the big thing is how much of the united technologies salesforce would come over.is that much. rgarlet: that was "bloombe intelligence" guess george ferguson speaking to olivia sterns and me. and the risks around when the federal reserve will finally, finally raise interest rate. maybe this year. ♪ betty: it is noon and san francisco. 3:00 and hong kong. >> history in the making. restoring formal diplomatic relations. the battle over multiple -- mobile payments. how paypal paved the way to a new area of digital commerce. betty: can i be of win over investors once again? once again watching big blue into the close. -- can ibm win over investors once again? stephanie: good afternoon, everyone. i am scarlet fu. here with olivia sterns. the s&p trading around a record high. it was like a l valley. of record rally on stop. overall looking at another record with the nasdaq, the third straight day it has hit a record since we both. scarlet: volume in nasdaq

united technologies has agreed to sell helicopter maker sikorsky to lockheed martin for about $9 million. atat the same time, lockheed said it would sell portions of its commercial i.t. and cyber business. regugulators must review the deal and some say it test the pentagon's call that major contractors do not merge. lockheed is now among the wor's leading helicopter systemem integrators and would now control one of the wor's helicopter makers. discussing the importance and the challenges the deal might face, rcw all men who headed the policy office during the last merger cycle. stephen grubman of the atlantic council and jeff of the sutherlandnd law firm, neither of whom are engaged in any of t these deals. thank you for joining us. eve, i want to start with you. why is lockheed getting into thee helicopter business advising getting out of that t portion of the i. space? steve: like any big merger, there are lots of regions -- reasons. the annououncements need to be thought of together, the amount that they are going to acquir sikorsky, and that ty are going to divest revenufrom i.t. and

, united technologies has seen it biggest the climb in about four years after its spun off aerospace, lower market demand than anticipated. ibm, 13th straight order of sales down, quinton, 13% as well. i wanted to point out that we saw in chesapeake energy. this was having its worst three-day streak in three years. lowest since 2003 after suspending dividends for the first time in her teen years, the second-largest natural gas producer along with oil that we don't talk about as much thomas lumping. this has presented a challenge is for chesapeake as they have tried to diversify their business towards oil in a time when they have not been doing well. i wanted to talk about gold futures. you heard alix talking about that a little while ago. gold futures still trending lower after this terrible, horrendous no good streak that gold has been on. the futures market is continuing. 1100 $1000 ounce, that is $11,001 perting -- ounce is where it gets tricky for marketing. the prophet court -- profit forecast for one company dropping from the force time in a month. demand weakening the units for

united technology was 50.why the discrepancy between the dow and s&p which closed lower by nine points. 0.43%. nasdaq coming off a record high down a little less than 11 points. we are way deep in earnings mode. we have a barrage of earnings heading your way. kayla tausche waiting on microsoft. julia boorstin yahoo, dom chu gopro and josh lipton will bring the apple numbers from headquarters in cupertino. >> we'll sing show tunes until they come out. >> apple will be the biggest in terms of setting the tone. >> apple and microsoft are big bellwether names. today was about those earnings. you mentioned it was ibm verizon. it was a bad day for earnings. that can change in a heart beat. if we get a good number from apple or microsoft or the next couple of days there are tons of companies to report. see what the companies have to say. >> we've got a lot of market movers. we talk about how earnings become a secondary indicator of the markets. everyone looking at what the fed is saying in news. these are earnings yo

united technologies coming out with earnings disappointed. e helicopter unit to lockheed martin. says it is remaining businesses are not performing as well as expected. 13 straight quarterly decline. verizon added more subscribers. forecast forales the full year. cutting price competition from competitors. the commodities complex coming back a little bit. turned the work. it was rebounding. crude oil has been rebounding as the dollar turned lower. if gold continues on that door turns around and goes higher. for now, the boost in energy is helping energy stocks. that is helping this them into clients in the s&p 500 or little bit of both or. exxon mobil and chevron rebounding. slowa: finally feels like -- summer. volume a little bit lower. thank you so much. in asia the shanghai composite closed up for a fourth day hitting 4000 for the first time since july 1. the hang seng off by half of a percent. the nikkei rosanne cheaper oil and weaker yen. one big story, a seven and two china's ipo has slammed the brakes on what was of the inner year for b

