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

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.

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

it is any second for amazon and alphabet. we'll bring you those numbers that may move the markets tomorrow as soon as they cross the tape here. good to be with you. i'm connell mcshane. lauren: i'm lauren simonetti in for melissa francis. this is "after the bell." the

authorities are saying that most recently, she worked at amazon web services and as they look into the allegations that she's the one who single-handedly ripped off all of this information, we will look at the credit card issuers elsewhere and see if there is any kind of possible, you know, halo effect, negative halo effect. not really here. we do have mastercard down three quarters of a percent. amex down half a percent. visa lower by 1%. >>> okay. so as we watch hour by hour, this does matter. now it's 23 hours away. we will finally find out just how much the federal reserve is set to cut rates. notice i didn't say whether. they are going to cut by a quarter point. that is what everybody thinks. one financial firm is already raising its outlook on stocks because it feels that this will be the catalyst for stocks. goldman sachs upping its 2019 year end price target for the s&p by 3% to 3,100. currently, we at the moment for the s&p are at 3,013 so we are really not too far off. goldman also set a 3,400 price target for the s&p for the end of 2020. that's another 10% rise from current

top executives from google, amazon, apple and facebook are about to testify. it's one of at least -- it's been a crazy, crazy week already. four hearings scheduled on the hill this week involving big tech. are we at a tipping point for the stocks? a house judiciary aide telling hillary vaughn today's hearing was decidedly not part of an effort to start a critical investigation into any of these tech companies. but the aide did blame a lack of bipartisan consensus, not a lack of desire, to do it. hillary has been following all the developments, reporting the story from on the ground in capitol hill. what is your sense that the mood there, as this is about to begin, do big tech companies think that it's the start of a critical investigation or more hammering on their businesses? reporter: certainly they have to make that case, that they do not pose a threat to competition and that they need to defend their dominance in front of lawmakers on the house judiciary committee antitrust panel today. but we did get a quote from ranking member doug collins, who does say

powering the gains today are robust earnings from tech titan alphabet owner google and titanner but amazon is the one tech giant that is lagging today and we'll discuss more later on in the program with our all-star tech panel so let's check stocks for the week. the nasdac winning the race as you see it there, followed up by the s&p 500 and investors, well speaking of earnings, devouring mcdonald's today pushing the stock up to a new record high. the fast food giants reported a same-store sales number that beat for its recent quarter by checking more diners with upgraded stores and new promotions as well and also hitting a record high today, starbucks, yes, the stock getting a caffeine buzz as the third quarter results beat in the biggest same-store sales growth in three years. the food and beverage chain also raising its fiscal 2019 profit forecast, as an employee anded lineup of offerings boost the gains of foot traffic in the u.s. and also in china. but let's get to t-mobile and sprint both stocks hitting new highs on the news, finally, the doj, the department of justice, has approved t

as i said, amazon up $8.40 to $2,019. amazon not set to report earnings until later next week. can't wait to see that. let's get to citigroup. citigroup kicked off the big bank names, second quarter earnings season this morning before the bell. the bank reported better than expected earnings and revenue for last quarter. now, you can see the stock is responding at the moment positively, up higher, but there was some concern that the fact that it might have a little trouble with some of the margins and trading business might ding other banks. speaking of other banks, 25 other financial institutio, jpmorgan chase, goldman sachs, wells fargo, all set to report this week along with tech names like ibm, microsoft, and netflix. we're going to be sweating it out here on "the claman countdown" but 56 s&p 500 names are set to report this week. 80 s&p companies overall have warned, though, that their second quarter financial results will be weaker than initially expected. this is hitting companies from alphabet google and apple to pfizer and adobe, micron and netflix also on the list. wi

the second one would be amazon. the reason is that if you look at the other fang stocks, google and facebook are going to have regulatory overhang here and then you have netflix which is a whole separate issue around competition. so i would put a distant second at amazon. liz: amazon, distant second. gene, great to see you. thank you so much. >> thank you, liz. liz: gene munster. what's the next musk moonshot? we have a major hint for you. closing bell ringing in 36 minutes. the eccentric billionaire elon musk rolling out his plan to connect your brain to something he calls neweurolink? what is that? find out next on "the claman countdown." >> if someone has broken their neck, broken their spine, we can solve that with a chip. this is something that i think most people don't quite understand yet. from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. my body is truly powerful.

