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 ♪ ♪

good morning, ceo henry, a lot to get to with age today dow setting a new record high, hovering right above 22k today breaking through that psychological barrier for the first time ever yesterday, as you know, the blue chip's on track for the 33rd record close of the year. investors can thank apple for the latest move. it's coming off the best day in about six months overall on the markets, henry, earnings have been good. really good. and yet the s&p's been churning around these areas 24/7ish for weeks. what's happening there >> step back a little bit, the s&p has had quite a run, seems like that can continue far while. valuations have hit a level that we are getting very close on many, many measures to the peak in 2000. talked about this for years, as

you have astutely pointed out, valuation is worthless as a timing tool. but, in general, it does often predict long-term returns. and i think you have to look at that and say, wait, this can continue indefinitely, but at some point -- >> the metrics you're referring to are things like the cape ratio. >> also revenue, people have been attacking the cape ratio, that's fine. any metric you look at, we are now on a cyclical basis, we are now nearing the peak of 2000 across the market. >> at the same time, it's been interesting in technology how wrong so many people were about what the follow on effects of the smart phone would be and looking at fitbit which reported earnings that were a little bit better than expected and the stock has been up, but, it's down so far over the past several years. similar to gopro in a sense that a lot of these ideas we thought would follow on from the mobile

environment haven't done so. logictech is up huge not for the headphones, but for the streaming, and those ideas have performed pretty well i think fitbit's pe is somewhere in the 12 to 13 range. >> well people -- >> there are some people -- >> folks have often confused a gadget-maker, which often has a fairly predictable trajectory of rocket ship and then oops, when it slows down, as media companies. they're talking about themselves like they are, that was confusing far while. but fitbit could have easily been taken out at the top and been heroic like beats and others we don't know. if you overstay too long, this is the risk. >> are you surprised we haven't seen more follow through then after earnings in some of the big tech names like facebook >> i thought apple was tremendously impressive. and that was a quarter, everyone had basically written off this quarter and most of the performance of the quarter that we're in now they posted good numbers, not spectacular, and look at the outlook for the stock. so, i thought that was great >> yeah, particularly the

outlook and the inventory levels suggesting that all of this buzz around a late new iphone could be wrong i wonder, do you think that this new iphone has possible follow on effects, maybe it's not ar, maybe it's something else. investor should be thinking about driving trends for stocks into 2018. >> maybe there's something with ar over a long time, not something that is going to have an impact certainly on apple stock in the near term i think the way you look at this is it is yet another big iphone upgrade, but each one of these gets smaller in impact if you look at how the stock has behaved over the last couple of big ones, the four and the six, the year ahead of it, we've had a great run in the stock usually when the iphone comes out, the news is out, then we start to move sideways for a while. >> yeah, we'll watch for that along with things like repatriation on legislation. tesla is the story today though, getting a boost now worth more than ford or gm, again, the

electric car maker posting a smaller loss than expected sales nearly double. partly thanks to preorders of the new model 3. the company burned through more than a billion dollars in it's most recent quarter as it tries to get the three, production going, get the factory up and running. henry, some people have a problem with it, some don't, what do you think? >> i think they will need to continue to factor into your owning the stock they're going to be back to raising more capital. the idea that they're suddenly going to turn into this hyperefficient cash machine doesn't make any sense i think stepping back from it, eventually, tesla is going to trade at 20 to 25 times earnings we know that but, wow, is elon musk compelling as a leader, even beyond tesla, but the things that he makes happen that just seem impossible to everybody else, i've talked to portfolio managers recently, they used to own the stock because of that. it has the reminiscence of early

google, early facebook, early apple recovery, the religious cult around it, and so far, elon musk has proved the doubters wrong. eventually it'll be valuation that we can get our heads around. >> auto analyst collin langen comes on with us >> thanks for having me. >> about the doubters, a lot of people doubted the three would ever happen, now it's here, and the question is whether or not production can go exponential as musk argues, can it? >> i mean, everything's structurally possible, i think you have to look at the recent track record and they've actually struggled to get the x to market on time. so, i think it's going to be very, very challenging you're talking about a five fold increase in production that's going to be very challenging. i have my doubts, and my doubts there at 25% margin and guidance that they gave yesterday >> colin, so what is it that triggered doubters to kind of take over as far as momentum in tesla's stock? because, i mean, as you mentioned, they've sort of