all dow components united technologies, ibm, verizon, united health and boeing. look at united tech down almost 8%, folks. and it was a big morning, of course, for corporate earnings. it's going to be an even bigger afternoon on the docket. apple, microsoft and the aforementioned yahoo!. they were just talking about it. we'll get you ahead of all of the trades. mandy has gone down to the heart of the action at the new york stock exchange. hi mandy. >> it's a down day, as you said but being driven by a few stocks as you mentioned. ibm and united technologies for more than 100 points of the dow's drop. bob pisani joins us here on the floor of the stock exchange. >> we did not color coordinate ourselves. >> but it looks good. a happy coincidence. >> the important thing is if you look at ibm and united technologies, put them up for me, they are about 120 points to the drop in the dow that we're seeing today so very very unusual action, and that's why the dow is much weaker, for example, than the s&p 500. we are having a problem, again. so in the first quarter, put up

and now we will talk united technologies later quarter to quarter revenue slowing of the economy is not only important for china is important i think that is the reason why apple is down this hard. the conference call will tell the story. charles: china was spectacular that is the big chunk of that. house short-term oriented and performance oriented people have become. there was the new ones around the edges and people jumped the gun without thinking through these. charles: yesterday you said the market bush crash i have a lot of people saying he was right. >> they give for that compliment but they key if you were let lung dash dealing with the stock market or apple but do not overreact. >> i think he was onto something and i guess we will be lower i like apple lots but not the rest of tech it tells of is a lot of complacency. >> talk about the theory indicator but the fix has been low for a long time maybe we are complacent why we get does knee-jerk reactions i don't know why they consider investors with the stocks go up because we have seen the script over and over alternately they ar

shares of united technologies are falling the most in four years, dragging the rest of the dow down with it. the company cut its profit forecast for the second time since june. united technologies says it's aircraft parts is this and otis elevator unit are doing worse than expected. yesterday, they agreed to sell their sikorsky helicopter unit to lockheed martin. scarlet: mixed results for verizon, adding more than a million customers in the second quarter thanks to tablet promotions. profits beat estimates but they cut their sales forecast for the year. they're having to compete with price cuts by rivals like t-mobile. a shakeup at toshiba over an accounting scandal. the company will have to restate earnings for six years. julia: toshiba announced that his twoident and predecessors will resign over the company's flawed accounting practices in which top executives set unrealistic profit and the resignations are effective immediately. a number of other executives, including two vps will excite and the new management team will be announced in mid-august. pledged to correct its earnings by

united technologies fell 7%. verizon dropped more than 2%. travelers was one of the bright spots after it reported results this morning, that dragged down the dow overall, which fell 181 points to 17,9119. the nasdaq was off 10 points and the s&p 500 fell 9 points. dom niks chuinick chu has more on today's earnings. >> reporter: the dive in the dow today was the result of a broader base selloff. a vast majority of which finished the day lower, the stock that drove much of the weakness was united technologies. the diversified industrial technology behind pratt & whitney aircraft engines and carrier aircraft systems reported earnings that beat forecasts. overall sales fell shy of expectations. the company said that orders from china for its otis elevators and escalators business fell. as a result of that it cut its full year forecast. now, remember the company also recently announced the sale of its sikorski helicopter business to lockheed martin. another decliner on the day was verizon communications america's biggest telecom company. it repor

