♪ ♪ good tuesday morning welcome to "squawk alley." an awful lot to get to this morning. we begin with the markets overall. only five stocks contribute to nearly half the gains for the s & p, amazon accounts for nearly 36%. just published a new note today on amazon with bullish commentary, joins us with senior markets commentator mike santoli. looking at staples and concentration of power and few big names, does that take

anything away from overall performance of the year? >> i think amazon stands on its own as one of the best performers even with the internet and digital media group which is what we cover, they continue to outperform and impress interestingly, this morning as you pointed out, we had a couple of notes, one on ebay and one on amazon, talking about the new supreme court decision will have drastic impact on e-commerce or commerce online. amazon happens to fall on the positive side on it, meaning they're likely to benefit at the expense of other e-commerce platforms like ebay. yes, we think amazon continues to return positive, have positive returns this year, continues to do well. >> mike, if these few stocks took the market up, could they take the market down just as easily

>> sure, they could take the market down because of their heft i don't think these stocks account for the relatively small amount of net up side, tells you it is only these five stocks working. it is just the way the math works. looking at big chunks of market cap and the way they're added to, these are pulling a lot of weight i think there's concern we will get to overconcentration if trends continue and if a lot of other groups stop performing with them. if you look at the daily tally of stocks going up versus down, it is positive all-time high. not as if five stocks are performing, the rest are going down that's something like we had in early 2015 when it was just a handful of stocks supporting the market what you have here is outsized gains effecting the indexes, and other ones tagging far behind but still doing okay >> s & p at 2794 folks are wondering if we hit

2800 semis have been a sort source of weakness -- a source of weakness. >> i think they're part of the story why we stalled out they obviously surrendered to leadership both want to see them participate and get in gear. they're kind of the industrial part of tech that is a cyclical bellwether as well as the nasdaq this is the best shot we had at 2800 in this run sentiment was subdued the last few weeks, getting close to earnings season. valuations, less head wind than a few months ago. >> i want to go back to comment about the fact that amazon is well positioned in light of scotus decision, ebay not so much what do you mean by that >> think of amazon as generating roughly half their business by selling their own first party product. they have been paying taxes on these at the state level for years. they have the wherewithal, the tools, services to offer to

third party sellers. that's what the supreme court is effectively asking these online market platforms to do ebay on the other hand which has over the last 20 years been selling or been a platform for third party merchants to sell, does not have the tools in place. they will have to acquire these tools. they have to partner with somebody to provide them with these tools. so if you're a small merchant, you have the choice of either doing it yourself now, ebay puts the onus of doing it on you, or letting amazon do it for you, and by the way, amazon at least in two states in pennsylvania and washington state have been doing it for third party merchants for free that's what i'm talking about. >> so is more of the market like amazon or like ebay in the sense that is this going to damage more e-commerce competitors or perhaps drive them into the arms

of the likes of shopify and adobe and other players trying to ease the load from the new rules and regulations? what's going to happen to the e-commerce cohort? >> i think that's a good question clearly i think amazon is a winner the other winners are those companies like you made the point of adobe and others that have the capabilities and have been inquisitive in the last two to five years to acquire a solution to help small merchants, small businesses do what amazon is doing as they stand alone. those that fall behind are companies that don't have capabilities or frankly the scale to get those capabilities. >> really quick, sorry to interrupt. the vice president talking about brett kavanaugh. lost the shot. looked like it was an impromptu

gathering. and some reporters obviously changing mike pence. we heard pence and kavanaugh together, i am told. keep an eye on that after the nomination that's big news today. try to turn the tape quickly as we can turning back to tech, we haven't seen i would say an out sized number of calls, same valuations and risk. >> that's right. >> how long does that take >> takes awhile, funny, when people say tech isn't that expensive, they say facebook and alphabet they never say amazon and netflix. i think you can find areas of tech where it looks like okay, they're roughly in the zone of the market multiple, but you can't deny microsoft had massive pe expansion, valuation, revaluation is a big part of that story too i think you can't get away from the fact it is a richly priced part of the market, just not at some crazy extremes in aggregate compared to the late '90s.

