A miss for mcdonalds, citing exchange rates, weak consumer spending. Well break it down. Its not fun and games d. Gas price is spiking 12 cents. And steven cohen officially charged by the s. E. C. Well have the details on what it means for s. A. C. Capital. Mcdonalds earned 1. 38 a share, revenues also missed. Global comps up 1 , including gains in the u. S. , but samestore sales fell in both europe and the asia pacific, middle east, africa region. Saying the Economic Uncertainty is pressuring quiter spending. Guys, it looked like june comps slipped a bit, something that janney highlighted. That was a good call. If you go back over how some others are doing, yum believe it or not doing better than mcdonalds in the united states, overseas, chipotle, spoke with jack hartung, the cfo on friday, theyre seeing an acceleration of samestore sales. Obviously they have this move with integrity campaign, people feel good about getting away from the idea of the food chain. I expected better from mcdonalds, i wonder if people are turned off to the kind of food mcdonalds has. Im curious, should investors then look at this and say mcdonalds specific or is it a brought el reflection of this idea that the consumer is slowing down a bit . I want to say its mcdonalds specific, only because i would love to see anyone else disappoint at this level. Im not sure that youll see that. One of the things, carl. That bothered me, theyve done a lot of innovation, it doesnt yet seem to be kicking in, but yes thats whats so necessary. Theyre not fully in place but youre right, whether or not theres some sort of hill that the Consumer Needs to get over, this is the play where you go for arugula in a wrap, or do they continue to lose share . If you think the consumer is in tlubl, would they be paying up for burrito or a panera salad . There does seem to be a sense at least in europe and here that the cheapest food may not be the best food. Foreex did a theme we heard last week and probably will hear this week. And just not getting that. Record highs, but im also still concerned, downgrading their gdp forecast, the journal has a story about Economic Uncertainty, the inability to get that engine past that point where we can really take off yet again. Shouldnt i look at mcdonalds within that framework . But mcdonalds within the confines of holy well, ingersollrand, general electric, schlumberger, are these not also Companies Much better than expected profits. But hey, you know, i just see orders going up. You know, the conclusion that things are weaker does not jibe with the facts. I mean, i always from an industrial standpoint. Right, from an industrial standpoint. We havent seen the retailers yet. I dont know what theyre going to do, but i do think before we reach a conclusion, coke cola was really the only quarter last week that i didnt like. Coke cola another inexpensive priced thing. Im not talking the Goldman Sachs tax on aluminum cans, i didnt know about that. Its just warehouse, dont worry about it. What was the number based . 5 billion, Something Like that. A piece in New York Times about Goldman Sachs, basically inflating the price of aluminum by keeping it in a warehouse and moving it around unnecessarily. Thats essentially the gist. The article was quite precise about how a lot offed commodities have an Investment Banking tax on them. Lets call it that. Great reporting. You have to recognize great reporting when we see it. Apparently the president is going to make a speech on Economic Policy in the middle of the weeks. The times pointing out the fiveyear anniversary of the crisis is this september, and if were still i think to davids point. If were doing 0. 3 gdp five years after the fact, that will create some political questions, right . I also found another where the jobs are. Did you see north dakota . If you go to the bakken, i think the president going to the areas may be the areas that are hardhit maybe makes sense. Yes, we should have a stronger recovery, but definitely International Companies are doing tremendously. International, which does not hire that much is a terrific place for profits. And you mentioned the industrial economy. Yes. Making those u. P. S. Remarks of what is a week and a half ago or two weeks ago look sort of misleading. And u. P. S. Has been strong. Did you notice Federal Express is doesnt it happen. Yes, it does. Union pacific had an outstanding quarter, now some of the lines werent so good agriculture, coal get better, but im on these calls, listening, think ig and yet there i am, and im kind of astounded how good things are, so im always caught. Wireless spendsing is obviously up a lot. There are a lot of sectors i look at that are doing very well, yet i come back and say u. P. S. , you have some explaining to do, guys. If its asia, i get that, but they said u. S. I know. Were still waiting and wondering. Autos were so strong in the Union Pacific call. Johnen controls saying autos were terrific. These are real companies. They employed a lot of people. By the way, honeywell to neutral . My Charitable Trust owns it, but i read that, and saying one more valuation plays, as you said last week, you know, theyre not good calls necessarily. No, but if you try to stick with some sort of discipline as an analyst, you know, i guess you