joining us today is john broad. kayla is out today. joining us on a day where the market is in a range. apple event, 9-5 mac has new details on the next apple tv. it will run its own specific version of ios 9, it's expected to launch aside the new iphone 6 s and 6-s plus models. new design, new support, new remote for siri. the new device will not include the live tv service. project code name j-34, jon. sounds awfully top secret.

>> i don't think it's that secret. we've seen the direction apple has been going in for a while. i think the key question with this device is what's the apple tv app store going to be like? will you be able to easily get things like amazon prime instant video on it? you have to get air play, get the app on your foernphone, pus to the tv. will it support simple games? you take a look at amazon's store in this category. the fire tv stick is the number one seller. chromecast from google is number two. row cue stick is number five. remember apple said they had sold 25 million apple tv units as of january, up about five million units from nine months earlier. they could sell five million or so units in the holiday season. maybe even more. if people like this thing. that's significant when you consider the ecosystem. >> yeah, look i think you hit on two of the big questions, the app store will it only be

video-centric apps or will it also be gaming and the big remote is prime for gaming if they want to go in that direction. and the other thing to point out is while mobile devices have proliferated. tv is still important. 60% of hulu streams are important. >> does it sound more evolutionary or revolutionary to you? >> it sounds more evolutionary to me. i wouldn't underestimate the power of the app store. if you start getting tens of thousands, millions of apps, it becomes an entirely different experience. >> and if you look at amazon, their fire tv box, it's actually not available right now. some think they're getting ready to upgrate graid that box, maybe it 4-k compatible. what happenle is doing is doubling down on power, on an

operating system that allows them to do for a while. cheap, under $40, but you won't be able to build an ecosystem on those. >> we had just had a discussion about the telecom market at large and how you're feeding into population growth. everybody has their phone. here they're feeding into a trend which unfortunately we know too much about, and that is cord-cutting, right? if you're going to lose your cable box, you might look at something like this. >> not only cord-cutting, but cord-shaving and we've got also what gets lost in both of those numbers are the young people who never had cable to begin with. so that's obviously a huge disrupter. we're seeing it in all of the -- >> a household formatation play. >> 100%. >> walmart is another good story. shares falling to a new 52-week low. the company cutting guidance for the rest of the year. walmart stock continues to underperform especially versus amazon. amazon up more than 70% so far this year. walmart is close to a bear market since the beginning of

the year we know amazon overtook them in market share. even though their sales are nowhere near the biggest private employer in the country. >> there are good things in the report. revenue was a little strong thaern expected. the u.s. looks pretty good. but the main thing that jumped out to me as a concern in the walmart report, the soer ceo of walmart u.s. was talking about logistics, saying they're upgrading a decade-old system to try to fix that. trying to get people out of the stock room, on to the retail floors to serve customers. wait a minute, randy mott, noted krimpb io, left walmart 15 years ago, went to dell, hp it sounds like they haven't paid attention to their information systems in driving efficiency. since the randy mott era. that's a huge concern. that's where amazon is stronger than anyone. if they want to succeed in e-commerce and multidisciplinary commerce across online, mobile

and stores, they have to have that locked down. >> walmart makes a big point that we have a lab in silicon valley and we're trying to attract the people that otherwise would go to an amazon, is that working? >> clearly not. they've spent about a billion dollars in online last year. what i like about the call is they said they're going to spend $1.2 billion to $1.5 billion this year. they're going to try to beat out prime with the $50 offer. about half of what prime is offering. they're doing some things. is it fast enough? big enough? time will tell. >> amazon here, and alibaba over there, right? it is a two-front war. >> it is. and technologiwistechnologiwise silicon valley is good. it's like technology surgery while you're eating junk food and letting your internal systems get clogged up. the important stuff for retailer like this is the blocking and tackling of the logistics, knowing what the customer wants before they make that click if they're falling behind there

that has got to be a very high priority. >> one thing people are talking about this morning is as far as amazon, once you get to this size you become a target. years ago it was walmart on the front page of the "times." this weekend as we know, it's amazon. >> walmart has a 30-year head start. but amazon just eclipsed them in market cap and they've got a big target on them. great new robot video from google's boston dynamics. take a look, it's the atlas robot, 6'2", weighs 330 pounds. in the video this robot is struggling it to stay upright, but it is walking through a forest without falling down. boston dynamics says the goal is for the robot to one day be more agile than humans. >> that has come a long way. >> this is a 6'2" robot, 330 pounds, designed to help us in natural disasters save human