>> before i let you go, i want your thoughts on news out this week that antitrust critic of amazon has joined the ftc, possibly signaling that you could see regulators maybe taking a closer look at technology firms and power of companies like amazon. >> look, i think amazon has unfair competitor advantage, but the unfair part was really earned it wasn't granted or bestowed. yes. i think you have a lot of unhappy players out there, be they off line retailers, smaller online players, et cetera. i'm in the camp of those that believe to the extent you continue to build your moat intrinsically and organically, you should be allowed to do it i don't believe that amazon is a monopoly in any way, shape or form yes, they have roughly 50% market share online commerce google that 80% market share of

search facebook has 80% market share of social as percent of overall retail, amazon is maybe 10%, if that >> yeah. ebay had gsi commerce would have positioned them well, a business set up to provide e-commerce support to smaller businesses but they sold that off, not thinking long term enough. goes to show private equity comes after you, activists, investors, they're not always right. >> or cable tv, investors, yeah. >> thanks, guys. talk to you soon and coming up, a facebook co-founder joins us as his new streaming service gets set to launch on amazon fire tv and apple tv his take on media disruption and fallout over facebook when we return more "squawk alley" next

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it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. thank the senate majority leader for outstanding leadership the last year and a half with this administration. president trump has actually seen, confirmed more judges to circuit court to this country than any president in american history, and we're grateful to the majority leader and to republicans in the senate for their strong support we look forward to working closely with you later to advance the senate's proper role

in considering judge brett kavanaugh as the president's nominee to supreme court of the united states. as the president said last night, judge kavanaugh is a man of impeccable credential and character and we're very confident that working with you and reaching out to members of the senate in both political parties that members of the senate and the american people they represent will see as the president said last night that judge brett kavanaugh is quite simply the most qualified and most deserving nominee to the supreme court of the united states and we're honored to be able to bring him here to the united states and begin the important work the senate will do in discharging constitutional duties to consider this good man and the president's nominee to the supreme court. >> thank you very much, everyone thank you. thank you. we're done thank you.

thank you. thank you. thank you, everyone. all right. that's it. thank you. >> powers of advice and consent in play as brett kavanaugh makes a first trip to the hill with the vice president and senate majority leader for a series of meetings obviously if you're unaware by now, 53 years old, nominated by the president to replace anthony kennedy. we will watch for those hearings in the weeks to come. >> certainly let the games begin. millions of dollars are set to be deployed by opponents and critics as this nomination plays out in the coming months one we'll continue to watch. elon musk in china as they announce new factory plans in shanghai we have been following this from the beginning. >> reporter: the significance is not only because china is the number one market in the world for electric vehicles, but tesla needs to increase its presence there, which is why this picture

taken in shanghai of elon musk shaking hands with the mayor of shanghai after they inked a deal for tesla to build a mega factory. this is significant when you look at what the plant will produce. the location will be in shanghai importantly there will be no local partner. unlike general motors or fiat who had to parking lot ner with a chinese company, it will be wholly owned, capacity, 500,000 vehicles, but at least two years before we see a first vehicle built there. don't be surprised if we look into 2021 by the time that finally happens. tesla has been in china number of years now, but really has struggled to gain traction outside the main cities. you see them in shanghai and beijing. here's one of the galleries in shanghai sold 14,771 vehicles

