>> i get apple stuff 33% off that never happens >> first world problems. >> however, that's amazon's response to. a spokesperson actually said we want to make everybody happy, but there's just such volume of orders that we don't have the capacity for delivery. so because everybody's so focused on getting the deal, they're not going to be that focused on the delivery. >> you sure are quiet over there. >> i hate cyber monday i won't buy anything on cyber monday amazon prime day is the new cyber monday >> you don't have to look buy, i you look at the deals, you'd be surprised. >> but they put you in the market with the deal, would you buy? >> an ipad i don't even need one. we have five already at the house. >> see i refuse to be sucked into the vortex of prime day. >> holier than thou. >>> tim hortons is expanding its menu to provide burgers for the first time ever. but there's a catch. these aren't real burgers. they're made from beyond meat. we need an expert to talk to us about that and we turn to our very own kate rogers >> now it's prime day. >> sully is going to be very angry. >>

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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

they include the tech behemoths, facebook, alphabet, and amazon we'll tell you what's at stake >> plus, in less than an hour, some of the biggest tech executives head to the white house to talk about how to take on huawei as the u.s. ban of that chinese tech giant remains in place >> and disney, as they were just talking, the king of the box office the lion king of the box office. live action lion king movie dominating the weekend and it

the amazon effect. the on-demand economy means it's more useful to have supplies closer to the economy where you can deliver quickly. one-day delivery will become a two-hour delivery and ultimately a report in the special report amazon is thinking, how can we get to 15-minute delivery. >> you can't do that from china. >> you can't but i guess that fine line vijay is the gap between what people are willing to pay for convenience and what they are simply willing to pay. >> this is the tension you put your finger right on it. as we move from an old model of globalization that was make it incredibly cheap, sell it at walmart for a few bucks. that was an efficient model. cut costs 1 or 2%. we're now entering a messier world of slow-balization but smarter, shorter, faster supply chains and that's going to create a lot of possibilities for companies that want to do, let's say, rapid turn around more innovation. innovation loops get faster when you're closer to the customer. >> so you look at india, for example

apparently was able to access a web application in the cloud service provider used by capital one, amazon, and steal this information and take it to social media and many different social media accounts brag about what she had found she was arrested earlier this week >> and the breach apparently took place in march of this year why are we only finding out about it now >> it apparently started in march and went through july. so there's still some things that are a little unclear, but it looks like he only recently was able to get into the information she had stolen and started bragging about on social media. that's where the law enforcement authorities caught her >> was the vulnerability in the cloud at the cloud provider, in other words, amazon web services, or was the vulnerability solely at capital one? >> capital one builds its web applications on an amazon cloud server so the vulnerability was in a firewall that was owned by capital one and managed by them. but that sat on an application on the cloud server. >> was this perpetrator working with anybody was she selling the data to russ

>> it's through amazon, through the turnkey portal itself. we did a story last year about lennar, one of the biggest homebuilders in the nation they were putting amazon products in lennar homes in their show rooms as part of this show and sell strategy amazon really trying to get into that home services and that home technology business with the builders and now with the real estate agents. >> and jason, if their goal -- and look, we talk about this a lot, how the the next battle is the battle for your living room, to be the smart home platform. guess who else wants to do that as far as i can tell, apple, google, what moves are they going to have to make in response if amazon's going aggressively into partnering with real estate services? >> amazon already has something like two-thirds market share when it comes to the voice assistant in your home, so they have a big, big lead, you know it's still early days, but with these partnerships coupled with just the consumer demand that they run through their website for all these other products, it

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

as opposed to offering a one-time toaster >> if we're now analogizing if that's a word. >> it is >> amazon prime, costco gold, and spotify to a toaster what, does that tell us about those businesses >> or our consumption. you open a bank account and you fall asleep. you never leave. >> unless they charge me a fee >> even if they charge you a fee, when was the last time you changed banks? >> the reason why is because i've always found the situation that i paid the least amount of fees on or zero fees no matter how much i have to transfer. >> do you bank-hop that much >> i don't bank-hop. i always find a product within my banking organization that allows me to have a fee-free situation. >> i had to change upon marriage and let me tell you, it took a lot of in-person long, drawn out. good luck. >> i hoped he was worth it [ laughter ] >> my wife and i both have separate >> so do we. >> separate banks. >>> topic for you. here's a new school. bitcoin has rebounded big time this year. and a new study shows just how energy intensive the crypto currency can be. cambridge researchers shows us that t