i know longer own amazon. liz: no longer own amazon you sold those shares we'll get to why but first to pace book. tell me what you thought of this fine. $5 billion. you know, it was interesting to see when you have to come out and announce it the gentleman who was in charge said that the $5 billion fine equals 9% of revenue. now facebook is about 50 billion in revenue. was that enough? i heard people say it was a slap on the wrist and others say well that'll cause a mark. >> yeah i'm in the camp of the latter that it causes a mark. 9% of revenues for most people is the difference between growth for the year and no growth. obviously facebook has had robust growth, but trust me, it got their attention, but i wouldn't be surprised if there is one, it is much much bigger. liz: did it serve as an important deterrent in any way, shape, or form? >> i think it did. i think it is one of the biggest fines ever given despite the fact they do have 50 billion of revenue and the fact that mark zuckerberg is personally acco

amazon. the stock jumping 18.5% right now in the final hour. amazon, better by a quarter of a percent, standing at -- guys, we are $10 away from $2,000 a share for amazon. we stand at $1990, a single share. the new program is called turnkey. it will direct home buyers searching for an agent on amazon straight to realogy. i'm thinking eyeballs on ads, then they will get up to $5,000 of smart home devices and free home setup services from the online retail giant. there is some fine print in all of this but realogy, while down 77% over the past year, is trying to catch a bid here after shrinking residential brokerage margins and slowdown in housing market. that of course has hurt the stock. >>> investors are switching off netflix, not by much, just a percent, but the streaming giant is on track for its longest losing streak in five years. what are we talking about? nine days of losses in a row. the company's quarterly subscriber figures did fall short of analyst targets last week when they repor

amazon is not far behind. thanks very much. more to come in a moment. qualcomm offers a downbeat sales forecast. details next. this is bloomberg. ♪ >> trade talks will resume in september after meetings in shanghai ended with no progress. the two sides discussed purchases of u.s. farm produce, ip rights and nontariff barriers. the white house said the talks were constructive and washington will host the next round. the people's daily newspaper rejected president trump's description of ripoff china. president trump tweeted that sharon powell has let the country down. he posted after the fed lowered by one quarter-point despite the president demanding a bigger cut. reduction is the first in more than a decade. there were two dissenters on the board. out against making any cuts. >> is intended to ensure against to help offset the effects these factors are having on the economy and to promote faster return of inflation on our 2% objective. >> a survey says u.s. hiring accelerated in july for a second month, undermining a strong job market that is driving

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

asked the governor how he planned to bring amazon and others to the state. income tax and a very low business taxes. we have a tax structure that is randomly to businesses. soundly managed. companies know that so they sort i look athan incentive packages that states have to offer. we certainly deal with companies in that way. we incentivize companies to come there. they look at workforce development and we have done a lot in our state to create workers for companies that are coming there. particularly tech companies and technology-based companies. our administration has done something called a future workforce initiative that is establishing the kinds of education curriculum and pathways that will create the workers for the future. a presence has there. what in the future do you think you can offer tech companies? you are obviously making the case here in san francisco this week to put a bet on tennessee. >> the biggest thing we can do is show to them our commitment for workforce. jobs requirelated a workforce of the future. they require an education system

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

charles: in an amazon world where everything is cheap, everything gets lower and lower, maybe we're in a situation where the focus is not on what we were focused on when ronald reagan came into office? >> i think we would at least try to remember some things. if this is an environment which you have to cut rates when we just saw in some revised wage number that were out yesterday, all of you were reporting on it, 5% clip in 2018. 4.7% revised in 2017. wages and salaries taken together running at a 5 1/2% clip in june. the savings rate at 8.1%. i'm just saying i'm looking at all this and i'm saying, if that is an economy in need after little goosing on the part of the federal reserve, man, that is not the economy that i remember in the past that would require it. charles: maria, what powell is saying what he has said he wants to preserve those numbers neil is talking about. why be the fireman, why let this thing fall apart to try to put it back together if they can take steps, a, lou, to compete in the global economy against other central banks? and b, keep the prosperity going? on janu

it's oil, nat gas, amazon, right, cheaper products, you know, robots. so there's a lot of forces in the u.s. economy and we know that the trade fight is tamping down business investment. i don't see weakening the dollar improving business investment. i think the fear is that you raise rates, to dagen's point, you will have more long-term capital management. neil: it will continue the froth. >> i think you're right. >> that trade fight probably has a lot to do with what will be happening today and what will continue to happen. all the indications we have from the talks in shanghai is everybody expected, is we are really going nowhere fast. i don't think anybody expects us to be going anywhere fast. neil: the longer this is unresolved, the more rates would probably come down. >> but i think there's motivation on both sides. everybody keeps talking about how china's trying to put this off until after the election. i have been seeing, i keep getting indications from the president himself in his tweets and comments that he's maybe motivated to do the same, t

