Banks report earnings and revenue both handily beating estimates. Earnings dont symptom there. Ibm, and amazon in the next few days. And very close to home, an important week for the comcast time warner merger, a meeting with the department of justice is set to try to ensure that deal is not derailed we begin a new trading week Chinas Central Bank cutting the reserve ratio by one percentage point to stimulate lending. They still, guys a lot of no progress being made regarding greek talks and the deadline that is fast approaches. Then of course 472 Companies Report this week 146 in the s p. I think thursday is the single busiest day of earnings season this week. Industrials, Consumer Staples and technologies are the three groups up to be watching this morning. So far this morning looking pretty good. Even halliburton, which had gotten beat up obviously, managed to post a pretty good beat on the bottom line at least. Its probably worth pointing out that the move by china is very reall sure because this 100 basis point cut in the reserve requirement and actually deeper cuts is actually quite good arguably if youre in this country, the market more reassured by the biggest debt do bear in mind that the chinese stock market and our stock market have decoupled while you see them down today in china, and down about 4 for the last week theyve more or less doubled there in the last year. Air mentioned a lot of industrials, but later in the week boeing coke mcdonalds, you name it. As far as themes to look for in that group, strength of the u. S. Consumer will be among them besides, of course the impact of Foreign Exchange and how the companies are weathering them reduced sales by 9 still managed 5 top line growth. Thats certainly one ill be watching. Well see. Thats been one thats been able to sort of buck the weaker economy. Well see if it can continue posting impressive sales growth. Another question is whether investors are will to forgive or forget. There did seem to be some forgives in though friday hard to pick ultimate on a theme. Whether it was perhaps a responsibilities to some earnings that have not been as strong as perhaps some hoped for. It is worth that were less than 2 away. Even with the falls you had on friday. Lets talk about it. As simon mentioned, futures are pointing higher, as we begin the new trading week. No data today, barry, earnings taking center stage. Are you seeing reinforcement, for instance this morning that companies are going to manage to beat what has been pretty low expectations . Yeah most of the earnings weakness was in energy and basic materials. Most of the s p was looking okay. The market historically doesnt react that negatively to small changes in earnings growth. What we really need is reflationary traction including growth out of europe and more stability out of china. Is it reflationary traction what were seeing in terms of the massive global qe party that china perpetuated and kept going over the weekend . Its interesting that the u. S. Went into qe in late 2008. You wery lrto and now china is considering the same program. Most of the world is on about a three 1 2 year lag, and so whats going on on the reflationary traction side i actually like. I would like to see better action on the fiscal side though. Barry, whats the next bounce of the ball as far as the markets are concerned . What happens in the second half of the year do you think . Youre starting to see some of the correlations shift in the market. We had an up market when we had weak commodities, a strong dollar and falling tenyear yields. Now all of that is reversing. We want the tenyear to stabilize, and we want the dollar to top. That would be a sign of global growth. Barry, i want to pick up a point that almost got lost at the end of last week. We were all interested as to what happens when the fed starts raising rates and questioning why theyre delaying that action as vehemently as they were. In the imx stability report as im sure you saw, there was a headline there that they think when the fed starts raising rates, that the tenyear treasury yield could effectively jump by 100 basis points which would obviously be a huge move. Theyre saying thats not unrealistic. If that happened, what would the fallout be for the market . Well when you remember greenspan hiked rates ten years ago, his conundrum was the lodge end actually fell. So no i dont expect a huge up move. Any positive move, a small move would actually be bullish, because we need that reflationary traction. What were getting with a sub2 yield, and we have to overcome that. You know help us prepare for what is going to be a heavy week for earnings. Were also going to get some housing data. Is it enough to have a bottom line beat and higher Profit Margins . Do we need to start to see real Revenue Growth . Theres less patience for what were seeing out of the corporate america. Yeah we have overcome the concern about the lack of topline growth. Corporations as the precash flow diminishings Capital Spending returns, margins start to peak wages start to rise youll get alternates more Pricing Power offsetting the diminuteishment of the buybacks so i would expect that to be a positive thing, but its going to take time. Dont expect a lot from top line. What industries are you looking at . Where are you putting your money to work as we head into this heavy earnings season. Well the right now the best way to go as far as the market has been as long as the dollar was strong you were in health care but energy is actually where you have the biggest potential bounce. Basic materials is really leveraged into the chinese growth. They need to stabilize