and shoppers can return any item to stores or through the mail. >> what am i going to do with 15 seconds. where can go >> squandering it away right now. >> immigration. >> yeah. >> talk about the boy scouts. >> these are things for me to think about. thanks for watching today. make sure you join us tomorrow squawk on the street is next ♪ >> good thursday morning welcome to squawk on the street. futures are steady after record closing for the dow and tess laernings and ism service systems to chew on and europe is mixed and some show a slow down in big economies bank of england holds steady

our own tenure gets to 224 president trump seeking to take some credit. can this record run for stocks continue. >> plus tesla shares are spiking this morning the electric car maker topped earnings expectations. >> and cutting legal immigration in half. what is the economic impact of the raise act put forth by the white house yesterday? first up though the dow closed about 22 k for the first time ever thanks to a boost from apple. the dow is in the midst of a 7-day win streak for the first time since february. s&p came within a quarter point of setting it's own record close which brings to mind why in this period of good earnings is the s&p treading water for a few weeks. >> there's a lot of

undercurrents in the tech market keeps coming back to the weakest part of the economy which is autos. starting to see too many chips, you see the most important downgrade in search. they made the capital equipment that goes into companies that makes it the most basic you'll see them down off of that really getting momentum. cool away from apple the suppliers did not go up that you would have expected and then the other thing is retail never really bounced back. they had good numbers but the banks are flat lieng and, you know, it start with the financials and with the transports the transports are up yesterday. we're seeing real weakness and keeps coming back to auto. mike jackson is on he's a straight shooter. that's a bad quarter we have a lot of autos and they're going to do furloughs and it's going to slow down the

economy. it's a big part of the economy. >> that supply number was it out of ford or gm? >> gm. it's 15%. >> you know it's always so difficult to try to get across housing in 2007 was the problem. now cars won't be as much of a problem but when you're doing 60 million cars and they're being out moded very quick sloi tly s used car is losing value and i don't know if you've seen the advertisements it sounds like what happened in 2007. three months i don't like this. i don't like this. >> ten years goes by pretty quickly these days looking back ten years and feels like yesterday ten years from now we could be talking about autonomous vehicle fleets and i wonder whether we'll look at last year's number as the all time as a high that we'll never see again because when we get to these fleet of autonomous vehicles, few people

will be buying cars. what will the number look like then the closer we get how much do you discount >> people are misjudging how close we are >> autonomous vehicles. >> that's the toughest one of all. >> does bring us to tesla this morning. up in the premarket. narrower than expected quarterly loss revenue did beat forecast. 1,800 reservations for the new model three but cash flow is negative in the quarter. elon musk talked about the production timetable for the three. >> look, we have zero concern about. zero that tesla will get a 10,000

unit production by next year. >> 63,000 cancelled reservations our producer shannon said it should have been 63,001. >> hi to take mine back. my daughter, you can go online to see what she has. what bothered me about this conference call again is the love because this man today we have this many and it's probably not material you just don't make these assurances that said if it's a tech company and people still love it they'll give him the money for the bond yield which is coming which he indicated hasn't happened. >> will he be begin to my thinking years out here, won't they be a tech company to the extent that uber is going to be running a fleet of nondriverless

vehicles these guys also will have the same thing. >> did does he have to be referred to by the way >> it's his legal name. >> it's the greatest of all time. >> i go with ppw, jim stewart. >> comes on riday.

it's new promises and new promises besos never promised he just delivered. this guy promises and doesn't necessarily deliver but it doesn't matter because the people that own the car love it. it's a product >> there's also going to be a lot more and that he will deliver to your point that it's a tech company and deserving of a higher multiple than any car company because cars are just the beginning. >> exactly i'm a believer in the car.

>> i'm going to let that one go. >> >> you're watching the demos. everybody excited. it's a great car it's a technological marvel. >> so it's almost double a year ago. >> remember the great call on netflix. enormous cash flow declines are positive. >> it's a sign of success. >> it's the smell of success like they burned down the factory to save it. >> musk did say a debt offering was possible but threw cold water on an equity raise this is what musk said last night about this. >> we're not at this point considering an equity raise.

we are not, we're not thinking about it. >> so you believe him? >> yeah. >> shareholders are safe from delusion >> remember he went to goldman sax and they had a sell on it and they were able to merchandise the product. he was saying we won't be doing a spot offering and the people who buy it will be institutions and will get a good price for it and, the bulls stay in the end they stay in the end it's very entertaining >> it's amazing.

and now here's another number. if i did it you would say are you doing it with a couple you keep talking about it's a cocktail party. >> nothing wrong with that. >> i'm not saying he did it. he answers questions on twitter. i have solved most of the problems. >> i'm glad to hear that. >> thank you. >> you'll have to share that with us as well. >> done. >> shall we get easternings. do you want to talk a little bit this morning. >> the shoe company? >> no.