lives and leave it to google, or alphabet, they're platformizing this. different personas, you can trade them, powerful, interesting, ai is here. >> how long before it starts looking for sarah conner and starts running for governor of california. 6'2", aren't those arnold stats? i'm worried about when this thing goes wireless. jon, you've got news about one of my favorite apps, your confide. what's going on? >> we're pleased to report that the earlier this morning we launched confide for desk top. confide is an off-the-record messaging platform targeted at professionals and business people. we've had mobile apps for about a year and a half and the iphone watch, we're thrilled to announce desk top with mac and pc for professionals in the workplace. >> on mobile you run your thumb over the copy to reveal it and once your thumb leaves, it hides again. how is that revealed on a desk top? >> we've ported the same

technology to desk top. we've got end-to-end encryption disappearing messages and they're screenshot proof. you wand over with your mouse to unveil the message. if you try to take a screen shot on mac or pc, you get nothing but a gray or black screen. it is completely screenshot proof. >> is it a web app or an apple and pc and mac app? >> it's naif native and since privacy and security is at the foundation of what we do, it was a no-brainer to do a native app. >> should we read anything into the strength of pc and people's productivity on it? you're building a pc and mac app. ? we want to be everywhere professionals are. ought all platforms, all devices, all countries. what's interesting about the mary meeker report is about 40% of adult online time remains in front of dpesk top and laptops. mobile has eclipsed that, it has grown the pie.

for professionals and business people, it's probably even higher than that. >> for an enterprise tool it makes sense for me on a personal sense, where's the biggest demand coming from in the enterprise? >> we've got lawyers, media and journalists. h&r professionals, it's everybody who has sensitive information they don't want to put on the permanent digital record of the internet. you've got vulnerabilities of surveillance and prying eyes to i--hack scandals and hacking. cloud making copies everywhere and you've got legal discovery. it's become sort of commonplace that anything we communicate digitally, we should expect to be exposed at some point in the future through one or more of these vulnerabilities. >> hillary clinton. >> sony hacks, i-hack scandals. there's a new poster child every month. >> do you worry about other well-known messaging services finding a way to do the same thing? >> no we're singularly focused on this one problem. other messaging apps are much

broader and we just do this one thing. we say use other messaging apps, use email for the nonsensitive innocuous generic stuff, they're fantastic. accessible, archivable, searchable. those things that make them great. make them vulnerable. >> when i'm messaging someone and they say switch doing confide and you go over and the conversation continues. >> haven't gotten any confide messages from carl. we want to check in on the markets, pretty flat action. dow roughly flat. home depot hitting an all-time high after revenue did top estimates, the company raised sales and profit forecast for the rest of the year. coach in the green after getting an upgrade at jeffrey's to buy, the firm adding to its franchise pick list, saying the company's turn-around efforts are taking hold. good day for retail. komg cowhen we come back th story behind xbox.

and add zuckerberg not long list of people called out by donald trump. and the next space race is a battle between branson and elon musk. what they're fighting over and how it might make you some money. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

but your stellar notebook gives hanyou the gumptionlc. to reach for the sky. that's that new gear feeling. this week, these office depot brand notebooks just one cent. office depot officemax. gear up for school. gear up for great.

is. our next guest was a major player at microsoft, a top exec for two decades, leading the launch of the original xbox console. robby bach, is microsoft's former chief xbox officer. got your book, been flipping through it. a game plan for corporate and civic renewal. it reads like one of those books that somebody writes because they're going 0 run for a big office. are you running for governor, senator, president? >> i have no intention of running for office. my deal is -- about civic engineering and trying to help people and giving people tools to improve our communities. and so it sounds a little bit political in its genesis, but in fact, i think the best way for me to help is to help others, have impact. >> you're still in touch with steve bolmer and your days at

microsoft. satya nadelia doing the right things? moving away from some of the consumer plays like xbox. although he says he still loves it. he's going in the no fun productivity stuff. is that the right thing? >> i think satya has done a great job in making the transition. the trance frigs somebody like steve a co-founder into a new world, trying to change the culture, turn the company a bit is always difficult. i think he's done a spectacular job. i think the bets he's placing for the future are logical given the company's assets. it will take 12-18 months before you see the specific bets come to market. you'll know whether it's had the right effect on the company. >> we were last week the discussion was all about google's restructuring and how they wanted to avoid the mistakes of microsoft, right and not lose their way culturally. does it feel like that's the environment you worked in? >> the cultural stuff is very difficult.

