thanks, seema. dow back above pre-brexit levels.re we heading higher from here, or is earnings season going to put a damper on the rally? "power lunch" back in two minutes. ♪ amazing sleep stays with you all day and all night. sleep number beds with sleepiq technology give you the knowledge to adjust for the best sleep ever. it's t final days of the lowest pris of the season sale, with the our bestuy rated c2 queen mattress now only $699.99. know better eep. only aa slp number store. don't put off checking o your medica optio until 65. now is a good time to get the ball rolling. medicare only covers about eightyercent of part b medical costs. e rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help save you in out-of-pocket medical costs. taking informed steps really makes a difference later. that's w wt it mea to go long™. call now a ruest this free decision guide and explore the rae of

what do you make, seema, of this group?o you think any of these three help trump with women or just the opposite? >> i don't necessarily see them helping him with women. i think mike pence could help him with social conservatives who have remained wary of donald trump's campaign. i'm intrigued by the idea of either newt gingrich or chris christie being the vice president because as vice president you have to do what the president wants you do, you can't be your own man and newt gingrich and chris christie are not known for sitting quietly and submitting to other people. so i think that would be interesting but it's clear trump is looking for somebody who has experience in d.c. who knows how the system works who's been in government to get something done because that's something he's lacking. >> but with regard to women, jay, what does trump need in a pick? katie pointed out that between, say newt gingrich and donald trump there's six marriages between them, that might be a real turnoff for a lot of women in this country. >>

hey, seema. >> that's right. while we'll hear from alcoa,ium brands, citigroup and wells fargo and jpmorgan are the first banks to report. jpmorgan could see a 3% move and wells fargo and citigroup on thursday, they could move nearly 3% while option traders per expect a 4% move higher or lower for citigroup. those companies could create an $18.6 billion in shift in financial cap for the sector. investors will likely be on their toes. back to you. >> thank you so much seema mody. >> we talk about the stocks that have rallied. this isn't an area where they've done very well. for me it sets up a little bit better for making it an up side bet. i was looking at selling the august 40 putts going into earnings in city group. to your point do you want to sell options when premiums are really low? the vix is below 14 here. in citigroup, it isn't particularly cheap. so they were actually fair live expensive and earnings is the reason. but, again, i think there is a lot of bad news baked in. you have a decent amount of down

we'll see if this leads to a emotional m & a in the cards. >> thank you very much, seema.difficult call whether it would actually follow through. >> i can't speak to what the settlement means but one thing is very important, we know that the rumor of the bid came out or the stock went from the mid-90s to 115 or something like that. the fact that the stock has remained around 110 leads you to believe that people think there's still a chance so maybe this helps that process. >> mike, would you agree with that? >> one thing i would say is that the valuation here is pretty heady, although unlike some other staples areas, they don't have any exposure outside the united states, which makes it favorable, especially for people who are concerned about the effects of a strengthening dollar. one other point i would make, though, is there's been a lot of scrutiny of the board of directors of this trust for some time. but even once you get rid of a couple problematic participants on the board, you still have the state to contend with because the trust is supposed to benefit the school

seema mody has the details. hey, seema. >> that's right. gas shares up about 4% after hours.ales for gap's u.s. stores were up 2% from the prior month. analysts were expecting a drop of nearly 4%. sales declined less than expected at gap global and banana republic but increased by 5% at old knave. analysts were expecting a 3% drop so a big surprise to the upside. gap shares, keep in mind, while up in extended trade, down about 40% over the past one year. melissa? >> thank you, seema mody. guy, do you think this is the start of a turn? >> you know, it's interesting. i think this might be the end of the turn. if you go back may 18th and 19th when they finally threw out the towel and started the shutter stores and stuff and we talked about it on the show that night. look, i get that this is a disaster but this might be the opportunity to finally get long gap. it traded $17 on the nose two days in a row and off to the races since. they still have tremendous issues, but i think if you're buying it now, you're buying it at the wrong spot, not to say it can't rally a little bit more

