Its down 1 . Shanghai is down close to 1 . We are getting news out of reuters japan manufactures may cut profit targets. That is certainly a story that the market is watching. Heres whats happening in europe. The ftse 100 in the uk is the only average that is positive although only by about. 10 . Good morning. Well get to politics in just a minute. Starbucks missed forecast for the Third Straight quarter. Customers making fewers visits. Earnings matched estimates, but revenues fell short. Changes to the Loyalty Program and happy hour weighed sales. Also cutting annual sales growth target to 10 . Chipotle experienced a drop. Free food and Safety Measures failed to bring consumers following several food born illnesses last year. Dow components is set to report this hour. Well bring you the numbers. Thats about 6 30 a. M. In about a half an hour. All right. Scott. Good to see you. Thank you for being open to the early wakeup call. Get through this together. If we were up late. No better way to spend a friday. Start your weekend early. Im the person with the sarcasm. Are you going borrow it . You want to do it . Were not allowed to be scar sarcastic. Just you. Okay. Thats sarcastic too i think. To politics. Donald trump accepting the nomination. Sarcasm is the demain of losers. Im a winner. Join us now, john, with more on last night. Reporter joe, there were hints during the approach to Donald Trumps speech that he might as the republican nominee begin reaching out to different kinds of americans, expand his coalition. First we heard from the investor peter thiel who talked about his role as a proud gay republican. Of course every american has a unique identity. I am proud to be gay. I am proud to be a republican, but most of all, i am proud to be an american. Reporter then you had the candidates very poised and polished daughter ivanka trump assure american women that he was going to take care of issues of concern to them, affordable child care, equal pay for equal work. It was an optimistic message. Heres ivanka. He will focus on making quality child care affordable and accessible for all. I will fight for this too right alongside of him. Reporter then donald trump took the stage, embraced his daughter and began speaking and thats when it got dark. Donald trump painted a hellish picture of an america of economic devastation, physical danger, he accused Hillary Clinton along with barack obama of spreading death, destruction, terrorism, and weakness. He accused the corporate elite of overlooking t ing polite pli working class americans. The American People will come first once again. My plan will be begin with safety at home, which means safe neighborhoods, secure borders, and protection from terrorism. There can be no prosperity without law and order. Reporter what you didnt have which made it different from the norms of previous acceptance speeches, you didnt have the humility. You didnt have the outreach to oppone opponents. You had donald trump saying i alone can fix our problems, sort of in the style you hear from aauthoritarian leaders in other countries. Mike gir shin says he was appealing to primal forces with fear and anger without religious guidance or religious principips and the question is does this get him closer to winning the white house. He has a base among blue collar white voters. Thats his core. He was appealing to him last night. Thats why the speech was accepted by the legislates. Donald trump needs people who dont support him. White College Educated women in particular. Hes way underperforming in that group. He needs them for electoral majority. Were going to sew he how it pl out. He wasnt changing the same donald trump is the one you had in the primary is the one youre going to get in general election. Does what work in the primary work in the general because these arent different themes than what hes been sounding for the last year and a half or whatever, john, and somehow, he was able to whether its media savvy or what, he figured out those were key themes for him to talk about. Youve got 70 wrong direction people. Youve got people noting that we havent really born the brunt yet of isis because theres fewer sympathizers here and we have the ocean. Thats after orlando and san bernardino, but those things dont look quite as bad as what france has had to undergo, but it is scary. A lot of people have taken note its been a while since there were actual assassinations of policeman and this sort of thing. Is he dark or is he reflects whats a dark period . I dont know. Well see whether they appeals to more than just what got him the republican nomination. Reporter well, joe, he does have a broad potential audience to work with in the numbers that you just cited. 70 of the people think were on the wrong track. Also highly negative opinions of Hillary Clinton. When he says her legacy the death, destruction, terrorism and weakness, there is an audience for that, but im just not sure that audience is broad enough to get him where he needs to go. Well, you know what, we have to throw out the playbook and all the pundits. One thing we may have learned is that nobody knows from what happened in that primary season. And, you know, maybe it doesnt nothing was going to be extrapolated to the big picture with trump. It was going to be a few states here and there and suddenly here we are. Were 016 on the challenges. Who knows. Reporter nobody, joe, can and i include myself first in line, can be overly confident in their ability to predict the course of this race. Exactly. Reporter theres no question about that, but the flip side of the discontent though is we do have an economy right now that is the strongest in the world. We do have unemployment now below 5 . We have a president of the United States, democratic president in line with Hillary Clinton despite all that negative feeling is over 50 in his approval. You cant extrapolate directly from the wrong track numbers and say everybody thinks things are terrible because if they did, president obama would have numbers you know, down in the 30s, which weve seen from other president s at the end of unsuccessful terms. I saw yesterday it was 49. Maybe that a composite poll youre looking at i think i saw one of those too. Reporter hes been in the 50, 51 range on the polling averages for a while. 