next up is amazon. they have big brother and alexa and wiped out small business and have the power to steer their own goods but amazon also has friends. they have distribution centers all over the country that gives them influence and their platform is beloved by everyone who uses it and ceo jeff bezos owns "the washington post. that's one way to ensure you get publicity but he has not influenced the editorial if you're worried about corporate concentration, that's rifling. even though amazon spent years krau crushing smaller retailers, this is in the best shape it made a brilliant settlement nobody is talking about to appease sellers, the people that are on shopify like i talked about at the top of the show amazon knows how to play the game last but not least, there is facebook man, they sure didn't buy much with that $5 billion settlement. it's out of the frying pan and in the fire with them. the treasury department is not thrilled with the plan to launch the currency, lib ra if they bring in counsel,

amazon's prime event we don't know how the full thing wrapped up it was the longest by 12 hours amazon has told us so far that worldwide sellers, predominantly small and medium sized businesses saw the biggest 24 hours sale day in amazon's history. amazon's first 24 hours of prime day sales were 79% higher than last year according to e-receipts adobe analytics says they saw a 64% increase in sales versus an average monday in july compared to last year's 54% growth on prime day. even the niche retailers saw a 30% increase on online sales based on an analysis of pain views, the echo show 5, fire tv stick with alexa remote and kindle paper weight were the top sellers. it makes sense because those were drastically discounted on amazon's sales day events. walmart during prime day, the page views there indicat instapot, the apple watch 3, the vizio 54 inch 4k tv were the big sellers. when you have a big peak and a swell of packages coming through the system at the same time, deliveries could be slower >> you need to tell sorkin about the exchange we did. >> the shoe store. >> you know about

stocks, mostly amazon. so this is a play, just so viewers know, this is really a play on amazon >> it is it is. when you take the three products, you multiply the holding of amazon by three so you get a significant exposure to that stock which in the short-term has done quite well >> that is want. what is need >> need is consumer staples. >> toothpaste? >> exactly >> paper towels. >> that defensive play like cycle performer play. it's the consumer is going up sort of holding back but they'll keep buying toilet paper and toothpaste so you have the full staples a good balance sheets, good net income and dividends they don't pop as much lower beta to the market >> we have netflix earnings out today. netflix is a name everybody knows. a lot of people out there may have invested in it. what products do you have that would highlight a name like a netflix? if you're going big -- these stocks can move big. rolling the dice in a big way, is there a way to play netflix >> 3x communications is tak, you get exposure to

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

amazon is up on that list. ultimately the general sense is how the regulatory scrutiny will play out on capitol hill and those agencies looking closely at these companies. >>> you mentioned the ftc and facebook, there could be a mu i multibillion dollar fine coming up there what's the latest? >> we're been waiting for this fine they disclosed in their earnings report last quarter they expected a fine of up to $5 billion from the ftc related to that consent decree facebook reached in 22001 00 0 11 facebook is reporting earnings tomorrow after the bell, it would be surprising if we didn't hear something before that we know that $5 billion fine ha been pretty much baked into the expectations for facebook. the question is what kind of fin fines or further scrutiny could it face now and going forward. >> elizabeth schulze live in london with her take on all things technology. appreciate it. thanks for playing rapid fire today. let's find out what else will be on your radar today. time for the top trending stories. w

you get overwhelmed with it in just one streaming service netflix, amazon prime video. you've got now at&t warner media that will launch a streaming service and all of these cost money. if it's a stand alone, $16, $17 which is what at&t says it is going to cost. big deal but you try to bundle those altogether and try to figure out content. is this a scenario where those who are late to the party miss out entirely if you missed being on cable in the '90s >> well, you know, i don't know if that's the case but what i do know is that there are several content companies out there that could be very attractive to somebody who want to bundle or somebody that want to add to their content. >> like what >> well, there's discovery out there which is, great assets you deal with john malone to get it or lion's gate and that kind of thing also amc which is a very attractive asset in terms of content creation and audience. also, i think there's an opportunity for what i call targeted content companies to find a place and build a brand and ultimately may be acquired we have one within

