good morning, it is 11:00 a.m. at chrysler headquarters in auburn hills, michigan 11:00 a.m. on wall street. "squawk alley" is live.

good morning i am carl quintanilla with jon fortt. we begin the busiest week of earnings season. alphabet tonight, amazon, facebook, twitter later in the week along with other big names on the dow industrial. trade tensions, new threats from the white house to iran taking center stage as well mike san to mike, a lot to process. >> remains to be see if earnings season is a catalyst here. some of the ones missing seem to be getting punished more than beaters are getting rewarded that's a common thing. six months after the peak, january 26 was the high for the market, thursday is a half year since then it is a prolonged reset process i think we have been going through. most corrections have fully recovered. you have to ask what's wrong as an overlay maybe what was wrong with the starting point

up 4.8% s & p year to date, on track for 10% annualized return including dividends. pe multiple is back to the five year average you look at that picture, say this is a decembnt year. we were above this level, and 20% growth, repatriation of hundreds of billions in cash, record buy backs i think the edge remains slightly with the idea this is a bull market in this kind of recalibration phase right now. >> the negative comments we're getting out of calls or negative guidance, today itw on currency, margins, costs, should that be a surprise, as much surprise as earnings >> i don't think it should be a surprise at all. that's the threat down the road. some areas, wages are doing that job of compressing margins the starting point for industrial valuations at the

beginning of the year is really the problem. it shouldn't have been a surprise, it is just they got really expensive you look at the boeing and itw, they had to adjust to the new world given where valuation started at. >> what do investors need to hear from big mega cap tech companies this earnings season normally we're looking at those as bellwethers for tech, but they're huge for the market. >> you haveto have the multi year story remain intact i think the whole point, the reason they're here and able to lead the market, people say i don't have to worry about materials costs, i don't have to worry about end demand because they're magical growth machines. that pretty much has to be i think a firm stocks have flattened out a bit. you have to wonder if the market is starting to think maybe they have to come back to the pack. >> mike, stick around. let's take a closer look at tech

with big earnings on deck this week joining us, dan morgan, vp, portfolio manager with raymond james. good morning to both of you. a couple of top picks are all facebook and alibaba it is up less than 20% in 12 months which makes it a lagger among big tech companies why is that a big pick for you, where do these companies fit in the overall narrative you see playing out. >> yeah, so alibaba consolidated recently last year was up roughly 100%, it is consolidating gains. concerns around china with tariffs, doesn't effect it that much, but it is a concern. you have seen some devaluation recently of the chinese

currency, 6% of the last few months that's weighing on the stock overall, look at the company growing 40% on core retail business, trading 17 times core earnings we think that's too cheap. have a $300 target strong buyers at these levels of alibaba. >> dan, i was asking mike what he thinks investors need to hear from big cap tech this earnings season i'm curious what you think alphabet investors specifically are going to want to hear from that company, what's going to move that stock. does it have to do with detail on cloud we started to get first detail with the $2 billion annual run rate, or does it have more to do with overall top line gross. same thing they're looking for from amazon? >> i think the key to the upcoming google report is not only what cloud is doing, google, gcp which competes against aws and azure, but what's going on with traffic

acquisition costs. last quarter we looked at the other revenue category, we into youtube is a big part of that. how much is that impacting gross margin looking for that to drop to 72% on the upcoming quarter. we got a little scare in the first quarter with regards to traffic acquisition costs as related to the other revenue category i think we're going to focus on two things, what's going on with gcp and how traffic acquisition costs are impacted by youtube. that's where the street i think will zero in. >> john, another secondary piece, these companies have to persuade investors they have high return investment opportunities with the capital that they have now i think that's why amazon kind of gets to be center stage that's always been the question. they seem to never lack for the next thing to go after if people can be satisfied with returns off that, that's probably something from a 10,000 foot level, that is a question.