failed to hit their targets before and yet the stock has continued to rally you've got to sell on it now what's going to make that come true >> it's an absolutely valid point. i mean, this is a company that, you know, we've actually increased our cash burn for this year after these results we actually cut our numbers for this year after the guidance that they gave, and yet the stock is up today. i think really one of the key points is when competition comes to the market. i think people are thinking the traditional automakers are sitting on their hands, but the reality is, an 18 and 19, we're going to see a lot of launches coming from other luxury automakers i think that's where the address will market for tesla may come into question that they're not going to be the only player out there. >> yeah, i was just going to ask about the broader automarket we're coming off of that july period which saw sharp decline, gm sales down 15% in the month while tesla stock continues to soar, what do you tell investors about the demand is it that electric vehicles are hot? is it that tesla is tapped into something on demand that, and

it's trading in a way that other automakers are not >> yeah, i mean, tesla's definitely it's own beast. it's not comparable to the other traditional automakers clearly obviously not on valuation at all you're talking about a niche product today. it's not even ev, it's a tesla and people are buying the technology and the brand so i think it's just very different from the traditional automarket and i think the challenge for the company is as you go from $100,000 car to a $35,000 car. you're going to get closer to the traditional automarket and the economics and the customers is a bit more difficult, more challenging. >> colin, to your point on competition, to the degree we do see some other entrants threaten tesla in '18 or '19, who's first? >> i think one of the big ones will be the audi product which will be an suv that really will be a model x fighter and a compelling vehicle. after that, there'll be a jaguar and in the second half of '18. and then mercedes has an aggressive launch schedule that i believe senators 2019 with a

whole series of eds. and so we're going to see competition all around porsche also in 19 and bw has an aggressive plan. it's coming from all the luxury automakers >> we're going to need more batteries, colin, thank you. very much, kol listen langen from ubs henry, good to see you as always >> thanks for the time when we come back, more on the 22k passing and which stocks could take it higher soft bank investing a quarter billion in one start-up. the ceo's going to join us and issue with trump's new immigration policy we'll talk to former twitter ceo dick costello on that and a lot more in a moment i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you.

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we do business where you do business. ♪ ♪ nasdaq down for the fifth time in six days, as the dow continues to hold above that 22,000 level hitting another record high. for more on the markets and the second half outlook for tech stocks, joined now by whole sheep investment officer paul meeks and barry bannister. barry, the fact that tech has sort of slid off from the broader market and has gone from the spectacular outperformance all year long to a pause, how should investors read into it? >> yeah, it's a little worrisome. i mean, it all has sort of a mid1999 feel to it global dollar liquidity is ample, dollar's bulled back.

valuations are up on low rates, low rates mean central banks have less room to operate. there is room for a policy mistake. so we'd look for the market to top out over the next nine months or so >> paul, what about you, do you sort of share those concerns is that the behavior you're seeing with this market? does it feel tired to you? >> it does feel a bit tired and i concur with the previous remarks, as a technology investor, we have had a little lull in the action, and i do think some of the stocks, not all of them, but a select few look like they're reasonable buys here because i believe the sector will continue to outgrow both top line and bottom line, all the other sectors bay wide margin >> which names are you talking about? >> i'm a contrarian, so i think after the quarterly released, google has come back to where i'm reinterested i bought some akami recently, fitbit at 5, it's a nasty company, it's not a great

company at all, but it's poised far bounce with the new smart phone, and i do think that the correction we've seen in a variety of semimy conductor names and mike research makes them good opportunities. >> nasty, i like the adjective paul, i'm wondering, beyond those kinds of plays, how does an investor hedge in this environment? if you look at facebook, it's a been a major way so is alphabet, apple, where do you go put your money if this run has gotten a little yawn too? >> what i would do is make sure i am looking at non-technology names, but within the tech knowledge sector you want to stay with the cloud leaders, and i think on any sort of dip, you want to be in microsoft and google and amazon, and what's happened in digital advertisings, specifically through social media, every time you think about buying twitter or snap, just slap yourself in the face and buy some more