in pink is apple, and orange amazon, and white soft. last year apple was in the $1 trillion market cap club all by itself. right now trying to get back up there and join microsoft. it will be interesting to see whether investors bid up the shares as the summer goes on. vonnie: abigail, thank you for that. the u.s. and china wrapped up a new round of trade talks in shanghai. the white house called the session projective -- the session productive. still with us, stephen blitz, ts lombard chief u.s. economist. how are you modeling it into your forecasts? steven: basically, we think there's obviously a lot of politics involved in this. there's a lot of midwestern farmers getting hurt by what's going on. i think it becomes kind of like an arms troops. i don't -- arms truce. i don't think they could possibly get to a full agreement. i think they recognize that. i always thought they would just do agreements in steps. let's agree on what we agree on, but we can't agree on, negotiate that, and have the existential threat of tariffs weighing on

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she used to work for amazon web services. a tipster eventually contacted capital one, said you know there's someone on the internet right now that's bragging they have done this. turned it over to the fbi. the fbi was able to very quickly find the suspect's address. boom. there you have it. she's now facing charges of computer fraud and abuse and could spend five years in prison. stuart: i don't think the security of the cloud is at stake here. ashley: no. stuart: what's at stake is your employees. ashley: yes. stuart: if you've got one disgruntled employee who is doing this for whatever reason, look at the damage. 106 million people. susan: they put a number to it already, capital one says it will cost $100 million to $150 million in terms of cost. compare that to equifax, over $500 million. much broader, by the way, number of customers impacted there. stuart: okay. >> 200 years ago -- they took down one employee took down a 200-year-old bank. stuart: how do you find the bad apple before you put them to work? the ten-year tr

to cut out a waste, amazon is putting vendors on a cardboard diet. the move will also reduce shipping costs, according to emmett at amazon it could reduce packing volume by up to 80 percent. this means no more giant box when you're getting a small product. more compact packaging should be easier to open. amazon will add a two dollar surcharge to products have failed to comply. >>> in an effort to go green one of the world biggest hotel chains is ditching the many toiletries. the decision affects intercontinental troops which owns how the income at crowne plaza. they will get rid of miniature sized plastic bottles of shampoo, conditioner, and bath gel. they will be replaced with bulk size toiletries into rooms by 2021. intercontinental says it uses about 200 million travel size toiletries a year. stratfor get saving up for a house or a car. >> millennials are so squeezed for cash they're having to save up there pennies for love. a new survey found that 30 percent of millennials say they are just too poor to see a relationship with student debt and hig

the hacker is a former employee of amazon's cloud computing division, which is used by capital one. she faces five years in prison and a quarter million dollar fine. >> it's not as though this a infinitely sophisticated person. she gave herself away online. i think we need to see more serious penalties for companies that mishandle your information or fail to protect it adequately. that's the bottom line. >> experts recommend freezing your credit profile until you temporarily unfreeze to get a loan but a car or a home or a credit card, you can do that temporarily. in a statement, call tall one said based on our analysis we believe it is unlikely the information was used for fraud or disseminated by this individual however we will continue to investigate. >>> the sale of levis plaza in san francisco for more than $800 million makes it one of the largest deals in city history. james town bought the property, 930,000 square feet of space and spans 9 buildings near the embarcadero. levis has been headquartered in the property since it opened. the lease was set to expire in 2022. >>> delt

we've managed a series of all-time highs this year, with amazon and facebook and netflix, without apple hitting an all-time high. if you think of all of these bellwether stocks that have carried the market at various points, those still have some participation to do, some further highs to push to. david: whether it is apple or another stock, is the market prepared for a long, drawnout conflict with china? it's been a wild now, and it looks like it will go through the election. vincent: there are a sense that is earnings continue, we haven't seen it bleed into trade talks. of the fx in terms market, the stock market, is what will trump do after a 25 basis point fed cut? i would not be long anything going into the data friday. it would not surprise me whatsoever if he asked the treasury to be in the fx market. david: what would be the point of that? treasury officials don't have enough money to make a big difference. vincent: it is simply just to shake the tree. and central banks never really move the market, just a strange feeling i have that he may do something which no other president

