Afternoon. Some economists are cautioning investors to remember that this fed meeting were going to hear about took place before june jobs numbers were out. Meantime, the start of earnings season is always a driving force for the market, as well. Scott has the details on some of the first reports. Alcoa beating the street on the top and bottom line. The company says it saw strong results in its engineered products business. Meantime, its looking to cut costs. Shares are up nearly 40 so far this year and out after the dow last night, results from the Container Stores. The company posting a better than expected loss and lowered its full year guidance. The ceo pointing out what he calls, quote, a retail funk saying the Container Store and its fellow retailers are experiencing slight traffic declines in what he describes as a surprising tepid retail environment. Shares down sharply in extended trading. A mixed story for bob echts. The food earnings beat expectations, but revenues fell a bit short. The company cut full year guidance. Bob evans is defending itself against activist investor sandell Asset Management which is pushing the company to split up, and buy back stock. Citigroup reportedly nearing a 7 billion settlement to resolve a government mortgage probe. That announcement could come as early as next week. Officials have been probing whether the bank defrauded investors on Mortgage Securities in the run up to financial crisis. Joe . Thank you, scott. Youre welcome. You are welcome. What the hell is the Container Store and why do i care . What do they sell, containers . Dont tell me youve never been in a Container Store. A retailer that could only work in america because we have so much stuff. Thats a microcap, basically. What do they do . You cover everything. Theres nothing too small or too uninteresting i dont want to confusing by the name Container Store, but they do sell containers. I can understand selling cup cakes and crumbs, but we love the Container Store. Is it like a Tupperware Party . Pink boxes for all your stuff, orange let me get this straight, we do the former dow component alcoa, which some people think is a proxy for the global economy, although its not. It has more to do with Aluminum Prices pb we go from that to the Container Store and you think that okay. Whatever. I dont you know what . This is all well, i mean, a day after this is below my pay grade. When you have the walmart ceo cautious about what is happening in the retail environment, then you have the Container Store talking about yeah, lets see, youve got a can happen company that does 100 billion in sales in a quarter and then you have a company thats worth 1 billion total market cap. Do you think thats comparable . So we shouldnt even where do you draw the line . 100 million . Well, you dont think the ceo has any vision on what is taking place in the market. I dont know. How do you extrapolate whats going on in the container selling business to is it i mean, maybe people store things in a recession and they need more containers. Maybe its counterproductive. Maybe its yet another example following walmart of a ceo who sees some trouble in the retail sector. I dont know. Alcoa goes from 7 to 17 or 15, i would say and we get the jolt number yesterday, im not looking for weakness here right now, are you . I think this actually is is not a time when id say things arent going better. They are going better, but i i dont know. Well, the people will factor in addition to the geopolitical news in israel, they can factor in that Container Store story. The israeli army we did that store just for you. Thanks. Do you think its on the front page of the times . Definitely not in the ten points here, i dont think, in the wall street journal. Lets see if we can find it. The Container Store where they sell basically its a Tupperware Party. Is that what were talking about . They have hangers, closet organizers. Let me try and find it. Do i look under the or container . Lets see. Container oh, boy. Scott, try to find it if its not in the journal, i dont know. Can you at least try and find it if its in here . Is it in here . It happened too late . It was a good buy. Consumer funk. The range on it is 25 to 47 . I dont know. When did they how long has it been around . The Container Store . More than ten years. Im embarrassed that you even know what it is. Anyway, in geopolitical news, the israeli army pounding the we buy containers, but what are you storing . Are you pickling things . I like to be aware of all i know you do on weekends at times. The army pounding when did this suddenly yesterday afternoon. Yeah, i know, but when did the whole suddenly along with Everything Else in the region . I know. The gaza strip in the region. This is i guess one of those things that theyve had to deal with. It seeps ms to ebb and flow. You can never assume that a rocket is not coming, i guess, and thats a tough way to live. Eamon joins us now and noer theyre talking about possible ground action, aman. Yeah, good morning, guys. Thats correct. There is this growing concern among israeli officials that perhaps an air assault will not be enough to stop the rockets. Thats not just based on what is happening this time around. Keep in mind, israel has fought about three different wars with militants in gaza over the course of the last six or seven years. So they know from experience that palestinians have been able to move rockets away from the front lines to keep them concealed and ultimately regroup and over the years keep them supplied. Some of these roekts, as we saw yesterday, are now reaching tel aviv and jerusalem and beyond and thats going to away major cause of concern for the israeli system. They have a Missile Defense