90 democratics and he only had 80 before when there was the Bernie Sanders, but still very low on republicans. Right. The same token, the wrong track numbers are very heavily infused with republicans. Its everything is particularized in our politics right now. Think about if hillary is elected president , what i mean, think about the people that really have a negative opinion of Hillary Clinton and thats going be the president. Its going to be tough unite this country and have everyone says im backing this whomever it is. Whether its Hillary Clinton orthopedic donald trump to have team say im 100 behind what the president is going to do. Its impossible and thats unfortunate. Its going to be very, very difficult to govern and if Hillary Clinton is elected, she is quite unlikely to have a democratic house. She might have a democratic senate. Were going to see the same fighting that we have had. The question is, does she is there a mood in the country after this election and does she have the skill . She has shown some capacity to work with republicans in the past. Would she have the ability to make a coalition. Im pretty sure dump would face roadblock opposition from democrat democra democrats. The states that seem to be vulnerable for republicans the polls have those guys up a lot more than people thought. So i dont know. The way the American People. The republicans i talked to here at the convention, the people who do politics for a living, house senate races, theyre very gloomy about trumps prospects, but more upbeat than i had expected for prospects for holding the senate they think its going the be tight, but they pointed out for example rob portman is healthier than they expected. They think heavy investment behind kelly. Try to hold the seat in new hampshire. Pat tumy may be able to hold on in pennsylvania. The one who inspires the most pessimism is ron johnson in wisconsin. If in fact we get out of this twoweek Convention Period. If Hillary Clinton has a more successful convention, coming out of the Convention Period with a similar kind of lead we had before going into the Republican Convention in our nbc wall street journal point, five points with her doing well as i mentioned before, College Educated white women, enough to give her a clear edge, you may then see that republican money and energy start to flow down to those senate races in particular. House racesraces. And somehow the American People seem to set up some divided government. Seems to just work out that way sometimes. John, thank you. For more on next weeks Democratic Convention, lets bring in former governor gilmore. Hes a former gop president ial candidate and our friend democratic congressman jim hien of connecticut. We havent seen the congressman for a while. Welcome to your both. Good morning. Congressman, i go to you first. If it was next week, just because trump gave the longest speech in history, im going to ask governor gilmore what he thought of it. I thought it was a powerful speech. This is a time when the United States is looking for new leadership. They want change and i think donald trump projected that. He went through the litany of issues he believes, and, i believe, are of concern to the American People. The central theme was insecurity. A feeling of the American People that theyre not safe. He made the point about the murder of the Police Officers and we saw a mass murder of Police Officers. That makes people very insecure. The terrorist issues, job security, American People know that jobs are not plentiful. Job security is not good. I think he was talking to that. He was speaking to that. He was saying were going to have a better day when i become the president of the United States because im going to do something about it and hes the kind of personality that demonstrates he will. If youre not on a nshl tick national ticket, would you celebrate another Virginia Governor being on a ticket . You think its going to be tim kaine . Could you give me a thumbs up on that. Im going to ask congressman hiens in a second. I know senator cain. I like him personally. I dont think he adds much to the ticket. The only thing hes known for in the stenate is trying to get congress to declare war. I dont think he adds much, but he may help him in virginia. My job is to make sure we carry virginia for the ticket and im going to work very hard to do that. That was a low blow. Can you name any of Hillarys Senate accomplishments . Well, sure. You know, she spent a lifetime working in an affirmative way including in the senate and including by the way a secretary of state and trying to uplift children, whether its Early Childhood education, whether its, you know, equal pay, equal rights for women. This is a theme that has transcended not just her senate career, but when she was first lady when she took the lead on admittedly false start on health care. A long record of doing things and actually doing things. Not just saying shes going to do things as we heard last night, but actually doing things that advance the welfare of women and children and americans in particular. Do you have any insight congressman on what were going to hear today this afternoon in florida . Are you thinking are you handicapping to be senator cane . I have absolutely no insight. Thats an odd thought. I have to tell you, i am intrigued by the talk of admiral which i think profoundly