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good wednesday morning welcome to "squawk alley." a lot of news to get to on the busiest day of earnings. auto pressure, fiat and gm trading lower own weak guidance. boeing after guidance disappoints on a charge. they raised the revenue guidance facebook's moment of truth the social media giant reports after the bell we'll bring in the senior portfolio manager over at wells fargo asset management joining us onset, mike santoli got a busy day on ipos as the bloom energy comes to market ex-boeing, we are not far from unchanged. >> we are doing pretty well. there are early trends starting to emerge in earnings. number one, obviously some are getting caught in the cross hairs of tariffs we saw that with gm and are

hearing it with whirlpool, kimberly clark, higher costs, higher dollar is generally an issue. number two, some have pricing power and some don't if you don't have pricing power, you're going to have lower margins. your stock will get hit. gm is the issue there. others like avery and dennison, they had highest costs but are able to pass them on pricing power really matters that's number two about boeing not all guidance is created equal. we have had companies raise guidance northrop raised it, they're not. at&t, generally not. and boeing, generally not. the problem here is guidance has to be a little better than the street's expects overall if it's not, off little problem. full-year guidance for boeing really hasn't changed that much, since the start early in the year, 1430 to 1450 today the street looked at that and said, okay, that's not bad, but they basically said that before and revenue is better. that's not good enough right now. so look, there's your numbers.

you just need a little better. the revenue guidance they gave today. boeing is up 17% this year that's not enough to move the stock forward. >> and we've got qualcomm and facebook after the bell. you are not looking to put new money to work in tech at all are valuations that high >> the cyclicals or more value tech, slower growth tech, those areas of tech are cheaper. there are specific companies within tech that we're still looking at for the most part, it's been a momentum market. if you look at the russell 3000 growth, a broader index, that's been driven by technology. year-to-date, as of last week, up 12% versus the russell 2000

value up less than 1%. so technology is really a lot of the momentum behind that and so i'm a core manager. i don't discriminate between growth and value, but i want to buy things at a discount and you can't find a discount within tech right now >> meanwhile, we've been waiting for financials to reassert their leadership had a nice little run here, jpmorgan, 114. can we take the next step is the question >> yeah. it's actually a big question because they are right back up if you look at the sector chart. right back up to a level they failed at in the past. you still have the two-year note yield going up very nicely and that really is what should matter because that is the market's way of saying, the fed will raise rates and the economy can handle it i mean, that really is what should work for banks. but they're just not doing any favor. and i think it is the general unevenness in the market the market has strong preferences in certain directions, even within tech

anne mentioned the semiconductors, cheaper? because they have come down a lot. so they have surrendered the leadership position. and facebook has been in that beneficiary because they're not -- they're media, they're not semiconductors and facebook is up to the p.e. after all that drama >> it was dan niles talking about if you are in hardware, tariffs are going to buy you in ways if you are a software company. >> just to show you where the market is, i agree with anne, if the markets focus on growth overvalue right now. you can see that yesterday we had 3m come out, which is a dow component, perfectly respectable broad informsment in the industrial space they talked about the organic growth of 3% to 4% that's perfectly respectable for that kind of space they're in and a well-run company, the stock is at a 52-week low because nobody wants to pay any kind of respectable multiple for 3% to 4% growth. they want more than that they want -- they want technology, which is what

represents growth. so a great run company like 3m is a mess this year. 52-week low with the dow near historic highs >> so, anne, what should investors do in a market where things continue to kind of creep higher, if not power higher? and you're saying, no, valuation-wise, you're not comfortable with tech. is there a safer area, in particular do we go back to that stock picker's market cliche where if you like tech, you just get the microscope out looking closely >> it is a stock picker's market even within tech, we are still not avoiding it at all costs and certainly, we still like the investments we have there. and so we're not taking a lot off the table. we're just not adding to our positions there. but outside of tech, there are certainly other areas of the market that appear more attractive certainly in the short-term, there are more challenges. and so this price cost issue that we're seeing within earnings that you mentioned

