ard businesses that give people good experiences. >> camping, fishing, apparel. >> feel-good products. i try to stay away from guns and things like that. but politics aside, it's just more issues to have to deal with that i don't want to deal with. >> have a great weekend, everybody. right now it's time for "squawk on the street." >> welcome to "squawk on the street." i'm carl quintanilla with sara eisen, simon hobbs and david faber. a remarkable week. the best for the nasdaq since october on the back of the earnings from netflix and now google which will have a monster opening. watch bonds. housing starts were strong. stan fisher talks today and oil flirting with a forehandl.

google surging. >> ge shows strong profit in the industrial's unit as the company continues to shed the assets in finance. >> amazon says hater can hate but prime day is here to stay. the company saw a 93% prime increase. >> the germans say yes to starting the bailout talks. we're waiting for a formal announcement that talks will start on monday to keep greece in the eurozone. >> first up google up sharply on strong quarterly results. up 25% in the past week. it beats the street. the company called out a strong performance in mobile in youtube and program advertising, but it's an increasing focus on cost that's getting the attention today. this is ruth porat on the call last night. >> to be clear, the priority's

revenue growth but pursuing it is not inconsistent with expense management. and as i noted we're just starting the 2016 budgeting process. in my experience the best way to slow the rate of growth in expenses is to work closely with business leaders anchored in data so we can identify ways to prioritize ways to extend the discipline we've talked about. >> a lot of discussion about how much juice ruth porat has to break out new metrics on youtube and revenue up 18 in constant currency. operating of 25 for the past year or so. getting interesting. deutsche today calls their report a dawn of a new era. >> when she was appointed, we all said this could be a new era for the company but there was also a question because google has had relatively strong kcfos.

we know she's a great communique or the with wall street and she understands capital allocation from being at morgan stanley. but i think it was the focus that she had -- the words we just -- you just heard were key and they've been repeated to a number of investors. the idea of using a data driven approach. in terms of revenue affecting their decisions and she mentioned the potential return of capital. now -- they have 70 billion in cash f. cash. it's not sure what they'll return. she mentioned a capital return. when you have 70 billion and one would expect that is a possibility but nonetheless, it's not something you've heard in the past on a google call. so that coupled with what words 18 % top line. the move to mobile is out. >> they got hit hard by the

dollar. it's actually $1111%. >> the move to mobile has occurred and that was a concern, was a concern of many investors in terms of what will be the impact. it ateppears they're weathering that better than anticipated. and we're in an interesting period with the likes of a google netflix, potentially facebook where these growth companies are continuing to show growth and amazon and have had quite a move over the past week. >> and the stickiness on what people are spending. >> 60% higher was the youtube number that was mentioned. it was interesting she broke that out. as part of the new era that people are looking forward to her beyond just the discipline when it comes to expenses and cost control is breaking out that sort of information about what are the growth drivers instead of just ads. >> let's go for more on google.

martin, good morning to you. >> good morning. >> it's been four years since google has gapped up 10% plus on earnings. how much of this is porat and how much of this is the business this morning? >> i think it's some of both. you had her comments just a couple seconds ago. she came in and gave a real fire cracker speech in terms of what's going on and where they're going to take the company. as you mentioned, revenue growth is the way to think of it. to the right is more cost discipline. internally, there's a lot of things they can do better but by no means is this company in bad shape. i think when you look at the competitive peers, facebook growing 50%. that's going to come down at some point. google is still a top line grower, stable margins and with her cost initiatives, they'll probably even get margin improvement and mobile is a big driver here. pricing is getting a little bit better. i look at volume and the click number which was up 18% and accelerated.

for all of the fear that facebook is the darling, google has been a little lost in the shuffle. google's numbers show they're in the meat of everything. >> a lot of us at this desk are old enough to remember that erik schmidt was brought in to be the adult. >> i think what ruth brings in is her hybrid background of tech banking. she's the best of both worlds and i think she's going to be much of a strategist. larry page is still running this company and the board is very tech heavy but she will bring in a strategy view. they'll use a lot of data to drive the decisions and people are going to be more accountable than they have been. i don't think the cfo has been in as much of a controlling position as she will be. >> if she moves forward and starts breaking out the

nonsearch business is that two-edged to an extend. you want to recast the company with the latest technology and increase the stickiness with consumers but presumably search will be the driver for a very long time. >> it'll be the driver. my estimate is search is still 80% of the company. if you take the 20%. the other things are in there like google play but they're relatively small. i think youtube, she hinted that maybe down the road but i think sometime maybe late this year or next year we'll see a breakout on youtube because it will be over 10% of the company and they want to show that. they have a lot of budgets they're going after, a lot of tv advertising, and try to pull that over and they want to show that message. i think youtube is going very well. facebook we'll see them next week, a lot of their content in video is short clips.

their point was you go to youtube and a spend a half hour but there's a lot of audience time going to that and it's stable and growing strong. >> coming into the quarter there was a lot of concern in terms of would they miss particularly the move to mobile as we all know. have those questions been answered fully in your opinion in. >> i think there was more fear a couple days ago if they miss it's more likely on eps and they beat there. i think the comments in the jury room a couple days ago were hinting at maybe it was going to be a miss. i don't think it's completely cleared out but i think the focus and again, making these business leaders accountable, i'm going to be surprised if there's an eps miss any time in the near term and right now looking into 2016. again, there's probably more opportunity for up side on the margin line coupled with 15 to

18%. fx excluded revenue growth. >> what do you predict for the $70 million cash pile? acquisitions? perhaps a first dividend from google? how shareholder friendly will she be with that? >> i would say in the near term through all of 2016 i'll be surprised if we see a buy back or dividend. maybe there's a special dif debd. they can afford it. $70 billion. but the message is there's still room for growth and to maybe push toward 20% growth. where do you find that growth on a $50 billion company? i think it's going to be organic. i would say they'd be m&a before a buyback, a sizable deal. i'm not going to make any predictions. twitter has been rumored. i don't think anyone is going to buy twitter but there could be something of size and i would say that's my bet before any sizable buyback of the stock.

