Deadly earthquake fallout in central italy. Oil inventory on the way pfr our road map with elon musks need for speed. Tesla announcing new models with a longer range. The epi pen controversy at myland. Details about executive pay there. Today is the oneyear anniversary of the 1,000 point drop in the dow. A look back at what was a dramatic session. Speaking of which, jim, on that day, the vix posted its biggest oneday spike ever even as now a year later its 40 below the 10year average. We remember that day well. There was a lot of disorganization and a lot of fear. There were stocks trading, i remember celgene down 20 bucks. There was no news on celgene. That friday we had gotten james bull yard, an interview on sirius satellite, making a case for a rate hike while making a case for china. I think what an opportunity the market down 1,000 and rallied to be down 100 and finished down 588. Turned out to be the max numb fear moment. China did grow at 6 , not 7. The fed didnt raise. Oil at 40 turned out not to be as scary and remember could you have only bought that opening you would be sitting pretty right now. We hear from viewers who say they did and are proud of it. We were telling people, look this makes no sense. I had been on the flash crash with my friend erin burnett and it was like Procter Gamble down 30. Thats ridiculous. A year later, how ten new was, stable is the recovery that the fed largely has built . Yes. Thats true. I would tell you that at the time and its always been exogenous whether the german, italian and french banks and february decline, whether brexit or then in this particular instance it was china and the communist party put in some i call them the communist because they call themselves the communist. They put in some structures that managed to executing egregious short sellers if they could find them and a lot of people laughed and said theres no way a government is bigger than a market. They met their match. The market met its match with the Totalitarian Society where every aspect and apparatus of the government, thank you, michael, from jpmorgan, putting this together for me, there isnt anything that the communist party doesnt rule and they mandated that the decline stop and it changed the world. Yeah. Interesting. On that note today, the pboc doing reverse repos, some are trying to read into that, maybe theyre more interested in adding funds than cutting rates . You know what, i think that theyve got housing no longer on fire, which i think helps them. They are still its still case by kay case. Strong auto market. Auto market is really strong there. I think theyve tried to get the consumer to do better. Yum would say theyre doing better. Starbucks would say theyre doing better. Overall i think china is in a position where they could do a lot of stimulus if they want to, infrastructure spend. People just always talk about what a joke our infrastructure is. They have 100yearold sewer system in the major citys. Their pollution is killing a Million People a year. So they are trying very hard to become more clean energy. Theres a lot they could do still to help the economy. Back home today, some discussion and hand wringing about september. Its the historically the weakest month. Journal points out more 5 declines than any month since like 1945. Well, september has been historically a tough month. Not at the beginning. People come in with 401 k contributions, teachers, get el crated at the beginning and goes down. Its been a period where the Technology Companies kind of reel, because they disclose their book of business and you see that europe was soft, because europe tends to go on vacati vacation. If you look at the map, february marks the peak of tech, thank you Goldman Sachs and september the bottom as we get preannouncements. September has been a preannouncement month. Its much more based on earnings and that, therefore, is worrisome. Im not as concerned this time, if only because if you remember from brexit a lot of the individual investors have kind of fled and theyre the ones who are most scared, unfortunately, when we should be they should be the ones the greatest youre not looking for an air pocket the way some said august would bring. I think that i hate to have to pin it on yell on friday, but i think how about this, if we get a [ inaudible ] park it, not unlike the february, the brexit air pocket and the pocket at the top of the show. It wont be as relevant. The consumer is much stronger than we realize. The Housing Market holy cow, back to 10 years. Really some amazing calls. The toll brother call is required reading for anyone scared of the economy. Dallas call and denver strong. These are areas that have been hurt by oil. Theres a lot thats good and im not afraid to say it. Yeah. Were not afraid. Existing homes today but the new homes number yesterday extraordinary. Till 8 belot quarter century average. When bob toll said that and i think people have to recognize something carol toemay said in her call, the cfo of home depot, 3. 4 million households created if we went back to the household formation of the 2000s. Unnatural to have so many live with their parents and, you know, look, i think were in a new world not like my days when we got out your parents kicked you out. Get married have a kid and buy a house. Living with well i was happy to leave. It was mutual decision. But i do think that if we get back to that period well know it. Bob toll about how were not back in a speculative period. We have 4 , fourmonth supply of homes. Thats not enough. And so youre getting a lot of home value appreciation which therefore means if we buy stuff at home depot we improve the value of our house, the toll brothers, talk about 850, 860,000 homes up very big from the year before. 