14% of worldwide sales last year would love to increase that. keep in mind as you look at shares of tesla, the cost of a tesla model s in china is now gone up by $27,000 compared to a week ago because of retaliatory tariffs. while this is an important step, guys, it is going to be a long time before we see benefit to tesla in terms of production in china. >> all right phil, one question for you any battery production outside of use in cars expected from this factory green energy certainly an important topic over there as well >> reporter: it's a possibility, but they're not talking about that now they said with giga factories, they could potentially build batteries beyond electric vehicle, already do for energy storage, battery generation for utilities, john, so that's a possibility. >> all right phil, thanks elsewhere in tech,

entertainment streaming service philo expanding, offering a 40 channel package for $16 a month. they're closing a $40 million round of funding led by amc networks, discovery, and viacom. andrew mccollum, the ceo, one of facebook's founding team members. andrew, great to have you. >> thanks for having me on >> tell us about this time in tv we've seen this at&t, time warner hookup. at&t watch tv is out where they're offering free tv with unlimited packages you're offering more affordable tv, minus sports where is this all driving us to consumption wise >> well, i think that the big trend we're seeing is a lot more choice for commerce,nsumers.

better options if you use a service like ours, you can watch on any device, you get unlimited dvr, search and interface are quick and easy to use. it is great to see all of the innovation happening in television because the benefit is to all of the consumers out there getting a much better tv experience for a much lower price. >> how does the chess board look to you distribution wise i imagine roku has to be a huge distribution channel, amazon fire tv also out there, apple tv, google has youtube out there, i don't know if those are avenues you can work through what do you expect to be your main avenue of getting to the consumer and how much is it going to cost you? >> well, it is nice with an internet delivered tv service you have many more options for reaching the consumer. you're not confined to a clunky expensive box in someone's

living room with a track roll. you can deliver the service on any of the devices and consumers can choose what device they want to use that's why it is so important for us to expand to more platforms. it lets people say i prefer apple tv or fire tv or roku based on what other apps they use, what interface they like best we should ideally work on them all. it is nice to have that flexibility for us gives us more ways to reach consumers and new options to market the service, and so that's a positive for us as well >> andrew, i want to go back to the fact we're seeing so much m and a activity in consolidation in media now how does that play out in terms of content and prices you pay for the content? are you anticipating you could see upward pressure as more of these companies become bigger

and join forces? >> well, it's interesting, you guys mention the time warner, at&t merger. you know, time warner doesn't have the best track record of merging with three companies that started with the letter a i think as far as consumers are concerned, there's cause for concern, certainly vertical integration, monopolization doesn't help consumers, it allows in coup allows them to raise prices, force them to pay more a lot of competing services recently all raised prices by $5, just in the last few weeks you're starting to see a little of that even in the ott space. whether we'll see more i guess we'll have to wait and see, but definitely seems like some mergers could be negative as far as consumers are concerned >> andrew, is there room for

philo do you think on facebook watch? do you want to be on facebook? is facebook built to be a distribution platform for the kind of premium content you're trying to put out there? >> we talked to lots of folks about places to make philo available. one of the core principles, we want to build the best tv experience, the best product experience when using philo. we're excited about platforms where we have control over the end user experience. that said, we're talking to lots of people about ways to make content available, and certainly we want to be where people are so that they can get philo as easily as possible. >> andrew, as a founding member of facebook, can't have you here for an interview, not ask your thoughts given the fact that company has been under fire for how it handled data in recent months do you think it has taken the

appropriate steps, has it been enough in terms of some backlash and scandals we've seen play out? >> you know, i haven't been full time with the company for a long time but i know that at least the people that i know at facebook are earnest, well intentioned people i think they're trying hard to sort of do the right thing here. then again, i mean, facebook is a very important kind of force in our culture and our society, so i think the scrutiny is warranted, but they seem to be taking it seriously from my perspective. >> thank you, andrew mccollum, ceo of philo and one of facebook's founding team members. thanks for joining us. >> thank you for having me as we head to break, look at shares of xiaomi, rebounding in a second day of trading, surging more than 13% after less than impressive debut

xiaomi added $6 billion to market value with the move aly"ft tquk lot more "saw le aerhis break.

