what do you expect out of facebook, amazon and alphabet? >> contessa, from a high level, this is a transition quarter, which is different than the wake-up quarter that netflix had. a transition quarter means there will be headwinds. but i think that the themes are on the broader f.a.n.g. will be intact at most risk next week is going to be google in part because last quarter they had a dip in their revenue. they had four years of consistent 20% revenue growth. that dipped last quarter that's not the reason why there's a head winwind they have to be more skillful at navigating questions on what potential regulation could come. google has been largely spared of these regulations and tweaks from regulatory bodies but i think ultimately that's something that investors will weigh more heavily on. and facebook is still in that camp they have regulatory questions i would put those in the headwinds camp apple is a unique case they're the only one of the f.a.n.g. companies that have exposure to china. that's about 10% of their business and that chin

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

and i think it's interesting on amazon, i only worry about the top line amazon spends so much money, and i will say this, i have a lot of positions in private companies that sell consumer goods and services in america, almost in every state now, and about 30% to 40% of our sales are now on amazon, and there's good pros and cons to that, but we really want that same-day delivery. so, if there's more capex going into that, i'm very happy with my position in amazon. that's going to be a game-changer for a lot of providers. same-day is a big deal, because it lets you get an advertising spend and get a direct measure to how impactful it is in regional markets, when you can deliver the same day >> we have got another earnings report out, and it's starbucks kate rogers has the numbers. >> very strong q-3 for starbucks here, beat on every metric we'll take you through eps 78 cents adjusted compared to 72 cents the street was expecting. revenues $6.82 billion versus estimates of $6.6 billion. that's up 8% year on year. the company also says that's an all-time high for revenues global comps up

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

amazon 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

>> so i own amazon and i actually own amazon not for e commerce, not for prime day, of course this year prime days. but because of amazon web services here's a company that has an overall operating margin of 7%, the average company in the united states has won many the double digits. here's a situation where if they can continue to grow their revenues, 15 to 20% per year, their earnings growth because of expansion will probably grow at double that clip and so no, it's not inexpensive. never going to be a value stock, but then on the other hand, i think it shaould be a stake on anybody's portfolio. >> all right, fine, we get a share of each. that's kind of the seem i see with all of these. what happens if they go with facebook and you spin out the what's app and instagram spin out youtube for shareholders like me, it might be more valuable thanks, appreciate it. >> cool to be here zpl good to get your point of view >> all right this chart is a pretty picture for snap investors the share's up nearly 200% so will it continue to make investors smile? trading nation is is next and the nba se

. >>> 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

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

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

sales are not actually amazon direct they are third-party retailers, in many cases using amazon's fulfillment. it's not just amazon's platform alone giving some argument that this isn't quite as cut and dry as the treasury secretary presented. take a look in shopify it has a $36 billion market cap. that has tripled in two years. and its business is really allowing businesses to compete without being on amazon necessarily, though as part of the latform, you can also operate on amazon. don't forget about etsy. they have an $8 billion market cap. that has quadrupled in two years. amazon was competing directly with etsy. and you know what, they are still doing just fine. one area that has popped out for amazon anti-trustwise is again that third party retailing platform there have been some complaints that amazon has a lot of data about what customer demand is for those third party goods. can then use that against its competition that might be an angle that the feds choose to pursue but we haven't even talked about cloud, kelly you know, amazon has not really tied the retail and cloud businesses c

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

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

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

. >> 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

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,

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

amazon'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

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

facebook, amazon, apple less so, google more so but less than 2%. i mean, are you surprised we're not seeing bigger declines now that the doj is looking more seriously at that. >> i wouldn't say surprised. it's understandable we get this reflex move. facebook especially, amazon certainly so it's sort of a step back. >> do investors have no fear of this >> i think dough mean't know ho quantify it. i think the things -- first of all there is a chilling effect on additional acquisitions if you thought they had to be aggressive, probably not going to happen and the bundling of products and services. amazon privileging its own, you know, its own in-house brands or something like that. google, you know, if i do a mobile search on a movie and google, google wants to give me the google rundown as opposed to some third party, imdb owned by amazon that's what i wonder about >> google wasn't mentioned in the list of names this is just additional reports but one would imagine it might be in the spotlight as well. >> for sure. >>> now, chipotle stock hitting an