>> better that was a good-bye price erosion, lower volumes a lot of debt. a cut dividend no ceo really, right >> you ought to mention that allegen owns a lot of stock from the deal. >> they never sold that. >> no, but it's free to trade. if you wanted to buy it maybe you buy it there's no hurry.

>> a lot of individual were in this because of the dividend and the yield. we have to be careful because dividends are getting caught here the ones that are north of 5-6 are all suspect. >> there's a reason for it right? >> we'll get to the inverse of the teva story and a lot of other names. we'll look back as well at jim's famous loud and clear message that he delivered to the fed ten years ago today. take another look at the premarket. dow is up 7 straight with six record closes. we're back in just a minute. at fidelity, trades are now just $4.95.

we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

and at $4.95, you can trade with a clear advantage. for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different.

♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ >> he has no idea. he has no idea what it's like today. none, and bill pool has no idea what it's like out there my people have been in this game for 25 years and they are losing

their jobs and these firms are going to go out of business and he's nuts. they're nuts they know nothing. >> cramer. >> i have not seen it like this since half a million shares of citigroup when i got hit in 1990 this is a different kind of market and the fed is asleep they all said would you please just explain to the fed, tell them please cut the rates and

that really kind of, i was upset there. he was st. louis president had a lot of data. the data all showed things were good they then had a meeting where they laughed at me they knew nothing in retrospect and they were nuts. >> they didn't appreciate the connections between all the products on the balance sheets of the banks august of 2007 and i cover a lot of things but it was all about fixed income at that point and while the equity markets were hitting new highs, the fixed income market was starting to come to a complete stand still

and you are picking up on it and the fed somehow, listen, i talked to greenspan since then about it and the question is did they fully appreciate just how much at that time. >> when they raised 17 times and you had no loans and there were 7 million people but did they fully realize, no. >> you wouldn't have known this from your financial institution. meryl lynch never. they were going to be done. >> you would have known that nothing, it was frozen. >> nothing. >> you could not borrow a dime. >> was it your expectation when you said this that it was already essentially too late. >> no, i still felt they could have saved things but they did it very incrementally.

i did an interview with him. he said yeah, man, we should have listened to you and i said no, the way i came out i was very agitated and therefore i was made fun of but i don't think i would have been hurt. >> you look at it with the benefit of hindsight everything you said was dead on leverage on leverage on leverage we all know the story now. very different story ten years later. >> yes. >> but think about it. >> yeah. >> i mentioned mickey drexler. >> you are my walk promotion. >> that was really my dad. he loved yours on mcdonnells and costco. >> they were good ones. >> the tape is fascinating to watch. we later learned it was the

subject of discussion at the fed's table. laughter. >> it was laughter. >> yes i don't like to read the negatives. i was busy watching mad money or whatever the movie was but there were negative things and i wish they understood the spirit of which i said it. everybody lost their job two of them lost their house everybody was work, some of them made a great deal of money between them but they didn't understand the tables. they hadn't done that since the great depression and they were all derivatives.

>> we'll get kramers mad dash as we countdown we'll talk a little europe the round, lowest level against the euro in about nine months on some of these numbers. we're back in a minute they are the natural borns enemy of the way things are. yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful.

stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. their leadership is instinctive. they're experts in things you haven't heard of - researchers of technologies that one day, you will.

some call them the best of the best. some call them veterans. we call them our team. ♪ >> foot locker, it became foot locker now we have it and that's not what we're talking about in the

mad dash >> no one expected this break out. it doesn't matter. grand theft auto online is so strong they smoothed the earnings out already signed up so there's another way to the story next

year what's the multiple on this thing. it's actually a valuation versus the franchises it's not expensive but it's not cheap. >> we have a lot of other earnings to take a look at we'll do that before and aafter the opening bell stay with us on squawk on the street

experience uncompromising performance at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer.

>> a few years ago said rates were going to rise. >> there's too many jobs being lost here. i would be careful cbre which is the largest commercial real estate and the jobs are coming out and coming to all sorts of other places journal is lowest in almost 8

years. had a great quarterback in italy these are not accompanied by inflation. >> if you look at the earnings last night you have the worst of all worlds and those things worry me inflation wise. >> wages are going to be a margin story going into this. >> i certainly do. >> overall in europe at least, 57% of companies are beating down from 66 last quarter. >> yeah. not that great last night. there's a couple of really big cap stocks that are missing over there. but the rates are so low they could come up in the euro. >> that will be interesting to

watch. let's head to the bottom of the screen and the opening bell at the big board. >> and the cancer research foundation and how are these companies making it. one thing they're doing is not being in obamacare

did you see it this morning. >> aetna had a very strong number. >> i was looking for 230 but now they are out of membership they're exiting virginia and iowa they have exited delaware and nebraska it's a total failure of obamacare you see that big deal. >> they may. i'm not sure it's an interesting move. >> it's a little squishy. >> yes and high end as we know really bad >> by the way, back to europe and the uk, starting there some impact from brexit now. >> 40,000 jobs you're going to have some big headquaters that are moving.

