earnings do in fact disappoint now, the tech rally has been highly concentrated fueled by facebook, apple, amazon, microso microsoft, all up more than 30% this year. remember, microsoft alone contributed to 15% of the s&p's gains last quarter it's worth noting that growth-oriented stocks as a whole continue to outperform value-driven stocks. that can certainly change if the outlook for tech earnings deteriorates due to factors like tariffs, a stronger dollar and a china slowdown kelly, back to you. >> thank you seema mody stocks soared in the first half of this year with the dow, the nasdaq, the s&p all posting double-digit gains can that be sustained? especially if buybacks dropped a little bit and the threat of a wider trade war with europe. let's bring in the chief investment officer henry and wall wash. markets famously climbed the wall of worry. the longer the list the better they typically can do, but we are coming off a strong first half. >> the strongest first half in over 20 years following the strongest january in over 30 years. the question then becomes the longest economic expansion o

amazon posting a rare miss on eps. netflix trying to recover from its disappointment last week and microsoft regaining the crown as the world's biggest company. for more i'm joined by paul, the lead portfolio manager of the wireless fund. paul, what's the takeaway message for you here >> the way i look at this, kelly, is that as i thought it would be this quarterly earnings season has been decidedly mixed. now one of the things that we have to absorb when we take a look at companies like amazon is some companies are delivering and guiding to revenues better than expectations, which is great. but they miss on earnings per share, and i think it's mostly because of a self-inflicted wound, which is the realities of most of these internet companies. they are going to have to spend more to meet these regulations for privacy. >> in amazon - >> so fizz a company still growing its top line but missing eps for reason of a self-inflicted wound, i think that's okay. >> so in amazon's case it's investing in one-day shipping. i'm su

they're trying to turn their offices into an amazon warehouse in order to get the tech valuation. i don't buy it >> so all of this is happening as they get ready for what reportedly could be a september ipo. this is probably one of the companies with the most hide-profile criticisms of its business model even uber and lyft did not necessarily have the heat on them like wework their valuation has continued to go up, but what's interesting about this is something we hear with wework or we company is the amount of capital that the founders have allegedly taken off the table, in secondary sales, with every one of these rounds, the founder will take a few chips off the table. this happened when snap went public we're talking about an order of magnitude more that has already gone in the possibilities of the founders, which is over $500 million. that's a lot of money that they are effectively holding on to risk free, because they sold it on the ride up. >> do we know if we're looking at -- so you want the last they were valued's juan $47 billion are we expecting them to do much more than

sales are not actually amazon direct they are third-party retailers, in many cases using amazon's fulfillment. it's not just amazon's platform alone giving some argument that this isn't quite as cut and dry as the treasury secretary presented. take a look in shopify it has a $36 billion market cap. that has tripled in two years. and its business is really allowing businesses to compete without being on amazon necessarily, though as part of the latform, you can also operate on amazon. don't forget about etsy. they have an $8 billion market cap. that has quadrupled in two years. amazon was competing directly with etsy. and you know what, they are still doing just fine. one area that has popped out for amazon anti-trustwise is again that third party retailing platform there have been some complaints that amazon has a lot of data about what customer demand is for those third party goods. can then use that against its competition that might be an angle that the feds choose to pursue but we haven't even talked about cloud, kelly you know, amazon has not really tied the retail and cloud businesses c

but this is, amazon is going to deal with some of the same problems that established hundred-year-old retailers will deal with. >> as people learn more about it, will they not do business in pennsylvania how could they ever be responsible for every third party product sold on their platform this is a story to follow. >>> a major airline is making a strange request to passengers, to say don't fly check this out >> do you always have to meet face-to-face could you take the train instead? could you contribute by compensating your co2 emissions or packing light >> i mean, this is part of klm royal dutch airlines' fly responsibly campaign they're trying to cut down on carbon emissions flights only account for 3% of global co2 emissions >> only? >> it's like liquor companies saying drink responsibly >> i thought they were going to say, use smaller shampoo bottles, lose weight >> eat less, stop breathing. >> it's so european, isn't it? >> this is all marketing >> it's green-washing. >> if they were being serious about it, they would make the carbon offsetting compulsory they would say, we're

amazon hits the right note and american eagle jumps on the cbd bandwagon. that's all ahead in rapid fire advanced safety technology on a full line of vehicles. now, at the lexus golden opportunity sales event. lease the 2019 es 350 for $379 a month, for 36 months, and we'll make your first month's payment. experience amazing. - my degree from snhu has helped me tremendously. (gentle music) 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. souwe, atern new hampshire university, are the ones who succeed. we are the ones who break through. >>> welcome back let's catch you up on a few stories that should be on your radar today. it's rapid fire. here with their takes are leslie picker bill, you're supposed to be in that chair today >> that chair? >> youwant to switch >> no, i'm -- no, no, wait i'm hooked up to the chair can't do that. >> i was going to say. i know our director can handle it alan can handle anything

