tv Squawk Alley CNBC July 22, 2019 11:00am-12:00pm EDT
♪ good monday morning. welcome to "squawk alley." i'm carl quintanilla with jon fortt and deirdre bosa here at post nine of the new york stock exchange morgan brennan has the morning off. we're going to start with this rally in tech stocks ahead of some big earnings later on in the week obviously, we'll get facebook, alphabet, amazon, intel, and twitter all before friday afternoon. bob pisani and mike santoli here at post nine on what to look for and which print do you think we have the most confidence in going in that was a question for cramer today. >> which print we're going to hear from this week? >> he thought maybe google had more liability >> well, google's in the penalty box of those four, so i think probably does have the most to have prove also, perceived to be the company that cares about making the number least i don't know if that works for them or against them in terms of setting expectations but this time i think what's
going to be most interesting is how the stocks react and what was already built in or was this just kind of a big trade into big cap growth and we're not really talking about the quarterly results. it's just a placeholder type investment or are we really banking on great numbers from the likes of facebook and the others? i mean, microsoft is really interesting. flawless quarter, stock's getting a nice bump, but it's not running away >> what's amazing to me is just how big these companies have become if you look at the numbers and the actual earnings, i like to look at the earnings,they're not that great earnings from the technology group are down this quarter. earnings from the technology group are down in the third quarter. the semi-conductor has been generally bad with a few exceptions and yet people keep buying these stocks and they keeptelling me well, there's nothing else to buy in growth. semi-conductor index, the smh, we've talked about this before, 2% from historic highs horrible commentator from the second quarter horrible commentary for the third quarter. everybody says, oh, well, it's the 5g story we have to buy it, because it's the 5g there's always this eternal
hopeium, i know i've overused that word out there on the horizon, some kind of savior >> how long does that last >> it's amazing how long you can make it last considering the numbers have just not been very good this year overall so you've got automotive industry going to turn around, oh, that's going to help the semiconductor industry internet of things will keep growing, 5g will keep growing dramatically so there's always on the horizon, there's always the belief -- these companies are consolidating and they're better able to withstand downturns, a certain narrative that builds up around this, even as the estimates, the actual earnings numbers keep going down for the second and third quarter >> mike, 22 of the tech stocks that i cover closely hit 52-week highs in the past week, including adobe, amd, ebay, cisco, intuit, microsoft, shopify, texas instruments i mean, it's across different areas of tech. it seems almost indiscriminate >> it is across most areas i do think that the emphasis, it
has been software, anything you can try to sell as a platform of any sort even if it's not even in tech, right? if you look at last week's all-time high list fidel ty information systems and the exchanges, the -- >> msci -- >> the security exchanges. exactly. so anything -- varisk analytics. that's the emphasis along with the kicker of massive branded companies. >> we have been talking a lot about the f.a.a.n.g.s which have led the market rallies, but have we been paying enough attention to the payment space visa has risen 36% year-to-date. paypal up 40% year-to-date what are you expecting from these names? especially when there's a lot of questions in the space you've got libra, you've got the federal reserve looking at this realtime payment system. are there risks -- >> if you added up all the market cap of those companies, of the visa, mastercard, paypal, all of the other kind of related payments company, you really have to wonder if there's enough
to go around, right? in terms of very long-term growth, in terms of who gets the share of -- which everyone agrees will be more electronic and digital payments so it's a very good question i think visa is one of these like, buy it forever and hold it for some people. and for other people, it's like, i lack imagination on anything else >> i used to think, it was hard to find the bear case for visa, but you have all of this big disruption happening in the space. and i'm interested in hearing what they have to say about libra. because visa and paypal are part of this libra association. but what does it mean for their earnings >> isn't the action this year telling you that they are -- investors are not, for the moment, concerned this this libra thing is going to be massively disrupted. >> one element of it, though, is the criticism of libra is that, oh, it's only these private companies getting together and creating an association. that's how visa started! it was the banks that got together and it was a cooperative and it wasn't some government-chartered thing that said, now we're going to have -- this is the way we're going to process credit card payments >> i'm more concerned about the
weightings of these things i know i pound away on this every week, but you look at amazon, you look at facebook, you look at alphabet collectively, it's 8, almost 9% of the s&p 500 by weighting now. and people keep piling into these sectors. so essentially, ten stocks are over 20% of the s&p. the other bottom part. and whatever happens -- >> what's the historical moves -- >> it's been that way -- >> there have been times in 2000 when -- >> but it tends to be more like what -- >> that's pretty concentrated. the top ten stocks that's a good question >> if you go back like into the 70s and 60s, it was ibm, at&t, general motors, standard oil you have had -- >> but they weren't all tech stocks >> no, they were not all from the same industry. >> unusual high concentration. >> do you think that -- i'm looking at amazon on thursday. do you think that they come out and talk more about the anti-trust scrutiny that they're facing it's really been their strategy to sort of sit back and just let the results speak for themselves or talk about their third-party merchants. do you think they have to be a little bit more proactive?