i was in london in may in march it was insane i had to wait twice to get there which i remember was private >> you had to buy it and move there. >> but now it's there. let's keep an eye on the u.k there may start to be more finally now a year or whatever it's been since the vote. >> i agree you said a couple of days ago once amazon reported and we realized they weren't going to obliterate everybody tomorrow we were looking for 5-3 walmart is the best at the moment. >> walmart and costco have food businesses and amazon isn't there yet in terms of the ramp up and what they do with whole foods but walmart has been one of the best performers of late

costco needs to be better online but wall street is going to be a leader here because people realize a lot of other companies won't be able to make it but it's giving them a lot of leeway to spent money to be a real competitor at amazon amazon plays with wall street money. >> a lot of people own the stock and it's been doing well you cratered estimates which were smart and then spent a fortune on really getting their online right and they're doing it right

>> try to improve at the impact. >> they took it up and they don't have the turn and don't have the big training costs which has been a real bigaboo for them walmart deserves to be where it is >> i thought it was going to be single digits. i'm not seeing anything in there blowing me away but that's a very important drug. i think you might hear that they're going to talk about a rival drug it's not there yet but they have done a remarkable job. they are hitting it right now.

but the sub losses were not as bad. estimates 285,000 satellite tv subscribers left but again we're not sure how many were added in terms of to the sling service for their part of isi estimates that they added between 7,160,000 video subs in that area.

but they come at a lower average selling price for the company and then directing people on to their debt load. they have all of this spectrum that they spent a lot of money for paying interest on the debt that they took on to help buy that spectrum. you don't hear about it as much figuring into the consolidation talk that we get lately but we'll see. >> maybe. >> there's some report that makes no sense to me. >> they were okay. they weren't bad. >> no, they weren't bad. the multiples that that company stock trades at shy.

everybody got them now but the multiple is even higher. much higher. t-mobile not really interested in paying what seems to be that multiple even now in the marketplace hence massa is waving his hands a lot but i'm not sure what he does. nobody knows. >> the whole industry is like century link bad. >> feels like it protects him. he will use it in a very productive way

that's going to take you there been one of the best performers and there it is again. >> i was just looking atwal mart following up on that walmart recovered so quickly where others are down. at a lower price that people like bargains. i keep hearing good things and that could be the stars of the dow but there's things that are weaker in the dow. on the other side of selling the big business to them

but they reported earnings >> it was good the market doesn't agree with me maybe i'm talking in my book my charitable trust owns it but i thought it was very good quarter. a very good quarter. i could go line by line and challenge everybody on this but then again the stock has made a very big move from its bottom but i think that brent delivered and i know that some people are saying when is coolsculpt going to take off. i say give it some time and i did promise brent that i would do coolsculpt so i'm adding a couple of pounds to see how it works. >> i didn't hear it. >> it's funny. >> you're always funny. >> it would have helped. it hurt my feelings. >> i didn't hear it that time. sometimes it goes right by me. >> okay. i wanted to talk about it,

that's why so so look at this when i was coming up with my own little phrase about the demise of the high end mall might be greatly exaggerated. we had it other day. not bad. not bad. because the outlet mall seems a little saturated. >> they do have high lease termination income at the same time they reaffirm their guidance. >> saying maybe a yield doesn't get done. >> they have to figure out a way to make the space more experien

experienceed. >> all of those companies it can't be amazon. >> movie theaters. who goes to movie theaters anymore. >> yeah, i know, down 4% at the box office. >> yeah. >> that's a good point that's a secular trend people are not going to movies i don't think they were that bad. >> we're not going to need a car of our own to get there. >> you'll be instagraming everything that you he see. >> we'll talk more about that later. the dow down 9

hey, bob. >> happy thursday everybody. important thing is banks have been marshall leaders but not doing much here today. this is either side of positive or negative. semis under a little bit of pressure this week a and d down 4 or 5% or so but you see flat at the opening overall. most of these are all down for the week so let's call this again not a clear trend here elsewhere a couple of things moving remarkable development overnight. scientists successfully added genes to repair common disease causing mutations so there's stocks out there that engage in

development and the commercialization of the editing technologies out there they are all up today. >> we'll be talking to them later on 22 million shares. $20. that was the low end of the price but they're getting it out within the range and that's the key to get it out within the range. talk to them later on this show. the big discussion this morning was president trump. a lot of fun talking about his tweet this morning business is looking better than ever stock market at an all time high that doesn't just happen well, does it? and there's an active debate out

there in the community how much has president trump contributed to the rallies on a certain level you have to say he certainly has contributed to it so let's take a look at the bank etf rallied about 30%. it's at about 43 in the middle of december. it's about 43 today. the entire rally in bank stocks right after president trump got elected so the bottom line was you have to be a fool not to say you didn't have some influence and the hopes of regulatory relief industrials remember there was all the talk about infrastructu

infrastructure in 2017 we're up 10% overall and the reason we kept rallying is not because of trump but the earnings situation 15% in the first quarter and now up close to 11% in the second quarter. without that, without the global recovery and this earnings rally that rally after trump would not have mattered. it would have faded away so let's give the man partial credit for that and the global recovery the rest of it. giex guys back to you. >> thank you we spent a little bit of time this morning talking about the future in terms of autonomous vehicle fleets and things of that nature. that next generation of wire lesser vis which is is pretty close.

