Higher. Slightly. Call it almost flat. France is higher by 2 points. Oil prices have been moving higher on a report suggesting that russia is in talks with saudi arabia. Others about achieving market stability. Crude had a strong were falling a developing story out jfk airport. Multiple agencies responding to the airport after a report that shots had been fired. After arriving on the scene, authorities said there was no gunfire. The nypd declaring on twitter that all terminals were searched and cleared and no shots fired. They believe the woman who reported it misinterpreted clapping and banging from people watching the Olympic Games. Incident in the mall where people had fireworks. They were watching usain bolt last night. It was amazing. I did get to see a lot of it last week. Its all been really great. The swimming. Katie ledecky, wasnt she amazing . Shes that solo swimmer. I tuned into the end of that. Golf turned out great. I think some of the guys that didnt go were like oh, man watching kuchar who won a bronze. He says his chest was bursting with pride. Never felt anything like that. Justin rose and andy murray, wilfred, golf and tennis, the brits do very well with golf and tennis. When is cricket. Hes going to join us at 7 00. Looking forward to that. Knows what hes up against. Did you read this article in the journal about why theyre breaking so many records in swimming . Partially go pro. Because you can put the camera underwater and immediately correct your stroke after your one lane. Change your stroke. Interesting. And the pools have gotten faster. Theres new technology for pools that changes the rate of displacement so you get a more still pool as you swim. Like a speedboat goes faster in stillwater versus choppy water. Ditto to pool. Here to foredepending on which lane you were in mattered. Were going to get down to my buddy. Andrew ross sorkin. The intrepid global in brazil. Were going to talk olympic. Andrew, what did we have search straight weeks, who has been saying the market is going higher. Maybe she wont come on here anymore. Am i right or am i right . Did the markets go up after brexit or not, sorks . The markets have gone up after brexit. When joe is right, hes right. Welcome back from vacation joseph. Thank you. We missed you. I get back and youre gone. Is that by design . Thats the way it goes. Ill be back. In the meantime, let me tell you whats going on. You guys were talking about swimming and making a lot of headlines for two very different reasons. This morning, lets get right to it. Over the weekend, as you mentioned, four members of the mens Team Including ryan lochte were held at gun point after the taxi they were riding in by a group posing at police. Billy bush spoke with lochte not long after the incident. Who were you with . What time of night . Who pulled you over . I was with a couple swimmers coming back from we got pulled over in our taxi. These guys came out with a badge, a police badge. No lights. No nothing. Just a police badge. They pulled us over. They pulled out their guns. They told the other swimmers to get down on the ground. They got down on the ground. I refused. I was like we didnt do anything wrong. So im not getting down on the ground. The guy pulled out his gun. He cocked it. Put it to my forehead and said i put my hands up. I was like whatever. He took our money, he took my wallet and then and that investigation is continuing, guys. We interviewed a number of his teammates just yesterday. And i asked him over the next couple of days that youre here, are you going to change the security protocols, how people are operating around here. Everybody said no. Seems to imply an suggestion that he wasnt. Meaning that he wasnt following whatever those protocols were. Were going to be hearing a lot more about that story over the next couple of days. In the meantime, the other this is a feel good headline from the u. S. Swimming team. More gold dominating. First with the winning winning the gold. Saturday evening it was quite extraordinary for team usa and olympic history taking the top spot in the 4x100 medley relay. We had no idea until we did post race interviews and they told us that we were the 1,000th gold medal. Doing it in relay fashion is something that team usa culture is all about. Doing everything as a team. I think that was the greatest honor to win the 1,000th gold for usa on a relay. Hanging with simone was pretty cool. Well show you more tape from that interview in a little bit. Including joe, something youll find fun. Well show you what were doing now. Michael phelps marking what he says is end of his olympic career by helping the men bring home the gold in the relay. That was fantastic. It was pretty great. It was pretty great to be there in person. . The meantime, look at the current medal standings. Usa on top followed by china. And great britain. When willf comesn you can give him that. In the meantime, i should tell you in the next hour, well talk olympic spending, how much visitors are bringing to brazil, how much theyre spending and what theyre buying. Heres a hint. I am wearing one of them on my feet. Well show you that in just a little bit. I was going to say. Thats the tease. Part of the tease, guys. Plus, later on squawk, got a oneonone interview with u. S. Womens swimming superstar Katie Ledecky which was a great and cool thing to do as well, guys. Yeah. That was all justin rose . Just for you joseph, im going to go see justin later today and try to bring you that interview tomorrow. Sniel. Cool. He was on a couple weeks ago. So many highlights, andrew, that i dont know where to start. Usain bolt was amazing. Getting back to you. By the way, i know youre feeling the same type of angst about the disparity, the wealth disparity in the medals. As a globalist, im not sure how to deal with that . There should be redistribution. Should giveaway too much nationalism. Way too much of that. Too much with the rich cup tris getting too many medals. Im sure the president is looking at this. Whats amazing, joe, its almost all government supported teams. Were all private supported teams. Compared tolet say davos, how are your similar, joseph. The size of soap is similar. Do you remember how type i that little soap is in davos . Yeah. This one might be smaller. The room itself weve been eating our way through the city. Weve done more interviews with more gold medal winners. I got some of gold to hang on myself. We might have shots of that. Talking about that inequality. And we have all sorts of tape well be rolling out the rest of the week from some pretty fun stuff we did over the weekend. You know what else has gotten me, andrew. I have loved every minute. Ive been able to watch. I could stay up and watch this stuff. I dont know if ive enjoyed the olympics more. The media loves to down from its either heres what it is. Its either people are watching different ways with streaming or its the stupid millennials, maybe they dont even all their people are the ones winning all these things. Are they not watching, andrew . Joseph, theyre watching. 