>> i don't know if they have to be don't you think they would default to what they normally do, which is focus on the 24 things they list as their accomplishments in the quarter at the top of the press release? >> their twitter account has been a lot more can i have they used to say nothing now they'rereally hitting back against politicians, elizabeth warren and others who are making, trying to drill them on some things. >> i wonder in the q&a, from analysts and stuff, if that becomes more of a threat >> i think being proactive and taking them on a little bit more, you've got to lay out -- if you don't, all of a sudden, the zeitgeist, the narrative is, they're evil how did that happen and how did they just sort of act wquiesce o allow that to happen four years ago, google's motto, don't do evil was the default. now four years later, everyone assumes they're evil they better start a counterattack, because they're losing the pr warright now that seems pretty obvious to me. >> there's a lot of advice for google comps these days. let's get to data protection both google and equifax reaching
settlements with the ftc over data and privacy issues. meantime, this face app continues to receive congressional scrutiny over its own data sharing practices our next guest says in our latest op-ed, does russia want more than your old face? and debates how domestic -- how domestic big tech is already bree breaching our own data joining us on the phone today, recode's editor at large, kara swisher. good morning to you. >> hey, carl, how you doing? >> good. where do you come down -- let's do face app first. this was a topic of discussion where you were recently. >> mm-hmm. yeah, i was at a security conference in aspen. and it was all of the big security people in foreign policy and obviously, you know, they've been talking about the incurs n incursions, especially from russia for a long time, and have been concerned about it, and especially concerned now about china. and so at the same time, this face app thing pops up, which i think is not the kind of thing that they consider serious at all. and in fact, a lot of security analysts have said, this is not -- they're not sending everything back to vladimir
putin so he can look at your old face, but it still brings it into the consumer sector this idea that there are companies that are not based in the u.s. that have a ton of data about you. and that might be concerning, from authoritarian regimes >> kara, my issue with the whole face app craze is i didn't get the sense that people were thinking about it. just like people put smart speakers in their homes and don't necessarily think about the fact that there's an open mic to a big multi-national corporation there. the fact that people were taking facebook quizes and not necessarily thinking about how their data was being populated it seems like we're not learning, necessarily, to go, wait a minute, who makes this app? where is the data going? let's read the fine print and then decide whether we should be using it or not. >> yeah, absolutely. it was interesting, though a lot of people seem to know about the russia angle and they're like, oh, wait, it's owned by russia. i heard from a lot of people it's interesting when it moves into the consumer space in a more significant way but, yeah, nobody thinks about
it at all. typically, if they do think about it, they're like, what do i care, they have my old face. but this one seems to resonate a little more. even though candidates are getting involved and the democratic candidate have said warned not to use it if they were, i can't imagine any of them were, and some of them don't need it and so it's just an interesting question of when does the penny drop for consumers that they're giving away their data and it could possibly be dangerous to do so >> kara, you brought up an interesting point in this article, you said, if people are worried about face app, what about an application like tiktok, which is from china and which a lot of kids are using. they have a lot of data. do you think that especially given what's happening in the trade war between china and the u.s. that this app could receive more scrutiny? >> well, it's interesting, they got a little bit they had to pay a fine because of the way they were marketing to kids, or something like that. but i think most of the people at the security conference, the overwhelming attention is on china, not so much on russia
everybody was sort of, russia is a bad actor in the digital space, but china is the real challenger here, not just as a bad actor, but as a country that's going to out-innovate the u.s. and that's a problem an admiral who runs the whole area of china and that area was essentially saying within -- by 2050, the chinese are going to overtake us in the region, from a military point of view and he thought the investments in technology were critical in this country to keep up. >> so where do you go from there, kara? do you have this sort of digital berlin wall that you talked about in your article, or do you get a less open, a less free internet, eventually is that a bad thing? >> well, will there be two internets? will there be one? is it going to be an internet of these sort of clouds that are owned by different countries it was just really interesting to think about the idea. i can't imagine, you know, the open internet has been such a benefit and created so much wealth and created these massive companies. so you don't want to really go to a closed system in any way.
