Noempbt asia the markets were relatively flat the nikkei was up about 15 points. Hang sense added 29 and the shanghai up just over. And closely watching currencies. Early surge in the yen erased the bulk of this weeks gains for the dollar. You can see now the yen is trading 109 pvnt 96 to the dollar. The dollars down across the board. Euros trading 111. 8 and the pound is 147. 04. And ill applies. Brent crude prush pushing above 50 for the first time in several months. And were some people right just a couple months ago that made that trade. Also shares of takata. Kkr expressing interest in taking control of the japanese firm. This coming a it is air bag supplier facing billions in cost due to the recall of those faulty parts. And u. S. Foods raising a billion dollars in its ipo making the second biggest of the year. Shares are trade on the nyse today under usfd. Stocks to watch this morning. Hp, inc. Reporting better than expected Second Quarter profit. Cost cutting offset a drop in revenue. Amid continued weak demand for pcs and printers. Outlook is below and lower degree not much watch in that stock. And costco, a pull back in spending by high income consumers who make up cost keys Business Base led to weak sales in april. And pvh is raising guidance after posting better than expected First Quarter results. Phillips van huesen. Strong results from tv operations including orange is the new black helped offset a softer performance at the box office. During the quarter the studio released gods of egypt and allegiance. And guess swung to a First Quarter loss on currency head winds and restructuring charges. Same store sales slipping more than 4 . Also cutting full year outlook. And they said april was the toughest month for them. Shares of williamssonoma you have about 3. F after profit fell but it still managed to beat forecast. Benefitting from new inventory initiatives and improvement in pottery barn stores. Same store sales up 4. 5 company wide led by a 19 increase at its west helm brand. And peter thiel repeating he did help finance the gawker case. In addition to multiple other cases as well. The tech billionaire telling me he helped finance hulks legal battle was less about revenge and more about specific deterrence. I saw gawker pioneer a unique incredibly damaging way of getting attention by bullying people. Of course there was that early story in 2007 that outed peter thiel as being gay and he said he watched others, including friends and others who he said articles that were very painful to them. And excuse me. Very pain and feel paralyzing for people who were targeted. And he thought it was worth fighting back. Now he has been criticized because hes donated money to the committee to protect journalists and has talked often about protecting free speech. But he doesnt believe his actions are contradictory. I quote, refuse to believe journalism means massive privacy violations. It is because oi respect journalists that i do not belief they are indaejed by me fighting back against gawker. People have to think about whats in the Public Domain and whats privacy. I love the interview i love the stuff he said, probably his best philanthropic effort ever to date. I wish we could give him some type of prize. And i finally decided i want to give him a nobel peace prize. Because we know it doesnt make much to get a nobel peace prize. And what he did is definitely more than the last couple not the im talking about one specifically. But i mean this definitely rises to the level of nobel peace pri prize. I think. So there seems to be two views on whats happened here. One is that hes robinhood. That hes come to the defense of all sorts of people. By the way what was fascinating to me was recognizing and realizing how extensive the support was. This was not just about the hogan case. Hes been doing this systematically. Hire a law firm and team to go out and literally years ago to find cases. About caulk gawker. Specific to gawker. People who were about to bring a suit or were wripging a suit they would approach them and say how can we help you and try to support them fastbalinancially. Gawker didnt even know what they were playing against but yes there is a community of people who believe he is absolutely robinhood and helping people and is philanthropic. There is a completely other community. Led by gawker. And you are seeing a whole group of stories emerge. I would argue [inaudible]. Nick danten obvious lly has s own views damping. Suggests the idea of the political i cant tell you how many emails and other things i saw about the pollute ok plu to besy. Plu to be rasy. Lawsuits come out. That is a rid claws samt to me. For a whiled it looked like the little guy but thats not new to me. The idea that money is influencing Court Decisions because you can buy better lawyers and lawyer with it. It just may change the tide in who has the upper hand in some of these things. First try, 140 million. Not that he wanted the must be misi hes not making any money hes not trying to profit off this. Hes had less successful. There sounds like there is a series of other settlements and other didnt do sho million. That were not there big that did not become public like this. With the judges decision to leave it in tact. There is still more going on. Is the presence building up that you seemed to think it was going to get cut drastically. In federal court the whole case was thrown out. They lost. Gawker. No. Hulk hogan lost in federal court. And some of the early stage going on in florida they also lost. That is jury award. So the view among it is very hard to find people on the other side of this who believe this is not going to be substantially reduced if not overturned. But i dont think peter thiels involvement changes all that drastically. That was the case and belief that people thought even before peter thiels involvement was revealed in this that that case because it was a jury, that it would probably be cut back on further review. The question is whether hulk hogan would have gotten as far as