good morning senate republicans fail to repeal obamacare in a dramatic late-night vote on capitol hill. we're live in d.c. with the fallout. u.s. futures reacting to the news they are pointing to a lower open on wall street. europe and asian trade is soft as well. and a mega miss for amazon sending shares tumbling. we'll get a top analyst take on those numbers ahead. it's friday, july 28, 2017, "worldwide exchange" begins right now. ♪ >> good morning.

very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. sara eisen will join us momentarily. we begin with the late breaking news out of washington senate republicans failing to repeal obamacare in a dramatic late-night vote on capitol hill. three republican senators broke ranks with the party and voted against the repeal the gop could only afford to lose two votes mitch mcconnell conceding defeat after the bill failed. >> so, yes, this is a disappointment a disappointment indeed. our friends over in the house, we thank them as well. i regret our efforts were simply not enough this time >> we also heard from president trump. he tweeted three republicans and 48 democrats let the american people down. as i said from the beginning, let obamacare implode then deal. watch. let's get reaction from cnbc's

john harwood good morning to you. this happening hours ago gauge for us how big a surprise the defeat was give than this was such a reduced repeal bill >> very big surprise just a couple days ago, john mccain had returned from arizona where he had surgery after being diagnosed with brain cancer, and gave a speech on the floor in which he said he wanted to return to regular order, do a bipartisan deal with democrats, but then voted to take up this legislation. he could have stopped it then by voting no. it passed by one vote with vice president pence breaking the tie. so i think then yesterday evening there was a press conference where john mccain joined two other senators and said they would only vote for this bill, the so-called skinny repeal if they were assured it would not become law it's an unusual thing to hear a

senator say. the other two senators decided that they had enough assurance from the house that they -- that it would not become law and they would vote for it john mccain held out to the end. extended his arm, put his thumb down and said no there were gasps in the gallery. it was something we have never seen and mitch mcconnell who has a reputation as a master tactician, just received a very difficult setback. so did president trump we'll see where they go from here this process has seemed to have been derailed before and come back to life this certainly feels like it is -- the death nail for this year and this congress >> as you said, so much rested there on senator mccain who has had a crazy couple of weeks. is this personal payback for him towards president trump who has criticized him in the past

>> you know, it's possible that plays a role in it john mccain was asked as he left the chamber why did he vote the way you did? he said i thought it was the right thing to do. i take john mccain at his word for that you know, john mccain is as tough a human being as there is. we saw that in how he reacted and moved on from being a prisoner of war in vietnam this was an occasion where true to that reputation for toughness he stood up against pressures within his party he joined two women senators, susan collins and lisa murkowski who had gotten a lot of heat from colleagues. lisa murkowski had personally been personally called and told

about displeasure with her so it was a remarkable coalition of those three republicans and all democrats stopping it. whatever the woven together motivations were, john mccain made a big, big difference in this vote. >> john, so you say healthcare is dead, particularly for this congress at least. what about the rest of the trump agenda and what is achievable before the august recess >> well, nothing of significance is achievable before the august recess the question is whether tax reform can get off the ground. the fact that republicans could not agree on a path forward on healthcare is a negative sign for their ability to do the same on tax reform. so is the statement put out yesterday by the so-called big six, the two members of the administration and house and senate negotiators, they released a statement about tax

reform that was a step backward. they said the border adjustment tax, the key to the house's comprehensive plan for individual and corporate tax reform, is not going to be part of it. that was the hard part the revenue raising part that allowed them to get the rates down without that in the bill, that indicates that they're not able to make the difficult decisions to make tax reform happen. they still could cut taxes, but tax reform becomes more difficult if you're looking at something comprehensive that changes the system in a deep way. >> john, thank you very much for that context john harwood for us in washington let's check on the market reaction to the news futures board is pointing lower. albeit not too significantly it comes on a day when we saw gains for the dow, slight declines for the s&p and the nasdaq the story of yesterday was that tech selloff in the middle of the day. volumes very light in the morning. picked up significantly in the afternoon to be the heaviest volume day of august august volumes low any way

