they'll get their other stuff in order for the next time. eventually, it does go back up. >> a good weekend to everybody. >> a good week end to everybody. thank you for hanging with us. >> i won't see you for calm a c of weeks. >> enjoy your vacation. >> simulcast it on ms while i'm gone. >> we'll talk a lot about donald. join us on monday. "squawk on the street" begins right now. good friday morning. welcome to "squawk on the street." we're going wrap up the month of july today with two shockers. second quarter gdp, a big miss of 1.2. only half the estimate. and bank of japan leaves kiwi and banks unchanged. flattish action in europe. oil down six straight days below

41 puts it in a so-called "bear market." alphabet shares on the rise. >> energy giants on the move this morning after earnings, this, as oil sinks further into bear market territory. and, man, those exxon numbers weren't good. and the dnc wraps up. economic growth coming in well below consensus. 1.versus 2.6 expected. gdp in europe disappointing overnight. s&p and dow up a little bit. the best month since march but the first down week in five, perhaps. >> you had to go through a gauntlet. apple. facebook. alphabet. and, amazon. and, i gotta tell you, 4 for 4 is pretty impressive.

you see the nasdaq holding in there. playing catchup. i didn't think we would go through the gauntlet unscathed. i felt one of them would screw up. i think the worst one was amazon and that was pretty great. it was not as huge an upside. and i have to tell you, their conference call has gone back to this opaque nature i can't stand. you know why the quarter was good? a fly wheel. fly wheel? that's like -- isn't that like people work out? give me some soul cycle. i would rather have that than fly wheel. >> that's a go-to for them. these guys, it's like, hey, chief, it's fly wheel. >> that's amazon web services. that powered not just amazon but google also benefiting from the cloud services.

>> now 10% of sales up from 8%. 58% year on year. and, i assume you expect -- goldman adjusting their price targets. >> you have to adjust your price targets. i do think you're paying a lot of money for this one. one-third of walmart's revenues, that's all your getting. >> i mention walmart now because walmart is spending a for -- they got out of the dollar score business. mcmillan is determined to become a bricks and mortar amazon. i don't know if it is possible. i do sense people are wise to amazon. wiser than they used to be. >> they're still spending money to create warehouses. the web services are growing so quick fl quickly. they're doing consecutive quarterly profits. >> make money. they're making money. for the shorts, that's a nightmare, right?

>> i know. it's just the last thing they ever expected. i guess they can make as much money as they want. u.p.s. has next day. who gets next day? amazon prime. >> the ceo is here this morning. >> good. >> you look at all that. you look at consumption, 4.2 in q-2 is good. what is going on with business up ve investment. >> i'm going to default to nick aikens. the ceo of the largest power transmission company in the country. they say this is when the oil patch hits. this is the real slowdown in areas related to oil. i think we forget how big the oil business was until we blanched at the chevron and exxon numbers. >> exxon was not good. upstream u.s., upstream dploegl

versus last year, horrible. >> american has the clusters. ohio cluster. boy, it hit. it hit hard for the spend, the capital expenditures hit hard. this quarter, we started to see pickup in the recount. it's minuscule. >> a lag effect. we thought the pain was centered in february. turns out, it was not. >> i gotta tell you, carl. i was surprised. i said, nick, you mean it took this long to hit? he said, yes, it was this quarter that it hit. the coal country, he used the word depression. depression. those are real states, with real people. >> by the way, chevron, though some of the headlines showed a miss on an adjusted basis, 35 beats 32. >> that's a good point. look, these are companies that we shouldn't lose sight of the

fact that they actually made some money. >> they did. look at exxon. since we're talking about it, let's just talk about it. might as well get into google. xap a x. 3.1 billion on dividends. these guys are levering up to fund their cap x and dividends. >> yes, they are. yes. and that is something that those two companies have sworn by. >> if you have oil where it is, that's not -- that may not work that well. >> oil's gotta go. you mentioned bear market. oil is down 20%. a lot of these guys are using the $60 model to keep their dividends. can they keep it? i don't know. if oil reverses, they'll be fine. >> shell was no good. bp was no good. >> shell was bad. bp was not good. >> exxon's had a good year on the stock market.

>> was the leader in the dow not that long ago. >> oil down six days in a row. the fourth time we've had a streak like that all year. going back to '83, no year has had four streaks of six-day losses. ? really? some say this is the worst downturn ever. slumbers is sticking by, we're going to get a bottom. i don't want to go against slumberget. they said, listen, we're letting go of a huge number of people before anybody else let people go. now they're saying it's bottoming. i guess what i'm saying is, schlumberger is disagreeing, point blank, with the previous guest. there's not as much oil as you think. it's going to go down. they're looking doctor fe manned. the demand side has to pick up. they're saying if demand stays

steady, i'm starting to feel that the consumption is weaker. is the consumer alive or not. you saw newell, the old newell-rubbermaid merge. people are painting their home. putting new fixtures in the home. redoing the bath rooms. doing new cabinets. doing the kitchen. it's happening. >> that's weird. charts look up. way up. >> but cars do so much better on a gasoline basis. oil, look, there is a short-term glut because the wednesday number was horrible. if schlumberger says that can't be maintained, the only number with a great number is pioneer. they had to start drilling. >> we're going to get to a lot of other numbers today. we want to recap last night. hillary clinton speaking. both conventions now wrapped up. john harwood has the takeaways in philadelphia nad, as john,

these gdp numbers may be fodder for trump ats campaign in the weeks to come. >> they certainly will, carl. hillary clinton did not have an easy job last night following speakers like the obamas, vice president biden, and her own husband, as she said in her speech, she's always been better at the service part than the public part. hillary clinton methodically purs pursued. she explained her motivations to public service. linked them to broader american values. reached out to voters beyond her own party. >> well, i will be a president for democrats, republicans, independents, for the struggling, the striving, the successful, for all those who vote for me and for those who don't. for all americans together! >> on national security, the former secretary cough state

continued to week-long theme of portraying donald trump as temperamentally unfit to be commander in chief. >> imagine if you dare, imagine, imagine him in the oval office facing a real crisis. a man you can bait with a tweet is not a man we can trust with nuclear weapons. >> now she got a powerful assist from this father of a fallen muslim soldier, with the parent's righteous anger. he ripd donald trump for a ban on muslim immigration as fundamentally un-american. >> donald trump, you're asking americans to trust you with their future. let me ask you, have you even read the united states constitution?