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

but just in the way the story is developing, she had worked for amazon cloud services for a number of years. she's clearly mentally having a lot of battles. one thing that let the fbi find her home address was she had shared a vet bill, i guess her cat was sick, so it had her home address, her real name and that's one of the reasons they were able to find her and arrest her. maria: wow, incredible story. >> it just shows somebody very much on the fringe but who wanted some sort of acceptance if you like from her peer group. but we know with equifax, for example, which went through a similar hack, they paid $700 million to settle a lawsuit, i should mention a class action lawsuit was filed yesterday in dc, someone in connecticut who has been affected has started to gather the troops. >> you know, maria, what is chilling in this case, a lot of hacks we think of foreign agents or people overseas. it's a reminder that for big companies, you've got all kinds of developedders coming in and out, -- vendors coming in and out, and a determined hacker who has an inside track, it's very, very ha

she is a former worker at amazon's cloud decision. the bank tells fox news that every current and previous capital one customer and anyone who has applied for a credit card at capital one could also be affected by the hack. cheryl: a senate panel is holding a hearing this morning on the federal aviation administration, particularly oversight of the agency. the senate appropriations committee expected to discuss the future of the boeing 737 max. the max has been grounded since march after crashes that killed nearly 350 people. boeing last week posted its largest ever quarterly loss. lauren: tariffs are mentioned in many of the conference calls held by these major corporations reporting their quarterly results. in fact, treasury secretary steve mnuchin and robert lighthizer are in shanghai, china right now for day two of talks with top chinese officials as president trump is ratcheting up pressure on china to quickly reach a deal. cheryl: jessica stonies at the white house with more. good morning, jessica. >> reporter: lauren and cheryl

now, to cut down on the waits, amazon is putting vendors on a cardboard diet of sorts. the move will also reduce shipping costs, and he could reduce package volume by up to 80%. that means no more giant box just to ship a small product. the more compact packaging should also be easier to open. amazon will add a $2 surcharge to products that fail to comply. >>> a group of will watchers of the coast of southern california got caught in the middle of a dramatic showdown. this drone video shows the moment and doesn't organize attacked a pod of dolphins. it happened last night in orange county. the killer whales prayed on the dolphins just feet from people on board that boat, at one point separating a mom and a baby from the pack. >> the passengers got to see this up close and personal. some of them, and might've been distressing for sure. that is what happens in the open ocean. animosity to eat to survive. >> the orchids are believed to be eastern tropical pacific killer whales, who usually live in mexico and costa rica. >>> weather around got a much cooler over the past co

. >> companies like amazon that made billions in profits did not pay one nickel in federal income tax. >> and one nickel is a lot. you can take a street car and see a talky -- see a talky and still have enough left over for an egg cream at woolworth's. >> former colorado governor hickenlooper laid out the stakes of this election in no uncertain terms. >> i was out of work for two whole years. >> please, i need this job. i am -- i am in deep. on the subject of health care john delaney tried to speak to his experience on the trail. >> i've been going around rural america and ask rural hospital administrators one question -- >> do you know who i am? >> probably do now that elizabeth warren dumped on him. >> i know. thanks for joining us. i'm christine romans. >> i'm boris sanchez. that's it for "early start." early "new day" starts right now. >>> there was time to stop worrying about what the republicans will say. >> let's just stand up for the right policy, go out there and defend it. >> democrats win when we run on real solutions, not impossible promises. >> we made it to have a campai

sure it is absurd to say you tax google apple facebook and amazon now we tax your wines is completely morani we tax the technology companies because they reap enormous profits in our country millions of billions of euros and there's no reason for them not to pay taxes why in exports are a completely different thing. it is unclear how much the us tax on wind will actually cost the french economy if it ever came to that experts say it's mostly makers of cheaper wines that might feel the pinch as their fathers won't find buyers in the us as for the country's best vintages they should be fine. but usually j.t. she feels for the united states is the biggest export market for the french outside the e.u. but only in terms of value not volume that means the american strength french wine that is expensive and i'm sure an american who buys a bottle for $100.00 or $150.00 won't think twice before buying a bottle price at $180.00 or $200.00. for the others there's always a decent california fun dell to toast with. and that is your business update here on d w for me and the team and thanks for kee

