attorney general is being nominated. there's a signal being sent don't do you fear you might be contemplating. can you for the betterment of the senate republicans who are working with this white house on a lot of issues put to rest once and for all the status of the attorney general, that he's not going to be fired, no need for a recess appointment and this issue can be laid to rest for country and for senate republicans who appear based on their public statements to be anxious about this prospect? >> i guess i'm not sure how many times you have to lay an issue to rest. i've tried many times. >> but when you don't say the president has confidence and the president says time will tell as he said earlier this week, i'm only telling you what senate republicans who are in the position to have to deal with this. >> and i've answered your question and yesterday you probably saw a statement come out from here that that was more fake news from "the washington post" on the fact we were considering a recess appointment. i think that sums that up pretty clearly. >> thanks, sarah

this is a little maybe -- maybe just a little bit off topic, but i want to run it by you anyway is the president aware -- >> probably good if we mix it up a little bit. >> is the president aware of the story of the i.t. staff of congressional staffer who most recently worked for florida congresswoman debbie wasserman schultz who was recently arrested attempting to leave the country, though he shade he was not trying to flee the country is the president aware of that particular circumstance, and is he satisfied with the pace of the investigation? >> i haven't had a conversation with him specifically about that, but i do think it is something that we should fully look into, and there should be a thorough investigation on that kristen. >> since we only have one question, i'm going to ask you about the boy scouts. >> make it count. >> the chief wrote this to family members who were at the president's events earlier this event are. i want to extend my sincere apologies for those who are scouting families offend by the

political rhetoric inserted into the jamboree that was never our intent. we sincerely regret that politics was inserted. does the president owe the president? >> i saw nothing but roughly 40,000 to 50,000 boy scouts cheering the president on throughout thinks remarks and they were pretty excited that they were there and happy to have him speak to them. >> why is the head of the boy scouts announcing that there's a problem? a lot of parents expressed frustration in the wake of the event and does the president owe them an apology? >> again, i was at that event and heard nothing but a lot of cheering and probably one of the most energy ike crowds i've seen in front of the president, and so i don't have anything to add. i haven't seen the statement from the boy scouts so i can't comment any further than what i saw firsthand, and that was a lot of individuals, roughly

40,000 to 45,000 as report, cheering the president on. zeke. >> two for you real quick. >> one there's a rule today. >> first on anthony scaramucci on cnn this morning he said he had a conversation with attorney general jeff sessions about the supposed leaks that would appear to violate guidelines and secondly out of alaska today the local paper there is reporting that senator murkowski received a phone call threatening -- essentially threatening the services in federal dollars spent on the administration's posture on the people of alaska if she voted a certain way on the health care bill and can you confirm in that conversation if it happened. >> i'll answer boast -- both of your questions >> i'm not going to speak about cabinet official conversations that i've haven't had a chance

to talk to either individual about. >> you said the president continues to have confidence in reince priebus considering that he's still in the position and he's a friend of anthony scaramucci coming into the position and based on what we've seen quite publicly playing out though does he think they need to sit down and talk as house speaker ryan talk and get whatever this is out of their system so they can start off on the right foot? >> i don't know if he has an opinion on what they should do between the two of them. i think the president as always enjoys healthy competition and conversation, and he sees that as such. i've got to wrap up here because the president is getting ready to do an event which i know you all probably want to attend and i want to leave you with just one last thing before i close out on an important development. you guys love to talk about russia, and there's been non-stop coverage and the one day that there might have been a question on russia there wasn't. often we have a lot of media

with russia first, but today there was public testimony that further discrete itted the phony dossier that's been the source of so much of the fake news and conspiracy theories, and we learned that the firm that produce it had was also being paid by the russians this is yet the latest piece of evidence that vindicates what the president has said, that this is a wish hunt and a hoax and it's a shame that the president and the country have had to go through this charade continually and hopefully this will help us move forward in that process, and with that thank you so much and we'll see you tomorrow >> sarah huckabee sanders, the white house press secretary wrapping up the daily press briefing there at the white house, developing quite the relationship with the white house press corps. >> and touching on a number of issues from the relationship between anthony scaramucci and chief of staff reince priebus as she emphasized and mentioned the latest on russia and larry kudlow is going to join us shortly. >> yes that joint statement from the

so-called big six in congress, the republicans on tax reform which we will get to that's a big story developing right now. >> and health care, too. >> and i said on twitter a little while ago, remember when we used to have slow news days, i don't either. >> well, twitter is part of today's news day. >> they have had a slow earnings period let's get to the market today. the dow is up 19, but we had a huge selloff midday. bob pisani is in the middle of the action here. boy, the nasdaq took it on the chin for a little while, hu? >> we've seen a classic midday dip in the markets because certain parts of the market are absurdly overbought. what is absurdly overbought? >> going on 14, 15, 16, 17 days in a row, the entire sector. f.a.n.g. stocks in particular, biotech stocks, for example and they said they would take profits first in the cascade of

stocks in the f.a.n.g. stocks and look at the s&p. this happened somewhere around 12:15 or 112:20 or so and started with some of the bigger nasdaq names, including the biotech and then cascaded on look at marketship leadership group like visa. fantastic numbers overall. up 25% on the year just started cascading a little bit before 12:00 and then just moved down fairly quickly. that's a typical one caterpillar has turned around rather dramatically recently it, too, just a midday drop right there. right around and a little after 12:30. saw the same thing with the commodities stock which have done very well u.s. steel, great commentary great numbers. 12:30 and 12:40 doom down 5%. there's no news out. this is just the secondary effect because the markets are very, very overbought right now. finally take a look at the transports, some have done very

well in the last couple of weeks. same thing they started a little bit of weakness around 10:15 and 10:30 and a little past 12:30 to 1:00. the important thing here, and i don't want to get too far into the technicals, but if you look at 50-day moving averages and 200-day moving averages and relative strength indexes, all of them are way, way in overbought territories, particularly in the big tech names and the biotech. guys, back to you. >> bob, thank you for now. our bob pisani. let's get to the turnaround at the nasdaq where morgan brennan is standing by. >> reporter: we're on track for the worst daily performance in over a month and that's after another record this morning, so bob just talked about the biotechs the other big names here, big-cap tech which is weighing on the composite the nasdaq 100, also the s&p tech is the worst per forming sector now today, and apple is just leading the leg lower that's down more than three -- more than 2.5% other f.a.n.g. names, alphabet and netflix are also falling

also microsoft, but keep in mind they have all had big runs, double-digit runs. profit-taking is at play also a lack of volume and also there is some floor and trader talk of a big sell serve a nasdaq future trade. few exceptions amazon trading at an all-time high ahead of the earnings after the bell and automatic data processing, adp. that's up about 9, almost 10.5% on reports that bill ackman is building a position in that business outsourcing company, but overall we're seeing a lot of red semiconductors are also taking a breather here today, and biotech, with the ibb down more than 2%, so all of this ahead of another busy earnings day after the bell as you guys are so aware. got a number of nasdaq listed names, intel, starbucks, expied yeah, and, of course, amazon. >> guys. >> all right morgan, thank you. well, facebook shares gave a boost to the tech sector

initially after its strong earnings report. julia boorstin is stepping in with details on that one julia? >> reporter: hey, bill, that's right. facebook shares are up about 3% today after the company reported better than expected earnings revenue and user growth. a slew of analysts raising their price targets on the stock today, including jpmorgan, deutsche bank, goldman sachs and rbc, among others. i spoke with c.o.o. cheryl sandberg after the earnings broke, and here's what she said about how instagram is helping drive results. >> we've been really pleased with the success of instagram. we don't break out our metrics between the platforms, but we believe facebook and instagram are by far the two most important mobile app platforms, and that's why you're seeing growth this strong. >> sandberg, along with ceo mark zuckerberg spoke of the ability to make money from messenger with 1.2 billion users and what's app with more than 2 billion. zuckerberg wants to see the company move faster when it

comes to making money on messenger. more signs of facebook going after tv ad dollars, both talking about wanting to create a video platform for professional content creators to reach users and enable them to make money while doing so. guys, back over to you. >> jewel crashing thank you very much let's kick things around here with the dow still the only of the major averages in positive territory. renee norris, part of our clbl exchange today with urban wealth management and kenny polcari is here with us at post nine and rick santelli at the cme in chicago. kenny, it's clear, when you look at just an example the vix, that while traders are willing to hang in there with this market, they are standing near the exits pretty closely. >> absolutely. >> and the hint of something gone amis they are out the door. >> and there's the anxiety you can feel them. all getting close and nobody wanted to be the first guy out of the door until they all want to be the first guy out of the door. >> exactly. >> so whether it was we hit

