India. The ruby, best day in four years. Road map begins with the markets on the heels of that strong gdp number. Futures are higher although concerns over syria weighing on investors. Telecom deal potentially worth up to 130 billion. Weve got details and what it means for the sector. Shares of one retailer on fire this morning after reporting stronger than expected guidance last night. Were going to tell you which one that is. Lets start with the mark markets. Second quarter gdp revised up. Previously estimated, thanks largely in part to an improving trade picture. And claims down 6,000 to 331, signaling a slight slowdown on the pace of layoffs and worries about military intervention in syria. A lot of places we could go, jim. What is most interesting to you . Well, im glad you see that the gdp is finally keeping pace with what has been the jobless claims. I couldnt understand why our gdp was so low given the fact the jobless claims have been best in five years. That is a positive story. Of course, now, we always have to talk about, well, our Interest Rates are going higher. Interest rates go higher on things that are better. This is a push me, pull you situation. I do think that when you have a slow summer day or a day that was supposed to be slow and you have a verizon vodafone deal talked about and verizon goes up higher, thats the acquirer, we see this is kind of a nicer moment than i would expect given the fact the syrian backdrop is not positive. Lets get straight. Lets skip ahead to verizon vodafone. News in the wireless space. British Telecom Company vodafone is in talks with verizon to sell 45 stake in the u. S. Joint venture. The deal could be worth as much as 130 billion. Journal says it could happen within a week. Is the important thing here the speculation it feels about broader m and a in the space . I would like to but every time i is a that david faber says, jim, it is the worse in several years. Verizon will look different. Verizon, if they had 100 of Verizon Wireless, split two company or say the landline business can fund some growth in wireless. I think people are getting too excited and verizon here. They might do some stock in that deal. They microsoft, by the way, are facing a newly competitive tmobile. A newly competitive sprint which has been going down of late. At t doesnt want to lose the business. Everyone is so excited this reminds me of every time you get a premarket bump of the inquirer it can go back down and get a better chance. Bonds may give you a better chance. Verizon had been a bond market equivalent. Yeah. But vodafone seems really attractive. Its way too cheap. Vodafone makes sense to go higher. Saying that they could actually return the proceeds or half of the proceeds back to shareholder in about five years. Already pays one of the best dividends on the ftse. Its terrific. Europe may be returning. Seeing the pmi from europe to be better. Vodafone has great assets undervalue because europe has been bad. This is one of those where you go by verizon, if we were over in london i think we would be very excited about vodafone and what this implications are for the new vodafone. Thats a buy. Earlier premarket move about 9 . That is a 12year high on vod. If you think europe is coming back like i do, vodafone is a great way to play it. Interesting. Now, whats left for verizon . There had been discussions about their interest in canada which after this deal would seem to be small potatoes. More of a distraction. Italy, theres also everybody is floating all sorts of rumors. Maybe at t is going to get involved. This is a more competitive business than it was since sprint and tmobile. Look at the way verizon is trading down. I would say half of it is trading down because of the tenyear going higher, the yield going higher. This group which has been such a great duopoly watch tmobile. Theyve been shaking the industry up and taking customers. Lets say the deal gets done next week. It would be a Historic Deal in terms of size. After yesterday we didnt close on the lows. We got a few green arrows today. People kind of liked it. Are we working our way out of woods . I think that if you get this get syria off the front pages because perhaps its not as they can scale back because they dont seem to have the coalition. Everyone is a little tired of war. Its not postworld war i. Actually kind of feels like post world war i. A lot of countries are tired of war. David cameron is trying to answer to his populous about it. If you go back to world war i, france was tired. England was tired. Thats one of the reasons why, of course, bad guys were able to take action. I hope thats not the case this time. But you still got washington. Youre still going to come back and theyre going to be at war with each other. You and i are going to say, boehn boehner, that was a terrible discussion. Lew came back and he didnt have anything to say. I guess our taxes will come up. Thats the environment i come to work with, with rates going higher meaning were going to be worried about housing. Its a shunken universe of what i can buy. You keep talking about the idea of this list of goodwiners is getting the island is getting smaller. I look back and try to circle back to all the big winners and who i feel comfortable. Tjx, why . Apparel. Everybody else is bad so they dump the apparel on them. Were not seeing a huge group of stocks that make you want to buy them with gasoline going toward four, with the psyche getting a little bit worse. But that said, there is a bit underneath here. Yesterdays action was not was a little constructive. When i go to the chart and i find sometimes, i dont mind saying it, i go to chartus. Kind of negative because we break some of these averages, we the way, there is markup. End of the month markup that still exists. Before we do retail, what is this idea of monthend selling here because august