she's expecting the stock to do well. why would you buy back your stock as it's going up would be any simple view on that? >> they're going to add $51 billion in market cap at the open this morning, martin. the does 682 suddenly seem expensive? >> not really. i have a buy on facebook right now $100 target. google is only half of facebook's valuation if you use an enterprise value and google is worth at least half of facebook. i'm not arguing with if facebook's value is justified where it is but google is not worth anything less than half of facebook. >> happy friday. thanks for joining us this morning. >> thank you. >> in the meantime germany voting to keep greece in the euro or at least to keep the conversation going. steve liesman has more on the

vote. >> reporter: the german parliament approving greek bailout negotiations after chancellor merkel gave a strong message of support and a little dig at her finance minister saying the alternative to the greek bailout was not a time-out as the german finance minister said. strong support coming especially from the junior party to the coalition. notice it's to approve the greek bailouts talks, not an actual bailout. we talked earlier in the day with david lipton, we talked the imf insisting upon a debt restructuring and he suggested the gap was not that wide. >> the important thing is that greece's debt service payments don't cripple the economy,

they're consistent with the greece that recovers. we're open to the idea that the problem can be handled by stretching out the maturities providing long grace periods and low interest rates. we proposed that approach because we know under the european rules that's much more likely a way to go about doing this. >> i've been covering europe through the financial crisis for seven or eight years. this caps an extraordinary week raising the question is europe actually working for this week. let's look at what happened this week. on friday as we told you, the german parliament approves greek bailout talks. on thursday the ecb met. on wednesday, early thursday morning, the greek parliament approves reforms it has not approved almost ever and on monday the eu approved a greek bailout deals. these are early. it's just a week and left unfinished are any actual reformed enacted by the greek government but this week goes

down, i think historically as an extraordinary one for europe. >> you can't underestimate the will on the german part on the europe part. >> reporter: they're backed up against the wall. >> and the next question is what does the bailout deal look like. thanks for running us through some of the headlines from this morning. always good to see you. and ifm chief gave an interview overnight in europe reiterateing the need for some form of debt restructuring. here's the quote. the complete package has two legs, a greeg leg that entails an in-depth reform of the greek economy. that means holding a budgetary position that is sound and gives the company solidity and the second leg is that of the lenders which entails supplying financing and restructuring the debt to ease the burden. setting up a potential show down

between the germans and the imf over the imf ease participation in this bailout? >> i say it's between the germans, the imf and this country. there is a broader concern there. i think she's softening her position. i thought they wanted a promise going into the negotiations that there's debt relief. now i think she just wants a deal by the end. i feel as if they're softening their stance to make this work on monday. >> their credibility is on the line as well. >> the political desire there were six votes through parliament to keep the euro together. it's something the people should take note on. >> some of the six-month gains on europe. 20 % in switzerland, 14% in spain. >> we are engaged in massive qe as well. that's what the crisis did was challenged it.

during the last significant8 sessions it's risen. >> they also like the weaker euro. >> we'll get a lot more on ge earnings which we've not mentioned. that stock is on the move and also a first look at the airline's new plane at united. take another look at the premarket. the nasdaq track for the best week since october. we're back in a moment.

this morning. profit was in line with estimates. the disposition of assets continues. mary thompson has been monitoring all things ge at hq. >> reporter: those were muddy numbers in the press release. the firm is in the midst of selling assets. this is the company that's aiming to generate 90% of profits from the industrial businesses. the quarter's 5% in core industrial profits strong enough for the company to raise the low end of the range to 1.20.

on the call ge's ceo saying the purchase of the france power giant and electrolux are still expected to close by the end of the year. both of those deals currently delayed because of government reviews. in the quarter the firm's industrial profit along with the profits by ge capital, the ge capital businesses it will retain came in at $0.31 a share. revenue from industrial operations plus those ge capital businesses it was keeping were $29.66 billion. ahead of the estimates. the total came in at 32 $.74 billion. here's the ceo on the call. >> we're making profits broadly. simplification continues to

deliver results, and our targets are on track. >> the two businesses reporting a decline in margins of health care and gas. profit in the unit only 12%. that was better than some analysts had been expecting. and the backlog of orders coming in at a record $272 billion. back to you. >> thank you very much. in the meantime, boeing taking an unexpected jump. a quick check on futures. last trading of the week and a relatively mixed open it would appear. more "squawk on the street" straight ahead on cnbc. it's a fact. kind of like shopping hungry equals overshopping. t-mobile now extends your coverage beyond the borders at no extra charge.

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an unexpected charges second unexpected charge for boeing ahead of earnings next week in concerns of contracts with the u.s. air force. before it was wiring no? >> reporter: this is slightly different. there was a charge for the tanker program of 425 million in the second quarter of last year. here's the fresh news this morning. a charge post tax of $526 million. that's why shares of boeing are under pressure premarket this morning. that works out to $0.77 per share. basically boeing says they have found some work in the testing and the design of the kc fueling tanker that will require extra work and by the way, they are going to be updating their

guidance when it comes to full year earnings per share guidance next week when they report their q 2 earnings. that clearly is going to have to be altered when they report their earnings next wednesday. a big charge from boeing of $536 million post tax. >> does it say anything about the relationship between the military suppliers and the government that they can shift that back to the feds as they might have done in the past or the air force in this case? >> reporter: right. remember, this is a fixed price contract of $4.9 billion. when boeing won this deal people said this isn't like past contracts where you can push that off on the government. they're locked in there. when they won this contract initially. and this is the second time in two years they're taking a hefty charge related to that program.

>> phil, thank you. we'll be watching boeing. and the opening bell with a host of stocks that opening bell five minutes away. stay with us.

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week. the iran. we're talking probably the biggest single gain in market cap on an open since apple set a record a couple of years ago. they're going to add $51 billion in market cap. that's that's. >> the stock was up yesterday heading into earnings on the back of an upgrade. we'll talk to the analyst who made the good call ahead of the earnings report. this was google's first beat. the numbers were good and ruth

porat assured investors she was in favor of cost control. >> it shouldn't have been a surprise. it was just how focussed she was and perhaps they were. whether or not it results in their desire to pursue these monoshots, so to speak, not just self-driving cars but a lot of other things it remains to be seen but i've been hearing listen, they hired the fewest people they've hired in a quarter in a long time and that was the key as well. they're still hiring but the numbers came down. >> we'll see what happens. and we got good housing numbers. starts rose 9.8%. a good sign the momentum continues there'ven even though it was driven by multifamily homes. >> pushing real wage growth to