resistance at 2480 in the s&p and people decided, as bob said, these stocks have performed well and these people are taking profits or it was in fact the very large futures trade which would hit nasdaq and, therefore, it hits all the tech stocks and the biotech stocks and it makes perfect sense. when the leaders are weak, everybody jumps in there and it goes to speak to the anxiety and the angst of the exact point everybody is nervous but nobody wants to jump out the door first until everybody else wants to jump out of the door. >> renee, would you a buyer of some of the names are netflix off 5% >> no, no, not yet i'm starting to de-f.a.n.g. my portfolio for clients. taking the profits off some of the f.a.n.g. names and putting them into cash and also doing some boring stock trades, like in telecom or staples stocks, and some health care, big pharma, something that pays a dividend because i'm looking for the next bs event, the black swan, and that could come from

anywhere and be anything, so we want to be ready for that. >> i'm curious let me -- let me probe a little more on the f.a.n.g. stocks. is it just the valuations? i mean, you know, plenty of people are willing to hang in there as the amazons and the facebooks hit their all-time highs and even microsoft which is not technically a f.a.n.g. stock is at all-time highs right now. you want to get out before everybody else does, or what's your reasoning there >> i don't want to get out i want to take money off the table. the valuations are ridiculously high so, for example, i'm looking at an at&t or a verez-on-has a pe of 12 or 13, and they are paying a 5% dividend versus an amazon that's got a triple-digit forward pe and -- and backward looking pe, so i'm just taking some money off the table. i love amazon. i think a lot of these companies are major disrupters they are not going anywhere any time soon, but they have also made a tremendous amount of gains so let's just take some money off the table and buy some other things. >> yeah. >> better hurry on verizon.

>> i had to rub my eyes when i saw a 7% gain in verizon that's having its declines kenny, when is the last time you saw a telecompany like this move i thought someone announced they are buying it after all? >> that's what feels bubbly. moves like that. boeing is up 10% i mean, those are big moves for stocks like that. >> stocks that big. >> exactfully. >> by the way, merkel a 3% upgrade and they have earnings from goldman tomorrow. richter, let's talk macro for a second we do get the gdp numbers tomorrow and durable goods numbers. what's happening right now with the economy? >> well, i think durable goods headline number really looked great, right, up is.6% and when you take the "x," transportation up.02% i was particularly unhappy with durable goods orders, non-defense and that was

down .1% that's kind of the seed current, and to summarize, what i find fascinating. i don't think it's shocking that you're seeing some of the markets get de-f.a.n.g.ed. i like the way renee put it. it's wearing blinders. the equity markets aren't paying much attention to the fixed markets which aren't paying much attention to the equity markets. global incomes, sovereigns correlating, and throughout all of this volatility, especially in the nasdaq today, interest rates like aren't going anywhere when it was on the highs, when it was on the lows, basically unchanged in the short end long rates are up several base points and a little curve steepening afterier. listen, i really do think tomorrow's first look at second-quarter gdp will make a difference even when it's new it's an old number if this thing comes out much further north than 2.6, 2.7, the market will take notice of that perceived strength for q-2. >> i know interest rate triggers

felled likes they were standing around in a quiet punch bowl when the rest of the party was going on on the other side of the room >> thanks, everybody mack breaking news we need to get to right now but thanks for your thoughts on today's market action. >> let's go over to courtney reagan for a market flash. what's happening >> reporter: hi there, kelly take a look at shares of nordstrom moving higher on a reuters report citing sources that the north strom family is exploring the possibility of taking the company private, that we've known since june, is now looking to offer preferred equity to several private equity companies, including kkr, apollo and leonard green, sort of sweetening the pot for them which would increase dividends from cash flow or give them the -- to be paid first if a stock sale were to occur in the future you can see shares are up by about 3.4% they were slightly higher just a moment ago, and they pulled back just a bit, but this does sort of underscore the fact that some private equity firms may be a little reluctant to do leveraged

buyouts. we know the trouble retailers have had that's been a part of leveraged buyouts so it looks like the family may be trying to sweeten the pot to attract those kinds of buyers and a reminder that the family told us that they were looking to consider it to go private back in june kelly and bill. >> nordstrom walking it back there, the stock. >> thanks, courtney. keep us updated on that. are we given enough to think about here what a day we're having again. the dow up 23 points to put it in record territory, but the s&p, the nasdaq and the russell have all fallen back here. amazon shares rallying more than 40% year to date, and that has helped founder and ceo jeff bezos become the richest person in the world as of today coming up, a debate on whether you should be keeping -- keep your bet on bezos and amazon stock ahead of the latest earnings report coming up. meantime, store traffic at dunkin brands for the last quarter.

>> and whatever happened to the breakfast burrito? we'll ask him about that we want to hear from you i know you have something to say. reach out to the show on twitter and facebook and send us an e-mail, however you want to do it sissoratincn, rsin bune wldwide because, when you really, really want to be there, but you can't.

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yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. shares of dunkin brands higher right now, up 2.7%. they beast estimates and revenue came in short of forecast due to slowing customer traffic and weaker than expected store sales. >> what's behind the weakness? in a first on cnbc we're joined by dunkin brands ceo nigel

travis hello again, nigel. >> welcome back, sir. >> hey, kelly, bill, how you doing? >> lovely, thanks. i'm thinking about dunkin and how many stretches you've gone, quarters with declining traffic, and i'm wondering is it time to pull out all the stops and throw all of the technology and infrastructure at this and just say, all right we'll get to the product to consumers. this is a really difficult environment, right what can a chain like dunkin do to remain relevant as traffic drops? >> well, i think we're doing everything exactly right, kelly. you're right that the whole industry is under some pressure from changing demand, consumers are demand thing instantly they want it delivered. they want it in different forms. they are pressured for time, but i think we've positioned ourselves perfectly to respond to that. we've done it on the back of convenience. our drive-thrus are having record sales and building more

drive-thrus up, 15% of new stores have drive-thrus compared to 75% years ago we've got our apps and curbside coming up. we're giving the consumer everything that they are looking for and the holy grail in the next few years, to answer your question, going forward is going to be delivery, and that's going to be a global trend, not just a trend here in the u.s. >> in the past, nigel, we've talk about new product offerings, you know. the breakfast burrito which i'm wondering whatever happened to that you know other things that you were doing to draw people -- there it is. draw people into the stores. now you seem to be talking like steve easterbrook is talking at mcdonald's it's not so much about the product offerings, it's the delivery system itself i mean, he went to all-day breakfast. he went to upscale sandwiches, but with this earnings report this week all he wanted to talk

about was technology you seem to be telling the same story here, yes? >> well, we've been certain for some time and it may be the british connection, bill, but i think that -- i think that the mcdonald's are following the same game plan as we've had for some time. i think we've got the leading app in our space i think consumers find it very convenient, and i just want to go back to your first comment because also in the headline the breakfast burrito will come back at some stage. it was lto, limited time offer we actually had a record quarter in terms of breakfast sandwiches that's despite us positioning ourselves as being beverage led and on the go, beverage led on-the-go brand and what happens is sour breakfast sandwiches is naturally attached to our beverages. so product we're not throwing out of the window. we're a leader in technology i think many other brands are copying us now, and i can tell you i'm more excited than i've ever been by the support of our

franchisees getting right behind the technological innovations that we've been pushing for some years, and you'll see a lot more in the future. >> that's exactly it, nigel. before we go i mean, how do you differentiate yourself now so that the consumer says i want to go to dunkin because i know i can order, walk in, pick up, get out of there, get the right thing, you know how do you make that the best experience so you don't run into some of the problems that starbucks and others have had, for example, in the stores themselves what more is that going to take for you guys to really set yourself apart from the pack >> that's a great question, kelly, and i think that goes back to the consumer research we did with 10,000 consumers last year they told us exactly the position ourselves as we are the beverage led on-the-go brand. we got it all set up and we're communicating it like that we're continuously adding to it and we're adding curbside.

we're the brand that's convenient, and your point on speech, a very relevant one. we did some checks this week, and we are world class in speed, inside the restaurant and through the drive-thru and we will continue to drive that and consumers are recognizing that we are the convenient place to go, and i think increasingly we will be the convenient place just to go to curbside and delivery >> nigel, always a pleasure. >> thank you. >> even with the british acdent there. >> thank you >> 35 minutes to go, by the way, i did the lunch thing, ordered it ahead of time and walked in and picked it up bill, this is changing my life it's changing my life. anyway. >> you millenials. >> the cushy lives we lead. >> yes. >> the dow is up 38 points paced in large part by verizon with a huge gain of 7% after its earnings. >> but was it good food? >> it was the best

that's what i'm telling you. >> i'm going to take you there next time. >> that's fine. >> the s&p is down 9 and the nasdaq down 61, and that's turned everybody lower midday. president trump has taken to calling it the failing "new york times," but the paper's stock has been doing anything but that lately we'll have the numbers next. >> and mr. trump's chief strategist wants americans making over 5 million a year to be hit with a 44% tax rate to help pay for tax cuts before a joint statement was released on tax reform larry kudlow will be here to share thoughts on near and dear to his heart that would be tax reform that's coming up next on "closing bell. whoooo.

