>> 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

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

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

that's a big part of why we're as positive on amazon as we are. a lot of those store closures are happening in apparel, department stores, and footwear. all areas that benefit stitchfix. so to the extent that you live in a part of the country and you're losing access to a lot of your apair options, stitchfix actually becomes pretty powerful we've also done a really good job recently of launching new products around men's and kids we're launching in the uk. and their algorithms, the underlying piece of it that makes sure you get what you want has also gotten better >> you mentioned amazon. how big of a deal will prime day be for the country next week >> it's a big deal from a marketing standpoint and a customer acquisition standpoint just to drive some attention in terms of numbers, it doesn't really -- one day is not going to make it or break it for amazon more importantly for us is the fact that they're putting $800 million into same-day delivery, which means you're going to be getting your products faster, it opens up a whole new part of the wal

but there are deals abound beyond amazon. it's now a shopping event across retail, retailmenot counts more than 250 retailers offering deals around prime day, 40% more than did so last year. sales force says total ecommerce will see sales grow 51% this prime day compared to last year. adobe, a bit more bullish, for the largest u.s. retailers forecasting 49% sales growth on this prime day and if amazon's site goes down again this year as it did last year, it just opens up more opportunity for competitors, though jim shabai, the vp of amazon prime says there won't be a problem this year. >> we've worked really hard this year to make sure we've ironed out all of those technical glitches now 48 hours, over a million deals, deals being released every five minutes we're confident all of our members will have a great experience >> at least so far, no glitches on amazon or other websites have been reported, but we're watching it. we've got many, many hours left to go still. more kb moregan? >> yes, we do. i'm sure it's going to keep

amazon is the flavor of the day in the situation >> is there reason for regulators to think that amazon is implementing anti-competitive practices in its different businesses >> well, the thing is actually organically competitors are rising that are start to go quietly compete with amazon. i think there's an organic market practice. you have the google antitrust in the u.s., the huge if a is book fine recently, $5 billion. that should be trillions of dollars. i think regulation is often a measure of societal animous. >> if you were to rate on a spectrum the names of big tech companies with liability -- >> right >> who is on top >> i think they're the folks you're seeing at the hearings today on the hill. it is amazon it is facebook it is google it's the folks who have an enormous amount of power at least in part as a result of the tremendous amount of consumer data that they have and the requirement that is going to come along that they manage that consumer data in an intelligent fashion. so, again, amazon's got a number of other of these companies have anti-competitive questions, part

amazon giving us a glimpse into the action from at least the first half so amazon says worldwide sellers predominantly small and medium-sized businesses saw the biggest 24-hour sales day in amazon history now, the company also says it sold, quote, millions of alexa-enabled devices, including the fire tv stick with the alexa voice remote and the echo dot. nerd wallet does verify that prices on those items were lower than amazon prices on black friday other top-selling items again this year include that instapot. everybody wants one and the lifestyle personal water filter as well as crest 3-d white professional effects whitening strips data from edison trends suggest this year's prime day event might have gotten off to a slower start than the previous two years because it began at 3:00 a.m. eastern time instead of 3:00 p.m. last year and then 9:00 p.m. in 2017. so that makes sense. nobody'sprobably shopping whil they're sleeping now, amazon may have introduced the event, but more than 250 retailers are offering competing deals. adobe an liquidates say that large retailers with at least $1

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

tech stocks ahead of some big earnings later on in the week obviously, we'll get facebook, alphabet, amazon, intel, and twitter all before friday afternoon. bob pisani and mike santoli here at post nine on what to look for and which print do you think we have the most confidence in going in that was a question for cramer today. >> which print we're going to hear from this week? >> he thought maybe google had more liability >> well, google's in the penalty box of those four, so i think probably does have the most to have prove also, perceived to be the company that cares about making the number least i don't know if that works for them or against them in terms of setting expectations but this time i think what's going to be most interesting is how the stocks react and what was already built in or was this just kind of a big trade into big cap growth and we're not really talking about the quarterly results. it's just a placeholder type investment or are we really banking on great numbers from the likes of facebook and the others? i mean, microsoft is really interesting. flawless quarter, stoc

industry has prided itself on having great mathematicians to process data, but google and facebook, amazon and microsoft have the actual data as well as -- to process it, which is a huge advantage, and you can see amazon going into portions of the health care insurance market and presumably other insurance markets. you can see google making plays that suggest that they're starting to look at financial services obviously now we have facebook with its effort in libra, and i look at this and i think the financial services industry is incredibly vulnerable, unless regulators step in and require the tech giants to observe all of the same regulatory constraints that have historically been applied to banks and insurance companies. at the moment, the way the tech guys are approaching this, they're just going to move fast and break things and that shoul give everybody a lot of pause. >> always great to get your thoughts hope you have a great 4th of july holiday. >> happy 4th of july. >>> broad cam nearing a deal to buy symantec josh lipton is in san francisco with more. we're certainly seeing those

