early september because why? because his name is robert lee >> ridiculous. >> i don't get it. >> ridiculous. that's it, thanks for watching power lunch. >> good to have you here. >> closing bell starts right now. they are not ridiculous. good afternoon, and welcome to the closing bell. i'm kelly evans here at the new york stock exchange. >> shutdown fears shake stocks president trump saying he's willing to shut down the government if he doesn't get funding for the border wall. could this put the administration's growth agenda in jeopardy? >> and samsung unveiling it's new galaxy 8 phone today should apple be worried? we're going to show you the phone and features and you decide coming up wells fargo gives warning to employees about more bad news in the pipeline we'll have all the details >> if only someone who covered the banking industry can tell

us -- oh wait. >> covers the banking industry well was here. >> that works too. we'll get to that in a little bit. we begin in washington with the rhetoric about a government shutdown how much time do we have at this point? >> well government shutdown by the end of the september if they don't pass spending bills. we got a slightly different take between last night and today between the president of the united states and the speaker of the house. listen to the president last night at a rally in phoenix talking about the possibility of a government shutdown if he doesn't get funding for a border wall >> build that wall now the obstructionist democrats would like us not to do it, but believe me, we have to close down our government, we're building that wall

>> little bit of a different take we'll see where the rest of the republican party falls on the issue of the government shutdown over boarding spending there are a lot of republicans on capitol hill who would like to see something done on the issue of the border in the spending fight, but there are a lot of other republicans who feel like the republican party because it controls the house, the senate, and the presidency will get the political blame if there is a government shutdown on their watch they might very much like to push far clean spending bill we'll see where that could be. >> we saw a big rally yesterday on hopes that people in washington were making progress on tax reform. a little bit of a sell-off today off the back of his comments from the president whooils he was out on a campaign-style stump speech do you think there's something to be taken from that? the market cares more about what's happening actually in washington and doesn't believe quite so much anymore the threats it had made and when it's a campaign. style event from the president >> yeah, look, i think the market very much is attune to the prospect for tax reform because that's something that

goes straight to the bottom line of corporate america and will affect stock prices. and so they're trying to gauge the likelihood and any time they see the needle move one way or the other on that, they're reacting it. it's a tough thing to do in a normal year in washington. and this is certainly not a normal year in washington. we have a republican president of the united states at near warfare and the president making comments that have provoked a whole lot of criticism across the board of break with corporate america symbolically like we haven't seen in any other administration there are a lot of things going on here that could impact the prospect for tax reform. that said, republicans on the hill have a very vested interest in passing a bill to cut taxes this year because it's something they have promised they're own constituents and if they do that on their own even, the president's likely to sign whatever they send him. >> eamon very quickly, is the

debt ceiling hike and the government shutdown directly related on the same timetable or separate >> they're on separate timetables the debt ceiling is one of those ones where it's a little bit difficult to figure out exactly what the day and hour is where they need to pass it in the treasury has all sorts of exotic maneuvers it can do financially in order to stretch out the need for a debt ceiling increase. they're both likely coming in september. there are similar issues on a similar time frame that's going to be two separate fights and they are two very politically tricky fights and they have to happen at a time when that this town is pretty riled up. >> thank you very much for that. and be sure to tune into power lunch tomorrow, 1:00 p.m., they'll be joined exclusively by house speaking paul ryan let's move on to our closing bell exchange today. we've got cole smead, fred lane, division of raymond james, keith blisz and holly lisz from btig good afternoon to you all. fred, let me just start with

you. are you concerned by the comments from president trump late last night about threatening a shutdown >> well, i'm always concerned when he opens his mouth to be honest with you, because usually nothing good comes of it and it's not good for markets. you know, this has been a president who was not focussed on his stated agenda and he started off with health care, which was not the low hanging fruit. and he's, and he's moved from one distraction to another, and unless and until he can pull the republican party together or at least the republican party, if not the congress as a whole, i think we're stuck with inability to get things done >> keith, why do you think the market's down today? >> i think there's a little bit of what fred is saying is true, but one thing that was instructed last week with the trade and the ell-off that we had, you know when the market's at an all-time high, it's going to ride on a knife's edge. any blip out of washington, any little noise, which we get a lot of these days will have the

effect of taking it down or lifting it up like we saw yesterday when the news of tax reform came out. i think what the president said last night about the debt ceiling fight was really red meat for his base. he needed to -- we all know when presidents get in trouble, they get out of washington. that's what he did last night and fired up his base. i am going to watch with curiosity whether it actually comes down to a fight. we've seen these things before, they take it to the 11th hour. the market just doesn't want this instability anymore and that's what you're really seeing here. we're going to be stuck in this pattern. we're not selling off that hard, but we're not going to rally any time soon until we get rid of the chaos in washington and we get the agenda moving forward. >> holly, is stability something that we will see at jackson hall over the next couple of days switch the focus to the bull market and the dollar slipping again a bit today. >> that's a good question. and a lot of people are waiting to see what janet yellen does. she's going to be talking friday morning. they really want to see whether she's going to toe the party line and continue with the that

they're going to reduce accommodation or if she actually gols more towards what we saw out of the minutes where they really questioned they analysis of inflation and why they are not seeing it pick up in here. and i think as long as you see that divergence, they're not raising rates aggressively, although you may call four times in less than two years aggressive, but i don't think they're going to raise it aggressively, as a result of that, we're probably going to see yields drift lower one yellen may be done with her term come the new year, and she may not want to rile the markets up too much by being more aggressive so given that case, we could continue to see yields drift lower. i think you could see the ten year at about 182. >> wow below 2% would raise some eyebrows cowboy smead, you have names here that are interesting as a housing play you know we spoke with toll brothers yesterday, the stock didn't respond well to their earnings, today home depot and low's are deeper so what's your prognosis there

>> yeah, trying to guess the short term moves in the housing stocks or the month to month home bill activity, that's almost impossible. i would say kelly, so people really shouldn't focus on those kinds of things. where are we going in the housing market is a much better question and, you know, pose that against, you know, how much is housing going to grow versus what the average business is really dealing with right now which is that what is amazon and the dr. evil develop m ganger doing to their business over the next three years it's a different conversation. and that's way bigger than any trump conversation that's what's dominating business conversations everywhere >> that being the case, why is lenar one of your picks here >> because that's something that other people can't do. in other words, what happened in '08, '09 with the contraction in housing, it decimated the industry, companies went bankrupt in that space, and you're in a situation where the market is completely dominated by handful of publicly traded home buildings, lenar is coast to coast, the depressed housing name of is easily accessed by

that and in comparison, if you want to go out and own the index or the market, deal on a border conversation are taxes ever going to go down? that's an index problem. hey, what are our markets going to look like in two years? >> keith, we've seen a bit of a pullback today, we discussed the reasons in terms of political factors, is that an excuse to buy the market otherwise are you content with the earnings we're seeing coming through? >> i think the second quarter earnings picture was satisfactorily to the market players. and we actually have the market oversold at this point in time and we would expect a bounce, neutral levels for me on the s&p 500 right now would be 2480, 2490 i think we're going to struggle to get there one thing i would point out, looking at the transports index which kelly knows i look at a lot. accelerating environment is when it really becomes more germane to the market, but transports continue to get slammed. when you're taking a look at planes, trains, automobiles, planes, and trains are not

cooperating today, and until they get off their back and start moving forward and get back above their trend lines, this market's going to have a tough time moving forward, regardless what have goes nonwashington. >> and fred, you're focussed more on the growth companies, you might be able to get on sale, are you picking up any bargains here? >> absolutely. i think it's important to distinguish between a trading mentality and a long-term investing mentality on the other hand, we're not putting a lot of money to work right now because we basically think that the turmoil and chaos is actually overshadowing the good fundamentals we have strong s&p earnings growth -- >> right >> good gdp growth we have a lot of positive factors going on having said that, the overall environment i think is getting in the way and so, you know, our view is this no rush to take advantage of the situation having -- >> fred, what are some of those names? the names where you specifically think you're getting growth

companies on sale right now. >> i can't answer, but i will say this, it's all secular growth driven. we have focussed on health care, we focus on wellness, we focus on the internet of things, mobility, the things that if you look out over five to ten years, defense and aerospace are examples as well aerospace component ri in particular, we focus on those companies that are favored by long-term trends we don't to want make bets we make long-term investments. i think cole's comment earlier is an interesting one because i think housing is going to be in all likelihood a long-term growth opportunity as the millennials, i think, will leave the city, have kids, follow the same pattern, even if delayed from the baby boomers, so, i think cole's on to something there. >> no comment over here. thank you all for joining us today in our exchange. appreciate it. cole, fred, keith, and holly we've got just under an hour left until the bell. we are down by a third of 1% and

better than that for the nasdaq and s&p down just a quarter of a percent. samsung unveiled it's galaxy note 8 today will the new design be enough to convert iphone users to samsung customers. we'll show you the phone itself, next and later, watch out amazon, wal smart joining forces with another tech giant we've got the details on their new partnership next and we to want hear from you. reach out to the show via twitter, facebook, or via e-mail clo you're watching cnbc, first in business worldwide hey you've gotta see this. c'mon.

no. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. welcome back to the closing bell lost dropping today after reporting a miss on earnings and revenue. this morning the retailer also lower it's outlook for the year

as it anticipates investing more on marketing and service for customers and stores lost trading at the moment down some 4%. it was down 6 or 7 earlier in trading. >> and taking home depot down as well there's a whole nervousness around that sector samsung unveiling the galaxy 8. i want to hear all about the features, seema. >> hey kelly, samsung is really trying to stand out from it's competitors with the launch. galaxy note 8. and the big takeaway is the size guys, this is a big phone. 3.6 inches one of the largest phones -- excuse me, 3.6 inches. one of the largest phones on the market much larger than the apple iphone 7 plus which is around 5.5 inches this is at 6.3 inches. getting my numbers switched around other functionality that a lot of people are talking about is the phone. and the actual camera. dual sensor camera, we're talking about not one, but two

123 megapixel cameras on the backside of the phone. this is supposed to dramatically increase the quality of pictures that's something that the samsung executives really tried to stress during the presentation today don't worry, there's also a front-facing cameras for when you might take selfies other functionality to focus on is the storage 64 gig ga bytes up to 256 gig ga bytes and i want to point out the pen. this is the enhanced s pen which has pressure sensitivity, great for taking notes, and you know one of the big points is the size which will be a big point of discussion, especially ahead of the iphone 8 launch which is expected to happen in september is whether a bigger tablet or device is exactly what the consumer wants executives at samsung say, it is what the consumer wants. it will increase the functionality, also they have the dual window mode which allows you to showcase two apps at the same time so right here on my phone, i

have my e-mail and calendar on the same screen which means you don't have to flip back and forth. back to you. >> i love that >> seema, thank you very much. can you imagine if they made a phone without a selfie camera. it wouldn't sell a single copy >> please, somebody, please. >> seema, thank you very much. for more on what the debut means for samsung and whether this could erase the bad memories, let's bring in ed lee. afternoon to you >> toompb you guys yes. >> to me in a way, it's almost the android oreo software that's quite interesting here it has functionality that i think sounds quite useful. what about the hardware piece of this in terms what do you think? where is it pushing the edge on innovation >> 6.3 inches, this is huge. and i actually was blown away by the price point, nearing $1,000. it's getting more and more expensive. it also tells you at the same time, you know, smart phones are basically cut into computer sales. no one really needs a computer at home -- >> but when it's $1,000. >> it's that big, you're not

going to need a laptop or tablet or even a desktop at home. so it really is going to be your single news device for pretty much everything. i think that's what they're banking on i think moving passed the troubles they've had in the past, you know, they're doubling down, they're like this is bigger, it's more expensive, it's faster, they're really pushing the envelope in terms of price, but also the hardware upgrades. >> clearly they've got this out before the new iphone, they front run that a little bit. what about the hardware availability and the component availability ahead of the apple iphone coming out. clearly they'll be competing in -- and samsung's got a better control of it's -- >> they control their part of their supply chain right. in terms of parts also for the iphone i think they've got a better read on that they've always front run apple in terms of when the next -- they were always a few months ahead, six months ahead -- >> don't you think their technology quite simply is ahead. apple's big hoopla over the launch feels like it's them catching up to samsung, and it tells you how strong the u.s.

market is. people are still excited about that. >> they're still die hard samsung fans for that matter or android if you're really into the operating systems. so they're going to be fine. i don't think there's, you know, they took a blow with the battery problems, but i think they've revamped themselves in a way that made people feel excited again. >> if it weren't for the fact that people already had the apple ecosystem and were kind of locked into that, just on their merits, which do you think is the better phone today the latest apple one or the latest samsung >> the samsung is the better phone right now. but we're talking months, right. so i think a lot of apple people are waiting for the next one i think that's going to be -- they've always front run apple in terms of getting the newer device out, a few months, six months ahead of time i think that's part of the same playbook i'm surprised that, you know, again the price point, i think, like i said, they're really starting to harp on it's just better hardware. we're back in the game >> and stick with us we're going to talk tech in a moment in the meantime, let's go to dee who's in austin where wholefood

voted today to approve the amazon deal. give us the latest >> here at whole foods flagship. the quarters is about 30 shareholders showed up and voted to approve the proposal from amazon, amazon has said it expects to close the deal later this year. and source familiar says that that could happen sooner rather than later but at the meeting, there was no q & a, no more details to come out. there's still a lot of questions about what a wholefoods under amazon is going to look like now there's been excitement and concerns, from both sides, from lawmakers, from investors, customers, suppliers, and some of that was evident when we talked to customers here yesterday. have a listen. >> in terms of like making sure that my food is going to be sustainable. all of the reasons why we shop at wholefoods, i'm worried that's going to -- whether that

will maintain itself or not. >> like i said, wholefood, they're both great great corporations great companies. so fwl interesting to see what happens in the future. >> reporter: now guys fwhb terms of regulatory approval and some of those anti-trust concerns take a look that the chart, it shows you this ian with wholefoods, amazon would have had less than 2% of the u.s. food and beverage market last year back over to you >> i mean, do i get to call you dee, or is that kind of like you guys have the london -- >> it's just a our thing >> thank you very much >> we'll let you in. >> i got to tern i knee thank you. other amazon-related news. walmart is teaming up with alphabet could it give amazon and it's echo shopping experience a run for it's money >> let's bring in colin sebastian and ed lee who is still with us, sir, let's kick it off with you, ed, in terms if anyone is really going to be

beat amazon, is this a marriage made in heaven >> i don't know if it's america made in heaven i think it's a smart partnership. it's, you know, one of the biggest sort of retailers out there and google dominates in tech it's a smart partnership in terms of you want these guys working together at the same time, in terms what have they're producing here, you know, it's not quite the same elegant solution that amazon has with it's echo you know what your account is, it all sort of is embedded in there. this requires more sort of, you know, handling on the part of the user to make it work it's a smart idea. absolutely >> feels like a necessary one. if there was going to be a counterweight to amazon in the marketplace, can google if it effectively partners with the rest of retail america, deliver that >> well, certainly as the technology power house with all of the ai that's required for voice recognition and voice technology and now an increasing install base of google home devices. they are positioned to compete with amazon in this respect.

