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

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

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

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

. >> 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

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

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 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

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

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

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