>> good morning. welcome to "squawk box." it is just the two of us this morning. i'm andrew along with joe kernen. becky has the day off. we have another big morning for the markets today. have a fed meeting on tap. more economic data and wave of earning reports. all we will be watching including boeing, coca-cola and comcast. they are among the company's reporting earnings before the opening bell and after the close, we have a lot o hear from as well. amgen and facebook. so a little bit to talk about there. last night it was all about apple. the stock surging after the company said it sold more iphones than wall street had expected. in the third quarter also offering revenue outlook for the current quarter that is better than most analysts estimated

hoping to ease some concerns apple had hit a wall. marketing the first time in ten quarters the company has seen revenue growth in ipad sells. talking about the performance with an analyst in just a couple of minutes. take a look at the futures right now. not only do we have the earnings report. we had twitter last night. right now things looking up on the high side. dow would open higher. s&p 500 about 3.5. nasdaq up close to 30 points this morning. >> the apple stuff makes a lot more sense to me, andrew, because when we were talking about when they were still growing. >> yes. >> they were going to grow from a revenue base quarterly of like $42 billion and that's an unbelievable -- i was thinking that's not guaranteed. even know it was down of what was it -- revenue was down i forget how much. who cares if revenue is down 49

to 42. so it's 7 billion less, but it's $42 billion. their quarterly profit is like 10.68, but my problem when it was priced for perfection is you think it's going to grow to the moon. how are you going to grow revenue and profits 10, 30 percent from a base of 50 billion a quarter. >> i'm with you. one other thing and. >> look how it's up based on declining revenue and declining profit it's still up. >> but that's because expectations have come down. we are in a particular weird cycle for apple. we're at the tail end right before the new ie tone. not just any new iphone. >> what's this one going do. >> there's a divs between the annual psych and will sort of the. >> what do you know about this new iphone. >> because the 7, is iphone 7 is going to be fundamentally -- we hope. >> different than the iphone 6.

that's the incremental next we're year. >> can you describe a future. >> i read all the gossip sites. >> it does something. >> no. >> i'm just saying there are things in this next phone that should be. >> like what. >> give me one thing. >> it's more about the upgrade cycle. >> is it faster. >> it will be much faster. i think siri will be much better. some of the software things are going to be better. it will be thinner. it potentially could be waterproof. >> i'm dwreling so you can hear me. so we talked about this last time. >> we could sit together. >> if we're going to stay apart like this. i'm going to build a wall. >> i know i guy who could help you with that. >> right. i'm going build a wall right here. >> he does construction. he's a developer. he could help you. >> can you give he a hint? is hi term used his bridge, but not anymore. >> i think he lives down that

way. >> did you see what qe globally. >> $180 billion. >> i listen to you joseph. >> you did. >> i watch you on the television every morning. >> is that okay? 180 billion a month. doesn't that seem like something might go where it shouldn't go. >> i imagine it is, but the alternative might be worse. i don't know. >> you're like the counter factual for brexit. we saw that counter factual. knew highs. na anyway, japan expectsed to unveil a stimulus passage. the move according to reports is an effort by prime minster shinzo abe to reflate the economy. the amount the janz government will spend to directly boost growth is unclear. i don't know how this is different than the last 20 years

and efforts to reflate. announcement comes earlier than expected. pressures the bank of japan to match that spending plan at its policy which ends friday. the nikkei as a result up 2% on the news. as for currencies, you can see that we are below now 1.10 on the euro. the pound is below 1.31. the yen has not recently been a problem for a while. there's energy which must have rebounded a bit yesterday. here we are right at the midpoint. pretty fast with this. between 40 and 45. goes below 40, i think that's a problem. >> if it goes down in the 30s, i think people talk about global growth again and get worried. goes back above 45. >> talk politics this morning.

>> i get my stone out. tranquility stone. i brought it today. >> we have a live interview with bill clinton on the set. >> i've done it once. no, you shouldn't imtalt presidential candidates as a journalist, should you? >> you imitate the donald and i'll do -- i'm not that good at it. i'm work on it. >> you debut it tomorrow. >> in the meantime let's talk about what did happen last night. history was made in philadelphia as the democratic convention formally nominated hillary clinton for president of the united states. deeply personal speech by bill clinton. >> if you believe the measure of change is how many people's lives are better, you know it's hard and some people think it's boring. speeches like this are fun. actually doing the work is hard. some people say, well, we need

change. she's been around a long time. she sure has and she's sure been worth every single year she's put in to making people's lives better. >> and i move that hillary clinton be selected. >> and it was bernie sanders himself after days of trying to unify the party to select party as the nominee. tonight after the convention we're going to hear from president obama, vice president joe biden, vice presidential candidate tim kaine. we'll have a lot more on the democratic national convention. >> so that speech was gratis last night. you don't even need to give anything to the foundation or anything. that was just purely -- you know. >> the going rate i got up to like 400. >> good for him. >> i know. that's what i say too.

>> who would say no? >> great thing, america. >> it is. >> you pick and choose your places. anyway, tesla opening the doors of the factory in nevada offering a massive facility to start making battery sells next year. 2 million square feet has been built out. that is a fraction of the 10 million will have when completed. aims to produce batteries in time for the launch. in addition to be sees out, also unveiled master plan for tesla's future growth. news conference addressed how to pay for the plan and the gig gentleman factory. >> we're seeing very good. participation from suppliers. you know, we're expected essentially funded with model s

and x revenue with money we have right now. potentially with a modest capital raise, but i wouldn't say a significant one. musk says the factory could potentially support 1.5 million vehicles a year. are we worried about production goals? >> it's very tough. >> got to get to where he's going, but we hope he makes it. in the meantime let's talk apple stock. that stock on the move after reporting results atop expectations. >> good morning. >> will i was trying to make the case to joe not only that there was a beat because the expectations had been lowered, but we're in a strange period for apple come to say this fall they get their act together and everything comes out as well as some people expect. actually there will be a whole new drive for people to buy

phones. am i right or wrong and is there anything that you've read in the gossip sites that makes you excited about what is to come. >> on the gossip sites, no. we've been doing survey work for five years now. even without knowledge of what's going to be new, there is a significant upgrade cycle coming up. that's because you get a live cycles on the f cycle. you get an extension of cycles and you get a compression of life cycles when you get the foreign factor change. no matter how small it is, you saw that from the 4 s to a 5. you still got relatively good year growth. even in the u.s. where it was already a saturated smartphone market. on to 5 s to 6 you got massive

growth, but now we're going from a 6 s to a 7. you will have ar slight change. you still have year growth. where basically the compression of life cycles combined with ongoing share gain from android will drive the year of growth. >> what about ipad devices. what about mack books? for the people -- i think there's a whole community of people waiting for the next devices who have been putting off buying new devices because they think something is coming. do you think that's a good sign or bad sign for apple. >> well so with it will i pad and macs at the end of the day, 70% is coming from the iphone. i don't care much about the ipad and macs. that was largely because of asp increase from ipad probing.

is that sustainable, probably not. >> how long when you set a price target, what's your time frame. >> 12 month price target. >> so when did you set it at 173 how long have you been there. >> when i came out a with a hold rating. that was based on the data we had 6-s was going to be a down cycle. when the stock hit 100 we upgraded its. >> how long has it been your price target. >> reporter: one day. it was 168 yesterday. we raised it slightly because of. >> so you raised it yesterday. how long were you at 168 when it was at 135 were you at 168. >> no, i was at 144 with the grade. >> greg: so as it went down you raised the price. >> yes because we had greater confiden

confidence. >> it already came to fruition. >> what did. >> the barely thesis. the fundamental bear thesis. 173 will gi$173 will give you a dollar market cape. >> sure. double again then you're at 1.2 trillion and you're 2.4 trillion. we've seen this before. it doesn't happen. other people come into a market. like you're seeing with the chinese competitors now. >> yes, but again, by the way these chinese competitors have been there for at least two years now and the survey work clearly showed that those who on a 6, they're going to be upgraded. >> so you foresaw declining revenues. >> we did. we're actually 13% below consensus. >> even at 130. >> yes. >> there's trouble finding any

analyst. >> it's been a tough stock for a lot of people. >> it has been a tough stock for a lot of people. last question, one of the things that was so fascinating on the call last night with just this relentless focus. you know why i'm going to go with this on everything, but the devices themselves. meaning, when it comes to what they're selling in terms of apple pay, all of the credit cards they have on file, is that because that's where the growth is going to come from and how much growth do you actually see from the services side. >> i think it's more reflection of what's happening in technology where things are shifting from a capital expenditure to operating expenditure. you see that move in enterprise spending where things are going from capital spending for software and hardware into a service model. >> you don't think that fundamentally changes their model because they are still a hardware provider. they're still the big business. >> absolutely. >> did you ever see a time where those lines cross and you say these guys are a sub skrips

business. >> i'm not modeling for that. you could make an argument that could cross maybe three to four years out from here. that's too far out. >> that's a much more resilient business. >> it would be. here's a point of why we talk about live cycles. if you take out the contraction and expansion of life cycles you start to look at a subscription business. that's why they're trying to do subscriptions basically. >> thank you for coming in this morning. >> thank you. >> we have to talk about another technology company as this general contractor here he's building a wall. it's not a great wall though because it's a little film zi. >> going to build a wall. >> there's the wall. you've built it. doesn't look that great though. i don't know if this is making america great or not. >> if you're going to sit way

over there, i'm going to build a wall. >> the quality of the wall is in question here. >> i don't think it's bad. i feel better. >> as long as you feel good about it. >> stay over there. the other big mover on the heal heels of twitter. and the company after offering very disappointing current quarter sales guidance you can see what's happening. is shares are slumping despite news the user base grew. third quarter outlook reflect a continuation of trends that were discussed last quarter. >> i just want to comment on the wall. there's been litigation -- this contractor that we both know, there's been litigation of the quality. >> so you're questioning some of the construction before and.

