it's 5:00 a.m. facebook is leading your top five at 5:00 shares of facebook are tanking the company reporting a big slowdown in user growth, more than 100 billion in value wiped out. facebook is the first of the f.a.n.g. stocks to plummet will it take down your market today or will this keep the dow higher president trump striking a new trade deal with the european union. qualcomm pulling the plug on a proposed $44 billion buyout after china slams the door on the deal. and shell announcing a massive buyback as profits soar on higher oil prices it's thursday, july 26,

"worldwide exchange" begins right now. all right. good morning thanks for being with us i'm brian sullivan it's a big news day today. the big theme for your money today is simple, it's going to be facebook versus trade you can see that is clearly reflected in the futures market. the dow jones pointing to a higher open. not a lot, but up 31 on the futures, mostly because of the positive comments out of the white house about a possible trade deal with europe look at this the tech heavy nasdaq futures, they are set to open up way lower following facebook's big flop last night. by the way, this is the first time we've had one of the big tech stocks truly tank like this in years the overall market reaction today may be telling

can the market hold up if one of the big tech names slides? keep this in mind, right now facebook set to lose more market value today than the entire market value of mcdonald's, more than 1$120 billion just today. now to that news on facebook last night shares posting their biggest drop ever after the company reported a slowdown in user growth. the three headlines are weaker than expected revenues, global daily active users came in weaker than expected and ad revenue projections fell short of expect takes. that wiped out 120 in market val value. let's bring in cyrus you have been negative you have been concerned about facebook on this program you were correct however did you anticipate the magnitude of the market reaction to this kind of slowdown and the

company is still growing, it's just that growth is slowing. >> i did not anticipate the magnitude of today's correction. i expected some correction but didn't think it would be so big. i think what's happening is the traditional way of modeling companies using a discounted cash flow model it's difficult themes like regulation cannot be modeled. it's too difficult to do it. we think regulation will be the biggest theme out of the 50 themes we're looking at in 2018 and 2019 for the internet sector and specifically going to be negative for social media companies and facebook is right at the top of that social media sector >> does this show that facebook stock and maybe some others in technology are priced to absolute perfection?

>> today's drop was enormous a lot of people are saying this is a buying opportunity. if you're looking at the next generation tech cycles, cloud, virtual reality, ai, internet tv, facebook is firing at 10 out of 10 on these levels. we think regulation is so big and the regulation theme just started, there's another 12 or 24 months of this to come. that will be hugely negative on facebook we have to balance these themes out. on balance facebook could bounce back, but in the longer term, regulators are attacking social media companies like facebook on data privacy, data protection, antitrust, tax avoidance, on the legal status of facebook as a publisher, on net neutrality, anti-social behavior of the users on facebook, on copyright law and obstruction of justice,

does facebook help law enforcement when they have to. >> true, but this is not a company contracting. the numbers would still make the majority of global companies salivate 42% year over year growth in ad revenue. and the market reacts with an 18% drop in that stock >> like i said, we were expecting a correction, not as big as today the long-term trend is up. everything we're seeing on our screen says facebook is firing on the right themes. we're saying that for a transition period for now regulation will be specifically negative for facebook and it's difficult to predict what that will be. we think that negativity of regulation will extend, you know, for at least another year. you downgraded it back in april.

will you upgrade it based on this is this a buying opportunity >> we'll keep it downgraded on the regulatory theme it's high on several other themes so we won't make changes today because what happened is what we expected the valuation has fallen, that makes a difference but we don't think it's a buying opportunity yet. >> cyrus, we'll see you again soon thank you very much. your other top story is trade. president trump and european commission president jean-claude juncker turning down the temperature on a transatlantic trade dispute. the pair suggesting they will hold off on further tariffs while working through their differences. let's get to kayla tausche live in d.c. with more. >> reporter: the u.s. and europe put the trade fight on hold for now saying they would enter a new phase in their relationship and work together towards freer trade and streamlining

regulations. >> this is why we agreed today first of awful to work together towards zero tariffs, zero non-tariff barriers, and zer subsidies for the non-auto industrial goods. >> so as long as talks are ongoing, neither side will enter into new tariffs the u.s. won't immediately roll back the metal tariffs it put in place on europe on june 1st. the idea that imports of steel or aluminum from your closest ally could threaten the national security of this country, this goes against all logic and against all history. we agree the president must reassess this measure in due