amazon's bonanza kicks off at 3:00 a.m. monday this year it's over two days it's expected to generate nearly $6 billion in sales for amazon interestingly enough, big names like walmart, target, and best buy now offering up their own deals. this is turning into the new black friday >> it is and the question is will people actually turn to the competitors or will they just go where they think they can get these deals in what's known for just having the lowest prices? i will say, though, stretching it out to 48 hours does give consumers more of an opportunity to do some price discovery by looking at other sites. so we'll see how that translates into sales >> i've been a long-time prime member i am overwhelmed and it's not even prime day yet i am overwhelmed in the lead-up to prime day i've got the coupon that says they're going to give me 10% off prime if i shop at whole foods i'm about ready to say no to cyber shopping all together because i'm so overwhelmed >> wow >> i mean, am i a leading indicator? maybe. >> on the cutting

top brass from apple, amazon, google, facebook, all grilled on the hill we examine the real risks facing the companies and their shareholders >> and solid demand and low interest rates home builders should be ecstatic, right? maybe not. we'll show you what's worrying them about the american housing market as "power lunch" begins right now.

amazon a little smaller of a business but it's expected to grow faster because it's not as mature >> julia, what jumped out to you about facebook last night which, again, put up -- just showed the business continues to execute despite all the headwinds it's facing >> facebook growing as revenue faster than expected what i thought was so interesting, kelly, was during the earnings call last night there was a moment where the stock turned around. it had been higher and reversed and went into the red. that's when the cfo warned that they expect revenue to have a pronounced deceleration in the fourth quarter and going into 2020 and he said that's because of uncertainties around ad targeting. i do think facebook is not entirely out of the woods yet, and they don't entirely know how some of these changes in terms of a regulatory standpoint and in terms of consumer behavior around privacy are going to impact their ad business >> which raises the larger question, is their efficacy driven by the very practices that regulators are trying to crack down on? >> it's going to be a huge impact on t

my theory is these analysts are the same gang that covers the stocks, facebook, amazon, netflix. apple is the slowest grower by far. if they grow at a 1 % clip, that's a disappointment. for the revenue stream, that's a loss my solution, you need to view every hardware sale as like a one-time game. hardware is cyclic l but the subscription business is like a cable company. follow with the tech analyst think about a cable company hits you up for more money every month. they have a 99% satisfaction rate they do no favors but saying there are 420 million paid subscriptions. we don't want that how many subscribers, not subscriptions. we need that we need to build models. what's the churn you can find out the lifetime value of the subinstructioscrip. i know this business here is the issue, a tech analyst who covers hardware or software companies won't understand any of this they might not recognize the lifetime value of a credit card holder you can do the streaming, let's say bang k of america if you have 1.4 million people owning it and you know the rate and churn, you can see the pri

i mean, amazon is off a hundred bucks from july 12th, but really, in kind of a weak take for large cap today, as well it's hard to read. >> true, indeed. >>> let's get over to sue herrera now for a knnews update. >> here's what's happening at this hour. president trump talking to reporters before heading to historic jamestown in virginia to commemorate the 400th anniversary of american democracy. he says black legislatures who plan to boycott his appearance are going against people of color. >> they're so happy that i pointed out the corrupt politics of baltimore it's filthy dirty, it's so horrible, and they are happy as hell so you may have a couple of politicians boycott, but it's all a fix. >> thousands of sudanese students have taken to the streets. security forces fired live ammunition on monday to disperse student protests, killing at least five people. >>> and take a look at this. a cable stayed bridge with the world's largest and heaviest span was rotated into position in northern china and that bridge will have eight lanes on its 130-foot-wide deck the bridge's total weight, i

>> amazon webb searches have been so impenetrable you can't game fraud that's one of the reasons why cyber arc is always taught there are people who can lead. they have the keys to the kingdom and you have to try to stop them. this was not equifax it was espionage. >> the stock is nowhere near the equifax situation on capital one. >> capital one eyes glaze over, until they look at their bank account one day and maybe something changes. capital one, people are going to have to say -- richard cramer is a pretty good guy -- smart guy i don't mean pretty good capital one has been the one to shoot against. they make you pay a lot and give you a lot of credit. this is apple's chance apple is not as opportunistic as i would like them to be. people will be up for grabs if this thing mushrooms. >> mastercard up 21 stock is a little bit lower i think. >> it is down -- my travel trust owns it. they did not guide up the way i would have liked but mastercard is one of those stocks where you wait three days and then you buy them. here's the problem with mastercard thin tech is like cloud tech thes