>> wait a minute, how quickly did i get the wall up. >> below budget. i didn't spend a penny. i used existing materials. >> illegals like myself could get through this wall. >> you're not actually an undocumented -- you're a documented democrat. >> i'm standing on top of the wall as an independent. in the meantime, we're going to talk markets. we'll introduce in gentlemen on the other side of the wall. >> the s&p alternating between gains and losses. crude oil hitting a three-month low. joining us now, global macro fidelity investments. did you hear me or were you ears burning. >> i heard you. >> so your ears weren't actually burning. you think eventually this sort

of -- this move higher that has you know confused a lot of people. you think we'll find out why it's happening. >> yes, so for the last year and a half the market has been in a range as we all know and i've been saying on this show that with valuations kind of fold, the fed in some or the soft tightening mode really comes down to earnings to push the market higher in a sustainable sort of way and earnings growth has been falling. we're now in the fifth consecutive quarter of negative growth. if you look under the hood of the second derivative and terms come on the rate of change not on a change in the level itself, that the current quarter q 2 is turning out to be less bad than the first quarter, which was worse than the previous quarter, which was worse than the previous quarter. it looks like we're changing the sequence of sort of lower lows to a higher low and that's what

the market is sort of sensing here and that's why the s&p has railroad about 40 points above highs. >> so the qe we are seeing, that's probably still helping global markets you would think. it's not here anymore, but doesn't 180 billion monthly in global qe, doesn't that -- couldn't that be part of a falls move higher in the equity markets? is it finding the way here. >> so it's ironic. when i look at valuation and try to project where the market may be going, i look at different regimes, discounted cash flow model. put in earnings, put in the rate at which they get discounted and you can come up with a 2500 s&p through earnings growth, but also if the discount rate collapses and i think kind of immediately post-brexit we're starting to move in that direction because the 10-year

treasury note. central banks are doubling down on accomodation so it looked like we were heading to a sugar rally which would be less sustainable. at that sort of second derivative level i'm seeing things getting less bad on the earnings front and i think that has something to do with it. we're at zero earnings growth right now and very low interest rates. with those numbers, it takes very little and the market is hitting at a aum time high. takes very little to push the market higher on even just one percent. >> we know there's some dislocations in the energy sector which the multiples are high because earnings fell 830 kt. we know who to real earnings power of the company are. those aren't real. that doesn't accurately describe an exxon or something. is there a s&p number in the section 12 to 18 months that you

think is achievable? is 24, 2500 possible? >> fundamentally if we can get a couple of percentage points of earnings growth and interest rates don't go up a lot, which i don't see happening, we could easily get to 23, 24, 2500. >> what's a nurmg on the downside you don't think we'll go through again? we're never going to 3,000 on the dow gwen most likely. >> will i doubt it. >> ever. >> beyond a for years nobody knows anything. even beyond a year probably. >> right. >> if i look at the kind of regimes that would be very negative, the most negative would be a deflationary contraction in earnings and earnings fall 20%, but guess what, earnings have already fallen 15%: you can't see it in the earnings per share which has been flat lining for a year. that's because of financial

engineering. if you look at the familiar earnings, they're already down 15% from its peak. >> so a typical contraction would be 10%. you can get to a pe of 14, 15. you can get there, but i think the most likely negative scenario would be some sort of stag inflammation nare environment and that would be a 15 pe. >> thanks. what structures are you talking about that we're shoddy? >> you've been to the golf course? they're all beautiful. the structures are beautiful. >> i've seen when people script it. they put the bad wiring in there. did you see what happened? do you have evidence the wall is going to melt? >> no. >> i'm suggesting this will might fall over as we speak.

see, look at this type of construction. this -- i'm getting rid of the wall. it was good for a second. >> coming up, history made in philly. we're going to talk about hillary clinton getting the democratic nomination, back in a moment. we got another one. i have an orc-o-gram for an "owen." that's me. ♪ you should hire stacy drew. ♪ ♪ she wants to change the world with you. ♪ ♪ she can program jet engines to talk and such. ♪ ♪ her biggest weakness is she cares too much. ♪ thank you. my friend really wants a job at ge. mine too.

♪ i'm a wise elf from a far off shire. ♪ and sanjay patel is who you should hire. ♪ thank you. seriously though, stacy went to a great school and she's really loyal. you should give her a shot. sanjay's a team player and uh...

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that's struggling to come together and find unity. we were outside the wells fargo center as the delegates who support hillary clinton were pouring into the facility for the beginning of the convention. hundreds of bernie sanders protesters lined up just outside the fence and shouting and hollering at the democratic delegates as they walked in. the bernie sanders people not happy with the hillary clinton selection here as the democratic nominee. nonetheless, their guy, bernie sanders himself was the man who wrapped up the roll call of the states for vermont putting hillary clinton over the top as the democratic nominee last night. here was that moment. madame chier, i move that all votes cast by delegates be reflected in the official record, and i move that hillary clinton be selected as the nominee of the democratic party

for president of the united states. >> so a big cheer there inside the hall. outside the hall the protesters told me they're going to continue the bernie sanders movement even without bernie sanders at the head of it. meanwhile we had bill clinton speaking tonight. last night rather and really making a personal argument and interesting choice here using the clinton marriage as sort of a narrative hook to explain why hillary clinton is best qualified to be president of the united states. here's what he had to say. >> hillary is uniquely qualified to seize the opportunities and reduce the risk we face. and she is still the best darn change maker i have ever known. s it is a change election once again in america. the moment they put hillary clinton's live video image up on the monitor here and shattered the glass ceiling.

the first woman to be selected as nominee of a major party. guys, going into tonight we're going to see president obama addressing the hall now two former presidents addressing this crowd and it strikes me the difference between what we're seeing in philadelphia and what we saw in cleveland is in philadelphia, you've got the rank and file. the people in the street who are rebelling against the party very visibly. in cleveland it was the elites. it was the former presidents of the republican party rebelling by staying home. you've got two parties in very difficult situations, but very different situations going into november. >> but the democratics are the party in power now and you would think they're previous presidents would be at the -- you know, to try to extend the legacy and extend the eight years. i saw the piece in the "washington post" that said how glit si the democratic convention was going be compared

to the republicans. they mentioned it will have president obama. the first lady. it will have a form r president. i can't believe it. her husband is going to speak. i get it. it's not -- i don't know how profound that is. >> i made the point. >> hw is 1992 or' 93. trump said the invasion of iraq. i don't think jeb is showing up any time soon. >> what other republican president is still alive? what other republican president is still alive? is elites. >> well, the most recent mitt romney was not in the room either. the elites are not happy with the nominee. here it's the base of the party. they're different problems both sgants problems going into november, i think. >> okay. thanks.

for more on day two of the democratic national convention, let's bring in democratic strategist, steve mcman and co-founder of purple strategies. michael, i still don't get the purple thing. you're blue, dude? right? you are blue. you're not purple. there's no blue and red coming together and stuff you tell us when you come in here. boris is glad to admit he's red. >> but you can't have purple without having blue and red. >> you've got no red. you're going to give me all blue talking points right now. >> i'm going to talk to you from the blue side. my business partner is quite red. and anybody who wants to find out more can go to purple strategies.com. >> good pitch. >> excellent. >> it was a perfect opening. >> i did that for you.

>> thank you very much, joe. the first woman ever nominated. >> i was unable -- i actually had something to do. i was -- like boris -- >> hisry was made. >> i'm very happy. it's historic. my hope was the first woman president might be from the other side of the aisle or someone more conservative like a thatcher perhaps. or less government, more free market type solution, but i embrace and celebrate the first woman nominee. >> anyone with daughters, i. >> i have a daughter. >> absolutely. >> just as the democrats celebrated when sarah palin was the first vice presidential nominee. >> we did. we celebrated for different reasons. the hypocrisy is thick here. the democrats will use anything to celebrate hillary clinton even though they know just as

the previous report said the base is absolute against her. as you've seen it play out in the polls. >> i'll tell you what i struck. we know so much about hillary now over the past, you know, more specifically in the last year or so and then i almost forgot some of bill's stuff. his own stuff individually and then those two together. it's just that is quite a pair. you got to had had miadmit in t question stuff going on there. >> i mean, the republicans are the party of family values and this is a couple that chose to stay together for a very long time in spite of some difficult circumstances. bill clinton acknowledged that last night. it's easy to forget some of the things that bill clinton did, but it's not very difficult to remember the economy when he left office and the growth in the economy and the deficit and where it was relative to where it is today and the surplus that he built up. so for all of the criticism of

the clinic'ton's, the economic growth and job creation was bill clinton's presidency and we've been in a hand bask since with republicans. >> there was nafda, welfare reform and newt gingrich and a congress that moved him to the center. there's no indication. >> and there was a president who was willing to work across the aisle which frankly doesn't ham enough. i'm going back to purple now. doesn't happen enough in washington today. i think all of your viewers would acknowledge that, joe. >> i agree. that certainly takes two to not ta tango. >> if she's a change maker, she was part of the presidency. >> she drove that foreign policy.

she did run against him she chose to join the administration and she was a hunl part of foreign policy which result instead disasters all over the world. so she already failed as part of this administration and now she wants to run on change from that add administration. here is what makes sense. you should take donald trump's adage here maybe to heart. donald trump said that george w. bush is disable. >> that was eight years ago. >> she walked into isis not existing and isis exists now. >> the destabilization was there. what created the destabilization, was the iraq war. that's what your candidate says. >> you're going to be running against george w. bush. that's a losing strategy.