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welcome back the overall top state for business in 2018 is texas. what about some of the other winners this year? scott cohn is crunching the categories, working on this for months he joins us now with more. scott? >> reporter: hi, morgan. remember, we rate the states not just overall but ten categories of competitiveness there is a top state in each of those categories here is this year's honor roll or call it honor wall. work force, most important category is massachusetts. not only does massachusetts have one of the most educated work forces, no state with a better record on worker training programs infrastructure, almost no contest, texas is number one ships the most commodities by dollar value, and texas bridges are the best in the nation cost of doing business

arkansas, wages and utility costs are low and you can get industrial space for a song. the best economy is texas with a wealth of industries, these days lots of oil wealth as well quality of life, vermont, edging o out hawaii technology and innovation, california no state earned more patents and attracting science research money. education is massachusetts business friendliness, legal and regulatory climate, new hampshire where they mean live free or die. access to capital, it is california not just venture capital but bank lending to small business and mississippi. two bedroom apartment for $778 a month, same kind of apartment in san francisco would go for about 4,000. how did your state do in the categories and overall see the whole study, read about

issues we looked at. topstates.cnbc.com. >> questions about education in that state, wonder what you made of some of his answers >> they always look at things differently in terms of how they measure it they say that this state with so many people that come into the state really on a daily basis, that some of the traditional measures of education don't necessarily apply. one of the other interesting things we talked about the trade situation, what it might mean to texas next year if we're in trade war and the state is heavily relying on exports and imports, what will that mean and it kind of remains to be seen one thing he told me off camera we didn't get a chance to talk about, how texas is benefitting from tax reform, where a lot of people he says are flooding the state from high tax states because of new advantages with the new tax law.

>> scott, how different would the list look if it were top states for workers as you mention, texas is number 37 in education, 31 in quality of life doesn't get great marks for inclusiveness. notwithstanding great marks that you mention that texas gets that put them at the top of the list, how different would the list look if there were more weighting toward those things and quality of life? >> reporter: well, if we were looking at top states for workers, we would rate things differently. we might make quality of life a more heavily weighed part of the study. might look at unions and right to work and things like that, which under our study, state gets credit for having low union presence and being a right to work state if we look at top states for workers, may look at that the other way around it is kind of apples and oranges. some offset each other, where a state is good for business may not be good for workers.

but at the same time there's argument to be made that a good state for business is good for all and that workers ultimately benefit. >> always an influential list, scott. gotten more influential over the years. scott cohn in texas, top state for business this year >> eat some barbeque for us. markets are about to close in the uk and across europe. stocks on track to post a sixth consecutive day of gains in four months data shows the uk economy picked up speed good morning >> reporter: it has been a tumultuous couple of days for the uk all the action is the political backdrop there are two senior cabinet resignations in the last 24 hours. last time that happened was 1982 there was concern that perhaps this would trigger more resignations and lead to no

confidence vote for theresa may. since then, there's a bit of a turnaround and what she managed to do is replace the officials that resigned. that's the chief brexit boris j has been replaced. back to business as usual. new cabinet met again this morning. really, the expectation from here is perhaps she has more mandate going forward to pursue this softer type of brexit scenario put forward at the meeting last friday. i think that's the reason markets have not reacted so much since all of the turbulence going on here. if you look at the cable performance, still lower than where we were before this kicked off. ftse 100 had somewhat of a recovery as far as the investment community is concerned, expectation is going forward at least for the time being,

mrs. may managed to survive another day, and expectation is that she will hopefully try to deliver on a softer brexit then again, there's expectation that bank of england may go for hike in august economically things are better and a little political stability for the foreseeable future. >> lots of action there as the week plays out thank you. over to sue herrera with a news update. >> good morning, jon and everyone thailand prime minister says the 12 boys rescued from the flooded cave in northern thailand were given anti-anxiety drug to represent with the rescue. dismissed that they were given tranquilizers before the high risk journey. search and rescue under way following severe flooding over the weekend in japan that killed