a lot of retailers get prepared to hone in on amazon's prime event next week. back over to you >> bertha, thank you >>> millennial traders are breaking from the rest of the market for the first time in two years. t.d. ameritrade is seeing a divergence between millennials and the general public, according to their june imx survey joining us now is chief market strategist at t.d. ameritrade. so let's talk about that age gap differential >> for the first time since november of 2016, our clients were net sellers of things not just equities but overall. >> by a big margin >> well, yeah, a pretty good margin, particularly in equities even more so than fixed income i think one of the interesting things about this is it shows that although, you know, as the market is at all-time highs, at the end of the day it was a good first half of the year for retail traders i think they've gotten to a point where they're like, okay, there is so much on the horizon. maybe we should take some risk off the table overall. i think it's interesting they didn't go equities right into fix

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

is it going to be a net win for amazon >> you know, we think it will be obviously amazon is showcasing not only great deals, they're showcasing their music they've been spending all week showcasing whole foods they've built a big infrastructure around this prime day, and we think it will be very successful for them. >> is there any indication that this drives new consumer spending, ed, or simply, well, i need a pair of jeans in a month so i might as well get it now because it's on sale and it's kind of a zero sum game. >> we think it does drive new business it creates that spontaneity, that need to buy now and people obviously tend to buy stuff they don't need. ultimately, you know, this is a very quiet time and we think this drives incremental sales across all of retail. >> you've got a $2,100 target on amazon obviously we're optimistic does this matter for amazon? do these 48 hours or so matter to the stock, or is it just part of a longer term, more macro trend? >> i think it's more of a big macro trend, but i think the big fly away with amazon is emphasizing to people it's important

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

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

amazon has that network. they have this fleet of cars and motorcycles and bikes delivering packages across cities why couldn't they do that with food delivery ate tougher business than you would have thought >> here to discuss a little further gerald storch former ceo of toys "r" us and hudson bay. thanks for joining us. great to see you in term of your bread and butter in the retail industry, to what extent was amazon's growth in that area supported by their later innovations whether it be video online or aws? >> well, as a retailer, we had to make money. they were losing a lot of money. but, i had done deals with jeff bezos. i've been his partner. been his competitor. he's very fierce i would never under estimate amazon they have changed the world of arresting. even when they were smaller, everyone chased after them the net effect has been is that retailing is not the business it was back then. it requires far more capital investment to compete because you have to have both great stores better than ever whi

quickly, guy, your take a amazon >> the move to the downside i think was important. here we are right back to levels we saw again, joe will correctly say he's been doing the show for how many years, 47 years, and you've done really well we try to get to the ins and outs of trading. i think you stay into earnings and sell it again. i think you have another opportunity for another move toward the all-time high and you get out ahead of earnings on the 25th. >> my point before was do you think all of your participants on fast money have been sufficiently bullish and i do not think they've been sufficiently -- my only point was when i started the business is dow as 800 and it's now 27,000 so the way that these bears always stay in vogue when the market has gone from 800 to 27,000 -- i'm not saying they are, i'm saying in general it's much more el leks wael attractive to stay bearish and all you had to do was stay and you would be at 27,000 so your default position should be long stocks coming up, the dow crossing 27,000 >> be long, have a nice day. >> i'm not saying be lo

h q2 and we're going to go in depth with exclusive new details about how virginia won amazon. guys >> all right thank you very much. scott cohn >>> competitors are taking aim at netflix, stripping the service of two of its most popular shows. "friends" and "the office. so what will be the next shot fired in the streaming wars? we'll look at that when "power lunch" returns carvana is six years old this year and is the fastest growing place to buy a car in the nation. it's because we have thousands of people working hard to make our customers' experiences the best. it's because we have tens of thousands of cars ready to be delivered to your doorstep. and it's why hundreds of thousands of happy customers have ditched the dealership and bought their car online, earning us an average 4.7 stars in the process. so if you didn't know about us before, you do now. we're carvana, and we want to give you the car buying experience you deserve. >>> welcome back netflix is losing its "friends" weeks after finding out it would be kicked out of "the office." we'll have more on that in a moment

