Hang seng index was weaker down 0. 8 . The shanghai was flat. European equities this morning, if you want to look and see whats happening in early trade, green arrows across the board. The ftse is flat the cac is up by a half percent. The dax is up by 0. 2 . Crude oil prices which were up once again yesterday, weve seen at least six sessions in a row of gains, up to 45. 28. Here are the big stories. Good morning Tesla Ceo Elon musk tweeting again. When asked about speculation on the release date for the model 3, musk tweeted news on sunday the model 3 is teslas highly anticipated socalled affordable model. Starts at 35,000. Musk says the production version of the model 3 will be unveiled in july, but still no official release date tlaes has taken in more than 400,000 preorders for the car. James bullard is retreating further from his formerly hawkish stance on rates. He said weak data undermined the feds plan and the central bank should take a more reactionary approach, if and when it sees solid signs of growth. He said some of President Trumps policies have to provide growth but they need to get through Congress First he said the fed can afford to wait and see what comes out of the political process. Theres a trio of economic reports to wrap up the week, month and quarter. May personal income and spending at 9 45 a. M. , june chicago pmi a precursor to the ism manufacturing data at 10 00, the final report on june Consumer Sentiment. Look at shares of dow component nike because theyre surging in premarket trading today. The company reporting Quarterly Earnings of 60 Cents Per Share about 10 cents above wall street estimates. Revenue also beat. The Company Confirming after holding out for decades it will begin selling its products on amazon well talk to a nike analyst about that another beg announig announcemee retail world shares of micron also popping in the premarket after the chipmaker topped wall street forecasts. Cost reduction plans helped the company. Shares closing at an all tsh time high. They have been on a tear, up 129 can i jump in for one second . Got a headline here. Has to do with Warren Buffett. Just breaking. Berkshire hathaway will exercise warrens options to own bank of america. Bar remember buffett will buy 700 million shares. Thats how many of the warns he held. He was saying at within point he would exercise them if the price was at a certain amount. Bank of america just doubled the dividend for the common share. Hes probably getting a better deal on the dividend, i would guess. And he becomes the largest shareholder in bank of america hes been breaking out the warrants in the annual report for several years. Just talking about how why this is such an important stake for Berkshire Hathaway, i bet its because bnk ank of america doubled ets d ed its dividend he owns a 6 , converting that to 700 Common Shares would you view this as a sign of confidence are you ready for this . As of wednesdays closing price, he has a paper profit of 11 11. Billion. Wow on that transaction. Hes not bad at investing no. I heard hes pretty good at that think about this, you wake up, its friday morning, 6 04 in the morning. Warren buffett buying 700 million shares you wake up boy 25 shares of ibm. 700 millionairemillionaireshare. He changed his equity structure, but 700 million shares the warrants were 7. 14 each. Bank of america shares are trading at 24. 32 that tells you why he has that profit number coming through this was the expectation they expired in 2021, but it just hiked its annual dividend to 48 cents a share. 60 increase i assume, i may be wrong, but i assume, you probably know this, i assume he got these preferred shares shortly after or during the financial crisis thats exactly when all this happened we talk about having powder, keeping powder dry, having cash. When you have the capital when others are forced to sell, they need a buyer, thats what Warren Buffett does better than anybody. Waits for pain, comes in, they needed buffett, goldman, mank of ameri bank of america and making nearly 12 pi billion. He said if the stock should rise before 44 cents before 2021 we would consider making a cashless exchange. Thats what he has done. We will keep an eye on bank of america this morning. Looking at this conversion almost like a forced conversion for him. Shares of blue apron were watching as well on its first trading day as a public company, the stock closing at 10, in line with the issue prize. Reached a high of 11 during yesterdays session. Lots of questions about the Business Model and the competition around blue apron. Keeping an eye on shares of microsoft. The Business Journal reporting that the company will announce a major reorganization within the next week. The report says the changes will better align the company with its Cloud Business and Cloud Business has been growing rapidly. Faster than amazon web services, not saying on a dollar figure. For the last quarter amazon said aws revenue was up to 3. 3. 