as a company gross it gets very tough to manage and think about how do we evolve the culture and maintain our cutting edge. and at the same time, manage you know, 100,000 people. look at amazon. amazon is dealing with the challenge as we speak and they are cutting-edge company and they have a lot of employees. it's a hard problem. >> did you read that piece in the "new york times"? >> i did. >> over the weekend? >> yes. >> how did that strike you? you saw the same kinds of pieces being written about microsoft during your time there. is that something that companies need to focus on and change? or same as it ever was? >> i think it's a little bit of both. i think you have to figure out how to maintain your innovative spirit. a sense of driving new things and fighting for big ideas that's absolutely critical. the thing you have to be careful about is the criticism and critique can't be about the people, it has to be about ideas. as the company gets bigger, that's a harder line to manage.

>> can xbox exist as a sole entity? that remains the call, right? we want to see this broken out. >> i think it could. i think that the challenge is how do you structure that. it relies a lot on microsoft technology. you think about xbox live and what it does in the back end, that's all microsoft technology. you have to think about how you would separate it and yet make it part of the company and i think that's really challenging. i think to your question about satya. i think the company is still trying to figure out how that evolves going forward. >> we were talking about apple tv, details leaking out about that. amazon seems to have pulled the older version of fire tv which suggests they might be getting ready to update that xbox is microsoft's play in the living room. there seems to be a tension between is this a gaming box? do we promote it as that? or do we somehow also make it an entertainment box. so people who are not interested in gaming gets all this other

content. how do you thread the need snl. >> i think the fact that it's a gaming box is its most powerful benefit. when you connect something to your tv, it has to have a purpose. challenge with a streaming device is om i'm going to pay $100 or $150 or whatever it is and it streams. my cable set box does that too. when you attach an xbox, you get the streaming and the gaming, it's an additional benefit and it's already connected to your tv. they have to figure out how to make that a benefit to consumers. not something that's a hurdle. >> one of our loyal viewers says please thank your guests for the endless hours of enjoyment that xbox has provided me and i'm a grown man. i think the demographic wave you helped ride -- >> the demographic wave has definitely expanded. game something a very broad form of entertainment. it's like movies, it's like videos, it's like books, it's a thing that everybody participates in. sometimes on a phone, pc,

television, handheld device, but it's a real form of entertainment. >> do you think vr is being oversold or undersold? >> i think it's about in the right place where it is right now. there's good technology. it's very cool. it's not commercializable yet. and so the key questions that people have to surmount is, how do i bring it to market? i think they'll get there, i think it will be an important wave in the entertainment space. >> finally in your book you talk about your catholic faith. you're being raised catholic. i'm a christian as well. on the west coast working in tech you don't run into a lot of people of faith. how big a part is faith going to play in solving some of these civic renewal issues that you raise? >> i think, i have three mantras, i say faith, perseverance and serendipity. to me faith is a cornerstone, for me personally it's a religious statement. but in many respects it's a belief statement. people have to believe that our civic organizations can be better. they have to believe in our

leaders. they have to believe and trust that they can make change. and until that happens, change is not possible. so in some ways without faith we're in the going to get there. >> all right. robby bach, former chief xbox officer, game plan for corporate and civic renewal, thank you so much for joining us today. a new investment for buzzfeed could value the company at more than $1 billion. a closer look in a moment.