this morning, the nasdaq markedly lower again, down 60 points very much leading the move lower. more tech selloff related than politics because the dow and the s&p only slightly lower, 34 points for the dow. s&p down about 8 points. the dollar board for you in terms of reaction, we did see the dollar yesterday soften -- gain about a quarter percent before the politics news came out. the dollar very much weaker but not significantly. the euro and the pound higher by 0.3. the dollar flat against the yen. we had various political stories out of japan this morning in terms of the defense minister resigning, questions of whether there will have to be a full cabinet reshuffling for shinzo abe. what does that do to equities. also data out of japan this morning. the story was one of mixed data. employment good, retail sales bad. a soft day for asian markets the nikkei down 0.6%, career

down i2% european trade, coming into the session, flat for the week a big selloff as you can see, various earnings reports coming in and reaction to the news overnight in washington, perhaps playing a bit. generally speaking france down 1.4% nearly 1% declines across most markets. ten-year treasury note ticked up above 2.3% oil prices are up 7%, week to date coming into today's session, just pausing today. wti essentially flat 48.9 the price of that gold prices just to round things off were up about a percent yesterday. just stepping back today, 1259 the price of gold. let's get more reaction to the failed obama care repeal joining us on the news line, dennis gartman we have pronounced softness in

european trade but not on the futures market nasdaq down some what, but it was down similarly yesterday any way. are you surprised we're not seeing a bigger reaction in the dollar or the dow and s&p to the news of this failed vote >> good morning. actually let's understand that yesterday afternoon the dow was up sharply, the nasdaq was down sharply, we ollcall that a game painting the tape. the public only understands the dow. when the public talks about the stock market, it asks what the dow has done when you want to hide what's going on underneath the market, you make sure the dow looks strong and the nasdaq weak i think it's the weakness in the nasdaq that's far more important. you had what the technicians refer to as an outside reversal day yesterday, which is usually technically important, all-time new high a plunge lower, a close below the previous day's lows. that i find to be very

important. it's disturbing to see what has happened overnight in the senate it's terribly embarrassing for the country. i don't think that can be anything other than deleterious to share prices. i'm surprised that the dollar is holding as well as it has. perhaps it's just that there is so much weakness in the european stock markets which has led the stock markets down, maybe money is finding its way towards safer harbors. that's perhaps an explanation for the dollar's relative strength >> we're looking at an intraday chart of the nasdaq, which we will bring up again, which shows a pronounced move in the futures market albeit low volumes, when the decision came out. so clearly this has had an effected on the stock market might it have a pronounced effect address the ds the day c? >> i think it shall. i'm short the stock market and will probably continue to do so. as i say in my news letter f we're still lower by 11:00 today, i'll add to that. i think something terribly disturbing has occurred

technically in the market and the psychology because of what happened overnight in the senate will be terribly disturbing. if we're still lower by 11:00 today, i will sell more short. >> to clarify, do you think the dow plays catch up to the down side today to the nasdaq or the nasdaq continues to lead the charge lower >> i think the nasdaq will continue to lead the charge lower, as the nasdaq led to the charge to the upside, there's so much more to the down side to be gotten it would not surprise me to see the nasdaq down 50, 60 points and the dow unchanged that would not shock me the tape shall continue to be painted. on balance, this will be a weak stock market >> dennis, thanks for joining us we have a ton of earnings movers to get to a full round up of that coming. and more on that breaking news out of washington senate republicans failing to repealbaca omare the latest when "worldwide

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nasdaq down 60 points. in and around 0.6% the intraday chart of that you can see that reaction around 1:00 a.m. when the bill did fail a sharp move to the down side. that comes after the nasdaq was soft any way had a big intraday selloff yesterday afternoon. to the top corporate stories, shares of amazon are down big after a huge miss last quarter amazon earned 40 cents a share, $1.02 below pore caforecasts. rising expenses are to blame as the company poured new money into warehouses, data and alexa. joining us on the cnbc news line, victor anthony from agis capital. good morning to you, victor. clearly this is a story we've heard before from amazon, they're investing in the future

and they care more about the long-term earnings as opposed to today's eps. why have we had such a negative reaction in the share price? >> if you look at the top line, revenue growth accelerated, top growth accelerated, gross margin expanded and gross profit expanded aws numbers are solid. prime numbers are solid. advertising growth was solid they are competing with facebooks and googles. guidance for the third quarter were above the high end. all of that came at a significant cost operating margins and operating expense growth accelerated faster than revenue growth leading to operating margin compression in the quarter as well guidance suggested that further operating compression is happening for the third quarter.