6 6 billion. Microsoft said revenue was up by 93 . Those are the two big ones along with google cloud, which is somewhere behind those two President Trump is going to be meeting with south koreas new president for a second day today. The two men and their wives had dinner at the white house last night. Eamon javers has more on that. We understand the president will be meeting with mr. Putin next week thats right. So today its president moon of south korea who is in town he arrived yesterday there will be a series of meetings today this one day after the Treasury Department imposed sanctions on a chinese bank and several chinese individuals along with a Trading Company in retaliation for their allegedly doing business with the north koreans. Thats the big agenda item for the president and the president of south korea today last night at a dinner at the white house the president made some remarks welcoming his guest. Well have tremendous discussions tonight. I know youve been discussing with our people some of the complexities of north korea and trade and other things and well bes by cu bes be discussing them all as we progress it could be late into the evening. We respect you and the people of skdz i would like to congratulate you on your election victory it was a great victory did you a fantastic job. A lot of people didnt expect that i did expect it. So the schedule for the rest of the day, at 10 35, an expanded bilateral meeting, and at 11 15 a joint statement from the rose garden. Once again the president not taking questions at this event typically the leaders would take two and two, two questions from the bo r. Domest domestic pressm the foreign press. And the putin news, should he or she not be having this meeting . Gary cohn and h. R. Mcmaster were asked yesterday several times whether the president would press putin about russian interference in the 2016 u. S. Election they said simply that the agenda for that meeting has not been determined so theyre not prepared to say whether the president will address this intervention in the u. S. Election, which the u. S. Intelligence community concluded did occur. Thats one they have to answer at some point. What does the president say to putin about that issue the president doesnt want to bring it up because he doesnt like the idea that anything could taint his election theyll have to come up with something to say about it. That will ab prickly situation for this president topic number one on twit e the fallout from the tweets yesterday about Mika Brzezinski and how that may or may not relate to the healthcare bill. In terms of the support he will or wont have. We have the tweet up on the screen now this is the one that got a lot of attention saying Mika Brzezinski was bleeding badly from a facelift at maralago when she came down to visit trump. Trump venting pure emotion here at these cable news anchors. That got the attention of the political establishment in washington and people around the word, particularly moderate republicans, some of whom the president will need to pass that healthcare bill. The president has a hiealthcare bill stalling, he has relations with syria and russia, the situation with north korea and the visit with the president of south korea today, despite all that hes focused on these kablt news anchors and venting this emotional stuff at them. We saw some reaction including ben sass who put up a tweet saying please just stop, its not normal and beneath the dignity of your Office Republican senator lindsay fwram s graham saying your tweet was beneath the office and represents what is wrong with american politics, not the greatness of america so theres nothing for his own ego or selfsatisfaction hes not advancing the ball on any of the fronts that he says are important to him that has people wondering what hes doing a meant first, you notice in the tweets from congressman sasse and lindsay gravmtey grah did not tag the president. So maybe he would not even see it though he probably sees it on tv he watches a lot of cable news hell see it when you talk to people is there any sense theres a sub thought, if you will, that this is part of a strategy. Keep people off balance, a master plan to divert and deflect. If you wanted to defle ed ted tt attention from a struggling healthcare bill, you put out something positive to show the administration is moving forward with its agenda on another front. This is like a negative feedback loop today you have a Washington Post oped from Joe Scarborough and Mika Brzezinski and they say he is not well you set up that feedback loop you are not doing anything positive for your presidency youre doing something in the moment that feels good at that second for you, the president of the United States, but youre not doing something that advances the agenda, that sets a positive feedback loop that you can build on and make progress on its baffling the president would do this. Doesnt have the self control to vent privately if hes frustrated maybe throw a pillow across the room vent to reince priebus, theres lots of things president s can do but they typically use the self control not to let that stuff out in public. Also in that Washington Post oped they said that a Top White House staff member warned that the National Inquirer was planning on writing an article on us unless the National Inquirer has been pro trump but this line in that oped is new reporting that i have not seen before. Exactly basically saying a white house staffer threatened them. Right thats something new i have not seen before. We havent seen before well need more reporting on what that was all about and who in the white house made that threat is that appropriate behavior is another question this is a fascinating soap opera. I accept that. I accept that the language is coarse, terrible for the country. What i dont know, what im trying to figure out is whether it actually matters in terms of what is going to happen or not happen in washington in reality. If youre a president you need friends on the hill bottle line. You need people in your camp supporting you, willing to push. There are moderate republican senators, he needs them on healthcare like lieaseleasisa mirkowski. But does she leave him over a tweet . Maybe not, but even those critical of trump before, the hard core base of trump supporters, they did not come out yesterday and blast him over this in fact, they sort of aligned