the lowest level in seven months. >> yellen said the senate banking committee should expect wages to continue to tick up. she was aptoptimistic on the labor market. >> at the big board said it's ooma, it's a provider of internet-based phone service celebrating the ipo today. cyber security company on the other side. and we'll talk to the company's ceo later this morning on squawk alley. the dow begins the morning 230 points below the all-time high. s&p is 10 points below. we know what the earnings from netflix and the earnings from google with week, the nasdaq 100 has claimed the 15-year high. >> if you look at the stats, the beats coming in at about 50 companies on the s&p 500, about

three-quarter of them have -- a lot of banks were good and as we said today, the earnings today big tech comes through next week. >> if you look at the groups in the s&p opening higher it's technology and industrials driven by beats not just in ge but also the honey well coming in better than expected. technology is the best performer in the s&p right now. best performer on the week with the nasdaq at a record high. >> dave cody singled out at delivering alpha for being commended, if you will for successfully running a conglomerate. >> earning the rights to be a conglomerate conglomerate. >> it was interesting it came out of nowhere. that stock up 2% but technology has been -- netflix alone this week which is up yet again, only 1% today but nonetheless -- >> what do you do with netflix

with more than a 130% rise so far this year? >> i'd like to mention hertz which has finally restated their financials. they're rising quite strongly. 17 % gain. total restatements as the result of the accounting errors they have a new ceo promising cost savings of 300 million. there's the spinoff of the equipment business and a promise that then you will get a return of cash to shareholders or there's a billion return to shareholders and it's back loaded in response to that spinoff. arguably the bulls would say the worst days are behind us. down 30% on a 12 -month track. >> that has been a value name for a long time among the hedge fund crowd. there was a thought there was a lot of pricing power in the

business. >> they did a controversial deal to make sure they had it at airports and it didn't work out. >> not yet and the previous ceo out, but they've been waiting for this for a long time and there seems to be a lot of relief today and that stock up dramatically. >> i want to hit on the m&a front this morning. a deal we've been following which is williams. you may remember ete, a fixed exchange ratio. we've been watching ete shares go down but yesterday the company is confirming they have entered into a confidentiality ri agreement and there is no standstill associated with that. there was an ask by williams for a long term then down to 30 days but then none at all. the question now is does williams have another bidder or is it because they're saying let's get to it and associate a deal. the spread in that deal has

closed sharply as you might anticipate given no standstill at all. we'll watch that one now that they have negotiating. >> speaking of energy, slumber jay jay is one to watch. a lot of discussion about how well they've managed to perform on efficiency and margins and a huge global downturn in spending. they got a bit of a pop on the possibility that there are some parts of the world where production might be on the rise as opposed to the decline. but slb within the top 15 20 gainers on the s&p. >> it's still engaged in the stock buyback. i think it was half billion dollars within the one quarter. the longer view -- >> this one on the downside finding itself in the bottom of the s&p is ma telecoming out with a new ceo. the results yesterday beat a

little bit and the stock was up after market but it is lower right now. bar barbie sales down. obviously the strong dollar is weighing but they have to turn around some of their key brands. hot wheels did okay. fisher price maybe turning around. is it the elsa dolls? is that killing them? >> they exited the window. >> it is interesting to note that hasbro -- time has a way of changing things. >> there was a lot of optimism. they've got this new ceo. >> look at the differential will there on the performance of those two companies. >> he was a long-time board

remember. there was hope he would be able to get them to make more innovative toys that would sell better. it's going to take time. >> top loser today is best buy. there's a downgrade to underperformed by bank of america merrill lynch. it's down to almost 5%. >> i do wish cramer were here. i'd love to get his take on kansas city southern. the earnings look at some of the internal metrics. commodity carloads down 6 versus an estimate of down 5.9. but ksu is doing okay. some of the other rails not far behind it. i wonder if he would consider this a moment to start thinking about getting interested or not. >> he's been negative on the rails given not to mention coal loadings and things of that nature coming way down. that's a big move in kansas city southern up almost 7.5%.

we might mention the fact that facebook is up 2% on no news other than google and earnings to come but that's a big move for facebook following google. >> price line is also up substantially as well. >> google as added a netflix. 50 billion in market caps. that just to put knit some perspective. what a week for technology whether it's amazon facebook google netflix. even apple has had a decent week. >> dow is down about 653. let by ge but intel dragging it down. >> reporter: europe is a little quiet this morning but china had a rally up about 4%. utilities weak and no action at all. industrials are floundering. i want to point out honey well. they are emblemmatic of the

problems of the big industrial averages are being. earnings were up 9.4% on honey well. look at the revenues. they're down 4 .5%. that's a little weird and organic sales are up 3%. you know why this is happening? because of the impact of foreign currency killing the revenues even though organic sales if you compare apples to apples were on the up side. this is one of the best-run multinational companies in the world, big in area space and environmental controls but look at the revenues. all three segments saw declines year over year because of foreign currency. they're stuck at 40 billion. they can't get out even at 2016 kwh which which you know is optimistic. the impact of foreign currency is killing them. honey well has held up very welcome paired to other multinationals. this is a darling because it's so well run over well.

the stock is up about 3% this year and they raised their low end of the guidance this morning and that's helping them. but look what's going on with the sectors. industrials, materials, energy anything that's dealing in the multinational space is having a horrible time. energy down 4 %. materials, this is the last month. industrials down fractionally. the companies that are with honey well in the global spaces trying to compete overseas were businesses are having a tough time. so your emersons dovers fluor, all down because of slower global growth and the concerns over the strong dollar. it is a struggle out there for some of these big multinational companies. in the u.s., i want to conclude this week on what's going on on the banks. sun trust, similar themes. net interest margin is essentially flat. it was up a couple points better than expected, but loans

were basically flat. here's the trend. this is particularly in the regional banks. net interest income is flat quarter over quarter. the margins are flight to slightly down. and loan growth is flat and a few of them up slightly. we are not getting the things we need. more interest income and more loan growth right now. nonetheless, if you look at the kre, you do not get the sell off that you normally get in banks going into the quarter and that's because everyone is stuck on higher interest rates are coming. that's going to help the banks. this mantra will not die. it's unusual not to see selloffs in the banks but it's because of the higher interest idea. a couple ownershipsiposs, one of them just opening. the one that just opened ooma which is a low-cost phone and

