Twotenths percent. In europe this morning youll see that right now the daks up by about a half percent aj point cac and ftse up. Spain is weaker. Crude oil prices, down last week this morning up, had been higher earlier, looks like it is down 32 cents a busy week of economic numbers. Jobs on friday today, may consumer credit, tomorrow wholesale trade numbers. Wednesday, beige book. And yellen testifying. And thursday before the cincinnati Banking Committee june cpi thursday, and friday, retail sales, cpi, Industrial Production on earnings fronts, pepsico reports tomorrow results from big banks friday, jpmorgan shares of Orient Overseas popping after china Cosco Shipping announced a takeover deal for the shipping company. This deal makes the company the worlds Third Largest container liner. And wanda selling theme parks, selling tours and projects to developers for 9. 3 billion. The sale expected to cut debt pile, strengthen case for listing on the main land after it was delisted from hong kong last year. Apollo getting club corp, months after the golf course operator announced retirement of its ceo, club corp previously said it decided not to pursue a strategic transaction. That sale didnt result in offers for the country President Trumps Foreign Policy is in focus in washington, following that meeting with putin friday we have more on a lot that took place over the weekend good morning. Secretary of state tillerson and other senior officials stress the focus of the relationship is on moving forward. One way they considered doing that gave many pause President Trump tweeting sunday the u. S. And russia would form an impenetrable Cyber Security effort to keep things like Election Hacking guarded, after saying putin vehemently denied meddling in the 2016 u. S. Election despite u. S. Intelligence evidence showing the opposite. At least four republicans slammed the move, not mincing words in doing so. Nebraska senator ben sass calls it in explicitly bizarre, says russia is not trustworthy. President trump tweeted the effort cant happen. Some close advisers like the treasury secretary on abc this week defended the president s move this is like any other strategic alliance, whether we are doing military exercises. Despite the administrations other accomplishments at the g20, inclusion of preferred trade and climate language, russia continues to dominate the news cycle New York Times reporting the president s son met with kremlin connected lawyer last year who claimed to have damaging information on Hillary Clinton, but a lot of this, andrew, coming from the president s own messaging and his continuing to bring the russia topic back into the fore the question, theres so many questions. Where to begin i think the largest question is who do you believe and when are you supposed to believe them thinking of steven man uch en, went out as the good soldier he was trying to do sunday morning based on the president s tweets, finds out maybe the president had a change of heart. There have been several cabinet members and close advisers who have gone out on a limb, defending something the president has said only for that not to be true he is the latest example you remember Vice President mike pence going on face the nation saying mike flynn never discussed possible relaxing of sanctions in conversation with russian officials, that ended up not being true when asked on that same program whether any of the Trump Campaign officials met with russians, he said of course not. There are a handful of situations and growing of instances where these advisers are going out and seemingly defending the president , defending his positions, only to be caught flat footed in hindsight. One of the reasons may be the response here is what Lindsey Graham said, weighing in on President Trumps meeting with putin yesterday on meet the press. Well, when it comes to russia, i am dumbfounded, i am disappointed, and at the end of the day hes hurting his presidency by not embracing the fact that putin is a bad guy who tried to undercut our democracy and he is doing it all over the world. One thing when the democrats say it, another when the republicans do marco rubio tweeting about President Trump meeting with Vladimir Putin saying partnering with putin on Cyber Security unit is akin to partnering with assad on a chemical weapons unit kayla, the other question is what to make of the New York Times report came out yesterday, what does it mean, or does it distract or continue to distract from the ambitions that the president and administration are pursuing quickly, two points, andrew first on the response of the senators that you mentioned, the most common refrain has been this is like the foxes guarding the hen house here there are a lot of people coming out, being critical. These are lawmakers whose votes the president will need. The farther he distances himself from their ideology and from their ability to publicly support him, the harder it will be for him to have substantive conversations on things like tax reform and health care where divisions are only crystallized. The New York Times report about trump junior, perhaps the starkest take away is the difference between the statement he and his legal Team Provided saturday about that report compared to the statement they put out sunday the saturday statement said that meeting was strictly about a law related to adopting russian children and u. S. Russia relations, then he changed and said this person had information that would be in his words helpful to the campaign, seemingly acknowledging motivation for the meeting. If youre bob mueller or someone investigating, that