themselves with Sarah Huckabee handers who said the American People knew what they were getting when they elected donald trump. Hes a fighter, he punches people in the nose if he perceives they punched him they like that so a core group does support this president and did not waiver at all yesterday after this tweet to your point, yeah, the political dynamics are still there in place for this president. But, again, its cumulative. You go back and look at the comey tapes bluff. We have never seen a president bluff like that and then be forced to admit there was nothing behind it later. When president s do that t erodes their credibkrecrediblkrecredibt time all of that erodes his ability to be effective over time. Hes only six months into the job. Fair enough, eamon javers, always great to see you. You bet a check now on your Broader Markets and your money joining us is chris retsler and sigmund jaime. Welcome. Im not going to ask you to wade into the murky world of politics, chris. But as a fund manager, whose job it is to find value in stocks, when you watch politics do you think is this going to hurt the stock market wl you are certainly bringing in data, always processing it, trying to figure out what impact is, the Attention Span of people out there is not long. Well get to next week, the fourth of july rn, a lot of thi will pass us well focus on earnings season trs theres industry conferences out there that will give us data micron last night. A lot of information we can process. Thats what i would be focused on is there any part of the whatever you want to call it, the trump agenda, gop agenda, that you think is, a, built into the gains we had in the equity market. And b therefore may be at risk if we dont get tax reform, healthcare and Everything Else done i think deregulation and tax policy have been built into the mark market we always thought the timing on getting those through would be further out. With there will be something it may not be as big we may not need it as big. Thats okay. You have to look at companies, see what theyre doing in their own world and how they can grow their businesses it could be people get worried about technology stocks. You stole it from me. Thats much more relevant tan what trump did yesterday the volatility can bleed into the rest of the market the question of how to deal with that, if you hid in slvalue stocks, you lagged 500 basis points in the first half of the year so perhaps combination of growth is the place to go healthcare has been a winner. Healthcare at 15 as an s p 500 group this year. Tex nol Technology Selling off a bit do you believe healthcare we focus on the f. A. N. G. Stocks, i cant stand the acronym, we focus on it. I think healthcare is a reasonable bet can you get more specific in healthcare biotech sold off this week. The old School HealthCare Companies have an opportunity to reform even if there is no reform in the broader system think about financials but in the mid and small caps theres lots of headline issues you can win when the trstress tests come through thats your world it is we find value in the small cap if youre in small mid cap tech youre positioned well if the money comes out of the f. A. N. G. Names. We like a lot of nextgen storage, intel launches, new shifts this year krit, sim eshchris and simeoe when we come back, shares of nike soaring after the company beat earnings, and also announced it will be selling directly to amazon for the first time baby crying fly me to the moon elegant music and let me play bell rings thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Welcome back nike topping wall streets Fourth Quarter expectations. The company is teaming up with amazon to sell a limited product assortment on the ecommerce platform this comes as a way for nike to combat counterfeit sales of i product on amazon. Joining us is Senior Analyst from barronberg. You had a buy rating on this your price target was 70. Are you impressed by the beat the company came in with for sure. The Fourth Quarter we were not concerned with that. What we were concerned with was the Forward Guidance we were concerned about what the newt hur futures would be they decoupled from revenues, so the guidance is pretty much what was expected this is huge in terms of your call lets talk about whats happening here when you look across the industry, under armour has been under pressure because only stores have closed their doors why is nike immune from those issues our call was based on footwear we think foot wire is a more resilient category than apparel. Apart has a lot of competition, fast fashion so theres a significant deflation in that category footwear has been able to hold price. Nike reported low single digit asp increase on the heels of mid sickle digits over the last 5, 7 years. Thats our call. The stock is flying this morning in the premarket do you attribute it to more of the results or that theyllen se theyll be selling through amazon or a bit of both . Amazon is the search engine, you have be there. Its the meat not the gravy moving the stock its the guidance what kind of margin could they get on amazon well honestly, yesterday i looked on amazon, not knowing they would do this. I looked on amazon first, because i wanted them delivered quickly. You wanted the free shipping. I didnt find the pair i wanted, and i bought from nike. C nike. Com, and it was cheaper than on amazon i was shocked. Because i can almost find things cheaper on amazon. So to andrews question, what is the numbers going on there its just a test right now, well see if its successful can i throw a little bit of water on the quarter lower tax rate, lower share count. Sure. Are those things sustainable qua