Do bells. I got wiener fatigue. It is too easy. Lets talk wall street. It has been we had earnings and the market softballs. I cant do it. Softballs, great. It is another busy day in earnings central today. Among the names that are set to post Quarterly Results before the bell, we have boeing, caterpillar, eli lilly, ford, glaxosmithkline and pepsi. And tonight hearing from facebook. If thats not enough for you, among our squawk newsmakers, well be joined by the cfo of pepsi, Hugh Johnston. And eli lillys chairman and ceo Doug Oberhelman and wick mooreman. We have a big morning ahead. And we have Hugh Johnston on today. And a big lineup. Yes, we do. And and after a nearly decade long Insider Trading, federal authorities are close to leveling a criminal indictment against sac capital. Prosecutors and the fbi in manhattan are expected to announce the charges as early as this week. No word on whether the hedge fund might try to settle at the last moment. But reports say that is unlikely. Founder steven cohen is not expected to be charged criminally, but authorities are reportedly still contemplating bringing charges against other employees at the firm. Well talk more about the story in a few minutes with former s. E. C. Attorney Jacob Frankel. Sandro . Sandro. In corporate news, apples Third Quarter earnings per share beat the street by 15 cents. Not bad. Revenue was in line and iphone shipments jumped 51 , topping analyst forecasts. But apples Current Quarter revenue outlook does fall on the low side of the current consensus. Still the shares are moving higher in extended trade. Well talk about this all morning, get more details. Give you an idea, though, the journals take on this, and the journals been a little bit negative and kind of pessimistic in general on the front page the last couple of days. Apple, the profit slides hit by a demand slowdown was the headline that i saw. Stock was up after hours. It was. I saw on the chart, it was and also if you listened to jim the last couple of days, hes just flying right in the face of some of the conventional thinking about the results were seeing, the revenues are still light, and it is tepid out there, and corporations are running he says a lot of the Big Companies had great results. Not hiring a lot of people, learned how to do it without hiring, which i dont know what kind of world we end up living in. If we end up selling and exporting to the rest of the world as the middle class rises and all these developing countries and if a lot of the stuff we do is built over there, it is a real issue. A real issue how we do the middle class thing that president obama will talk about today. We need to do, you know, i dont know what the new Business Model is for in a technological age where so much is automated at this point. I dont know how you where the middle class jobs come from. Scary job. What are you, jose . Jose. Jose jeopardy. Thats a little weird. Like a trebek sound to it, doesnt it . It does. Makes you erudite. Makes you smart. Last week dell had to push the meeting on the topic back today in hopes of convincing them to take the deal. You need the whip and the whip to whip up the support. The loudest shareholder opposing the deal is carl icahn who put forward his own offer. Here is icahn at our delivering alpha conference, cnbcs delivering alpha conference last week. Things can be done. It is this is worse than, you know, where you had these dictatorships, i mean, you look at dell, it reminds you of a dictatorship. They absolutely go scare you. They say things wrong about the company. They got all the lawyers protecting them. And nobody would have got away with it risk of being modest, would have got away with this if i didnt have a spare 3. 5 billion around. Icahn is just a spare 3. 5 billion. Shares of dell just under 13. Washington news, president obama will travel to illinois today for a speech on the economy. Hell be speaking at knox college, where he gave his first major speech as a freshman senator in 2005. The white house is billing todays address as a major one on the economy, ahead of key budget deadlines this fall. Well get a preview from obama adviser Valerie Jarrett at 8 30 eastern time. Ahead of the president s speech today, there is a new nbc news wall street journal poll out this morning and john has the highlights for us. It is an ugly poll. It is an ugly poll for washington. We talked to peter hart, the democrat who does our polling with the republican, said the entire country outside of the beltway is looking at washington and saying you dont get it. You look at the numbers across the board, this is after months of not much getting done in washington, fighting over irs scandal, the turmoil recently over the zimmerman trial and people were pretty dispirited. You see when you ask people as a country headed in the right direction or off on the wrong track, 29 , only 29 say were going in the right direction. 61 say how does that compare to what they said recently . It has been underer with the f water for a while. President obama takes a step backward. After the election, he was up in the low 50s, now down to 45. You ask the approval of congress, worst in the 25year history of our poll. Approval of congress, 12 . It was already so low. But it keeps going down. It keeps digging. It is journalist level, really. 