that was a career ender for cruz? >> depends on donald trump's future. he really threw it down last night. >> i agree. michelle, we'll be watching tonight. 10:00. excuse me. the dow is down more than 100 points. thanks, everybody, for watching "power unfortunately." "closing bell" starts right now. hi, everybody. and welcome to "closing bell" lye from the floor of the republican national convention in cleveland, ohio. where bill peter-teal is warming up behind me. >> oh, yes. i'm bell griffeth at new york stock exchange. this is as quiet as it's going to be for you on the floor there at quicken loans arena. you know, donald trump promised fireworks and a captivating convention and that has

certainly been the case all this week. >> everybody's waiting for donald trump to take the stage where you now see venture capitalist peter teal warming up. a lot of focus here still here today is on what senator ted cruz last night did or didn't say. >> vote fur conscience. vote for candidates up and down the ticket who you trust to defend our freedom and to be faithful to the constitution. >> i don't know back at the stock exchange, bill, but that was the moment of the night despite a fiery speech of vice presidential candidate mike pence last night. tonight, we have a big round of guests from the rnc and speaking with cleveland clinic ceo toby koz grof and had the move of

blocking health care mergers and the head of the national association of homebuilders tells us why he thinks donald trump will help give the housing market a boost. and looking forward to this, retired lieutenant general michael flynn, he is going to respond to trump's controversial comments about setting conditions for defending the allies in nato. >> well, we certainly look forward to all of that over the next couple of hours. meanwhile, here on wall street, the dow in danger of snapping the nine-day win streak and will have to have a big comeback this hour if it happens. we'll talk about whether it's a breather of the rally or something for cause of concern for the bulls and then another barrage of earnings after the bell tonight including at&t, chipotle, starbucks and visa. just some of the big names on that slate. we'll have instant analysis of the numbers coming up over the next hour or so. let's begin with the justice department's lawsuits to block those two major health insurance emergenciy

emergenciy eiey eier mergers. >> >> it's not unexpected as you say. the thought was that anthem and cigna in deep trouble in terms of at least being approved. and also, etna humana. both deals announced over a year ago seeing the consolidation play out in the hmo industry. said simply, five going to three was too much for the government to take in terms of the view that they took saying that it would eliminate competition and, therefore, consumers would suffer as a result. and so, they moved to block both of the deals this morning at 11:00 a.m. of course, a press conference with attorney general loretta lynch and the anti-trust overseer sort to speak both having comments on that. where do we go from here is the question. people may notice the stocks are up. humana took the opportunity to raise guidance and one reason why that stock is up. another may be, well, it's not

clear that going to court is going to be the worst thing. both companies say they're willing to do that. interesting to note, humana and etna seem more unified in that approach and cigna said we may not close at all. remember, there's been some difficulty in the relationship between cigna and its merger partner anthem. it's interesting to note the press releases. both of them going to court and appears to have the same judge, john d. bates, a federal judge, and viewed as favorable for the companies. who knows? a judge. we'll see. he did rule against the ftc seeking a ruling in 2004 so some at least taking that as a sign, hey, maybe if they go to court they have a chance and also important is medicare advantage and medicare, something the ceo

of etna brought up earlier today on the "halftime report." >> i think if we can't come to a negotiation on what markets to diverse and we have two very complete remedies in front of the department of justice right now, i'm letting to judge decide whether they compete and i think that would be precedent shl for the industry and an important decision to have made and so we'll go all the way to make it happen. >> they're considered splat. if the government were to lose and considered to be the same, it would have significant implications. a reason why some thought, bill, that perhaps the government wouldn't go against etna and humana and doesn't want to set that precedent that he just mentioned. we'll see from here. as you all know, we had lots of anti-trust activity even in the last few months and here's the latest. >> so what do you think? will there be a deal? doesn't have to be both of these. doesn't have to be the proposed

mergers that are in on the books right now. could there be a deal that's all worked out? what happens, do you think, if there's no deal at all? what happens to these four companies then? >> you know, i mean, listen. i think you never know when you're going to court. it is interesting, bill, that oftentimes, the majority of cases when the government says no, the two companies say, see you later. they're done. when they don't and choose to fight you can end up with a settlement to allow a deal to close, meaning the divestitures such as was talked about or win in court. we'll see. it remains unclear. you could have one deal. when the other deal not win. and the question is whether consolidation will come to the hmo industry the way all of these players wanted it to. >> a lot of musical chairs going on when this all is coming down initially. david, thank you very much. i didn't see mark since he started that beard and i guess growing it and won't shave until he gets a deal or something. i don't know. see you later. >> all right, bill.

let's get to the "closing bell" exchange. joining us is amorosio on poegs nine and ben willis and rick santelli checks in from chicago. ben, i was not aware that stock prices could go down again. the industrial average is down 115 points. we had been in the midst of the best run in three years here in the u.s. stock market. what happened today? >> the european buy eers that p the safety money in the new york stock exchange gone home at 11:30. the bull's not dead. we have a long way to run. but this is a breather that we need quite frankly. we have had an extraordinary run and the bull needs a breath. >> i think the dow up nine straight sessions coming into today. how do you think the markets position? >> i would agree. i think we are poised to take a breather mean and one thing to acknowledge from the fundamental

point of view is looking at the price ratio earnings is it's rallied at 17.1 earnings and now the thighest levels that we have seen in ten years. that shouldn't be a deterrent to the rally, necessarily, but cause a pause and what we're pricing in right now is essentially 2017 earnings and it's not quite 2017 yet so we might have gotten a little bit ahead of ourselves here. >> rick, what do you make of when's going on today? you haven't seen too much movement in the treasuries and so forth but it has been much of this the equity market and i keep hearing about digesting earnings. what do you think is going on? >> i found it fascinating because if you look at the yield curve and look at treasuries and remember that we had some u-turns, rates were going up as mario draghi took the mike and then after press conference, they started to go down so two years are down three base points. we had curves steepening with lower rates on a day that the

stock market breaks the streak. it tells me that the central bankers have given way and investors minds to the stock market. the stock market is now the weath weathervane and not shocking and i like days to see it play out when the stock market goes down, curve steepens tells me that's a fed implication and it shouldn't be the real story today should be the ongoing stability in housing. now, it is not terrific. but many of these metrics are the best since '07 or '08 and never going to get to the '05, '06 and double many of these metrics like starts and permits. but existing home sales were solid. so i think mario draghi and ben willis had it exactly right. there's a european presence in the markets and even beyond that i think that the equity markets are now the weathervane and everybody's going to pay attention to and the crutch for the july meeting in many regards depending on how the future direction goes with the market.