communication service company, this is a voip they priced at below expectations 13. the price talk was 16 to 18 and that just opened at $12 and change. i believe it was $12.10 right behind me. a little bit below expectations on that one. right now the dow is down 59 points. carl back to you. >> thanks very much. let's head to the bond pits now. rick santelli at the cme group in chicago. >> reporter: good morning. today's numbers are enlightened. interpreting a fashion that keeps inflation lower and it is the favorite of the federal reserve and the lowest metric. if we look at other inflation indicators, they were affected by the rental aspects which was one of the driving forces indirectly and today's pretty strong housing starts and permits. multifamily, it's all about

multifamily. listen, the fed says data dependent and today's housing numbers are good data points, al beit which area and how it was affected by the zero interest policy but the fed is starting to -- markets are starting to listen to the feds speak. to yellen's mierk phone. they're painting themselves in. maybe september is getting on the table in trader's eyes. look at a two-day of two years. they're up four base points on the week. a two-day of 30s a different picture. it's down two basis points on the day. down tent down ten on the week. since may 1st, you see that chart, it has been almost steady at 155. let's put all this together. it seems as though our treasury curve, especially the ten-year part of it is following the

bunds. the bund curve rather tightly correlated but the yield curve from the front to the back is listening to the notion of a potential tightening. normalization, it's about time so let's look. tens minus twos you can see the flattening. it will be steepening. but it's flattening and if you hook in the fulcrum of the curve with the long maturity we showed you early, the flattening jumps out more dra matmatically tests 1.40 1.40. how many times have we talked about under 1.10 close in the euro. of course the reason why is because the fed speak is having an outsized affect on the dollar index as you see on the start, starting on tax day of this year, and see, that's the last time we're at these levels in the dollar index. simon hobbs, back to you.

>> we'll see what the vice chairman of the fed says in 15 minutes. let's go to the new york americaen tile. >> reporter: the energy complex all over the board. we're watching crude oil flipping between positive and negative. wti the august contract $50.50. everyone is watching that $50 mark. key technical support level. in terms of the brent futures contract, we saw august go off the board yesterday. august wti will go off the board next tuesday. that creates a little volatility. i want to mention the fact that we're watching gas prices. $2.76. 4 cents lower than a couple of months ago. what's interesting about the rest of the complex, you have heating oil prices a little bit lower, strong strength in the gasoline today. usually crude and arbob are moving together. today it's in opposite

direction. probably the stronger dollar pushing crude into negative territory. >> thanks very much. pressure on the energy stocks as well. up next as legal charges mount for some of the big banks reporting, jim stewart of the new york times on why we so rarely see a conviction. and later, the united cfo, and fischer set to speak at the chamber of commerce. he'll be talking at the top of the hour. the dow down 64 points. "squawk on the street" will be back in a minute. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.

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at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. ♪ amazon says get used to prime day. the vice president in charge of amazon prime saying quote, going into this we weren't sure

whether prime day would be a one-time thing or if it would become an annual event. after yesterday's results, we'll be doing this again. the sales broke all previous records and exceeded black friday sales. did you buy anything? >> i did not but i read the press release which i found amusing because amazon broke down some of the top sellers around the world. in germany kroks sandals and an da huggie's diapers. in the u.s. people are buying lord of the rings. >> there were a lot of things that were sold out. there was a lot of negative comment during the course of the day. 50% of all amazon prime day social media sentiment related to sadness they said and people who felt they'd missed out. >> i did not participate.

there was a lot of backlash on social media. >> the amount of information they must have collected from people who were signing in for the first time ever and looking at prime for the first time ever, people called it a treasure-trove of data will amazon will use down the road even if they didn't sell them anything. >> the nasdaq pushed into record territory on yesterday's session. let's catch up on what's happening today. >> reporter: good morning to you. we did see the nasdaq surge into the close yesterday and this morning it is the only positive index. it is slightly off the morning highs here. again, continuing to hit record highs for the nadsdaq composite. we're still about 2% away but if you look at it on the grand scale of the week the nasdaq having the strongest week since october when it gained 5.3%. we'll see if we can set another

record into the close today and why is the nasdaq higher? it's because of google. i know you've talked about it today but it's worth hitting again because of the strength out of the stock. it has a big waiting and moves things significantly and the earnings report was almost excellent across the board. blowing past expectations by $0.29. really wall street liking what they're hearing across the board getting one initiation to buy even though stocks are still surging right now. analysts liking what they heard from the ceo. it's worth repeating because of the strength we're seeing in the stock today but also strength out of big names like facebook tesla, netflix, not a lot of news there but maybe they're just getting a little lift from what we heard and saw from google. >> thank you very much. when we come back, more of the

early early movers this morning. and bmo upped google ahead of the earnings earlier in the week. congratulations to them. we'll get that analyst take with the stock up better than 12 %. the dow down 61 on the weakness in some neck names there. "squawk on the street" will be right back.

google says one of the self-driving cars got into an accident causing minor injuries to the employees on board. they say the car was rear ended by another vehicle. it was a lexus suv that was outfitted into the technology. the three employees complained of minor whiplash following the collision. google also provided an animation of the crash. >> why? why do they do this? >> i think that's it right there. yeah. >> are those all automated cars? >> no. those are all driven by human beings which is the problem. >> oh they're on the open roads. >> and they argue that this is a good example, i think the crash, of why self-driving cars would

be safer. they wouldn't be operated by humans with their errors and they'd be completely programmed by the computer. >> it wasn't the self-driving car's fault by the look of the animation. >> right. >> it will all be computers all the way across. >> we can all drink cocktails. >> we'll come back with breaking news on sentiment. you have look at a chart of google today. we'll be right back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

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♪ >> good friday morning. welcome back to "squawk on the street." once again the story continues to be in tech and the nasdaq which sets an historic high today.

