A slightly lower open. European markets have, well, weve been hearing from the ecb although not much action, there it is, at least the equity markets at this point lower, though fractionally so you have to say. How is the 10year note yield doing and crude oil, theres a look. 1. 6, 1. 6. Wow. Things are getting crazy there. Crazy. Wti you can see is right around 45, 50 or so this morning. Lets get to our road map. It starts with day four of the Republican National convention in cleveland. Ted cruz was booed, mike pence delivered his speech, and they are gearing up for trumps speech tonight. We will go there live. Elon musk is revealing his master plan for tesla. Part two, by the way. How realistic are his bigtime ambitions for this company . Qualcomm, intel, ebay, southwest, and more, all are on the move this morning after earnings. In fact, i mean it goes on and on biogen, travelers, american express. We will try to get to all of them or as many as we can, give you the numbers you need to know. First to carl at that rnc in cleveland. Good morning, carl. Hey, david, good morning to you guys. Fireworks is absolutely right. Last night was intended to be mike pences introduction to voters, but obviously its ted cruz who is getting the headlines today. He entered here last night to a standing ovation led largely by the delegation of texas where me won, only to be booed off the stage when it became increasingly clear he was not going to endorse the man he once called a snivling coward. Take a listen. If you love our country, and love your children as much as i know that you do, stand and speak and vote your conscience, vote for candidates up and down the ticket, who you trust to defend our freedom and to be faithful to the constitution. Hard to describe what it was like here in the arena to hear the boos of that magnitude. Chris christie called it an angry and selfish speech and ann coulter a few moments ago said it was political suicide. Newt gingrich had to say to cover and to vote your conviction is to vote for donald trump and largely overshadowed was wa was a very effective, strong, funny and selfdeprecating speech by mike pence. Hillary clinton wants a better title and i would too if i was already americas secretary of the status quo. When donald trump becomes president of the United States of america, the change will be, huge. Reporter guys, its often said that at a convention the only speech that matters is the one by the nominee and thats exactly what were going to get tonight. Donald trump in prime time introduced by ivanka trump. Weve heard discussion about what peter thiel may say when he speaks. Once again on day four, were talking about things like ted cruz, like this rather awkward air kiss between pence and trump last night. Thats overshadowing any discussion of what kind of revisions were going to get to trumps tax policy, this discussion about whether he would really defend a nato ally if it wasnt clear they were cog enough to defend themselves. Well see if day four can bring stability to this convention in the final day. Yeah, karl, no shortage of drama but whether it was Melania Trump or cruz last night, what are the expectations in terms of trump and specific policy positions, if any, that he will give us a little more meat on during his speech . Yeah. I dont think expectations for that are very high. Obviously what the convention hopes and what the Trump Campaign hopes is that people will see his speech tonight and say, there is the next president of the United States. So theres a narrative actually being built, jim and david, that amidst the chaos as people call it this week, trump comes in tonight and essentially saves the convention with a speech that exceeds expectations. Earlier this morning, joe was equating it to wwe. You need sort of bad guys, you need a final act, you need tension going into what we call the eblock, that final stage, maybe thats something that trump can deliver. But its going to be very, very important tonight that speech does well. Carl, two Business People speaking tonight. Tomba rack, straight guy, been on our show many, many times and then peter thiel. Peter thiel, very controversial figure. Can we expect fireworks from that man . He speaks his mind and his mind is not in sync with anyone other than peter thiel. Yeah. I think, jim, maybe you agree, if you had said six months ago who would be speaking on night four, along with ivanka and donald trump, you probably wouldnt expect peter thiel. Its an extremely highly valuable piece of real estate that thiel is getting tonight. We know about the news hes been in this year, but i dont i wouldnt venture a guess on what thiel would say. He could come from all sorts of different directions. Its funny. The Business People speaking. Its not like we have the heads of major fortune 500 companies, but i got to tell you, i think tonight is fireworks night. Too bad so many earnings because i would like to train myself entirely on this. What are earnings . Yeah, i know. Ill tell you what they are, man, a pile of them right here, carl, well be checking in with you very shortly. Okay. As we said the watch is on to see if the dow and s p make more history one day after hitting record intraday and closing highs, the dow aiming to extend its winning streak, ten in a row. In year, ecb rates after holding the first meeting since the brexit vote, ecb president mario draghi says growth risks remain tilted to the downside with brexit among the headwinds. Draghi adds the ecb will be in a better position to reassess the situation in the coming months. I am anxious to get to earnings, jim, but any thoughts on draghi . No. Look i mean this is usual for him. Ive seen so many good numbers come out of europe its almost as if its like theres two different universes. What the companies are saying, which is that europe gets better and better and then what the central bankers say, listen, germany, step up to the plate, start expanding the economy, do something fiscal, but the actual companies i deal with are all highlighting europe as a strong part of the business. Still im looking at german 10years, negative, 0. 