Those blasts sent massive fire balls into the nights sky. The initial blast erupted at a warehouse for Hazardous Materials and triggered other explosions at nearby businesses. Those explosions could be felt miles away. The cause at this point not immediately clear. Lets take a look at some live pictures this morning from tianjin china. You can still see the smoke cloud billowing. We heard from hyundai. Well take more of a look at whats happening with china in a bit. About 4,000 imported vehicles were destroyed by that blast. Heres the big stories today, China Central bank holding a News Conference in beijing overnight arguing theres no basis for continued currency depreciation. Earlier in the day they set the rate below yesterdays close. Well have a live report in a moment. Athens wants to see a vote before a euro zone identifinanc meeting tomorrow. It argued it lacked clarity on the direction of policies. Here in the u. S. A busy day on the data front. We get jobless claims, july retail sales and the consumer remaining front and center before the bell. Well hear from kohls, nordstrom, king digital and party city. Lets talk about some stocks to watch including cisco. Shares were up on this news. Heres what chuck robins told jim cramer on mad money last night. We think that security is a tremendous play for us and well build out that architecture and innovate and drive our own internal rnd and well look at investments and do codevelopment with customers. That stock is up 3. 9 this morning. Well be talking to an analyst in about 15 minutes. Also shares of the developer getting a boost in late trading. Announcing a joint venture to develop a new Solar Project in utah. Diamondback Energy Falling a bit. Launching a Public Offering of 2 million shares in common stock that stock is up by 2. 25 . This move should help expand products for fighting socalled super bugs. Plus we should check out shares of news corp. Posting better than expected quarterly earnings. Cost cuts that includes dow jones and the wall street journal. The company also announcing it is revealing Strategic Options for amply identify. Thats the Digital Education brand. That stock is up by 4. 8 . Other media news going on, Nbc Universal investing 200 million in vox media. It owns tech blog recode and espy nation. It hopes to build a partnership that involves collaborating on editorial content and advertising technology. A yununit of nbc. Nbc a unit of comcast. We should also tell you there is speculation around an additional investment in buzz feed that would value that company around 4. 5 billion. Well talk about that in the next hour. But the other big buzz stories, u. S. Authorities launching an investigation into the former chairman of dean foods. Tom davis is now suspected of leaking confidential information about a corporate spin off to professional gambler Billy Walters who is believed to have tipped off Phil Mickelson. Just a week ago he abruptly resigned as chairman of dean foods last week ahead of the companys earnings. There was no great explanation as to what was going on. This may be that explanation. A long wait s. About a year. A year ago there were clorox and dean foods if i remember. Right. They were somehow trying to connect. The gambler and Phil Mickelson. They thought carl icahn tipped off Phil Mickelson and traded ahead of his investment in clorox which was the original theory. That piece of it is not. I remember icahn saying i heard of Phil Mickelson but i never met him. Like hi barely knew who he was at that point. Well get more details over the next day or two of what really transpired but pretty interesting. No doubt. Handing that information to the fwofler. Take a look at where futures are following the huge come back late yesterday and you can see that the dow would open higher by shy of 50 points. The nasdaq could get a bump as would the s p 500. Look at europe where the dax has been a big focus because of china. Its been in direction mode and getting a nice bump today as are all of the european markets across the board. Asia, have to take a look there given whats been going on in the markets and the shanghai composite up. Virtually across the board in Global Markets today. Take a hook at oil and wti crude is rebounding up sharply. The dollar today as we take a look at how currencies are shaping up, theres the ten year note yield at 216. Thats been on investors radar of late giving the Federal Reserve expectations and what it could mean when they try to figure out the best time to raise Interest Rates. So the euro giving some back after a pretty descent size yesterday and gold after being dormant for so many months caught it yesterday. Now to asia, we want to get to sri from singapore with more on the overnight sessions and comments from chinas central bank. Hi, andrew. Weve seen the relief rally in asian markets today after two days of very heavy losses. Quite a sizable risk off move in the markets. Hiking fears that china fired off a currency war in this region but the pboc coming out and offering an olive branch and trying to calm the anxiety in the market by saying, look, its not today but depreciate the country sy by as much as 10 so tried to send the message that were encouraging more twoway volatility. The longest in the currency. So thats the message from the bpoc and the markets send to be taking that at face value and taking that this is not the beginning of the depreciation cycle and more in the regional currencies as a result. So relief on the outside and also helping with that late session rally overnight in your neck of the woods. Thats helped confidence as well. Lets look at the currency and that helped some over here as well. Especially those that are most vulnerable to normalization and in terms of trade