some executives would have you believe. earlier this week i sat down to talk about the opportunities it presents for his company it's not just about your wire lesser vis less service it is also about the internet of things and that could be bigger than cellular. >> it's going to ramp quickly. it will ramp at least as fast as lte did and the reason is there's so much demand out there for high bandwidth and straight

on cellular. on top of that the 5-g road map is very important to a number of new industries that for the first time feel like you know what i would really intercept with the cellular road map because it's changing my life. >> which is something that jim has talked about the internet of things being able to connect your devices. anything that outbreaks in a mechanical way that would have a chip on it that could communicate and say when it's about to have a problem. that data comes off of and can be monitored all of this is what we're talk about but again how many years out is it? when you speak to them as i did a few months ago the ceo of verizon, he's a believer that things are coming quickly and in part he embraces that because it would perhaps embrace a new growth opportunity for verizon which has been short on growth >> we're going to see 100 times faster throughput but we're going to see things like latency

of a network that the network will go out and come back and respond in less than the time it takes to blink your eye. we're going to he see ten times the battery life that we have seen in the past that opens up a whole new set of applications for consumers and enterprise but you can't do it if you don't have fiber deep into the network compared to the past. >> which of course does raise the question as to how much cable actually helps i mentioned massa earlier and is there any between the two? is it helpful to have the cable plan we'll see. finally last word again, yim, on the actual internet of things and the opportunity it really presents for qualcomm. >> the road map of cellular is becoming close to cellular these industries are being disrupted because their things

are getting connected to the internet and new business models associated with controlling or looking at big data really are important. now we enable that connectivity and the low power computing that goes around it. >> $3 billion, jim just in the last, in the last year from chips outside of cell phones. >> and it's interesting. it was a good number the problem there is that the deal is at 110 will they get it at a price they like. >> that's a story for the future. >> 5-g has been identified with broadcom which is the old merger >> all right let's not forget mr. santelli

and get to him now in chicago. >> good morning. do you see 46 basis points year to date chart shows ever since the beginning of july we popped over 48 you can see the two tops on the left should we start to close under that level it seems possible. that would be technically significant for rates and all rates seem to be highly correlated a lot of talk these days on 30 years. yes it's dripping a little bit the ultra long bond not included in the refunding package however does it really look that much different than the one week of tens maybe they're correlated together let's go to the chart. 30s minus 5s flattening has been the trade for awhile we have had a little volatility but it doesn't seem to have changed anything in a dramatic fashion. look at the euro versus the pound. it's flying. there's only one top to take out

there. we're going all the way back to 2009 something to watch carl, jim, david back to you. >> all right thank you very much. still to come, adidas upping it's growth forecast stay tuned for an interview with the ceo. we're back in a moment ♪ there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses.

the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wait. call now to request your free decision guide and find the aarp medicare supplement plan that works for you. there's a range to choose from, depending on your needs and your budget. rates are competitive. and they're the only plans of their kind endorsed by aarp.

like any of these types of plans, they let you apply whenever you want. there's no enrollment window... no waiting to apply. so call now. remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today.

becareally want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. duncan just protected his family with a $500,000 life insurance policy.

how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than $1 a day! his secret? selectquote. in just minutes a selectquote agent will comparison shop nearly a dozen highly rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $21 per month. give your family the security it needs, at a price you can afford. since 1985, selectquote has saved over a million families millions of dollars on life insurance.

did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's up to 16 times faster than slow internet from the phone company. say hello to faster downloads with internet speeds up to 250 megabits per second.

get fast internet and add phone and tv now for only $34.90 more per month. call today. comcast business. built for business. much better than expected quarter. let's find out about infrastructure that's aggregates. also known as stone. he knows something he knows something >> congratulations on ten years. viewers love it. we'll see you tonight. mad money 6:00 p.m.. the ceo of adidas on their upbeat results and battling nike and underarmour. dow down 20.

when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

>> welcome back to squawk on the street down 16. we'll have the ceo joining us straight ahead >> let's get some ism services with rick santelli. >> you know, carl, this is a biggie service sectors we're expecting a number for our july reed close to 57. maybe a bit below. we're a lot more than a bit below. big miss here.