facebook >> that's one way to put it. >> yeah, snap in particular is having a tough day, guys 12:31, i saw something a little bit earlier in the session, but no longer a teenager, that's for sure barry, i wonder on some of those names, i mean, how many of those fit into a fit basket as paul's describing where you don't have confidence long-term, but it's worthy of a bounce >> yeah, one of the things we have to understand about the rally and the nasdaq, particularly these high growth tech names is that growth is it's own form of defensiveness and during the big growth downturn globally that started in 2014 into '15 and '16, that lack of economic growth and pushed them into the names they look expensive. i would disagree with the comment that they're reasonably priced there is that vulnerable that i said to a slight change in rates off of low base which affects

your valuation multiples on high growth stocks. >> paul, what about semimy conductors they're off peak levels. is that a worrisome snag or do you step in and buy? >> typically it is because the semiconductor industry are leaders, though when you take a look at not all of them, but a variety of companies, they seem to be doing quite well, particularly those twha that are moving from microchips to graphics process controllers, companies like brodcome, and then as i said before, you have some turn around situations that i think are too deeply oversold like lamb research >> gentlemen, we'll leave it there with some notes of caution, nice to see you both. when we come back, first it was sofi, now fast bank. we have a cnbc exclusive with the ceo in a moment. dick is going to join us, we'll

talk about the white house, we'll talk some snap, some mark zuckerberg when quk le ntues.awaly" no, please, please, oh! ♪ (shrieks in terror) (heavy breathing and snorting) no, no. the running of the bulldogs? surprising. what's not surprising? how much money aleia saved by switching to geico. fifteen minutes could save you fifteen percent or more.

soft bank continuing it's massive spending spree putting up a quarter million dollars to back up cabbage. cabbage ceo and co-founder rob rob, thanks for being with us. >> thank you for having me, i'm thrilled to be on. >> so, tell me how cabbage has managed to avoid the same fate as the on decks and others i mean, i know that you're a big data play, but what is it about your handling of data that allows you to make smarter bets? >> well, ting goes beyond. i think a lot of people when they look at companies like cabbage which is critical is how they underwrite customers, but it's also really important to create products, utilizing technology and data that allows

you to acquire them officially and serve them super efficiently. our entire system is automated, small business owner can land on his site and cash out within five or six minutes. and being able to do that allows us to not focus on expenses like building huge and numbers of employees, and we're spending a lot of money necessarily unacquisition to customers >> how are investors i came up covering technology where i can look at inventories, overall sales and profitability and gauge the help of a company. how are investors in the future to gauge whether cabbage is really doing as well as it seems to be doing and making smart decisions about how to allocate capital. >> well look, you know, we're a company that really focuses on technology and data as you said. the way to judge us over time is whether we're able to continue to build, sort of more small businesses, serve them super efficiently, and also we're looking at focussing on other

aspects of the small businesses financial life so what you'll see from cabbage over time is not just lending products and better lending products, but also moving into related spaces and so that's a way to judge us by our growth and ability. >> what's related? >> well, we're looking at related space. we're looking at lots of spaces. first of all, most importantly we're focussed on our lending product and delivering capital in a way to more small businesses in the u.s. really focussing on personalization and customization of products on the fly. but we also believe that given our brand, given the numbers of customers we have over 100,000, given the fact that we have data connections, live connections to 1.5 million different data points that our customers have given us access to, we have implicit permission to start offering services like payments and back office services as well so we think the cabbage brand can expand and extend to the

products >> so how did you get hooked up with soft bank and what's that experience been like for them to have put in $250 million where does that partnership go >> well the partnership is great. so it started an affiliate which has been wound down soft bank capital ha invested in our d round in march of 2014 we established the first relationship with soft bank then we got back together in the fall last year and we took it from there. what i love about soft bank, they have terrific vision on disruptive industries and companies picking companies in those industries that can really make a difference. they also have, as you know, a huge number of relationships with companies that also serve small businesses so we're looking forward to working with soft bank and accessing that opportunity and being able to provide capital to small businesses that access other services that soft bank may provide through other affiliat affiliates, investments, and relationships. >> one last question about soft

