in part to a drop in the energy sector down 1% this after crude oil fell after showing u.s. supplies declined by less than expected. keep an eye on the stocks in the s&p 500 energy specifically. that does it for this hour of "squawk on the street. we'll go back downtown for the start of "squawk alley." it is 11:00 a.m. and "squawk alley" is live ♪ good morning, i'm carl

quintanilla joined by sara eisen. our top story today is going to be apple hitting the all-time highs. the company beat on the top of the bottom lines last night issuing stronger than expected guidance for the september quarter. strong device shipments are building the best revenue growth in seven quarters, jon, with unit revenue growth in all categories and surprise ones >> ipad, i was looking for more than half the ipad's life now, it has been in decline so this performance up year over year, at least sparked some hope that that might be shifting. but i want to see a couple more quarters before being confident of that. the two things that seem most significant to me off this call were the low inventory levels, the big sell through they had in this quarter, and the aggressive guide into the start of what we expect to be an iphone launch, given that so many people had

expected the highest iphone to be delayed somewhat. what does this mean? are we going to have more iphone models out than we have had in the past perhaps updated models why is tim cook so confident >> andy, all the buzz about it today and the optimism, i think you're probably going to keep some of that in check, am i right? >> depends what you want to hear, i guess. i don't want to put a wet towel on people, but i would say, you know, there was good and bad the expectations were really, really low for the september quarter. and so that is some of what we're seeing, just relief that, yes, they are going to ship new iphones. that there is going to be a cycle coming but i thought there was good and bad. you know, john mentioned the inventory reduction. the bad side of that is, you know, apple anticipated a pause in demand in front of the new phone. and it doesn't seem like we're getting it, which says that, people still want to buy iphones which is great, but it also says they don't care enough about the new one to wait a few months

>> yes, but explain this evaluation we talk about how ginormous it has gotten, it's still trading 18% less than earnings it's a big discount to the overall technology sector and the consumer staples sector. how is that justified given a quarter like this and the outlook apple just provided? >> well, i think you have to take a step back and look at the multi-year outlook over the last couple of years we have grown profit not at all, zero, and if you look at, you know, iphones still generating over 65% of the gross profit, that is a as musaturated mark a end. if you're looking forward, i think it is really hard to get growth rates that are anything more than maybe mid-single digit. and so from that perspective when you're comping it to other technology companies, even big ones like google, facebook, the companies are growing extremely fast

i think it is really hard to argue that apple should be worth anything close to them >> shawn, when you look at apple services business and the fact that i think it was tim cook who pointed out on the call, payments capability has recently accelerated in international markets. and that is a big part of what is drive gt it how important do you think that business is to investors, given -- i mean, the iphone is pretty much what seems to be driving this story >> yeah, the services, as you know, the hardware markets are tough. and there's always margins and inventory and a lot of things, but the things that people love about the services market is the margins. they are up to 185 million subscriptions, i believe, of people subscribing to apps and just collecting a toll they don't really have any cost to goods on that so i think it's quite important. they never really figured out ads. and that's where you see a lot of the growth of acebook and google so i think it's important, but there needs to be more

>> obviously, we're talking about phone cycles, but there's a longer-term story in augmented reality, which tim cook did address on the earnings call last night take a listen to this. >> we believe ar has broad mainstream capability across education, entertainment, interactive gaming, enterprise and categories we probably haven't even thought of. with hundreds of millions of people actively using iphone and ipad today, ios will become the world's biggest augmented reality platform as soon as ios 11 ships >> all right so categories we haven't even thought of, he says, andy, does that get you above the 12-month target of 150? >> well, yes, if i haven't thought of it, it's not something that is included in my numbers. it has to be something i haven't