they missed my estimate of 1.42, a big miss on the bottom line. they're investing in growth opportunities. i think investors ultimately will give them a pass on this operative margin compression >> they're not giving a pass overnight. down 2.5%, but that comes off various record highs that the stock has hit. what is the biggest positive in the numbers? retail part of the business encouraging? >> the retail part of the business is strong growth accelerated it suggests amazon continues to dominate online commerce it continues to take shares from traditional retailers. a lot of those retailers are struggling amazon is leaving dead bodies in the way of this traditional retailer you can see that clearly the secular shift of retail moving online is benefiting amazon significantly. what about amazon web services we saw microsoft deliver fantastic results for their cloud computing business during the latest set of numbers. is microsoft fighting back

is amazon losing share there >> not only microsoft, but go g google is also competing as you can see, 42% fx growth, that just decelerated 1 point from the first quarter we were expecting greater level of deceleration given the competitive landscape. the numbers are above estimates. so they continue to fight. they continue to take market share. and i think that business is in good shape >> victor -- >> margins will decompress >> update us with your price target and call on the stock >> i'm at a buy. i've been at a buy on amazon for over five years now. my price target is 1,069 still working through some of the numbers, but i think in my view, i think amazon is a stock you want to own, at least for the next decade. that's how much conviction i have in the business model and amazon's ability to continue to

take market share and retail, aws and benefit not just in the u.s. but outside of the u.s. that's a big market for them they'll dominate that market over the next five years >> thank you very much for joining us victor and think of aegis capital. earlier this week, jeff bezos became the richest man in the world. i wonder if that 2.5% decline in stock price knocks him off the top. we're following a developing story on wells fargo the company says it will compensate around 570,000 car loan customers who were forced into buying auto insurance they did not need the "new york times" says the unnecessary insurance pushed 274,000 customers into delinquency and resulted in wrongful vehicle repossessions total compensation coasts will be $80 million. in a statement wells fargo said starting next month it will reach out to impacted customers with letters and refund checks

this story more one of failure internally at the bank than intentionally doing cross-selling. not something they would like. sticking with banks, lots of european banks out with earnings barclays reported a net loss of 1$1.6 billion for the first hal of the year. the bank was hit by the fall in sterling, a charge from the misselling of payment protection insurance scandal and a loss from the sale of its africa business despite the loss, barclays ceo jes staley telling cnbc earlier today he feels good about the future >> we're now a clean bank. the restructuring is over. we generated a return on tangibilitan tangible equity in the bank of 7.2% our profits before tax, year over year, were up about 78% we feel good about how the bank is positioned.

our strategy of being a transatlantic, consumer corporate bank is free of the legacy issues. >> barclays shares were up initially. the trading performance was relatively encouraging equities better than the u.s. banks fixed income, in line with the u.s. banks, down but some notes coming out ubs note on earnings pointing to weak investment bank revenues. so the stock slipping a quarter percent. ubs reporting a 14% rise in second squauquarter profit the bank's ceo says he is still cautious and the company is suffering from low volatility. ubs stock down 3.6%. bmp paribas reporting a better than expected second quarter profit the bank was helped by strong results from its corporate and investment banking division. credit suisse reporting a 78% rise in second quarter profits. the swiss bank benefited from a

strong inflow of new money to the wealth management business shares of adidas are rallying following upbeat second quarter earnings yesterday they also raised full-year guidance that news came out midday or so yesterday. shares reacting to it today in german trade up about 9% in trade at the moment in europe still to come, more big earnings movers including starbucks and intel. first as we head to break, today's national weather forecast from nbc's bill karins. good friday morning to you we will be watching heavy rain developing during the day today and tonight in the overnight hours in the mid-atlantic region flash flood watches are up and two to four inches of rain are expected from philadelphia to norfolk. let me take you through the weekend forecast hot in irias of texas.

