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

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

prime day is official underway what it signals about the consumer, amazon and investors amazon holding on to 2k. back in a moment don't miss your golden opportunity to experience the luxury you desire on a full line of utility vehicles. at the lexus golden opportunity sales event. lease the 2019 rx 350 for $389 a month, for 36 months, and we'll make your first month's payment. experience amazing. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu. >>> welcome back symantec down 13% after we first reported this morning around 9:05 the talks between broadcom and symantec have ended at least for now. that according to people familiar with the situation. the two companies had been in talks for am in of weeks, designed

now, amazon went public earlier. but exactly right. it's very well established it's a massive, you know, piece of the economy, right? i mean, just in terms of how it's intertwined with it the thing about all those numbers about his wealth that's, that i take away, that the averages obscure the fact that at one point his wealth went down from 90%. in 2000 to 2001, the stock went down 90% and people didn't know if it was going to actually have a second act. >> the other point i'd also say for the 25-year-old part of this, the online delivery shopping products, that's not really profitable, which is the other extraordinary take away. find another company that has grown so successfully over 25 years with the core business being loss making give or take. >> or running a the a loss. >> that's kpraet extraordinary uber couldn't do that unless it develops something like amazon web services which is a cash cow to pour profits in the other businesses. >> it makes the argument for the strength of a company, of an investment long term that continu

amazon was 6%. apple was about 4% facebook, 3% jpmorgan, surprise there, that was about 2% you put it all together, the top ten companies in the s&p were 34% of the gain from 2,000 to 3,000. the other 490 were the other 66% of the reason that we went up. that's my point. you see, 10, 15 companies are the ones that matter if they move, the whole market moves and nothing else really is that important overall why are these tech-oriented companies so important why are people doing anything to get ahold of them? that's where the growth is that's where the majority of the world growth is. investors will pay anything at this point for growth. carl, back to you. >> bob, as you're talking, got dow 27k for the first time let's get to the bond pits rick santelli, good morning. >> yes, some historic markers going on look at the three-day chart of several parts of the yield curve. let's start out with two-year note yields. you can see that they are definitely right side lower than the left side. now, let's move

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

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

>> just a sec, i'm working on it, walmart, amazon, target -- >> horseshoe loves amazon. >> trying to come up with a new acronym. >> i'm going to work on it during the break walmart, amazon, costco, target. that -- taqua? the stock has this instagram thing. >> not at the social media summit at the white house today. you have a social media summit without twitter and facebook. >> i don't know. i got a million followers. i'm offended more on instagram. it is a lot of fun. >> when we come back, speaking of some of the names, setback for netflix in the streaming wars to sun valley with an important week for the media business. live coverage of fed chair powell's testimony as jim messenger mentions facebook above 200 futures are up we're back in a moment it all started under this buttonwood tree. twenty-four people came together to sign an agreement that created the stock exchange. just the right elements coming together. it started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. it started in an of

. >> that's because of watch that's because of walmart, amazon, target, costco, home depot. those prices have not gone up. some of -- many of the prices have gone down because they're going to these suppliers and saying, you know what, here's the price we are now willing to pay. because we have -- well, they don't say wiped out the competition, but every one of those companies in the acronym watch are companies who do not listen to what you say you're going to sell them, they say, here's the price and that is the big change in the u.s. economy they have scale. you get the darn tariff, our customers aren't we're going to make as much money as we always made. it's incredible the change in the u.s. retail economy, jay powell and i have to go, unlike david faber, we have to go to watch. i just want to show him the prices i hope he goes to amazon prime day because you'll see things that are cheaper this year than last year that are made in china because amazon has said this is what's going to happen >> yeah. >> i think people don't understand the change. >> yeah. even goldman yes

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

at amazon headquarters in seattle. it's 11:00 a.m. on wall street and "squawk alley" is live ♪ >>> good tuesday morning welcome to "squawk alley." i'm carl quintanilla with morgan brennan at the new york stock exchange jon fortt's in chicago today at cnbc's at work human capital and finance summit a lot more from jon in just a moment we're obviously going to begin in washington, go back to senate banking and that hearing on facebook's crypto. ylan mui can wrap up some of what we've heard

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

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 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

>> i would have told you that amazon, walmart and target couldn't all win at the same time they have been winning at the same time. i still think it's a harder road for target than it is for amazon or walmart so, yes, i think you may see some changes there the other thing you have to remember is nordstrom's will win at pace, macy's will win at space and kohl's will win at space because everybody else is basically toast. but that doesn't mean they are going to be immediately investable because we don't know when that will start showing up. but all three of those are winning online and they are winning where they live. the bad news is where they live is a bad neighborhood. >> jan niven, always get to get your thoughts on the space as we head into the second half of 2019 thank you. >>> let's head over to sue for a cnbc news update. >> good morning everyone here's what's happening at this hour iran's foreign minister mohammed zarif says iran has sur spassed the plilimit on how much nuclea fuel it can possess. it signals an intention to pressure european signatories to the deal to find a

