Down. Goldman says we may be stuck in this range for awhile. Lets start markets and fed today, jim, a lot of discussion about whether it would be a good idea for yellen to say lets have a presser in july on the off chance we move. We might be able to explain it better. I think that would be terrific. I think yellen has been the person who has been the least yelling. She doesnt yell. She is considered. When you have someone considered as she is. She is looking at the data. A lot of people criticize the fed. Im not going to. She is trying to arrive at the right thing. Imagine if you tighten it and they got the 38,000 number. They dont know what theyre doing. The evidence shows they do. The endless criticism of all Federal Reserves and all of Central Banks around the world bothers me. I dont think im a fan because he had to reverse rate hikes. I dont know what japan is doing. They seem erratic but im not a critic of the fed. I think the fed is trying it do it right. I think yellen will do it right today. Gundlach, series of slide decks. He says Central Banks of losing control and they dont know what to do. Every other week the feds message is different. Theyve turned into the zombie fed. That is strong stuff. I do think that there is, as ive been saying, if he is referring to the fact that the line coaches and the head coaches are in disagreement and the defensive back coach is contradicting the these are just examples, i agree with him. The losing control stuff, my problem with all of that, gundlach has taken on a high profile role. He should choose his words carefully. You dont want to choose your words carefully when youre just kind of, you dont realize youre on strike. So i think Jeff Gundlach who i respect has to say you know what . I have to adopt a different or diplomatic attitude. Maybe i should be saying i dont think that they are maybe theyre illadvised. You switch to terminology so you dont feel like the reaction is well, holy cow, im a tabloid financial manager, im not a times financial manager, so i suggest that he adopt a more statesman like attitude towards his speech. Okay. Well see. Not that im the dalai lama, the dalai lama has gained the last two books very good. Very positive about happiness. Lets see if jeff takes that into consideration. Your theme this week has been the fear and the fundamentals are at a miss match. Bernstein comes out with a note and says banks should be down 40 . That down 40 , weve seen that in our country during crashes and we know that it can happen. Does it make sense to say that . Look, if you think there is going to be someone who is about to have a cigarette in a crowded theater, you might want to yell fire but it is really about a cigarette. I dont want this to be something that is it is not. The unknown is fearful but the british bankers, the central bank recognizes it can be unknown. This e dont want world bank of scotland to be a ward of the state. They dont want barclays to do that. This is a different level of capitalism during the hay day of when we had tony west at the u. S. Attorneys office, in the Justice Department and he could call in the big banks and say it will be 15 billion, 17 billion. Youll owe this. The tension between the banks and our government has been ferocious. That is not the way it works over there. I mean, look at these italian banks. Five banks should have gone under. Theyre still out there because theyre treasured institutions. They treasure the institutions over there. You may think it is the end of the world and october 11st of 2011, it did go under in paris. Belgian bank where she seized it. I mentioned that because it is a high profile seizure. These people dont think like we do. They belong to the same clubs. The Justice Department of obama, they do not belong to the same clubs as our u. S. Banks. Are you suggesting that a back stop is a healthy thing over there. Im suggesting it is crony capitalism. They never raise the capital. We thought they should. They never stress tested anything. Necessary dont do that there. Do we want to own the stock . Seeing the banks go down every day, that is worrisome. Maybe you dont buy the stock of barclays. Maybe you dont buy the stock at jp morgan. If they trade down to 57 you probably do want to buy it. Gundlach did say they there could be buying opportunities. That was a level headed he went level headed there but im not going to adopt it is going to be down 40 if brexit because then it will be a simpsymmetric. I got up this morning at 5 00. He had brexit brexit. He is like mr. Brexit. He is like james bond brexit. He wants his market shaken and not stirred. I love his style. He was so good. He is on his game. And he is great to watch and i really feel more confident that it is not going to be crazy after getting the information from someone who is very good. After i listen to him, he made himself, he will be on mad money next week. Im more confident that it is not insanity. Insanity a lot of discussion why the bookies, betting markets continue to believe it will remain their thesis is undecided tend to break for the incumbent. Ive never gone against the bookies anywhere. I dont gamble professionally but they have a two sided market and are aware of things and they tend to know versus the pole sisters. We saw pollsters say look, it is possible if indiana goes, the things we heard, remember that Bernie Sanders wins california will be a contested convention in philadelphia and i thought i should take hotel rooms down and offer an air b and b. So i just find that pollsters have been very wrong. The bookies, i dont like to go against the bookies other than the year that the giants beat the pats where they got their clock cleaned. That was remember that . They were poorly positioned there. Banks are the worst sector for the month. Theyre so horrible. Or the week. For the year. The fft is saying b of a may cut 18,000 jobs. B of a is not my favorite, but b of a is the most tech logly superior in terms of the consumer offering so they dont need as much bricks and mortar. That story should be mentioned in the context of how fast forward theyve been versus every other bank when it