[ cheers and applause ] i will -- i will gladly lend you my copy. >> now, will any of this, this week in philadelphia, last week in cleveland, make a difference in the dynamics of this fundamentally close race? we'll have to wait a week or two for polls to find out. >> we'll be on alert for those, john. our thanks to you, john harwood in philadelphia. i want to read one line to you, jim. clinton talking about tax hikes. not because we resent success. because when 90% of the gains go to the top 1%, that's where the money is. >> this is a common theme. the carried interest, this may be unfair. the party of lincoln used to talk about this. lincoln called for progressive taxes.

she's harkening back to a lincoln view. >> do we have a pro-business candidate between the two? >> i don't think we have anyone who would send stocks up. both of them would be dampers. >> with clinton, in terms of the infrastructure. higher taxes for some. corporate tax reform. link it to infrastructure. as many people would like to do. with the surcharge that helps. she's outlining that as the key. also, get rid of carried interest, interestingly. >> that's the -- that's the 0.01% that pays less. this is the warren buffett for us is warren buffett's secretary. you were there. unity where there used to be discord? >> hard to say uniformly. the sanders supporters in neon yellow last night, crossing out the signs saying hillary.

putting liar instead. >> liar? >> i think one of the key elements will be how much of the sappeders flank trump can draw. >> the anti- -- the anti-globalization. which is so important in these quarters, the best xraens the ones that are globalized. united technologies. fabulous quarter. great job last night. i know you had to work late. >> important 60 days ffr the first debates at hofstra. when we come back, we'll hit alphabet and amazon more. expedia getting hit on the market. take another look at the premarket. looking for the first losing week in five for the dow and s&p. back in a minute. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me?

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amazon and google out with earnings. am zon recording its third straight record profit. $1.78 versus $1.11. alphabet, well above what analysts were looking for. stocks are higher in the premarket. at alphabet, advertising growth, 19.5 is the fastest growth in four years. is that politics?

>> the mobile sej has been incredible. a couple of things happened in this quarter. the cap ex, capital expenditures were good. a staggeri ining $7 billion. this company has $84 billion in cash. talk about a company you would like to repatriate. youtube growing at a significant rate. give us more breakdown. they don't want to do that. this is, again, this machine learning. they're talking about the rank being able to predict 80% of the time what you want. >> that's a.i. all artificial intelligence. >> i know you know les moonves. i'm probable jumping a report. >> no, i'm not doing cbs.

>> he said the web only augments. it extends the reach of tv. alphabet said the same thing talking about a wendy's commercial. how wendy's by giving google money extended the reach. you asked me yesterday, where is the stuff coming from. alphabet was saying, hey, look. people are drawing more money because they're getting a better return. maybe more of a spending pie than i thought. >> facebook takes rest of the digital advertising. everybody is bringing up the rear in a big way. digital becomes a bigger and bigger part of the pie. you're right, moonves will say, i'll still get 20 million people to watch "n.c.i.s." nobody else is. >> it's the best way of reaching customers at the moment of intent. bing, that's when you want it. >> on this ruth porat, ceo,

talking about ad strength at goog google. >> once again, the increased youth of mobile search by consumers, benefiting from our ongoing efforts to enhance the mobile search experience. we benefited from desk top and tablet search as well as continued strength in youtube and progress advertising. >> back to the strength of youtube, as well. >> we just wish we had more numbers from youtube. it's clear that you combine the money they're getting from youtube. the key line from porat, our focus on revenue growth does not givers a pausz on managing expenses. youtube is like facebook. >> i want to know more about the moon shots. the autonomous car. the revenue number went up from that area. >> they don't want the driver to do anything. i thought that was very interesting. >> they're total autonomous.

these are going to be potentially, these are the future revenue producers for these companies. drones. >> no, look, so far, they've been disappointing. there was a question about fiber and wireless. are they going to -- >> they've done some. kansas city. but no, they have not rolled it out in any way nationwide. >> it felt to me like that's about to happen. >> you would need every cent of it. >> they have it if they can repatriate. the royals didn't beat the mets -- >> why would you go there? in the middle of nowhere. it's 9:20. we're talking google fiber. >> i just felt like it was important to get back at you after you crushed me like a bug on a windshield yesterday. >> like you hold it in. like ted cruz. when the time comes, boom!

>> when you least expect it. we'll get to amazon after the bell. we'll get cramer's mad dash. and the month, back in a minute. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night.

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all right. we got less than seven minutes before we have the opening bell this morning. what do you want to do on this "mad dash" for this friday? >> one of the most fascinating companies is expedia. they brought home away. made it into a sort of air b and b. they did two things wrong this

quarter. a self-inflicted wound. had problems making, literally just with computers and integration. they've bought a lot of companies. the second one was interesting. they had a dramatic decline in european tourism. familiarly france. because of terrorism. this is the first time we have seen it stay low. i mean, there have been flieen down. double-digit declines in france since nice. >> it's very recent. >> it had been going down since paris. >> did they say this on the call? >> yes. they said first paris. then brussels. now nice. this is the first time, periodically, you'll have an event, and travel will go down. >> right. >> they're now talking about declining european travel. >> you would assume you read through the priceline, too, on that. >> a lot of people. priceline, people are saying

price lyn priceline will be great. expedia is a company that saved companies a lot of money. we -- expedia is important at the inn that i own. how people book. but, i hadn't thought about that that there would be a protracted slowdown in europe because of terrorism. it's something to watch. >> simon will have dara khosrowshahi on. >> oh, great. this is a great company. >> we'll get more from him. and the opening bell a few minutes from now.