gorgeous weather in the great lakes. not bad in new england saturday, not good beach weather. that storm system still lingering on the coast around virginia all the way through new jersey thunderstorms in florida still very hot all weekend and very dry throughout much of the intermountain west boise on sunday, 100 degrees much of the country has a nice sunday especially the mid-atlantic nice 81 and sunny on sdauny. that's your business travel forecast more "worldwide exchange" when we come back

welcome back to "worldwide exchange." if you're just waking up, big news out of washington the senate rejecting a bill to repeal obamacare there's the reaction in futures markets. down across the board. the dow down about 37 points it hit a record close. the one that's declining sharply is the nasdaq, down 0.6% that comes off a day where it had a big turnaround midday yesterday. tech stocks selling off. you can see that turnaround yesterday on that chart. after the close, as you can see, still a negative open expected now the nasdaq 100 that we're looking at is down 0.9%. a bit more than the nasdaq proper the repeal failure last night not accentuating the move but tech stocks under pressure over the last day or two. other stocks to watch, starbucks slipping in the premarket after posting weaker than expect the quarterly results.

the company announcing it's closing 379 of its tijuana stores the stock down 6%. more about starbucks when kevin johnson joins squawk on the street today at 9:15. intel popping on an earnings beat the company upped its revenue forecast on strength in its main ta personal computer business and continued growth in artificial intelligence. up about a percent at the moment it jumped more than that yesterday after earnings electronics arts trading lower after disappointing second quarter guidance the company had strong demand for batter field 1 wand sims video games. coming up, live in washington with the latest on healthcare we'll talk to a retail expert on amazon's big earnings miss and the failed border adjustment tax. and we're setting up for another brig day on wall street. mial earnings, consumer gdp is

cong and i have a feeling i may be joined by the one and only sara eisen. "worldwide exchange" coming back in a few minutes

breaking overnight, the latest attempt to repeal obamacare has failed the latest straight ahead. amazon stuns the street. the e-commerce giant misses earnings expectations by a mile. we'll tell you what went wrong. and artist in chief? you won't believe how much this president trump original just sold for it's friday, july 28, 2017,

you're watching "worldwide exchange" on cnbc. good morning welcome back to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning to you from me as well sara, good to have you with us >> thank you accident on the gw bridge, got here late. >> let's check in on the global markets in just a minute but let's start with that late breaking news out of washington, senate republicans did fail to repeal obamacare in a dramatic late-night vote on capitol hill. three republican senators breaking ranks with the party and voting against the repeal. the gop could only afford to lose two votes senate majority leader mitch mcconnell conceding defeat after the bill failed. >> yes, this is a disappointment a disappointment indeed. our friends over in the house, we thank them as well. i regret our efforts were simply not enough this time

we also heard from president trump. he tweeted three republicans and 48 democrats let the american people down. as i said from the beginning, let obama care implode and then deal watch. let's get reaction to this from john harwood john, good morning to you. again, just recap for us the level of surprise in your mind and in washington when this bill did, in fact, fail >> well, it appeared going deep into the night that this so-called skinny repeal was going to make it there had been three senators who had issued a press conference late yesterday afternoon saying this was terrible policy, it had been crafted hastily. it was not a full repeal and replace as republicans had promised and they said they would vote for the bill only if they had assurances that it would not become law paul ryan, the house speaker, gave some statements indicating

that he preferred not to have skinny repeal become law, but he didn't promise that was good enough for two of the three. but not for john mccain. there were already prorepublican senator two republican senators, lisa murkowski and susan colins who said they would vote against the skinny repeal, then john mccain walked on the floor, put his arm out, put a thumbs down, and that was the dramatic signal. you could hear gasps in the gallery when he did that that this thing was tanked now, as we discussed earlier in the hour, this process has derailed a couple of times before, and come back to life. it feels as if this was the last time in this congress and the people need to prepare themselves for the idea that it's not going to come back. in fact, many republicans have indicated, mitch mcconnell himself indicated if the process

crashed, they would then initiate discussions with democrats on ways to sure up the exchanges in the marketplaces and fix them to provide some certainty. because a lot of people are concerned about whether they'll be able to sign up because of lack of insurers competing in marketplaces that's where it appears to be going. this may be the moment where republicans decide definitively now we'll go to tax reform and see what we can accomplish there. the news yesterday out of the big six negotiators was not good >> didn't senator mccain say he was against the bill what's the big surprise here in his big speech when he voted to proceed with the debate? >> we didn't know what the bill was at that point. the bill didn't exist. he said that he did not support the senate repeal and replace bill at the time, but actually voted for it a few hours after