83 disapprove and then ask even somebody like Speaker John Boehner who is not terribly well known, relatively speaking, compared to, say, the president , hes 2 to 1 under water, 18 favorable, 36 unfavorable. And the rest of the people dont know who he is . Thats so sad. So it it is wrbracing news for washington that is stuck on immigration, stuck on the budget, stuck on debt limit and what to do about economic strategy. They havent even gotten the deal yet on student loan rates. So it is not good news for d. C. The president has this speech today and i did see earlier this morning that ben white from politico laid out the argument that said when the president speaks like this, it doesnt help negotiations behind the scenes, makes it that much more difficult. I wonder if thats what he wants to do. In the past, i thought he was trying to get him to and make sure they pressured other congressman to go along with the plans. Hasnt worked to this point. Right. But when you think about what the president s actual objective is in this speech, it is more longterm than that. It is not just about the debt limit, spending. It is about the debt limit. It is partly about him trying to say here is the longterm strategy that i see, that revolves around education, skill building, ways to add value within the United States, so that infrastructure. Infrastructure spending is part of it as well. You dont think it is about 2014 and congress . Thats when they really think they can get things done. Everything is a little bit about, you know, the immediate fight and how is it looking . The 2014 elections. How is it looking . But this is bigger from obamas perspective. Hes trying to in the long run argument, talking to austin ghouls bee the other day, he said there is a religious conflict between the two parties on Economic Policy. There is one approach that says leave the job creators alone and thats the way we get growth, and there is another that says we need to try to put money and skills in the pocket of middle class people, and they will generate through the added value that they can offer, they will generate rising Living Standards and the president is trying to shape that argument going forward. It is interesting. It goes back to what we were talking about with the jobs that are now being created overseas, when things are being manufactured overseas. There is a deficit, where there is not Skilled Workforce to meet some of the jobs that we do need. Exactly. And part of that is dealt with Immigration Reform through what they do with the visas. Part of it is education. If it wasnt adventurous from a tax point, to offshore stuff, that your halfway there without all the other stuff were talking about, building up the plants here. It is a big problem. There doesnt seem to be any impetus or any interest in trying to figure out what to do to make the territorial tax system favor us a little bit more. Have you seen Larry Summers proposa proposal . Larry is someone were high on around here. You know why . Suddenly the left hates him so much. You know who else is high on Larry Summers . A leading contender now. I know. President obama is high on Larry Summers. Larry is smart. In the reporting i was doing yesterday, which matches what many of my colleagues have done, larry seems to be the frontrunner at this point, nobody knows except the president and a couple of people, but he seems to be doing well. Larrys pre posal is not to have a holiday or not to not to force this money back, but to establish a permanent lower rate that all of this income gets to create certainty in the market, because his argument is he said if you have the expectation of a holiday and holiday never comes, youre in the worst position because all that money is stuck. Larry, deep down, as a private sector guy, he knows where the jobs thats the quandary im in. I want to be the middle out thing too. But i know that private sector jobs are the only thing that generates tax revenue to do all the things we want to do that youre talking about. If youre setting up larry as opposed to obama not being a private sector guy, youre not thinking about it john, we know now, it is not thats never going to be ive given up hoping for that, hoping for a speech, hoping for something that i think this is the knox college speech, what we hear today, thats what were 7 million private sector jobs. Im glad that, you know, the u. S. Economy creates jobs. We are the best the most vibrant economy. But we could be doing so much better. So much better. Few stocks to watch today, based on after the bell movers from late yesterday, at ts Quarterly Earnings fell a penny short of expect takings. The company is hit by rising costs. Revenues did beat the street. Well talk to an analyst at 6 40 eastern. And then at ts cfo at 7 50, when i heard him speak, he knows if youre the cfo of at t, hopefully youre pretty good. Panera breads earnings and revenue fell short. Theyre lowering their full year Profit Guidance. I have no time for bread. Bread is something i just thats the worst. Bagels, oh, bread, bread is just whats wrong with bread . Bread goes right youre doing all right. Bread goes right there, my friend. Nothing good about it. You should just avoid it entirely. Eat the bread and go running. Yeah. Why not run without eating the bread . Eat an egg . A hard boiled egg. Computer softwaremaker vm ware reporting better than expected earnings and revenue and quarter Profit Guidance pleased analysts yesterday. A different story, you can see, nice move, 8. 10 . Broadcom beat the street, but Current Quarter revenue guidance was disappointing. And hertz reported a smaller than expected loss, full year guidance met the current consensus. Juniper, topped wall street forecasts. Full year guidance upbeat and the Company Announced a billion share buyback. They say their ceo will retire and wants to find a successor. As we talked about, federal prosecutors are reportedly preparing to announce criminal charges against sac capital as early as this week. Joining us right now is Jacob Frankel, former s. E. C. Enforcement attorney and partner at shulman rogers. Jacob, theyre not talking necessarily about criminal charges against steven cohen, but this is pretty much the full court press short of that. Without any question. Good morning, becky. Somewhat reminiscent, 24 years ago. Drexel bern laimbeer was staring down the barrel of similar charges to six felonies and that was the end of drexel. Arthur