>> we also seem to have earnings in today, ben. if i look at the worst performers, sherwin williams and i think a cleveland area company, southwest, we know what happened there. intel, american express. is that weighing on the markets today? >> i think some of the play in the market helped in particular with intel for bellweather if you will. the overall market as rick just quite put it very well the fact of the matter is to love to trade on fundamentals and pure earnings, that is not going to happen for a long, long time. the equity markets are going to be driven by central banks and the continuation to awind unprecedented art form if you will. they've now realized that negative interest rates is absolutely disastrous decision an trying to unwind that will have to look at those central banks in that particular reason. the united states led the charge back out and trying to manage our growth, if you will. but the fact of the matter is

central banks are driving investors into equities and should have been for quite a while and 17 1/2 times forward looking earnings on a yield curve against negative interest rates is not even close to unprecedented and not near the 2025 pe ratios and the equity markets have a long way to go in my opinion. >> you are nodding your head vigorously here. >> i was. i have to bring it back to the ecb once again and did not deliver and not that it was great expectations to deliver and one thing that the european central bank has to address are banks and bank prices and bank earnings and admitted it's a profitability issue and how do you make the profit if rates are negative and not out right negative rates but a pile of cash at the ecb charged 40 basis points. >> yeah. thank you all for joining us in our exchange today.

i got to get back up to the cnbc booth and i think you can see over the shoulder there, the set is cool. everybody has a booth. and the box seats that you would ordinarily have for the q here in the arena and threw it together. this convention is earlier than usual and they put in cleveland because at the time lebron wasn't on the cavs and thought the mafrs season might be too long and needless to say, the cavs wound up in the playoffs. any case, i have to put on the basketball shoes and get upstairs. i'll see you in a second. >> if anybody can get there in time, it's you. we'll see you in a little bit here. we're setting lows for the session right now. the dow jones industrial average down more than 120 points right now. at 18,470. s&p down 13. the nasdaq down half a percent. special coverage from cleveland does continue. the cleveland clinic ceo gives us his reaction to the justice department's move to block the two massive health insurer deals. plus the chairman of the

national association of homebuilders tells us why he thinks a donald trump victory would be better for the housing market. and former trump vice presidential contender retired army lieutenant general michael flynn has a take on mr. trump's comments on nato that triggered alarm bells across europe. and then after that, we got more earnings after the bell tonight. at&t, chipotle, starbucks and paypal expected to report. we'll have the numbers for you, the second they hit the tape and set you up for tomorrow's trading session, as well. you are watching cnbc.

welcome back ebay with a record high on the earnings beat last night. e-commerce platform also increased the profit and revenue and ebay says it saw a slight boost of currency swings following the brexit vote. let's check out other movers for this thursday. southwest airlines among the biggest losers in the s&p 500 today. the discount carrier reporting disappointing earnings, company said that stiff competition is

weakening fares right now and analysts not impressed by the projected 3% to 4% decline per revenue of seat mile and of course they had the problems with the reservation system yesterday. not a great time for southwest. pandora spiking briefly today. liberty media ceo floated an offer of about $15 a share for the internet radio company. liberty media controls sirius xm and you can see pandora is lower after that spike earlier in the day. meantime, dunkin brands of second quarter results this morning. the company did beat on earnings. it missed on revenue. the stock did trade lower but it has come back a bit. it is down 1.25% right now after opening sharply higher. we welcome back chairman and ceo nigel travis. good to see you, sir. welcome back. >> bill, very nice to be here.

>> kelly will be along in a moment here. give us an overall view of the quarter and then we'll talk about some of the specifics that you've got. how did you do this quarter? >> well, actually, i think we did pretty well. it wasn't a spectacular quarter but it was a quarter where we executed some very important strategies for the future. we launched cold brew which has had a very good reception, particularly in the two biggest test markets of new york and los angeles and rolling that out across the whole country in the rest of the summer. that really is a game changer. it's a different way of brewing coffee. it sets us apart from some of our competition. it's a great product. the repeat purchase has been fantastic. we launched on the go ordering during the quarter. we're very pleased with the start of that. and i think this is the biggest operational change since we introduced drive throughs and probably going back to the disappointing revenue you

mentioned, we have managed to get a handle on franchisee pricing. that is a very big thing. and i think that is something that's going to hold us in good stead in the months and years to come. >> your cfo mentioned you're selling most of your -- of the store. the company-owned stores and fewer than five. why? when's the strategy there? >> okay. so, bill, this is an interesting one for me. when i joined the company i was insistent of company stores and picked up company stores to demonstrate operational excellence, to show the franchisees we knew how to operate stores and we picked up problem markets and converted them into some successful markets. good example is atlanta. dallas was one of the markets we picked up. we are in the process of transitioning that. we'll transition another market up here in new england. and we're probably end up to be honest with no company stores in the near future. we feel the time for them has

passed. we're 100% franchise. we love supporting our franchisees. focused on franchise economics. franchise relationships. and i think by doing that, we can move forward. it's simply in the operations. it has no impact on the profitability. but it means that we can be totally focused on franchise stores. >> hi from cleveland, nigel, where i'm wondering how the outcome of the political election in november, do you think it will impact your business? >> hey, kelly. everyone's very interested and following your reports and others on when's going on in cleveland. and i think it's your question's an interesting one and you're in cleveland. cleveland's one of our most successful markets. why? because we're executing outstandingly. we have franchises who work together. they run great stores. they partnered earlier this year with the cleveland cavaliers. they rode it all the way to the victory behind lebron. they had a promotion.

the team wins. you win. which helps drive our perks membership. which gets you in on the go ordering. so, so we're very happy with cleveland. but coming back to your question, it's going to be a very interesting election. as we learned from my home country, you can't predict anything these days and i think what we are going to see is from our industry a very strong push to whoever wins has to focus on supporting small businesslike like our franchisees. they need support and for us it's critical they support them because it's about development. most of our revenue, most people don't seem to realize this, most of our revenue doesn't come from our comp store sales. it comes from our development. so we need to make sure that our franchisees have a great environment to flourish and i can tell you that will mean more stores for us in the future. >> wow. long explanation there, nigel. a glimpse into what is at stake

as we follow the convention for the next couple of weeks. thank you, again, for joining us. >> thank you. >> thank you. all right. we got about 40 minutes left in the trading session here with the dow down 117 points today. so we're in the process it looks like snapping a nine-session win streak that had put the dow in record territory and same thing for the s&p and not happening today. up next, the head of the cleveland clinic weighs in on the justice department's attempt to block the two health insurer mergers in the name of consumer protection. also, general motors with blowout earnings as tesla's ceo musk releases his master plan for his company. phil lebeau puts them together for us when we come back. hey there. hi, i'm looking for a deal on an iphon.. ...i was thinking, something along these line oh, okay. well, how about this

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welcome back. the overall stock market lower today. the dow off the lows of the session and biogen is rising on better than expected earnings and increase in full year revenue guidance and $5 billion stock buy back program. the bio tech company said that ceo is leaving in the coming months and that it is actively searching for a replacement for him. the stock up today by 6.7%. kelly? >> thank you, bill. a topic not getting quite as much attention this election

cycle is housing but the recent survey by zil low found that some believe that mogul turned candidate donald trump could have a negative impact on the housing market if elected. zillow surveyed on how each candidate could impact the overall economy. trump didn't fare well and while most hillary clinton would have a positive impact. so, for more on the housing policies, bring in ed grady, chairman of the national homebuilders association. you're here supporting donald trump. >> we're supporting housing. we are talking about the issues. we met with the policy people and we have been involved with them for -- throughout the campaign just continuing to talk about the issues that are important to housing. >> so are you going to philadelphia next week? >> yep. >> you're not picking a side sort to speak? >> no. we're bipartisan. so, you know, we know housing is an important part of the economy. and so, we want to make sure whoever wins that housing becomes a national priority.