system to intercept some of these rockets. They have been using them. Throughout the course of the day yesterday, we heard sirens in two of israelis largest cities. That is an issue in trying to suppress the rocket fire and for emergency medical services, they have canceled summer programs in the south of the country and have put hospitals on high alert. But its a very different story inside gaza. Gaza doesnt have the Early Warning system, they dont have the bomb shelters. And years after being under siege, their medical infrastructure has been decimated. They simply dont have the ability to cope with the casualties as a result of the Israeli Military. This is not a war between two equal sides, the Israeli Military one of the most advanced, sophisticated militaries in the world fighting against a largely civilian population in gaza and the Palestinian Militants with their rocket capabilities. But it giveses you a sense of how quickly the issue can escalate. Israel has called up 40,000 soldiers. There is a push to invade gaza using a ground force to try and suppress that rocket fire and that is a major concern on both sides, that neither side is prepared to back down at this point. Guys, back to you. Thank you so much, ayman. Despite the rising unrest there, check out the markets this morning. The futures suggested a bit of a slight recovery from two days of selloff. The dow would have been higher by 24 points, the s p 500 by nearly 4 and the nasdaq a little more than 10. Show you whats going on with the price of oil, as well. Wti, 103. 42 per barrel and brent is at 108, almost 109. And the tenyear yield ahead of the fed minutes later on today, 2. 56 . The dollar sorry, im sipping my coffee. Right in the middle of doing the board . Right in the middle of doing the board. Im tired. What kind of container do you have for the coffee . Youre using a paper cup. And flat against the you know, to me did i mention, by the way, like nine minutes into the program how fantastic it is to be with you again . Nice to have you here. Did anyone notice the overall market yesterday . Seemed like kind of a story. Not Container Store level. It looked like it might actually start to decline . Decline a little. After what happened yesterday. The New York Times and the front page asset bubble story. And then i thought it was interesting that the day after the New York Times said that, the Washington Post was it the Washington Post or was it i havent seen the post this morning. No. It was the financial times, that the buoyant market is actually putting short sellers on the back its still contrarian. Well, thats the opposite of what we saw yesterday, isnt it . Yeah, but this speaks to the whole contrarian idea short sellers have put on the back foot. That means now would be the best time to be a short seller, right . That would mean that the New York Times was right yesterday. Weve got two major institutions giving opposing contrarian one of them is going to be wrong. Yeah. The New York Times is a little confusing because they said both possible bubble or just buoyantsy, right . They wouldnt declare you know were going to go over the chairs and continue this. Yes. Thats all were going to talk about did these guys call you and ask you, okay to be totally honest with you, i dont get excited about it. Alcoa is 17, but alcoa is not a dow component any more. They do lead it does lead off earnings season. Because it was aa and it was like acme or something, the first thing you see. If youre looking for aluminum in the yellow pages, youll find alcoa. But, you know, i would even argue that real earnings season is probably this friday or when the bank does that first bank day is when we get it. We always mention alcoa because it means its coming. And such a Big Industrial company that speaks to so many. And its not in the but it is important, but its more specific even than you cant really call it an economic proxy, necessarily, because it has so much to do with aluminum and box size and all the different aluminum. Its almost a commodity where it speaks to its own, so its hard to extrapolate. But nothing compares to the Container Store. Were going to go to jack lew. Selling mason jars. Hes going to be with Steve Liesman and john harwood . And . Carl icahn . And . Jim cramer. And . Miller. There you go. So you did that for me . I did. Now, thats good. You see . That is significant. We have this sympatic arm. Were going to do chairs where you have to have the camaraderie and love with fellow people. With andrew gone, i hope you can step into that position. No pressure. Yeah. Where we have that type of love and mutual admiration and Everything Else. Are you ready . I am. Treasury secretary jack lew will be the key note speech on july 16th. And you will be able to see it right here on squawk. But today, he is in china. Lets find out more about his trip from eunice yoon in beijing. Eunice. Hey, guys. Secretary lew doesnt have those people that you mentioned here in beijing. Instead, he has the company of secretary john kerry, who is here in beijing for the strategic and economic die rog, which is a major annual summit between the u. S. And china where senior officials get together and really try to steer this very complicated and important relationship forward. Now, these talk res coming at a time when the relationship is very tense. So for a couple of different issues. One is Cyber Security. The u. S. Has accused china of cyber theft and of issues in the south china sea. China has been more assertive there and thats been angering and upsetting a lot of its neighbors who happen to be u. S. Allies. Now, today on the first day of these talks, the focus has been on cooperation. Now, both sides have been playing that