53.9 is the lowest level one month shy of the year. so let's look at factory orders now. factory orders for the month of june are up 3% as expected and half percent positive revision from minus 8 tenths to minus 3 tenths you get the message here these aren't terrific numbers. if you look at capital goods orders, this is an important thing to look at

it's more than capital spending business spending. makes it tied for second place the best level for the year was 1.3 in january the worst level was minus 110. if you look at shipments following up .2. lots of data. >> rick san tetelli. thank you for that the president took some credit for the rally again on twitter this morning good morning to you both. >> good morning, how are you >> i'm good.

construction spending and now this ism number. at what point do you get worried? >> yeah t data is coming and i think the way i think about this market is we haven't had a pull back in a really long time and 5% pull backs have been on average about three time ace year what i worry about are the crowded areas of the market. areas that managers converged into like technology and we haven't had a pull back needs this opportunity to take a

little bit of exposure out of are areas. medals have shown strength here. does that balance it out >> well, you know, on a momentum basis it gets too experience i think both of those are overrated. underneath that the basic fundamentals are not too bad 2% growth, 2% inflation. but earnings are up pretty big even after oil so i think in the interesting story is that growth in the rest of the world is accelerating an in the u.s. t it's flattened off

a little bit u.k. is probably oversold. >> the market moves have had policy and the most from stimulus we have completely round trip from where they were ahead of the election. and they were during the election so i think a lot of the moves in the market have been outside of policy. policy seems to be underdiscounted in the market. if we do get the next 6 to 12 months those stocks could pop pretty significantly so if you

look there's a lot of other stuff going on tech has been a strong leader this year. that doesn't have to do with policy it has to do with the growth the economy is in the healthy but low range. >> john, do you agree with that? what about this argument that, and the president made it on twitter. we have seen it in the sur vase and numbers that business confidence is at highs do you buy that >> they were pretty good when he came in. the big surge in optimism happened right after the election and it was small

business owners that tend to be republicans that got overexcited. i believe the administration made a mistake they should have gone for tax reform first but instead they went after immigration and then health care and it's been a disaster i don't think you're going to get tax cuts if you did, you would have huge gains in the sectors that we were just hearing about. what is your reaction to particularly the focus on intellectual property and what the chinese response might be and more broadly what the impact might be >> the most important thing to understand about china which is probably true about us too is anything that you see in the press is for domestic consumption so when trump rails

against china it's for his base here when xi rails against the u.s. it's for his base there. chinese leaders are very worried about domestic political instability. and third of all with the my glant wo - migrant workers. you've seen them trying to do things to stop them by shutting down capital exports all in all though, the v government has been pretty restrained they're very practical guys at the end of the day and what they really want to do is show their domestic audience that they're tough when they're pushed and that they are ready for a seat at the adult table they have accomplished those

things pretty well so far this year. >> we'll talk more about what the president's stance may be tomorrow thanks guys, good to see you both. >> thank you. >> great to see you here we're watching shares of tesla charging higher after the electric car maker beat the street phil has more now on tesla's results and an update on the model three production it has raised the question and came up during the conference call does tesla need to raise capital? they're not considering it an equity capital raise but we may take out debt at some point. model 3 production 1500 in q-3 and then 5,000 per week by the end of this year and 10,000 per week at some point in 2018

and for those that are skeptical elon musk had this to say. >> what people should have zero concern about is that tesla will achieve a 10,000 unit production week by the end of next year. >> he's bullish about his view of how they're doing when it comes to the model 3 production although he admits it's going to be a tough ramp and they're still in what he calls production hell. in terms of reservations there's 455,000 model 3 reservations on the books. they had about 63,000 reservations that have been cancelled. guys there have been a fair number of people on twitter as there always are saying wait a second, he mentioned last week that they have at least 500,000 reservations and only 455,000. i think at the end of the day that commentary is probably not

going to measure up and have too much carry over over the next weeks. >> thank you when we come back though adidas reporting another solid erngs report lifting it's full year guidance. the stock is up nearly 30% from the year we'll hear from the ceo next squawk on the street will be right back excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that.

can we do that? at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer.

for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪

19% revenue growth another strong quarter in key markets like china and north america that grew 26%. both firms recently announcing they have to cut jobs. is and through the right

channels and that enabled tous grow it is more than 30% and we're expecting a similar outlook for the rest of the year likewise we have great partnershi partnerships. >> it's very very important revolution is taking place so what happens in the u.s. or in europe is a tremendous impact as

a global market and we're very happy with the deal we have done since the 90s and it's just a very natural evolution of where we're coming from. >> not so hot in russia though we did see sales decline there what do you think is the problem? is it sanctions, depressing economic activity? consumer behavior? what do you see? >> russia is about 3% of revenue which equates to more gdp contribution at a global level so that is a situation addressing all companies the sanctions will be changed but in the context of us as a company it does have an impact on our numbers. >> when nike announced this new deal, this pilot program with amazon investors were very kited. what's your experience been with the big elephant in the room and are investors right to be so

so enamoured with amazon right now? >> you think so. we have a great relationship so i don't think there's an elephant in the room you have to make certain that the consumer can buy your product we hear that slowed down a bit. what is working within your portfolio and will you still describe it as the retro chic trend? >> we're seeing a huge up tick on m and d or eqt so that's a very natural evolution

that is by no means slowing down but we're seeing slow down in certain market segments and up tick of others it's really originating out of who we are taking all sporting products and making them into originals and that's huge for us and i don't think some of our competitors have that history. >> they're laying off workers both restructuring are you taking advantage of that are you hiring >> we have more than 300,000.