>> that's what your candidate says. >> so that's fine steve for you to do, but the voters see through that. you had eight years of barack obama. you want to run again against george w. bush. that's your decision. she has to run on her record. if you're going to say she's the most qualified person to run for president. >> compared to donald trump? >> his record is what? >> she's not going to be in varsity. >> compared to donald trump, you're joking. >> i can give you a record of job creation. record of success in the private sector. >> bankruptcy, stiffing people, fraud. >> unless the clinton foundation, unless you consider the clinton foundation the private sector, then they've had a lot of success. >> okay. see i'm not feeling purple at

all. i'm not feeling purple. >> i'm not aware of any fraud charges or rico charges pending against hillary clinton. i am aware of some pending against donald trump for trump university. >> she should have been fired add secretary of state. >> steve and boris, thank you. >> feeling purple today joe. >> doing better in red. >> i built a wall and it was going to be red and blue, but now the wall is gone so we're going to do purple. it's kind of fun to watch. >> that was, wasn't it. >> i just let it -- let you. >> boris is in philadelphia. he must be in disguise or something walking around. >> coming up when we return, more in just a second. i enjoy keeping people up at night. my analysis shows your stories .

welcome back to "squawk box"." announcing backing trading company. kelly joins us with more on the story. what is this about? >>.72 chventures has promised 2 million to trade for the crowd source trading developer, manages $11 billion would put up to a quarter billion of assets into algorithmic models and pail royalties based on performance. get $2 million in investment capital from the fund.

which comprises money from cohen and employees. kwaun taupe yan has been around for five years. conceived as a way to attract new trading models at a public platform used by professionals or perhaps hobbyist to trade their own money. ceo has already gotten funding from partners, he say this is one is an important next step. >> one important thing for us is really just closes the loop for our business model. now we're going to be able to make large allocations to the strategies and expect they're going to have much higher earning power as a result. >> he was sitting next to renad. was an architect of this deal. he is also on the board.

he says they'll start trading some of the money on these models in the coming months as soon as the piping can get set up. >> when you think about steve cohen now, how much do you think the stuff he's going be buying is going to be like this or how much is going to be in silicon valley. >> you have to think about it two different ways. cohen private ventures is his company. he can do whatever he wants with that. that's his own personal money. .72 ventures is a new fund set up in may and that's going to focus on financial technologies like this. they have a few more announcements between now and the end of the year. >> all trading oriented? >> i don't know about that. i asked what he thought was next and he said we're looking at all sorts of ways to crunch data. whether it is data about employees like client's software for example or algorithms like this. anything in between. you can sift through the ocean

of information we're all trying to navigate on a daily basis. >> maybe they can sell a product to the next guys. >> why. >> i don't know if you saw this story. bridge water likely to get a lot of buzz today. employee at the hedge fund filed a complaint earlier this year. arguing it was like a cull drun of fear. employees who don't fit the firm's mold are said to be silenced. this is a bit of a sexual harassment case. little unclear what's happened. these guys by the way use software probably more than any firm out there. >> it's interesting though because it turns philosophy of management on its head. it sound like. this whole radical honesty you talked to them about. who wants to be surveilled 24/7 at the office, but they feel it's actuallying wrong to talk about someone behind their back

or assess their performance without keeping them in the loop. >> you know what the deal is. >> it's a little -- that's my only -- i don't know enough about the details in part, but they haven't all come out yet. >> they're silenced? permanently silence snd. >> that's probably the allegation. >> terminated? >> no. >> silenced. >> well you can't be permanently silenced. that's against the law. >> i'm thinking. >> kelly, thank you. >>. coming up, buffalo wild wings' ceo sally smith. we are coming right back.

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coming up, is the fed about to say see you in september. sharknado star to join us. take some cover set in the next hour of squawk. >>

just yesterday we had the ceo of lilly john lechleiter on

as we usually do after results. today the news is out that mr. lik li lechleiter will retire. mr. ricks will assume the president and ceo titles on january 1st, 2017. he'll become chairman of lilly's board six months later on june 1st, 2017. and that means that john lechleiter will continue as chairman through the end of may 2017. as lilly transitions from our recent challenging period of patent expirations to a new area of growth, it's the logical time for transition in company leadership. we like john, like having him on. i'm sure we'll continue to have him on. maybe we'll get mr. ricks on as well. but lilly has been tough with some of the biggest name drugs

you ever heard of that went off patent. it's one of the weirdest businesses in the world. you've got lipitor and then it goes off -- not eli lilly, but as an example. then it goes off pfizer and then patent. how do you replace that? >> it's tough. we have another tough business to talk about pl being a member of the fed. it's a tough business. >> what do you mean? >> let's talk to -- >> you know what's tough? it's tough to take the punch bowl away. it's not tough to just let the good times roll. anyone can do that. and as we now know. >> not so clear at least at the moment. the fed kicking off a two-day policy meeting. investors looking for any clues, of course, so they could signal a september rate hike. joining us now wall street

journal -- you are the wall street chief. >> all the same. >> we'll take wall street chief. markets priced out any fed hikes for the rest of the year, you said this was an overreaction. why? >> because it turned out that the -- you know, the world did not fall apart after brexit. stock markets rebounded quickly after that. we've had sort of scattered survey data. do not suggest things are falling apart. and the rest of the world seems to be doing fine. if you're the federal reserve and ask the question, why didn't we move rates in june like we originally thought we would, there were two reasons. lousy jobs report and the brexit risk. risk does not seem to be as bad as they thought it was. they're baseline cases that at some point they want to start the process of raising rates again. >> dare i say are we going to be back because we have an election season upon us? >> first of all, i think there's

a solid economic case for moving in september. now, we've got eight weeks. that's a relatively long stretch between now and then. we'll have more jobs reports and so on. if those things deviate from what they expect, that could be a reason not to go. you raise a good point about the election. i think similarly with brexit, it raises one of those quantifiable risks they don't know how to grapple with. if the business contacts are saying there's a lot of uncertainty about what's going to happen after the election, we're holding off until then, that might be an excuse to kick it to december. you won't get the fed talking about risk. it's not the way they operate. but it would be a case for signaling in september they're inclined to move soon but not pulling the trigger until december. >> you wrote a fascinating piece called the rise of zero sum economics. and this whole idea of trade and trade imbalances and the view of donald trump and others. what does the fed with how they're going to have to play into this look at it?

>> one of the interesting phenomenon over the last few years is as we get year after year of growth, is this because people aren't spending enough, demanding with or the potential growth has fallen? and when you hear major candidates from both parties basically saying we don't care about economic growth. we care about jobs from china and mexico. you hear a political agenda that's much less concerned with getting underlining economic growth back up. and not that you can bake that into a forecast, but i think in the end it makes any economist including those at the fed more pessimistic about the long-term potential growth of this economy. >> greg ip, "wall street journal" chief economics commentator and my personal wall street chief. >> thank you, andrew. >> thanks. >> i think you should go with greg pi. i think that's a cool ir name. you're going to use just two letters. he has admitted.

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. an earnings storm is brewing. >> it's a tornado! >> comcast, boeing, coke, and more. the numbers and the market reaction are just ahead. plus we bite into apple's earnings. is the company not selling enough high-end iphones? we'll ask analyst steve malonovic. >> hillary clinton makes history and storms the convention. bernie sanders officially nominating his rival. a wrapup of last night's speakers straight ahead. and a shark storm is about to hit sin city.

>> hold on! >> the next installment of "sharknado" is this weekend. the star of the series ian ziering is here. as the second hour of "squawk box" begins right now. live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" right here on cnbc, first in business worldwide. it's just joe and me today. becky is out. futures at this hour is up. nasdaq up 30 points and the s&p up about 4 points. we'll show you oil quick. wti crude at $42.71. our parent company just came out with earnings. joseph? >> yes. comcast just out with quarterly numbers. we said it's an earnings storm today. and it's only been a couple weeks since that report came out

from safe port. because of the domestic operations. and you can see that's not just their sentiment given the stock has been breaking out. and it's up nicely for the year as well. here's the earnings, 83 cents a share. came in 2 cents above estimates. revenue also above. it was $19.3 billion which i believe the the mean estimate was under $19 billion at $18 billion and change. and then you get into the specifics and it is a widely disparate set of assets. >> you want to talk cable? >> you could talk cable. you see broadcasting operating cash flow. that number, i had to check to see whether that -- >> broadcast up 17.3%. >> revenue up 17%.

>> cash flow. 70.5%. and i also thought this next number was -- theme park operating cash flow was up something like i think 40%. i guess because japan universal, adding that in, obviously. but also because of the new harry potter stuff. and then you've got all the other business that like you said for cable and those are pretty good. 4,000 video customers were lost. that's the lowest loss of video customers in ten years. we know increasingly it's a high speed -- >> you saw 115,000 new customer relationships. that's the business. >> high speed internet customers. that's the best second quarter result in eight years. and then on almost all of the metrics, analysts expectations

were exceeded including the earnings per share, consolidated, cable, and nbc universal revenue, operating cash flow as well as cable customer results. all above expectations. brian roberts is going to be on. he's in philadelphia. >> he's in philadelphia. he'll be at 9:45. >> i think he was at the convention. he comes on our show, but i think he's actually going to be from the convention center. >> and we haven't mentioned. pretty good relative to tough comps. you remember the other piece of this was the movies last year. all things considered -- >> the way "pets" has performed is taking some of the -- got to figure in. >> and we will see how earnings turn out next quarter because of the other piece of this. we have olympics coming up.

>> i want to see the stock. where's comcast. i wasn't watching. >> i did not see it move. i don't know if we had that frozen. we will take a look at it. it's been there the whole time. i don't know if that's shifting or not. meantime, dow component coca-cola reporting just moments ago. revenue fell a bit short. sara eisen has come in morning. she's got exclusive comments from the company. >> good morning. and the company is emphasizing which are weighing on the top line number. let me run you through the numbers here. 60 cents is the earnings per share. that is above the slight beat analysts were looking for. as far as the all important revenue number, $11.5 billion. analysts were looking for $11.6 billion. they expect organic revenues to be up in 2016. while it is a sign of strength, that pure organic revenue number, it's not quite where it

needs to be. that's what analysts need to see. it still sees flat volume growth and the coo james quincy who is in line to be number two in line to be number one in this company to take over says look beyond the noise and look at that organic revenue growth number of 3% which they posted. it shows that there is a sign of progress. i asked him to describe the quarter in an adjective and he said signs of progress in our long-term goal, it echoes of mukhtar said. >> that was not an adjective. it was a few words. >> it was a way to spin this quarter beyond the noise. signs of progress in achieving our long-term goal. which is that higher top line growth. one thing that analysts are going to wonder about is the negative volumes for sparkling which is their way of saying soda volumes.

