Other big s p winners, general growth, regeneron pharma, wyn ddz ham and under armour. Cvs up about 900 . Priceline, chipotle and netflix. Well talk about where that goes from here. First, before we do that, lets get some other corporate headlines. This one, i dont know what you think of this one, joe, snapchat now valued at near 10 billion. A lot company, 10 billion. The number based on a recent investment in the messaging start up. The wall street journal reporting that vc cliner perkins committed up to 20 million. Among the other startups now boasting valuations of 10 billion or more. B b and uber. And payment provider square theyre also getting a valuation boost. On their way to 6 billion. That Company Reportedly in the process of raising about 200 million in cash. Square, of course, run by twitter cofounder jack dorsey. Square was valued at 5 billion earlier this year and you might recall that starbucks has an investment in that company. And then we got a little bit of media tech news this morning because at t is merging its wireless and business divisions into a single unit. Ralph is going to be running it. He had been ceo of at ts wireless segment. At t has been facing increased competition from Cable Companies trying to lure customers away from Traditional Telecom carriers. With all of that, ill send it over to you, michelle. As u. S. Stocks quietly rally, europe focusing on record u. S. Highs. Take a look, germany and france are lower this morning. But the ftse and the mib are higher. Well, theyve had a pretty good week. Ongoing tensions in ukraine and speculation about more easing from the ecb after draghis future of the weekend moving stocks around and pushing them higher in europe over the last couple of days. Asia, overnight, the hang seng was lower by 155 points and twothirds in shanghai was essentially flat. Geopolitical events remain on our radar screen and gaza, israel militant groups agreeing to halt all fighting in the region. As for ukraine, theres no break through in facetoface talks between putin and poroshenko. The two sides have agreed there was a need to deescalate the conflict, but putin is for a trade with ukraine if they continue to be involved with the european union. New numbers in the polls show marusa could lood lose her bid in october. When it comes to what investors wanted, that means the candidate they were hoping would win is actually in third place now and has lost it looks like his shot at getting it. Lets check on the markets this morning. We did hit 2000 yesterday on the s p. Lets see if that causes a retrench. No, continuing to melt up. With a lot of officials saying, what is happening . Isnt it high . And the people that ask and the people that talk about it are people that typically with not a lot of experience in the stock market. This is not totally different than in the past. No. What about jim grant . He says there are so many yeah. Hes more of an economist and a market i wouldnt him in terms of market timing any more than Nuriel Roubini or anything like that. I defer to you on things like snapchat. I want to ask because i do think that theres a lot of potential with snapchat. Initially i thought it was just the kids that didnt want their parents to see. But now im thinking irs. All of the correspondence between lois lernor and all of her agents she must have done it on snapchat. No, theyre going to continue to target, you know, different parts of the population that they dont like politically, i think this then you wont need this to erase the iphone and the blackberry. You wont need to say, oh, my hard drive . Thats burned through. I dont even know how it happened. But its wall street. Theres a lot of i thought there was some i knew you had taken shots from the Public Sector to those nasty guys, we had to go right to the private sector. How about the controversy about the fact that the photos are still around. There is a concern or that they view that they can still be saved somewhere. That some of this stuff can still be saved. And by the way, even if you dont believe its been saved on a hard drive somebody can freeze it on their own. You better hope theres nothing left. Ralph is a friend of the show. Hes been on a bunch of times. Cuban american. Here is a picture of him. He went right from magnum p. I. , and he knew so much about you know, he was on the show for a while, wore a hawaiian shirt. Do you remember him . I did. Is that higgins . Who knows if he looks like that. Whenever i see him, i call him higgins and he laughs. What . He has more of a tom sellic look. Thats insightful, andrew. No, it looksic just like john hillerman. The actor that played anyway, oil, 3. 20 in new jersey. Were at 94. 11. Look at the dollar. Im waiting for 2000 on the s p oh, okay. Well look at the dollar. 2. 37 on the tenyear, still above ten years in spain. And then for the euro, im looking for 1. 20 handle at some point. 1. 31 right now, but not to say that if we do get a little more hype in this i saw an interesting piece that i finally read when i went home, if they try to drain reserves now, theyre going to have troubles. Did you see that . No, i did not. Its complicated, but its not just not a slam dunk. Youre talking about u. S. Banks . The fed funds because every night a bank has to get down to a certain level of reserves or get up to a certain level of reserves. Theres so many reserves now, that they can just ignore it. They would actually have to jaw bone all the banks, which is what she was talking about. But this exit is going to be interesting. I dont know. The more that i think about it, there has to be some consequences to staying at zero percent. Its long because theyve just fed it as zero permanently, then. Its all about when is the problem. I know, but it just here is is what worries me. That if people talk about because world stock marketes and assets have gone up. You saw those numbers, 25 return. What if a lot of that is not justified and once its done, it comes down really hard . What if they inflated a bubble . When it first causes a lot of you heard Marty Feldman the other morning, the reason people have gone into these asset sess theyre desperate for yield and they ignore risks and take auto risks they shouldnt. Lets look at gold. Did you buy