comes to mobile and millennials. They dont need they need far fewer branches. Im not going to take that as a negative and i bet you the stock reacts positively to it. Lets turn to oil. Numbers from api show a build last week and that is ahead of data out today at 10 30 a. M. Eastern. Goldman, they view the price recovery is fragile. They expect the market to return to surplus early next year but for the time being, the three month target, 49, we have to see massive production outages to convince them the market will remain in deficit. Is it very hard to judge oil right now. It is king on venezuela. They had their 100,000 drop. Theyre off the grid. Veteranzalal is far more important on whether we open a rig. Goldman has been all over the map. Theyve been extreme. Theyve been extreme. We went with the 20 so when it fell really well, really big, they went with the hundred. Goldman has been playing it like a fiddle but i hate the sound. Just grating fiddle. We talked about this yesterday, goldmans phrases upside surprises to production, right . That is what we kept seeing. We have the wells we drilled. Lets open up. Remember, i said 50 is where we stall out. You have a large number of companies that can sell into the futures and pay bank of america. Remember, it is the banks that are in charge. The banks land a lot of money. They didnt do it in a fashion where they thought that oil would break down and all of these guys, like devon from ecuador, theyre doing those when they dont want to they dont want the credit down graded and the banks to be stiffed. The banks would be saying please sell oil at 50 even if you dont make a lot of money. We need your cash flow. Because we want you to pay your bills. 50 is a hard level to get to. Very hard level to get through. There was chatter that we wont be having this discussion until 60. As soon as he said were going 60 to 70, god bless him, this is, nice man, you know how i feel. Nice man. Dont do it. Thats true. When he went with the 60, 70 thing. I was like, okay, sell. Sell, sell, sell. Like when you were in the old days when we used to use hand gestures before the internet. Charge offs, right . Today, capital one and Jp Morgan Says charge offs eased a bit. Are you worried about consumer defaults. I thought it was a bomb shell. I thought every single analyst would say it was fine and dismiss it. When they said the consumer weakened they were talking about the fico from sychrony were much lower. They do a walmarts card. I found that worry. Some i thought American Press was overly punished. It is snong keep in mind. I found it surprising. Im not an alarmist but there are a lot of auto loans to be applied to. The it was brought on by synchrony. All of the analysts defended synchrony. I think they wanted to lower the bar because the people at the fico score are a little stressed because of healthcare bills and we dont talk about it because the healthcare premium has gone up for everybody. Theyve gone up radically. It is part of united in california pulling out was the last straw. There are forces eating up matthew boss talking to the ceo. The average person has 1,000 savings. That is what they have. And so you know, you might be stretched a little bit on your credit card. Lets follow that and jump to the conclusion that everybody is going to go down but it was a new, you mentioned zakota. I havent seen that in a long time. Now, they werent that bad like jp morgan. Very good, wells fargo, but that was something that was couldnt be ignored. Capital one, no, im glad you mentioned it. It is on my radar screen is something i want to talk about, mad dash if we didnt get to it. We will. Also the latest on viacom, surprise involving red stone and later on, lululemons chip wilson has been critical of the management. He will join us from denver. E a . Its a question we get from some of our largest banking clients. The face of their business was tellers. Then atms. Today its their mobile app running on the ibm cloud. Across every transaction, the hybrid cloud helps their data move quickly and securely. Our clients are building out features and pushing updates faster, on five continents. With the ibm cloud, they can move at the speed of any startup. With the ibm cloud, experience the thrill of the lexus is f sport. Because the ultimate expression of power, is control. This is the pursuit of perfection. They found out whos been who . Cking into our network. Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Lets get industrial production. Rick . Were looking at a minus number, minus 4 10th on the industrial production. That is not a good thing. That makes three out of the five reads, considering this is may, negative and it is by far not the biggest. We had march down. 87, call it. 9. That is what we want to Pay Attention to. If you look at last year, other than three months, they were all negative. If we look at capacity, that is a big disappointment. We lost 75 handle. 74. 9, looking for 75. 3. Last month, we lost a 10th from 75. 4 to 75. 3. 74. 9 consider 74. 901 was marchs read. We have to go all the way back and this is a good ways back. You would have to go to 74. 9. 74. 8, 2010, 2010 october, 2010 to find a lower number so once again, the data a bit disappointing, empire did turn positive. Yields hovering a bit above 160 and everybody of course trying to handicap all of the extra volatility in the market place. Where is it coming from . I know one place, negative rates isnt calmk in the markets. Carl, back to you. Thank you for that. Rick santilli. Redstone made visits at the viacom and cbs. The media mogul visited paramount inside the van in which redstone was traveling. He meant to cbs to meet as the lead independent director sent a letter to red stone asking to let the company look into potential deals to sell a stake in paramount. We are quite concerned that your voice and views are not being heard and that is not all of the news were getting today. It is other reports on meetings with katsenber. Phone calls with jack mah. It is hard to have a big show without he is not the invisible man, he is there. These are high profile people you met with. I dont think