Less than 30 seconds away now. Europe. What happened there . What will it tell in terms of a story for our markets . I can answer that by saying theyre up over the major averages. We dont have italy or spain which were sad about. Tenyear note yield and crude oil always a key here. Certainly crude has been according to my coanchor, mr. Cramer, in recent sessions, you can see the 10year note deal a shade under 1. 7. John stumpf is going to testify before the Senate Banking committee. Hell face questions about Bank Employees allegedly cheating customers by opening fake accounts to achieve their sales goals. In his prepared text, stumpf says, i am deeply sorry that we failed to fulfill our responsibility to our customers, to our team members and to the American Public. I accept full responsibility for unethical sales practices in our Retail Banking business and im fully committed to doing Everything Possible to fix the issue, strengthen our culture and take the necessary actionses to restore our customers trust. Last week on mad money, stumpf told jim he doesnt intend to step down as ceo. It may mean, some people say, that you have to resign. Jim, i think the best thing i could do right now is lead this company and lead this company forward. In fact, today we made an announcement about Product Sales goals. We never intended for Product Sales or any dynamic or any part of a Management System to be misinterpreted. When does this end . Is it early days . We spoke yesterday, the three of us, about the short memory of many people including customers. For most it doesnt really mean very much. Give me a sense since weve seen so many of these similar scandals, whatever you want to call it, how its going to play out if you have a sense. You go before the senate and you say we screwed it up. Board wants to get some of this money back from people. If its me, ill give it up. Deeply sorry. First question, how did you let this happen . Im very sorry it happened. Its my fault. Second question, what have you done to change it . I apologize. It was my fault. You do that five times to five questions. And then they dont know what to say. Thats what you do. Those who chose to argue lloyd comes to mind. Every time i try to make a point you steal it from me. I was in the room that day. He tried to explain, my late father called me in the middle and said would you tell your buddy, lloyd, theres only 100 of those guys and america likes them. With the exception of senator joe mccarthy who walked out when they attacked the u. S. Army for being communist, illadvised strategy by the late senator mccarthy, you must go in abject and say the board wants my salary taken away, theyll do it. Put it on the board. Say i apologize. Im sorry. Use a ratio. The ratio has to be you know why you dont like leverage. It has to be 1 to 1. No leverage whatsoever. Im sorry. Im sorry. And then its not like theres someone in the back room where he looks at and suddenly he doesnt tell the truth. There are people in that room that want to hear apologies and mr. Stumpf has to give it to them. From his prepared testimony, we do know hes going to say i want to make it clear there was no orchestrated effort or scheme as some have called it by the company. That would seem to be an important point that hes making. One that perhaps the committee will also tend to focus on and ask a number of questions about. This 2 million figure, the one that new yorker said was people that were defrauded. That number took it just kind of snowballed. There were 2 million possibles. They paid everyone immediately. If it was 2 million, everyone would have got a couple smackers. Thats not what happened. That number took on its an urban legend that its 2 million. So its very hard to stop an urban le urban legend. They didnt identify 2 million. When i asked him about that, he said not true. False. In front of the senate, theyre going to insist, they will insist that it was 2 million and so he can only say for so long thats not the real number. Before we get onto the Broader Market were done with that . You want to keep talking about it. Hillary is weighing in. All right. The control room is taking us there so well go. Clintons open letter to wells fargo customers. She says mr. Stumpf owes you all a clear explanation as to how this happened under his watch. There is simply no place for this kind of outrageous behavior in america. Trump said nothing . Havent heard from mr. Trump. He doesnt condone. Im sure he doesnt condone. Specific to stock price which people watching right now are curious about, there was an upgrade. You want to know the truth . I do. I can handle the truth. You cant handle the truth. 3. 5 yield and 11 earnings, people are going to buy wells. Barring Warren Buffett saying stumpf has to go and if you havent got that statement yet, youre not going to get it. Warren buffett is like the 12th man in football. Hes the 101st senator. If he says nothing, and the board wants to do claw backs, a week from now were going to remember wells fargo as a stagecoach. Stagecoach. Got it. All right. Are we done . Were done. Did the control room say were done . No, i did. I got something in my ear now. Our executive producer also confirmed hes an eagles fan and flying high. Lets move on first down. Futures on the rise. Fed policy makers starting a twoday september meeting today if you havent heard. An Interest Rate decision is out tomorrow at 2 00 p. M. Eastern. Also on the economic front, Housing Starts fell more than expected in august. Down 5. 