Look at europe. Those numbers are even stronger. You want to see this thats what i was thinking. Wow is that because of our deal here we dont like crises crisis averted. Yeah. Only adding another 300 crisis kicked down the road. Right it gets interesting when you think about the timing of when the next will be treasury yields at 2. 055. Hes like the cnbc app. Youre like a human version of the cnbc app. Joe just recited it before the show began like rain man i decided since you you may or may not know thank you. I cant sleep. Im like cramer, up at 2 00, answering people on twitter. Talking to people. Trying to help at 2 00 in the morning youre doing this no cramer is. Cramer at 3 45 is. I know. Yeah. Its decision day in the uk. The conservative party suspected to name a new Prime Minister today at about 6 45 a. M. Eastern time well bring you that decision as it happens former london mayor Boris Johnson is seen as the clear favorite theresa mays successor will take over tomorrow afternoon of course with johnsons elevation to Prime Minister, the concern is that the uk is hurdling closer towards a Nodeal Brexit so the reaction in europe is maybe surprising in corporate news, apple is reportedly in advanced talks to buy intels smartphone modem chip business. The wall street journal says the deal, which includes a portfolio of products and staff, worth at least 1 billion, coul be struck in the next week the transaction would give apple access to work and talent behind the push to create chips for 5g Wireless Technology saving years of development it would have to do on its own. For intel it would shed a business that dragged on the bottom line. The journal says the companies have been talking for about a year this is like pocket lint for apple. It is people thought this deal was off when apple did the qualm deal you have to imagine if they do the transaction with intel, eventually could be two, three, four years down the road six years is currently the contract with qualcomm eventually they would replace that you could imagine they would try to put their own chips into the system its interesting, they want to control their own destiny more they did that with dialog semi, they bought that for 3 300 billion. Trying to gain control over the supply chain and exact more cost efficiencies im sure the chips will be cooler looking so when you open up your phone though the design guy is leaving. Maybe rounded edges instead of being chair seethrough some gold okay. It will be cooler, no doubt sure. New numbers this morning im wearing my watch im proud. Certainly not a fashion statement. It is my own version of a fashion statement. New numbers this morning on which tech giants in the top or are the top spenders when it comes to washington lobbying cnbc producers in washington and San Francisco crunched the numbers to reveal that now its on the screen, you know if youre on the radio, guess. Facebook is leading the field in q2 spending with just 4 4. 1 billion. The money was spent amid heightened scrutiny on capitol hill around deep fake videos ahead of the announcement of the libra Digital Currency we have more on those findings coming up. Facebook, alphabet, microsoft, qualcomm and apple its interesting that qualcomm is number four on that list given its relative size to apple and everybody else autonation, the Worlds Largest autotailer is making a change the ceo who took over in march is leaving we had him on a couple months ago. He had navwas a Naval Academy gd leave it there ill get to it go back down i know some stuff about it he was at usaa and a fitness guy before that. But the interesting thing maybe is that autonation theyre going nuts Cheryl Miller will take over as ceo. Shes been with the company for ten years. I think shes been ceo or cfo for four or five years cheryl and mike jackson will join us live at 8 00 a. M. Eastern in an exclusive interview to talk about the change in direction. If you have not seen a female ceo at the helm of a publicly traded auto dealership the dealership. Mary barra exactly i think mike jackson said the gap was too wide between what i guess there are some specific things about auto retail i scratch my head when i read about that the idea that the auto dealership business is so complicated that somebody from the outside cant get their head around it . If its not a good fit, its not a good fit sure. Sometimes its do the personalities mesh, do they like each other do you think this happens all the time this kind of chemistry whats this what kind of chemistry . Us . Us is this a not good fit example or you know youre a guest here, right . I know. I can leave at any time. Shes a single anchor nobody else could but with us, were right youre a team its a team a dynamic duo what happened when he came in today . You wanted to help him with the tenyear yield it was beautiful do you see that often between you no coming up, more more of this whatever it is a busy morning for earnings. Were expecting numbers from cocacola, United Technologies all around 6 55 eastern. Later, well talk about the debt ceiling deal with florida senator rick scott as we head to break a look at the biggest pree market winners and losers in the dow. And drive, intel, dow, United Health up this morning back in a moment. Yep the love is on. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back were awaiting results from cocacola, so sara eisen is just somewhere so excited because coke is coming out travelers and United Technologies are also coming out. Here to talk about this is leah bennett and jack cafferty. Jack, im worried about you. Were you not as long as you would like to be or out of the market this market has you scratching your head, right i i dont think anyone after this year expects a 20 rally at mid year. I think a lot of people are caught off guard with respect to ou positive t how positive the market has been ive been thinking about being fully invested along the way and looking at rebalancing as things have moved and moved faster than i would have anticipated in other words, you have seen some things that maybe have not happened in a while. You make the point, you have to go back to the middle of the 80s since you saw Public Officials trying to what trying to control Exchange Rates . Draw down the dollar. In terms of working through that thinking so much about the trade deficit, the trade balance you could substitute challenge for japan, pushing back on germany as opposed to pushing back on europe as a whole. For the most part from the late 80s through the early 2000s, the position in washington has been let us regulate the economy, let the market operate within the guidelines of that regulation today you actively want to try or not you want, government officials are saying this is more the outcome i want. Youre not giving it to me let me try to drive towards that are you making a case that things are stretched because normal fundamentals are not at work here . I would say that people are not experienced with it. If you think this is the way does it have a bad ending it doesnt have to. People have to get more comfortable operating in a different environment. You can think of my major was political economy. So which was a fancy way of saying economics with a little overlay of politics. Right now the overlay of politics seems more important than perhaps thinking about thank god that was your major. Was that really it it was. Youre perfect for this job now. People are like cafferty studied this stuff you will run Jpmorgan Private Bank thats very kind of you and very unlikely. Okay. All right. Leah, what are you saying at this point its been an interesting year this year. I disagree i dont think valuations are overly extended. If you look at the number of stocks that are trading at least one standard deviation above the historical norm, its only 10 of the universe. To give context, back in the dotcom bust it was right before the dotcom bust, it was about 60 of companies before the financial crisis it was about 50 of companies so i do think this earnings season is going to be critical you definitely have a lot of negative global Macro Economic headlines without question but so far youve seen companies that have any exposure to the consumer doing fairly well if you look at the big banks that have reported, anybody who has exposure to Consumer Lending has done well. If you look at united, a lot of their upside came from Consumer Discretionary spending were focussed on what the Tech Companies will do. Tech led the rally the last several years. They had a huge discrepancy ain performance, and year over year earnings should decline for the Tech Companies it will be interesting to see how they react whenever we have Richard Fisher on, he says of course texas is doing well. They have all that oil and gas he says thats not it. Theres a lot of other things. All these things he brings up that make it a great place to do business are you a bit skewed because usually things in texas are not quite recessionary resistant, obviously if oil goes down, but pretty solid place to do business i think your whole career has been down there. Texas a. M. , rice, et cetera . Thats correct. I spent the vast majority of my career in texas. It has been a great place to be. We had a Huge Population shift westwood is a Global Company we have an office up in toronto that follows international and emerging market strategies, and an office in boston that converts for us. As a team we share Economic Data but youre right, texas is a great place. One of your stocks is conoco. So its not just technology. You also like Consumer Staples technology youre increasingly concerned or what did we find out yesterday . Four stocks account for 20 of the gains in the s p this year the well known names its been an extremely narrow market we do like conoco. Its been a recent name we purchased. Looking at valuations. If you look at the Second Quarter, its the only sector 2 that is down fortsz yea the yea. Its attractive. Conoco is fairly defensive, has a great balance sheet. We also like looking, as you mentioned, at Consumer Staples we like nestle quite a bit theyre accelerating their top line they have a new ceo has came in in 2017. They sold their u. S. Confectionary business and have been growing more in organics. And another company that we like a lot is capgemini we think europe is quite interesting. We took some money out of u. S. Equities and put them in the International Markets earlier this year. Europe is facing a lot of challenges, but it has been facing a lot of challenges and valuations are lower there jack, youre not