united technologies, ibm all reporting weaker earnings that dragons out lower. down nearly 205 points at this hour. is lower after closing within three points of a record yesterday. the broader market has been stuck in a 90-point range since february. the nasdaq is also lower. gold is trading lower right now, down a little more than .10%. for the first time in seven sessions, however, admit declines in the dollar in crude oil climbing from a three-month low in new york with the dollar slipping for the first time in five days. nymex crude right now trading at $50.46 a barrel. betty: you can imagine treasuries are rising. down fromar coming its highest level in almost a month. investors seeking that save haven status. finally, in the currency market, the dollar is the start today, weakening for the first time in five days against the euro. that is pushing up commodity prices. some top stories crossing the bloomberg terminal at this hour, another tough quarter for ibm. big blue reporting falling revenue for the 15 quarter in a row. the ceo has been trying to overha

the worst day for united technologies since september of 2011. session there. >> getting no lift from the sale of this sikorsky unit which was announced yesterday. >> let's get back to headquarters, melissa lee and the half. >> thanks, guys, welcome to the halftime report. let's meet today's starting lineup. joe terranova, josh brown, jon and pete najarian. earnings bonanza, four hours left to trade. apple and microsoft we've got your game plan. the facebook overtaking big names in value. is it a must-own stock? let's get to the earnings parade, apple, microsoft, gopro, chipotle on deck. >> the one we'll talk about all day long is going to be apple. when i look at apple early in the first half hour

ibm, and united technologies and fears that apple might not measure up. a bit overdone, yesterday may have been overkill on the topside here. i only mention this because it's north of 200. normally i don't. more after this. . neil: we are getting word that the president has ordered all flags across the country be flown at half-staff in memory of the five soldiers killed on july 16th last week. critics said he should have done so immediately. flags will be flown at half-staff. in the meantime, there is a bit of a sell-off going on, on wall street, dagen, what's driving it? >> stocks fall and go boom, neil. three market cages, the dow down more than 200 points, a lot of that selling, a lot of those losses, half of them roughly are driven by both united technologies and ibm. lack luster results there. you want to talk about commodities lately getting creamed. gold falling to fresh five year lows, oil is up a little bit today. but all of these commodities, sugar, silver, copper, all in a tumble. some of the selling sparked by weak global demand because of the

ibm accounts for 60 down dow points and united technologies down 33 points.take out two stocks you've got a pretty flat market, not the 100 point claim that we're looking at. let's get to apple, near a record high. they report after the bell today. come in sandra. >> they made a billion dollars a week with profit with the last report. it looks to me like investors think they're going to make more with this report today. >> especially because they're buying the stock ahead of it there's some optimism there. i tell you where there's some concern and that's with iphone sales in china. it's been the key point for apple earnings most profitable at apple. when you look at china, everybody is talking about potential slowdown there and the economy that we're seeing. if china has overtaken the u.s. for the biggest for apple, and there's an economic slowdown i'm going to be listening to that on the earnings call. >> they're trying to beat their own numbers and against themselves. >> and that's the question isn't it? and sandra is right. china is a big one, look for com

stephanie: united technologies is tumbling the most since 2011. i want to get back to julie hyman. s. they were selling the helicopter unit to lockheed martin and they are cutting the profit forecast for the second time is june citing weak demand and its other units. it is a problem if it is making this big sale and what it is left with is not working shares are at the lowest this year. aftermarket aircraft operations. if you are looking at your major units that are not selling as you would want, that is a big issue. the company just saying that it is going to be looking at restructuring here. in the meantime a big pain for the stock and for shareholders today. erik: thank you so much. now we will talk about a revolution that is coming and it will change everything you know about cars. matt miller is here with more. matt: self driving cars will be commonplace within the space of a decade. at least that is what mckinsey and company are saying right now. automotive industry experts work there. dominic, thanks so much for spending some time. let me ask, first of all, i spent some time