you saw a statement come out from capital one where is amazon in this? what does this mean at a time when everybody is moving to the cloud. capital one has been very aggressive moving to the cloud when we talk about a firewall that was misconfigured on whose end, assuming from -- from the reporting it suggests this information was sitting on an amazon server, on an aws server does this become a larger story about aws? >> i think that's an interesting question to pose she is a former aws employee >> she's a former aws employee the data was sitting on an aws server unless i lost my mind, i would say, okay, does she know something about the way these servers are configured with clients that others don't? >> it was on an aws server she -- they didn't look to see whether i had done this, i can tell you that much you need some serious expertise to be able to do this, right she's got years spent working at aws. even though she's, you know, fatherly young fairly young, 33. i read they put up a flimsy firewall >> i'm trying to understand is that a flimsy firewall

i have my apple, google and amazon this one is obviously squarely in the middle of the trade sort of issues we were discussing to me as soon as the sentiment shifted from may to june, you had this stock up in a straight line 10% but here we are now, and i'll let carter speak to the charts, we're kind of at that gap level from late april. it's kind of hitting some technical resistance if you look at microsoft, you look at amazon, you look at google, it's a tale of three cities amazon had a's okay print to negative, google had an unexpected good print and it went up allot. google, alphabet and' many, expectations were low, off 10% or so from the all-time highs while the others were hovering around t. the option is implying a $9 monthly between now and next friday's close. on average the laviolette four quarters the stock moved 6%. that's a heck of a lot of price action for a name this big i actually think that expectations are low they put up a decent enough print into a weird quarter i think they almost have a mull began with the trade stuff i think the stock goes higher. options pric

amazon had an okay print to negative, it went down a little bit. google had an unexpected good print and went up a lot. the one thing about google, alphabet and apple, expectations are relatively low, both off 10% or so from the all time highs. when i think about the quarter next week, the options market is implying $9 between now and next friday's close. on average, this stock moved 6% after day's earnings that's a lot for a name this big. i think expectations are low they put up a decent enough print into a weird quarter i think they have a mulligan almost with the trade stuff and i think the stock goes higher and option prices are probably pretty reasonable enough to make an at-the-money bet to get a breakout at that level the trade is simple to me. if you are bullish and you think it has the potential to outperform like google, you buy a call when the stock was trading at 208, you could buy the august 210 call playing 4.25 for that that breaks even at 214 a quarter. that's up only 3% from the current stock price here you are risking about 2% of

deidre >> amazon is in full spending mode and that is cutting in to profits. investors, they don't seem to mind much because higher spend translated in to faster top line growth within day shipping costs may be bigger than expected, but as the cfo noted, they have been down this road before with warehouses and fulfillment, the willingness to spend on innovation in the past rather than deliver profit has paid off so far. so investors remain patient for now. this time around though, things could be different amazon is facing international and of course regulatory challenges >> deidre, thank you alphabet is on pace for its best day since 2015 actually contributing a huge chunk of today's index gains josh lipton has more in san francisco. >> so heading into this print alphabet was lagging the market and tech sector, but today i investors are mil piling in. easing fears of slowing growth that have weighed on the name. and the company gave investors something else they wanted too, more disclosure. revealing that its cloud business is now on track to rake in more tha

look out for amazon as far as the major logistics provider >> victor anthony of aegis capital. thank you. >> thank you >>> let's get to the action in the bond market today. rick santelli is tracking that at the cme >> hi, kelly two-day charts you see the big drop yesterday right at 8:30 eastern. at that time we were getting the durable goods headline also mario draghi. everything is pretty much the same pattern however, let's look at minus bund in mid-may. that's a good thing. let's out run. maybe we can out run the bad policy the questionable policy because as you look at the euro versus the dollar, the lowest level since may of 2017. maybe they are in thmanipulating their currency kelly, back to you. >> rick, thank you very much >>> coming up, beyond meat versus bitcoin and pet power and lean hog getting leaner that is in today's tasting menu. today's power house is 58,000 square feet. actual 2 karat gold covered front door we will take a look inside and check e icpot xtthpre inne every day, visionaries are creating the future. so, every day, we put our latest technology and

>> yes it's 8 billion for 36 billion at amazon which is why amazon going to 37% aws growth isn't that big of a deal it's large numbers microsoft is 17 billion. >> being third in a business -- >> is okay. >> that's one. two i think a lot of the street were thinking more like 6 billion for analyzed cloud revenue and google is on an 8 billion run rate, ahead of expectations 40% growth in quote/unquote other. so 40% of the revenue comes from advertising and cloud and now you have this other unit with some of the bigger bets they have made starting to surprise to the upside. >> you own it you said. >> um-hum. >> i own it too. >> own it. >> do not own it. >> would you add >> everyone owns it. everyone in america owns it, it's one of the biggest holdings most people are in an index or an active fund tracking an index. so i think it's good for the markets overall to have a company like this where expectations were low come along and say we're not going anywhere, we're still google, still alphabet. >> it's a huge name. >> it's 3% of the s&p. >> right. >> would you add it, absolutely. >> why wo

amazon did miss on earnings, revenue was ahead. first time in five quarters that amazon did not post a record profit, taking a hit from shipping costs the thesis on amazon's print is that they really care about one thing and that is increasing gmv and getting it to people quickly. >> so the cost rose 36% on shipping that was a big jump from the 20% in recent quarters moved to one day shipping. they said they saw better customer response. revenue growth of 20% was better than expected. so investors are going to have to decide whether that top line growth was good enough 37% aws, that's the cloud revenue growth was, i guess, a little light, a little lighter than it has been first time under 40% but it still is the dominant player here in cloud. >> by far, doing $8 billion a quarter now what we know from alphabet is $8 billion a year run rate for their web services or cloud-based company that's accelerating, though. listen, the standout thisalphab the standout in the early going here, re-establishing the fact they can do above 20% whe