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nbc universal, parent company of cnbc announcing today it officially that it will invest $200 million in buzzfeed as has been widely reported. this new money is expected to value buzzfeed at over $1 billion. companies say they will explore strategic partnerships unquote, including collaborating on movies, tv content and the olympics. nbc universal also invested $200 million in vox media. that's a lot of capital to

spread around. it's interesting to me, both of these companies, buzzfeed and vox media have invested in some of the infrastructure of the digital experience. and vox's case, their content management system, you can see it on the verge, is just beautiful. it's fast, and buzzfeed's case they've managed to figure out how to tune for just about any social network, figure out what's playing well and enhance the site for that driving traffic. these investments don't always pan out into being something that works in the long-term. but interesting that nbc universal is choosing to put money into these two. >> indeed on day where wells downgrades disney and cbs and fox. because the value continues to shift away from distribution and into content. and if you don't have that content to back it up, if you're heavily leveraged overseas, if you don't have a lot of live programming, you've been hurt as people who cut the cord or shaved it.

europe is going to close in about five minutes. simon hobbs made it to post 9 to wrap up the day. >> in a reflection of what's going on in here. difficult for the equity markets to get traction today. the dutch are higher. broadly on their own. in you look to the downside you can see the effects of the concerns with china and the stock market and commodities coming through. a lot of oil stocks are lower. you can see the big global miners are in negative territory. i want to mention rva, one of the two big powerful german utilities which hit an all-time low. the value destruction is extraordinary on these two companies, they've got alternative power surging in supply in a lot of europe and a lot of conventional power stations are uneconomic. three downgrades, amongst them a sell from soc-gen. we've eroded some of the gains in the pound and the big one today, the greek bailout, five

parliaments to okay the cash that athens needs by thursday to repay the ecb. you see the debate they had in the spanish parliament earlier. that's expected to pass quite comfortably tonight. boet both sides of the fence there would want it to go through. more importantly in athens today. the privatization process has rebegun. they are restarting the privatization of greece's 14 regional airports, ironically to a german airport operator. more interestingly, this looks like the greek prime minister has a cunning plan. he's going to enact summer sessions in the parliament. that will mean that only 100 mps will need to sit and he will get to select which of the mps from his own party get to sit in order to reflect their share in the parliament. which basically means he can presumably not have the dissident mps and he can fast track what he needs through the greek parliament before the summer ends. >> that's a cunning play, don't

you think? >> i like it. we'll see what happens later in the week. when we come back, donald trump taking a big shot at facebo facebook's mark zuckerberg. in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm, they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.

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unidentified man threw a small explosive in a river from a bridge. the skies are going to be crowded this labor day weekend. an industry group says u.s. airlines will carry 14.2 million passengers, up 3% from last year. summer travel overall is expected to reach a record high thanks to the stronger economy. >> scary moment for yankees pitcher brian mitchell. twins batter eduardo nunez hitting a pitch back to the mound that hit mitchell squarely in the face. he left the game under his own power. he went to the hospital, miraculously after that. he suffered only a small nasal fracture. he's expected to be okay. we wish him a very speedy

recovery. that's your cnbc news update this hour. back to "squawk alley." we told you about it when the article went online a few weeks ago, the physical copy of the hollywood reporter's interview with jeff bezos hits newsstands on friday. ahead of it they issued new snippets of bezos insights. quote you absolutely have to be willing to make something that's going to be remarkable. you've got to take some risk on keeping up with netflix and volume. we're still sort of filling a pipeline. if you look at the upward trajectory of how much content we're creating per quarter, it's increasing rapidly. i don't envision that slowing any time soon and on awards like the globes and the emmys, i think they're important to the creator, the audience also likes it. is it the only thing that matters? no. but it's good validation of the

quality that the work that the team is doing. it's interesting to talk about them talking about green lighting projects and image and awards. >> i think it's interesting that jeff bezos is the one talking about it. it shows a level of interest beyond ecommerce and cloud. he's interested in drones and content and filling the pipeline. here is a guy who is putting a lot of attention on the growth areas of the company. >> the stock hanging in. well above the 50-day moving average. 5.38. donald trump calling out fellow gop presidential candidate, marco rubio on his immigration plan as quote mark zuckerberg's personal senator. joeng us this morning to talk about that and more is angel investor and inside.com founder, jason calacanis. we want to get your reaction to

the headline we covered last week. about zirtual. the article mentions you by name. used as an example about a trend of start-ups that are running out of patience when it comes to their investors, is this true? >> so zirtual was a really strong company doing an $11 million a year run rate with probably $4 million in a year in losses which would put it in an elite category in the valley. investing to get growth and i would say on the way to being a unicorn and it was just very unfortunate. you had a product that people loved and you had an employee base that loved doing it. but there was a little bit of mismanagement on the board and with the finances and they went down to the last minute to raise their funding in the summer. some investors pulled out. this happens from time to time. it's not an over-arcing trend in our industry. but it does happen. it's a very difficult game, the