16 . If all thats true, we talked yesterday about people buying appliances at yeah. Best buy. Retailers. Explain lzb or express today. Okay. I dont i dont want to be critical of particular management because i happen to think the guys that run express are nice people but they dont have the right apparel mix at all. And they dont. You dont have such a gigantic draw. You dont get a minus 8 comp physicals you are a said disappointed with Second Quarter performance. They dont have the right merchandise and lazyboy. Dont look. Its like walking dead, both of them. Walking dead two and fear walking dead. What i would point out if you go on the jc penney call where they talk about their ashley line of furniture thats strong. Mattress firm, the bid from steinhoff, south africa, at home putting up good news. Eaten allen. Lazy boy is the exception. Ethan allen doing well here. Express, the guidance, 9 to 15 cents versus 32 cents i told one of my staff to buy some of the close there, so you can find out how ugly he are. Everyone else is selling clothes people like. Anthropology, Urban Outfitters in wedding outfits. You have to get an appointment. The journal points out since mid may, urban up 40 some odd, aeo, ross, tjx, all double digit or close to double dij it. The ross call was really exceptional and still have a lot of room to expand in the midwest. I thought the urban call the fact that flugship store was very good, the fact the they talk about regular pricing in fashion. Express has the wrong fashion. Fashion is a subjective thing, but, you know, you can be very wrong on fashion, thank you, mickey drexler, for explaining that. I think express has the wrong fashion. I have pvh on tonight, and i think manny will give us the full story. Do you think back to school has been priced in, a strong back to school . I think theres more room. Manny will explain. The best pvh, this is a pvh tie. I like it. So its got that added advantage. Yes. I do think that youre going to hear that the inventories were so lean coming into back to school that the ordering was that good, which therefore, means that the Holiday Season could be good. I like whats happened. Got it. Lets do tesla quick here. Elon musk as you know, announcing the electric automakers amped up battery. The packs should power the model s cars 0 to 60 in 2. 5 seconds. Musk said about the battery on teslas Conference Call, take a listen. With this you will be able to travel, assuming its not a super hot day or something, and you dont and you maintain a reasonable speed, youll be able to travel nonstop from l. A. To San Francisco. Theyre calling it the fastest production car in the world. Someone said, if tesla could now make cars faster, meaning make them more quickly. Look, it is a production issue. Every time i criticize the guy i think about jay leno saying who else has made this number of cars other than ford, gm, really. Chrysler. This he is a remarkable guy and they always theyre doing fundraising for solar city and hes in on that. I dont know. I dont doubt him. I want the car. I just dont the stock is a cult stock. People who jim stewart came here, the great New York Times writer said something that was sounded oxymoronic, shareholders of tesla like their stock. They never part with it. That was brilliant. First i said, come on, jim, how about genuine home spun wisdom. They like their stock and dont part with it. Like a share of disney. Share of tesla. We will watch to see how that develops today. We also want to Pay Attention to italy. This major earthquake rocking several towns in central italy leaving at least 39 dead. Nbcs lucy carvefanoften. Good morning. Good morning. The scene here is just unbelievable. This is the epicenter of the earthquake that struck at about 3 35 a. M. Local time. So powerful was the quake that i felt it about 100 miles away in rome. As we were driving up the hill, we saw rescue workers driving to the scene, people bringing bulldozers to help get to those trapped beneath the rubble and the scene is incredible. Buildings flattened, holes within walls. You can see the side of buildings completely collapsed. Bathrooms, living rooms, peeking out. People were sleeping in their beds when the quake took place. No time to get your things together and to get out. Weve been able to confirm at least 17 casualties, but it is still early on and those numbers are unfortunately likely to rise. We have seen where im standing, in fact, there are rescue crews, they have been racing against the clock to get to those people who might still be trapped beneath the rubble. There are several locations. Its a dangerous task. We have been feeling aftershocks. We havent seen more structures collapse but it is possible that things could get worse before better. This is one of the worst earthquakes italy has seen since 2009 the devastating quake, at least 300 people were killed in that one. The town now remains a ghost town. What this will do to the economy, the industry here in center italy remains to be answered. We appreciate your report so much. I daughter just got back from right there last two weeks ago. Just terrible. Yeah. One of the most beautiful parts of the world. Really. And, you know, you just read of these terrible sad. When we come back the epi pen price countntroversy and what Martin Shkreli is saying about it. Brad smith, the companys guidance weighing on that stock. The premarket as we within range of new records. See if we got them like yesterday. More squawk on the street from post nine in a minute. Look at you. Youre at the top of your game. Youre unstoppable. Nothing can throw you off track. Wait, is that your car . Uh oh yeah, i saw that coming. That will throw you off track. Youre looking at around ten grand in fines, legal fees, and increased insurance rates. Lets try this again. Smart move. Because buzzed driving is drunk driving. Mylan feeling heat over the price of the epi pen drug up more than 400 since 07. When the Company Acquired the rights to the treatment for people with lifethreatening allergic reactions. Senators on capitol hill want answers from the ceo and calling for an ftc investigator, but