has been so over sold, is that why were hearing about that . People want to go in and i keep coming back to your data. September is a tough month. Be a little cautious here. I dont like to be cautious. I like to say, go buy them. We have salesforce. Com tonight. Last year was tough. We had guests last night be good but again, williamssonoma what not that good. They made it not that good. They said there was weakness. So you know, you go theres one good, one bad, and then it kind of feels like two bad, one good. I dont have enough good store is are. I just dont. You mention the retail story. Williamssonoma what is trading lower after the accidental Early Release of its results. Dont you love that. Company reporting a drop in quarterly gross margin, bigger d discounts. Jim mentioned gas as well. Trading higher after beating estimates thanks to improving sales in north america. Look, they use the word sometimes on the conference calls, lets go well, west elm, good social media. Then it says retail channel is underperforming. Im like, sell. Sell. But urban, which had a great quarter, does a 10 million Share Buyback announce and then youre on the guest call and its denim selling well. People start buying vf corp. Because they have a big preponderance in denim. Maybe denim is coming back in style. Peoples expectations were low on guess. Remember, also, guess, when you go stwthrough it you get handba and accessories. Accessories, its going up. Handbagses is kors and thats going up a lot. People arent using the coach look. Hard goods within soft goods. You buy accessories and they do well but if you buy apparel but maybe now denim. Its a confusing story. It seems like a confusing story is not leading to a lot of selling. Interesting. If the stock market is a casino, the retail space is like the baccarat room. Nobody has no idea how it works. Players in there are willing to lose a lot of money. These guys are at the wheel of fortune. No matter what good data points we get out of gas or anybody, it doesnt make you more comfortable about the space overall . No, i still think the consumer is trying to figure out if they should go buy a cellphone, whether they should buy a nice tv but theyre not thinking, you know what, im going to go back to macys and see what theyve got. Macys did say back to school was good so i dont want to put the kabash on that. Target and walmart were not good and they are still americas retail. We started out talking about the gdp number. Q4 last year was 0. 1. Then 1. 1. Now were at 2. 5. I mean, directionally its a good story. Phil lebeau with a terrific story this morning with alan mulally. Saying that car sales are fabulous. Truck sales are fabulous. Richard smith was on. 26 of all transactions are done by a Real Estate Broker from realogy. Business still growing. 17 to 19 . No slowdown on existing homes. Did point out new homes because of the way the rates went. Lock in problem there. Not as strong. Youve got existing home sales. We had a number yesterday and said dont worry about that, real estate guys have told you not to worry. Did have good statistics. Mulally saying things are good. Keep cars at holmes and things bought into homes. In a few weeks were going to sit here and talk about Government Shutdown and Government Shutdown no n. 2011. I love kellys work, but 2011, interesting year in her work. Fiscal cliff. Terrible time to buy. Well have a new name. We havent thought of that. We havent thought of it yet and its not going to be positive. Whenever those guys get involved, it generally is not. Well talk more about that in a little bit. When we come back, ford cranking up production of the fusion, adding 1400 jobs at the same time. Were going to go live to the Assembly Plant where its all happening and well hear from alan mulally. And oil prices continuing to climb. Tensions in syria, of course. What what means for the Energy Market and gasoline prices here in the u. S. Futures, though, up for the second day in a row. Not as much as earlier this morning. But the opening bell is not far away. A lot more squawk on the street live from post nine when we return. [ male announcer ]. Time to have new experiences with a familiar keyboard. To update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. Its time to do everything better than before. The new blackberry q10. Its time. The new blackberry q10. announcer at scottrade, our clto make their money do more. Re ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment companies. Gratifying but also we really wanted to focus production in advance. We know we missed it a little bit, were going to catch up quickly. That was fords Ceo Alan Mulally in the last hour talking to phil lebeau. Adding 1400 jobs to meet rising demand for the ford fusion. Making money. Remember the old days they always lost money on the little cars . Alan mulally has the cost structure down and the good leverage there. I think europe is Getting Better for them. He did talk about you ashah, made you feel like asia is not doing as well as japan but thats been alans rap. The best part of that interview is talking about how come the multiple hasnt expanded. That isnt alans job. It is amazing here. Keep thinking its going to go higher. Boy, are they making money on the f150, 250, and the super duty which, of course, i have. Yeah. Nice job by morning joe today, too. Sort of highlighting the challenges in front of detroit. Yes, that was really good. That was really good. Very nice work. Speaking of the consumer, kelly evans talked about it on the i yesterday. Morning, yeah. Not your fathers volatility is the joking reference here but, in fact, theres quite a bit of important things happening below the surface. Gdp report which showed 2. 