. >>> amazon's second quarter misses on the bottom line as its profit streak comes to an end sending shares lower in extended trade. >>> don't miss our interview with renault's ceo as the french carmaker cuts its full-year sales guidance on a degradation in demand. >>> no clear direction so far in european markets after that key announcement from the ecb about forward guidance, the introduction of quantitative easing down the road and what seems to be an almost certain rate cut in september in terms of the individual markets across europe, though, you can see the four major indices in europe are trading slightly higher. the ftse 100 in london about a fifth of a percent higher. similar story in germany we have huge amount of earnings going on at the moment the cac 40 is slightly above the flat line. in italy, where we've been hearing from the two deputy prime ministers about the future of the economy, you can see the ftse mib is in negative territory. media performing well as is telecons technology in europe bouncing slightly higher, up 0.4% the retail sector often facing some challen

big box spending continues unabated although amazon, after a big run up better than expected quarters, took a breather tonight because of heavy spending cycle i told you was going to kick in when we get the game plan. most recent mortgage application decline, low single digits housing is still pretty good the industrial economy is so weak j. powell has plenty ammo to justify cutting interest rates. if the president rolls out new tariffs on chinese import, 300 billion, one rate cut will not be enough. here's the bottom line, people arksz i've been saying, we have two economies in the country the manufacturing economy and consumer economy for the moment they are very out of step with each other. the former doing badly the latter doing well. this industrial weakness is a serious problem. it will not go away unless the fed steps on the accelerator only offset the weakness, along with the air pollution from china. >>> jeffrey in washington, jeffrey. >> caller: bouye i can't from seattle, jim home of jwn. >> that's right, i forgot, that was on the 52 week low i have to get a new address. wh

and i think it's interesting on amazon, i only worry about the top line amazon spends so much money, and i will say this, i have a lot of positions in private companies that sell consumer goods and services in america, almost in every state now, and about 30% to 40% of our sales are now on amazon, and there's good pros and cons to that, but we really want that same-day delivery. so, if there's more capex going into that, i'm very happy with my position in amazon. that's going to be a game-changer for a lot of providers. same-day is a big deal, because it lets you get an advertising spend and get a direct measure to how impactful it is in regional markets, when you can deliver the same day >> we have got another earnings report out, and it's starbucks kate rogers has the numbers. >> very strong q-3 for starbucks here, beat on every metric we'll take you through eps 78 cents adjusted compared to 72 cents the street was expecting. revenues $6.82 billion versus estimates of $6.6 billion. that's up 8% year on year. the company also says that's an all-time high for revenues global comps up

of these other businesses that amazon hasn't been successful at advertising. can amazon continue to be as innovative and go into as many businesses, guloseri rgrocery, o >> jason, am i a horse's ass don't answer that question that's a separate issue. you see where i'm going. you can look wback at media companies, conglomerates over the ages, and see that history tells you they rarely stay in tact zpl it's a fair point. there are you know all these software analysts would love for that to happen >> you bet >> aws business and we would be kickoffing the retail. the e commerce side. amazon, we think is going to try to keep their business in tact for as long as they can and remember, netflix got the first competitor walmart, early customer. big competitor, so until you start to see a netflix, a walmart say you know what, we are not doing business with this xwaen, then there's what would be the other reason? so we don't think it happens in the investable future. at least right now >> see you after the bell. >> one tiny issue with your idea these are founder control

in terms of amazon, regardless of what happens this quarter it's not the end of the amazon story. in terms of azure, look, it was the slowest growth they have had in the cloud in the last three years i believe, but that's a -- that's because of the size of the base has gotten big, so i still think they can be there and still perform. i don't think the market needs to perform to your point, but i think they will perform. alphabet is the one that i'm worried about because they have had some growth issues even though the growth expectations are very muted, below 20% versus 26% we're used to i shaved a little last week. i own a little amazon. i'd buy more if that got crushed. microsoft is still there, and i bought a little more after the quarter actually i think it's much more predictable earnings stream in microsoft and more analyzable than amazon or the others so i'm happier. >> it was a first-quarter disclosure that have slowdown that really got alphabet, right? >> yeah. >> and that's partly why or a big reason why it's been a lagard compared to its big-cap peers? does the valuatio