former ceo Martin Shkreli known for a 4,000 drug price hike at that company defended mylan in an interview with cbs news. Mylan has one product where theyre starting to make money and everyone is going crazy over it. All right. So were back here again. Jim . Talking about the morality around drug pricing. Well, look, that guy is a tough guy to root for. But i do think that theres this dilemma and i ask all the drug ceos who come on mad money what kind of price increases have you put through and they basically know that if they put through more than inflation, that theyre going to be in trouble. And what i call what i think is most interesting is dont forget that valeant has a committee to determine what theyve moved up too much. They have that new cfo and joe papa came from perrigo and im waiting to see what they roll back. When you stick your head up like this in an Election Year you will have to roll back. Thats one of the reasons mylan stock has been weak. Especially dealing with a product that is largely solves problems with children. Right. And we all know about the explosion in allergic diagnoses in this country over the past 20 years. Right. Its a mainstream consumer story now. On nightly news last night. I always carry a version of it. Because i had i had antifa lactic shock on mad money, my Blood Pressure dropped 80 over 50 and i had to go to the hospital and they require i carry it. Im a person of means and able to afford it but yeah, this is something if you dont have it, and it, you know, you need to carry it with you at all times. Yes. And this is something that i think that there should be some compassionate use for. The idea that they should have a subsidy for this thing. Its seconds, seconds and you have to know how to use it. The one i have is you have to know how to use it and should not just be for rich people. We will watch the mylan story as it develops along with pfizer and the yaz stra zen ka antibiotic division, talk about going on a buying spree this week. And then disposes its Nuclear Imaging business to become more of a drug company. Theres so many things bubbling up. Celgene study coming on. A lot of stocks bounce right now because theres a lot of shuffling in the portfolio. A lot has come from the medivation deal. You cant stress enough, if david were here, i think we would be talking about sanofi was outbid by pfizer and so theres a lot of money around. A lot of bankers had raised a lot of money to go after medivati medivation. Whos next. Or will gilead break up into a slow and fast. Abbott has done a lot of acquisitions. A piece about medtronic. How they have everybody covered. You want to compete against medtronic you have to buy other companies. The action in health care is why this market is so we will talk to bill george later in the morning. The company he created but they he will be the first to tell you they made great acquisitions. Medtronic is a powerhouse. I cannot believe how strong this company is. Industry is filled with strong companies. Edwards life science, abbott. Somebody said its a good time to be a midsized biotech company. It sure is. Look, for its been a year and a half its been horrendous. Just very good bargains where theyre selling through the price of traditional pharma. When we come back we will get cramers mad dash and count down to the opening bell. Bunch of names we have not taken a look at one. More look at the premarket. More squawk on the street from the nyse in a moment. Theres no one road out there. No one surface. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 369 a month at your local mercedesbenz dealer. Its what the National Debt could do to our economy. If we dont solve our debt problem 19 trillion and growing money for programs like education will shrink. In just 8 years, interest on the debt will be our Third Largest federal program. Bad news for Small Businesses. The good news . Theres still time for a solution. Ask the candidates for a plan to secure our future. Whmade plastics that tmake them lighter . Rs the lubricants that improved fuel economy. Even technology to make engines more efficient. What company does all this . Exxonmobil, thats who. Were working on all these things to make cars better and use less fuel. Helping you save money and reduce emissions. And you thought we just made the gas. Energy lives here. Hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade wednesday morning, about 7 30 to the bell. Jim watching pioneer today. Something amazing going on in oil. Now, you understand weve been trying to figure out was goldman going to be right, down to 40, the rumors of an opec freeze, i dont believe in that. Not in their interest. Meanwhile underneath, pioneer natural and another Company Called pdc, paul David Charlie energy have been acquiring energy in the permian, a part of texas with the great infrastructure weve forgotten about it but makes a huge amount of money at 48 a barrel. So every time one of these companies does an acquisition, pdc bought for 1. 5 billion, 57,000 net acres, thats 30,000 an acre, between 20 and 30,000 in this area and going to make a lot of money off it. Do equity deals. Pioneer the chart is amazing. Two equity deals and each equity deal has been tecrrific. Companies going to the right ache cadge are doing well and the right acreage, in texas. These inventories last night, i dont know how they come up with consensus. Biggest build in four months when looking for a draw . Theres a gigantic glut, thank rb energy. A gigantic glut of gasoline. Even in the east coast where theres usually not enough gasoline. Its forcing down all the prices of oil. So i think oil is manipulated higher here by rumors and by chatter. But theres a glut. And the glut is getting worse because of the no place to put the gasoline anywhere. China doesnt want more gasoline, europe is filled up with gasoline, mexico is taking all the gasoline, we dont have any place to put our gasoline. If you can make oil,