>> i always ask maybe because i'm a fan of them but i notice the resale price is 1,500 to $3,000 can you tell us about the plan for the brand and how this relationship with kanye west continues to evolve? >> we have also seen that the demand for the product continues to be very very high performance has been another leg of it we have been very happy with the relationship. >> good luck getting your hands on that. here's the stock chart tells the story. after a banner year last year. the stock is up another 30% last year

nike has interestingly rebounded this year. but underarmor guys has gone the completely opposite direction. and a lot of it has to do with the trends we were just talking about there. a lot of the growth hopes for underarmor in the u.s. ended up in adidas corner instead they have been growing share in this market. >> the bell you're hearing is from post 8 where it is now open for trade up about 4.5%. when we come back we'll talk to venator materials going public dow into the green just briefly here up six points.

>> with back in 2014 when they acquired rockman holdings unit peter huntsman joins us here at post 9 nice to have you. >> nice to be here

why did you choose to take this unit public? >> we're seeing the pricing and the industry strengthening and profitability strengthening. we completed a $200 million cost cutting restructuring plan and it allows the parent company to pay down over $1 billion in debt so all around it's a good move for huntsman and shareholder employees. >> >> we'll be eventually selling all of our shares. we're in no hurry to get out even actually continue to pay down debt. >> that's the plan was that the plan a few years back >> yes let's eventually ipo it.

>> sounds like a pe strategy in a sense. >> we have a great management team. >> business can be volatile. can you describe the cycle that we're in right now. >> we're from our family providing the raw materials. about two years ago we hit an all time low in profitability and in pricing and so certainly the price is still today for the raw materials and we sell them to the industry closer to the lows than the highs. gradually building and we'll continue to see it tight on our end. >> the demand is strengthening from what areas?

but feel bs better than a year ago. >> titanium dioxide is more than 70% of the revenues and that has slowed down a little bit. >> only a third goes into what we would call decorative or home paints you're having some raw material so it's a wonderful raw material. >> a little over a couple of months ago you announced a merger of equals there is some opposition in the form of activist shareholders that say they don't like the deal they don't feel it's delivering the proper value what's the strategy to combat them and why and what do you tell share holders as to why this is the appropriate path for the company to follow?

>> you are have to look at the fundamentals we have over $400 million of costs that we'll be able to take out of the merge companies we will have several hundred million dollars of additional profitability coming from the shared synergies goes to contribute the stronger balance sheet. all time high margin with the combined business. it's a great merger. >> now of course the activists are on the side and they're saying it significantly undervalues that side of the business calling it value destructive and calling for other alternative transactions in terms of how shareholders are going to respond

>> that's the war on business. we're not going to create, we're not going to double our business or stock price overnight put we will over a period of time longer term this is the right move we're connected with clariant and this will be great for the shareholders short-term and long-term. >> they need to explain to their share holders as much as you do to yours. >> that's right.

his comment comes after he signed new sanctions against russia into law. a move moscow said amounted to a full scale trade war residents in central oklahoma were shaken up by a 4.4 magnitude earthquake last night while the quake did not leave behind much damage it did knockout power across regions. the iranian leader says the country has become stronger in the face of pressure over it's missile program. it made the comments to endorse president for a second term in office spain's top soccer league rejecting a record breaking 23 million dollars payment release clause which would allow neymar to leave the league's refusal does not stop his exit because that money can be paid directly to the club high stax soccer that's the news update for this hour i'll send it over for the eia inventory report

good morning. >> good morning, thank you so much the department of energy releasing that natural gas inventory report just moments ago. an injection of 20 billion cubic feet this is slightly higher than we saw last week. the number was 17. last year this time we actually saw withdrawal of about 3 billion cubic feet so that gives you a sense of perspective you can see that prices came down when this happened because the injection was a little bit more than expectations but natural gas is trading at 282 right now. remember earlier this summer we were trading over the $3 mark. it's definitely come down because of the weather patterns we have been seeing. cooler temperatures in part of the country. but we have also seen a drop in prices of about less than 5% in the last week alone. so right now trading at 282. we gave a few cent backs here. back to you guys at squawk on the street. >> jackie thank you for that when we come back the president returns tonight. the chairman is with us to talk about the trump era, it's impact

on the economy and a lot more. take a look at stocks at this hour dow is up 22 points. walmart up 11% or so since july 10th we're back in a moment