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

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

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

we make the hardware data center look like amazon if you are amazon customer and they have 30, 35% market share number one in the market they are preferred top partner we can help customers and we have many customers we talked about that are adopting the vmware cloud in aws. for the customers who said we're not an amazon shop, we quoted walmart in our announcement using azure. they have an option because we announced a partnership with azure. there are some customers that have other clouds. aws will be first and preferred forev for us, we want every customer that has vmware, azure, alibaba, google, aws, all embraced vmware >> that answers the second question, too dependent on amazon, clearly not and we don't mind having a great relationship with amazon. red hat merged with ibm last week i was concerned about the impact on vmware. they were actually surprisingly quite positive about vmware because red hat seems to like you. >> listen, ibm is a great partner of vmware. we love their services business. ibm cloud has 2,000 plus customers so we're going to partner really well with the team we

the details and what it means for its chances against amazon when we continue after this. hi walter. join us for a walk? i'd love to, but my legs and feet are so tired and achy. walter, you need revitive ! it's the circulation booster! it really got me moving. i use my revitive every day! to relieve my aching legs and feet. it's so easy.... drug free.... and its electrical muscle stimulation really improves the circulation in my legs. i'm back walking this guy everywhere. check it out online. revitive ... fda cleared... clinically tested. only revitive relieves aches and pains, increases oxygen rich blood, and strengthens leg muscles. we've gotta do this. don't suffer any longer! order revitive medic with a 60 day money back guarantee. with free shipping and free returns. someone got revitive. order now and we'll send you our most popular treatment boosting accessories. a $50 value absolutely free! go to revitive.com or call... get moving today! >>> welcome back now, based on stock price, walmart's 2016 purchase of jet.com seems to be paying af. however, in an in depth rep

i mean, we think you'll see a strong earnings faang names specifically amazon. that's front and center. i think you'll also see strength in terms of facebook you know, going forward. and i think that really is the key alphabet will be the trifecta we think a strong earnings from faang this week. >> which of these would be the most important one to watch this week >> i think no doubt it will be amazon look at microsoft last week on the cloud side, a lot of strength you're seeing, the question for amazon you're seeing strength on prime, can you also see it on cloud that's really the key to see the stock going up another 15, 20% i think you will see on amazon then a big focus if you look, you have regulatory head winds across the board can these companies fundamentally improve themselves that's why it's a key week for tech in our opinion to see new highs. >> big tech regulation is obviously front and center for many of these companies. which of those faang companies in your mind is the most exposed or has the most potential issue with regulation coming from the gov

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

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

but this is, amazon is going to deal with some of the same problems that established hundred-year-old retailers will deal with. >> as people learn more about it, will they not do business in pennsylvania how could they ever be responsible for every third party product sold on their platform this is a story to follow. >>> a major airline is making a strange request to passengers, to say don't fly check this out >> do you always have to meet face-to-face could you take the train instead? could you contribute by compensating your co2 emissions or packing light >> i mean, this is part of klm royal dutch airlines' fly responsibly campaign they're trying to cut down on carbon emissions flights only account for 3% of global co2 emissions >> only? >> it's like liquor companies saying drink responsibly >> i thought they were going to say, use smaller shampoo bottles, lose weight >> eat less, stop breathing. >> it's so european, isn't it? >> this is all marketing >> it's green-washing. >> if they were being serious about it, they would make the carbon offsetting compulsory they would say, we're