thought of and something i want. that's the trick with augmented reality. there's a lot of things you can think of i haven't seen any to make me buy a new phone yet. i'm not as big into pokemon that a lot of people were and that was a massive thing that drove sales, app sales certainly, but there is something there i believe that there is some change in the technology platform that is going to come with this. it will be positive, i just don't know how to quantify it. >> shawn, my take is people are perhaps putting too much into augmented reality, too much stock in that too soon could be big down the line, but you have to really develop a developer community. it's not going to be apple itself to turn this into a huge business, it will be third-party developers and it will take them time once they get the hardware, once people get the hardware in their hands to figure out how to build a business around it isn't this more than 12 months out, shawn >> actually, the -- if the developers and their buzz is any indicator, they are actually

quite excited about ar i was a little bit skeptical on my last time on the show, but have checked in with a bunch of it and even the current devices, you think of the ipad, the iphone, they have a camera and they have a screen and the current ios 11 sdk lets you essentially move around it with pretty high degree of precision and see a virtual item sitting there. so the existing hardware is actually quite capable of it i've been looking at some of the leaf drawings to see what on that hardware might make it better but, you know, there's a current base the question, is what is the killer app will the pokemon go type of apps where people can use for education and other things, you know, broad-based use that is kind of a fad. >> back to the financials for a moment, i wanted to bring up the cash war chest of $261.5

billion. how should investors be thinking of that? i have heard everything from grand ambitions to buy tesla to a repatriotation act, what are you telling people >> you do need to have repatriotation because the vast majority of that is offshore if you want to use it for repurchases, one-time dividends, jacked up dividends on the ongoing basis, big purchases of other companies, it has to come back and they don't seem likely to bring it back unless they get the tax holiday. so if we get that, then maybe we can think about bigger m&a i think about it just as a cushion for the valuation. it's always there, worse case scenario, you have to pay a little tax and that helps you out. >> finally, andy, you have a sector weight on the stock some viewers ask is andy serious? you've been -- i would say net skeptical for a while now, what are your favorites if not this

one? >> well, i try to be less serious than a lot of people in my position. but i'm deadly serious about the stocks, though our favorite names are still google and facebook. and it comes back a little bit to what we were talking about earlier. when you look across the landscape, you have to weigh growth versus the valuations we're paying i look at apple and think it's a multi-year gdp type of grower and the other companies are growing very, very much faster than that. and i think the price that you have to pay for them is much more attractive for the growth you get. >> andy hargraves and shawn carol, thank you back to the markets, we'll get a rapid update on the economic growth from steve liesman back at headquarters >> john, good morning. we got the first piece of data for the third quarter so we'll tell you where we are tracking for the third quarter. that was the auto sales. coming in around where

economists expected. it's a good number running here at 2.5% tracking for the third quarter. a good way to start the quarter with a range of 2.7 to 2.3 the 2.4% was reported due to construction levels. moody's analytics call late it for us and estimate it at 2.7% morgan stanley at 2.7 and bank of america at 2.3% federal fundamentals including labor market and global growth, she thinks further rate hikes will be needed and supports a gradual path loretta says not to curtail it she does see weakness but thinks it reflects special factors like pharmaceutical prices and telecommunications prices. she says that inflation is not signaling a downward trend

she's seeing inflation back to 2% over the next year or so. john williams will speak this afternoon. back to you guys. >> at 3:30 thank you very much, steve liesman. when we come back, it took 107 trading days to get to down to 22,000 what will be the catalyst for that then amazon is hiring. the candidates are hiring up a live report is coming up and later more on the apple's third quarter earnings, including tim cook's plan for the mother of all ai projects when "squawk alley" comes back you always pay