saying that. he had -- he voted to start the debate, then he voted in favor of the senate healthcare bill. what he did was then hold out the option of not voting for this new skinny repeal bill which was only rolled out a couple hours before the vote he had given a press conference with lindsey graham and ron johnson blasting that bill it's been a roller coaster, sara >> i guess it's hard to figure out what they're voting on, which bill, what's inside what and who is for it and against it >> we have not seen a process like this so uncertain and fluid. when they -- here's what was extraordinary about that press conference john mccain, lindsey graham, ron johnson came into the senate press gallery and said skinny repeal is a terrible piece of legislation. it's a fraud it will not do what we said. however if we're promised by the house they won't pass it, then

we will vote for it to get into a negotiation with the house well, in the end, what paul ryan said was enough for ron johnson and lindsey graham, two out of the three, to say, okay, i'll vote for it even though i think it's terrible and a fraud because i don't think it will become law john mccain said what paul -- the assurances paul ryan had given were not enough for him. that's why he ended up voting no >> couple days ago we saw senator mccain say it's time for the senate to act rather than just deliberate for what seems like an ongoing period who is losing face more this morning? is it senate republicans failing to get this over the line or the president? >> i think this is more a failure for the republican party than president trump of course it's a failure for president trump, this is big on his agenda this issue was something that -- a crusade that republicans had been mounting for seven years. during that time they were

continually denouncing obamacare, promising that they would repeal it once they got power. now they have the power. that started before anybody thought donald trump was ever going to become president. he jumped on that train. so therefore it's a setbecome for his setback for his agenda, but this is more on the party than president trump. let's check the global market reaction to this. we have selloffs around asia, europe and in the futures market a continuation of yesterday's soft market performance. the dow did close higher up a half percent it was the only one of the main indices in positive territory. it's down 29 points in the premarket. the s&p down 7 the nasdaq, which had a big selloff in the middle of the day yesterday and saw volumes pick up in the afternoon closing down a half percent that's down 0.6% or 62 points. no exact reaction to the failure of the bill around 1:00 a.m.,

clearly soft markets around the world and for u.s. futures ten-year treasury note which crossed back above 2.3% earlier this week, remains at 2.32%. >> nasdaq may break its three-week winning streak if it closes lower which is in jeopardy now as for asia overnight, weakness led by technology following that move in the nasdaq yesterday afternoon. saw overseas names like ten cent in china sell off. the shanghai closed higher weakness in japan. the yen started strengthening on a sign of risk aversion. that hurts the japanese exporters. japan closed lower by a half percent. hong kong lower by a half percent. the early action in europe suggests some weakness here. the dox doax down about 0.7% tech selloff spilling over into broader markets. we have some earnings to talk about.

>> for that market in asia, korea down 2%. that the almost totally on samsung which is down 4% sam suc as for the broader markets, oil prices for you which are up 7% this week very much putting that early month decline in oil prices behind them, flat this morning, 49.04. dollar board, which was up a quarter percent yesterday, soft today. reaction there to the failure of the healthcare bill. dollar/yen flat. euro and pound higher. gold prices which are higher yesterday by 0.8 prices are roughly flat today. shares of amazon are down after the e-commerce giant reported a huge miss last quarter. we're talking profits. amazon earnings 40 cents a share in q2. revenue did top forecasts coming in at $38 billion.

amazon's outlook for the quarter slightly disappointing rising expenses are to blame as the company poured money into warehouses, data centers, and of course alexa joining us is stacy widlich of sw retail advisers just trying to check out the screen action here on amazon actually it's pretty much a shrug, down 2%, 3% for a company to miss like this, amazon is not just any company investors don't buy this for the profits. >> you're exactly right. the bottom line is amazon is in spend and conquer mode while the rest of everybody in retail is in spend and chase mode and you see the reaction to the stock here down a couple percent. yes, they missed huge on the bottom line because they're in investment mode, that's the story here, the end game it's not the immediate game. and by the reaction, as you just said, investors are okay with that you can imagine if a retailer