reuters reported lockheed martin has a helicopter from united technologies for $80 billion. the deal expected to be announced this morning in the cards to lockheed martin in the helicopter under the same roof as the 35 fighter jet. big job is coming at barclays. the bank plans to eliminate 30,000 jobs within two years after firing ceo anthony jenkins last month. the reductions bring the workforce to 100,000 by 2017. cuts are good to cut staff in the middle and back office operation. u.s. companies are a little less optimistic about sales in the third quarter after growth slowed in the prior three months according to the latest survey from the national association of business or business investment is expected to be reduced hiring wishes increase out likely to continue at the current pace. take a look at headlines in today's "wall street journal." clinton to push raving about the capital gains tax rate. hillary clinton will propose a revamp of taxes that would hit some short-term investors with higher rates. it would prod companies to put more emphasis on long-term growth. aa

yesterday, the dow dropped 181 points thanked to more disappointing earnings from ibm, united technologiesnd verizon. >>> this story is pretty shocking. chrysler is vulnerable to be hacked into and remotely controlled while you are driving. two researchers proved that several models have flaws in their wireless service that connects them to the sprint cell phone network. watch what happens to this rider from "wire" magazine. ♪ >> i can't turn it down. >> this is such a fun video. >> air-conditioning is blasting. the music is blasting. and i can't see anything because of the [ bleep ]ing windshield wiper fluid. >> the hackers can cut the brakes and shut down theing in and make the car drive off the road. chrysler is now offering a software upgrade to fix it. >>> president obama making his final appearance on "the daily show" with jon stewart and used it to promote his nuclear deal with iran insisting a catastrophic problem has been taken off the table. the president crowing about his recent obamacare and free trade victoryies and says he is not done now. >> the way i feel right now, i have

if you look at the three dow laggard dragging down than aboute, we are talking united technologies, ibmnd verizon, all taking a big hit. nearlydown the most in four years after its earnings came in below estimates. remember that it selling it sikorsky helicopter unit to lockheed martin. it's remaining units, it's core elevators and its aerospace business, and market demand is not with the company was expecting. ibm also suffering. sales down 13%, down for the 13th straight quarter and down across all its lines of business . the company has been trying to turn things around but has not rated yet. verizon, one is cutting its sales forecast. then there is qualcomm, which is higher today. " saysall street journal the company is planning a sweeping strategic review and may end in a breakup. barrys something rosenstein's firm has been pushing for. come atncement could the close of tomorrow. chipomm is known as a company, so what are these two businesses it is going to split into? this chart comes from bloomberg intelligence -- the white line is the chip business, which is about a 4.4 billion

. >>> a deal to buy united technology's sikorski unit. company that makes black hawk helicopters. loks heed will sell or spin off $6 billion in other information technology services and businesses. lockheed up almost 2% today. ut was off a fraction at 110.48. >>> pay pal saw its shares jump in the company's return to the nasdaq. the payment service company began trading as a separate firm following its spin-off from ebay and the sale valued pay palate more than $50 billion. shares up almost 5 1/2% today. sun eson are buying vivid solar. a solar system company for nearly 2 billion. another one of sun edison's spin-offs plans to raise more than a billion dollars in its initial public offering. sun edison up slightly today to 31.66. teraform fell. how about vivid? it surged 45% to $15.75. >>> and shake shack announcing plans for a secondary share offering. stockholders will sell up to 4 million shares of the burger chain, and the company won't receive any proceeds from the sale. shares tumbled initially in after hours trading. at the end of t

united technologies earned $1.73. 2 cents above estimates. revenue was slightly below forecast. rofit of selling its aircraft unit to lockheed martin. lowered operating forecast in part to reflect the sale. and i remember when we had the new ceo on. they do tend to get things out of the way. i think wehen we had him on they were talking about things slightly below the previous estimates. that's at $109. down about 1.3% this morning. can you read? >> down by $1.48. >> the market was trembling because it was below $2.57. yeah. >> i can't read that. one year it's down, what? 5%? 3%? 3.52%. says the voice in my head. >> you can look here. >> i can't even see that there. i only wore one contact. >> me too. >> and yours works? maybe i need a stronger precipitation. >>> earnings topping estimates for i be rks m. the stronger dollar continuing to weigh on the company. ibm has been selling lower margin businesses when we look at the decline in the futures this morning for the dow, a lot of that is ibm which is lower by nearly $9. >>. >> what about the dog that was wearing glasses? >> what