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we do business where you do business. ♪ ♪ the dow hitting 22,000 for the first time after the record close of the year yesterday. we'll bring in brian jacobsen as well as bmo capital markets chief investment strategist brian belski so brian belski, apple is the leader today without that, the dow joins the s&p and nasdaq in negative territory, is apple feeling hopes that the tech rally can continue and is that going to be the leadership position of this market it's been rotating all over the

place. >> that's a great question, sarah. i think that you in a prior segment were talking about how tech has compared to consumer staples. if you take a look at what is leading tech and what has been leading to answer your question, tech has been leading because most investors out there that we speak with believe that growth is scarce and technology companies are putting up the best growth. but within the tech sector overall, it has really been a consumer staple-ish type tech. these types of companies, platforms, machines that deal, that you deal with on your every day life, almost every minute life, whether or not it's the facebook machine, the google machine or the apple machine so these consumer staple-ish type tech stocks will continue to leave, we believe, and it will be more based on cash you think about the cash that is involved with running the businesses, i have always learned through all my years in business and in wall street, you follow the cash. and even without the

repatriotation, you have a stock among the strongest dividend growers in the u.s. and we would continue to own the stock just because of the strong dividend and cash flow that we think will be in place for the next several years. >> so follow the cash. brian jacobson, what is your advice in this sort of tepid growing environment where earnings are doing a whole lot better and you are getting divergence between industry groups >> we have seen quite a bit of divergence year to date. and i expect to see that continue in this market. what i'm really looking forward to brian belski's point about the growth being scarce and perhaps the people are willing to pay for growth improvement stocks under the surface here, we did get the personal expenditure and expense numbers yesterday. and they were a little weak. praches becau but if we do see the pick up in growth, growth will be a little less scarce. and maybe you'll see a rotation or a pivot more towards the

value side of the spectrum as far as what might be leading for the balance of the year. so yeah,right now it looks lik growth is scarce, but watch for that change. and when it happens, i think that could favor some more of your value-type sectors as opposed to the growth sectors. >> brian belski, we talk about tech a lot, but i can't help but notice over the past three months, mcdonald's pretty much number four on the list of dow stocks that has helped lead this rally. walmart has done pretty well also are we going to need to see continued contribution from those types of stocks in order to maybe hit 23k >> yeah, great point, john but i think it's more an issue with respect to mcdonald's constituency within the consumer discretionary space, which as you know has been a disaster with respect to the amazon effect and really issues from a secular and structural basis of inspector retail and quite frankly, a lot of the media companies, which have become the largest portion of the consumer discretionary sector from the market cap

perspective have not done all that well this year. so investors are chasing the restaurants, the hotels before that, so mcdonald's clearly from a fundamental basis have done very strong changes. the walmart, costco and the consumer staples area havebeen where the retail investors have been starting to go again because, quite frankly, this is really about traditional retail being so weak, jon, and walmart and eventually we think costco will be taking a lot more of those investors on with respectto the whole value thing, remember, we have been long term value players early on, and i think the biggest part of the value part is this, when growth is scarce, growth outperforms. but the prior point was made, as more companies give you earnings growth, you want to become a value investor that's why we think financials, in particular, are going to be leading the market higher from here to answer your question to get us to 23,000 >> all right on that note, sort of brian jacobsen, do you see anything in the future to lend support to the dollar and do we necessarily want that?

>> yeah, the weaker dollar should be a benefit to u.s. businesses that are exporting overseas so it's for the large caps it's interesting how the narrative has changed over the last couple of years, first worries about the strong dollar and worries about a weaker dollar but when you look at where the dollar is today, it's a non-issue for a lot of businesses you're not really hearing them mention it too much in the earnings calls >> that's because they only blame it when it's strong. they don't blame the weak dollar for helping. >> at the same time, the dollar was strong, you also had weaker earnings whether or not that was just sort of blaming the dollar or if it was the legitimate remains to be open for debate but i think the weaker dollar could actually, i think, it's not a big issue now. i think that it could strengthen from here. a lot of people have already re-priced fed expectations that the inflation numbers have been pretty weak. as a result, the fed is going to be on hold for a while if we start getting a little bit of a pick-up in the inflation,

that may change and you'll get a re-pricing of the dollar so i would not be surprised for the balance of the year to see more dollar strength as opposed to dollar weakness. >> it is down, what, 9% or 10% for the year we'll leave it there brian jacobsen and brian belski, thanks very much and coming up, first it was prime day. but now amazon is kind of celebrating a jobs day looking to hire some 50,000 people across the country. a live report from one fulfillment center is coming up.