1. 5 billion streams. Thats all you need to know. Thats the number to focus on. I have to say, just coming down here and kudos to nbc. Its such an logistically, whats going on here is an amazing operation. Its sort of a remarkable thing. You did not have to say that about nbc. Far be it for you i legitimately say that as just a newbie down here at the olympics. Theres so many people who have been up early this morning. Amazing. Record revenue and record profits from all of us. The revenues people oh, no no no. I think theyre watching online. Youve been reading the scuttlebutt in the press. Panic, panic. The ratings are down. The media, andrew lets not talk about the media. Media bashing is getting old. Thank you, andrew. More from you later. See you in a bit, my friend. In a little while. I want to see that Katie Ledecky interview. Awesome. Were going to do that in the 7 00. Excellent. Andrew, you were like facetious about me. You heard me with the markets. Were going to talk about them now. You finally decided whatever youre feeling, youre going to just do the unconventional thing. Do the opposite. Correct. Ive been telling you that for five years. Whatever the opposite. Im unwilling to call it the trump rally. Given the polls, though. Can i say that . Touche. Were not moving up as quickly with the close. Lets take a look at whats going on. Did you see the peso . Its getting stronger because Hillary Clinton is in the lead. Thats great. I hope everybody is that true . Everybodys wealth in mexico is going up because of hillary. Great for us. Lets look at the markets. Head of Merrill Lynchs strategy. Steve whiting, citis private bank, chief investment strategist. The last few times youve been on, you were you didnt argue with me that maybe stocks are going to be okay. No. I did not. Heres the thing. The markets won a gold medal. Youve got a triple crush. Youve got the s p, the nasdaq and the dow all hitting record alltime highs. You had that ready to go at like 4 00 a. M. This morning. Do you want to know the markets won a gold medal. The markets want to fight for a gold. Is that in one of your pieces . No. I didnt. You just talked about the olympics. Will they continue to perform well on the balance beam . Heres the thing, joe. Obviously the trend in the markets is up. But you have the volatility incompetent decks sta index to get to weve been talking about episodic volatility. Youve had it in spades this year. Although we do see markets trending higher, we do think that you can get pullbacks from time to time and they can be violent. Its really about how to position cliept portfolios over the next five years. A lot of uncertainty. I love. Thats the new buzzword for the strategists. Do they ever need i was going to say do they cover their all the time. Sometimes a certainty goes down and we feel exuberant. This is maybe a little bit one of those times. Weve come so far from 08, 09. Maybe we should be worried about whats going on. Convergence with zero Interest Rates, all these markets outside the United States, yield 2, 3 basis points out for ten years. We have all this income producing assets in the United States and europe which you saw was up nicely. Government bond yields across all maturities around zero. These incomes want to rise in value. So thats one. Reasons why there are so many skeptics of the rally, right . Dont see it as fundamentals. Low volatility. To your point, it gets people worried. Its not growth. Its not sort of this notion that we have this massive runway which we can take off on with lots and lots of years of strong growth and high eps growth and were depressed now. We can get to some better place. This is valuing the same income stream of fairly static income stream from here on at a higher level. Yes, we will have a little how long can that go on for . Thats a very good question. Or how long can that go on . It can go on a pretty long time. The divergences across markets are so great. We went from depressed markets with a long, long way back and have big diverges of cross markets. Look at brazilian bond yields, why should they these different markets can diverge and converge again. Thats a big new trend for a while. Heres the thing. You have the world essentially at zero. 30 of global sovereign bond have that allows investors to take risk. Bonds and equities have flipped. Bonds are really being priced for price return not income. Were going more and more to the stock market for income for our clients. Theres been literally a flip. That doesnt make you nervous . When you say that allows investors, it pushes investors. It forces investors. Right . It doesnt make you nervous that that flip has happened and that people are reaching for yield in places that normally would seem very risky and crazy . It doesnt make me nervous. When we look under the umbrella of a transforming world and look at the longterm things, looking at the baby boomers, how theyre going to drive our economy, drive health care, they have a 15 trillion economy. Theyre spending. Theyre spending on hospitality and leisure. You also have innovation. And innovation in the digital era where things are progressing at a faster and faster pace. Then you have the millennials. Whatever joe wants to say about them, theyre still a very large demographic. All great things. Why isnt gdp why do we ratchet it down every quarter . Are we missing something that absolutely not. This is why the world is so confused. We just lowered our gdp numbers again. We think this year we can be about 1. 