actually declining. it's a company still dealing with major headwinds and changing consumers who are moving away from sparkling into the still where it continues to see growth. that continues to be a bright spot. and north america is also a strong point. we talked about the global macro. coke sells in nearly every single country in the world aside from cuba and korea. so they're deal with that. they're refranchising their business which they say they are on track to complete by the end of 2017. and their pricing is working. >> always charging more for less. >> that's the job. maximizing profit, right? >> thank you so much. in the meantime, let's talk politics. democrats making history by nominating the first woman in a

major nominee. mrs. clinton thanked her supporters in a video. >> i am so happy. it's been a great day and night. what an incredible honor that you have given me. and i can't believe we just put the biggest crack in that glass ceiling yet. thanks to you and to everyone who's fought so hard to make this possible. this is really your victory. this is really your night. >> hillary clinton's going to be speaking thursday night at the convention. tonight vice president biden's going to be on the ticket or on the stage. vp nominee tim kaine. and then president obama will be taking the stage. >> and mark cuban taking to twitter again last night trolling donald trump. the billionaire investor tweeting in part, maybe donald trump didn't release his taxes because hillary clinton paid more in taxes than trump made in income. as for the controversy about how much money the clintons have made in speaking event, cuban

noted he gets offers almost daily and says it's a great business. is he still mad? i think about that horrible show he tried -- like "the benefactor" -- it was the worst show ever. to compete with "the apprentice." >> and then he came back and did this other thing. >> "shark tank." oh right. i need to be nice. apple out with quarterly results last night. the tech giant selling more iphones than wall street expected and it was the first time the company saw revenue growth. offering a revenue outlook for the current quarter that was better than most estimates. joining us now is steven malonovic. he is the i.t. -- did i get that right? >> you got that right. >> joseph looked at me like i was getting it wrong. >> what's your target now,

steve? >> still $115. >> for how long? >> probably four, five months. >> what was your highest target? >> i think you've asked me that before. i think we were at $140 maybe. >> that's not bad. we still have people at $200. >> we expected to see a better fiscal '17. but the numbers are a little better than expected. >> we talked about this. when iphone 7 comes out, how much pent up demand is actually going to be there for the device. we don't know obviously when this factor changed to the 6, there was a lot of reason and demand to upgrade. what happens for the sale? >> our guess is still you see moderate, single digit growth with the iphone 7. doesn't look like the features are going to be tremendously different. people are already talking about the iphone 8 the next year. people are, in fact, hanging on to phones longer.

we are expecting to see an improvement. people are looking to the next cycle already. >> one of the things apple looks toward is to the extent they can be seen as a subscription or service company nap is a growth business. >> that's right. it's growing about 20%. and tim cook's talked about that for a couple quarters. it's not a services company. their services are still tied to their hardware sales. no iphone sales, no services sales. but profits are about 15% of the total now. it's growing again. >> do you ever see a time where they swap places? meaning right now you're right. it is absolutely a hardware company that happens to have a as much ass busine services business. does it ever swap? >> i don't think so. where people perceive there's a revenue -- >> people don't talk about growth. >> that's true. taubt services people, when people talk services that means

there's no growth. i wouldn't come to that conclusion. the stock is in value hands at this point. people looking for double digit growth. we wrote a piece on why is apple priced like ibm. services are still supporting the hardware. and it's all about the ecosystem. he talked about the customer experience last night. for now it's a hardware driven company but the services is the glue that keeps you tied in. >> when you look around the corner and say who's coming up that could be eating pieces of -- is there a competitor out there or is it just a fundamental shift in ou people are buying these things in terms of holding on for much longer? >> the good news is much of the debate is about when people upgrade. it's not if. >> it's not i'm going to buy a google phone, i don't think. >> no. they talk about switchers from android continuing to be strong. now waway in china is taking shape. i think people are now focused on augmented reality, virtual

reality. apple is strong there. in a big way, probably. but you're going to see only artificial intelligence into the apple products like siri. people perceive apple as behind in ai. i think it's because they're quieter on it. >> my piece on that debate is not so much they're behind, but given the stance that tim and others at apple have taken around privacy, the idea all of the processing work is going to happen opposed to in the cloud, for example, that it is a technological barrier to doing certain things that google and others may be able to do because they're doing it at a higher volume on a server somewhere. >> that's right. you need the computing power of the cloud. you can't do it all locally. they've got interesting technology they claim will give them the best of both worlds. we're going to see how that plays out. >> why is it more likely we don't know the name of the

company that leads in ai. microsoft, we know what they did. facebook did social. we know what they did. i mean, how can you assume -- you say they're behind but people don't understand it. why isn't it just they are behind and somebody else is ahead? >> it's possible. ibm has watson. there's a lot of different approaches. the new companies tend to pioneer new markets. >> you can finish that thought in a second. then i was thinking about with waway the story was increasing in china. if it's already decreasing then the peak has been hit for market in china? >> we don't think so. >> so they'll come back. >> last night tim was saying you've got to look at the product cycle. this part of the product cycle we tend to lose share in china. our surveys in china suggest significant market share change increase for apple the next couple years. >> it's got to happen. >> but the upgrades, they've got

to get the install base upgraded. shown last night and my sense is about a third of the installed base is still on old phones. and they're starting to move those. >> steve, thank you for coming in today. >> thank you. >> $115. coming up, shareholders of buffalo wild wings' stock has been hit this year amid slumping comp sales. the company is looking to help the beer and wing giant get back to its winning ways. then at the bottom of the hour, earnings from boeing, the dow component, we'll bring you the numbers and the market.

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[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. buffalo wild wings out with quarterly results this morning matching forecasts but the chicken wing chain reporting a drop in same store sales. reported a 5% stake in the company. joining us now is sally smith. ceo of buffalo wild wings. we've had you on a lot, sally. you go back five, ten years and you can see what an incredible growth story it is. in the last year or so, i don't

know whether it's growing pains or input costs or what, but it's been tougher sledding. where are you right now in terms of -- i don't know, is it a transition? you know, we had a solid quarter. and we delivered on as you mentioned our net earnings of $1.27 a share beating consensus. negative same store sales continued and i think it is a broad category concern that the industry is facing right now. so i don't think we're different than anybody else. i think we've got some great sales driving initiatives both for the short-term and long-term. and that's what we're focused on. >> do you know -- we always talk current what's coming up, you know, march madness, things like that. you are familiar with something that the nbc universal family is going to be bringing to the world next month.

are you not? >> i sure am. the olympics. >> are you ready for that? i mean, i'm thinking about how many different -- you got a lot of tvs. i was recently -- my kids want to go all the time. you got a lot of tvs. are you going to be able to have enough tvs to have everything that's on so i can just look wherever i want to see what's happening at that time? you got enough? >> joe, there's no better place than buffalo wild wings to watch the olympics. i think you're going to be able to see every event. certainly the olympics brings another -- is another reason for our fans to come into buffalo wild wings. especially if we see some great competitions, people going for gold records, that kind of thing. it's also just the beginning of football season. so we have great draft parties planned throughout the entire season. whether you're in to watch preseason football or the olympics, buffalo wild wings, you'll see everything there.

>> i mean, compared to that period if you go year over year and compare it to last year, you will see a -- you're going to have better comps. this is going to be a tough comparison for next year, right? i mean, you can see this -- that period of the olympics on your same store sales, can't you? >> you know, as we look back four years ago, certainly it's another reason as i mentioned for fans to come into buffalo wild wings. the winter olympics actually drives probably more traffic because you have more teams competing and people like to watch teams. as we look at specific cities or locations, perhaps, you know, if you have an athlete in a city you'll see increased comps there. but as i mentioned, next year we'll have to -- we'll worry about next year next year. we're just hoping for a great olympics this year and expecting nbc to deliver. >> so what do you think -- just quickly -- what do you think this hedge fund wants? what have you talked to them

about? have they got some ideas? are you -- do you want them around? are they, you know, sort of a pain or do they have good ideas? what do they want? >> you know, we like to have open conversations with all of our shareholders. and it's something that we do continually. so i think marcado capital is another shareholder that we want to listen to. as we do with all of our large shareholders. i think there's some ideas that we're already in process at buffalo wild wings. we're going to talk about those on our analyst day on august 16th. >> so minimum wage, you know in the dem platform -- who knows. they like putting a lot of stuff in there. i don't know what comes true. but why would someone think that you can just do -- instead of state by state or city by city, what would a $15 mandatory federal minimum wage do to your

expansion plans in certain areas? you just have to stop, right? >> you know, that's what business is good at thinking about and solving for. i think you'd have pain in the short-term, but it's something that we've dealt with as you said on a state by state basis. and in some cases on a city by city basis. i think we'll look at technology looking for efficiencies, be very careful on how you hire. my biggest concern, of course, is the impact on youth employment that it could have. but we'd be just along with everybody else, i do think that, again, it's a first job. the restaurant industry trains america. and i think you need that first job to get a second job. and that's my concern about it. >> i never hear any dog whistles because i'm so clueless, you know. but there's all these dog whistles in the campaign. i don't know what it is. i guess it's something that, you know, that stupid people don't hear.

but i just heard you say efficiencies which means those aren't people when you're looking for efficiencies. there are other ways to do things without hiring people. and that's negative for hiring people, isn't it? >> i think it is. i think, again, business will solve it, but i think we will look at technology and efficiencies. >> do you hear that? >> i heard it. you didn't hear it. i heard it. >> because you're smart. sally, thank you. >> thanks for the chicken. >> it's great. and good luck. >> joe, i hope you guys are enjoying the wings this morning. thank you. >> happy summer olympics. coming up -- which is on nbc. >> it is. >> hillary clinton husband bill clinton speaking last night on behalf of his wife. ♪

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all right. boeing is out with its earnings and phil lebeau has the numbers. good morning, phil. >> good morning, joe. a smaller than expected loss for boeing, but still a loss in the second quarter. boeing reporting a earnings loss of 44 cents a share. remember they had a big charge of $2.1 billion. the revised was for 92 cents a share. revenue coming in a little better than expected at $24.8 billion. operating cash flow, $3.2 billion. they now have $4.5 billion cash flow -- operating cash flow for the year. the goal is $10 billion. they believe they're going to get there by the end of the year. free cash flow $2.6 billion. no change in production schedules for the third quarter or remainder of the year. this is the news that's going to get some attention. they are revising their full year earnings guidance dropping it by 25%. it is now estimated that core

eps will come in between $6.10 a share and $6.30 a share. you see right there, most the analysts believe that the year earnings will come in at $5.34. a smaller than expected loss from boeing and a revised full year earnings guidance cutting it down 25%. guys, back to you. >> okay, phil. phil lebeau. thanks. we'll keep an eye on boeing shares. while the dems are rallying in philadelphia, donald trump was pack on the campaign trail in charlotte. joining us with more on the battle for the white house, republican congressman chris collins who cochairs house leadership committee. i heard there were some -- rocking the house at the vfw, number one, congressman. and he may not be at the convention, but he knows what's going on there. there's a lot of tweets coming

out from the donald on a -- you know, almost about every half hour there's a pretty rich one. do you follow him on twitter? >> i let my campaign do that. but, you know, it's been interesting to watch the differences between what we're seeing in philadelphia versus cleveland. how united the republicans were and how fractured the democrats were. the walkout by bernie supporters yesterday. a contrast to what the pundits said was going to happen. it's been the reverse. the unity within the republican party, in fact ted cruz not endorsing donald trump actually embarrassed his supporters to the point they have run to donald trump. so the republican party is united up and down. the democrat party, heaven knows what's happening there. especially with the bernie supporters. but what's come out between the lies to the american public

obviously hillary perjuring herself to congress, then the democratic national committee targeting bernie sanders. something they lied about. one thing for sure, lies and scandal have followed hillary clinton from really the start of her career. it continues. that's a woman who is corrupt to the core. >> well, i gently made the point that, you know, we've been focusing on hillary. a lot going on with hillary the last year. but then we have bill. president clinton speaking last night. i was reminded of, wow. separately they've got a lot going on just that we know about. you put the whole thing together and it's an interesting dynamic. i will say one thing, congressman. your narrative right there, you would have to be very selective in your media outlets to find anything close to that in the terms of the narratives that i've been reading about these two conventions. >> you're right. the liberal press is portraying

an image -- >> wait a minute. i don't -- >> congressman -- >> i take issue with that. but i saw for donald trump's -- they were unanimous. i saw every outlet call it dark and foreboding and negative. and i saw every speech coming out of the dnc has been uplifting and they've been knocking it out of the park, people are crying. i mean, it's been, you know, it's been unbelievable. stark contrast. >> congressman, i hate to have to be pushed into this position to try to balance this situation out, but, you know, you talk about telling the truth. i'm looking here at politifact -- >> somebody needs to politifact politifact. left wing -- >> that's wrong. i'm looking at donald trump literally 4% of what he has said is true. only 4% of what he has said is true. 37% is false. 16% is mostly false.