>> aaron, is this more of a cost quarter where investors are going to want to be sure companies are maintaining cost discipline, that they're not overly effected by things like tariffs or is it more one of the top line growth quarters based on what we saw from microsoft. investors wanted to see pc growth translate to them they overperformed in that arena. and cloud growth, et cetera. is it more on cost side or on revenue side >> clearly both are important. i think it is company by company. google you'll see expense growth last quarter, operating expenses, want better leverage in q 2 we'll be watching for that amazon clearly still gets benefit as long as they produce strong revenue growth and start to show incremental in the advertising line, i think

investors are focused on top line at amazon, but we want improving leverage with that as well clearly with valuations up, you look at our universe, large cap 7% above the three year average and small cap 30% large caps are reasonable at these levels here. >> closing in sights on microsoft, ibm >> netflix, it was a clear miss based on their own forecast, i am not sure you can extrapolate to amazon. i think reaction will be the tell it will be the tell whether people are leaning too far in the direction of amazon has been lead dog of the entire market, can it continue that, or time to say we priced it in. that's why i think response matters. >> we will see dan, aaron, thanks when we come back, end of an era over fiat after the departure.

why tesla is asking for cash back from key suppliers. kara swisher joins us to talk about her remarkable exclusive interview with mark zuckerberg last week. dow down 53. dow rofrg ouabt 25 k "squawk alley" back after this now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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sergio marchionne stepped down he was recovering from surgery phil lebeau is in chicago. first to you >> the statement you read came out saturday from the board of directors atrop fiat. we heard s & p that they're not changing ratings regarding chrysler with the replacement of sergio marchionne as ceo good news for the company there. sergio marchionne's departure is a huge loss for fiat chrysler that he is no longer running the company. suffered a rapid decline in

health and will not, not be returning to the company who is running it now? mike manley, named ceo of fiat, will be overseeing the company's european operations since the head announced this morning he will be leaving the company. the gentleman in charge of europe was passed over for the top job, mr. manley now has it his challenges are significant implementing a five year growth plan he helped put together with sergio marchionne, expanding jeep sales remember, mike manley has been in charge of that brand, it had tremendous success that's key part of the growth. and then is there a sale or merger in the future sergio marchionne said for months if not the last couple years ultimately needs to be consolidation within the auto industry those are the challenges facing mike manley. we'll hear more thursday that's the first time people

expect to hear him make comments about the transition at fiat >> robert frank, what does this mean for the ferrari brand >> this was a huge loss for ferrari. owners, dealers are asking the same question. how will he change the most storied brand in autos and racing stock down 5% after they named him, he is a board member as new ceo. he was chairman of philip morris, credited with expanding sales of marlboro cigarettes and other brands overseas. a lot of people question whether a noncar guy can run ferrari and top ferrari historian appraiser told me ferrari is all about emotion, style, success, drama. buyers want a leader to identify with and true passionate car guy would certainly be a big help.

ferrari is a big success under marchionne's plan to take it public, expand the number of models he will have to oversee a transition as they launch an suv and go into hybrid engines people that worked for him tell me that camilleri is disciplined, hard working. he might bring slightly better governance and structure to ferrari. he is also passionate about the ferrari brand. marlboro, you may remember sponsored the formula one team, he knows the team well, and he also, this is important has a large collection of his own ferraris i spoke to a dealer this morning, he said, quote, i own a dealership, i own ferrari stock and own lots of ferraris, let's just say i'm not selling any of them this morning. this is a guy who even though he came in under sudden

circumstances could be a strong positive for the brand, guys >> that's interesting. phil, i wonder, spent a big part of the morning talking about marchionne's legacy, saving fiat, erasing its debt, saving chrysler, making race this huge public success i wonder if you had to rate his accomplishments, which would come first >> they're pretty similar in terms of how their level of magnitude and importance fiat chrysler was a stroke of genius you go back to 2009, the obama administration, there was a large con contintingent saying go, let it die it will be better for the industry overall we don't need the chrysler brand around there were those who said do you have to let it go, it will mean loss of jobs, and sergio marchionne came in and said look, i can make this work and that's really been a stroke of genius for him. then when you look at ferrari,

remember when this first came, when he first brought up idea of ipo, purists were up in arms no way, you're going to dilute the brand, you don't know what you're doing stroke of genius it worked out better than 99% of people were expecting. >> all right robert frank, thank you for joining us phil, before we let you go, shares of tesla are under pressure "the wall street journal" reporting the company is asking for refunds from some of its key suppliers. what's that about? >> well, this memo, we reached out to tesla, haven't heard back for comment on the memo, seen according to "the wall street journal," they've seen the memo sent to a supplier essentially are asking for cash back regarding payments over the last couple years. i should point out i talked to a couple of people in the auto industry this morning, said look, how common is this it is fairly common. you don't hear about it often, it is common for automakers to go back to suppliers to put

pressure on them to have cash back or productivity guarantees if they can't achieve a certain level of supply, et cetera the issue here is the language that was used tying in the cash back guarantees with profitability and future success at tesla that's what spooked investors. look at the tesla bonds. carl, you talked about it with jim cramer why are yields up and bonds under pressure because people are a little spooked by the language in this memo >> yep below 90 there, you see the yield. big volume in the first hour or so of trade, at least on the equity front fell below 300 for really the second time this month, seen by some as a bit of a demarcation line >> i think, carl, i may start asking my suppliers for cash back >> there's been a lot of that. i didn't know you could do that. that's good. >> thank you, phil thanks to robert frank as well.