respected military officer. A buy the who would bring some comply ter complimenty to the ticket. No inside information, but im intrigued by that as a polk. He was a good man. He was on the show last week. I thought we were down to kaine, vilsack and cory. I dont think it makes nit difference frankly. Trump last night was speaking to the anxiety and concerns of the American People. You know the country has not grown at the proper pace now 27 quarters weve underperformed. The last quarter was like. 08 growth. The people of the United States know the country is not growing by historical standards. Job security, young people not having opportunities. I think trump is speaking to working people in this country and speaking to resentment and suspicion the country is rigged. He said so. The fact is 21 over 60 of the American People think shes dishonest and the record of her Foreign Policy is not strong. People feel like were less secure now than we were. I think trump is speaking to that concern. Anger and resentment that people feel right now that has to have an outlet and i think trump is providing that voice. I would differ with the governor on that point. I have to tell you last nights speech i think hurt him very badly. Particularly coming right after the remarkable speech that his daughter gave and frankly i listened to that speech about Early Childhood education, standing up for women and then we got an hour of post apock lip tick, mad max. The country is in some bad place. The country is doing awful lot better than it was eight years ago. Most importantly i was hitting there shortly before i took my box of canned goods and weapon ri into my basement at one hour and 15 minutes, i was thinking what happened to ronald reagan. Here was a guy who stood before the country generally a tough time when we had a real law and order problem and real recession and said its mourning in america. I remember the grace and dignity who said here is where we can go. There are obviously people in the country who feel like theyve been a little bit left behind, but those people at the end of the day are not going to be motivated by a guy who stands up and tells them youre in a hellish ses pool. We should go back to reasonable doubt how different his approach was to the challenges this country faces how much more optimistic. Politics we talk about happy warriors. We heard last night was pretty much the darkest vision of this country and aauthoritarian glean. At the end of one hour and 15 minutes i a said where is ronald reagan. That was very stirring. Rememb i wasnt expecting it, but what do you think, jim. Were hearing the talking points for the dnc thats coming up. Heres the deal. The American People understand we have serious challenges. They understand the challenge were seeing of international terrorism. Theyre understanding the challenge that were seeing of insecure borders. Theyve been talking about this for quite a long time. And most importantly people know we do not have an affirmative growth policy in this country. Joe, you and i have been talking about it for years. We have not seen an affirmative growth policy all the language that comes over the democrats theyll see at their convention is antibusiness, antigrowth, and antiopportunity. I think trump is speaking to that. Weve been the best house in a bad i guess global neighborhood. Theyve already gone down that path, jim, and maybe some people like you think that we need to stop our slide down that euro path before it gets further. Gentlemen, thank you, i want to thank you you both. We have four months of this. Is that good . Four months to go. Its great. Its american democracy, but were seeing some sauces made. When we come back on squawk box. Well get you ready for the week ahead. Plus the busiest week of earning season. Dow components and 177 companies in the s p 500 all set to report. What you need to do to prepare. Coming up next. Its here, but its going by fast. The opportunity of the year is back the mercedesbenz summer event. Get to your dealer today for incredible onceaseason offers, and start firing up those grilles. Lease the c300 for 379 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Time now for our whats working series. Dow winning streak coming to an end, but a busy week coming up. Joining us now is chris. Welcome. Good morning. The. Thank you for having me. We talk about the dow snapping a nineday winning streak, but its really the s p 500 that matters as a broad indicator of the markets. By that gauge, are we still looking pretty healthy. 345rk9 markets arent going to just go to the sky. They are in a period postbrexit where weve had great recovery. Markets have been moving up on that wall of worry. Were in the middle of earnings season, which basically has been a little bit better so far, but on lower expectations. We do still see a positive return still Going Forward in the year. It wouldnt surprise us if theres some, you know, profit taking in the market so were going to be looking for opportunities and dislocations in the market and in companies with earnings, but, again, were looking for Good Management teams that can manage through these volatile times. Is the profit taking just a breather or potentially a plateau. I think theres rotation. Its not that the market is all going up across all sectors that we saw during the qe days over the last few years. Which is great for companies we saw bankruptcy, we see reallocation of capital. Were seeing that again in the markets here. Technology has been doing quite well, industrials are coming back a little bit. Were still on a slowgrowth environment. Im not saying were going back to 3 , but things are looking decedent for equities. Does that tell you at least somewhat based on whats happening in the market that was has been a largely hated rally is starting to change from a sentim