Higher. Up by a quarter percent. The cac down by half a percent the ftse down slightly. After the friday night release of the European Bank stress tests, they were not nearly as stressful as some thought they should be. But you did see a lot of concerning things that came out of it. You can see unicredit is down by 7. 5 . Well find out how much it could impact the u. S. Markets in a few minutes. Lets check out crude oil prices because each though crude was up on friday, if you looked at last week, it was still down by over 2. 50. Oil sitting right around 41. 60. This morning, wti under additional pressure. That september contract right now is trading just above the 41 mark at 41. 07. Brent crude at 42. 93. It may be august, but things arent slowing down. Earnings and important Economic Data, all this as the dow starts the month on a sixmonth win streak. Today, we get the july ism Manufacturing Index. Tomorrow, june personal income and spending and your auto sales numbers. Wednesday it is the july adp report and ism services on thursday. The bank of england has the policy meeting. We get june factories orders finally the week is topped off by the july jobs report, the all important monthly payroll number. As for earnings central, the s p 500 report results this week, including pfizer, p and g, 21st century fox, tesla, viacom and others. A big transaction to talk about. Uber set to merge the china unit with rival Chinese Service didi. The combined chinese piece of it. Uber worth 60 billion. Eunice yoon has more in beijing. Eunice . Thanks so much, andrew. Didi under this new agreement is going to be acquiring all of ubers assets in china. That includes operations, the brand as well as the data. Investors in uber are going to get a 20 stake in the combined company, which is valued at 35 billion. In addition to that, didi is going to invest 1 billion in uber. Now that both companies have confirmed this agreement, it really does lay to rest the huge competition, the fierce competition between both of these companies. Both of the companies have been spending billions of dollars in subsidies to try to attract drivers as well as passengers. In fact, uber has already said that it spent 1 billion every year for the past two years in this country. The ceo just posted on facebook that the profitability element was the reason behind ubers decision. Now, at the same time, uber is pulling out of what could be a hugely lucrative market for it. It has a lot of potential. China just changed its regulations. So it made the ride sharing completely legal. But uber has been struggling to gain market share. The reason for that is that didi has been a formidable competitor. It has 80 of the market and also didi in the latest round of funding raised 7 billion. In addition to apple as being one of the backers, didi has the chinese sovereign well fund as a backer. Didi just pointed out that now it is the only Chinese Company that has all three major tech titans behind it as investors. Alibaba, ten set and baidu. A lot of competition taken away for both of these companies. Guys . Eunice quick question in terms of understanding antitrust laws in china or whether there are any. This would obviously combine just about everybody in this business, obviously the two other big guys became didi. This already happened the first merger. Now there wont be any competition. Is there any worry against china, the policy makers on this or no . You know, i was going to look into this as well. But im sure that there are regulations and antitrust regulations on the books. I dont know whether or not this is going to apply for this particular case. As you had said, there have been lots of different investors and its kind of unclear exactly whether or not the regulators are going to try to crackdown on this. I mean, there are some other smaller competitors out there. But its really difficult to say. What the other thing with this case that thats really interesting, its been raising concerns among those in the Tech Community that this could be the latest example of a foreign tech company that is going to suffer in in business environment. Because it had become more difficult for a lot of Foreign Tech Companies to operate because of the regulations as well as the chinese policies that tend to Favor National champions. Great. Thank you for that eunice. I should note because i talked to guys earlier. We were emailing about this, this morning. This could be considered a great thing for uber because, obviously, theyre not losing money. In terms of the overall uber valuation, which is 60plus billion. Part of the contingent of they were going to have a huge piece of china. A little over 5 in equity. 17. 7 of a preferred in this combined business. But the other piece of it, interestingly enough, two of the major investors are black rock and tiger global. There had been a lot of concern about both of them being involved in both of them. You have to assume today they are happy simply because theyre not losing money. The cover i its all paper. I would think the idea of competition, lowering at that point, were not going to be throwing good money after bad and continually losing money, you would think that would help the investors too. The cover story in the journal this morning is that when tech firms, to eunices point do well in china, like whack a mole. They get not just tech, who is winning . What u. S. Companies are really winning in china . In china . Can you automatically off the top of your said say you get response to that . If youre selling a lot of stuff, who is making a lot of profit . Every ceo we talk to, you talk to, its tough. Ibm and apple. Are they winning in. Not terribly losing. How about that. Thats the new winning. In other news this morning, reports say that tesla and solar city could announce their merger today. The two firms would then have to convince