Travellers, withdrew nighted technologies and verizon among many other major companies. As for the economy, one important report of note. September Housing Starts and Building Permits out at 8 30 eastern time. Okay. We have a couple of stories were watching this morning. Apple ceo tim cook making a couple of headlines at a Big Technology conference in california. The tech giants new Music Streaming Service has reached more than 6. 5 million paid users. Another 8. 5 million are participating on the free trial. Are you still free trial. I dont know. I dont know if its been three months or not. Maybe not. My son downloaded 59 songs and three albums. And its good. Its alternative but its good. I got all new stuff to listen to. My music life is good. Changed. Its good. Its more robust. Thats for sure. But millennials like spotify. Thats what i hear. Im still on spotify. But youre a millennial wannabe. I just got there first. Cook suggested orders for a fourth generation apple tv would be next week but it does include a streaming tv service. As for the watch, the big apple watch, cook isnt giving out Sales Numbers but gave a couple of hints. He said that by the way, he said if he gave the numbers it would help competitors but he joked that the company shipped a lot in the first quarter. Even more in the last quarter and predicts even more this quarter. So i dont know what we can get from that. So stocks to watch on top of our list is ibm which for years i refused to call it. I just didnt like the name and now its just not descriptive anymore. Little blue are pills. Arent they . So you cant call it really little blue. Barely medium blue. Well talk to an analyst and see what the problem is. Were short of even pessimistic expectations. 14 years counselor, 14 years in an 8 by 10 cell surrounded by people that were less than human. But 14 quarters. 3. 5 years of revenue going down and in this case down 14 . The number was like they have been trying to shrink by design. Zincage is good. Only 1 organic. It was 1 worse without forex and the stuff they wanted to lose. So they included that then. They got more ways of saying things. Were on track. Stronger dollar and weak demand by china. The company also cutting its profit forecast. More from an analyst in just a bit and my question is ibm going to be what you consider a major player five years from now in providing i. T. To corporations. Thats the big issue. Part of the problem is trying to sell orders to Big Companies. Thats their business but are they still going to be a major player . Thats the problems. Are they going to be ibm in five years. Thats what she is arguing that shes investing for. The entire industry is switching to smaller projects. I think its going to be like digital equipment or by the time theyre all split up. The person i want to talk to about all of this is still warren buffet. We moo. How many walmart shares . Between walmart and ibm, you can go through the list of Companies Hit over the last couple of weeks and how he thinks about all of this. Heres another stock, sap is confirming the Quarterly Results that it preannounced last week. Thats nice. And today the Software Giant says it could top full year financial targets in the fourth quarter. Sandisk shares jumping this morning. The stock getting a list from a bloomberg report which said the flash Memory Company was in advanced talks to sell itself to Western Digital and shares hit hard. The revenue fell short of estimates and announced a Restructuring Plan that would cut about 8 of its staff and lead to about 10 million in savings. The supply Chain Solutions company beat the street on the top and bottom lines. In corporate news, United Continental reporting a interim boss. Phil joins us now on the squawk newsline with more on the story. Phil, good morning. Good morning, becky. This is going to be management by committee at United Airlines. Yesterday, late yesterday, they announced that the acting General Council will step in and become acting ceo while oscar munos the current eco is on medical leave. He is taking medical leave after suffering a heart attack and going into the hospital last thursday. In announcing his appointment, United Airlines talked about how brett hart will be leading the airline with a committee of folks included in the release is a statement from him saying i am confident in the ability of the company to manage the strategy, implemented the strategy of oscars mission bringing United People together around a shared purpose and becoming the best airline for our customers and our employees. For United Airlines this is yet more turmoil in the executive ranks. Just a month ago, five weeks ago jeff was ousted as ceo. Oscar munoz was on the board. Has a strong background in the Rail Industry in terms of operation. Was elevated to ceo but now he is obviously on medical leave following his heart attack and hospitalization. Whats interesting guys when i have talked to people on wall street about the executive bench at united, brett harts name is not one that has come up. So he does not come at this from an airline experience, operational experience. He has only been in the Airline Industry and with United Airlines since 2010. Hes going to have to step into the role right now and clearly hes going to have to be leaning on the rest of the executive team as he steps in as acting ceo. Back to you. I thought he was a legal guy too, wasnt he . He was. And this guys a go ahead. And brett hart served as General Council prior to being with United Airlines. He was with sara lee and executive legal positions and prior to that private law