Were the two profit drivers in the Second Quarter for General Motors and more importantly for investors, margins were above 10 and for the remainder of this year General Motors expects business to be Even Stronger in part because of pickup trucks in north america. Our pickup share in the Second Quarter was up close to 3 Percentage Points on a year over year basis. So we continue to see a lot of Strong Demand for fullsize pickups, suvs and crossovers. To drive that point home think about this. Year to date General Motors pickup sales, both fullsize and midsize up 25 . Thats one reason why gm is doing so well in north america which we saw in the 2q numbers. Eli lilly beat the street. Meg tirrell, the Company Raised its forecast for the year. The beat on the adjusted earnings was 16 cents. Raise only by 10 cents though. Ceo on squawk box this morning address what went into that question. As we are launching products and bringing drugs through our late stage pipeline that drives certain amount of expense. We want to launch our products well. We want to invest in these pipeline products. All in all, we beat by 16 we think increasing a dime is the prudent thing to do. The company is moving past a big patent clip that weighed on sales the last couple of years. They have a few new products. Two diabetes drugs and an cancer drug they highlighteded this mornings. Yesterday we were down in d. C. At the alzheimers conference, should be a readout early next year or 2017. There is a big cholesterol drug that could read out next year as well. There the stock is moving up just a little bit at this hour. On to caterpillar, it reported a slowdown in sales last quarter. Thats really less the story, mother morgan bren gan. We have a stronger dollar thats denting sales. Company revising its 2015 revenue outlook down by 1 billion. Also another issue us that affecting this company is low Commodity Prices also not helped by the stronger dollar. Thats really denting demand for the companys machinery. This is something that on cnbc earlier today, the ceo talked about it. He said it is not going away any time soon, this issue. We have an oil price cut in half. Commodities are at their lowest for quite a few years at this point in time and Global Growth is slow. All of those things kind of combine for a lot of winds buffetting around right now in front of us. Slow weak Global Growth also an issue. This is particularly true for the company for brazil and china. Now in terms of china specifically, he also said that the big slowdown that weve seen there has actually cut industry for Companies Like caterpillar by half over the past year. You can really call this the three horse men. Dollar, lower Commodity Prices weak demand in china. A tough hand to play. Morgan, thank you. Lets take a look at our earnings scorecard with nearly onethird of the s p having reported so far. 75 of the profit reports have come in above estimates. 8 hit them on button and 17 have come in below estimates. Lets look at how this is all reading into the markets. The dow is off its lows of the day. It was down by 112 points now by 99. The nasdaq is currently down by 15 and the s p 500 is down by 10. This is for the dow and s p the Third Straight day in the red. Lets get to the floor of the exchanges with bob pisani. Greece and china not directly dominating the headlines. Thats the good news. The bad news is earnings are and greece and the slowdown in europe and china arent impacting the earnings headlines. Morgan was talking about whats going on over at caterpillar. The important thing is what they said many other companies are saying in the Global Industrial space. We heard this from caterpillar, United Technologies 3m emerson. Theres the s p 500. We have started briefly in positive territory but drifting lower all throughout the day. I do think this is on Global Growth concerns. Let me put up the issues that again and again these multinationals have said this week. The slowing economy issue. In not just china but latin america. Weakness in the oil and gas business. Overall slowdown in capital spending. Then as an ancillary issue, the dollar strength. Multinationals across the board have been hit on this this month. Not just caterpillar. United technologies is weak. Emerson electric. 