Trade data out of china. And bernankes fed speech later on today. Tenyear note, one to watch as Mortgage Apps down four weeks in a row. And well keep our eye on europe. Mostly in the red. Our road map begins with the markets, rates are rising, but dont tell the bulls, the dow is 109 points from its alltime closing high. Following in Rupert Murdochs footsteps, the Tribune Company planning to split the broadcasting and Publishing Business taking the same path as murdochs news corcor. And coach gets initiated with an outperform. Well, the dow in the midst of the first foursession winning streak since the end of april. But stock futures are mixed after a surprise drop in june imports and exports adding to concerns about a slowdown in that country. Wall street is bracing for the 2 00 p. M. Eastern release from the minutes of last months fed policy meeting. Traders looking for further clues on when the fed might scale back the bond buying. Also, ben bernanke scheduled to address an economist conference that will be shortly after the market close. Here we are not far from highs, of course, worrying about china yet again and endlessly talking taper. Yesterday on closing bell was calling this the most hated stock market rally. And thats been the theme, but it still is a theme to some extent. And there is data earlier this year caught my attention in light of this. In light of the fact were at new highs on the stock market. More than half of the u. S. Households own stocks. Theres been low participation. People keep looking back and saying why would i get in now . The number of the amount of money thats under management around the globe, boston consulting, out with the data, surpassing the high from 07 08, so more people in the world have more invested in quite a few years. 64 trillion. Exactly. How much money is in bond funds. But the question is, how has it changed . I was making a joke there, but yes, i know. And how is it changing, of course . A little slow thats okay. Bond funds as you mentioned, but we are starting to see outflows as you might expect. And within the equity markets and certain pockets and were still in this waiting period earnings season, all weve gotten is what alcoa, well hear from the banks later this week we start to hear. Friday is jpmorgan and wells, absolutely. Meanwhile, the chief equity strategist and Portfolio Manager joins us here at post 9 00. Can we continue to do this . Even with rates rising . If earnings are good. Thats the big if. Weve moved past the p e driven phase of this market for now, which has powered us for 18 months or so and now its up to earnings. And i dont think were going to get a lot of Margin Expansion and then it comes to revenue. Were right at the front end of it. I think earnings will be okay, not great, good enough and i think we will waffle around on the market. I cant help but feeling the last quarter it was the same. I mean, earnings were not great. Youre absolutely right. And revenues have and we powered through that. It was almost like a little heisman to, you know, not so good. We had the fed squarely in our corner, now theyre in our corner, but not as much as they were. Earnings dont have to be great, but they cant disappoint again. And eventually, it has to be earnings and i come back to and revenues, as well. Which requires a somewhat better economy. How do we evaluate whether is it really all about the disappointment . Because the expectations going into the season have been so ratcheted back that the question cant possibly be do they just beat that lowered bar . It has to be how much fundamental strength is there really . And thats why i come to revenues. Earnings in the First Quarter beat expectations but theyd been lowered so much. I think earnings will be okay. The question is, will revenues . Im sorry, carl, go ahead. Imf is cutting the Global Economic outlook. Trade data out of chinas suggesting lower growth over there. There are going to be big 4x head winds. The bears argue growth is slowing, not that its shrinking, its slowing, its not accelerating. Youre pointing out to good things on the slow side. On the other hand, weve got Consumer Confidence picking up, consumers doing okay, cap expenditures, maybe a little bit better. Europes doing less bad and you put some of these things together, i think we have an economy thats okay. Im not going to pound the table, but okay. Youd stick with domestically centered companies . For now, i think thats going to be the play. The earnings to the u. S. Portion of the s p 500 are likely to outperform the nonu. S. Part in part you brought up because of currency. And where within the u. S. In terms of sectors if youre going to look for that Revenue Growth that youre talking about and conceivably then a response in the market and a positive sense. Some of the Consumer Discretionary names, i think theres more juice in those stocks left. Technology, although often you bring in some nonu. S. Pieces when you do that, but i think tech will be good, stocks have been acting a little better, believe it or not, some of the industrials have, as well. Have you read this upgrade of hp, citi going from a sell to a buy. You know, i free cash flow. I know, but theyve been in a sell for i think a while. Yeah. They missed the entire move. Price target, 32, well take it. Now we suddenly see signs of something positive. Weve had it as a sell, but dont worry, its only outperformed by its up 80 . This year, yeah. Exactly. I was going to ask bob, as well. We were talking about the extent to which people are participating in this rally. Low stock market ownership by u. S. Households, you guys are launching a bunch of new equity funds. Whats the challenge . Is it getting