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you're watching cnbc. "squawk on the street" the opening bell in 90 seconds as we close the month of july, interestingly, s&p, last day of the trading month has been up 4 of the last 20. and june was up. >> wow. >> okay. >> so, tough day. >> sad news. in the old days, they marked things up before the government

cracked down. now they tepid to mark things up on the third to last day so the government doesn't scrutinize. that doesn't happen anymore. >> month today, you look for sector strength. tech will be the leader for july. 7.7%. >> you know what's really interesting. that sweet deal happens. the $9 billion deal so what. $14 billion deal, so what? these are companies, big companies getting big bids, we're not talking about them. >> there's been a lot of consolidation. semis. not to mention the arm holdings deal. we did talk about it but it wasn't an enormous deal. >> it's difficult to stay short. analysts have -- we're saying sell linear and sell net sweep. they turned out to be more valuable. linear had a huge amount of cash. it's machine learning. very little.

nobody liked it. it sat there. it turns out some -- >> yeah, oracle liked it. >> see how we open. a couple of big disappointments in bank of japan. youtube, 1.2%. q-1 revised down to 0.8. project use. outdoor experiences. over the data and cloud integration company celebrating its ipo. the gauntlet on tech earnings. net sweep, yahoo!. we have been through a lot. >> one of the things that's happened, i'm doing an nail sis of linear this weekend. don't tell my wife. this is a company like a lot of tech companies that's at quietly done a lot of things. had a low price to earnings

multiple. and there's so many semiconductor equipment companies. they should all get together. i mean, corvo should come booin with sky works. the best performing semi is broad com. it's been the most inquisitive. this is a group where they recognize, there's strength in numbers. western digital. the acquisition. they're quarter was find. micron should be bought. if they got together, maybe they would have a little bit more power against the guys who are the customers. right now, they don't. look at avnet. they blew out rick amato. the ceo. is avnet for sale? could be. we have companies for sale that people don't know about. lamb comes in. there's incredible consolidation. >> there are others looking to do it. whether it's techs or --

>> and devices. analog devices. a very inexpensive company. analog companies. people forgot analog still has a role. it's in your car. ford says business is not that good. ford stock is way down from where it was. have you seen ford and gm in they're way down. the airlines, and the autos are horrendous. but i don't want to say that therefore you should get out of the companies that supply semis because cars are so complicated. >> there's so many more chips in cars as autonomous driving becomes something that we see. not to mention the internet of things, which we'll hear about endlessly. while the consumer applications, the refrigerator, all that, it's the industrial complications where the chips will be key. whether it's an engine made by ge that communicates back the data from it. therefore they know when it's time to take a look.

or it's not operating as well as it could. so many applications in the industrial world for this so called sp eed internet of thing. there will be chips in everything. communicating data that will be compiled by different companies that will be provided by the end users. >> i saw ford's autonomous driving plant where they do the research for it. what happens is a laser shoots out 2million times a second to figure out if it's a person or a car. i mean, how many chips do you need on that? a lot of people thought the stock went down because it's so auto and ford, that's free scale. ford was downbeat. i thought expi ran up. they're talking about 200 chips in a car. the cars will be semiconductors. >> they'll be software and semis. the rest of it? who cares.

>> the minority report, write things on the wall. >> the car will be did i have remplg yated by software. >> that's google. i have not ridden in one. that's my bad. i would like to. >> the self-driving car? >> yes. 1.7 million miles they have driven the alphabet cars. we should all keep -- >> the more data they fake in, the more they're able to improve. >> it will be interesting to see what happens with auto insurance dpop they want that? the machines do not text. which is the reason fatalities went up, is texting. they should be able to disable text somehow. it's bad. >> want to do a quick update on guys, also a favor report on mevevation. a story i've been covering. sanafe seeking written consent.

medivation in upmode. does appear medivation running a fairly robust auction at this point. indications of interest will be due by the middle of august, sources tell me. oncology company. key drug for prostate cancer. perhaps other indications to come. though they do split it with astelis here in the states. looks like pfizer, jim, giliad, and of course, sanafe, which reported earnings. all interested. >> celgene? pfizer? >> you could do due diligence. why not? and you can choose not the make a bid. again. indications of interest due in mid august. so perhaps they get something done before labor day. >> i think it is interesting that abve is in the

pharmacyclics drug. the oncology franchise issues. this is why they want -- they're up nicely in part because of imbruvica. >> medivation is trading up. looks like we'll get something there in the next month. >> merck, today, beats by a couple of pennies. that's the best dow component at the moment. >> they have a diabetes franchise that is good. keytroudil is another oncology franchise. i do think that this group, merck is valued, these xraens historicicly valued lower.

celgene was the star of the week. they had a great number. they got 17% growth. people are starting to realize this is a great franchise. if the recepto stuff they bought last year kicks in, it will be very good. it's powerful. >> that stock still to down for the year. but well off the lows. gilead is one of the worst performers. >> the stock, horrendous, not the company. >> facebook only ended the day up yesterday 1.5%, 2%? >> yeah, andrew was telling me, i didn't get hurt that bad on the greatest quarter ever. >> what did you make of the tax challenge to the irs? >> there's a lot of people. the taxation on the web is odd. people shift things back and forth. where moneyowed. it would have been better to have that. maybe they just got the notice. it was very odd. >> another one is wynn.

the selloff today. curious, because it got awfully close to the 52-week high. >> you remember steve bought a lot of stock between the 50s and 60s. i think when the -- he's -- he has no lawyers. his -- there's no lawyers in his conference room. he says whatever he wants. i mean, i remember when he attacked the chinese government. like, holy cow, no one's challenged the chinese government. think that stock fine. it ran up very good, after las vegas sands. i don't think -- this stock just got some flop in it. don't read that one. that's not like any other call. >> on sab, abi did get approval from the chinese anti-trust authorities. now the question is, sab's

board, will they troemd their shareholders the deal? that seems highly likely but not absolute. we should know something in the next very soon. after they raise preemptively the business by one pound. sab sup. tap moved all over the place. a lot of shareholders have made it plain to sab they should, in fact, recommend to approve. then you noouf to a scheme of arrangement. then you move to votes. >> we're back to the secular growth of whiskey and beer. also, champagne. maybe the chinese -- they're -- you're not allowed to give money in china. i don't want to use the word bribe. because that would be the word. they give liquor. johnny walker blue was always a

favorite. i'm a single malt guy. i don't know what, when you get home. >> tequila. i like tequila. >> do you like the -- casa -- that's the one to watch. it's owned by consolation. >> if you ever have a question about tequila, this man. >> we have five new margaritas. tequila is the fastest growing liquor. the new york article by mezcal. we should get together. we should get together and get a mezcal company going. >> let's get to bob on the floor. the dow is down 32. >> and i love jim's bar. i've been there. it's a wonderful stop. anybody in brooklyn, stop in, say hello. a wonderful play to go into. we have been talking about oil all week. exxon and chevron reported. here's all you need to know.