3m. All down on these Global Growth slowdown concerns and the stronger dollar. Were seeing number of new lows today in industrial stocks and material stocks. Emerson electric caterpillar, 52week 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 52week highs in bank stocks earlier today. They are down here but they were up earlier at 52week 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 theyre one of the few groups that are really outperforming in the first half of the year. Thank you very much bob. U. S. Held Insurer Anthem plans to announce a deal to acquire cigna. The deal is expected to be announced tomorrow. Anthem is set to acquire cigna for 188 a share and the deal will be 55 cash and 45 stock. Both boards are expected to approve the deal. Where this would all follow aetnas 37 billion agreement earlier this month to acquire humana potentially reducing the number of major u. S. Companies from five down to three. Therefore, as you can imagine, attracting antitrust scrutiny. For months and months weve heard about bidding wars for homes and sometimes for homes already off the market. But winds may be changing. Diana olick is live in washington. Reporter yesterday the realtors said june home sales were the highest in eight years but today one major brokerage says that may be about to change. Redfin just released a new demand index that says while home buyer demand is up 13 from a year ago, it took a sharp turn lower in june from may, down 7 . And that was the largest monthly decline since the end of last year. The index tracks millions of visits to redfins listings as well as requests for home tours, customer offers and homes and various price data. That last one though is the kicker. Prices. Redfins ceo told us that there is fatigue and frustration with higher home prices especially as Mortgage Rates move higher. He claims people are packing it in early this season. Redfin predicts sales will be strong in july but will drop off dramatically in august and throughout the rest of this year. Pripss of course usually lag sales. Median price of a home sold in june the highest on record. Others surveys like one monthly read from Credit Suisse noted a growing feeling of sticker shock. Tight supply across the nation is keeping Prices Higher rising far faster than incomes. There is a Tipping Point in Housing Affordability and we may be there. Yesterday, existing home sales reported an increase of over 3 pushing home builder stocks higher. Today many of them seem to be trading to the down sides. On the board in particular d. R. Horton is down by over 2 . Bob, if youre not already in the Home Builders is it too late to get in . Is now a good time to buy . We like the builders a lot right now. We think it is the great time. We are seeing sustained job growth. Strong consumer demand. Favorable pricing commentary. Is job growth more important than the fear over rising rates . In other words is the fear of rising rates for stocks like this overblown . Absolutely. Thats a great objection. The concern about rates in the stocks is weighing on them a little bit. We think it is overplayed. It is an investor concern that should be recognized but it is not crucial for the story. We have tremendous job growth in the u. S. We have strong pentup demand. We have a supply deficit and thats going to be great for builders. Talk about the individual stocks here. Whats the best in class operating . Best in class operator is lennar. Stewart miller has built a world class company. They are doing some Amazing Things in the space. It is not just a home builder. It is also multifamily builder as well. Thats a stock in the 50s. Best assets in the industry. Tremendously competent management. Polte group. They just bought over 250 million in the last quarter of stock. I love a disciplined Management Team with a buyback focus. They are doing the right thing. I dont think it is broadly understood by market. This is a stock with very little downside and very good up side. What about d. R. Horton . We would own this into the print you questionably. Great thing about that story is theyre building the platform to cater to the firsttime home buyer, the person whos locked out of the 250,000 house still needs somewhere to live and theyve built their model to accommodate demand at the bottom end of Housing Market and this is going to drive tremendous volume growth flawless execution. Theyve done a really good job. Lets talk a little bit about the aen ancillary. Are you looking to upgrade u. S. Gypsum at all . Jim met taf is thecalfe is the ceo. This is a Warren Buffett company. Todays results are the most optimistic weve heard since 2007. We think the commercial construction recovery is now starting to hit its stride. Anything in the sector that you would stay away from . No. We would actually one thing i would mention, if you want a longterm holding, mohawks best in class in building products. We love the growth angle of fortune brands. It is the Global Leader in flooring. The dominant global player. Thank you very much for joining us. Good to see you. Fireworks in washington as the Senate ForeignRelations Committee holds a key hearing on the iran deal. Senators grilling formerly one of their own, the current secretary of state john kerry. Thats next. Plus the falling price of oil putting pressure on oil related industries. We drill down on the stocks to watch in choochoo land. Railroads, that is. Th graders ever sat at the cool table. But your jansport backpack is permission to park it wherever you please. Hey. Thats that new gear feeling. Now get a swiss gear backpack for only 10. Office depot officemax. 