the president setting his sights and tweets on iran. what that may mean for investors when we come back. dow is down 25 with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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took heat for comments on regulating questionable content in an interview on kara swisher's podcast the other day. >> i'm jewish and there's a set of people who deny that the holocaust happened, right? i find that deeply offensive, but at the end of the day i don't believe that our platform should take that down because i think that there are things that different people get wrong, either -- i don't think they're intentionally getting it wrong >> kara joins us congratulations on a remarkable interview. good to talk to you again. >> thank you yep. how you doing, carl. >> so much attention was placed on that exchange and the bit

about holocaust deniers and so forth. i wonder if you thought it robbed the overall podcast of something because there's a lot in there >> there is. it was obviously a controversial statement at this time where there's question about what content facebook let's and does not let on the platform. it is a big deal, they deliver so much content to the world in a place where most get their news it is a big deal that he said that, it is the way he said it, the example he used with intentional was a problem. it reveals an attitude towards content and what should be allowed on the platform. i think it is disturbing people, given this guy has a lot of power over people's content. there was a lot of other stuff he wanted to keep talking about a lot of things. give him cudos for doing that. with china, would you rather have facebook or the chinese government leading the internet.

he also talked about a wide range of things, cambridge analytica, about what he will do about mid term elections there's a lot in there that's one exchange, the one minute drowned out the other 89 for quite a few, quite a lot >> kara, to me the most interesting thing about your interview was the emergence of what i would call this zuckerberg doctrine, just more detail around the way he thinks about content, about speech, and his unwillingness to sort of police what sort of ideas people are allowed to share he is more focused on what facebook is going to get fueled behind promoting, behind letting spread hadn't heard him talk about it at that level of detail. what do you think is the most significant new insight, new development in his thinking you came away with >> i think it is

he is developing i don't know if it is a doctrine, but he is. felt like it is a country, so big, the number of people that use this it is a community where the standards are still evolving, the thing i got out of it is the thinking is so muddled around what to do, what the cases are i'm going to be going back again and again to facebook because with every new thing, they have to figure out a new theory and i think they're ill prepared to do that, as much as they're trying, i don't think it is malevolent, they're not being arrogant about it, but these problems are difficult and thorny one person who didn't take enough humanity courses obviously is figuring this out for the rest of us wonder whether government has to intervene. we talked about whether facebook

should be split. he didn't think so and a range of issues. these are big issues being decided by essentially for all in tenl intents and purposes a single person. >> we talked about their challenges, with the kyron on the screen is zuckerberg taking heat friday, 211 was an all-time high do you think the stock is reflecting a business model where investors say management is not responsible for what goes on >> yeah, i think they're saying that i think it is growing, it is doing incredibly well, especially instagram investors feel good about this advertising model. i would be wary about a couple of things. one, whether this is a sample over time has gotten so big. secondly, innovation, whether he can remain innovative. that's the big question, where are the competitors coming from.

he doesn't have a lot of natural competitors if you think about it that's the thing i would focus in on, key in on this group of people, stay rigorous and innovative enough to continue to grow the company i think that's probably the biggest issue. that's why wall street is not reacting right now, the machine is working well >> you mention his comments about competition in china if i recall, he was responding to your question about potential of breaking up facebook, that there were pressures from the democrats, increasingly perhaps, to do that he was saying china is going to have big companies no matter what we do, and they're going to be sucking in a lot of data, no matter what we do. do you want it to be us collecting and holding this data and deciding what to do or do you want it to be china. i doubt chinese companies will be as cooperative with the government >> right >> how much of that message do you think this administration that is clearly sympathetic to

qualcomm setting it up as a national champion is going to embrace and keeps the likes of facebook from facing that kind of regulatory scrutiny >> i don't think this administration will do anything to facebook. another thing we talked about is the russian use of the platform in the elections i think the administration is far away from regulating facebook in any way. i think you're right, democrats are more hostile, if they're given power, facebook could face scrutiny and possibly splitting off part of it not today though that was an interesting thing. it was like you or me. it was kind of funny they're so awful, wouldn't you rather have me than my values. i'm not sure that's the choice the american people have, but they need more scrutiny of facebook and social media companies and not just social media companies but all of these companies because they're so powerful, and they essentially