5191. there's weakness at the dow and the s&p. oil back close to session lows in the euro back to a legislation low against the dollar. >> stronger dollar. all week long. google shares with a historic gain this morning after reporting what some called a stellar quarter. >> united cfo airlines will join us in the first on cnbc on a new outlook overall. and zblsh. >> the survey says. this stacks up against the june final at 96.1. just to put some perspective on this j january we came in with 98.1. everything else is anti-climatic. the weakest month was may, may final at 90.7. the slips in. it's a bit disappointing based on expectation but it is only the preliminary read.

we'll continue to pay attention to all the other dynamics. 234 in tends but how much twos and threes and fives are up otherwise known as a bit of curve flattening. back to you. >> all right. we'll come back to you in a little bit. no surprise google is having a huge day beating apple's record for the biggest market cap gain on earnings. an estimated $51 billion at the open alone. our john ford is here at post nine with more on that open and the quarter last night. >> it's mind boggen when you think about it. google went from down a decent amount to up about 18% over 12 months just in the past week. and a big part of the reason why, this earnings report breaking it down. the good news was that desk top advertising was stable. analysts had been worried about that feeling like there might be a bit of a zero sum game developing between facebook and google.

looks like that's not the case. program advertising, something we've talked about, it's damaging certain parts of google's business. and also where google had shifted the way it handled mobile searches saying it wasn't going to prioritize sites that weren't optimized for mobile that hurt them for some areas in terms of the number of clicks on ads but it helped in a way because they're able to charge a higher people higher price for the ads. on mobile youtube ads were up 100%. the youtube business helped balance out the mobile-geddon affect. and then you have the expense discipline. not spending as much on data servers and they slowed down on

hiring as well. if not for a 1.1 billion currency head wind the growth would have been 18% year over year. >> 70 billion in cash. no dividend. when does that change? we've been through stories with other companies with similar amounts of cash and the dividend finally came. >> they don't have the same sort of pressure to do it but people are hopeful with ruth porat, they will return cash. i have to mention, the new cfo on this call has only been with the company a little over a month. she was the best prepared cfo i'd heard. she had command on the call but historically historically, she's spent a lot of time with larry page. they liked the amount of detill.

>> facebook was trading higher. it used to be google versus apple. the fight is google and facebook in the fight of ad dollars. >> people saw it as a zero sum, but it looks like a move toward program attic advertising, it's benefitting companies with good information on consumer investigation. google and facebook have that. part of the reason facebook is up today is because you see the program was strong. you see that effect in earnings. that bodes well for facebook. >> you see the consumer continuing to change the way in which they consume these materials. they consume more and more and more. and that's what they're saying about youtube and that's what facebook will say next week as well. >> together they are breaking ground. >> video normally important. down the line we could see this come to a head. we're expecting facebook to focus on video product and get

more professional video content on facebook. that could steel some of youtube's thunder and then we could hear concerns again, youtube was a big part of what helped this quarter. maybe facebook will be a threat to youtube and google going forward but for the time being, both of them doing quite well. >> in the meantime let's hear from the executive of the morning, cfo ruth porat. >> we have a breadth of opportunity but pursuing revenue growth is not inconsistent with expense management and so as i noted, we're starting the 2016 budgeting process. in my experience the best way to slow the rate of growth in expenses is to work in data. together we can identify ways to prioritize resources and continue to extend the discipline that we've talked about. >> our next analyst made an interesting move.

he upgraded google ahead of the earnings last night and this morning, he's raising google's price target another $100. dan salmon is joining us this morning. >> good morning. >> we were looking at a week-long chart of google which is up 23% in the last five days. we were like could you have got in ahead of this given the information that was -- to a certain extent obviously in the do name that the new cfo would speak and give a good account of herself because we know her well from morgan stanley. would people have gotten ahead of this like you did? >> yeah. i think the story at google was coming together before ruth had her first call last night. the message was about cost control and cost discipline and focusing investment on key growth areas. last night it crystallized.

>> where do you build from here? are the risks to the downside after such a strong move? >> i think investors wanted to own this stock. it's obviously a much more reasonably valued stock versus isa facebook with a higher multiple. we have to sit back and ask ourselves where can the estimates go and i think in the near term that's about the cost side and seeing where people think the margins can expand to over the short term. i think the stock can continue to move up on this alone but we'll have to sit back and re-examine the revenue growth. >> and investors were happy to hear the spending is going to be contained but in terms of the lock long term growth of the company, there were concerns about making money on mobile and pc. is it giving us some sort of road map on how it plans to do that? >> if you look at youtube, there

were a number of metrics they gave to show the growth. but it was the growth of viewing on mobile. i've never been overly worried about google's position in mobile. if you look at the base behavior of search there's lots of opportunities to do that on a cell phone. montization has to come along but i was never terribly worried about their positioning there. is that obviously catching up with youtube leading the way on that? absolutely. it's starting to come. >> talk about some specific risks, if you will. there's the risk of facebook diving more into video going forward and kind of weakening that position that was so strong for google. anything else that you see on the mobile montization front that could be a problem for them? >> well google's base business is search still, and continuing to build the products for users to effectively use their cell phone on the go is going to be

what drives their mobile business. for facebook it's a little bit different. we use that differently as a mobile product. it's more something you use while you're spending time. they're obviously rolling out a lot of great ad products to monetize on mobile. but i do think they're very different stories when it comes to mobile. they're capitalizing on slightly different behaviors and advertisers understand that and they use them for different reasons. >> while you clear your throat give us a sense on value here. obviously the multiples moved up today but people are very much encouraged by the top line growth rate and what you're saying. where do you start to get worried in terms of a multiple? >> i think if you look at google, it's different from facebook which is clearly a growth stock. gookl is much more of a value stock. for me i look at where it trades against the eps growth rate. we moved our target at 1.21 pe

to growth rate. that's in an acceleration rate in 2016. investors are going to start to think about the sustainability of it. i think there's plenty of support for the multiple at these levels. the question is is there another leg up for them. >> finally, can we just beat the dead horse of the would be twitter buyout. they've made enough to buy twitter two times but people don't believe it's going to happen. >> yeah. i mean twitter situation is obviously one that's changing a lot right now with the ceo transition. i think that company really wants to continue to push forward as an independent one. obviously earlier you were discussing google as a controlled company. twitter is not. there are different circumstances there when you consider what can happen but i think right now google and twitter have a great partnership in search. it's helping both of them a great deal and we'll see where

they go from there. >> do you think ruth porat would be a discipline that might prevent that from happening? >> i think she'd make sure the valuation was done properly. the founders are the ones who i think drive that type of decisioning. but we'll see where they go. >> have a great weekend. thank you for joining us. >> we're keeping our eye on the story in chattanooga. four marines were killed in tennessee after a gunmen opened fire at two u.s. navy facilities in chattanooga yesterday. we are live in chattanooga this morning with some more on that story. >> reporter: good morning. you know the front page of the local paper really says it all. nightmare for our city. this is the sentiment people are expressing as they stop by here to drop off flowers and american flags kind of a makeshift memorial shocked that something like this could happen in chattanooga. witnesses coming back to reclaim

property, going over the events again and again in their heads, one man telling me that the sound of gunfire sounded like a jackhammer. investigators have been here on scene all night. this is where the gunmen first stopped and sprayed some 25 bullets into the recruitment center before driving to the center and opening fire and killing four marines. they are delving into his social media trail trying to find indication of a possible motive. they're looking at this was the end of haum adawn. right now they say he wasn't a person who was known to federal authorities. right now they are focusing on some travel he did in the mideast last year from april to november. we're told he entered an exited out of jordan so a lot of unanswered questions right now

but authorities working around the clock, sara so answer them. back to you. >> thanks for the update. united airlines offering an early look at a new plane that won't even be a part of the fleet until 2018. up next the cfo of united joins us to talk about that and the state of the airline industry and the company's struggling stock price. "squawk on the street," we'll be right back. if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. share your summer moments in your mercedes-benz with us. ♪ i built my business with passion. but i keep it growing by making every dollar count.

