Moving to the upside today rebounding beyond the major u. S. Indices oil is bouncing back. This is important. Its helping the market hire. This is after brent crudent entded in bear market territory. As for europe ftse ending up 0. 7 of a percent. In asia overnight, chinas selloff continues. Not as bad as the day before. And nikkei 225 hitting a twoweek low. Lets get to trading action here in the good old United States of america with bob pisani down on the floor of the nyse. Weve been do for an oversold bounce and it helps that earnings are better than anticipated today particularly in industrials. Look at the major sectors. Everything thats been a disaster this month is up today, which is the way it should be. Were due for a bounce in energy and materials and industrials. A lot of disappointments in earnings. Health care has been holding up. Thats on the upside. Watch the market leaders. Market leaders are internet stocks like google and Facebook Biotech stocks and banks. All of those are up again today and have been holding up pretty well in the recent downturn. Good sign for the market. Earnings better than expected. A lot of industrials. Cummins, a big truck company. Textron, aircraft revenue down a bit but overall good report. Those are nice moves in the big industrials. Home improvement, think cabinets and plumbing with masco. Home builders are having a great year. Revenues up for every one of them. A very notable ipo today on the nasdaq. Big biotech company. Cancer immunotherapy. They were talking 7 million shares at 20 to 23. Look at the stock chart. It opened at 37. We were talking about 20 to 23. They priced at 25. Opened at 37. Now trading at 32. 85. This is a hot space. One thing i would note is the float is small on a lot of these. About 8 . That just means theres a lot of demand and not shares outstanding that helps on the price side as you can see there. Puts that in perspective. Jetblue had solid demand helping bottom line. They expect passenger unit revenues to remain stable in july so sales perhaps better than some were expecting due to some strong demand. Those shares showing signs of life. Back over to you. Thank you very much. A news alert in the bond market with twoyear notes up for auction. Professor santelli tracking the action. Whats demand like . Great demand straight up 1 00 eastern for dutch auction. We gave this one a b. B for boy. Lets go through all of the details, shall we . 26 billion twoyear notes. Yield at the dutch auction,. 69. 69 basis points. That happened to be the offer side of half a basis point. So it priced right where it was supposed to. 3. 4 too good to cover. Thats the average. 54. 4 on indirect. Best since june of 09. 17. 9 on direct. Best since june of 14. Thats where the b comes from. Solid. 27. 8 go to primary dealers. Of course tomorrow well have five years followed by seven years as we continue of course to focus on the fed. This supply at this point in time went rather smoothly. One would think a twoyear note yield would move higher and selloff once the fed starts tightening but earliest anyone sees that at this point in september. Tyler, back to you. Thank you very much. Big day of earnings and weve got a hat trick of them to cover right now. Phil lebeau on ford. Jewel phil, you go first. Were going to talk about a big, big quarter for ford. Best north american profits ever in one quarter and the best overall profits for this Company Since 2000. What was driving it in north america . Demand for trucks and suvs. If there was one down note in fords earnings the company is slightly negative in terms of outlook for china. They are now saying theres a possibility that chinese auto market could be down overall for the end of the year. Take a listen to what ceo mike fields said today. Were still very bullish on china. Its going to go through fluctuations and thats what happens in emerging markets and well work our i wouldway through it. Smaller cities and those cities still have fairly strong demands. Tyler, back to you. Phil thank you very much. I asked julia a question offline. She wont answer it. What can we expect from twitter after the bell . The big focus is on user numbers. Everyone wants to know how many users twitter has because its a key measure of its appeal to users and its potential value to advertisers. Growth is expected to slow even more growing from just 302 million users last quarter to 310 million total active users this quarter. The other key area to watch, insight into the companys ceo hunt. The company is in the midst of a transition and investors want to know if theres any update and whether the interim Ceo Jack Dorsey who said hes not really interested or perhaps adam bain and third area to watch is twitters strategy. Questions on how it plans to change the service in order to add new users. They are working on a project overall. Its not due to be revealed until the fall. These three factors, ceo hunt, product overhaul and user numbers are likely to overshadow revenue which is projected to grow 54 and earnings which are expected to double to four cents per share. Profit number is expected to be good but the question for me julia, is has twitter peaked . Its all up to what happens with this product overhaul thats coming in the fall. Project lightning is designed to add more users which would be a game changer for revenue and the viability of twitter to continue to be a stand alone business so thats what we really have to watch. A lot riding on that. Nice to have you in the house. Good to have you here. Meg on pfizer now. Pfizer up more than 2 after beating on the top and bottom line. A lot of interest in new products. Barbara ryan joined squawk box this morning to discuss. Listen. Clearly were in a renaissance for the