Down a bit, as for the 10year note yield and oil, really oil and perhaps becoming more important yet again to our broader equity markets it is up rather sharply extending gains from oh. From friday after the strong jobs number. To our road map and it starts with walmart buying jet. Com for 3 billion in cash and 300 million worth of walmart shares. That will be paid over time. The biggest acquisition of an Ecommerce Company ever. More on the deal coming up. Plus, delta trying to get back to normal after all flights were grounded across the world due to a computer problems. Shares lower this morning. And from the pool to the beach, all the highlights from rio, including Katie Ledecky and michael phelps, both of whom wowed the crowd last night. I could watch that swimming all the time. Just love it. Being thats what i do. More important on the troubles of brazil. Just watch the competition. The competition is incredible. It is. Moratorium on the life. Heres the problem with the water, the air, the problem with this. Forget it. You know, i want a moratorium on everything than the competition which is fabulous and speaks for itself. It really does. Yes. I was going to go for that. Yes. Lets get to stocks. What are they saying for themselves this morning . We may make history. The s p and nasdaq hitting new alltime closing highs on friday following the stronger than expected july jobs report. Oil prices on the rise after breaking a twoweek streak. Several opec countries pushing for a production freeze. They always do at 40 and its a joke and gets the stock up, gets it up and people cover. This is time honored. I cant believe theyre doing it again and the media is picking it up. So you dont believe it . No. Its never never happens. Saudis are mad. The poor countries are constantly doing this. Issue releases, calls a couple reporters. Everybody bo byes into it. Venezuela, you cant even get clorox in venezuela. It is a failed state. Thank you for mentioning that. Geopolitically may become more and more of a concern. We should talk to reid hay hastings. Suffering there is horrible. You cant even have reporters there. Im sure reporters are like no the committee to protect journalists people should recognize about turkey. You cant have real reporting in the country because they arrests jurn igss. Turkey jails more journalists than anybody. As for the market we come off the strong jobs number on friday and after a strong market, equity Market Performance on friday. This morning as we saw the setup, i mean europe fine. We got china trade numbers that were a bit soft, some are saying, though doesnt seem to be great concern there. No. Japan doing okay. Negative rates seem to be abating a bit. Perhaps that experiment is finally going to get tossed. The fact that europe is so strong. Im getting Capital Goods Companies telling me european orders are amazing, just amazing. Remember when there would be a time when deutsche banks problems, we would be talking about that and the spillover to jamie dimon. Jamie dimon is on a magic bus. A magic bus trip. Wilfred frost is joining me, the man on the bus trip as well. Its his birthday today. Is it really . Hes much younger than you. And you. But better looking, younger, i mean what else is there . Smarter. Oxford. Its horrible. I know. Change the show. Bring him out and let him solo it. Vanity fair has not yet done anything like on me but thats ekay. It is okay. The geriatric section. Vanity old fair. More done on you. I was around when he wrote that book. Its a good read. It was good. All right. Were towards the end of earnings season. We are. Wrap it up. How things are. Some people saying the multiples seem fairly high. We had joe lavorna on friday talking about margins hit a high in 14 for corporations. Some people still talking about recession without at least the consumer being there to a certain extent we would be in one. Okay. Retail, more retail this week to get a bit more of a sense as to where things stand. I saw that matthew boss, jpmorgan, put a trading buy on macys. The risk. He said david there was a firm, i left on friday, and we were working for the which companies are most stressed. Which companies have the worst balance sheet, have missed quarter after quarter after quarter. What did we come up with . Mattress firm. And what happened to Mattress Firm this weekend, david . Taken out. Taken out, but not just at any old price. No. No. A premium. That surprised you. More than 100 premium. Sleepys. I mean this is unbelievable. Calling it the ikea. Great the ikea of [ inaudible ]. Starting to short position in this stock was it almost as big as tesla. Almost as big as tesla. Thats got to hurt. 41 short. Got to sting. Everyone knows they took too much debt down to buy sleepys. They were buying. It was a roll up, a mattress roll up. Got taken out. Same way jet. Com managed to get somebody to take them out. 538, ma the tress firm. There you go. Meet the s offer shorting. We will talk about jet. Com in a bit. Lets get to rio. Record setters and shockers at the 2016 summer Olympic Games. Carl is live there in rio and hes got it all for us. Carl . You guys were talking about the quality of the competition over the weekend and its true. Gi Ginny Thrasher win the first gold the u. S. Hasnt done that since 2000, womens gymnastics leading the all around for the first time, see simone biles, 19 years old. Going to be try to be the first female gymnast to win five golds in a single olympics. Absolutely amazing. Speaking of u. S. Women, Katie Ledecky, 19 years old, being called maybe one of the greatest athletes alive, wins gold in the 400 meter freestyle. Beats not just beats, crushes her own world record by nearly two seconds and speaking of swimming, michael phelps, extends his record as the most decorated olympian of all time. 23 medals instead of 22. The mens team wins gold in the 100 meter freestyle relay. The metal count looks good. U. S. Has 12, ahead of china, ahead of italy, and then events tonight and today mens gymnastics, mens diving, womens rugby, mens swimming. On cnbc two guys will get some water