Of the s p 500. Just about a half a point higher. We are going to be hearing from travellers United Technologies verizon and many more out later this afternoon. Its all about tech. Beyond earnings here the other big stories were watching this morning in greece today the government submitted a bill needed to officially start talks in the rescue package. The Prime Minister has until tomorrow night to get the measures adopted in parliament. Increasing year over year last month but only slightly. This shows how a slowing economy is hurting Investor Confidence and in Corporate News out today, the ceo was stepping down. This comes after an independent investigation says he was aware the company was inflating his profits over a number of years. Ibms earnings top which normally happens but revenues fell for a 13th straight quarter. It had to be because of the stronger dollar. You dont get revenue drops of 13. 5 . I dont know what organically it was. The strong dollar continuing to weigh on the company and as we talked about yesterday, what do you call them . The lower margin things. Empty calorie revenue. Empty calorie revenue getting rid of that and the full calorie revenue trying to bolster. Trying to spice it up. We heard that one analyst did not minutes words about missing out on the cloud in the early stages and the challenges that the company has to try to reinvent itself again every ten years. Well talk in the next half hour about imb. These are so hard to read. Oh my word. Look at that. Where is buffet, 175, average cost 164. Thats 164. Is that 9 . Thats going to be rough on the day this morning. I dont like the name and really not big anymore. Is it still blue . You can find bluer chips. Thats for sure. Back in 2011 i believe when warren started making these purchases i thought his average was much lower. I thought he was down in the 159s or 160s . No. But still the dow suggests it would open lower by 30 so all the decline in the futures have to be almost exclusively ibm. Its right around here. Like we said yesterday people pointed out to me that he continues to say hes buying it but hes not using both hands with the amount of financial wherewithal he has. Qualcomm may consider a break up. The company is expected to conduct the strategic review. Hedge fund Janna Partners is pressuring qualcomm to spin off its chip business from its profitable licensing business. I bet its 170. He began by 2011 at a price of 159 on average and then he bought some more at about 167 and then at another time about 173. So it has inched up. I am still trying to figure out if theres a number on what his average Purchase Price was. I dont think its 164. But shares of indian i. T. Services provider rising in early trading. The Company PostedQuarterly Results and announced it won more large deals in the latest quarter. Raising its dollar denominated revenue estimate for the year as well. Lets tell you about other Corporate News. Shake shack disclosing a secondary offering. The fast food operator will not receive proceeds from the transaction. Shares falling late yesterday on that news. Also a mixed quarter from sap. Revenues better than expected but earnings were at the low end of forecasts. The main reason a jump in newer lower margin Cloud Software delivered by the internet. So the empty calorie issue back in play and then first data filing for an ipo. They took first data private for about 29 billion in 2007. Theyll continue to control the company after the Public Offering but that turned out to be a win after quite the moment which it wasnt and now its come back. Its good that youre talking about calories and all of these things today on tune up tuesday. You have no idea whats coming today. Squawk box, who has time you got six jobs. You got this job. You write your column at the new york times. You got your book and you have no time to workout. None. And kids. And kids. So you need a 30 minute workout which were going to this is a 30 minute workout. Thats the short workout . Im looking for 4 minute workout. How much time do we have between commercials. You can have sex twice. Bingo was his nameo. Wow. Shall we check on the markets this morning. Or invite whoa thank you very much. All right. Lets show you the futures for it. Pretty indecisive trading this morning when it comes to the futures. When you look at the dow almost all of that has to be the premarket of ibm. S p 500 flat and the nasdaq higher again today. Fourth day in a row for a record. Gain of 6 points right now. Well show you whats happening in europe. Its a mixed picture over there. Call it flat across the board with portugal lower by about about. 5 . As for asia overnight, stronger across the board but nearly 1 in the nikkei the hang seng was higher by. 5 . Look at oil creeping back above 50 after the commodity was below 50 yesterday for wti. First time since april. Brent was at 56 and natural gas is at 284. Ten year yield right now is at is that 257 . 237. 257. Thank you. Dont even say that. We havent been there in awhile. How do you like the sovereigns in europe. Thats true. Mixed picture from the dollar. Its stronger against the yen and pound weaker than the euro. Now that youre back joe huge rise in the dollar last week or so causing this route in commodities. Speaking of which, look to the right of the chart here in gold. Off the cliff. Lower by another buck after yesterdays decline. Five year low and really speaks to the entire route in commodities over the last couple of days as weve seen the strength in the dollar. Were going to do an interview. This should be interesting. We have a long delay but you ask questions and you wait and its that simple. Hes known for thoughtful answers. The swiss pharma giant hurt by a stronger dollar and weak performance and joining us as i said the companys ceo, joe, its good to see you. We usually meet on your home turf in davos but the stock is indicated down about 104 after closing at 106 after a slight miss in terms of 106. 