010 up three basis points on the day. I just never get i mean, japan, negative Interest Rates still to me are just but the companies themselves are fascination. Not saying theyre joyous but joy, joy global gets taken out in a big premium, by the way. Look, stuck with the four walls of the canvas, europe is a bright spot in almost every quarter. Lets talk automobiles and talk first about gm and chrysler. Gm moving higher after posting Second Quarter earnings 1. 86 a share, well above street estimates. The automaker also reporting its first quarterly profit in europe in five years. Im telling you raising full year guidance as well. Teslas ceo elon musk unveiled his master plan, what is it called, part two, he is french, master plan part two, that includes expanding into electric trucks and busses, car sharing, solar energy systems, nothing in here about the hyperloop. I guess that was he gave that to people to develop on their own. But lets get to gm first because they were very strong numbers, jim, from im still hearing are you hearing the press conference in your ear . I am. Turn that off, please. 2. 9 billion, up 157 in terms of net income which was well above last year, although they did have a lot of special items last year. Generate a lot of cash flow. It was back in march of 15 where they said were going to keep our cash position at roughly 20 billion, after that well start returning, they returned 5 billion to shareholders by the end of 16 then but things seem to be going well. They have a lot of cash and do something so its not a value trap. I dont know why you need this much cash. Youre going to get that, remember that about the hedge fund i mean automotive cash Market Securities 21. 1 billion, back in march they had said once we get above 20 billion, well start well return but they want to keep a large cash cushion. Can you blame them . Its gm. No. I thought it was funny one of the great things about the masterful master plan, elon musk mentioned two Auto Companies that havent gone bankrupt, ford and tesla, the funniest line in the whole thing. That was a good line. A comedic aspect to the whole thing. Gm, youve given up on a while back. I had to because in the end, i, like you, am trapped with the notion of the secular decline of the auto. We have cyclical upswing, but the secular decline has to do with the fact that kids dont get buy cars like they used to, uber, the selfdrive, which in the tesla call by the way, tesla, the master plan, theres just basically saying listen, bus drivers will not exist. That group of people it was interesting in his master plan, kind of gives us a sense, this was all how i planned it all along, first well start small with the small low volume automobile that will cost a lot, medium, then large, add in solar, and, of course, well get to autonomy, partial at first, now and then eventually full autonomy as they rack up more and more miles to test these cars and then sharing. True selfdriving is approved will mean you will be able to summon your tesla from pretty much anywhere, writings mr. Musk. Once it picks you up, sleep, read or do anything else in route to your destination. He does point out and you will be able to add your car to the tesla shared fleet just by tapping a but on the tesla phone app. By the way, that that all seems realistic to me and do it ahead of everybody else. My assumption has been uber would be a fleet of selfdriving taxis. We all know humans are flawed drivers. The problem is, i went to see fords selfdriving their place, their near stanford and this involves a level of semiconductor work where youre just flashing 2 million light blips every second. Every second to try to figure out whether thats a human being walking across the street, a car. I mean theres a remarkable amount of Just Technology thats involved, internet of things mentioned in very defensive way by brian last night on the intel call, how many semis you need, and very defensive. Why was he defensive . Because the internet of things and the Data Center Business disappointed. Right. Meaning whereas qualcomm, banking on the internet of things eventually as a growth driver had a good quarter. Theyve been saying listen to us, china is coming back and were going to do the numbers and no one believed and then whoa, they did it. Intel was a very tough call. One of those calls where i said were actually getting ahead of ourselves. Really . Going to go over qualcomm and intel. Finish with tesla before we hit a break. This guy i have to give him credit. He puts it out there. Somebody, we need somebody with big, bold vision. Part two, create stunning solar roofs with seamlessly integrated battery storage, expand the vehicle line to address all major segments develop selfdriving capability thats ten times safer, and enable your car to make money for you when youre not using it. What can i say when i read it im not joking around, i said all of this is what i want, maybe he can pull it off. At least its refreshing to see somebody say it. Hes making the car. Hes sending rockets to space. What jay leno said, [ inaudible ]. I dont like his financials, okay. And you dont like it when he says youre a simulation, but buy yonts beyond that give him some credit. Theres music in my ear, does that mean he is in control of my ear too. Means we have to go to break. Only 50 chance that im a simulation. Does did not say 100 . Theres steve mollen cough. Thats an exclusive. We were talking qualcomm. An exclusive interview coming up. Futures. There it is. We got a lot more squawk on the street right after this. 