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we have breaking news on qatar and american airlines. hey, phil. >> qatar airways has decided to abandon the plan to buy up a 10% stake in american airlines it was just five weeks ago at tend of june that the ceo told

d doug parker, the ceo of american airlines, he wanted to buy 10% of american. and immediately you heard from american and from doug parker who said, we don't like this idea, we don't like this plan. and initially they said that they were going to fight any efforts by qatar to buy more than 4.75% of american shares. and since then, they have also canceled the co-chair agreement with qatar they have been very vocal in their opposition to the persian gulf carriers. well, after all of that, qatar is now saying this potential investment no longer meets its needs or what it's seeking in the united states. so again, qatar airways abandoning the plan to buy up to 10% of american airlines guys, back to you. >> all right, phil, putting a coda on that story thank you vfr muery much amazon is holding several job fairs across the country we are at one in robinsville, new jersey where, the lines began to form early this

morning. hi, deirdre. >> reporter: hi, carl. amazon is hoping to hire some 50,000 people today, some of them on the spot we have been here since early in the morning when the line started to form. it stretches not just beyond the white tent but beyond the building you see in the background this is amazon's fulfillment center we have been talking to applicants throughout the morning to gifl similar reasons as to why they want a job, not just a job, but at amazon, in particular. >> i'm interest in the benefits, the advancement opportunities, 401 health benefits right on the spot i have never heard of a company that offers that. >> based on the next couple of days with the stock prices and things like that, they look like they're going up and they have a good business model for going ahead. >> reporter: we heard that from a bunch of amazon's applicants and they have seen them growing

and want a part of that. some of the down sides are the 10 to 12 hours you work and being on your feet i want to mention there are 25 jobs offered on the spot so far today, amazon said they do offer thousands on the spot so we'll keep you updated throughout the day >> deirde, they are looking to hire up to 100,000 jobs. >> i wonder how many robots are taking the jobs. that's usually what you hear from amazon. so this is an interesting push to hire real workers going to break, the dow breaks through 22,000 for the first time and we are awaiting comments from the president scheduled for 11:30 a.m. eastern we'll bring you those live "squawk alley" is back after a short break.

hello, everyone. i'm sue herera here's your cnbc update at this hour a suicide bomber struck a vehicle. the taliban quickly took responsibility for the attack. and dozens of fire crews responding to a csx train derailment in pennsylvania that caused three cars and a residential garage to catch fire some of the train's cars were filled with flammable liquid asphalt forcing residents within

a one-mile radius to evacuate. and a would-be robber was shot and killed by a customer at a walgreens farm cy in phoenix last night police say the suspect entered the store wearing a wig and disguise in search of oxycontin. no word if the shooter will face any charges. and ara parseghian who took over the notre dame football program and restored it to glory has died he led the irish to two championship seasons after abruptly retiring after the 1974 season he was 94 years old. that's the news update this hour back downtown to "squawk alley." carl, back to you. >> sue herera, thank you very much let's go to seema modi with more >> the banks are among today's biggest losers we'll look at standard charter of the uk down sharply this is an emerging markets bank not ready to start paying dividends again. that news overshadowing the 82%

jump in first-half profits that stock down over 6%. and then societe is posting earnings in equity trading in the second quarter and stocks are moving lower despite quarterly results to exceed forecasts no change in guidance is disappointing investors. keep in mind, ferrari is one of the best performing stocks in the index up 60% year to date. let's also talk tech apple's upbeat earnings and revenue guidance giving a list to u.s. and european suppliers take a look at the dialogue from ams that specializes in sensors with the stock up over 4%. and currencies are in focus. the euro breaking 1.18 against the dollar, the highest level since january of 2015. the uk pound also in focus hitting an 11-month high versus the greenback. bank of england kicking off the two-day policy meeting and it seems like policymakers are divided as to whether they