perhaps makes you scratch your head more doesnt do much to bolster the case that there is no there there, if that is true we will leave it there. Good to see you. Lets talk markets and the economy, kwekt Portfolio Manager at jpmorgan, covering the economy, jim osullivan, seems like we say wow. I was expecting 9 for the year, were at 9 already. You posed that same question, what do you do with that you say markets are like a shark. They have to keep moving you have to decide what does it do from here i think we continue to think markets are driven by good news. Good news on the earnings front. Earnings grow, valuations are expensive, when you compare them to history, remain reasonably valued with fixed income and cash i think of markets being largely relevant, equities wind up being the better relative asset class to invest in. Kind of the way youre going is i like it, you say all right, i was looking for 9 for the year, we already got it. What about the next six months instead you say over the next year works its way higher. You have another six months to get, so in the next year next six months sideways. Youre not saying we think above 9 it can get above 9 , but effectively speaking whatever were trying to invest money, not trying to look at what happens tomorrow or the next 30 days and 60 days, comes back to i need to be able to move it, get invested and try to not respond to every particular small data thats interesting. Investors dont move on whether theres six months left in the year, most of us look at longer time horizons. How i finish up on my calendar year, i cant try to tie it back to portfolio you can make yourself crazy, chase your tail. I can chase my tail trying to respond or react in that case to whatever the most recent flip in data versus expectations i dont think that necessarily helps my clients in terms of trying to take perspective still a reasonably good economy, not great but good generating earnings and equity valuations are reasonable against what i can do with my money alternatively. I have a dog that does do this he is very smart you think they dont know it is their tail he knows it is his tail, still likes it and gets it he does catch it once in a while. And i love it. Like republicans with health care, they caught the bus, they have no idea what to do. Hoping i would get to you, relax, see you there i will be right there. He is waiting patiently stay long here. Do you like tech, banks, small caps, big caps which way to go. So much to work with there. We like technology, continues to reinvent itself thats been a story of where the economy has gone story where the economy will go. Banks, we increasingly like. We think they can benefit less from i think the issue of banks is less of a top line story. In terms of loan growth, interest margins expanding and cost control stories one second. With andrew, tesla had a rough week then i read it today, couldnt help to say just the sentence itself tesla sales in hong kong came to a stand still after a tax break for electric vehicles. I think thats the big question. What does it do without the break. Model 3 is coming, he is tweeting pictures of it. Interesting on the more expensive model s there was an argument to be made people buying those cars didnt care about the brake when you get to model 3 which is more important, much more important, the game may change because you have customers who should be more price dependent thats the conventional wisdom as you know, conventional wisdom is often wrong so no wage gains. That was the take away, even though 222 was pretty good, but people say when youve got Global Labor Market where you can always go there if you need to if things get too expensive, thats different you can go to machines as we automate things, there are extenuating factors why wages arent going up, inflation is low. 2. 5 wage gain, if theres no inflation, that might be what you have to deal with. Up to a point looks like the trend is clearly down, you get more pressure. Only a couple months ago went through most estimates of full employment, arguably not supposed to get significant acceleration until you go below the estimated full employment level. The employment rate is down. 180,000 a month, labor force growing 1 a year. You get more and more pressure average yearly earnings is not the final word look at tax receipts theyre growing 6 year to year for withheld employment based tax receipts take out 2 for hours worked, it is implying 4 per hour. When we see that, that true picture is not that wages arent growing. Weight of evidence is that wages are starting to accelerate we will get the eci end of july, that will be another data point. Average yearly earnings doesnt capture everything i would say even average earnings will show more signs of acceleration in the next six months. Does that mean the feds have to step up more rapidly . Game plan is to move once a quarter. The next move is Balance Sheet normalization in september rather than rate hike. Theyre viewing that as a tightening. The market i think is not expecting the feds they have very little price stand. If you keep getting 180,000 a month unemployment, it is pretty unambiguous that the rate keeps falling. Were getting 1. 5 growth, but given demographics, 1 labor force growth, unemployment goes down a half point a year is it enough to push up wages or not, thats the debate as it goes down, you get more evidence from a fed perspective, numbers are Strong Enough to follow through with Balance Sheet normalization in september come december, we have more employment reports cpi numbers will look stronger and those things will matter. 