The markets, tensions growing across the globe this morning so why are stocks set to open higher . Not a lot of good news for mcdonalds, and why asia is troubling for the fast food maker, and gap is not struggling after same store sales. Whats leading the Company Higher . Cbs making shows for netflix behind the ceos big plans for the streaming service. Breaking news from Michelle Carusocabrera back at hq. Busy morning, michelle. We want to update what the president said last night, two u. S. Navy f18s dropped two 500 bombs on isis enemy forces this morning. No word on casualties, fighter jets flew off the uss george w. Bush Aircraft Carrier in the persian gulf telling nbc news, two navy f18 drops two 500 bombs and in addition, the pentagon tweeted out details as well saying the u. S. Military aircraft conducted a strike on isis artillery used against Kurdish Forces defending u. S. Personnel. As the president warned last night, that arab strikes occurred this morning trying to protect u. S. Personnel. Remember, we have a consulate there, one in the south of iraq and a full embassy in baghdad. This is the u. S. Diplomatic locations where we have u. S. Forces. Carl, back to you. Thank you for that, Michelle Carusocabrera. Jim, markets having to weigh this news, not a surprise with what the president said last night. Headlines, vague, russia interested in deescalating the conflict in ukraine. I was making notes on the august, september, october 1990 rallies on friday where people felt there was a deal with iraq. Were back in that period where james baker is speaks and think that somehow theres going to be a deal with sodom. There were three spikes that people really got faked out about. This is all about not about iraq. Im talking now about iraq 1990. This is the way russias playing out. More interested in ukraine . Not the least bit interested in iraq with the stock market. Totally interested and focused you dont believe interested in u. S. Military loss of lives because so many people lost their lives in iraq for so far, not a great thing. Im ricveted by the idea at 3 3, the futures were down. You get up early when the futures do this stuff, you got to do it. We gradually got up, and someone thought merkel had a conversation and putin is speaking softly, and thats continued. Unless we hear something midday to near the end of the day, someone says, you know, theres nothing going on, but if we hear of any talk, theres a short squeeze into the weekend, and when nothing happens, we open down 13 or 14 on monday. That was the pattern established clearly in 1990, and its the pattern to revert to. You cannot play this. Meaning dont buy it . Dont buy it . Until you see our president make some comment which indicates ive been talking to merkel, im concerned, but talking to merkel. Merkel is the one to solve this. It cannot be solved by our president because they will not turn off our natural gas, but theirs. They are elected leaders. They dont want to be thrown out. They are not looking at the stock market. Listen, lets just come to the table, but they are looking at land and september of 1938, made a bad deal with hitler. Thats the way they think on this stuff. You have to see merkel on the phone with pew tip, and then you can buy them when the president says it was a fruitful conversation. What about the argument that the breadth this week, its been negative by a hundred points on the dow, not as bad as last week, short term exhaustion at play. I think what happened is this is a Procter Gamble market because rates are down to 2. 3, and were in the hunt for yield again. Watch the stocks. The money shifts back into yield, right, given the fact that bond market equivalents have to be strong even in the face of weaker earnings by the companies. Kellogg and general mills, hideous quarters, but bouncing well. Clorox had a good run. Proctor, okay, they close a hundred, 78 to 8 1. They are just bonds. They are bonds. Right. Its not helps mcdonalds though. Thats not a bond, man, i dont know what that is, wow. Worse than expected july sales globally and across the individual regions, sales in asia, of course, particularly bad, which they attribute to the food safety issues with its supplier. Global comps down 2. 5, looked for 1. 2. Asia pisk down 7 00, they think that was the supply chain issue out there. When i saw that people say europe was not bad, but japan down 17. There is a revulsion. Theres a sense around the globe this good tasting food is bad for you. I put up mcdonalds against white wave. Soy milk. Im not a fan of it, its sweet. I like almond milk. Its less sweet. 44 growth for lightweight. Plantbased foods are front and center, and and that stock up 0 10 , best performer yesterday of the major stocks i follow. Why . Its the antimcdons. People are getting wise. They dont want to eat there globally. Not yielding 3 preponderate 5. Its a junk bond, junk food, junk bond. Man, that was good. Thats the harshest thing you said. Sometimes i surprise myself. Faber would say, thats not bad. Junk bond, junk food. You were in soshi. Its before and after sochi. That is when Interest Rates went down, the High Water Mark relations with the United States. Look, you were telling me, like, you guys were cavorting. Now, thats the last place took that off the list of preferred places i want to go to. Looking at the world, okay, Interest Rates going down, but unless you have a situation where the yield is firm and youre not concerned about the funds not mcdonalds. They have a great balance sheet, but cant have the numbers over and over again. Im giving up on the food chain. I hate the food chain. I hate the food chain. How tight is the leash on don thompson . The company need an engineer like he is or a food guru . They are not doing much with affinity work. He could say, jim, panera offers a better menu. They are not doing well. I come back and say, well, okay, what company put up numbers that are