Security advisers sandy berger. Thats going to happen at 7 30 a. M. Did they put any more . Thats why you dont do it the first time. There is an ongoing debate about how you deal with terrorists. I hes referring to what happened earlier this year. Sheerl, i know. Work with me. I am. He d came back, still hasnt met with his parents. We dont deal with her any more. I wanted you to make it a complete sentence. Were going to continue this conversation and i imagine this debate. I know you werent thinking any more, but what do you mean not thinking any more . You should have been. Youre a news man now. In some instances, we have traded or done things we have negotiated with terrorists. For me, theres at least one side or maybe a certain thought that maybe that wasnt handled very well. Im curious in this situation whether the government knew about foleys whereabouts having been kidnapped two years ago and havent heard from him since. Any journalist in that part of the world now might as well be signed up for the you have to be brave. Yeah. We also think about what we do every day. It makes us feel very do you ever think that . No. Thats the point im making. Right. Thats the point im making. Im a new jersey man. All right. I worry about going into the city for you, the only city in the country that we now know that you classify as well, for you that is dangerous. Corporate news. There is a lot going on in the corporate world today. Hertz is withdrawing its full year financial forecast. The rental car Company Warns it now expects results to be what it calls, quote, well below its previous guidance. The Company Blames businesses challenges and costs related to a review of the past three years results. Ive left herds with a limited vehicle availability. Shares being punished on the news they were down. Its competitor was down as a result, but andrew, if you remember, the company had to go back and restate some of this Financial Reports from prior years. Then they were looking into the accounting for other years. So it seems there are a few more issues than just the macro environment for car sales and investors have been shorting this stock for quite some time, anticipating that bad news out of the company. Right. Joe is looking at lowes, right now . Remember, we really wanted to see this. Because we were wondering home depot. Did better than anyone else. We were wondering, is lowes going to do as well . These numbers are going to 2 cents ahead of ennings on expectations. Full year is seen at 2. 63. Thats okay. It was at 2. 61 before. But they are talking about samestore sales. Sales up 3. 5 . So this is not a in home depots case everything was positive. Exactly. Home improvements continuing to progress in tandem with the strengthening economy. I guess a word that fell off the end of my screen here. Thats probably what were talking about. Sees total sales off for the year. That is in line. When i look at their earnings, does it Say Something about them . Meaning the operations of these companies . But lowes sometimes its more friendly because you go on to home depot and its just big. Yep. Stocks everywhere, high up where you have to get a crane that gets down. Home depot is different. Home depot is different. Theres a lot of pricing pressure, too. I think the companies have said loud and clear that the house Market Recovery was strongest last year. And while were still seeing some recommend ever remnants in that, it will continue to taper off. It was so good yesterday. It was. There were some saying expectations might have been too low for home depot. That has been guiding too low and maybe lowes is on the other end of that scale. Things have been all systems go since they came on. We bring up the picture of him because i mentioned him and then i dont know. Not that. No. We need the picture with the apron because we got our own. Yes. Friends at lows, theyre just blue. But theyre not orange like this. And they dont look like frank. Have you seen frank . Hey, come on in. He looks very friendly, and he is. Hes a nice man. Were going to talk a little bit more about the home retailers in a few minutes. We also want to talk about shares of am which in the last day theyve been getting some attention. The tech giant trading above 100 a share yesterday for the First Time Since its stock split 7 1 earlier this year. Among the catalyst, excitement about the next iphone. Not the only tech name getting some love from investors. On its strongest fiveday winning streak in four months, closing degreed at its highest level since march 2000. 45. 27. Its been near a 14 1 2 year high. All of that value and more. Can you explain do me why all of a sudden everybody is so excited even though they havent come out out with a new product yet . I cant understand the math. This has always been a stock where buy the rumor and sell the news has been applicable. Not only are you going to get the iphone six, but its coming in tandem with the rollout of health kit and some of these new Software Platforms for developers that apple is now basically building an ecosystem that will be interior to some of its competitors that might be lagging on this software side. So i think that they expect this new device to be fully compliant with some of these news technologies and they really want to see what it looks like. Thank you, miss squall alley. Well, you know, im just telling you what they say in that apple. Former microsoft ceo is looking to spend more time on his pet projects. Ballr has become the biggest individual shareholders in microsoft with a 4 stake. Thats 15 billion. It was always said that once nadella took the reigns after that transition was complete that perhaps it would make the most sense for ballmer to get out of his hair. But then again, hes the largist individual shareholder, so well still be hearing from him, i think. My question may be different. Now that hes off the board, does this mean hes a net seller of microsoft stock . In likelihood. So were going to see a sell down of significant stakes. Is that whats really going on here . If youre on the board, youre going to have to disclose every time you want