bank, rob, i mean, americans are going to have to get familiar with his name. i just wondered, do they, in your view, want to be apart of management or are they happy to be a passive investor and how do you characterize their aspirations of running or investing in american business >> wl another thing i love about them, they're very pro, the entrepreneur, the management team they want to first understand whether the entrepreneur and the management team shares a vision that they share in terms what have can be done but to date and obviously this is a brand new relationship up to date. what they want to do most of all is support that vision and just help in any way they can so i, i don't, you know, i don't expect there to be any undo control or anything along those lines. it's really a matter of partnership and what can we do together >> i wonder if it's hathaway eventually

ceo of cabbage, thanks for joining us >> thank you i appreciate it. still too come on the show, dick costello is back to talk snap, president trump, and mark zuckbe quk y"ilbeig rhterrg back

good morning, everyone, i'm sue herrara. here's your cnbc news update that the hour. russia's defense ministry says a ceasefire has been agreed on in

another of the fore planned safe zones in sierra. the ministry spokesman says the truce should go into effect today. brazil's embattled president surviving a key congressional vote that could have suspended him over a bribery charge. but brazil's attorney general is expected to charge him with obstruction of justice by the end of the month the insurance institute for highway safety releasing video to illustrate how important it is to buckle up in the back seat showing what happens to passengers at impact of a car just going 35 miles per hour 28% of adults say that they don't always buckle up in the back seat. some companies in sweden are offering an extra week of vacation, but only if they exercise outside of work for at least three hours each week. the hope is to prevent health-related stress problems back downtown to "squawk alley,"

back to you. >> thank you very much, sue. mixed closed for europe. >> that's true, although some of the markets rebounding here as we approach the end of the day the big talker, of course, is that bank of england meeting keeping rates on hold 6-2. in fact the uk posting it's best day in four weeks after we got that central bank vote reducing it's forecast for both this year and next and projecting inflation to peak at 3% in october. the news out of the bank of england sending the pound lower, plunging the bank of news conference governor mark kearny, he expressed concerns about the brexit's impact on the uk's economy. listen in. >> uncertainty is about the eventual relationship. our wane on the decisions of some businesses. we see it directly in the mac coeconomic numbers investment has been weaker than we otherwise would have expected >> all right so a rate rise at this point, perhaps, a bit premature take a look at that.

saw a lot of volatility in the trading session. yielding 1.15% let's talk about earnings. one of the biggest losers despite beating on the bottom line, the edge neerg conglomerate says it saw a quarterly decline in many new orders meantime, adidas up slightly on upbeat results and guidance, helped by strong nmpbs north america and china. lastly up sharply on signs that it's turn around plan is finally paying off the italian bank posting it's biggest profit in about a decade and restoring cash dimpbds this news adding to the dimpbd we've been seeing in the italian banks. look at the italian stock market you'll see that it's canned didly outperforming the stock 600 up over 3.5% coming back, carl, back to you new raise act that would slash legal immigration in half and prioritize visa by skill

a group that represents apple, facebook, microsoft, google, and others say the bill, quote, does not address the challenges tech companies face and injects dysfunction and removes employers as the best judge of the employee merits they need to succeed in grow the u.s. economy. joining us to that and a couple of other topics. >> thanks for having me. >> other countries have point-based systems like this one. this seems to protect immigrants who have something to add to technology companies, what's wrong with this. >> well, a couple things first of all as it talked about all the time the competition for talented engineers in silicon valley and around the world right now is extraordinary. there aren't enough of them. everybody's fighting for them. we all want more

>> how much is a cultural, silicon valley and california companies versus being a business issue because it certainly seems like it as far as the work force that silicon valley would be recruiting, this would not -- this policy wouldn't have that much of an impact. >> well, i think, well, it's on the surface, that's a perfectly reasonable thing to say about it, the challenge is as i just mentioned in my previous answer, you're essentially setting up a, you know, someone else in front of you who to be perfectly honest about it, probably isn't most qualified at deciding who the best software engineers or hardware engineers are to work at these companies we go through, you know, ridiculous interview processes to try to find precisely the right people, and they take a