eliminating the massive restrictions on american energy and numbers are going to be released next week that are going to be earth shattering as to what we're doing with energy and the amounts of energy that we're producing. far greater than ever before. >> that was the president to small business owners yesterday. today he returns to coal country for a campaign style rally in west virginia. as a candidate trump promised to bring back coal jobs is he living up to that promise? joining us this morning is the ceo and chairman great to have you. good morning. >> good morning. thank you for having me. >> what grade would you give the

administration on industry and within that on coal specifically >> it's too soon to tell but i think that the administration is really focussing on investing in our infrastructure, making sure that we have reliable, safe and affordable electricity to power our economy because when you think about it he lek tris city the thing that keeps our economy running. >> discussion about coal and the future of coal in this country, people rarely make the connection that in order to charge an electric car you need to plug into the grid and a lot of the grid is being fired on coal do people understand that? >> i think people more and more understand that ta lot of the economy comes from electricity and what we need is a diverse set of fuel sources to power our economy. we don't want to be reliant on any one particular fuel source and that's why we have invested in our infrastructure. we're supporting the

administration and taking a look to make sure that we continue to provide the american economy of what it needs to grow. >> what about growing jobs we have another jobs day tomorrow mining jobs have peeked in this company decades ago. how big is the employment sector and prospect for growth in coal as it relates to electricity versus natural gas. >> when we look at jobs we look at the entire industry and the entire value chain and yesterday the he electric industry released a study on jobs that's one in every 20 jobs in this economy so there's a lot of job growth when you look at the entire electric industry. >> he didn't break it town on how much of that is in the coal sector and how much of the

opportunity is there >> the economy continue to run and the things that the president is look at such as things like simply fiifying is n to help us invest and invest quickly in the country. >> what odds would you give a full blown infrastructure bill and would you vefr prefer to set get priority over things like health care? >> we do think there's a good shot at an infrastructure bill

everyone republican and democrat understands how important it is to continue to invest and move our economy along. >> certainly one of those things business is trying to get behind we'll see if the legislative calendar allows for it thank you for your time. >> thank you >> snap shares plummeting as much as 5.8% today the stock has recovered a little bit and now down about 3% and still down about 60% from the all time highs there's a couple of factors at play here. there's impact expiring. trading could start on a number of shares this past monday and another period expiers on the 14th of august

it has been a steady decline thank you. when we come back a cut classic. one of the oldest fast food changes in the nation is mounting a come back the ceo of a and w will join us. squawk on the street will be right back ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time

and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

>> for you i'm willing to come on. >> the government is now producing two majors of the economy. we're all used to gdp that measures final output only but

they're also producing gross output, go and go is now showing a robust economy growing faster than gdp what is gross output the major spending at all production i call gdp the bottom line and the top line is showing very positive activity growing faster than gdp and it's been grower faster since trump has been elected. so this indicates that the supply chain is growing very rap rapidly compared to gdp growing at a much slower rate. >> in the past mark, maybe since 2010, in the past, six, seven years have you seen this type of horsepower in the output numbers because i've certainly seen must have better quarters over the last six years but none of those

years resulted in 3% growth. why should this be different it was fwrgrowing at a slow pace a lot of sit going to depend on trump's agenda he has very negative views trying to cut back on trade. trying to cut back on it and the jury is still out on trump and i would like to see focus more on regulatory reform rather than trade and

immigration cut backs. that labor force participation rate shrinkage because the policies that you liked in the past that you don't like based on yesterday's immigration speech certainly resulted in no major growth in wages. your final thought we're out of time. >> well, immigration is important and i'm wearing a ben franklin pen and ben franklin said wisely when it comes to immigration we're look at not who you are or where you're from and what can you do and immigration is always been a very positive contributor to economic growth.

i heard that we want you to come here and we want you to pull your own weight. benjamin franklin would have agreed with that back to you, mark, thank you >> and thank you, rick let's send it over now to john fort a look at what is coming up for us on squawk alley >> well, david softbank still making big moves massa pulling quarter of a billion dollars into a business that lends to alsml businesses we'll have the ceo coming up on squawk alley

dow got a record high this morning, up 13 points, the split between the industrials is noticeable dow is up eight straight, s&p's down four of six, the nasdaq down five of six, and it's been pointed out, guys, unlike past sessions, actions really not being driven by one name in particular today >> yeah, we've got a few earnings, for instance, consumer staples is one of the best performing groups. this is being led by kell logs and clorox in a sluggish, overall environment, but pfizer continues to lead the dow, interestingly, apple's given a little back, down 1% after what,

