in terms of refinancing for companies is extremely good. in fact, we have a similar view here in europe, as well, that companies with higher financial leverage had have a relative boost to refinance assets at lower rates. that's something that can be quite supportive for those companies for a period of time the. >> so that supports the weak balance sheets versus the stronger. but kind of counter intuitive. again, a strak contrast to the european message. >>> you're looking at live pictures of berlin as fans await the arrival of the german national football team. they've just landed in germany. we

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 comparisons. on the flip side, we're only expecting to see two sectors see a decline in earnings where financials sector taking the biggest decline at 2.7%. high mortgage rates have been appearing and as a result there has been less refinancing activity. that's why the sector has been weak. but what's interesting is consumer

louis fed saying that we should expect or could expect a rate hike by 2-1 of 2015.he right now, the markets are set in mid 2015 to be at 11% by the end of 2015. it's still pretty mild if you think about it. so i didn't take a lot out of what she was saying, but i found it interesting that she was pointing to the continued drop in unemployment as a sign of positive. i think there's actually still a lot of concerns that i have certainly for the economy at the moment. >> talk about that. so, for example, we're seeing, for example, imf and world bank lowering their expectations for u.s. growth for a total of 2014. and what they're saying is that the winter freeze that we had, all of that activity that was lost is now lost forever. and that really, i don't think, has been taken into the markets at all. the markets are still quite brilliant. >> if you look at earnings right now, too, 8% anticipated pick up in earnings right now. just a small fraction of that right now is about sales at 3% rather than what we're seeing in terms of buybacks in m&a. that's a crucial problem,

looking at the expectations, much weaker than expected at 104.5. let's get straight out to our guest. we were expecting to see a bit of a pullback to these numbers, but significantly weaker than expected here, too. >> yeah. that's a disappointment. i think especially after yesterday's pmi, it's surprising on the upside. here we are now for the fifth consecutive month. clearly, the data in general and the hard data are slowing down. >> you mentioned the survey data as of yesterday. why the divergence here? >> yeah. i think that is part why i think in general data, both server data and hard data are coming down somewhat. i think we have seen a direct mainly from global growth and from the euro appreciation we saw last year. and especially having an impact on industrial sector. i think that explains to a large extent why we have seen particular weakness there. >> and what about political risk has been hitting survey sentiment data right now. what's your sentiment there? earlier this week, he believes the eurozone is one knock away from deflation. how

pmi expected to ease a little bit. but after the surprise we got on the manufacturing data this week, you have to wonder whether that could surprise to the upside, too. let's get a check in on what's going on in the asian session this morning. i guess you have to expect ecb, payrolls keeping investors there, poised and ready for action, sri. take us through that china services pmi number. 15-month highs? >> absolutely. this is a very strong number at the official levels of the sector. so it really tells you two things. primarily we are starting to see some stabilization after the slowdown in the world's second largest economy. probably the impact of all the cumulative targeted easing that we've seen over the past couple of months. now, the second point is that, clearly, the chinese economy is now rebalancing in favor of more consumer-led, more private internal demand. so remember this dynamic, this transition where the chinese economy is rebalancing a moving away from export-led investment led growth towards the consum

it's not intensifying more than expect expected. the path is not going to change. we have 18 hours until the storm will be exiting the outer banks. it will move quickly. the only thing that can throw a monkey into the storm is if it intensifies more rapidly. the pressure has been dropping. we have an eye here. at worst case scenario, we probably deal with a category 2. the official forecasts are a category 1. extending to the coastal areas. wilmington area and myrtle beach. we've extended it a little further into south carolina. this isn't just a north carolina storm. 75 mile per hour. anything above 74. 200 miles pretty much south of the wilmington area. the wind feels kind of small. i do not expect a lot of wind damage. this is where the damaging winds will be. that will be over the outer banks. the official forecast, the new one just outdoes bring up to 85 mile per hour winds right over the outer banks about 2:00 a.m. friday and then clearly off the coast by about 2:00 p.m. and as far as new england goes, cape cod is out of the cone of uncertainty but nova scoti