biopharma sector and whats leading that is fundamental innovation and i think were seeing that. People are interested both in pfizers new Breast Cancer drug and uptake of its vaccine that drove a lot of growth in u. S. Adults and speculation and talk about tax reform. The pfizer ceo says he expects movement on tax reform over the next five months influencing whether the Company Looks to do an aversion buying big overseas to move the tax base there. He continues to say u. S. Companies are at a competitive disadvantage with our current tax code and that brings us to whether the company will split up or do m a. Two huge things for pfizer back to you. Thank you. Mandy, over to you. Health care has been on fire this year with a slew of deals in the sector. Check out pfizer against one of the major etfs that tracks health care and pfizer is up almost 12 yeartodate. Both are outperforming broader markets. Switching gears. Senate appears set to pass a bill to keep it alive. A vote in the house is less certain. The commerce secretary is going to come up on our show in a few minutes time for an exclusive interview on why the Obama Administration wants the bank to survive but in the meantime we get a look at both sides of the coin. Take a look at the Export Import Banks website as it exists right now. Its not exactly a gone fishing sign but they are saying that authority lapse and they are not accepting new business over there while this in washington gets resolved. The issue is on the senate side its a highway bill. Usually thats a good way to pass legislation in washington attach your measure to a must pass bill in the senate that traditionally has worked but the house says were not ready to godo that. John boehner offering only a threemonth extension and as it stands right now theres no clear solution to this problem. Exim says it supported 27. 4 billion of u. S. Exports in 2014 and supported 164,000 u. S. Jobs and generated a 675 million surplus. That means theres no real cost here to taxpayers. Critics, particularly ted cruz in the senate and tea party republicans, are arguing that the exim Bank Benefits caterpillar and boeing and says if any loans were really market demand, banks and private institutions would step in and make those loans and those Big American Companies could do that business any way. Thank you very much for the details there. Once again. Commerce secretary will join us on power lunch in just a few minutes time to make her case. Wildfires blazing across Northern California have spread across 2,200 acres. 2,300 firefighters are struggling against the fast moving flames. It seems each time one fire is snuffed out, another pops up fueled by shifting winds triple digit temperatures and dry brush. Just 5 of the fires near fresno are contained. Fires continue near napa valley wine country threatening thousands of homes and forcing closure of many campgrounds. This year alone california firefighters have responded to about 4,000 blazes. Nearly double from a year ago. Its predicted this years wildfire fighting costs could exceed 1. 5 billion or half a billion over the Amount Congress allotted for this years wildfire season across the United States. We wish them the best of luck in trying to contain that. The power of nature is awesome. All right. Lets move to a topic that we spent a lot of time talking about and thats the fed. Well go inside the feds head. Policy makers kicking off that twoday meeting. When you see liesman in washington you know theres something going on there. Will this be the last Federal Reserve meeting for record low Interest Rates and how many rate hikes could we see before the end of the year or not . Former president of Federal Reserve bank of dallas will join us. S tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. Welcome back to power lunch. Nike shares hitting best levels. A price target upgrade at jeffries saying target price is 128. It was 122. Nike offering 15 refunds or 25 gift cards to people who bought mike you why fuel band fitness trackers to settle a lawsuit claiming the band doesnt accurately count steps or calories. Those among positive for nike stock. Today marks the first day of meetings in d. C. For fomc. An increasing number of people expect to see the first rate hike in september of this year. Not at this meeting. Former president of the Federal Reserve bank of dallas joins us now. Mr. Fisher always a pleasure to have you with us. Take us into the Committee Room if you wouldnt mind and give me your thoughts on how much the open Market Committee will take into account whats been going on in china lately not so much the stock market demise but rather the economic slowdown there. How big a factor is it . Should it be a bigger one than it is . During the briefings you get an International Perspective and a domestic perspective. Everybody comes to the table well prepared with that background. China is being watched. U. S. Monetary policy will not be dependent upon what happens to chinese equity markets. Theyve been floated in an unusual way. Central committee put. Its being watched very carefully. Main thing is how it might impact our Economic Growth exports are a portion of our economy thats not unimportant. Imports are a portion that satisfy consumers. So one takes that into account in terms of balance but i dont think its a major factor unless it becomes globally disruptive in which case it may impact timing but not to a great degree of when you institute the beginning of reversing this zero Interest Rate policy. At the margin an important thing. What about decline in prices of many many many commodities which certainly does not help the fed in its objective to have price cpi growth of about 2 . Thats the intermediate term objective. A rule that