Playing at the semifinals. This was on her request for the calendar year grand slam. Only one year left to go. There was a lot of excitement last night. Much of it happened off the court. Although what happened on the court was good too. Check that out. Jimmy fallon and Justin Timberlake watching federer play. First the market news of the morning. The u. S. Equity futures. Yesterday it was a huge sell off. It was a decline of over 400 points. From the highs to the lows of the day. The dows closing at the lows. Things are already turning up. Nasdaq up by 49. We also have a news maker for you this morning. David tepper is going to be joining us for a squawk box exclusive. This is the guy that called for the federally. The fed put. Were going to see what he thinks right now a week before the fed makes his next decision coming up at 8 00 a. M. Eastern time. Lets tell you about the other big stories were watching this morning. Economic worries coming from asia. Japans machinery orders falling and in china falling 6 and missed expectations and in the meantime in china, chinese premiere spoke with the World Economic forum today, they call it the summer davos. Thats what they call it. Chinas economy faces challenges of downward pressures but suggests theres no risk of a hard landing because the government is capable of supporting growth. New zealand bank cutting its Interest Rate. Heres how the major asian markets close today. Well show you that board right now. Everything down 2. 5 except the shanghai down 1. 5 right now. And in europe, kicking off some of the trading, sort of a mixed picture right now. Its sort of hard to call and well see where the futures here in the United States end up. Well, thats it in a nutshell. Premiere. And people say either the government can support it. Theyre that adept at supporting the economy in china or they cant. We argue about it every day. We have people one on side that say one thing and people on the other side that say the other thing. State run capitalism can work or do you eventually mess it up because its state run capitalism. These provinces get stronger and larger and they have a lot of resources. Theyll have to have a lot more authority overtime. Theyll get through it but i dont think the simply controlled economy is one that can sustain itself overtime. Its interesting to think about running a huge experiment on capitalism too. Being experts in the matter. They have overcapacity right now. Its overbuilt. Theres factories that are turning out stuff they dont need but that could all be sl slowly sopped up. Consumer debt is concerning. China will go through periods like this. We did too in this country. This is a big economy and i dont think its disastrous but there will be changes as a consequence. The idea of thinking that you can keep an economy that large moving along more than you could keep ours. Its just when a policy maker says look, im the government we can handle this. We can handle this economy because were the government. Thats been proven every day now that they cant. And we have people in this country saying that too trying to get elected. Im the government and we can handle this. Im hoping we make a change this time. Do you see the story by the way about when he is here how hes going to go see the president but then theres a worry that hes not going to be able to meet with all the ceos and how that could undermine what the president is trying to do. No. The issue is, hes coming here. Were supposed to be giving him a hard time meaning that obama is going to try to give him a hard time and then at the same time, 15 or 20 ceos. Theres a concern in the country that americans arent as welcome over there in business anymore and thats beginning to bother the president too. So hes going to give him some reassurance that thats not the case. But it is the case. Particularly american business. Is the president in good position to speak for the private sectors and ceo . No connection of the two. Who is closer to the ceo . Unfortunately anyway and stop the presses, might be siding with one side or the other. Anyway, stocks to watch today, spo logistics is buying trucking and Logistics Company conway for 47. 60 a share. A lot of conway trucks out there on the road. Thats a 34 premium and Palo Alto Networks beat the street and offered upbeat sales guidance. Posting the biggest revenue increase in ten quarters. Palo alto benefitting as governments and companies spend more to protect themselves from hacking attacks which we talk about more and more every day and Cloud Storage provider box posting better than expected results and the company is raising its fullyear revenue forecast for the 2nd time. More customers subscribed to its content sharing platform. Do they even have a place where people go and work or does anybody work at home . No, they all head back to work after Marissa Mayer changed things at yahoo . But are Cloud Companies operating in the cloud. They have Big Marketing forces. Krispy kreme donuts shares getting crushe theyre issuing weak full year earnings guidance. So andrew you introduced him yesterday and didnt even give it a shot. You figure Everybody Knows him. Its like madonna. Why even get involved with the last names. But did you try one of those donuts . They were the best ones ive ever tasted in my life. I wonder how much they cost. I wonder how many calories. We squared a quarter of one. But then i went back and ate another half. You did . When you werent looking. Youre only cheating yourself. I know. I know. Its awful. But it was so good. It was worth it. And it had raspberry theory. And covered in sugar and really squishy. I havent had a doughnut in so long. Warren buffet im going to talk about now. Berkshire hathaway bought another per cent. The lead story today is how the department of energys Computer Systems were hacked more than 