but nissan is expect to release results later today. what is expected, craig?, going into this fiscal year there were two things that were really to be on the look out for talking about the japanese car makers' earnings. one of them is the japan market itself. it hasn't panned out thus far. the first three months were not so bad. the first two months you saw a decline for the industry. but actually in the month of june you saw a small increase. there is maybe upside from the perspective of looking at the domestic market. the other thing is currency. he previous year you saw currency was a boost. the expectation is that wasn't something you would see. there hasn't been much movement on that front. but on the basis of strong demand holding up after the tax increase and a rising u.s. market, there is maybe expectation that you will see what were pretty conservative estimates or forecasts given by the car makers. you might see them bump them up as you have in past years. >> all right. thanks. craig just mentioned we will be watching nissan's results from tokyo toda

of expectation.very time we run up to an ecb meeting, there is this weight of expectation, something new, new policy, a new way of implement and things. he wants to break that. we're going to a six-week cycle. then when it comes to matters of clarity, this is the interesting thing. for 30 years, it was suggested that they keep minutes. but it was suggested that minutes be locked up for 30 years. the cheap economist said it is absurd that anybody should be deserving of minutes. there is enough transparency. when it comes to the heart of it -- you have got a huge number of people in the central bank, what is good for greece is not necessarily good for germany. we get more insight into the thinking. morgan stanley says it will provide insight. barkley says this is about bringing the european central bank up into a parallel level with its cohorts like the fed in terms of disclosure. have a look at the euro-dollar. it is fascinating. yesterday the euro moved on the back of the payroll numbers. two occasio

more protests are expected tomorrow when the next 140 are expected to arrive. >>> it was a record day on wall street. the dow closed above 17,000 for the first time ever. >> after the closing bell there were fireworks and everyone was celebrating. analysts say a positive jobs report pushed all three major indexes higher today. the dow is up 92 to 17,068. the nasdaq is up 28 at 4,485. >>> crews are making progress in the fight against the wildfire burning in the napa valley. >> and that fire north of napa has tourists in a panic. how businesses are being effected. >> allegations of corruption inside the san francisco city attorney's office. the scheme a former employee says involves sewers and kick backs. >> and how does the power go out for a 911 emergency call center? that is the question being asked tonight after it happened in the south bay. female announcer: sleep train's 4th of july sale doesn't just end sunday... it's going out...with a bang! through sunday, save $300 on beautyrest and posturepedic. plus, pay no interest for 36 months on tempur-pedic and serta icomfort. big savi

stronger than expected jobs report lifted the dow 92 points to close at 17,068. the first time it has crossed the 17,000 mark. the nasdaq gained 28 points. the us services industry is bouncing back it, expanded for the second month in a row after a dip from harsh winter weather. services industry makes up 90% of the us work force, including retail, construction, healthcare, and financial services companies. >>> mortgage rates nearing historically low levels. mortgage company freddie mac says the nationwide average rate for its 30 year loan dropped to 4.12%. that's down from 4.14 last week. and two of the nation's largest drug store chains reported increased pharmacy sales in june. wallgreen climbed more than 11%, and rite aid saw 5% jump as more customers filled prescriptions. cvs the other top drug store does not report monthly results. and that's your money watch. for the latest business news go to cbsmoneywatch.com. i'm jericka duncan, cbs-3, "eyewitness news". >> coming up after a short break, traffic and w weather together. >> be right back. hi. i'm shawn jo

on that note you can expect big changes later. you've likely heard about severe thunderstorms later on. enjoy this while you can and mentally prepare for next month which is also predicted to be cooler than average. with temperatures expected to hit the 90s today. naperville is trying to cut down on electrical usage. the city is asking residents to conserve electricity. not because they're expecting a shortage. here are a few tips. >> as the shades blinds or curtains. use major appliances before 3:00 p.m.. turn off unnecessary lighting and electrical equipment. think about cooking outside on the girl. police looking for four suspects in a home invasion. they may be heading to chicago. the latest on the investigation. >> the victim's mother and five gunmen to of which may be her sons are new to the area. unfortunately police say they're not cooperating and that is slowing down their investigation. >> the end of women in their 40's. two v to the young men were beaten. >> the victims ran to a neighbor's home and that is one police we