if the investigation finds amazon broke competition rules, it is company could be fined up to 10% of global annual revenues >> aditi, thank you. >>> facebook facing another hears today, this time before the house financial committee. ylan mui has more. >> reporter: lawmakers wanted the company to commit to a moratorium on libra, or at least start with a pilot program facebook said no, so congressman brad sherman says he's taking it to the top. >> zuckerberg can't print money, yet. and problem number two, zuckerberg is under attack, because he invades the privacy of ordinary americans and sells it to the highest bidders. we need zuckerberg here. >> reporter: guys, chairwoman of the committee maxine waters said today was just the first step. >>> for more on the growing calls to regulate big tech let's bring in representative rho khanna amazon not in your direct, but i'm curious to get your thoughts on the eu taking seemingly a more aggressive stance on much of our large technology companies than we as yes have, and specific to amazon and the latest -- that may be having to deal with in

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

can we say that prime day is doing what amazon wants it to do >> yeah. i think in certain ways amazon is winning i think one area where it really does have leverage and what shineses through on prime day is its massive membership base. that's this loyalty aspect of the prime membership, these people that pay $119 a year to get things like free shipping and whatnot. walmart can't compete with that. there's pros and cons to being paying prime member. we see those shoppers on average, a prime customer, they spend more, so that's very valuable to amazon i think those are the people that are really turning up over this 48-hour event, those paying prime customers. >> those are paying prime customers. what about people new to prime will this get more people to join up? >> amazon for the five years they have done -- this is the fifth year of them doing the prime event. each year they said we added more and more paying prime members. they use today as a tool to add more and last year was the first time the company disclosed how many of those members they have, wh

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

amazon 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

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

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 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

off on monday the two-day event is expected to be a big revenue generator for amazon it could bring in just under $6 billion. it's gone up over time but also gotten longer. competitors are not content giving up the shopping spotlight. you have brands like ebay, target, walmart, best buy, macy's all hosting competing sales of some sort and you can call it a prime day halo effect because last year u.s. retailers with more than a billion dollars in sales saw the average sales jump 54% compared to an average july tuesday some industry experts say this year's surge could be as high as 79% so there's a piece of the pie perhaps for others too joining me now is the ceo and also former vice chairman at target thank you for being here with us today. >> good morning. >> amazon keeps lengthening this event. so now we're at 48 hours but they also started to focus a little bit more on profitability. does that look different this year for prime day are prices going to be as low for shoppers as we have seen before >> i think they'll be just as low. they're just sharing some of the pain with the ven

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

we will get mark's take on amazon another time. back over to you guys. >> thank you very much mike santoli >> ahead on "power lunch," tensions with iran heating up. what it means for the oil and potentially the broader market next plus, it's disney's world and we're living in it is it cornering the film market, and how one opioid manufacturer is looking to the lessons of the crisis as it deals with mounting legal troubles we'll explain all of this when "power lunch" returns. >> and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> overbought and oversold indicators are generally used differently depending on whether the stock is range bound or trending look to buy a range bound market when an oscillator such as the rsi falled into oversold territory and then moves back above it look to sell a range bound market when the oscillator rises into overbought territory and then drops below it. i'm lee bohl and schwab is the better place for traders (soft music) - when i see obstacles, i create opportunities. - wh

. >>> amazon has kicked off its annual shopping bonanza, prime day. this year's event will stretch over two days and is expected to be the retailer's biggest yet. elizabeth joins us with more tell us what to expect. >> that's right, so prime day is proving to be an increasingly por important day for amazon as it tries to lure in more subscriptions, which is that high margin business it sees possible sales growth in the past few quarters. we are looking at prime day this year this is a 48-hour event. it's gone up in length over the past few years last year is about 36 hours we're seeing a demand from amazon to keep people there longer by offering more than a million deals. this is a very international day. this is focused on markets not just in the u.s., but on trying to lure customers from all of its various markets with deals across the board last year 100 million products were sold, but ultimately what it comes down to is how this translates into sales. if you look at the historical data, what you can see is that this one day has turned into a prett