at least 155 people. 50 people are still missing and thousands of homes have been flooded. british police seized a car in southwest england in connection with a poisoning investigation. a team of 100 officers working to discover how and where two more people came in contact with the nerve agent. one died and the other remains in critical condition. back here at home, michael flynn, president trump's former national security adviser returning to federal court his first court appearance since a guilty plea in december of lying to federal agents. the judge expected to make a sentencing ruling. you're up to date. that's the update this hour. back to "squawk alley. carl, back to you. >> see you in a bit. when we come back, former department of homeland security secretary michael chertoff is with us. why he says cyber security is the biggest threat the u.s. faces, has a new book to talk

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i we worked with pg&eof to save energy because wenie. wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california. we continue to fight the track over big tech and handling of private user data this week four house republicans sent letters asking questions about location information and how companies handle customer data when it comes to third party apps joining us, a first on cnbc interview, co-founder, executive chairman of chertoff group, michael chertoff, out with a new

book, sounding the alarm about this very issue called exploding data, reclaiming our cyber security in the digital age. mr. secretary, good to have you with us. >> good to be on. >> we've seen so many books come with scary theories about what could happen to the grid, to air traffic as data gets stolen or hacked is that what this book is about? >> that's certainly part of what is in the book, but the book is broader than that because as someone described it, data is now the new gold or the new oil. it is the most valuable thing we generate what i think people don't realize is how much data we generate you understand if you sign up for social media, you put certain amount of data on the internet, you don't realize what others say about you is also on the internet and also being housed and analyzed and your location data, what's from your cell phone, what you buy at the store with a credit card

all these things become combined to create a day by day picture of what you do that's a transformative issue for our society. >> not something we can control or reverse or manage really. >> we can manage a couple of ways couple things we can do ourselves. then there are larger legal and social issues we have to deal with in congress or in courts. for ourselves, we can be careful and mindful about what we sign up to share data about a lot of times we give people our e-mail address or information about where we live in order to participate in some online activity. the reality is all of that once it is out there is not going away you have to ask yourself, do i really need to do this there are things you can do to protect security again, when you buy something that's wirelessly connected, one of the refrigerators that are smart or baby cameras that are smart, you need to make sure

they built security in many companies don't at a larger social level, we need to level the playing field between the individual and those organizations that are harvesting data, and to start to give people control over data, even once it is collected. we're seeing that in europe and even in this country the u.s. supreme court has begun to make steps giving people more control and more protection for their data. >> one of the biggest issues we've seen played out in the 2016 election is how that data then contributes to the weaponization of information >> yes. >> how do you get at that issue. it seems like it is just getting worse now? >> that's where it is challenging. you have to separate two things. one when foreign governments like the russians try to manipulate us, playing around with our social media. they either use artificial means to drive up searches or pretend to be your friend to pass on a story that's a negative story,

and i think we can stop that i think platforms can stop that. the harder issue is do you regulate content if someone puts out information that's distorted or exaggerated. if it is an american, they have free speech. we have to start educating people how to read these stories on the internet with a critical eye, and ask yourself some questions about do i trust the person who is conveying the information. does the information make sense, fit with other things. that's part of an educational process we have to start actually in our schools and continue up as we become adults. >> secretary, what do you think is the next really big legal question on the issue that we have to tackle we are nibbling around the edges, equifax breach caused people to focus, encryption on

the iphone, whether government should be able to demand certain kinds of access, is it around privacy when it comes to government is it around responsibility when it comes to massive technology companies that hold so much of the data >> i think the issue of what the government can do with our data is always going to be a critical issue and we see the encryption debate goes on and on. i believe encryption is important for everybody's security, even if it makes it more difficult for the government, i think that's a price worth paying in many ways, the government is closely regulating that. it is the private sector and use of data by private companies that is now becoming the source of concern in many ways, private companies harvest much more information than the government in its wildest dreams would ever collect. can the information be used to manipulate you, to intimidate you, to coerce you if, for example, an employer