however, the utility group did beat expect ages with ebitda coming in below expectations. a lot of headwinds in that capacity and there are wholesale prices in europe, particularly in spain. we're going to be speaking to the ceo at 11:10 cet about the impact of some of its russian operations, as well. stay tuned to that conversation. >>> in the meantime, generale had a 1.2 million loss on the upcoming sale of its swiss banking unit. let's get out to julia for more on this. julia, what was the take away messages from generale today? >> generale says this is their strongest half year in seven years. in particular, as you quite rightly said, if you strip out the exceptionals here, both for life and nonlife, they beat expectations. it's in the process of reshaping this business and stripping out the core. they're now lying at 162%. if you look at the combined ratio, too, a measure of the underlying profitability, further gains there, a gain ahead of expectations right now. you look at the stock performance, compare it to the underperformance we've seen, i think it comes down t

we do not expect it to move inland but we do expect the wind and the rain to be moving onshore through mostly new jersey and delaware. here is a look at the storm on future weather, shows us the rain from the storm, we go into friday morning, you notice the heavy rain, shown by the oranges and red, a majority remain offshore, some could be moving into our shore towns, new jersey:also del wear by the middle of the day tomorrow but also starting in the morning, so some of the shore impacts, we could see wind gusts higher than 35 miles an hour. also, dangerous rip currents expected friday, even through sunday, and a surf advisory has been issued because of six to eight-foot seas, going to be pretty rough at the shore starting tomorrow. now, for the july 4th forecast for the area, north and west, early rain possible and clearing, philadelphia, i-95 corridor, early rain and clearing. along the shore, rain and wind, but not clearing until late, do not go swimming at the shore tomorrow. that is for sure. especially as we go into the weekend. the conditions do really clear up along the shore b

, they will raise rates sooner than they expect.mbers for measuring up better than they expected. we have to watch these inflation numbers the next couple of months to see if they move back toward the 2%. we have been below the objective for two years now. adam: this is perfect for you because you are an economist. on one hand is the fed's gauge of inflation really moving the way it needs to? in real-world inflation the food is going up dramatically for all kinds of reasons that have nothing to do with economic recovery. we have drought, viruses killing some of a cattle and pork. they don't factor that into their inflation equation, yet we have to pay more for food. >> if this is truly the form of it, it is prices rise at 4.5% rate for the annually adjusted, 3.5 3.5 the month before, two te month before and one month before that. there has been some consistent uptake in inflation, but it will take the fed more than a yea yeo really believe this is what is happening over the long term. i think that is what the market is saying. sayin

what do you expect from those two. >> coming up at city, coming into the quarter, expectations really came down hard this year over year down 20 to 25%, trading activity. citi seemed to see things pick up in june, that can help them get over a hurdle. what you said is very important. making a good return on investment is very difficult. you still have these litigation issues. we like to think on wall street they're one off, at the end of the day, they do add up over time. and there's trading activity low. these big banks are getting to be in a position where they seem very cheap, and maybe we're getting to an earnings level for these guys. >> everyone's worried about higher interest rates, the word on the street is, this is good for the banking sector. are these buys? i know you have for jpmorgan a buy on it, is it time to pick up as many of these stocks as you can? >> as you go into the back half of the year, have you to think, the fed is going to stick to their word, who knows if they're going to raise rates, they're going to stick to their word they're going to raise them. there's

stake that's expected to go public in early august. that's what investors were focused on. yahoo said it would return half of the after tax ipos to shareholders and reducing the number of shares yahoo is required to sell at the alibaalibab alibaba ipo from 208 million shares. when reading through the notes of the report, it's trying to capitalize on the alibaba investment as the core business continues to struggle. back to you. >> thanks a lot. seema mody reporting from the nasdaq. >>> now to the big apple ibm news. back in 1984 apple skewered ibm in an ad portraying it as an evil big brother. today the companies are a bffs. tim cook and vir gina announced they will team up on more than 100 apps that will combine the strength of ibms an lcalled it massive mobile reach via the iphone and ipad. the theory here, combine ibm east strength in enterprise computing with apple's keep it simple know how serving real people doing real work on tablets. tim cook says this was a deal that just had to be done. >> it takes the best of apple and the b