start-up game and sometimes funding gets pulled at the last minute and companies go out of business. the good news is the company has been purchased and i spoke to the founder yesterday and 10% of the clients and employees are back to work. i think they're going to make the business profitable relatively quickly and they'll get back to where they are. probably within a year to 18 months. it's a big boy game, big girl game, these things happen. >> jason, are you doing anything differently because of what happened here? it seems like zirtual said we didn't have a cfo full time that was an issue. the person we had was counting 24 pay periods instead of 26. that was an issue. are our board members, were not, their eye wasn't on the board, on the ball as much as it should have been. we didn't have enough board members. as an investor, are you going back to your portfolio and seeing, are there any red flags similar to zirtual? and have you found any? >> it's a great point.

i'm amongst the most pain in the ass investors on the planet. i require companies to send me monthly how much cash they have in the bank. how much cash they have on the runway. i want to avoid those companies. the number one reason that the a company dies is because the founder quits and the number untwo reason is because they run out of money. you don't need to have a cfo, but virtual grew so quickly enter inn three to four years, they should have had a cfo on the board. i was a minor investor, it's got me thinking about when these things start to break out, we feed to put more controls in place earlier to help the founders. this was a first-time founder. she did an amazing job and i would invest in her again. >> that's a good defense, jason. let's move to the immigration reform battle. trump wants to increase wages for h-1 visa, this will improve the number. mark zuckerberg's personal

senator, marco rubio, has a bill to triple h-1 b thaz would decimate women and minorities. it sounds like you have solutions separate from that, talk about it. >> yeah, the h-1 b visa program does have some abuses in it where people are trying to hire people for low wages. i've been involved in discussions where i've heard people say, hey can we get somebody with an h-1 b visa and pay less salary. this is trump at his finest. he is bringing in the politics of race, and the politics of jobs and zeno phobia. this is the most amazing job he's done yet in being divisive and capturing the attention of the country i think. >> the bottom percent of those visas are being used and abused. we want all the smart people in our country. we're talking about 75,000 people getting these a year or

so, maybe increasing it to 300,000. it's not very relevant. it's a divisive issue that trump can ride pretty effectively. and it has zuckerberg and the rest of the tech industry gotten super involved and bought a lot of politicians, of course they have. the tech industry is catching up with a lot of other industries that have bought and sold washington. trump is right about a couple of things. >> trump on the stump has seemed to say he buys politicians quite often himself. i'm not quite sure how much of an insult this is to have a personal senator. i wonder is he right on the substance here? you're saying i hear about the outsourcing companies. that take on a lot of these h-1 b workers. there's a story about disney just a few weeks ago laying off a bunch of people and taking on h h h-1bs from an outsourcing company. that's a concern. if they had higher pay, might that not solve some of these problems? >> what absolutely.

there's two different groups of people, there's outsourced i.t. and in america, the i.t. industry created jobs worth $150,000, $200,000 a year, amazing jobs for americans. at the same time places like i haddia started to grow, india. the people are intelligent and were willing to dot jobs for 30, 40, $50,000 there. we outsourced it and the h-1 b visa is way of insourcing the jobs to pay them $75,000. if we shut the system down all those jobs will just go overseas. so we don't want that, either there has to be a little bit of a balance here and there's a very easy solution. which is, why don't we auction these off to tech companies and make them pay, a free market rate for them. so let's say zuckerberg wants to pay $50,000 and infosys wants to pay $20,000. infosys would be out of the running in bringing talent into the company. they're doing it to arbitrage the i.t. salaries.

whereas zuckerberg and start-ups and vcs are bringing people in to create jobs. there's one part of the puzzle, the visa, is bringing intelligent ph.d.s, brilliant founders to this country to create hundreds and thousands of jobs. and there's people hacking the system to move i.t. jobs. we need to separate those two. a free market where people auction off the h-1b visas, for $75, $100,000or and emark the money for retraining people. >> you're parsing it in ways that make sense. we're in primary sees and we know the way these headlines play. >> i'm sorry for being logical and explaining the issue in a deft way, as opposed to trump which gets much more headlines. >> jason, appreciate that very much that debate is far from actually really just getting started in this cycle. see you next time. >> appreciate it. when we come back, richard branson, elon musk, who is going to win the next space race? but first, rick santelli, what

are you watching today? >> there's a lot of people. when you proposed to your wife, you might have gotten her a nice diamond. we're going to discuss how treasuries are as rare as diamonds.

