Dow futures up by almost 65 points s p up by five and a half, nasdaq up 24 comes after a week we saw gains in the markets take a look at what happened overnight in asia. Green arrow there as well indicating it was up only onetenth of 1 . Hang seng up and shanghai up. In europe, more of the same, gains across the board dax, and france, cac up by almost 1 . Check out crude Oil Prices Oil down by almost 2. This morning up 31 cents we have seen a big take down in gas prices here are big stories this morning. Shares of nestle sharply higher, at record high after activist investor dan loeb announce stake in the company theyre erjing nestle to improve margins, shed noncore businesses earlier nestle considered sale of the confectionary division. Argues nestle should sell 23 stake in the cosmetics maker loreal. Shares at an alltime high today as well. In auto news, the company at the center of the biggest safety recall in history filed for bankruptcy takata saying it would be bought for 1. 6 billion by u. S. Based key Safety Systems they face tens of billions of dollars in costs and liabilities from a decade of recalls and lawsuits stemming from the faulty air bags. Those defects linked to more than a dozen deaths globally michigan based key Safety Systems agreed to take over their viable operations while the remaining operations will be reorganized to continue to make millions of replacement air bag filters. The two companies are expected to complete the sale in coming weeks. Takata ceo will resign when timing of restructuring is set in europe, italian banks trading higher on news the Italian Government agreed to wind down two troubled regional lenders. The deal could cost 17 billion euros. Facebook is going hollywood. Social media giant talking to Hollywood Studios about producing television quality shows. The journal says facebook is hoping to launch its original programming by late summer and is willing to commit to production as high as 3 million an episode no surprise where youve seen amazon get into this, all kinds of content creation. Probably good news for content creators another budget willing to pay for it. Meantime, several ohio government websites hacked with proisis messages sunday morning. At least seven government sites displayed messages supporting isis, criticizing President Donald Trump among sites hacked, Ohio Governor and first ladys pages, state office of corrections, medicaid and casinos state Officials Say no personal information had been compromised by the hack, but that all effected servers had to be taken off line messages posted said in part you will be held accountable, you and all your people for every drop of blood flowing in muslim countries. It is not just there, brook haven websites were disabled, too. Sounds like it is a widespread issue. Just this idea that this is spreading the way it is, a little disconcerting. Yeah. I have to say when i first heard isis hacking situation, it is not websites i started thinking about, lower key on this than other situations were seeing for sure. Sadly, i thought took this long didnt happen sooner right. Republicans in the senate are looking to rally members for a vote on Health Care Reform this week, but it has been a tough sell so far. The longer this bill is out there, the more republicans seem to have problems with it thats right. This is crunch week for Mitch Mcconnell and Senate Republicans. Trying to pass the bill by end of the week, revealed it last week after drafting it in secret, attracted criticism from democrats. Nonetheless, they have a situation where they can only afford to lose two republican votes, theyre not going to get any democrats doesnt look like, thats the margin for error. Now we have five or six republican senators expressed reservations, concerns, or said theyre against the bill that led donald trump to lobby for the bill heres what he said. He said i cannot imagine these very fine republican senators would allow the American People to suffer a broken obamacare any longer also he said democrats slammed Gop Health Care proposal as obamacare premiums and deductibles increase by over 100 remember, keep your doctor, keep your plan. The president trying very much to put pressure on republicans up on the hill to do the right thing for him and for the party but are caught in a situation where everything Mitch Mcconnell adds for moderates in terms of Medicaid Expansion, might lose conservative votes on the other side of the see saw, it is a delicate balancing act going into the rest of the week. Thats something to watch. Also to watch this week, the russia Investigation Continues to tick along. We saw over the weekend the president taking to twitter, making this argument and Kellyanne Conway on television making the argument that it is the Obama Administration and the democrats who were to blame for allowing the situation to get out of control last year in terms of russian hacking of the election heres what Kellyanne Conway said over the weekend. The Obama Administration was responsible for doing absolutely nothing from august to january with the knowledge that russia was hacking into our election, they did absolutely nothing. Theyre responsible for this nobody has any evidence of collusion or evidence that the president