they could be expected to dry up by later tomorrow.l be saturday or sunday for business. early estimates is that businesses could lose 25% of their profits. christ marcy, thank you for joining us in north carolina. just before the hurricane is expected to hit. we are a few moments away from the opening bell. a top 10 stocks you do not want to miss. keep it here. ♪ >> welcome back. it is 26 test the hour on this job say. julie hyman has more futures, barely budged on this move. >> they sort of budged. but yes, if you look at the veryes, we are seeing little change, even though as we are talking about the numbers him a they were written much of of the board that are than estimated. the limiting factor is the federal reserve. say, can now will janet yellen wait until the second quarter of 2015 to raise rates if you are getting joss reports like this, continued wage growth, other types of inflation. as the debate goes on, we are trading at record. that is the very important context to keep in mind here to keep an eye on the dow 17,000 toda

the storm not expected to hit land. now earlier this morning, city officials ordered mandatory evacuations for cape hadaras, that's off north carolina's coast. >> we are taking this storm very seriously, and i asked that all coastal residents and visitors do the same. >> other evacuations are expected as the storm grows and it could bring up to four inches of rain. now because of the storm, some city ace long the east coast moved up their fourth of july celebrations. the annual boston pop's concert and fireworks show will happen today to avoid any impact from the hurricane. the show could be canceled though depending on the weather. >>> also happening now, the northbound lanes of 280 are closed from the 101 interchange to near at&t park for construction. the closure is creating tricky traffic in the areas as thousands will have to use already jammed streets and 101. and the interstate's going to closed until monday and some giants fans who usually drive on 280 have to consider another we to get to today's game. >> it'll

do you expect that sooner?the risk because people doubt that inflation will pick up, that the fed will be able to follow through on its own guidance. you need to follow the data to realign consistently every month. when you start to see their gap close. >> the dollar index has been stuck in a narrow trading rate since last september, 79 to 81 for the best part of a year. what will break it out of this range? >> i hate to put it back to rates but that is exactly what it is. when you think about whose now until a policy is in question, it is the fed, not so much the ecb or the bank of japan. we know what the ecb easing program will be for the next couple of years. we know what the pog -- the boj easing program will be. it is really the fed, which is a bit. more in play right now >> are we going to get some sort of speech in the second half of this year or some data point that will suddenly wake up the market, out of this though -- this low volatility environment we are in and that rates will go up in the u.s.? >>

that said, while low expectations can be a boon, high expectations can be a curse. that's how you can lose money in reit stocks where everybody expects nothing but the best. it's hard to do better than wells fargo last friday when it reported a fantastic quarter with amazing growth. however it had been delivering consistent numbers and had run into the quarter, which is why it went lower on those results. the expectations were too high versus the group. now the stock had run into a quarter. johnson & johnson had become too expensive versus its cohort like wells did with the banks. same thing. nevertheless like wells, i predict a momentary setback. i expect j&j will resume its climb after this pause. i totally get owning cheap stocks and waiting for something good to happen isn't immediately rewarding or gratifying. many are sick of hearing about cheap stocks. my trust suffered betting at a certain point maybe they would be too cheap relative to expectations. it took ages to play out. now i bet it proves worth the wait. i won't sell them the first day of outperforman

strong storms expected today. storm tracker 6 live double scan showing we're not entirely dry right now, but it's not raining in philadelphia. we have showers in wilmington. we want to go in closely in southern delaware and southern new jersey. we're watching the development of a thunderstorms one just about to hit dover. i wouldn't be surprised if that's showing lightning soon, as well as showers and thun

can we expect meaningful progress? >> we cannot expect meaningful progress. since the 2012 election we've been expecting republicans to move for a combination of the substance dealing with the big problem but also their political imperative. they need to do better with latino voters and democrats have been pressing. the senate passed a bipartisan bill. people like marco rubio on board and the house consistently said no and john boehner the speaker said the house is not going to act this year. so the prospects for comprehensive reform are not good at all. >> what is the purpose of the president meeting, as i understand he's going to, with rick perry. is there any common ground there? >> not much. there is common ground on the narrow question of dealing with this humanitarian crisis. that is something that goes across party lines. you've got tens of thousands of children who cross the boarder unaccompanied from central america. this is something that is not directly or not comprehensibly involved in the larger immigration issue but a problem immediately. that's