but in a lot of ways, you have to think really hard do you want a really authoritarian censor, heavy data following you internet or do you want a different kind of internet? so they may not be mutually exclusive, but it was really interesting to think about the idea of a different kind of internet and paying attention to your privacy. i just think people will continue to use these apps, no matter what. but to be thinking about where they're from is really important. >> finally, kara, a couple of fridays in a row now, we've had an ftc story regarding big tech in "the washington post. this time, it's google we never seem to get a hard picture of what happened or what's happening do you think that changes when google reports this week >> i don't think google will say much about it. the ftc, i was meeting at some people with the ftc, and there's a push inside to be more transparent and to say what happened and what they went through, which i think is a great idea to understand how they came to these settlements i think these numbers are so small, even though they seem
like the largest ever. but given the encouragement of not just google, but, you know, so many. yahoo! has billions of people, 3 billion or something like that, it's really amazing that we don't know what our government is doing in terms of investigating them and it's not out in the open. so the question is, if these numbers are so small compared to the breaches, why did they decide to do that would be a really nice thing for citizens to know. and maybe what more does the ftc need in terms of staff, which they have talked about, the head of the ftc has talked about this in terms of doing these investigations they're so outmatched, it's really kind of amazing mat government allows it to happen >> yeah. kara, that's about all we can say about it for now but we'll talk to you soon thanks >> thank you >> kara swisher, recode's editor at large >> and still to come, is it time to sell to huawei again or not several prominent silicon valley valley executives are headed to the white house today taking on that very question that story is afr e eatethbrk.
equifax, as you know, being hit with the largest ever data breach fine. let's get down to kayla tausche in washington, who's with the director of the consumer financial protection bureau. hey, kayla >> hey, carl and thanks to director kranger for joining us, one of the principles who negotiated this nearly $700 million settlement thank you for being here >> thank for having me >> talk a little bit about the dollars and cents of how this figure was arrived at, specifically the $300 million
consumer relief fund >> so first, i'll say thatthis settlement was a joint partnership with the federal trade commission, with the 50 states and territories that worked with us, and any negotiation of this kind really is based on the facts and circumstances of the situation we looked at, again, the number of consumers affected, talking about 147 million americans, nearly half of all adults. and so understanding the number of those individuals who would seek, would seek relief through the fund for credit monitoring and the cost of that, as well as the individuals who may be affected by identity theft and thinking about the claims. the fund also includes time spent on dealing with identity theft issues, as well as getting credit monitoring services >> this morning, the equifax executive team said that there actually hadn't been that many people who had signed up for free credit monitoring in the
immediate wake of the breach so their expectation is that all 147 million people aren't going fob applying for relief here what's your estimate of the average amount that you think each person seeking relief would eventually get at the end of the day. >> well, i certainly hope that americans who are impacted do submit claims and do apply for this protection. it's a great opportunity to have free credit monitoring, both from the tri-bureau for four years as well as additional protection after that. it's important and i would encourage all consumers to be monitoring their credit. it can affect them in a lot of different ways and it's important to catch that early, if there is any particular issue in the near-term >> why not subpoena equifax executives, if there truly was a lapse at the highest level at the company? did you find that there was not one? >> so i would say that, again, each investigation really is a particular circumstances that we find ourselves in. equifax did take steps by replacing, frankly, a number of
top-level executives, as the investigation went on. and really, we -- you know, won't comment on the particulars. there were, obviously, a lot of negotiation both with the company and with our partners to make sure that we got the equitable outcome that we did. >> and finally, this is expected to be one of the investigations that was going to be put on ice with the change in leadership at the consumer financial protection bureau. so are you trying to deregulate or are executives still on notice that you're looking into these types of cases >> i have been very clear that we are absolutely going to take the steps we need to to protect consumers in the marketplace, including using our enforcement authority when warranted and certainly it was in this case. >> director kathy kraninger, thanks for your time today >> thank you >> carl, we'll send it back to you. >> all right, kayla, great stuff. it's a big story also a reminder, the ceo of equifax is joining the "closing bell" today. that's going to be at 3:00 p.m. eastern time meantime, tech executives gathering at the white house today in an effort to relax the