and so part of the deal with walmart is to increase product selection, create more fulfillments, capacity, and infrastructure, and also integrate the user base. so for google, it looks like a very good partnership to help ratchet up their ability to crack into the local commerce and advertising market more effectively. >> so colin, is this a more important deal for google's voice offering than it is for walmart's retail offering? google needs to have relationships with retailers quite frankly google has relationships already with most retailers. so on balance, i'd say it's likely more important for walmart, but certainly a necessary piece to the google puzzle >> ed, how much do we think at the moment the echo is being used for retail? >> that's the thing, are people really using it to buy stuff

not that much. it's a nice kitchen device, setting timers, what time is it, the weather. i think as it gets sort of developed, ai is incorporated in these things and they say hey, we're running out of paper towels, order that soon. i think that's sort of potentially the killer app in that in terms of as an ordering device, but again, it's like i don't think that's going to solve walmart's e commerce issues i think it's a nice thing to have i don't think it's a big step change for them in terms of selling stuff online >> granted it's a steep learning curve, apple itself used to be late to the market and come out with a killer product. >> right but it's also apple. they're really great at what they do. e commerce is still a really new era for walmart. they have mark laurie, the executive who came over and he had experienced an e commerce. anything he gives them a big leg-up in terms of figuring that out. you know, this deal has his fingerprints all over it, you can tell and again, it's a smart move, but it's a long way's off from

solving the issues >> colin quickly, which retailers walmart aside, do you think should scramble to get themselves on this product right now? >> well, conversational commerce is still in the stages, but in addition to walmart, i would assume that any big player target for example would also need to fall very quickly. and google is already a partner with wholefoods. google itself needs a replacement for their wholefoods partnership as well. >> thanks for joining us colin, ed. you know i joined amazon prime only this week >> you've only just come to the u.s. you're kind of late to everything >> amazon prime does exist in other countries. >> i can't offer comment on why you're such a late adopter then. >> there you go. >> i'm sure you're finding it quite satisfactorily >> how many items do you think you've ordered >> two >> okay. >> we need to pick up. >> you have about 10,000 to go 35 minutes to the close. s&p's down five, russell down

just one point and how about shares of at firm wpp? we're going to tell you what's behind the drop and who they're blaming for that 11% decline next and later the ceo of wells fargo sending a warning to employees. ate wh hsaid and how it could improve the stock's future performance. that's coming up where's jack? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.

welcome back shares of kree are lower the lighting products manufacturer met bottom line

expectations even beat on revenue, but did offer weak guidance for the next fiscal quarter. that's dragging down the stock trading just above 22 bucks. >> time for a cnbc news update, good afternoon to you. >> hello guys, here's what's happening at this hour, everyone both pro and anti-trump demonstrators gathering in reno as president trump addressed the national convention. anti-trump protesters chanted lock him up, while supporters counterered by chanting make america great again. house speaker paul ryan commenting on the president's threat to shut down the government if a wall with mexico is not approved speaking ryan saying a shutdown is unnecessary and not wanted by congressional lawmakers. his thoughts coming today in oregon during an event on tax reform at intel. an investigation is under way at brandice university to e-mail threats sent this morning. students and the dorms were moved temporarily to plying fields no word on the contents of the

e-mail, but it is important to note that this is a school rooted in jewish history and caught on tape police are trying to track down a shoplifter at a louisiana liquor store surveillance video shows a woman last friday stealing several bottles of booze it appears she wasn't going to let much stand in her way. there is a $300 reward for information leading to that suspect's arrest you are up to date that's the news update this hour kelly, back downtown to you. >> all righty, sue, see you later, thank you very much that's sue herrara i'm on the floor with steve grassly as we head into the close. you're talking about the mcconnell story. do you think that's a positive >> i do think it's a positive. i think we were worried about, you know, when you look at politics, you always think about gridlock but you never think about gridlock coming from the president's own party. i think this was -- >> this market still likes gridlock >> i think the market -- the market -- you tell me. i think the market is afraid to a certain extent of president

trump, on some days, not all, because we have seen the market move progressively higher. >> the market shares the president's agenda and rallies when it's moving forward >> it does and we haven't -- even with nothing moving forward, we have a moving back of regulation. so, in a game, you have less regulation going forward is that fair >> yeah, that is >> even if he doesn't pass anything with tax reform, we're still in a lower regulatory environment, lower regulatory head winds going forward >> it's funny you mention that actually, eamon has news on mcconnell. bring that to us >> yeah, kelly, that's right, we have a new statement in here from mitch mcconnell, the senate republican leader, the majority leader in the united states senate this statement very much sort of papering over some of the divisions that we've seen between mcconnell and president trump in recent days including that "new york times" story which suggested that mcconnell was concerned that the president wouldn't be able to salvage his presidency now the statement from mcconnell saying the president and i and

our teams have been and continue to be in regular contact about our shared goals we are working together to develop tax reform and infrastructure legislation so we can grow the economy and create jobs to prevent the government depot to advance our priorities in the short and long-terms that mcconnell also going on here to say, we have a lot of work ahead of us and we are committed to advancing our shared agenda together and anyone who suggests otherwise is clearly not part of the conversation so mitch mcconnell there very much saying in strong terms here that he is working with the president and with the white house on their legislative agenda mcconnell here also not denying any of the reporting in the "new york times," including that august 9th phone call that the "new york times" said devovled into a profanity-laced shouting match between the two men. mcconnell saying he's prepared to work with the president and is working with the president on that legislative agenda that you guys were just talking about in new york >> thank you i was just watching for any market reaction, but the zou barely budged, steve.

>> it has barely budged. and if you look -- if it depends on which glass you want to look at right now half empties, half full, is it cracked and someone's going to hurt themselves. >> you're telling me that the market is not pricing in the idea that the big -- >> pricing in zero it's pricing in zero and yet, and the reason why that's my premise is yesterday when we hear a blurb, a headline of tax reform, the market rips higher so there's absolutely nothing that's being priced in, so which leaves the risk to the upside still and we're at the upper end of the trading range, we're close to all-time highs. i think it's still favors them. >> all right well-timed thank you very much. >> thanks. will >> just under half an hour to go until the close. as you said, we haven't lost much more ground down about 0.3%. worse performing sectors industrials and consumer discretionary. the only sector that's up is energy, energy up half a percent, oil price is up just over a percent today william sonoma gearing up for earnings at the top of the hour

and we'll debate the best way to play the housing stocks right now. first the world's largest appetizing firm taking a hit what wpp's ceo says is changing the ad game when we come back. data od and live tv. the channels you love. your favorite shows and movies. making your iphone into more of a... oh my tv is ringing. hey...i'm in the middle of a...a second iphone from at&t? okay! right now when you buy a new iphone 7 from at&t you'll get a second iphone 7 on us. and power both with unlimited data and live tv.

welcome back here is one spot in particular, kansas city southern which is dragging that index down as uncertainty over the fate of nafta looms. the transportation holding company seeing it's worst day since april. often seen as a proxy for that trade agreement. >> chairs of advertising firm wpp sinking today after missing earnings expectation and cutting it's full year sales outlook the world's largest ad firm citing a drop in demand. the wpp ceo discussed this on squawk on the street >> i think they're at three forces at work here. first is digital disruption, not a threat to the industry, it's an opportunity of the threat taking positions, particularly in packaged goods company which have put them under short term pressure and then the third force here is the zero-based budgeters who are again, using low-cost to

capital money, cheap money which we've had since layman started to acquire companies and take positions and companies. again, putting them under short term pressure. >> did he mention amazon as well >> he talked about amazon, google, and snapchat the real reason is because of the cut in guidance for the rest of this particular year. and that wasn't really down to those structural changes he's less positive on growth he said q2 was worse than q1 -- >> they put their guidance down because he has a lower gdp forecast >> this was a much less bullish forecast and uk was strong, surprisingly, despite also taking into account, particularly the u.s. which is their biggest market. this was a cyclical disappointment as opposed to structurally structurally they are actually, you know, slightly hidden from the changes in the area. they've got exposure to google

is the biggest thing -- >> but i think in terms of where are those ad budget comes from and other brands like that where he said, you have activist pressure they all want them to look like 3g with no marketing spent basically. and, you know, and then you add in the amazon factor which is putting pressure on the brands and they're offering private label. >> i think that is a quarterly factor rather than a structural one. the activist investor point. google's still their biggest put the most money to work facebook is third, but likely to overtake these books they are exposed to these new platforms. it's not like we're looking at oh, more threatened by amazon. either way, this is now a three year low for their price to earnings multiple of 12 times. so they're under pressure -- >> and the shares down about 11% today. >> we have got about 20 minutes left before the close, down about 0.3% for the dow improving though slightly down only 10 basis points for the nasdaq and president trump warning of a government shutdown

ahead we'll discuss how that could impact the economy but first the ceo of wells fargo bracing employees for more negative hdleso eain tcome we'll tell you what he said when we come back hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge.

