nearly 7% already this year in 2017 certainly a sector to watch and, of course that, dividend play is certainly one of those things that we have to keep an eye on when it comes to the dividend stocks anyway that, does it for this hour of squawk on street let's send it back downtown for the start of "squawk alley." back to you. >> thank you, dom. good morning, it is 8:00 a.m. at alphabet headquarters in mountainview, california 11:00 a.m. here on wall street and "squawk alley" is live ♪

>> good morning. joining us kara swisher, executive editor at recode. >> before we get to kara on the top tech business, let's get a check of the markets the dow is as just hit another record high. it's just backing off of that point. but if the dow manages to close higher, that would be the ninth record close in a row. and the tenth straight day of gains for the dow. certainly the big multinational companies have outperformed. take a look at the nasdaq. it is doing better at .25% coming off a week of losses. we'll see if tech can continue this rebound it is sort of a mixture, a mishmash, mike, of companies that are leading right now you have goldman sachs and apple leading the dow. as far as the s&p 500, tech is strong, consumer staples off that tyson report. we have a lot more earnings to come this week, disney, cvs, time warner and retail later in the week >> nasdaq is up 60% of the volume in advancing stocks

the bread sj good and the nasdaq nod as g the market just holds steady the s&p 500 is hanging around the all time highs the dow getting gains every day. >> leftovers doing well this morning. grub hub and yelp. yelp holding above $40 after that announcement that it's selling e-24 to grub hub >> i think you haven't had much follow-through from the stronger jobs report in terms of higher treasury yields. and a stronger dollar. we saw a little bit of that on some hope for the economy on friday and then it returned to the same old story, better economy, lower unemployment but still, subdued inflation and so the fed can stay slow and the market can just party on >> indeed. moving on. google executives responding to a memo written by one of its employees entitled google's ideological echo chamber the memo which went viral within the company over the weekend attributes gender inequality in silicon valley in part to biological differences and claims "google's left bias

created a politically correct monday owe culture that maintains its hold by shaming dissenters into silence. google's chief diversity officer says the memo "advanced incorrect assumptions about gender" adding that it is not a view point that i or this company endorses, promotes, or encourages kara swisher joins us on this. kara, diversity a hot topic right now. this memo getting widely criticized in the valley to put it mildly. the tone is not that combative s there some degree to which the response to this is confirming a part of the author's point that there is not an ability to, i guess, reasonably debate some of the issues >> first of all, it's the whole essay is just sexist it just is and ridiculous. secondly, nobody shuts up in

silicon valley so the idea that people are silenced, i just -- they like to advance this when they can't say every little thing that comes to their mind because it's offensive. but nobody in silicon valley doesn't get to go on and on and on so that premise, you know, the victimization of white men in silicon valley is exhausting to watch. second of all, you know, it's a to tolerant culture you can't say negative, horrible things about people who are jewish or black and you can do them about women and so they're not -- you know, more and more people are tired of this talk about women and people here who are used to doing it and doing whatever they want to because they live in in juvenile environment are angry because they can't throw their little tan trum tantrums the idea that biology, women can't code is crazy.

but he's allowed to say it but people are allowed to call him an idiot >> the reason that people don't make up half of the technological leadership positions is genetic differences and preferences and abilities. why where is this debate going >> it's going -- this is the kind of thing that happens people are saying, hey, maybe we shouldn't be harassing women maybe we shouldn't be making these comments and some of the people here who literally, they like live in a play pen don't get to throw their food and so like hey, don't throw food stop throwing food and then they get like why can't i throw food i should be able to throw food i have a first amendment right to throw food. of course he has a first amendment right to write this we also have a first amendment right and i'll say this right now to call him an idiot. he is an idiot this is an idiotic premise he can say it. i mean, nobody stops that's the whole canard here is he gets pushed down. he doesn't get to say what he