either that or we're going to see the actions of the government relative to google, microsoft, and amazon affecting those stocks in a manner more similar to what we've seen already at facebook. because i don't think this is a facebook exclusive problem they have cambridge analytica. the other guys didn't have that really bright, shiny light and there's a film out just yesterday on netflix called the great hack which really delves into that which i think is going to increase pressure but at the same time, i do think you have at google all kinds of regulatory issues on the horizon. >> it feels like what you're saying is everyone is reacting to what they're doing, but what if all of a sudden lawmakers get proactive or do you believe that that's just not going to happen? because that could fundamentally change their business model? >> from your lips to god's ears as far as i'm concerned. because i spend a lot of time in washington and the thing i can tell you is inside the trump administration, both the department of justice and the -- in the anti-trust division and the federal trade commissi

it could be amazon amazon has made a lot of enemies. there are a lot of complaints about they're blocking access to the marketplace, unfair picking of winners and losers when it comes to their marketplace. >> okay. >> day of the week it's what's been tweeted lately and which politician wants to pick on whom. >> we have to leave the conversation there it will continue though. thank you very much, guys. >>> still to come, the stagecoach is ready to roll. wells fargo results are next by the way, here are the futures right now. take a look at what's been happening after we've already heard from three dow components. dow futures picked up. we were in negative territory down by 25 points. this morning at 6:00 a.m we're indicated up by 35 points. s&p futures up by 2, the nasdaq up by 3 and "squawk box" will be back [ dogs barking ] what about him? let's do it. [ sniffing ] come on. this summer, add a new member to the family. hurry into the mercedes-benz summer event today for exceptional offers. lease the glc 300 suv for just $419 a month at

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

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

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

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

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

. >> lee, do we think this happens to amazon and hbo, when they have a quarter that's not so strong as far as either sales, you know, not a big holiday, or there's not a "game of thrones" that subscribers actually drop that much -- we don't get that kind of visibility into their subnumbers, but is this unusual? >> it's a great question for hbo, we could see that happening in terms of how the content slate lines up amazon, obviously, a much different animal they're really monetizing their subscribers through ecommerce channels and much different than, say, one title on amazon instant video. >> but maybe that's why they came up with prime day >> certainly not a bad idea >> hollywood's got to be saying, welcome to the party in terms of just how hard it is to create hits, right? you think that's something that netflix is figuring out now? >> i think that's the right question and in hollywood, content is king and netflix's subscriber numbers continue to prove that out and you know, if netflix is going to be a more hitch-driven business, investors will be asking themselves, what multiple do

>> 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

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

names overall have done so far year-to-date, facebook up, what, 47%, amazon up more than 25%, apple, 25%, netflix up 27% good evening is the laggard. but is there still room to run in some of these names that have performed so strongly in the first half >> yeah, as you mentioned, f.a.n.g. is up 27% year-to-date. so with that kind of gang, you tap the air brakes a little bit and do a check we do think the fundamentals are still very good. if you look at the rally we've seen, it's largely been in growth we're starting to see on our trading desk a shift back to value of sourcing, clients move back to value-earned names that will benefit someone like a google going forward, given the run we've had. but we continue to be really establish on facebook. it's the strongest roi we see in advertising right now. and we think they're capable of $10 of earnings power two years out. and to put a low-to-mid20 multiple on that and you have a 230 to $250 stock. so you still have a lot of room in facebook from our perspective. and again, some of the value names like expedia, google, even in midcap, go

amazon embraced her message of self-acceptance and of course this is a push by amazon to push further into cosmetics challenging alta and sephora. >> i don't know anythingabout makeup. >> what? you wear it every day. sure you do. >> try not to wear -- >> everybody wears makeup. >> i need as much help as i can get. >> really? its he hard to reveal the top states for business in the top of the hour. with a rundown of all of the diabolical hints we've had here's a look at yesterday's s& 500. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. >>> welcome back you're watching "squawk box" live from the nasdaq market site in times square. >>> good morning u.s. equities futures at this hour down 72 on the dow. those are some of the worst levels we've seen since we came in anyway this morning the s&p indicated down about 10.

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

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

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

how the dispute between google and amazon came to a tv. s&p almost went green. down two points. we're back in a minute but we'ra company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. >>> welcome back to "squawk alley. we've got a big commercial space deal to tell you about today sir richard branson's virgin galactic will merge to create the world's first and only publicly traded human space flight company proforma enterprise value, $1.5 billion. shareholders of sch, which is a public investment sfleevehicle l own up to 49% of the combined company and social capital's pal happ pa pa palahapatia will become chairman >> this things looks like a software business under the hoot, even though it's flying people to space. so this is, i think, a really compelling risk/reward even taking a general step back, i think i've had a really good track record of being a little bit ahead of some big trends, whether