>> so i guess the zillow survey suggesting that hillary clinton perceived as better housing market than trump does that ring true to you? >> we have been talking. hillary came out with a housing policy, a white paper. so there's some things on there we like. there's other things there we are challenged with and work with the campaign. we're working with donald trump's campaign, we're involved with the leadership council talking to them about housing policies, about who issing finance and the thing that is matter to us. >> what are those discussions about? obviously, the reform of fannie mae and freddie mac are a huge issue and people pushing for them to be fully privatized and others saying that's not really feasible at this point s. that a key part of these discussions or now? >> access to credit is critical and gse reform needs to take place and been in conservatorship for seven years and part of the discussion is to how to reform it to make sure that the -- there's a consistent

housing finance system that our buyers can use. >> what are you guys for coming to them? >> we believe that gses, there has to be some form of government guarantee to bring the private sector in, keep interest rates low so, you know, it's not going to be the same model but there has been legislation out there on a bipartisan way, johnson crappo in the senate, corker, warner, we want to work with those. >> you brought up the issue of general credit affordability to get a mortgage and buy a house and it's become a theme and the oversupply might say was the problem the last time around. how do we strike that balance, especially when it seems there's, you know, signs of life in the housing market? >> i think it was too loose. credit was too loose and got too tight and swinging back to where your normal middle income, middle class can get a loan but it's still a pretty tight. the credit box is too tight and there's a part of that, we need

consistency and move towards reform so that we have a consistent process. >> quick and last question. what do you think is the biggest impediment of a more normal or busier housing market these days? >> economic development, of course. markets in the country that are strongest are the ones creating jobs. there are still areas in the country that are not creating those jobs. therefore, housing has been a slow pace. it's recovering all around the country but at different paces so we need economic development. >> second generation homebuilder yourself from illinois over here in cleveland for the week and then off to philly. thank you for taking sometime to sit down with us. >> thank you. >> bill? >> all right, sue. let's go to sue. time for a news update with sue herre herrera. >> thank you so much. everybody, russia says its bombers performed air strikes in syria. footage released by the defense ministry as you can see shows aircraft striking various targets sending black smoke into

the air. iraq releasing video of troops firing machine guns and artille artillery. the army units assisted by coalition air strikes continue to make advances south of mosul. a new report condemning both ukrainian authorities and separatist rebels for widespread torture and detention of civilians in the country's war in the east. the report is from amnesty international and human rights watch. they base their findings on interviews with victims. the chinese government said at least 75 people in northern china died or are missing since monday in some of the worst flooding in that country in years. state tv footage shows troops trying to rescue people and providing help to residents affected by those floods. that is the news update this hour. bill, i'll send it back down to you. >> thanks. see you next hour. >> you got it. 30 minutes left with the dow, the s&p, the nasdaq in negative territory today. looked like we'll snap a multi-day win streak for the major averages.

dow down 98 points right now. tesla's ceo revealing the master plan for the automaker. will it help turn the stock around in that's the big question. we'll look at that. be sure to catch our special coverage, by the way, of the republican convention tonight. 10:00 p.m. eastern time. six months to go before the election. many so-called experts did not think this would happen, of course. donald trump takes the stage to accept the gop nomination tonight. you don't want to miss that. we're back with more "closing bell" in a moment. stay tuned. ♪ we're drowning in information. where, in all of this, is the stuff that matters?

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welcome back. minus signs today for the major averages. the dow down about 100 points. now down 88 coming off the lows. only two stocks inside the dow 30 are positive today. that would be mcdonald's and caterpillar with, well, you'll take any dewayne on a day like today. intel is the big decliner down more than 4%. lagging as investors focus on a decline in the data center's business and quarterly decline in the revenue of the internet of things division, this's the hot category for many and they're growing there but the

revenue is down below expectations, kelly. meanwhile, general motors making earnings history today. let's get to phil lebeau with more on the big numbers. >> reporter: hi, kelly. blowout numbers and validation that its strategy not only here in north america but also in china and in europe, that it's paying off. take a look at the numbers. they beat the street by a wide margin. fact, you might say, really? beat the street by 1.86 to $1.52. revenue up almost 4 billion more than expecting. in the second quarter, general motors set 19 financial records in terms of its performance. north american profit of 2.9 or overall profit of $2.9 billion and in north america, this was the real driver. retail sales at higher prices. you put that together along with sales of high profit trucks, suvs, doing well in china, especially as cadillac grows there and turning a profit in europe and you have a stock that

actually got a bit of a pop earlier in the day before pulling back a bit and show you this chart. this is going all the way back to the ipo in november of 2010. guys, remember back then, people were saying, look, there's no doubt that the stock goes well over 50, close to $60. only been over $40 a couple of times since 2010 and it's not at the ipo price right now of $33 a share. >> you know, that's a thing. i'm looking at a chart going back that distance. what you're describing and makes it sound like this is as good as it's ever been for this company or as good as it gets is a better way to put it and the stock doesn't seem to reflect that where's the disconnect, do you think? >> almost every analyst says the same thing. they will have to prove that they can weather a recession. historically, general motors and really almost all of the automakers have never done that. they say we have a fortress balance sheet and then you know what happens. can they do that in time? they have the balance sheet that can withstand it and people are

curious to weather a recession. >> from the old to the new, phil, long awaited master plan of elon musk and tesla released last night. what did you think? any surprises? >> there was most interesting part of this, we'll talk about in this in a bit, potential products or vehicles building in the future but when you look at the overall master plan, and the four tenets, most of it was expected by the street. talking about solar city. we have known that for a while. expanding the lineup and talking about that in a bit. aon the mouse vehicles are a big push and car share fleet one as a tesla owner can be a part of and future vehicles, they have talked about building a pickup truck or hinted ate. now they're saying building one with a small crossover and they're working on developing a tesla semi. a long distance commercial truck as well as a bus.

those are the ones that are getting a lot of attention. the semiand the bus, again, those are only in development. not for full commitment to build. but it has people saying, what would be the implications of an electric aon the mouse trucking fleet and look at the trucking stocks and some of them showed a reaction today and not much and make no mistake, people are asking, could tesla be a rival, say, to diamler. they have the freightliner unit with trucking and area people are focused on. >> also, phil, the path to being a financially viable company, a lot of things sort of sucking everything in including solar city and might make sense in very broad strokes to say that you could power your car with solar panels and can't do that with solar city technology today. >> right. well, and s&p global equity this afternoon cut shares of tesla to a sell saying a catch flow sinkhole and every analyst said

great ideas in the broad terms but we don't know how they fund this and what kind of equity raising they will have to do in the future. >> that's the thing. it looks great on paper but, you know, this guy's got to worry about how to make money now before he can even begin to think about a master plan two or three or four. i mean, it is clear that early on the momentum players, willing to bet on the company. it sounded great and going with it. look at the stock today after his master plan came out. down 3.5%. the mo jo is gone from tesla right now, isn't it? >> i'm not sure it is. it's selling off today and look at the stock since june 22nd proposing buying solar city and at that time it went well under $200 a share and people said, okay, this is the beginning of really the pressure building on tesla shares. since then, it rallied and went up to 223, 224. above where it was back on june 22nd. so i'm not sure that we're

seeing the end of the momentum yet. >> reminds me of netflix. it went all the way up before a real correction and watching tesla here as people reckon with that. thank you. >> thank you. >> you bet. about 20 minutes still to go in the session and after nine days of trading days in a row of gains, the dow taking a pause down nearly 100. half a percent and intel is worst performer. s&p down 10 points, about the same amount of nasdaq down 20. still above 5,000, though. big earnings due out in a half hour's time today. coming up, preview chipotle and starbucks. plus, is putting conditions on defending the nato allies good for national security? retired u.s. army lieutenant general michael flynn discusses donald trump's controversial new comments later on "the closing bell."

