in terms of amazon, regardless of what happens this quarter it's not the end of the amazon story. in terms of azure, look, it was the slowest growth they have had in the cloud in the last three years i believe, but that's a -- that's because of the size of the base has gotten big, so i still think they can be there and still perform. i don't think the market needs to perform to your point, but i think they will perform. alphabet is the one that i'm worried about because they have had some growth issues even though the growth expectations are very muted, below 20% versus 26% we're used to i shaved a little last week. i own a little amazon. i'd buy more if that got crushed. microsoft is still there, and i bought a little more after the quarter actually i think it's much more predictable earnings stream in microsoft and more analyzable than amazon or the others so i'm happier. >> it was a first-quarter disclosure that have slowdown that really got alphabet, right? >> yeah. >> and that's partly why or a big reason why it's been a lagard compared to its big-cap peers? does the valuatio

the amazons? >> those are the games i don't know that i shifted away from those names, but when you look at the names, fang names. expand it more and look at what microsoft has been doing and look at cisco. they have been performing. part ofs that that when we look at the companies and you look at the growth perspective and the guidance from the various names, by the way, i know when we are talking about the earnings and everybody is concerned about the numbers in the past or whatever, there were names out there that absolutely crushed it. they crush it on their revenues and you are seeing some of it in the semis as well. a lot of these names, there is a lot of different areas right now that you can put your money. financials is the biggest let. everybody knows that it has been that debt stone that when does that finally kick in it still hasn't. >> this is going to be the question for the next many weeks. whether the market is expecting too much from the fed. let's bring in mike at the new york st

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

. >>> 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

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

of these other businesses that amazon hasn't been successful at advertising. can amazon continue to be as innovative and go into as many businesses, guloseri rgrocery, o >> jason, am i a horse's ass don't answer that question that's a separate issue. you see where i'm going. you can look wback at media companies, conglomerates over the ages, and see that history tells you they rarely stay in tact zpl it's a fair point. there are you know all these software analysts would love for that to happen >> you bet >> aws business and we would be kickoffing the retail. the e commerce side. amazon, we think is going to try to keep their business in tact for as long as they can and remember, netflix got the first competitor walmart, early customer. big competitor, so until you start to see a netflix, a walmart say you know what, we are not doing business with this xwaen, then there's what would be the other reason? so we don't think it happens in the investable future. at least right now >> see you after the bell. >> one tiny issue with your idea these are founder control

guy had amazon as the bad. facebook is good so my good would actually be amazon my bad would be facebook which makes a good "fast money". here's why amazon is good. they focused on profitability over the last four or five quarters much to, i think, at times disappointment because people were finally looking at this company as a growth company that stopped growing how do you have this multiple. ultimately i do think they will start to give you north of 20% neutral growth and i think that's really the issue. when i look at facebook, despite the fact that it's been and maybe because of it's been such a great run for the stock the realities around the regulatory environment the libra coin is not a game changer for them revenue wise any time soon their expense margins continues to go through the roof that would probably be my ugly if it wasn't for google which i do think is a great company and agree with karen the problem with google right now and what makes this quarter ugly not the company and not the valuation, n

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

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

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

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

>> yes it's 8 billion for 36 billion at amazon which is why amazon going to 37% aws growth isn't that big of a deal it's large numbers microsoft is 17 billion. >> being third in a business -- >> is okay. >> that's one. two i think a lot of the street were thinking more like 6 billion for analyzed cloud revenue and google is on an 8 billion run rate, ahead of expectations 40% growth in quote/unquote other. so 40% of the revenue comes from advertising and cloud and now you have this other unit with some of the bigger bets they have made starting to surprise to the upside. >> you own it you said. >> um-hum. >> i own it too. >> own it. >> do not own it. >> would you add >> everyone owns it. everyone in america owns it, it's one of the biggest holdings most people are in an index or an active fund tracking an index. so i think it's good for the markets overall to have a company like this where expectations were low come along and say we're not going anywhere, we're still google, still alphabet. >> it's a huge name. >> it's 3% of the s&p. >> right. >> would you add it, absolutely. >> why wo

amazon, fresh all-time highs, underperforming last six months. take it now. >> grasso. >> you know what has no impact with trade or anything going on? match.com. >> match >> match group. >> what match? >> match group. >> whoa. >> up 71% year-to-date if you want to hold back, wait until it reaches 75. >> are you on that >> steve knows a lot about that. >> final drad? >> soar industries. >> interesting. >> for a >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends, i'm trying to make you money. my job is to entertain, educate, teach you, explain it all. call me or tweet me @jimcramer that's it. okay i have had enough, right i keep hearing at today's rally dow gaining 77

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

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

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

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 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