you would go wasting time. Not tradeable . Not tradeable. I went over this with david trying to come up with a theaterthesis. He said jim, dont reach that conclusion. The over compensation of the executives there is wrong and if they left, i would raise earnings. If you put pretty much anybody in there i would raise earnings. I do think that i understand, those guys are over paid is what im saying. The gundlach guy is the situation. Theyre premiumized executives. We need dollar tree. Those guys should take a pay cut. A big time pay cut. Theyre near the top of the lists for years. I think about america, people want to know how do we get the tele tale of three cities. This is a sad one. Authorities in orlando are searching for a twoyearold boy who was dragged into the seven seas lagoon near disneys grand floridian resort by an alligator. It happened last night around 9 30. The family of five was vacationing from nebraska. The child and his father were wading engine about a foot of water when the alligator attacked the boys father tried to grab the child but failed. They will continue searching today until they reach a resolution. Disney did release a statement saying, quote, everyone here is devastated by this tragic accident. Our thoughts are with the family. Were helping the family and doing everything we can to assist law enforcement. When we come back, well get cramers mad dash, countdown to the opening bell. One more look at the premarket this opening day. Dont go away. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing this clean was like pow. Everything well . It felt like i had just gone to the dentist. My teeth are glowing. They are so white. 6x cleaning , 6x whiteninga in the certain spots that i get very sensitive. I really notice a difference. And at two weeks superior sensitivity relief to sensodyne i actually really like the two steps step 1 cleans and relieves sensitivity, step 2 whitens. Its the whole package. No ones done this. Crest healthy, beautiful smiles for life. Lets get jims mad dash. A lot of bs and ys. Yes, we do. They down grade best buy and the read through is that maybe cell phones wont be that strong in q4. Some think this is an apple read through. This has been in a down trend since last year and i dont want to get in front of it. I think this is part of the consumer again where we were not getting big discretionary spend. We need cell phones to be better and were back in the amazon world. Where is amazon taking share . From best buy. Now, bed bath goes on the offensive and they buy my wifes favorite show other than rulala, one kings lane. Many of the complaints about bed bath and bed bath is all they ever do is buy back stock. Look at this. They bought back stock all of the way. What a bad game. So now theyre buying one king. Undisclosed but this is an internet strategy. Way fair has an internet strategy. This is furniture but to say theyre finally doing something about the web means that this stock has a chance to turn around. They have a very smart group of people. This is smart to do something other than just keep buying back stock. Yeah. Certainly has flown in the face of other home goods like william sanno sonoma. When you look at t. J. Maxx, how good it is doing. It has been terrific. Theyve lost their way at bed bath and byebye baby and this is a sign that there is a pulse. I appreciate what theyre doing this time. Do i want to buy the stock, no, but this short that has been bed bath may be over. Well get the opening bell in six and a half minutes. Dont go away owen hey kevin. Hey, fancy seeing you here. Uh, i live right over there actually. Youve been to my place. No, i wasnt. Oh look, you dropped something. Its your resume with a 20 dollar bill taped to it. Thats weird. You want to work for ge too. Hahaha, what . Well were always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. Why dont you check your new watch and tell me what time i should be there. Oh, i dont hire people. Im a developer. Im gonna need monday off. Again, not my call. Youre watching cnbcs squawk on the street live from the financial capitol of the world, the opening bell in three minutes or so, it will be a busy morning and a busier morning as the fed statement comes out at 2 00 p. M. Eastern time. Press conference shortly after that. Brexit remains a focal point. Jp morgan has an analysis of all of the polls. They actually had to remove a hoax poll from the analysis but in the end they say leave has a 1. 8 percentage point lead so it is tight. It is tight. You keep hearing that those who have not been polled lean towards. I dont know where they get it. That is the bookie thing. It is on the agenda. Im hearing obviously comments that the banks will have to work overtime if this happens. There is a shrill level of fear that could be equalized. It is not unlike when we had the year 2000, all of the computers could go down. That was a frightening concept. I urge people to recognize that the day that this happens may be the day that you might want to guy general mills. Remember, im stuck within the four walls, the spread sheet in my mind, mier saetz way you go after brexit. You can seep the yield dipping once again. China actually had a decent how do you like that . Msci postponed the con clues of the shares. The Chinese Market confounds. There have been a lot of, talk about something where we heard that if msci rejected, there could be a huge decline. Now, my friends at msci, the thing theyve been concerned about is look, the market, they stop stocks, they dont trade for days. There is no transparency. The transparency is nil. How can they possibly have them in and once again, msci exercising what i think is restraint because really, it makes their indexes far less reliable. China knew there. There were regular people on the street that were shocked. This is another new story that the media created. And you know, msci, i dont know why anyone thought they would do. It msci has been saying we need transparent market. That is the least transparent market on earth. The times has a fascinate point on Shanghai Disney and all of the concessions disney had to give up. Letting the g