5. In terms of earnings per share. Can you explain the results to us . Yeah you know in time of great currency fluctuate what you have to do is look at Constant Currency growth and i feel like we had a solid quarter. We were up 6 in sales, Constant Currency. Profit was up 6 . We had nice margin improvement. If you look at margin improvement, below the line things that were more difficult to forecast like associated Company Income and some hedging gains thats where there was a difference versus consensus but when you look at our results the best part about the quarter was the innovation. We just got approval to launch the new Heart Failure drug. This is a drug thats proven to reduce cardiovascular death by 20 and hospitalization by over 20 . We shipped this after we got fda approval and we think this is going to be a multibillion dollar drug for the company. Of course. I was headed to that drug as well joe because i dont think people we hear heart drugs we hear about them all the time like with statents and this is different. One out of five people could have what is known as the potential for Heart Failure which can come i believe after a heart attack or after having a lifetime of high Blood Pressure your heart gets weaker and weaker and weaker and its one of the leading causes of death and up to this point all you can do is treat the Blood Pressure side of things right . This is the prime treatment for Heart Failure, right . Thats correct. Theres very few therapies for Heart Failure. Its a devastating disease. Many patients dont live past five years of diagnosis so this drug is proven to unload the heart and lead to higher success rates. Lower hospitalization rates so this is something were excited about. The whole industry is excited about this because its one of the biggest cardiovascular break throughs in the last ten years. Its a drug that we have said will be a big important growth driver for novartis and were happy to start to market it in the u. S. The previous standards were much more invasive like getting a pacemaker in or in the worst Case Scenario you get a heart transplant or assist device or something. Whats the standard of care right now when it gets really bad . The current standard of care is ace inhibitors. It helps unload that burden on the heart and these patience are able to feel better. Theyre able to live longer and theyre able to stay out of the hospital. So, you know heart fill your is a disease that impacts 26 Million People around the world. Particularly in the u. S. Theres about 6 million patients that have chronic Heart Failure. Many of those would benefit from it and, you know this is a drug also that we think can help lower the total cost of health care because the average hospital stay when a Heart Failure patient goes into the hospital is over 11,000 and we have priced this drug at about 12. 50 a day. So about 4,500 for the entire year. So its getting a very good reaction and were just very enthusiastic about what its going to mean for the company. Sounds cheap when you say it like that but thats one of the criticisms is that the Current Treatment is 1 a day. This is like 12. 50. Weve seen cancer medications that cost 80,000 100,000 and up a year. But still this is quite a bit more than what you will get some bush back even on 12. 50 a day. Yes definitely more than the current standard of care but at the same time you have to look at the benefit we bring. Novartis is a unique company in the space. We have not only an innovative pharmaceutical business that introduces new oncology drugs and break through therapies but we also have an important generics business because we believe while we are fundamentally pro patent because thats how medical science advances but we believe when the patents expire its our responsibility to offer low cost versions through our generic divisions and we were able to laumplg launch a new generic drug for multiple sclerosis. We were able to develop this drug and get it approved through the fda and thats helping our generics division. It had margin growth of 260 basis points partly because of the launch of this new ms drug helping to lowest the total cost. You think its possible it does 5 billion in global revenues within what five years . Well weve said that it should cross the 5 billion mark. We havent given really a time frame because we said thats probably going to be the peak sales but the important thing is theres two type of chronic Heart Failure and we have only gotten approval in the first type of chronic Heart Failure. Its called reduced fraction. Were also testing the drug in a phase three Clinical Trial in the second type of chronic Heart Failure and if were successful there it could double the potential size because theres just as many people with preversepre preserved ejection fraction and thats plenty to think about as we plan going forward. Okay. All right. Joe, jimenez thank you. We appreciate it. Dealing with the long delay. We can put a man on the moon. Thank you. But i think skype would be instant. Its like 170 isnt it . Correct. Why do you disagree with me . Why do you challenge me . Why do you challenge me on ibm. You were right. Its in the report. Its about 170. Thats exactly what i said. You were correct. We spent all this time just dealing with your own im telling you youre right, however i want to make one point theres a 3 dividend on the stock so it matters if youre trying to figure out whether he made or lost money so far. Just putting it out there. His original point was why do you question him. I know that. Novartis 284 market cap and you just heard that the most hospitalizations in patients