polo, womens rugby, some womens beach volleyball, and some table tennis. So what a weekend, what a way to start the games. Jim, your point absolutely right all the hand wringing in advance has turned out to be for not as we are now ensconced in olympic competition. Totally, carl. I had an Olympic Party last night to watch the girls womens gymnastics and no one was talking about zika. I mean, heck, like, you know, give me a can of deet and move on. Carl, these games, all we got to do is watch them. They are electric. Yeah. Yeah. I mean, to be fair, were not going to take our eye off the ball in terms of how this is going to impact olympic legacy, right. Doping says a lot about that. Brazils economy has a lot riding on these games. So its not like this is completely thoughtless. But the games are in the end about the events and thats part of what well talk about today. Youre right. But i mean in beijing should have talked about civil rights more. Now weve set the scene. But this the competition it is so exciting. Carl, it looked like Computer Generated design people doing these gymnastics. I mean it was not human. It wasnt. I have to ask david, ledecky, i mean she does the 100, she does the 1500. We havent seen a swimmer like this in a long time. No. Its almost defying logic. As you know i swim a lot and i swim at distance to a certain extent. The idea you could be a marathoner and a sprinter, the idea that you could be usain bolt and also the guy winning the marathon, its impossible it seems. She beats a lot of the men in practice. Oh, and by the way, shes going to stanford. I mean the whole thing is incredible. I know. Another person im jealous of. The 356 and the 400 is and the fact she will do 8. 0 something in the 800. Move over sheryl sandberg. Her job is in question as soon as this woman comes back. Stanford will be parttime. Its incredible. The coverage. Thats the one thing i would love it see, love to be at a poolside to watch somebody swim like that. And the coverage has been fantastic. Yes. I love every bit of it, xwlued to it. Glued to it. Its incredible. It is. Carl will be joining a bit later as well. Updating us on more of whats happening in rio. Before we get to a break, lets talk a bit about this problem at delta, which announced limited departures are resuming following a power outage in atlanta that impacted the Computer Systems and operations worldwide, cancellations and delays still continue. Susan lee is live from new Yorks Laguardia airport to bring us up to date. Susan . Hi, david. Yeah, just about half an hour ago delta tweeted that the ground stop on all delta flights has now been lifted and some flights are resuming, though, that might take time to take off the ground. And this morning thats why we had basically delta issuing notice to all travelers to expect long delays, cancellations, large hp scale cancellations because of the power outage at 2 30 a. M. In atlanta knocked out the entire flight system at the airline. Georgia power, the state Power Company, believes it was deltas equipment that caused the outage and saying that no other georgia customers have had any issues or reported any issues so far. But there are around 5,000 delta flights that take off and arrive each and every day and there have been a lot of confusion at airports across the country including here at laguardia from what we saw this morning. We had the status updates on the board saying that some flights are at the gate, some on time. And as you can imagine a lot of confusion and frustration at these airports. My flight is at 8 00 and i didnt know anything about it until i got here. Im still in the dark, totally in the dark. Yeah. But, you know, at these airports, from what we saw at delta, at delta, basically the customer gates they were not turning away the customers. Still checking them in. One of our producers in san diego, shes telling us actually some flights have taken off, some delta flights have already taken off. The latest from flight aware, just in the past 20 minutes, they told us that they are reporting ten delta flights have taken off in the past 30 minutes or so. Thats ten out of 181 that have been scheduled during that time. And the flights are taking off generally have been delayed three to four hours. But delta is offering travel waivers to its customers to august 12th and that means theyre waiving change fees or even possibly getting refunds on some of the tickets. Back to you. Thank you very much, susan li from laguardia. Of course delta has had a rough go in the stock market. The stock market has been a terrible stock. Holy cow. The cash flow so huge. Cant get out of its own way. Why . People feel look, the numbers come down. The numbers. A price war all over the place. The price cutting has been big. I know people get on the planes and its always an extremely full flight. It doesnt matter. There are price wars all over the country. And no one is surprising. For a long time they were holding back. Holding back. Oh, my. Really keeping yeah. So its all the nightmare scenario we used to have. Right. And we didnt for some time and suddenly the guys were earning more than their cost of capital a First Time Ever maybe in the history of the industry. Gave big profits, a lot of these places did very big profit share with employees, which, you know, the pencil pushers on wall street dont want to see. Right. The group is historically cheap. Southwest air is cheap. But at the same time, the stock will go lower on this. All right. Were going to quickly get to break here and when we come back walmart buying jet. Com, 3 billion. Intensifying that battle really i dont know if its a about thele against amazon, but theyre trying. Theyre trying. Hey, you know look, if the algorithms well have details of the deal. Futures as we head to the break. More squawk on the street coming back. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov an ordinary experience into an extraordinary one. Get great offers at the lexus golden opportunity sales event. Lease the 2016 es 350 for 329 a month for 36 months and well make your first months payment. See your lexus dealer. Our biggest event of the year just got better im free to do what i want and have a good time. Announcing zero for seventytwo across the entire lineup of ford cars, trucks and suvs. So hurry in for 0 financing for 72 months. Thats freedom from interest. And freedom to choose with ford. Americas best selling brand. Im free, baby now get 0 financing for 72 months across the entire lineup of ford cars, trucks and suvs, during the ford freedom sales event. Walmart confirming its agreed to buy online retailer jet. Com for about 3 billion in cash, a portion of that subliminal. Over time in addition another 300 million walmart shares will be paid over time according to the press release as part of the transaction. Some reports that gentleman that founded jet. Com would take over all of walmarts efforts in the online marketplace. That does not appear to be the case, not according to the press release. Theyre spending money for a company that right now has a billion dollar run rate in gross merchandise value. Offering 12 million skus, separate products. They have a big group of people out west, walmart, in the valley, and they couldnt invent this site, is rather amazing to me. This is so [ inaudible ]. I dont know. They are going to be on squawk tomorrow. They are talking a big game here. We know that they are focused on trying to at least carve out a significant business in online where theyve moved in fits and starts for many years and watched amazon completely crush them. And everybody else to be fair. You know, jet. Com may give them an opportunity. There had been thought these guys do know their way around this marketplace, perhaps in a way that will be helpful to the management team. Right. And maybe that will be the case. They paying 3 billion to just bring this guy over. I dont know. Look, the fact is i dont think its a vick rum pandit when citigroup paid no. I do like the fact that this company has historically been able to come in under the pricing of amazon, so you have walmart using its scale. These guys coming in under amazon. They might be doing a move on amazon. Doug mcmillon was given a blank check basically to defeat amazon and when you a blank check this is what you put on it. You put 3 billion to jet. Com and the family will not ask any questions. Amazon, you have to take them on. I think hes got complete support is my sense. Absolutely. Of his most important shareholders which as you say is the walton family. And they want this. Remember over 50 of the stock. Remember in 2015, Doug Mcmillon came out of the investor meeting and said look, hes got the ecommerce and retailer are the same and were going to make it the same. This is seamless. So i think its something worth watching because walmart was the Sleeping Giant and theyve awakened. Theyre awake. Theyre awake. They have 3 billion. Its just always interesting to see the history of acquisitions of this type to get Certain Companies in areas or bulk or understanding is mixed. Analogs. Very mixed to say no. Analogs to i dont. I mean not. Not here but not a lot of winners. Snapple. Snapple maybe. Snapple. That was one they tried to give them a little more who bought quaker oates bought snapple. Yeah. Theres been great acquisitions that have not panned out. No. In the dotcom world. Thats my world. Frankly, the majority. Yes. I struggle to come up with one. Broadcast. Com. Mark cuban. Yahoo well that went very well for mr. Cuban. Shark tank. Colored that stock. A smart move. Right. Went on to basket and that was it. All good. A lot of online that have been quite terrible. Many of those cases the facebook ones many of those cases talking about stock for stock. In this case walmart putting up that 3 billion cash, 300 million in stock. Fapharma for pfizer. Gilead. It could be pfizer warnerlambert a great deal. Whi we dont know. We dont know. I suppose time will tell. Maybe tell you one day when we fig it out. Are we going to get to the big deal that is allergen sfo. We will talk about allergen earnings, alere versus abbott, ive been following, very interesting, alere out with the 10k. Abbott fires back. Insight on that. But up next, were going to have your mad dash. So get that going. Fabulous. Were becoack after this. The heirloom tomato. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients, stepbystep recipies, delivered to your door for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. Allergen. Its that time. Time for a mad dash before the opening bell. Allergen reports earnings and close that teva deal last week. Everybody wants to know how big are the buybacks going to be. 25 billion. Nonsense rumors involved in the company. 5 billion going to be aggressive. Botox still in the early earnings. Halfway through the growth trajectory. Big pipeline. Story guided light, do not take into account the division he sold last week, the drug, and, you know, the fact that the stock is going down is because the most most of the analysts did not upgrade, did not finish the new model based on the sale of the drug. Jpmorgan did and you can see jpmorgan which has the best says it guides to top line earnings per share that is actually pretty darn good. I would suggest reading jpmorgans before you guy decide to sell the stock. Want to sell the stock thats okay brent will buy it. Their Acquisition Strategy was does not according to mr. Saunders seem to include doing large deals at this time but more of the tuckin variety. The wall street journal about biogen would be way off base. Instead, i understand that the buyback is going to come in very aggressively at this leefls, 5 billion, and Brent Saunders is a man of his word, bought for total transparency but the analysts havent upgraded the models and this happens. Be my guest. My travel trust does own it and sell to brent, brent will be buying starting tomorrow. Waiting a long time for that. Since he if you call brent he was telling people including meg terrel, hes not buying biogen. We reported on it. The merck side is a little mu y murkier. From philadelphia. Merck produced murk. Some confidence nothing going on involving b