seema has what we can expect. >> the tech earnings rush may be over but we're gearing up for big namesreport. linkedin will look to continue the tech success. media will be watching cloegsly with time warner and 21st century fox and the real focus will be surrounding four names in particular. let's start with tesla, the options market predicts the automaker will move 7% in either direction representing a shift of $34 billion. other names reporting dow components procter & gamble and pfizer. and then of course there's viacom, expecting a 6% move higher or lower, leaving us to see how much a toll the internal strive has really taken. all four names together represents a market cap shift of almost 50 billion. not as big as last week, still a significant week for earnings. >> thank you. carter, you're playing one of these names for a likely breakout, which is it? >> it's pfizer. obviously one of the biggest health care names of all but a couple of charts to put in perspective. what i have is the s&p 500 health care sector itself and the bottom panel is relative performance. we know it's be

seema motty has horrid. has more. >> this came in as a big surprise.he international tribute rejecting china's territory claims, a critically -- china's foreign ministry quickly responding, and expressing definance. philippines, vietnam and malaysia among others, we'll see if they use this ruling to assert stronger control, pushing china to potential amp up its defense. this could increase the risk of an accident in this heavy maritime -- but the united states has also been expanding its military pressure, one to exercise maritime freedom, and one -- the assistant secretary daniel russell telling me there's no up side to china engaging in a military confrontation. >> no good will come for anyone, let alone china, particularly as it struggles with a slowing economy from any kind of military clack. >> the coming weeks will prove to be very important, meeting with john kerry, where it will likely dominate the discussion. >> joining us on the phone for more now on the situation is steven roach, former morgan stanley asia chairman. thank you so much for joi

cnbc seema mody previews what's ahead this week. >> animated animals attack, earning season begins, and big sale on amazon, all in the week ahead. start the week with animal brawl, the secret life of pets and dory are going head to head. the secret life of pets is expected to earn $80 million. finding dory is expected to take $25 million, but the domestic box office has topped $400 million, making it disney's highest grossing animated film ever. >>> j.p. morgan chase coming out thursday, and wells forego on friday. we'll hear from delta airlines. finally, amazon is making a big play for new customers on tuesday. prime day will offer over 100 black fridayesque deals. the promotion starts at midnight pacific time and new deals added as many as five minutes throughout the day. get all your business on cnbc. >>announcer: now your nbc 10 first alert neighborhood weather. >>> good morning, i'm erika martin. we have a oh lovely sunday in the forecast. lots of sunshine, a few clouds at most. but i'm also tracking increasing wind gusts by the afternoon hours, already a little breezy out there. n

seema mody has that. >> hey, carl. good morning. a tough session for europe overall, those brexit fears seem to be reemerging as policy makers shed indication. >>> and ending the session down by around 2.4%. it's the banks and property stocks leading the declines. those concerning -- not only warning of the brexit linked -- and pointing out that challenger banks could be heard in the downturn commercial property sector. the stability report which came out today basically announced the reduction, thereby raising the bang's capacity to lend to households. standard life investments is a stock to warrick. it suspended trade in the real state fund as more investigators -- so if you're looking for areas on how the brexit is impacting the uk's commission, special the is property sector, ending the session down around 5%. the escalated fears around britain's economic outlook raising the prospect, the bank of england cutting rate. we had the comments from karney last thursday so, an eye on brexit, of course, but another big talker has been a

seema mody, what's the latest? >> big, analog devices announcing the acquisition of lanier technologies. the combined enterprise at $30 billion. upon the completion of this acquisition analog devices says it sees approximately $5 billion in anticipated annual revenues. just reading through the report here, the transaction values lanier technology at $60 per share. lanier technology and analog devices shares are halted on this pending news while we wait to see where they reopen, but keep in mind reports of this deal had sent shares of both semiconductor companies higher. lanier higher than 20%. analog devices higher by 3.8%. >> good day for the semiconductors. >> linear above that offer price. we'll see what it does when they reopen. >>> dow still down 20 points but it keeps creeping higher. the s&p is now positive although by less than a point. and the nasdaq up 11. apple earnings are due up within the hour and expectations aren't that high. we'll have numbers and instant analysis for you. >>> meantime, it was pres