practice. So he does not come at this from an Airline Operational standpoint. Does he become permanent ceo or is that acting really no, i do not get the impression from talking to people that this is youre acting but well probably elevate you to permanent. This is truly acting. They dont know how long hes going to be out. At this point if they do know theyre not saying. All theyre say as good that he is taking medical leave for an indefinite amount of time. Its too early to know the course of treatment and recovery. Thats the phrase they used in their release. So this could be a month, could be two months, who knows, could be a few weeks. As you guys know when people suffer a heart attack there are varying degrees of severity and recovery. Theres no way of predicting how long it will take somebody to get pack back to the level whery can feel confident in taking their old job back. I would say four or five days later we would have more information about this. I understand theres privacy issues and things you want to know but id think theyd want to know more about how severe this was. A lot of those questions will come out on the Earnings Call thursday morning. You can bet that United Airlines will say out of respect for oscar munoz and his privacy and family were not sharing much information here but wall street doesnt know a whole lot about brett hart and theres going to be a lot of conversations today between uniteds Investor Relations team and analysts on wall street but theyll get a lot of questions in on thursday morning. Im not sure theyll be pleased with the degree of clarity theyll get. So 38 days is what that was his tenure. Its not like he got a lot of things started but do we think of him as having a lot of experience at united . So his tenure from that perspective is much longer and hes someone that you definitely want to, you know, if he is going to be, i dont know, weakened to some extent, like you say, we dont know anything about this but is there a reason to want them to come back for united at this point . Yes. There is . Okay. If you look at his background and prior to this he was an executive in charge of the operations for csx, his background, his background is in logistics and in operations in making things move the way theyre supposed to move. Thats the way they have fallen down relative to their competitors. If you ask anybody thats covered the Airline Industry or in the Airline Industry they will tell you that delta and America American are way ahead of united in terms of operational expertise and efficiency of the period operations. Thats what oscar munoz brought to the table and thats why im certain that united is hoping he can make a full recovery and bring that expertise back to the board room. Okay. On another note, phil, well have robert frank on talking about ferrari. I found a ferrari that cost 1. 4 million. Thats in your price range isnt it . Theres quite a few that were 400. He said list price is 379,000 but if you want seats it goes over 400. There you go. Unless its a really short ride, i like to sit down in a car typically. Buses, you know, not so much but i think seats, thats like almost Standard Equipment i would think. Well, these are not Standard Equipment seats. Theyre really nice seats. All right. Are you surprised . Hes our wealth guy. Hes been in these cars too. As opposed to the rest of us. Exactly. Phil, thank you. Lets talk about corporate earnings. Thats probably the name of the game for the markets today. Joining us is the Senior Vice President in the Wealth Management unit at ubs and lindsey is chief economist at stifle fixed income. Lets start out talking about earnings though. We have seen earnings early in at this point but weve seen big disappointments if you look at ibm and Goldman Sachs and especially Morgan Stanley from yesterday. Thing versus come ouft let of l field. What does this tell us to expect about the rest of the reports were getting . Its about organic growth being important and the Third Quarter being really tough on the callpital market trading. They distributed the risk off of the Balance Sheet and on to trading platforms. Youve seen expectations pushed out. Thats a positive. Investors have been selling as price versus been rising. Thats good. We have been climbing the wall of worry so theres a couple of jokers in the deck but the market could try to make a run to return to the highs weve seen before. We havent gotten a lot of great guidance though and the guidance we have gotten has been pretty lousy. Yeah. Well it comes back to the issue of are you achieving top line growth . And in this its important. Where youre seeing top line organic growth and employment and good yield in acquisition youre Getting Company with okay results. Were not seeing that. Were not seeing transitions. Youre getting bad results and the market more so than typical is rewarding on the upside and penali penalizing if youre a u. S. Company were fairly insulated however its harder and harder to find companies isolated. We had terry on yesterday and he talked about how youre seeing fewer tourists coming in and buying at his stores in flag ship areas like the new york flag ship store. Online retail has been a little bit better. I think the domestic story continues. One positive about that i would say is it looks like youre seeing some persistent weakness and that may be result of the fed being on hold. Well see for how long. But if you continue to have dollar weakness youre going to have Better International comparisons to make. Do you think were near a recession . There have been people that worry about what happens to