150 times between 2010 and 2014. And thats when you start thinking about the grid. Thats when you start thinking about our vulnerabilities. We had that conversation yesterd yesterday. I think about the grid or Money Transfer and stuff like that. Think if the millennials didnt have wifi for an hour. There would be rioting in the streets and social unrest. You yourself said you would turn around for your iphone because you need access to your theres nothing i could have forgotten that i couldnt have gotten by without and now suddenly i have to go back 30 miles if i forget a stupid phone. Theres one thing happening in the Cyber Security stuff, companies are going to be held more accountable. Now they just say we cant help it and sorry. But thats changing now. Theres going to be some liability associated. I think its very difficult for a company to defend itself against a nation state but if you have put up no safe guards, if you have been lax and you have ignored warnings then youre right, theres going to be liability that comes down on the corporate front. And thats probably appropriate. Right. Lets talk about the economic agenda today. Three reports of note coming up. 8 30 eastern time its the weekly jobless claims. Also august importexport prices and then at 10 00 a. M. Eastern time july wholesale trade. In other market news a big jump in Corporate Bond sales. With more than a Dozen Companies selling yesterday, they launched a 10 billion deal. Its notable because it signals that investors believe the economy will continue to grow. Sales come before the fed meeting when the central bank could raise benchmark rates for the first time in over a decade. Maybe thats part of it too. Theyre trying to move and get some of these in before we see what happens with the Federal Reserve. Take a look at the futures. You are looking at triple digits gains once again for the dow. This could be a fake out because remember yesterday at this time we were looking at big gains. Bigger than this for the dow futures. By the end of the day the dow was down 239 points. Thats a big reversal that wiped out the gains as the losses accelerated for the afternoon. The dow was down 411 points. S p futures up by 21 and nasdaq up by 44 this morning. Also check out oil prices. Crude oil was down by 4 yesterday. It settled at 44. 15. This morning its bouncing back ever so slightly. Its back by 44. 64. Take a look at the bond market. You mention the Corporate Bonds but its yielding 2. 222 . When it comes to the dollar in the currency marks the dollar is up against the euro. 1. 1185. Dollar is up against the yen at 12118 and gold prices at 1,105 an ounce. Alibabas executive chairman addressing the companys stock price. Earlier today he said hes not thrilled that the share price was below the listing level a year ago but hes confident that they are in better shape than a year ago and shareholders should see them as a longterm investment. Dell planning to invest 125 billion in china in the next five years. The internet is the new engine for chinas Economic Growth and has unlimited potential. Hell sustain more than a million jobs in china. Apple had some big show me all this stuff new and we talked about it. It wasnt going to meet expectatio expectations. Its hard. Its ridiculously high. The biggest most important unveil in history. Tim cook introducing new iphones. The 6s and 6s plus both look and feel the same but completely upgraded on the inside. He also showed off a new giant ipad called the ipad prothat has a 13 inch display and a new keyboard and stylus plus a siri integrated apple tv. I saw something that said apple tv is still a long way off. Yes. What was that . That was a Hollywood Reporter piece you were reading. Could come from anywhere. When youre scrolling around. I used to know what i read from where and now im a jumble. If its in print its true and i have all of this stuff i find out and if its on the internet its definitely true. So i have all of these things that may not be accurate. Here to tell us if we should be impressed with offerings is usa today offering and hes also the author of iphone for dummies. Did you bring a copy . I can get you one. I have a friend that qualifies. He is a cnbc contributor. Hes flush. You dont do anything else at this point . Thats all i do. All your retirement stuff you can leave alone. You dont need to tap any of it. Huge stipen. Was there anything that i should get excited about . These are improvements to all the main product lines. The iphone will be a better iphone. It has this force Touch Technology they call touch 3d. Might be a learning curve there but it will be a better iphone. Is this going to make everybody lineup on the streets . I dont think so. Apple tv, you mentioned, again they added the siri voice search. Weve seen voice search before. It comes down to what you want to watch. Is there content there . Opening up to apps and developers is a big deal but i think its a ways off. What about the ipad pro . John steinberg says its the new laptop. It doesnt come with a keyboard. Exactly and its got that keyboard built into the cover. Weve seen that with Microsoft Surface tablets. I dont know. For me as a writer i like the good Old Fashioned laptop. Maybe im Old Fashioned on this. We understand that too. Yeah, exactly. It looks like a very promising product. I dont know that theyre going to be a huge sell here. Weve seen large tablets before. None of them have been huge in terms of performance or how they have done in the market. Maybe the most interesting is what apple is doing now in term of break agoway from specific allegiance to any of the carriers. The journal points this out today and thats a huge move because for the longest time it was that exclusive relationship with at t that helped the iphone flourish and now theyre saying you can go directly through us and