earlier, the ability to pass on costs to the customer, looking for company that is cies that c sometimes there's a quarter or two lag, and you'll see the companies be pressured now but hopefully pass that on over the next quarter or two. we're investors, not longer-term thinkers or traders. so we're willing to take the short-term pain if we believe the long-term gain is going to be there a company like gm this morning, the market is washing out because of some of the near-term challenges and some of the cyclicality related to the stock, certainly there's some fears, but i also think there's some opportunity at gm that the market is ignoring opportunities like they are going through a product transition cycle in north america. the new truck platform will be rolled out shortly in the next couple of months you know, it's supposed to be a great platform, we'll see how well it sells. but also the other side of gm, selling at six times earnings that no one really talks much

about is the driverless car. and the technology is talked about being second best to wamo. soft bank put $2 billion behind it in may. i think there's something behind the technology that is very valuable that in the short-term the market doesn't care about and i understand that, but for longer-term investors, now might beyour opportunity to take a little bit closer look there >> well, despite the compelling valuations in value that she keeps talking about, i see no signs that anyone is abandoning growth, and particularly tech right now. john, i see nothing out there. nobody there's no big sell-off in the tech space. >> gm having one of the worst days in about three years. and we're getting some interesting developments in the debate over trade between the white house and congress this is congressman jeb hencerly being interviewed at the cattle exchange event take a listen to this. >> i think that donald trump has too much power and i think that congress needs to reassert their authority.

and last, i read the constituti constitution, it is congress that has authority over tariffs, it is congress that has authority over trade, and we aught to take some of that back. >> so that's interesting as we await gdp on friday. morgan stanley, i see now looking at 47 is the latest number. >> number is going to be pretty gaudy in terms of the forecast i wonder how the market is set up for it, meaning mostly the bond market. if we are going to completely pull along the numbers and say it's a lot of one-offs of export activity or if we're going to say, look, we're back to the overheating story starting up again, which we came into the year with so one of those two things is interesting. then, of course, are we going to basically give it away with trade frictions? that's the other question. >> indeed. the questions don't seem to stop thank you, gentlemen mike santoli, bob pasani, a nn,

thank you as well. shares of gm and fiat chrysler falling sharply report. s after the bell today gm seemed to mention commodity costs as one of the culprits here. >> they are choosing their words carefully, john. nobody is coming out to say this is because of tariffs, but there's no doubt that tariffs, whether here or in china impacting the auto industry, it's certainly having an impact on both general motors and fiat chrysler they both wrapped up the conference calls within the last couple minutes and for general motors, think about this they are noticing a $2 billion impact in terms of higher costs this year. and a good chunk of that being with raw materials now, they have mitt grated about a billion dollars of that through a number of moves they have been able to make, whether through pricing, whether it is through changes that they have been able to make. so they have been able to offset

about a billion dollars, but they finally came out today to say, you know what we can't offset the other $1 billion. about two-thirds of which is due to raw material costs. and while they sourced 90% of their aluminum and steel here in the u.s., this is a global market and we saw what happened, particularly with aluminum prices let's say about three months ago. the entire second quarter you saw a huge spike in aluminum prices at the aluminum tariffs being put in place that's now filtering through and that is what general motors is noticing in terms of the pricing impact as for fiat chrysler, they are noticing an impact when it comes to tariffs in china and automobiles being brought into that country and they talked about that during their conference call so while everybody is very careful here not to point a finger at the trump administration, because the auto industry is still in the midst of a lot of complex negotiations, sensitive negotiations, especially with europe and nafta, there's no doubt that the tariffs have had

a ripple effect on the bottom line for these automakers. >> so phil, what tends to happen next when you get a rise in costs this way might gm suspend production of vehicles that are not as profitable or is there any impact on the workforce? >> no, they're not going to suspend production look, the demand is strong, not only here in the united states but around the world there's plenty of demand there it's not an issue with that. the issue comes down to, do they take a hit in terms of operating margins? do they -- the first area where you're going to notice it. and then secondly, how can they offset instances if it's going to be staying with us for six months, nine months or a year? how do they offset those in terms of curbing production or shutting down plants, that's not going to happen. >> all right, good stuff phil lebeau, thank you meanwhile, the president bashing the fcc in a tweet last night. the president calling the