our economy next. A recession is a nonzero probability at this standpoint. From the feds perspective they anticipated the second half of the year to be robust. Further improvement in the labor market. Further improvement in inflation. Further improvement in the domestic Manufacturing Sector and what we have seen is across the board we have taken a step in the wrong direction so were likely to come in under the trend growth rate that we have seen for the past several years pulling the u. S. Economy below that 2 we could see a further depreciation in the overall activity level and that moves us one step further. Its interesting, six months ago the market was pricing in one or two rate hikes this year and now were talking about as you know we maintain our long standing forecast for 2016 but i think the new focus now is potential additional stimulus from the fed. Do you think thats more likely than the fed actually raising rates . The idea that we get stimulus first . No, certainly we could get additional stimulus if the economy continues to lose momentum. But its not your most likely scenario. No, we are looking for continued positive growth but still very modest but enough to get the fed on board with a rate increase sometime next year. But if we are actually entertaining these conversations about whether or not the u. S. Would be more likely to fall into a recession if thats even on the table it seems like its a very difficult time for the fed to raise rates. It is. We have heard theyre now losing confidence in their outlook for overall activity inflation. We see that Committee Members are concerned about the down side risk of inflation meaning further faltering in price pressure. So if the committee had a hard time justifying a rate increase in september i know they continue to tout the idea of a possibility of a rate increase by the end of the year but october is very much off the table as is a rate increase by the end of the year. So i think Committee Members at this point are very pleased with their decision to bypass that september meeting and theyll continue to wait on the sideline for further evidence that the economy is, in fact, on track. Thank you both. Okay. Coming up when we return, Buckingham Palace rolling out the red carpet today for the first state visit by a chinese president in ten years. A love report from london. Before we go to break take a look at this date in history. patrick 1 whats it like to be the boss of you . patrick 2 pretty great. patrick 1 how about a 10 raise . patrick 2 how about 20 . patrick 1 how about done . patrick 2 thats the kind of control i like. And thats what they give me at national car rental. I can choose any car in the aisle i want without having to ask anyone. Who better to be the boss of you. patrick 1 than me. I mean, you. Us. vo go national. Go like a pro. They speak louder. We like that. Not just because were doers. Because were changing. Big things. Small things. Spur of the moment things. Changes youll notice. Wherever you are in the world. Sheraton. Welcome back this morning. Cia directors personal email account has been hacked. Twitter user claiming to have broken into it released a report contact list of thousands of emails and instant message addresses. The fbi has begun an investigation into the matter. Chinas president is making a state visit to the u. K. Today and susan li joins us from Buckingham Palace. Good morning to you. Hi, andrew. Yes, were expecting xi jinping, the chinese president to come through down into Buckingham Palace any time now in a horse drawn carriage. They have rolled out the red carpet for the chinese president and the first lady. Let me show you the thousands that have lined the streets out here near Buckingham Palace just to catch a glimpse of the chinese president and his famous first wife. Were expecting his approach any time now. This is a first state visit to the chinese president to the u. K. Now this is also market contrast to the reception that he got in the u. S. Because the u. K. Has been wooing the chinese. They want to be the best partner for china in the west and they said this before which the u. S. Criticized as being constantly accommodating. In march we had the u. K. Be the First Western nation to sign up for the infrastructure bank. So what do they get for this . Theyre looking to sign a lot of deals during this four day state visit and that includes issuing the First Sovereign bond here outside of the asia pacific. Theyre also expected to sign a nuclear deal of sorts and also possibly some Exchange Cooperation between shanghai and london in the future. We do have xi jinping and his wife, the first lady touching down last night. He will be staying here at Buckingham Palace for the rest of his stay in london and i also want to show you some of the souvenirs you get out here if you line the streets this morning. You get an i love china tshirt. So were waiting for xi jinping. Well see when he gets here. Back to you guys. Susan, looks nice there. Looks good in front of the palace. Kind of royal. Do you want to you got to get this out i think. Well talk about it not yet. In chairs. Maybe in chairs. Hold the thought. Talking about my underwear. And not your undershirt. No, i used to love the under shirts. I still do. So its light and breeze and supportive and everything you ever thought of. We have serious topics to discuss. I know. But more like a boxer or brief. Its a boxer brief. Okay. I have a good picture now but when we go to break, thats all youre talking about so i thought we should share. Share with the audience. And dan and everybody else. Lets move on