president's hard line restrictions on doing business with huawei. ylan mui has more on who is expected there this afternoon and what is on the agenda. ylan >> reporter: well, deirdre, white house counselor kellyanne conway just spoke to reporters here and i asked her if the white house is considering relaxing those restrictions around doing business with huawei she said the president wants to keep up the pressure on the company. that he still views it as a national security concern, but that he's also a big supporter of 5g. now, no official word just yet on whether the president will drop by that meeting with interstate executives later on today, but i have confirmed that treasury secretary steven mnuchin and nfc director larry kudlow will be there and my colleague, kayla tausche and i have also confirmed some of the companies who will be attending, including qualcomm, intel, broadcom, and micron. back in may, commerce put qualcomm on a blacklist that prevents companies from
exporting any software or technologies to huawei but really has the companies worried is the potential for a broader white house executive order that would bar any transaction with huawei. and already, the administration is seeing some pushback from capitol hill a bipartisan group of senators, including republicans, marco rubio, and mitt romney, and democrats, mark warner and chris van hollen, they are out with some new legislation that would get rid of the potential for any waivers to this ban. it would codify the white house executive order, and also, require the congressional approval for any removal from a company from this blacklist that the commerce department has put together so, guys, we will be following the story and get back to you as we learn anymore details >> ylan, thanks very much for that one that would clearly make president trump's aim, if he wanted to use huawei as a bargaining chip, much more complicated. but let's get some more insight on this. we're joined here now at post nine by former undersecretary of commerce for international
trade, steffan selig, now a managing partner at deer park advisers >> good to be with you >> you are increasingly pessimistic about this situation. what you just heard from ylan, does that make you more pessimistic? i can't imagine that would make you more optimistic. but at least they're meeting >> take a step back. in may, the treasury secretary said we were in the final laps of negotiations. and since that time, we have had no principled meetings between the two sides and in fact none are scheduled. the fact is, we have had very, very little progress two new things have happened, both of which ylan just pointed out. one is huawei and others were added to the commerce department entity list, which basically precludes u.s. businesses from selling technology to them and now the chinese are tying the concessions that the u.s. will make around huawei to anything that they are going to do to ultimately resolve the trade dispute. and the second that ylan mentioned, of course, is now
this increased political elm nm on both sides around china and making it more difficult to come to a deal that's ultimately successful >> so are you -- the van hollen, rubio, warner mix is interesting. do you applaud this effort to say, look, if you're serious about whhuawei, don't use it as chit >> historically, national security issues were never comingled with trade issues. and by bringing huawei in at this time when we were in this discussion and with the administration somehow tethering those two, it makes it very, very difficult because what is it that the chinese government can fundamentally offer from a trade perspective that would alleviate and ameliorate some of these national security concerns so i do think that is the heart of the complexity. >> stephanie, here's my issue with the way the administration seems to be taking on huawei it may very well be a big national security concern, but as you seem to be implying, if it is, then it shouldn't be
gauc negotiatable, right? and then at the same time, what exactly are the issues with huawei, aside from this idea that they're too close to the chinese government which you can say of not only any china-based company, but any company operating in china, right? >> well, john, that exactly for that point makes no sense. john bolton came out this weekend and said, talked about huawei and said they're fundamentally controlled by the chinese government and the chinese communist party. you would put a whole swath of the economy in that category so that shouldn't, in and of itself, be sufficient to make them in a national security threat i completely agree and so as a result of that, i think this has real complexity and has to be evaluated for each individual company and each individual market they're serving. >> so if the president says he wants to keep pressure on the company on huawei, but he has a big supporter of 5g, where does the u.s. go from here in terms of that race to 5g and if it's its infrastructure, the alternatives in europe are good enough, can the u.s. still develop its own 5g
infrastructure >> i don't think -- the u.s.-- the u.s. companies, the u.s. economy is not really dependent in any way on huawei and the chinese economy. it's quite the opposite. and one of the reasons why the chinese have reacted so strongly to this entity list and these bans is because they are so dependent on u.s. technology and u.s. companies to further develop their economy, which is exactly why china was so focused on this made in 2025 policy, which is to develop these industries so they do not have their economy, frankly, at risk of u.s. and western policies and in this particular case, administration fiat, to basically blacklist their largest technology company in the country. >> stefan, thanks very much for being with us today. as we head to break, a losing streak across the board, but they're trying to turn things around. here are the best-performing names on the dow so far today.