commission unfair and their decision which stalls the sinclair/tribune merger disgraceful. julia borstein is joining us with more. >> the commission raised serious concerns about the broadcast group's proposed attribute of tribune and started the project to legally challenge it saying it misled regulators president trump tweeted, so sad and unfair that the fcc wouldn't include the sinclair broadcast merger with tribune. this would have been a great and much needed conservative voice sinclair-tribune stocks are trading up higher both nearly at 3% this after both stocks plummeted early last week on the fcc's move to stall the deal now, this is an unusual commentary about a merger. and it comes amid concerns that

sinclair with the attribution of tribune would be the nation's largest broadcaster bringing the conservative programming to 233 stations in 108 markets. now, pai's concerned that some of sinclair's proposals to comply with limits on media ownership were misrepresented because they would be selling to stations to individuals with relationships to sinclair. so what is next? the administrative judge will review whether sinclair misrepresented the deal and would violate the scc broadcast ownership limits this could delay the deal by months the question is whether it killed the deal entirely guys, back over to you. >> thank you, julie. interesting move from the anti-pai who don't like his net neutrality stances who are arguing he would greenlight the sinclair effort. and he clearly has not done that julia, thanks. when we come back with the deadline just hours away,

qualcomm has yet to win chinese regulatory approval to buy the dutch chip maker nxp that deal first announced in 2016 it's been caught in the cross hairs of the u.s./china talks. and trade tensions continue to rise between the u.s. and s.ropean allie "squawk alley" will be back after this well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him?

>>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

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the eu's president is heading to meet with the president to talk about trade. here's kayla touche with more. >> reporter: on the home turf of president trump, as europe is seeking to avert auto tariffs that the president has been pushing for behind the scenes. the two leaders will meet around 1:30 p.m., just a little more than two hours from now followed by the expanded bilateral meeting between the block from europe as well as the united states we know that the eu's trade commissioner will be here as well as the treasury secretary who told lawmakers a couple weeks ago that he specifically be wants to talk about softening retaliation from europe and the impact that that has been having on businesses. we have seen the president tweet multiple times in the last 24 hours about trade, about how he believes tariffs are the right tool to get leaders to the negotiating table. this morning at an event hosted by cnbc, the business director nick mulvaney pointed to a tweet

from the president last night talking about the desire to open tariff barriers with europe as a sign that perhaps not all is lost on free trade here's mulvaney this morning >> he tweeted out something at the g7 that i don't think everybod everybody picked up on the europeans are coming to town today, happy to talk about the trade policies here's what it is, zero tariffs, zero tariff barriers, zero subsidize. who wants in on that is that a protectionist system that's true free trade that's what we're trying to get to >> reporter: mulvaney acknowledged that free trade advocates in many of the arguments with the president here at the white house on trade, he's been on the losing end of the arguments given what the president has chosen to pursue at the trade policy going forward. but he did point to that tweet and the hope for today's meeting as a potential win on trade. we will see in just a couple hours. john >> kayla, has there been any

discussion on dropping u.s. tariffs on light trucks, on european imports as an offer on good will. and what do you make about the press that they themselves are listing a potential $20 billion in tariffs if things don't work out? >> reporter: well, the eu has been preparing retaliatory lists for more than a decade i mean, you remember back when george w. bush put tariffs back in place in 2002 they refleshed that earlier this year and they have been working on their own retaliation, if, in fact, the auto tariffs come to pass but the administration is looking for a sign of good will first from europe, which may be hard to come by, because of how many parties would have to come to terms with a deal like that it's not just germany. it's also france, it's also italy. off lot of countries $you hav--v a lot of countries that would have to get on the likes of that and it is something that the likes of merkel exspouse

up better than 4% this morning after topping earnings estimates. blake moret is join ughiing us on cnbc when "squawk alley" comes right back