- the light bulb, a bright idea if you use the right ones. led bulbs use 85% less energy and last a long time, saving you up to $100 over their lifetime. here's an idea: replace yours today. [light instrumental music] welcome back. a down day on wall street. dow down 97 points. i think at the low we were down about 123 so we have come off of that heading toward the close. polte group is up saying it's adding three new board members

after hedge fund elliott management took a 4.7% stake in the company. pulte announced in the boost stock buy back program to $1.5 billion, kelly. all right. hungry for earnings after the bell, we have more your way on chipotle and starbucks, in fact. kate rogers at global headquarters has a preview of chipotle for us. dedra is outside the original store in starbucks with a look at the coffee king. kate? >> we know it's been a rough few months for chipotle and trying to recover from outbreaks across the country and analysts looking for 93 cents on revenues of $1.05 billion to counter the rough patch and added chiroza and a loyalty program of free food in the summer. the stock is raised on that program on tuesday saying the move to quote reenergize the loyal companies.

comp store sales expected to fall over 20% and this earnings report. down 13% year to date and stock lower for much of the day. back over to you. >> been to that starbucks in -- howard schultz is known to show up there once in a while. do what do you expect from the company today? >> reporter: no sign from him today and they're expecting 49 cents a share on revenue of $5.3 billion and also watch out closely for guidance because a lowered outlook sunk the stock after the earnings release and shares not xwon anywhere so far this year and this set of earnings is really going to have to excite investors again about its growth prospect. a few reasons that could happen. one they have introduced a host of new products, twice as many this time last year and a very popular coconut milk based drink and a barista said it's a best

seller. selling out at some locations and another reason of upside surprise is starbucks making a push into china opening up a flagship at the entrance of disneyland and we know what kind of traffic that place is getting. on the flip side, watch out for if loyalty program, remember earlier this year, they did a redesign of that point system rewarding discuss merles based on how much they spend versus how many times they visit a starbucks store. and that has been under fire and the company saying that you could see the results of that in this past quarter. so we'll be watching and get the results very soon. back over to you. >> a lot to watch for there. we'll see you both at the top of the hour and we have other earnings coming your way, as well. heading to the close with 14 minutes left in the trading session right now. the dow down little less than 100 points. down 81. and with all the country's attention in cleveland and the republican national convention, our next guest is concerned that the upcoming election limits the

market's rise of current levels. he'll share his reasons why when we come back. before taking his team to state for the first time...

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ten minutes left in the trading session with the dow

down 87. this is happening a lot lately. art cashin telling me that the market on close orders have paired off. we are not seeing an imbalance due to the buy or sell side and we haven't seen much in the way of pressure from the buyers or sellers on the close lately. and doesn't look like we will today, either. chris hesey is with me here on new york stock exchange floor. the brexit selloff a big surprise and the comeback is a big surprise. what is going on here? >> little bit is justified and go back to the beginning of the year. four main worries and faded. china devaluation, the strong dollar and the impact on industrial materials and energy and collapse in energy prices and maybe the u.s. goes in recession and then all of a sudden now here we are almost closing out july and you're starting to see earnings revisions the other way and the strength of the dollar fade is fading. and the oil price collapse fading and all of that starting

to feed into the cyclical indicators and people getting comfortable. >> do you think we'll see a migration of the dividend payers? reaching for yield here and go more towards the cyclicals? >> i would say that this is a broad rally. >> okay. >> this is not a targeted deployment of cash flow from one place to the next and the reason is lower rates for longer and the competition of yield and attraction of yield in the equity market's much better on a risk adjusted return and we'll get the spades in and out and for the most part cyclical and hunt for yield and it will be cyclical and the grasp for yield even more. >> trying to figure out the impact of the election on the economy or the markets. your shop believes fiscal stimulus from either candidate when they're elected. >> i would say around the world, too. i would say the brexit vote itself could have been the straw that broke the fiscal camel's back for the world in the next decade. you know? not the next six months or so and think about all of that and

where we are in monetary policy, the next growth policy is fiscal side of the equation. it's going to come and go and overall what it does it creates a slightly less of a dark cloud. on the whole political spectrum and keeps multiples in check so you're going to continue to climb this little wall of worry we have each year. >> all right. chris, good to see you. >> thank you. >> thank you for stopping by today. kelly? >> thank you, guys. drawing attention to protests outside the rnc here. michelle is in the middle of things. what is happening, michelle? >> reporter: it's quieter than yesterday and a sense of what's going on here in public square and just a block away from the convention center where the rnc action is happening ideas. that's a small protest here. this group is out nearly every day. they can be very offensive in some ways to people and then people will come up and yell back at them. but what we really want to highlight to you is how many police are between the

protesters and the people who are yelling at the protesters. indiana state police here. we have the ohio state patrol. if alex can swing around to the right i can show you that there are mounted officers from texas, as well. and they tend to surround sometimes they're protecting the protest earls of people angry about what they're saying and sometimes trying to herd them and move them. a heavy, heavy police presence which has been credited with keeping things calm when necessary. and there were arrests yesterday but so far we haven't heard about arrests today. but you can see things get heated and thus far overall calm. especially in relation to what was expected. the reason of high expectations of protests is because so many petitions to protest filed. the police department here had to build an online drop box so that i went through and there were so many petition protests filed and approved but actually there haven't been as many as perhaps was expected. back the you. >> this is the big evening,

michelle. you know, we had heard some chatter yesterday about some of the protests that we did end up seeing, 17 people i think arrested after that flag burning and what ensued and protesters you mentioned police assaulted there. >> yes. >> but today are we expecting anything else? this is kind of a last chance for anybody who wants to use the media attention to make a statement. >> reporter: theoretically, the moment when donald trump is speaking you would think would be the moment when if you wanted to make a statement would be the time, would draw out the most people. and so, there is the possibility tonight and i think that police are highly aware of that possibility. but as you can see, there's so many of them. either on foot, on bicycles. there's if you turn around here, we have seen so many officers on bicycles. i want you to see this officer, she's filming. this is very interesting. this is so they have documentation of what's happened in case there are complaints about whether or not there's

been police brutality, et cetera. you can see so many officers on bicycles and they use them not just to get around, but also, as barriers. they can push people with them, as well. >> yeah. man. >> we'll keep watch. >> she has incredible arm strength and holding it up and still for how long. holey moley. for hours. >> yes. >> michelle, thank you. outside here. we'll keep you posted on what is happening outside and inside tonight. in fact, cnbc will be covering live the events of the evening from 10:00 to 11:00 p.m. stick around for that. up next, we'll be right back with the closing countdown. donald trump sending shock waves through the convention with the comments on nato and the u.s. defense. coming up, reaction of retired army lieutenant general mike flynn. you're watching cnbc. those new glasses? they are.

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two minutes left going to the close. coming back pretty good. bob pisani is here with me. i'll do the two-week charts to see how the market has done since the brexit bottom in late june. so if we look at the s&p first, i mean, we have had decent gains but some all-time highs. today, though, breaking a win streak and in that time, the s&p

up less than 3%. dow, same story. in at nine consecutive up days with record closes and snapped today and since the brexit bottom, up more than 3%. look at the vix, too. come back a little bit. got down to a more than one-year low below 12. it's back above that. >> people asked me about that being at 11. i would just remind people. it is often at 11 in august. and july. it is not that unusual. to see it there. >> two stocks. we had earnings out. two representatives of what happened today. pultegroup up on the earnings. intel, the drag on the dow today. and we've got more coming your way tonight. we have got live team coverage on these companies, including at&t, chipotle, starbucks and paypal. >> i would note tomorrow because we are going to get the big industrials. illinois toolworks recorded very good numbers, very good commentary. tomorrow, general electric, big

industrials. so again, we are looking for comments on how global industry is doing and global businesses are doing. whirlpool, as well. very, very big internationally and latin america especially. >> thank you, bob. minus signs. dow down and zoe's kitchen ringing the bell at the big board. stay tuned for earnings and more from cleveland on the second hour of "the closing bell." thank you, bill. welcome to "the closing bell," everybody. i'm kelly evans. bill will rejoin us here in a moment. here's how we finish the day on wall street. a drop of 80 points on the dow. worst performer weighed down by intel after posting the results yesterday afternoon. the shares down 4%. the nasdaq down 16 points. the s&p was down about 8 points today. and we are getting set up for