run in their lane, their enormous lanes almost unfettered without regulation i think that's going to change over time. >> we'll have earnings to play with on wednesday night. kara, hurry back talk to you soon >> thanks. let's get to seema mody. >> good morning. european markets closing lower as trade tension worries linger ahead of the european commission president's trip to the white house wednesday. all of the stocks, worst performing led by defines in chrysler and ferrari after sergio marchionne's sudden departure. shares of those two names down sharply, ferrari on track for the worst day since september of last year. ryanair fell more than 6%, reporting a 22% drop in pretax

profit this past quarter the airline, the largest in europe by passenger numbers has been hit by a series of strikes since it agreed to recognize unions last december ryanair warning that average fares would be lower than expected in the key summer period, amid uncertainty over potential strikes going forward. it did say it was on course to hit annual profit targets. shares down 7.5%. and finally, look at shares of wpp that stock trading higher on reports that tech giants alibaba and ten cent are in talks to buy out 20% of the ad buy out chinese business sky news says it could value the portfolio as high as $2.5 billion that stock is up 2.6%. jon, back to you here's what's happening at this hour, everyone.

the daily news will cut half its newsroom staff, saying it will focus more on digital news the paper was sold last year for one dollar, the owner assuming liabilities and debt editor in chief jim rich replaced by robert york, editor in chief of morning call of pennsylvania. chinese president arrives in rwanda, second stop in his tour of africa. expected to sign bilateral agreements china, africa's largest trading partner is seeking closer military ties. israeli prime minister netanyahu praising president trump for trump's strong stance on iran, after he warned rowhani he will face dire consequences for threatening the united states. crews are cleaning up after a train derailed in washington state. officials say several freight cars came off the track in burlington sunday evening.

bnsf rails says no one was hurt and there was no environmental impact you're up to date. that's the update this hour. back to "squawk alley. carl, i'll send it back to you >> thank you, sue. the president hosting a made in america showcase at the white house as he levees new threats against iran and no obvious conclusion to tensions with g 20 allies kayla tausche has more from the white house. >> reporter: escalation between the u.s. and iran is two weeks before the u.s. reimposes sanctions on iran sovereign debt and currency its president told diplomats that the u.s. should not provoke its government and war with u.s. and iran would be the mother of all wars that's what led the president to tweet this, telling president rowhani never, ever threaten the united states again or you will suffer consequences the likes of which few throughout history have ever suffered before. as the president goes head to head with iran, secretary mnuchin took the trade war to

argentina, meeting some frustrated g 20 counterparts in a press conference denied there were tensions and that those may hurt the u.s. economy. >> let me be clear, i didn't feel isolated at all here. we see some micro impacts of where people, our counter parts, targeted very specific items, specific communities but from a macro standpoint, we do not yet see any significant impact on the economy. but we'll continue to monitor it >> reporter: here is where the various fronts on the trade battle stand secretary mnuchin says there are no movements on china. he is supportive of a nafta deal, and new deadline for talks is september 1st when mexico's congress convenes. then the european president coming to the white house wednesday. angela merkel says that that will be a discussion to try to avert auto tariffs

we'll see what results officials will try to steer the conversation back to u.s. manufacturing, but exporters, carl, could have a different conversation in mind >> kayla tausche at the white house. thank you. oil up slightly on rising iran tensions and g 20 leaders caution on global growth as tariff overhang remains in focus. jim, i'll start with you, you said this morning you pointed back to a report that found presidential tweets about trade don't seem to matter much to the markets. you asked whether that would be different for geopolitics and war. dow is down 17 points. >> maybe that's your answer. as far as on the trade issue, markets seem to not be taking tweets into account. interestingly, when he was

tweeting about korea and war, markets did seem to take that more seriously you're right markets are green. perhaps they're overwhelmed. so far in the last ten tweets we've had the president talk about iran, we've had him go again after amazon, we had the anti-fed tweet maybe it is paralysis being overwhelmed with the sheer number of fights he is picking on twitter the last couple of days >> greg, what should we be paying attention to when it comes to official statements or actions out of the white house the tariff threat has people perhaps a little queasy it seems investment wise, but not overly nauseous statements aren't moving markets. do you think they should be? what are you watching? >> there's a lot of uncertainty. i would bet that with the tensions, s & p would be up more than it already is