it's put there for the benefit, "the washington post" of amazon. and i think it's a disgrace. if they actually said it, i didn't read it. if they said that mitch mcconnell is an asset of russia, they ought to be ashamed of themselves, and they ought to apologize. well, i think right now, i am watching. i think right now it will be sleepy joe. i think. across the limp line. what i think doesn't mean anything. i know the other people. i know him. i think it's off his game by a lot. but i think personally, he endorsed sleepy joe. no, i think i'm helping myself because i'm pointing out the tremendous corruption that's taken place in baltimore and other democratic-run cities. all you have to do is look at past mayors in baltimore see what happens. no, i think i'm helping myself. and i'll tell you what, the white house and myself and letters an e-mails an phone calls have received more phone calls than i any on any other subject of people from baltimore and other cities corruptly run by democrats thanking me for getting involved. those people are living in hell in baltimore. they're

companies like amazon and billionaires not paying one nickel in federal income tax and 500,000 people sleeping on the street. what we need is a political revolution that tells these billionaire corporate america that they are americans, they'll participate in ow society but they have got to start paying their fair share of taxes. >> miss williamson, you're proposing to make college free for all qualified students. should the government pay for wealthier students to go to college? >> i think policies should be based on the idea that anything we do to help people thrive is a stimulation to our economy. so if a few people take advantage, there are four or five that are going to take the money they have in the bank -- when you look at this $1.5 trillion debt -- this is why i okay with bernie. we have a $2 trillion tax cut where it ges to the very richest among us. that does not stimulate the econam. think of all the young people that will be able to start their business. the best thing you can do is to get rid of this debt. this is not just about a planx it's about a philosophy of governi

all of it stored on amazon web services. a former amazon employee has been charged. but first to our top story, apple shares spiking after hours after reporting third-quarter results. revenue topped analyst estimates. apple saying it remains optimistic about potential sales of new iphone models set to hit the market in the fall. for more on apple earnings as they are unfolding, we are joined by max chafkin from bloomberg businessweek, and we also have the sin of this trust portfolio manager with as. walk me through this. iphone sales missed estimates, services missed estimates, the forecast beat. what about all of these other indicators? >> it is an interesting report. if you would have told me they would have missed on both services and iphone revenue, i would have said, they were not going to beat on top and bottom line. wearables was a big plus. they also used about $21 billion of cash on the quarter to repurchase shares and increase the dividend. they did some other things to kind of help along which initially you would have thought would have been a tough quarte

so, i think it's a horrible thing which is just a paper for the benefit of amazon. the washington post is fake news just like the new york times is fake news. it's put there for the benefit the washington post of amazon , that is my opinion and i think , it's a disgrace. and if we actually said that i didn't read it. if we actually said that mitch mcconnell is an asset of russia they ought to be ashamed of themselves and they ought to apologize. reporter: [inaudible] pres. trump: well i think right now it would be sleepy joe. i think. i feel he will limbo cross the line. that is what i think. what i think doesn't mean anything. but i know the other people, i know him, i think he is off his game by a lot. but i think personally, i think it's going to be sleepy joe. reporter: [inaudible] pres. trump: no, i think i'm helping myself because i'm pointing out the tremendous corruption that's taken place in baltimore and other democratic run cities. all you have to do is look at the past mayors in baltimore and see what happened. i think i'm helping myself and i will tell

she was identified by amazon as one of its former cloud service employees. capital one says about six bit of were also implicated in the breach. chase has signed a five-year contract with a.i. marketing company which does machine learning to create customized ad campaigns and communication strategy. it follows a pilot program where j.p. morgan chase saw its click through rate on ads just 450% with the robots creative reading the way. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. of play come across assets midday, getting into the japanese lunch break let us look at the global muck removers. we are down across equity markets -- global macro movers. down.ong is 1.5% yvonne is pointing down, every single stock is down here in hong kong. if you are hoping that it is bad weather that is delaying the release of gdp numbers, sorry to disappoint you, hong kong has said that that mother will not affect the release of gdp numbers. all of this co

companies like amazon and billionaires out there do not pay one nickel in federal income tax. and we have 500,000 people sleeping on the street. what we need is a political revolution. that tells the billionaire ands corporate america they are americans. they'll participate in the society. they have got to start paying their fair share of taxes. period. >> thank you senator. williamson? you are proposing to make college free for all qualified students. should the government pay for children from wealthier families to go to college? >> i think all domestic and international policy should be based on the idea that anything we do to help people thrive is a stimulation to our economy. that's how you stimulate the economy. so if a few people take advantage four or five people who were going to take the money they have in the bank, when you look at this $1.5 trillion college debt. swap it. we had a $2 trillion tax cut. 83 cents of every dollar goes to the richest among us that doesn't stimulate the economy. if we get rid of this college debt, think of all the young people who have t