another flurries of earnings advantage. kate rogers with chipotle. deidra outside starbucks and dominic cho. thank you. it's a lot on tap. mike santoli is back at post nine. tim seymour joins us from the nasdaq. so, it's great to have everybody here, mike. and, you know, some consolidation today and the worst performers were some of the people that missed on earnings relative to expectations. >> yeah. exactly. i do think coming in to today we basically had this idea that most companies are beating. kind of baked in to stock prices. obviously, winners and losers and i would also point to transports down more than 1% today. southwest airlines getting hurt big there and in general it was not necessarily a great day for the industrials which did pull back a little bit. the big question is, are we going to go back and sort of test those level that is we broke out from say a week or two

ago. i think people that might be a healthy thing. we just got a little bit of flattened out in the last week an basically not able to make a lot of progress. i don't think it's too alarming just yet but it does seem as if we're backtracking and retracing a little bit. >> tim, what do you think of earnings season so far? >> the bar was incredibly low and looking at the names that have surprised on the upside, i think the financials have been very resilient considering everything that's been thrown at them. yield curve's about 15s lower. we heard that the second quarter better in terms of m & a and people like sherwin williams, this is what happens with crowded trades and the home improvement trade is uber crowded and what this e flekts we'll see but that's really the tale of the market. i think the defensive trades, no reason why they don't stay defensive and some valuations are tough to support. >> can we use yuber in a traditional sense, that word now? >> i just did. >> lower case with the accent

from tim. >> i love that. i was going to say, harold hamm ceo of continental resources with us and, bill, you showed the great charts of the markets. hamm attributed it to donald trump and called it a donald trump rally on the sense that the businessman getting the campaign together and perhaps drewing more momentum from it, perhaps now through the convention. mike, i'm just curious for you thoughts on why this sharp move off the lows. >> i mean, the move off the lows i think entirely a function of the sharpness of the decline that proceeded it. you have really basically had this slingshot effect. we were not going to break through the old highs trudging there half step by half step. you had to have a purge. people positioned badly and come back. now, as to the political influence on the markets, if it were, in fact, a donald trump rally as he's perhaps climbed a bit in the perception or the polls, that would be a reversal of the effect that's been

documented and which was that the market kind of tracing out hillary clinton's odds for election was basically tightly core lated and very, very hard to tease out the campaign effect in the market. >> tim, a lot of earnings coming out. who are you most anticipating and who do you like here? >> well, i tell you when we talk about starbucks, we want to' what's going on with the consumer and starbucks is a victim of own success in terms of growth rate. and obviously some of the same issues that other retailers have. rewards program also something that's a double-edged sword. cmg, company specific. at&t ultimately i don't think anyone really is holding them to the same earnings standard. at&t has been a defensive name. a paypal, very interesting to me. i think one of the growth names in a space where i think largely conservative in terms of transactions. that's a name where i think they're seeing global growth. they have a business model allowing them to take market share and the companies we're

looking for right now. >> okay. well, we're maybe going to go in alphabetical order. "a" is out. at&t. dom? >> here's what we have so far is earnings coming out at 72 cents a share. that is in line with the average analyst estimate again. so in line earnings estimates with estimates. revenues coming in maybe a tad light. 40.52 billion dlar. analysts were on average looking for $40.62 billion. also getting a couple of highlights here to take a look at. they do say that they have 1.4 million wireless net additions in the u.s. 2.1 million total. that includes mexico. also, again, here, looks like wireless postpaid churn rate of 0.97%. down year over year and parsing through a lot of ones right here but again the headline number of 7 cents a share match estimates. the revenues of $40.5 billion

falls a little bit short of the $40.6 billion for the average analyst estimate and parse through the details and some other numbers and get back to you when we have more. >> dom, not doing anything. we'll wait and see. >> to tim's point, the stock basically trades off dividend numbers and the numbers would have to be far from what we were expecting. >> widely held company for that very reason. >> most widely held company and i don't remember this but at&t's bonds were basically the benchmark for what the bond market was doing and not about the 10-year treasury back in the day. aaa rating. >> on the screen, had a big revenue miss and details in a moment. shares are moving sharply lower. back to at&t for just a second, tim. you know, it shouldn't be thought of as boring, one of the breakout performers lately of this market. >> yeah. but it's been breaking out because, in fact, i think they have taken a very conservative

model to the core business and not caught up in the promotional, you know, teardown that the come pet to recalls i think around them have and in other words i think not out per pro moetding the next guy and the margins steady and the business model is largely steady. the move from 34 to 42 is one that ultimately based upon the stock market in terms of seek for yield and can't say more about why at&t is outperformed and i think the steady performance that where people are looking for. >> all right. we have those starbucks numbers. deidra, throwing cold brew on the stock here. what happened? >> that's right. so we did see that earnings are in line with guidance. rather expectations. 49 cents per share. that's what the street expected. but revenue, that is a little shy. 5.24 billion. 5.34 billion was expected. you know what else is, same store sales, expecting 5.7%

increase in same store sales globally. year over year, came in at only 4%. some consolation is china, looking for china growth since starbucks made a big bet and a big push into china. and we did see same store sales over there jump 7% but in the u.s. and the americas where we're expecting bigger growth in those same store sales, only 4% and that's a little bit disappointing and china made up for the downside this quarter and looking that the and played in particularly that loyalty rewards program. we were warned last quarter that that could affect earnings this quarter and digesting the numbers telling you how that changed things. back over to you. >> stock right now down 4.25%. thank you. just a mote. howard schultz company founder on tomorrow morning at 9:00 a.m. to talk no doubt about that. >> it does show you there's not a tremendous margin of safety in

the valuation. it really does have to keep wowing the market a little bit. by the way, no "s" in fang and could have been a member of fang last year. there's up from 36 in late 2014. up to, you know, above 60. so it clearly had this kind of idea it was a growth name to hide in while nothing else was growing and i think it's giving some of that back. >> make it plural and add the "s" like scrabble. >> i love that trick. the fact they're opening hundreds of stores, hiring thousands of people and ordering in shanghai, tim. a 7% comp china asia pac region. do you think it gives people beyond starbucks investors optimism on the region? >> yeah. you know, this is the thing about china, though. you know, those companies that have tied the fortunes to china i think seen more volatility in terms of those sales and when starbucks looks at the global model they have clearly solved europe and successful in other parts of world and i'm sure

they'll be successful in china and they are as the numbers show and the strength and the resilience of the u.s. same store sales i think part of it, the multiple retail channels they compete, highest margins to extract when and i think this is a major head wind and the labor costs are changing and food costs and a lot of great newses. michael talked about how successful the stock was. valuation certainly difficult to defend at a level much above here. >> we got to break in with some news here. sue herrera, when's going on with roger ailes? >> resigned as chairman and ceo of the fox news channel and fox business network and chairman of fox television stations. fox just gave cnbc this statement. rupert murdoch will assume the role of chairman and abouting ceo of fox news channel and fox business network. murdoch released this statement. roger ailes made a remarkable contribution to our company and our country. roger shared my vision of a

great and independent television organization and executed it brilliantly for 20 years. basically, he says it's always difficult to create a channel or a publication from the ground up. and against seemingly entrenched monopolies to lead a flourishing news channel roger has defied the odds. once again, roger ailes resigns as chairman and ceo of fox news channel, fox business news and murdoch is chairman and acting ceo of fox news channel, fox business network and twentyiest century fox. back to you with details of golden parachute or packages we'll bring them to you. >> thank you very much. so much water cooler talk about this. not just in our business, but on wall street and elsewhere. about trying to read the tea leaves what this means for the future of an organization that was so beholden to this one

individual whose vision really was the fox news channel all these years. >> without a doubt. if there's a little bit of news in the formal announcement it is that murdoch assumes the roles. in other words, not somebody from the outside or even the inside coming in to replace him. i think that probably suggests what people thought and what the murdoch sons now really operating the company thought which is fox news franchise is what is. on a day-to-day basis, not going to change but longer term, i think there is going to be a question on the direction it takes and, you know, how they acquire talent. >> having worked for himself for a few years running cnbc, i vouch that nothing gets past roger ailes. the smallest detail. he is a master programmer. he always told us that it's all what you put on the screen, that 4 x 3 aspect ratio screen right there. that's the only thing that matters when it all is said and done and that's what his --

that's what made his career all these years. >> fox news is incredibly profitable, bill. for twenty first century fox you could argue it's a strategic -- i don't know if vulnerability is too strong a word but a channel that has unlike others who have moved with the times sort of stood against them. if by him stepping down now, the channel does move it will be interesting to see what direction exactly or by rupert murdoch at the helm here is it meant to kind of signal to the people who for 20 years have been aligned with ailes and won't be any major change in the status quo? >> joining us now on the phone with some reaction to all of this, tom eagan. i mean, it is not a surprise. we have been anticipating this for a few days now and now that it's happened, what do you make of the latest developments tom? >> fox news is a machine. we don't expect any material changes in operations. we don't expect any change in talent in the near term.