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♪ >> united airlines giving a sneak peak of the new jet that will be part of the company's fleet in about three years. we have the cfo of united. >> reporter: thank you very much. i am the cfo for united airlines. we're going to talk about the a 350 we'll will b flying in a couple of hours but i have to start with the question that so many have asked about which is the computer outage last week and the continued problems with the computer systems. have you solved this? >> any time we have a situation like what happened last week our first focus is the customer. we want to reaccommodate and then get them to their

destination with as little entrungs as possible. we are a complex system. our focus is on technology going forward. we've been a leader in the space whether it's the use of the mobile app or the deployment of personal devices so they can better handle customer needs but to lay the concerns our single largest bucket of capital investment this year is in technology. >> i appreciate that but at the same time, i've had this conversation not only with you but i had this conversation a couple of years ago with your ceo and at the time he said trust us, we can are fixing this. it continues to happen. when you look at the customer satisfaction ratings, it is reflected by the customer's ranking you lower than other airlines. >> we recognize that and we know there's room for improvement and we've seen a lot of em proouchlt this year. the first quarter, the weather was worst this quarter tan first

quarter last year and we had 17,000 fewer flights. >> let's talk about the a 350. we'll get a flight in it a little later. how is the fleet overhaul process going along in terms of bringing in newer, younger aircraft. >> you're investing in assets to fly for 25 or 30 years. you want to make good sound decisions with respect to the aircraft. the 5 the. this is more fuel efficient than the planes it replaces. >> you hear this all the time from people. look at jet fuel and how much it's come down in the last year. when people ask you why don't you lower fares, what's your response? >> we are very much a market-driven business and just because another industry has cost inputs lowered, you don't

see the charge to customers get lower as well. if we look at average fare competition is alive and well. >> final question. looking at what you're seeing in terms of capacity wall street is worried that you'll add too quickly but the demand is there. where's your capacity growth this year and could you add more to that? >> we could. we could have a better balance between supply and demand. in the past during good periods of time, you've seen a lot of capital investment. that scares investors. you've seen stocks come down off the high but at united airlines we're focussed on balanced capital. we'll be flat to up one. >> united airlines a big day as they give us a taste of what the a 350 will be like when it joins

their fleet in 2015. >> when we return regional banks outperforming the broader financial sector over the past few months. are the regionals better positioned than the big banks right now? what happens if we get a rate hike? william rogers will talk to us about that. you focus on making great burgers, or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll

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sun trust peatbeating on the top and the bottom line. joining us fistis bill rogers. happy friday. welcome back. >> thank you. i was watching your coverage. i've got to start by saying our hearts go out to the great people of chattanooga, the teammates we have in that market, it was a tragic day, and a great american city and we're going to be part of that healing process. >> a lot we don't know but we're keeping a close eye on the story. as it relates to your earnings and bank earnings we turn to net interest margin.

you got the increase. have we seen the bottom on that? >> i think we're nearing the bottom. if we look at our portfolio with the exception of cni, all the loans we're putting on the books are e yal or higher yields. i they we're close to the trough. net interest income, we hit that last quarter and we'll continue to see that increase. >> obviously there's always the fees you can collect from a host of other kinds of businesses. we keep hearing from young ceos of young financial lending startups that argue they're moving into a new kind of banking where fees are not as important, i think we just lost that shot out of atlanta. could you hear what i said? >> i could, yes. >> do you feel any threat from a younger generation who doesn't want to pay a fee for anything? >> well look we're part of the same thing. we're involved in businesses

like light stream and online activity. i think you've got to play in all sorts of these businesses and be responsive. the consumer gets to dictate the terms and we want a bank that responds to that. >> can you talk about what you're seeing in terms of lending, plain old loan growth. there's a great piece about the big banks coming out and showing signs of a lending rebound. >> i think we're starting to see it. our loan growth was flat quarter over quarter but the health metrics we look at in production and pipelines and utilization and commitments are up. for us i think it's a good signal. it's more in the core bread and butter capacity. adding trucks and that real core system capability building type lending. i think it's positive. >> in your current outlook, why do you assume there will be no

rate rise this year from the federal reserve. is that to be conserveative in modelling the business or is that showing where you are regionally as an economy? >> i think there's two sides of the coin. as far as our own company is concerned, we didn't factor in a race increase because we wanted to make sure we kept the discipline in our system to improve our efficiency. i think we will have a rate increase by the end of the year. we'll see gradual rate increases over the next year but for planning purposes we wanted to show the discipline on our company's performance. >> what would a rate increase mean for your business? a lot of people are betting on the idea that we're finally going to see a steeper yield curve and the path to profitability with that. >> obviously, it's good for banks and we're positioned to be slightly asset sensitive. that will be disproportionately

better for those that are positioned that way. it's good for banks and i think it's good for the economy. i think there's commerce sitting on the sidelines. i think people are waiting for the signal that we're in more of a recovery. i think in addition to what it does for the balance sheet, i think it also increases business activity. >> congratulations on the quarter. thanks for talking to us. we'll see you next time. >> thanks so much. >> bill rogers of sun trust. >> still ahead the german parliament has becomed the idea that talks just start with greece about a bailout but the fight is on keeping greece in the eurozone. we'll talk to the ambassador from the european union to the united states about that when we come back.