wants. again, my experience is nobody in silicon valley ever shuts up. and maybe they should sometimes. and maybe they should act like adults and realize you don't get to harass women or say rude things about women at the workplace. they can do it at home in the comfort of their own home by themselves which is typically where these people are >> has said it he subjected himself to the blowback of his colleagues and within google and, of course, the management how do you assess google management's response to this? they essentially disavowed it. >> they v but at the same time, they're bending over backwards to allow this. if you look at the message boards that google people get to put up, there is all kinds of stuff on these they allow a lot of discussion i think the issue is google's trying really hard to say everybody can say everything at the same time, create a workplace that they like and i don't see why there is anything wrong with. that if they say, look, when you come to our workplace, you won't be doing this, this, this and this

everyone else in america has to do that when they go to workplaces only in silicon valley is it actually debates which i think is a good thing. but i think they're definitely trying to figure out if this guy crossed a line you know, it moves into language about genetic ability. i mean, imagine if you replace anything else in here, you know, all the ridiculous genetic canards that go on for black people or jewish people or whatever it just -- it wouldn't be tolerated. this guy would be fired in a second and in this case, it's debated. >> sure it wochlt it reminds me of the bell curve book that was hot back in the mid, late '90s that certainly got debated and to some degree i think it's healthier than some of the lack of debate in all this intersection that is going on at college campuses moving on, as uber continues to search for a new ceo, reports this morning that travis has asked former colleagues whether they support him in a potential shareholder battle this as soft bank ceo son is

considering investing in uber or lyft how date ready these conversations? how much do you think it is board turmoil to come as he tries to keep his whole influence at the company >> you know, we reported that last week. that he said he was going to steve jobs it, meaning, he's going to take over and stuff like that. so he's just -- we reported on this on friday that he hired what i consider a aggressive pr firm to help him, i think, probably in this quest to reinstate him in some way. he talks to a lot of people about this we had -- i had a column last week which was about him trying to do this he's obviously thinking about trying to -- and is brewing about how to get back in power i can't imagine it happening but he certainly, you know, someone told me he could -- if he could, he would take it down to $10 billion in valuation just

to get control of it and then build it back up. i heard that so we'll see i think it's -- i think things are not -- they're still not get ago long the board still hasn't agreed. this is obviously going to make a ceo very nervous anyone who is decent is not going to want to wade into a founder who is agitating to take back over. he's got, again, speaking about growing up, he's got to grow up and start to do what's best for the company and there are many, many employees rather than what is better for travis kalanick. but here we are again, home of the teenage boy in silicon boy my boys behave great, by the way. >> and there's a gender issue, too. i love "the washington post" headline uber search for a female ceo has been narrowed down to three men. does this company need a female ceo to restore credibility >> they need any ceo you don't want a female there just to be a ceo you need a qualified ceo we reported that last week they're down to the three.

but if i was one of the three people and i heard reports like ours and this one, i'd be mighty nervous to get in there and have to deal, have to spend half your job calming him down and making sure he doesn't knife you in the back so i think it's a really problematic issue that goes right to the board i mean this is a super dysfunctional board. and they've got to clean it up again, as i said last week, it's a great product. it's a great product and it's not like it's a yahoo or waning or something like. that it's really terrific. and the employees there are terrific they don't deserve this kind of ridiculousness at the top. >> kara, you think the board is dysfunctional in its own right or just the way it's all set up where you have this found we are a large stake that still wants to be. there it's a tough situation i think almost no matter what the composition of the board would be. >> it's not. facebook didn't do this they had a similar situation with mark zuckerberg

with a lot of power. he didn't behave like. this ee an adult, righthe? thought about the company first. all kinds of silicon valley boards have this structure going dl google did early on. this is someone moved out of power and doesn't like it and can't sit and think about it for a year or two because he thinks he's the center of the universe, i guess. i'm not clear. >> not an uncommon perspective among entrepreneurs. the company will release a new version of the smart watch, apple. it will have lte and can make calls without being paired to an iphone apple's reportedly looking to intel to build those new cellular chips kara, how much of a difference do you think the connected watch would make i mean it's the most successful