was under investigation for this we also saw the president tweet a similar sentiment. Seems to be a new line of argument the Trump Administration will take forward, which is if this was so severe and a problem, why didnt the previous president do more about it you started to see democrats come out and agree with that thats one area of bipartisan harmony in washington, guys. Everyone upset with the Obama Administration for how they handled this last year lets go back to looking at the Health Care Bill and just the count on that. I hear different counts of how many republicans are opposed i heard five or six conservatives have gone on record that theyre not in favor of it, wont vote for it Susan Collins saying she counted seven moderates who werent in favor of it either that gets you to 12. Talking about 6 hold outs, 12 . I think talking 5 to 6 now. But numbers can be squishy depends what you count i object to this or that major piece of the bill, but assume they could be brought along. Theres a school of thought that Mitch Mcconnell who knows what he is doing in the senate left some holes in the bill as it was drafted because he knew the holes were things republican senators wanted. The idea being that he would let them go to the floor with amendments to then fix the bill and take credit for it with their constituents and say i fixed it, patched it, put in things that are important to our state, therefore i forward the bill this is mcconnells way allowing them to express reservations, get involved, make the patch. And declare a victory to constituents somebody like Susan Collins says you cut 800 billion out of medicaid, no way youre not effecting Nursing Homes, rural Nursing Homes that are in her state. How do you fix the idea of the 800 billion hole. How do you fix that . Thats Mitch Mcconnells problem. I dont know how you fix it. You have states like alaska where Lisa Murkowski says they have High Health Care costs in alaska, she wants allowances made for that state, particularly when it comes to medicaid, talking about closing Nursing Homes around the country or evicting people in Nursing Homes. Thats political dynamite. Thats a real problem for senators, voted for a bill that might do that. How does mcconnell assure them thats not going to happen what does he change in the bill during the course of the week. Youll see a cbo score likely today, may see a tweaked version come out today as well watch all of this carefully this week nobody knows outside mcconnells office how he plans to get it done, see if he can do it. He is a master legislator. I dont know the ins and outs i heard some say it has 50 50 shot others say 60 40 how would you run the odds i think 40 60 they have a chance of passing it, but it is a tough, uphill climb, the margin so small and school of thought here that says what mcconnell wants to do is pass it or have it fail either way, then republicans can move on to the rest of their Agenda Health care was dominating republican legislative agenda since earlier this year, was a real problem in the house, finally able to get it done in the house. If mcconnell passes it, the house members will be under enormous pressure to go along with the republican bill in the senate, despite all their concerns and infighting on the house side, the idea they spent seven years campaigning against obamacare and finally have an opportunity to push through replacement, i think a lot of Republican House members will take it. If it gets to the senate, i think it will get to the president s desk for signature. Thank you so much you bet. By the way, a big lineup later this morning guest host at 7 00 a. M. , Heidi Heitkamp we talk to her about all these issues and some things happening in her state, energy is a big issue there. We will talk about whats happening with the energy complex. Then at 8 00 a. M. , senator rob portman, republican from ohio joining us, will be guest host for that. Back to the broader markets, joining me, director of fidelity investments. Great to have you with us. Good morning want to ask you about one of the biggest events in the markets, that was decline in crude. We saw crude oil down 4. 4 what does this drop in crude tell us, especially since we are at the height of summer driving season, we are back at levels on crude prenovember opec production cuts. I think that clients in crude oil are really specific to energy and not representative of larger sort of repatching commodities. My favorite cater is cod raw industrials, which is a good proxy for the Global Economy thats been holding in very well i wouldnt read too much into Energy Weakness as an indicator of week driving. Energy has things going on Inflation Expectations all but disappeared from markets energy is one place they have gone to hedge against inflation. Well, it is not just drop in crude oil we have seen, but effectively decline in down 4 or something. On top of that, these are not Warning Signals to Equity Investors . The decline in copper and iron or is certainly tied to china slogan tightening policy those commodities are up well from their 2016 lows certainly the u curve is a risk, has been flattening. Inverted curve in the past is good predictor of recessions, that pris us to a disconnect between where the fed