long time, we talk to tons of candidates, generally speaking to find the one or two we want and the idea that we're going to go look at these people for you and come and tell you who should is going to be problematic for us and make it harder for us to compete. >> and just to be clear, just for understanding, do you expect this to have any impact on the number of hv 1 visas allowed in? i know tech has been a big proponent of getting that number higher do you think this will actually shrink that number >> well, the worst case scenario is that the answer to that would be yes and troubling indeed. again, as i've said, the competition for talented software and hardware engineers out here is extraordinary and fierce and always difficult. to think it's going to get that much harder is worrisome >> dick, whenever this topic comes up, we hear from some

viewers who say, i'm an engineer, i've been a computer programming for years, i've lost jobs to people who are not from this country, is it your experience that in general, people who are seeking immigration are more highly qualified than say a native born american engineer? >> carl, the issue in this case is, and maybe this kind of try to frame the challenges, the kinds of engineers we're looking for are getting more and more specific it's not just a software engineer or someone who understands ios. there are -- folks are looking for specific kinds of machine learning pex per tees, specific kinds of expertise specific kinds of experience with back end technology stats so as you -- it's hard enough as it is even in a general case, as

you get more and more precise on the kind of engineer you're looking for, the talent pool gets smaller and smaller and so that's what, i think, the difference might be between the kinds of things you might be hearing from some sectors and what you're hearing from me. >> that's going to be a legitimate debate for american businesses in the months ahead support on the hill is questionable according to some counts dick, another topic this morning is snap. continues to hit some all-time lows off more than 50% from the highs as now facebook and instagram continue to encroach on it'sterritory users under the age of 25 spend more than 22 minutes a day on that platform. that's on case with snap our apparent company is an investor in the company. now there's questions, dick, about the quality of of their ad product, whether or not they truly understand the ad model, what's your take on snap right now? separate from what the stock has done

>> sure, the important thing to understand here about, i think about facebook, particularly with regard to snap, they have enormous market power. they can point billions of facebook users at whatever they build. and i think what's that meant in recent, in recent years is that facebook doesn't have to be the first mover. they don't have to be the innovator. they can replicate and execute and they're extremely good at probably the best, the best right now at executing and they've pointed their guns at pretty directly at snap as you can even see by the way they sort of talk about some of these numbers. the announcement they made yesterday that you referred to seemed to be particularly directed at the snap demographic. when they can execute the way they can with the market power

they can, it's tough world >> dick, what are snap's options? seems to me you can make a scale argument, you can make an engagement argument or make a demographic argument if you're snap and you're trying to get better than the competition here can they make any of those versus facebook and instagram? >> well, it seems to be the case at least anecdotely out here that the folks who were already on snap and deeply engaged are staying there. it's certainly true with my two kids and you sort of hear the same thing from other folks. so the question is, and i think evan has eluded to this in his previous comments, is that a sizable enough audience and i use the word audience intentionally because that's the way the advertisers think about buying some of these products buying size and audience demographics is that a big enough audience to build compelling video to advertisers and build a profitable company off of that

>> do you see more parallels from snap to twitter or facebook right now? >> well, there's -- >> or neither? >> there are a bunch of different ways to answer that. i'll say this about snap i think evan is one of the best consumer product minds out there in the world today i really do, and i thought that for some time. he has had first, second, third, and fourth series of innovations on thesnap platform which have worked some which didn't seem to be working at first and stories and it turned out to be an explosive growth model for him so if hooesz got more tricks up his sleeve and he's had a bunch of them so far that can be a way for them to sort of work their way out of a box they might be getting jammed

into by facebook >> yeah. you have had nice things to say about evan in the past so we're going to watch that closely. >> i have nice things to say about everybody. >> finally dick, mark zuckerberg has apparently hired former obama advisor and clinton campaign strategist joel benson to conduct research for the initiative of course we've had the cross country meet and greets, the barbecues, now this, what do you make of people trying to connect some dots here >> well, i think it was an important point that you made is the foundation it was the foundation that made the hire listen, i don't have any information. i would be surprised if mark were doing this to prepare for some sort of run for political office, but again, i'm not sure. what you might be seeing a little bit of is there had been some frarngly surprising backlash to a couple of marks