linkages to china, both vulnerable to further devaluations. They have seen at 17 years lows so they bounced off those very low levels but the narrative still has not changed. Theyre still looking very vulnerable because of the domestic policy, because of fed normalization. Lets not forget both of these countries are big commodity exporters so the pressure ahead of fed normalization still remains on. Thats where we stand. Back to you now. Sri, thank you. Back here in the United States stocks staging a come back. Down by 277 points for the dow at one point. Head scratching reversal and that begs the question what is going on. Joining us is steve friedman, Senior Investment strategist and george parks who is analyst at the spoke investment group. Steve what do you think did happen . People thinking this puts off the fed raising rates in september . This was a big reversal and it came shockingly. This is not as big of a deal as anticipated. The exposure attorneyings is 4 to 5 . The move itself was never a big deal and, you know, ultimately you do have a little bit of the factor open to the feds would be a bit of a safety net. But the main point here is this probably matters a bit more for the inflation outlook than the Growth Outlook because we import a lot more than we export. Of course overnight the statements that this is not going to be an on going devaluations also contributes to taking the air out of the story. We know when chinas economy falters thats going to have an impact around the globe at this point. Thats a huge concern. Chinas economy has been faltering for four years now. They have bad demographicis. This is not something the Global Markets are panicked about. Although what happened this week panicked people because it worried them that the chinese were panicking. Thats correct. As we have gotten more information from the pboc and seen them come through and we have come to understand the mechanism there now using a very market oriented one to set the fixing that fear has mitigated and just look at s p 500 futures reaction to the fixing over the last three days. So the first two days they had these depreciations versus the prior day. You dont think people are panicking . I dont think they are and i dont think they should be. Construction, core part of the economy weaker than ever. Confidence plunging, credibility issues for whats taking place in china. Why dont you think we should be more concerned about whats happening there . We should be aware of whats happening. Its much weaker than most people think now. It could be, with china you have to keep in mind the scale and magnitude of the economy were talking about here. Chinese retail sales are going 10. 5 year over year and the United States is 1. 6 . So this idea that the chinese economy is collapsing, something talked a lot about when apple recorded earnings, ludicrous. So, you know, there can be fears about the impact from china. There can be fears about marginal slow down absolutely and we should be worried about the pboc and losing control of the economy and confidence but i dont think weve seen any evidence so far that thats what is going on. What do you think about the market overall . Theres a lot more volatility and serious concerns about the market going nowhere in 8 months. This is one of these markets where our narrative is throughout the year and it point of laws down to earnings. This is not a market and being the year of the first rate hike you have this volatility. Youre going to have enough Earnings Growth to be able to propel the market higher but were talking about growth in the Single Digits rather than what we said over the last six years. What are you telling people to do right now . Right now were telling them to remain invested in stocks but we have been shifting our focus away from the u. S. Which is a neutral tactical position and focussing more on europe. Despite the volatility the earnings outlook will be so strong that it trumps geo Political Risk and we have also grown more interested when you say strong, how much marginally stronger than the United States, though . Were talking about Earnings Growth and teaens. Are you thinking multinationals or smaller players country by country. This is a broad statement about the overall index. You can probably pick your pockets in terms of sectors and countries but for u. S. Investors a broad exposure to the euro zone is likely to pay off. What do you think this is the best play at this point . As always and were in a bull market people should be invested and not selling every headline. We have been climbing a wall of worry since 2009. Were going to keep climbing that wall of worry in our view. The impending hike could be an issue for stocks but every indication is this will be a very mild hiking cycle when they do eventually get off. What would concern you . What sort of red flags . I think if we did see inflation start to really take off. Thats something no one is talking about and something that we should probably be more aware of and right do you worry about that . Not in the u. S. I dont. With the devaluations of the yuan. Thats all a massive inflationary impulse. Energy has base effects. Imported goods could have an issue as far as dragging down core headline inflation by, i dont know, maybe. 