time >> so they'll reassess that. but it was enough to win over president trump, who last night tweeted a photo of him and president juncker embracing with a caption that said the u.s. and eu truly love each other that, of course, a week after calling the bloc a foe investors agree this is good news for the market, but the fine print on this deal still needs to be worked out >> i think your point at the end is taken the european union last year was a foe in certain ways, particularly with discussions around russia. today they're calling them friends, there's love talk around the european union. i guess these swings in the e eu/u.s. relationship are as dramatic as they seem. >> president juncker yesterday credited cecilia malmstrom, who has been meeting with lawmakers and doing back channel negotiations with u.s. officials for the last two weeks as the

reason why this deal got done. but we will see exactly what it bears in the weeks and months to come you might remember that secretary mnuchin back in may held a similar truce with china. that lasted about three weeks. now that trade fight is back in full swing >> you guys have been doing a lot of this work from the rose garden outside, hopefully you're building the ark after six straight days of rain. >> we'll hear more about the trade deal later this morning when steven mnuchin joins the "squawk box" team at 8:00 a.m. eastern. good news in europe may be tempered by this news from china qualcomm deciding to scrap its $44 billion planned buyout of nxp because chinese regulators turned down the transaction. leslie picker has more on that >> yet another casualty from this trade war the deadline for qualcomm to buy nxp passed at midnight eastern time without any word from chinese regulators on whether

they're going to approve the deal this likely shuts the did or on a takeover that's been entangled in the trade dispute between the u.s. and china qualcomm said yesterday it would walk away from the $44 billion acquisition unless it got last-minute reprieve the company has not commented, but if it terminates the deal it will pay a $2 billion breakup fee. qualcomm needed approval from china because the company accounts for two-thirds of chinese revenue. qualcomm's ceo saying we got caught up in something that was above us they also said they would launch a $50 billion buyback if the nxp deal failed. qualcomm gave a rosy outlook on the prospects for 5g wireless technology, but it's also predicting that apple will drop its chips from the next iphone in favor of mo democrat modems .

steve mollenkopf will be on "squawk on the street" today at 10:00 a.m. eastern >> so much to digest overall right now. so let's try to put a bow on it. kit juckes joins us from societe generale i imagine you guys at your desk are not sleeping you have talk of a trade war in europe, thousand they'now they'. talks of trade wars in china, but president trump and president xi are also good friends. how do you factor all this in and come to a conclusion >> i think you get day-to-day moves. if we look at the major exchange rates, in practice the euro/dollar exchange rate is between 115 and 118 for six

weeks now. we jump around, we get hit by news that we find hard to position ahead of it but the volatility of the pig currency path is low. volatility in emerging market currencies is high because they react whether it's the yuan, the lira or the real, and they move more on news that we can't anticipate easily. so it's choppy, but the g3 has gone to the beach for a bit. >> what's the trend? >> the euro is forming a base. we're not down with the trade war theme as you have been discussing we'll get more of this in a bit. i think it's becoming clear enough that we are going to probably be able to avoid the worst in terms of what it does for the european economy we will shift our focus back

gradually to better european data, slow grind of policy by the ecb, and unless the fed springs a million surprises and sends rates up to 3.5% or much higher than expected, i think we'll find the euro -- it went up too fast, it came back, building a base, slowly climbing up and you'll have a softer dollar by christmas than you have now >> you think the federal reserve in the united states can pull off this little mini magic trick, balance growth while balancing inflation and not slow down what is now an extremely strong u.s. economy? >> i think they'll try to. what they won't make is the mistake of overtightening too much at this point in the cycle tipping the thing off into a sharp slowdown so i think their forward guidance indicates that they think neutral rates are close to