anderson in 2002, indicted for obstruction of justice, wiped out, Supreme Court overturned that conviction. This is, you know this is the ultimate battle. Im really surprised that we are at this point, but these were discussions, back in may, between the company trying to persuade the Justice Department not to bring criminal charges, but almost appearing to be a game of one upsmanship between the Southern District of new york and the s. E. C. , you know, who can bring the next charge and be almost more macho or show more testosterone. Steve cohen and sac were cooperating with the government up until a few months ago. At that point, they said, forget it, were no longer cooperating. Was that throwing down the gauntlet, this is what happens . It is throwing down the gauntlet. The real question here, to your point, a good one, is there still value in cooperating with the government . You have a company that cooperated, in connection with all of the criminal investigations of the internal staff who were accused and indicted for Insider Trading and at the end say thank you for your cooperation. Now not only are we going to turn on you and your principle, were going to indict you to get you off of wall street altogether. There is going to be a serious revisiting of the concept of cooperation with the United States government or at least there is going to need to be a better more concrete expectation of the ultimate outcome. Not to mention they paid a fine. Sac capital paid a fine, well north of half a billion dollars. Was that what happened . Was this something where they really found things out of whack and didnt think the company was really cooperating or how do you read the tea leaves here . It is difficult to read the tea leaves without being inside the room. You look at how everything is postured right now. And steve cohen, you know, for the company, has hired one of wall streets premiere trial lawyers. Theyre going to fight this criminal case. When i was a federal prosecute, i tried a case against ted wells in the mid1990s. This is going to be a fight to the finish, but almost beyond that point of what were those expectations and where did this go wrong. It is almost as if the government, whether the s. E. C. Or the department of justice, were sending ambiguous messages with the hope of keep cooperating, keep cooperating, and this is going to, you know, come out, not necessarily okay, but there is an expectation among the lawyers that you usually know where this case is going to go. And to your point, this fell apart, it is not clear why and probably was because the department of justice said, okay, we expect the guilty plea and the answer was, number one, to what . Why should there really be corporate criminal liability when you have charged the individuals and we have Compliance Systems in place, and, yes, you do get corporations indicted, but that really is the rarity and the place i would look. Were trying to stay focused on s. E. Sac capital and steve cohen, you look at the practices act area, where there is always the effort to find that one Company Subsidiary that has limited business with the u. S. Government, so it doesnt disrupt the ability. No charge actually against bae or against semens, it cant continue to do business with the United States government. Here you have a company that is going to become statutorily disqualified from being a participant in the u. S. Capital markets. This is a big deal. Thats why theyre in this for the full fight. Jacob, thank you for joining us this morning. Youre welcome. All right. We got to go. We have all right. To break. We got our own steve cohen who had problems in washington, you know that, right . No. A different one, you mean. Congressman from memphis. Yeah, yeah. Pretty common name. Coming up, were you confused . There is only one carlos danger. Yeah. I put beckys name in the generator. Benito covert. Thats good music for carlos. A year after he resigned, this man has trouble not sending pictures of his pecker to people, a year after. Maybe we have to acknowledge, if he becomes mayor, hes going to do this stuff. That was the stunning thing, this was a year after. Can we accept that . He can be a great mayor. Once in a while he sends a picture of his pecker to people. I dont think that means you cant be a great may, does it . We have to accept he has a problem and that problem is not going anywhere. Shares of apple getting a boost. Well get an analysts take when we return. And maybe talk more about carlos. Welcome back, everybody. We have been watching the u. S. Equity futures. And at this hour, before we get a slew of earnings that are expected today, you can see now the dow futures are up by 27 points. The s p futures are up by just over 4. You did have the dow closing at yet another new high yesterday. The s p was down, but down by just about 3 points and only the third time this month that it has actually dropped. Well continue to see what happens, but we have a lot of earnings that are hitting today, including well point, which was out with the quarterly profits just moments ago. The Health Insurance provider provided reported quarterly profit of 2. 60 a share. When you strip out certain items that was well above the estimates of 2. 11. Well point also raising its full year earnings forecast. Also, a fire has broken out on a blownout gulf gas well that was evacuated yesterday. That blowout happened after about it happened on a hercules platform off the coast of louisiana. The shares of the owner hercules traded lower yesterday. You can see right now, it is down by about 2. 4 in the premarket at 7. 69 a share. And Just Announced takeover deal, maiden form being bought by haines brands. A premium over yesterdays closing price. The total value of the deal is 575 million. Right now, to the National Weather forecast, for that we go to the Weather Channels alex wallace. Alex, good