over 65 Heart Failure. What can help prevent Heart Failure . Any type of exercise. Exercise. Tone up. Tone up tuesday. Stay in shape. Exercise. Stay tuned. You have no idea whats coming. Were going to be exercising on the set. Do you know where were going to go to exercise . No where. Can i show you. Over there. Over there. Oh my god. Thats pathetic. Did he do that . He did that. Just do it naturally. Im going to save ourselves from ourselves. Coming up a 170. No buffet paid 170 a share for each share upon average of ibm but theres a 3 dividend. A 60,000 pick um truckp truck. Why ford is betting Consumers Want to take luxury to a bigger size. But heres a look back at this date in history. The mercedesbenz summer event is here. Now get the unmistakable thrill. And the incredible rush of the mercedesbenz youve always wanted. But you better get here fast. Yay, daddys here here you go, honey. Thank you. Because a good thing like this wont last forever. See your authorized dealer for an incredible offer on the exhilarating c300 sport sedan. But hurry, offers end soon. Share your summer moments in your mercedesbenz with us. Welcome back. Making headlines, ford launching a new luxury version of its f150 pick up truck today. It could sell for more than 60,000. Its been a huge seller for ford over the years. The truck will be a step up from the current f150 platinum. The new models Standard Features will include a multicontour massaging seat. Ive been trying to figure out what that is. You can get it in a mercedes. Im worried you would fall asleep while youre driving. So relaxing. Right. Ive been in a mercedes when you go around the bend you feel the seat move and the sides come up too. Maybe thats it. Multicontour. Talking about massages i rented oh god holding my breath. If you go out of the lane a little bit it now massages your leg do you know what im talking about . Vibrates your leg to tell you to go back into the lane. Thats cool. You rented a tahoe. This was a couple of months ago. Like an suv. Like a big suv when we were doing that doc on the white collar criminals and you get a massage as you were if you started to veer out of the lane a little bit. Did you like it . It was a little weird. I wanted to turn it off. If youre out of the lane it knows. But it was sensitive to the point of even creeping out of the lane. Auto industry veteran doug betts joined apple. He worked for toyota and nissan before leaving chrysler last year. But some analysts said car manufacturing could be in apples future. Can you imagine . All right in an op ed this morning Larry Goodman and steven at the center for Financial Stability discuss fixing the feds liquidity mess. They argue it has produced lopsided positions increasing the risk of another crisis. Some proposals include lifting the feds fund rates to neutral levels and arranging new private sector liquidity facilities. Full disclosure. Who is that guy . My husband. Oh. So you would know. I would know. Probably right. Okay. You didnt that would be like 8 names if you cant take his name. My personal life i do. Do you . Yeah. Did you top line this or edit this piece at all . I read it in advance. Sneak peek. And you didnt marry a socialist did you . Was i ever going to marry a socialist. No. People said which paper i said come on which paper, it wasnt the new york times. He read your book. He must be he knew of you before no. Wait. Come on. No he didnt watch much tv. That made him very attractive. He didnt know you. Thats a good game to play. It is. All right. Youre like a blushing bride. Thats nice. I am. The time being the markets left greece behind to focus on earnings season and the feds next move. What can you expect this week. He is Senior Investment strategist at bmo Capital Management and Senior Market strategist at Morgan Stanley wealth management. Good to have you here. Thank you. Looking at the route in cod mod commodities it seems to say rates are going up for sure and Interest Rates are going up for sure. Its the indication of the dollar going higher and the fed hiking rates and pushing the dollar higher. Its a little bit of a hang over or leftover from the china growth scare. I dont think its long lasting. Were bottoming out on oil and the Precious Metals and its okay for stocks. This is a good thing for stocks. Lower oil is good. The iran deal is good for stocks. Its a risk been around for awhile. Are you saying the deal is good. I thought rates were headed lower because it was conjuring up fears of deflation again that maybe europe with this greece thing becomes less stable. Youre saying that because were going to need to raise rates that eventually the dollar gets stronger. You can look at anything both ways. Its all circular. The dollar goes higher and weakens growth and gives the fed more time and the economy slows down and the dollar weakens again. You would think gold would go up. You would think gold would go up but the news that came out the other day that gold reserves were lower than anyone expected the first time they reported that in five years was a shock to the markets as well. People were selling on that news. Weigh in here. Whats your impression on what the sell off in commodities is telling you about the rest of the markets and what you should do with asset allocation. Capitalism works. If you think about what happened to the five years prior to the financial crisis the world built excess capacity so i think its a net positive for the u. S. It creates winners and losers in the globe and its a positive for economy and you may start getting the consumer feedback that everybody has been looking for from Lower Oil Prices because people believe theyre more permanent. What do you do then . Do you say okay im not going to invest in gold mining here or Oil Production et cetera . Instead im g