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and you know, president trump has called is the failing "new york times," but that stock is hitting the highest level in more than nine years after beating wall street's earnings estimates thanks to strong dirnlgtal subscriptions and ad revenue. subdescriber numbers have soared since president trump was elected last november, and the stock is up more than 70% over that time, presumably over the trump effect, how ironic. and boeing is higher after credit suisse upgraded the stock from outperform and raised its price target from $200 to $200 boeing shares up more than 50%

this year and the analysts at credit suisse said, quote, we're clearly late to this party the stock up 2.7%. at least he's willing to admit that. >> and surpassed goldman on the bell discovery and scripts have agreed to combine in a deal worth $90 a share after viacom came short with an all-cash deal scripps is an operator of channel of hgtv. >> it's all about scale, bill. >> you've got to have scale in that business. cable operators are scrambling and have to achieve that, and those are two companies that need it badly. >> and to use everybody's least favorite word of synergy, you can see that between animal planet and hgtv.

>> and food channel. >> which would make my top three now. >> is it edging someone else >> cnbc. >> and golf channel. >> shares of adp have soared today. leslie picker is here to tell us why. >> reporter: that's right. adp is spiking on a report that pershing square took an interest in the company if ackman does have a stake, it's unclear what the size is or whether he was done building it. pershing square declined to comment and adp has not responded to our requests. adp is big and trading with a $50 billion market cap and ackman tends to hold concentrated portfolio with both longs and shorts on the long side he's talking about what is undervalued and

seeks changes that have the stock price. up over 11% over the last month and analyst say it already trades to a steep position ackman took out new positions without spelling out exactly what they were, and in may he's already sold out one of them and didn't disclose what the other s.adp could be the mystery pick but we just don't know, guys. >> and paychecks up today 4% up. thank you, leslie. >> thanks. time now for a cnbc news update with sue herera hi, sue. >> here's what's happening at this hour. treasury secretary steve mnuchin testifying before the house financial services committee, and there was intense bickering between him and democratic representative maxine waters regarding his tenure at one west bank and foreclosures. >> i take great offense in that anybody who calls me a foreclosure king or anything else i'm not apologizing to anybody

because robo signing is not a legal term, and i was being harassed >> the head of the boy scouts of america apologizing to the group's members after president trump delivered a controversial political speech to the organization's national jamboree on monday. chief scout executive said he was sore fethose in the scouting family were offended by the political remarks. and mtv announcing that katy perry will host the mtv video music awards on august 27th. at the forum in inglewood, california perry won video of the year back in 2011 for her video "foyerw k "firework. and that's the latest update. >> i'm here with allen valdez. quite a turnaround midday. what do you think is going on here >> we had that note from jpmorgan coming utterlyier in the day. >> you think because the guy

wrote about volatility >> i think so. >> all right. >> one of the factors but then, again, a lot of profit-taking going on a lot of guys saying it's late in the summer, let me take some profit let's just play it safe. >> you don't think it's anything d.c.-related, macro related? i mean, who recall knows is it a move that you think people will buy once you see a name, as i mentioned earlier, like netflix down 5% >> i mean, it is stunning to see many so of the moves but in the long run, no i think the earnings are going to surpass all of that and the earnings have been strong. facebook after the close is going to blow it out of the ballpark so i think it brings back to reality and the market will continue to run this would be an opportunity then. >> yeah. >> seeing the selloff and they can say, all right, still a big run-up a little correction. >> had so much legs, and i don't see it coming in much and the earnings happen so strong. >> we'll have to call you silver bull capital but that's another story. thank you very much. >> thanks, kelly. >> bill. good one we head to the close here with

26 minutes left, and the dow is the lone major average in record territory. still higher up about 51 points right now. with health care struggling to be passed in the senate, is president trump about to shift his focus to tax reform and could that actually include raising taxes on the ultra rich. larry kudlow weighs in on that among many other things coming up. and amazon highlights another huge wave of earnings after the bell tonight we'll bring you the results and we have a debate on whether we should be buying or selling amazon right now that's later on "csi bl. longel experience advanced safety technology at the lexus golden opportunity sales event longel

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top republicans in congress and others released detailed principles on how to proceed on tax reform. >> yahiaoui has more >> the white house and rope can leadership just put out a statement saying that they are -- that they are abandoning the controversially border adjustment tax they say there are many unknowns with this policy and they need to put it aside in order to move

forward with the unified plan for tax reform now, retailers immediately cheered at this decision, some of the biggest opponents of the border adjustment tax and even manufacturers who are part of that american made coalition that had supported this policy said they were glad both sides were just coming together and agreeing to work on comprehensive tax reform at all. now, some other principles that came out of this statement, both sides agreed to work on simpler, fairer and lower taxes they said that permanent tax reform is a priority and that they are looking for an unprecedented level of capital expensing. now, if you read between the lines of these, however, there is a slight walk-back in some of these terms. they are saying that permanence is a priority, not a necessarily, and they said that instead of full expensing they want to see unprecedented expensing, so clearly some negotiations still under way because one of the questions underlying tax reform that still has yet to be answered is how to

pay for all of this. now house ways and means chairman kevin brady just spoke to reporters, and i asked him whether or not the death of the v.a.t. would moan that taxes would have to be higher than they would otherwise have been he said that the lawmakers are just working to get taxes as low as possible so he didn't answer that question directly however, he will be headed to the reagan ranch on august 16th to work with some other tax writers on this legislation and get that going maybe they will find inspiration out there in california. in addition, guys, chairman brady handed out these nifty calendars listing 31 reasons for tax reform to take us all the way through the month of august. it's been 31 years since the last major tax reforms so here's 31 reasons to get started again. back to you guys. >> the works has 31 reasons. >> that's pretty fun. >> august does. >> you know how to do that >> 30 days --

>> yeah. thank you, ylan. ylan mui on capitol hill. joining us to talk more about this is cnbc contributor larry kudlow. >> already waving the checkered flag. >> first of all, i really like this statement and maybe we'll try to read between the lines, but the v.a.t. tax was holding things up, and we've buried that several times. kept coming back speaker ryan actually in recent days mentioned it again, i go, hu there's nobody there for you, and now they have made it official so that's really good now let's get on, you know, to the main chance, and some interesting things they real singled out not rates yet so much, but small businesses are going to get a business tax cut that was a very important part of the trump plan that steve moore and i and others drew up, mnuchin and so forth they talked about an interesting statement about expensing. they will have unprecedented write-offs. >> i know you were pushing for this. >> always. it's very important from a cost of capital standpoint, and i'm

assuming that means full expensing if they can fit it in, maybe not. the other thing is repatriation is going to be in here there's no question about that, and -- and i would like to make a generic statement. unlike health care, unlike health care, on taxes the trump administration had its act together, and, secondly, the republican party basically agrees with itself. >> so what do you make of steve bannon's reported remarks about wanting a 44% marginal tax rate on 5 million plus? how does that knit in with everything that you're laying out? >> especially when you consider that -- that if they have taken the border adjustment tax off the table, they have to pay for it somehow and mnuchin said that they want to make sure that they are mindful of the deficit and the impact it will have on all of that have. >> steve bannon is a friend of mine steve moore and i were in bannon's office last week and he said he wanted to raise it from 39.6 to 42 so retried to argue

him out of that, you know, with our usual sensible common practical sense analysis, so i guess we didn't because he came at 44 a week later >> a direct jab at you, right in. >> i'm not going to take it personally, but i -- i don't think that's going to figure in it at all. you're not going to make any money. when you try to increase taxes at top, top end, all you're going to get is tax avoidance and you're going to get lower growth and investment. >> can you go to 15, even without a border a i justment tax or something to help pay for it >> the answer is most important word in the english language for the economy growth growth this whole debate is going to hinge on the estimates for economic growth. the congressional budget office is way too low for the next ten years 1.9 i believe the house budget committee is assuming 2.6, which gets you a lot of money. i believe the administration will be close to the truth they get you to 2.93, and i

