Been pushing the stock markets to higher levels too. Its huchl nature, but you know you cant scott, you can confirm this for me. Youre on half time report and youre our market watcher. You have a bunch of smart guys, staide traders and stuff. You cant hit new highs unless youre very close to the high. Yes. If youre 2,000 points below the old high, you cant make thats awfully difficult. Is this your insight for the dwa . No, im trytology give it to the market people that come on whenever we get close to the old highs and say this isov overdon they get used to a tlad ugh range. When it breaks out. Its probably a reason that it breaks through old highs that its got some momentum. How many times did it get close before and fail. In the last two years, but. It failed almost every time. If it did all this turning and rotations, all these if its already built a firmer, nonfed induced base, based on 4. 9 unemployment and jobs growth, weve been through the earnings recession. Maybe were starting to come out of that. Im just not surprised. Ive been arguing. You werent here yesterday. Ive been arguing all week with. Himgs. Yes, every market person that comes in. The one thing there is a lot of right now. Uncertainty. Yes a lot of uncertainty right now. Tons. Exactly. We know wasnt there more before brexit . Now we know there will be a brexit. Yes, things are more certain. Yes. 180 points the s p is looking up 20 points. Check out what happened overnight in asia as well. The nikkei was up by 1 . Shanghai comp was slightly weaker. In the early trading there, again, on the sense that the bank of england will cut rates you can see the dax is up by 1. 5 . The cac and france and ftse up by 1 . Additional gains in italy and spain. Currency the yen hitting a threeweek low on speculation for more stimulus from tokyo as well. Yen at 105. 91. If you check out crude oil prices. Bernanke was in japan. The helicopter flew over to japan. The whole market started to turn around because of his meetings at the boj. But the yen didnt go didnt break 100. The pound got under 1. 30, but didnt go to par. I dont know. You know what my favorite, things are more certain. The thing im happiest about is Boris Johnson back. You dont want to waist a guy. Back in a bigger way than he ever was. Hes huge. You dont want to waste his jokes, his hair, his gary bu si sort of sensibility. I mean, i read that. I was like, yes. This is so and this other guy is a huge brexit guy. The guy is in charge of the negotiations. Yes. If theres anybody who says well see whether article 50, no. Theyre saying theyll take their time. They can get better deals just keep the eu twisting in the wind on all this. Theresa may followed through and said a brexit is a brexit. I love the queen. I dont like her son, charles much, but look at her here. Shes in buckingham palace. Shes so perfect. Where is she going . Shes on her way out. No, shes not. Ch shes so perfect put together at 90. Slooes a class act. Shes so cool. The purse perfect. She didnt need her purse. She was running out right after that, the greeting. Where is she going. You never know if you need a hanky or something at the last moment. Thats the way a proper english lady would have her purse. And shes going to marks and spencer. She would be you dont wear a murse. No. Who has that . Is that faber im thinking of . Scott, whats on todays agenda. Weekly jobless claims and june producer out. Lock hart, gorge, and kaplan speaking today. Its the kickoff for earning season. Delta airlines around 7 00 a. M. Plus looking for black rocks numbers within the next 15 minutes. Larry fink joins us right here at 7 00 a. M. Eastern time. So alcoa is not the kickoff anymore. Thats the artificial start. I agree. Financials are so important. I agree. Alcoa at 12 will always be. They did beat expectations so if youre looking for anything to hang your hat on. No, alcoa is not. All it matters is where Aluminum Prices are. These are important. Black rock and j. P. Morgan today. How is larry. Larry will be here from 7 to 7 30. We get a half hour to talk to him. Good. Also on todays agenda. Bank of england making cuts. Goal of boosing the economy. Moneta mo economist are looking for a record low of. 25 . And good news, just crossing the wires, eu antitrust regulator filing additional formal challenges against google. Thats a frud yen slip. Jeez. Nailing google. Another guy that sits there, i could see that. That is bad. Horrible. Freud yen. That was just news. Good news youre here and happy to be here. Yes. I feel a little giddy. I think you do. Well, you should on the flag ship show. The eu of accusing google of breaching antitrust rules. It also took issue with the way google conducts its shopping service. This adds to other charges by europe that google abuses its dominance with the Android System by forcing Telephone Companies to preinstall its search engine. Do you think its a coincidence, they did things really well. Microsoft. It was a similar issue. I know, but if you had a monopoly because youre so good at what you do, its now the eus job to come in here and decide that an American Company is so good at what it does that we need to cut them down. Make it more fair for our lesser brands to do better. I dont think. Do you . I should have added and bad news today, right . Yes, that would have been okay. That one for me. However, this was the downside of brexit. Youre no longer going to have uk sitting at the table to try to moderate some of these eu impulses. Or its the innate problem with eu you and well be glad. This is the first domino. Which you think is it. I do. Youve said that. Look at how its worked. Would you try to do that . Put them together. Without having other unity. They are either going to get deep into this or break out. Would you try it with how many languages and cultures. They got rid of english. The global language people use. Todays top story, the Chinese Group has held viacom for acquiring a stake. 