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welcome back wells fargo ceo tim sloan telling employees to brace for more negative headlines. the bank will announce the completion of the expanded third party review into it's fake account scandal saying the results will generate news headlines. shares trading fairly lower on this >> there's two main reasons for why he's done this the first they are now including in their 10q filings more information than would typically be included. not necessarily having a financial impact, but does lead to news headlines that people like us pick up on and he wants to clarify that to employees. the other one is that last week i did speak to the incoming chairwoman betsy duke. and i did get that statement from her are you confident that at least halfway through all of the turmoil in the last year she said she couldn't say that and so they wanted to come out and clarify that. >> were you saying this is tied to their 10q filing or is this the conclusion of a separate -- >> add transparency is tied to the 10q filing recently.

i think that did generate headlines and there's going to be more and we to want clarify that these aren't big news scandals it's just we're really revealing everything we find in there. why was there a difference in tone between what he has said today and over the last six months and what betsy duke said last week. that i think comes down to the nuance of whether they're referring to just the sales practice scandal itself which they do feel most of the worse is behind them, but the other point, which is not halfway behind them yet is increased risk management so heavily across the board, they are finding other issues like the autolending insurance aspect, and that what betsy duke was saying last week essentially was look, we're now improving risk management everywhere and we are finding other things that's going to continue to come out. >> will they tell us what those are? >> we don't have the timing yet. it's coming sooner, but the cross setting capital itself, they are both quite confident the most of the work is behind them but they're saying look, we're a big organization, we've increased risk management and there's other things coming out of the works that's something we've got to

keep an eye on this was an e-mail to employees, it was designed to boost moral as opposed to being a market-moving factor there weren't hard numbers in it >> it seems to have worked for the market reaction, we have the headlines first, i'm sure it would have been far more negative, it's almost preannouncing, it's warning that something's coming -- >> the only other quick point to make, we are seeing the different announcements from the board at one point and then the company executives in another. and not really so sure that really all talking together. i know there's changing in the board to work through. that's a slight bit of confusion i think between the two parts of the company. >> good point. 14 minutes to go as mentioned, lower today. dow is lower by 68 points right now. everyone's down except the russell, s&p is down six, russell a little bit higher. retailer lost was hit hard on the back of it's earnings report this morning should investors be betting on home furnishings we have a bull bear debate next. and later reading on retail from 4 square's ceo. stay tuned back in a couple of minutes.

♪ (bell rings) ♪ (screeching tires) (bell rings)

welcome back shares of lost were crushed after it's results this morning. they've come back a little bit here down about 3.6%, but originally down 6% and break even for the

year >> meanwhile, william sonoma to report after the bell nap stock up 11% today, but down about 10% year to date >> ouch. when it comes to housing, should you bet on the home improvement stocks with us to debate is alan from btig and liz dunn on set with us i like this. allan, you would think if you were generally bullish on hou housing with, home depot and lowe's would be the way to go. is something bigger in terms of reset at stake >> for the first time in a long time, we think there's a real i did verges between the two channels where home improvement if is fundamentally doing terrific and debate the housing metrics for home furnishings, those names seem to be having a great deal of difficulty and we echo our negativity by having

ratings. >> have done so much worse so far this year? >> liz, sorry. >> there is definitely more competition, you can't deny that and there are some big players like wayfair with free shipping and really challenging the value pricing. there's pressure from the offprice channel that i think william sonoma is going to be survivor along return they have a very strong business great mix of online and offline, they've been investing in all the right areas. and so like we saw with lowe's today, people are hesitant to reward companies for investing or they're skeptical about investment that doesn't immediately pay off. you might see some of that with william sonoma today, but i think ultimately, they're investing in the right places and it's a strong brand and poised to be performer for the long-term. >> allan, do you think home furnishings names are well-positioned or would you

stick with the home depot? >> we would steer clear. the home furnings names have extreme pressure from wayfair and amazon wayfair tripled it's revenued in the past years amazon nearly doubled in that same period of time. and we think the competition will intensify on that highly kmodtized side of the business >> when we talk about the home immaterial improvement names and share prices combine, year to date, what's home depot done better than lowe's >> home depot has much better real estate. we think they're a proactive company. we think that they have done a better job admittedly than lowe's with respect to expense discipline home depot only needs a 1% comp to lever expenses and when you're comping north of 6%, that flows right to the bottom line >> liz, do you want to respond >> yeah, i mean, i think that

sure, there's competition, but i think that when you look at a name like william sonoma, you shouldn't be talking about them as the same breath as pier 1 in my view. william sonoma is trading like a department store meanwhile over 50% of the business is online they have great real estate, high quality real estate, and they are really at the forefront of innovation in terms of channel integration and all the things that customers want they have a value play in the form of west elm people are worried about the pricing pressure, but they have a value play and that's doing quite well and strongly. i think that william sonoma is a great name as, you know, this valuation and with the yield, there's no reason that this stock should be trading. >> but you would say, pier 1, okay, different story, bed, bath, beyond, where do those fall for you >> i think allan's point about undifferentiated brands is an important one. you think about william sonoma and it's slate of product offerings, they have a strong brand. and it's a go-to resource.

someone's moving to the country, i assume, and furnishing their apartment, but, you know, it's not the same as sort of buying sheets where, you know, the bulk of bed, bath's business might be not so brand loyal >> yeah. >> all right thank you both appreciate you today we'll see what william sonoma does after the bell. some breaking news on yuber to get to now. jackie deangelis, what's happening? >> uber released it's financials and metrics and cnbc has confirmed them i want to share them to you. obviously a lot of interest in this company gross bookings rising 17% in the second quarter adjusted net revenue, 1.75 billion in q#, down from 1.5 billion in the first quarter net loss fell 9% quarter over quarter to 645 million or roughly 14% year over year they're saying that global trips increased 150% year on year. and they're talking about making

a revenue note say nothing longer reporting adjusted net revenue to the investors due to the new guidelines from the scc. now i will say obviously as i mentioned there is a lot of interest in this company, why this really matters right now, it's because uber spent a lot of second quarter sort of fighting and under scrutiny about some of those well-publicized internal investigations, sexual harassment, other unsavory aspects potentially of the company culture, and also, the forced resignation of it's ceo getting some of these metrics for people following this looking to potentially invest in uber, certainly is helpful back over to you >> also wonder if the details had made it out there today. they wanted to just sort of get a full disclosure. >> they introduced tipping of drivers on the 20th of june. and already drivers have earned about $50 million in tips. that's going -- >> just about 50 days. >> just about 50 days. exactly. loads of stuff i want to talk about, but we have to go

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♪ ♪ (bell rings) ♪ (screeching tires) (bell rings) just over a minute until the close. down about 77 points on the dow. if we look at the intraday, we've been up and down various political headlines coming out we are just softening into the close. let's look at the sector

performance on the s&p because consumer discretionary and industrials, they pick up the slack at the bottom. the only really meaningfully positive sector today is energy. it's up about half a percent and switch to oil prices, oil's up a 1% we've been focussed on the other industrial metals in terms of the commodity space, but today, oil's getting a nice little bounce bob, your main takeaways today >> very, very light volume i would note for the second day in a row, russell 2,000 outperformed the s&p 500 just turned negative just a bit. two days in a row its been better i consider that a vote on the tax reform probabilities when we saw the health care bill fail and people started questions whether we can get any reform the other thing i would note is a lot of retailers up today, part is earnings express, american eeg dl better jc penney, costco, barnes and noble had a great day. i think the walmart google partnership is giving hope that

they could have an alternative platform if they could get with google as an alternative to amazon i think that's a big issue right now. >> that's the bell, bob, thank you very much. dow transports down about a percent. ringing the bell down, the movement foundation at the nasdaq is the honor foundation that's it for the first half of the closing bell, kelly's got the second thank you, and welcome to the closing bell, everybody, i'm kelly evans. after yesterday's big rebound on wall street, today a step back the dow dropping 87 points on the bell about four tenths of 1%. biggest decliners include johnson and johnson and walt disney the s&p 500 down about 8.5 points biggest gainers were some retailers. we'll circle back in a moment. we talked about wpp's big drop

and the worst performer there today down 4%. and the russell 2,000 weaker by just a couple of points to 1369 on the bell there. it's going to be a busy hour for earnings and reporters are standing by. josh lipton will cover hewlett packard reports. joining me in the panel, we have cnbc senior market's commentator michael san toely here michael a strong day for retail. before we get to that, overall the declines in the markets, is that attributable to d.c. drama. is it part of the narrative? >> i think it's not linked to the headlines out of d.c. to be honest with you. i think it's the shadow that's been there for a while i don't think day-to-day this is what's going on.