15% is half true. and 18% is what they're calling pants on fire. this relative to what hillary clinton has said, it looks -- you know, you would think that -- >> luckily that wasn't under oath what he said. >> ultimately what you're going to see is the voters -- if you think the country's in the right direction, you're going to vote for hillary clinton. 80% of the country says we're going in the wrong direction. we need to make america great again. so the voters are going to decide this election. >> that may be. i'm not going to dissuade you of that view. i'm going to say if you come on here saying who tells the truth. by the way, both of them have said things that completely are not true. i'm just suggesting to sit and impugn one over the other on the truth seems to be a crazy thing to do. >> well, when you go so far as the hillary and bill clinton perjuring themselves in congress, that the a whole different level of lying, outright lying with a smug face. that's what hillary has done.

now you've got debbie wasserman schultz who had to resign at the beginning of the democratic convention. could you imagine if reince priebus had to resign at the beginning of -- >> that news cycle is so over with the mainstream media. >> the liberal media would like to say it's over. it's not over to the american public. they're seeing lies, corruption, bill clinton who got a hall pass for their married life, those are not the values of america. >> so the bounce. again, you've got to look in the right places to see the bounce. cnn didn't even like some of their polls. it was like they buried it in the 12th paragraph that the people actually like it. but there was a solid bounce for trump. he was ahead in the cnn poll. >> absolutely. >> and even nate silver who andrew doesn't talk about anymore -- >> no. i talked about nate silver on the show the past two days.

>> do you think there's going to be a similar bounce? there'll be a similar bounce from this, won't there? >> hillary will get a dead cat bounce and that's about it. >> come on. come on. >> what do you want me to say? there's nothing to say. >> i can't believe you're bringing up politifact. politifact needs a fact checker. >> well, look. donald trump has had a problem with the truth from the beginning. i'm not trying -- i'm not here to tell you that donald is a good person or a bad person or who to vote for. i'm just -- >> he's had a problem from the very beginning, you're saying. >> you come on here and say hillary clinton has lied. and by the way, there are times she's lied. i'm just saying there has to be some semblance of balance. that's all i was trying to bring here. >> donald trump has given americans a reason to vote for him. make america great again, defeat isis, get jobs back. he has said what he's going to

do. hillary is basically saying all is well in america. you like obama, you'll love me. she's secretary of status quo. if you think the country is in the right direction, that will be her voters. >> i did see 63 speeches on monday night and four letters never said. isis. the word never spoke. maybe that's why they're not quite so dark. because if you don't talk about isis, then it's not as dark a speech. is it? >> then you've got a president who won't even use the word isis. 99% of america refers to isis. he refers to it as isil. they're relatively the same thing, but for some reason his vernacular does not follow what the public is thinking. even if he says isil, he's trying to distract from isis. >> nobody said isil or isis on monday night. then we had the unfortunate -- >> of course not. >> -- the very next morning some

84-year-old priest trying to say mass is, you know, a life was end bed. any way, congressman, the world is divided. >> definitely. >> interesting to watch. anyway, thank you. and we'll see you again. >> good to be with you. >> all right. coming up, ian ziering is back battling sharks. this time in vegas. it's the fourth installment of the syfy movie series. and then at the top of the hour, j.b. pritzker is going to be joining us from the dnc. talking a lot of truth this morning. >> you can do that. >> the futures at this hour. take a look. we are in the green. dow looks like it would open up about 45 points higher. s&p 500 up about 4 points higher. "squawk" returns in a moment. s. just 30 billion? a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called... the machine.

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welcome back to "squawk." among the stories that are front and center at this hour, third point posting. benefitting from investments and credits. saying its devoting over a billion dollars to energy corporate credits. also mortgage applications fell

11.2% last week. that's according to mortgage bankers association. largely driven by a big drop in refinancing activity. they're now at 3.69%. run out and get one. maybe i will. >> what was your last mortgage? >> i'll have to look back. we refied. >> you can do it again. >> you got a phone call. >> i did. >> good for you. what was the rate? >> 2.75% for a seven-year. >> why would you do that? take 30-year money. it's so low. free money. >> you need to talk to someone who knows. you do. you don't need to do that. >> when interest rates go up to 20%, you will be a very wealthy man. >> you pay it off. don't worry. >> i'm not worried. >> you can pay cash by then for your house. >> facebook among the companies

that will be reporting after the closing bell this morning. coming up, "sharknado" flooding the vegas strip. think about that. that is horrifying. the star of the syfy movie series ian ziering joins us after the break. that's being modest. i mean "90210," hello? the ian ziering. got to get an autograph. and a programming note. brian roberts joining the "squawk on the street" gang. that interview will happen at 9:45 eastern this morning.

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get better internet installed on your schedule. comcast business. built for business. ian ziering is here. if you only knew. boeing posting a smaller than expected loss for the quarter. revenue beat expectations though. boeing's loss attributable to changes to the 787 and other programs. also cut its full year forecast but the forecast does remain still above analyst expectations. >> our parent company out with earnings this morning. comcast earnings of 83 cents per share. came in 2 cents above estimates. you're looking at that stock up almost 2% in the premarket at $68.50. >> new high. all-time high. >> you've been watching that one. why do you watch that stock? >> just the corner of my eye. i don't -- i'm not -- >> there's a couple of good

managers i know. they got roberts. some other folks. you know those people? >> i think across the board great management. all the way to hoffman. >> yeah. okay. we have some other news. we have a star here in our presence right now. "sharknado" the syfy movie franchise that took social media by storm returns this weekend with a fourth installment. ian ziering is the star of "sharknado," a job he almost passed up but has inspired his newest role as an entrepreneur. when you came on, we talked about "90210." you had said about my wife, she was in love with luke perry. i just want to put that to you. that was the issue. you were going there with the wife. anyway, and i liked shannen doherty. and jennie who was your girlfriend on the show. >> started off as they had just broken up when "90210" aired. but ex-girlfriend. >> but you guys got back together on the show. no? >> no. >> it was torrey then?

>> no. steve was like a lone wolf. he did his own thing. >> all right. let's talk "sharknado." >> let's do it. >> so where's it going to happen this time? >> in vegas. >> on the strip? >> it starts off five years after the last "sharknado." and finn shepherd has now moved to kansas where there's no coastlines to keep his family safe. and from there that's where all shark hits the fan. we go to vegas far little family reunion. and there's a "sharknado" occurring in las vegas of all places. >> right. >> when you took this job, you almost passed because you didn't think this was going to work. >> i had an argument with my wife. this would be a misstep in my career. they can't all be "90210" moments. >> so what is it about this that you think has taken the world by storm? >> you know, i wish i knew. if i knew, i would be producing these movies myself. this is the kind of excitement that major motion picture studios pray for when they spend $100 million on a film. >> i remember when you came in

here with the first one or second one and we were talking about how the budget was next to nothing. >> microbudget. >> is the budget now expanded, i hope? >> you know, it's still in the tv movie -- >> for the zeroing family? >> a little bit. >> that might ruin it. >> you're right. then it would become a james cameron picture. it would be a sense of realism to it. this is a sense of whimsy. >> "sharknado"'s a lot more realistic. >> how much of this is now a communal experience in terms of social media. what will you do the night of the premiere? >> i'll be doing live tweeting. >> you were doing facebook live outside right now. >> this was made popular by the social media platforms. it makes sense to continue with whatever the media platform of the day is. whether it's facebook or twitter or instagram or whatever it is. >> did i just see the las vegas dude, what's his name wayne?

is he still -- >> wayne newton? >> absolutely. >> that is cool. so he's going to cameo. >> he makes a cameo singing the ballad of "sharknado." couldn't be a nicer guy, by the way. >> that's what i hear. >> how does this work? do you get picked up each year? do you already know there's two or three more in the making? >> i feel there's many more in the making. but they don't green light the next one until they see the ratings. the social impressions through across all the different mediums increase, but the ratings tend to dip. because now it's become a summer event where people get together and watch this in parties. people are partying watching this. it's ridiculous. >> joe and i might be having a party. >> i would for this. but probably other people, somebody else. but i would -- >> not you. >> not us. >> so you need -- like, the people that have been not so fortunate to survive the previous "sharknado," you keep needing new people come in to

get eaten and stuff. >> we left david hasselhoff on the moon. >> can he come back? >> we've rescued him! we rescued david from the moon with no air, nothing to eat before he expired. we were able to rescue him. >> and i saw a shot of you there and you looked fully engaged -- you were in actor mode. you look terrified. so you take this totally seriously. it's not -- you're not like making fun of it while you're doing it. there's a big problem with sharks in tornadoes. >> absolutely. well, that's my job. to act naturally in imaginary circumstances. >> but not just imagination. because, you know, "friday the 13th" is imaginary. but this is really imaginary. >> you can never let the wind out of the sails otherwise the ability to suspend disbelief will be lost for the audience. if you wink at the camera or if you, like, let people know you're too good for this material, then -- >> it's not like a "naked gun." >> no.