3%, which is where the bond markets anticipate them being. i think they'll stay on track to do that, that will continue. the noise in the economy comes from the fiscal side, not the monetary side at this point. >> kit juckes, societe generale, thanks for your views. see you soon in any other news day this ford news might top your headlines, but busy day today. ford shares slumping 2% after they cut their earnings forecast due to slumping sales, struggling business in europe, and trade tariffs in china ford says ongoing plans to revamp its operations could lead to pretax charges of as much as $11 billion over the next three to five years. that stock is down this morning. paypal shares down 3%. second quarter profit beat forecast more people use its services, but investors reacting to guidance, which fell short of some analyst estimates amd's second quarter results

topping forecast a surge in demand for pcs boosting sales of its processor as well as graphic chips used in data centers maybe thank fortnight. we are following a developing story out of china. there was an explosion outside the united states embassy in beiji beijing. chinese police say it was caused by a firework device only one person was injured in the blast. we'll continue to monitor this developing story and bring you more as we get it. some officials calling it a bomb, you hear chinese officials saying it was more like a firework. coming up, a pulse check we have new numbers on the health of private equity we'll run you through them and later on, big oil is on deck a huge day for earnings. everything you need to watch berehe nbefo tumrs hit the tape.

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trillion according to new data that's a 20% jump from the prior year the biggest ever annual gain about one-third of the assets come from dry powder or capital that the industry raised but not deployed the other two-thirds comes from unrealized value of pes invested assets shareholders of the pe firms are starting to take notice. kkr up 30% this year ahead of second quarter earnings due out in about 90 minutes from now much of that gain is thanks to the firm's decision to change from a partnership to a corporation, which helps simplify the earnings story. analysts and investors say kkr is growing share in the i industry kkr was behind two of the biggest buyouts in the quarter and has been diversifying it's

asset pool of course a big challenge that all of these buyout firms have are how exactly do you put a trillion dollars to work with evaluations where they are >> this is an incredibly important story. private equity, when i began in this business, there was about 8,500 stocks there's now half that. the private equity world was small. public capital markets are shrinking, which are the markets that most viewers invest in. the private market, which is generally only available to the wealthy, they continue to grow this is why we're seeing 10, 15 private equity executives get these paychecks. >> i think there's about 4,000 publicly traded stocks in the united states. >> there were over 8,000 20 years ago. you're looking at double the number of companies owned -- or

have some -- the private equity world has some piece of about 8,000 companies. >> this market that was fairly small 20 years ago continues to grow but is inaccessible to most people >> unless you invest in the publicly traded private equity companies, which have not done well overall and you're not getting the same kind of upside as you would if you invest in a portfolio. last iyear's average return was about 16%. >> acronym alert, irr, invest the rate of return blackstone group's jonathan gray weighing in on a possible trade fight between the u.s. and china. here's what he said last week at

our delivering alpha conference. >> what our hope is is that obviously the focus is on national security, which is important. they have to get that right. we also want to make sure capital that creates jobs gets into this country. if the chinese company wanted to bi build a hotel in new york, hire people on the construction side and to work in the hotel, that's a positive we're hopeful policymakers can thread that needle >> watch the full interview on deliveringalpha.com. qualcomm announcing they're terminating their deal to buy nxp and announcing a $30 billio buyback. that stock is up 5.18% right now. 30 billion dollar buyback maybe the headline you will focus on. facebook trying to come back

this morning it is not just facebook feeling the pain today, why big beer and barbie are also in the headline thankfully it's not the same story and we have a fe-gelood video you have to see.

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among the reasons, the toys "r" us liquidation continues to hurt the company. they plan to cut 22% of its global nonmanufacturing work force and selling factories in mexico. airbusshares rising to a record high in europe. the company with better-than-expected results, costs fell on the a350. inbev topping expectations the brewer getting a boost from sales related to the world cup watch soccer, drink, that's a goal let's get the check on the morning's headlines outside of money and business phillip has that >> good morning. a group of republicans in the house are launching an effort to impeach deputy attorney general rob rosenstein and accusing him of stonewalling the investigation into election

meddling the articles of impeachment were introduced late yesterday. democrats have slammed the effort. a shocking road rage attack caught on camera in new york you have to see this two drivers they started sparring after police say one cut the other one off. they got out of the car, they started slashing at the other one, the uber driver is using a blade. the guy dives into the uber to get his keys, gets back into his own vehicle and hits the gas the uber driver is pinned against the van. police are still searching for that driver who sped off. and scientists announced that they gis codiscovered and underground lake on mars it was buried deep inside the red planet the findings come after a three-year exploration of the planet >> hopefully no road rage on

mars tough video to watch thank you very much. happier news coming up an iconic candy brand may be closing its doors forever. we'll explain why coming up. ♪ and i'll be your friend ♪ ♪ i'll help you carry on ♪ ♪ lean on me ♪ mmm... ♪ lean on me... ♪ mmm... ♪ lean on me.