seema mody is in the newsroom with the headlines. >> reporter: that's right. are various reports that a truck has plowed into a crowd of people celebrating bastille day in nice, france. nice located in the south of france. it's the capital of the french riviera. there's also unconfirmed reports of injuries and possible deaths, but, of course, this is still a very fluid situation. it's unclear if this is related to terrorism or not. if this was an intentional act or not, but, of course, the situation we're watching very closely. bastille day is the french holiday. nice located in the south of france. a popular destination over the summer and as you can imagine plenty of people celebrating bastille day across france. >> seema moldy, thanks very much. the importance of bastille day, the equivalent of the french independence day so a possible incident on this particular day could have significant meaning or more meaning than on any other random day out there and this is information that's just coming in. we don't have many details. we just know dozens of people ha

seema pointed out that stock is implying a move of about 2% on earnings, but if you look on earningso the 20 days that follow, generally speaking, this moves about 5% and if you wanted to make a bet right now, you could buy the september 37 calls for just 60 cents, less than 2% of the current price. let's review that. stock usually moves 5% in the 20 days after earnings and you can buy the september at the money call. 2% of the stock price. to me, that seems like a no brainer. >> i agree. people wrote pfizer off for dead. they say everything's coming off, no room for growth. without getting too much into the weeds in terms of pfizer's products, i'm sure that sounds familiar with one or two. i will say this. pfizer at 13.5, 14 times earnings, i think it's cheap relative to peers. i think this stock has stealthy rallied. >> an interesting strategy. on the option side of pfizer. still ahead, amgen shares surging this week and hitting a high in today's session. that's making carter worth a pretty happy man. we'll explain why after the break. i'm here at the td ameritrade trader offices.

seema mody is here with the latest. >> really a historic moment, michelle. the south china sea dispute for years has been a source of anxiety. and now the united states over the past couple of months have been getting involved to protect the philippines, american ally. the concern by the international tribune which rejected china eastertorial claims in the south china sea will result in beijing expanding military presence around these 250 islands which experts say would dramatically increase the chance of an unintended conflict. but the former national security council member james keith telling me china has to walk a fine line, exert a powerful stance in order to alleviate concerns domestically but not rock the boat too much on the international stage. it does have two important events coming up this fall, the g-20 summit hosted in china and the sdr inclusion in october where it's widely believed china's currency will be officially added to the ims basket. that's been a huge economic goal for the chinese leadership. the other topic that's been spoken about

and there's a huge event coming up in the next day or so on this issue, right, seema?at's exactly right, michelle. it's a region that represents geopolitical and economic performance. take a look $5 trillion of trade takes place across the south china sea. it makes up half of global merchant shipping. and also one-third of the world's oil shipments. in fact, japan and south korea receive the vast majority of their persian gulf oil through the south china sea. but this long standing territorial dispute in this important region has resulted in an intensified conflict between china and its asian neighbors, the philippines in fact a u.s. ally, has taken china to a court accusing beijing of violating international law by taking claim over waters, and specific islands within the south china sea. the ruling is due tomorrow. and a former state department official telling cnbc that an unfavorable outcome for china could result in the country further increasing its military presence and push president xi jinping's regime to declare an air defense identification zone, which washi

se seema mody has more. seema? >> reporter: that's right.y, seen by many as a bold and unconventional attempt bay central bank to lift inflation, but some strategists say it's a logical alternative for japan which has struggled to turn around its economy despite years of quantitative easing and even the recent implementation of negative interest rates. now, there are a couple of ways japan could implement helicopter money. first, by offering structural loans to consumers and small businesses. second option, give japanese citizens a tax rebate, or transfer money directly into the bank accounts of consumers, but, keep in mind there are plenty of risks aside from adding on to japan's already large debt pile. deutsche bank warns it simply may not work as consumers could just save the money instead of spending it. other options at bank of japan could unveil tonight include buying more japanese etfs and pushing rates deeper into negative territory in hopes of incentivizing banks to lend more. it's worth noting that negative rates so far have faile