i think it's a great breakthrough for amazon and it can't be bad for her either. >> speaking of amazon, you have prime day around the corner. it's almost been an unofficial kickoff for back to school spending it seems to be a key category and a moment that begins the spending for back to school. deloitte is also out with the back-to-school survey. overall spending relatively flat going back to school spending will be 29% compared to last year >> well, it's also the launch of the new beauty product that's coming out prime day. that will be one of the big launches do i expect them to do well? yes. amazon is taking over, along with walmart and target, back to school electronics are an online business electronics will be the big growth area. i think it will be big for amazon i think that's going to be pretty good. people have worried about the back half versus last year i'm not sure, i think the backpack is pretty close to normal the consumer is really strong. we're seeing great employment, rising wages, record employment. i just don't see how the back half is not going to be as strong eve

deidre >> amazon is in full spending mode and that is cutting in to profits. investors, they don't seem to mind much because higher spend translated in to faster top line growth within day shipping costs may be bigger than expected, but as the cfo noted, they have been down this road before with warehouses and fulfillment, the willingness to spend on innovation in the past rather than deliver profit has paid off so far. so investors remain patient for now. this time around though, things could be different amazon is facing international and of course regulatory challenges >> deidre, thank you alphabet is on pace for its best day since 2015 actually contributing a huge chunk of today's index gains josh lipton has more in san francisco. >> so heading into this print alphabet was lagging the market and tech sector, but today i investors are mil piling in. easing fears of slowing growth that have weighed on the name. and the company gave investors something else they wanted too, more disclosure. revealing that its cloud business is now on track to rake in more tha

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

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.

consumer discretionary, that's amazon and home depot, essentially. let me show you the biggest stock s that were out there. microsoft was almost 7% of the reason we got from 2,000 to 3,000. of all the gain, it was amazon you put these top five together, facebook and apple and jpmorgan, the top ten companies in the s&p 500 accounted for 34% of the gain from 2000 put up the next full screen, from 2000 to 3,000, ten companies accounted for two-thirds of the gain why do we keep paying all of this money for technology stocks what's where the growth is, kelly. growth is hard to find investors are paying anything for growth that's in technology >> so the fed chair, mr. powell, fueling the markets to new highs again today. he have testify today again in front of congress. he said that monetary policy have not been as accommodative as could have been what a change from last december and that the relationship between unemployment and inflation has gone away. the phillips curve he's also worried about the global manufacturing pullback. has the fed just given th

. >> 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

amazon hits the right note and american eagle jumps on the cbd bandwagon. that's all ahead in rapid fire advanced safety technology on a full line of vehicles. now, at the lexus golden opportunity sales event. lease the 2019 es 350 for $379 a month, for 36 months, and we'll make your first month's payment. experience amazing. - my degree from snhu has helped me tremendously. (gentle music) the flexible class schedules allow me to go to work full-time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. souwe, atern new hampshire university, are the ones who succeed. we are the ones who break through. >>> welcome back let's catch you up on a few stories that should be on your radar today. it's rapid fire. here with their takes are leslie picker bill, you're supposed to be in that chair today >> that chair? >> youwant to switch >> no, i'm -- no, no, wait i'm hooked up to the chair can't do that. >> i was going to say. i know our director can handle it alan can handle anything

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 are seeing shares of these big tech companies including facebook, amazon, alphabet and apple trading lower in extended hours. the justice department announcing it will open this broad antitrust review into market leading online platforms and whether they're reducing competition, stifling innovation or otherwise harming consumers as you said, the doj is not singling out individual companies as part of this review but it's looking into search, social media and retail services online so it looks like at least it puts google, facebook and amazon in the firing line here. those companies are not commenting so far. this is just a review but it could turn into a full blown investigation. we've already seen big tech companies in the spotlight as part of that bipartisan investigation into their market power in congress. that doesn't get to the ongoing antitrust cases here in europe just last week the eu opened a formal investigation into amazon and how it collects data from merchants. we're looking at how these companies react and if there will be commentary tonight when facebook reports its e