people to shift from other kinds of products like bonds into the equity market . Or is it just interest in equities period . I would say both, kelly. Weve had interesting equities yeartodate coming out of cash and to some degree from overseas. Theres almost no evidence that moneys come out of bond and gone into stocks. I still think thats in front of us. I think well have a period of good enough economy where earnings are okay, the stock markets okay and rates creep higher. Dont we have a demographic that wants to draw on that income to some extent. You know where your bond payments going to be. Its almost a different kind of demand for financial assets. When you can get almost half the companies in the s p 500 with a higher yield than a tenyear treasury, im not sure equities are a bad place to get not only yield but some growth in that yield. Bonds dont have a dividend that grows, stocks do. Thats been the case for much of this year. And in fact, we did see a great rally in the markets for the first half of the year. Again, you know, should we temper expectations especially given whats the ongoing debate about when the taper begins . I dont disagree with that. I think its going to be sloppier and the trading range weve been in call it 1,560 the low. Nothing like the first half. Have you had any clients say, bob, i got killed in bonds, i want you to send me to equities . There are some beginning to ask those questions. You and i have talked about this. Until investors see stocks going up and bonds going down, theyre not going to do that great rotation. Were beginning to see a little bit of it. The statements for june are certainly not going to be fun to read. All right. Bob, thanks so much. Thank you. Bob doll joining us. Take a look at your screen. Were getting news on apple h e here. A federal judge has found the u. S. Government various states have shown that apple did, in fact, conspire to raise Retail Prices of ebooks. The judge denise coty says they are entitled to injunctive relief and a trial on damages will follow. Thats a big step forward on the chapter for that company regarding pricing on ebooks. Theyre saying apple will have to pay these states, it could be in the millions, the company is expected to appeal, but this stands. And this, by the way, was being watched by the industry generally. Theres a lot at stake here. A surprise. Apple was a beneficiary of this, you would have expected they would have been on the other side of this not having conspired. A lot of the publishers. Trying to get prices lower. A lot of publishers have closed the book having settled to varying degrees, but apple wants to fight this. Well see how much. Now jon fortt with more at hq. Tim cook said recently in the past few weeks that they very much want to fight this. Id be surprised if they give up at this point. Ive got an email and call into apple. Apple didnt win this round. Arguing their primary concern wasnt with pricing, it was getting into the market with not being undercut by competitors like amazon, apple tried to argue that the market actually got more competitive with them entering the federal government here focusing on the price issue, though, apple was arguing that amazons control over the market was actually bad for the market. Arguably making more of a european argument over how competition could work. But the judge here focusing in on price. Itll be interesting to see how apples statement on this is worded. The amount of fight they have left in this. Actually, kind of ironic that today is the fiveyear anniversary of the app store. And apples ecosystem is large part at stake here. The approach to the ecosystem is whats being criticized in this ruling. Well see Going Forward whether theyre going to hold the same sort of strategic wait for their ecosystem approach as it did in this case, didnt seem to work out for them. Definitely going to draw renewed attention to those emails between jobs and some others. Well come back to you for more at our headquarters. In the meantime, heading out west for the asiana plane crash investigation. Our phil lebeau in San Francisco with the chairman of the ntsb. Morning, phil. Reporter good morning, carl, and im joined by the chairman of the National Transportation safety board. Youve had a chance to talk with all of the pilots in the cockpit, and the thing a lot of people are questioning right now, how is it you have three people in the cockpit as theyre heading in before the crash and yet none of them apparently notice theyre going too slow . Well, the information that we have from the pilots in their interviews is that they were focused on lateral and vertical lineup. They did recognize that they were slow, but they didnt recognize that until very late in the landing process. Is there any indication that the automatic throttle malfunctioned . In other words, they were relying on that to maintain the speed they thought was appropriate. Any indication that didnt work . Well, were certainly looking at what tools were available in the cockpit, what the crew knew about them, how they used the automation and whether it was working as designed. We have a lot more work to do in that area. The crew interviews are helpful, but we have flight data record information. 