should, in fact, cut rates back to you. >> that's the debate, seema, thank you. shares of apple hitting all-time highs after better than expected quarter earnings. josh lipton is joining us with the highlights hi, josh >> reporter: hi, sara. when i met tim cook at apple headquarters, the demand for iphones was stronger than he suggested because he had to draw down the unit by 3 million units in the quarter and consumers are putting off iphones as they wait for the new product coming in the fall cooktelling me the noise or reports, rumors and so forth are at a different frequency and volume than we've ever had before and it's clear because i'm getting comments from different people that there is a pause, but despite that, i feel great about how we did one surprise in the quarter was the performance of the ipad. unites unites jumped 15%.

it was better than the 9 million expected cook saying the ipad launch we did at tend of march and the ipad pro announcement from june both were received extremely well and gave us the best compare on ipad that we've had in many, many quarters. we have picked up shares in major geography on ipad. cook called out the attraction ipad is seeing in schools and the enterprise as for geographies, greater china was down with revenue down 10% year over year that was better than q2. i asked cook if investors needed to adjust their expectations for what is possible in the market for the iphone cook telling me, if you look underneath the numbers, which you can't see from the data sheet, mainland china was flat year on year in constant currency it was actually up 5% so i'm certainly not adjusting my expectations. guys, back to you. >> josh, thank you apple certainly keeping the dow in the green today right around 22,000 as the other major averages remain under pressure, a pull-back from the record

highs. bob dasani is on the floor live watching the action. what are we going to see -- >>. >> reporter: august is lousy for stocks the bulls are hopeful they can compound all the expectations and pull out another monthly advance. the hope here is that any profit-taking in technology after apple's strong numbers will cause weaker sectors to rotate to the forefront. so rotation centers right now around energy and financial stocks can the plan work? maybe. so for oil stocks, the key is to get moving we need oil consistently over $50. so after being stuck in the $42 to $45 range for months, oil is now trading in the $45 to $50 channel. the energy stocks have begun to respond. look at names like chevron and schlumberger are off the july lows, but they are tentative with oil sitting right below $50. the other key to getting financials going is to get a modest breakout in short-term rates and to get president trump talking more about deregulation

expansion, which is what moved them to begin with almost a year ago. expectations for a modest rise in rates have already begun to move some of the marginal regional banks, bb&t, fifth third, this too is still kind of tentative to me. owner ship of bank stocks are way up this year and there's not a lot of confidence in the trump agenda at the moment. so let's just call this tentative. here's another hopeful sign, guys, several sub sectors that have been badly beaten up this year are starting to show signs of life. and they also provide new leadership in august look at at&t and verizon doing great since the earnings came out. and the retailers like target and gap are finally starting to get over the amazon funk so what is the chances for the august move up i think it is there. the rotation is very impressive. any time you get a pause in tech, other things move up but oil is a heartbreaker. a lot of money has been lost chasing the oil stocks we'll keep a close eye on that one. guys, back to you.

>> good read, bob dasani we are joined by mitch green from lead edge capital and josh lipton is still with us as well. mitch, welcome i'm trying to figure out how to read between the lines with some of the things we heard on the call last night. a lot of people are excited about augmented reality and the potential to drive the next iphone cycle i'm skeptical that now have the time we're going to see the technology drive the cycle, just because it is so new as an investor, how does it look >> as an investorin private companies, look, we are still seeing augmented ar and vr stuff early on still in the life of these companies. you aren't seeing a lot of companies with huge traction yet at scale but i think consumers are super built up about the new iphone. when you look at the guide top, there's not a lot for the bulls to be excited about. when you guard margins higher and beat on services, the stock is up even in this bad take, the