facebook continues to plunge shares posting their biggest drop ever. the company reporting disappointing results. the question is will facebook's

pain take down the market? wait until you hear how much mark zuckerberg lost on that facebook slide. and energy companies starting to report all their numbers, we'll bring them to you. "worldwide exchange" rolling on now. ♪ welcome back 5:31 on the east coast thank you very much for being with us. i'm brian sullivan let's get to your top story. that's facebook. shares posting their biggest decline ever after reporting a big slowdown in user growth. three key takeaways, number one, weaker than expected revenues, global daily active users came in less than expected. a lot of that showing up in europe, and some ad revenue projections also fell short of expectations now facebook's drop initially after hours wiping out roughly 123 billion in market value. not as much right now because facebook stock is down only

about 17%. as we have highlighted, facebook is a top 15 holding in more than 140 etfs if you own these three etfs, pay attention. they have the biggest exposure to facebook according to etfdatabase.com. the xlc, 21.5% the advocates, 12. % a and the socl, 12%. the xlc down over 5% on the facebook news. let's talk more about this and the broader overall markets with chad morganlander from washington crossing advisers you're a value guy we'll have to switch gears on you here do you own facebook? >> we don't.

we've been recommending growth investors trim back holdings >> why didn't you own facebook what did you see >> it's priced to perfection it's a good company. companies with high multiple high growth expectation, any time you see a deceleration of revenue growth, that's a cause of concern volatility is rapid. it goes from one extreme to the other. hence the reason why you're seeing the 15% decline keep in mind you did have a short-term shot to the moon with this stock so this is really going back to the early part of the december and january. >> some smart viewers noted that netflix had a big drop the other day before rebounding. here's the difference between netflix and facebook i know they're both f.a.n.g. stocks, facebook is bigger it's in three times the number of etfs. right now dow futures are up, nasdaq futures are lower if big tech has been driving this market bus, do you think this will hurt the entire market

or can facebook prove to be its own story? >> it's its own story but also coupled with the large cap growth scenario as well as the f.a.n.g. story you should be shifting your portfolio to more value oriented companies. this is just a valuation issue we don't think this is a systemish issue. >> give us some ideas, if people are listening to us thinking we have some cash because i just sold facebook. let's face it shg it, took hadfd a good run, where do people go to make some money >> when it comes to going to more boring companies, go to healthcare go to amgen, pfizer, merck

look at the consumer staple companies. anheuser-busch, you mentioned them earlier we think if you have a 24-month holding period you could do well it's a rising dividend stock >> you think oracle and cisco can also be value companies? >> right you could have a lower pe multiple, a lot of cash on the balance sheet, consistent growth and play off the global growth the hshg e theme? >> were you shocked by facebook? >> no, i'm just shocked that the concentration and excitement from a handful of stocks, we saw this in 1998 to 1999 you had the amazon effect. a great company, but everyone is so excited about these companies that valuations are elevated

they are really elevated and price ed d to perfection. i think people with a longer term perspective, they may want to chill out a bit >> look at that. google, alphabet, down 1.5%. they just had spectacular numbers the other night. the market did not hate the numbers. amazon, nothing has changed with amazon how much of that is big tech correlation, one goes down -- >> that's it exactly >> is it the crab in the pot that pulls the other crabs back into the boiling water >> perhaps for 12 hours or perhaps for 36 hours, for three trading days besides that we think these

companies will trade on their own fundamentals >> facebook still had 42% year over year growth >> correct >> the market is disappointed at 42% year over year growth. >> it's all about evaluations. >> you always exceed expectations thank you very much. good stuff thanks for rolling with us >> the facebook downgrades, yeah, they're starting to roll in ubs downgrading facebook to a neutral from a buy raymond james also downgraded facebook, it's lowering its price target the sell siders are shrining up with the downgrades. time for the top trending stories. leslie picker has those. >> a little sweet tooth to kick things off it's a sad sign of the times in the candy world. the maker of those colorful candy hearts, necco, abruptly

shutting down its only factory it was the longest continually running candy company in america. necco declared bankruptcy earlier this year. it was bought back in may by an investment firm. it's unclear if candy production will resume. sad story. s s >> sad story there a trade war with china is taking an early toll on president trump's re-election bid. a chinese company that makes trump 2020 banners is ramping up production before the president's threatened tariffs against all chinese-made goods kicks in the company has been making the banners for the trump campaign since 2015 despite the president's frequent call to buy

