Budged. Dow futures down by 6 half a points below fair value. The s p 500 closed another record high on friday. Nasdaq down by 9. 5. One Economic Data point of note, the National Association of Home Builders will release its Housing Market index for may. Thats due at 10 00 eastern time this morning. A little bit of news out of chicago, charlie evans, he says the feds should aim to boost inflation by keeping Interest Rates near zero until early next year. Evans is a Voting Member of the fomc and argues inflation has been running too low for too long. We just had him on. Yeah. Yeah. Exactly. Thats not new, is it . They have got the dual mandate. Right. We knew this was kind of where he was headed with things but people are looking at fed speak very closely right now to try to figure out. Did you see the fed futures in september pushing that of 0, thinking its less lick like dr likely. It could be negative in the first quarter. Could be. 5 for the first half. What happened to 3 . 3 . And it was just make it 2 look pretty good right now . Right, we said 3 so many times we thought it was a given. We were counting on it. You think its a fall that Something Else happens in 2016 that could change the whole equation finally, well see. Weve been 2 for six, seven years now. Lets tell you a couple of other things going on. Switzerland central bank is monitoring the value of the franc. The value of the swiss currency soared in mid january, youll remember, when the central bank abruptly abandoned a francs or euro cap. The Energy Company cut capex this year due to the drop in oil prices. Gasoline prices jumped 22 cents during the past three weeks. The will you understandberg lundberg puts it 93 cents lower than it was time year ago. You hear the big news there could be a change coming in new jersey about pumping your own gas. Thats the best thing about new jersey. Thats one of good things. Ive gotten spoiled and used to having somebody your hands will always smell like gas. You do. Theres no way to avoid it. For the rest of country, they dont even realize new jersey i think is the only state left where you dont pump your own gas. You are required to have every gas station is required to have people who come out and fill your tank for you. It spoils all of us but apparently theres a little bit of a change in sentiment. The governor is thinking about how hes going to take this all in, but the small retailers are the ones who are asking for the change. You mean christie . Hes one were going to talk to him this week on thursday. You know who else is coming thursday . Who . Rob burnett, the executive producer of the David Letterman show. Whats he going to do . Hes already doing other things. They think hes pretty busy. A big week of guests coming up. Wee should tell you a group of luxury goods makers is suing alibaba in the united states. Brands including gucci and ysl are arguing that they are making it hard to sell their products around the world. In a statement that alibaba says it will fight the complaint and continue to work with partnership in the brands to help them protect their intellectual property. Apple is buying a startup called coherent navigation. The terms are were not disclosed. No word on how they plan to use the technology. They have very cool technology. A regular gps, sometimes when you are in new york city its not exactly telling you where it is this is almost like military grade gps. They work with boeing and some of the other guys. They know where to find the entrance. They can pinpoint it that much closer. Google maps now has ways information on google maps. I used google maps over the weekend. I saw from ways they have the little ways. Ive got it all now. On google you dont need the ways. It will just say ways is reporting that theres an accident here. On google maps they have sort of combine the two. I find that ways will switch your direction quicker than google. They dont drive. Why are you looking at the gps. I need to be able to tell the driver which way to go. Can i ask one or other thing, how many music awards are there . A lot. Oh, my goodness. This feel like groundhogs day with taylor swift. Everybody has got to win things to push the music, its an industry. These awards are inflation they are so at this point they are so worthless. There is the American Music awards around there the mtv Video Music Awards scprks thrn then theres grammy. Theres going to be almost a dozen award shows. This is not the first time and somebody kisses two women are going to kiss and they are trying to get a publicity this. Kanye is going to say you dont deserve this award. Somebody else. You could run one of these shows. I didnt know even know it was on. I watched the first one. Hes right there. Don draper he works there. That thing thats outside, his shadow open the back of that bench they put there. Oh, okay. Thank you melody. Its a cutout. Thats him. Well show people what were talking about. Can we not talk about the billboard awards again . I have no idea in talking about them. We can talk about other headlines, u. S. Airlines are expected to reach an all time high this year. That group estimating about 220 million passengers will fly on u. S. Airlines from june through august. Thats up about 4. 