forget about the earning number, the impaired number. these companies took massive write downs for the oil they own. so, i'm looking at the upstream. the oil production numbers for exxon and chevron. exxon reported $294 million in the upstream. we were expecting them, roughly, to get close to $800 million. we were off by managgnitudes of numbers. chevron was worse. a loss of $2.4 billion. but wait, $2.8 billion was a writeoff. a writedown. assets that were not worth what we thought they were worth anymore. they were almost expected to break even. the writedown was so enormous, it engulfs everything. here's what chevron had to say. they had to make some

explanation. we're waiting for the conference call. they said we recorded impairment and other charges on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs. in order, the stuff we bought in the past, we don't think we'll recover that money anytime in the near future. lower fas prices. here's the great example. oil prices lower for longer. they don't think they can recover that. what does this mean in how does it help or hurt a company like exxon? they're cash flow is $4.5 million. they spent $5.2 billion. they're spending more. paying a huge dividend. $3.1 billion. that's $8.3 billion. the cash flow is $4.5 billion.

the funding gap is $3.8 billion. you have to keep cutting spending. but you're in a slow-motion liquidation of the company. you have to have the other option, oil prices have to recover a little bit somewhere down the road. this is the dilemma facing these companies. we're at the end of the month here. there's crude. not helping. the 200-day moving average broken this morning. we're closing out the month. the s&p is up roughly 1%. look at the tech, materials, banks making a bit of a comeback. energy and utilities not doing anything. a good ipo today in talend. waiting for the open over at the nasdaq. guys, back to you. >> thank you very much, bob, good points on exxon mobile. wanted to get to viacom.

haven't checked in on that struggle in awhile. yesterday, a massachusetts court judge saying i'm not going to throw out the case. not going to -- i'm going to deny the motion to dismiss the lawsuit. in which the chairman and ceo are trying to get reinstated on the trust alleging undue influence on the part of sherry redstone. also, elderly abuse, if you would call it that. the judge denied a request for mr. redstone to undergo an evaluation. he wanted the previous medical records delivered to the court by august 15th and wants a speedy trial. some surprised it's gone here. the viacom side happy about that. spending shareholder money on

this continued pursuit. the question is, from many shareholders that i have gotten, whi what is the end game here? if you get reinstated to the trust, there's still going to be enough votes to continue to follow the path that sumner redstone apparently wanted. therefore, the directors at national amusements would still be out. and the five new directors would be installed at viacom itself. in delaware, a hearing today, as viacom there. so much going back to mr. redstone's extreme displeasure to at the move to sell a stake in paramount, something he is strongly against. his competency remaining in question, perhaps. there's this key.

how do you judge his competency at the time he made the decisions to get rid of duman and abe ram from the trust? you don't. all of this will seem to eventually end in them being gone. it's hard to imagine a scenario under which at some point, they're not. what is the end game? i'll tell you one key end game we'll tonigcontinue to talk abo cbs and viacom back together. >> it's back. the chatter is back 37. >> it has to be seriously considered. most likely will be once these things take place. right now, viacom in a difficult position. some would say almost paralyzed. this continued battle is doing nothing to help the company. >> do you think cbs is down because people are talking about it now? >> there is concern about advertising. cbs itself had a solid quarter.

let's get to the bond. the chicago pmi from rick. >> the july pmi, 55.8. the second highest of the year. first highest was last month at 56.8. that number, you would have to go back to january of 2015 to find a higher number. the range for the year, the low is 47.6. this number does come in better than expected. but it doesn't change the facts. gdp was a disappointment. averaging the anomalies of the first quarter together, it's a disappointment. let's go to the chart, shall we? the move was swift. look at a mond to date of tens. stopped right about where the technicians said. between 157 and 160. let's look at the japanese government bond ten year. the bank of japan disappointed. thank god they disappointed! maybe the foray into negative

interest rates, which is insanity to the fourth power, is being shown for what sit. but it's had strange effects. we moved all the way to only minus 18ish. a 20-year chart. you can't pull out the selloff. here's areas maybe nobody is talking about that should. let's look at a 20-year chart of the italian bond of 118. the french, all-time low yield at 12. spain, 103, low all-time low yield. gaining the central bank's lack of smartness. people are leaving the jgbs and going into europe because mario doesn't seem to put the puzzle together yet. the dollar index. i've caught a lot of flack saying that's the easy, down and dirty to know that the fed has no nerve.

no courage to normalize the rates. it's getting drilled for a week. carl, back to you. >> rick, thanks. when we come back, jeff bezos replacing warren buffett as the third richest person in the world. we'll talk more about the big tech names we saw this week. coming up on monday, dimon. exclusive with our wilfred frost. ♪ using 60,000 points from my chase ink card i bought all the framework... wire... and plants needed to give my shop... a face... no one will forget.

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time for cramer and "stop trading." >> ho, ho, ho, bgs. look at b & g foods, they brought green giant from general mills. they're -- they use this as the phrase. awaken the green giant is their phrase. this is a company that buys so

called "also-ran" brands and revitalizes them. general mills became much more organic. and b & g foods was able to pump up the volume. awaken the giant. it's interesting to see two companies do great from an acquisition disposal. what a win b & g is. a remarkable bunch of guys from jersey. my favorite is old london melba toa toast. i have melba toast every morning. hey, listen, the doctors say it's good. >> you look great. it must work. >> my god, thank you. this san old suit. i've lost weight. i feel i have to revise my pfizer. if they do something this weekend. would it be this weekend? >> no. >> they might be one of the best. i'm liking pfizer. it's doing many things right.

>> hmm. jim, good weekend. >> you, too. >> we'll see you tonight and monday. when we come back, more on google and amazon's big beats. google on earnings. the head of expedia in a moment.