stock is up today. >> so how are your investments, how are the executives there who are plotting how to grow going to maybe shift the weigh they target things based on the strength they are seeing from apple? does that make them more likely to invest more in the ios ecosystem versus android, windows and others >> it's hard to tell there are really two platforms that matter. ios and android. and you're seeing the ios platform become more and more powerful out there what is an interesting trend i had an entrepreneur tell me yesterday, actually, they are worried that these companies, the companies, facebook, google, are creating apps that are literally addictive to people. and there's a company actually pushing apple and some of these companies to change the way that they might rank apps in the app store based on just versus total views or daus and maus and things like that >> reading between the lines, on the conference call, josh,

autonomous systems so we know apple has been working on the car thing, what is autonomous systems mean or what is the speculation out there today? >> well, i think you're right. so cook is keeping his cards pretty close to his chest. he did mention aon the mouse systems, autonomous systems on the call, sara, he called that the mother of all ai projects and said that technology could be use in a number of different application, including vehicles. but exactly what kind of products, what kind of services if at all come out of the technology, i think investors are still waiting to see, sara >> mitch, do you think ai or ar in this case is going to sort of leapfrog them to where they set a new standard back to the days when they might -- and in this case, they would be early, but in the old days they were not usually the earliest and still set the standard for various categories >> it could. i think they are further away than people think. everybody got bulled up about oculus a couple years ago at

facebook and facebook is an amazing company. you're going to see a lot of the companies dribble and drab i personally think it is furthe the case of the car, you're still going to see a driver in the car. it wouldn't shock me many you're apple and you have the market cap you do, what is one of the giant industries to go after cars we like to joke in our shop and our firm that literally apple should buy tesla it's a crazy idea, but if you want -- >> a lot of people talk about that >> yeah. >> but is that realistic >> probably not. but elon is a visionary and it would give them the capital necessary to build millions of cars a year. who knows. >> management structure would be interesting. with elan -- >> a little different culture. it's not going to happen but i think there are -- there

are really interesting things in this >> this would represent the most significant reform to our immigration system in half a century. i want to thank senators tom cotton and david purdue for their tremendous work in putting together this historic and very vital proposal as a candidate, i campaigned on creating a merit-based immigration system that protects u.s. workers and u.s. taxpayers. and that is why we are here today. the raise act will save taxpayers billions and billions of dollars it will do this by changing the way the united states issues green cards to nationals from other countries. green cards provide permanent

residency, work authorization and fast track to citizenship. for decades the united states was operated and has operated a very low skilled immigration system issuing record numbers of green cards to low-wage immigrants this policy has placed substantial pressure on american workers, taxpayers and community recourse sources among those hit the hardest have been immigrants and minority workers competing for jobs against brand new arrivals and it has not been fair to our people, to our citizens, to our workers. the raise act ends chain migration and replaces our low-skilled system with a new points-based system for receiving a green card this competitive application process will favor applicants who speak english, who can

support their family and demonstrate kills to contribute to our economy the raise act prevents new migrants and immigrants from collecting welfare and protects u.s. workers from being displaced. and that is a very big thing they are not going to come in and immediately collect welfare. that doesn't happen under the raise act. they didn't do that. crucially, the green card reforms in the raise act will give american workers a pay raise by reducing unskilled immigration. this legislation will not only restore our competitive edge in the 21st century, but restore the sacred bonds between american and its citizens. this legislation demonstrates our compassion for struggling american families who deserve an immigration system that puts their needs first and that puts america first. finally, the reforms in the