the growth there. That should pick up as the year goes by. Global industrials would pick up if we have some Capital Spending late cycle. That would be a good moving for some of the Consumer Discretionary or staples, but on discretionary, the mid sellclass consumer will benefit from the Cheaper Energy and rising wages. Theres nothing wrong to be in discretionary, you just have to be selective. Well that is assuming a few factors including the fact that the dollar has peaked and oil has bottomed. Are you convinced we have seen that . Were seeing some pressure on energy this morning. We do have a bit of an oversupply situation in energy, but we also have a minus 50 yeartoyear change so i dont expect it to be a straightline shot back to 65 or 70 but we should stabilize around the 65 70 level, sure. Thanks very much for joining us northern on energy and the stock market. Barry bannister is with stifel nicolaus. Profit was up 60 james gorman calling it the firm as strongest quarter in many years. Morgan that stanley also becomed you its quarterly dividend. Return on equity does exceed double digits that excluding a dba and net discrete tax benefit. Looking through the report or at least through the press release about the report equity sales 2. 3 billion up from 1. 7 billion a year ago reflecting what Morgan Stanley said is strong performance, advisory revenues as you might effect were up shatterly to 471 million from 336 million one year ago. And Wealth Management, somewhere so much of this companys future current and future performance is based, had a Strong Quarter. Net Interest Income in particular 689 million, higher deposit, and loan balances client assets now 803 billion, thats up 11 . Overall a Strong Quarter for Morgan Stanley, the stock which does appear to be poised for at least a higher open this morning. You can see it there perhaps as much as 2 or so . You can look through all these press releases all you want even the 10q. You will never get a full idea of how much Financial Risks theyre tailing, but we know the fed is watching them very closely. Dont just base it on all the of the things you see we have all the five of the big investment banks out and r. O. E. Pretty good. Pretty good getting back to double digits as goldman did, as we saw here. I think jpmorgan as well. Impressive. There was a time many thought r. O. E. Would stay in single digits. They continue to come out from under this very stringent not out from under the regulatory regime, but adjusting to the various changes in terms of capital and what their business cuss do. I like the reuters angle. They have following this horse race for number one in equity trading. At the tallied it up at the end. 2. 27 billion was equity trading revenues so it wasnt quite enough to take the throne, i guess thats been a pretty heated battle shares of hasbro in solid demand for toys based on transformers movies and marvel comics. I think jurassic will feature well here. 13 cents above the 8 cents that were expected on the earnings per share. Piper jaffray is talking about how the management is executing so well these license revenues up other 70 year on year particularly in the boys sector. People are asking why girls was down 16 . Maybe you can explain. Some weakness if furbees as well as easy bake oven. That never came through for me. No my compliments do not go to the chef. We gave up on it after a while. But as simon says boys up 10 preexile up 22. They make playdoh. It kept them entertained for the entire meal. They were quiet and good. You liked that and you can eat it and nothing will happen. I even asked that. Apparently it stays the same color [ laughter ] when we come back the latest on the comcast time warner and department of justice deal. The and the cruise operator lowering guidance. And the strong dollar. Meantime, the premarket looks good as the chinese ease overnight. A lot more squawk on the street in a minute. A number of stories, starting on lets call it midday friday pressuring shares of comcast and Time Warner Cable. Meetings are expected to take place this week between comcast and the department of justice, or so reports wall street journal. Comcast shares for their part were down on friday on a bloomberg story indicatic some position at the staff of the doj. Frankly many have expected the main opposition were there to be opposition would take from the commission, and be focused on the broadband power, if you will that these two combined companies would have given the new definition of broadband at 25 megabistsmegabits though there are no barriers of intrigue bringing high speed to your customers but weve been waiting for a long time for this deal. It was announced in february 2013, 2. 75 shares of comcast for each share of Time Warner Cable. Of course there is no brake fee. Some of we remarked on. We do know charter had great interest here if you go back to my first reports, i guess two, three years ago about charters interesting. If you are to take the charter math and look at their original deal or their original offer. 