to sell. Maybe hell put in place some sort of you know, prescribed selling plan where you sell a number of shares every quarter. How long does that last . Six months, eight months, i dont think it can go much longer than that. So well see. In other corporate news, citigroup is reportedly claiming to sell its japanese Retail Banking ventures. Another stock to watch this morning, now i have 3. I have a hamster, a beta fish, i have other the Company Announcing its going to explore a potential sale. You go in thereabout, you cant believe the bill. The pets flyer retailers is great where you have, you know, z 400 million i also have no pets. From activist investors janet partner. But you go seriously, you dont ever get out of there for less than 30. If you buy some fish food and a couple of filters. Then if its dog related, then youre really i had a turtle as a child. I love when we do this. The last time we went into it, you got to Michael Jackson changed your life and you used to wear one glove. On the air. Im sorry i missed that day. You didnt read about it . Lets see whats on todays agen agenda. Lets tell you whats happening. While you were asking us that, Quarterly Results coming up for target and lowes. Staples, American Eagle outfitters, all of that is happening before the bell. Coming up this afternoon, well hear from hewlett packard. On the economic front, well get minutes from the latest fomc meeting. The notes coming, of course, before the annual fed gathering in jackson hole and that gets started all tomorrow. Sglt meantime. Quick check on the markets. Right now, looking at the nasdaq. In the world of energy and oil, right there, wti crude, the number to beat 95. 57. Well tell you about the tenyear. I dont you know, the yields at 2. 4 or 0. 5 , is that what is is that whats really impacted the markets over the past week . Im just telling you, if youre the fed and if youre a central bank around the world and you are staying where we are, the gop program to move up and thats what they wanted. That was the idea in the first place, right . To have fair wealth. I dont know whether it has or not. But what are you going to do . Under the mattress. I was going to say, thats one of the reasons why the u. S. Treasury market is benefiting. Because the comparative yield again is obviously about buying a u. S. Security. It loses and like a play where you can just the person in the play can turn, right . Michelle is chime in. Exactly. Well be here. Who is supposed to read this . You are. I am . You are, ser. Give us an Economic Pulse check. Michelle gerard and Michael Hanson are joining us now. Youre not that handsome, are you . No. , okay. There was a different one. One of the reasons people look at whats fueling the command for treasure yields. Too buy a ten ever yield treasury number and people are doing that. Relative to many other yields aclose the loss so thats one thing to coop in mine for termy. I think even though the u. S. Might look good on a relative basis, that is still boosting you a little bit when you think about growth globally. Certainly. But i think a lot of that in the end benefits the u. S. Treasury market and reip forces the idea that weve got a slow global environment, weve got Central Banks likely to keep rates low for an extended period of time. The u. S. Maybe after the u. S. May be moving eventually in the other direction. Well continue to see easing Monetary Policy for an extented period of time. Wait a second. I think in the bond market right now is a bit scary. Just how strong bull growth is going to be. Theyve fumbling along. Practice the deflationary environment, sounds like it might move. 0. 4 is far enough, just below 2 that its not going to get the what you mean or less. Theyre scared about how weak Economic Growth is. Generally speaking, he hear a lot about stagnation and this has impacted the bond market globally. It looks like the fed is not going to be exiting very soon. Hasnt the bond market always been like that . The bond market usually tends to get the general story right. Now with this new fed policy of Forward Guidance let alone qe, the policies may be more one of the things were seeing reflected is this continued guidance with the fete that they are going to be different when it comes to raising rates and the paints this has to be wrong. But every time you do, you get punished. And i think to some extent, there are people who are just going to have to wait and see when that time comes. Late 16, early 17 . Someone said that. Nonpossible, right . You worked people relatively terrible about in here 37 still stopping in a different wlas. The committee as a whole is drifting. But we know with all due respect with plosser and fisher, you have obviously very strongly held views. Were at a different place than the rest of the committee is. Obviously, you did get a hawkis dissent. Youve had a couple of fed officials suggesting that the fed should be moving more quickly to the exit. And the minutes always get a platform. You air their grievances because everyone talks, not just the guides who vote. But i think that the underlying message is the one that came up in the july statement which is now theyve reoriented themselves. And i think that new lk is going to be with us for a while. I think to this fade were to get to get a more aggressive pack of rate hikes that has been decided. So when you get some of these signs that theyre more competent, that theyre moving towards the object i haves, which might suggest at some point to raze rates, youre going to have the counter of weve seen a lot of justification for moving slowly when the rate hikes do come and keeping policy more accommoda accommodating fop a long period of time. So its going to be kind of a balance of information that we can see. Is you guarantee we would have no recession in the next five years . Oh, no. There are people that come in here that are sure of that. They think they have it all figured out. And none of those things are anywhere near the hut. The reason i ask, we have no power. This is not a bad economy. Were throwing everything weve got at it. And what worries me, the fundamentals