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 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

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 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

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.

>> 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

>> 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

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

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

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

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

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