european markets set to close with investors keeping close watch on voting in the uk's conservative party leadership contest, a new prime minister set to be formally installed wednesday. wellem marx is in london with more >> thanks so much, deirdre in the next half an hour or so, members of the conservative party will be having to hand in the final set of ballots more than 100,000 of them have voted for a new leader we expect the winner to have that contest to be boris johnson, the former mayor of london we'll have that finalized at some point around midday tomorrow and once theresa may leaves the building behind me and goes to formally offer her resignation to queen elizabeth ii on wednesday, the new leader will then take charge as prime minister a huge amount on their entree, as you can imagine a lot of it focused on brexit. that's what brought down david
cameron, theresa may's predecessor and her as well. and we have about three months now for the latest deadline for the uk to leave the eu we have the bound weakening over the last few weeks the reae real challenge for the leader will be the parliamentary arithmetic inside the house of common a few yards away. a very, very narrow majority right now for the conservative party and to hold on to that majority, boris johnson or jeremy hunt will need all the support they can get the last day or two, we have seen four ministers in theresa may's government resign, saying they would not be able to serve under a boris johnson administration that's going to become one of the big challenges for him if he ends up taking the keys to number ten downing street later this week. >> willem, believe me, we're watching uk politics more than ever and the currencies over here willem marx, thanks. let's get a news update this morning and go to sue herrera back at hq >> here's what's happening at this hour. an iranian government spokesman
says they are diplomatic solutions to the issue of a british flag tanker seized from the straits of hormuz. he says that seizure is a justified response to britain's role in impounding an iranian supertanker two weeks ago. puerto ricans arriving early for what many people expect to be one of the biggest protests ever seen in the u.s. territory as irate islanders pledge to drive governor ricardo roseo from office. hundreds of thousands of people are expected to take over one of the island's busiest highways. israeli work crews began demolishing dozens of homes in east jerusalem in one of the largest operations of its kinds in year. the prime minister condemned the demolition as a serious attack israel says the buildings were erected too close to its west bank separation barrier. and today is prince george's birthday the future king is turning 6 years old. he is the great grandson of queen elizabeth, third in line for the throne there he was when he was born.
george is the oldest of william and kate's three children. congratulations to him and many more that's the news update this hour back downtown to you guys on "squawk alley. carl >> sue, thank you very much. the father of virtual reality, jerry linear joins us after the break. look forward to talking to him meantime, looking for some action about 70 points to the upside, 60 points to the downside this week we're back in a moment
welcome back user data and privacy remaining in focus not only for equifax, but for all of big tech, as well with major tech companies like facebook, amazon, and alphabet all set to report earnings this week with us now, silicon valley insider and the father of virtual reality, jaron lanier of microsoft. also, the author of "who owns the future?" jaron, good to see you >> great to see you guys how's it going >> it's going well so i really want your take i know you're not on facebook, you're hard-core in that regard, telling everybody to get off of facebook there is this face app thing last week, we were talking about that a little earlier. i'm guessing you didn't do it. but what's your take on people's willingness to give up different types of data? is some of it innocuous, or do you draw some line in the sand with that kind of thing, as well >> well, actually, the face app craze of the last week is interesting, because people found it creep yy somehow. they were worried that it's a
russian company. and i think that is very central to what's going on with tech that unlike other industries that might be facing anti-trust pressure from time to time, with tech, everybody has personally had this experience of realizing that the companies are going something with data, that there's something tricky going on that things are being customized in order to manipulate you and you don't get to see it there's some kind of a lack of transparency. and when each person can feel that directly, i think it adds to the political pressure. it adds to this feeling that there's something off here and i think that that is inevitably going to have an effect on the industry >> okay, so, is it, overall, a good thing or is it a neutral thing? these fines that we're seeing, whether it's equifax, ftc, google, facebook is it going to change behavior one way or the other, you think?