are pretty down. There isnt necessarily a risk i would say about a huge inventory risk. It will ultimately create some sort of asset bubble. That we havent identified, even though were trying to thirg about it. When that replaces, it triggers an event that end d up kissing the scales. It would be something along those lines that i would say i cant do it and too big to fail, too. Theres only so many asset classes, arent there . What are we missing . It always ends up getting us. It wasnt necessarily the subprime market. It was the interconnectedness of the Financial Markets and its very difficult to discuss. I dont think theres a high probability. How long before youre 99 sure you dont have it . Two years . Who knows. Its not on the horizon. We have to get out of this recession. The fed is not going to hike rates. Is it when you look at whats happening, the people that plan for the future and with companies, the whole wash thing, its a Balance Sheet recovery. Its all based on assets. Either households or a corporation. One of the benefits of low Interest Rate environments has been a quick deleveraging with relative pain. We dont know where it will be. So you splat. Thats longer term. Sitting here commenting and laughing . You have stuff to do. They have to go to work. Thanks, guys. When we come back, why the nfl is pushing pay to play. Youre not going to believe this story. At the europe bowl laugh time show, we think everyone is taking notice. Plus, peta buying shares of sea world. You heard that right. The details on what it all means when squawk box returns. Activist investor this week, Animal Rights group peta said yesterday its buying shares of sea world. Peta said the has scooped up more shares in the company in order to retain the minimum investment it needs to propose shareholder resolutions and submit formal shareholder questions. Any shareholders must hold 2dz,000 of stock in the company in order to submit one of those shareholder proposals. Peta is not a big shareholder, theres about 135 shares in the company. The organization needed to buy more shares to meet the minimum because shares of sea world have tanked of late. Now, sea world and peta have been going at it for years over the treatment of its orca whales. Sea world made this statement, peta already holds sea world shares. Despite their claim to the contrary, sea world animals are well cared for and their health and well being is a responsibility we take extremely seriously. We are proud of our world class standards of care. This isnt the first time pita has tried to influence that company. It holds shares in dupont, pfizer, amgen. Something unlike many people have ever seen. Well, they did have a little a big issue with the documentary that happened. Blackstone, you werent shocked . No, not really. Its one thing for a company to come out and say this has had no effect on it. In fact, it has actually increased attendance and then to completely do a 180 at the next quarter. How about people on twitser, joe . I think thats a little bit different. I dont know. When youre a private company, you can. You can choose who gets your shares and you can choose who your employees sell their shares to. But anyone can buy the shares. So we will see how that battle turns out. Meanwhile, the nfl has a new idea to generate revenue. The wall street journal reports the league is asking artists who want to play next years halftime show to pay to play. Rihanna, katy perry and cold play are being looked at. But the pay to pay reception is not going over well, as you can imagine. Normally you get paid to play. Apparently what happened over the past two or three years is the nfl has watched. These performers have done the halftime show and immediately that night or the next day clipped their concerts sales. Tickets go on sale immediately and theyve seen them, beyonce had this huge record breaking concert tour. So they now think to themselves, we should get a piece of this. That doesnt i dont understand how i just find the whole thing shocking. Do you think Roger Goodell was thinking . I just heard the cold play and i didnt realize we were doing a story on it. I just thought you were starting to get involved with the musical selections. I dont macrame my jean shorts during the commercial break. Should i be thankful . Its an old carl book, actually. Not exactly. From the movie. Who has the most say over commercial break music . Me. You . Yep. How do you choose . I dont really think about it. Stuff i hear. It just depends on what strikes me. All right. Who chooses the framed poster of asia that you still have, the onehit wonder . Remember . That was another one. Who picks it on squawk alley . Carl is a music buff, so i know. There is a lot of stuff that ive never even heard. Carl noens alternatives and hes a big fan of morris is ey. So am i. A genius. But its crazy. I had mo orrisey is a guy a little bit more country, maybe, being from georgia. Thats more up my alley, but current country. Current country. Like lee brice or something, right . Who . Ed aldridge, dixie chicks, all that. Dixie chicks . Politically in line with them. Snapchat meanwhile is becoming a popular app for people who dont want their messages or photos to hang around. Now theyre talking about advertisers or companies talking about discovery. It would show content or ads to users. The launch is in Development Mode right now. Discovery is set to launch in november. Oftentimes, they look to see what people say about it or whether users would respond favorably for it. Im not sure that i would want news to disappear after reading it. Maybe its for people who have limited space or storage on their phones so you dont have to save and download. I would think if youre an advertiser, you would not want your advertisement to disappear. How often do you think of something, you see the ad and then you want to get find it and you forget how to get there . Knows its the same thing. You can skip the ad. Then poof, its gone. Ive never done anything based on an ad. Thats why i wonder how the whole Business Model works. Do you see ads and go you know, just while were talking abou