american >> what parent has not felt overwhelmed by responsibility? apparently that's not a concern in the animal kingdom, at least for this mama duck a photographer spotted this duck being followed by a whopping 76 ducklings. wildlife experts say the ducklings all can't be hers. this mama looks to have adopted a bunch of other ducklings that separated from their own mother. because adult ducks can't tell which babies are theirs, she'll treat all 76 the same. >> thank you for ending on that video. it's been raining for six days you have mattel layoffs, necco shutting down, facebook down, we needed good news, a happy video. thank you. >> nothing like little ducks for happy news >> and minnesota, where this was photographed, named the happiest state in america >> despite being the coldest

>> it's the beer >> it's something. spending -- where is pete? there's a reason why minnesotans are happy. i'm kidding. still ahead, forget about the federal reserve, it's the european central bank you need to pay attention to today. steve liesman is here with what you need to watch over theex nt 24 hours

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this is a market day where there are two different stories. number one is facebook that stock is down 16% last night. nasdaq futures indicating a drop of more than 109 facebook is a massive company. it's in a lot of etfs. it's the "f" in f.a.n.g. look at the dow, they've been gaining steam. you know why president trump and jean-claude juncker yesterday talking about trade deals, tariff-free zone. so the multinational corporations, the biggest of the dig in t big in the dow, they look like they will do well. what will win out? the facebook effect or the juncker effect in the treasury market, we are seeing the effect of people selling bonds. the ten-year creeping, inching, clawing back to 3% speaking of the fed and the ecb and rates, we're on big data

watch today and tomorrow the ecb set to make an interest rate announcement in a couple hours and tomorrow we get the revised q2 gdp numbers, which could make economic history. thank you for joining us, steve, on "worldwide exchange." >> my pleasure tomorrow is expected to be a big data day for big data with a big gdp report big. how big? here is our cnbc rapid update, 4.2% is expected that's higher than we've been running. we had some 3s, we went down to 2. you want to follow the four quarter average, 3.1%. barclays, north of 5 we have not seen that in a long time >> wow when is the last time we saw 5 >> hold on to that thought i have that answer >> sorry >> morgan stanley at 4.7

atlanta fed at 4.5 you can see how strong the report is, the bottom is 3.8 would a big gdp number represent growth in the u.s. or is it a one-off? >> morgan stanley says driving this robust growth is a number of factors that are unlikely to be sustained here are some of those factors a bounce back from q1. that number was lower than the recent trend you have tax cut effects, those could be more permanent on the consumer side. stockpiling ahead of tariffs is a big number in inventories are expected to add 2.2% to this growth number. get rid of that, you're back to this 2.5% gdp growth politically, you can expect superlatives, but the last time

we saw north of 4% was q2 and q3q q3 2014. what is interesting about that, you might want to ask -- >> what's interesting about that, steve? >> one thing driving growth is buying soybeans ahead of the tariffs. >> i heard of this channel stuffing people buying a lot of stuff >> in 2016 you had some of that surge. soybeans a weird thing to move gdp. >> never have soybeans gotten so much attention or been so politically important. >> it gets to how we calculate the gdp. we take the quarter to quarter change and annualize it. >> do you think there's a good chance we'll get a 5% number >> it's possible >> to your point when the worst number or the worst number you showed is 3.8, we could have killed for 3.8 on the good side a couple years ago

>> exactly question is what do you do with it do you trade it like it's a 5% economy or do you trade like it's 2.5% economy? >> let's say you have a kid out there, nice kid, brings home straight "c"s. one semester straight arcs "a"s, do you question it or are you just happy doesn't mean they keep getting the straight a's, they may go back to cs, but be happy about the report card for now. >> how old are your kids >> 14 and 3? >> do you start to plan for harvard on those straight a's or do you still plan for trade skill because of the cs? not to say there's anything bad with trade schools >> i don't want to comment

the european central bank, more important than our fed maybe >> ultimately it will be the fed will get up here and stop you will not get the big info today. now the ecb says we're on track, 2% inflation growth is okay the story for the ecb is sometime next year, which is when they'll start to raise interest rates that will be big but that time is not now >> it will be bigley if we get a 5% gdp number. >> it will be a big number, but the question is how do you trade it here's the story i'm trying to talk to the white house on this one. they don't listen to me, which is fine. president starts talking about