. >>> several hundred climate change activists protested outside amazon's headquarters in paris. the protesters are reportedly upset with amazon, saying the company is representative of policies that exacerbate climate change and nasa conducting a full stress launch abort test for the orion capsules designed to carry astronauts to the moon the capsule was empty for morning demoe, which officials say appeared to be successful. nasa aims to put astronauts back on the moon by the year 2024 >>> you're up to date. that's the news update this hour i'll send it back downtown to you guys, morgan >> that's a big test that space industry was watching, orion, which is made by lockheed martin on behalf of nasa. it's going to be a big part of that push back to the moon for humans >> it's so exciting, it really is >>> when we return, just absurd! that's what tim cook's reaction to a report in the "wall street journal" over the reasons behind johnny ive's departure the editor in chief of the verge joins us next for his take >>> in the meantime, speaking of global markets, what should investors

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

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

>> have you ever tried to download a show on amazon prime, vs. netflix. we wouldn't have enough time relative to the second it takes on netflix technology is hard and netflix, that's all they do i think there is something to be said for the only thing netflix does is streaming video. all the other companies we can talk about they do many other things. i think that's a distraction or makes it hard to focus purely on streaming. look, it certainly argues, you think about sun valley, it argues, all of these companies need to get bigger i heard david on here yesterday, you asked him if he was for sale he said no way discovery is for sale. there may not be a buyer because companies like comcast and disney and via com, cbs haven't merged yet there will be consolidation. >> i was thinking 16 billion or so that's a big number. you'd have to take 30, wouldn't you? >> comcast is a pretty big company. disney is a big company, via koym and cbs. >> wouldn't you have to take 35 oring? >> the headwinds are not going o'way, i call the next five years the let in flicks era

these are big names, amooi crow soft, apple, amazon with huge market caps. the advances this year in the s&p 500 account for 20% of the advances. >> right. >> i usually thought when we think about how tech weighted it, i thought it might be more than 20%. >> right obviously that's more than those four companies waiting in the index. it says those four stocks are outperformed. >> right they're also all -- >> big gross stocks in general. >> we're getting used to using the t word, too. they're all coming. >> unless they don't -- >> large numbers you used to say. >> unless all these companies stocks stop bleeding the market. if they keep going up, then they can buy back stocks, too. >> last we got 2 above the trillion and then the market corrected. >>> joining us now, jim paulson. thinking about questions for him. hank smith, investment officer paulson, we go way back obviously. correct me if i'm wrong, but in 2018, you got less bullish and it ended up being a flat year, i think. now against the lot of the grain you have been really pretty positive in 2019 and y

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

have companies that you talk about every day with new dna that are all about cloud computing, ai, like amazon going after retail we have, what, 8,000 retail outlets closed in the united states last year or airbnb, you know no buildings, no facilities. and, you know, they're dominating the hospitality industry with the market cap greater than the sum of all hospitality companies in the world. again, it's all about ai, cloud computing. tesla, ai. iot and cloud computing on wheels disrupting the auto industry so we have a new generation of technology and i think the ceos of cat and 3m and boeing and royal dutch shell are adopting this technology so that they can survive and thrive in the new economy. >> you mentioned a number of industrial heavyweights there and certainly i have seen this in the fact that the industrial internet of things and many of the companies are essentially becoming the other tech companies. i would argue that honeywell probably belongs in the bucket too. when you look across corporate america who is adopting this technology and maybe getting it right and who isn't? >> jpm

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

this off we trust amazon. we put our credit cards in there every day. regulators would be on them. it wouldn't be like this it wouldn't be like let's put them up in front of a panel andtary them apart because they lied about data and this and that >> i think you will face tough >> i think it's intriguing i think all of this is eventually good for bitcoin. i think libra is the on ramp the electronic wallet pulls us into this world. it shows us why it's so much better there is nobody in the middle. you don't have to trust anybody. >> the think i question is if they will question libra, how does that more tend? they have to think about any crypto currency if they say we have to put all these guard rails around and the structural peer-to-peer nature of bitcoin it may fundamentally be possible >> who do you pull in front of the congress >> that's what's interesting they can regulate how you buy and sell it. >> can they track down and figure out who is behind every transaction? because that's what the law enforcemen

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

but yet you have not seen apple, amazon, alphabet posting new highs. nvidia, netflix, still well below the highs they posted in 2018 there is dispersion in technology there's a defensively oriented sentiment that wants bond proxies. >> let's talk about our top corporate story. it is the one and only elon musk, tesla shares are soaring this morning on record deliveries he pulled through, phil lebeau >> he topped expectations on every level in terms of what people were looking for for the second quarter now already there are people who are saying, well, okay, at what price did you have to sell the model three? what will the margins look like? we won't know that until later this month and early next month when they report 2q finltals. they hadry dlefryes of 95 d 200. the model 3, 77,000 of those the model s and x, almost 18,000 when you look at the model 3 deliveries this has been the focus for so many people the estimate was for 74,100 vehicles to be delivered now with the 77,550, and the total number, they need to deliver about 200,000 vehicles in the s

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

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

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