i know amazon is a front-runner. any chance that microsoft gets it >> there is a chance microsoft is executing on all cylinders. their move it open source has been brilliant and well executed they're doing exactly what investors should be focusing on, taking market share away from competitors, focusing on areas they excel at and improving margins. we saw all of those things in today's report so, you know, i think that trend continues. they are being -- the other thing president trump said he would look at google there's pressure on the competitors. that benefits microsoft. we're long-term investors. we're not trading this stock. >> 33%. >> without a doubt it's a trillion dollar market cap company. let's remember and i think it's a pretty unasailable report up a little less than 1% on a really good beat on a really large company shows you that everyone gets it and i think that the company is getting a lot of credit. it deserves a lot of credit. and only thing you have to look at for is people getting too overconfident

i'm glad that microsoft and amazon are still in there fighting this. they are willing to work with the military i think we could use a lot more of that and i would love to see more companies in the mix. >> i would note that four republican congresspeople, mac thornberry, elise stefanick, robert whitman and michael turner did send a letter to the president encouraging this process on jedi to continue to move on a pace, saying, quote, we believe it is essential for our national security to move forward as quickly as possible with the award and implementation of this contract. now we've talked before about silicon valley and the u.s. government and the importance of the government having access to the latest and greatest in ai. that's why you started anduril as you continue to watch the ai space, the advances on both sides on this, how do you feel about the u.s.' position >> i think we're in a very good position right now we have some legacy advantages we also have most of the best universities we have many of the best sciences that are working in this ar

we'll also see at the end of amazon prime day how strong the consumer is. >> the new cyber monday was yesterday. bryn makes an important point. there are people that are getting pinched by tariffs nobody is saying they're not have you or anybody on the panel heard their family or friends or anybody they have seen in the store say, you know what, m maybele? don't buy that, it's 5% more expensive than it was. >> the euphoria citing for the consumer, if there is euphoria and the consumer has a concern it's not the tariffs as much as it is potentially housing. and the impact of salt and the fact that house prices have reached a level that somewhat unaffordab unaffordable to me the euphoria is present if we saw house prices continuing to move higher and consumers reaching through leverage to pay the higher price we are not seeing that we see the sensitivity in price. i think that's a good thing. >> i'm excited about trade wars vis-a-vis consumers in china the reason the market doesn't correct every time there is more trump rhetoric regarding the trade war is this. the upside for me as a u.

now, it is important to note it is not just amazon that is a big competitor to chewy. jm smucker recently strengthening its pet food portfolio with a $1.7 billion investment, and general mills buying blue buffalo. share is up in after hours, trading up over 44% in extended trade. i'm curious, you and the guys on the desk, how many own a pet >> you, you, everybody except me. >> me as well. >> but per capita we have more than one per person. >> there we go. >> yes. >> seema, thank you. seema mody we will trade this in just a moment, but we want to hit crowdstrike. that stock is soaring in after hours session. rahel solomon back at headquarters with reaction to results. >> you could count me in i also have a pet. crowdstrike up more than 8%, almost 9% in after hours trading. the numbers in line with what the company reported in june on s1, but here is the interesting thing here the cyber tech company raised guidance for q2 and full year. the company reported revenue growth of 103% year over year. alex henderson of the company telling me it was a bit of a surprise to see t

why we didn't get amazon here. there were jobs lost there. >> that was -- as i've said a million times, i thought a terrible mistake and a political one but in a very different way than people think -- >> this is arizona and arizona, i don't think the governors of oregon or washington are going to -- are going to come down on the same side as arizona. >> so joe, andrew and becky, i would point out in one of the tweets in the string that governor ducey put out he did say that arizona and the city of goodyear, arizona, are well off enough without nike being there and that is one of the reasons why they're talking about taking some of the incentives and fee rebates away from that potential nike facility in goodyear, arizona. >> okay, dom, thanks. >> let's talk more about market and possible wild cards. joining us is david bianco from dws group. and tom tessorous from head of fixed income what do you see as far as the jobs numbers coming in and do we want a strong one or a weak one and are rates going lower? >> i don't