yesterday i called it a 1% bounce almost had pulled back 3%. and you saw investors reaching for some of the stuff that had just been beating down too much. so continuation of that today. energy stocks up, for example -- >> that's where retail would fit in too >> exactly via come was up half a percent >> foot locker was up 6% >> it's a little noisy i think the market is on the indexes, still a little bit in no man's land. we helden to two-thirds of yesterday's bounce, it's not bad, but not assigned that basically this choppy period is over in my view. >> we're moving into the back half or beyond of earnings season a lot of retailers lately, does that hurt sentiment because of what's happened in the sector? what are you focussed on >> i think for a lot of them, worry about the dollar in the second half. so that might be an issue, it's better if you're earning overseas and bringing it back. >> reporter: wait a minute, i thought weaker dollar is good. >> people who are reporting earnings so you've got -- all of these things sort of -- >> fit into --

>> importing all of this >> it can be a little bit. i think that -- there's been a really good earnings season for the first half of the year the second half people haven't been talking up so much. if they can bring surprises even if it's not as good as a surprise, that can be beneficial if it looks like we're weaker in the second half, that might be troublesome. >> michael, are you seeing opportunities out there? we haven't even pulled back that much from the all-time highs we've neither had received a pullback as might expose interesting opportunities or unless you see those in retail or something like that >> it'll be a net positive for companies that export. as for retailers, is there opportunity? i think so we've been through a pretty positive earnings season, and i, i actually do believe the headlines are somewhat being driven by the president's statement today about shutting

down the government. the good news is i think we're set up for so much pessimism regarding tax reform if we have any kind of tax reform, i think that's going to be a positive stimulus for the markets. >> yeah. that's a fair point. when client asks you about the government shutdown, i mean, what is your answer on that? >> it'll probably shut down. it'll be a temporary issue it'll be really a game of chicken. then in 24 hours, it'll be resolved shutdown sounds scary, but in the end, it's kind of a temporary blip >> that's the other issue, i'm having a tough time keeping it all separate there's the shutdown and the debt ceiling -- there's a lot going on right now and then there's -- i don't know how those all relate back to what the fed's going to do and with the balance sheet, and what types of overall tax reform are possible and how that changes are baselines. it feels like a lot of details. >> yes, and it's all coming together within let's say five

weeks. you have to have a budget that takes you to the next fiscal year that's why i think all of it is noisy -- but let me say, if the market really had a kind of clear and present fear that we were looking at a debt ceiling showdown and potential government shutdown because it's being held hostage by the border wall, we're down more than 45 basis points today i don't think the smarkt saying wow, the president just had an outright explicit well-considered threat >> what happened the last time >> 2013 we had a government shutdown in the mid'90s >> 2011. >> 2011. >> we had the debt ceiling standoff and the downgrade -- >> that was a huge market then. >> europe was melting down i mean, look -- i don't think the market is really fixuate on the those odds >> let me interrupt far second hewlett packard's earnings are out. let's get to josh lipton with those numbers, josh. >> kelly, hp inc. reporting 43

cents, that's versus expectationings of 42 cents with revenue, 13.1 billion, analysts modelled 12.3 billion and turning to business segments personal systems, better than expected 8.4 billion also better than expected printing at 4.7 billion. and turn to the guide, mylan, 42 to 45 cents for the full year, 1.# 3 to $1.66 both basically roughly in line i did just have the chance to speak to hp inc.'s ceo about these results. and i began by asking him, what's his outlook for the second half of the year when are it comes to that pc market they're saying fwhun five machines has an hp logo fast approaching one and four there's market share to bed had h. and the top four grew 1% in the market and we grew at a five point premium to that. the big are getting bigger and we are growing much faster than

the big four also kelly, hp inc. saying they stabilized supplies revenue, a quarter earlier than expected. so i asked for their outlook on that, he says as it relates to q4, we're on track for supplies revenue to be flat despite ut currency after making adjustment for last year's supply sales model change. and finally, as i mentioned that guide, basically in line with what the street had modelled there are some head winds, the cfo of the company kathy pointing out those higher component costs, for example, saying duo expect component costs will continue to increase, al beit at a slower rate than this year, but we expect it to continue to go up. kelly, back to you >> it's a really nice revenue beat they've only popped by 3%. tomorrow we're going to talk to hewlett packard's ceo exclusi exclusively on the show.

sarah, are you surprised by the market's reaction to this? >> the revenue looked like a beat, but the eps didn't seem like one also when they're talking down the next quarter the next quarter isn't going to be for whatever reason we didn't expect that's sort of the problem, what are you going to do for me next. >> you don't think they're being conservative >> they could be being conservative, i worry about the top line beat, but the bottom remaining the same i think the anticipation that was mix was going to start getting better for them. i think that could be a marng issue. >> now it's down 2%, michael. >> again, basically saying maybe you front loaded some of what you could have done the rest of the year you basically kept the guidance range for the rest of the year about the same got it brought up the bottom end of that. you're not extrapolating a lot of momentum in terms of top and bottom line. i don't think it's a bad result. this is almost, almost literally a no growth company. i mean, if you look projected this year, less than 1%. >> look e pst was up about 12%

actually more than that, probably four or five. >> multiyear period, i think the market believe is going to be hard-pressed to grow it's got a little level of skepticism >> what were you going to say? >> i completely agree. i mean this is a company that if they can keep margins falling less than people expect, if they can somehow be the accelerated player in a consolidated market, that's great but in the end, this is a company and a compressing margin business i think mike is absolutely correct, we shouldn't have, in my view, high expectations for hardware companies, if anything, services and software will be out and not hardware >> all right you guys are being hard on them. i subscribe to the thing that's kind of a service it's very handy. they send the cartridge to you i'm not good at keeping up with admin. maybe that's not the future, but it's nice to print something >> so that's okay. >> real quickly -- >> there's not enough of you, kelly. >> yeah, that's a good thing

we were just talking about the fiscal side of things, we're also heading into jackson hold this weekend, how do we weigh all of that against what you guys were saying about the importance of the dollar and how it's handling things >> i think the market first of all right now is very confident in sort of saying look, the fed's not going to be able to do much obviously less than 50% chance of a rate increase in september. does that mean that the direction of a surprise from what yellen says friday, maybe more hawkish i don't know if that's a good bet, right you do have the debt ceiling stuff. and all the rest of it >> how much can they do with uncertainty? >> i don't think they're going to want to do very much for exactly those reasons. and i think that it's the same thing. you don't want to threaten markets to take away liquidity when you're looking at events that you're not sure what the outcome is going to be >> in europe though, they have such a strong currency right now relative to the dollar where, and he's in kind of a tough position all the sudden, i get that you just had the dollar drop

like 10% from it's highs this year and could directly translate that to stimulus, right? >> you could i think they've got a tough thing that's going on in in europe too you're running out of things to buy, right they're buying up bonds directfully some cases from corporations so i think that to keep that stimulus is a little challenging. but to take it away, i think since the boj and still stimulus, it makes it easier for the fed. if the ecb comes back, that's trickier. >> yeah -- >> it's financial stability, so, that the dollar and other financial conditions would be front and center and so if she chooses to say, look, financial conditions are still really loose, we have work to do, maybe the market takes notice of that >> last word >> yeah, and this is really the keyword. i think both the fed as well as what's happening in europe, i just don't think they're in a position where they have much appetite to really tighten very much that the point. so, i think you're going to see a very accommodative policy, a policy i think that the market is somewhat discounted thinking

rates are going to go up quickly. or balance sheets are going to shrink significantly, and i just don't think that's the case and that's a net positive for the economy. >> all right gu guys thank you for joining us here sarah hunt, appreciate it. trio of retail earnings is still heading our way. we're going to get those numbers and yes, end stocks lower after donald trump threatened a government shutdown at a rally last night the potential broad economic impact of that is next plus uber is losing speed with mutual funds. how many have cut price estimates on the ride sharing giant and what it means for the futures of a possible company and as always, we want to hear from you contact the show, via twitter, facebook, or send us an e-mail you're watching cnbc, first in business worldwide what did we do before phones?