have to. Honeywell has to go 19 times earnings to get to 100. Lets talk hasbro rivals mattel reported Quarterly Results below forecast. There may be an attempt to make this a brought of story about weakness in the consumer. From what i hear, jim, you know walmart is running things, taking margin out of the business, but even more importantly, youre talking aboutal changing demand cycle particularly in software and games. I totally agree. There are changing patterns of the consumer. Theyre not going to blockbuster movies as much, not buying transformers,ty find when i read these things, i say, listen, guys, time has moved on. Where are you with your with something that can play on xbox one where that comes out. This is like the equivalent of the conjuring, okay . They dont like lone ranger, they like the conjuring. Speaking of which hasbro disgust blame they on partners, and theres being big budget busts. Despicable me does well, this conjuring, again, everybody is talking about. How much did that cost to make . Ive got to see it, but huge night mares because of last night. This is the first im hearing of the conjuring. Where do you live . I havent i have not been watching a lot of television lately. No action this happens to be a movie. No, im saying maybe i missed the Marketing Campaign for it, but apparently i havent missed much. No. Sharknado. I made sure to get up to date on sharkn amount do. Mattel was not so great either. Maybe traditional toys are having a lull or theres a secular decline. Not to mention, dont hair about the toys r us ipo. How is it doing . Manage has changed. Its like, no, you own it, no, you own it. Like they were talking it up and it was like, bring the deal on. No. Deal nogogo. No, i know that toy. Nogogo ipo toy. Aaa says the nationwide price jumped 12 cents a gallon. 3. 67, it says the increases are expected as the price of oil rises. Its been particularly acute in the midwest. This is west texas going away, the crude discount, youre suddenly paying more at the pump. I find that there is some i was going back over stories in 2011, we hit these levels before and it didnt discourage nearly as much spending. Will people play with their tablet more . Will they stay home and watch tv more, watch some sports like the british hope . Perhaps people stay at home more, after leftys performance over the weekend. How can you not feel good i was busy watching harvey destroy the phillies. I didnt even see matt harvey. Like i said, i missed all tv this weekend. I was going through new england. You dont shop, you dont watch tv, what do you do, read books or something . That is a great question. When i figure out the answer, i will let you know what it is i do. Every time he breaks some dell news or hp youre working. The wednesday dell meeting, if they cancel that, are you destroyed . No, im not destroyed. Im sure we will talk about it. Its fascinating. I continue to find this game of checking taking place is fascinating. There you go. We will have to get into them. And thank heavens there is something that fascinates you. [ laughter ] i know. I tell people i have no hobbies other than swimming. I got nothing. I like my kids. Yeah, theyre nice. One of them is gone right now, but i like them, spend time with them. Youll get plenty of time with us. Later on in the hour, steven cohen feeling the heat from the s. E. C. The agency taking a step to seeking to impanel him. Netflixs elf lesion from video streamer to home of the original emmy nominated content, a closer look, a great piece by david carr today. As earnings officially kicked into third gear. A lot more squawk on the street back in a minute. [ male announcer ] come to the golden opportunity sales event to experience the precision handling of the lexus performance vehicles, including the gs and allnew is. This is the pursuit of perfection. Pull out the paper and what . Another article that says investors could lose tens of thousands of dollars in hidden fees on their 401 k s . seriously . Seriously. You dont believe it . Search it. 401 k hidden fees. Then go to etrade and roll over your old 401 k s to a new etrade retirement account. We have every type of retirement account. None of them charge annual fees and all of them offer low cost investments. Why . 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Call your doctor right away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. These could be signs of rare but serious side effects. Is your cholesterol at goal . Ask your doctor about crestor. [ female announcer ] if you cant afford your medication, astrazeneca may be able to help. The s. E. C. Has filed civil charges against s. A. C. , aconfusing the Hedge Fund Manager failure to supervise essentially s. E. C. Says based on those traits, well, thats specific, but here the larger question is, jim, what is the impact of the s. E. C. . Civil in nature, as we point out so many times, to his overall business, and what if anything does it say about the likelihood or lack thereof of criminal charges that would most likely be filed or would be filed by u. S. Attorney for the southern district. That would be a man you interviewed last week. I think you had a chance at delivering alpha to say, listen, this is not a criminal issue, this is a civil issue. He doesnt did not do