>> what would be the ideal guest actor that you'd love to have on? i mean, how high can you look? >> they have a stack of requests from different reps for their clients. we shoot this movie in 15 days. so it's not we can get. it's who's available at 3:00 on tuesday. it's not like we have a four-month schedule. i would love to see bruce willis come on. >> when push came to shove with this whole thing, i would want john mcclain there too. for sure. >> yeah. and another ordinary man doing extraordinary things. >> he didn't even have shoes in the first one. >> right. >> how does this franchise work internationally? >> it explodes. it's huge. syfy airs in 80 or 90 markets.

from there it's distributed independently to the other markets. and it is as popular in these other countries as it is here. i did a press tour for south america. i spoke to every country, a round table for every press opportunity down there. i did the same thing for asia and europe. i'm up at 4:00 in the morning talking to countries that i didn't know spoke english. >> right. you want to talk politics while we have you here? >> not really. >> no? >> if you would have spoken, would you have spoken in cleveland or would you have spoken in philly? >> you know, i don't have much to say on the topic. i don't know i would have been a good speaker at all. >> at either place? >> i did have some experience with trump working on "celebrity apprenti apprentice." i think mostly i identify with the guy's sense of family. super dad. raised fantastic kids. >> was he -- >> you don't tell that to your friends in hollywood. they may have a different view. >> you know, i really try to avoid talking politics and

religion. it's a personal belief -- >> ever going get another job? he's the best. >> i don't see where the mix is. >> but do you see a dangerous trump with his finger on the button? >> the guy fired me for having an unbelievable jingle. so, you know -- >> i might have seen it. >> it was unbelievable. come on. straw-berita. it's a cool thing with a new zing from the king of beers to you. >> you going to say it or me? >> you can. >> you're fired. >> of big ceo agencies that watch this, maybe we'll get a call after this. >> "sharknado" premieres on syfy -- >> run! run! >> thanks, man. >> we'll be back at 8:50 to

reprise a couple of things about "sharknado." no, you won't. >> maybe. >> coming up -- at least we got off the politifact election stuff for awhile. for five minutes. thank god. coming up at the top of the hour, here we go. going to talk business and politics with j.b. pritzker. >> we'll have the truth. >> the futures right now have got even better. up 52 on the dow. ♪

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the earnings keep coming. dow components apple, comb, bke boeing. the numbers straight ahead. glass ceiling shattered in philadelphia. hillary clinton now officially the democratic nominee. we'll talk to one of her top donors j.b. pritzker. satire without borders. the jon stewart of egypt is taking the world stage and the joke is on us. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with andrew ross sorkin.

becky's off today. if you were watching earlier, i built a wall. but then someone said -- >> built out of card board. >> -- mr. kernen, tear down that wall. and i did. >> because it fell over. >> it did fall over. but now we're back and there's a deten detente. the futures out after apple better than expected. pretty solid. plus i think comcast is at a new high. market cap is getting fairly sizable now at this point. you know, we also had boeing which last i looked, i don't think boeing is affected by posting a loss as you can see there. actually, we're going to bring it up in a second. we still have comcast up there. but boeing's loss was less than expected. and it was -- i think people

already knew about boeing and had to do with the 787. >> let's break down some of the earnings this morning. last night apple shares popping on better than expected quarterly results thus far and revenue outlook among the most important metrics. apple sold more iphones and forecast on the earnings call tim cook saying the firm saw growth globally. >> we're not going to get into products or product transitions. however, we've taken what we learned from last quarter and we did see a number of encouraging signs. talked about the number of countries that we saw double digit growth in during the quarter from japan to brazil to india. some even stronger numbers in russia. we also are very happy with the switcher rate that we saw. >> and coca-cola earnings also topping estimates. revenue fell short. citing difficult conditions in

me merging and developing markets. coke also cutting its organic revenue forecast. and boeing reporting a smaller than expected loss. revenue, however, topping forecasts. >> few other stocks to watch. we were just alluding to this. comcast posting results that were above the street. a lot of different metrics use operating cash flow. the bottom line number not quite as important. but it was above as well. 2 cents ahead of expectation. there was a 3% increase in revenue per cable customer as well othver a year ago. strong results at broadcasting. and at theme parks. brian roberts will join "squawk on the street" at 9:45 a.m. eastern. and twitter shares down sharply as the company posted slow quarterly growth since the ipo. also offering a weak current

quarter guidance. >> on twitter they would do sad, exclamation point. >> emojis too? >> maybe thumbs down. i want them to have a thumbs up. i want it to work. >> you do? >> wouldn't we all? >> no. no. no. i feel like kelly evans. i would like to -- i do use it a as news feed now, but i don't really like it very much. i don't care what everybody thinks. it's all anonymous. every waking thought that everyone has. it's annoying. buffalo wild wings earnings match forecast as the decline was offset by the opening of new locations. and ceo sally smith joined us in the last hour. >> we had a solid quarter. and we delivered on as you mentioned our net earnings of $1.27 a share. negative same store sales continued in the second quarter and i believe it is really a

broad category concern that the industry is facing right now. i think we've got some great sales driving initiatives both for the short-term and long-term. and that's what we're focused on. >> deutsche bank shares are lower. the profit plunging in the most recent quarter amid a turnaround effort. hit by weakness in trading and investment. they may need more cost cuts to turn its operations around. in fact, you know, i used to block people a lot i love blocking people. feels good to block people. now i'm unfollowing people. now i'm following like some climate skeptics and news busters. >> making friends on twitter. >> yeah. following two places now. i've gotten rid of most of my colleagues here. >> have you unfollowed me? >> i don't know if i've ever followed you. but you don't do much. i don't either. it's a good idea. i'm afraid to even retweet

anything. >> i told you you could mute people. >> because i don't know dog whistles. >> you could mute people. they don't know it. >> but if you can't hear a dog whistle, you don't know you're doing one. i'm petrified. now to day three of the democratic national convention. tonight's primetime speakers include mike bloomberg, president obama, vice president biden, and hillary clinton's running mate tim kaine. and j.b. pritzker is the cofounder of pritzker group. what's been your favorite speech so far, j.b.? >> it's hard to say, but michelle obama was -- she just knocked it out of the park. so i loved that. there have been a couple of speeches that have been off primetime. elijah coupummings who talked at his grandfather and how much progress has been made in the country. i don't know if you heard some of the new immigrants who have spoken. but they've spoken passionately

about what it's meant to come to this country. those are the things that really moved me. i must say, though, the most important moment for me so far in the convention was at the end of the delegate voting last night, and i'm a delegate from the state of illinois, the voting hillary in by acclimation and acknowledging that we have the first woman presidential candidate from a major party was quite moving. >> so j.b., you're a very successful business guy. your family obviously very successful. the geographic center of the democratic party right now and the -- what's in the platform, are you completely comfortable with where the party is right now? >> i'm comfortable with where the party is. i don't agree with everything in the democratic platform. i don't agree with everything that every candidate that runs for office as a democrat believes in. but i sure believe in a lot more

of what democrats stand for than republicans. >> well, what about -- let me ask you this. you believe in what bernie sanders stands for more than what republicans stand for? >> well, you're -- if you want to enumerate, let's talk about the things that donald trump seems to be standing for. donald trump, of course, is against immigration. donald trump is, of course, sooen phobic. >> i don't think he's ever said he's against immigration. he said he's against illegal -- why do you conflict that? you can make your point without saying it's immigration. he's against illegal immigration. >> well, i mean, just about everything that he's said including building the wall and keeping muslims out of this country has been the indication that the guy basically believes this country is a country for white people. >> okay. see, now i'm afraid of the -- i don't know where that dog whistle is going. but as an economic model, you

don't think it's dangerous to consider socialism as a viable alternative to capitalism? you think that all these other things trump says are more dangerous than moving an entire party to -- what we know what capitalism has done for the world in terms of lifting people out of poverty and it's the most effective system. you don't think that socialism is a more dangerous -- >> my party's nominee, my party's nominee is no socialist. my party's nominee is not only a democratic capitalist, believes that the private sector creates jobs, my party stands for that. >> she said don't let anyone tell you corporations create jobs. that was a direct quote from her. >> it's not -- it is not okay to be against a woman oes right too choose, not okay to not stand up

against people's hard earned rights and say i'm a capitalist so vote for me. >> j.b., here's a different question for you. i'm going to try to save you from this part of the conversation. when you think about bernie sanders and the support he continues to have, the ongoing question mark is whether those supporters really do come in line and end up supporting hillary clinton not just supporting her, but actually going to the polls and voting to the voting booth. do you think that happens? >> of course it does. i mean, i must say that in my illinois delegation meetings and being on the floor of the convention yesterday and the day before, most of the supporters of senator sanders are supporting secretary clinton. i was there, you know, eight years ago when i supported secretary clinton and she was running against barack obama. it was very hard when we lost. it was the most hard-fought

campaign, i think, ever. and there we set in the convention hall thinking our candidate was the best to become president. but in the end the choice is who the parties nominate. and it's clear to me, you know, by far that hillary clinton is the kind of president who will stand up for most americans. and that donald trump will not only stand against many americans, but frankly his positions will be bad for the economy. >> j.b., how do you explain, though, what has to be considered a sort of anti-establishment, anti-intellectual -- i'll take back the anti-intellectual approach, but an anti-establishment movement in this country and how hillary clinton plays into that or not. i would argue you're a member of the establishment, there's a lot of business people who are supporting her that are members of the establishment. how do you get over that sort of hump to the extent that you need

to articulate a community of people who really look at the current system and say it isn't working? >> well, remember that the biggest issue -- i think out in the country the way people divide is it how are you doing and who's going to help you most. and for many people they still are hurting. from the great recession. so here we are a number of years later and we're still trying to come out of it. still trying to fight the same forces that led us into it. so we've got a long way to come. but the sense of whether you're establishment or not establishment is a sense for people about whether or not you're going to stand up for them. and it's clear if you -- >> j.b., if i were to ask you, so looking at -- let's say we look at it as a third obama term or, you know, the president wants to make sure his legacy is

intact with the next administration. we're at about 80% of the country thinks we're headed in the wrong way. headed in the wrong direction. and i figure by -- if there's a third term we maybe get up to 90% or 95% with progressive policies. but from what i've just heard, i guess that we got to go back eight years to find the roots of all this? it's george w. bush again? is that the roots? >> first of all, the concept that there's a third barack obama term is ridiculous. you're suggesting that because president obama wants secretary clinton to win that somehow she's a carbon copy of him. we all know that's not true. we also all know -- i mean, joe, you're not supporting donald trump because you believe in everything that he stands for, are you? >> i didn't know i was -- i mean, i'm arguing with you about -- you know, that's why there's a curtain on the booth, j.b. as you know, i'm not going to

ask you who you're voting for either. >> no, but pretty clear -- i maim it pretty clear who i support. i think you are too. >> i've got to be one person in the media that pushes back against stuff that's so absolutely ludicrous that comes out at this. but it's all stereotyping on both sides, i guess. >> that's ridiculous. i mean, i love you, i just think that's crazy. >> did you watch the 14 minutes of comey? any of the history -- >> did you -- the mainstream media gave, you know, four days basically unfettered positive coverage of donald trump. and you say because people said that's a dark and stormy convention -- that was my observation. i mean, darth vader and the storm troopers basically had four days of primetime and i think that the result of that is people, you know, they'll make

up their minds about what kind of a country they want. one that they think is sort of dark and ominous and one that they think where the government is going to hold people down. or where the government's going to lift people up. that's what this convention is about. >> -- you might mention isis once on monday night. if you have 63 speakers. and not say that air conditioners are as dangerous as isis. i don't know. >> all due respect, but isis was talked a lot about yesterday in the 9/11 speakers. >> maybe after they got the u.s. flags and finally got a couple of those there, they started talking about isis. j.b. -- >> thank you, j.b. >> thank you. >> penny's a capitalist. penny believes in the sector. >> and the democrats do too. >> so does hillary clinton. coming up, donald trump and foreign policy. the gop nominee doubling down on his critique of nato. a former u.s. ambassador to nato

nicholas burns going to join us. back in a second.