looks at all the information about you and decides they don't like what you eat, where you drive, how much exercise you get, how well you sleep, should that be a basis for denying you a job? these are issues we're beginning to tackle. >> that's heavy stuff. i like the way you call it exhaust. we spend time talking about 5 g and what it will do to transportation, so the problem will grow before it narrows. >> as we have more and more wirelessly connected devices, so-called internet of things, these things are constantly generating data about everything, where you are, what you're doing, and that means when it is all collected together you get a pretty detailed picture of your life, and we need to think of how to protect privacy and more importantly freedom when that happens. >> in light of this conversation and the role in the u.s. the

court has to some extent played, the fact you're former federal appeals court judge, your thoughts on judge kavanaugh as pick by president trump for the supreme court. >> to be up front, i have known brett kavanaugh, we were colleagues 15 years ago in the bush administration, known him since then i want to disclose that up front. i think he's going to be a great judge on the supreme court he is smart, he is fair, and most important, respect for the rule of law and the constitution people sometimes tend to reduce the issue of judge selection to which party was the party in power when someone was appointed, but the vast majority of judges, and i include judge kavanaugh in this, are professional they have a fidelity to the rule of law and oath of office and are not predictable. one of the great surprises is that they wind up not doing what

they thought they would. i am encouraged by the selection. >> what do you think of the concept of people owning their data, is that even useful when much of the data about me, i'm not conscious of it, might be where my eyes are looking any particular moment, what i am devoting attention to. can i own something that i don't know exists? >> that's one of the critical issues there are stories recently about people that sign up for echo or siri or one of these things in their home, through some error it starts to record their conversation or technologies that can tell whether you're watching something on television or whether you turned your attention away i think where the law will move is to acquire greater disclosure of what kind of data is being collected and more robust requirements for permission before that data is used europeans are moving that direction, sometimes they're

overly bureaucratic, but the principle you ought to be informed and have a right to control your data is i think going to be something we see in the next few years. >> before we let you go, how would you characterize our own government, either congress or the administration's willingness, ability to handle and evaluate all of this >> i think congress, you know, they nibbled at the edges. typically congress tends to take up an issue, a particular issue like the facebook issue and be very specific. what's interesting is to watch the supreme court as they have increasingly begun to say we need to begin to protect people against new forms of inaggravatiinvasion o security and privacy last term in carpenter, the justice said you have to have a higher level of protection before the government can get your locational data interestingly, justice gorsuch who was just appointed by president trump was actually talking a little about maybe you

have a right to control the data even when it is in the hand of a third party, you don't totally surrender. i think we're seeing good thinking along those lines. >> i want other thoughts on other news of the week with president trump headed to nato summit, the talk around our allies, other members of nato bucking up and beginning to pay their fair share, are we seeing a boost globally in defense spending playing out for the sector more broadly? >> i think you're seeing boost in defense spending. first of all, i think europeans recognize they need to step it up, make their contribution a little more robust beyond that, look at the world you have the russians being much more aggressive in europe than was the case ten years ago that means you've got to go for capabilities you have a more aggressive china. the world requires that we begin to think about our security and protect ourselves perhaps in

ways we took for granted i think you're going to see that globally. >> congratulations on the book and thanks for talking with us about it hope to see you soon michael chertoff, author of the new book "exploding data." when we come back, apple app store ten years later. stay with us

here's what's coming up. stocks on the edge of a key

level again. can they break through, hit new highs? we debate that. one of the best performing names gets the analyst ax. which high flyer he says it is time to dump and traders are answering questions. send in questions. tweet us use #askhalftime see you at noon. ten minutes away see you then. >> looking forward to it, scott. ceo of postmates joins us on "squawk alley" after this.