if amazon shows up as a partner -- >> exactly >> who knows of course, people will then worry that amazon conceivably -- and again, this is speculation i want to make that clear. amazon would fund it to no end and ruin pricing across the board. >> i think he's looking at it as a snapshot the one he says is also a winner is one starting to complicate the whole equation, at&t at&t is quietly moving up, step by step, inch by inch. >> upgrade today, right? >> yes randall stephenson is starting to look a little more visionary-ish. >> credit suisse from neutral to underperform >> to the extent they're going to do 28 billion in free cash flow, as they got into yesterday. that's been the concern. they're taking debt down from what had been 180 billion to perhaps as slows a 150 billion all of that said, i don't know >> no. >> i don't know. >> what do you mean? >> they lost 778,000 subs in directv alone in a quarter >> you're exponential. this is a good deal, at&t. and "game of thrones," what can i tell you >> "game of thrones" is over, my friend done >> he's wrong. at&t is good >> well, thanks for

has amazon destroyed retail? the head of the online second quarter results, we will debate that very question stay tuned you are watching "squawk box" right here on -- cnbc these folks don't have time to go to the post office they use stamps.com all the services of the post office only cheaper get a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again. who used expedia to book the vacation rental that led to the ride ♪ which took them to the place where they discovered that sometimes a little down time can lift you right up. ♪ flights, hotels, cars, activities, vacation rentals. expedia. everything you need to go. >>> if you look at amazon, although there are benefits to it they've destroyed the retail industry across the united states there is no question they've limited competition. their areas where they've really hurt small businesses. >> that was secretary steven mnuchin right here on "squawk box" yesterday blaming amazon for the decline of american reta

how much of that growth is driven by amazon web services. that's one part of the business that is a huge focus for people. it seems to be less about the retail operations, nmore about growth and cloud >> when you talk about profit, that's certainly the cloud that's amazon's profit engine that enabled it to make so many risky bets and go into new businesses interesting over the last few quarters, we're talking more about advertising. it's in the other revenue category it's been growing very, very quickly and taking on, you know, the duopoly that is google and facebook so it will be interesting. that's a high margin business as well we'll see what happens there we can't get away without mentioning regulatory scrutiny amazon typically plays it quiet. doesn't respond or talk a lot about this i wonder if they can get away with it this quarter with the scrutiny ramping up. >> deirdre bosa, thank you very much >>> joining us now is joel kalina, head of technology and media training over at web bush securities we heard what happened with regard to a

on the nasdaq, amazon will release its second quarter results. investors would like to focus on how the firm manages costs from the one-day shipping strategy is announced for u.s. customers joining us around the december desk is jonathan ringer. i don't want to get too much into the weeds of the one-day shipping strategy, if you're not a giant firm like amazon or alibaba, how do you survive? >> it's tough. the market is going through extraordinary change well known names are struggling to survive the things that mattered in the past, strong local position, good product, less service, they're still important. but the rules of the game have changed. now retailers need to excel at technology, at data analytics and at innovation. people like amazon and alibaba are changing the game and setting a new hurdle on those dimensions >> how much has the tech structure contributed to that, in the sense that anyone with an online presence has not been taxed the way bricks and mortar businesses have been taxed you have rental expenses, et cetera now it's part o

analysts are likely looking for clarity on how amazon could respond to regulatory scrutiny amazon is usually quiet on this front but we'll see if tomorrow it is different. back to you. >> all right deidre, thank you. >>> alphabet set to report tomorrow josh lipton here with the preview. josh. >> reporter: so, sara, alphabet is up about 9% this year but it does badly lag the market and the tech sector. street expecting q2 eps of 11.32 billion. the company is facing head quins including slowing growth and increasing regulatory threats with the doj opening the antitrust review some believe google could be in the crosshairs in part given its market share in search guys, back to you. >> thanks for that a lot of after hours moving. >> facebook has slipped as well. so it looks like it will be a bit of a test here of the notion that earnings have been good enough, we have the fed, lots of things moving in the bull's direction. very good action today. >> and regulatory pile on. >> today's record -- >> a little bit. hey, it was a soft open today, too, and there was resilience throughout the da

they didn't care about amazon. when they weren't making money but this is one that is making money which is why they don't care in other words, can they go out there and can bad stuff come out about how lax they were as far as security and how people like cambridge analytica and so forth got in there yes, you can shoot all kinds of arrows at them but when you see a company that's going from, you know, $4 a quarter in earnings to like $7 and almost $8 a quarter, come on when you have this many shares and you're talking about the numbers we're talking about here, that's why they don't care they will care about those others when they're not making money because then all of a sudden, you can turn on a dime but you can't just run away from this one because they are printing money as if they are the government itself. >> so snap, we mentioned reca ed earlier, had good earnings on its own. pete, you had unusual activity on this back in the middle of june and the stock is up big since then how much of today is about snap's