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

analysts are likely looking for clarity on how amazon could respond to regulatory scrutiny amazon is usually quiet on this front but we'll see if tomorrow it is different. back to you. >> all right deidre, thank you. >>> alphabet set to report tomorrow josh lipton here with the preview. josh. >> reporter: so, sara, alphabet is up about 9% this year but it does badly lag the market and the tech sector. street expecting q2 eps of 11.32 billion. the company is facing head quins including slowing growth and increasing regulatory threats with the doj opening the antitrust review some believe google could be in the crosshairs in part given its market share in search guys, back to you. >> thanks for that a lot of after hours moving. >> facebook has slipped as well. so it looks like it will be a bit of a test here of the notion that earnings have been good enough, we have the fed, lots of things moving in the bull's direction. very good action today. >> and regulatory pile on. >> today's record -- >> a little bit. hey, it was a soft open today, too, and there was resilience throughout the da

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

to tim's point, the stocks had tremendous runs, at least amazon and facebook you look at amazon, into earnings now, you have to wonder, do you want to try to play it from the long side into earnings with this headline risk out there. it is interesting, quickly gene said facebook's five points out of ten which i sort of get, but you talk about stifling competition. i mean that's been -- >> amazon, that's their game. >> -- for a long, long time and it is one of the lead lines i'm reading in the doj headline. >> plus there's the political, bezos. >> no question. >> you can't think of this administration who went after at&t time warner when it was a loser there's another element here. >> yes >>> coming up, chipotle, snap, visa all on the move in after hours. their conference calls getting started. we will break down the headlines straight ahead texas instrument, the stock hitting a new high after hitting a blowout quarter. back now with two more parts of the market that are ready for take breakout. we're live from times square in new york city, much more "fast money" right after this. xfi

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

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

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

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

on amazon, nat in atlanta want to know how much higher amazon may be headed. good question on the start of their prime day. >> let's forget about the noise of the next two days whether the prime day disappoints or better than expected this valuation of this company is not based on a valuation metric as the momentum continues, stocks can go higher they have license to spend whatever they want to spend on initiatives. they have done well. you have to give them credit they are one of the smartest operators out there if not the smartest that we have ever seen. >> they invented their own holiday, prime monday. > jim in florida asking about slack. you might be slacking right now. >> i'm never slacking. i own the stock. i bought it the day they came public i'll probably end up adding. i do want to see them report a quarter. get a sense of not only what they have to say but how the street thinks about it in the aftermath. that will probably be -- it's been public for ten days not much to say about it that's where i am with this. >> carol wants to know if gold will con

. >>> 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

>> we still like amazon because of the cloud, you know, focus they have where aws. as you know, they're the leader in infrastructure service. last quarter they grew that segment by about 41% we would expect amazon to continue to morph itself away from what we consider their core business as they kind of expand out into these other thing you guys have well documented their efforts into getting into the pharmaceutical distribution business they have gotten into all kinds of things. so to me the future for them is really the cloud because that is by far the most exciting aspect of their business. it actually encompasses a very small portion of their sales that is an area we feel very strongly about in regards to amazon going into the future i ask you that on a morning when apple got downgraded to a cell at rosen blat and they're talking about the fundamentals of the company deteriorating over the next 6 to 12 months >> i think you're right. apple is by far the company that will be under the most heat. you've had a couple of brokerage firms downgrade them as you mention

amazon 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

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'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

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

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

on the nasdaq, amazon will release its second quarter results. investors would like to focus on how the firm manages costs from the one-day shipping strategy is announced for u.s. customers joining us around the december desk is jonathan ringer. i don't want to get too much into the weeds of the one-day shipping strategy, if you're not a giant firm like amazon or alibaba, how do you survive? >> it's tough. the market is going through extraordinary change well known names are struggling to survive the things that mattered in the past, strong local position, good product, less service, they're still important. but the rules of the game have changed. now retailers need to excel at technology, at data analytics and at innovation. people like amazon and alibaba are changing the game and setting a new hurdle on those dimensions >> how much has the tech structure contributed to that, in the sense that anyone with an online presence has not been taxed the way bricks and mortar businesses have been taxed you have rental expenses, et cetera now it's part o

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

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

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

amazon's bonanza kicks off at 3:00 a.m. monday this year it's over two days it's expected to generate nearly $6 billion in sales for amazon interestingly enough, big names like walmart, target, and best buy now offering up their own deals. this is turning into the new black friday >> it is and the question is will people actually turn to the competitors or will they just go where they think they can get these deals in what's known for just having the lowest prices? i will say, though, stretching it out to 48 hours does give consumers more of an opportunity to do some price discovery by looking at other sites. so we'll see how that translates into sales >> i've been a long-time prime member i am overwhelmed and it's not even prime day yet i am overwhelmed in the lead-up to prime day i've got the coupon that says they're going to give me 10% off prime if i shop at whole foods i'm about ready to say no to cyber shopping all together because i'm so overwhelmed >> wow >> i mean, am i a leading indicator? maybe. >> on the cutting