4 for a year or Something Like that. But as far as the core inflation nary in this country were running out of workers. Were slowing down. The acceleration in blue collar wages that we saw with the index. Theres lots of indications. Thank you for coming in today. Coming up, the streets reaction to ciscos First Quarter results plus what the tech giants ceo makes of the trouble in china now. But first a look back at this state in history. Apple now looking apparently to push the ipad into the Business World a little bit more. The wall street journal reporting this morning that the company is working with more than 40 different Tech Companies to make the device a more appealing tool for work. That move comes as apple tries to deal with falling ipad sales. They have their partnership with ibm. Its a little bit more business friendly going down to the point of you have been telling them look you have to grey this word out or you should have this word here or theyre going into the apps and theyre saying you need to make it this way. If you have a calendar over here, it should integrate with this and nobody is buying it i dont want to say nobody is buying them but the idea of using it as a business tool is gone but theyre talking about the ipad pro coming. Its a much bigger screen, that can come closer to a real laptop. Whats that going to do to the laptop business . I dont know. I want to buy the new mac book 12. The really little thin and beautiful but now im sort of waiting for the ipad pro or whatever that is. I like having a keyboard. I know, you dont like the glass. I have ipads but i carrie around my laptop constantly. Cisco reporting after the bell. The company beating on the top and the bottom lines. This is the first report under the leadership of new ceo chuck robins that took over for John Chambers. Talking about exposure to china with our own jim cramer last night. China is only 3 of our business so our exposure is very limited. However its the second largest economy in the world. It will become the largest economy in the world. So we have opinion there 20 years. Were committed to china for the longterm. We have spent a lot of time over there recently and we really understand whats going on but right now we have limited exposure. Were very committed longterm. Lets get a check on where the stock is trading right now. It was higher and still is in the premarket. Theres a look up about 3. 5 . Joining us to break down the results is tim long. Managing director and senior reerj analyst. Good to be here just getting used to a new voice. Not only were results good following 20 years of John Chambers got to be taunting for any new ceo but we have seen a lot of activity from chuck already in the three months since the announcement, a fua quiz situations of underperforming businesses and acquisition of the security company. A real solid quarter and some Management Changes flattening out the structure so we think its been very solid for him so far. Strong in the u. S. Offsetting some weakness elsewhere. How much is sis coe for a real economic view. I remember when John Chambers said the word lumpy. And everybody got concerned about what that meant for the Global Economy. How about now . Theyve always been good about whats going on. Particularly in Enterprise Spending its about 75 of their revenues. So its been a pretty good barometer. Weve seen the u. S. Has been very strong both on the enterprise and the commercial so the Small Business side and they called that out about two weeks ago and they have really been good on calling inflection points in tech and we have seen really consistent quarters. What about the idea that software is playing a much bigger role than it ever has. Thats good and bad. The bad being that it takes awhile to make that transition and we have seen that show up a little bit in the results. This is generally a very challenging thing. I cover a lot of tech hardware companies. When you want to make the revolution to Software Revenue hits because software might be cheaper so your revenues might go down and your margin profile and consistency is much better. Cisco continues to move higher and theyve been transitioning for three years or so now seeing that the world wants more software. Its a big spend. Theyre spending a lot of money. Areas Like Software youre getting low single digit growth at this point. Is the expectation that growth is going to ramp up as the Spending Continues and theyre able to adopt their software. You could argue theyre facing a revenue hit now because what could have been recorded right now gets more deferred over multiple years. Its a single Revenue Growth company over the next years. Theres still operating leverage in the model and with the software we should be expecting better growth margins overtime. Andrew, you look like if you were joe i would get killed on. Its a different type of china question. Edward snowden question which is to say what do you think of the longterm impact on cisco has been relating to the nsa and everything we are doing here and whether you think thats still trickling in as a problem to the business. China say little bit different for cisco than the other companies in technology because they have a very large competitor so theres two large chinese competitors so in addition to the geopolitical issues going on theres also within china and the Tech Industry i cover the wireless space as well, theres a big push by the government to use local companies and local components so how much of it was snoeden and how much of it was we want to use our local companies . So i think chuck on that segment said 3 of revenues coming from china. Thats probably largely u. S. Or Multinational Companies that are in china. So i think theyre hike many of the companies that faced competitions from the domestic Chinese Companies theres going to be a little bit more of a head wind because its not just a macro issue. Its a competitive issue as well. But you think using snoeden as an excuse is a good one. A little prop for me to say where i sit but i do know that its a global and theres such a real alternative there. We have to go but is there a read through to anybody else . Juniper . Have they reported yet . They had a very good quarter. But i