best day in five years yesterday driving the dow all the way up speaking of staples and food, the trump administration introducing the r.a.i.s.e. act yesterday while slashing the distribution of green cards by more than 50%. it's an initiative that intends to curb foreign work force growth for more on how it may impact the food service industry, we're joined by the president and ceo of one of the oldest fast food restaurant chains in the country, a & w, welcome to post nine >> well thank you. thanks for having me here this morning. >> well, good to have you here, and we want to talk to you about the business and your expansion, but we turn to leave with this new immigration r.a.i.s.e. act since the president has supported it there are questions about what it would mean for the labor force in the restaurant industry in particular, what do you think? >> certainly it effects the labor force, but for us, it really has very little impact. the bulk of our business is in rural small town america, so we, we really depend more on the

local label force than we do on immigration. so really doesn't affect our business specifically very much. industry as a whole, probably, probably somewhat. >> i would think the agriculture industry as well, farming -- >> oh, that's already having an effect on farm, and this will only kpas per rate that, i think. >> what are you seeing in terms of income growth and economic situation and consumer behavior? >> well, we're seeing, you know, a move back to rural america and that's the roots of a & w, is in rural america. we're having great success we're having great success with our -- with new development, we're having great success with our sales, we're having great success with the labor force in rural america. so we're, we're doing just fine in rural america, in fact, that's a big part of our growth strategy is targeting rural america. >> we've heard some others in qsr, bo jangle about wage pressure having to pay more to keep and attract employees are you seeing that and can you make up for it in pricing? >> certainly wage pressure leads

to price increases, right? the reality of it is, given today's labor market, is, you know, the market forces are creating an environment where you have to pay to attract, to attract talent and, you know, raising minimum wage, for example, only puts further upward pressure on him it's really the marketplace that dictates wages in the stores, and here you've got to get for more productivity and there is pressure on the ability to take price in the industry right now. so, it's really having an effect more on productivity that we have gains that we have to get >> i'm wondering what you're doing, if anything, on technology and delivery in particular, yum brands had earnings, your former parent company, many, many years ago, they say 20,000 of it's global restaurants, which was almost half right now are offering delivery, and that's really taking off, leading to higher average check sizes and helping the business are you doing anything on that front? >> we're certainly aware of that and everything else that's going on in the industry specifically, not so much,

again, with our roots and rural america and urban america, rural america that our consumers are coming into the restaurant they want to come into the restaurant so we don't see a lot of pressure, we do a lot with drive through and carryout business, not so much in terms of delivery >> maybe getting a call. >> you're getting a phone call >> that's okay. >> you're very popular >> on television >> hear the vibrations >> we lost it, yeah. >> make sure my cell phone didn't go off. i apologize. >> when you talk about the success of the labor force, which i think you said, what does that mean what do you mean you're having success? >> in rural america. we are just really not having as much problem getting qualified talent in those markets. i think there's a demand for jobs there and with our growth strategy, i mean, we're growing for the first time in over a decade as an independent brand we've had great success over the last five years, both in growing

our same store sales, outperforming the industry as well as new growth and positive store counts for the first time -- >> yeah, how big can store count get and does that mean you're going to be more dispersed over or geographies in the u.s. >> we're focussed, again, rural america, upper midwest, pacific northwest, northern california, those are the strong spots for the brand. and really where our roots are >> no national strategy -- >> not yet not yet. we do have a strong international presence as well primarily in southeast asian countries. those markets were actually started by veterans, if you may, and speaking of veterans, sunday is national root beer float day, and we are raising money, system-wide for disabled american veterans. and we hope to raise over $150,000, and we've raised as a brand, we've raised over $550,000 over the last four years with veteran-related associations we feel very good about that >> great cause

>> free root beer floats on sunday. >> what's the secret to a great root beer float? >> secret to a great root beer float. start with a frosted mug frosted mug. right. number two, is you have to have made-fresh a & w root beer which we make fresh in all of our stores every day across the country. and around the globe three is a high quality vanilla ice cream, we use soft serve in the store, the big secret in addition to those three key ingredients, put the root beer in first >> huh >> put the ice cream in first, and volcano, right, put the ice cream in and pour the root beer -- >> it's orderly. >> got it. >> are root beer sales slowing with the broader slowdown in soda consumption >> actually root beer is one of the only a handful of carbonated soft drinks that are seeing growth in the soft drink industry the carbonated soft drink. >> maybe it's the craft factor we have to leave it there.

>> we bring into the stores. we make it in the stores >> thank you for coming by, kevin. >> great, appreciate it. >> happy root beer float day >> and we're going to put a bunch of straws in there >> thank you when we come back, more on the president's new r.a.i.s.e. act, we're going to talk about hothe ll cldw biou impact tech dow's up nine points gary, what' you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade at the lexus golden opportunity tesales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now.

experience amazing at your lexus dealer.

welcome back to squawk on the street, consumer stapings are leaders this morning, financials in industry, taking a look at biotech, watch clovis lower on the day some of those stocks to watch. that does it for this hour of "squawk on the street" let's go to the start of "squawk alley" back over to you >> good morning. tesla headquarters in palo alto, it's 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