seema mody what's happening? >> reporter: they are halted.pharmaceutical firm has received a notice from the fda a clinical hold has been placed on trial of its leukemia drug after two patients died last week. again, we're looking at shares halted. they will resume trading at 4:35 p.m. eastern. we'll be sure to bring you the price action in that stock when it it reopens. seen as a major setback. kelly, back to you. >> thoughts, guys? >> ce lg ene is a shareholder. kind of comes -- it's terrible news obviously but comes at a really bad time for biotech this. group has lagged so substantially after being a market leader for the last five years so you kind of need good news no get people back in and interested. we'll see if this is kind of a one-off and if investors gravitate to other names out there. >> still have m & a action in the area with medivation sale process. juano says they have essentially asked the fda if they can continue with the trial under different terms so they have to resubmit some paperwork so it's not as if they are going t

and seema mody covering texas instruments, those chips that seem to be in everything.ou, guys. first on today's panel, cnbc's market commentator mike santoli along with stephanie link from tiaa global asset management. and for more on today's markets, "fast money" trader, guy adami. great to have everybody here. mike, a lot of different things for this market to digest. you know, as one of the analysts, i liked this one earlier put it, the runaway bull market trying to reassert itself. >> it has been. over several weeks. this was a pretty logical place for it to kind of stop and wait a little bit. i think a couple of days before you'll get fed statement, no action expected. but i think the markets are starting to get on alert for the idea that maybe the fed is going to say, hey, stock market at record high, global markets are calmed down a little bit, inflation, and economic data looking firm, maybe we're going to put the markets on notice that maybe we can get something done in terms of a rate hike this year. and today, really what you're absorbing is this deeper corr

seema? >> i want to call your attention to shares of xerox. bloomberg reports that they're in talks to purchase r.r. donnelly. remember the split of xerox into two companies is still on track, so this potential merger would involve the copy business, and shares up about 2% in extended trade. r.r. donnelly the bigger mover up, almost 8% after hours. bill and sara? >> thank you, seema. >>> getting a little pop on that report. >> yes, they are. >>> spencer jacobs says the majority of the u.s. has no yesterday how many he's --. >>ing to to figure out where it all goes wrong. >> bringing spencer in to join us. i think investing is too easy now, don't you? invest online, you combine etf, you do don't need to do the homework. >> but it's always been this way. the costs are lower. people are the same, and people are always going to be the same. we're just not very good wired. we're not even wired to understand how we do this investing. if you ask people do you think you're average or above average or below average, just like for driving or looks, they

. >>> on twitter here with seema?twitter with brett taylor to the board of directors, founder and director of quip. also formally cto of facebook and also known for his involvement in creating the facebook like button and here we go. appointing bret taylor to the board of directors, of course, a stock under immense pressure, down about 57% year to date and interestingly enough, the stock off of the lows in the past couple of weeks after microsoft announced the acquisition of linkedin and stock up 20% since that news. back to you. >> what were you saying about the like button? >> bret taylor, i was reading about this, was involved in the creation of the like button on facebook. >> huh. >> how many people claim credit for that? aren't there like seven. >> a guy claimed the #. we have had him on the show. >> that guy and probably seven that claim ownership of the like button. >> only involved in something like that, i would be putting up a banner. >> i have to say unchanged, right? twitter stock, doesn't move the stock.

seema mody is tracking the much better side of the picture for us. >> that's right, michelle.any have been surprised by the recovery in stocks post brexit. but just check out the price action in emerging markets. indian equities up about 5%. china despite disappointing data overnight which indicated weak demand for chinese goods, stock market bear up about 6% since the brexit. russia, dollar denominated terms up more than 7% even though oil has faltered in the same amount of time. and brazil higher by around 10% driven mostly by politics, the acting president there introducing new reforms. overall blackrock's jeff yen who manages about $200 billion says the political volatility in europe and the policy uncertainty in japan has major emerging markets to be a bit more attractive on a relative basis and one of the theories perhaps helping emerging markets outperform. so far this year emerging market etf up overperforming the s&p 500 up just about 5% in 2016. michelle. >> got it, thank you, seema. >>> are there opportunities in the emerging markets e.m.? let's bring in paul christ