>> i haven't seen any evidence that it's changing behavior. i think what changes behavior is incentives created by markets and business plans, not by government fines, you know, because once you've gotten the fine, it's not like you're going to get another fine immediately, it's a kind of a known cost that has a limit and is kind of exceptional. so it doesn't really change your fundamental incentive structure. what we really need is incentives that are aligned with the interests of people and society, customers, everybody. and right now, the incentives are not aligned with the interests of everybody the incentives are kind of weird. in fact, sometimes it's not even clear who ultimately benefits. when you have kind of tricky and, i would call them, occult algorithms, because you can't see them, nobody knows what's going on, there's no transparency, it just makes everybody feel on edge and lose trust in the technology and even in the society, as a whole
it creates a kind of cynicism. and so we have to change the business incentives. i really don't think government fines can do that. maybe they can a little bit, but when the fundamental incentives of the business are going in a different direction, a fine here or there is not going to really have much impact on what happens. >> so, jaron, when i think about incentives, i think about shareholders and, you know, not very disheartened if you're worried about privacy. look at facebook, up more than 50% year-to-date give me an example how do you get those incentives more aligned in terms of privacy and what the business is doing, particularly when you see these big tech companies, their stock prices surging amidst al of this scrutiny and all the fines >> right well, it's a little different for each company in the case of facebook, i really believe it has to turn into a business that's more similar to netflix, where people pay to use it. and i also believe that people need to be paid when their data is used. because if people are paid for their data, that undoes the
incentive to misuse the data it also does something really interesting. since ai is driven by data, people are paid for their data, they can make a new -- they can make their money in a new way, as there's more and more ai and more robots. so instead of ai turning into no employment, it can turn into total employment, eventually so i think paying people for data and people paying for services, that's how to fix facebook and then i think facebook would become wonderful i really do. >> jaron >> yeah? >> sorry, just with the idea of paying for data, we spoke to mark cuban the other week and said that that would actually be very dangerous, because then it might actually incentivize these companies to hoard the data to themselves and do things because they've simply paid for it are you worried about that >> yeah, well, the way you're paid has to be on a royalty basis, so hoarding would be very expensive. it can't be a one-time thing it has to be -- you have to own your data in a permanent sense and only get royalties when it's
used so the idea of somebody else hoarding your data would not make sense and would be very expensive. that's the only way to do it you have to have what the europeans would call a moral right to your own data and so, i -- if you had a system where somebody could buy your data permanently, you would be absolutely correct, but that's not the way to do it that would be exactly the wrong way to do it and by the way, i can tell you about a hundred other terrible ways to do it, but there are good ways to do it >> this is not a hackathon, jaron. of the large companies, which do you think would be most likely to go to a pay-for-use kind of model? because it's hard to imagine any of these companies at this point in the game switching so dramatically >> well, you know, the pioneer has really been netflix. and i know netflix hasn't had the easiest time in the last little period, but overall, they've proven, you can build a business charges for something that people technically could get for free, if they wanted to
go to the trouble. and i think what we should do is look at netflix's successes and build on them. as far as people getting paid for their data, there are fewer examples, but they exist i'll tell you what my personal favorite is right now. i've been interested in the literally tense of millio lly tf people and hundreds of millions of people who make their living over skype by doing service. music lessons, advice, yoga lessons, that kind of stuff. and people who have a chance to be their own free agents on the internet can find a way to make a living, provided we give them that chance. and that really grows the economy. it develops the world. it's good for everybody. >> jaron, maybe a bit of a curveball for you. i know you've been at microsoft for more than a decade you've been at microsoft research for more than a decade. that was a company that was pretty much hated in silicon valley not too long ago.