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giant mondelez international. profits of 44 cents a share came in 4 cents above estimates. revenue slightly above forecasts. and results were impacted by challenging economic environment as well as discontinued businesses. but it's confident in its previously announced outlook. >> okay. donald trump doubling down this week on his previous critique of nato. >> i want them to pay. they don't pay us what they should be paying. we're losing everything. folks, we lose on everything. you got to pay us. got to pay us, sorry. they're going to say no. bye-bye. within two days, they're calling, get back over here. we'll pay you whatever the hell you want. >> joining us is nicholas burns, currently an adviser to hillary clinton's campaign. good morning to you. i hope you just heard that clip from donald trump. is that how you think the negotiation and conversation goes? >> no. it doesn't go quite like that. you know, these statements by donald trump i think are the

most reckless statements made by any american leader in 70 years. because every american president of both parties republican and democrat has understood that we're going to be stronger if we have allies. our taxpayers don't have to shoulder the financial burden. our soldiers don't if we've got allies. i found that out on 9/11. i was the american ambassador to nato. when the european allies came to us and invoked article five of the treaty and said we will work with you and defend you and all of those countries are in afghanistan. they went in 2003 and are still there now. so we should want to have allies in the world. we shouldn't want to be isolated from the rest of the world. and to suggest as donald trump did to "the new york times" that he would not commit to defend our nato allies should russia attack them, no american leader of any party has ever had any

doubt. that ruins strategic which you've got to have. i think these statements are the most damaging statements that he's made on foreign policy as a presidential candidate and in my view as a former diplomat, they disqualify him from office. he's not fit to hold the office. >> ambassador, is there any argument to be made that any members of nato are not paying their fair share? >> we've been making that argument, every administration has made that argument for the last 30 years. there's no question that a lot of the european allies mainly the continental allies need to do more. now, since putin invaded ukraine in 2014, 20 of 28 allies have increased defense spending. but the most is germany. they issued a white paper on defense meaning a policy paper in the german government. angela merkel has said that germany needs to stand up. she wants to get them to the

baseline of gross domestic product. donald trump's not the first person to say they need to do more. >> is there any argument to be made that -- and he's made it before, he's a negotiator -- that these hard and fast positions aren't necessarily hard and fast positions as much as they're negotiating positions to force an issue? >> this is not a protection racket we're running here. he speaks like if you don't pay up by monday morning, i withdraw my support. that's not how nato works. that's not how it works under strongest presidents. they haven't taken this view. donald trump has no negotiating experience with foreign governments. he's used to commercial real estate where everybody's an adversary. but if you're president of the united states, you have to lead the alliance, not denigrate it. here's what's unusual about his campaign. he takes every opportunity to denigrate the nato alliance, our allies, and every opportunity to treat putin with kid gloves. it's a strange way to think

about being president. >> mr. ambassador, we appreciate your time this morning. thank you. >> thank you very much. thank you. >> prosecution rests? coming up, this morning's biggest stock movers including garmin. stay tuned. you're watching "squawk box" on cnbc, first in business worldwide.

welcome back to "squawk box." garmin shares are up sharply.

the maker of gps devices handily beating estimates. garmin also raising its full year forecast on approved sales and categories such as fitness and outdoor products. and story on bridgewater likely to get a lot of buzz today. "the new york times" reporting that an employee filed a complaint this year that the firm was like a, quote, cauldron of fear and intimidation. explains an atmosphere where all meetings are reported and security guards patrol the office. employees that don't fit the firm's mold are said to be silenced. talking about fear and intimidation, joe, this work place and the wall you're building is a little complicated. >> wall is going back up after that last interview. i'm going to build a wall. and it's going back up. >> talking about fear and intimidation at the workplace. when we return, we have breaking economic news. we are minutes away from the

durable goods report. plus day three of the convention kicking off. obama, biden, and clinton's running mate tim kaine will take the stage tonight. "squawk box" will be right back. waiter: here's your check. oh! you--you got it. you know, since i got rid of my car, i really enjoy walking. ok.

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it's time for durable goods and rick santelli standing by in chicago. the numbers, please. >> yes. the numbers, please. down 4% on headline durable goods. preliminary read for june. let's go through the internals. let's strip away transportation. it's less negative. minus 0.5%. if we look at durable goods, capital goods orders, non-defense aircraft, a proxy for business spending, that's up 0.2% exactly as expected. if we look at shipments versus orders, that's down 0.4%. and there are some revisions. headline number last month was down 2.3%. it's now down 2.8%. and ex-transportation

downgraded 0.1% to down 0.4%. that's last month. and the proxy for spending which last month was down 0.4% is now down 0.5%. so really the only good news there is revisions up 0.2% on our proxy for business spending. and the interesting aspect of that seems to be if you look at all the numbers on the final reads, down 1.6% february. enchanged in march. up 0.6% in april. may now down 0.5%. these aren't good numbers. and that really is kind of what we should be paying attention to. and on the headline, down 4%. you have to go all the way back -- quite a ways back, actually, looks like to august of '14 to find a weaker number. back to you.

>> all right, rick. thanks. we'll see how -- looks like the futures are not moving. it's day three of the democratic convention. tonight's primetime speakers include mike bloomberg. the president himself, president barack obama, vice president joe biden, and tim kaine hillary clinton's veep selection. joining us now from philadelphia, colorado governor john hickenlooper. good to see you, governor. >> good to see you. >> that was a longer list, should we say you're on the long list, just not the short list. >> i think they got me to the short list, just not the top of the short list. >> you were vetted and had to provide all that stuff. >> oh, yeah. in a funny way, it's a huge amount of work but it's a great honor. to be thought of at that level and to have to go through

literally everything you've published or said. even commented on in your entire life. it's quite a process. >> you're kind of middle of the road too. i went to school in the great state of colorado and so i know boulder pretty well. do the sanders supporters have a point that that was kind of a -- that after all was said and done, maybe a more progressive veep like senator warren or cory booker should have been picked? is there merit in that argument? >> i understand their point of view, but i look at tim kaine and i think he brings a lot to the ticket. here's a guy, he's pretty liberal. hillary clinton has moved pretty -- you know, she's now -- she's still a moderate, but she's gone based on bernie sanders' impact, she's moved her views in a number of ways. tim kaine, here's a guy who took

a year off from harvard law school to go on mission, to go down to honduras. he didn't just fake it through his spanish. he really learned how to speak spanish. i think he's going to add real value to the ticket. >> my next question, at this point, i was going to get to tpp. tim kaine wanted it before. now he doesn't want it either. i think terry mcauliffe just said it too. >> terry said they may come back. the terry comment was once she gets into the white house, she may flip. that's what i thought he was saying. >> you know, if you're just a viewer at home, governor, i don't know what we're supposed to think of free trade at this point from either side. >> well, i think trade does several things. trade makes the world a safer place.

trade increases the -- it creates value. i think the issue has been is the trade agreement good enough for american workers. that's what senator sanders raised and i think that's what has got terry mcauliffe and hillary clinton, they're looking very closely saying is this really the best deal we can get for american workers. >> where are you on it? >> i look at the opportunity there. and if there's a way to improve it so it's more benefit in the united states, then i'm all for that. if there's a way to find a pathway to do that, i support it 100%. >> we've asked this a hundred different ways about the geographic center of the democratic party right now. do you think the president -- if there were a president hillary

clinton, do you think she would govern from where the center of the platform is right now on the democratic party? or do you have the notion that she would govern more like the first president clinton? what do you think finally happens? who's the real hillary? i think that's a question a lot of people have. >> well, you know, i won't say part of the vetting process was i got the benefit and it really was a privilege to spend a few hours one-on-one with secretary clinton. i will say she knows better than any governor i know or representative. i think she's really going to focus on solving problems. and how do we get people transitioning from the careers that are slinking and disappearing but make sure we transition people into the expanding careers. of this new economy. that kind of approach where we're trying to solve stuff.

i'm not sure you can say it's in the middle or to the side. but it's what -- i think it's what people want from government. >> yeah. but it's kplooetly different from expansion and free college. it involves private sector job growth to accomplish the revenue, tax revenue you need to do these programs and the job creation in the private sector. government jobs don't pay for themselves. it's an important issue that you move too far down the sanders path and it becomes self-defeating for what you're trying to accomplish for the people who need it accomplished. >> i think a lot of what hillary brings to the table is she has -- i mean, she's able to bring people together, republicans and democrats. we saw this when she was a senator in new york. and a big key to getting to, let's say, affordable college, right? so kids don't come out with all this debt, a lot is saying how

do business get involved to have revenue to help pay for the training and education of our kids so it doesn't all fall on the shoulders of government. i think if anyone can pull that off, i think it's hillary clinton. she understands how those things all come together. >> all right. governor, thanks for your time today. we appreciate it. enjoy yourself at the convention. it's down again. >> our wall. we're together. come on. >> we got to -- >> we do play footsie under here. >> that's the onlt way. apart we're weaker. we're better together. we've just got to find a way. got to find common ground. >> we could try to do some of that through humor. because we have a comedian coming up. >> that's true. that would be a new concept for you. >> yeah. >> very hard. >> coming up, the business of satire. the jon stewart of egypt is here and he's talking u.s. politics on his new show. he's going to join us right after the break. "squawk" returns in a moment.