well lease a phone to you. Thats a big deal. I think its a big deal too and we have seen the carriers that move away from the two year contracts has already happened. Tmobile and others have kind of led the way there and now go right into the apple store and do it and pay your 32 a month or whatever it is. The product revolution in apple is remarkable. Even though these are just enhancements its remarkable. Im surprised theyre not involved in the selfdriven cars. When is that going to happen . I dont know. But you have to believe somebody is going to be driving one around very quitely. I think theyre working on it. I cant tell you when its going to happen but the rumors are out there and i would not be surprised if those rumors are are true. They do have Amazing Products and when you get close theyre not at a trillion now but when you start closing in on a trillion dollars in market cap its a given you better have good product introductions all the time and the question i have, im hitting up revenue estimates to figure out what this Company Needs to do every quarter. Thats the big deal. I can remember being a stockbroker and thinking i need to do a certain amount of commissions or i dont get paid every month. Theyre supposed to do 322 million in revenue. Which is how much a day. Yeah. So okay i understand you need to sell a lot of upgraded iphones but you also need the market share gains from around the world to do it. Can you do this every quarter . I think you hit it on the head. Theres high expectation. Maybe unrealistic expectations. Who doesnt own apple that doesnt know its undervalued and everybody says id rather own apple and everybody says the same thing though. Really . So i can guarentee that i can get 50 over the next year in apple. I dont think you can guarentee anything but certainly thats what i have been saying since 800 billion in market cap and now were at 6. We got under 6 in the sell off. Looked better at 550 than 785 but i dont know. Theres always somebody gunning for you. Smart guys. Theres a lot of smart guys. Just got out of school and working for somebody and want to make a name for themselves. I dont know if thats evidence that can be marketed. The Chinese Companies are coming here too in the u. S. Theres a lot of competition in china. For the most part the iphone set the standard. It is the standard. Thats what i was going to say. We can talk about how big the market share will be or this or that but from the straight up innovation is there another company that were not paying attention to or talk about enough where they say those guys over there theyre doing something you have to Pay Attention to . Not so much. I dont see that. People are doing it. Of course they are but apple clearly remains the leader here and whatever you think about it incremental improvement. You cant reinvent the wheel every quarter. Apple says they were going to come out with a phone. I have a phone. What can apple give me in a phone . It was life changing. Computer in your pocket. I have to say even the camera is enough to get me to upgrade because i want the best camera i can get. 4k video looks very sweet. Its going to push me over the edge. All right. Thank you. So youre going back to usa today . I am. Today you are . What are you working on . More apple stuff. Keep us updated. Somebody tweeted in the trouble with quotes on the internet is you can never know if theyre genuine. Abraham lincoln said that. Donald trump has not so nice words about carly fiorina. But first though, heres a look at this date back in history. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. I was going to the library to do my homework. It was a little bit of a walk to get to the bus stop. I had to wait in line to use the computer. Took a lot of juggling to keep it all together. Whats possible when you have highSpeed Internet at home . The Library Never closes. It makes it so much better to do homework when youre at home. Internet essentials from comcast. Helping to bridge the digital divide. Welcome back to squawk box. Making headlines this morning, the cover story in the new Rolling Stone getting a lot of buzz today. The published piece quoting donald trump mocking Carly Fiorinas look. He says look at that face. Would anyone vote for that. Can you imagine that . The face of our next president. He continues saying shes a woman and im not supposed to say bad things but really folks, come on, are we serious . I wish i didnt have to say that myself. Thats nice. Nothing surprises me at this point. Even reading it hurt your sensibility . I have written terrible things about carlys business record. So its not that i have a particular view that way. And the guy took issue with everything you wrote in that column. They took out a full page add in the New York Times. He took out a full page ad. To say you were full of beans. Which is bizarre because he fired her. That was a very strange bedfellows ad to see. If anyone googles Carly Fiorinas business record, New York Times on record, she sucked. Cross her off the list. All right. Lets move on to the markets and talk about whats been happening with china. If famed short seller and china bear is sounding the alarm on chinas economy saying that beijing is running out of room to borrow. The system is still in the process of unraveling. Stock market boom and bust. The Property Market is still sputtering along but the key is the debt is still growing every year. How big of a red flag is china for investors . Lets get more on the Global Markets right now. Thank you for coming in today. Good to be back here. Thank you, becky. Are the markets giving china enough credit for the slow down thats happening there . The slow down and the importance of china are not really in u. S. Equity prices or financial markets. Theres going to be a further fall out. What prompted the chinese devalu