Also sac is firing back at the u. S. Government. The wall street journal reports the firm sent a memo to all employees with a rebuttal to allegations that steven cohen failed to take proper steps to prevent Insider Trading. Sac says that evidence shows that cohen didnt read the email at the center of the allegations. That email in question is from august of 2008. The s. E. C. Says it reflected, quote, clear possibility that information about upcoming dell earnings was improperly obtained. The government says the email was forwarded to cohens office and home email addresses. In a report prepared by cohaens lawyer says that so many emails landed in his inboxes that he opened just 11 of them. Interesting. Dow component, dupont, if you saw the top of the hour, i dont know, i recorded something about it. We knew it was coming. Alan coleman will be on the show later today. At this point, it is either a there is some stuff in here. Some net numbers just one net number, 1. 11. The street 1. 27. The revenue estimate was okay, 10 billion, which is just below the 10. 009, which was expected. The company sees adjusted full year earnings of 3. 85, thats above where wall street is. I have a feeling okay, operating earnings is 1. 28. There is the number. Operating earnings 1. 28. If you include charges and items, down at 1. 11 or 1. 03 billion, but the apples to apples comparison, a penny ahead and the revenue number you have to call inline with expectations. Company says it is realigning its leadership team, naming some individuals to some different positions that you probably never heard of. James collins jr. Has been named Senior Vice President , some there are some individual numbers here in terms of what the company did in the u. S. And canada. Emea, thats a europe middle east and africa, 2. 08 billion. Volume up 1 . Probably should get a forex number here. Here is another one. Continuing operations earnings per share 1. 15. Im sure 1. 10, just corrected that. Stock at this point indicated open, looks like maybe a little higher, though the spread between it is interesting. The outlook, the Company Points out that they expect to see 60 of the second half of 2013 operations in the Fourth Quarter. A back end loaded outlook. The 3. 85 is above the 3. 80. Right, right. They also talk about that leadership change that you were mentioning, they mentioned that theyre doing this because theyre trying to transform the company to a higher growth less Cyclical Company that integrates its biology, chemistry, materials. Science execution. Yeah. And then, you know, we know that peltz bought something, thats what sorkin reported, but he said what do you know about it . I think he said one word, paint. Plastics. Paint. Key witness is scheduled to testify today in the s. E. C. s case against former Goldman Sachs trader fabrice tourre. I still think it ought to be tourre. Tourre. Why waste letters . If you use them, use them. You get more chicks. Tourre, of course, that is being used by someone, that one name guy on on msnbc. Is it on msnbc . Yeah. Got that going for us. Not that tourre, but this tourre is accused of misleading investors in the 2007 bond deal. The witness is laura schwartz, a former executive at a bond insurer. The s. E. C. Says shell testify that tourre told her that hedge fund paulson and company was backing the deal. The testimony is a key to the governments case, alleging that tourre hid from investors that paulson and company was betting against the deal. In other news, miller coors is calling on u. S. Lawmakers and regulators to boost oversight of the london metal exchange. And the banks ownership of ware housing firms, this has to do with the article in the New York Times over the weekend. They argue that inflated Aluminum Prices have cost buying millions of dollars and the Senate Banking committee is scheduled a hearing today on whether banks should be owning physical operations from metals to ware housing to power plants and responded yesterday. Said that another said that it represented a minute amount of the aluminum, but i think less than 5 was the Goldman Sachs response. All right. Lets talk about what . Im sorry i asked. Never mind. There is somebody on trial now. Lets talk about a few stocks to watch this morning after all the after the bell movers last night. Shares of netflix trading lower after the companys earnings beat forecasts. Revenue came in in line, but the new subscribers, thats what fell short of analyst expectations. Julia boorstin talked to Reed Hastings and will join us with the highlights in the next half hour. Texas instruments getting a boost in late trading. Earnings beat the street by a penny and ti offered an upbeat revenue forecast saying that customers seeing more confident about placing forwards for chips. The stock up by 16 cents. Shares of Zions Bancorp lower after the companys earning failed to impress investors. Now looks like trading higher this morning up 29 cents. But rentacenter shares surged after the bell. The companys earnings beat the street and raised its full year Profit Guidance and that stock, at least on the last trade we have on this board, is down 1. 73 . So well keep an eye on these things as we get closer to the opening bell. Check on the markets this morning. After another up day yesterday, but very small. Were basically in record territory for most of the averages. And all got to do with the bernanke and coulmpany, quiet wk for him. A week without any testimony in front of congress. Hes done with that, sntd is he . I guess. Without the release of fed minutes. There is 18 people that at any given time are speaking somewhere that might, you know, they say they dont say taper, they do say taper, inflation, dont say inflation. I think after you get through the worst, at least for now, before the next step comes along. I dont think the other players can sway the markets at this point. The put is on. In good shape. Put is in good shape. So, you know, if thats what determines market valuation, we should be okay. And well look at oil and people arent tieing this to the fed anymore. Though it is weird. People say there is demand and that you dont know about supply and apparently people drive in the summer, we realize that every year, but 107 is ugly and so are gas prices. I filled up again this morning. How much . Not bad here, but if youre on the road, i paid well over 4 a it depends where you pull in. If youre held hostage to a new york through way or something 106 or 107 and knew the prices were going higher. The shock number is now 5, not 4 anymore. 