it's really only two stocks united technology and then on the other side was ibm. also something that you cannot even really blame ibm for. they are currently moving towards more cloud software, just like oracle and sap. profit margins are large acre -- a lot bigger and that causes revenues to take a tumble and investors are fleeing out of that stock. >> not that much going on macro economically. what about apple though? is it able to save the day? reporter: apple currently is not out and it might save the day especially tomorrow. we might see that stock at going through the roof if apple managed to beat expectations are ridiculously high. wall street is looking at a revenue of 31% and profits up 35% over last year. so that would be quite an achievement. and if apple manages to get over that bar then we will certainly see a strong move to the outside tomorrow. reporter: what are consumers expecting from apple? reporter: aside from the numbers, it is mostly two things. how is the iphone doing? generally the second quarter of the year is the weakest for the iphone. h

industry is off as much is that the s&p is off by have a percent, and it all boils down to ibm and united technologies. joe: they were a big contributor to the dow selloff rated but you can see by the diversions between the dow and the other indices, this was not a particularly ugly day in the market. this was a couple of docs, and the silly way that the doubt was greeted where a couple of stocks can have a huge impact. alix: it does point out that health care reit up about 57% of the rally we saw in the s&p so far this year. do not health care, you have industrials do not have technology helping. what goes on? are about to get a bunch of tech earnings coming out, so maybe they will save us. boldly earnings are crossing right now. julie hyman is looking at them right now. polio earnings coming out to cents ahead of european chipotle earnings coming out to cents above estimates. cough sales up 4.3%. the estimate was for a gain of 5.8 percent. that is going to be the key number when you were the net chipotle. we are seeing that initial reaction as a negative one. been such a study, dependable grower for

it's really only two stocks united technology and then on the other side was ibm. also something that you cannot even really blame ibm for. they are currently moving towards more cloud software, just like oracle and sap. profit margins are large acre -- a lot bigger and that causes revenues to take a tumble and investors are fleeing out of that stock. >> not that much going on macro economically. what about apple though? is it able to save the day? reporter: apple currently is not out and it might save the day especially tomorrow. we might see that stock at going through the roof if apple managed to beat expectations are ridiculously high. wall street is looking at a revenue of 31% and profits up 35% over last year. so that would be quite an achievement. and if apple manages to get over that bar then we will certainly see a strong move to the outside tomorrow. reporter: what are consumers expecting from apple? reporter: aside from the numbers, it is mostly two things. how is the iphone doing? generally the second quarter of the year is the weakest for the iphone. h

important thing i want to focus on is united technology. guidance is really poor overall and it was largely on arrow space. this is their profit. if you include the impact of the dollar they're down 25 to 75 million, but if include the impact of the stronger dollar, look at the difference when you include the affects of the dollar and this is just projections. this is a lot of money, my point. everybody keeps talking about we need growth but we also need a weaker dollar. that would be a huge help to overall earnings for everybody here. i spent yesterday talking about the impact of the big four and the big five on the nazsdaqnasdaq, how they were moving things around because they had such a big move in the month of july. they're a little more muted today, and i'm throwing in microsoft as number five. july has been huge for anything with any kind of growth and put up the big five in july. look at them. apple and even microsoft was up here but these impacts have been huge and they've been moving around the nasdaq 100. look at the july returns.

