Hedge the geopolitical dynamics this morning. We begin with a big shakeup in the Dow Jones Industrial average. Nike and visa replacing alcoa, hp and bank of america in the benchmark index. But the markets dow included still facing head winds. President obama making his case for the nation tonight for action in syria. Mcdonalds samestore sales handily beating expectations with europe leading the charge. And just hours from now apple expected to unveil new versions of its iphone and other select products but could it have Something Else up its sleeve . But well begin with goldman, visa and nike being added to the blue chip index at the close of trading september 20th. Theyll replace bank of america, Hewlett Packard and alcoa. The indices says the changes were because of the low stock prices and the desire to diversify the sector and industry representation in the dow. Interestingly, although goldman, nike and visa are all beating the doubt for the year, hp is the best performance component this year. And one of the things that weve seen is that people buy these stocks in the premarket and theres not a lot of money, meaning very little index to it so they tend to give it up. Thats one of the reasons why people say, hey, every time theyre added they go down. Well, no, theyre added, they go up because of this mistaken idea that it really does matter. Its, as sandy weill said, great to be in because its a great hall mark. Dont trade premarket in these stocks. And it may be a reflection of sentiment in some larger way or history or the place for these companies at a certain point in time. As you said, theres no money indexed against djia. The higher the price the more effect on the dow jones. Thats the other reason why nothings really indexed against it and it also makes it statistically almost meaningless. And thats part of the problem. But they started it that way so they got to keep it going that way because you cant change it. No, and, look, lets talk about the ones that are in. Visa. They are doing fabulous. Better than this is visas time. Weve been talking about the comeback of m a. They took out the makers and brought in the takers, meaning the manufacturers, producers like alcoa are out and those who take a percentage of a fee like a visa or goldman are in. Now i think im getting a sense of why this did this today. Its your birthday happy birthday, carl there you go. Got it in there. That and a champagne phone. Got it in there. They are adding a lot more market cap. Certainly alcoa is. Weve wondered why that was in there for a long time. Dont say that. Alcoa was at 40 before the crisis. Its a metal that is used in you know i like claus after this kleinfelt is just a place to buy a wedding dress. They are in turbines for cans, they make the skin for the apple tablet, theyre a huge aerospace play, a big Construction Company play, unfortunately many of those are bad, except for aerospace. Did you know there are 3 million screws in no. Before you diss alcoa. I did not diss alcoa. What does visa create . Some share appreciation. Some capital. Yes, yes. Visa will be the second most important stock in the index and goldman will be the third most important. Goldman . Yes. Its a tribute to lloyd, right . Lloyd dow jones blankfein, right . At first i thought it was because his kids in Business School at harvard. They mentioned in the article about gender problems at harvard Business School. Everyone should read that piece, its amazing. You want to move on . We didnt say anything about nike. Is china coming back . Nike and u. S. Have been strong. I bet you nike is going to be strong in china. Do we have any statistics, by the way, in terms of how well the stocks have performed . The dow once theyve been picked for the dow . The ones that leave do better. The ones that leave are the ones that perform apparently better. So better off buying the ones that are going out as opposed to the ones coming back. Should we call meg whitman . I actually did wonder what she had to say about this today. You always say its a dow jones company. Its a little bit of a blow to psyche. Yes, ego. Ego, psyche, but thats it. I dont know about rg3s feelings right now. No gloating. Theres 15 games to go in the season. New york the season is over. 10 is all i care about. Weve lost all the opening games in the last 72 games. Sorry about that. Had you a good game last night, it was a forfeit game. Werent you 90 . Isnt that a forfeit . In little league, its only three runs. President obama is going to address the nation in primetime in an effort to convince the American Public to support military strikes against syria. The latest nbc wall street journal poll suggests he is facing an uphill battle. 