smart watch out there already. but has underperformed a lot of people's expectations. >> yeah. it's the best of stuff that doesn't work very well i don't like this watch. i have two of them and never wear them. i think it would help if you could make phone calls without being tethered i don't know if i would sit there and talk into my phone carl certainly would but i wouldn't. >> to your watch, yeah >> yeah. i think doing this is kind of strange. but it adds a feature that is cool and some people love it it will be super irritating to experience in san francisco. i think it's a great feature it's a great feature i don't know if it's going to make it. >> you don't have to talk into the phone, can you walk around and talk to yourself. >> that's something i do a lot, carl -- jon, excuse me >> people are confusing me with

carl today and he's not even here kara swisher, thank you for joining us today >> thank you >> still to come, there may be time to buy the f.a.n.g. heroiny dip. plus, the efforts to retake control of uner's board. wul talk to an early investor of the company. and later, netflix closing the first acquisition this morning what it means for the streaming giant when "squawk alley" returns.

watching the f-a-a-n-g shares this morning, seeing a little bit of a lift except for netflix there. after a rough couple days. they've been a little bit off the highs more than the market has. rob sanderson can put this all in context for us. rob, i was looking at f-a-a-n-g, this is both the traditional definition of f-a-a-n-g that, you know, moses received on the mount and plus apple that would be -- they're down 5% or so as a group from an all time high with amazon down the most but year to date, as a group, they're up 35% so how are we to think about this group, one that's in the midst of maybe a rethinking and a pullback or one that just a roaring leaders of the market? >> i think we're roaring leaders in a strong market and these are some of the best growth stories i think available through investors in any sector. you know, there's a lot of tail

wind behind the long term trends that are drivinging the fundamentals for the companies and the relative valuations haven't changed a lot compared to the market. the market moved up and i think we're just a strong leadership group in a very strong market is really the bigger story here >> if you own these stocks at a big way, rob, do you have to essentially tell yourself, look, the funneldamentals are going to look great once they peak. they're such great companies and operators that it's going to be maybe hard to know when the market had enough of them? >> yeah. i think they're very difficult in term of timing. you know, the buy-and-hold strategy is probably been the best and most successful of course, that's not everybody's investment philosophy i think the trading group that has such strong fundamentals is inherently difficult there is still long duration in terms of growth outlook from our

vanltage point. >> let's put it another way, rob, which is the slowest gazelle in this herd if we get a pullback, which one of these is most at risk >> it depends on the reasons for the pull back. the ones furthest away from earnings tend to be the most volatile and those are amazon and netflix. google is the most resilient but the least amount of upside when things trend up and when investors get enthusiastic there is less multiple volatility in that one so that's how i characterize the differences between the four >> who's most vulnerable from a valuation perspective if we do see some type of broader correction in the market >> yeah. i think the -- again, both amazon and netflix have -- you have to really think about potential earnings some time in the future and there's not a lot of support from the near term valuation perspective. between the two, i think amazon certainly has the most tangible

from i think most investors' point of view the most tangible long term story. netflix is still a little more controversial. you know, that's the one that i like the most. but if the market hits some volatile times, it's probably the one that would come down the most as well >> yeah. netflix also by a pretty wide measure, the smallest. so maybe that means there's more to go there if your thesis plays out. thank you for your time this morning. appreciate it. >> thank you >> when we come back, the amazon effect which can mean a lot of things and what it means for a big week of retail earnings. "squawk alley" is back after this challenge comparing two home equity line of credit products: a traditional home equity line of credit, and a reverse mortgage line of credit. we called this the home equity line of credit challenge. our groups learned that while both products let you tap into the equity in your home to help you fund your retirement, there are some important differences. they discovered that there are options