the worst day for united technologies since september of 2011. so a rough session there. >> getting no lift from the sale of this sikorsky unit which was announced yesterday. >> let's get back to headquarters, melissa lee and the half. >> thanks, guys, welcome to the halftime report. let's meet today's starting lineup. joe terranova, josh brown, jon and pete najarian. earnings bonanza, four hours left to trade. apple and microsoft we've got your game plan. the facebook overtaking big names in value. is it a must-own stock? let's get to the earnings parade, apple, microsoft, gopro, chipotle on deck. >> the one we'll talk about all day long is going to be apple. when i look at apple early in the first half hour of trading 260,000 options traded. two to one calls to puts. the stock was higher and now has pulled back to 130. the most interesting trades has been the 150s in august purchased today. large blocks, out there in july, going to 138. when you look at number, i think the one number that's gets beaten by a lot will be the iphone number. i think

nearly 200 points tuesday, hurt by poor results from united technologies. data on home sales and earnings from going and coca-cola. the nasdaq slipping ten points to 5208. >>> apple i big stock to watch. profits beat wall street's forecast, sold more than 47 million iphones with a big surge from china but far less than expected. apple won't say how many watches it sold, apple losing $60 billion in market value in after-hours trading. >>> egg mcmuffin lovers rejoice. you may be soon order your breakfast after 10:30 a.m. mcdonald's could offer all-daybreak fast nationwide. estimate october, following positive feedback in test markets. also testing other concepts as it tries to boost sagging sales, these include custom burgers and healthy options such as breakfast bowls made with kale and spinach. sign me up. >> kale from mek docdonald's, it sure. >>> the city of san francisco answering to the pope's call for action on global client change. the municipal fleet switching from petroleum diesel to renewable diesel midyear. mayor ed lee made that announcement yest

other than ibm and united technologies apple stocks weighed on the dow. analysts say that they're worrying about investors sold stocks as manufacturers with high exposure to overseas because they're worrying about the impact from the stronger dollar and sluggish chinese economy. however, the shanghai composite meanwhile closed above 4,000 for the first time in three weeks on optimism over the government measures to boost the market. so focuses on chinese markets today as well. going back to japan, investors are confident about corporate earnings but the toshiba scandal is making some foreign investors worry about other japanese firms because it was long a struggle for japanese companies to set up an open dialogue between companies and shareholders but some are positive and they think the scandal could force toshiba more global and open. >> mayu you talked about the strong dollar. how are the major currencies trading now? >> the dollar is sort of losing ground against the yen. it's currently around 123.87 after hitting a one-month high yesterday. many sold

earnings reports, particularly from large multinational companies like caterpillar or 3 m or united technologies or emerson electric even. there's two big problems. slowing economies in china and latin america. and second strength in the dollar. the slowing economies are leading to decline commodity prices and the slowdown in capital spending the dollar strength is reducing profits that were made overseas. the weakness is not just in china. whirlpool and caterpillar mention lower sales in latin america. the largest of the latin america etf's has seen very heavy volume. traders have been aware of these problems for some time they've already lightened up on commodity's stocks and the global industrials. however, they have piled a lot of money into three other groups. first into banks on expectations of higher rates. second into health care mostly biotech, and third tech and internet stocks particularly the big four apple, facebook google and amazon any sign that these three groups are falling apart will elicit panic among traders. so far that has not happened. that's why amazon's surprising swing

and we will get united technologies dove intercaterpillar. and holny well are encouraging reports. and there isn't much revenue out there. the strong dollar and weak global growth are bad combinations for the multinationals. fortunately, a few feel good stories out there. general motors is going to almost double their earnings from last year. almost double. and there are concerns about higher mortgage rates later this year around the home builders. one nice head wind are buy backs. according to standard and poor 230 20% of the s & p 500 have reduced. that means more concentrated earnings. that is good news. for "nightly business report," i'm bob pisani at the new york stock exchange. >>> a crippling decline that is rippling in other industries. >>> germon lawmakers agree thod a third bailout for greece. the measure was approved following a warning from the channeler will merckel that is the alternative was chaos. >>> the hits keep on coming for coal industries. a pension fund has filed suit against pea body energy after an alleged $800 million lie liabilities from patriot coal. par

