Attacks on u. S. Banks have been struck in a series of coordinated attack these mop details at the moment, unclear. But the attackers are believed to have stolen large quantities of data, including information on checking and savings accounts. Theyre looking into the possibility that Russian Hackers are behind those attacks. There were other reports that suggested they had gotten employee information, joe. One of the things i wonder more than anything else about this, beyond my own security, im a customer, by the way, of chats. I dont know what banks you frequent, but these are reports coming from sources that are close to this investigation, whether they be government sources or bank sources. The banks themselves have not publicly disclosed this. And the question i always wonder is we talked about this on the air before. When if you are a company are you supposed to disclose that there has been a hacking attack . Clearly this has happened at least over the past several weeks and we heard nothing from the banks. That distracted me when i was trying to read the bank story this morning. The bank story is on the right, theres the lead story. I guess thats life in gaza on the border there. Yeah, so its worth talking about, for sure, because of well, you have the russian issue. What do they do it for . Whats finally happening . Will you ever check your account and go, wow, i have no money . Will that ever thats what i worry about. You dont worry about that . No, not really. The more i read about it, i guess i should. But i figure someone would owe me, wouldnt they . I can talk to i wasnt going to say who i was, but im a Brian Moynihan and i see your heat. I know of him. Didnt you get a Christmas Card and all that . I did not get that. Well, ill tell you what, well talk about it more, but its a significant breach. Where is the beach . Aint nothing happening. All of these attacks, in the medium term, theres no impact. The user name and password you know, my worry is that each time, somehow i dont know if youre the same way. I have one or two or three passwords at the most. So if you figure out one or two or them, you can kind of own me pretty quickly. And so to the extent that theyre able to get pieces like that, and its unclear from these media reports about what they have. I have dozens. In fact, that little thing we use for Remote Access that changes every minute, my password ive got that hooked up to that. So i have to look at that to get into my so dont even attempt to try to do anything to my account. Thoses of passwords. Joekernen1 is not your password. No. Do you think they could find out my birthday . Yes, they could. So i should change that at this point, right . I didnt think anyone could ever no . Microsoft ceo nadella is reportedly planning a visit to china next month. The Chinese Government recently opened an antitrust investigation into microsoft focusing on the of microsofts webb browser and media player. They dont like fumbling. Microsoft is widely pirated in china. Former ceo Steve Ballmer said microsoft got more revenue in the netherlands than china because of the theft. In other tech news, ibm is launching a system that could quickly identify patterns in data that can im sorry, dave, im afraid i cant do that. Lead to breakthroughs in science and medical research. The service would be available, naturally, through the cloud. Private compieand trial outcomes published in different journals all at once. You can sort of colate that information and help speed up drug phase. Andy is verery resistant to the idea of the singulairty. But all i can tell you is that when machines start being able to teach machines and start being able to design they already are computer aided design, computer aided manufacturing has been going on for years. But when the total sum knowledge of machine knowledge is something where you need sciescientific notation to desc how much more than humans, all Human Knowledge that they know, things like this would become more and more common. The other thing thats here, and ive seen recent articles that machines might decide, a, that were not very good to work with, that we get in the way at times and we slow down progress. They might decide that they like it better. They might like us, they might think that were ben negative lent, but theyre going to be smarter than us and look at us and talk amongst themselves saying these humans are you need to feed them. You need to take them out to go to the bathroom. Its not a hundred years off. You can do you understand math . If you look at you can draw a Straight Line through all thats things and you can see each thing happening. And its the amount of time between these huge why would it take longer with the speed youre seeing . You can do it on this, look at the giga byte on a daily basis, just plot it out. Youll see by 2035, were going to be vastly different. Yesterday we talked about all the children, all of our children Walking Around in a line, looking at their smartphone. There was nothing like that 25 years ago, nothing. Let me tell you a little bit about how long did you used to stare at your pager . I never had a pager. No one did. You couldnt stare at it now. You probably run into people when you walk in new york city, dont you . Totally. Forget about texting and driving, texting and walking. Whats related, though, to some degree, apple once again failing in its attempt to get a Samsung Smartphone ban opinion earlier this year, apple won a 120 million jury verdict against its rival in three patents. A u. S. District judge yesterday rejected apples request to stop samsung from selling infringing features on its devices related to those. Do you see the word . What . Patents. I was trying to see if i if i put an apost fee in, what if it was like that . How would you say patents . Thats better. It will be a tool. Its hooked on phonics right here on squawk box. Samsung unveiling a smart watch that can make phone calls without a mobile phone nearby. Its hoping illustrate can off set slower earnings. Its called the gears. It has a bigger 2 inch curve display, offers wifi, connectivity, pedestrian navigation. Can you believe it . Perfect navigation. And a build in gps. Apple is expected to launch a similar watch. Lg electronics, also. The last one that we had here with great fanfare, you needed your phone right there. Next to you. Right. To do that. This one, apparently people said, well, what good is that . Then they said theyve been working on getting just a watch to do it. I dont get it. Is that the bottom oh, no, thats how big it is. Its a big, big thing. This is like the Jerry Seinfeld phone. Hes walking up and he looks ridiculous. Or gordon gecko walking along the beach. 