49 stake in parra mount and the troubling thing is viacom needs the money. This comes as chief executive Controlling Shareholder deliberate overle paramount. Deliberate. Thats a nice way to put it. How about argue. Red stone has reportedly opposed the sale. It wont happen without their con sent. Wanted to purchase Legendary Entertainment in effort to expand u. S. Movie unit, but buys this and in one swoop. But theyve already changed national. Vehicle has changed the rules it has to be unanimous on the board. He has to sign off on it. The idea theyre continuing with this before they resolve the other issues at viacom is a little insane. Although to get him to sign off might be pretty easy. Youve seen his signature. Yes, i have. I think you could fake that. I was stunned when i saw this. You think youre actually going through with the sale right now. You have to get the rest of the stuff resolved. Stocks to watch. Were going to watch today. Just a suggestion. Is it mandatory . You make it mandatory. Should be mandatory every. Watch csx today. It reported lower Second Quarter profit, but it still beat forecast as lower cost help offset a 34 drop in coal shipment. 34. Thats railroads everywhere. 34 . The coal usage is down drastically. Why. The railroad operators Earnings Report was accidently released an hour early on wednesday, which happens a lot in this world for some reason. I figure you should know how to do it. Yum brand is reporting mixed quarter results. Changing the outlook. Talk about whats happening in china. There was a rebound in the first half. Jm smucker raising quarterly dividend. The maker of jelly. Goes by the name of smucker. Jif Peanut Butter and foldiers coffee will pay the dividend. Are you a crunchy guy or smooth guy. Full throttle, possibly krun which i. Low fat you can get used to. You can. How often do you eat peanut burt. Not much, but i like it. You know, its protein. Good for you. Antiox dant. But its yummy. As we mentioned one or twice today, the dow and s p 500 climbing to new highs. U. S. Equity indicating a higher opening for stocks. Dow up 167 points above fair value. S p up close to 20. Joining us right now is steven parker. He is head of solutions at j. P. Morgan private bank. And ed equiwho is portfolio man. Thank you for being here today. Does this make sense to you to see new highs and hower highs that are going to be set based on what we see this morning. It was surprising. We had the huge rebound and still going higher. I do think theres a fundamental explanation for it that is we finally finished the earnings recession of the first quarr. Were going to see about seven or 8 higher earnings in the Second Quarter compared to the first and a faster pace of growth. So the market acting in anticipation of better earnings in the second half. So weve had this tailwind of policy support from the monetary authorities. I think thats run its course and now focus more on fundamentals and we have good news. Or may not have run the course and we still get better fundamentals too. With brexit, they say theyre going to stay lower or getting messages while youre focus on me. What was that . Who was that . Some random call. Right. A lot of random calls at 6 in the morning. Maybe we stay longer because of brexit. And you do get a rebound. Plus youve heard that United States is a safe port in the global storm. I think were going to do okay. I think we we will have low rates. Be with us for quite a while. I dont think theyll stay forever. So i think well be okay and im not saying were going to get 10 returns forever, but pretty good year this year and continue to next year. Does that mean you would buy today even with the new highs. Weve been steadily buying stocks in the portfolio for the last couple of weeks. Do you agree steven. I think we can go higher in addition to some of the the fundamental factors ed talked about. When you weve seen Fund Managers raising cash. The monday after the brexit vote, there was ten billion dollars of redemptions from global tech funequity funds. Youre seeing money start to chase a little bit. What i think is really going to be important if this rally is going to continue, it cant continue to be led bay the sectors. Were going to need to see more parts of the market, the banks, technology, consumer begin to do better and take on more leadership. Lets talk about the banks because we do hear from both black rock and j. P. Morgan today. People are watching this very closely to see if theres an impact from the brexit to see what they can tell us about the future. Look, ive heard from a lot of analyst who say even at the concerns of low Interest Rates, with it the stocks look cheep. Do you agree. There is an opportunity no banks. I think what youve seen over the last two quarters is people have looked at banks and traded them simply on fed expectations and Interest Rates. Theres a lot of positive going on under the surface. What happened with brexit increases uncertainty. Theres always uncertainty, but the increase in volatility means the trading could be better and frankly when you look at the bank stocks when everybody is looking for yeerd. One of the things being under appreciated banks have a lot of run to start increasing dividends. Buying back a lot of shares and that could be the next place people start looking for income. Your thoughts on financials. For financials and many other parts of the market, i think the key is going to be higher Interest Rates driven by stronger growth as opposed to inflation. So we do actually get some good data readings. So i think actually there is some evidence that were going to get a pick up. Euro zone groet for china. Actually interesting the last couple of weeks that foreign markets have been more of a high play on u. S. Markets. Were up by half a percent. Theyre up by a percent. Were back being the engine that pulls global growth. As china slows down. People are more dependent on us, but a nice two or so, two and a half is i think enough to keep pulling the market forward and pulling the Global Economy forward. You