that said going forward, what you want to look for is specifics. not enough that the president is tweeting how the european union is trading currency. you want specific actions like moving forward on additional tariffs, publishing products that will be hit, approaching deadlines. part of the weekend that bothered me the most was amidst secretary mnuchin's meetings with counterparts in argentina, there's no sign of off ramps, no meeting with china, no opportunity to discuss what china might specifically offer that will get tariffs lifted, and europeans pushing back hard against americans saying we will not negotiate with a gun to our head first you take off tariffs on steel, drop the threat of tariffs on auto, then we'll talk we are looking at the united states started a lot of fights and nobody knows how to end them >> right jim, i was going to go to you and say whether or not you think

this meeting this week is more decisive than any china discussion in the near term. >> listen, obviously we're talking here, don't seem to be talking to china i'm not sure exactly what the end game looks like. for instance, an obvious deal would be perhaps for europe to get rid of auto tariffs, maybe we would get rid of 25% tariff on pickup trucks, light trucks the president hasn't mentioned that tariff, which would seem to be an obvious thing we might offer on deals i don't know what that deal looks like listen, just imagine instead of tweeting about iran if in big capital letters the president tweeted we must have phase two tax cuts important for american economy we might see the market do a little better. >> greg, you mention off ramps what's left and who is left? seems like pretty much everybody from the administration has been involved in talks thus far that

haven't led to creation of the off ramps. are there particular opportunities you see, whether it is china, europe, to allow a way for them to come to the positions that the u.s. would like without looking like they're folding to donald trump? >> china i don't see the opportunities now. he has a domestic audience to please, despite lack of elections, has to be sure the chinese people don't see him back down in the face of threats. europe i am more hopeful we're told they come to washington with offers of trade deals for the united states, and european union is a bit divided. germans want to make preemptive offers to the united states to lower auto tariffs on both sides of the atlantic. the french are more confrontational, want to presented a united front of resistance there's a sort of hope there finally nafta front. we hear officials say the last week or two that things look

good with mexico, good chance there will be a deal with mexico this year, then they'll turn to canada on the other hand, we're not hearing the same degree of optimism from the mexicans that's something i am interested in hearing about, something i am watching and cautiously optimistic about >> one of the complaints about the administration is that they've blown up a lot nafta, tpp, iran, and haven't closed a lot on north korea, clearly on china or the eu don't you think closing a deal on tariffs in this case, pick eu, that would be at least one example that they brought something to fruition. that these promises are better playing field in terms of trade came true. >> if you have creative destruction, you have to have creation, not just destruction there was a deal, sort of revised deal with south korea, that's about it. if we strike a deal with europe,

get that off the board, it would help with china. listen, i think the administration would like a unified front with europe as they go after the chinese mercantile policies, as relates to intellectual property and technology transfer. to get europe on board which we would have done originally if we stayed with the pacific trade deal, try to bring the band back together, i think that would be a huge plus. at that point we might be able to see what a deal with china might actually look like >> finally, greg, i have to check in with you, ask if you were all rattled by tweets about powell, about the fed, about the dollar last week we talked about them friday as being unusual but in the context of his tweets overall, were they consequential? >> you know, i think a lot of folks including at the fed were bracing for that moment. i will say it came sooner than i expected look at the federal funds rate, still below 2% in real terms, real interest

rates are zero unemployment rate of 4%. i don't think any president since the 1950s enjoyed a combination like this of strong growth, low interest rates i was surprised how soon it came along. i think unless we see this drum beat of criticism pick up, intensify, it will be no consequences the futures, bond markets tell us it is of no consequence i wonder if trump is sort of establishing a narrative now that if the economy turns south between now and 2020, he's set up his villain >> i have been saying it for months and years jimmy jimmy. >> we have the president going wobbly with a couple of modest rate hikes before expansion. >> what's the plan for friday on gdp? >> i guess i go with slightly

north of 5%. but i expect a lot to be unwound in the third quarter as next export contribution turns the other direction. >> shepherdson is at 5 jimmy, you got one >> i like the 5 handle, but expect it not to last. i think we need sustained growth, not one off quarters. >> as cashen said last hour, if it is four plus, won't be a megaphone loud enough. >> can i add a last thought. after the bush tax cuts in 2002, 2003, second round came in, we had 5% quarter after the tax cuts came in and bush white house was cheering saying look how great that is. next five or ten years, though, were not five to ten great years of economic growth just sort of like take it with a grain of salt. >> good discussion see you soon thank you.

still to come, president trump tweeting at one of his favorite targets, really two, amazon and "the washington post." first, rick santelli, what are you watching >> i am watching 294 yield in ten year notes we have 22 sessions with a compact range. seems to be changing what does it mean? what does it mean for japan? talk about that after the break. the employee of the year, anna. [music playing] (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event. with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done!