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. Theres only one place where real and amazing live. Book a seaworld vacation package and eat free. Man, are we awash in earnings. Awash in paper, so much cut myself. We have a bleeder over here. Hes going to be okay. Theres so many earnings. So many. Lets get to the chip makers and they are moving in opposite directions. We hit it moments ago. Intel down in the premarket, Quarterly Earnings were ahead of estimates but revenues were not. Slower than expected growth in the Data Center Business. Qualcomm results exceeding consensus. The company did sell more licenses in china where it had such a tough time for so long. Also Strong Demand for its mobile chips and by the way we will have that interview with qualcomm Ceo Steve Mollenkopf on squawk alley a couple hours from them. Got to hand it to them. Imagine he will still be smiling. He should be. Over the intel, thank you eric johnson from the street. Intels Data Center Groups i have to read this, which supplies server cpus, among other things has long been trumpeted as the Growth Engine because pc sales have been weak. Rev growth 5 annually, at 4 billion. Last quarter was 9 . 15 comp at annual growth what theyre looking for. They will not be able to do it. Remarkable slowdown. Whats going on . Two businesses. They give you the units for the cloud. Okay. So say an amazon web service, microsoft. But they make the on premise boxes which you dont which are not cloud and this whole shift to the cloud that we were talking about yesterday, it leaves intel behind on the boxes in your own building, and but puts them in the cloud. Right. But the cloud isnt being adopted fast enough versus what i think theyre losing on the premises. What i felt was the bright spot on the quarter. Tell me. Other than altera, that pcs, remember, pcs yesterday you mentioned it in the microsoft call. They mentioned pcs have not been doing that poorly and again, with intel, one would expect then hp ink maybe is a beneficiary. It would be, i would think so. I dont know. Notebooks so good dell is private, not that far from concluding its enormous deal to acquire emc. Let me give intel the benefit of the doubt, they did say listen all of this is transitory, but its a slowdown. You didnt see that slowdown from plfts. Right. Intel, and microsoft will diverge here. Right. I think thats important. I did want to mention, jim, something we brought up on was it monday or tuesday . Umana, aetna, anthem, cigna. You killed humana. Attorney general Loretta Lynch and bill bear, the antitrust deputy, are having a press conference at 11 00. Oh, boy. To announce a significant antitrust matter. We fully expect that it will be potentially opposition to both. Aetna humana and anthem cigna although we dont know with absolute certainty that is the expectation, and well certainly be monitoring those. Can i ask you to kill something. The spread in aetna humana is obviously signaling 18 chance. By the way even if they do block there are many people who believe they will sue and they will win. Got to get the right judge. They will win. Anthem cigna well see what their choice is. They will be suing. Will they have a tougher case. I like you to kill something every day. Given the spread im being facetious, you didnt kill it but signaling it and people got a chance to get out. Rite aid and walgreens the spread here is so big. You keep asking me. What i have to do, i have to make calls. Come on. The other outlet dont do that. I have to make calls on rite aid. Just kill it. Why do you let the facts get in the way of a good story. A larger context here is deals, large deals, particularly ones that cross borders or at least have international exposure, they are tough to do. Youre talking about dupont dow. Are you going dupont no. When you speak to bankers the difficulty is not getting them to sign and agreeing on the social issues and, of course, the price, but its after, its the idea that whats our road map look like for actually getting approval. Its tough out there. Wow. And not just here in the United States but whether its the eu or china, and youre not even dealing as you said, yesterday, with just antitrust. Sometimes it can be the treasury deciding that theyre going to let me ask you on the dupont dow the merger was approv approved, there the issue is seed concentration. How much of the blockages because somebody complained behind the scenes this is bad. If the farmers went on mass to the Justice Department on dow dupont i think the Justice Department its about customers but for us about consumers right. Not necessarily that not solely raise prices. Your point is a good one, monsanto still yet to sign an mda with bayer. Thats a concern. Da knonone whitewave, bingo. Softbank, on hold. Nothing there. They dont own anything. Excellent. When you pay are you killing rite aid . I dont know. Can i just say i dont know sp. Thats absolutely fine. We got a lot more earnings to get to around the bell. This morning, we mentioned qualcomm and intel, ebay, we got dish, american express, biogen, a joy global deal, and a mad dash. I dont know what you will do here. I was going to do joy. Do it. Do joy coming up. Were back after this. Was just a bottle. That no one would ever notice me. But i knew i could be more. That one day, i would make people smile. [woman speaking indistinctly] all right. Were a few minutes from the opening bell. Time for a mad dash. Want to talk about a deal we got today, joy global getting bought. Joy to the world. Get up at 3 30, think its going to be a bad day. I have someone sleep for me during earnings season. I have them sleep for me. I cant afford to take the time. I was shocked, ka not, so buys this. Look, 8, 8. 90 here. Do you mean to tell me with calls so bad, thank you Union Pacific, giving me the coal numbers, this thing kind of levitated on its own self. Hey, guys, who bought the calls here and here. Jim, 28. 30 a share, of course, was a premium of 48 to the 90day weighted average price. 41 to 60 days. I mean, lets see where the multiples are who here. 11. 7 times ebitda. For a company that makes coal Mining Equipment and copper. The reason why this company exists, is theyve got maintenance contracts an its a fabulous book of business for maintenance and that is supported them for a long time and well run. Remember theyre a competitor at the absolute height of the coal boom during the coal super cycle ucyrus was bought for 7 billion by caterpillar, still trying to work that off. How much did they write down on that one . Cat reports next week