think that's going to be above 3. very important another issue. revenue neutrality, ref nvenue neutrality is the wrong way to go because if i have to take a deficit the first couple of years for this kind of growth and prosperity, i would. the window should be ten years the window could go to 20 years. it used to be three years and five years. >> i wonder how low the dollar is going to go. >> the dollar will love this. >> help corporate profits even more. >> the dollar is going to love this. >> that means maybe inflation is going to come back after all and maybe the fed can be hawkish after all. >> kelly, kelly, these are supply side tax cuts you're increasing the demand, the money, you're increasing production incentives that's counterinflationary. another important point. you don't just have to use revenues if you say you want deficit neutrality, whatever your window is, okay, newt gingrich and we and others, you've got to build in the spending cuts

the administration has a very strong nick mulvaney spending cuts you've got to build in asset sales. you've got to build in private operations of infrastructure >> how can all of this be moving along while they are dealing with health care, and what's going on with the chief of staff and anthony scaramucci >> well, boy, that's a -- that's three big ones there. >> well, yeah. >> that's important. >> first of all, there's almost a message here that regardless of the outcome of the health care dispute they are ready to have pivot to tax cuts, and i know -- >> the timing of of this statement is very interesting. >> that's correct. >> don't you think >> probably came much earlier than most people i know from my own visit the president very much wants to pivot to tax cuts, all right, so that's one second, i actually still believe the skinny health care reform might pass get rid of the mandates. allow some insurance choice and take away the medical equipment tax. i think that has had a shot.

i'm not going to it, you know, if you think not, i won't disagree, you about i think it has had a shot. >> we've got to go here. >> but you're ignoring her question on scaramucci and reince i was hindful when speaker ryan was asked about that he said he thinks priebus is doing a fantastic job and that he has the full support of president and i thought, boy, he jinxed it now. >> well, i know reince, like him very much. i know anthony and i like him very much. i don't know what -- you know, sometimes you read the tea leaves too hard and you get an eye ache, so i'm not sure what's there. i do, however, believe, this is just my instinct, that there are going to be new additional senior staff changes in the white house. >> does that affect tax and health care in one way or the other at this point? >> these are my own speculations that i believe is going to help tax cuts i bleach it will have a restraining influence on trade.

>> is that because you're appointing yourself to -- i love --then i can't come here. do you think i'm going to give this up? you can't just do that and then you can say to the president, sir, i don't agree with that point. >> we still have to go to commercials in this part. >> i was hoping to run out the clock. that scaramucci question was brutal, absolutely brutal. >> absolutely love having you join us. >> thank you so much. 13 minutes to go until the close. quite a round trip today. >> coming back. >> s&p down 5, nasdaq really having a rough session it was down almost 1% and still down the .8 of 1% and down 51 and the russell down about 1 still to come, coffee wars we've already heard from dunkin. after the bell we'll get results from starbucks we'll see if new food and beverage initiatives are enough. >> and a bull and a bear debates how to play the tech giant onn the final minutes of trading. stay with us

[car tires screech] [bell rings] (upbeat dance music) (upbeat dance music) (bell ringing) shares of amazon are falling today. does that make him still the richest man in the world >> i think it was an intraday thing. >> the e-commerce giant will be releasing its quarterly report on earnings after the close

tonight. >> amazon up 40% or so this year is it too late to get into the stock after this huge run? let's bring in jason hemstein who is bullish along with max wolf who is bearish short term welcome to you both. jason, let's just start with you. what an extraordinary run. i think on the bell yesterday amazon's market cap passed half a trillion dollars for the first time so what's important to you for the earnings today you need to see for the stock to keep moving higher. >> sure. really, it's two things. one, an update on the aws on the cloud business that has really been what drove the revaluation of the stock, and -- and, you know, this year, competition has gotten -- has been heating up from microsoft and also from google, though less so from google, and they seem to be investing a lot in head counts, so an update there, and then just secondly, you know, the international business they are making significant investments on so the question is the street properly fact oregon in the investments?

up until now they haven't cared because they are not willing to give the company a pass because they have proven themselves in the u.s. >> all right max, it says you're a bear short term what does that mean? >> yeah. look, i like the name. i think it's there is to look longer term and what we see happening in the next quarter to maybe even three-quarters it's going to be one of their investment periods so you know the name and amazon, what they are really good at is identifying verticals and killing off the profitability by spending aggressively and slowly taking them over until that penetration period they tend to report somewhat lackluster profit numbers and one of the things that the company is not great at is margins, so we think you probably have a lower entry price in the next month or so though we still like the long-term name. >> so, does that mean that you would then be buying any dip that you anticipate when they do make those reports >> absolutely. anything to sell off more than 6%, 7% is a buying opportunity that you'll be rewith regarded for in the long term, but that's the cycle of this name

invest and slightly miss and then beat in the future and if you can get in the interim you can continue to step into what is still a good long-term story. >> jason do you think people at this point are more focused on that ever elusive profit figure, or still just want to see good overall revenue growth numbers >> the street does appear to be being looking through. i mean, we've been writing about this and we have published estimates of profit numbers below the street nobody seems to care the street continues to want to give the company the benefit of the doubt. i think one of the factors is that the retail sector has been so bad that you have consumer portfolio managers who are buying amazon as their exposure to consumer, and so you really expanded the shareholder base and you have tech people in there for aws. you've got internet, e-commerce people for the e-commerce business and now you've got kind of that consumer portfolio manager so the reality is it's probably pretty hard to find any real bears out there >> jason, and that's -- that

leads me to my question, as a matter of fact have we gotten to the point now where jeff bezos is walking on water, and, you know, every time we turn around they have a new strategy being announced and another some goes down in another category, whether it's clothing retail or food retail or, you name, it uber. so are we to the point now from a contrary standpoint where this is as good as it gets for this company? >> i mean, look. take a look at some of the market share figures, so in the u.s. your market share is about 40% of e-commerce but globally you're about 1 or 10, right, so -- so no reason why they can't see progress there aws, they can lose, they can continue to lose share to microsoft. however, there's no reason that business doesn't double in value in the next three to four years, and if we're valuing that at 215 billion today, that's a 500 billion business, you know, in the next four years.

look, i think the whole foods question and what they want to do, owning physical buildings, amazon go, they are not going to enter that on the call tonight we don't think you're going to get anything on whole foods so -- so nothing -- the question is there anything to break the momentum that's the question. >> right. >> all right >> well, we'll she what happens. thank you both jason, max, good to see you both. >> thank you >> those numbers out tonight. >> heading to the close with five minutes left here, the dow, and i think art cashin said it's 100 million to buy going into the close here, so a non-event is how he put it with the dow up 61 points in record territory. we have the closing countdown in just a moment here. >> and today is the busiest day of the whole earnings season after the bell, we get results rolling on and also intel, starbucks, expedia, mattel and many more. keep it right here you're watching cnbc, first in earnings worldwide

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get ready, because we're helping leading companies see it- and see it through-with digital. (baby crying) ♪ fly ♪ me to the moon (elegant music) ♪ and let me play (bell rings) 90 seconds left in the trading session. let mow show you what happened the nasdaq midday down it went

after it looked like we would have another record day for all the major averages, down that went, and -- and flipping it the other way, the vix which yesterday hit an all-time low at 884 during the day took off, and we were at 11 and change for a time and now we're at 1014 verizon up 7% on better than expected earnings and going the other direction though, the dow transports you and i were just talking about this, this was the worst day for the transports in a month down 300 points here. >> what i would point is there were earnings early on didn't have anything to do with the midday dip the qqq, that was the story. about 12:25, 1225, just saw very heavy volume coming through. obviously somebody dumped some stock on the market. a little bit of selling pressure when you have very light volume and get a dip. you see your big leaders like

apple move to the downside very quickly and then your other leaders like biotech stocks moving, a modest med day correction volume was on light side until that happened. >> it's the busiest week for earnings, and we're about to have the busiest moment for earnings amazon, starbucks and a whole cast of thousands come up on the second hour of "closing bell" with kelly evans and company good luck with your 5k tonight, kell >> thank you, bill i told him i was nervous still have a couple of hours welcome to "closing bell," everybody of the i'm kelly evans. makes a big difference which index you're looking at. dow, up 86 points to a record close of 21797 so in one session we've gone from closing above 21,000 to gaining above 21,800

verizon a huge gainer with a 2% increase in the dow and merck and some other names are doing quite well boeing after 10% higher was up another 2% and that's not the biggest price component as we mentioned. very different story for the other indices, tells us what kind of session it was nasdaq turning lower by 2% and down 1% just an hour or so ago 6382 we'll see what was happening with some of the techie growth namesand we got a scare midway through the session. the s&p 500 down two points and the russell down let's see, about 8.5 points on the close, 1433 for the small companies. tech to retail, earnings fast and furious and today is the biggest day of earnings for this entire season, and wait until you see the six box that we have there's all the companies we're waiting on and let's see all the reporters that will help us. deer bra bosa covering amazon, josh lipton with intel, susan lee is doing double duty on