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good morning, everyone. here is your news update at this hour. authorities are continuing to search the computer belonging to mohammad youssuf abdulazeez. the gunman who killed four marines in chattanooga yesterday. they have not found an extensive online presence and have not uncovered evidence that he was directly connected to isis. mexico's legislature meeting with members of the security last night discussing the escape of el chapo. saying anyone who helped them escape will be punished.

smoke billowing over athens as fires burn through woodland around the capital. residents were forced to free. and ukrainians are marking the anniversary of downed flights in which all 298 people on board were killed. people brought flowers to the dutch embassy because the majority of the passengers on the flight for dutch citizens. that's your news update at this hour. let's get back to "squawk on the street." another step forward for greece this morning. the eu now approving short-term loan of 7 billion eurozone to greece which should reach the country by monday. could this be the beginning of the end of the crisis there or is it too soon to tell?

it looks like we are a step closer to resolveing the crisis keeping greece in the euro. greece faces an important deadline on monday. where are we in your estimate administration estimation in terms of getting greece there. >> i think there were important steps taken in the decisions that were taking. this has been approved by the greek parliament and by a number of others. the commission has been able to put together a bridging loan which will be available to greece next monday enabling it to meet the international obligations and also hopefully enabling the banks to reopen. we are seeing now, i think, the beginning of the end of this crisis and the beginning of beginning hope to the greek people. >> are you confident greece is going to pay back the ecb

monday? >> i understand that's why the loan is being made available. >> the imf is taking a hard line here requiring that as part of the third bailout solution. do you predict that the germans will soften on their position for debt relief and restructuring? >> i think the firm opposition of germany is to what is called a haircut. i don't think they've ruled out the possibility of further debt restructuring and i think that probably will be a part of the future discussions on the next bailout. but it's important to remember that greece's immediate debt burden is relatively light because it's been given a long grace period for repayments and i think the focus has to be in getting the right economic policies in place to go forward. >> if kcan you give us insight on the pressure that may have been applied by the united states

whether they pushed the eurozone last weekend to accommodate greece to an extent that oerds they might not have done and that perhaps the austerity that we see in response to that is even greater as they try and square all the circles. secretary lew was in berlin yesterday. the united states is a lead power within the imf which is making the demands as you indicated. what is the role of the u.s. in shifting the europeans? >> well i don't think it's a question of shifting the europeans. the europeans are conscious of their responsibilities but we are the two largest economies in the world and we have a huge interest in our mutual success. we have an excellent regular dialogue with the united states about economic policy. the united states has been contributing positively to this discussion in recent weeks. but at the end of the day, this was a european decision which had to be taken by european leaders about how to reconcile the views of the greek government and the democratic

mandates held by the other eurozone leaders and that's why i think we were able to find such a good solution at the summit over the weekend. >> you see, the reason i ask the question is because the greek deputy prime minister in the run up to the vote on wednesday actually credited the united states and thanked them publicly saying the deal would not have been achievable without the direct support of the white house particularly on debt. it would appear to the greek people attempting to portray this as some sort of product of u.s. influence, to say, at the very least. >> we are strong allies with the united states. we have similar views and, frankly, we talk across the atlantic on a regular basis on all these issues and i know president obama and secretary lew took a close interest in these issues because they have a direct impact on their economy. but i think european leaders find solutions for the people of greece and the people of the

eurozone as a whole. >> finally, throughout this whole progress the greeks will be painted as a bully and trying to set the rules for the region as a whole. do they have any reason to bow to that criticism in should they be doing things they're not? >> look in these kind of negotiations, many things get said, many public positions get taken but the eurozone at the end of the day, we're a family. we're in this together. everybody wants a success for greece and everyone wants the eurozone as a whole to succeed. so the important thing is that after all the disagreements we have found agreement on a way forward which is now supported through the greece people by all the parliaments of the other member states concerned and this is what's going to provide a path forward for greece to change its structural -- to make the structural changes to the economy it needs and to be provided with a further bailout in order to give it more of a

spike to rebuild the economy and return to market as other countries have done. >> broadly, a lot of people have looked from around the world on this crisis and have been critical on the eu and brussels for this entire introproprocess, wasting time on the meetings into the middle of the night. what lesson has been learned and how much time do you think has been waistste bidd by these negotiations? >> i don't think any has been wasted. we are trying to reconcile the differing views of countries. each of them with their own views and process. all of the finance ministers from other countries responding with views about what should be done with their taxpayer's money. it's a complicated process. the important thing is we do

find a way forward and agree and act on what has been decided. that's what you're seeing decisively this week. the banks are opening, and the bridging loan being made available. i understand sometimes from the outside it looks messy but frankly, all democratic processes can seem less than elegant but that's the price of democracy. >> well put. thank you very much for joining us on what has been a monumental week for greece and europe. >> when we come back the financials seeing significant gains in the last week. trading at a 7-year high after the recent losses. can you still get in on the rally is the question. we'll talk about that when we come back with the dow down 78 points.

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can your business deliver? ♪ welcome back to "squawk on the street." check out shares of best buy down by about 6% in early trading. they are downgraded to an underperformed rating from a prior by rating. it's a second half -- they think best buy will dorelltively well but a tough day on this friday for best buy. >> one of the biggest losers in

the s&p. the london wheal case has come to an end. no charges. even after costing even even. our next guest says rogue traders will not be held accountable. jim stewart, thanks for bringing this up. >> here we have one of the biggest alleged financial frauds over 6.2 billion in trading losses covered up with inflated valuations. the bank pays fines and the guy at the center of it suddenly nothing, not even civil charges. >> didn't he make a deal with the regulators. >> he did. he made a deal with prosecutors but the irony is he did lots of valuations. he's in the middle of the whole thing. he gets no charges at all. his immediate superior and his underling who just happened to be in europe where we can't get

to them they both get charged. now, why not him? i mean i find it a really baffling case. now, he did express some pangs of conscious while this was going on in recorded conversations and e-mails, but it didn't stop it. he didn't blow the whistle with highers up. i realize he was in a difficult position. >> he did warn though didn't he. >> he did. >> he said i'm trying to do my bes for the company in addition to the rest of it which is key. >> i've never seen another white come can collar case where prosecutors have -- this is evidence of a state of mind that it's guilty. that's why he's under stress. he knows what he's doing is wrong. >> the root cause of the problem was the bank and not the individual. >> but who is the bank if not these individuals and how high up did it go?