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we are watching shares of qualcomm down 1.5% and we are watching the acquisition of the nxp amid the trade negotiations with the u.s. and china china revoking the approval for the facebook research and development center in china. lots of questions about whether this deal has any chance of course, we'll hear from qualcomm's ceo later on today. with the dow down largely less than half a percent. we'll go to seema moody to

see how europe is going to close. hey, seema >> hey the european markets are seesawing to close mostly lower in today's session as we are hours away with president trump's meeting with the eu commission he is expected to present president trump with two options in an effort to diffuse trade tensions the first would require all major trading tensions to elimina eliminate tariffs on u.s. cars and the trade deal will focus on industrial goods you can see the german dax at 1% we'll talk about the stocks on the move today german carmaker daimler is stepping up its autonomous driving partnership with china's badu they kicked off the collaboration in 2017 in an effort to eventually develop the automated driving platform shares down 2% for daimler let's also talk luxury

shares are rising to a record high after reporting strong profits during the first half of the year they are easing fears on interest from china. currently the luxury's biggest market showing chinese shoppers showing strong demand of the major brands, including louis vuitton. that stock up 2% those strong numbers elevating shares of french luxury company caring and ermez as well meantime, trade will be the primary focus of tomorrow's european central bank meeting where mario draghi will be pressed for answers on how a deterioration in u.s./traeurope trade relations are. currency has lost 4% over the past three months. john, sending it back to you thank you, seema now to sue herrera for a news update. >> good morning, john. good morning, everyone here's what is happening at this hour iranian president hassan rouhani

shrugging off president trump's explosive twitter threats to his country as baseless comments and empty threats. speaking at a cabinet meeting, he says there's no need to response yosemite is closing due to the encroaching fire that leads into the highway plus a campground, hotels and cabins the blaze has burned more than 36,000 acres and it is 20% contained. despite foggy conditions in california, spacex launched the seven satellites into space, but the company tried to land the rocket's nose cone down on a crew boat in the pacific ocean but it missed its mark and the european union judges ruling that the four-fingered shape of that kitcat bar is not distinctive enough to be trademarked nestle has been trying repeatedly since 2002 to establish a trademark for the candy, but the european court of justice in lexembourg ruled

against it oh, give me a break. that's it. back to you. >> kit-kat is a global brand you find it all over the world. >> absolutely. >> thanks, sue. >> you got it. earnings are on the way tonight. not far from a record high that was set yesterday. we'll talk about what we might be hearing on later on the dow is down 76 but the s&p is up 5.2. from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. hello. let's go for a ride on a peloton. let's go grab a couple

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welcome back to "squawk alley. take a look at facebook hitting another all-time high getting ready to report second quarter earnings today they are facing pressure from privacy issues and julia is joining us. the question is how that translates into costs. >> exactly, john this is the first full quarter since the cambridge analytica scandal hit. and investors have shrugged it off with the stock up 22% this year, but the big question is whether the scandal and the aftermath has had an impact on advertisers spending and on user engagement, especially after the north american daily active users dipped at the very end of last year. and with the company talking about how it is hiring people and investing in technology to improve safety and security, we'll have to see how the investments eat into the company's bottom line. the analyst rob sanderson expressed concerns about expense growth saying the level of

expense increased for network cleanup and data protection if unclear. now, analysts project earnings will grow 30% to $1.72 per share while revenues are projected to hit a revenue growth to grow 43% to $13.4 billion now jpmorgan citing instagram strength a factor of driving growth saying instagram is adding 100 million active users every four to five months. they believe instagram will generate $7 billion in revenue this year is conservative. this comes amid the facebook scandals that are in the spotlight. last night facebook's top lawyer collin stretch announced he's leaving at the end of the year and a reporter call was discussed yesterday to discuss the election interference. and it will not comment on the midterm elections. guys, back over to you >> julia, thank you very much. important story. eric is joining us now