for how and when to repay the loans, that monthly payments and available funds can change over time and that only one of the products is government-insured. finally, we asked them to choose which product they preferred. product b almost sounds too good to be true. that was a no-brainer. so i'm going to reveal now, what these products are. product a is a traditional home equity line of credit. but the product you overwhelmingly chose... is a reverse mortgage line of credit. never would have guessed it. does that surprise you? it sounds like it does. i wish i'd known about this before i had taken out the home equity line of credit. it's a mortgage, or it's a line of credit, but with flexibility. i haven't heard yet any reason why i shouldn't pick this product. you're in a better position with the reverse mortgage. so the fact that it's a reverse mortgage line of credit, how much do you know about reverse mortgages? my view was very negative. this cleared up a lot for me. i feel a little more informed about the reverse mortgage

than i did when i first walked in the door. i don't think i ever, for some reason, fully understood that a reverse mortgage was in fact a line of credit. i would consider the reverse mortgage, now that i've heard more about it. eighty-five out of eighty-eight people who took the home equity line of credit challenge, chose a reverse mortgage line of credit. take the challenge for yourself, and find out if a reverse mortgage line of credit is right for you.

big earnings coming this week macy's, nordstrom and others reporting as the amazon effect continues to pressure traditional retail's bottom lines. for more, let's bring in co-founder and ceo of comscore your company tracks trends and numbers when it comes to digital

commerce you have news to share with us on this front. what can you tell us >> well, in the second quarter of this year, records were broken again we saw about $103 billion in digital sales. up about 18% versus a year ago so it was an all time record for q-2. and just to put that into context, total consumer discretionary spending grew 5% spending off of a desktop was up about 14%. and then mobile commerce which is surging grew about 34%. and it's, you know, it's causing, i think, an acceleration in the channel shift to digital and i think that mobile say big, big part of that and, of course, the impact then on traditional retail is pretty severe the store closing counts this year are really a problem. they're up about 160% versus a year ago and the forecasts are that it's going to be up about 300% plus by the end of the year with

about 60% more store closings than openings. so it's very interesting times >> well, i wonder if they're closing stores and then taking that money and investing in their online businesses. whether that's gaining traction. just the name i read reporting this week macy's, nordstrom, michael kors, they're trying to move business online it is working? >> well, you know, it's a challenge to compete with somebody like amazon that's been in this digital commerce business now for 20 plus years it might be easier for amazon to get into the off line world, the whole foods acquisition is an example of that than it is for an off line retailer to become kpet in any event on line world. it's a real, real challenge. walmart seems to be doing pretty well in investing a lot of money in their digital efforts

but i think everybody is kind of woken up to the reality that you just have got to pay really close attention to this trend otherwise you're in deep trouble. >> the mobile stats in particular jump out at me. it seems like some retailers like j. crew, for instance, avoided having a mobile app, figured mobile web is good enough i think their experiences were terrible maybe now they're beginning to come around. but is that mind set kind of emblematic of what is wrong with a lot of retailers here? >> yeah. absolutely i think you just hit it right on if you look back at who embraced mobile first and in fact who embraced mobile apps first, it was clearly amazon, ebay was close behind but then the other more traditional retailers really missed it, i think and now you got a situation where somewhere around 65% of all online shopping activities occurred with a mobile device. and if you look at the app usage within that, it's a staggering

85% of the time spent on our app. and amazon is, you know, just an elitist. i think the numbers say somewhere around a half of all the app users in the retail shopping category are using amazon's app >> maybe it sound a little glib, but you could make the case that now that e- commerce is synonymous with mobile that it's a lot easier to walk around the bhal a phone than with a pc? in other words, it becomes ibt grated into the whole experience it's not detracting quite as much as it did when you were sitting athe home in front of your screen? >> no, that's true i think that that's a good point. mobile appears to have taken a lot of friction out of the system but if you look at the trends and in term of the growth rates over time, let's say, the last decade, it's pretty clear that the channel shift to digitsal is accelerating now are the traditional retailers going to be able to get a bigger share of that