he couldn't point the finger there. i don't fault the prosecutors. it's a tough case. they were all in europe. it's not easy to get people out of there. they got testimony out of this guy. they had tons of documents and recordings. >> he's in the uk. they do cooperate in the uk. it's not like a banana republican. >> they did it all london but by the time they got around to arresting someone, they were gone. they were in sprainain and france. we have two french citizens although the underling trader is married to an american and we have a spaniard. we have a major supposedly major corporate fraud, huge crimes and no actual person is ever held accountable. how do you deter this? >> are you suggesting prosecutors are getting gun shy because their past record is checkered? >> sometimes it's easy to say

this from the outside, but nevertheless, i think sometimes they lose sight of the forest for the trees. they get the big fine and a headline and as you said if i wasn't bringing this up now, nobody would be paying attention. they say they'll mop up the person later and then they never do. >> iremember the bear sterns guys they lost. the entire financial crisis i can't even name how many people individually have been held responsible which is a frustration but you're a lawyer but it's got to be very difficult to get to beyond a reasonable doubt. >> it is tough. but they didn't even do the civil charges in this case. okay, maybe we can understand the case at this level but how about the criminal front? do the civil charges and get them to cooperate and try to move up the ladder. you see in the evidence the

fingerprints of higher up. this was not a rogue trader at all. the higher ups participated in this. it was harebrained. it went up the chain and we'll never know who was responsible. >> it's great to you write this stuff but it is a subject to which you return again and again at the times. and i wonder why that is. obviously these are stories that need to be told without question, but you clearly also feel in a you're tapping into a vein of interest for the readers if not raw anger. >> hillary clinton mentioned this in her economic speech last week and i think there are others maybe taking this up. i think it is frustrating to people that somebody did all of this stuff. these things do not just happen in the abstract and yet, why don't we ever find out who they are? >> we're five years post dodd frank and the anniversary, stan

fisher saying we are almost out of the shadow of the last financial crisis. >> the stajdscandal happened in 2012. it was post financial crisis. there will be more scandals. they're not going to go away. one thing this shows with respect to dodd frank is this regulatory area is a mess. the idea that they could -- you could pluck any number out of thin air and assign a number is not a reasonable way to be going. there needs to be some more regulation in that area. >> thank you, as always. jim stewart from the new york times. >> it's a great suit as well. >> thank you. >> still ahead, kara swisher weighs in on google's gains and her thoughts on how the sharing economy is playing a big role in the economy. it's a fact. kind of like shopping hungry equals overshopping.

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at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

watching the banks the financial sector trading near seven-year highs, recovering all recent losses. let's go to cnbc hq for a look at banking stocks on the move. >> if you put in the broader context, there's a huge debate in the markets about whether or not the bank stocks financials are a buying opportunity and

whether or not they may lead the market higher. if you look at the broader s&p 500, on a year-to-date basis we're up modest 3%. but that pull-back that we saw over the course of the past couple of weeks in the early part of july, meant a buying opportunity for some. whether it's correct or not, it remains to be seen. where they put the money to work was in the bank stocks. let's show you what's going on with a couple of different lines on the chart. the white line the financial selector spyder etf outperforming the market since july 8th when the market bottomed. if you look at the bigger stocks part of the overall picture, a different swath of names. first of all on the regional bank side m & t bank an earnings story, up about 4.5% just since that time one of the big standouts. another one is not a traditional bank, a broker dealer this one, charles schwab up by 7% in

earnings-related story. some buying of these brokerages. and the two best-performing financial stocks are naks that we're familiar with, the big banks, bank of america and citigroup. up between 7% and 9% since the july 8 low we saw in the overall market. if you talk about the debate a lot of fund flows, carl this idea that you could see this idea that these fund flows for the s&p 500 and the financials are all actively debating this idea. financials may be one of those spots wher investors are eyeing for the next opportunity. >> it certainly feels that way. we'll keep our eye on it lots more still to come. let's get to the cme group and the santelli exchange. >> i would like to welcome jim beanko. we have to move kwinkquickly, curves flattening, even though steepening has been the major dynamic for the last few years. we see that 30-year bonds are down about a dozen base points

on the week and two-year notes are higher on the yield. theory one is that the fed is starting to get the markets' attention, your comment? >> i think the fed is trying to get the market's attention. the fed wants to raise rates. the markets have beenen unsure whether or not the fed should raise rates and all the talk this week by yellen has been producing lower yields. >> if had you to pick one word about the current federal reserve, even bernanke's federal reserve, what word would it be? >> probably misdirection at this point. they talk about inflakes they talk about the economy. that's not why they're raising rates. they're raising rates because of their words, financial stability. >> macro-prudential type stability? >> right. they're worried that markets have been distorted. liquidity has been a problem in the bond market. yellen said she didn't know why it was a problem. >> most treasury reports say the same thing. >> right. they're worried that when the market signals have been distorted. they want to get off zero and return to nomalcy. they can't say it that way.

>> they can't say that? why do you underscore you want to be transparent, whether it's the current administration on pennsylvania avenue or the federal reserve. transparency isn't all it used to be. >> that's exactly right. it's a risk that you run. you say you're going to be transparent, you say you're going to line things up but then you have inconsistent statements. look at the economy. >> there's no way the last six months, all the data we've had from january 1st to the end of june in my opinion, stacks up as the best six-month stretch in the last five years. >> not only that. if you look at the third quarter of 2012, the fed eased and gave us open-ended stimulus, they said the economy was so bad. here's open-ended stimulus. >> under conditions that you would describe are similar or better than now. >> right. >> labor force participation rate, the great equalizer. >> i would argue the economy is equal or worse now than it was in the third quarter of 2012. but now they want to tighten the fed. >> when urbaner is transparency and really maybe it's more misdirection, your words or

mine passification, maybe my word. what does that do in the final 35 seconds to the credibility of the fed. i would like to lose my bet i made with steve liesman before the end of 2015 no tightening because i think credibility is ott the line. >> if they tighten and the markets aren't ready, you you get tremendous volatility. if had they tighten and they figure out you're not doing it for the stated reasons, you lose credibility. it's a very fine line you walk. >> we're out of time. and on the yield curve flattening, it could be how correlated the long end is with the european long end, moving to a leetly different drummer. back to you. >> rick santelli thanks very much. we send it to jon fortt with a look at what's coming up next on "squawk alley." >> yesterday google was trading in the high 500s, today up 15% in kissing distance of 700. we'll bring you the news on the earnings. why it's trading so high. and also clinton/bush. hillary clinton and jeb bush

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8:00 a.m. at google headquarters in mountain view california, it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪ ♪ good friday morning, welcome to "squawk alley," joining us re/code's co-executive editor kara swisher, happy friday to you. joining us here jon fortt, and