shares of google, amazon, facebook are going to pivot around that over time. joining us with some insight on what this all means for facebook and the sector, is the former u.s. assistant attorney general in charge of antitrust and fobil bear thanks for your time i appreciate it. >> good morning, big news day. >> it's huge i'm wondering where you think the locust is of regulatory -- right now, lets just start with facebook. >> well, facebook, you know, it has resolved its ftc consumer protection privacy issues, but it's obviously in the cross hairs as a successful technology platform, and which may well have engaged in anticompetitive behavior that remains to be seen. there will be an investigation out of the ftc and some point down in the road we'll get an indication about what's going on. >> bill, what happens if facebook -- i should say when facebook messes up again just this week in the past couple of days we've had this news about facebook messenger for kids and how even though it was supposed to be private and controlled by parents, people were able to ge

amazon web service would have to compete against amazon >> i'm busy getting ready for fresh -- >> you're frustrating me >> it is a complex story we'll be dealing with. >> complex i'm just -- >> i want to make sure it is right. >> this is a truly invasive action against a company that may have violated privacy, but has been a -- it is -- you don't get to be the faang for nothing. >> so, wait, their market cap absolves them of corporate responsibility >> no. look, if people -- if the customer felt that they were -- that it was a destruction of their own privacy, why are they still there? >> that's the bigger question. >> yes that's what i'm saying he's got to do the t-mobile. they already broke that. didn't they already break that that was mean. that was very mean. >> my own guy. we're a team, remember. >> i know. i'm stunned. >> thanks for that >> there is no i in team i've known that for years. >> we'll get to faber on telecom. we'll get to earnings from boeing, to caterpillar, to u.p.s., both of those stocks are going to take about half of the loss on the dow at the open. we'll talk to

amazon down 1. these are not meaningful downside moves in light of what could be otherwise ominous headlines. >> you don't believe that if the government really put pressure on amazon and said, you know, this marketplace of yours, we don't like it. or if they go to apple which is dependent on services long-term, they made that a strategic part of their strategy, if they said this app store, you have to open it up. those -- anything like that or any push in that direction i would think would have an impact >> certainly the app stores are an area of vulnerability across apple and google i think if we think through what has been the traditional framework by which the government pursued antitrust, it's been largely grounded in consumer price and choice. with the app stores, you have things that do demonstrate kind of common carrier characteristics which have been long regulated >> what is the lesson of the at&t/time warner transaction that was one transaction where most people who studied anti trust wou

we are seeing shares of these big tech companies including facebook, amazon, alphabet and apple trading lower in extended hours. the justice department announcing it will open this broad antitrust review into market leading online platforms and whether they're reducing competition, stifling innovation or otherwise harming consumers as you said, the doj is not singling out individual companies as part of this review but it's looking into search, social media and retail services online so it looks like at least it puts google, facebook and amazon in the firing line here. those companies are not commenting so far. this is just a review but it could turn into a full blown investigation. we've already seen big tech companies in the spotlight as part of that bipartisan investigation into their market power in congress. that doesn't get to the ongoing antitrust cases here in europe just last week the eu opened a formal investigation into amazon and how it collects data from merchants. we're looking at how these companies react and if there will be commentary tonight when facebook reports its e

. >>> and shares in amazon, facebook, alphabet and apple fell in after-hours trading after the u.s. department of justice opened an antitrust review into market leading online platforms the doj said it will examine whether firms are engaging in practices that reduce competition. it didn't specify which firms would be investigated, but mentioned search, social media and some retail services online. elizabeth which countries do you think would be most vulnerable to this investigative practice out of the doj this is a broad review the doj did not single out a specific name, but the sectors mentioned should give us an indication for search, it would be google, social media, facebook and retail, seems like amazon would be the culprit there that's why we're seeing the lowest stock movement in those companies because they look to be the most likely we know congress opened an antitrust investigation into those four companies, questioning those four companies specifically a broad based review, this looks to be different from what we already heard from the doj and from the ftc it looks to be

i would bet on mary dylan if the stock gets hit, buy more the company knows how to handle even amazon, people, we're seeing a return to the 1980s growth today so stop complaining, and stop talking about the fed, and let's settle in to companies that are doing real good job winning in the supermarket, the grocery store. on "mad money" disney is powering more than the movie theater box office i'm sitting down with hazbaro and a snack attack on wall street which company could come out victorious because i'm focused on the 1980s group stocks and comparing hershey and one super star is teaming one chase to help young entrepreneurs jamie diamond is getting behind the guy. he told me himself stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. moving is hard. no kidding. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online