wasn't too beloved by wall street either. today it sits atop the stack as the most valuable company in the world. what does that tell you, if anything, as a techie guy and as a bit of an insider. and yet, a cynic, about these tech companies' ability to learn and change >> just to be totally clear, i do not -- [ inaudible ] >> oh, we lost jaron >> it was a good question. i really wanted to hear the answer to that >> my rare good question oh, well we'll have jaron back. i dig the glasses. >> he'll have to email us. >> did you do the face challenge? face app >> somebody else kind of did it for us so i didn't give them any information. but everybody know who is they are, anyway. >> we're not showing it again. we showed it all last week you're not going to see it >> i just asked, because, jon, we always have this debate, right? you're no alexas or homes in the
house and i've got about a million. >> jaron lanier is back. >> technology has come -- i have this theory that the nets come alive and wherever i'm going to say something that criticizes it -- it fails, to try to shut me down. like ai is we me see? see, see, see? what microsoft has proved is that you can face regulatory pressure, a lot of it, very intensely and you can come out of it a great company. does that mean that regulatory pressure is always the right thing? no, it doesn't prove that. but it does prove that interacting with a society on that level is not a death blow to a company it actually -- i mean, people might be horrified at microsoft to hear me say this, but i feel like it's a company that kind of embedded lessons from the anti-trust period and there's a kind of a feeling for ethics and responsibility that i really like i'm not saying it's always perfect. i'm not saying there haven't been things that drive me crazy, but, you know, it's a positive
example. it's -- you know, maybe the other companies shouldn't be like desperately trying to avoid regulation and being cynical and going and sitting before regulators and saying, oh, you're not smart enough to understand me. instead, what they maybe should do is say, this is great this society is how we make our money. let let's engage and figure out a way to have a better relationship all the way around. it's not necessarily a terrible thing. >> all right take your lumps. jaron lanier, always know you're going to tell us what you think. i appreciate it. >> and as we mentioned, today on "closing bell," do not miss the ceo of equifax and another first on cnbc interview, that all begins at 3:00 p.m. eastern. don't miss it.
i'm melissa lee in today for scott wapner today at noon eastern on the halftime report, the monster week for earnings. about a quarter of the companies in the s&p 500 set to report, including facebook, amazon, and alphabet we'll get you set up plus, apple getting a big upgrade ahead of its results, but boeing's numbers cut ahead of its numbers and it is the call of the day on the chip stocks and we'll trade it that and much more on the "halftime report" at the top of the hour deirdre, back over to you. >> looking forward to it let's get over now to the cme and rick santelli for the santelli exchange. what have you gott for us, rick? >> well, deirdre, many traders, including myself, are wondering if 2% is really going to be a stopper this time around we know we had a couple of closes below 2%, right in the
mid- to upper 190s but real point is, as we all question our own monetary policy and try to divine where the charts are pointing for the next big level in treasuries or the yield curve, we almost forget the elephant in the room and the elephant in the room are all the other than sovereign rates that are marching through to policies that are much easier, much more stimulative. now, maybe our fed is going to embark on that road and maybe they're going to embark on that road because it's too hard to hold back the tsunami. you know, before our last meeting, mario draggy hinted about more is coming and of course, they have an ecb meeting this week. and now whether we get the easing now or in september or christine lagarde, when she starts out november, if she's going to embark on a bigger extreme plan, whether it's quantitative easing tightening or both, we just don't know. but one thing we do know it's very hard for a two-year
note through a ten-year note to avoid what's going on through the shots and the bunds or the japanese curve or all the other curve throughout the easing stimulus global world. and what we really notice is, if i told you that we had great support at "x," but overseas, whatever that "x" is here, let's say it's 2%, if overseas yields start to plummet, there's just no way that any sort of policy, fiscal or monetary, is going to start that type of arbitrage believe me, this is a very general description. we have the double bottom around 135. we have the double top at 324. and if you look at this distance and take the 62% retracement it comes out right around 207. now, 207 did a little bit of work here, but it certainly hasn't been a stopper. and if you look at 2%, we've had a lot of areas at 2% where we've almost held. the point is, double top, double