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

. >> announcer: coming up, amazon's prime day isn't just about amazon anymore how others are cashing in on the company's big day. plus, one billionaire investor says google should be federally investigated why? and dozen his role on facebook's board have anything to do with his call >>> and coffee without the coffee beans this is "the exchange" on cnbc. . they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ . >>> welcome back to "the exchange," everybody that time of year again, amazon's prime day is in full swing. it is a 48-hour discount bonanza that promises a massive number of sales and new prime members for amazon but this year, competitors are throwing their hats in the rick we will explain that with lauren thomas who is cnbc.com's retail reporter and courtney reagan welcome to both of you what's different about prime this year and why is prime so prime to amazon? >> so prime this year is longer, longer th

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

with facebook about this coin >>> next up, lady gaga is launching a new beauty line exclusively for amazon she gives retailers some serious star power as they are making a bigger move into cosmetics she said they're the right partner because it embraced self-acceptance. it will be available in september in nearly a dozen countries. >> so, it's a delicate thing all these luxury companies and even retail brands are going into partnering up with stars and saying this will sell. rihanna is partnering lmh, all going after these stars. and it's a new audience. these influencers are big with generation z if the price points are right and the product is right, fine but rihanna is now selling $200 t-shirts, $1,500 jackets that's not her audience. makeup - >> it's aspirational, though to be so rich to own that. but your parents have credit cards or kids' parents have credit cards >> i think this is good because her audience, makeup, amazon, that's a good thing. >> you know who else has credit for this is oddly kylie jenner she came out first on the scene with these kits. we talked about it making he

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.

multiple aggregators in streams of video games microsoft has talked about with google and we'll see amazon get into the space as well there's multiple different ways to play it as we move from physical to full game downloads, partway through as of now to eventually streaming. >> manufacturers adderall, people talk about drugs in sports, drugs in e sports, adderall is a big big deal right now. >> absolutely. and these are kids, little kids. so you want to make sure they're very careful, no one's getting any extra edge or advantage. it could get really bad. >> we want to thank you both of you guys michael, russell, thank you. >>> a lot more on the exchange, the faa didn't understand the automated system at the root of that 737 max crash and that's just one of the revelations in a new "new york times" article the author of that piece is going to join us live. taking a swing at boeing on its earnings call. >>> and new presidential debates kicking off tomorrow with health care front and center. taking it on thehi cn. which candidate does big pharma actually want? >>> welcome back to the exchang

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

will see what happens with apple but it seems to be setting up for the same thing with facebook and amazon. i don't know maybe the market has finally gotten too far ahead of itself so maybe we're in for the 5% pull back tony has been talking about. >> are things different from what we thought powell would say? i mean 25 basis points, ending the balance sheet run-off earlier by two months, and then sort of -- you know what's next. >> we're going to grade the fed president later on in the show that will be a lot of fun. as guy is critical of the president's statements, i am as well i have to say though, i think he's right i think the market was expecting a much more aggressive fed and the market is only going on what the fed had guided them to i think we got to a place where the fed a's pivot for most of 21 is we're no longer in that immediate. three or mowre cuts in 2019 is something firmly on the fed's shoulders. the dow is no longer under control of the fed, and maybe it is not supposed to be once again, but central bank differentials are clearly a catalyst and a driver for dollar and dol

do you think the government will be deciding any of those winners if they think about breaking off amazon web services or anything? >> i don't really worry about that i do think that the government will try to take a whack at everything here. it will be part of everybody's political campaign we heard some of it -- although tech wasn't specifically mentioned last night with the democratic candidates, there seems to be sort of a lot of anguish toward anything that is large and growing. but we depend upon innovation as the backbone of this country and we also do see every enterprise becoming a software company and looking at how they improve their digital experience with customers we do truly have a global digital transformation under way. and there are many benefactors in the enterprise software space including companies that are critical to the long term viability of every enterprise which are the cloud vendors themselves microsoft, google and amazon >> having said that, it is not just the democrats, it is the republicans at this point too who are not thrilled with big companies on any lev

we saw it with facebook recently and we saw it with amazon recently so it is logical to think we night see the same thing happen in apple tomorrow. >> the way gene set up the rest of the year in terms of the quarter, i mean september they raised the guidance as you pointed out as well, december the comps get easier this is almost a glide path to the refresh of the 5g phones next year. >> yes, well, you were talking about that yesterday okay do people give it a pass on an okay quarter if that comes up? because 5g is just around the corner. >> i don't think 5g is anywhere -- >> all right mull presidenti multiple needs to be higher. >> but if you look at what gene said, the point is a lot of analysts have a hold or sell on the stock that have to upgrade it here. of the 48 analysts that cover it, there are 25 holds or sells, the lowest number in about ten years. i think you have to see the upgrades come up here. >> is it faang >> in the extended faang. >> aa. so clearly we had a reshuffling of the faang leadership in the last two weeks if you look at what has gone on with apple and amazon,

