1. 56. And japan has moved up. Theres another big story for the markets. Crude hanging right around that 40 level. Left out by a thread. Okay. Lot of cliches today. More coming of course. Including our road map. Pfizer lower, while Procter Gamble is higher. Were going to dig into both of those reports. Warren buffett slamming donald trump while campaigning for Hillary Clinton last night in omaha. And shares of williams are higher this morning on earning. I talk to the ceo about cutting its dividend. Saga with. And more. All right. As the dough looks to break the six session losing streak, pfizer beating the street with Quarterly Results. Helped by new sales. Procter gambles Fourth Quarter results also ahead of consensus but the company says it expects currency fluctuations to disproportionately effect Current Quarter earnings. Where do we start . Why dont we start with proctor. The fact is the organic quote buzz. The last Conference Call was really widely about currency issues. So they basically put it up. This is a company that has an arg arc. They are in a lot of currencies remember that are really bad. And they stayed in venezuela. If you are in venezuela, you are just losing money. It is like putting your money in german tankers. You must lose money. And proctor looked a lot like the other organic growth of other companies now. Proctor is much improved. And i think to a problem with currency is to not recognize the actual underlying growth. Growth i think was 2 which may not sound like much but is actually not bad. Expectations i should say for 2 organic sales growth fiscal 2017. Sales growth about in line with whats anticipated but particularly i think healthcare and grooming were very strong. Grooming 7 . Healthcare 8 . That is really the story. And look, i was presently surprised. I was very worried about grooming. Not that long ago grooming was terrible. These are very well run company. You had some doubts. You have expressed them in terms for a while. Yep. But they came in and attacked the divisions that were weakest. They had a very big explosion, basis points higher in spending. Margins are still good. And i can tell you no company is prepped more about currency problems. They gave a premium on currency last time. How if they dont lower price they cant win versus local brands. It was an excellent disposition. Anything more broadly speaking question take away from this. Perhaps reads through into the economy or anything else . I dont know. Obviously you dont feel badly if they are spending that much. And combine that with cvs, which was an extraordinarily good kpae quarter. The stock has been very disappointing but the company wasnt disappointing. I think spending on that kind of healthcare but combine cvs and Procter Gamble you they got rid of the tobacco and cvs healthcare was good. Yes. These companies have both been big question marks. People have been concerned about them. And they dont feel concerned about them today. Pfizer as well. A huge name in healthcare. Always on the acquisition trail it it would seem. These days more modest when they were trying to buy allergan. Secretary lou put the wood to that deal. He did. I remember i was talking with you off camera. A little insight yelling at each other and being an completely untrue. It is. That pfizer i felt would split. What they did do is create two distinct businesses. Pfizer Innovative Health and pfizer essential health. I think they are setting themselves up to break up. And you know when you look at the break ups. But yes, i think this is a nice prep. And those who are selling off the companies release, you should always listen to what they have to say. They did reiterate their 15 year fiscal revenue guidance of i think between 51 and 53 billion. People the criticism has been this is a Financial Company masquerading as a pharmaceutical company. They have a couple of drugs that are going come off patent. But they have. Whenever i hear that. I know you care and about the financial implications. But i think they are smart in the same way that malone is smart. We can say in the end hes about taxes but in the end hes about value creation. And how he creates it, maybe it is not the way we want it but he creates it. And he should get more credit. Think so . I think so. Bristolmyers the huge allergan deal which would have been good. And therefore have access to overseas cash and a lot of other reasons they wanted to do that. Companys been strong. They have some new drugs. Is it on fire like which kwi guided up big . Sno no. But if they split the company up into two different businesses, i want them. A fabulous buy. Anyone who bought that. Idxx labs. The unification of pets when you said that last week. I had kimiko on yesterday and a pet store. And what can you not do in amazon . You know, if you like fido then you may not like. [inaudible]. You do take your dog for a lot of walks . No i take him for a fortune for healthcare. Do you what do you think im an idiot . So youre not doing that . Picking up the poop. No. Its the law o here in new york city. My wife. Is actually talk. Five years, starts to sink into the consciousness. Things are going well. I wouldnt rock the boat if i were you. Quick before we get to Warren Buffett. Japan stimulus of course disappointing. You didnt say disappointing. That is another cliche you have to say. These guys are doing everything they can but disappointing. Its been 30 years of disappointment at immigration. Children are a necessity. Immigration helps. If you shrink your country and it doesnt grow. It is like russia finally got back to where they were before the look at the gdp. You need ed kids. It is a demographic issue. They cant create kids with money. You have to have whats known as household growth. Which means what . There is no way for them to get out of it no matter how much they stim lasmt and buying a lot of etfs. Its working. They have getting the market up but you have to have people participate. I think