he did without the support of peter thiel and the second yesterday didnt mean anything . No. That case ultimately needs to be appealed or the will be appealed to another judge. The question around peter thiel now phenotyin the context of thl and larger story is whether in discovery they are going to determine that not only was he financially supporting it but whether somebody like hulk hogan was being compensated. Being paid to take his. Sure. And you are being compensated and then you are on the stand it all becomes much more complicated. So they suggest there were payments not just to his lawyer by to him . Unclear. I asked the question to peter directly and said did you compensate hulk hogan and he said he didnt want to get into it and wouldnt answer that question. All im saying is the funding of this is going to become a major feature set, if you will of the peel and there are doctor. If hes paying them to take a lawsuit against him that is a different stance. Im not saying thats if that is and if he wont answer as we talked about how this emerged the first time. Certain tactical legal tactical decisions were made throughout that did not match the sort of economic rationale but that doesnt bother me. You get ridiculous people in lawsuits o all the time who dont do things sanely or lodgely or butgically or but essentially it could be used in why did hulk hogan bring the case and was it a pure case that to me is a different right. Different story. Im sure you will hear that argument. Back to the markets. Solid advance on wall street putting markets on track for actually having a weekly gain. Theoretically. Joining us is jack kafari. Wait a minute. You are not the old crusty cnn guy. Youre jack calf. Im jack kafari my children i liked him by the way. Did you . He was cranky. I really did. Well then why dont you like me . Touche. I have to prepare for this from scratch. I had a lot of questions from anyway, i knew it was you and i was looking forward to having you. Thank you. Youre welcome. Also a cnbc contributor. Lets start with you todd im not really sure what your take is here. You think 2600 is possible in 2017. Yep. But were vulnerable for near term setbacks that could take us below 2,000. Yeah. In the near terms feels like the markets are melting up. And i dont see panic to the sopside for any other on that are short covering. Led by the worst second. Longer term i do think we have the ability to rally up towards 2600. I follow kind of a longer term dow theory. Charles dow, grandfather of Technical Analysis showed us there are three main phases of a good bull mancht first was in 2009, 2011. 201215 and now here in the third and final stage which then i think brings in serious volatility. Distribution doesnt sound like the stage of a bull market. The lay comers and unfortunately they are being sold into by people who are accumulating on the way up. So this is a rally that i think you will start to see deteriorating fundamentals and there will be significant price gains but after that volatility. Where do you start measuring the melt up . Just monday and tuesday was a melt up . Im a shortterm trader. Monday and tuesday. That is what i can wring to the desk. I was long netflix and some crude oil and all risk on names and ive lightened up. Mostly out of long and have moved into the shortside for a pull back. The market wasnt confirming. I do think there are buying opportunities but lets get them from lower. Jack. Kafari. Yes. Yes. You heard what todd said. That your view . Or do you have some differences . I think there is some alignment. And i think some some differences. Under the surface kind of like duck. Activity underneath. Financials do poorly. Financials not doing much better. Interest rates beginning to creep much better. I think support ideal gas the financials have been trading better over the last several weeks. Energy trading higher. Brent making a move to 50. Demands coming through and market indicating Global Growth is positive. And within that churning underneath the market that might create opportunities and i remain positively biased. Ducks actually sometimes go under the water. They go down five, ten feet and then flying back i mean they are very cool. That is why those. Those big webby feet talking about the cormorant. Not a duck . No. The diving ones. Ducks cant do that. Well they can but. The mallereds . They stick their bottoms up but they let me push back on that point jack if you dont mind. The duck . No the ducks back to the market. I got to throw in i little piece os bread out for ducks. Correlation of crude and equities have actually gone negative. Weve scene over the last document of months. If we all of a sudden spiked 60 i cant imagine the stock market is going sty wow this is great. Weave lost the positive correlation so we cant rely on energy and the market. Are we going 60 because we continue to see demand draws. Right. Demand draws equals demand equals growing economy. Were going up for right reason. Political problem that is more problematic and how you respond. Or the dollar regains the down trend because the fed isnt going to raise rates in position because the economy isnt Strong Enough and the fed is going to continue to rally. The fed wants to move. They have told they are going to move they have gone from Forward Guidance to suggestion. Which is to say were moving back to because they have actually managed to satisfy a lot of their terms. Look at the treasuries. Tens and 30 advise not given up because i think people are starting to pay for that premium of coming volatility if they do raise. But why havent bonds broken yet . 