missed that magnitude on the bottom line? >> any company >> any company, yes. >> talk us through the retail part of the business that was one of the stronger parts, despite this earnings miss >> yes absolutely it's very interesting. so amazon's evolution can be summed up in the recent prime day. so, the customer now is comfortable with amazon, and those categories that the street was telling you that were no go that amazon could never sell, like food and apparel, auto parts and beauty, those are all the things that amazon is treading into. in addition to the fact that now with the echo they are in your home so when you're walking around your house talking about things you want, alexa speaks up and buys it for you. alexa is now in % 8% of homes in the u.s. that's a powerful tool that's hard to compete with. >> for so long the question on amazon was how long can they get away with these low margins,

high spending, and unreliable profit picture have they proven themselves? is it reliable enough on the revenue side and the aw business, which continues to grow 40% plus when it comes to cloud or should investors be wary here, especially with the stock move up 40% this year. >> yeah. the stock has had an incredible move, but the reaction here says that investors are okay with it. again, they are focusing on the long game or the end game. particularly in retail it is okay in the short-term if profits are, you know, not that terrific but the top line keeps growing you keep gaining market share. at the end of a few years from now or five years from now, if we have, according to our estimates, 40% less malls in total who picks you the difference amazon owns the home, as i like to say the echo has stolen your wallet. it's basically inside your

house. so that's very powerful. >> very quickly, can we get a comment on nordstrom a lot of news last night about how the family is working with private equity to get some favorable deals. this is the company that management and the family ownership structure clearly wants to go private. what's your prediction >> they do i think it's a possibility and there are certain retailers that clearly are just better off as private companies. the family believes that they would like to manage nordstrom for the long-term and sometimes when you're a public company you're under scrutiny from quarter to quarter if you're into the fought chore like this ffought chore they would like to do it in a way that's not in the public so i feel that's good for them >> as your point there, in that,

not only is amazon on a tear, so 2% decline in perspective, but in terms of generally the nasdaq's decline yesterday and in the premarket today, still had a great month. within the s&p sector, the tech -- the tech sector up over 4 % month to date. >> amazon is part of consumer discretionary, which we will watch also because the v.a.t. tax is dead. you won't believe how much this president trump original just sold for. stay tuned, you're watching "worldwide exchange" on cnbc chances are, the last time you got a home loan,

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welcome back to "worldwide exchange." president trump's artwork has officially sold for a whopping $29,000. a sketch of the manhattan skyline made by trump in 2005 for a charity auction was put up for sale earlier this week with a starting bid of $9,000 the drawing features an outline of the new york city skyline with the trump tower in the middle it's signed by trump -- >> there is the trump tower. the highlight of the new york city skyline >> we saw this earlier this week, when it came up, and i lampooned t because it's a terrible drawing >> he signed it. >> he signed it. and in his defense, he was one of many celebrities in 2005 at this dinner that did various silly sketches >> we don't know who bought it >> no. >> maybe anthony scaramucci.

>> i wonder what that would have fetched before he was elected president? >> purely for the quality of the drawing, $29 max. >> up next, one market pro is taking a page out of fdr's playbook sort of why he's saying the only thing you have to fear is the lack of tsf. iel he'll explain when we come right back i hired some help. he really knows his wine. this is the new guy? hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12? my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. easy boy. nice doggy. what do you think? not bad. what do you think? what's critical thinking like? a basketball costs $14.

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mattel reporting a better than expected loss sales of the key power brand barbie fell 5% globally. down 5%. a worse than expected loss shares of boston beer are soaring. the company beating wall street expectations on the top and bottom lines up 14%. expedia reporting a mixed quarter, earnings missed by revenues topped forecasts. be sure to catch our interview

with the expedia ceo today at 10:20 a.m. busiest week of earnings season wraps up with a few more big names reporting results. before the bell chevron, exxonmobil, merck and american airlines look for the first report on q2 gdp, that is coming at 8:30 al eastern. neel kashkari will be speaking later this afternoon futures are pointing lower down about 0.6% for the nasdaq it was leading the charge lower yesterday as well. let's check in on what's on the agenda for "squawk box." andrew has a preview from new york city. good morning >> we will dedicate the next three hours to the mooch that's the plan. we will talk about steve bannon, and sort of anatomically what would be required to do all those things it will be a heck of a morning we'll talk about healthcare. that's an issue.