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

amazon posting a rare miss on eps. netflix trying to recover from its disappointment last week and microsoft regaining the crown as the world's biggest company. for more i'm joined by paul, the lead portfolio manager of the wireless fund. paul, what's the takeaway message for you here >> the way i look at this, kelly, is that as i thought it would be this quarterly earnings season has been decidedly mixed. now one of the things that we have to absorb when we take a look at companies like amazon is some companies are delivering and guiding to revenues better than expectations, which is great. but they miss on earnings per share, and i think it's mostly because of a self-inflicted wound, which is the realities of most of these internet companies. they are going to have to spend more to meet these regulations for privacy. >> in amazon - >> so fizz a company still growing its top line but missing eps for reason of a self-inflicted wound, i think that's okay. >> so in amazon's case it's investing in one-day shipping. i'm su

i would bet on mary dylan if the stock gets hit, buy more the company knows how to handle even amazon, people, we're seeing a return to the 1980s growth today so stop complaining, and stop talking about the fed, and let's settle in to companies that are doing real good job winning in the supermarket, the grocery store. on "mad money" disney is powering more than the movie theater box office i'm sitting down with hazbaro and a snack attack on wall street which company could come out victorious because i'm focused on the 1980s group stocks and comparing hershey and one super star is teaming one chase to help young entrepreneurs jamie diamond is getting behind the guy. he told me himself stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. moving is hard. no kidding. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online

. >> 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 a little smaller of a business but it's expected to grow faster because it's not as mature >> julia, what jumped out to you about facebook last night which, again, put up -- just showed the business continues to execute despite all the headwinds it's facing >> facebook growing as revenue faster than expected what i thought was so interesting, kelly, was during the earnings call last night there was a moment where the stock turned around. it had been higher and reversed and went into the red. that's when the cfo warned that they expect revenue to have a pronounced deceleration in the fourth quarter and going into 2020 and he said that's because of uncertainties around ad targeting. i do think facebook is not entirely out of the woods yet, and they don't entirely know how some of these changes in terms of a regulatory standpoint and in terms of consumer behavior around privacy are going to impact their ad business >> which raises the larger question, is their efficacy driven by the very practices that regulators are trying to crack down on? >> it's going to be a huge impact on t

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 one of the best performers in the s&p 500. we're also waiting results from levi strauss this hour we'll bring you them as soon as we get them. first to talk about the market today barry math is here welcome barry. tom farley still here chairman and ceo of far point llc mike, what about you, had an interesting mix of sector performance today, materials not so hot, real estate doing well, but financials and tech. >> exactly mostly financials and tech consumer remains pretty much leadership across the board. so i think that's been pretty consistent we were talking yesterday about how this calming down of the market after highs last wednesday looked innocuous was a little overheated. i would imagine tomorrow with powell and the next day, it's a two-way risk could say something the market could relax and move to the upside as well as potentially taking back talk about a fed rate cut seems like it makes sense. the open this morning the s&p was just barely below friday's morning low, after the jobs report and picked up from there. th

the german labor union said amazon are depriving employees of a living wage in a statement an amazon spokesperson accused labor unions of conjuring misinformation and argued the tech firm already provides good working conditions >>> facebook will not be launching its cryptocurrency until regulatory concerns have been addressed that is according to the executive in charge of the project. david marcus made the comments in a prepared statement ahead of an appearance in front of the senate banking committee elizabeth has been following this closely everyone is weighing in on this topic. for the most part it looks like most policymakers are viewing it with a certain degree of caution. >> we heard a lot of skepticism from policy americas jerome powell saying last week he has serious concerns. yesterday we heard from u.s. treasury secretary steven mnuchin saying he has serious concerns about facebook's planned cryptocurrency called libra. david marcus, who is overseeing this project at facebook, emphasized he wants to work with regulators on this project before it launches that might mean i

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

maybe we won't jeff bezos founded amazon 25 years ago today. mind-boggling numbers how much money he's made is in then when "power lunch" returns. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. >>> jeff bezos founded amazon 25 years ago today. he has become the world's richest person in that time. that's a big perspective you have >> 25 years. i'm the richest person in the world that would being a great jeff bezos found amazon.com july 5th, 1994. 25 years ago today since then the company has broken many records. turned bezos into the richest person on the planet forbes said he and his family is worth $159 billion he did not make that money evenly across the 25 years but for some sense of scale consider what it means if you broke down into smaller increm