a lot of folks are, of course, expecting a larger format i phone 6. a, are you expecting that?ring chatter they can't get enough sapphire to get it out there in big numbers and, thus, almost immediately an iphone 6s or whatever, for the larger format and this would not be much of a larger format at all? is that what you're thinking? >> we actually believe there's going to be two models coming out, as you alluded to correctly. kind of within that we do actually see a premium brand for the higher one, and then the lower one will also be very strong performance, too. you're referencing what's called sapphire glass, a premium protective cover on it. there is some discussions about, will that be ready in time or not? so there is a potential, it could be a staggered launch, but regardless, we think with or without sapphire, we think this is going to be the best selling product out there. >> jim, cash pile going up again. are they manages their cash effectively as far as you're concerned? >> they are not. could be doing more with their cash. keep in mind the history and legacy of appl

let's talk expectations.s say the adp report is likely to show 280,000 jobs this month. the second quarter gdp figures are likely to be the market's main focus today. growth probably regained speed in the second quarter to the tune of a 3% growth rate. gdp shrank at a

they are expected to make $8.5 million. investors are also going to be listing comments on other legal issues including the broad investigation in mexico and progress on citi submitting their plan to the fed. >>> and now we'll look at the german market session high er around 25%. the second earnings forecast beat them at 5.3 billion krono. plans for the main opposition party to raise bank taxes could weigh on growth. jan erik back is joining us. thank you for joining us. a solid set of figures and take us through the highlights of the quarter. >> yes, good morning, i'm glad to. we have been trying to grow our bases over the past two years by attracting clients and we are doing that in all segments of where we operate. i think that all those new clients and the increased activity we have with all of them is improving the operating profit on the economy throughout. there is no particular income line that i want to point to. we look at the depth and relationship with the client. so that's the main driver behind the improved re

revenues higher than expected, comp is going to be higher than expected or at least the accruals of comprships, as you well know, they pay partners out of the pretax income of the firm at the end of the year. this kind of thing where they are accruing big bonuses is a new public a buddy phenomenon. >> bill with us -- point two $2 billion, higher than anticipated, down 22% from the preceding quarter, down about 9.8% in the same time last year. equities revenue pretty much a mind with what analyst's were looking for, $1.61 billion. >> so that year-over-year 9% is a good number. asked by the way, do scrolling through the press release, the reason they are making so many outside gains, revenues up 40% aboutt year-over-year, $1.3 billion taken from investments. that might be why the beat. >> bill cohan, thank you so much for coming to us across skype as well. users advancing negative 3 before the the 30's, now -1. stay with us. it is "bloomberg surveillance." ♪ >> good morning, everyone. "bloomberg surveillance." move, up ahs on the good 2%. i'm tom keene. with me scarlet fu and adam johnson

this year on that though we expected to adopt and pass the amendment to mandate.nity bank is supervisory experience. i welcome the appointment of the community bank or board. they had a great deal to the work that we do and i've worked with community of thinkers like a governor or the community bank supervisors mike then governor raskin and seeing how that experience may contribute to our work so i am very positive on the idea of having a community bank or appointed to the board. there are several governorships they have many different needs i think if we were to sit down and make a list of all of the kinds of expertise that is needed and useful there would be more than seven items on that list and i would prefer to see appointments made in light of the priorities including for the community bank or rather then for the indefinite future walking in and earmarking the particular seats for particular purposes. i feel that as a road that can go further in the duration that would worry me if we are earmarking we could end up earmarking each seat for a particular kind o

we expect? > we can expect a lot of people, a large media contingent is gathering outside the federal getting in place ready for the trial to get going tomorrow morning at 10:00 which will begin with jury selection. we can expect a lot of commotion family mcdonnells and members walk inside the courthouse tomorrow. mcdonnell rnor bob and his wife face 14 federal charges alleging they accepted $165,000 in loans and gifts including private plane rides, rolex from johnny williams for helping promote his virginia.n defense attorneys arc the former governor never promised to help official nd took no state action on his behalf. that bob ngs suggest mcdonnell's lawyers will argue that maureen mcdonnell accepted williams without the governor's former knowledge. we talked to a proffer from school of law and he said the defense will call plenty of witnesses testifying moral character of mcdodge but the prosecution has a convincing case. i think that the evidence ere is very strong that mcdonnell was clearl