mobile commerce? maybe. but i think it all come back to the app. and if you are used to buying so many products at amazon using that app becomes a matter of habit. and it's going to be really, really difficult, i think, for retail -- for other retailers to break that habit >> thank you for joining us. ahead of the retail results. we'll see what they look like, especially on the e- commerce sales. >> seema mody is here. >> we're off the lows. stocks are higher mostly across the day following their best one day performance in almost a month. the german dax though giving back some of the gains from friday's rally there is data showing a surprise decline in german industrial production down 1.1% in june seasonal factors, mostly to blame. in fact, the german economics ministry noting the drop comes after five consecutive monthly increases. taking into account a 1.8% gain

in the second quarter. the ministry believes the upward trend in factory outputs will continue let's take a look at miners rallying today helped by fresh increases in the price of iron ore and other commodities. keep an eye on glencor the company is due with earnings later this week. that could be a pivotal moment for the mining sector. keep in mind the stock's resources index is up 9% so far this quarter that is outperforming the overall european stocks 600 index by a wide margin china being the big story there. let's also talk retail in the uk that is certainly becoming a hot topic. visa is estimating that consumer spending fell 0.8% in july from a year ago that marks a third straight monthly decline and the longest contraction since february of 2013 now visa says consumers cut back on clothe willing, houseware and

travel spending. this is further evidence of rising prices and stagnant wage growth squeezing consumers' pockets there in the uk. some of the retailers next, tesco and marks trading in the red today. moving on to m & a news. germany continuing the push into the u.s. after the kidney dialysis unit agreed to acquire next stage medical that is a it $2 billion deal this stock down just about 1.7%. n. today's trade mike >> thank you very much let's send it back to hq sue has the news jup datupdate >> here's what's happening at this hour. north korea telling nations gathering for a summit that it would not give up on the nuclear ambitions. a spokesperson for the north korean delegation blaming the u.s. for the problem of nuclear arms on the korean peninsula a powerful typhoon made land fall in western japan today bringing heavy rains and strong winds as it approaches more

populated areas. japanese authorities warning of land slides and flooding and mountainous areas would be hit with almost 20 inches of rain. t mobile announcing the unlimited 55 plus plan that means people over the age of 55 can get up to two lines for $60. including taxes and fees but to qualify, one will have to enroll in the auto pay plan. that plan begins on wednesday. and researchers at johns hopkins university have confirmed a link between cardiovascular health and dementia bem diabetes or high blood pressure in middle age had a higher risk of developing dementia later in life that's the news update back downtown to "squawk alley." sarah, back to you. >> thank you, sue. when we come back, netflix inking the first ever acquisition this morning we'll talk to an early investor for what it means for that company. on a programming note, coming up right here on "squawk alley" tomorrow, a cnbc exclusive with jamie dimon, 11:30 a.m. tomorrow

eastern. "squawk alley" will be right back

yooish

my name is cynthia haynes and i am a senior public safety specialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. . two months after resigning as uber's ceo, travis kalanick plotting a comeback. the information reporting that kalanick is a major influence on the board asked former colleagues whether they would support him if a potential shareholder battle this coming as uber continue the search for a new ceo. joining us here at post 9,

general partner at foundation capital which has invested in uber and netflix steve, welcome so you're a current investor in uber you watched travis kalanick. what he is thinking? >> i struggle with it. you know, in silicon valley, one of the hardest transitions to make for any board, any company is transitioning out of founder, never mind a founding ceo. en that is an environment where as you all know i think the bias of history favors companies, technology franchises whereby companies are still run by founders if you look at apple, you look at intel, if you look at amazon and others and so there is a very strong bias towards supporting the founding ceos. i think what you have to do is look deep near what is going on here i think that's what the board did six weeks ago. i think they made the call to make that transition what makes this really hard is

travis doesn't appear to agree with it. which makes it even more difficult for everyone >> our american culture loves a comeback but he hasn't left is that issue? >> he was originally going to be the coo and hire a sceo above him. they decided that wouldn't work for reasons having to do with control. he is now the chairman and he would be the boss of the new ceo f you're a great candidate, the first question is going to be are you serious about letting me run this company or am i just a puppet for traffic snis. >> there are constant reports and speculation to make matters more complicated that soft bank might take a stake, buy shares from existing shareholders in fact, they did address this today for the first time publicly after earnings. let's listen to what they told reporters. >> the interest we're discussing with uber, we're also interested in discussing with lyft. we have not decided which way.

