In the might be team take a look at what happened overnight in asia. Right now, asia closed up just slightly. The shanghai comp was down slightly. The hang sang up. 30 . Europe in the the early trading right now. See red arrows across the board. These are declines. Pretty mad rat. Basically a quarter percentage point decline across the board. If you check out crude oil prices big thing to watch yesterday. Crude oil up jed yesterday. Biggest jump in five months. After we saw that confirmation of the drawdown that had been suggested the night before, you see right now wti giving back a little gain. Decline of. 51. Breaking news out of north korea overnight that could be ralting markets this morning. The country claiming to have successfully tested a Nuclear War Head in what may have been most powerful detonation ever. South korean said it was the fifth test and had the impact of a ten killton explosion. President obama was briefed on that test aboard air force one. He said any provocative action would have series consequences. Chinas state run news agency a said the test was unwise and violated u. N. Es legal conclusions, but would be curious to see how markets think about this this morning. Soek is freaking out. Had to go home and leave early. You can understand that. We keep says huge rep you are cushions. Not sure what those are beyond sanctions at this point. Ten killton, thats stimatomic. They tried to el us it was hide gin last tiemt. Its enough. They claim it was hydrogen, which is you know, exponentially greater than atomic. I dont they got that technology. That guy is wow. Crazy. You read what goes on there. What was it last week, one of his lackeys looked bored at one of the speeches, dead. Dead. Off with his head. By the way. Id be dead like 100 times. Just this week. Does the market react or you think theres nothing to react to. I dont think this is it. Its all about the fed. What if they raise points. Nuclear bomb the one thing. What if they raise a quarter point. Lets keep our priorities straight, andrew. On todays economic agenda, july wholesale trade. Inventory forecast to rise slightly. Rosengren is a voter. Dont miss Steve Liesmans interview. That is at 10 00 a. M. Eastern. One topic for sure to be covered recommended that pair back wall street ability to own physical commodities and engage. Fed cautioned against behavior poses risk to the Financial System in 1999 lawmakers grant permission to morgan and Goldman Sachs to store and transport physical commodities. Fed wants to congress to revoke that. Surprise the Congress Also revoked the ability to make investments in nonfinancial companies. The fed said this would preclude to legal belief or operations of a company in its portfolio. The number of Bank Industry groups have protested that. Saying regulators havent provided a costbenefit analysis of justification for the change. Could have a big impact for a couple of big banks. Very complicated. A lot of them exited commodities anyway, didnt they. Some have pieces of it. Merchant banking to itself is not just a commodity business. Thats one business, but theres all sorts of other businesses theyve owned and Goldman Sachs has owned some of those businesses. You could make different argument accide arguments. Did you twla story. I didnt decide anything. You seem you knew what you were talking about. I chose i occasionally. Wow, this is detailed minutia. This is a serious issue. Look at the revenue. Its not an insignificant chunk for some of these banks. Theres another piece that the fed coming out with in terms of regulation around private equity, which is the other issue by the way in sorm papers this morning you can read about how theyre regulated. Private equity is loosening some restrictions. Some want to keep them and make them more restricted. So were going to be continuing to hear about this. Well hear more about this, joseph. Im going to study up on it. There was oo whole lot going on. Youre right. Th. Joseph was not convinced there was a lot going on. I said in the opening of the show theres a lot going on. Thats right. There is. Thank you. Look at these stocks. These are things youre going to want to keep an eye on. Shares of Restoration Hardware surging. Beating profit and sales expectations. Plus reaffirmed Earnings Guidance for the year. Check that out, up better than 12. 5 . Enterprise Product Partners is no longer pursuing a deal to merge. Saying it wit drhdrew offer bece of lack of engagement. Two samsung reports weighing on the strong. Faa warning travelers suggesting to them not to use the samsung note seven on planes. Those phones were recalled after complaints that the batteries can catch fire. Weird thing is the faa is just recommending this. Not saying you cant bring it on. They dont want you to check it or charge it because again it can start fires. Allowing to pay Cargo Handlers to remove goods. Around 14 billion in cargo has been tied up globally. I believe samsung has Something Like 38 million of its products that are stuck on these boats and some cases the boat haves been picked up and taken by creditors who want to make sure they get paid their money after h h hanjin declare ed bankruptcy. Samsung already said it causes fire. Right. If theres the slightest chance, but to tell you you cant tell people they cant. There will would have to be some type of law. Tell people they cant bring the hovercraft on. We told them you cant bring those on the planes. You were forbidden too. This was like a recommendation. If you have to, go ahead. Its weird. You know they say you cant do things like charge it. You cant do things like pick it up while youre on the actual plane, but we all know people who on the plane are using phones when theyre not supposed to. Right. Youre looking at me. Okay. Ive done it before too. I want the get to very last email. Somebody is cheating. Its coming. So ill put it in my