point it was issued by the dutch prime minister marketer he's expected to speak a little later on he said on monday that there was only one main priority for the people of the netherlands get those bodies here get them out of ukraine and get the the identification process underway to try and give these families that have been really battered from pillar to post emotionally over the last few days to give them some kind of of rest by to know that their loved ones are. in the netherlands for those dutch citizens that were killed there back home of course there are many other citizens of other countries that were onboard that plane all of the identification will take place here before those bodies are repub treated now. the superstar into your center out to the netherlands forensic institute sorry to interrupt you there peter we're getting the pictures of the second plane coming in as well you've mentioned there were sixteen bodies on board dutch plane and twenty four on board the australian time that's why we're getting pictures of two planes coming in what's the scene greeting these pl

they are expected to generate $1.2 trillion. one risk for uber and air b and b is backlash from politicians and regulators who question the safety and security of these services. that could limit the market share these companies ultimately grab but uber's executives say such concerns are unfounded. >> we have better insurance coverage than any other ground transportation provider out there today. and so businesses are covered end to end and their employees more so than any other means of transportation today. >> reporter: only time will tell whether uber and air b and b can have the same success with companies as consumers but today's announcement is a big shot across the bow and entrenched players in the space. josh lipton, "nightly business report", silicon valley. >>> that will do it for "nightly business report" for tonight. thanks for joining us. i'm tyler mathisen. have a great evening, everybody. we'll see you tomorrow. >> the following kqed production was produced in high definition. >> stephanie george: so start turning

. >> hiring sprees, private businesses add more jabs than expected last month increasing optimism about tomorrow's employment report. >> traders can find value in this record-setting market. >> side effects, are discount prescription drugs not purchased at pharmacies safe? the results of a six-month investigation. we have and and more tonight on "nightly business report" for this wednesday, july the 2nd. >>> i'm bill griffeth in for tyler mathisen tonight. >> i'm susie gharib. good evening from me, as well. more americans are back on the job at the office, at school, at the mall and at construction sites across the country and that's raising expectations for a strong june jobs report from the labor department tomorrow. adp reported today that private sector employers added many more new workers than expected and the most new jobs added in one month since november of 2012. gains were seen in every sector of the labor market with small firms, those with fewer than 0 employees hiring the most. hampton pearson has more and what to expect in tomorrow's report. >> reporter: one day ahead of t

expect a mix of clouds and son share.ore sunshine than anything. >> everything is looking good on the roads. >> several people have been displaced after a patio collapsed in the west town neighborhood. it happened in the 14-hundred block of w chicago around 1 a-m this morning. the entire concrete section between two apartment buildings fell 10 feet into the basement. nobody was on the patio when it collapsed. but three people had to be rescued by emergency responders. authorities are not sure what it sounded like an explosion. we went outside it was a big hole in the backyard. we're lucky it happened at 1:00 in the morning and people were not out in the back because if anyone was in there it could have been a disaster. >> authorities are not sure what caused the collapse. a building inspector has been called out to look at the damage. hurricane arthur has come ashore. arthur made landfall around midnight near cape lookout, north carolina... packing 100- mile per hour winds. that makes it a category-two storm. it moved far

>> they are expecting half a million. i think they'll get the figure. hong kong is a loud place at the best of times, it will be louder today. >> the reason for the pept up anger -- pept up anger is on many levels, a perception of chip he is intermps -- chippees interference in hong kong's affairs. people believe that china is knoiping back op its -- going back on its promises. the issue is the election. n leader. what we have are differing interpretations of the deal that china and hong kong signed. hong kong had a unique set up, one country, two systems for 50 years. it comes to an end in 33ors time. what you have here now is a growing realisation that in 33 years time, this will be just another city. it's interesting that many. faces you see behind me are those of young people, people who are perhaps only a few years old at the time of the handover. they are very much apt the forefront -- at the forefront of this political movement. while half a million people are expected to take part in the protest, hong kong is one the most law-abiding places on e