5 bucks. 5. People dont where does oil have to be to get to 5 bucks . Who knows . You know what it is dependent on. What . The. The crack spread. Right, the bigger the crack spread. The tenyear note, which is not been that exciting lately, which we like, 2. 51 . The dollar a couple of stories today about first time home buyers not being around, they were only Something Like made up 30 of the sales last time around, used to be 40 . 20 to 30yearolds. Buying for first time. Inside on the jump, there is a story about how there are 2. 4 Million People living at home or living with someone else. Not in italy, here. Yesterday the journal had a piece, talked to jim cramer before squawk box and i saw some of that. This is not a selfsustaining recovery and that earnings have been lousy and some of the latest economic numbers have in the been so great. I understand why they put that on the front page. It is contrarian and goes against the grain of what we have been hearing, the market is calming down. But i think jim is probably right. There are some better numbers than they might expect. My take is not dependent on any anecdotal evidence. Mine is that it is something that can go wrong, it usually does. The exit strategy for the fed depends on this nice steady upturn in the economy and this nice steady decline in the Unemployment Rate. I dont think it will be a soft landing. I dont think we have seen the last of it. Knowing they told us they wont get out until you get to the numbers, which are still a long way off. Knowing that theyre not going to get out and want to get out and everybody wants them out and knowing that they can change their mind at any point. They could. But if we dont if it is not a smooth move to those numbers, then theyre stuck. And then you see the problem where we told everyone we would stay and we would be there for the markets. I think you and jim and the journal and i can all be right. It is just degrees of how you look at that. Is anyone predicting a recession in the next two years . No. And hasnt it been five years since the last recession . Yes. Are you predicting one . Im not predicting one. Usually it comes from higher Interest Rates where the economy overheats and we dont necessarily we have we dont have all the overleverage we have been working through and europe seems to be getting better. No reason to think it can happen. Im just doing it from murphys law, because they need well, by mid2013 wile be at 6. 5 and then at 6. Nobody knows that. Nobody knows that. Hopefully we will. But got so many things i think the fed knows that. Bernanke does. It is data dependent. Hes not going to be happy with it because it is lower participation rates. They didnt realize the number was getting there. All right. Where were we . Dollar. Yeah. 1. 31. I dont know why the euro is as short again. Well see. Almost 1. 32. Gold, huge day, and some short coverings, down a little bit today, but up for the biggest one day gain in a while. I made the point yesterday that right near if you drew a line, a descending line on the highs there, and on the lows, it is like in a band. At this point, if it gets through that and heads higher, a good bottom there. If it didnt and turns back down, you can imagine it would go down. See it . See my band . I used to be able to draw those. I used to be able to do it on on the thing, yeah. You cant do that anymore, can you . No, i dont think i can. Does this work . It doesnt do it, does it, matt . A check on the Global Markets report now. Carolin roth is standing by in london. Are people watching the markets or just watching the royal baby at this point . You know what, there is all this excitement about the royal baby, yes, it is a boy, but we still dont know what his name is going to be. James i hear is one of the front runners as far as the bookies are concerned. Let me show you whats going on. We are higher. But only modestly so. A couple of things at play here, becky and joe. Encouraging comments about china from the chinese premier. We also got a lot of earnings which were better than expected. And a lot of m a activity in the telco space. Let me just show you where we are in terms of the individual markets, the xetra dax moving higher by 12 points. Ftse 100 up by a third of 1 . The ebicibex in spain up, a smo tbill auction, two of them with borrowing costs falling significantly. The psi in portugal up by 1 , continuing on from yesterdays very strong gains. Now, lets take a look at some of the individual stories which are making the headlines today. Vivendi and france up by 3. 3 . The company is in exclusive talks to sell a majority stakes in maroc telecom. Swatch group better than expected earnings, only st micro down by 7 after posting yet another disappointing set of numbers. Back over to you guys. Thank you. Yeah, james, george, alexander. I saw alexander. I cant imagine it would be alexander. I bet they surprise us. I bet it is none of them. Has to be something with a little history. Create your own history. Another king george. Maybe henry. We already have harry. I dont think youre doing henry. James is good. James is good. Joseph . No. King andrew. Kind of nice ring to it, doesnt it . It does. We have our own prince andrew, but hes not here. Hes got some time off. He does. Owns vacation. On vacation. It is july. Analyst reaction to the dupont results. First, celebrations around the world in honor of the royal babys birth. He was a strapping young buck. 8 pounds, 6 ounces. He was late. Niagara falls, they were illuminated in blue last night to mark the occasion. If you missed it. And youre in the area, the falls are going to be lit up in blue again tonight. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Welcome back, everybody. U. S. Equity futures are indicated higher. Dow futures up by 30 points. S p futures up by 3 points. It is slow, but it is slow and steady and thats whats been pushing the markets higher and higher to record levels. Well keep an eye on this as we are looking through earnings that are continuing to come in at a pretty rapid clip this morning. Headlines today, the judge overseeing detroits bankruptcy case will hold the first hearing tomorrow. He will be taking up the citys request to freeze any lawsuits challenging last weeks decision to file for bankruptcy protection. A state judge ordered the governor to withdraw the bankruptcy petition in response to a lawsuit by retired Public Workers who are trying to protect their pensions. Well be talking more about detroit in the next hour with the ceo of assured guarantee, but this is a huge debate, put on the fast track and well see what happened today. And new Study Suggests patie parents are picking up less of their childrens college costs. Scholarships have the top role in covering the bill. The report was released by sallie mae. Last year this was the average breakdown, grants and scholarships cover 30 of college costs. A parents income and savings, 27 . Student borrowing took care of 18 . That doesnt add up to 100. Interesting. I dont know. Just reminds me of the time we had remember, we had a former football great on who was managing money, and he said he had 100 return last year. And he said i had one fund that was up 60, another fund that was up 20 and another fund up 20. Well, i guess when you add them all up, thats up 100. He played with the helmet. He was serious . He was serious. You werent here. I wont tell me later. When we go to i cant. Hes a great guy. I love him, but if you add, you know, separate accounts, 60, 20, 20, no, it is not 100. If you add up the total return, i guess it is 100 on all the different thats a math, thats fuzzy math. Thats fuzzy math. Did you say anything . No, we all faber was there, thats great. Awesome. Well done. Lets get the National Forecast from the weather channels alex wallace. I cant believe you actually i did. I liked this guy. Well find out who this is. Alex, over to you. Hear a little bit more. A lot of storms this morning. Can we expect to see that . Yeah, unfortunately, pretty wet morning across the northeast. You see it showing up on the radar. We have seen quite a bit of heavy rain move through the philly area. Thats now exited around new york city, getting a bit of a break. Most of new england is covered now in the rain. As we head through the day, well watch for more showers and storms to develop. This is all out ahead of the cold front that is trying to march its way through the northeast. Showers and storms potentially impacting us throughout the rest of the afternoon. That cold front extends all the way back into theed middle of country. South of it, muggy, moist warm air masses in place. As front marches in, showers and storms develop. Thats where we think the severe storm maze try to develop for us. Kansas city, across portions of arkansas, into tennessee, and up into the ohio valley, Severe Threat with damaging winds and hail being one of the bigger threats we have to face for the day. And for those in the midwest, looking for things to cool off, going to happen as we get into this weekend. Another surge of cooler air in from canada and for this weekend, high temperatures will be anywhere from 10 to 15 degrees below average. In some cases, feeling like the middle of september. So refreshing air mass on the way for the midwest. Back to you. Thats good. Its been hot. That will be a little bit better. Great. All right. Alex, thank you. Dupont out with Quarterly Results a couple of minutes ago beating sximt ining estimates. Lets get reaction to the numbers. Joining us mark gully. Mark, overall, the company was able to at least be in line, a little better than expectations. Is that what is most important or is it the management realignment or the Strategic Alternatives for this unit . What are you looking at . I think well work back wards. Good morning. The Strategic Alternatives they have talked about. The toi 2 business has been an issue. Fact theyre looking to sell that business with other businesses related to it i think will be viewed as positive by the market. Which business is that . Toi 2, a pigment used in titanium. Thats the thats in the paint. Thats used in paints. It went from peek to troth in 12 months. The peek of the cycle was last years Second Quarter. And the company will try to maintain this morning, but the trough is this cycle. Does that play into what peltz has been talking about then . I think it does. It is a step in the right direction. He, i think, was going to propose the Company Separate into two pieces. But the ag, nutrition and bio business go the other way and the rest of the businesses go the other way. Im sure management will point out the sale of this business goes a long way to what he wants to achieve, so, yeah, i think were making progress. Looking at the numbers, globally, what can you extrapolate anything. There is forex to talk about. What is the state of the Global Economy from what you can tell from dupont . Looks like theyre in line with what, as you point out, the quarter is in line, the guidance maintained at 385. The year, this year, will be back end loaded. The guidance for the third quarter, the quarter were in right now, is 42 Cents Per Share<