222, two years ago, thats what we do is it a bigger number because it is getting tighter a year or two from now, you cant do 222 a month i think you can keep pushing the Unemployment Rate down, with the consequence of wage pressure i expect unemployment drops below 4 . What do you think the rate could be, went up like a tenth or something. It has been flat the last two years. Go back to 70 no chance unless you allow a bunch of young people to immigrate, not going to happen. We have seen this drop in the last ten years because of demographics some may be cyclical. What about the people 25 to 54 some of those coming back the last two years even with them coming back, overall Participation Rate is flat theres a secular down trend even flat Participation Rate is strong given the secular trend thats what we have been seeing. If you get flat Participation Rate, again, trend in labor force is anything less than 1 a year 180,000 a month unemployment is 1. 5 a year. Working three and four jobs take andrew. He is here then he has New York Times, and deal book, and billions. Theres things i know youre doing i dont know about, too, i know how you operate another sequel or book coming. Backup plan when can he get down to two jobs maybe not being paid enough wage increase needs to go up im not sure i like the way youre thinking not jack cafferty. Still not and you show up, i go you are not jack cafferty. At least we have Jesse Eisenberg coming on which im excited about. Who . We dont have Jesse Eisenberg . No. Waiting for mark zuckerberg. A book with a title we cant say on television. I want you to get involved with this interview. I promise i will. Because it may be they didnt prosecute anyone because you needed a crime to prosecute. Say the ceos in the financial crisis should have gone to jail. Which ones. Give me a list of names. Jamie dimon jessie will get them there he is. Doesnt look like him. He is not even an actor. Anyway, thanks coming up, Jessie Eisinger amazon is gearing up for the biggest sales day of the year. Details after the break. And top of the hour, get you ready for the summer of hell thats right amtrak repairs begin at penn station, busiest rail hub. Amtrak ceo joins us top of the hour squawk returns with that and more in a moment jessie ice in injury at fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Welcome back amazon prime day kicks off 9 00 p. M. Eastern time tonight last years prime day was the biggest day ever, and this year amazon hoping to top that milestone. Heres what to expect. Amazon offering more than 100,000 deals in over 30 hours in 13 countries. Last year some of the most popular deals included televisions, kindle e readers and tablets and fire tv sticks average price was around 30 prime day is for prime members only based on latest numbers, amazon has a lot of shoppers subscribing to the 99 a year service. If that trend continues, prime subscriptions could top paid television subscriptions in the United States by next year i have searched amazon for movies, that means i am a prime you dont know youre a prime member. Do you get the boxes outside your house every day i dont, but you see them you dont need to be a prime person to get boxes. To get them in two days you do and if youre a prime member, they ship that tv for free all kinds of stuff comes for free with it you pay for this. Netflix, do you ever pay for anything no. Its different. Depends how you are consuming. I believe youre a prime member, but you could be accessing movies not on the prime membership depends how youre accessing it. Looking for episodes. Netflix is annoying, every time i look for a movie to watch, they give me 40 like the one but not the one i want to watch. You would be happy in that case to pay for the bun one i want. 3. 99. I paid for one i did. It would be 30 off tomorrow. Last week i dont know, this might hurt, we had a guest talking about russians and did you see the americans called eastern promises, more about the russian, i forget the name of the organized crime. Very scary it was a look in london at some operations i looked it up and found watched an awesome movie last week despicable me. Whats the difference between the one eye and two eye minion does he act differently more clumsy . Theyre all a little clumsy talk about any time we can they are it was good i dont even say that as a company man. Say it as a viewer there are very creative people involved in these projects theyre different than us. I dont think i could do that. Is there a despicable 4 coming they set it up at the end very well. My kids will tell you, they know the plot line already. I hope they continue to do well tesla first model 3 sedan rolled off the Assembly Line elon musk tweeted out photos first model 3 headed for musks garage the board member was in line to get it but gave it up. It was a 46th birthday present thats pretty goodlooking looks like a generic sedan almost looks like, i dont know, more than that maybe a little better. Has similar styling to a lot of sedans you see nowadays. Last week musk said the first 30 model 3 customers get keys end of the month starts about 35,000. Half the cost of a model s you dont think that was 150,000. I dont think so. Thought it was in the 80s the contours and lines, the front just the front end. Then the back is sort of a lexus thing going onto me. When we come back earnings season kicks off this week pepsi on tuesday, Delta Airlines thursday, and big banks reports starts friday. We have your guide to Second Quarter earnings next. Later, Country Music legend charlie pride getting a Lifetime Achievement award. Thats tomorrow. He will join us first. He is in studio. As