that was following poor results of ibm and united technologies losing $65 billion in profit value. they apple sold fewer iphones than expected and won't say how many watches they sold. fcc and justice department signaling they'll approve the deal with some conditions. it would create the largest paid tv provider. egg mcmuffin lovers rejoice. wall street journal reports mcdonald's could offer all day break fast nationwide. i'm loving it. >> i'll give feedback. sounds pretty good. thank you. >>> here's proof your car is vulnerable to a remote hacker. >>> and the cdc study onteenage girls is alarming. that's straight ahead. [meow mix jingle slowly and quietly plucks] right on cue. [cat meows] ♪meow, meow, meow, meow...♪ it's more than just a meal it's meow mix mealtime. with great taste and 100% complete nutrition, it's the only one cats ask for by name. ♪ ♪ ♪ it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. are you moving forward fast enough? every

utx, united technologies a company that's been in the news this week they're selling off their helicopters. they had a little bit of an earning stumble, if i recall correctly, but you see this decline in the stock as a buying opportunity. >> it's almost a bare market type decline of about 20%. they're in great businesses. otis elevators, pratton whitney jet engines, the carrier building facilities that have wonderful recurring revenues. there is some temporary headwinds, the stronger dollar a concern over china slowing, but we think this is a good buying opportunity. and to take a warren buffett-like viewpoint, with the proceeds from sikorsky they'll be able to buy much more shares than previously at these lower prices so we think that will be good. >> all right, hank thanks very much. i appreciate your long-term perspective. hank smith with haverford investments. >>> coming up how cuban interns are learning how to be entrepreneurs the american way. ♪ >>> a major case today, a california judge ruling that the city wanting to lower the pension shortfalls is unconstitutional. the overhaul wh

united technologies is weak. emerson electric. 3m. all down on these global growth slowdown concerns and the stronger dollar. we're seeing number of new lows today in industrial stocks and material stocks. emerson electric caterpillar, 52-week lows. we are getting many energy stocks again today at new lows. a few of them -- conoco exxon, apache. it is hard to find stuff at new highs. remember the rising interest rate story is very prevalent for the second half so a lot of people are hiding in bank stocks. we saw some intraday new 52-week highs in bank stocks earlier today. they are down here but they were up earlier at 52-week highs. pnc, citigroup, i guess my point is, a lot of people are hiding in those banks stocks because there is not a lot of stories in the second half that are working very well. if we get no growth at all, no rise in interest rates at all, these bank stocks are certainly going to be under pressure but right now they're one of the few groups that are really outperforming in the first half of the year. >> thank yo

lockheed martin is reportedly in advance talked to require a helicopter unit from united technologies. a deal between the two companies could be worth more than $8 billion. shares rose 1% to $194.19. >>> believe it or not, it was the biggest week of inflows into u.s.-based mutual funds this year. investors poured more than $14 billion into the u.s. stock funds in the week ended july 8th. this according to thompson reuters service. funds that specialize in u.s. shares attracted most of that new cash. >>> now to our market monitor. who like stocks she says is changing the way the world works. she is cathy woods, ceo of arc investment management. welcome, nice to have you with us. >> thank you, sue, happy to be here. >> sounds like what they typically call disrupter companies, is that a correct read? >> yes, we focus on disruptive innovation that's our starting point, and we're looking for companies that are going to change the way the world works, so we spend a lot of time with technologically enabled companies and we're looking for the key enablers size of the market and where the econ