raise act will ensure that newcomers to our wonderful country will be assimilated, will succeed and will achieve the american dream i would like now to invite senator cotton and senator purdue to say a few words. thank you. thank you very much. >> thank you, mr. president. i'm very excited to be here with senator purdue and president trump to be introducing the new version of the raise act our legal immigration system should accomplish two main goals. one, it should help american workers get a decent pay raise and have a higher standard of living. >> the president rolling out the raise act in conjunction with senators cotton and purdue, essentially a skills-based immigration bill that would reward immigrant applicants based on their individual merits and limit low-skilled and unskilled labor from entering the united states. one of just a couple things that happened this morning, the president signed the russian sanctions bill, although in a statement he did say that legislation in his view is

significantly flawed that he's signing the bill for the sake of national unity our kayla touche and john harwood are watching both of these pots boil today. john, we'll get some reaction from you >> well, first of all, on the raise act, which david purdue and tom cotton have joined president trump to introduce, keep in mind, this is something that would reduce current levels of legal immigration this is something that has the potential who slow down and inhibit u.s. economic growth because one of the long-term limit takesations on growth is supply because of the aging american population so that is something that does appeal to his base, but it also presents a potential problem for business second thing is, his statement on the russia sanctions bill is remarkable consider that yesterday vice president pence was overseas saying the united states

government, president and congress, speak on one unifying voice on russia. that was not in the statement president trump put out today. in fact, there were two of them. one was sharper saying there were unconstitutional provisions in the bill to say it was significantly flawed so this is the case of the president who, of course, has been reluctant to criticize russia in any way or stiffen sanctions against them, accepting the bill because it has a veto-proof margin, but not at all signaling that he's on board with the impotence of this legislation. >> john, you laid out this sharp turn from u.s. immigration policy as we know it and as we have known it in the last few years where is big business on this issue? and where are the moderate republicans -- are the conservatives going to face an uphill battle when it comes topazing this legislation? >> yes, i think it is highly unlikely that the legislation passes

but again, it's something that the anti-immigration base of the republican party, that propelled donald trump to the nomination and helped him win some of the midwestern industrial states will cheer this. but it is quite unlikely to become law >> kayla, i'm wondering your take on this it seems to me to be at least from what we have heard in the campaign a bit of a turn in that the focus that president trump had then was on illegal immigration and curbing that now he's talking about the legal immigration of low-skilled workers and talking about that as a threat to the economy in a way that sounds to me to be a bit different from what he said during the campaign. how should we parse that, kayla? >> reporter: well, john, the president is looking for workable solutions he believes he can lash onto and senators cotton and purdue unveiled this in february. it did win some praise from conservatives who have said that the immigration system has long

been in need of reform what this bill would essentially do in addition to what john said about its effect on business, it would end the visa lottery and put a cap on green cards awarded to refugees. it would prioritize nuclear family immigrating over people who are simply on the receiving end of the lottery ticket. so that is why conservatives have praised this. perhaps the feedback over the course of the last several months has been even keeled enough for the president to feel like it's something that he can work through as recently as a week ago, he was talking about the fact that he was working with them behind the scenes on this of course, the democrats and the business side of this is that they believe that these are unfair reforms and would have undo effect on theeconomy. so certainly swearing those two sides is going to be important here on the russia sanctions statement, the white house, i just want to bring this to you, putting out a clarifying statement on what exactly is behind the fact that there were two releases sent out within a

minute of each other after the president signed those bills they clarified, one is the official signing statement, that is the one that uses more formal language, that talks about specific sections of the bill and invokes court cases. the other is a very, very spicy trump -- >> substantially, more than $4 million in net worth in terms of the companies and the stocks and the companies. we have a grown rate, a gdp, which has been much higher than, as you know, anybody anticipated, except maybe us but then it's going to go higher, too. we're doing a job. and you're going to see jobs are pouring back into the country. the factories and plants are coming back into the country we're going to start making product in america again and that's happening all over. as i mentioned yesterday, foxconn is going to spend $10 billion in wisconsin and other places and i think the $10 billion is going to end up being $30