is and where markets are. Fed is implying another 7 hikes in the next two years. Granted, some hikes could be in the form of Balance Sheet reduction. Markets only expect one and a half more hikes in two years if the fed is right, tightens more than the market expects, we could get to that inverted curve. Thats historically a big risk factor for the market. Past few years, more often than not, fed lowering stocks rather than raising you spoke about this idea that Inflation Expectations are pretty much nonexistent at this point. You look at the difference between normal Treasury Bonds long term versus inflation adjusted counter parts and expectations for inflation keep falling. Commodities are part of the picture, also people are buying up bonds and stocks at record highs. Somebody is going to be wrong in this equation in weeks or months who will it be stock investors or bond Market Investors pouring money into treasury wrong in the next few weeks and months hi, dom, how are you. I think right now were in the ultimate goldilocks environment. Since february of 2016 when the global cycle bought, s p up 27, 28 , volatility, standard deviation of those returns running about 7, which is half the normal, and against that backdrop ten yearyearold at 2. 2 or so yields down from post election high but most of that is Inflation Expectation. If the decline in yields was driven by decline in real rates, i would be concerned equities are being mispriced. Because it is Inflation Expectation not real rates coming down, that creates more benign backdrop. Markets have the best of all worlds Interest Rates are low, inflation is low fed is in do no harm mode. We assume that it is earnings grow double digits. Q 1 up 4 . Q 2 earnings outperforming typical tendency to drift lower into earnings season which starts in a few weeks. By my measure, q 2 earnings could be up 10 as well. While that lasts, it is a pretty good deal for investors. Thanks. Volatility will jump up but we dont know when thanks. Dom sticking around the rest of the hour. When we return, golfer Phil Mickelson is here. His foundation helping fund kpmg future Leaders Program to inspire talented young women he is joining us on the squawk box set next here on squawk box. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of 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 . Why invest in average . [ light music playing ] youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the c300 for 399 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Welcome back Associated Press and he can wi lar says female ceos made more than male counterparts in terms of pay there are far more women ceos in the United States. Developments like recent upheaval at uber show challenges women face in the workplace. Joining us for an effort to bolster women in business and life, lynn dowdy, u. S. Chairman and ceo at kpmg, joined by special guest Phil Mickelson, professional golfer, five time major championship winner. Thank you both for being here today. It is great to see you this early in the morning. Thank you for having us. The reason were here talking about this is because of a series of scholarships youre funding and phil, you and your wife amy kicked in to boost those scholarships as well you want to talk about that first . Love to at kpmg, were passionate about Lifelong Learning. This is one program as part of that ambition. So the kpmg future Leaders Program is providing scholarships to girls in high school help them get started in College CareerLeadership Development done at Stanford University that Condoleezza Rice and her team are putting on then they have ongoing mentorship from women that are part of the leadership summit this week at the pga championship it is a continuation of providing Lifelong Learning to everyone to reach full potential. Phil and amy through the foundation allow us to provide even more scholarships this year 36 young women are going to college because of this program, and it is not just scholarships, it is this opportunity to have mentoring as well as Leadership Development and an introduction to golf as well. Phil, why is this cause important to you. One of the great things, too, gets these young ladies with a mentor each one has their own mentor. To be successful in business, a lot of times ladies have more obstacles toover come. This mentorship helps provide a path to success. These girls are outstanding already in their own right when we have great leadership like lynne who made the company so successful, brought about so many opportunities, we want to have other great young leaders, especially females that have opportunity to be successful in business and this Program Gives them a pathway to do that i was going to say, put it on the radar for you in the first place. I have done reporting for golf channel how women, especially young Millennial Women and juniors on the female side drive growth in the game of golf what was the impetus why you got involved with this effort . The consistency of foundation that my wife and i started is about education. Stem fields, and this is consistent with that in that it takes young girls that are driving in school, thriving in overcoming challenges and provides this on an asneeded basis. Is the thinking th