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♪ just got paid just got paid friday night friday night ♪ good friday morning. welcome back to "squawk on the street." i'm carl quintanilla. final trading day of the month. historically weak for the s&p the last couple of years. we're down about three points. >> we have breaking economic data. rick santelli is live in chicago. >> thank you, simon. we're looking for the final july read from university of michigan. it's out at 9.0. 90 on the dot. this takes away the mid read at 89 .5, which foes into the waste bin. how does it stack up with the 90 read? 90 isn't bad. we had 93.5 in june. 93.7 in may. april would be an 89 level.

it's close to expectations. you could argue it's a bit light. this one may get lost until we get the national number next week. sara, back to you. >> thank you, rick. it's three straight quarters below 2% gdp growth few the u.s. economy while equity markets are on track for the best month since march. joinings is steven wood and brooklyn dwyer. steven, it makes you wonder if the market is ahead of itself and the economy running up to record highs? >> i think so. we have been saying for a number of months now. the u.s. valuations have gotten stretched to put it mildly, quite expensive. sell into rallies in the u.s. using underweight u.s. equities to fund overweight, let's say, european global credit. there is disconnection between

fundamentals. i would agree. the economy is doing okay. we're not calling for a recession. we think it's more of a valuations argument. with every passing day,s t it's more. >> business is just not there. why? >> yeah, so, pretty mixed picture there. consume rrs the economy. that's a piece that matters. that's part of strong payrolls and fairly resilient wages. the business investment component, companies continue to give money back to their shareholders. they're not willing to make that investment. that trend hasn't changed. >> stephen, federal reserve implications of a number like this? especially with the revision lower. things were just starting to look good again with jobs and inflation moving to target. does this put a dent in that? >> i think we were looking at the fed being one and done as

its most hawkish. it could be a none and done in december. the odds play sub 50% that the fed will move a quarter point in december. i think the odds are decreased. in so much as international factors, brexit, what's happening in the bank of japan. i think the fed will be more cautious. boe taking a wait and see approach. as the boj. >> bricklin, jesse was giving this data set in the wake of what the fed said a couple of days ago. this was going to be the determinant of whether or not they moved. >> i'm not so sure about that. the numbers that matter are the unemployment numbers. that's the tell. you know, what we're expecting for next friday's pay rolls numbers, close to 175,000. that will matter. that's the closest to a leading indicator as we have in the u.s.

in terms of timing. the fed will look at that. the headline number was disappointing. the e details were not. the consumer data was strong. inventory subtracted 1.2 percent at points. put that back on top, the economy grew. >> i was just to ask what implications this has for the current quarter, or the third quarter, how likely we'll see a rebound past% for third and fourth quarter. >> very likely. you know, we have only seen the negative change in private inventories one other time outside of a recession. we typically get a firm bounce back. that bounceback is worth about 1% point of gdp. whatever your number was previously for q-3, let's say it's%, you have to add a percentage point. our number is probably closer to 3% for q-3.

that sets us up well and the fed up to hike rates soon. >> given that backdrop, do you want to be in utilities, consumer staples. >> best performers but very expensive as well. we would have a more defensive posture. i think the more common thing we'll look at is underwetting the u.s. as an asset class. i think europe, from a valuations cycle. i think that might be where more people want to look dploeblly diversified, not caught up in tus only. >> you think we'll see action from the european central bank? >> i think so. the federal reserve is wait and see. i think they're inclined to raise rates.

it could be until further notice in europe as it is in japan. that could be very good for risk assets. the euro is more likely to weaken rather than strengthen. the yen is a different story. >> i'm so glad you brought up the yen. it's surging right now. we're seeing a move like we have not seen in a long time. does appointment overnight. bricklin, we started the day with the bank of japan coming out with a ministimulus. does that speak to a broader expectation problem or limitation of central banks right now? >> we continue to flirt with that idea with whether or not central banks have lost credibility or if they're unwilling to do enough or if they're still in the game. the bank of japan has been resilient to put all the chips on the table and do more pond buying. where we end up is, it could go either way. they could be terrified of more bond buying. they could, in fact, be trying

to stretch out the time frame. do more etfs for now. later on, put that back on the table. the central banks are being prudent with the ammunition they have. and bring that back to the u.s. one of the main reasons the fed is trying to raise rates is they want to regain ammunition back. >> well, gentlemen, we'll leave it there. good discussion, as always. stephen wood, and bricklin dwyer. it was a big night in philadelphia, of course. i'm not sure where you want me to go here. where do you want to go, guys? let's get out to the dnc. it was a big night in philadelphia. the dnc coming to a close with hillary clinton taking center stage. john harwood joins us live from philadelphia. john, do they bloef they achieved what they had to do? >> i think they do believe that, simon. it was a successful convention. one of the more effective that i

can remember in 30 years of covering these things. look, hillary clinton made history in this hall last night by becoming the first woman to accept major party presidential nomination. she promised an ambitious domestic agenda financed by taxing wall street and the wealthy because as she put it, that's where the money is. >> i believe american corporations that have gotten so much from our country should be just as patriotic in return. many of them are. but too many aren't. it's wrong to take tax breaks with one hand and give out pink slips with the other. [ cheers and applause ] and i believe wall street can never, ever be allowed to wreck main street again. >> now, hillary clinton also contrasted her experience in national security as secretary

of state and u.s. senator with donald trump's inexperience and volatile personality. >> donald trump says, and this is a quote, i know more about isis than the generals do. no, donald, you don't. >> and just like president obama, hillary clinton ridiculed donald trump's statement that i alone can fix america's problems. she said that's a job for all of us, because in the words of her campaign slogan, we're stronger together, guys. >> okay, john. thank you. coming up on the program, we'll speak to one person attempting to sway votes away from both the clinton and trump campaigns. the vice presidential can't for the libertarian party, william

weld. amazon posted another block buster quarterly profit. alphabet's propts going up on the ad demand. joining us, ben schachter. good the talk to you. >> thanks for having me. >> you say the amazon story is as simple as it's ever been. can we get used to them posting quarterly profits? >> i think you can. aws and prime are driving factors. well north of 30% in all u.s. house holds. and now it's going to india. the prime store i have one of the most remarkable retail stories the world has seen. that will need to continue. >> some investors have long memories. they have seen this spending pendulum go both ways. where are we today? >> you're able to do both because of the scale they're at because of prime. you'll see massive investments.