80s style. Why wait . It wont take long. We were just talking about coming in quicker. Wait, dont buy that. Stocks say off breather, but not much of one. One day after the s ps historic finish, jim dunnigan of pic Wealth Management and john wilson. Principal of rev ly letter. Com and you, of course, probably remember him. Hes famous, former director of equity strategy and chief Technical Strategist at morgan keegan. Youve been coming on for 20 years probably, right, john . Its ban while. So i just sold your experience in all these matters. Does this stock market look different than anything youve seen before . It does if you go back in history. If you go back and look at what happened, you had a massive pendulum swing back. You know, there wasnt an outlier in there. It happened twice in the 19th century and it happened twice in the 20th century, 1920 and 1974. We both know what happened subsequent to those lows. Certainly in 1974, we went on to have a bull market. It didnt end until 2000. If you just kind of lay out those parameters, the high returns, were close to 16. The low returns over that tenyear period whether those things happened were around 12 1 2. The markets have pretty well traced out over the last five years. Little have maybe of where it should be. But thats easily cured by a correction of some sideways action. Theres no reason not to be bullish. As simple as when you basically get a whole generation of investors so pet phied of ever going to the stock market again, it takes that long to get them back in. Theres no question. We had two bear markets in the first decade of the century that were just hideous. And, you know, about the time somebody could take a deep breath, lucy pulled the football right out again and, you know, carly fell on his back. So it takes a while to get over that and its kind of like the baby duck syndrome. Its new every morning, you wake up and youre affected by what happened to you most recently. Yeah. And what happened most recently was, you know, gloom, doom and despair in the market in the first decade. Jim, sometimes it gets frustrating to not just be able to talk about corporate earnings and gdp and then just immediately know what the stock markets do. But a lot of times, its as simple as this. Its human nature and if you look at the attitude or the sentiment of people in the market right now, everybody that talks to me asks me, you know, when is this going down . This cant continue, its too high. It just sort of is a reflection of the experience that theyve had that june was just talking about. Is it that simple that as long as people dont embrace the market, its going higher . I think it is, joe. I think the scars from the turm moit moil we saw in the financial crisis run deep. Behavior financial would say you look to those. So i think there is a certain amount of nervousness here. Everybody is sort of watching the exit making sure theyre not the last one out the door. So i think in this environment, equities can go higher. And the trend seems to be positive as you look at the economic backdrop supporting that. Jim, what will the best early sign be of a total complacency by everyone that, wow, i finally believe in this . Or will it be something that you know, some geopolitical event . What is it that id like everybody would like to get out, have one foot out the door. And the problem is, everyone does it at the same time and everybody gets you know, by the time it opens, youre getting out 30 lower. What would it be, do you think . Well, i think certainly, you know, that there were only one headline away from anything around the geopolitical tensions that are out there that would cause some turmoil in the markets on the shortterm. But we havent seen the euphoria that typically marks the top of a bull market. So i think we have a ways to go. Valuations are reasonable here. I think we can get a stretch out of p e ratio necessary this environment on continuing improving corporate earnings. So i think at this point, id watch euphoria. Id see that sort of that real extreme bullishness in the marketplace and a market thats much higher levels than we have where we see john, with your experience, is there one thing that in my experience, and im obviously not you, but its always been easier to call bottoms than tying i never know when were at a top. Ive never been able to have a decent feel for that. Is there one thing that works best, john . No. And you make a very good point. It is easier to call bottoms. Indicators work much better at bottoms, i think, than are virtually useless at tops. But the fact is, most investors arent well served trying to time corrections. If you look at how stocks have done historically, we clearly have an upward bias. You know, when we have a 100 or 200 point down day and i see a parade across your screen of, you know, sue sayers and strategists trying to make the big call, i just dont think it serves investors very well. And i wonder sometimes if there are any real longterm investors left. I certainly hope there are and i think this is a great time to be taking that approach. Thats a good point. You can make a name for yourself. And dont pay that much attention until after the fact, so people that are bearish, ive seen guys try to call a crash or a pullback. Ive seen them try to do it like ten times. And we forget that they did the first nine times. They finally get something close to a correct. The