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the santelli exchange. >> good morning, carl. first chart is a ten year note, up five basis points, two year notes up three basis points. this looks to be the violation of 22 sessions we closed in the 290s, starting the 21st of june, today is session number 23 we are hovering at 294 you see the chart there, starting back on the 21st of june the spreads also steepening. tens to twos over a one-month period flatness being 24 on the move going back a decade, now hovering at 32 8 basis points isn't a huge amount, but hugely significant to some fed officials, especially jay powell to find room for tightenings, quarter point increases in he wants to fit in four for 2018 as it appears.

but what is this going to do to other central banks? we know mario draghi is trying bankof japan, first of august is having their policy meeting, and things are starting to rumble th we've all heard stories. you have domesticated cat. you don't want the let it out or vice versa you don't want to bring a wildcat in as a domestic pet that translates into economic analogies. the bank of japan might think it can control outcomes, especially considering that it's the japanese people that own the bulk of their debt, but that doesn't change the notion that banks are your transmission for economic prosperity. like it or not it was one of the lynch pins of the stimulus in the u.s. during the credit and post credit

crisis a lot of people didn't like bailing out the banks and i would question the bailing out, but you have to have healthy banks if you're going to have a healthy economy. whether it was property in the '80s or banks and ownership from everything from etfs to companies, the bank of japan has tried to be b the muscle lifter, the transformer of the universe in their economy and most likely it's not going to be able to do it much longer. there are just too many variables. too many consequences. the real danger is should any economic slowdown of any size hit the globe, the bank of japan is thoroughly unprepared to do anything abt >> that's a big story overnight we didn't get to earlier good stuff, rick thank you. when we come back, it's the president in the post office and jeff bezos in the ring talk about what he said enwh "squawk alley" continues in a moment we all want to know about the new thing.

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want to save on mobile? just ask. want to demo the latest innovations and technology? do it here. come see how we're making things simple, easy and awesome. plus, come in today and ask about xfinity mobile. a new kind of wireless network designed to save you money. visit your local xfinity store today. president trump taking aim at amazon tweeting the post has gone crazy against me ever since they lost the internet tax case two months ago next up, the u.s. post office which they use at a fraction of a real cost for a big percentage of their packages. in my opinion, "the washington post" is nothing more than an expensive fortune lobby eis for amazon use the protection against anti trust claims. this is the latest in a long line of tweets, but there are

giant, gaping holes in the logic and facts. analysts said the supreme court decision is great for amazon versus smaller retailers the post office touted amazon as a benefit and start eed delivern sundays and in january, "the washington post" publisher said it has two straight years of probability which is why they're hiring more journalists. i'm sure the president has his own reasons for wording. >> south dakota versus wayfair if anyone wants to look it up. when we come back, sonos gearing f i ipo

welcome back we're going to call your attention to what's happening with k pal shares. this after dan powell exposed a letter they say they see a lot of other similarities with netflix and amazon it enables has hassle free one touch checkout that's the reason why those shares are on the move we'll keep an eye out on any

other details. that's the reason it's moving higher back to you. >> done pretty well since it separates from ebay and we're getting new details about the sonos ipo. that would be $1.87 billion in valuation. close to pandora's valuation and this key is whether the extreme market needs a neutral plan. and the sort of wrinkle, the riddle of servicing some of the older models of hardware, if you have sonos changes over time the ten-year 295 is getting people's attention today highest since late june. banks are benefitting off of that jpm at a two-month high back to 113. over the longer term

then earnings, going to be busy every night this week? >> yes, of course i will be. alphabet is a big one especially given what we've seen so far major indices today. near session highs s&p i think at session highs we'll see how that shifts as we get close to earnings. >> facebook wednesday, amazon thursday post nine. welcome to the halftime report i'm scott wapner top trade this hour, huge week ahead for your money more than 160 s&p companies reporting earnings over the next five days including some of the biggest names in this market what is really riding on those numbers? here to debate, joe, josh, steve and erin she's the head of asset allocation at ubs. let's begin with markets dow and s&p coming off three straight weeks of ga