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post maids expanding to another 100 cities and announcing an extension to chipoltle and reducing delivery frees. the ceo joins us now great to have you back on the show >> thank you so much for having me and good morning. >> good morning. so let's talk about the expansion because i would imagine it's taken sizable capital to be able to expand the way you're doing so today. >> we're launching in 130 new cities today and salt lake city is among them. detroit, charleston, south carolina among them. so we're really trying to capture more of the suburban

markets and just top markets we have in the past and we believe it's a beautiful thing for our customers. serving one and two u.s. households >> i would imagine you've quantify ied the opportunity in term of the suburban markets how big is it? >> you know, we believe it could add about a third in total volume in the next couple of years to the overall volume on the platform so it's significant. >> you guys and door dash are doing these big pushes into what might consider second and third tier cities. i'd be concerned for investor's sake is there enough running room for both of you long-term to operate there profitably or do you think there's going to be b a shake up >> you know, we look at our unit economics very carefully and when you look at it as a company today, the majority of our markets we're operating in are profitable we wanted to wait for this moment to launch new markets and

we're confident with local mar chants, large partnerships we're working with walmart, panera bread, shake shack. that helps us the smaller markets. >> i want to dig into that furth further. you start looking at the broader landscape today, you had walmart anoubsing same day delivery for jet.com. they're going to be using parcel to do that just a couple of weeks ago, you had amazon unveiling its own last mile delivery service looking at this broader e ecosyst ecosystem, how is it differentiating itself and is there room for everyone? >> i believe it's going to be a tremendously large market. just for food delivery alone, i believe we're look iing at trillion dollar market soon. you currently have different brands, companies, trying out

different things we've been in the market for over six years we've been the lead er in many o the markets. we're operate ng we have over 50% market share in l.a. we own the millennial customer and we're very, very excited about efforts from our competitors to grow the mind share into just grow the awareness of the delivery and on demand delivery in general i believe at some point, you'll have some down the road, but it is too early at this point, all the companies in the space are growing and we're growing extremely fast amongst them. >> what happens to accuracy of delivery and timelyness with all this expansion sarah eisen is mad at you guys she says postmates hasn't been good for her. my deliveries have shown up fine what happens >> it's a different challenge the scale in the suburban versus urban area if you look at new york, you have different challenges than you may have in lexington, virginia but none the less, you can be

insured as a customer at the check out, you see a predicted delivery time. you're doing very, very good and the high 90% of accuracy to sticking to these times and personally, i'm proud of our team that is working now with 170,000 postmates across the country to make sure that most deliveries arrive on time and in top quality. >> we'll leave it there. thanks for joining us. the ceo of postmates dow's up 137 "squawk alley" is back after a quick break. old people about geico... (harmonica interrupts) how they could save 15% or more by... (harmonica interrupts) ...by just calling or going online to geico.com. (harmonica interrupts) (sighs and chuckles) sorry, are you gonna... (harmonica interrupts) everytime.

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make febreze part of your clean routine for whole home freshness. there's an app for that. tim cook tweeting that this morning as the company seceleb e celebrates the tenth anniversary of its app store. when it launched, they saw 10 million downloads in its first weekend. it changed the software business forever. people often forget how hard it was to download successfully legitimate software to any platform before there. everything we do pretty much download wise is like a mini version of the app store >> i saw an increase of apple

price target today based on ar, which is taking a longer term view there are those who did not m model the app store into their apple numbers. that changed >> still trying to figure out. >> watching the markets closely. dow up close to session highs, up 152 as we start countdown loo k o'clock to ayeshaings earningy let's get to judge and the half. and welcome to the halftime report i'm scott wapner top trade, breaking the resistance key level stocks are once again approaching. will the third time be the charm? here to debate, joe, stephanie, pete and let's begin with stock, which are higher russell hitting a high as the s&p sits around a critical level. pete, 2800 is what we're watching on the s&p. we've come back an