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

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

>> some of the bellwether stocks are big names like amazon or disney and these names can move quite a bit. we don't get into some of the more techie plays but there is a lot of tech baked into what we see in consumer discretionary right now. if we do get choppy markets, these stocks will move >> mary ann, as we're seeing news come out over the weekend with regard to the trade truce, is consumer discretionary perhaps able to withstand some of the potential impacts of tariffs more than other sectors, especially as it looks like things are now progressing forward? >> well, it's really interesting, the market is hitting an all-time high, consumer discretionary is at all-time high, tech is at all-time high. we've been at these trade negotiations for over a year leadership is still strong despite some of the headwinds that the market has had, despite the volatility, despite the bear market that we had in the third quarter of last year i think what people are missing is that earnings growth rate, since we've started this whole trade negotiation, is up 27% consumer discretionary has been a st

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

amazon on the verge of new highs. apple not so much. so it is a very bifurcated group. as far as cyclicality goes, watching the semis and the software stocks i think will be a very telling barometer as to whether or not the economy picks up in the second half of the year we have started to see that inflect positively over the last couple of weeks. we started to see, i think importantly, discretionary outperform staples here, high beta outperforming low beta. those are the market tells that we want to look at. >> all right, keep an eye on them, thanks a lot >>> white house economic adviser larry kudlow, former jim cramer partner, speaking now in washington here's what he said earlier this hour about fed independence. >> operational sense, traditional sense, i support that independence. but i also believe in a democracy that the president has the right to make his views known. as do members of congress. and other interested parties. >> new york stock exchange, life after kudlow and cramer, tough for larry, for a while finally i think he's at least -- not quite matched his

going from amazon or other retailers. price blink shows amazon branded or exclusive products, the fire tv stick, echo dot and echo show, they're getting the most attention again this year by page views nerd wallet said that's not surprising prices will are lower today than they were on black friday 2018 if they're amazon-owned products, it's amazon controlled pricing. amazon shares are up half a percent today. a analysis of the past four prime day events shows a month later 100% of the time, amazon shares are higher. by an average return of 5% perhaps foreshadowing what we'll see for amazon shares a month from now back over to you >> court, thank you. meantime send it over to mike san toll i who is back with his market dashboard >> thanks. pick up on the amazon conversation, something i'm calling eating the competition they say you shouldn't go to the super market hungry. maybe that applies to titling charts, too. here's the theme kids feasting while parents starve, that's another kind of haves and have notes story starti

we're all focused on amazon. this one skates right past everyone >> it got dissed by us. >> we didn't do a whole show on it there was no trillion dollar market cap ringing the bell. there was no thing we do for bitcoin in the lower right, that whole thing. >> nathan, though, you know dan, maga, that's the m in maga. >> but i think dan would say faded at this point. >> he's not here, he would hate it. >> anyway, with can we move on unh, brian kelly fade it or trade it i'm going to take a page out of carter's book and not tell you what i think. >> because you don't remember. >> take the camera off me while i look at it i'm looking at this in the beginning of the month the stock was $240, right? we've now moved up almost 30 points well over 10% move here any asset that moves up that much and particularly a stock when the volatility is relatively low to that, to me that's a fade. i'll fade it this is where you sell this one, not necessarily anything against the company, but it's just the price action. >> see this is

amazon restaurants. immediately grub hub stock caught fire and multiple analyst told us this is a major positive they are looking for after all, if you can out last amazon, got to be in great shape. stands to reason not so fast. i think the buyers are getting ahead of themselves. they were never a major player to begin with. one less competitor, of course they still got plenty of other rivals and frankly, you can read amazon's decision not so much as they gave up but how about this? as an indictment of the whole industry you have to remember grub hub's margins are under serious pressure for sometime and spending a fortune to fend off door dash, post mates and everybody else that piled in the business that's not a good sign, people in april we stopped by grub hub's head quarters to give the ceo to tell his us side of the story and willing to talk. i asked him if all the ad spending was worth it. here is what he said. >> so you think about it this way. you know your ltv, lifetime value of your customer onc