welcome back to "squawk box" this morning. comcast shares jumping in premarket trading. the company beating estimates by 2 cents with quarterly profits of 83 cents. revenue also above forecasts. that stock looking like it'll open on $68.72. we should tell you that brian roberts ceo of comcast going to join the gang on "squawk on the street" next hour to talk about the results.

glaxosmithkline reporting better than expected results. meg tirrell is here with a look at what was said. meg? >> good morning, joe. so for glaxosmithkline, a beat on the top and bottom lines. driven by good performances for drugs for asthma as well as vax sooens and a drug for hiv. of course many questions for the ceo about the impact of the british decision to exit the eu. he was asked about that this morning. here's what he said. >> i do think this is one of the issues that the uk government has to really work hard on to make sure to send signals to folks outside for great talent. >> saying their ability to recruit folks workforce are from the eu. they're not british nationals. he said that's very important to support. he also said there needs to be clarity on the regulatory system for drugs in the uk, version of

fda there is based in london and probably has to move. clarity on that is needed. they also said that currency is going to have a big impact the rest of the year. plus 19% currency impact there which does report in pounds. so good news from gsk this morning. more clarity needed on the brexit. thank you. >> thank you, meg. mentime, it is no secret that politics can occasionally can be funny. joseph tries to tell jokes. that brings us to a new web series at fusion. a heart surgeon turned tv host whose daily show inspired talk show in egypt was viewed by millions per week. now he's come to the u.s. taking on political satire. and he is here this morning. good morning. >> good morning. >> help us understand. i want to get into all of the political issues and all that, but how did you go from being a heart surgeon to this? >> well, you know, i was in the

square -- tahrir square when everything happened. then there were two realities. the reality you saw on television and then the reality on the street. and the street it was an uprising, a revolution. but on television, it was a totally different story. everybody was like a traitor. everybody was a paid operative. so i -- >> and you're talking about local television. >> yeah. so i decided to make a web series, like a webisode to make fun and show the people how we were brainwashed by this kind of media. and it kind of, like -- >> and you've been compared to jon stewart. >> yes. i have been watching him for over ten years. >> have you met jon stewart now? >> yes. i've been on his show and he visited me in egypt. that was the highlight of my career. >> so tell us about this new series. >> it is called "the democracy handbook." it's an outsider look to american democracy.

i do comparisons between policies and politics in the middle east and america. >> when you came and sat down, you said you were scared of joseph. let's talk about the politics here in the united states. what is the outside world, if you will, to the extent through your eyes think of our current election cycle? >> honestly, you can criticize the democratic process as much as you can but you still have a good process. there's a lot of noise and frustration, but still it's a great process. that's why everybody else watching it, as a matter of fact, it was said it should be on broadway because it's so interesting. especially this year with all the theatrics. even on the dnc you had meryl streep which give i think fantastic speech yesterday. i'm sure she already got nominated for that. and you've got -- you've got the facts that both sides. >> what is the conversation in the middle east right now about donald trump and about hillary clinton? is there a conversation taking place?

>> oh, yeah. you would be surprised. >> tell us. >> a lot of people are worried because of the comments that he did, kind of xenophobe comments that he did. and a lot of people actually on the right wing, they like donald trump. they kind of welcome this. like, yeah, we need a strong man. and you'll find people divided in the middle east as much as you'll find here. >> in pushing back against the -- i guess the media and political establishment in egypt, i see that as sort of my role here. and even as far as jon stewart goes, he's not exactly against the grain of mainstream liberal media. he almost sets the tone for mainstream liberal media and elitist thinking in terms of the way i view it in the united states. it's like when bill maher calls himself politically correct. no one is more politically

correct than him. in being with left wing -- >> not necessarily. he's on the left. that's true. >> but he's the opposite of politically incorrect. >> our guest has a view. >> here you have all private corporations. right? but in the middle east, it's a state-run media, it is financed by the government. >> except for fox news. >> well, and fox news is huge. >> i'm kidding. >> but like back in the middle east, the media has a narrative that has been dictated by authorities. you don't have here -- what you have here is a game of money and reach. >> we have an establish beltway in washington, d.c., that in large part, i think, you see that view reflected in most mainstream media thinking. so it's not -- obviously it's not state run. >> exactly. >> but it's pretty in step with -- >> but you have a very rich, very, very rich huge corporation like fox news and the likes of

fox news and you have stuff that you find on the web. and it's huge. and it is actually reaching a lot of the people. >> i want to go a different direction for a second which is joe and i have talked a lot about the president -- president obama and whether he uses the phrase isil or isis. does that matter where you live? >> no. what matters to me, using radical extremist islam or not. >> you want him to use it or not? >> i don't want him to. i was in the rnc and this is what you hear. you have one candidate after the other -- one speaker after the other, our enemies are radical islamic terrorists. then you hear, illegal immigrants, illegal immigrants. what the people hear, islam, immigrants. so the thin line between legal and illegal, moderate and extreme disappears. and suddenly people like me who look like me, who sound like me, everybody's suspicious of. >> do you think we hear enough condemnation from not radical

islamics? >> a lot. >> your condemnation of isis. >> every single day. >> it doesn't filter back to here. >> because i come from the middle east, most of that condemnation is in arabic. and also here -- here's the thing. and all due respect to fox news, when the people that are being chosen to go on "hannity," for example, are the extreme crazy imams, that's not a good representation. i'm not to defend religions. but there are a lot of people that are not given time to speak. you know how many people like me can speak about this but are not given the air time? it's not that. the thing is, if you -- here's, like, one of the biggest discussion that i had with the supporters of trump at the rnc. they will tell you, oh, we're not against muslims. we are against the terrorist

muslims. but if you have a bowl of m & m's and ten of these m & m's are poisonous, you have to be careful. suddenly i'm a poisonous m & m. this is the kind of -- if you get people who are called serial killers are white. do we hear enough condemnations from white people. it is not. you cannot just go and -- i should -- every time that you have errorist attack why should i have to feel guilty somehow that somebody else from -- belongs to the same geographical area or same religion. i shouldn't feel that guilty. this is the thing. you cannot just like -- >> what should -- in terms of changing hearts and minds so this is not -- so that, you know, from al qaeda came isis, from isis comes -- what do we need, i mean i don't know if not saying the term radical islamic extremism, that obviously the president hasn't said it, hasn't stopped things from happening.

what do we need to do to -- >> because -- >> to deal with it? what does the world have to do to try to deal with it? because it seems like -- >> first of all, what you cannot -- should not do is alienate more muslim minorities. >> the president hasn't. he hasn't said those words. >> sure. >> we haven't done that and it's continuing. what should we do? >> it's probably like radical islamic muslims have been bombing holy sites. >> the u.s. government has not used it and this administration but it still -- that hasn't fixed it not using it hasn't fixed it. >> it will continue but you make it worse if you use it. >> okay. but you don't have the answer for how we -- >> nobody. i'm not a political analyst. i'm a comedian. >> he's a comedian. >> i leave it here for you to do that. >> don't do that. >> thank you for coming in this morning. >> and i'm glad to be here. >> you are the wall. >> the democracy handbook is available right now on fusion.com. we wish you a lot of luck with it. >> you would be afraid of this

guy too, cramer. coming up jim cramer joins us live from the new york stock exchange. his take on the morning's big earnings movers when we return. andrea sikon. medical doctor from cleveland clinic, watson, let's review the electronic medical record of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much more data, and a lot more time to plan the best treatments. i stay focused 24/7 and never sleep. you sound like a lot of medical students i know. pretty much over. show's i stay focused 24/7 and never sleep. (friend) wish we could start it from the beginning. (jon bon jovi) with directv, you can. you see, we've got the power to turn back time let's start over, let's rewind and let's go back and not quit the gym and have a chance to say goodbye to grampy tim oh, that's the power to turn back time.

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let's get down to the new

york stock exchange. jim cramer joins us now. talk -- you didn't talk about apple. is this going to be your first public comments about apple other than -- >> last night i said it was good enough to drive the stock higher. >> you did. >> at the top of the show. i simply made the point that the analysts had come to write the obituary when the funeral was on the conference call and they were stumped. apple sold more than it expected which meant it didn't order as many chips as it thought it was going to. these people, the analysts were looking at the chip factor, what was skyworks saying, texas instruments, they got a bad read on it because apple wasn't as bullish on its devices as it turned out to be and this was one of those high quality problems that didn't have enough inventory. the bears will say it's down big. the profits are down huge. the stock is down a lot because it should be. but the fact is wasn't bad enough to make people more negative. >> how about coke and boeing and some of the other standouts today? >> boeing cash flow there were a

lot of people after boeing took the charge that said airlines are just not ordering. we had greg hayes on from united technologies refuting that. looks like boeing is saying the same thing, bullish on the aerospace industry given the fact that airlines have been doing so badly. one focusing on because a lot felt that was going to drag the market down today. it's clearly not coca-cola tougher up against pepsico that has the great business models that has snacks and snacks are a better business than sparkling. sparkling remains strong. i'm not going to pile on coca-cola and say it's bad but it's not as terrible as people think. >> it's like mexican food with margaritas, jim. snacks with sodas, isn't it kind of -- you know it in your restaurant. >> yeah. look it's what people do. it's why the salt is on the chips and why they won't stop drinking -- we serve only mexican coke at our restaurant because that's actual pure cane sugar coke. i have to tell you, mexico bounce back very quickly by the way on the tax and i think

philadelphia is bouncing back. so the tax does not seem to matter. >> okay. jim, we'll see you in a little while. three minutes. coming up this morning's biggest movers.

final check on the markets

this morning after the dow components reporting including nice jump that we're seeing in apple. and boeing. we've got now the dow called up 60 points. the s&p up 5. and the nasdaq indicated up almost 38. andrew. >> there you have it. the bawall is down and we made . >> join us tomorrow. "squawk on the street" begins right now. good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. huge morning for earnings. as apple is set to add 40 billion in market cap after beating estimates. we'll get to boeing, coke, twitter, panera and more. europe and asia reacting to japan's announcement of 26 yen of stimulus. fed announcement at 2:00, po tus at