up. The chinese president xi jinping has been saying that a confrontation with the United States would be, quote, a disaster. Also secretary kerry has said that theyre hoping to find Common Ground. Now, one area where they are hoping to find Common Ground is on economic issues, more specifically a bilateral investment treaty. Both sides have been talking about the importance of this treaty and that they want greater access to invest in each other. Another area is on a global trade pact for i. T. , which would potentially bring down barriers and terrorists for high tech goods. Now, in terms of some of the other issues, secretary lew is here pushing for Market Access issues and for more flexibility in the yuan. But overall, no one is expecting major breakthroughs on those issues, although they are hoping to see both sides re pair overall relationship between the u. S. And china before president obama makes his way here to beijing in november when he is expected to sit down and have talks with the president of china xi jinping. Guys. Eunice, thank you so much. Eunice yoon for us. Remember, secretary lew will be the key note speaker next wednesday, july 16th. You know who else . Honestly, this is the most excited pooifb about it, because im going to participate for once. Governor christie delivering the key note. Thats huge. That is huge. He is on and he is man, hes very talented and whenever you think of him in terms of just interacting. He does like to talk. Once he gets going more than carl icahn . Can it you one thing about containers . Yeah, sure. Container stores or containers in general . Many of them, many of the containers themselves use aluminum. One of our viewers figured that out. We do alcoa to give you the aluminum situation. And then i see. You see, that i didnt now i sort of kind of get it because a lot of aluminum goes into the container. A lot of them are cardboard. These are big box stores. They have great big youve never seen a Container Store . And all they have are containers that they sell . Yes. Thats why things like crumbs exist. You see, i dont know someone really thought this was a good idea . Yes. Its so american. We have so much stuff we have to put everywhere and organize. Absolutely. Its a very american concept. Do they sell boxes . Yes. They sell boxes in every color, every pattern. So it could be this small . Yes. You can keep your fleas all the way to your or lies all the way to where you keep huge amounts of stuff you can find all the golf junk that you probably have at home. We have stored a lot of stuff reasonly. Its possible someone in my direct family has gone to the Container Store. Do you burp the containers . Some of them can be burped, yes. Some are waterproof. I prefer tuepper ware partie to anyway, lets go to a break. Coming up, the fallout from brazils horrendous loss of germany. Fans may not get over it anytime soon, but the brazilian government is worried about protests and almost about reelection following a huge defeat. South americas biggest economy be accepted by a soccer fan . And a typhoon is heading into japan as we speak. An update on that, next. Financial noise financial noise in india we have 400 Million People who dont have electricity and i just figured that its time i do something about it. What were doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. I think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when its needed by the consumer. A smarter Energy System is made with the ibm cloud. A typhoon is heading to japans southern most island today with torrential downpours. The typhoon has lost some intensity, but it remains strong and tokyo could feel the effects by friday. In other international news, were watching the Ripple Effect of the world cup this morning. Brazils brutal, brutal loss to germany. Questions about whether or not it reignites anger among brazilians. Protests by the millions last summer and whether they are once again protesting against president bill marusef. The country is on high alert to the new antigovernment protests the. Joaning us now, jeff from Market Strategy at ubs. Jeff, good to see you. Good morning. The journal has an editorial on it. Yeah, i know. I read that editorial. And the style of the german team, they have to start being careful because they almost actually, if you watch military. They are. They move across and the brazilians play lyrics. The germans say you cant have everything resting on one player. What do you think, jeff . Leading up to the world cup, theres been a consensus that the president of brazil needed a successful world cup, it needed to go off with any major problems and brazil needed to perform on the ground because she faces reelection in october and soccer is so important to brazil. Is there some kind of connection between what happened yesterday and the possibility of the reelection . There is a possible connection. I mean, i think you have the analysis dead right. What brazil needed was the world cup to golf without a major disruption which happened, anyway, and what was needed was brazil to win the world cup. Obviously, that is not going to happen. This was a humiliating run yesterday. The concern people will have is weather this will set the protests off again and whether it will reduce the possibly that she is reelected in october. Football in brazil soccer, i guess, is that important . It could affect the outcome of the election. Would that be good for brazilian stocks . Victory for brazil in the world cup would have been negative for the market because it would increase the chances that he will win the election. Early defeat for brazil or in this case a humiliating defeat would be good for the market because it would reduce the chances of his