you mentioned united technologies. we saw whirlpool. caterpillar.o specifically mentioned the weakness in latin america. if you look at brazil this week the ewz is the major etf for brazil. that's been sliding all throughout the week. also on concerns about slower growth in that particular country. you're right on china but i also want to point out latin america is a big problem as well. the slower global growth. the commodity implosion and the simple lack of any kind of real earnings growth. third quarter earnings are now negative. we were supposed to be positive in the third quarter and a real rebound in the fourth quarter. now they're starting to take down numbers there. this is all feeding in to sort of the negative sentiment that we've seen throughout the week. >> kenny polcari also joins us on the floor. it is easy to say we got some negative data but it is 2:00 on a friday. >> right. >> toward the end of the week toward the end of the month. this is generally the pattern that we see. >> especially in the summer. because it is typically lighte

how much of united technologies sell force would come over with the transaction?t's more lockheed martin picking -- digging deeper into the helicopter business. scarlet: thank you so much. ahead, will the slowdown in china spelled doom and gloom for demand for luxury makers? ♪ olivia: at one point come the index had nearly doubled and then it basically collapsed in june before beijing intervened. a research report highlights the fallout from china and from the turmoil in europe. scarlet: we bring in mike regan. what industry will suffer the most? the strategist at credit suisse highlighted some obvious , capitalre capital , china is an industrial heavyweight. what interest me is the luxury goods companies. he singled out burberry. the number is on luxury spending from china are pretty amazing, 30% of european luxury goods comes from china. that's double what it is from europe and the u.s.. scarlet: asian tourists shopping in china? mike: just the brand sales. the amount of wealth that the chinese are willing to spend on luxury goods is 14 times europeans and three

lockheed is expected to announce a buyout of united technologies' sikorsky unit in what will be the largest acquisition in three years. it could extend lockheed's status as the biggest defense contractor. last year sikorsky had sales of just under $7.5 billion. yahoo! will spin off its stake in alibaba the move was first announced in january and is expected to happen in the fourth quarter. company will be independently traded and will hold about 15% of alibaba shares. yahoos small business unit will also be spun off. a tell-all book about qantas and the controversial 2011 grounding of the fleet will never be published after the carrier reached a deal with the author. qantas claimed that the ceo's former speechwriter had information that would damage the airline. those are your top corporate headlines this hour. im shery ahn. angie: australia's banking regulator will require the country's biggest lender to hold billions in after capital to protect them from future shocks and make them among the most secure in the world. let's head over to paul allen in sydney. the question is, what do all th

united technologies is buying back shares at $75 million for.ame, no question about it. sikorsky being bought by lockheed martin. down futures are up 23. brendan: this is "bloomberg surveillance." i'm brendan greeley with tom keene. tom: 60 days and counting, the obama administration -- all hands on deck to meet with the saudi's. three democrats have build those frequent flyer miles. ashton carter, a secretary of defense, in israel today on sunni and shia. ian bremmer says you need a primer because what you have heard about the deal is wrong, wrong, wrong. why would i have read about iran -- why is it wrong? ian: to do clear -- the nuclear deal itself is pretty basket once have talk about that. the ones that have do not realize the geopolitics of the deal are very good. obama's discussion is coming out on the things he is weakest at. he said we are going to stop these guys from developing a weapon and prevent a war. the nuclear side of this -- the implementation has to be driven not by the americans, but by the five plus one and the inspectors o

chris: first, united technologies identified them. then they go and execute that.announced the deal, sell it to his strategic buyer, strategic price, use the proceeds for share buybacks, invest in m&a and growth. that is one part of the story we are saying. optimize the portfolio. a good time to be a seller. on the lockheed side, i have a good returner of capital to his -- they have been a good returner of capital to shareholders. at the same time, they're telling shareholders i am going to divest some businesses i have identified as non-core. so, i am shrinking on one hand, but growing on the other with excess cash flow. it is topical and i think it is a nice story equity investors want to hear -- a good use of capital, but you are not empire-building. i'm wondering if -- you know, the recent volatility we have seen in stock markets, not just here, but china, for instance, and also what happened does any of that, could any of that derail this merger fever that we are saying? chris: so, a volatile market is a dampening effect on m&a and confidence, so any time you'