8254 in cash there has been a significant spread due to concerns about how this all ends up in a regulatory framework. What concessions will comcast be willing to make of course the Parent Company and what will be asked for. If the fcc is going to regulate or some analysts if the fcc is going to hone down on the regulation, and regulate the entities as never before why do you need the doj to come there . This suggestion theyre extracting specific measures they might ask them to sign up to the new definition of the fcc, regardless of whether its upheld in cold. The fact that its going to this hearing, people are drawing conclusions from that. Its not going to a hearing. Theres no set thing on a hearing thats the threat though. Correct. What theyre having is a meeting with the doj. The comcast spokesperson says we continue to believe our transaction will bring substantial benefits to consumers without any competitive harms, and 17 days in the market already a billion, thats the faster run to a billion ever with 294 million domestic, so theres a shade of good news on comcast stock today. Well see. And doing well overseas. It took eight days to growth 250 million in china alone through the new era of big box. If this deal were to break, and were not saying it will of course theres been a great deal of speculation. Dont forget charters deal to acquire of Bright House Networks we reported on is contingent on this deal happening, so that deal would no longer happen and then a lot of questions about the future. Just because charter might have interest doesnt mea Time Warner Cable would be interested in doing the deal. We expect they might be interested in doing a bit again so that which actually had a pretty good quarter most recent quarter. Keeps the cable drama going. Lots the countdown to the opening bell. Art cashin will be with us as we kick off a new trading week. It looks like were set to open sharply higher. More squawk on the street straight ahead. It took tennis legend serena williams, fencing champion Tim Morehouse and the rockettes years to master their craft. But only moments to master paying bills at chase. Com. Depositing checks at the atm and transferring funds on the mobile app. Technology designed for you. So you can easily master the way you bank. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Big week of earnings start in earn zest this morning with Morgan Stanley and ibm tonight, chinesing overnight as well, cutting their reserve ratio. Thats let to a big upside action. Well see what happens when the opening bell happens in a few moments. Lets bring in art cashin. Good morning to you. People are still wondering about friday whether it was another test where Retail Investors bought the dip . They certainly did. The figures indicate that retail was a better buyer than seller. I think the selling may have come from at least part of it from europe because it continued on. You know when you cant sell what you want where you want to sell it the german marks was down the equivalent of 400 someon points. But we had that combination, kind of a mixed blessen out of china, cutting the reserve requirements. Their markets were closed when they sit down margin trading. They were still closed when they changed the reserve requirements. The combination of twot let to a somewhat softer trade. They had been off 4 or 5 before they changed the reserve requirements. So weve got a mixed picture here. I would look to early resistance in the s p, up around 2094 2098 and see where we go. Its hard to believe after all these twists and turns, the dow is flat for the year. Here we are at break even. Where is the next leg, the next direction going to come from . Is it the fed . Earnings . Overseas . First of all, youre right. Its kind of like commuting by roller coaster, a lot of twists turns and terror and you pretty much ended up where you started and it cost you money. We had dudley this morning. There was nothing brand new there, but i think you can see fisher will be the mor hawkish of the lot. What an honor to be mentioned in the cashin comments. Well it was your interview, you drew him out. But i think i would look to later in the week and begin to see i think one of the other things that people arent talking about is friday there was concern that if the greeks defaulted, it would be an instantaneous thing, but now people have learned theres a grace period there. Two months. Default may lead to another election. A lot of things can happen so people are stepping back from the cliff and not pushing too hard. All right. Art, well see what happens. Thanks the opening bell just 4 1 2 minutes away. Dont go away. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. As we get set for the real flood of earnings. 146 Companies Just in the s p alone. Its going to begin with ibm tonight. We already have Morgan Stanley under our belts so far. Says Royal Caribbean warning about the increase in fuel prices since january. Were going to hear more today, too. They actually beat on the quarter, but what they have done is lowered the guidance for the rest of the year partly because of fuel but also because of the stronger dollar affecting the spending of nonu. S. Residents on ships, or people that are coming from other currencies on ships. One of the big movers will be 5 to the down side. Well keep our eye on tesla. This interesting story thats crossing on some Wire Services citing a book about elon musk who apparently had a handshake deal with larry page in 2013 for google to buy tesla. Of course this comes after a week when the dow had its worst day since march 25th and actually went break even for the year. Still up though we should note, during the month of april. Costco if you missed it it new 4 billion buyback, and then procter also with a procter, that was a nice surprise, i guess, for investors, still waiting to see what the verdict is. Theres a lot of talk around some of the Beauty Brands david, in terms of who would spin that off. Besides other Consumer Staples, colgate got a downgrade to a sell actually and a lot of it was because of the strong dollar, saying they are more exposed internationally and not as much baked into the stocks. On that same node goldman updated General Mills to a neutral, the