pocket. And i get those last couple of tweets or which is sick and sad because theres never anything on the tweets that i need to see pu i dont want to miss them. Dont want to miss them. The dow and s p logging second negative session in a row. Nasdaq breaking a fourday winning streak. Joining us now katie stockton. And, you know, theres some shows episodic that are on tv and others that stand alone. I see you as providing an ep d episodic thing for squawk box. I remember the things youve been saying over the past six to nine months or so as a technician. I want to go back to the last couple of times you were on. Did the market sustain that upward move that you were looking for to indicate the near term we were going to head higher or are we failing once again. Where are we. It did already. If you rook at the s p 500, it confirmed the breakout if remember in july to a new alltime high. All we needed was consecutive closes above former resistance. Thats right around 21. 35. That breakout was confirmed. Does set a longterm bullish buy for the market. At the same time we song longterm momentum improve. We had monthly indicators negative since 2015 and just this month now turning positive with a slight lag on the back of that breakout. Indeed we got the breakout. Now were entering a bit of a consolidation phase. August was characterized by a tug of war on the sector front. We saw the defensive sectors really underperform and upside leadership from tech and financials held the market up. Now we see a little bit of a loss of leadership there, that sets us up for a bit of a pull back. People that follow fundamentals have their pros and cons. People with technicals have pros and cons as well. Every day talk about the flaws of fundamental buy side no, sell side guys. Theyre whole skill is in saying, you know, being able to see why it goes up or down. You just said, i mean, you have to go out on a limb, but youre out is when you say this was violated and so the technicals that were indicating a bullish move have be violated and no longer in effect. At this point youre saying were in a bullish phase. Bullish phase intermediate and longterm. Looking for more weakness shortterm and that should be an opportunity. What we can do next is focus on support levels as gauge of Downside Risk for individual stocks that have broken out and look to add exposure closer to those support level. Whats my key support level for the s p . Its right around 2100 h. I think it actually goes a bit lower than that. The 200 Day Moving Average is closer to 2060. I wouldnt rule that out, but it will be sort of fast, furious little pullback here. Can i ask what longterm, shortterm intermediate. What are you talking about roughly with those sorts of time frames. I tend to be pretty shortterm myself. Shortterm for me is days to weeks, intermediate term weeks to months, longterm beyond that. So to me the shortterm pull back could be two to three weeks in duration. So what is the intermediate and longterm target upside on the s p. The breakout that we did see in july yielded at a measured move, we call that, of about 2400 for the s p 500. Doesnt sound measured. No one thinks thats going to happen. So yeah, thats about 10 higher of course and, certainly, would dictate that bullish buy. So now what we want to do is make sure were in the right sector. That sector strength becomes important. Most recently even this week weve seen that rotation into energy. I think is pretty compelling. See that breakout in crude oil. Pending confirmation today. If we get that breakout, nrch is something people can act on even right away without waiting for that pullback. So, you know, even though you dont need to worry about fundamentals like the fed, i bet you have some technical viewpoints on the tenyear. Are we finally staying above 160 or maybe were right around there today, i think. Yes, i call it hovering. Hover tlg. Theres resistance if you want to call it that on the chart around 164. The important thing with the tenyear yield is to respect the longterm down trend channel that has been in place for decades and assume these up moves we see are counter trended nature. Without a breakout above this only 164 level, but the 200 Day Moving Average would be more convincing to me. Thats closer to 177. On the downside support around 139. Thats really final support. So you dont need to be emotional. I would be afraid to be her to be a Technical Analyst and say things on this show which no one else does of the guests we have. Were trend followers. I can think of a couple people. Theyre probably usually wrong. All right. Katie sticks her neck out. Were in a longterm downturn on yields. Longterm trend. Well have her back and see. Thanks, katie. All math. Our other guest on recently talking about math the other day. Its all math in a way based on assumptions. Going to talk twitter in a moment. Having their own math problems. Just how much time jack dor si still has left to turn that company around. Joining us now is robert. Editor of fast company. Fast companys cover story this month. Show it. There he is. The man, jack dor si. Picked the right guy this month or what. I hope so. Theres a lot of interesting things happening. A lot of interesting things happening at twitter also. Cranking. Its wild. Every day. Katie is great, by the way. She is just so smart. Clears all the nonsense away. I think thats what twitter is trying to do. Trying to clear some nonsense away around his company. Part of the nonsense orp the kmaj he has is the constant comparisons with facebook which is a comparison that he loses with every time. But its tougher and tougher. What is he going to do. So our staff spent a lot of time with the Management Team at twitter. The challenges how you find the strength the twitter has and lean into what those are. One of the key things he points to is something that happened last spring