shareholders to back the combination. The move is part of tesla ceos elon musks socalled master plan. He wants to offer a Single Source of hardware to power electronic cars. Musk is the biggest shareholder in both tesla and solar city. We have black rock and tiger global, weve got musk here. Right. We had last week it was ellis sons oracle buying net suite. Nice work if you can get it. Squawk box to acquire power lunch. News at 11 00. Who signs off on that . Glaxosmithkline and Alphabet Life Sciences creating a new Company Worth 700 million focusing on fighting diseases by tarkting electrical signals in the body. Known as bioelectronics. Heres another story wooif been covering. Floridas Health Department is confirming that the first cases of zika that were likely caused by transmission of local mosquitoes in the local continental United States. Four people coming down with the virus probably contracted it in early july. The centers for Disease Control in florida Officials Say that the area of concern is limited to a square mile in the winwood neighborhood of miami. This is a downtown area where places are tightly packed. Its an Arts District type place. Where you see a lot of tourists who come in. Theyve been actively looking around trying to find mosquitoes that have the zika virus and they havent found any yet. Its no proof that it was not transmitsed by these mosquitoes. They say thats the most likely scenario. There are now 1600 cases in the continental United States. All the rest of them, we believe, are from travel abroad. Its just these four cases that have really spiked concerns. Despite the warnings that this was very likely to happen this year, Congress Left for vacation without appropriating a emergency funds to fight zika. Thats a huge problem because theyre now running out of funds to do this. In fact, some readers are now calling on congress to break their vacation, come back in and immediately appropriate some of the funding for this. By the way, think youre safe if youre not in miami. Theres a story in the New York Post that came in about how mosquitoes are swarming the subways of new york city. The warm and wet summer creating a bumper crop. Stagnant water a breeding ground for mosquitoes. Strap hangers seeing more than in the past. They swarm their eyes and nose when standing on the platforms. Thats going for us. A little bit of good news, its a different type of mosquito. Its a different type of mosquito. Not the 80s egyptee. There are others that carry the chikungunya and other viruses that goes all the west to california and north to maine. Thats a huge concern. Becky quick, hobby entomologists. I have concerns about all of these issues. Let me just zika expert. Is there anybody knows how much rain weve had . Its got to be a record. Nobody cares. Its rained every day. Youve got bugs everywhere. And congress is on vacation without putting the funding through for this. Fantastic. Here we go. We enter august on a sixmonth winning streak for the dow. The longest streak in three years. Futures indicating we should start higher. Nothing off the charts. But in the green nonetheless. European markets mixed. Germany up a little bit. France down a little bit. Oil quickly becoming the big market story once again. It is down again this morning. Nearly breaking below 41 per barrel. Were at 41. 11 guys. Its gotten whacked in the last couple of weeks. The tenyear yield, were at 1. 47 . Maybe time to get the refi ready again. Stronger against the yen and gold is mildly lower. Lets get a breakdown of what to expect in the week ahead in the marketsment joining us is jim tierney abcio. Allen, why do they do it that way . They put a little slice in the middle. Good morning. Good morning. Ubs owe portfolio manager. I dont know if you saw. There was a report out last week. This was something that i wanted to specifically ask you about. Our friend leon cooperman who has been the show for many years saying that when it comes to the s p 500, right now he thinks by the end of the year, its up ends up 8 . That means if where we are today, up about 6 , weve got 2 to go. Do you agree with this or disagree with this . I think the people are talking about a goldilocks snare dwroe scenario for stocks. You have a Federal Reserve not worrying about the event of the day and going back to the original plan. The Interest Rate environment can help the stock market. But you have black swans. The crude oil story, the mosquitoes, the combination if Oil Continues to go down, it will take the stock market down too . Most people priced in a 40 or 50 range in crude oil. If you break down below that range, you have a new world. Theyve talked about the transient effect. When does it become permanent . Where do you stand on all this . I think weve come really far really fast. Whats most interesting about the market is there has to be a change in the leadership groups. What led us in the first half, utilities, telecom and cyclicals, give way to health care and technology. When you look at the earnings last week, earnings were great. Why do you think were expecting a pullback . Up 9 since brexit. Up 20 since the february lows. Thats a pretty good move. Were 17, 17 and a half times earnings. Does that mean youre sitting waiting for this to go down . Weve sold a few things selectively. A little more than normal. Andrew, the concern that you have lower Interest Rates and that might be driving the earnings. I havent seen any studies that really break down what percentage of earnings are related directly to the Interest Rate environment. The fed starts to raise Interest Rates if you have another rate rant like a taper tantrum. You have Interest Rates go up quickly. We have to be careful of that at the same time. Isnt the reason the stock market has been going up because Interest Rates are so low and theres no other place to find yield. You could very likely see multiple expand if youre looking at comparative other place toss put your money that youre just not going to get any return . I think thats the exact issue. At the end of the day, this is supposed to be a market of stocks where companies have good earnings based on what theyre doing as companies. Not exclusively because Interest Rates are low. I think one of the key issues is, people are forecasting 134 of s p earnings for next year. If we do that, that represents 17. 