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where you can pay for data by the gig, and share it across all of your lines. no one else lets you do that. see how much you can save when you pay by the gig. xfinity mobile. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. build that wall. now the obstructionist democrats would like us not to do, but believe me, we have to close down our government, we're building that wall >> that was the line and that was president trump spoking at a rally in arizona last night how would a government shutdown impact the economy let's bring in jimmy from american enterprise institute and michael who's here with us

at post nine michael, we've been here before. so given the 2013 shutdown, what was the impact on the economy? >> right so we believe it took a couple tents off of gdp growth in the fourth quarter it's measurable, but not huge. and it seemed to bounce back quickly from that. we didn't see it hit retail sales, employment, it did effect confidence, business and consumer confidence for a little bit, but then of course that recovered shortly thereafter. >> how long did that last? >> are we talking about something more than that >> i agree with mike, this is not a huge market and economy event that hasn't been in the past, i wouldn't expect it to be this time, but i think the issue is that verss interpret this as a sign that republicans are unable to govern because obviously it's coming at almost the exact same time as the debt ceiling fight. which -- that indeed is huge

market event remember, republicans may need democrats to deal with the debt ceiling. sop they're in a situation where republicans may need democrats for the debt ceiling, at the same time, they're trying to push through tax reform without any democrats. sop it's just kind of a very dicey political situation. and i think that's, i think that's where the concern comes from that this is a case where washington can't govern. and who knows if they're going to be successful until raising this debt ceiling in time. >> michael, we were just talking about how, if at all, this translates into what posture the fed might have is it just one more dined of thing out there that gives them an excuse to go slower how does it feed in? >> in our opinion, the september move normalization still seems like it's close to a done deal maybe a little bit of a concern. but as i've said, we've been through this before. i think the fed has a similar view in how it effects the economy. this balance sheet is something they've had training for a long while. i don't think that'll derail it. now when we talk about the december if they hike rates in

december, if we do have a mishap when it comes to the debt ceiling, obviously that's a whole different ball game. >> everyone keeps saying that? what happens if the debt ceiling is not raised, what does it mean for the feds right away? >> unlike a government shutdown, we've never had the debt ceiling go past it's drop dead date. it could poiblly be quite disastrous -- >> for the economy not just disruptive to, you know, financial markets or disruptive to the functioning of wall street, why would it be so bad for the economy? >> just depends how long this goes on, but it would be very, look, we saw with lehman what can be caused misfunctioning with the financial markets can have effects for the economy we just don't know >> right >> i mean, that's not an adventure we want to go on that's not an experiment we want to run, exactly because as mike said, we're not sure of all the linkages, upsets in currency markets, bond markets, i mean

that's, again, not an experiment, especially when things actually seem now to be moving, you know, at a pretty decent pace with the u.s. economy. >> michael, it doesn't sound like, you know, so far when we've heard from the gop on that this, they say we're definitely going to raise it and that was actually one of the things that bannon sounded off about when he left the white house he said oh they're going to do a clean hike and we're not going to be able to get a wish list of other items incorporated in that do you see a risk that that becomes royaled somehow? >> i think the main risk is that we have unpredictable actors here and obviously not acting like, you know, this is a unified party where everything's in the bag and we can all come to an agreement. so i don't think anybody really desires to go passed the debt ceiling or use it as an instrument of causing chaos, so i think it's just that wild card sitting out there. but when it comes down to it, typically congress tends to recognize this is actually about covering spending that's already been authorized and -- >> just paying our bills >> yeah. >> it's pretty tough to get

beyond that logic. >> and michael, if that's the case, the fed, we have the jackson hole meeting, they have potential rate hikes they're working on if we're even having the conversation about maybe what would happen if they don't raise the debt ceiling and we're having that conversation, do you think that means that they'll have to take that under consideration too? >> well look, you can't set policy with every fear you have in mind, as a driving force, right? and i think in terms of jackson hole, look, they want to keep a low portfolio profile. you don't to want hear them publicly talk about a government shutdown or a debt ceiling even though we know what because they're going to keep a low profile. there's risks out there this is one of those we don't think we're going to have this problem. but look, it's been a year that you have to keep in mind be. >> jimmy quickly before we go, what are the odds that a shutdown or not hiking the debt ceiling actually happens this year >> not hiking the debt ceiling, pretty darn close to zero. a shutdown, i think a shutdown, at least for some small a. time

is likely. wouldn't be surprised if we had a temporary resolution or even a temporary debt ceiling hike as well so i think we're -- if you think this is going to create uncertainty, it's going to continue for a bit >> all right so excited for september michael, and jimmy, thank you both by the way, house speaker paul ryan will join power lunch tomorrow in a cnbc exclusive and he'll discuss his take on the government shutdown, the debt ceiling, all of these various items. that's tomorrow at 1:00 p.m. eastern. don't miss it. meantime, william sonoma earnings are out, we have the results. >> hi there kelly, those numbers are coming in strong right now it's driving shares right now up 4% at the moment let's start with the stop line, coming in at $1.2 billion versus expectations 1.19 billion it was a beat on the bottom line as well. with earnings coming in at 61 cents versus analysts expectations of 59 cents and guidance also coming in strong with revenues for q3 guidance slightly above expectations and going on to those all important metrics of comp store

sales that total in line with expectations at a growth of 2.8% and when the brands are struck out, there was a slight miss on pottery barn comp store sales at 1.2% versus analysts expectations of 1.6% but the williams sonoma brand comps were there also coming in below expectations 1.9% versus analysts expectations of 3.5%, but again shares right now climbing up 4%. back to you, kelly >> yeah, i think i saw liz just do a fist pump she liked what she said. i mean there's a reason to own some of these companies. it's up 5% after hours anything you'd add >> well the west elm is still shining. double digit comps growth not a huge part of the business. stock businesses hated and thrown away like a lot of these. 24% shore position that's not a big move as a bounce from where it's coming from, 5% but one of the lessons is, some of these chains have honkered

down and managed to squeeze down top line growth had it not gone away dsw, american eagle. >> that's right. >> were some others that managed the quarter. >> another retailer bucking the trend. it's william sonoma this afternoon. statue of robert e. lee sparked protests across the country, but another robert lee is gaining notoriety today those details are next and amazon is already struck a deal to acquire wholefoods one predicts it'll be setting it's site on another retailer weilte yso wl llou which one coming up. ers the digital world. communication. that's why a cutting edge university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink.

welcome back it is time now for today's fast take we begin with disney after it's espn unit decided to pull an asian-american guy named robert lee from it's uva football coverage. uva is in charlottesville where the deadly protest last weekend took place but the move is triggered widespread astonishment, michael, has espn become a laughing stock >> look, obviously the leak was an attempt to further make espn a laughing stock >> but their statement was ridiculous >> i just felt like they were, you know, making this dined of -- probably seemed like a staffing tweak, insignificant game on a streaming broadcast -- >> look, the only way i understand it is if the guy said i don't feel comfortable here's the statement, we collectively made this decision because of the coincidence of his name, and in that moment it felt right to all parties.