previous charitable contribution announcements and maybe this is sort of in service to setting up the initiative to have some sort of a more get out in front of things way talking about what they're doing. that would be my guess as opposed to some sort of preparation for a political run. >> let me throw another theory out there for you. what about the idea that mark zuckerberg, because of his position and control of facebook and it's scale and the way it works is already a de facto head of state he's beginning to realize that he affects the way we communicate not just within this country, but globally and facebook's policies and his decisions therefore ek toe in a what i he's got to think of the the political and social ramifications of everything he does >> you're getting very neil stevenson science fiction on us, but you're right, you're right one of the things when i was --

when i became ceo of twitter, that surprised me was how quickly we started to get to pulled into geopolitical conversations that i frankly had no experience with and very little preparation for mark is almost certainly experienced that orders of magnitude more than i did. and that also might be what you're seeing here is someone to help him sort of navigate that world. both with himself and his charity and the company. >> i'm curious as to why you're dismissing the idea that he might have political am basings. apparently according to to the new york post, the photographer to george w. bush. a lot of these moves are adding up >> yeah, that's fair i'm not dismissing it, i'm just saying that mark is a really smart guy and political office doesn't seem to be particularly enjoyable, maybe these days more than ever, but that's the only

reason i say i would be surprised. it doesn't strike me as a particularly natural extension what have he's already doing >> he also dismissed it himself. >> dick's the guy i want to see running. >> that would all end in tragedy. >> we'll see you soon. thanks so much >> yeah, thanks very much. when we come back, why amazon is betting on the success of the device that can help users find their lost car keys, but first, rick santelli, what are you watching today >> you know, i'm looking overseas and watching deals. watching the aftermath of the bank of england. some interesting things going on we'll talk about them after the break. they are the natural borns enemy of the way things are. yes, ideas are scary, and messy

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the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. i'm scott wapner, top of the hour on halftime key sign for investors to stay along the rally, maybe coming from outside the u.s we're going to tell you exactly what it is plus, chief strategist tony guire is here, why investors need to wait before buying we'll tell you why and breaking down today his one day amazing trade on tesla he's going to tell us about his next move as well. halftime report noon eastern, top of the hour, carl, we'll see you then john and jerry made a darn good trade. certainly did. >> yes, make them buy us lunch, dinner, maybe lunch the next day

too. >> wear our suit made of dollar bills. >> all right let's check in with rick santel santelli get the santelli exchange. >> good morning, carl. bank of england today didn't do anything shocking. though there were a few, few traders i bumped into that thought maybe darrny would raise rates, there have been votes moving in that direction this meaning or last meaning, but that isn't the story for today. the story for today is, is the crown in and by crown, i'm not really referring to anything regarding the bank of england, but the reason i brought it up is because no matter if we're talking bank of england, european central bank, our fed, the bank of japan, their role in many of the dynamics of the financial markets today and how everything lines up goes back to them it's not a good thing, it's not a bad thing. it just is the thing how can you tell just the way equities have traded with all the question marks that we have regarding the economy, and, something happened

at the end of the june and this does go directly to the crown being in at the end of the june, he left an impression that exit was something he was thinking much about. and beyond that, the market yields and boons started to move higher >> and when boon deals moves higher, so did guilts, oats, the u.s. treasury market, everything moved tighter. because the correlations are dramatic the yields are different some highly negative, some not, but the movements are very close to the same as with equities so let's go to the charts. ten year boon deals. now, the important part is, what do i mean by the crown we'll kind of call this move the crown. and this is from the fifth of july to today, okay. let's even give more context to this if you look at the last two tops made in january of '17 and march of '17, they were both at 48 basis points okay the end of june comes, right

around here, and we start to see yields move up and the last time we closed below this line was july 5th at 47 basis points. then the crown started to come in we started to trade above that very significant level these really unique patterns the one thing i could tell you, is that no matter if this comes back to haunt us in the future and it can with higher rates, the reality is by doing this the way it did, it just takes some of the horsepower out of the move and as i look up at board, we're around 222, 223 early this morning, i would say use 225 and ten year as a pivot, and still 48 basis points is a very significant level to pay attention to now that we had a one day violation, tomorrow's friday, the next priority for a close is the weekly close so let's see if we get back to back confirmations at the crown is in. carl, back to you. >> wow, chart work on the boon den has really played out nice

rick santelli at the white word once again as we go to break, look at shares of fitbit, almost a 16% gain here on quarterly loss of eight cents, three cents smaller than expected. sales did decrease atinba tth it's way cko e fl le. we're up two whoooo. you're searching for something. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if... ....there was a single site... ...where you could find the... ...right hotel for you at the best price? there is.