8 . Thats are horrible numbers. After two consecutive months of increasing. Horrible. The wrap was that housing was getting stronger. Dont forget that john stumpf said it was not a good number. Is there a broader read through . Weather in the south was very bad. One things thats happened is i heard more about the weather than any time in my life in terms of bad numbers. If you want to know the benchmark of bad numbers, they blamed oil and get this, get this, get this. Agricultural prices. They blamed oil. And agricultural prices. Ag is down. Oil which way was it going for them to blame it . The area is not strong. They have ann taylor and maurice. Some people call me maurice. They have justice. Some feel a miscarriage of justice and inflection point. These are funny. If you would stay with me or ever shopped, you would laugh your darn fool head off. Never been in a dress barn nor do i ever intend to be in one. I dont spend a lot of time in barns either. I once tried to raid a chicken coop and i was timid enough to not even want to take the eggs. Thats what were talking about. I grew up in queens. No chicken. No barns. Are you finished mortifying me yet . Yes. Thank you. Lets go to work. First down. Oil you mentioned as did dress barn. And ag. What about oil in terms of interplay with our Broader Market given the action we saw yesterday . You cant have oil down 40 cents and expect to rally. The machines dont let that happen. Theyll take advantage of the up and sell it. Unless oil turns around you know saudis are pumping more than ever and no one care. Venezuela, russia, opec meeting coming on and a side meeting in algiers and theyre going to call for its all just a joke. Its nonsense. When reveal its a joke, it goes down. Saudis do what they want. If they talk the price up, they get more. I mean, thats what they do. When it gets to 41, they dont like that. The president of venezuela, david, hes a oneman wrecking crew for the western hemisphere. Thats a scary situation. Failed state as you said a number of times. Very distressing to watch. Another era where a lot of my friends went there as being a great vacation spot. I was there in the early 90s. It was great. I was visiting a buddy of mine that was working there. Shop there at all . I didnt do any shopping . Who goes shopping . I rode horses. I climbed mountains. You know what they love in venezuela . They love their scotch. All right. Coming up, a stunning deal in the pharma sector. Its small but wait until you see what the premium is in this deal. Also, coming up, sprint Ceo Marcelo Claure. He will join us after the bell rings at nyse. We have a lot more coming. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Its not often on this show that we ever discuss a company with a market value of less than 100 million but were making an exception this morning because that will no longer be the case for a company being acquired by allergen. Acquired off a 4. 70 stock price for 28. 35 in cash. Thats 500 premium there. Then theres something we call a contingent value. The right to receive up to 49. 84 in cash if certain milestones are met after the deal. If, in fact, that would be the case and you would receive 49. 84, the overall premium, jim, would be 1,550 making this a roughly as you see at the bottom there, 1. 7 billion deal. Now, keep in mind, it may not be a 1. 7 billion deal. It may only be 540 million deal. It caught both our eyes because its rare, if ever, you see a premium at the outset of over 500 let alone one that could admit to 1,500 if cbr is made good by the prospects for its drugs, which treats severe types of nonalcoholic Fatty Liver Disease characterized by the accumulation of fat in the liver with no other apparent causes so not from alcohol consumption. 2 to 5 of americans. Additional 10 of americans have fat in their liver. Thats the good news about this. Now, david, on july 25th look at that stock price. Well never see anything quite like that chart. Its the dream of every investor. I bought a 5 stock. I might end up with 80. Now, what makes this is Brent Saunders hold your ears for one second. On july 25th, this company, the stock tanked. Why . Because they did not meet their primary end point of a twopoint reduction in the activity score although it did demonstrate a clinically significant improvement. It didnt meet the end point. What price would Brent Saunders have paid if it met the end point . I dont know. Apparently i think it would have been the price of maybe three or four nfl teams. Cowboys, bears, maybe giants. Add them all together. This was a highly competitive auction. With who . Im going to find out. How are you going to find that out . Ill talk to a banker who will tell me. This is big market because of obesity and diabetes. People talk about it could be as big as oncology in a few years in terms of scientific impact. And their main drug, they believe at allergen it seems could be a cornerstone product. Lets put this into allergen framer. Its just a fourth acquisition thats basic research where there can be things that happen that are gigantic. David, does that not sound like the opposite of the trio of the three musketeers that im talking about. Youre talking valiant, milan this is a stake price increases. Price increases for stocks. Strike in the ground that says hell take these incredibly small situations that might work and develop them into giant tent poles. He has the money to do it. Knew acquisitions would be part of the strategy there given the money they took in. Can we just give brent his due. Hes run pharmaceutical Companies Better than anyone in the world. We have video of john stumpf arriving on capitol hill. Always interesting to watch. There he is. You can see him there. Gray haired gentleman at the back of the line. There he is. No handlers. Not a lot of handlers. He gets prepared to testify in front of the Senate Banking committee which well be taking live for you once that testimony begins. During our show . Our show will be over. 