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

$150 million thi year back over to you >> the company was unnamed yet the guy was a former employee of amazon web services, but we're not putting two and two together right now >> that's right. this clearly seems like it's still under investigation. that's according to the "wall street journal" and their reporting. we'll have to see how this unfolds. >>> on deck, is the sizzle finally coming off of red hot beyond meat? shares losing more than 10% right now. we'll tell you why next. 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. get a 4-week trial plus postage and a digital scale i had a few good tricks to help hide my bladder leak pad. like the old "tunic tug". but always discreet is less bulky. and it really protects. 'cause it turns liquid to gel. so i have nothing to hide. always discreet. >>> bp shares are higher after second quarter earnings beat forecast production is up 4%. profit coming in at 2$2.8 bil

brodin likes amazon and alphabet for now. much more "mad money" ahead. i'm sitting down with the ceo to find it and i'm on the grind to help your portfolio and all your calls of rapid fire in tonight's edition of the lightning round so stay with cramer. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu. >>> you know me, i'm always telling you to have gold exposure if insurance against economic turmoil or inflation. in 2019 gold caught fire with the preci

i'm not certain amazon proof is one of them. i'll go to starbucks you're talking about a company with crazy valuations just as goldman initiated with a buy, you had other people downgrade the name as well. you're coming in a lot of these stocks valuations matter one that stands out to me and i worked there a day. >> shake shack. >> valuation through the roof yet their growth is pretty outstanding. so you have to ask yourself does shake shack make sense is it in the area that chipotle was a year or so ago i say yes. >> i guess embedded in this notion this is amazon proof is should these stocks demand a higher valuation at this point should we say fine i'm going to pay up for that because people need their coffee, they're not getting it delivered by amazon >> there was a couple other things underlying as well. the piece was a lengthy piece, maybe that's what took so long, i didn't get through the whole thing. some things they point out we've seen pressure on wages they're saying that's good who are the customers of these limited s

amazon was the fastest of the other ones and then you can go down the list, microsoft, 1,400 delays, starbucks, over 1,500 days, and then google, public in 04, 29,608 delaays. investors have front loaded this vast opportunity you can't look at any other stocks and say beyond meat's ultimate market opportunity is bigger and less appreciated at the ipo. i don't believe anyway it shows how high the bar is. >> i don't want to offset that extraordinary statistic for beyond meat but was it fair to say it was the smallest of all these companies when it ipo'd. >> i believe it would have been the smallest, although starbucks came public at a relatively modest valuation, and it's very true that microsoft was already a giant great company when it came public, google was highly hyped. you could make the argument that at the ipo price, beyond meat was completely depressed relative to its opportunity in terms of valuation, but nonetheless, 800% in three months is a pretty big helping no matter what. >> go get some lunch, mike, we'll see you in just a bit. also small float is that healthy or unheal

i got into amazon which you and i talked about friday, bought it at 19.29, not looking good today. out of the fangs, i'm okay with it there's other places in technology that you could be in 2019 and that's done well for me so far so when i look at apple, quality company, i'm sure it will do fine but i did what jim advises not to do, i traded it, successfully for the first time in a while >> hedge fund but i have to tell you, ubs did a piece, ubs evidence lab, we make jokes about that but we couldn't >> csi action. >> exactly what i think of sentiment with only 19% bullish on apple, down from 30%. it does feel like that apple is the fang that people aren't into at 16 1/2 times shares i don't like to run up ahead because that puts a lot of pressure on tim cook >> it goes back to positions we saw that in facebook's earnings in terms of the stock reaction afterwards. we call that in alphabet's earnings out of favor, going to earnings bam with a great report and the stock popped and is holding on to gains for the most part >> right the danger has been just as joe has said and josh, when

know, based on their pedigree, they have, let's bo honest, they have built a successful company >> amazon, google, and facebook money is probably going to factor into this somehow or people will expect it to. because phones are an area where all three of these megacompanies have failed to some degree facebook, phone, didn't really happen amazon fire phone went nowhere google has only got a tiny market share with its phone. do you expect them to kick in to help dish or whomever else to actually fund the marketing for this network >> well, i think they should i think if you're smart, you would come in and say, listen, here's a player that needs help. let us come in and let's be able to help them but they've got their own issues with who they're dealing with, so they'll make sure they're careful when it comes to the doj. these guys do like to control things they're not good at minority shareholders they like to control and own things i think that's one of the dilemmas i like to face, you're now working with dish as a partner as opposed to owning and operating it >> peter adderton, thanks for