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this is a $50 million bid. we're joined now by chris. >> good morning. >> i'm curious it allows you to find, say, your phone. how instrumental was that in sort of triggering amazon's interest were you working with them on that all along >> we really had the vision to daze take the database of items of remembering where your stuff is and give them to keepers. it's making it easy to find stuff. what's easier than saying, alexa, where's my keys alexa responds, in the living room, at the starbucks down the street we started working on be the skill first, and then the alexa fund came to us after we created the skill.

it's been terrific to work with alexa fund and scale out >> give us some sense of how adoption of that skill has been going. what percentage of requests for information on the location of things are coming in from alexa? >> well, we're continuing to see massive growth of our alexa skill usage. it's actually one of the top skills on the alexa skill store today and we expect it to grow even further as we add more capabilities, such as giving precise indoor location and being able to have different names for all of your items and with our family sharing you can say, alexa, help locate my sister's keys, so you can manage where all items are for your entire family. >> what if i've got stuff that i don't want my family members to be able to find, how do you build in security to something like this? >> so we have all permission based with our family sharing. you can say who has access to which items and you can even do

it for colleagues at work as well so you can set all permissions like you would with other kind of different sharing applications, like on google drive sharing photos >> chris, we're all getting used to having these assistants in our homes. the questions remain about the information that you give to alexa, the things you search for, how much information is then later shared with developers to create new apps. is that going to be a hurdle to get consumers comfortable before these come into our homes en masse? >> i think that we need to make sure that we're respecting user privacy in setting up proper controls there but i'm really excited about the direction of alexa and these other voice assistants as we're entering an age of mobile computing into ubiquitous computing. computing is something that is all around us, always accessible at any given point in time >> does this deal with amazon and alexa pro hiblt yhibit you m

working with google and apple on the home pod, microsoft as all of these other competitors are coming on? >> no. we really just want to develop on the best platform we're really excited about alexa because of their different initiatives they have for developers it's ahead of the competition today. >> because you're able to track exactly what people are tracking is it car keys or is it pets you can put these things -- bikes, you can put them on anything. >> yeah, you can put them on anything, and we initially just saw your everyday essentials, keys, wallet, phone, purse being tracked but now we're seeing things like cars, bikes, pets, luggage for when you're traveling. we're seeing a world that everything in your entire home is going to be tracked everything in that kitchen junk drawer that you have is going to have a tracking device on it or embedded inside it with our tracker program. >> can you track your husband.

>> co-anchors? >> co-anchors? we don't track people. we really are focused on items that's where our passion lies. >> this took an ugly turn just now. >> it does sound useful though i lose my phone daily. >> and your husband apparently chris, thank you >> thank you so much >> ceo of tracker. squawk "squawk alley" is back after this it's a supercomputer. with this grade of protection... it's a fortress. and with this standard of luxury... it's an oasis. the 2017 e-class. it's everything you need it to be... and more. mercedes-benz. the best or nothing.

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dow not showing a whole lot of volatility. one story is not one stock is taking the. >> lisa:'s share of attention. it's a little more spread out today although dow is trying for eight staraight gains s&p not nearly as strong. >> tech, it's a lot of little stocks making headlines. f fitbit is up nearly 15%. cheg up 10 tesla, of course, also doing well after that earnings report.

>> it's because i bought a fitbit this quarter for the first time. >> nice. >> i have it in pink and rose gold cute monitors your heart rate. >> on the call they were talking about a lot of repeat buyers. >> one new buyer. >> conversion. meanwhile, elon musk buying a tunnel boring machine for the potential to tunnel through. let's get to wapner and the half welcome to "the halftime report." i'm scott wapner the top trade, why the record breaking rally could be far from ahead. here's a hint. the reason lies outside of the united states. john and pete na jaaron is with us on set, tony dwyer the chief market strategist. another new high for the dow which continues to hold. there you see it, above