where twitter reclassified app on the app store from being in the social networking category well behind facebook and instagram and other to the news category where it was suddenly number one. This is an indication of trying to reframe what twitter is about. That sounds like dressing around the edges frankly. There are. There are strants. Im not saying twitter stock is suddenly going to move and make a ton of money in the next five minutes. There are strengths that twitter has as a business that they have not been able to make use of. There are strong groups affinity groups where a lot of activity and news happens on twitter. Theyre investment in Live Streaming the nfl. I know nfl season is starting. Theyre trying to define themselves as a different kind of media company. Multiple on a news Company Relative to a tech company or a social media company. I dont disagree with you. I think the conversation around the Board Meeting is are they going to put themselves up for sale. Is somebody going to buy them. If you look back, twitter went public too early. At the time they went in 2013, having a 10 billion valuation was like why not. Its time to go public. Now youve got Companies Like uber, airbnb. Much larger valuations still private. I was watching. I think it was melissa at five. The point was that twitter went public too late. A lot of the growth that the company had by the time it finally went public, it was a mature entity and all that growth and now if it was private, it might have a better if we werent looking at every detail, it might have a higher private market valuation and Public Market valuation. That was a guy was a good analyst. Maybe. I think their business is what it is. The valuation falls what the business actually sports and the question is where does the business strength really lie. If you look at the more analogous this is what jack is trying to do. Make them more analogous to say youtube, not really a social networking. You dont have to post videos to use youtube. You dont have to tweet to get value out of twitter. If they can make that work, they can generate more around it, but thats a transition theyre in. Thats where theyre not growing. Twitter is part of the conversation right now because of the election because donald trump udonald trump uses it so much. Nchl thing coming up. If there are this many concerns from the board and how you make it work now, this seems like this is their moment in terms of relevance. I think they have a longterm challenge about how to generate a different functionality for the company. Theyre in the process of trying to do that. Will the marketplace be patient enough or believe it enough, thats jacks job to prove. Can they keep people around, talented people around . So much of the compensation there is stockbased compensation. They do a nongap accounting thing. A lot of people dont like and people are moving away from the valley which will put pressure on how they approach that. I think a lot of Valley Companies have challenges once theyre mature. The number of people who are going to leave and go to places like uber and airbnb. Will he be on the cover where will jack dor si be in two years. Back on your cover as a poster boy for good or bad. I dont know whether im going to make that bet a this time. I think jack is a smart guy. Whether he can make this work, its a challenge. Thank you. Appreciate it. Thanks for having me. This months issue of fast company hitting the stands on monday this is friday. This is a sneak peak. Thats right. We have some for sale right here. Wow. Thank you, bob. When we come back, a startup that wants to replace your filing cabinet and keep your Important Documents secure. The crow will tell us how the Company Wants to be the dropbox for crucial files. Well tell you next. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Now businesses can get more out of their data. [engine revs] now businesses can get more out of their data. [cheering] the highly advanced audi a4. Im just a guy who wants [ clock titime. ]ruc you only have so much. Thats why we want to make sure you wont have to wait on hold. And you wont have to guess when well turn up. Because after all we should fit into your life. Not the other way around. Welcome back to squawk box. Chipotle has agreed to a financial settlement with more than 100 customers. Resolving the matters outside of court in an attempt to avoid long public battle and risk more attention to food safety issues. The terms of settlement not disclosed. Right now time for todays executive edge. A new Cloud StorageCompany Looking to replace filing cabinet at how many. Futurevault. Organizes documents from report cards for kids to bank statements. We have the ceo and founder joining us now. Thanks for having me. Lets get into the notion behind this. The idea is so many documents are now electronic that we get sent, even kids report cards, things like that. Unless you have some way of keeping track of it, it gets lost in the ether. Every day you think about it. We gt more and more innovated with documents. Think about where is your house deed, your life insurance, broker statements, bank accounts. Each entity is creating solution. One of my Money Managers sent a big email. So excited spent countless hours building this portal. The reality is i dont want to go to 40 different portals. I want to go to one spot and be able to store and manager it for the rest of my life. What happens, you go to the companies or schools and all of these different businesses and say use our portal and its an easier point to point. Our Business Model is b to b to c. Were going after the Financial Services. Banks, credit unions. Unions, accounting firms, law firms. Anybody with a direct relationship with the tend consumer. Right now delivering documents typically in point solution format. My view and our view is the company within five years, every Fi