60 of americans Want Congress to vote no on syria while 24 believe that striking is in the countrys interests. I think what were seeing is a credible threat of a military strike from the United States, supported potentially by a number of other countries around the world, has given them pause and makes them consider whether or not they would make this move. And if they do, then this could potentially be a significant breakthrough. Of course well have live coverage tonight on cnbc, the president s address to the nation. Thats the 9 00 p. M. Eastern. To me this is still in flux. I think its kind of like everyones waiting for assad to do something bad again and then it not even goes to congress. But there is now this potential diplomatic track, backtrack available, if you will, that the syrians are saying were going to go along with the russian plans and it is possible that there will not have to be military action. I think Ronald Reagan would have a good laugh at this, right . The russians are going to do a really good thing and protect us from the i mean, come on. Russia, syria, these are now were back to the era where thats brezhnev saying, listen, dont worry about it, we got your back covered there, jimmy carter. There is a bit of a cold war element. Isnt it . Reuters says that the president will still make the case that Congress Needs to authorize force. Whether or not he needs it in the end is a different question. But that issue of verification is increasingly coming into play. Would you argue its the single most important reason we gained 140 snounpoints . Yes. We know war historically has been good for stocks. There was a notion that oil is going to go through the roof, even though syria is not a big oil producer. Actually, its been an importer. Uncertainty versus that nothing happens has moved it up. Were in a weird look at the mcdonalds sales, that was europe that turned around. Mcdonalds did have better gains in europe. The company says its mcdnlds promotion offsetting what it calls a persistently challenging environment. A year ago the u. S. Was 3 and now. 2. What is happening . Difficulty in the disparity of competition has changed. A year ago we didnt have the smash burgers to such an extent or the chipotles or wendys. Ive had the bacon cheeseburger. I went to the cardiologist immediately after. No particular hey, i had a twohour workout from 4 15 to 6 15. What do you . I was sleeping. I was pumping. I can have seven of those bacon cheeseburgers and no one will no the difference. Have you tried the blitz box . I would not have seven bacon cheeseburgers. The blitz box is 14. 99 special, two quarter pounders, two chicken mg nuggets. I can eat that. There is a weird dichotomy going on here now. Sprouts market, which is all about whats good for you gets a couple of holds and a sell when it comes public today. Suddenly everybodys taking wendys through 8, mcdonalds has the wing promotion. Now that im entering this restaurant business, you dont make a lot of money on the food its about the booze. Its all about the booze. Thank you for knowing that. If you have the liquor license. Im working on it. You didnt mention the burger king french fry burger. Have you tried that in. No, i havent. Theres a lot of sense that you can kind of eat what you want from some people and then the other is, you know, you got to be vegan. By the way, the mcdonalds numbers came out almost an hour early this time around. Maybe because they felt they had some good news and just couldnt wait. The timing was almost 58 minutes before they normally come out. By the way, you want to play on this . Mcdonalds had very good number in u. K. Starbucks i think goes through 73 today. Its a terrific place to be. Europe coming back there. All right, lets move on to apple. Yes, about four hours from now apple will hold an event at the companys headquarters in california. Theres been speculation that apple will release a newer version of a iphone 5, as well as a cheaper version and that they will be available in colors other than black and white. The key question, do we get something unexpected here that would move the needle so to speak. Wouldnt that be something to get something unexpected. No, were not going to. These guys are not unexpected. They dont have drama. Drama is good and bad. I do point out the cheaper phone is a great way to get into china and that china is the story of this market right now. China. China, which is coming back. Isnt it funny how everyone wrote off china . People have always questioned the numbers and there certainly was a decline. Lets not forget gdp is going to be lower than it was not very long ago. But to your point, i think it has really started to rebound in a way and the things you can measure, electric power, for example, which is a favorite of many people i love that. Thats why joy global has been moving up. The imports 25 and exports go to europe say to me there will be an up year. Caterpillar, sorry, it soars higher, even though theyve made many miscues in china. A rising tied lifts all boats. As far as capital, apple, looking at at 4 the came, down, the 3, down 4 , the 2. 2, down. Maybe drama doesnt play. One guy who loves drama is carl icahn. Its still a cheap stock. It is a cheap stock. Any way you want to mention it it continues to be. Well see what his dinner with mr. Cook brings. Where are they going . I dont know it. Do you think it will be wendys . I dont think so. A lot of analysts are below of price targets. That gives them something to say. I dont want to go out there and say i was wrong. China, im going to raise numbers and the stock goes to 650 and thats how you get these pingpong moves. A lot to talk about today. When we come back a warning for the Financial Sector. Former chairman of citigroup, sandy weill, says things are worse today than they were. Thats next. And senator johnson will be with us when we come back. A look at futures here. Pretty good action and theyve been steady all along. Europes all up and we just carried along about that. A lot more from squawk on the street in just a moment. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. 