coming up on the halftime

show, with the home depot pop and walmart drops say about where your money will work best. star retail analyst dana tellcy breaks it down for us. and what one wall street firm thinks about some media names and it's not pretty. our call of the day and big moves in our halftime portfolio. joe terranova looks to move up the leaderboard. let's get to the cme group, rick santelli with the santelli exchange. you know, diamonds, anybody ever read about diamonds, the de beers organization? it was that organization that created a monopolistic scenario where rough-cut dimts were stored and i'm oversimplified and the final cut stones were held back, gauging demand. there's a couple of specials

i've watched about caverns of rough-cut diamonds, industrial diamonds in russia so diamonds really aren't rare. but -- when i look at the treasury markets, treasuries really are about as rare as diamonds, meaning they're not. and what am i talking about? there's a lot of treasuries that are basically just in storage for now. think the fed's balance sheet. think of large entities that are holding boatloads of treasuries, like china, like japan and many of these treasuries of course are needed. you've heard many stories, from the street. both sides about how there's a real shortage of high-quality collateral because it's been one of the key dynamics in the purchases of quantitative easing around the globe. but there's even more. there is something that's truly rare that's related to treasuries. it's the organizations and the dealers, that handle treasuries. there's great story that's going to be on cnbc pro written by patty dom, street downsizing may

signal yield bottom in bond market and i can't say i disagree. even though there's a lot of moving parts here. just consider this. not long ago we had 40 u.s. primary dealers. now we have seven. we used to have 14 primary dealers that were foreign banks. now we have two. so we have nine to do the heavy lifting of what was at one time 54-plus, yeah, 54. so how can we accomplish that? well part of it is that some of the greece is going to have to be taken by those that hold the most treasuries. one of the common discussions on this trading floor is, i know that treasury white papers and various papers from different parts of the federal reserve system have written stories that really may be downplay to some extent or call it both ways on the issue of liquidity in the treasury and fixed income markets in general. without even getting into the issue of high yield and corporate and foreign paper. but in the end, the federal reserve is going to end up

having to act like a primary dealer. they have bonds that the street has hunger for, they're going to have to be in the toll booths that have been vacated by primary dealers. maybe this is the bottom and maybe it's signaled bit issue of treasuries themselves and how tight they are in the end that's superfluous to the volatility that will be intrins toik no-- intrinsic to normalization. getting breaking news about target and a possible settle with visa. courtney reagan has more. >> target is confirming to us that they have reached a settlement with visa. up to $67 million. this does stem from the data breach that target suffered in the fourth quarter of 2013. important to remember, this has already been reflected in target's previously reported fiscal 2013 and fiscal 2014 guidance, we have official confirmation that the settlement has been reached. target will also be reporting

earnings on the 19th so we'll perhaps hear more about what's going on. and if we can finally put a pin in that data breach settlement. carl, back to you. >> a lot of news on tgt today. when we come back, a multibillion-dollar space race is heating up between branson and elon musk. what they're fighting over in just a moment. ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear.

office depot officemax. gear up for school. gear up for great.

two business titans going head to head in a battle over outer space. jane wells is live in l.a. with a closer look. jane? >> watch this story, jon, it's branson versus musk over billions of dollars and billions of people who don't have access to the internet. both are planning satellite systems very close to earth to provide global internet at very fast speeds. now branson is a partner and investor in oneweb which has raised $500 million. and other companies include qualcomm and intel. and telecom companies would pay it for the internet access and then resell it to airlines or customers in remote areas. most importantly, oneweb has been given the green light by international regulators to reuse the necessary spectrum and ceo greg whiler says anyone else who wants the spectrum like spacex has to get in line.