they talked about doubling the video content spend. there's so much scale now. they're doing so well in terms of selling both first party and third party goods. we think you'll receive massive investment and massive profits. >> if this margin guidance is on the list of concerns in q-2, are you convinced they can ramp up investment and may tan the margins that the street expects? >> absolutely. we think q-3 will be an investment into getting ready for peak demand for the holiday. if they're able to do that correctly, q-4 will be one of the most profitable quarters amazon has had. >> you say google remains a one-trick pony. but being able to target ads better than anybody is huge. >> i think in yen, their ability to target the ads better than

anyone else on the planet. if you're a retailer or anyone trying to target a message, you basically go to google first. that's your first spend. after that, facebook, brand-building on tv. google is first. they're so good at getting your message in front of the right audience. >> the big takeaway of the week is that tech is doing well. especially internet and social media. the best performing sector of the week, of the month. i mean, on day where we just got a below 2% gdp number, how do you explain that? >> i put the title of my amazon notes and google notes the same this moing. the big are getting bigger. you see continued domination. we think more and more people are using the internet more and more often. in some ways, it's that simple. you have the internet with you at any time through this magical device you carry, your

smartphone. amazon and facebook and google are places people want to go. >> ten, thank you so much. you heard a lot of commentary about how amazon is building out its own delivery network. next, we'll talk to ups .p.s. i the wake of them reporting earnings. later on, an exclusive interview with the ceo of expedia. much more ahead. stay with us. (speaking japanese) oh watson, your japanese is very good. thank you. (speaking japanese) exactly. i can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. (speaking japanese)

u.p.s. emging lower. the shipping giant reaffirming its guidance, though higher fuel costs are cutting into its rising revenues. joining us now, is the u. p.s. cfo. richard, welcome back to the program. >> good morning, simon. thank you. >> a lot of people, or some people in the margaret were concerned as a result of the global weakness that they perceive out there that you might have to cut your outlook. why have you not needed to do that? m what is working for you? what is weak? >> there are two sides to what's going on. the first is of course, that when you look at industrial production, the gdp numbers this

morning, they have softened. you have seen the consumer side of it, the electronic ecommerce has continued to rise. put those two together, it complements our business well. and the last thing is the things we talked about, the multiyear investments. when i put the economic indicators from the external and the benefits we're getting from the initiatives, we feel very comfortable that the guidance we set earlier in the year is where we end for the year. >> we have gdp data that disappointed many. you're a lead indicator on where business to business is going. given the heavy shipping you do from time to time. yesterday, marriott were on the program pointing out weak tlns. business to business is weak for you, too, isn't it? >> it has. it's been a continuing story the last few quarters.

the business to business has continued to soften as production has come down. the other side of the business is the good thing. you look at the package business, it impacts the b to b. but the supply chain and freight, many businesses are impacted by the softness. that's why we said that we'll keep our margin where we expected to be. the revenue growth won't be as high as we thought at the beginning of the year. the international is outperforming that's allowing us to maintain to guidance. so, good domestic, outperformance in international, and we're addressing the weaknessens byis by looking at market customers. >> you're on the the show just after we were talking about amazon's results the the build out of their own delivery network is big. the shipping costs have risen

to4.9% of revenue. they're building out a massive network for the holidays. we know what's happened for everybody in the years gone by. where are you on the the key relationships with the likes of amazon and spending for the holidays. does their spending mean that your revenue over the holiday period will be depressed? >> so, you know, with every customer, amazon and almost every major retailer, we start planning for peak season early and often. the thing to keep in mind is we're investing for a network that is able to flex up not just at peak season but for any one kes mer as they need to do that for any pro motion that might have. the thing to keep in mind here is that we have great relationship with all of them. we plan in advance and i actually guided higher for the fourth quarter than the average for the year. that's being driven because we

think we'll have a strong, successful fourth quarter just as we did last year. and so, we believe that with our plans in place, the communications with our customers, we'll have another successful fourth quarter this year. >> as a business that is heffley -- heavily dependent on international trade, i wanted to ask you. we don't know how the world is going to look after britain voted to leave the eu. and here in tus, heading into the election, trade has become a political punching bag. how are you preparing and analyzing these uncertainties that could limit trade? >> i'll start with the uk. the uk operation for u.p.s. is very important. after the election, there was this downward forecast in growth. but it was very minimal. a lot of uncertainty. the benefit for our customers in the uk and europe is that we're going to be ready regardless what the new rules or how it

changes. we operate in over 200 countries. not every country has the same rules. we'll help our customers guide through that. we're still committed to the same investments we have for the uk and europe going forward of over $2 billion over the next five years. when you go the trade here in the u.s., i think the important thing to remember here is every time the u.s. science a trade agreement with another country, we see volume spike 20%. these great trade agreements allow us and our customers, small and medium, to participate in global trade. it's been a catalyst for the global economy, the u.s. economy for the last decade. it's incumbent upon businesses like u.p.s. and others to get that part of the story out. it's a good story. it's creating jobs. it's helping in the global economy in how it's growing. >> yeah. yes, it will be interesting to see how business is able to

articulate that. we have to lever it there. good to see you again. thank you for your time, richard peretz joining us there, the cfo of u.p.s. when we come back, the exclusive interview with the ceo of expedia. right now, the dow is down close to 7 points. at the beginning of the 21st century, the earth needed to find a new way to keep up with the data from over 30 billion connected devices.

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the big economic data point of the day. that big miss for second quarter gdp. our steve liesman is at head quarters. what are you finding? >> a big debate out there. the surprisingly weak second quarter report is starting a debate about the future of growth. will the consumer lead the way back for the economy? or will this weak, very weak business spending lead to resengr recessi recession? it confirms our expectations of a coming recession. this makes three consecutive quarters of recession investment. barclays a little bit more

optimistic. sharp rise in house hold spending should keep economic growth above trend. take a look at the last three quarter there is. you can see there. gdp. take an step downward in the last three quarters. it's just doing 1.2%. we're looking for2.5. the debate is how you break it down. 1.2% growth. the consumer added 2% to that. there's the beautiful chart. trade, neutral. everything else other than consumer was negative. government, negative. fixed investment, negative. inventories, negative. the asums is two of those won't stay negative. john williams, san francisco fed president. first guy out of the box since the fed meeting. saying the new normal means rate willing be lower longer. a shallower glide path upward.

rates underlying are very low. the flo economieser more importa -- are more important now to the fed. >> i'll pick it up. steve, thank you. an interesting gdp report. let's go to the cme group. good morning, rick. >> good morning, simon. we'll pick up on the topic with my special guest, doug holtz egan. thanks for taking the time today. >> thank you. >> 1.2, 0.8 last time. 0.9 the fourth quarter of '15. 1.225 is the average. 1% this year. not what we were looking for. why so weak? what do you think? >> it came in, the pattern was about what i expected. >> wait, now, come on, doug.