what you see is that about 49% expect that if they're wrong, the fed will be more dovish than they expect, and it's about 30% that think the fed could be more hawkish. what you see basically is pretty good agreement in the blue about what happens this year. less agreement, which is what you'd expect going forward, about what happens in 2015. guys, in the next hour, we're going to come back and talk about what the people think, how this whole monetary policy is going to end. will it end badly? or will it end smoothly? that's the next -- >> all right. >> excellent. >> steve, sit down. we're going to talk about this. >> because there's a really bright guy right at the table here. >> there is. >> and i don't mean brian. >> ooh. >> not that he's not bright but he's not the bright guy of which i spoke, of whom i spoke. >> let's talk about the person you were referring to. >> the person i was referring to. >> jeff rosenberg. fortunately we do have him for the next two hours. >> he's a market master. >> chief investment strategist for income at blackrock and a "squawk" market master. you heard wh

what should people expect? >> folks over in the eastern portion of china have to deal with a lot of rainfall. a tropical system typically brings copious amounts of precipitation. when it starts to slow down it going to dump a lot of rain for an extended period of time and that's when trouble starts to happen. here is a look at the satellite imagery. you see the circulation now fully inland and starting to move toward the north. it is still dumping a lot of rainfall. let's look at some video out of the fujian province. you see the flooding where the storm made landfall wednesday evening. the capital city was seriously inundated and vehicles were soaked in water. people had to wade through knee deep water along the sidewalk. the storm triggered landslides and strong winds and many fishing vessels were also overtu overturned. on top of that, over the last three days, close to 700 millimeters of rainfall fell in some places. that's a lot of rainfall. and that's something that needs to be taken into account as we go

strong storms expected today. storm tracker 6 live double scan showing we're not entirely dry right now, but it's not raining in philadelphia. we have showers in wilmington. we want to go in closely in southern delaware and southern new jersey. we're watching the development of a thunderstorms one just about to hit dover. i wouldn't be surprised if that's showing lightning soon, as well as showers and thunderstorms moving through sea isle city, right now. you have to be careful as you head out. it will be a different scene later today as you expect more of the storms moving through the area. there's a flash-flood watch in effect today and tomorrow evening, as well. we could see one to three inches of rain in a relatively shorepoint amount of time. the flash-flood watch encompassing much of the area, not just the southern zones along new jersey and delaware. the temperatures is 735, it's warm and sticky. 72 in allentown and 73 in millville right now. we're heading up to 91. him here's how the day will unfold, 81 de

that's what all of us expected. that's what he expected.what his mates expected, and the whole argentine public expected. so i'm very happy for the team in general, and also for him. it's obvious he is a key player for us. >>> our correspondent joins me now life from bane necessary ireries. how are people there feeling about messi right now? >> well, i think maybe surprised by his grandfather's opinion. i think the opinion of most people is the only one who is really performing up to expectations is lionel messi. the rest of the team really needs to raise their level. it begs the question what game has his grandfather been watching up until now? >> do you think argentina will get any better in this tournament? the >> i think the expectation here is that they can only really get better. obviously they won their three group matches without really performing as people here expected them to perform. okay. we're now -- argentina is now in the last 16, and i think the expectation is that really that team will gel, the rest of the team will raise

million expected.n lender says litigation costs are unpredictable having raised concerns from the previous quarter. pretax profits at the bank closely watched assets just beat forecasts while product at its bit client units fell short. we can have a look at how they're trading in the markets right now. deutsche bank under a bit of pressure this morning off the back of those results. we can show you the performance of the stock, at least the latest performance. good morning, phillipeo. take us through your thoughts, initial take on the numbers. >> yeah, well, on deutsche, i think the bank is a little concerned about the -- in terms of litigation. they say litigation is unpredictable. and more increase in the reserve of the litigation. from 3.2 billion which is more of a -- >> some expectations out there are 4 to 6 billion euros as far as future litigation costs over the next year to two years. is that one of the crucial concerns right now is they say it's unpredictable? we don't know how much it's going