>> they reuse spectrum, sure. we have the geooperators have a clear slice of spectrum or method of using it, we have the next in line method of using it and someone can after oneweb in a manner that doesn't interfere with geosats, doesn't interfere with oneweb. go that may be up for debate. it may not be who has filed first, but who actually gets their satellites up first and coordinates with everyone up there who has priority. and spacex might do get up there first. it's hiring for its brand new satellite division it's opening in seattle. google and fidelity have invested $1 billion in it with spacex. and spacex has its own application before the fcc right now to use the same exact spectrum on an experimental basis to see if the whole thing is worth it others have tried in the past and have failed. fcc will rule any day. unlike oneweb, spacex may want

to sell internet access directly to customers and compete against telecom companies. can both exist in the same space, literally? bran son has expressed concern that the satellites may hit each other. spacex says that's almost impossible. with so much riding on the spectrum rights, this could be one space race with as many lawyers as space rockets. watch this story. >> jane, i thought the internet access was going to come from drones. you got facebook investing in those, google amazon saying we could have air traffic control for drones. are there going to be lie low-earth broadband drones and then space satellites for broadband, too? >> there's going to be all kinds of things, as greg wyler says you and i don't care where the internet access comes from. we want it now and fast and if you're in a remote area, they're betting billions that this will be a profitable way to do it. >> self-driving cars, 300-pound

robots and now this jane, the future looks exciting. >> crazy. >> jane wells for us. >> marshmallow has arrived. we'll explain in a minute.

as we mentioned, walmart hitting a new 52-week low, while depot hitting an all-time high after both reported results this morning. >> interesting insight from walmart and home depot's results, same-store sales results at home depot continue to show improvement. overall, comps beatsing the street, too. profit in line, but the home improvement retailer again raising guidance. in part due to the acquisition of intraline brands and stock buy-back the on earnings, the retailer saying there were a record number of transactions as well as the highest average ticket since 2006.

hard to find things we don't like with home depot. the world's largest retailer is lowering full-year guidance range. walmart points it things like a stronger dollar, increased hours and higher wages for associates. lower reimbursements from prescription drugs and higher shrink as factors for the lower gridens. walmart includes that shrink does include theft and damaged goods. perishable grocery items 0 he or other damaged goods. the retailer has instituted its shrink school program. it has it could take as much as 18 months to rectify. carl this is something that walmart also called out in the previous quarter's results so it's a problem that's been ongoing at least for a bit of time. and likely will continue for a bit of time. >> multiple headwinds to fight here. thanks courtney reagan. meantime m stands for

marshmallow. google revealing the name of its latest android operating system. you remember previous trends included lollipop and jelly bean. wasn't ice cream sandwich in there. set to be released this fall. by the way, it was on this date 11 years ago google priced its ipo at 85. split adjusted since then. it's up 1,250%. >> at the dutch auction, people didn't know what to make of it. it turned out to be a great deal for those who got in. marshmallow. i was spliced they didn't go with m&m on this one. i wonder if they go with a brand and maybe do nutella next or do they go with nougat. everyone's favorite ingredient. >> we'll keep our eye on google. china continues to be troublesome. a lot of the plays that have

been hurt by their exposure to china, their leverage to china getting punished anew. micron is one of the worst performers on the s&p 500. you don't have to look further down the tlois see a michael kors, even a crm, which has earnings later in the week. >> they do, so does intuit. you can look at see lenovo hitting new 52-week lows. on the flip side, adobe, minimal china exposure, hit a new 52-week high earlier in the session. a few retailers, we mentioned depot, tjx again minimal international exposure working after comps come in 6 versus a 3% estimate and housing has been a good story all day long. decent housing starts. single family homes, best since 2007. pulte, lennar, dr horton managing to hold it together. >> the u.s., all about the u.s. those who have strong u.s. exposure and running

efficiently. that was walmart's problem, seem to be doing well. a busy afternoon session still ahead. let's get back to headquarters and scott wopner with the "halftime report." welcome to the halftime show. joe terranova sheer with, stephanie link, josh brown and pete najarian. media money, why one wall street firm is getting downbeat on big-name stocks, our experts debate the call of the tray. trader joe hoping to move up our leaderboard, joe terranova making more portfolio moves, the names he likes and why and whether they're good for you, too. we begin with two retailers going in opposite directions at this hour. walmart sliding after cutting outlook. home depot rising after its own report confirmed what many investors expected. continued strength in housing giving that company a big boost. we'll gel get to housing in a