seema? >> july really strong month for stocks not just in the u.s. but around the world. 500 gaining more than 5%. the european stocks index up about 6%. and china up, too, especially after -- before you pack your bags for the hamptons, experts say there's several factors do derail stocks in august. first, being oil. dipping into bear market territory adding more pressure on oil companies and refineries that may have thought the worst is over and even though there's no fed meeting in the u.s., central bankers from the world will be in jackson hole summit and grappling with issues like how to stimulate growth with interest rates near 0 and fears of britain's separation of the european union. yes, the brexit. meeting next thursday, governor carney is expected to cut rates and what the market is really focused is bank of england's new economic forecast which will offer investors a potentially bleak juoutlook and keep an eyen fed fund futures as expectations likely ride for a september rate hike and a lot to look forward to in the month of august, kelly. >> thank you. i wonde

seema? >> with so much uncertainty attached to europe and japan, seen as relatively attractive since the brexit, check this out. indian stock market up about 5%. china up almost 6% and despite weak export data we got overnight and remember china dtp due tomorrow night. russia higher by 7%. brazil fairing the best up almost 10%. with the brexit related concerns and fed dialling down expectations of a rate hike, is the increase pap tight for yield according to experts, and europe and japan moving deeper into negative territory is helping emerging market stocks and bonds move higher. interestingly enough, if you look at sovereign bonds in indonesia, bonds are yielding more than 7 %. compare that with a german ten-year with a negative yield. fidelity international has about $272 billion in assets under management. that's one of the reasons they are seeing such strong demand for investments in asian and emerging markets sovereign debt. >> thank you very much. mark, you know, it turns out the brex

it's down about 9% in today's trade, melissa. >> thank you, seema mody.ial media reacting faster than ever to take down terror sites following the deadly terror attack in france. that story when "power lunch" returns. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medica

. >> let's bring in seema. event of the past week are going change the political landscape? >> in the short-term it obviously dominates the head lines as it should. a week ago we were talk about hillary clinton's e-mails and who donald trump is going to pick pick as his running mate. and in the short-term i think, you know, the people aren't paying attention to the presidential campaign as much as they were a week ago. in the long-term it is kind of waiting to see. it was only four weeks ago that 49 people were dmild killed in orlando and four weeks later we're noti talking about that anymore. this has more staying power than some other recent trgtds we've seen. >> we've got to remember orlando. that said the president he's called for unity in the wake of violence earlier this week and then you have donald trump's tweet earlier today which looks like in this. look what is happening in our country under the weak leadership of obama and people like hillary. it is a divided number. do you think that will still fly

. >> thank you, seema. >> and the sell site, $8 will 00 million to sell, but we are seeing that impactight now. market well off its high. >> yeah, going negative for a moment. let's talk earnings. after the bell, one of the days of the earning season, julia bore steen and jane wells have previews and julia let's bing with you and what you are looking for with facebook. >> well, kelly, facebook has been on such a winning streak. the bar is higher than ever and the key thing to watch for facebook is whether it can continue growing average revenue. analysts expect revenue to grow 49% to $6 billion while earnings per share are projected to grow 63% to 82 cents per share. now with facebook shares up more than 30% in the past year and up about 65% in the past two years, investors are watching to see if more competition from the likes of snap chat will prompt a pull back in those shares. >> julia, thank you. jane, what are we looking for from whole paychecks? >> well, goldman sachs put a sell rating on it. you can get organic anywhere. they are expecting to fall over 2%. perhaps the current q

. >> seema, thank you. we know that unit has been struggling a little bit.bs. >> it sure is. i do think this is a parallel. they would love to sell it. they're going to do an ipo. if not, the radio industry needs to be mopped up now. you have the biggest one kind of in limbo in private equity. probably has to go through a process kind of like what newspapers have unfortunately. >> not a sexy growth story there. >> in radio? >> i can promise you that. >> if it's streaming, suddenly it's most exciting thing in town. so we'll see how they navigate. >> don't get me started. >> markets rallying today on the back of a strong june jobs report this morning. the s&p 500 closed within a point of its record high. with us now by phone, mohamed el erian chief economic advisor for allianz and dog lover. that's a separate story. the jobs report, what do you make of it? >> it's a remarkable market with the exception of short data treasuries, you made money everywhere. it speaks to what i call the goldilocks jobs report this morning. it was strong enough to give us assurance