it's a shame that this is a topic of conversation. >> yeah. >> but they made it an issue >> they did. and of course he did exceed to the change, he's going to do a different game i think it's, it shows you that any brand, once charlottesville was going on and you said, all right, how might our brand come in contact with charlottesville? they have a game opening weekend, in the town, and so i think they were probably just -- in excess of sensitivity i think to how it was going to be treated -- >> like a vehicle for jokes. >> but that's the interesting thing about this is it undermining espn's authority or legitimacy somehow in a very vulnerable time for them already >> i think oddly enough, espn in general has been politicized and so that's the part of it that they're in this kind of a trap in addition to the business challenges, they're seen as actually kind of taking sides -- >> i agree. >> and i think they're being cast in that direction >> i don't know. >> it's not great. >> no. and that's the trouble for disney

by the way, that was one of the worst performers in the dow today. next, uber share prices got whacked. not like realtime, but every quarter, mutual funds to have to update what they think they're worth. all marked uber down 15% a share according to to the journal. but black rock keeps marking it up, michael. >> yeah obviously this is you have to drink i think a late a little bit now there is a trading of private shares on second market and other platforms. i think they were down to about a $50 billion implied valuation. there's room on the downside from the peak fundraising round. i think it's a matter of just them trying to basically have a passable estimate of what their stakes are worth for the satisfaction of their boards -- >> but it's weird they're doing these independently. how do three different funds come up with with the exact same valuation? >> every one of these funds think that the publicly traded stocks is worth something different. right. so when you don't have that actual true clearing price in the market, you have to say,

based on multiples, comparables and the rest -- >> and of course you have the results from uber today. you have to decide whether that was good, bad, the cash burn is good or bad. >> all the sudden it should be publicly traded. >> most that size has been >> next, cliff's firm ar capitol management is going to offer etfs what do you think they're going to look like >> most likely look like the mutual funds combination of things like value, factors, momentum, smart bethat >> but they wouldn't call it that they would call it quantitative where it's using fundamental factors. they also run risk of parody funds which are a mix of stocks and bonds -- >> is there any trend in investing they're not launching. >> look, they were early i think in the whole thing and getting into that area so, etfs just kind of a different wrapper for this >> you should get cliff on for a pro talk and ask him all about

it apple is stepping back from making self-driving cars it couldn't figure out exactly what that car should look like, and now it's going to focus more on making the systems for self-driving cars instead. do you think this was a good move >> i do. i mean all along athought -- what's the competitive advantage when you're creating an electric or self-driving car. it's the battery echnology you're not going to start from zero and get there i think it makes sense to be the operating system of the car. and they're in there already you know -- >> play to your strengths. >> and also, i do think it's kind of a way to kind of clap back on those people who keep insisting apple has to do the huge enormous complicated things they looked and decided it wasn't their job >> i agree shares by the way, just a little bit higher today selling 36% on the year. one more quick story, stacy smith of intel is retiring next year smith was officer before moving to his current role which is head of the manufacturing operations and sales he's leaving them at the end of january. >> yeah. i mean, obviously they had a

little bit of freshening up of the upper reaches. i just think, you know, investors look at intel as being this kind of, almost utility i mean, semiconductor utility, that's the way the stock kind of acts right now and you wonder if new leadership can come in and change the story a little bit. >> perhaps emblematic of that need as opposed to him thinking current leadership is entrenched and i'm -- >> it's hard to read the tea leaves on that part. >> stacy can always rejoin us and tell us what it's all about. hbhs earnings are out. let's get to jackie delaware ank lis for those numbers. >> adjusted in earnings on more than 2 billion in revenue. that's a slightly better on the top line as well the company also raising it's full year guidance to $7.60 to $7.70, that's the range a share. they want to know how the premium brands are doing, calvin klein and tommy hilfiger especially after some adverse

moves in foreign currencies. the conference call is tomorrow at 9:00 a.m. eastern time. but you can see, shares are trading up roughly 3%. movingen to talk about guess, a big beat here, 19 cents in earnings on 574 million in revenue. that's also a beat top and bottom line. strong third quarter revenue growth guidance, that is probably what investors like the most they're saying up 4 to 6% versus around a 3% estimate tough quarter for retail, but it appears both companies have managed better than expected guess shares up now a little bit more than 11%. >> theorizing. phoenix-like from the ashes. it wasn't really ashes, thank you very much. the company's ceo is going to join jim kramer on mad noun talk about the results. 6:00 p.m. eastern time, don't miss it. breaking news on the amazon wholefoods deal. hampton pearson has that >> hi kelly, this is good news from the federal trade commission for amazon as far as it's planned acquisition of

wholefoods this statement from the acting director of the federal trade commissions bureau of competition, bruce hopman quoting now, the ftc conducted an investigation of the proposed acquisition to determine whether it's substantially lessen the competition or constituted an unfair meth of competition, based on our investigation, we have decided not to pursue the matter further, of course the ftc always has the ability to investigate anti-competitive conduct. so a green light from the ftc for amazon as far as it's planned acquisition of wholefoods back to you. >> all right and we'll see what moves they make now, hampton thank you very much time far cnbc news update now. let's get back to sue herrara. >> hi kelly, hi everybody. here's what's happening that the hour we have a developing story now out of europe. dutch police cancelling a rock concert in rotterdam after a tip from spanish police. the mayor saying a bus filled with spanish license plates and gas bottles was found near the

venue. it's not clear yet if the threat and the bus are connected. the latest terror scare comes days after a van rammed into pedestrians in barcelona, killing 15 people. president trump signing a measure today to help disabled veterans it would slash the a. time it takes for the government to decide appeals on disability payments and it's getting harder trying to find items such as bottled water in south texas that's where residents are preparing for tropical storm harvey forecasts believe the storm will make land fall by the end of the week and elon musk unveiling on instagram the first photo of the space x space suit musk whose also the tesla ceo says it's been tested to double vacuum pressure. this is not a mock-up and more details will come within days. you're up to date, that's the news update. he said it was hard to get the functionality and the look the way he wanted it ting looks very cool though.

>> i bet you could see an eclipse in it. >> i bet you could. >> it looks like it could protect your eyes as well. >> exactly >> you get two amazing feats all at once. thank you very much. sue herrara. shares of ulthat bu day and four square sees it as a buying opportunity and not just for investors. the company's chief executive joins us with which retailer he edtsiltapric wl ke over ulta right after this fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

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this guy has a magic eight ball over here it's a fortunate teller. that's what i'm trying to say. shareholders voted to approve amazon's buyout earlier today. this was on the heels of walmart's announcement to partner with google. they fight to win on and offline. what companies will they look to acquire next joining us now with the predictions is jeff flick. the ceo of four square welcome to you thanks kelly >> you have a track record about predicting iphone sales and chipotle results and planet fitness results. now you're talking about bigger things here. amazon and walmart you think are going to fight over who now in

retail >> well, we looked at using 50 million people that are part of four square's consumer apps. you looked at the foot traffic to various retailers and we tried to pick a few target acquisitions that both walmart and amazon may fight over in the coming months. we have a couple picks, and i can dive right now i think the first asset they should go after is nordstroms. all right. this is a shining light among retailers. very interesting because, you know, obviously amazon acquired whole foods. there is a tremendous overlap in the four square data two times more likely for nordstrom users to also shop at whole foods. this is the affluent consumer that they want nordstrom's nearly sales growth, 20% q1 been online growth. this is a successful player, and it's that affluent consumer amazon wants to double down on that affluent consumer and own more of their shopping remember 90% of sales still happen offline, it's all 8%.

getting into these resistant verticals is important for now nordstroms, for walmart would be an expansion because 55% less likely for nordstrom's consumers to ever go into walmart. >> i understand that, you have so much good stuff here. you also think they could fight over parker, again, what's the rational there you use your physical stores and they have about 40 of this them. and as place to try on the goods and then they ship them mostly this is a trend that both amazon with whole foods and walmart with the acquisition are already interested in been but for walmart, ten times more foot traffic.

80% shot at whole foods. 80%. >> i wanted to say we can identify the profile of customer that frequents a certain brand -- >> exactly >> why that would be appealing >> exactly >> so you think that amazon's going to acquire lowe's? >> so if i'm amazon, i have to go after big, e commerce resistant sectors. lowe's had disappointing results this morning, but their same store sales growth almost 5% if they can get into this hybrid model of home improvement and drone delivery of these goods that people have to haul into their cars, i think it could be an interesting model lowe's plus >> and delivery of washing machines i want to see it. >> that's a big -- that's a big -- one more pick >> ulta beauty $14 billion market cap 70% digital sales.