mike isaac is a reporter from the new york times who is out west good morning, good to see you. it will be fascinating will users have a defective, but have you seen any evidence that suggests they have >> there's no question the usage has peaked and that among young people it's starting to decline. >> on the core platform. >> on the core platform. but on the other hand, instagram is growing like weeds. and they just hit a month lhigh for users. it is an amazing thing but the core platform in the united states is that from the peak it may be on a decline. >> mike, how much does it matter if people are spending a little less time per day on facebook, given they have instagram and what's app and google and facebook together have a lock on at least the part that matters of the advertising market when it comes to

targeting. >> that's right. i think what you're saying and what eric is saying is exactly right. instagram is this sort of crown jewel that facebook really lucked into buying early a few years ago. and now you're seeing this really interesting thing where they realize that instagram is their powerhouse for growth. so they're actually adding little product tweets to push people back into facebook over time you can, like, post photos on instagram that will show up in facebook and sort of like cross-reference the app. so i think they realized where people are and how to hopefully recirculate them back into facebook even if they don't want to go into facebook, what's app is a really large opportunity and the founder who was sitting on the board had just left the company. and i think there's probably going to be some product changes since he had left and he was one that was kind of making a lot of stopping points in the development of the app >> eric, there's going to be a lot of attention on costs of facebook they have this really nice

pattern of saying, boy, we're going to spend all this money on whether it is data centers or now on data concerns to prevent election meddling. and then they end up spending less and go, oh, it's not so bad. should we expect a repeat of that >> probably. the latest thing is they want to add another 20,000 people through check on the content i'm not sure there's real evidence that they could even find 20,000 people that quickly. so i think you're right, that the costs are probably not going to come up to their expectations but look, they continue to be in the middle of this incredible controversy about the latest is that the holocaust deniers are being allowed to stay on the platform and that is not going to go away and eventually this will erode the brand. if they don't come up with a solution and are in a definite position as to what to do with the fake content as well as the hateful content, the brand will suffer for sure. >> yeah, mike, i wonder, yesterday there were a couple headlines that suggested there's

an internal debate about whether the company has a responsibility to edit content on a moral basis. that sort of flies in the face of what zuckerberg told kara in her podcast the other day. how do you see that debate going, at least internally >> yeah. i think there's a sort of ethical or moral crisis inside of facebook right now where they really do believe in this western values of free speech and that people should not be stifled to say what they think on the platform, but then you get really tested, those really get tested when the alex jones info wars are spreading sort of false rumors about robert mueller and things that are potentially really damaging. or as eric was saying, just the holocaust denial stuff or white supremacist stuff. and i think employees, as much as they may believe these sort of things, they may see these things spreading throughout the world and really come to grips

with how much they can really continue believing this and how much they want to act. so it's a continuing debate as you said there's things that start to leak out, but facebook is not really a leaky company so the fact that you're seeing the leaks means it's a real debate inside. >> eric, philosophically, does zuckerberg have a point? it seems to me the mainstream cultural thought in the u.s. seems to be what we think is positive for democracy, et cetera but in some of the other markets where facebook operates and indeed is growing, the sorts of thoughts and ideas that people might have that we might think of as good might be against what the state wants. so could it be that what mark zuckerberg is saying, boy, if we start applying a moral standard to speech in the u.s., it might look good over here but it actually ends up being damaging or dangerous somewhere else. do you find merit there? >> look, it is a difficult issue. by the way, he has content in

sri lanka. because some of the most inflammatory content over there has led to actual violence and violence in the street and they have had to do it in the day-to-day x-ray of content. the free speech will always exist. but i think it is more of a business issue i think the biggest issue is i, for one, do not particularly want to post content in the platform that supports hateful speech or supports things that are completely false and evidently false. so i think that from a business point of view, they have to clean it up in order for them to have a long-term success. >> if you could put fresh money into either google or facebook at this point, is that an easy call >> well, google. i think, because google is not replaceable. facebook is replaceable. there's no other search engine out there. there's no ore ther machine, fo the moment

but people will migrate, maybe it is instagram, so they benefit there, but you can definitely leave facebook. >> the votes are not quite as wide good to see you guys >> hey, thanks for having me meanwhile, rockwell automation hitting a two-month high this morning after delivering an earnings beat. the company citing robust global growth amid continued tariffen certainty but warned of modest headwinds going forward. wroroberto azevedo is telling us more >> we are seeing more trade growth we hope that we can stop this trend, the growth of the global economy is showing signs of recovery our hope is that these new trade tensions will not affect that and will not take away the