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Stockmaker bristolmeyers squibb reporting better than expected Second Quarter earnings saying its revenue rose 7 to 4. 2 billion up from 3. 89 billion a year earlier. Shares down by over 1 . Chipmaker qualcomm saying it plans to cut 4,500 jobs and spending, also saying it make break itself up citing rising competition. Shares down by 5 . Casino company Caesars Entertainment corp. May be facing brufts after a federal judge declined to protect the company from creditors seeking 11 billion. The shares though are up by 5 . The nuclear deal with iran coming before the Senate ForeignRelations Committee. It presented a chance for two of the republican president ial candidates to flex their Foreign Policy muscles. Hampton pearson is live for us in washington. Reporter well, right now the big three of the Obama Administration on the nuclear deal secretary of state john kerry, Energy Secretary ernest moniz and treasury secretary jack lew. At times the gloves have come off. Bob corker compared the inspection regime iran will face to athlete selftesting themselves for drugs. But he didnt stop there. I believe youve been fleeced. In the process of being fleeced, what youve really done here is you have turned iran from being a pariah to now Congress Congress being a pariah. The secretary of state, john kerry, reminded lawmakers the u. S. Had five International Partners negotiating this deal and his words, were not dumb. The choice we face is between an agreement that will ensure Irans Nuclear program is limited, rigorously scrutinized, and wholly peaceful. Or no deal at all. Thats the choice. Treasury secretary jack lew offered a Global Economic reality check on the future impact of sanctions. So its unrealist to think that additions sanctions would force iran to totally capitulate and impractical to believe we could marshal a Global Coalition of partners to impose such appreciate shu after turning down a deal our partners believe is a good one. Congress is just beginning its 60 day review of the treat ya. Today in vienna irans oil minister is being looking for Oil Investors in anticipation of those sanctions being lifted. Hampton pearson, live in washington. Thank you. Ferrari accelerating its plans to make its debut on the new york stock exchange. Details of that next. Fedex shares failing to deliver over the past month, down nearly 4 . Fred smith is going to be stopping by live on power lunch exclusively at 2 00 p. M. You do not want to miss it. Stick around. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Are you moving forward fast enough . Everywhere you look, it strategy is now business strategy. And a partnership with hp can help you accelerate down a path created by people, technology and ideas. To move your company from what it is now. To what it needs to become. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. The doddfrank wall street reform has brought about some of the most significant changes to the financial regular story system since the great depression, but did the law do what it was intended to do . Are we safer now than we were five years ago . Heres senior economics reporter steve leisman. Daddy, are we safer now . Yeah. Well, it depends on who you ask. Democrats say yes, republicans say no. Rekt regulators tend to say yes. I broke this down into four pieces to try to understand. Taxpayers, Financial Investors, consumer borrowers, and the entire Financial System. Are they in fact safer . Lets go to the first category. Taxpayers. The ruling here is yes, they are indeed safer because doddfrank should shift the bailout costs to the creditors if it works the way it is designed. And a big umbrella over this whole thing is the banks hold more capital. If they hold more capital, less likely to go to taxpayers here. How about Financial Investors . Well, they should still essentially be in actually more danger because one of the ideas of doddfrank is the too big to fail bailout should be less likely if they go through this and they should rely so investors would bear more of the problems. If its worked in the way it is designed. Theoretically, yes. The regulators should go to the creditors. Depends on where you are on the capital spectrum there. First to equity then to debt. Excellent point, tyler. Then what about consumer borrowers. They should be more safe why . There are more documents and more disclosure. But hang on a second theres also less credit so a huge downside when it comes to the cost and criticism here. Less lending out there because of doddfrank banks have to hold a piece of the mortgages. How about the entire Financial System . Im giving it a yellow. Thats all i can do right now. Were more safe than we were before but still in danger. There is more capital. More regulations. More monitoring. Dont forget the stress test. But there are bigger banks here. Thank goodness its unproven in a crisis. But then wed know. But on balance here i hear you basically say