starbucks and expedia and aditi roy covering electronic arts and we'll see you all in a movement joining me on panel cnbc senior markets commentator michael santoli and stephanie link is here, managing director and equity portfolio manager at tiaa investments and michael yosikami is joining us as well. a full house, michael, and i know they'll are start coming at us what do you think is going on with the session it was? >> a market that was stretched a little bit not able to get a lot of energy to the upside, even though earnings were really much petter than expected. i do think it shows had a little skittishness and the bears can't be happy with this close you thought you had an opportunity finally to have a decent dip and everything but tech almost comes all the way back. >> i'm just -- i've got a little look on moy face because amazon is starting to flash and the bottom line number looks well shy, but we've always got to look through the full report to

see what's going often the revenue number is higher, so it's putting its numbers out pretty much right after the close here we'll see if the stock is starting to move at all. deirdre bosa has the results for us deirdre. >> reporter: that's right. top and bottom line as you mentioned. looks like a very big miss in terms of eps wouldn't be anything too rare for amazon but we're seeing 40 cents per share versus 1.22 a share which was forecast by the street that's more than $1 miss here. revenue though, 38 billion versus 37.2 which was expected pulling up the stock price as well amazon shares down more than 3%. we're going to continue to go through this and want to lock at cloud certainly and lots of hints because amazon doesn't share a lot of these specific numbers relating to prime and other areas so we'll be listening for all that have on the call i'll continue to go through this and i'll get back to you with more numbers shortly. >> michael yosikami. already that 4% drop is 2.5% what do you think? what would you do with the

shares and what do you think about the numbers at first blush? >> first off, as investors everyone knows amazon doesn't really care about the bottom line it's all about growing and market share that's the whole point of prime, not to be profitable but just kept for market share. the bottom line for amazon that's the stock where the profit has really not been something that you buy the stock for the profit really ever what you're buying it for is top line growth, revenue growth and market share and i suspect when you go through the numbers you're going to see amazon is making great progress. >> i'm looking at the operating cash flow which was up 37% this is, michael and stephanie, a company that focuses heavily on this and has basically since day one. free cash flow is 9.7 billion and in the trailing 12 months, you know those numbers show you the power of the platform for amazon, and as michael mentioned they are not necessarily always focused. >> 10 billion rough numbers in 12 months free cash flow is probably the thing that people are going to be most looking at. if i've looked back at a lot of

hypergrowth stocks and if they do seem to trade at a multiple of free cash flow. now in this case it's a very heavy multiple of free cash flow, but, you know, there you go it's about 50 times. >> wow 3.5% lower stephanie, what are you thinking >> the stock is up 15% from last quarter alone so it's had a nice run for sure, and i agree with both of these guys so far. i mean, clearly you pay for top line growth, and i think the biggest benefit for amazon is they have this cloud business, aws, that's helping to fund this top line growth, and as long as they have that combination, i think people will continue to be involved in the name, so, sure, could you see some profit-taking on the headline news i think the guidance is also a little light, but that's a function of them being an investment cycle we know that about the company, so, you know, you can't really make a reaction right away you can't actually trade this. i'm not sure a day trider or a

minute trader, if you will, but i think you have to step back and see what the big picture is. we just don't have it right now. >> deirdre, has the number for amazon web services, deirdre >> guys, this is the number we were locking at because growth in this segment, this very profitable segment for amazon, has been slowing, so it looks like they are coming up short on the operating income number in terms of what was expected analysts expected 1.01 billion in operating income for aws. that's coming in at 916 million, so a little short there. however, revenue for aws, this is a cloud computing unit coming in at 4.1 billion so that's within expectations, right in line with expectations, guys we'll continue to go through this we're looking at north america international as well. we know that amon is investing heavily in international seeing losses to the tune of 274 million in terms of operating losses guys, back over to you. >> deirdre, thank you. michael, is it walmart's fault here >> no. >> remember telling people not

to use amazon's cloud. >> no, i don't think it's walmart's fault but let me comment. i want to follow up on something stephanie shade in terms of the top line growth. you know what we haven't talked about before which i presume amazon is going to mention in their numbers in the report is what are they going to do with whole foods? people are mystified why are you buying a low margin company like whole foods i'm convinced if whole foods literally makes no profit at all, it still helps amazon get to the goals because of the store locations, logistics, drone takeoff, blue apron competition. that's how you look at this company. it's all about the vision and the future jeff bso's is not looking next year he's looking 20 years down the road and always has. >> wait until you start talking about the underwater warehouses. we'll talk about this one. amazon shares still down 3% after this report. intel, meanwhile, moving the other way. josh lipton, how does that look? >> kelly, intel reporting eps of 72% versus expectations of 68

cents. revenue 14.8 billion versus an expectation of 14.4 billion. just looking through the business units, klein computing group, up 12% to 8.2 billion data center group up 9% to 4.4 bill yonel internet of things, 720 million. memory up 58% to 874 million just looking through the outlook here, kelly, q3 they are looking for revenue of 15.7 billion, plus or minus 500 million. gross margins, 63% earnings per share about about 80 cents and for the full-year revenue they raised, they are looking for 61.3 billion, plus or mainus 500 million. earnings per share, 3 bucks, plus or minus 5% kelly, back for you. >> josh, thank you let's move straight to starbucks here those results also out our susan lee has that report. susan? >> let's quickly run through starbucks, same-store sales, the most important metric when it comes to restaurant-type

operators, looking at the fourth straight miss here so global comps, only up 4%. analysts are pricing in 4.9% estimates when it comes to earnings, profit in line with estimates. 55 cents adjusted in the quarter. revenues missing headline numbers, 5.66 billion whereas analysts pencilled in 5.75 billion. now mobile is very -- very important to starbucks, and when it comes to mobile order of pay increasing the quarter from the previous quarter, up to 9% of transactions, and when it comes to payment, up to 30% of transactions, so that is an industry lead right now for starbucks, but asia sales also coming in a little bit light they did announce -- starbucks did announce they are purchasing the other half of their china jv, joint venture they don't own for 1.3 billion which is the largest acquisition for starbucks and as you know, kelly, seems to be the future foreign this company back to you. >> all right thank you, susan the shares are up 5% right now, and we're just looking through

some more of the details don't miss a first on cnbc interview with starbucks ceo kevin johnson tomorrow morning on "squawk on the street." stephanie, share reaction is interesting given first blush at the numbers. >> they certainly lag the other restaurant stocks in the sector, but the key number i need to see, global comps are 4% north america comps are what we're looking for because the whisper numbers were 4%/5%, so i don't know what that number is, but -- >> u.s. comp is 5%. >> 5%. >> and that's going to pull people down a little. >> absolutely. there were people out -- >>er than 3. absolutely went horrible did have ease of comparisons and when people are floating around a 3% comp in north america things would have been very, very bad 5% is good i think the key for this stock though, not this quarter, but in the fall you're going to get guidance for the 2018, and then they really do need to lower that number, the growth rate to 15% from 15/20, and i think once they do that, people will have a

sigh of relief, that, yes, this is a great growth story, but they have ratcheted down the numbers appropriately so, just given the law of large numbers. >> yeah. >> but this one has lagged, and i'm happy to see it. i happen to own it. >> starbucks rewards represents 36% of u.s. sales. >> wow. >> which is kind of ave maizing in terms that have affinity and mobile payments increased to 30% of transactions, so clearly, you know, they are kind of putting forward all these little markers of the technology. >> and getting the technology right. >> michael yosikami, intel reported along with starbucks. both of them moving kind of nicely to the upside are you a share holder >> not of intel or starbucks i want to follow up, again, what was just said about starbucks. starbucks really has two issues going right now. number one, because they really are large -- a law of large number situation right now, there's starbucks everywhere, they are really trying to expand their offerings. they are going more into food and really trying to become more of a destination than a coffee

pickup spot and the china is a big deal for starbucks they need to expand to china obviously they are having challenges there, but i think that's really the future of this company. it's a global company. the u.s., they are going to try to fix it as much has they can, but i think in the end it's all about china. >> well, it's interesting that they actually bought in to jv in china today, so that will be creative down the road. >> exactly. >> not for a bit of time michael, totally agree with you. china is the growth vehicle. 2,800 stores going to 5,000 by 2020. >> right. >> and i think that's really -- the story is going to shift, but until then you need to do a pretty decent comp in north america for them to be okay. >> last word and then you want to move on. >> looking at starbucks, basically the same story as mcdonald's, where has their growth been, in asia that's the same thing with starbucks. >> right shares up 3% we're going to come back to this in just a little bit intel, stephanie, any thoughts

there. this one we've talked about some of the challenges they have had with samsung surpassed in chip revenue, you know, for a quarter not too long ago they are trying to make sure that they are part of the conversation for the new way that they are using chips now for some of these data and graphics, heavy operations. >> yeah. people are certainly focused amd and nvidia and then being the secular winners and intel is being left behind. if that's the big reason why the stock has lagged these two names as well as the market year to date i think the interesting thing is that it was the client computing that actually beat openings expectations, not data center and people want to know data center is going to grow, and that's the reason why there's so many skeptics out there in addition to the competitive threats from other players it's cheap and lagged. i get the bounce i don't think i would chase it. >> it's not so much enthusiasm in terms of this response. stock has been in the mid-30s for three years. >> really without much deviation. >> remember that was the story for microsoft?