10 basis points on bunds. Making buying dollar assets a very Long Duration dollar assets certainly typically a nice safe place to be if you are long so you potentially go long risk. Long duration as the hedge on your risk. Thank you. Thanks guys. We should tell you president obama and leaders of other g7 countries gathering in general manager. On the agenda concerns about the health of the Global Economy and europes refuge crisis. Akiko fujita is covering that in japan and jouns us right now. Good morning. Certainly the health of the Global Economy dominating discussions on the first day of the g7 summit by leaders divided over mr. They believe the recovery stands. Merkel believes the economy is showing stable growth while Prime Minister abe here in japan warning of a lehmanlike event specifically citing Commodity Prices and growth in emerging markets saying they were at levels not seen since the global priesz in 2008. Trade also on the agenda here at g7. With the tpp yet to be ratified. And we heard from president obama talking about the progress that was made on that front. Take a listen. We had a chance to talk about trade. Not only tpp and our involvement in that, but also t tip. And recommitted ourselves to making sure we try to finish those negotiations by the end of the year and emphasize the importance of pushing back against either protectionism or competitive currency devaluations or the kinds of beggar thy neighbor strategies that all too often end up leaving everybody worse off. Now china, the largest economy here in asia not represented. They are not part of the g7 group but they are essential dominated discussions here especially on the geopolitical front as relates to territorial disputes in the South China Sea. And leaders saying a strong message today on the south and East China Sea. But they didnt get that complete commitment to completely condemn chinas moves. The focus form shifts to hiroshima where president obama becomes the first u. S. Sitting president to visit hiroshima. And hell visit also the memorial peace music and meeting with at least three atomic bomb survivors. Sure to be an emotional meeting for them. When we return the future of modern medicine. A look at new therapies, regulate nerve s wis with cool. That story when we return. My body tells me no but i wont quit because i want more olay luminous illuminates skin with pearl optics science. Your concert style might show your age, your skin never will. With olay you age less, so youre ageless. Olay. Ageless. Welcome back to squawk box. Retailers losing in series 1. 86 per share. Revenue Beat Estimates. Same store sales fell 5 at kmarts and 7. 1 at series. Both in line with estimates. A steady ride down. If it is a 12 stock and every quarter you are expected to lose 3 dollars a share. Kenmore, craftsman, die hard and Home Services business. And also said its cfo is leaving the company once a successor is found. Im looking at estimates. The full year is expected to lose 2 a area. 2018 expected to lose how do you try to sell the market on that . I think different retailer. You dont have to bsears. All the way out to 2020. Maybe that minus sign is a typo. I dont think so. Electrical signals govern our body but when they get crossed our body can go haywire. Were jiend with a lock at possible solutions to many common ailments. They aoday were talk harnes the power of the Central Service system. We talked with darpa about this. They and others like gsk are working on this. Listen to what doctor doug weber told us about the concept. It all comes down to communication of information throughout your nervous system and between the different cells of the body. And there is the chemists approach in the form of drugs and there is the electrical engineers in the form of electrics. Agencies are working on this. Companies are also working on this. They call it electrocueticals or bo electric igices. Take look. Scientists envision the system can be modulated be tiny devices to repair disease. Madison has already tapped into this concept with the devices like the pacemaker where electrodes manage the hearts rhythm and can trigger a response to restore cardiac rhythm. Researchers hope this approach could address diseases from asthma to hypertension to diabetes. So the idea is you would be using these tony electrodes on individual nerves or nerve bundles and really figuring all the precise ways electrical signals is working in disease. How would that work for Something Like diabetes . What nerves arent getting the right signals . What could Something Like this change . Probably something in the pancreas, where if you are not stimulating insulin. It requires a much better understanding of the electrical signals in our bodies. But being able to map that out and figure out whats going on and if its something that can be fixed with electroal signals. Fewer side effects than with chem zwlls that is the hope. Dar na pa was talking about having these things be potentially degradable. So they go away over time after they treat whatever the problem. Is a lot of ideas. Were still years off from actually having this in practice. Coming up. New signs that the mortgage credit market is opening up as lenders look to attract some first time home buyers. Is this wells fargo low down payment loans without fha backing . Here we go again. Anyway. But i trust wells fargo. And right now as we head to break a look at yesterdays s p 500 winners and losers. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Ed if im gonna go at all go gig or go go go go big or go home go go go big o go home go go welcome back to squawk box on cnbc. First in business worldwide. U. S. Equity futures managing to trade up even on that news. Who would have thought . Right . That the hollywood. That wouldnt work is this. It would end that quick, couple of squared away people like that you knoi dont kno. Maybe they rushed into it. If you havent heard they are a already filing for divorce. Do you think there is a prenup . Whos got more who is the star the born kah character here. Who iskristoffersen and who is well that not yet. Hes got a long track record though. He does but totally bombed from his latest couple of lone ranger. Yes, yes, yes. Anyway. I didnt see this yesterday and i dont think there is any reason to talk about it now but apparently there was something about out the emails yesterday. The damn emails. Bernie sanders, did you want to win . Did you want to win