buying and holding your nose exactly, but is there a level on the s p where you would say this is too much when you started talking about 18, 19 times earnings is that 3 d,200 7 would start getting fair theres an old guideline, inflation plus failing pe equals 20 Different Companies, different growth rates, different balance sheets, you will work around that you certainly have a reasonable chunk of the market that is trading cheap, effectively saying there is no expansion or the expansion will get cut off fairly soon. Mid teens percent from here, youve gone too far too fast and life gets messier. Okay. Great. Thank you both just looking at stanley and black decker 1 110 million of tariff commodiy and currency headwinds in the Second Quarter well take a closer look at that not sure if they beat or not we all have our antenna up for tariff issues. Earnings are flat, right after some great gains last year thats the thing comps are tough. Earnings are tracking a bit better than forecast about a 4 gain. When you start thinking you can tell the issue and what you want to exclude. Well see after this week with 130 Companies Reporting okay. A lot more to come we have a couple of financial stocks on the move nearly trading. We have a rundown of the biggest winners and losers next. And the uk set to announce its new Prime Minister, its going to happen in the next half hour. Well take you to london for that official announcement squawk box returns with all that and more in just a moment were changing whats possible every single day. , and if you run a business, that means a lot. We create Financing Options for your customers. To help them get the things they love instantly. Our data provides insights into what your shoppers have already bought. So you can offer them what they might consider buying next. Our financial and Tech Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . They have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again ubs reporting better than expected Second Quarter profits. The bank seeing gains in its advisory business. Ubss ceo saying the uturn in Interest Rates in the u. S. Ha created pressure were also watching shares of Td Ameritrade the ceo will leave the company in february, but he will stay in his role while the board conducts a search for his successor. Earnings are out for Stanley Black decker they earned 2. 66 a share for the Second Quarter, 12 cents above. Revenue did come below wall street forecasts the company said it faced 1 110 million in head winds that related not only to tariffs but throwing in commodity costs and currency fluctuations during the quarter. Have not seen the trade yet on stanley. It closed about 141. Its reiterating its 2019 gaap outlook. Shiares of whirlpool are lower. The company said it sold fewer appliances in north america but at higher profits. It is trying to offset higher production costs and the impact of tariffs on steel and aluminum. And Arcadia Pharmaceuticals tumbling today the biotech drugmaker says its treatment for schizophrenia did not pass a latestage clinical trial. Shares are down about 16 . If you own that stock, change the channel. Coming up, busy morning for earnings were less than a half hour away from report cards from three dow compone components well bring you those numbers and instant reaction on wall street as we head to break a look at yesterdays s p 500 winners and losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Oh, wow. You two are going to have such a great trip. Yeah, have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. Welcome back youre watching squawk box live from the Nasdaq Market site in times square. Triple digit gains now up 103 so far. It helps with this, i think. President trump and congressional leaders announcing an agreement on a twoyear budget deal to lift the debt ceiling and raise spending levels the deal will avert a feared government default later this year but will add to the budget deficit. Need to pass votes in both houses of congress before President Trump can sign it. Everybody said yesterday were on board both sides did say that. It has been pointed out that the election is coming up. Not hearing either side talk a lot about the 22 trillion. Mcconnell said this is a great deal, but it does keep things humming along in terms of how much were spending. Do you think the conservative base of if think conservatives are trumps base, will that impact this . I dont think conservatives are necessarily his base i think theyre all on board he started with reagantype democrats. Blue collar people populism things like that some of the most wellknown conservatives have been the most outspoken. Bill crystal, he has not gotten over this yet at all its gotten worse for him. This date would be after the election, which would give President Trump some breathing room, and if President Trump was not to win a second term, the first 100 days of the next president , instead of dealing whatever you think the signature thing will be, theyll have to deal with this i will imagine all of a sudden it will become a fight all these people who dont care about the deficit, i imagine, it will care about the deficit a lot. You travel in high circles. Low no, you do. Are you getting the feeling i feel i know who the nominee will be i think it will be Kamala Har