to tim's point, the stocks had tremendous runs, at least amazon and facebook you look at amazon, into earnings now, you have to wonder, do you want to try to play it from the long side into earnings with this headline risk out there. it is interesting, quickly gene said facebook's five points out of ten which i sort of get, but you talk about stifling competition. i mean that's been -- >> amazon, that's their game. >> -- for a long, long time and it is one of the lead lines i'm reading in the doj headline. >> plus there's the political, bezos. >> no question. >> you can't think of this administration who went after at&t time warner when it was a loser there's another element here. >> yes >>> coming up, chipotle, snap, visa all on the move in after hours. their conference calls getting started. we will break down the headlines straight ahead texas instrument, the stock hitting a new high after hitting a blowout quarter. back now with two more parts of the market that are ready for take breakout. we're live from times square in new york city, much more "fast money" right after this. xfi

facebook, amazon, apple less so, google more so but less than 2%. i mean, are you surprised we're not seeing bigger declines now that the doj is looking more seriously at that. >> i wouldn't say surprised. it's understandable we get this reflex move. facebook especially, amazon certainly so it's sort of a step back. >> do investors have no fear of this >> i think dough mean't know ho quantify it. i think the things -- first of all there is a chilling effect on additional acquisitions if you thought they had to be aggressive, probably not going to happen and the bundling of products and services. amazon privileging its own, you know, its own in-house brands or something like that. google, you know, if i do a mobile search on a movie and google, google wants to give me the google rundown as opposed to some third party, imdb owned by amazon that's what i wonder about >> google wasn't mentioned in the list of names this is just additional reports but one would imagine it might be in the spotlight as well. >> for sure. >>> now, chipotle stock hitting an

amazon, alphabet, facebook we have the bulk of f.a.a.n.g. up for earnings this week and the question is, what do you have to believe about big tech to believe it's going to power higher, especially given what profit growth has been doing lately we have that coming up on "squawk alley. it's part of being human. sonoma county declared a homeless emergency in 2018. you have to know the individuals you're serving to understand their needs. working with ibm watson we can bring together data spread across dozens of departments. that gives us a fuller view of the people we serve. dear tech, dear tech, we need to look after everyone in our community. and we want to help our fellow human beings. ♪ ♪ >>> ceo of coca-cola, sarah's just getting started, right? >> correct >> interview this morning, but you have some big guests as well on the "closing bell". >> we have a lot coming up, including earnings after bell. but we'll speak with tim hockey following yesterday's earnings and the surprise news that he's going to be leaving the company in februar

they can go on to a portal and amazon will match them up. once the buyer closes, amazon home services steps in with as much as $5,000 in services with things like painting, hanging your tv and installing devices >> there are so many ways you can get low quality internet leads out there that realogy and amazon are delivering high-quality leads >> the program launches in 15 major markets today including l.a l.a., san francisco, dallas and washington, d.c. >> short interest is very high red fin is down 1.6% is its business threatened by this partnership in your view? >> absolutely. it has become a very, very competitive market they have very high-tech a platforms. realogy needed to step up its game we did ask the ceo if they expect to see the properties listed on amazon, which i got to believe will happen. he said they hadn't discussed that yet >> diana, thanks >>> coming up, jeffery epstein's deep ties to wall street insiders check out futures at this hour looking at triple digits squawk box will be right back. moving is hard. no kidding. but

guy had amazon as the bad. facebook is good so my good would actually be amazon my bad would be facebook which makes a good "fast money". here's why amazon is good. they focused on profitability over the last four or five quarters much to, i think, at times disappointment because people were finally looking at this company as a growth company that stopped growing how do you have this multiple. ultimately i do think they will start to give you north of 20% neutral growth and i think that's really the issue. when i look at facebook, despite the fact that it's been and maybe because of it's been such a great run for the stock the realities around the regulatory environment the libra coin is not a game changer for them revenue wise any time soon their expense margins continues to go through the roof that would probably be my ugly if it wasn't for google which i do think is a great company and agree with karen the problem with google right now and what makes this quarter ugly not the company and not the valuation, n

we'll hear from phobia, amazon, alphabet we're a week away from the fed's decision on rates. and then the president today is tweeting it's far more costly for the fed to cut deeper if the economy actually does in the future turn down very inexpensive in fact productive to move now the fed raised and tightened far too much and too fast. in other words, they missed it big. don't miss it again. of course now the fed blackout window is in place so we won't get a response to that, jim, before the meeting. >> look, the president is -- he wants that last hike repealed. i think that we have to -- he's obviously a lightning rod beyond belief, but it's perfectly reasonable for him to say that if only because it was wrong let's look at the substance of what he's saying our rates are much higher than everybody else that's absolutely true there is a definitive slowdown in the u.s. economy, absolutely true should our rates be this high? no so jay powell should have just said, listen, we're going to cut or cut now but he would have looked like he was panicking and had to wait a few months t

facebook, amazon, google all reporting results flex week. how to pro situation yourself ahead of the big reports a major developing story in the oil market, crude shooting higher on news iran seized two tankers in the strait of hormuz. we are watching the reaction very, very carefully karen, you are not