lead in, joe, on your website this morning is, you know, two experts call for 60 correction. I know. I saw. You need to put it back out. Both of them have done that before. So, you know, change that to, you know, two experts call for, you know, onward and upward. Oh, yeah, great, john. So the house is not burning were going to lead with. No, no, were a new service. We cant lead with a slow steady drift higher. You cant lead with stay the course . The judge picked up on that, too. They love stuff like that. 60 . I know. I saw it. Gentlemen, thank you. Its all about psychology more than any of this other stuff. Thats what you finally learned. The market tries to go higher. Lets get to the next story. A little bit of international news, which could impact the market. Russia has now reportly opened up a third front in ukraine and what western military officials are calling a stealth invasion. Avena kojova joins us from moscow with more. Good morning to you. Good morning. So we have ukrainian president pet ra poroshenko has called a russian invasion of ukraine this morning. Thats at the same time as kiev authorities are calling for europe to have an emergency u. N. Meeting. At the same time, the osb are having an emergency meeting in switzerland this morning. And just to explain, we are talking about a new front thats opened up in Eastern Ukraine. Previously, the fighting between pro russian rebels and Ukrainian Forces have been in the city of downtsk, a city of about a million people, and a city of mugansk. About 400,000 people were living there before the fighting started. Now, the last couple of days reached a Movement Across from the russian border of what ukraine and journalists on the ground are saying are heavy russian weaponry. Theyre not the same kind of rebels that weve been seeing in donetsk. Today, interestingly, one of the rebel leaders has said that theyre up to 4000 russian volunteers fighting in east ukraine. At the same time, there is Russian Military presence. So we taught no conirmatifirmat yet, but it is a crisis. One more question for you. What is going on here . These russian courts apparently upholing there were three mcdonalds proposed in moscow and the courts are saying thats okay. What happened here . This is not the only incident. In fact, there are a number of mcdonalds across the country that have suddenly been checked for sanitary conditions and theyre being suspended for a 90day period. Critics say that this has to do with the atmosphere against the west in general. Russia has sanctions in russian eu, and this is part of a trend here. And the russian population, if you believe the polls, are not that worried. In fact, many favor russias opportunities to harvest and people here think bad things will be all right. The other news in the morning here in the u. S. Is the story and the alleged that there were russian bank hackers involved. What is the relationship at this point like between the russian government and the u. S. Government when it comes to hacking and trying to stamp some of this out . Unfortunately, these days, the relationships between russia and the u. S. Is not as low since the cold war. So i am really not sure what kind of cooperation at the moment there may be. Officials say in washington that cooperation are russia is almost at a stand still, including Top International issues such as terrorism. So well have to wait and see what the cooperation could be like in this situation. Back to you. Thank you for that report. We appreciate it very much. Coming up when we return, a Record Number of chinese trying to get out of the country. Theyre willing to pay top dollars as it gets to the United States. And the surfers are enjoying the waves in california and the speculators are coming out to see. It gets more dangerous heading into Labor Day Weekend. Well talk about it in just a moment. [ male announcer ] during the cadillac summers best event, lease this 2014 ats for around 299 a month. Hurry in this exceptional offer ends soon. Hurry in this exceptional offer ends soon. You just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. Both coasts dealing with rough waves from both marie and cristobal. In california, big surf pounding catalina causing major damage to a boat yard. Boats scattered. Also last night, a structure slid down a hill. It partially entered the water. Lets get the forecast for this and other things. Its a big Labor Day Weekend coming up, too, alex. I know the other stuff is certainly the pictures are more interesting. If you can, will you just touch on what were looking at for the east coast here. Basically, the east coast, that rip current risk is going to be main pretty high just about from florida all the way into new england. So still want to be careful getting into the waters even as we head into the Labor Day Weekend. Same across southern california, through the weekend, conditions will be improving but we have to be careful getting out of the waters. Meanwhile, weve got the threat for storms in the middle of the country. Some of those could be strong to severe. A couple of areas were watching from iowa into missouri, just north of kansas city, and another area here down through the central and Southern Plains that well watch for damaging winds and hail. That could away threat out there for us, as well. As we head into the weekend, quite a bit of moisture working northward. Low pressure developing and hanging out and keeping that for storms across the midwest over the next few days. Youre always seeing quite a bit of heavy rain in some of these areas. Already over the past several days, some of the yaerts areas, 35 to 8 inches of rain from parts of illinois into indiana. Over the next few, the heaviest rains will be farther west here across des moines. Thats where we think well see the heaviest 3 to 5 inches of rain. Thats coming in just over a couple of days. So very short order and that could lead to flooding problems. While weve got all this wet weather in the middle of the country, some nice weather to enjoy here in the northeast. 83 today. So