opportunities of the growth that is looking promising right now and joining us now for a first on cnbc interview is blake moret, the chairman and ceo of rockwell automation. good morning >> good morning, john. >> tell us, how do these tariffs, tariff threats, trade concerns, translate into what you see? because i'm looking at your earnings report. you saw strength in semiconductors n m semiconductors, in chemicals, some trouble in the automotive sector, but how much of that is due to global dynamics how much of that might show up later? >> well, what we're seeing is strength that is broad-based across regions as well as across multiple industries. and so we look at our current results as well as the continued strength of production indicators like ip and other

indicators looking at a strong backlog build in the quarter and we are optimistic about the future >> and so does that mean that the manufacturing sector that represents your customer base looks to be doing fine despite these tensions or does it just mean that they're continuing to need efficiency and need technology despite what other concerns they might have >> the uncertainty is not helping us or our customers. but we don't expect the currently enacted tariffs to have a material impact on our finances and customers continue to look for ways to increase their productivity when times are good, when times are bad they are always looking to save money. and that is what we do we are the world's largest company devoted exclusively to making industrial companies and their people more productive >> give us some color on this $1

billion investment in ptc. it's software that is industry leading, but what does that get you that a partnership but not an investment would have gotten you, why not try for an acquisition of something similar? >> so the ptc relationship really embodies the convergence of i.t. or information technology and o.t. or operational technology ptc is a pure software company they have impressive technology. we do as well. and we also understand the plant floor. so bringing those technologies together really unlocks additional productivity beyond just the basic automation that's driven this industry for a long time so we're very excited about what it does for our customers. we're also excited about the value that it brings for us in our share owning through the several hundred million dollars of recurring profitable software

revenue in associated services the pull-through of additional products, and the capital of appreciation on the ptc investment i sit on the board and so i have an opportunity to make sure our interests are aligned. >> blake, what is the impact of -- i guess the anti-globalist mindset that is spreading across the globe right now on the process of manufacturers automating, of them adopting artificial intelligence, is it an accelerant? because companies can feel like they can take away some uncertainty because a robot is going to show up every day and the costs associated with it aren't going to fluctuate widely or is it slowing things down because they don't know what the trade of demand is going to be >> a highly-trained workforce,

highly-engaged and comfortable with the advanced technology remains our most important asset as well as the most important asset of our customers so it's the combination of the technology as well as a workforce that is empowered and knowledgeable about interacting closely with equipment that is going to make manufacturers to be the most competitive that they can be. with specifically respect to a.i. intelligence, a.i. has been present in manufacturing for a while. to be able to help manufacturers draw it to insights that may not be intuitive about ways to be more productive, to optimize production and prevent down time, we think that we're in a great spot for that because while the tools can help manufacturers sift through large amounts of data, our know-how and understanding of the processes helps them understand where to look. >> all right and sigh your stock is up -- and

i see your stock is up almost 5% black moret, thank you very much -- blake moret, thank you very much we'll take you inside the new theme park that is opening up rick santelli, what are you watching >> i'm thinking prices, in general. what do the prices of bicycles, toys, clothes, appliances, what do they all have in common with pre-credit crisis mortgage rates? wow, that's an interesting one, huh? you'll have to find out by tuning in after the break. oooo. tripadvisor makes finding your perfect hotel... relaxing. just enter your destination and dates. tripadvisor searches over 200 booking sites to find the hotel you want for the lowest price. dates. deals. done! tripadvisor.