amazon has created this event. macy's played, nordstrom's played already, walmart and target will be huge players. all across the board, people say now i've got to have real product for july it can't just be clearance i'm going to compete i'm going to kick off back to school, and i'm going to do some business against amazon. everybody still loses market share to amazon at walmart and target because that's where the business goes, but everybody plays the game. >> is this new money that's being spent or are we just pulling forward money that would otherwise be spent >> are you always going to buy that go pro either way >> i was eventually going to -- i wanted to buy this go pro. right, if i'm the example, it's pulling it forward at a cheaper price. i would have probably gotten this go pro sometime in the fall, maybe for the holidays for the kids or whatever it is but now the go pro's on sale, and i want it. >> that's a fair point as to whether there's a potential kind of pull forward impact there is, but i think when

some mangers like to buy the retail eft i think that's a mistake, though because 20% is amazon. home depot and walmart are 10% and costco is 5% you're getting a lot of good exposure and lower quality names in there, too. stick with the winners, don't you think? that's why i hate the sector efts stick with the ones i outlined if the job market stays strong, the stocks keep winning and winning and winning. stick with cramer. tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch) tell him we need this merger. (in dutch) it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. weveryone, looknk isn'tat your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. >>> invest

so amazon did what it knows best, crunched the numbers. >> we had lots of data, from external sources, data we gathered and data from the responses that the locations gave to us. >> on workforce, transportation, education. >> we knew it was going to be competitive. >> in crystal city, matthew kelly, saw amazon as a catalyst for his firm's plans to develop the millions of square feet of office space it owns. >> we were offering things they were looking for, in terms of workforce, infrastructure, labor pool. >> it took a coordinated push by the company and state and local government. >> we said one of the ways we provide value is by investing in our human capital. >> virginia's bid was the only one that included a new college campus next door. >> what was unique about virginia was the commitment to developing the long-term talent pipeline and virginia is also a great place to do business. >> so they get through all of that analysis and they get to september, a year into the process and they realize, they can't come up with 25,000 people to hire in one place it's too much of a task for a

>> we still like amazon because of the cloud, you know, focus they have where aws. as you know, they're the leader in infrastructure service. last quarter they grew that segment by about 41% we would expect amazon to continue to morph itself away from what we consider their core business as they kind of expand out into these other thing you guys have well documented their efforts into getting into the pharmaceutical distribution business they have gotten into all kinds of things. so to me the future for them is really the cloud because that is by far the most exciting aspect of their business. it actually encompasses a very small portion of their sales that is an area we feel very strongly about in regards to amazon going into the future i ask you that on a morning when apple got downgraded to a cell at rosen blat and they're talking about the fundamentals of the company deteriorating over the next 6 to 12 months >> i think you're right. apple is by far the company that will be under the most heat. you've had a couple of brokerage firms downgrade them as you mention

prime day isn't just a big day for amazon though. it has created a halo effect for rivals, many which offer competing deals. adobe analytics predicts sales could surge 79% compared to an average monday or tuesday in july >>> thank you very much. now chewy is set to post results for the first time since going public lesley pickard has the preview hey, lesley. >> hey, wolf that stock up 55% since its ipo just last month. a slew of analysts initiated coverage on chewy this week with more holds than buys actually. the main bearish case on the street is valuation. the stock popped in its ipo as investors clamored for the largest pure play online pet retailer the bulls, however, point to chewy's growth and a recession-proof category with a path to profitability. chewy's first quarter earnings are due out after the market close on thursday with a conference call to follow. we will be listening in, guys. >> leslie, thank you >>> sticking with earnings, the big banks also set to post results next week. wilfred, you will be busy. what should w