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

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

you're looking at companies that are amazon-like. and those are expensive. anything that is -- shopify is a company i like very much talking about how that is a winner, all right. talking about alibaba, a square winner, there is a piece by lisa ellis talking about square being a winner because of their venmo-like product so, i mean, we have got these companies that people are -- david, you talk about towers, later, i hope. >> we talk about it on -- what day was that wednesday? >> expensive stocks. >> yeah, they are. >> so, i mean, against them, we have got the banks, 12 times earnings, a lot of retailers, nine, ten. so i find that the call really makes sense, but nobody has research on all the companies that have come public in last four weeks and they are so loved. today, crowd strike. everybody loves crowd strike i defy people to tell me what crowd strike does. david. >> cybersecurity >> wow. >> then again, semantic gets a $28 bid from broadcom. >> it may. you say 28, sorry -- >> they should halt trading. it is crazy. >> i hope to reach a deal with -- >> i

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

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

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

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

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.

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

>> we 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

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

amazon prime >> this is what b of a looked at last week. quarters in which there is a price hike and an earnings selloff. 90 days later, stock does extremely well those were days where you didn't have -- the sand box was not shared back then >> and you didn't have the loss of friends they minimized "the office." i think, do you take the last three weeks as being -- if this was a railroad company, we'd give them the benefit of the doubt. remember, i didn't say down 60 we sell it i think down 60, you buy it, betting there can be a reacceleration he was really wrong. he was wrong a few years ago it was a great time to buy >> listen, it's not like he doesn't acknowledge it over the next 12 months, disney app and nbc universal will join a cast of thousands. >> he gives you three new competitors you've never heard of if every executive were like him, this business would be so fabulous >> wouldn't you expect a company like netflix will algos are a big part of the quotient to have better forecasting >> yes, i would. but there's an element of it whe

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

so that really is multicloud, so the ibm cloud can be -- it could be google, amazon, microsoft, public, private, and that's what somebody needs that is a trillion dollar emerging market out there. and so that is what the opportunity ahead is, and that's why there is no cost synergies here this is about -- we called it, not an integration, it is a synergy for growth case. >> perfect before i turn it over to my colleagues, jim, wikipedia says you're about 52 years old. but you're coming from north carolina symbolic because that's where you are, or does it say you're here to stay and would you eventually like to run ibm >> well, look, i've generally found what is most important is find a place you can have the most impact and career will work itself out and i'm convinced that this allows red hat and what we have done as part of ibm to really be the defining technology company of the 21st century. i'm excited to play a part in that i'm really excited and i plan to be around for a long time. >> and we are going to be -- this is really redefining the cloud landscape. and together we talked a

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

they 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

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

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

amazon >> we should look at symantec. >> we both say it is going to go higher we have that in common >> peter feld. you never talked about starboard. i wish you had. >> they share a board member, ken howard is on the board of both symantec and on the board of broadcom, worth noting. that stock is up -- bloomberg breaking that story yesterday about talks. we confirmed the two companies are in talks they began a few weeks ago they were hoping and still are hoping to potentially reach some sort of transaction or announcement of a deal by the middle of this month so a couple of weeks away perhaps. but you never know when there is a leak they had work to do including nailing down a price and that can often be the sticking point >> rick is interim i wouldn't be surprised if he doesn't work something out. >> you said 28 earlier >> i don't think rick will take less than -- rick is only interim. i think rick feels the company is dramatically undervalued. they have 20,000 engineers that -- they have unbelievable brain power. and life lock turned out to be such a home run. i didn't think it wou

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

they say, 5% is fine, but you can't bring in somebody, let's say google or amazon, you name it, who would invest 10 o% or more there are issues there is the ability to resolve the issues, it would seem. there does seem to be on the part of the parties involved and the people that i'm speaking with who are familiar with these negotiations, telling me they do believe they're making progress. they are exchanging drafts as you might expect and conceivably by as early as next week, they will actually have a deal underwhich -- >> do you know how you've done if you bought these -- also, all the oligopolies, ball or lindy this is the giveaway that i've not seen since constellation brands. >> what the doj i think would say is if you don't approve this deal, first of all, what happens to sprint? what is sprint >> they need that because of 5g. >> what do they do do you sell sprint spectrum? who does that go to? possibly sell it to verizon or sell it to t-mobile >> that maybes it -- >> the point is, do you have a fourth competitor if that deal dies, one question the other is if they can agree to term

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