that in anything he talked about how the statute of limitations will not run out, and a variety of charges that can be brought out. Ongoing conspiracy one of the great weapons that really the federal prosecution has. I think it could be a tandem track, providing that there is no cooperation they can easily refer it. For those who missed it last week, this is jim talking to barrara, trying to get him to comment even if somewhat obliquely. We cant really directly talk about s. A. C. Capital, i know, but talk about phone calls. Are the phone calls too laid . My understanding from the conventional presses if youre going to bring some of these cases, the statute of limitations is up. You better do it this afternoon or its over . Im not going to talk about any particular case, the institution you are mentioned or any institutions that people are thinking about. What i will say, as a general matter, and its entertaining, there are a lot of armchair lawyers and prosecutors who think they know what the legal theories are and statute of limitations issues are and and often they are quite wrong. I dont want to talk about any particular nub, i dont want to talk about any particular charges, i dont want to talk about any particular insights have been wrong. However [ laughter ] not from New York Times, not from peter lawfulman, a series that says, listen, this ball game is over. What preet did say is thats completely work, cut it out. They only bring them when they really think they can win, and they havent yet. You dont think they picked the names out of the phone books . No, i think when you look at their track record, they make sure to bring the cases. Thats controversial, by the way. The impact of this s. E. C. More is hard to saying. I spoke to a head fund manager this morning who said he got four resumes from s. A. C. Employees. So there is a question whether s. A. C. Will start to lose employees. If in fact all the money that goes away thats managed outside, youll still be left with Something Like 9 billion, it will be turned into a family office, yes there will be a reduction in the size of a firm that has 1,000 people in it to one that is smaller, but interestingly, you cant stop steven cohen from managing his own money you can say he cant manage outside and by the way, the bar is lower in these cases than certainly in criminal. If he makes a deal with the s. E. S. E. C. , cooperation, maybe the u. S. Attorney doesnt go after him. Though they dont always wok in tandem. No, they dont action and i thought preu. S. Attorney, there were ample opportunities to say, look, we just have one wall street to get them. He was saying we dont have to move fast. It looks like were getting with of an exit by thirdpoint, held by third point, Purchase Price of 29. 11. Upon completion, third point will own about 20 million shares nice trade. Hes got Board Members. Hes one of them, but they have what, i think its this has been a great investment for lowe this was masterful opportunity, well done. Its interesting. Loeb and icahn, two names that have been really nailing this period. Think back to the turmoil that the csuite and the board was in prior to myers appointment. Loeb, wilson and are resigning. So third point thats why i wondered. I hadnt seen this headline, because you dont typically sell significant amounts stef stock. You get board seats, then youre locked up, and that becomes a real issue. Shes really bringing in fabulous people. I continue to believe that its real, that meyers is doing an amazing job. Its a great opportunity to have nonfinancial guys from the board, and actual inventors, creators on the board, which im sure she wants. The board will go to seven, the remaining director,s the company says, are committed to revisiting the board size and is were on air as we do this, so creeping into these stories, but less than 2 million, selling 40 million, three board seats going away, this is the end of the loeb active period and trade on yahoo and hes walking away with Great Success. I think he played a big role in the shakeup, and congratulations. How about congratulations . Yeah. I dont know the man personally. Hes got a ceo, is confident with Marissa Mayer at the helm. Enjoy. Finches signing off, on to sony. With that in mind, well keep yahoo in our sights. Well get you off to a fast start as if we needed one already, back in a minute. 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. 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Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. All right. Weve got actually were short on time. About four minutes before the opening bell. What are we talking about in the mad dash. Let the parlor game begin. They say apple will beat expectations. Jmp says they will report worse than expected. Ubs is saying the activations for the iphone from verizon means theyre going to be above consensus. Holy cow, theres a lot of different you can drive a truck through. What do i do . What am i grabbing . Im opening roll of new products. That could be what people want. Im thinking more about 2014, because 2013 is in the bag when it comes to a big tech company. Were going to watch apple, yahoo and of course the opening bell just 3 1 2 minutes away. Stay with us. 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