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

i mean i know amazon has a music services i don't think i've ever used it. >>m kr rr more off a spotify person >> i started with pandora and moved to amazon. maybe i should check it out. >> let's take a look up to the sky. so this is virgin galactic test launching the rocket they're dropped from a planefore their boosters switch on paved its way for the first launch to space. apparently it happened exactly as they planned it i feel like all the billionaires are going up to space or down to the sea. >> it use ood be sports teams and now it's spaces. >> year just chilling out on the the ground >> we're so claim. we hangout on earth all day. >>> more on that developing story in the it gulf a major story is gaining strength we're going to break down the impact on oil prices >>> and stocks could open at new ill-time highs where you can stl find opportunity in this rally when "world wide exchange" take prilosec otc and take control of heartburn. so you don't have to stash antacids here... here... or, here. kick your antacid habit with prilosec otc. one pill a day,

the german labor union said amazon are depriving employees of a living wage in a statement an amazon spokesperson accused labor unions of conjuring misinformation and argued the tech firm already provides good working conditions >>> facebook will not be launching its cryptocurrency until regulatory concerns have been addressed that is according to the executive in charge of the project. david marcus made the comments in a prepared statement ahead of an appearance in front of the senate banking committee elizabeth has been following this closely everyone is weighing in on this topic. for the most part it looks like most policymakers are viewing it with a certain degree of caution. >> we heard a lot of skepticism from policy americas jerome powell saying last week he has serious concerns. yesterday we heard from u.s. treasury secretary steven mnuchin saying he has serious concerns about facebook's planned cryptocurrency called libra. david marcus, who is overseeing this project at facebook, emphasized he wants to work with regulators on this project before it launches that might mean i

they could get an amazon or google or facebook to go in with them and become another reseller on top of what they're doing across this system if you're t-mobile or sprint, you don't want that. you can only sell so much. you can only bring in so many partners dish is led by charlie, he's a strong negotiator. >> and he walked before. is there somebody behind him >> i think it hinges on him. >> making sure the doj is cool with this. >> if they see this creates a legitimate fourth carrier. you're combining these two but we need another one to support the system support the market around it >> do you think in this environment, this political environment that a google or an amazon would be ones to step in and make major investments >> i think they're not allowed to >> i think it's off-limits it's not possible. >> it's off-limits with the regulatory -- >> yeah. we talk about privacy all the time >> most people don't care. >> the public doesn't care if google offered a subsidized service where your phone service is cheaper -- >> how much do you pay for cell phone service? if that dropped by

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

whether it's amazon, the other 50% of their business is split between retail stores and internet, their own crocs.com. >> erin, we're going to leave it there. erin murphy, piper jaffery with that we leave you for "power lunch" on a monday. thanks for watching. closing bell starts right now. >> welcome to closing bell i'm wilfred cross. banks broadly under pressure ahead of earnings from goldman, from j.p. morgan, and from wells fargo. tomorrow morning a preview of that coming up with 59 minutes left of trade, everything you need to know as an investor is coming up >> and i'm morgan brennan in for sarah eisen. let's get to what's driving the action energy is dragging the markets you heard wills talk about that. stocks are hovering near records as we await more earnings this week joining us for this hour to break down the m

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

all along i think amazon should be more concerned than ulta. why? because mary dillon runs a tight ship in the best loyalty program in the world look out amazon, ulta is the real deal. harry in colorado, harry. >> caller: jimmy, boo, boo, boo-yah from the white peak mountains of colorado. wondering about your take on chewy the management, back up the truck or -- >> can't back up the truck because it's too expensivexpens. i was very impressed by management when we met very impressed i think they are doing a lot of things right some said how do we know amazon can't beat it? the guys, i actually once i asked pet owners what do they use? haven't found a sole that doesn't use chewy including us retail is back, etsy, lululemon and stitch fix found ways to win and charts can make you go higher much more "mad money." a company that works with visa, bank of america and you probably never heard of it. i'll reveal the name and what would have been pop's 97th birthday, i'm reflecting on things he taught me about business and your calls and rapid fire of to