what that has meant to amazon's valuation. where are we in that transition, john >> i hate the innings analogy because i think everybody says early innings. it can't be early innings forever. i think we are in the middle of the game more and more the language i'm hearing sounds like what i used to hear out of hp and dell in the services business, how they were talking about big deals with p and g, how it wasn't just about selling servers, it was about taking over their data center and infrastructure. now you have mega scale cloud providers talking about that same language when it comes to cloud. transformation is just an excuse, an opportunity to drink somebody else's milkshake. that's where we are i think. >> thank you. >>> sticking with microsoft, etf spotlight, looking at etfs with large stakes in the company. what makes up these etfs. >> not only that it seems like the all-purpose core holding across a very wide group of etfs, not just technology i featured some here microsoft so big, it's more than 4% of the s&p 500. but

projects in manhattan and new york city, including the long island city development that would have housed amazon's second headquarters. look, there are a lot of good projects out there currently on the slate, but the reporting requirements that were in the original legislation were mysteriously taken out right before it passed so there will be no reporting requirements on what's being built, how it's improving employment in these areas or whether it's helping housing values or the lives of people in these distressed areas. >> stay right here let's bring in two guests to talk about opportunity zones joining us is operation hopes founder, chairman and ceo john hope bryant. he's also the founder of promise homes. and heritage foundation senior policy analyst joins us from washington john, you're here on set with us obviously you want to see a lot of this economic development, but are you concerned about the way it's being monitored >> i'm always concerned about washington, d.c. but look, as long as -- first of all, the issue about some of these projects are in neighborhoods that are aspiring. if you

what do you expect out of facebook, amazon and alphabet? >> contessa, from a high level, this is a transition quarter, which is different than the wake-up quarter that netflix had. a transition quarter means there will be headwinds. but i think that the themes are on the broader f.a.n.g. will be intact at most risk next week is going to be google in part because last quarter they had a dip in their revenue. they had four years of consistent 20% revenue growth. that dipped last quarter that's not the reason why there's a head winwind they have to be more skillful at navigating questions on what potential regulation could come. google has been largely spared of these regulations and tweaks from regulatory bodies but i think ultimately that's something that investors will weigh more heavily on. and facebook is still in that camp they have regulatory questions i would put those in the headwinds camp apple is a unique case they're the only one of the f.a.n.g. companies that have exposure to china. that's about 10% of their business and that chin

these are trillion dollar companies we're talking about. >> the growth of microsoft, amazon, google is astounding they're good innovation engines. for us, acquisitions are a thoughtful decision of where does organic need to meet inorganic. how do we continue to accelerate the pace of capability and the breadth of a product so we can continue to serve customers. we are constantly looking at both our view on splunk is control the things you can control if we serve customers effectively and enhance our official and continue with reasonable growth rates, effective growth rates, that's the piece that we can control that we're most focused on in the face of this m&a activity. >> you work with a lot of private companies. i know the likes of some cruise liners like carnival, starbucks, but what about political parties? we've seen increasingly in the uk with the brexit campaign a lot of politicians turning to big data to understand voters better and voter issues. how do you think about that and the ethics behind using data to inform campaign choices and policy choices >> going back to gdpr, it'

amazon web services. while that 63% premium sounds like a hefty price tag, considering there were other potential bidders, they paid what they had to pay to get the job done it's a little misleading it seems like ibm paid through the nose for red hat if you measure where the price tag was before the announcement. at the time, $116 stock, ibm sold out 190 we've been supporting it for years when it was in the 50s, 60, 70s, 80s red hat, even a year before, the price seems a lot more reasonable in june of last year the stock was at $177. after getting clobbered for a suboptimal quarter if you think jim white hearst like i do can turn things around -- and i did -- then it wasn't going to stay down here for long it was going to start climbing with or without jenny. if you take red hat's price over the year before's ibm's take overbid, $142, ibm only paid a 34% premium. in other words, i don't think they overpaid versus what this business was really worth. then there's the qualitative argument for years ibm had

eastern time >>> still ahead, the e-commerce winner not named amazon, but that is still saying even better times may be ahead >>> and the ceo of one of the largest pharma giants of the world speaking exclusively to us his comments, if you care about pharma and healthcare, you wl nto arhem.il . >>> welcome back let's get you up to speed on some big stock stories of the day. ibm second quarter profit beat forecasts. the margins did go up a bit, but revenue fell for the fourth straight quarter ibm continues to struggle with its shift to the cloud cloud revenue did rise 5%, but that trailed rivals like microsoft and amazon and disappointed some investors. ibm down about 1% now. >>> ebay's second quarter results top estimates. more shoppers are coming to the ebay site. the company also raising its earnings guidance for the year sending shares up more than 5% by the way, ebay's ceo, def v we on "squawk on the street" today. >>> and united rentals dropping today. second quarter profit coming in above forecast but they trimmed the top end of the guidance for the year citing historically bad weathe