5 growth, critical. What we need to see is that kind of performance repeated in the second half of the year to support Interest Rates at these levels. Look at whats been happening with regard to where weve seen more of the action lately. Not in the stock market so much, and we can see the narrow trading ranges weve been in. The vix hasnt gone anywhere. The story is about the volatility, guys, in the bond market. Theres a term for this that the fed uses and has been focused on lately. Its called term premium. The fact that weve moved on the ten year. The key Interest Rate which determines everything from mortgages to speaking the cost of finance across the economy, the fact that thats gone from below 1. 7 to almost 3 is a huge move proportionally speaking. What happens is as those rates get more volatile, investors demand more of a premium for that. So thats partly whats been behind the move higher here. Thats different from what weve seen in the past. So as people look to what rates the economy can support, you know, when you think about the fed taper and what its going to do here. Keep in mind the fed is going to be thinking about this and saying that now that Interest Rates are moving around so much and they may need to be higher for people to hold on to them, how much of an impact, how much of a negative impact might that have on the real economy . Thats why i say again, the gdp report is important and you want to now see after that big move, you want to see rates set until here. Were starting to see that. Thats going to be supportive. What you dont want to see are another sort of 0. 1 point up and downside overnight all the time. Richard smith, 26 of the transactions is saying, listen, we just calm down. Were fine. Not calm down for new home destruction because the lockin all for the same reason. The twerk, what is the term . I was thinking miley cyrus. I was worried thats not going to happen. The word erratic is with us. All the countries keep banging down the bonds, right . There are those who argue new homes precede existing so were in for weakness on existing. Yes. Could happen. Refis are down 16 since may. Wells fargo is laying off people in their refi division. Exactly. This is all why. Hsbc, nice note drawing attention to the term premium issue this morning, again, to the volatility in the bond markets is saying they think the tenyear is headed to 2. 1 in a years time. What . Yeah. Exactly. Come on. The Consumer Product goods before gdp this morning. Package good stocks are going down. Those are great proxies for the tenyear. The market in which sees the tenyear closer to 3. 1 . Theyre arguing isnt taking this enough into account. Jim, youre right. If the economy strengthens. We can support a higher tenyear. If they dont, guys, there could be room to go to the downside here. I know thats not im thinking like a jim mccoggin who says four is the pain threshold. Thats the gforce at which you do pass out. We were talking about real estate. Were above five. Mortgages, people say, whoa, 5 1 2, 6, those are now, you know, everyone says the same thing she did. Hey, i first bought my house and i got eight. That is not what oh, well, so these rates are low. The affordability is not as good as it was. In my experience, if youre someone who is under the age of 40 looking to buy a property youre not necessarily thinking of rates at double digit levels anyway. Youre thinking about how low they were. They walked to school in the snow for a mile up hill. My father, gi bill, you know, 3 . I said, hey, listen, i didnt i got 3 , too. Now this lure of who remembers the 3 . The jumbo rates which are frankly practically lower than some of the rates that youre get to think 30year fixed. Anyway. Good discussion. See you in a few minutes. That negative tinge at the end reminds me of the journal articles. I loved your journal stuff. I loved it. When we come back, cramer is going to tell us what stocks we need to be watching in todays trading session. Mad dash is next. Look at few dhuuturfutures. Weve lost some ground here. A lot to talk about. More squawk on the street from the nyse is straight ahead. If youre serious about taking your trading to a higher level, tdd 18003452550 then schwab is the place to trade. Tdd 18003452550 call 18882849410 or visit schwab. Com trading to tdd 18003452550 learn how you can earn up to 300 commissionfree online trades tdd 18003452550 for six months with qualifying net deposits. Tdd 18003452550 see how easy and intuitive it is to use tdd 18003452550 our most powerful platform, streetsmart edge. Tdd 18003452550 we put it in the cloud so you can use it on the web. Tdd 18003452550 and trade with our most advanced tools tdd 18003452550 on whatever computer youre on. Tdd 18003452550 also, get a dedicated team of schwab trading specialists tdd 18003452550 who will help you customize your platform tdd 18003452550 even from the comfort of your home. Tdd 18003452550 and talk about ideas and strategies, one on one. Tdd 18003452550 get all this with no trade minimums. Tdd 18003452550 and only 8. 95 a trade. Tdd 18003452550 call 18882849410 or visit schwab. Com trading tdd 18003452550 to open an account. Tdd 18003452550 and learn how you can earn up to 300 commissionfree tdd 18003452550 online trades for six months with qualifying net deposits. Tdd 18003452550 our trading specialists are waiting to help you get started. Tdd 18003452550 so call now. Tdd 18003452550 just by talking to a helmet. It grabbed the patients record before we even picked him up. It found out the doctor we needed was at st. Annes. Wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. [ female announcer ] today cisco is connecting the internet of everything. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Just about seven minutes until the bell. Lets get cramers mad dash before the market opening on the thursday. Weve been talking about the organic fresh food space for so long. It might be getting crowded . Like the williamssonoma what call there was a moment that took your