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

yes, amazon is formidable. you know, nobody disputes that but i think what you are seeing is bright spots in other retailers which have high table stakes and are making inroads. >> an example would be target. somebody else? >> you know we are speaking ever the new ones to the market if you think about companies like revolve, you are seeing where high customer economics, high lifetime value where repeat purchases and gross margin give you a long-term value that customer exceeds the cost of customer acquisition and they have a long runway. >> influencers could replace marketing budgets? >> it is working your go-to-market strategy could be very different and very digital. >> you used to run hudson's bay company, of course that's a retailer. it is a department store we got an interesting call today out of goldman sachs and they are downgrading ralph lauren they are worried about the department store space and sort of that wholesale model with some of these brands do you think that's warranted? >> i think that the t

>> reporter: hey, jon, it was close, but amazon edged out facebook for that top spot amazon web services is locked in a fierce battle with microsoft over the pentagon's $10 billion jedi contract. amazon spent $4.15 million on lobbyists in q2. facebook, $4.11 million. it was very, very tight. facebook has also faced some tough questions from policymakers about deep fake video and the launch of its cryptocurrency, libra. both of those companies appear to have set quarterly records for lobbying dollars third was alphabet, google, which was the top spender last year overall and actually decreased the money it's dedicating to lobbying from $5.8 million a year ago in the quarter to nearly half that amount last quarter. this amid reports that google recently fired several longtime lobbyists. microsoft and qualcomm rounded out the top five their spending on issues like data security, internet privacy, and competition as government scrutiny on those topics intensifies. during the quarter, top tech companies like facebook, amazon, apple, and google were also in the news about potential government

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

shelton when we return, it's been a 25-year run since amazon was founded. what can we expect from the company's next quarter century we'll discuss. >>> good day, everyone i'm tyler mathisen in today for scott wapner on the "halftime report" today, are the bulls offside on the fed after today's solid jobs report? we'll discuss that one plus, we will debate a serious warning from one top wall street firm, advising investors to get on the sidelines quickly we'll tell you who it is and why they think that. and where the investment committee hit and missed in the last three months. we've got the quarterly report it is all ahead today at noon eastern on the "halftime report." deirdre? >> tyler, looking forward to it! now, today is a birthday for amazon, turning 25 it was on this day back in 1994 that jeff bezos filed the paperwork to create what was originally called cadabra. now it's a household name, amazon the next quarter century, though, is likely to look a little different today today the uk's competition regulator says it is reviewing amazon's recent inves

exhibit a, amazon. it crossed the trillion dollar threshold this morning amazon didn't become this unstoppable behemoth because jeff bezos is brilliant, which he is. it got here by leveraging scale. amazon is dominant because it's so big they use that scale to get better price from the suppliers to pass on to you. we have antitrust law because when you get big enough, well, no one can compete against you bezos saw how he could use amazon's scale to dominate retail he didn't stop there he figured he could do the same thing by creating cloud computing. aws one of the largest businesses growing at a 40% clip we had the head on the show recently, he told us how the position scaled which is the dominant player in the cloud which is true. it allows them to innovate and keep prices down and compete with the competition i urge you to look at that interview. i thought it was mind blowing. i thought to myself, darn it, that guy is real smart amazon also knows the secret to maintaining scale is keeping work force

amazon is upset because they want a piece of the contract >> what is their beef with amazon here? they're too big, they can't do it >> they feel they had an unfair advantage. >> that's the origin of the issue here let's turn to the earnings and we'll come out later today what are you looking for >> well, it's the cloud. >> azure, right? >> they are moving the customers hardware into the cloud. we're looking for that to continue the cloud continues to grow. the legacy business is seeing a one-time upgrade because of end of support, windows 7 one of them a quick migration as a result of that we're looking for a very good quarter with microsoft >> that will pull forward? >> only 4% or 5% of sales. they're going with a 10% tax instead of 8%. that will help. >> when you look at microsoft, what sort of growth -- if we're assuming cloud is going to grow and be a bigger part of their business, what kind of growth overall in revenues are you projecting and what kind of margins will we be seeing? >> so cloud has been historically a lower margin business they cannot hire the people to keep u

. >>> 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

. >> 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

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