>> unfortunately, for intel it was kind of there with microsoft. >> wintel didn't they call it will. >> expedia out with its earnings and susan lee has the numbers. >> okay, kelly, let's take you through the earnings, a miss on the bottom line. 89 cents adjusted in the quarter whereas it looks like analysts had hoped for 93 cents revenues topping estimates, 2.95 billion and when it comes to travel companies who is most important is gross bookings. i could call this pretty much in line, maybe a slight miss. 22.848 billion in the quarter, and it looked like animists were with 22.8 billion. home away, their competitor to airbnb, something they have been marking heavily for last year and revenues increasing, over 30% in the quarter, and it looks like revenues from home away exceeding analyst estimates and they announced a 350 million minority investment in a southeast asian online travel company called travel loca holdings as well so that's some

movement for you for expedia as well. >> shares of nearly 3%, michael. >> down 2% in the regular session. they are gaining that back and a little bit more. stock was up on a flag pole before today so i'm surprised that it's not, you know, sell news and reaction, at least right now. i'm going to take a little bit of credit. some of the beat on the home away came out of my product. >> i bet they are happy to have that product michael yosikami, it's amazing how quickly airbnb, my dad is traveling on the road for business meetings, rather use airbnb, get a better experience. >> this is a huge growth opportunity. if you look at what expedia is all about. it's essentially a travel portal, and any time they can get you in their website getting airfare, getting cars and now home awar from home, an airbnb sort of product, that's going to be a big, big deal for expedia, and i think that's probably going to be a driver for growth going forward. >> do you think they will have any problems, michael, with that being sort of the second banana

to airbnb, and can they kind of hang in there and benefit from the fact that the hosystem is expanding? >> i think there's plenty of profit to go around and plenty of market share to go around it's no different really than the computer industry. i mean, samsung is going to sell a lot of phones, so is apple going to sell a lot of phones. i think the entire space is expanding. i think it's kind of the uberization of hotels. i mean, it's really basically what the trend is going to be in terms of having these basically dead properties that are empty that people are going to start using, so i -- >> yeah. >> i think in the end it's simply going to be a profit center for them, and expect them to continue to focus that in future earnings. >> expedia up 3% guidance from starbucks. go ahead. >> kelly, i don't have the guidance that will be announced on the earnings call at the top of the hour, but we do have cautious comments coming from the cfo probably why the stock has now

kind of retrenched a bit from the 5% rally that we go the initially. so scott mah, starbucks' cfo saying nonetheless despite posting record performances in this current quarter q3 and extending our lead in the industry overall, he said the combination of trends in the quarter, ongoing macro pressures impacting the retail and restaurant sectors have them more cautious they say going into the fourth quarter and that's why you're looking at the stock now. only up 1% in the after hours. back to you. >> so, let me just make sure i'm following this, susan. they are not going to issue guidance, unusualal guidance until the call but they are talking about how they see a macro environment. >> starbucks is -- is cautious going into the fourth quarter because of the macro environment that they are in hence pressuring margins when it comes to restaurants and retail and that's why i think starbucks is taking a more cautious approach. >> all right there's the shares, in fact, losing almost all of their

gains. they were up 5% and now they are half had a percent higher. >> starbucks has at times fessed up to the idea that they are susceptible to things like mall traffic and people are up and out of there they do suffer if people aren't walking around the mall. so that might be one element of it i don't think the investors ever loved to hear a great growth stock prices at a premium and start blaming the macro head winds. it's reality. >> i give them credit going back a couple of years when it comes to traffic and there are 5% comps in the u.s. and 4% ticket and 1% transactions so they are able to kind of increase the average selling price. stephanie, i don't know if they would have a china situation where the number is up 7 and transactions up 5% indicating a little more volume in the store. >> let's wait until they talk on the conference call. there's also some commentary that they want to go through the growth strategy and what their focuses are are. i mean, the big issue last quarter was teavano, are they going to close some stores

there? clearly the commentary is not great, but i think the report itself was very good and we'll see where the numbers shake out. >> starbucks tipping lower by a quarter percent. we'll continue to follow t.mattel earnings are out and courtney reagan has that report. >> hi there, kelly adjusted earnings per share, a loss of 14 cents, 5 cents below what analysts were looking for on lighter than expected revenue. shares are down about 2% here after hours. sales of barbie down 5% worldwide. fisher-price down 3% and american girl down 6%, and then when they break out the segments, you actually see the weakest revenue numbers for fisher-price versus consensus, so earlier on the session shares were higher on mattel. initially unchange and now we're lower by 2.3% after hours. kell >> thanks, courtney. there's so many different divisions here looking through fisher-price and american girl, and construction arts and crafts it makes me want to, you know, just if do something fun right now. >> go to pre-school. >> basically. >> stock really at multi-year

lows it's a tough secular story, and they are fighting the forces right now. hasbro had a disappointment, i think a few days ago maybe what mattel needs is that barbie movie you're looking forward to. >> no, don't even. anne hathaway in some weird -- stephanie. >> just have some old-school toys, period right? it's not really where people are and kids are playing not that they are not playing. it's not accelerating, and they have had a lot of issues, inventory issues, management change, cfo is going to be gone so i think this is in a complete show-me mode a lot of value stocks out there. this is a tough one. >> did slash the dividend to sort of conserve cash. >> yeah. >> also you have to point out for a company like mattel, second quarter is not the most crucial. really it's a fourth quarter kind of make or break. >> arts and crafts are always in season. >> michael yosikami, what were you going to say >> what i was going to say is they actually do need the barbie movie, i'm not kidding they actually need some sort of

intellectual property that they can get out there. i mean, if you look at what marvel has done, they need something like that. now, i don't know how you make movies out of fisher-price, but somehow they will have to get out there and be able to get scale in terms of what they do you just can't sell toys. >> american girl seems like a no-brainer, can have an entire franchise. >> tv shows and made a movie out of lego, can make one out of fisher-price. >> i agree you. >> "toy story," let's remember. >> mattel shares are down 3% electronic arts with aditi roy how is that looking? >> we can tell you it's a beat on the top line. the revenues are coming in at 775 million beating estimates of 768.5 million. on the eps, on the bottom line, $2.06 a share. we should mention that it's hard to compare that with any estimates. it's unclear how that compares with any estimates because the company is reporting what we call a gap number versus estimates which are non-gap so

it's kind of -- kind of like apples and orange so we're trying to pure through the numbers. digital net sales coming in at 3.14 billion representing an increase of 23% year over year that number is very critical and something analysts are watching because as more and more customers are switching over to digital downloads they are getting the games through the packaged goods helping to improve the cuts of the company's margins as well. another number that we'll looking at is -- is the gross margins, okay. one possible headwind to look out for on the call is the release of the andromeda games we'll be looking for any color on that. the stock, by the way, is down at the moment. >> michael yosikami, the final word here. >> my final word is digital sales is what it's all about my son who is 20 years old, he doesn't go to game stop and buy video games, goes online i don't know how it does it and

goes onload and the things download into his wii or xbox and it's absolutely correct. more digital sales means more margins. that's what's key for this company. >> all right the stock a little bit lower after the result again, looking forward to the conference calls to see what color they can give us and starbucks is lower by 1% we'll see you for more on that in a moment. thank you stephanie and michael for the time being. >> thanks, kell. >> amazon trading lower 2.5% after reporting earnings and still hanging on to the $1,000 had a share mark, easily, 1,021. two shareholders weigh in on the results and we're tracking starbucks which turned negative and intel which was positive after its report after the bell. a deeper dive into those results coming up. we want to hear from you contact the show via twitter, facebook or send us an e-mail closingbell@nbcuni.com