billion. they make the iphones for apple and others and it is a truly incredible company. so we have a lot of things happening that are really great. but again, today, the stock market hit the highest level that it has ever been. and our country is doing very well i just want to thank you all tom and david are going to be outside. they are going to speak to you at length about what we're going to do with respect to this aspect of immigration. i think it's going tobe very, very important the biggest change in 50 years thank you all very much. >> that is the president taking a little q&a responding to not just the stock market today having hit record highs again, at least on the dow for the sixth day in a row above 22k, but we're referencing foxconn echoing what he told "the journal" a few days ago, but he

said foxconn could increase the investment to $30 billion. although we have not gotten official word on that number. >> i think it's a little bit notable, the praise he heaved upon fuse sif praise. some of which customers such as apple have pushed but i think part of that just comes down to the president's way of speaking when he's talking about something that is good. >> it reminds me of when he also spoke about his conversation with tim cook of apple and said that he's going to build three factories in the u.s cook was asked about that on the conference call by an analyst and totally dodged that question, talked about the responsibility to create jobs in this country, something that apple is clearly focused and working on didn't hear much about the three plans that was mentioned. >> i wouldn't say it was a total dodge. what tim cook did was get to the substance of job creation. >> right.

>> perhaps he was trying to avoid saying that the president didn't perhaps have all of the details. he didn't say, yes, that's what i told the president but then went on and talked about other specific things. >> clearly, if you add it all up, the president's talking points are focused on the market surge, which stocks are hitting record highs we've seen 31 closes so far this year and the better business environment and we'll see if the numbers continue speaking of the markets, let's give you a quick look at the dow. sitting above the 22,000 level first time ever. thanks to apple. it's up 40 points. the rest of the market is pullg ckust inba ja bit. we'll be right back on "squawk alley. or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...

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i'm scott wapner a big show coming up on "halftime report." what a billionaire investor told me that you should stay long stocks. top-ranked apple analyst is with us as the stock jumps after earnings. real estate the tech sector. we'll see which way traders think the nasdaq is about to turn we'll see you at the top of the hour jon, about five minutes away. >> scott, looking forward to that meanwhile, a scary plot twist here amc shares plummeting after the company announced weak quarter out looks. what's happening at the theater

chain? julia boorstin has a look. julia? >> reporter: weak summer box office and the rise of netflix and at-home entertainment options. the company unveiling a cost reduction plan including strategic pricing and reduction in operating hours in the second quarter, the company expects to lose about $1.35 a share. q2 revenue of $1.2 billion, also short of expectations. it does not look like q3 will be any better the company forecasting a very challenging third quarter. amc blames a lackluster box office as well as a charge on its investment marketing company

national center media. amc pain, down 8% in the u.s. so far this summer as a result of critical failures and rise of at-home alternatives like netflix. its shares, on the other hand, are up 92% as the company adds more subscribers than expected we'll hear more from amc, including the plan to battle the rise of streaming and official second-quarter earnings results when the conference call is held on monday. guys, back over to you. >> julia, thank you for that "squawk alley" continues after this yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful.

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where you do business. ♪ ♪ well, the markets tried to hold above 22k, three points above that level we owe it to apple's earnings last night in addition to square which has had a nice run the past few months. >> it has. match group, the parent of tinder doing quite well. that stock is up nearly 3% in trading right now perhaps because investors are swiping right. that's the direction you swipe when you like it, right? >> yes swipe left i think is a rejection but i thought the results were disappointing on tesla, everyone wants an update after elon's production hell. >> 100% positive on this car

saying it's a game changer >> and adp with a slight miss. held to the forecast for friday of 200k on jobs. we'll find what that brings us let's go to scott wapner and "the half" welcome to "the halftime report." i'm scott wapner dow is 22,000 with stocks crossing that milestone for the first time ever today. where will your money work best if the markets keep climbing steve weiss, jim levenhall and jon and pete najarian. you stay long here >> well, i am for now. i see no reason to be out. the facts are, the earnings season has been spectacular. even before the financials, yo