Points higher right now. The s p 500 looking to open little over four points higher lets show you what happened over night in asia as well maybe were pushing a little bit i was going to say, i thought it would be the opposite situation but the hang sang off little over 1 almost 1. 5 . Shanghai composite down. European equities as well right now. We see whats going on there there you have green arrows across the board finally the number that Alan Greenspan says he likes to look at, treasury yields. Show you where things stand. Thats a sad i look at all those things its a sad commentary on our life. I dont know if its sad. Sad that its the first thing i do oh, to see before coffee, before brushing my teeth, before anything. Yeah. Shaving shaving any way, developing story this morning, over the british ship that was seized by Iranian Revolutionary guards last week, iran releasing new video over the weekend shows commandos repelling on to the deck tanker from helicopters uk leaders spent the weekend weighing response. The government is expected to announce its next steps in a speech to Parliament Today interesting strategy i know that were the great satan here i guess the uk is our al lice and want to put pressure on anyone they can for the sanctions but what do you do . What do you do put you in charge for the day you can do what you want. Just for me, the criticism when we try to do something in response is were going alone and need to get a coalition together of the willing. When they indiscriminate about who theyre messing with, it seems like we ought to be able to at least do this one where its not oh, theres the imperialist United States again trigger happy going after a smaller country. I dont im not happy theyre doing it to the uk, but im glad its not the United States wow, theyre indiscriminate about who theyre or is this kind of limited engagement its nuisance factor its a show of force. I thought they were baiting trump. They know that he does not want to get us involved both wars by veterans are seeing not being worth it those are the guys we asked, you know, all the sacrifices from and if we sent them over there and they go full bore, lay their life on the line, then the end result when its all said and done, i think iraq maybe if it had just been afghanistan, i think maybe we wouldnt have that do you think thats probably true i think two of them together in 20 years plausible, right. First thing we talked about, you know how long its been since your life is going quickly sorkin. I know that. How long has it been since the fed had an Interest Rate cut . Thats a good question. It has literally been a decade. Once they got to 0, that was going to be the last cut. Well, if they were in the europe, you can go to minus 5. Thats true. But its still kind of weird. It doesnt seem like it. That was remember when they were cutting. Streets of hong kong are once again descending into chaos that happened over the weekend. A protest march began peacefully until demonstrators reached the Liaison Office and vandalized chinas National Emblem and spray painted security cameras movement then took a violent turn unfortunately with police launching tear gas to disperse the crowd. Protest rs are fighting for proposed extradition bill and calling for reforms in the chinese territory. Isnt that bill dead i believe so, yeah. Once this starts happening, you wonder youre not sure whats causing it at that point. The yellow vests are still around in paris. What is the end result some limited basis. Some people will show up for a demonstration. Theyre not sure what its about, i think china unveiling highly anticipated science and Technology Innovation board overnight. It is designed to give chinese investors the opportunity to buy into home grown Tech Companies that have traditional turned to wall street to sell shares the star market comprises 25 markets. Those companies soared on the first day gaining between 84 and 400 at the close. Of course we just mentioned the overall main chinese equity index were down substantially. And i guess on the traditional exchanges there, the upside is limited to Something Like 44 . Theres no limit on no Circuit Breaker upside on this new market so on day one, they ensured a success. Also Corporate News over the weekend. This didnt affect you guys, did it either of you . You were safe . Cbs and at t blaming each other for this big blackout of cbs stations on directv and uverse started on saturday. Stations in more than a dozen locations went dark after the companies failed to reach a new contract cbs says they continue to negotiate with at t but the loss of program could last a long time this of course has happened over the years multiple times. The question is how long can this really go and if it makes it more complicated, cbs, of course, in the midst of these negotiations to do this deal with via come. If you really think this is going to go on for a long time, dish dropped via com channels forever. It wasnt just cbs would be much harder to do that with. Usually what settles these things is the nfl. Get to football season, theres no way. I was thinking that, too. The masters would have been a time when i needed cbs, but be hard pressed forme to think i really need cbs for anything. Csi doesnt do it for you dont watch any network Big Bang Theory repeats their uverse, is that them directv directv, uverse. Both of them. I saw 15 