any gold yet . Im worried about you in case theres a solar flare and you and those 9 Million People are you always keep enough gold on hand to bribe the border guard. And that would be the guy at the tw bridge in this case. We dont have any. No gold . I dont think we have gold in the house. You are pretending on the good will of your fellow man. You think gold is the best in a crisis . No, im not going to tell you what i think is the best. It would be politically incorrect. Theyre very difficult to get in new york city. They are difficult to get in new york city. But you might have one. Maybe not there. I have a dralgdz. Is that the thing you spin . That is very sweet. We dont want to talk about it too much. Spindreidel that sweet. We dont want to talk about it too much. That is very swe. We dont want to talk about it too much. It was more of a psychological milestone than anything else, although i dont think s p milestones matter as much because then usa today gets involved and everybody else. It has not been on the front page of any of the major news stories. Lets talk about the markets. Joining us now, abby zoolittle. Am i right about that, abigail, that i didnt i mine, i saw it on some News Services mentioned it last night. Then i was watching it and they said the market closed at a new high. They didnt even mention that the s p was above 2000. Its not like the dow, really. Yeah, i think that youre probably right about that, joe. But what you think youre definitely right about is its a psychological milestone. Technically, it means very little. I think that youre absolutely right, there are going to be consequences to this zero rate policy and the bubble that is blooming here. So as high as the stock markets go, i become bearish. Its important to break it down over the near to medium term and the longterm. When we look at this year and what has everybody so excited, were really looking at a sideways range within a trading range. Its easiest to identify on the russell 2000. What makes it important, this range has started to reverse the qe3 uptrend. This happened around a qe1 and qe2 uptrend. This typically signals a correction is coming. When we push that into the medium term and take a look at the dax, you see thats preci precisely what did happen in 201 1 when we see that sideways trend. Same sideways trend appears to be reversing that uptrend and i think a correction is likely. But return to go your point about the big consequences, that would away severe selloff. When we take a look at the longterm chart of a dow and, really, the one thats going to garner a lot of widespread media attention, you see that its trading in a multi year trading range, hitting up on resistance, selling pressure where investors have typically taken profits that have sold in the past. What makes this so important, you can see that the entire bull market trend over the last five years has started to reverse. Its hard to know when it might produce a reaction back down, but again, when you see that kind of gyration around the trend, typically it suggests that youre going to see some severe volatility. And i think, you know, as scary as it is, i think that we could see possibly a 50 or 60 correction, an equal and opposite reaction to all of these unusual policy moves. The first one, when youre looking at just august, an august trading range in the russell, how much do we think anything when things occur in august . I mean, the other day we hit a new high and it was on the lowest volume of the year. But i dont know what conclusion toes draw when none of the real players are around. So i dont know if you can you can just throw out august. What was that other chart with the dow where on the y axis, it had 850 and 1400. I dont know even know what that was. Was that 14,000 . You know, i actually am not able to see the chart that youre referring to right now, but yeah, that is the dow over the last 20 years or so. They got the wrong things here. I dont that must be the that must be the s p. Because it was at 1400 and 950. I didnt know what that meant because it had sorry. Anyway, maybe they labeled it wrong. So you say down we could have a 50 correction . I think that we could be looking at a very severe selloff. We saw it start in basically a bear market. Unfortunately, i think it could really come on a crash, similar to what happened in 2007. Its hard to know exactly what the catalyst would be, but i think thats the very nature of that kind of a selloff. They start slowly and happen very suddenly. I know you cant tell us the tipping point, but walk us through the timing of what a chart like that looks like. Well, relative to the near term, and the trading range in august, it really does people will probably hate to hear this, but it really doesnt mean that much. Were looking at a trading range that represents massive confusion on the part of investors. It actually doesnt matter. Its the reaction out of the range that matters. If it happens to break to the upside, this bull market is going to continue to go on its manic way. However, if we follow the path that occurred in 2011, were likely to see that pull back down. El rif to the timing around a massive correction, if we look at the part of the dow again, around 2000, you see it took months for this actual correction to take place. In 2007 and 2008, it happened relatively quickly. So each has its own nature. But its that gyration, that breach of the up trend that puts us on notice that we could be looking at some sort of a curious selloff. Well, you know, if you talk to mark faber or others, they would say, all right, so we got into 2007 and we had all this private debt and then we moved that of to the public side. Now the central bankers have been printing money to try to take care of that. If you were to say that we lived way beyond our means globally for too long and we have all this paper money that central bankers have put out there and for some reason if that were to become mark to market or valued at what it really is, then i can see how your whole scenario i think thats mark fabers the thesis that weve printed all this to try to pretend that we can print prosperity. And if you dont have the underlying fundamentals that back it up, sooper or later, its a day of reckoning. And