5 growth year over year. I dont think theres a chance in the world we get there. With 1 gdp which is what we did in the first half, numbers have to come down. Oil back to the key point. Doesnt help. 40 doesnt help if Oil Goes Back to 45 or 50, its a different story. Were down 20 from the highs of crude oil. Its tough to see how we get double digit Earnings Growth next year. The gdp number got a lot of attention for being, quote, bad. The consumer part was better than expected. Consumer is 70 to 74 of total spending. I mean, can the consumer rescue this stock market . I think the consumer has been rescuing the stock market. Gasoline prices are going to fall yet again. That helps. Filled up for 40 this weekend. That was great. It doesnt get you look at the layoffs. Weve seen bigger layoff announcements. Caterpillar talked about layoffs. If you soo he that build, that takes the underpinning of the entire market away in terms of the consumer gets weaker. I think a big question is, you see the Federal Reserve over and over again, saying that Business Investments have been soft. Why is that . Why arent businesses spending in this environment where its so low . I think people have concerns about a new brexit. Brexit, i think, is a troubling thing in the sense that it was over so fast. This was saying that everyone was nervous about and then it happened and in two days, the whole story is over. Whats the next thing . I think the resolve that the Federal Reserve has coming out of brexit can be unease eye. Theres a Coalition Building in the house of lords in the uk to try to block the brexit. Basically, their congress for lack of a better term, their senate is trying to come together and find a legal strategy to block the brexit. Lets say it succeeds and we get headlines, brexit off. What would that mean for our viewers and their money . I dont know enough about the political process to tell you what the ramifications of that. Lets say theres no brexit. Brexit is on right now and doesnt seem to be hurting the markets. So if there is no brexit, would that be a leg up sh. You have to divide it between short term effects and longterm effects. Theyre concerned about the impact on england will be. England is 4 of the global economy. What is the impact of that. I think brexit is one of a number of things that can change things going on in the market. Jim and alan, thanks very much. Coming up, it was a weekend of donald trump. The gop candidate kicking off controversy with the nfl, billionaire mark cuban sounding off on it and cuban also making his pick for november and guess what . Its not trump. Plus, jimmy walker was dynamite. The 37yearold golfer capturing his first major. First, this day in history. Its a golden opportunity to experience breathtaking lexus performance in streetlegal form. For a limited time get great offers on our complete line of f sport performance vehicles. At the lexus golden opportunity sales event. Gain the freedom to fumble with the new water and shatterresistant Samsung Galaxy s7 active. Exclusively at at t. And im just a guy who wantsants to sell him that truck. Ck. So i used truecar. It told me what other people in the area paid for the truck i want. And because were a truecar certified dealership, i already know the truck he wants. So were on the same page before he even gets here. Its fair. And its fast. Look good . Looks great. This is how car buying was always meant to be. This is truecar. Welcome back toe squawk box. Jimmy walker was dynamite at the pga championship this weeken. Dino might. The first major title. A huge birdie putt on 17. It was enough to fend off jason day. Day amped up the game by sinking an eagle at 18. The check should provide some good times. This was amazing. Did you watch the end of this last night . Unlike the guy that im filling in for, i dont like golf. I dont like to play it or watch it. There was more spends in this. I am not a huge golf fan but it was amazing. It was down to the last shot. He controlled his destiny as long as he made at that final paragraph 5. You talk about trying to hit some of these putts. He hit one into the rough right before. Pulled it off and held his cool for all of it. I was watching the honda 200 on nbc sports network. Good plug. That was on cnbc and the formula one race that was how i spent my day. Lets talk politics. I can give you tv if you want. The commission on president ial debates rejecting Donald Trumps complaints that two of the three debates scheduled to take place during the nfl games this fall. The first conflicts with a monday night Football Game and the second one with a sunday night game. On interview, trump accused clinton of rigging the debate schedule. I got a letter from the nfl saying this is ridiculous. The nfl doesnt want to go against the debates because theyll be pretty massive from what i understand. I dont think we should be against the nfl. I dont know how the dates were picked. I dont know why those particular dates. You dont like the dates Hillary Clinton wants to be against the nfl. Like she did with Bernie Sanders where they were on saturday nights when nobody is home. The commissioner says its impossible to avoid all sporting events when it picks dates. The nfl sent him a letter regarding the scheduling conflict after the league said it never sent the letter. The dates were picked by the commission a year ago. September 2015. Before the nfl deci