7%, which is higher than expectations for the overall s&p 500. revenue growth is seen growing a solid 5.5%, double expectations for the overall market. wall street's strategists say many tech companies are among the most strongly managed businesses. >> the strongest balance sheets of most companies in america, very strong cash flow. their earning's growth and overall earnings by the way since 2000 have become among the most stable earning companies in the s&p 500. >> reporter: tech companies now make up about 20% of the s&p 500 so how these companies perform has a big impact on the market. yahoo kicks off the tech earning's parade next tuesday. expectations are for flat growth and investors are frustrated with that lack of a turn around at the company, still yahoo bulls say marissa mayer's focus on improvement and user engagement will eventually pay off and you're looking for yahoo to benefit from the 23% stake in alibaba which will likely go public in august. intel reports a few years ago the chip giant raised estimates for stronger demand in co

so i expect it to be largely successful. now, that doesn't mean perfection will be achieved. >> if inflation -- >> i was going to say, they want 2% inflation and 5.6 or so percent unemployment. will they hit those exact numbers? i doubt it. >> right. >> that's just asking for too much. inflation could come out a little higher in the end, it could come out lower, also, but there is a possibility inflation comes out a bit higher at the end. >> professor, thank you, as always for being with us. alan blinder. >> you're welcome. >>> the national labor relations board served up a victory for fast food workers fighting for better working conditions at mcdonalds but the restaurant chain says it's fighting back. both sides agree if the findings stands it could change the balance of power in an industry that employs one in every ten american workers. scott cohn has the story. >> reporter: fast food workers say they are over worked and under paid and they have been protesting. mcdonalds says it doesn't set wages and hours, it's franchi

remember, every single line was better than expected. the two that stood up to me, commercial real estate up 14%. that's extraordinary. credit cards up 12 %. now, you know, look, you want to do anymothe interest game margiu can't look at the one-time hit. every single division up. nothing to dislike. >> average loan balance in commercial loans up 7. although mortgage originations, obviously, down 66% year on year. >> right. >> he talked about his health and degree to which he'll remain involved as treatment begins. listen to that. >> i feel great. i think i have some of the best doctors in the world. i'll be receiving the best treatment. i'm fortunate this is curable. i do plan to work. i plan to read. i will be accessible. >> obviously, one. questions investors had. >> sure. well, you know, wish him the best of luck. sounds like a very positive situation, those of us who know people who have or have had cancer, obviously, what you want to is to hear the person will not be defeated by the chemo and radiation, a tough combination. some on

they are all expected to survive. >> reporter: how do you expect this to effect the morning commute? >> we are are going to try to get this open as fast as we can. but it is an ongoing criminal investigation so we will take as much time as we have. but hopefully we will open it by 7:00, 7:30. >> reporter: the deceased has not been identified yet. but you think she may be related to the driver? >> she is the registered owner of the vehicle and we're assuming that the driver was her husband. that is still under investigation at this time. >> reporter: thank you very much, sergeant. we will continue to stay out here and monitor the traffic and bring you updates. reporting live from sunnyvale janine de la vega ktvu channel 2 news. >>> now to our continuing coverage of malaysia airlines flight 17. the passenger jet with nearly 300 people on board blown out of the sky. this morning there is word that a second black box from the plane has beenly recover -- has been recovered. the jet went down in eastern ukraine just about 30 miles from the russian border. it's an area controlled by proruss

so these guys are all obviously expecting a short term bump to the upside.n take a look at ought distressed retail fames where activists have taken a look to see what happened. pet smart announced they were taking a look at the stake. a quick short pop there. take a look at family dollar. same thing, as soon as the announcement came up, the stocks did that. take a look at this, traded down afterwards, let's look at maybe one of the post-well phone cases, j.c. penney and bill ackman, when he got involved, stocks shot up, went sideways. he finally bailed out after it went down here, i think the important thing to remember is that all of these nails have some real distressing story behind them. the street hates this name, revenue is florida eps growth is coming because they're doing more buy backs than in capex. what you are looking for is a short-term pop. look out below in case i get this one because they're making sure bullish option. >> they will gain to figure out who the activist could be, the retailer under some distress. >> forget about bed bath the tru