but u.s. is very big market. so most important market so we're definitely very much interested in the u.s. market. so whether we decide to partner and invest into uber or lyft i doement kn don't know what will be the end result. >> obviously there is interest from softbank. how does that complicate this manage me management issue and control and ownership of the company >> i say it's a twofold thing. on the p positive side, the naekt wafact they want to invest at a valuation up from the last one is a snaignal of the unconstraid market here. they're in a great position in the market i think the challenging part is that it changes the board dynamic. so what you have now is

potentially a situation where new investor who is asking for of course a board seat, certainly there will shareholder votes associated with that they can complicate the situation even more. so you have travis controlling a majority of the board today. board seats through the common shareholder seats. this could destabilize the situation for those who sort of feel like he needs to be replaced >> okay. netflix meanwhile making the first ever acquisition buying a comic book publisher, drawing a parallel to marvel at the same time julia joins us with details. julia? >> jon, netflix wants to buy a popular comic book character to turn them into exclusive content, buying miller world, the comic book company buying kick ass and old man logan they'll bring the 18 character franchises to the company with exclusive films, series and kids shows. miller world will continue to publish new stories under netflix. netflix noting that three of those franchises wanted, kick

ass and kingsmen have been turned into movies that grossed $1 billion worldwide and it sound like many more deals could come netflix saying "the acquisition, the first ever by netflix, is a natural progression in the company's effort to work directly with prolific and skilled creators and to acquire intellectual property and ownership of stories." no comment on just how much miller world cost. the ceo said netflix will spend around $6 billion on content this year and that he wants to own more of that content rather than licensing it. guys, back to you. >> thank you, julia. all part of a netflix growth strategy which includes partnering with big cable for set top box integration. steve, we've known for a long time that they're spending big money on content now they're spending money on ideas. int int intellectual property how much does that change the game >> it changes game in a big way. if you asked reed what is his

content strategy been over the last handful of years, he's basically choosing from mostly the same set of content creators, most same content that others have access to as well. he is willing to pay more and have better taste or his team may have better taste. fwhut is going upstream. this is saying, no, we're not only going to choose among great content, we're going to start to produce it ourselves and i think what this means is, you know, he's going after disney disney owns marvel warner owns d.c. he wants to own his own franchise, own the intellectual property >> but you just said that it's a catchup move, right? so essentially this is not some kind of novel strategy to own the whole chain of intellectual property, sfligt what is the advantage that netflix has aside from being a studio with an extremely high valuation >> yeah. so mark miller is -- he's a towering figure in comics. most prolific creator really of the last 10, 15 years. and so i think again if you look

at where does this creative content come from, it comes from those kinds of studios i think locking that down and having access to this -- and it's edgy stuff. there is a nice fit with netflix's strategy i think it was -- >> a narrow audience and can you still actually leverage that >> the same way when disney took o out pixar. this is the same strategy. >> does this mean we'll see more acquisitions from netflix? >> this is the first one in 20 years. >> which is hard to believe. >> it is hard to believe, yeah i suspect we're going to see more they're cutting more deals with cable companies is a concession that netflix is now a force to be reckoned with they have 100 million subs we know half of those are international. this is the first global tv network and as julia said, they're spending $6 billion this year that's more than double what amazon is and far more than anyone else. so i think is just another big,

big chess moof fve for reed and team >> finally, steve, you're out with a new op-ed you where i that we're entering an age of am bbient computing. you mentioned in your op-ed, we touched on these before. how with we going to see that over the next few months is this connected? apple watch a piece of it? >> so the beauty of this is when technology is really intergrated in our lives and in an appropriate way, you often don't see it what i mean by that is it becomes sort of am by enbient. it's great technology but zinld more easy to use when he started writing the column 25 years ago was personal computers are just too hard to use and it's not your fault. so when i see technology that's are well intergrated, you actually don't know what is underneath the covers. you're actually using a great product like an apple watch or a waze or the next iphone 8 and