so, amazon would be king kind of like kipling. >> the bull case you draw on amazon, downgrade at u.p.s. today, to hold on challenging macro, capex climbing. some of the charts over the weekend from deutsch looking at global trade with an overlay of fedex three months in advance is not encouraging. >> no, but fedex turned out to be quite different from -- fedex -- u.p.s. will tell you this -- fedex has the big capex spend cycle ahead of them. they think they've already spent the money, and they don't need to do any more and i'm very encouraged. i thought the u.p.s. quarter was fantastic. you want to make a valuation call, that's fine. this market doesn't like valuation calls. that's like downgrading starbucks at $89. >> i would think you'd applaud some fiscal discipline, right, on your target >> well -- >> these stocks are blowing through analyst targets. >> u.p.s. is abney's terrific. one of the reasons i love abney is he's from mississippi and i met fletcher cox, the great, you know, he really is the sack king for the eagles they're friends. and i saw fletcher cox on friday with the e

it's sad for long island city that the amazon deal fell through. we would love to have them there. the reason i wrote the piece is there was a lot of depression, dejected folks saying tech had top ticked in new york that is not the case but building start-ups is a long game and it takes five, six, ten years even if we want to start now, we have to do it the old-fashioned way investing in companies there >> was it a mistake to offer the tax incentives to amazon >> not at all. it was a public partnership that fell through for sad reasons >> you think we will do it again? >> sure. >> is that where the focus should be? >> i think new york made an intention al decision to make itself into a tech hub. we should be using private partnerships and government money. we have 9,000, maybe 20,000, start-ups here in new york when i was a kid and the yankees started winning world series, we grew our own players and supplemented with folks from the outside. >> what does that look like? everybody is happy to sit on this island. this is a popular place to be. nobody is going to brooklyn. some are, b

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

can it continue to fund all these expensive forays that amazon is doing? we know one day shipping is going to cost more than that $800 million initially estimated but as the cfo said they've been down this road before and so have investors which is maybe why you're seeing it only down 2% >> earlier today was on pace for the best session in a few years for alphabet and constant currency website growth up 150 basis points sequentially it's the third largest going back four years. a week where we've heard reacceleration, best acceleration a number of years for several companies. >> and we did get that $8 billion annualized runway on google cloud business and wondered if you would get more granularity with thomas coming in from oracle with a new team in place reaching out. talked to him a couple of times. now we're starting to get metrics which will be important. >> some metrics. it's amazing we don't know if or how profitable google's cloud division is when we do have a lot of transparency into amazon's and more microsoft. josh lipton spoke with the cfo after

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 spent more on shipping to ramp up the amazon prime service. the first time in two years that the company has missed earnings expectations still, stock is only off by about 1.5% 19.44 is the last tick >>> google parent alphabet beating estimates on the top and bottom lines for the latest earnings report. that's giving the stock a big boost. it had continuing dominance of internet search and that stock is up by 8.2%. you heard what mark mahaney said here washington doesn't matter what comes into this. it's additional taxes they have to pay frankly, that's what the stock is reflecting. many of these stocks are reflecting that. they don't think -- >> the fine is now a tax >> where does it go though >> the money the tax? >> well, actually, i don't really know where taxes go either but the fines -- all these fines, where do they go? does it ever do any good >> they do a couple things they oftentimes pay for some of the enforcement action -- >> here's $5 billionto do an investigation -- >> if you have a department of justice, you have to pay these la

so amazon was important. facebook to me, i was looking at intel. i'm always focused on the semis in general they're very much global -- truly global players they are often forward indicators of global growth. they sell to all countries so for me seeing the improvement outlook from some of the semis it was so negative for most of this year. finally seeing some positive news come out of the semiindustrsemiendu industry they have become a proxy for u.s./china trade talks and trade relations. the semiconductor etf is already back to all-time highs off those. >> yes >> you spoke about looking forward. are there earnings reports coming up in the next week or two that you think you will be hyper focused on because it could provide more of that thesis on global growth or the health of the global economy >> finishing up the big industrials coming through next week and i would say facebook being another one that will be a big one. and though google had a good report, i'm still concerned about the regulatory overhang that they have any of those companies, how

. >>> 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

deidre. >> melissa, put simply amazon is spending more and earning less but it is amazon so it is a return to old days of growth over profit. one day shipping costing more than the company initially estimated. >> it does create a shock to the system we're working through that now, and we expect we will be working through that for a number of quarters but when the dust settles we will, you know, regain our cost efficiency over time. >> he added that the response to one-day shipping has been positive and volume has picked up also on the positive side, we did see top-line revenue growth pick up to the 20% year over year level some headwinds cloeing growth in cloud computing, facing more competition from microsoft and google remember, key is the race with microsoft for the $10 billion government jedi cloud contract e market expects them to have 9% of the u.s. ad market at the end of the year. on the regular torr regulatory, surprise here. they have a longstanding policy of not commenting on regulatory matters. when pressed during the media call he said that amazon's guidance does not include a

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