you know, of course, especially with the elections we think that the ratings only going up. again, no change in affiliating fees and only real imspakt if there's some -- in terms of whatever the severance cost is, a nominal cost to the operating cost but it's nominal. >> what do you think, tom, is the biggest risk or opportunity from this move? >> people talk about the risk of talent and maybe something in the contracts about ability for talent to leave if he left and would have been there for ailes himself and we don't see a risk of talent leaving. you know, will fox news change their political leanings? i don't think so. i think it's done well for them so far. they have high ratings. cpm is a little bit light. right? opposite of cnn. cnn has lower ratings and higher

cpm and the opposite. so i think at the structure they have has worked well for them and probably continues. >> just explain cpm there, tom. >> it's -- that's the cost of advertising. >> why. >> you know, much is made of the power struggle between roger and the two murdoch sons, james and lockland and, you know, how do you see this changing that now, especially now that we know that rupert himself is going to assume the duties, at least on an interim basis running the fox news channel right now? what do you make of that? >> well, to me, it was, you know, james and lockland putting the stamp on the operations a little bit. right? it is their business right now. so, to me, i wasn't surprised that they wanted to make the decision here. rupert coming back in, i just think he wants to show that he's still in control. >> you know, tom, you mentioned

that the advertising rates maybe trail. is that the demographic of fox news? this was the network just willing to cater to its core audience, not try to expand and not try to make it younger. is that something that's viewed as something that happens down the road now? >> not sure. i mean, i think if their overall ad revenue is still been pretty strong so if they -- if the buyers find that the total ad revenue just isn't increasing enough, they will have to. but i think with the population growing, with the older population growing, i think it will work for them. >> tom, thank you. appreciate you joining us. tom eagan. >> of course. >> roger ailes resigning from fox news. david fab br ber joins us with more. >> thank you. the departure of mr. ailes talking about for a couple of

days and rupert murdoch stepping up. 85, 86-year-old, the founder of -- well, of news corp. and then also twenty-first century fox in the current composition. but that he's taking over at least the acting duties. of course, the speculation started a few days ago as to who will replace mr. ailes in that full-time role once rupert i guess decides to step down as the acting head but that's a fascinating part, of course, what has been a mesmerizing story and certainly a fall for a man who very quick, too, who built -- who built this incredible engine of profits and culturally significant network, guys. >> don't you think that the speed with which this all happens speaks to the relationship that roger had with the murdoch sons, the tenuous relationship that this was their

opportunity to make a change that they might have been wanting to make for a long time? >> yeah. i mean, there's -- it's been no secret that the relationship, bill, i think between james murdoch, the company's ceo and to a certain extent lockland murdo murdoch, the chairman, took place almost a year ago, james took over as ceo at the beginning of this year i think. no doubt that that has been fraught. but i think you are right. you know, there have been any number of decisions that have been made by james murdoch in particular. let's call it over the last nine to 12 months showed his -- that he is the ceo. now, that -- you know, it is an interesting dynamic that you're talking about, a ceo who then is his brother is the chairman and his father is the founder and consultant on every single decision. >> right. >> now you're right. i think that this is yet another sign that they certainly are and generational -- the generational control has shifted here.

and to -- you know, actually, i mean, we see what's going on at viacom. you know? rupert is -- in his mid-80s, of course. he did do it and make that change opposed to some others that we have seen where it was simply too late. >> well, he just got married and busy there. >> he is busy with his marriage, that's true. >> thank you very much. kelly? >> david farber. i'm dwelling on it, bill. for a second. roger ailes resigning as chairman and ceo. chipotle shares, they're higher after reporting earnings despite what was actually a miss on the bottom line. we'll get you details on what's happening there next. plus, donald trump behind will formally accept the republican presidential nomination tonight. john harwood and larry kudlow join us on what to take and the gop is unified behind him right now. you're watching cnbc.

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welcome back. chi ppotle shares are higher. kate? >> a miss on the top and bottom line and eps at 87 cents a share, expected from the street is 93 cents a share. also, revenues coming in for the quarter at $998 million. the street had been looking for $1.05 billion. we told you comp store sales ugly. expected to be down more than 20%. down 20.3%. they were actually down 23.6% for the quarter. saying they opened 58 new restaurants and loyalty program. they said in a statement that about 30% of transactions right now are engaged in that and a reason why the stock got an upgrade earlier in the week an higher by nearly 2% and continuing to dig through the report and the conference call at 4:30 and headlines from that. back over to you. >> kate, thank you. mike, it is interesting and assumed that maybe the same store sales better and a reason the shares responding the way

they are. why do you think they're up? >> i think what kate just mentioned about the color on how the loyalty program is starting out. they had vaguely encouraging words about how the third quarter is tracking and july, it seems like there might be a lift in comp store sales and in terms of outlook they didn't give anything in terms of operating and opening 220 to 235 new stores and effective tax rate they offered so it's not as if they said anything concrete about the rest of the year going to go and encouraging words about the initiatives is probably why the stock is up. plus, it's been absolutely ravaged. so coming off a low base. >> so low everything looks up. we have more here. now visa and paypal autowith earnings. kayla with the results. >> hey, bill. visa beat on the bottom line. 69 cents versus 66-cent estimate. revenues a tad shy and did announce a new $5 billion share repurchase reauthorization and

usually good news for investors. paypal on the flip side beat on the bottom line. up also. also beat on revenue. the company raised its revenue guidance for the full year. i should have said that they matched on the bottom line. 36 cents what the street estimated and upped the revenue guidance for the year and for these two companies perhaps talking about their earnings is be burying the lead, fierce competitors. both ceos made comments to that effect in the spring and announcing a strategic partnership. paypal no longer steering visa discuss merles toward ach-type transactions which basically exclude visa of a transaction and customers using the bank account straight through the bank rather than a visa-branded debit or credit card product. paypal says it won't be steering customers toward using a bank account. and that paypal for all the volume sends to visa, will get a new economic incentive.

they didn't disclose exactly what that is but it could potentially be material for the company. visa debit customers can move money instantly in and out of accounts and paypal will also gain access to millions of points of sale through visa, tokenization and very important for a company that wants to get a better foothold on brick and mort mortar. interesting to see what each of the executives said on the conference calls to begin momentarily. about the fact that there had not been a love lost between them and now able to come to a deal, guys. >> keeping your enemies closer i guess or something like that. thank you very much. i know kelly still has to teach me how to use vinmo. >> it is great. >> i know. >> even for me, very intuitive and easy. >> okay. on we go. republican presidential nominee donald trump raising red flags for many allies but would a trump administration really set

conditions on defending those nato allies? coming up, retired army lieutenant general michael flynn and trump supporter weighs in from cleveland. stay tuned. foand millions moremericans lwho feel its effects.s, let's walk together to make an even bigger impact and end alzheimer's for good. find your walk near you at alz.org/walk.