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welcome back first solar's earnings are out now. seema mody has that report for us. >> we're looking at a strong report from first solar, adjusted on revenue of 64 million helping by a boost in

shipments. quarterly bookings of 1.5 gigawatt and new year-to-date bookings up 2.1 gig watts. market readiness for series 6 is the biggest priority right now they also raised their 2017 numbers. higher earnings guidance partly reflected the send quarter tax benefit that they got. the stock is halted right now. resumed trading at 4:30 p.m. eastern. one of the questions the president is facing is solar policy of president trump. no concrete answer and that's been an overhang for the past couple of months but the stock is still up over 30% year to date. >> kelly if they put solar panels on wall that's going to be a boon. see how first solar does whenever it opens. seema, pretty big top and bottom beat. >> up 50% in the last couple of monthsch the market was sniffing out that this pounce was warranted. also, still 15% of the flow is short so it's one of the jumpy battleground stocks. >> we'll see which way and how much it jumps in a couple of

minutes. meanwhile, amazon reported its quarterly results and stock moving lower by 4% initially as we check back in on it now a little bit off of that joining us is robert lewina along with tripp miller. guys, thanks for being here. robert, are you a shareholder of amazon >> i am, you know, personal shareholder and -- and our clients on the stocks, both my and our client's largest position has been that way for quite a number of years. >> are you prepared to look through the results? are you disappointed by them at all, or do you see good things in the report? >> well, i haven't had time to fully digest, you know, the entire report, but looking at the top line it looks like they beat on top line overall and looking at cloud which i know a lot of analysts were eyeing, they beat there as well. nothing that would get me too worried. in terms of eps you have to see what set that off. this is a company that's investing in many different areas. there's many different categories for growth, so there's nothing that i see short term that would impact our

long-term thesis for owning the stock. >> tripp, what about you i understand the same deal you're an investor and so is the firm what are your thoughts >> we feel that the report, while a little disappointing in short run to the street, we see things that are really very bullish for the long term. we like the investments that they are making in different business lines we like the top line growth and their core retail segment, aws looks fairly strong and let's face it. got a business that's growing operating free cash flow at 32% so that's not such a bad thing which leads to a lot of long-term optionality for the business going forward to go into other product lines and reinvest in their core businesses >> tripp, nobody i think would deny kind of the long-term story as it's playing out. maybe that's still very early there. they are guiding down a little bit in terms of operating income for the coming quarter, and anything that you say about the long-term promise of amazon, i don't know that it would be mispriced at 1,100 a share or $900 a share, right? so how do you get today on a

tactical basis trying to figure out whether in fact this stock has already priced in a little too much of that very long-term story? >> sure. the stock has been on quite a tear over the last year, and even longer obviously, and we're glad that we bought the stock at lower prices we wouldn't necessarily be a buyer of the stock today at these prices we think for long-term investors it's quite to buy great business when it trades off 20%, 30% so we may get that tonight on the earnings disappointment today. the market may, you know, throw us a fat pitch and we can buy more at a lower price. as you point out, valuations gotten a bit stretched and to us it's getting close to fairly value, at least before this earnings report today. >> robert, if you want to weigh in on that, i'm also wondering what your expectations are for whole foods if that acquisition goes through. >> yeah. that's interesting it's an $800 billion market that, you know, no one outside of walmart has about 15% of the market shares, really, you know, starting to dominate i think that's a great

acquisition for amazon but to the other guest's point, the stock is up 38%, after hours brought it down 36%, so i don't know that if i didn't only position i would necessarily be rushing in here. look, i mean, this is a stock that we're not in for the next 6% to 8% move and in for a double or triple so if you're a long-term shareholder or long-term interested in owning the stock, non-that there's ever going to be a great time and in terms of buying it at a 20% to 30% discount from these prices, i don't see that happening anytime soon look, i mean, there's so many areas of expansion, whether it's third-party vendor, a year ago companies like nike would say they would never sell through amazon they are now selling through them if you look at international expansion, india, for example, everyone said they would never surpass flip cart, they are doing that on the e-commerce platform netflix was supposed to dominate in the video market and amazon entered with a far superior strategy. >> beating us over the head with it, robert. >> got to own it, kelly.

>> don't tell me we don't own, we don't own. >> that's all true, though i will say it's been a long time since amazon gave you a double-digit pullback and you used to get one every year. >> true. it would be down 20%, 40% regularly. >> it's overdue or a new era when basically you have more buy-in to the long-term story. >> fair enough robert luna, tripp miller, thank you both. >> thanks, kelly. first solar shares are reopening after a pretty sizable beat on the top and bottom line in the earnings and raising the full-year guidance shares up 12.5% right now. seemed like that might be a big number they said some of that was helped by some tax breaks in the secretary quarter, nevertheless, a pretty good outlook you can see investors reacting quarterly. time for you're nbc news update with sue herera. hi, sue. >> hi, kelly attorney general jeff sessions appearing on fox was asked if he thought president trump's criticism of him was fair? he responded that it was hurtful but that the president was a strong leader who wants all of

us to do our jobs and that is what he intends to do. volkswagen says u.s. environmental regulators have agreed to plan for the german automaker to fix or buy back about half of the diesel cars involved in its emissions cheating scandal about 326,000 vw cars were sold between 2009 and 2014, the first generation of the clean diesel cars a salmonella outbreak linked to papayas has spread to 12 states the cdc and the fda have issued warnings about certain branded fruits 47 cases of salmonella illness have been reported nationwide. one person has died and 12 more hospitalized and a baltimore ravens lineman retiring today at age of 26 due to concerns over long-term brain damage john erschel told the team about his decision before the team's first training camp practice you're up to date. thanks the news update this hour kelly, back to you. >> i wonder if he saw that report this week, sue.

what did they say 110 of 111 players had signs of cte. >> exactly. >> almost 100% of college and pro players that they studied. >> yeah, and they can't exactly isolate what the cause maybe, but if i were an nfl player probably make me think twice. >> think it's makinging a lot of people think twice, kell you know, it's not the first player that has decided to retire early there have been three or four high-profile players in the last two years, so i think we may see more of it, too. >> that's true sue, thank you. >> you got it. sue herera we have more earnings analysis on tap. chips and lates are on the menu. going deep on the numbers from intel and starbucks right after this i was hoping for potato chips. the legal marijuana industry is expected to be an $11 billion one in three years that has the longtime bible of the cannabis industry looking to score on the stock market. details ahead in today's fast take [ male announcer ] eligible for medicare?

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stores in this earnings they say they are going to close all 379 teavana retail stores in malls or even these tea bars, so that's probably hurting the stock right now. back to you. >> i think it's teavana, you think? >> i think it's teavana. >> are you a coffee or tea drinker? >> teavana is that city by san diego in mexico. >> tijuana this is a problem, stephanie >> it is teavana. >> it's not going to matter anymore, by the way. >> no, it's going away and that's a good thing. i think this might being the reason why maybe their commentary was cautious about the beginning of the fourth quarter. we'll have to see. but i would look through the numbers and the china numbers are really good. i mean, the 7% comp, traffic ticket, margins really goodch the rest of asia -- >> what happened in the rest is japan, is that a big factor in there >> the rest of asia pack,ing a little bit softer. more detail.

u.s. seems it's pretty much in line to get rid of teavana and then that story gets cleaner and europe was pretty good little weaker margins. net-net, the stock up a little bit today. maybe it gives it back i'd buy it. >> will slava is with us from stevens, inge. a $50 million price target shares down 2%, so, you know, kind of weigh for us the closure of teavana alongside their u.s., numbers looked okay. the china one looked much better what's your takeaway here? >> i think it was fairly mixed the positives were the u.s. comp and they were at the high end of expectations but the overhang is the commentary that was made in the release about caution going into the back half of the fiscal year so they could talk us off the mid-single digit comp where they want to be and the next year's guidance and next year's estimates are for mid

single-digit comps to continue china was really strong and what's going hon in japan and other areas in the asia-pacific region that's a question hark but eps in line. i think fairly mixed across the board. teavana might be cheered as closed getting away from malls right now. people will be fine with. >> except for mike's daughter. by the way, the china asia number was supposed to be up 4.3%, only up 1% will, we'll let you go starbuck shares down 2.25% let's switch fweers to intel and. the shares are up about 1% right now so they have come a little bit off their highs, but what do you think about the quarter? >> it looks like a breakout quarter. intel has disappointed for so many periods in a row now. this one looks pretty clean. they beat on basically every metric for g-2-and they as they say raised expectations for both the third quarter and the full year so -- so the results look pretty positive. >> what about these concerns