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. Take a look at what has come to be a familiar occurrence on the day of the apple release, the istore goes down. Youll be seeing more action on that page in perhaps a few hours. That event at 1 00 p. M. Eastern. If you think its going to be a big launch, ups has historically done well with a big launch by apple. Might be an interesting play here. Thats a good one. This morning sandy weill returned to cnbc more than a year after appearing on squawk calling for a breakup of the banks. Earlier this morning, the former chairman of citigroup said breakups would not be necessary if we have what he calls the right regulation but hes concerned some regulations have yet to be finalized. If the way the regulations come down do not allow entrepreneurship and do not allow people in the financial industry making mistakes, and because of risking taxpayer money, i think thats going to make our financial industry completely ineffective. Some of trying to make this a walk back of his previous comments. Jim, what do you think . I think it was a walk back of his previous comments. You took the word out of my mouth. It was almost like that july interview didnt occur. It was mystifying to me. If you dont want to risk taxpayer money, then maybe you do break them up to entrepreneur because none is too big to fail . It was an enigma. Wrapped i in a riddle. Yes. He was talking about wachovia bought by wells fargo. We had this amazing Bank Concentration but not a lot of people worried about it. Not a lot of people worried that wells fargo was 30 of the mortgaging market. I dont know. We had just a couple of weeks ago layoffs in wells Mortgage Business because of what theyre calling a weaker refi market. That sentiment was echoed earlier this week. They started taking up the housing wells fargo yesterday at the financial conference was making comments about the weakness in mortgages. Not a big surprise. Most of it centered on refinancings, seemed to have run their course. I had Russell Goldsmith on mad money last night. Theyre seeing commercial, actual lending, he did talk about in california theres only less than three months inventory left, prices are up. Be careful, californias too hot. Ninth largest country, california. After yesterdays rally, how can we keep the momentum going in your portfolio . Cramer has you covered as mad dash is next. Were squawk on the street from the nyse straight ahead. [ female announcer ] youre the boss of your life. In charge of long weekends and longer retirements. Ask your financial professional how lincoln financial can help you take charge of your future. [ male announcer ] the parking lot helps by letting us know whos coming. The carts keep everyone on the right track. The power tools introduce themselves. All the bits and bulbs keep themselves stocked. And the doors even handle the checkout so we can work on that thing thats stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. So everyone goes home happy. I would have to say its tougher than we hoped. When you look at the data, you would expect it to be more robust. Right now the apparel area seem to be a little soft. Were about lets call it five minutes or so from the opening bell. He always gives you a very good sense of what was important there. It was just a bummer. Last ten days, not that good. End of summer not that good. Well, going into back to school, really a sense that the u. S. Apparel is not that weak but man tirico, its tommy hilfiger, its he was so down, i was trying to cheer him up. Its important to make the distinction the consumer does not seem to be as weak as apparel. Yes. Theyre spending on Different Things because best buy is doing better, restoration hardware. That could be a tell of what theyre spending on. What do people make a decision together, suddenly im not buying any more clothes, im going to buy shovels . Thats what i talked about with manny. I said how does the country collectively decide theyre not buying apparel. I felt better about penney after speaking to him. Now ralph lauren had a not great quarter and thats a fantastic company. I think you ought to be careful. Manny tirico is the best there is. Well watch those names right there. Coming off the first close about 15,000 in two and a half weeks. 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[ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. Youre watching cnbc squawk on the street, live from the financial world. The opening bell expected in a few minutes here. After losing over 5 off the august high, were up 6 of 8 sessions, a lot as a result of better Economic Data around the world. The hopes tonight, jim, that today the president s speech will prevent us from war. This happened when Interest Rates went up dramatically. It almost confirms if business improves, it probably can offset it. Its different stocks going up now, international stock, but i think thats important. Weve made great progress in this environment. Theres a look at the opening bell. Crane funds adviser celebrating the fiveyear china plan, telecommunication provider celebrating its first day of tradi trading. Remember how bad august was on the s p . It was terrible. Weve recovered 73. 4 of it, the dow has only recovered 36 . Nasdaq has blown it away. Nasdaq is up 116 points for the month. I saw the nasdaq in september of 2000, september is supposed to be a bad month. We came in thinking u. S. Might not be that strong, europe and China Gathering a head of steam. Its just a different set of players tha