welcome back. time for a new cnbc news update with sue herrera. >> we told you twenty-first century fox announcing that roger ailes resigned as chairman and ceo of fox news channel.

rupert murdoch will assume the roles and he said he's made a remarkable contribution to the country and the company. southwest airlines computer issues may be resolved but the backups at the airports across the country continued today. more than 300 flights canceled. hundreds more delayed. southwest apologizing to its customers whose travel plans were impacted. a small plane crashed into a residential neighborhood in illinois. authorities believe the fuel tank ruptured when the plane hit the street and ignited a fire that spread to a nearby house. no reports of injuries and unclear if there's deaths either. yahoo! sports is reporting the nba pulling the 2017 all-star game in north carolina. this after state legislators failed to change newly enacted law that is targeted the lgbt community. a formal announcement is expected later this week. you are up to date. late-breaking news today. back the you. >> you have no idea, in fact.

we have some more right now. thank you. it is about boeing. phil lebeau, tell us about it. >> bill, this is a big charge that boeing announcing part of the earnings report coming out next week. the total charge, $2.05 billion. it's actually three charges. one of them for the tanker program. this is the fourth charge after tax that boeing has taken on the tanker program. remember, these are refueling tankers, the next generation of tankers for the military. they've been having problems with the refueling boom. this one is $393 million. that means they have taken 1.4 billion in charges on that tanker program. two other charges, $847 million on the 787 reclassifying two of those going to the r&d fleet and the 747. we have been talking about how there are fewer and fewer buyers of the big birds out there. boeing is not ramping up prix in 2019 as it previously forecasted. therefore, taking a charge of $814 million.

bill, the only other thing to tell you is boeing is reaffirming the revenue for second quarter but in terms of the impact on earnings per share, we have to wait until wednesday morning. back the you. >> all right. and this stock down 1% as the news is just getting out right now, mike. they're cleaning house here. >> they are. obviously, this is money already spent. it is not necessarily going to change the outlook too much and does seem as the if there's too much out of boeing and don't know exactly what else is lurking in there. >> all right. kelly? >> all right. thanks, guys. republican nominee donald trump was asked today if the u.s. would come to the aid of nato member baltic states should russia attack. the first response, we have many nato members not paying the bills. he said, further, if they fulfill their obligations us to, the answer is yes. joining me is lieutenant general michael flynn, author of "field of fight." general flynn is a foreign policy adviser to donald trump. and maybe a vp contender. >> not anymore.

>> okay. no comment there. welcome and thank you so much. >> thank you for having me. >> starting to warm up behind us. these comments that donald trump made about nato, what is your e response to them? >> one word. the word i like to use is reciprocity. we continue to give, give, give. and we get nothing back in return. so, of the 28 nations that are in nato right now, only 4 are actually paying their bills. so we can't continue to do the things that we're doing without getting these other nations to actually pay what they have said that they're supposed to pay. so this is -- i mean, this is like a contract and they sign this contract a long time ago many of them and some of the newer nations that signed the contract to join this political alliance for military purposes. plus i think that the whole situation with nato has to be relooked. assumptions that nato built on is post-world war ii for the defeat of communism as communism rose the ugly head in the last century. we are in the 21st century with

new threats and a lot of what we call out of sector threats in africa, middle east, afghanistan. we have to relook what we're doing and the nations of nato need to understand that you -- if you're going to play at that -- in the major leagues like that, you have to pay up. you have to pay your bills. i agree with him. >> we are talking about small companies that looked at russia and the ukraine. that's a very old-school -- >> i talked to them. >> this's a classic example and somebody goes in and takes the territory. >> here's what i tell them. don't try to pretend like you want to be like the united states. don't build an army, a navy, an air force and a marine corps. build a capability that you can actually employ. so, like, i like to talk about some of these countries, smaller countries, they do airfield security really well. and that's what we need them to do when, in fact, we have to go some place as a nato nation. that's all we want them to do. >> sure. it makes sense in the context of belonging to nato.

i think what people are unnerved by is trump suggesting that nato itself is not a first priority, especially at a time when we're actually talking more about nato's need to defend some of the member states than we have in years. >> i think that nato as an alliance needs to revisit all the assumptions that it was built upon. >> really? >> yeah. we are in a completely -- we are in the second decade of the 21st century, facing an array of threats different than they were even 25 years ago. never mind 70 years ago. you add in a threat of cyber and you start to really dig in to who's got what capabilities, what should each of us do in this particular alliance. >> aren't we stronger together? whether it's against cyber or whether it's against territory? we know that some of these countries are small, somewhat poor relative to our standard. do we really expect them to be able to carry their own weight? >> i got the scale of the country, but when you become

part of that alliance, you say, and in fact, you have to demonstrate that you can actually pay your bills. these are xuns that just don't do it. and there's no accountability. there's no reciprocity. there is no, like, hey, you know, you're asking for something. you're looking for help. but you're not paying what you are supposed to be paying to be a member of this alliance. you're always going to do better as a team. >> want to get the subject of your book is about the war against radical islam. the president taking in the retd rick of the last couple of days, might come out and say that this has been incendiary and provoke the demonizing response itself will perpetuate the problem. what do you say when people say are you addressing the problem or contributing to it? >> i don't know what the president says but my personal judgment on this right now is to declare war on radical islam. and, you know, when we say that, people immediately go back to

world war ii. this, again, we're in a completely new era. and so when we talk about the declaration of war, we need to eliminate the safe haven out there in the middle east. we need have the arab countries part of this and i address this in the book. but nato right now is a lethargic organization that takes forever to make a decision. and most of the countries don't pay their bills. so, i mean, you can't have a team like that. you can't have a team like that. it's not just about paying the bills but revisiting what should nato be capable of doing and really, really -- this is important. it's not to throw the baby out with the bath water but revisit what it is supposed to do. >> real interesting, especially with britain leaving the eu and reimagining the post-war institutions. general michael flynn, the book is atop the bestseller list. >> as of yesterday. >> makes you the envy of many a published author. thank you so much for taking the time. >> nice to meet you. >> thank you so much. up next, larry kudlow and

john harwood preview donald trump's acceptance speech tonight. we'll see what they think. can it really truly unite the gop?

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today minus signs for the first time in a little while. the dow down 77 points when all is said and done. the s&p down about 8. the nasdaq down 16 points. we have had a slew of earnings coming out after the bell tonight. let's get you caught up on those. chipotle and at&t. conference call started a few minutes ago. chipotle down 1%. same thing on at&t. with some of their reports. and some of the other names moving at this hour, starbucks with sort of disappointing report in terms of its revenue. came in lower than expected. that stock is now down almost 4%. visa and paypal announcing a new strategic partnership. p paypal is up 2% after the earnings. visa announced a $5 billion repurchase agreement of stocks. that stock, though, down a third of a percent right now. kelly, i heard the piano and sounds like nordstrom's there in cleveland. what's going on? >> we had a couple of beautiful

ballads. "let there be peace on earth." followed by for "for beautiful for spacious skies." if there's a third number, i think everyone is about to hear it. >> lucky us. >> everyone in cleveland waiting for donald trump to take the stage this evening. last night texas senator ted cruz and now official vice president nominee mike pence took to the stage to speak. it was a night filled with boos, chants and kisses from the donald. >> if you love our country and love your children as much as i know that you do, stand and speak and vote your conscience. vote for candidates up and down the ticket who you trust to defend your freedom and to be faithful to the constitution. >> you have nominated a man for president who never quits. who never backs down. a fighter. a winner. until now, he's had to do it all

by himself against all odds. but this week with this united party he's got back up and on november 8th i know we will elect donald trump to be the 45th president of the united states of america. >> all right. for more on what we can expect on this final night of the rnc i'm joined by chief washington correspondent john harwood and senior contributor larry kudlow. guys, tempted the break out in song. behind us. but, john -- >> you can pull it off. >> no, no, no. we saw those fireworks last night. is that still reverb rating? are people more focused on donald trump and ivanka trump and the others? >> mix of both. reverberating because ted cruz repeated what he said and explained that he's not in the habit of supporting people of impugned his wife and father among other people. not to mention the fact that he called him lying ted all year. that was very unfortunate for mike pence.