9 00 to 10 00 will be over. Im not going to let that happen. Up next ill share it in a split screen. Up next, we have you again. Imagine that. Giving us a mad dash. Get ready. First down. Figure out what youre dashing about. Another look at futures here as we get you closer to the open about ten minutes from now well start trading as you can see it does appear well have a higher open judging from the futures. Were back after this. Images, v, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. What powers the Digital World . More communication. Ata. Like centurylinks Broadband Network that gives 35,000 fans a cutting edge game experience. Or the network that keeps a leading hotel chains guests connected at work, and at play. Or the it platform that powers millions of ecards every day for one of the largest greeting card companies. Businesses count on communication, and communication counts on centurylink. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Here it is. Mad dash for this tuesday. Lets get right to it. A little less than eight minutes before we start trading. The one time encana has held up i had my chance. I blew it. Encana sells 170 million shares at 9. 35. Why does this matter . This is a blank check for encanyarenca encana. We dont know what theyre going to buy. 35 million shares really doing what i record as Bargain Basement bid for the assets. Weve had pioneer do these. Weve seen the old st. Marys sm energy. When you buy assets, you go up. The price is so cheap. This is the first time a blank check for encana. I dont know, david. Im a little skeptical. Are you . Yeah. Hes an englishman. Thats the way they speak. I thought he was from boston. Thankfully we left that behind. This is one that i think if they had named what they were going to buy, it would be 10. 5. Any guesses . Where are they now and where is it likely . They have a lot of despair properties in colorado. Theyre everywhere basically. They have to get oily. Theyre not oily enough as far as im concerned. Oily being a term not about bankers but about actual stuff that comes out of the ground. Understood. Encana. You say that so well. We have an opening bell. Six minutes or so from now. Also by the way, sprint ceo is going to join us. Do you have to wear glasses and hat . Get the camera ready. Hes about 65. Hes 65 . Yeah. There he is. Right there. Marcelo is 65 . Hes very tall. Were coming back. Hit him. Hit him. What are we gonna do . How about we pump more into promotions . Nah. What else . What if we hire more sales reps . Nah. What else . What if we digitize the whole supply chain . So people can customize their bike before they buy it. That worked better than expected. Ill dial it back. Yeah, dial it back. Just a little. Live business, powered by sap. When you run live, you run simple. Everyone thought i was crazy to open a hotel here. Everyone said its so hard to be a musician, but i cant imagine doing anything else. Now that the train makes it easier to get here, the neighborhood is really changing. Im always hopping on the train, running all over portland. I have to go wherever the work is. Trains with innovative Siemens Technology help keep cities moving, so neighborhoods and businesses can prosper. I can book 3 or 4 gigs on a good weekend. Im booked solid for weeks. It takes ingenuity to make it in the big city. Youre watching cnbc, squawk on the street. Were live from the Financial Capital of the world. The opening bell will ring 2 1 2 minutes from now which gives us time, jim, to talk about what we can expect in todays trading session and often when carl is not here, ill turn to you and ask what is the key to this market which means what are you focused on that you think will have broader implications perhaps beyond its own . I hate to default to a name thats been in the news for more than ten days. Its not going to be wells. Its going to be apple. This is the second note. The initial interest in the iphone has already peaked. My problem with that is once again analysts have seemed to, lets just say, be tepid no matter what apple does. I dont think that this is i think theres a long tail here to the apple phone. You didnt find any analysts who just said, you know what, thats amazing. You know why . There were very few holeds. You needed a hold to buy. Stock up in the last few weeks. Analysts never i think they all have lukewarm buys. They all kind of wanted to jump ship. They all feel that apple is going to have another bad quarter. Theres nothing there. I continue to focus on this Service Revenue stream. Its what everybody does. You downloaded a bunch. What i didnt realize was i need iphone 10 for that. Your point is thats a lot of revenue to apple. As you build up this huge base, you get a big stream of revenue that these analysts still refuse to count and yet, wow, the margins are incredible. Wells fargo is going up. Nonstop. Maybe the apologies are worth every apology is worth something in the stock price. As you hear the applause building here at the nyse, you can see here at the big board, marcelo claure, ceo of sprint. Celebrating a new marketing campaign. Well speak with him in a couple minutes. Over at the nasdaq, icf international. There it is. Looks like well as we expect, set up for a higher open. You can see more green on the old realtime exchange. Oil turns up because of rumors that someone is going to start. Oil is still not going the direction that the bulls want. I keep that in mind only because yesterday the market was fine and oil was up 90 cents and then oil reversed to be up 23 cents and it took the market down. So thats still another key to this market. Its kind of everything. Speaking of wti, near the low of the session. 42. 61. Thats about six weeks we havent seen that price. I d