there's hot logs here. you we you were looking 2.5%. >> that would look like a strong house hold sector. weak elsewhere. that's what we got. three surprises. a big inventory down. that took a percentage point off. without that, it doesn't look so bad. the second surprise. residential. >> hold on, hold on. i like the inventory part. when we had alice on from m and i talking about all the pmis, the trend is the buildup and falldown of inventories. you could almost predict it every year at this time. why are people surprised it continues to happen. we make more widgets, we don't sell them, the inventory number distorts growth. >> you're right. it's just bigger than i thought. we'll see the bounceback in the

fall is my guess. the trend is a little better. another surprise in there was residential construction. much weaker than i expected. the real news was the house hold sector. 4.2% growth. 6%. i mean, just, that to e me, takes off the table any near-term concerns about a recessi recession. >> i went back and looked. if you look over ten years, 40 quarters, i only found two that were higher than our consumption number today of 4.2. fourth quarter of 2014 and the first quarter of 2006 each had 4.6. so help me with this, doug. where is this come sumgs coming from? how much more can hollywood and sports figures consume? where is the consumption coming

from? >> we have seen the plans sheet back in shape after the terrible financial crisis. we have seen solid enough income growth. the combination of hours and jobs and real wage growth, not spectacular. enough to sustain this. i didn't think we would get 4.2. i thought we would get 2.5, 3. we'll see less out of the consumer in the fall. a little more out of the invenn toirs. the business sector is dead in the water. we'll never get new growth w without it. >> thank you, doug. we're out of time. thank you for bearing with me as i interrupted you. look at expedia. shares under pressure. the company reporting lower than expected quarterly revenue. simon will talk to the ceo next. the dow down about 73 points. we'll be right back.

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good morning, everyone. i'm sue herrera. here's your cnbc news update at this hour. one police officer has been killed. another wounded after being shot in a san diego neighborhood during a traffic stop. the incident occurred late last night. one suspect taken into custody. police are looking for others believed to belong to a local san diego gang. there is no indication that the police consider targeted. florida dpomper rick scott says that state likely has the first cases of zika transmitted by mosquitos on the u.s. mainland. no mosquitos have tested positive for zika. one woman and three men in the miami area likely contracted the virus through mosquito bites. turki isish president erdow meeting with military leaders.

1700 officers have been discharged. suspected of involvement in the failed coup two weeks ago. and pope francis meeting with several survivors of the auschwitz death camp during an historic visit to the memorial site in poland. one by one, the pope stopped, shook their hands, and bent over to kiss the elderly sir voou ll. simon, back to you. expedia's core driver of growth is slowing. sales of hotel room nights accelerated by 20%. not the 31% expected by the market. the online travel giant had difficulty with the acquisition of orbitz. the ceo of expedia is with us. dara khosrowshahi. thank you for joining us.

>> thank you for having me. >> is that partly at fault here, the advertising to consumers? >> we have looked carefully at the markets in which there are great prevalence of chains, chain-heavy markets versus chain-light markets. we have seen zero correlation between our per or the mans there. we think the performance is a result of the work we have done or the orbitz side. it's been very significant and taken focus off the core. we expected slowdown with easter and other timing effects between q-1 and q-2. and the third is a macro effect. the uncertainty in the world. still, the growth of 20% is gaining share within the marketplace. >> you're very good at integrating platforms that you buy. it's what you have done in the industry for a long time. what went wrong with orbitz?

did you let priceline steal some of the volume with its own direct bidding? >> think the orbitz integration was the largest one we have done to date. there's a leisure brand, corporate brand, lots of international brands as well. i think three integrations in a row have cost some focus from the base. what we're doing now is putting the orbitz integration behind us. it was more successful than we thought. the results are good. i'm proud of what the employees have done there. you now we go forward and execute like we have the last five years. when we execute, we win. >> the macro environment. you're seeing something very particular and very important for people to understand, particularly in the travel industry as they look at capacity. this is the realization that when we have a terrorist attack now, we may not get the rebound in volume that we have seen on previous occasions.

can you just give us some color on that? >> there's big chanancellationsd after two to three weeks, a rebound. we have seen a shift in travel patterns. this year, spain is strong. canada is vong. places seen as safe are very strong. but, what we have observed in europe in particular is when one thing happens after the other, and there's a general sense of uncertainty within the marketplace, it looks like that may be having an effect on the travel industry. maybe business in general. we're going to watch it pretty closely because we have always bounced back. people always want to travel. this is unusual. >> you're talking about france, i mean, france is warned on pit. >> france is certainly the biggest contributor. when you look at volumes. since paris, they haven't bounced back the way you would have expected. some of the effect around france, nice, belgium, also have

a reverberation, too. plenty of people going to spain, et cetera. but it's something to watch. >> e we have to talk about the idea that you're going to ipo trivago. it's like kayak. the one that lists all the search results on a single pane. why have you made this decision to potentially ipo? it's still as i understand it 40% owned by the three german founders. are they saying to you, dara, we need to mark this to market. we want to see real price if we're going to sell you our 40%? is that going on behind the scenes? >> we have created a lot of value with trivago. the business is five times larger now than when we bought it. the growth rates are incredible, 40-plus percent. we and the founders thought there would be benefits to pursuing an ip porngs it's

something we're looking into. beyond that, i can't comment. it's been a terrific story for us. >> you have said you don't want to sell. >> we certainly don't want to sell. but obviously, we're pursuing an ipo because we think it will be a positive for trivago and expedia. >> they can force you to do t t that, right? >> it's a port call right. >> thank you very much. dara khosrowshahi joining us, the ceo of expedia. look at seres therapeutics. somewhat the story? >> everybody's worst nightmare. seres was a billion and a half market cap.

a phase two clinical trial has failed. they're trying to deliver a treatment. they saw no benefit of the treatment. it is continuing. folks are disappointed here. this is ceress' lead program. they're trying to figure out why this one didn't pan out. c-diff is one of the urgent health crises that we're dealing with. it affects about 250,000 people every year in the u.s. killing 14,000. it didn't pan out in phase two of the testing. >> that is reflected in the stock price. meg, thank you. when we return, a third party making a run for the white house this year. we're going to talk to the vice presidential candidate of that ticket.