you're experiencing technologies without noelg what knowing what the covers that is bringing ennearigineerin emotion together we have technologies i don't know if that is the case in apple watch we'll see what comes in another month. i'm sure it is the case in the iphone 8 and beyond. >> but does it -- you mentioned the 8 and the watch. does it not suggest that you are going to be moving away though from the gadget from the hardware from that device that is your touch point of everything >> so i think the watch enables you to have conversations with an air pod instead of having the phone in your pocket i'm not sure that is the use case here. i think the watch innovation is more incremental what i see coming in the iphone 8 is more disruptive what is integrated with the ar kit and start to look at the machine learning that is capable of being done on the end point devices, for example, doing image recognition of the phones, of your photos on phones that, is some stuff that is coming that i'm super excited about f you're watching the stuff particularly with ar and br,

this is going to put that kind of capability in the pockets of 250 million users in a year and say, wait a minute, there is a technology that just took over had it right under the covers. and, yet, you know, it was in this product the iphone 8. does that mean that apple is the ambient computing king >> king? maybe i think they're certainly trying to position themselves. the home pod is part of this again, when you look under the covers of these products, there's deep technology and yet the user support of experience them in a much more user centered way so i think apple really is -- they're the poster child of this of course, they've been doing this for decades the rest of the world is catching up. our expectations and users have never been higher. we want this not just from our apple products, we want this from every other experience we have and that's afoot right now >> i wonder what happens to security threats bhu can't see the device we have to leave it there now for now. thank you for joining us steve, also the author of the new book "the way to design.

coming up, tesla making news including a new price for its model x suv. we'll geoff yive you detail comp fifrme first, rim, what you are watching >> i'm watching and listening to all the anlives that think europe and merging markets might be better than the u.s but they kind of forget that we're standing on top of central bank policy. you know that, does say 6'2," but maybe if i wasn't standing on something it wouldn't be accurate, would it we'll talk about that after the break. ♪ 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,

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we're getting cooperman's stock buying strategy. halftime report top of the hour, noon eastern again, with omega advisors leon cooperman. we'll see new just a bit >> we'll see you then, scott thank you. we have breaking news from the st. louis fed. let's get to steve liesman at headquarters with that >> thank you st. louis fed president jim bullard saying only sees very small inflationary effects from lower unemployment being the first fed official to speak since the friday jobs report unemployment ticked down unemployment does not signal higher inflation i want to show you a direct

quote from the st. louis fed president. even if the u.s. unemployment rate declines substantially further, the effects on u.s. inflation are likely to be small. as a result, he thinks current policy rate -- the current policy rate is appropriate for the current economy and he questioned whether inflation is indeed turning towards the fed's it 2% target sarah, an hour ago we were asking the question how the fed would react to stronger job growth and lower employment rate, it would be spooked by inflation? bullard not taking much time in answering. an hour later, you know what not very much. the question is whether other fed officials feel the same way, sarah. >> yeah. so it begins now they really have to debate this inflation predicament >> thank you >> right >> yes steve liesman. now let's get to rick santelli and the "santelli exchange." >> thanks, sarah we had very smart guests on today. and i was taking some notes. i was thinking to myself, when we try to evaluate things like rich or cheap or the notion of

are markets fairly valued? are they sustainable forward earnings, multiples, sectors, it gets a very -- to be very complicated and quantitative i like things that are quantity take theive. it is quite important. if you punch things into a calculator versus pontificate, you can have better discussions and have more facts at your disposal but when it comes to one issue, i find that everybody seems to forget we used so many analogies over the years because this dynamic has been around and it's not going away we used natural gas. you forget natural gas in the room then you go outside and you realize when you could b realize you when you come back in, what you assumed was normal is not normal. when it comes to markets, it's all about when i was standing on the box. count tell how tally was i think the same is true for economies. economi economies basically have been elevated by poll sichlt aicy.