steny hoyer will be joining us we will talk with him. david walker will be joining us. we have fresh gdp data at 8:230 you guys have not been talking a lot about the mooch. >> we haven't. it's a great point to bring up there's so much other stuff to talk about with earnings >> i know. >> i do think it was interesting that it actually did enter wall street research note overnight ubs, paul donovan wrote the combination of the infighting at the executive branch with this rhetoric on top of legislative failure could be interpreted negatively by the markets. he was pointing to currencies. >> she always nerds out on this. i love it. >> of course always a currency connection >> you spoke to the mooch earlier in the week. >> i did i talked to him on monday. >> was he polite did he use expletives? >> how much profanity? >> not too much. >> even for a calm conversation, there was a little, was there? >> i'm sure there was probably a

little bit the most interesting part is how much he truly -- it's not a put on he loves the president it's -- his loyal -- he does have that sense of loyalty when he says he is willing to subvert his own views for the president, he means that >> that's fine, the question is how he communicates that now as director of communications for the white house. looking forward to it. >> you bet. at dramatic vote in washington the senate rejecting a bill to repeal obamacare we are looking at reaction to u.s. futures we have been monitoring this tech selloff it started yesterday afternoon in the u.s tra translated into overseas names like samsung and ten cent and this morning the nasdaq pointing lower by 57 points julian emanuel is with us. is this a tech move or a failure to legislate move? what caused this correction that

we're seeing >> it's a combination of all of the above. remember, two days ago we set an all-time low in the vix, below 9. essentially that tells us there's very little fear in the market but now we wake up and all of a sudden there are technology jitter jitters of a sort we had back in june and this knowledge that legislative issues are going to -- >> that's the only thing we have to fear is lack of fear itself >> but it's august the vix is always low. >> the vix is always low what we've seen the last three summers is that the market has tended to -- >> not august. july >> next week >> the market has tended to wobble going into the end of the summer and as we all know september is one of the few months of the year that historically is negative look, it's a good problem to have we are up over 25% in the 13

months since the bex lorexit lo. >> you talked about tech jitters, down a half percent yesterday and half percent now, that's nothing to speak of relative to the run. >> exactly for us technology is a core overweight holding we think it will continue to work well. but when you have things that move in sort of a unidirectional way, you have to expect a breather, a pullback >> what about this infighting at the white house? is there a market implication if we continue to see rhetoric like this in the executive branch of government there's no question we're getting used to a new discourse from the white house that's something we've seen in 2017 the fact is that when you get into september, and you have to pass a budget, and you have to deal with the debt ceiling, that type of noise is something that investors will rightly focus on,

and which could cause -- >> we should look in the t bill market for first signs of that >> you have started to see t bill yields around the potential debt ceiling creep higher. there is concern beginning to be registered we think it may spill over into the stock market >> tech is a big overweight what about international equities >> we still continue to like europe really if you look, the european economy surprised to the upside. really quite dramatically this year if you think about it, political risk seems to be coming off the table. the election in france, germany looks like it's not going to be an issue so there's lots of reasons to be positive on europe >> profit taking taking place in europe this morning. juli julian thank you very much. >> thank you >> chart of the week >> do we have time for chart of the week >> mine was caterpillar. old school economy, not a f.a.n.g. stock >> mine was amazon versus

facebook that tale of two tech stories earnings much more on all of that still to come on cnbc. "squawk box" comes up next have a great weekend is this a phone?

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good morning happened late last night senate republicans fail to repeal obamacare senator john mccain casts the deciding no vote a live report from washington is straight ahead and an earnings triple play. three dow components set to report before the opening bell, the results from merck, exxon and chevron. and a new jersey earnings miss for huge earnings miss fo amazon kicking jeff bezos back down to the second richest person he was number one for about four hours. do you think he cares? we will dig through amazon's

report it's friday july 28, 2017, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. yesterday you did see the dow setting another record it's the nasdaq that was under pressure and under pressure once again this morning it looks like the nasdaq is down about 60 points below fair value. dow futures down by 35 points. zap indicated down by 8. last day of the trading week overnight in asia, you'll see that japan, the nikkei