5 from the same year earlier. Very flew will fly sideways. Which is where were going to go with the next story. It was banking. I kept hearing about flying side warks. We should talk about kids on airlines. Well get there in a moment. The hacking thing is more important. We have some potentially scary news for those planning to fly. The fbi is investigating a claim by a computer expert who says he hacked into the planes Entertainment System. The way i read the story was that he was able to control one of engines. If you think about if you are able to speed up one of engines sore slow one down you would move won direction or the other. Bank a little. The idea that you would bank the entire bank. We dont know if hes saying this it was in the fbi report that was unsealed. Is this the same report that we were hearing about same guy. This is the report that we heard about three weeks ago, a Government Agency saying that it was possible potentially to hack through it. This fellow had tweeted out actually he had tweeted out that he was going to do Something Like this and was picked up off of a plane, literally taken they took his computers, they took everything. He has a security i dont know if hes a white hat hacker or black hat hacker to show the weaknesses in the system. While people in the plane. Thats crazy. Nonetheless, he was arrested. Tell me about the kids. You were in the front of the plane. I was in the front of the plane. Mom and dad came in with the kid. How old . I dont know. Under a year. You have kids. Under a year. Asked me if i could change my seat, which i did because i wanted them to be together. And away from you. Right. Lets get to the reality. And then did it cry the whole time . Not the whole time you know. There was a baby crying on my plane yesterday and i was not in first class. I had noise canceling head phones and i could her them. You just outed yourself. Andrew ross sorkin he was so nice. I sat there and did my work quietly. Coming from where to where. East coast to west coast. It was a west coast east coast. Flying out. Mine was yesterday coming back. There was a baby flying in first class and i did think of you. There we have. Thank you for the pictures. I will tell you the baby cried a lot. I thought maybe the people who paid to sit next to him are probably not happy about this. You had to see the seat on he wished you had been there. He had a lot to say about competition. He said theres 14 players in every market. He said but then how about, you know because you couldnt take the train down you saw the east coast prices . Yeah yeah. The train by the way just started again this morning. We know that when the demands rises that costs go up xs unless you dont want to be able to get a ticket its just im sorry how much prices go up . 1,000. For the shuttle. It was flights for that go up to 1,000. They didnt go up because those are some of the listed prices all the time. They have a way to make it looks like its not that but yeah i thought that would have made you thanks. You can pick your poison but you can either fly sideways or take the amtrak. It doesnt seem like or stay at home. Either one are better than driving. Or you can drive ufer tesla though a little segue. Three days off and you come back and its like riding a bike, isnt it . Riding a bike. Consumer report, you may not want to drive your tesla. Consumer reports coming out and saying its testers were locked out of a 27day old top of the line tesla. The doors handles were locked and, and but they were very happy with it. I can get a heck of a car for 127,000. Ill tell you that much. Have you driven one . My knees were like. That was five years ago. It was one of those little ones. Two seater. I havent driven its a beautiful car. It is. Lets take another check on the markets this morning. As we showed you, the futures have barely budged this morning. The markets are trying to figure out which direction to go after the s p closed at another record high this friday. The dow is only 16 points shy of its record high. Check it out right now, you are going to see the dow futures down below 14. 5 . Youll see the dax is trading higher. Its up. 4 percent. The greece its down once again by 1. 3 . A lot of questions about how greece can possibly pull things out and try to figure out how to pay off their next debt. You see the nikkei closed. 8 and hang seng down. 8 and shanghai down. 5 . Oil prices sitting 60 barrel for wti. Taking a look at the bond market this morning youll see the 10year note is yielding 2. 67 . That yield is under quite a bit of pressure. Currency market the dollar is up across the board. Thats a high. This is summer vacation. Its not going above that. Its not. Its a high. Its going back down. All those people who got stuck at 105. Its going back down there. There it goes 113 now. Says your european traveler as hes waiting for that. No. Back down. Down i said. Down yes, yes. Thats right. No. No. Higher again. The tenyear was like 235 for a while. Yeah i know. Its back down. The yield is under pressure again. Anybody who thinks were getting out of this. If you look at yields on the tenyear, feds future market even at september, the market thinks its less likely youll see the rate hike in september. Its not a cake the bund is not a cake. Its not a bundt. This is different. Where is the bund right now. Well show you, its back down to 65. Is it bonds that are moving stocks . Its the bund thats been moving the bond market. Its been the cake thats moving everything. When it started sparking and got up to 75 and it looks like a one or so. You can see thats the global trade. Money goes to the places its going to make the most impact. When it looks like the Global Deflation war is over thats when we start worrying about it coming back here and our yield is going up and we know the fed loses cover and we lose control and our economy is zero for the first half. Its a conundrum. Isis militants have been making a push to take over iraq but now a successful weekend raid by the u. S. That targeted the top leadership of isis. Nbc news correspondent Edward Lawrence has the latest from washington. Reporter in the last 72 hours, the u. S. Led coalition has conducted 19 air strikes in the city of ramadi. That city still fell to isis. With that setback, there was a successful weekend operation by the u. S. Against the top leadership of isis. Ramadi has fallen into the hands of isis and residents are fleeing the city in fear amid attacks from the group. Secretary of state john kerry says there werent enough Iraqi Security forces in the city. There are targets of opportunity like ramadi where daesh has the ability to make impact. If you take out the money money, it can dent the organizations capability to do things. His wife was captured. U. S. Forces say they helped manage hostages kept by isis. It is a onetwo punch that we should do more of. I wish we had more emphasis on capturing and detaining and interrogation, than strikes. Strikes are important. I congratulate those who carried it out. A