5 . Which is the lowest since the 08, 09 period. The problem is the zero Interest Rate. Each though were still growing, albeit extremely slow. When you look at the rest of the world, were one of the most attractive places to be, especially when looking at our banging system. Europe is trying to recover, but they have issues with their banking system. Emerging markets, if theres value within the marketplace on the equity side, theres value. Keep your money in the u. S. Stock market. Its going up from here . We still think episodic volatility. Trends are higher. It doesnt mean that well be at new highs by the end of the year. But theres no other place. Tina does exist. There is no alternative. Four years now of emerging markets. Being since 2011, weve had a deep underperformance. There are spots that havent had a massive rally. This includes the sector where we are 65 off. Where investment is down 60 . Youre suggesting this is a scenario to put money in . We think so. That is a recovery place. The only big industry in the world that is in recession. That has come off substantially and there are trillions of dollars of asset highly correlated to this. Some of the places where yields are high. That will move some money. Episodic volatility. What youre saying is were going higher but it wont be straight up . Correct. Its going to joey never use an adjective in front of volatility in my life. Volatility was volatility. This is the first year were using a term called episodic. Who is we . Our firm. You guys came up with this . Bank of america, merrill lynch. I love that. In a meeting . Youre all talking and someone said lets call it episodic volatility, uhhuh. Wow. Yes and no. Some of the technological incompetent ovations has changed. Is this merrill. Bank of america, merrill lynch. Merger, correct. Were all one family now, joe. Youre not really more merrill than bank of america. Were both and u. S. Trust. Im merrill lynch. Im merrill lynch. Im very proud of that. Definitely the thundering herd. You worked at merrill. I did. Thats what im saying. Mother merrill. Thank you. Were going to talk about your nails during the break. Nail polish. Shimmery. All the olympians have cool nail polish. New polls show Hillary Clinton holding lead over donald trump in key battle states. Trump is stepping up coverage of media put it on afterwards . The first stock index musicwas createdughout over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Welcome back. Now to politics. If trump doesnt change his act by labor day, the gop should write off the nominee as hopeless an focus on salvaging the senate and house and other down ballot races. John harwood joins us from new mexico with more. John . Reporter michelle, that editorial captures the mood among republicans right now, which increasingly is what do we do about donald trump . Hes trailing nationally, hes trailing in the battleground states and he keeps behaving in ways that cause other republicans, like his running mate mike pence to act to limit the damage. Are you the cleanup crew . I couldnt be more honored to be campaigning shoulder to shoulder with a man i believe will be the next president of the United States. You do have to clean up and explain some of the things he says. We have different styles. But as i told that little boy, we have exactly the same convictions. Donald trump says its the medias fault, that he stays on message but the media distorts his words. Other republicans arent looking at it that way. Theyre increasingly concerned about the prospects for holding on to the majority in the senate. Heres Jeff Sessions a close ally of trump. Its going to be a battle. Were so exposed. We have three Times Republican incumbent up as democrats. Its going to be a battle. Reporter and the question is that wall street journal editorial posed is, do the republicans, the national committee, the big donors, do they steer money away from trump on the theory that hes a lost cause and put it into senate race toss hold the senate. House races to hold the rye app House Majority and do they members on the campaign trail go out and explicitly cast themselves as running to be a check on Hillary Clinton, which of course would presume that donald trump is not going to win, guys. John, the down ballot races and stuff, a lot of the stuff, when youre haeg it from certain people hearing it from certain people, its not new. Four months ago we had frato in here. There was no way he was getting on board with trump and im worried about the senate and down ballot races. The wall street journal, the Editorial Board had the same tune all along. Never been on the trump train either. I understand thats why you have to separate out, are these people that used to be fully on board that are now saying this this or people saying it all along . Theres a large contingent of mainstream Establishment Republicans that going back a year and a half have been sort of saying the same tune. Whether its actually being away for two weeks, john, it does it really is sort of energizing and refreshing. I could look at a twitter feed if i wanted to but i didnt necessarily have to and i didnt have to watch cable. You know what i mean . Except for cnbc. I know what you mean. I only tweeted a couple things. One thing that i did tweet was, the eighth wonder of the modern world. This is a quote that i tweeted. The laser focus coverage of what trump says versus what the clintons do. You think thats an unfair characterization . Reporter well, i think that donald trump is helping to make that a reality by his behavior. People are covering issues involving Hillary Clinton but donald trump draws so much attention to himself, whether its by design or accidentally. Its not what hes doing. Its what hes saying. Weve got really good stuff to look at for what hillary and bill have done. But its like that cartoon where theres a media scrum a