14% in q1 same store sales it is a sephora with the affordable set it's half of it's consumers are more affluent than the average walmart shopper. it's a great addition. >> how much are hedge funds willing to pay you >> we have three of the top five hedge funds who subscribe to the aggregate data it's also aggregated, but yes, we have a pulse on the economy >> well thank you for sharing with us, it is fascinating we're going to see how many come true >> all right >> jeff flick, good luck, he's the ceo of 4 square. google home paired with walmart, but can it beat tasks like playing music or gathering information? cnbc put three home assistants to the test and which one came out on top is coming up. first the powerball jackpot is $700 million. and sometimes that kind of instant wealth means more money, more problems for the winner up next, thousand handle it. you're watching cnbc first in business worldwide

hey gary, what'd 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 welcome back tonight's powerball jackpot is now $700 million tim furlong is in delaware with how quickly tickets are selling, tim. >> reporter: i hadn't heard about the powerball, there's a powerball tonight, kelly how about that we're here where they sell both books and tobacco, but today they've been selling a lot more

powerball tickets than anything else because as you know, the jackpot is up to $700 million. by the way, none of these would be a bad thing to win, but here in delaware, this store, 20 years ago, had a woman split a jackpot, made $86 million at one time on one ticket, and we had $121 million in the southern part of delaware just in december so everyone's hoping lightning strikes again so to speak here in delaware and they are moving through tickets big time right now. lots of people looking for one of the things we've been talking about as they've been coming in for tickets is what's your strategy people do the quick picks of course the most common powerball number is nine. the most common white ball is 32 so people go with those numbers, some don't some people we've also talked to say they do the cheesy ones, like the one, two, three, four, five, six combination. here's the catch, you might win, but if everybody is doing those kind of cheesy number sequences, you're splitting that jackpot, kelly. and you and me both know, we don't to want split a jackpot. we to want win

>> no. >> reporter: i was trying to find my powerball ticket, this is, kelly, exactly how crumpled it is in my pocket i need to take better care of this if i'm going to win tonight. back to you. >> i don't want you to win it, i don't want me to win it. we're going talk about that with our financial planner. thank you very much, tim how should you manage the $700 million in winnings? this is a cfp at pacifica wealth advisors i think it sounds like a punishment why should this even be legal? >> i think winning the lottery could be a wonderful thing, but i think even better is maybe playing it, couple of bucks, and thinking about what your life might be like if you actually win. >> yeah, i like that what would i do differently and think about the choices you're making here's what i'm talking about. neighbors of lottery winners are significantly more likely to declare bankruptcy within a few years of the big event neighbors. we already know about the tremendous vails of people who win it themselves, why is it so common for the lot toe to be a curse on those who win it? >> not only for those who win it, but the neighbors of those

who win it and it can be a blessing or as we see more often it can be a curse. and it's because sudden wealth is very different than gradual wealth you and i, we get up, we go to work, we battle the commute, when we get our paycheck, we know what went into earning that when it's a lottery, sudden wealth that comes unexpected, people treat it differently. versus wealth that they earned themselves and so they'll spend it more they'll gift more of it away, they'll take more risks with it. that could be a big problem. >> michael, if you won the lottery tomorrow, what would you do with it >> first of all, i don't actually have the confidence or arrogance to know exactly how i would react to be honest but i do think that i would want to kind of hive away a certain number that was just represented to me long-term security or just a fallback -- >> sleep at night. provide for your family. >> provide income at some point.

i don't know that i would move anywhere i don't think i'd stop working. >> i'd like to think you wouldn't change a thing. >> robert -- >> season tickets might be involved >> what do you think they should actually do to avoid the outcome of so many who went before them? >> yeah, i love your advice, kelly, and that is don't change a thing. and for the people who have sudden wealth, experience a lottery win, the ones who are most happy are the ones that didn't dramatically change their lives. if you were fortunate enough to win this lottery tonight, what i would say is, sign the ticket, get a team together that can help you with the accounting, with the taxes that may be involved, with deciding, should i take that lump sum or should i do the annuity instead you can kind of screw up a few years in a row and you get to check every single year. if you mess up with the lump sum, that's it, game over, you don't get a second chance. >> all right thank you for joining us

and our best wishes to whoever wins that thing tonight. it's a showdown between amazon echo, amazon look, and google home. the three home assistants have been put to performance tests and the winner is next and coming up on fast money, one technician says the charts are looking troublesome for one says the charts are looking troublesome for one ctseor that could be a warning sign for markets. we will be right back.

[car tires screech] [bell rings]

welcome back walmart teaming up with google's home assistant for voice activated ordering got us thinking about which home assistant is actually the best eric checked it out. >> we spent a full day with amazon's echo and google home to see how easy they were to set up and use. the question, could they make my

day better are they worth buying if you already have an iphone with siri let's start with content shopping amazon and google are both about the same amazon, you can buy on amazon. google you can buy basically everywhere else. for information and tasks that's where google outshone the competition. google is a search engine with all kinds of information amazon does not music. they all have their own music systems. no clear winner there. fun and games. mad libs, things the kids can play by talking to it. google with the advantage. communication. siri on the iphone was the best there. functionality. siri was the easiest to set up it only took a few minutes the other devices 20 minutes each you could be 50 feet away and the devices could hear you speed, no clear winner there

but in terms of understanding, human language things, being convco conversational google was much better you didn't have to say "hey, alexa. the clear winner in our opinion and experience google home was the way to go. i don't know if everyone likes that but that's based on our research. >> you know what's interesting to me about that, michael, what do you think, i thought the winner would be amazon if you're telling me that google home already has advantages, now they're doubling down on it with today's announcement of walmart. >> it seemed that amazon had such the lead in all this or the buzz surrounding this. i guess it would be a measure of how important keeping it within that amazon kind of sphere of shopping all the time. basically having that be -- or connecting to amazon music. >> where was amazon a clear winner, eric

>> shopping was the dominance. if you think of the devices as hardware extensions of what the companies do well. amazon does shopping well. it doesn't really do anything else well. google does a lot of things because it's a search engine if you are looking for a lot of information. google wins. if you want to shop on amazon, that's why you buy the alexa or the win with the video screen. we found the screen didn't add a lot of fall. i don't think it was worth the money. >> that does explain why google home is going after shopping if that would complete their win as you are describing it. thank you very much. >> you got it. we're minutes away from hp llmsona gining call. wiia-sombens shortly as well. a check on the stocks and key metrics to listen for when we come back. at fidelity, trades are now just $4.95.

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and actually improves memory. 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. welcome back a slew of earnings after hours today. a lot of retailers the shares responding quite well hp inc. they're down about a quarter percent after a big revenue beat kept the guidance in line. pbh up 3%. williams-sonoma up 6 guess up 10% after their

results. >> williams-sonoma and guess in particular seems like the negativity around all the chain retailers got. second quarter not terribly important in terms of the rest of the year. pvh has been a winner, survivor in the brand area. >> williams-sonoma, the call will start in a minute. >> they'll be asked about encroachment of online brands, things like that whether they kind of store rationalization plans, all the rest of it beyond that, just the condition of the consumer. you want to know whether in fact they have a good window on bigger ticket stuff and day-to-day. >> we had some smaller out-performers like american eagle. big misses la-z-boy, home depot and lowe's trading poorly yesterday that's the flip side it seems to be the hardened -- beaten down -- >> the mall-based guys mostly that people decided to throw

them all out together. when they managed to have a decent top line beat in a given quarter people come back to a little bit or short covering. >> manny cheirico joins jim cramer tonight "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i am sara eisen in for melissa lee. it's the battle of the smartphones. samsung launching the new galaxy note did you lose money in shares of blue apron? one top securities lawyer says you might have a shot of getting some of it back. he will be here to make his case later, it's the ad man's warning of the world the ceo of the world's largest ad agency speaking out about why u.s. companies are