minutes of something. Its hard for me to get over im a little scarred i have been having nightmares about it, the bachelorette. I was forced to. Just like a clock work orange, i was forced to watch. It was so uncomfortable it was this woman was i dont know, she had sex with some of the contestants and the guy is a real religious guy i think they were going to get together, you know what im saying, hes like grilling her on whether well, you havent slept with any of these other guys and she admitted it it was so uncomfortable then she got so mad at him. Now im uncomfortable people out there have seen it know exactly what im talking about. Then he said after he found out that she did this, he said im going to pray over you for her it was whats wrong . Its only 6 08 and we have to go to break. No, im going to pray over the equifax. You seem pretty interested. No, this guy is finished. He is done theres going to be another guy is going to be the one she was oof that was the first ive seen i cant believe thats first time you have seen the bachelorette. No, i have seen it before i have been hearing lot about it from other people. Lets pray over equifax. I thought this was a company or guy that was going to be put out to pasture equifax nearing a deal to pay about 700 million settle a probe by the federal trade commission to that massive data breach back in 2017. Courts say the settlement could be announced today the breach exposed Social Security numbers and other private information of nearly 150 Million People also johnson and johnson defending against thousands of lawsuits over the safety of its talc products. The judge will hear arguments today whether j j can exclude testimony from expert witnesses retained by the plaintiffs company is questioning their conclusions but theres Scientific Evidence that talc can cause Ovarian Cancer you looked into this, right . You have a view on it. About 20 years ago. I didnt know that it was they supposedly slight contamination of talc with asbestos i thought talc itself to years ago i thought it was similar to the molecular structure i dont think thats true. I think its hard to make or produce talc without saying that maybe theres a very small amount of that, but i dont know why dont we know . It seems like you can find out whether there were trace elements. J j says no. This is a big problem for them because you know how juries sometimes work they may not be totally based on the science. On the science. Right and the awards, too. St. Louis fed president said he would love to lead the central bank if given the chance he told reporters friday if ever i got that honor i would certainly take it. I notice the phone, though, has not been ringing off the hook to get that but the phone has the phone has been ringing bullard was approached by the Trump Administration about a position on the feds board of governors but turned that offer down President Trump has been critical of his pick for fed chair jay powell, blaming him for slowing the economy by raising Interest Rates bullard dissented in june in favor of lower Interest Rates making the first Voting Member to do so. So we know jim. Do you think that if President Trump wins a second term that this is a little bit of an advertisement for that opportunity . Maybe so. And he one of his pals tenure is up thats assuming it extends past. Right then he could do it when its actually over. Have you seen fed guys dont advertise . You have seen some of the scuttlebutt thats so divisive right now that some of the states that trump could lose by more in the popular vote but actually win more electoral votes. Have you seen that i was surprised at who actually printed it it was one of those papers do you think which it was . Paper that i thought would have buried that. Stop. What facts of facts. I see that a lot. Did you i feel like if i dont read the new york times, i feel like im uninformed. When i do read it, i feel like im misinformed. Thats an old joke thats an old you like that you have been practicing. Try it out on me. It was either mark one of those guys with great humor, will rogers. Is the bachelorette abc or cbs . Its abc. Youre fine thank god. I can still get it. Got to wait for the survivor on cbs. Is that still on . Are they still trying to survive . Some people tell me squawk is trying to survive. That still on were not in loin cloths. Although we could try that. Coming up, well get you ready for a big week big names in tech and manufacturing set to report. Well tell you what to report as we head to break a look at the biggest premarket winners and losers specifically in the dow well be right back. Sfx [phone ringing] you still have service . Call the Insurance Company its them, calling us. Its going to be a week before they can get through on these roads shhh, sorry, i didnt catch that. I said ask how soon they can be here right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Look up . By automating claims with Machine Learning and analytics, cognizant is helping Insurance Companies advance how they serve even hard to reach customers. Cool im off to college. Im worried about my parents retirement. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Its a busy week on wall street for earning well hear from 133 s p 500 companies, 10 dow components, 3 of the faang components and other highlights including cocacola, at t, boeing, caterpillar, ford, tesla, comcast. Intel and starbucks and mcdonalds on the data front, the main event is friday when we get the first look at the Second Quarter gdp. Sa santoli, i thought about you i didnt think this was that staggering that three of them, microsoft, apple four of them. These are big names, amooi crow soft, apple, amazon with huge market caps. The advances this year in the s p 500 account for 20 of the advances. Right. I usually thought when we think about how tech weighted it, i thought it might be more than 20 . Right obviously thats more than those four companies waiting in the index. It says those four stocks are outperformed. Right theyre also all big gross stocks in general. Were getting used to using the t word, too. Theyre all coming. Unless they dont large numbers you used to say. Unless all these companies stocks stop bleeding the market. If they keep going up, then they can buy back stocks, too. Last we got 2 above the trillion and then the market corrected. Joining us now, jim paulson. Thinking about questions for him. Hank smith, Investment Officer paulson, we go way back obviously. Correct me if im wrong, but in 2018, you got less bullish and it ended up being a flat year, i think. Now against the lot of the grain you have been really pretty positive in 2019 and you still are, i think, in terms of more upside surprises than downside surprises. And you still feel that way even about earnings this quarter . Well, i think joe we have been kind of putting the market back together again. We lowered the valuation we lowered the competitive bond yield. The market is up this year but still a lotcheaper than it was in january of 18 and the competitive bond yield is a lot lower. Financial liquidity finally went positive again in the Second QuarterFirst Time Since 2017. You talked about concentration of tech. It was much more concentrated last year. The one missing ingredient which is why i still think we had more room is earnings they have been flat line this year and i do think that markets going to be determined here in the latter half not by the fed, not by the trade agreements i think it will be determined by all the policies that we introduced here, money supply, more fiscal stimulus will work and the economy will do better or its not. And if it doesnt, were going to have recession fears and probably a bear market but i think its going to work and if it works earnings will go up again theyll go 2 treasury yield and 2 inflation and liquidity support and i think that means you have another nice leg in the second half of the year. Hank, that plays into what your thee siz is, too. And it doesnt seem like its that hard to understand or come up with, were back to tina. If rates are going down from low levels, what else is there except for stocks. Yeah. And absolutely not only that, you can get better yield in the stock market than you can in the bond market. They talk about financial repression, forced to go into the stock market its wonderful in the stock market because you can buy these great Blue Chip Companies with better than bondlike yields and you get dividend growth. I would like to add one more thing and i totally agree with jim, sentiment sentiment remains sour here we are in the 11th year of a bull market, a historic bull market and there is still plenty of anxiety and fear. That shows up more in what investors are doing as opposed to what theyre saying and theyre taking money out of domestic equity funds and putting money into fixed income funds. And anyone buying a bond fund today or marking money and cash is not expressing their confidence, their exuberance, their optimism, their euphoria, they are expressing fear oun of the attractive vehicles i was a stockbroker once, converts whether bonds are preferred or whatever, you know, they pay a nice yield and then theres the underlying stock goes higher and it goes higher as well but theres always a premium over conversion. When you buy a yield stock now, theres no premium over conversion youre getting a bondlike yield and you get 100 of the upside an theres no call features where you get called away if it goes way above par its almost like giving things away, isnt it, hank thats pretty good. Its truly one of the great features of being an Equity Investor but theres no free lunch in this business you have to be willing to put up with volatility. Let me give you an xample. We bought block brock in 2013. It was yielding 3 at the beginning of 2013. Today, our yield on cost of that original position is over 8 due to dividend increases. Thats the way its supposed to work over time over time. Paulson, thinking about it was hot in minnesota, wasnt it . It was very hot, joe. Hank smith, thank you. Were going to go. Appreciate it. Coming up, a lot more to come on squawk box. Do you ever feel like youre being watched . Do you joe, you feel like youre being watched . I read this story they say they dont look in the email. Turns out, folks f you thought you were, you actually are and its happening at work, yep, by your boss. Well tell you you noticed the cameras. Exactly what your Company Knows about you and what you can do about it, which is probably not much thats next. Our job does involve some surveillance. Yes keeping the night interesting, is all about setting the right tone. Lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. Corona premier. 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