both said something about how you would be buying even at these levels. Thats the first ive heard that. You guys are saying buy right now, both of you. One of the things to look at, one, i mentioned some sectors that are not at highs. If you look internationally, global stocks x u. S. Are down 15 . I think theres some potential to catch up there if the Global Economic outlook begins to just stabilize a little bit. Doesnt need to get a lot better. You both would buy banks . I want to read you something spr a note that came out yesterday. You tell me if you disagree with this. The headline is from a firm says u. S. Banks marooned. The pressures they face are structural and only in semz of operating models need to change is likely to lead to performance. We see limited upside. We would be looking to sell into any strength in share prices. Do you agree with that. As i said before you need to see stronger economy and higher Interest Rates in order to buy the Financial Sector with confidence. I do think thats likely to happen. Im not suggesting were going away from banks now. Its an area that will benefit. Why have we gotten to a point we only do china can do 7 and 8. Theyre different obviously. We used to do 3, 3. 5. Why cant we do that . You dont think any policy mistakes and regulation. I dont think its impossible, joe, but the simple facts is this. The growth of the labor force over the next 20 years. Everybody is going to join the labor force has already been born is going to be 1 pkts slower than it was in the prior 60 years. So that alone will reduce growth expectations compared to what we used to have. So its not that we cant do better than 2 . We can. For a while, but to say whats the rate of goet, its more likely to be 2 something than 3 something. I think we should strive for better things. Whatever it takes. We can do three. This is the United States. We should have the best policies. I agree with that completely. Were going two with this horrific business environment. Some people would differ with that. A lot of new regulations. A lot we have the highest Corporate Tax rate. A lot oi wafs we could do better. Certainly we shoulder reform Corporate Tax. Nobody disagrees with that. Probably think were not capable of reforming. Then we only get two . The total amount of taxes corporate is going to change. When the germans come over. Youre doing that. Ed, steven, thank you guys. Thank you. The guy that watches the movie. Thats good. Coming up, donald trump running mate pick just a day away. Were going to bring you the latest from the campaign trail and a new swing state poll next. Former governor kevin war isssh going to join us. How do we see polls where theres a ten point difference in what the pollsters come up with. A lot of polls out there, different methodologies. Theyre not all done the same. Has generally been worse for Hillary Clinton in this campaign so far than the mare is polls. Obviously we have a lot of confidence in her is and think they have a good track record. In either case were looking especially in the wake of the bad week Hillary Clinton had after the fbi report with james comey criticizing her carelessness and handling sensitive information. We have a tight race nationally and in the Battle Grounds. Take a look at the surveys we did with her marist. You look at ohio. No republican has won the presidency without winning it. You have a deadlock. Tie race. Large number of undecided. Then you go to pennsylvania another democratic leaning state that donald trump wants to target with his message. Hes particularly focused on the rust belt. Shes ahead by 9 percentage points, but as you suggested the poll that came out earlier in the same day showed a very, very close rate in pennsylvania. Theres no doubt that these Battle Grounds as we enter the conventions are in a tight situation and this is a competitive race. Donald trump is now honing in on his running mate. We expect to get that announcement tomorrow at 11 00 a. M. Thats what he tweeted yesterday. The two finalist from all the appearances that we have, our former House SpeakerNewt Gingrich and mike pence. Both of them donald trump has met with and campaigned with in the last few days. As you and i discussed yesterday, i have assumed or believed that mike pence was going to be the choice, but i understand from talking to republican familiar with the debate that jarred kusher in who was the soninlaw huge influence on this campaign is pushing Newt Gingrich. The almost donor who wants to help the republican ticket up and down the ballot, but has not written checks yet. Hes got sot influence. Either double down or play it safe. If he picks newt, newt is smart. Smut has at ton on him. I said, doents you think a ticket between matching you and donald trump would be too hot for most people. It would be a twopirate ticket. I was referring to pennsylvania. You knew i was. The other thing is do you know the multiple of dallas spent in those three swing states on Hillary Clinton hit adds against trump versus vice versa. Its like 501. He hasnt spent any money and its that close. That is true of swing states in general. She spent a on the of money. He hasnt. She has not spent money on television in pennsylvania. Thats one where democrats pennsylvania is an interesting state. Its a big target. Its one presumed to be a big battleground. One democrats have won six times in a row. The belief is that its one of those internal teases for republicans where they can get close, but not get over the line. Donald trump is going to test that theory this year. We have to go. Thats what they keep telling me. Theyre panicked. Ill tell you why we have to go because when we come back, gary player is just one of five players to complete the grand slam. Gary will join us to talk about the british open teeing off today. Right now as we head to break, take a look at yesterdays s p 500 winners. And watch the markets today. Futures up big and dow in triple digits. They may want the latest products and services,