all of this is a artifice and people are droekt say what the heck is japan doing. But you need Income Growth and household formation. And japan doesnt have it. We talk about the central bank as if they can create kids. Some wear Adult Diapers and some wear kids diapers. So. E got hit very badly. Proctor came in there and just vis raited them. I was trying to give him a little more of a pass. That was not good. I read that wrong. We didnt talk about european banks but the were gonna have plenty of time. Lets get to politics. Warren buffett did join the list of billionaires are with harsh words for donald trump. Yesterday at a Hillary Clinton rally he questioned trumps business ethic and tact and also challenged him to release his tax returns. I would be delighted to peat him any place, any time between now and election. Ill bring by tax return. He can bring his. Nobody is going to arrest us. There are no rules against showing his tax returns and just let people ask questions about the items that are on there. Baa do you think is in those tax returns . Of course mr. Trump continues to say hes subject of an irs audit and thats the reason. And many people say that doesnt make sense to them. The irs tends to audit wealthy people. They go where the money is. Id like to see everybody on tax return, look i pay 53 tax. You want to see my taxes . I have income. And ive got and i pay taxes. And so im not running for president but ill tell you, i get to keep 47 . Just now i think [inaudible]. Another ten days. Made a lot of money for jersey and new york and for feds. They let me have like from mid august. Like when football starts. Ford auto is out a few minutes from now. And Williams Company is higher after releasing Quarterly Results and an interview with gain the freedom to fumble with the new water and shatterresistant Samsung Galaxy s7 active. Exclusively at at t. Itslexus performance iny to streetlegal form. Taking for a limited time get great offers on our complete line of f sport performance vehicles. At the lexus golden opportunity sales event. Ford is out with its auto sales for july. A little weaker than expected from ford. A decline in sales of 2. 8 . The expectation was for a decline of 1. 7 . Have to wonder whether or not ford has pulled back a little on incentives in the last month. When you look at the breakdown of sales, its been weak for all the auto makers. Suvs down 5. 3 . Trucks was up 4. 8 . Overall sales declining a little over. 8 for ford. That was the decline last month. Well jump on temperatuhe sales this morning and see what they have to say. A lot of people were saying you are spending a lot more than expected. Well see if thats still the case. Of course he referenced last week when the stock took a real pounding there. Interesting. That ford almost happened in a vacuum. I read that and well thats going to be a real tell and retail is going to go down and it went up. Market seemed to be impervious last week in terms of negativity. And oil were on fire last week. There was a disconnect. And coming home to roost. Tech remains strong. Idti. Integrated device technology. Tech remains the bright spot. Healthcare is strong. When it comes to oautos, gm reported a decent number. Value trap, value trap, value trap. Were those hedge funds that were like saying something has to happen here. They have run for the hills. They have. And how about the macys two for one . People thought macys were going to do something. They should have just gone and bought dollar tree which is on fire. And then you will eaten. And emerson report a worse than number. Union pacific a better than number. A. The one to watch was cummings which was to me disappointing. And some of those names can typically give a decent tell. Not good quarter. No. But i am amazing that nothing negative really seems to stick. Sea gate is up 10 straight points on the fact that they can pay their dividend. That makes sense. As the market of stocks. It is not a stock of markets. That didnt used to be the case. Is there discernible differences now . And judgment being made on how companies are doing . Yes. But o then no because everything seems to be going up. The market seems to favor the rally. And i think that were going test wit oil because oil seems to indicate that maybe the demand side is not as strong. But i got to tell you, i look at these quarters and i think how did United Technologies get up to 107 . How come honeywell is not down . The answer is the markets given a pass. Ge has reversed did not do a good quarter. I this think they are going to buy. You do . This guy did a great piece yesterday. Just says it is going to happen. They are partners in a lot of stuff. 12 billion, used to be 40 billion. Ge should buy them. Royal caribbean, immediately the stock goes up too. And then under closer observation the stock gets hammered. Everything there are so many mistakes being made here. Its just. Dont act until you [inaudible] facebook, after reporting an extraordinarily good quarter really hasnt done anything. When you look through the numbers and daily average users or a percentage. Of the month users what percent are using the Service Every day. That number declined by 50 basis points quarter to quarter. And maybe that was the reason. We can find reasons why a stock is going down. But then what happens when we find out there was a lot of insider selling. Because the window opens. And well go wait a minute lets find out what that was. And the one thing. Eps. They dont have that stock compensation thing for as bad as others. And that is one of the stories we have to talk more about. You put that in my head. I now ask all the time. Because a lot of these Companies Act as if it is notten. Expense. A huge expense. In many ways the most important expense. Important as cap ex. Thank you for putting that in my head. No problem. Up next, a little more wisdom there. The mad dash from jim, of course. Another look at futures as we count down to the opening