well, let's pick up a couple of things the data center piece which they pointed out. not exactly the driver this quarter. is that okay by you, or did that need to be stronger? >> that's okay data center has actually been missing expectations for several quarters this is a first quarter where a data center came in line if you look on it on a year on year basis and the business accelerated and then importantly the margins on that business improved seven, eight points, quarter over quarter, so the data center results, i look at that and i think the market is probably looking at it and saying, you know, what a relief. >> steph, you don't look totally convinced. >> if i'm going to own intel i want data center to do well. it's fine that it's in line but this was a company thinking a couple quarters ago it would grow 10% to 15% so to grow 9% not bad. the story isn't exactly playing out way that i thought it would, and -- and i'm not sure what i want to pay for pc parts of the company, and that was where it

beat so, you know, i've got a lot of other tech stocks that i want to buy. >> what would you add to that on those concerns >> well, i would say her points are valid, about a lot of that is reflected in the stock if you look at intel relative to the market it's trading at a five-year low at 12 times earnings. >> wow. >> it's about a 30% discount to the s&p 500. you know, three years ago it was trading at a market multiple, so at 30% discount it's pretty punitive, and i think it reflect the fact that businesses like data center, those businesses have decelerated >> okay. as we earnings inned, intel shares up 1% off their 4% pop after hours. thank you. and stephanie thank you. stephanie link joining us. >> from one chip-maker to the next samsung is poised to beat apple's quarterly profits. all of those details coming up in fast take right after this.

have decelerated all of those details coming up ,

welcome back here's a look, first of all, how we finished today on wall street an odd session we started out strong and took a tip lower in the back half, especially in the growth part. nasdaq shedding two-thirds of 1% big-tech names weighing on the dow, though verizon had a big day and the dow closed higher by 85 points, just shy of 22,800, a record close the other three averages were lower. checking on some of the names moving after hours amazon still down about 2.5% starbucks has turned lower, as we mentioned by 2% expedia hanging on to a 3.5% gain and intel up 1.5% off its initial pop and first solar up 12.5% and over to seema for another earnings alert.

>> boston beer reporting better than expected earnings and revenue, $2.35 a share, well above analyst estimates. revenue at 247.9 million now the chairman and founder of the company saying that we remain challenged by the general softening of the craft beer and cider categories and a more competitive retail environment following closely here on cnbc as well. the results helping the stock move higher in extended trade up more than 12%. kelly? >> all right thank you, so many a. i mean, michael, first we have bud up 5% on earnings this morning and sam is up 12. >> kind of a difference in the industry sam down 5% last 12 months. >> wow. >> clearly people thought they were in a tough spot craft, pure graft is very small, sam somewhere in the middle, not huge, but at least a little bit encouraging and still talking about a tough environment for the overall business.

>> i wonder how inquisitive sam has been but when i found out that anheuser-busch bought a company in lexington, kentucky, they come and snapped them all up. >> that's also interesting where boston beer is in the middle always seen as a potential target down the road and they they haven't necessarily been as aggressive rolling up the business. >> and 13% pop for sam after hours. now it's time for today's fast take the first one up is samsung for posting some pretty impressive numbers. its profit was up 90% year on year and from what i can tell they didn't surpass apple's quart they are quarter this may still be coming but their business is much chippier because of their stock sales. >> just a reminder of the enormous scale of samsung as a company. essentially in so many different areas and especially in the kind of inputs to all these technology prices, so it's sort hazards of looking at that familiar consumer product and

thinking -- >> while being in the middle of a political scandal in south korea and launching this biotech company. next, google is launching google play music with youtube red no one musical offering this is probably overdue, don't you think? >> a lot of people are probably a little bit confused as to where both of those things sit you know, the world people needs one music service, a little bit of a crowded tangled area. >> and it's not clear to me and i think we have google play, and i think you get access -- i don't even know what youtube red is is that the ad-free. >> this is the problem. >> everything you have to compare to something that already exists is it a spotify, a pandora, an itunes >> and i told you we're on amazon music now that's another capitulation. next, it's a sign of the times "the wall street journal" notes that it's become, quote, surprisingly easy for companies to cut their borrowing rates why the would lenders let a company go from paying them 5.5%

over libor to just 3.5%? >> the borrowers have all the power because the money is now so heavily flowing into the hands of those would-be creditors, so basically everybody wants to buy leveraged loans, floating rate loans and everyone wants to buy junk bonds and showing a high yield bond issuance the toughness of the terms essentially, so covenant light loans really have no strings attached that's been a huge increasing area of the market so basically the -- the aggregate riskiness of low-grade credit markets, loans and bonds, the risk in this is going up. >> yeah. >> i think there's so much money chasing the yield. >> caveat emptor, caveat lender. >> at&t, $22 billion in bonds today. >> 22 billion. >> three times oversubscribed. >> i would love to know how much they popped once they were issued, how much that spread came down from what they talked about. >> final little one bucking the

trend. high times, it's going public. it's the marijuana enthusiast magazine, and it has more than a quarter million print and digital subscribers so an ipo here, michael, tells you what? >> first of a back door ipo. they are going they're going to become publicly owned by merging in with this shell company. probably understandable because i think as a stand alone business, the publishing business with the marijuana people. >> do you think they want capital because it's a good time to expand. >> i have a feeling that it's not so much wanting capital as it is getting liquidity in an environment that business people look at as a growth business. >> you open a magazine and there's a story about this hot new marijuana company. >> a lot of people are looking at it, the whole canibas market well beyond recreational. >> gummies

it's been 13 years since luxury car enthusiasts got a new version of an old favorite all of those details. >> it's the oldest name plate in auto history we're going to show you the 's tl u ercar,elyowhe it selling and more importantly who is buying it coming up after the break. so yo? i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that? even way out here? yes. even way out here. thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff.

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there hasn't been a new model of it in 13 years. robert frank is here with a new look at the first rolls royce phantom. >> this is a pretty amazing car. minutes ago rolls royce unveiled the first new version of the phantom in years it's a 2.5 ton land yacht that gives you the famed magic carpet ride with a tougher front end and a bit more advanced technology instead of a dashboard you get a gallery of electronic wizardry and flat screens you can add your own humidor and champagne cooler and customized star constellation in the ceiling. the starting price around $450,000

the phantom along with the companies smaller moldel is critical to the parent company bwm's plan to retain that magic in a market increasingly crowded with competitors and younger buyers that want smaller, sleeker and more stealthy rides. >> we have achieved to bring it significantly down by nearly ten years from 56 average age down to 45 now and that's due to quite a lot of factors number one is we are playing quite a new game when it comes to market but also the kind of products that we are offering. >> all of that stuff is working. last year rolls had the second best sales ever. the u.s. is their number one market although china is also gaining fast chinese buyers like to be driven

in the back of their phantoms. u.s. drivers like the buyers seat no word yet on the fuel consumption of the car if you have to ask you probably don't want the rolls-royce. >> i don't know what a humidor is. >> where you put your cigars. >> well, that's why. i had no idea. >> it's going to be gasoline engine freebie 2040 as the uchlu.k. has said >> there is talk about an electric rolls at some point. >> there has to be. >> but this car is deliberately lush, luxurious and in the face of the more modest that we're seeing and it's selling well particularly overseas. i was in the private gallery there's a lot of very rich buyers that already placed orders for this. it looks like an anomaly in today's world but a lot of people are loving it. >> so many places i could go star bucks and amazons conference calls are coming up

in a few minutes the key factors to listen for and then on fast money the man behind that report today that many were saying took down the market what did he have to say that has ers worried? find out at 5:00 p.m. eastern. we, the people, are tired of being surprised with extra monthly fees. we want hd. and every box and dvr. all included. because we don't like surprises. yeah. like changing up the celebrity at the end to someone more handsome. and talented. really. and british.

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there it is by 2.6%. intel higher for solar up 10%. let's mention the earnings tomorrow exxon is going to be an interesting one. >> another dow stock you'll have to see it's effect on the index we'll be lucky to get through this earnings season with the indexes holding their ground the way they are

you see the after hours and in general a tilt has been to the down side. yet as a whole the market has held together. >> and merk had a good day on an upgrade. b biotech and energy. >> we're getting away from the cyclicals a little bit. >> it's going to be a busy day fast money begins right now. >> fast money does start right now live from the nasdaq market cite overlooking new york's time square our traders on the desk are tim seymour, steve, dan nathan and guy adami. on fast the man that moves markets strikes again. marko kolanovic out with a new note that spooked investors and sent stocks reeling. what is keeping him up at night. plus transports tanking down 3%. having the worst day in more than a year. could it be a warning sign for the market the traders will weigh in and we have a huge night of es.