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it's a golden opportunity to experience breath-taking lexus performance in street-legal form. for a limited time get great offers on our complete line of f sport performance vehicles. at the lexus golden opportunity sales event. could a third paert derail the clinton, trump campaign train. former governor mitt romney reportedly considering endorsing the libertarian ticket. they have less than two months to get to the 15% polling fresh loeld to get into the debate. the recent polling amplg has the fikt around nine and climbing. joining us this morning is the party's vice presidential nominee, former massachusetts republican governor bill weld.

great to have you here. >> thank you. >> we mentioned the romney thing that johnson mentioned on cnn the other day. can you flesh that out? >> mitt's an old friend. i was the first of four republican governors in a row for massachusetts. mitt was the fourth. i was his new york finance co-chair in both of his presidential runs. we're pretty close. and -- >> do you see an announcement coming? >> i'm not speaking for mitt or others. but i'm hopeful that some bigfoot moderate republicans might say something formal about the gary johnson-bill weld ticket. certainly, we're two former two-term republican governors. whatever else you can say about us, you can't say we didn't change our states. we succeeded democratic governors. we cut spending. cut, thats. we brought people together. they're both blue states. none of that stuff is happening

in washington because of partisan gridlock. it hasn't happened for a long time. >> when a ceo comes on, they've taken some market share, we ask to whom their taking it from. who are you taking yours from? >> it's even. if e we get to the 15%, particularly if we have a big foot moderate endorsing us. it will take us to 20%. at that point, we're dangerous. i had eight debates when i ran unsuccessfully against john kerry for the senate in 1996. think we can hold our own in those debates. we have a simple story to tell. we're fiscally responsible conservatives. we're socially about as open and inclusive and tolerant, liberal if you want, as you can get. peace, freedom, liberty. that appeals to young people. >> what are your expectations into the election?

even ross perot did not win any states. >> our expectations are to run the table if we get in there. you give me 20% going into september, 25% going into october, i'll tell you that -- that ticket that's coming from 5% before i got on the ticket a month and half ago, that ticket is going win the election. win the popular vote. so i'm not thinking of it so much in terms of what states can we win? i'm thinking in terms of the popular vote and through the debates and the $100 billion worth of free publicity and things going viral on the web, sort of seizing the imagination of the electorate. >> is it not necessary to have a huge party machine? >> we have an army out there. gathering signatures and -- >> nothing like the labor movement or the democrats, i'm assuming. >> certainly not as big a party apparatus. but many, many volunteers.

there's no shortage of people on the ground making noise, signs, that sort of thing. but, no, i think it would be more a wholesale than a retail campaign. appealing to the imagination of the electorate. it is an unusual year. there is an opening for a third way that's fiscally conservative and socially liberal. i think everyone agrees with that. that combination describes more than half the electorate. >> i'm curious. reagan appointed you u.s. attorney in '81. what goes through your mind when o you hear reagan been quoted, shining city on a hill, at a dnc convention? i loved reagan. he was an optimist. i don't like the negativity. i was very unsatisfied with the outcome of the republican primary process. i think mr. trump got there just by insulting people. there was enough unrest out there so people went for it. i think -- i think he got given

a bye. i don't think he was subjected to any analysis. i don't think there's in there there on trump. >> meaning? >> you pick a leaf off the artichoke, there's nothing in there. he never got cross-examined, speaking of debates, on what do you mean by this. he says, no muslims can come into the country. okay, most of the countries fighting against isis, they're majority muslim. he's painting with too broad a brush. >> i thing it's fascinating you're describing half the country would arguably be fiscally conservative and socially liberal. other countries, the conservative movement, liberalized towards the position that you would say that you occupy. >> not the republican party. >> this is my point. and became really very, very strong political forces as a result. you see that again and again and again cross europe. the gop is not reforming.

>> they wept the other way. >> do you think that will change after this election? >> i think the republican party may crack in two like the wig party in the 1850s. half the wig party became the no nothings. it it's the donald trump movement and he said i bet he does. i bet he's right. >> it's still tied to the primaries which drive certain elements. >> well if you add up all of donald's votes in the primaries they're not going to get him elected president. >> you worked at doj, criminal justice, would you have indicted hillary clinton? >> no, i didn't see evidence of criminal intent there. i thought the fbi had it right. no reasonable prosecutor would bring that case. >> thank you for coming in. i hope you'll come back. >> thank you. >> meantime we're keeping our eye on two of the largest oil

companies. exxon and chevron both out with earnings this morning. exxon is the biggest lag on the dow right now. jackie joins us with more on what was in those records. good morning. >> good morning to you sarah. let's start with exxon. it was the bigger loser today. quarterly profits sliding 60% from a year ago even though in the second quarter we saw a little bit of a bounce in oil prices. now the main issues here, slow international growth and also continued relatively low commodity prices. the ceo said the industry vierlt is volatile so the company is focussing on cost cutting. refining it did help the bottom line even though margins were squeezed and the company maintaining it's dividend of 75 cent ace share. let's talk about chevron for a molt. earnings were better than expectations but impairments impacting the bottom line. the key takeaways here, the energy majors reporting have been cautious in their tone. far more cautious than the street. so when the company's speak listen to them and cost cuts are

a good thing but there does come a point when you can't cut costs anymore. analyst questioning how they're going to maintain the dividend payments when cash flow is tight and they're taking the second leg lower so the immediate future is merky guys. a close under 40. the next is 36. >> just as you're speaking wti flips positive so we'll keep an eye on that throughout the session. coming up on monday, an interview you won't want to miss. 1:00 p.m. eastern time an exclusive with the ceo and chairman of jp morgan. jamie dimon. that's monday at 1:00 p.m.. we'll be right back.

>> you welcomed me and entertained me and taught me a lot. we all wish you the best of luck. >> 18 years. i can't imagine you not being

here. >> i know there's a lot of good things to come. i have to believe that. being a younger man you have a lot more ahead. >> it's been a pleasure. past and present. thank you very much. the opportunity was great. wonderful career for 18 years. >> still a young pup. >> you keep saying it. thank you. >> we're excited to see what is next. >> coming up on cnbc, squawk alley. stay with us.

>> it's 8:00 a.m. at amazon headquaters in seattle and 11:00 a.m. on wall street and squawk alley is live. >> recode's executive editor

kara swisher. good to have you today. a lot to get to. amazon hitting an all time high. profits top estimates. revenue beat thanks to amazon prime and aws. we keep hearing from these analysts that say they reached a point where they can now invest aggressively and start posting consistent profits. do you believe it? >> yeah. i know. amazon and profits. who thought we would say that after all of these years. it's interesting. aws has been the winner here for them and allowed them to do investment in other area and still show great financial returns for wall street and i think it's, you know, one of the things that probably jeff besos will do is continue to invest. i think that they're a company that doesn't think as much about the idea of profits than any others and you'll probably see them investing in video content and other things and not doing what wall street wants all the time. it's disheartening toal