i'm scott walker here's what is coming up on "halftime report." facebook, run too far, too fast? we'll debate what is riding on the big earnings report tonight. and ahead of friday's gdp report, why some say this is as good as it gets for the economy, but what does that mean for the bull market? and john and pete are here to deliver unusual activity today. we'll find out what is about to move in the market we'll see you at noon, john. we're about ten minutes away see you then we won't miss it thanks, scott. now to rick santelli and the santelli exchange. rick >> thanks, john. everybody is trying to get a handle on what is going on with regard to our trade practices, trade policies and the notion of how all of that, including

tariffs, possibly, more tariffs, possibly, will impact the economy. especially on the near-term basis. in my tease, i said, you know, what do some of the prices like bicycles, clothes, washing machines, furniture, auto parts, what do they have in common? they're teaser import prices sort of like teaser mortgage rates we had in 2001, 2002, 2003, where everybody, including alan greenspan, knew this couldn't last forever. they were too low. they masked so much with respect to due diligence, true risk, affordability, and i think the same thing could be true about teaser import prices and yes, lots of these things are made in china and we all know that many department stores have a saying, every day low prices well, every day low teaser import prices. just think about it a minute, there's a lot of similarities. the main difference is the longer timeline. you know, it's still boiling fraud, but it's boiling ever so

slowly i guess what i'm saying is that flood structures, no matter how flawed, or the reasons they're put in place, take central banking, for example, japan, europe to some degree, we're exiting, they have simulated and accommodate and they become normal just like the odor of natural gas. after a while, you're immune to it it really is the same and the point of this is there are many that come on our channel and my own thoughts have change on this that ultimately, every day low price is a good thing. everybody should strive for it what could be wrong with it? i also remember in the '60s and '70s when i paid way more for a bicycle, my parent paid way more

for their furniture, but i remember other things. the free ride ends at some point and there use d to be gas stations on every corner and the gas price would plumet, but over the year, i notice only one survived we want to make sure that one survivor includes the u.s. economy. carl back to you. >> all right thank you very much. when we come back, abu dhabi opening a new theme park a look at what's coming up with hadley >> right it's a billion dollar bid to bring in the tourists and they're going to use all our favorite warner brothers characters to do it including scooby doo and the gang. that's coming up next.

a new billion dollar theme park opening to the public in abu dhabi. seems kind of a dubai thing to do hadley >> hey, good morning so a billion dollar development between the government of abu dhabi and warner brothers are hoping to bring in the tourists, but there are questions on if that will happen i'm here at this park all day today. it's the opening day 1.65 million qusquare feet. all your favorite characters from gotham city wonder woman a lot of excitement and also

questions about whether or not they're going to face stiff competition from dubai just down the road ch they have lego land and img. this isn't the first time that hollywood has collaborated with these gold pair of coup tris even in saudi arabia this year collaborated with amc to grow the entertainment sector, but i had the chance to catch up with the chairman of warner brothers. >> the deal closed it's being appealed. we're working through the appeal process, but it's business as usual. we're working for exactly kind of as doing things like this this happened after the merger closed but the partnership again, it's with us. we're part of a bigger company now. >> the chairman saying this is a

long-term project. they put a billion dollars into this just today, a lot of excitement, but again, a lot of questions and about whether they'll see this project deliver when it comes to bripging in the tourists guys >> fascinating look. hadley coming up later on closing bell, the president is set for these talks with eu chief. form rer treasury secretary jack lu and tony blair. we'll weigh in you don't want to miss that. s&p now up five on some head lips regarding nafta we'll talk about that in a couple of minutes. back in a moment

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you'll see stocks popped to session highs. dow's narrowed to four s&p up 5.5 on some headlines out of reuters that mexico's economy minister saying that and a hana negotiations are two-thirds practically concluded, which obviously denotes some progress on that front, something the market has been looking for. >> important confirmation on mexican side that there is some progress there we had heard as much from the president and of course we are

watching facebook ahead of that company's earnings this is up 10% in the past month. we'll see if run up too much into earnings or got further to go >> along with ford and qualcomm tonight. we'll keep a close eye on d.c. with these trade talks over to the judge and the half zblnchs welcome the top trade, the facebook face off. ahead of the company's critical earnings tonight, our traders debate whether it is the best faang stock to own right now here to debate now, jon and pete, sarat. let's begin with the market. stocks are mixed nasdaq strong again as becount down to the facebook earnings. th