dozen or so isis fighters were killed in that raid. There were no u. S. Casualties. Thank you very much. That news about ramadi in the news this morning. That potential, it was very exciting just reading it the way these special ops guys go in there, commandos. Didnt lose a single no. And he was much more protected than they thought, and returned fire, and they killed 17 guys. It came to handtohand combat. I was reading this thing. Theres always going to be enough grist for hollywood eventually. Until they tell us the story is not true. Well see how that finally plays itself out. I thought he was your guy. Didnt he win a pulitizer. Is everything he says at this point is a lie . It was a bad joke. In every joke theres some truth, right. The producer told me hes a wing nut. Is he . First quarter earning season may be wrapping up but they are still planning big names on the docket this week including walmart, home depot, lowes and target here now for us on set, steen reese with the earnings angle mike thompson. You used to be at thompson but you were a fraud. It was spelled different. You knew that people would find out, eventually . You used to head thompson research, didnt think people would notice that mike . I wanted to start with you. Ill tell you why, europe seemed like a great trade but i looked at it if you didnt hedge it with currency its been crappy. Its been 6 or something, right . Right. Weve been advising clients who have exposure. How much have you made if you had a hedge . If you had a hedge, it was 13. 5 yeartodate. You are saying it should be bought because some of the other trends will be reasserted in other words, maybe the euro . Definitely for us its all about Earnings Growth this year and in europe we think they can grow 8 to 12 percent. We would be advising clients to take advantage of the pullback but remain hedged. Thats the way to do it. In the u. S. , mike i dont remember what your final number was, whether you were flat or down for the quarter, but once again, Companies Know how to manage expectations to always beat and they did it again, they got people down so low, that 3 4 up was a big beat. March 1st we were negative 3 and were just under 3 positive, thats the good news. Its better than was expected. The troubling part is now were starting up looking at the next quarter and you are looking at negative 4 growth and in fact whats really troubling, i think is the revenue picture, which is already were looking at negative 2 on the revenue side and then in Third Quarter doesnt look all that much better. Is it a game . Will analysts ever figure out i guess everybody is long minded, everybody wants expectations to be beaten. But sooner or later for me if i did the wrong thing, you know, 40 quart ners a row, if i always listen to the companies and lowered it so they could beat it i would eventually not lower it so much. Why cant they figure out that the companies are selling their sort of massaging the numbers so they can beat . Its just the transparency or the lack thereof what they can do with the accounting and with globalization, its made it more difficult. Companies can do things with how they book revenues into different tax domiciles and things like that. Thats really the last black hole of understanding these earnings. I thinks whats really remarkable and to your point, the beat rate is relatively high for this quarter. What they cant beat on is revenues. Theres a lot of companies basically missed on what was expected. Thats something weve seen. Theres places like health care, consumer, Even Technology looked pretty good this quarter. How about the Current Quarter . Are the comparisons as hard . Well they are not horrible. They are not horrible. What you are really confronted with, i dont think its a comp issue. I think the real issue is you have a Global Growth issue. Theres very few companies or seconders that you are going to see a lot of growth. Where are you right now . Right now, for the next quarter were just under 2 . Up . Down. Down . Down. You still have the drive from the energy of the secretary quarter and the u. S. Dollar. I think the second half actually ends up the analysts being a bit too negative. Two sectors are really interesting. If you are looking for the annual plays here i think earningwise, five of the companies with the largest growth rates are coming from the airlines all a function of oil. Whats really interesting on the Revenue Growth side 70 of the companies that are going to have the best Revenue Growth are all going to be in health care. So health care and airlines. We love health care. A lot of m a happening. I think its still very exciting to be there going forward. You say buy europe but would you like europe more than the u. S. . I like europe more than the u. S. Here on the pullback. I think may is a great time. I would use that to optimize your portfolio. Thinking about only health care technology, financials for the expectation that rates will continue to move higher. You have to be more select of it here. As we get closer to the end of this quarter, i guess when would that be june . After june 30th. Will that plus or down 2 change . It will come up. It will come up. But you know there are a little bit lower than where they should be. I think theres going to be a flat quarter. They will be flat and then 6 . I think at this time you are looking breaking even. You believe in them again. They are going to beat your stupid flat results. Historically by 3 . For me go up 4 and you might be right once. It may depend on energy prices. Its unusual. A lot of things. The only thing that always hold true they are going to be too negative. Now were back to 114, oil prices have rebounded. This is why you never ran thompson. This is why you had the name but you had everything going for you. The level precision is still there. I still agree to come on. Thats why i come back. You bring back memories. Coming up when we return amtrak rumg full service between philadelphia and new york city. Started 5 00 this morning and thats after last weeks deadly derailment. Weve got that story but first as we head to a break, heres a look b