and policy is different in partsst globe. the ecb has a dufrn policy with the exit and the central bank here bank of japan is still different. bank of england i'm still trying to figure out. but many calculators forget and they create base lains of fundamentals that overlook anything exogenous, whether policy is added, fibbed about when it's going to disappear, whether it ever disappears, or whether central bankers actually stick to a timetable so guests today talking about u.s., 18 times forward wernearns and even with the discrepancies of the euro currency, still may be better investment possibilities in europe. or emerging markets. well we know what happens to emerging markets if central banking policy gets more aggressive and less accommodative. it hurts so all of these things seem to almost get forgotten over time well, i don't want to forgot them i can't tell you, even today, we had sarah from moody's and

moody's is nervous about the future they've got a big assumption and i'm not saying it's not correct or you don't even need to be -- you have to be in the assumption business if you're handicapping the global economy like the rating agencies their thought is, over the next five years, you could see medium term rates almost double i heard that five years ago, and they haven't almost doubled. but they could be right. the point is, is that all of this math is very good, except for it forgets one thing is it really built on a solid foundation and that's the issue and you need to be on top of that because policy can change like that mike santoli, back to you. >> all right, rick, we will try to stay on top of all of that. appreciate it. straight ahead, a busy morning for elon musk and tesla including a new price for the dex v. details after this because, when you really, really want to be there, but you can't. at cognizant,

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that cash. in the second quarter, the cash burn was $1.2 billion. it ended the quarter with $3 billion. and the second half of the year, the capital expenditures will be $2 billion so this will give them greater cash cushion at the same time, tesla is cutting the price of its model x luxury crossover utility vehicle by $3,000. that will bring the base price down to $79,500. model x orders, by the way, if you consider the last ten days, the company said once we introduce the model 3, we saw an increase in orders for the model x and the model s, though the company didn't give specific numbers. year-to-date, their sales have been, what, about $21,521,500 o model x. there is a theory that model x numbers will go down because model 3 numbers will increase. but keep in mind, the luxury suv market is saturated right now. if you want to spend over $75,000 on a crossover or an suv, plenty of choices out

there. that's the competition that model x is also facing in terms of generating orders >> all right, phil, thank you very much for the update tesla shares up just a tad, up big over the last ye, rearmo than 50% "squawk alley" be right back

welcome back as we head toward noontime, a number of small tech stocks doing well, but one big tech doing the best is alibaba, up nearly 3% after news that it's teamed up with marriott to offer booking options to chinese travelers. perhaps expanding their horizons and the types of opportunities they offer >> yeah, i mean, the outbound chinese tourist market, obviously, tremendous, and this seems like a little bit of -- what a crazy, great stock, alibaba has been this year about a $400 billion market cap. it kind of gets lost in the shuffle when we talk about the other megacap tech stocks that have done so well. >> add another "a" to the f.a.n.g., i guess. and another "n" for nvidia michael kors starts it off tomorrow and same-store sales are expected to be down nine this has one of the cheapest valuations in all of retail, which is saying something right now. it's trading 11 times earnings is that a value? >> and the pattern with earnings

will be the setup. if stocks are beaten down, there's a chance it will spring higher so see if that plays out with retail >> some good opportunities for retail, if they can follow that trend, then. >> that's the hope >> that's about it for "squawk alley. right now, we're going to send it back to headquarters. scott wapner and the half. welcome to the "halftime report." i'm scott wapner we begin this hour with the developing battle over adp and a hedge fund manager, speaking out today against bill ackman and his ambitious plans for that company. leon cooperman served on adp's board of directors for nearly 20 years, and says the company doesn't need ackman's interference mr. cooperman is here with us live on set today. it's good to see you here. also with us, for the hour, josh brown, jim lebenthal, steve weis kevin o'leary is here, the chairman of oshare