actually Ben Bernankes legacy for the federal Market Committee. This is supply driven in the Energy Sector bumper crops driving so many of the soft commodities and then a decrease in demand for copper and some of the metals that come from slower Economic Growth in china but that also benefits our consumers. This will all be taken into account. I dont think it really distracts the fed from the most important variable which is growth and employment and how wage price pressures begin to raise their head and impact the calculations that go into approaching that 2 intermediate term target. Mr. Fisher you said that china is not a major factor. If not china, what do you think as the biggest outside risk to the United States economy right now and are any of them big enough to justify delaying a rate hike from a september liftoff . My view is that we are the central bank of the United States. Were the central, central bank. World. The key right here is our own economy. Were responsible to the american people. I shouldnt say we. They. Im no longer part of the group. Thats really the key factor thats going to determine. The u. S. Is pacing the world in terms of Economic Growth. Along with mexico and england and others are pacing global Economic Growth right now. Epicenter of growth particularly north america and thats where you have to be sure that you dont institute a policy that might set us back. At the same time you dont wait until its too late to start gradually tightening and taking away this Monetary Policy we have in order to help our economy improve. We have to focus on ourselves first. Thats our obligation as central bank of the United States. If you were in charge would you have already hiked rates . I would have advocated a long time ago. Its not an easy thing to do. I argued we should start early but not be terribly aggressive. I think that it has been communicated clearly that it will happen this year. It may not happen in a way that the next meeting you have an automatic price rise and after that you have an automatic hike in Interest Rates. But it needs to begin at some point because were beginning to see good employment numbers and were also beginning to see wage price pressures which gives you confidence youre moving towards that 2 number even though youre far away from it. I couldnt agree more with her communication. I grew up in the air of mr. Volcker and mr. Greenspan and they were anything but clear in this regard. Let me turn you to a question thats come up intermittently over the past month or so from the mouths of prominent investors namely concerns about liquidity in the bond markets, particularly the high yield bond markets. How concerned should we as investors in this country be about a possible liquidity trap in high yield bonds or certain more narrowly issued Municipal Bonds if there are defaults or other shocks to the system . This is a regulatory issue and has other dimensions. As you know because of doddfrank and scrutiny of large institutions and rate trading desks and so on there are less participation by them but theyve been substituted by others. This is an issue you hear on wall street today. You hear this constantly a concern. High yield market is an interesting market. You have to remember we had the lowest yields in history and lowest spread above that for noninvestment grades or junk and i cant quite figure out whether you have a liquidity issue here or just a correction that took place because spreads got too narrow and rates got too low. Lowest rates in 239 years of u. S. History. So its a little bit of both. Clearly youve had some liquidity issues. You hear about it a great deal. A lot of it is because those that are players in the market that provided inventory are now more restricted in what they do. Others are taking their place. Thats the important point. Let me just ask you a final quick question if i might. Last week there was a leak that indicated that the Federal Reserves own inhouse staff and their Economic Forecast turned out to be more accurate than the forecast of some of the Regional Bank president s. Should we just go with the staff . Thats actually news to me because i dont recall that being the case. But, you know . Its a good group. Works very hard. Excellent models trying their very best. I wouldnt say thats necessarily the case. It would vary reserve bank by reserve bank. Let me leave you with one great reminder given in a 1966 forecast which is not to be used externally and harmful if swallowed. Mr. Fisher thank you very much. We wont swallow it. Thanks a lot. Wti crude is bouncing back and its igniting a rally in energy stock hoping the overall market stocks extending their gains right now. Brent oil though different story entering a bear market. How much lower will oil go from here and what traders are saying about direction of oil coming up next. Dow up by 175 points. A gain of just over 1 . Shares hiding near alltime highs after boosting dividend and raising guidance. Billion dollar acquisition is helping to drive the growth. Reynolds plans to put more sales power behind that menthol brand so those shares certainly ones to watch. Over to rick santelli. We just finished auctioning off 26 million and you can see yields move down a bit. You can see if you move to volatile longer end of the yield curve 30year bond. If you look at the s p catch Energy Markets you see an improvement which correlates very nicely with the twoday of tenyear note yields but keep in mind were in a really tight range. Yesterday we did most of the trading between 2. 22 and 2. 24. Today a little bit higher but normalization of rates. Thank you very much. Stock market taketh away it giveth back today. Were at the highs of the today. Really nice gains of 1 or more there