1,400 parameters were sifting through. We want to make sure we understand what was happening and what the crew thought should be happening. Theres been a lot of discussion about cockpit culture. And specifically when it comes to the Korean Airlines and the question of whether or not out of deference, one member of the crew does not Say Something to another member of the crew. Any indication that this issue played a role in one of the members of the crew not saying something . Well, we always have to look at the dynamics between the crew. And, in fact, we actually have a term that we used to talk about that. Crew Resource Management and its how the crews Work Together whether or not a junior officer will challenge a senior officer and how that senior officer is expected to respond and create a team environment. We want to identify what communications took place, what the crews expected, and certainly how they were trained with respect to crm. Any indication that played a role in this . I think its too early to reach any conclusions. We have a team thats going through the cockpit voice recorder. Asian, korean speakers and english speakers, and theyll be helping us understand what was on that twohour tape but certainly focused on the approach. The crew was not given drug and alcohol tests after they landed. Because its a foreign airline. I think a lot of people heard that yesterday and they said wait a second, i dont care if its from the United States, korea, wherever its from. If theres a crash on u. S. Soil, shouldnt they have been tested . Especially since the First Responders who were coming to the scene, they were tested afterwards. Shouldnt everyone have been tested . Well, were looking at whats required. We know for u. S. Carriers based in the u. S. That the companies are required to conduct drug and alcohol tests within a specified period after an event. Wed know that this crew was not tested by their company for drug and alcohol immediately after the event as we would expect for a u. S. Carrier. We need to understand what the companys policies are, what the countrys policies are and how those Work Together with when they operate in the u. S. Its up to the company not the country . Thats right. Each company is required to have a plan in place in the u. S. For a u. S. Commercial operator to drug and alcohol test their employees. They need to request those tests, order those tests and need to ensure their employees have been tested. We know that didnt happen in this case according to those protocols. But we need to understand why. The chairman of the National Transportation safety board with an update, guys, three days since the crash of asiana 214, theyre going to be out here for two more days and well have an update later, as well. Thank you so much as always, our phil lebeau out west. When we come back, Senate AgricultureCommittee ChairDebbie Stabenow. Well take one more look at futures, pretty decent action here, especially given the past four days. The best runup all year. Well talk more about that in a moment when squawk on the street comes back. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. What are you guys doing . Having some fiber with new phillips fiber good gummies. Theyre fruity delicious just two gummies have 4 grams of fiber to help support regularity i want some. [ woman ] hop on over [ marge ] fiber the fun way, from phillips. Tribune, the parent of the Chicago Tribune and Los Angeles Times announcing plans to separate the Publishing Business from the broadcast business, essentially split the company. The move underscores the shift in focus of the tribunes tv business in the bid to maximize the Growth Potential there and the Growth Potential if there is any of the Publishing Business. The announcement comes days after the tribune agreed to buy 19 local tv stations, a 2. 7 billion deal that we were talking about last week. Part of another trend that were seeing, that of consolidation amongst a lot of local tv stations. Whats interesting here is that tribune has been thought to be looking at sale of some of those assets whether together as a whole or separately. That would generate a decent tax burden for the company. It doesnt preclude that going down the road of a spinoff if, in fact, they do get bids that perhaps exceed what they might be able to get as a public company. Nonetheless, were going to have time out there, were going to have newscorp. Already out there. Its a trend. Three is a trend. Weve got yet another pure play publishing company, one wonders whether well start to see consolidation within that arena as well as we start to see all of these things floated out there. Now, these things take time. You may recall newscorp announced the split so long ago, it only happened in the last week and you have to watch the capital structure, how much debt and or cash will be put on to the Balance Sheet. Is it about shoring up the Balance Sheet of one . Not necessarily. Its more about trying to separate out. One thats interested in much more in growth which you could argue would be in the broadcast side of the business particularly with the consolidation opportunities that continue to exist there. And obviously publishing is not growth. Its challenge and the questions are legion as to what theyre going to do. Publishing revenue for tribune last year, 2 3 of revenue, overall revenue, 20 of operating net. 20 when its the lion share of your revenue shows where the margins are. For the spinoff. What is the Investor Base for a company that well, conceivably, if you can get it, you can cut costs and deliver a decent amount of free cash flow. It can be one of those kind of companies that delivers at least some sort of a return. And maybe one of these guys gets it right on the digital front. Who knows. Well still be waiting. Interesting. When we come back, will news from the fed today add to the markets winning streak . Or put an end to it . Art cashin up next with what to expect from todays action. Futures a little moderate here floating around the flat line. Well get the opening bell in 8 1 2 minutes. Income . With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. It