bottom, and most traders are of a sense that we could debate this and maybe 207 will be that high frequency trade that doesn't hold as we bounce around, but ultimately reverses. but the pull is large, and knowing what's coming in the eurozone, it certainly seems to me that the current low yield close for this move is 195 from early july, there's going to be an awful lot of stops there, as many traders try to get long and catch the momentum and they may try to do it early. that's why this thursday's ecb meeting is so critical carl, back to you. >> we know you're going to be there to help us through it, rick good stuff rick santelli, talking some ten-years today. meantime, disney dominated the box office this weekend. julia boorstin in l.a. to explain the weekend and the year that disney is having. hey, julia >> well, carl, disney has actually hit multiple new records this weekend "lion king" grossing $530 million plus worldwide
that includes $185 million at the domestic box office. that's the july record, the second largest opening of the year and if you consider this animated mated film, it's the largest animated opening ever. and all of these records are all the more impressive considering that the film got a negative 54% critics got a 54% negative rati on rotten tomatoes disney hit a second record avengers end game have topped avatar the biggest box office worldwide 2.79 billion all of this builds disney box office dominance and disney's dom the nance is likely to continue when you look at the three other big franchise films it has coming out this year but this weekend's box office surge drawn audiences back to
theaters can help with sony's "once upon a time" and universal's fast and furious and this benefits feeder chains. we see imax up dramatically. i want helps close the gap with last year's record box office. we also just heard more from disney at comic-con on how it plans to bolster the box office. it unveiled five marvel movies debuting in the next two years as we hear about this disney content we have to see how they use this to drive subscribers to disney plus which is launching in november. >> that's the backdrop, of course picked the stock up. what a run for bob iger even though the critics didn't like the lou"lion king," the audienc.
>> i wonder how much it mattered how hot it was >> you'll buy the ticket for the kids regardless what the critics say. >> half a billion. can't be hot every where >> an upgrade and downgrade to note stitch fix is up to a buy and $35 handle while rbc downgrades ceaicomm saying there's too much unrtnty around the pending ftc ruling much more to come ahead, stay with us. (gentle music)
- my degree from snhu has helped me tremendously. the flexible class schedules allow me to go to work full-time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we, at southern new hampshire university, are the ones who succeed. we are the ones who break through.
china's answer to the nasdaq opening for trade today and off to a hot start tech stocks up 140% on the exchange's first day as chinese foreign investment in the u.s. continues to fall all while the fortune 500 now has more chinese companies on the list than ever before bob pisani watching all of this. >> this is another attempt by china to break out small cap hi-tech companies from the rest of the pack. it's not the first time it's been done, however it's called the star market. a science and technology innovation board that's the important thing there are 25 companies in there. be a lot more. first day gains. you heard from carl anywhere from 84% to 400% simply put fewer listing requirements than on the
shanghai wraits shere it's a sux hang seng is down. shanghai is down likely they were selling big cap shanghai stocks to buy those ipos today that got a lot of attention on very heavy volume here what about the market? why? why is this of interest now? remember a lot of chinese companies, like alibaba they missed here in the united states the chinese noticed that they are trying to figure out how though get more chinese companies to list over here. private companies have a tough time raising capital in china. you have these state-owned enterprises, government backed there. the banks lend to those state-owned enterprises. smaller companies not backed by anybody they have a tougher time anji microelectronics up 400%. they tried this before, about
ten years ago. that was the chinex. we'll see if this one succeeds dow survived a m-midorning selloff. we're back in less than three minutes. - did you know that americans that bought gold in 2005 quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell
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all right, guys. a big week busiest week of earns. i'm excited for mass that's coming thursday >> semis doing well on multiple upgrades from goldman. lamb research, micron. >> melissa will have all that on the half >> welcome to the "halftime report". get ready for a huge week for investors. >> announcer: earnings avalanche. almost 150 companies in the s&p 500 report this week including three of the fangs, facebook, amazon and alphabet. disney's double delight. "lion king" roars and avengers end game now the biggest grossing movie of all time will disney continue to cast its spell. >> call of the day goldman getting bullish on the chip nam