just amazing . Economy p chipolte. That downgraded today. Be careful because qdoba had unbelievable numbers driving up jack. The fiesta group doing plus7. They have the petina of plus7. The message is getting through to the generation x. Generation d, they want to destroy you. Social media makes it so you cannot eat that stuff. Yeah. Its becoming i went to mcdonalds in vienna, had to, you know, you you go to mcdons for certain reasons, not for the food. Yeah, absolutely. You just go. I look at mcdonalds and yum, and what i think of is processed food, and its just processed food in china is bad for you i mean, this is not a good trend, and i think all of our Food Companies have to accept the fact that you have to go white wave. Earthbou earthbound, clean salad, that was just incredible. Hard to source on a large scale. No, absolutely. You have guys wow when you hear of genetically modified food, listen, thats great, feed everyone on natural and ogranic . We prefer people not to starve. Were in the nonstarve game. Exactly. Doesnt mean you have to eat at mcdonalds. You can eat at home. That will be a drag on the dow this morning. Yes, it is. Gap up sharply in the premarket, more than expected, 2 rise in july for comps. Retailer provided better than expected Second Quarter earnings guidance, strong sales at banana helped the gap the most, and old navy up 3. Saw that. Looked good. This thing has become month to month, and i dont like that. Last time was not that good. This is a hedge fund game. Betting on how, you know, Banana Republic is doing. Be careful with gap. They are so incredibly inconsistent. You cant create a trend on a very short period of time, but, yes, congratulations to them, seemed to pull it off here. I think that when you look at these mass retailers, you dont see a lot of Apparel Companies doing all that well. A Sporting Good company, hideous numbers, but it was not nike. Under armuor doing well, hit or miss. Under armour sticking it no lulu, selling half the stake, a proxy battle. Went to a pe firm so they say buy it. I think if you recommend stocks on a takeover basis, have good fundamentals, and lulus are not good. This is no underarmour. In the meantime, hawaii preparing for two storms, iselle battling the islands with winds and rising surf with Power Outages and downed trees, more than 1200 people in Evacuation Centers across the big island. Others stocking up on food, supplies, gasoline, emptying the store shelves, look at that. All this as hurricane julio gathers steam, its now a cat 3 as of late last night. It will be expected to past north of hawaii late monday, but this is the first time in decades the islands had to deal with this. Yeah. Hopefully the big island did take some of the wind out of iselle. Had a smart guy from walmart on squawk talking about how ready people are, reassuring. Its water. They need water. That tended to be they got it. They figured out a lot. Well, at any given point, the food, aside from pineapples and fish in hawaii is imported. Yes. Flown in. Ive been to hawaii, and it is inincredible. It does not have a lot it is an oasis, but one that needs a lot of food. Yeah. Vimeo taking on youtube announcing three of youtubes biggest stars with millions of followers are jumping ship to go to vimeo, the ceo joins us this morning. Plus, what the cbs chief said having people buzzing. Interesting quarter there. Look at futures. Does not look dramatic, but its a long way from the selloff jim mentioned last night. The press secretary tweeted the u. S. Military aircraft have conducted an air strike on isis or till lair. Well see what that means for the futures today. More squawk on the street in just a minute. Two media giants reporting quarterly results, cbs beating estimates by 7 cents, revenue fell short. And the ceo says the Company Might sell rights for new shows to outlets like netflix and amazon, and news corp. Reported one cents a share, missing by two cents, but revenue beat. Interesting cbs, up front, disa pointing. The chatter was fine. He went on, and while the head lines came out, the stock was clobbered. Im used to the pattern with the media companies. Your get on the Conference Call, and he says, okay, you want to sell stock . Go ahead. Well buy it. The doubling the buy back. Yeah, that was i mean, when people at home, when the ceo comes on a call saying were going to double the amount we buy, dont sell to them. Buy with them. I mean, why . We so out think things. Hes saying, listen, well take every share you have, and so you then dont say, you know, im going to sell them. You dont do that. By the way, they have a lot of franchises that are doing quite well, and i almost find when i hear that people say that theyre peaking, i come back, an i say, well, if they are peaking, they are just a franchise creator. Okay, disney, theme parks, showtime doing well. There was a lot on the call i liked, but what i liked more than anything else, nfl thursday. Its going to be a home run. It is going to be huge. Going to be huge. Taking thursday by storm. You know, a lot of people asked is the nfl peaking . I say, well, its peaking because its peaking like this. When i was in philadelphia last week, how much do you think the franchise cost . I dont know, how much is Steve Ballmer willing to pay . I dont know, 7, 8 . Nfl is red hot. Dont believe for a minute were not going to stop on thursdays. Heres les moonves talking about selling content to netflix. Well have more intergnarl and domestic licensing streams dealing on the syndication front like the extension with netflix for the Library Programming here in the u. S. So we feel very good about the quarters ahead and about her long term growth process as a content Company Going forward. A good quarter. Spin off cbs outdoor, now over aereo, and now this. Aereo, no one on aereo anyway. Les is confident. Les is in the Conference Call. I love a confident ceo. If you listen to the zinga