that would do it. I dont need to look very far to figure out why it would happen. I absolutely agree with that, joe. And, you know, with mark fabers view, this is a reaction to a 30year borrowing cycle. This started in the beginning of 1980s. So all of these big up and down in that dow chart, its really longterm policy. Thats why its so difficult to time in a way. Can you say for me the rain in spain falls mainly has anyone ever asked you to do that before . No, i can honestly say nobody has youre not related to her at all . You dont even know her . I think she might look like her a little bit. She can play the role. It depends which one youre talking about. I want you to be right there, though, with the hat and everything. No . He has no idea what thats the original may fair lady, rain in spain. Oh, okay. I can honestly go ahead, abigail. I cant do it. No, i can honestly say that i frequently am called allies ya. I have been called the sound of music because Julie Andrews played, so ive pretty much heard it all. Cool. Absolutely. Thats exactly it. Okay. Thank you. Well see you later. Thank you. Such a great scene. With the rain where she finally gets through with the pronunciation. So charming. Not my fair lady. Ill go to the literature where i know i can identify. Movies, you just give me a blank look. Scarsdale fine literature. So you can give me a blank look on this one. Are you ready . Is it about technology . Its about technology. I dont even have to work on it. Go ahead. Another buzz about the apple product launch. The company is expected to introduce a larger version of the four inch iphone. Now the latest reports saying the company planned a bigger ipad for next year with a 12. 9 inch screen. That compares to 10 inches. Some people say that this could become the sort of competitor to a laptop. That by going to this side, it finally would become its got to have power, though. A replacement, if you will, for a laptop. Same as a samsung. How big are haas . Large. I dont know. People are trying to go bigger on their phone, but i thought smaller on on their laptop. What i find, the ipad cannot compete so much with the mac book air when it comes to computer processing. Is it the computer processing or the fact that it has a keyboard . No. No, no, speed and power. We will see what happens. By the way one is september 22nd for the phone and the other is now the 9th of september. If these phones become any more ubiquitous with kids and these devices, it just scares me what kind of world were going to be living in. Every kid i see, its like theres another one. Children of the dam where theyre all walking around, theyre running into each other, they dont seee each other and theyre looking at life occurring on their phone when theres life occurring all around them. Its going to be right heesh. They dont have to look down any more. You wonder if life is going to be not as much fun when were on a grid. A lot of these people are on a grid already. Everything that theyre doing is right here. Did you know this was going happen in the days of the pager . No. Youre sounding, you know, like old people complain about yeah, yeah. Dont do that. Old, yeah. You know who decried the invention of books because no one would memorize anything any more . Dont be like that. Did he, really . Yeah. One of them said i think there were three of them, werent there . There were three, yes. But one of them complained about the invention of the written form. We will continue to complain about the written form and the ipad. In addition, theres some stocks you may want to add into your portfolio as we head into the fall. And find out what happened to this is black hawk helicopterses. It looks like a blizzard in august. Squawk box returns in just a moment. Thank ythank you for defendiyour sacrifice. And thank you for your bravery. Thank you colonel. Thank you daddy. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance can be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Check out this video out of oklahoma. The National Guard base in tulsa is now cleaning up an after accidental foam spill nearly buried ten black hawk helicopters. The fire suppress system malfunctioned. The foam is nontom toxic and is much like dish washing soap. But they wont be able to determine if the choppers were damaged until the cleanup is complete. Summer is almost gone. I like to think of summer, though, i include september because i have to. Why . Because september is nice for a while. And even october. And the leaves you know, it is depressing. Because you dont have school involved . No, the season now you know, the fall and leaves and, anyway, morgan oh, snap. Who . You know what . Ill take that as a compliment. We are not related, but ill take it a compliment. Ive said that before, but its confusing. The m is the first name and brennan is the last name. Morgan freeman, morgan fa fairchild and i bet this never happened again. Margaret is not competing with us, anyway. Im allowed to say her name, right . Yes. Yes. Like a gejt anyway, good to see you again. Its good to see you, too. As stocks hit new highs, we ran a screen to see what names outperform when summer is over. So what ill call back from the beach stocks. We take a look at september performance across all of the major u. S. Indexes over the past five years. Here is what we found. Even with the 2011 market downside, the nasdaq 100 posted the biggest monthly gain on average, about 4 . And digging into the s p sector, consumer discretionary, Information Tech and industrials led the back with about a 3 gain on average for each of those. The biggest laggards, materials, utilities and financials which have fallen every year in september. Only 17 names are just 3 of the s p 500 have posted increases. Each of the five past septembers. Consumer discretionary stocks like amazon, l brands, Tractor Supply and in the health care, bristol myers, kerrigo and celgene. All of these have returned 4 or more on average in the tech stocks. Dont forget, september is historically the worst month for stocks. But Michael Orourke of jones trading, chief Market Strategist at jones trading, knows that that hasnt been the case post crisis and thats thanks largely to fed policy. Heading into the fall, hes ke