mike pence had that line, had a smoothly delivered speech that might have been unifying and talked about the united party right after a televised demonstration of the lack of unity. >> i guess that's the question, larry. is this party going to unify behind donald trump? does it have to? >> well, yeah. it should. look. i'll just add to what john's been reporting. the way i saw it, i was here last night, the whole thing. watching the crowd. so like these are republicans. right? republicans. they're different. right? they don't yell. they don't boo. they don't wave their fist. right? republicans. they can't help it. that's what they did to ted cruz and will never recover from it politically. first of all, he did career-ending speech and to your broader point, mike pence at that moment who gave a very good speech, he's a good speaker. we know him. saved the gop. now, trump's going to run as the leader and the presidential race. you don't vote for veep.

you vote for president. at this moment with the republicans booing cruz, the whole party on the verge of disintegrati disintegration. that's how i read it. by the way, not just new york delegation. it was the whole floor. i watched it. here's the last point. i learned -- i didn't know this. maybe you did. texas delegation people have been asking and urging cruz to come out and support trump for weeks. and you saw on the floor, i'm looking at the texas delegation. on their feet, booing cruz. that's just -- you know, it is a good thing mike pence was there to save them. that's all i can say. >> we'll hear from ivanka trump. >> yes. >> she sent her first fund raising e-mail today, for example. going to start to set a tone. she's viewed as somebody to assume, i don't know, a chief of staff kind of role in the white house. a valerie jarrett kind of role. how are we supposed to read what she is telling us in terms of role in a trump administration? >> well, i don't know about her role and read what she says very

carefully and very influential with her father. no question about that. so's her husband, by the way. yeah. key people whether they go in or not, i have no clue. they're good business people and obviously mr. trump relies on them. no question about this. >> and finally, john, the man himself, much speculation has been how much of this is scripted? how much of it will be off the cuff and what's that tell us about who he's trying to appeal tonight? >> well, look. he will have a scripted speech. he has an opportunity to show millions, tens of millions of americans, that he is capable of serving as commander in chief. they can see him behind that desk in the oval office. scripted speeches aren't his natural habitat. on the other hand, this may be the best way to convey calm and stability. if he goes off on tangents, if he improvises, not sure that's going to accomplish what he needs done for his own image. >> i want to break some news here. we completely agree on this point. he has to show the country.

>> you better. we played "peace on earth" behind us. >> he needs to talk, growth, security, police. he has to show poke folks with detail he is up to the job and turn the country around. >> appreciate it. see more of you in a bit. bill? >> checking the earnings movers when we come back after this. stay tuned. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models. gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time.

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chu, we have more earnings coming out tonight? >> what we have and thinking through and parse through the numbers right now, but right now skechers coming out. down on 498,000 shares of volum company, and i will say this, first of all, earnings, we're still trying to assess the comp rabbit to analyst assessments. there's questions regard to certain charges that may or may not play into the earnings result compared to analysts so we don't know about that just fully yet. we can tell you revenues came in at 878 million versus 888 million and q3 revenues were slightly worse than expected as well and that's what's moving this stock. guys, back over to you. >> coming up she played the villain sheila on "the young and the restless" and now kimberlin brown is an avocado farmer in california and a trump supporter. why she believes trump will be

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welcome back. july 20th poll by the "washington post," abc news showed 38% of women said they would vote for trump if the election was held that day. 52% said they would vote for clinton. today, former soap opera star and member of the women in business for trump coalition, kimberlin wants to change those numbers and believes trump is the right candidate and joins me now here in cleveland. thank you so much. >> thank you for having me. >> you are a speaker actually. was this sort of your most prominent involvement in politics? >> this is pretty much my first involvement in politics, so i guess it is prominent. >> they approach you? did you go to them and say you wanted to get involved?

>> no. they actually approached me. i went to an event in anaheim for women in business, and there was a forum set up where women got up on stage and talked about the concerns that they have and the things that are affecting them in business, and i got up and i spoke as well, and i guess somebody heard me speak there and they invited me to come here. >> this week caitlyn jenner, also in town, said it was easier to come out as a transgender woman than it was as a republican. do you sympathize with that? what has the response been when you talk about why the gop ideals you think are the right ones? >> well, you know, i'll be honest. when i was first asked to speak and it was first released, it was brutal. it was brutal for me. social media who is ugly. it was ugly, and people who know me and know my circle of friends and the people that i worked with for years never would have said what they said. you know, my whole platform is more of a business platform, and

the reason i'm with trump is because i believe that the united states is nothing more than a huge corporation. it's a business, and, yes, you have to have congress and you have to have the senate to keep things going but you need somebody in charge that actually knows how to run a business. that's my personal opinion. >> well, it doesn't seem all like you're putting yourself out there, but you were even worried about your family and how people would respond to you going forward. what has the response been since you gave that speech? >> it's been amazing. it's been absolutely amazing. actually press on both sides of the aisle have been very complimentary. you know, my -- my issues as a small business owner, it's not a republican or a democrat issue. the regulations that are in place affect everybody, everybody, and i had so many small business people come out and say i feel like you were speaking for me and you brought

my voice to stage. >> i've got a lot more questions about avocados and we've run out of that to get to that. thanks for joining us here >> thank you >> kimberlin brown, stepping out in the gop spotlight. bill? >> all right, thank you. sounds like "phantom of the opera" warming up for tonight's festivities. we are just minutes away from conference calls now from starbucks and visa and paypal. what to listen for when we come back.

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how ge's quarterly numbers reflect the company's transformation? plus, donald trump's acceptance speech. his message to investors. "squawk box" tomorrow on cnbc. >> welcome back. it's a bick night here at the convention. tonight, presidential nominee donald trump will take the stage, but before we get or after we get that, mike, what are you watching for tomorrow? >> tomorrow we have ge earnings. a lot of the industrials are going to be able to tell us if there's any sort of upturn in that big cycle. seems to me that's the thing. also, after the close, of course, we've got all the earnings. chipotle is trading down. started trading up so we'll see what they say in the conference call and howard schultz of starbucks has a tendency to actually chew people up on the call. >> brill griffith, thanks so much for sticking around. >> have you seen what they are saying on twitter? >> oh, no, you wouldn't. that's right. >> you'll have to tell me. >> you can read about it in "usa today" tomorrow because they have picked up the story, and if

nokes don't know what i'm talking about, it's on our website on cnbc.com. see you tonight. >> see you tonight and see you tomorrow back there at the stock exchange. catch special live coverage of the republican convention right here on cnbc tonight at 10:00 p.m. eastern. >> that does it for "closing bell." thanks for joining us. "fast money" begins right now. >> okay. this is it. "fast money" starting right now. live from the nasdaq market site overlooking "new york times"'s times skwarz i'm simon hobbs in for melissa lee. tonight on "fast" we're hours away from the biggest speech of donald trump's life. he will formally accept his party's nomination for president of this country. we have coverage all hour from both sides of the aisle, including former republican vice president dan quayle and representative harold ford jr. they will tell what you a trump presidency would mean for business and this market. plus, we're all tonight's big earnings mover. chipotle, starbucks and visa all just