bell. We are headed for what appears to be a lower open. More squawk on the street after this. This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at Td Ameritrade. Mad dash coming up about six minutes before the opening of trading for stocks. We you could never say a bad word about kroger. They took on whole foods, they were a able to prevail. They krogerized the place. They were krogerizes izized thi morning by bmo. Downgrade to market perform. Sara, cincinnati, eisen and i went over there and we were surprised. Because why . Because this company has been the winner in the space. And deflation, it is very hard to overcome. But then they talk about walmart. Didnt you think that kroger could continue benefit from continued underperformance of walmart. Walmart has been under stock hasnt been doing no they havent. What are they talking about . They cant make the money they used to. Food and home data is not that good. I got the say. I dont know whether i want to people look at charts and they look at this head and shoulder thing. I think the stock can go down. But at a certain point i want to buy. If it is going to earn 215 next year and it is the quality play. So maybe buy it at 12 times earnings. But i just regard that as what isnt supposed to be happening. By the way whole foods. Is that stock has not bounced back from that disappointing quarter super markets are under pressure. And walmart seems to be in the throes of price wars. And got out of that kind of dollar store business . Yes i did. And talking about the food deliveries. This area is in flux, david. It is in flux. But look at this. Doug mcmillen, man of his word. So far. So far. So good. Walton family feeling pretty good. I know you have richard mr. Mcmillen knows the invitation is out there. When he wants to join us, it is up to him. Mornings. M. Eyton on suy peyton you know with directv nfl sunday ticket you can watch your Favorite Team no matter where you live. Like broncos or colts. cashier cool. peyton ah. 18. The old number. Ooh. I have got a coupon for that one. vo get nfl sunday ticket only on directv. And watch live games anywhere. Watching cnbc, squawk on the street. The opening bell is in about 50 seconds or so from now. I want to ask that broad question, what is the key to the market . I bet i know the answer but what would you say right now jim . Pfizer. It is so important. What you nigh that . No just thinking its funny that. Reminds me of 1998. Lirica coming out soon. Viagra. And it is the most important that were going to see today because it is so gigantic. Im looking at the market and im looking, for instance, at some of the industrials. So we had Illinois Tool Works last week. And it was fabulous. Emerson was just bad but they are selling the Power Division which i remember when they fers fied into it. It was supposed to mean so much. I know. A lot of these companies are just shuffling their assets. Enterprise Software Company and the Bayern Munich football club. We heard from ford. Lets get to those gm july numbers and back to phil lebeau in chicago. And sales for the month of july weaker than expected. Decline of 1. 9 . In comparison with calling are if ab increase in sales of 1. 9 . It is hard to make a loet out of this other than a general slight pull back in sales really across the board. Fleet sales, 11. 6 . Much lower than the entire year. Gm continues to pull back on the fleet sales, which frankly are not the most profitable sales. Also day supply, down to 66 day supply compared to the year over year average of 72 days. You want that as well. And a final note, they always put out that you are estimate in terms of the full Monthly Sales rate. Gm saying the estimate for the industry for the month of july, 17. 9 million. Thats higher than many were expected and well get that later today during the closing bell. Back to you. Again that area is just in peek. People dont like the autos. And in the in the meantime. Stocks up. What does that mean . People just think the worldwide company. Cummins. Talking about the utter inconsistency of a market where if you dont go granularity, dig down deep you may miss the big picture. Youve got places to go. You have heavy industrials. And you have healthcare. Im looking for signs of what people are going to. They like tech. They like healthcare. And they like industrials. As odd as that combo is. Speaking of healthcare, shares of aetna are up. Of course here one of the keys is them going to court to try to be able to overturn the injunction against the deal or that the doj wants fair their accusatia acquisition of humana. I felt maybe they were waiting to see if the field was blocked and kind of play ball with the government. Hey were still there unlikely. These exchanges have been very unprofitable for most of those companies. I think a lot of these companies are saying hey look this is just a bad business for us. And new president coming in. Maybe they change the legislation and it gets better. And anthem however which of course is the other big deal which is also being challenged has been very aggressive in the exchanges. When i talk to joe swedish, hes actually mejtsed they were going going to be the largest Single Health insurer in the exchanges. At a million lives. Do you think there is enough profit there. They think there will be over time. The key for all these companies are going to be in court. They seem to be very pleased about the judge that will be overseeing these two cases, jim. What do they have a win in the wheel there. They given his previous ruling against the ftc when they were seeking an injunction back in 2004 that they have a real shot. Well see. Oil holding in. Remember Oil Yesterday was kind of like the first day in a long time where oil went down. And a lot of stuff got hit. Although the nasdaq has been a great place to hide. Nasdaq, can you imagine . It has been strong. Snot the case today. Even apple which had a strong day yesterday down a little today. There ar