call, not as confident. Yeah. Netflix, this is the second ceo of the week who said, you know what . Were in bed with netflix, the other one was bob that stock, by the way, ridiculous, back to 85. That represents the world wide slow down tweet i gave you. Yes. People are saying people are not doing as much or going everywhere and travel is going to be down. Post 17, which i said all week, a game changer. The High Water Mark of globalization may still saying this may have been sochi. We have to be careful. The world is slowing. If youre in certain stocks that require travel, industrial, autos, believe me, the numbers are in jeopardy right now. In jeopardy. Driven by geopolitical up certainty. Yes. Driven by russia. You know, you know they are not focused on money. Go over to the best book on world war ii talked about how the business interests said, listen, hitler, we can deal with it. Business said dont go to war. Sure. If youre a major leader, like, dont let business tell you whatted too. We did that once before. Putin is not hitler. The idea im totally think that putin is a bad actor here. Sure. But recognize these leaders know that if business comes in and says, listen, you have to help us. They are not going to help you. They are not going to help business here. Timely on news corp. , we have to mention too, they did miss by 2 cents. News and information revenues down 6. They had good Book Business over at harper ca eer collins. Ad revenue down 9. Look at ginett, that has momentum. The australian papers, what do i know, but, come on, bring it home. Cramers mad dash, counting down to the opening bell in a minute. Heres the premarket as we recover from the losses overnight. More squawk on the street in a minute. In a world thats changing faster than ever, 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. White chocolate loversividual. Dont like dark chocolate. Milk chocolate lovers dont necessarily like dark or white. Before we couldnt really allow the consumer to customize their chocolate. We needed a scalable Cloud Solution allowing them to select what they are looking for. Now there is endless opportunity to indulge. Customization is made with the ibm cloud. The ibm cloud is the cloud for business. About seven minutes until the bell on friday. Lets get cramers mad dash on the market open. People talking about a new king of networking, and its a risk to networks, a remarkle call last night. This company was public earlier this year, probably will be the best ipo. People do not talk about it they should be. They are what people regard as being the next generation cisco. Be careful. Cisco dont underrate cisco. Morgan stanley say august 13th, theres a good quarter. People spend, this is Cloud Network infrastructure, and when you hear the term cloud and network and infrastructure stop thinking about a risk to record, but networks. Not a clive davis play. No. Herb albert. Hey, hes smart. He sold at the top. He heard about the ipod, digital music, and he said thats what makes me sell at the right time. Greatest businessman ever. Its a quarter recommended, and the numbers too low. Its been the numbers have been too low since being public. Smart guyings. This fits in the cloud theme . Yes. And the ciscos . Yes. Cloud has been dogged at late, high multiple stocks, but, yes, cloud is game on as is did concur technologies, the travel companies, the companies with great momentum. Focused on russia. File it away, you know, theres no deal with russia over the weekend, opens down, thats when you buy stock. I imagine you dont want to buy it up 8 is like you hope someone comes in up 12. Thats not been the way that its worked in this market as of late. Right. Postsochi. More to cover, and opening bell in five minutes, squawk on the street will be right back. Today from the wall street hot seat to backyard sizzle, how the former executive changed his life and pursued his passion trading big when the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with paper money to testdrive the market. All on thinkorswim from td ameritrade. Youre watching squawk on the street on ynbc this friday. Opening bell in a few minutes. If youre just tuning in, futures rallied 20 points on the s p since the lows last night. Weakness on the heals of the president s announcement since he authorized the air strikes on iraqi milmilitants, and the strs have now happened according to the pentagon. Slow down to end all slow downs there. When they raised retail, thats as dumb as is gets. We rebounded, and you dont like it . I dont like rebounds based on people betting there could be something going on because they just hear chatter, and then it builds on itself, the shorts cover. I like the markets that open down and pick among the rubble, particularly the yielders. I dont like markets opening on an air pocket because i think numbers are coming down, and by that you mean . I think the estimates are too high now for the international industrials because of the slow. Naslow down. I think up to 20 exposure in europe. Add net, reported great number, stock down 10 . Why . They do business in new york. Europe was strong for them. Everyone says that was, not anymore. How about the notion, all right, at 1920, theres a buy the dip mentality, 1890 like last night, thats not the case. Buy the dip works if the numbers will not come down, global wind at your back, buy dips. I worry about the numberings for the airlines, worry about the numbers for the transports and industrials. I just dont see numbers going higher. They go lower. Its great to buy a dip when profits go higher, not when they are stalled. With all that, theres the opening bell on this friday. A look at the s p at the top of the screen. Down here at the big board. Lng partners celebrating its ipo. That should be good. People want to transport lng. Thats the energy, what a win. Over at the nasdaq, compass emp celebrating its listing. If there is a deal usi