numbers, 3%, 4%, 5%, 6% frotgroh if his policies can raise the underlying growth rate from 2% to 2.5% or 2.75%, and i mean not just a quarter or two, but to have an upward shift in -- >> yes >> that's a huge success i'm not sure why they -- i know why they do it, politically these big numbers are big, but 2.5% on a $19 trillion economy versus 2 means more jobs, more wealth it's a huge victory. i would like to see that happen. i would not be disappointed if it's not 3 and not 4 those are the wrong ways to think about it. >> joe kernen is not back tomorrow, is he? >> why do you ask? >> he may call back in to "squawk box. >> we should all "squawk" about it >> we should on a box or on a street of alley. still ahead on "worldwide

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i'm andrew ross sorkin, we have a big morning ahead on "squawk box. the facebook fallout, what those earnings reports mean. mark zuckerberg losing about $1 million of his own personal wealth we will talk about the eu and the trump trade talk, and earnings central we'll bring you parent company of this network. ed lee will break down the tech news, and we have the ceo of southwest air, biogen. so a big morning here on "squawk box. >> that's a big morning. thank you. shares of royal dutch shell are lower in europe.

earnings came in lower than expectations, even though the company did see a rise in quarterly net profit and announced a share buyback program. let's bring in rober roberto freelander this is a big time for the oil companies. you have conocophillips today, exxon and chevron tomorrow what are you guys expecting overall? >> it's interesting. we put out an in depth earnings preview. tomorrow you have exxon reporting. you will see a real differentiation between tepermi producers. last quarter permian producers outperformed they have one of the biggest rig

activity in the permian. what they say on commentary versus permian, you dived into this numerous times, it's forcing a lot of these permian producers to be almost uneconomical so the permian versus the bakken differentials, a lot of these guys in the bakken are profitable at $41 a barrel 65 is the new 100 for a lot of these guys in the bakken so what they say versus the permian activity and the bakken, well shutting down will be key to producers going forward >> it was a great note i think that's going to be the question as we hit the numbers yesterday or tomorrow, as i will on "squawk box" when they come out tomorrow morning, has production peaked? have we gotten everything we can get out of the permian now

according to numerous estimates, we'll need 30 to 100 billion more in investments in energy infrastructure to get more oil out of that region >> right again, the big question is not can we get more crude out of the area or out of the basin, because we can get more crude out of the permian, that's not the question the question is transportation, how hard it is to get the crude out of the permian and what guys are probably going to do, another thing to pay attention to, diamondback energy announced back in june they locked into transport ability to get permian crude out. they locked in a high price. do these permian producers pay up to transportation costs going forward or do they not a big thing to pay attention to, capex versus production. with crude around 70 where it is now, the bigger question is do

they meet guidance and production >> yeah. that's going to be the question. you guys, what do you expect do you expect they will meet guidance how is the group, which trades on the back of the oil price, so it's like oil stocks, oil prices go together, do you think they'll meet that? >> we separated to those producers who can reallocate resources, those we're cautious on and those who are not we think a lot of these oil producers are beating numbers, but the production will probably be good to better in a lot of names, but definitely a suiciwie separation between the haves and have-nots. as always, let's wrap it up with your morning rbi. you heard it before, with facebook's likely drop today the stock is down about 17%, mark zuckerberg is likely to see his personal fortune fall by about $15 billion.

that would wipe out his $14 billion in gains for the year, avg leinhim with $70 billion. "squawk box" will have more on this for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

. good morning an earnings alert. investors failing to like facebook after the company's latest results falling short shares plunging 24% in after hours sessions. trade war averted. president trump and the eu agreeing to a truce of sorts. and gary kelly will join us live to talk about his company's latest earnings. it's thursday, july 26, 2018 "squawk box" lifts off right

now. ♪ live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin and mike santoli. joe is off this week our guest host this hour is ed lee of the "new york times." he's here because we have a lot to talk about in technology. yesterday we set things up at the end of the session for an incredibly strong day. we are looking at the nasdaq setting a new high the s&p closed at its highest level since january and the dow closing at the highest level since february, then we heard from facebook. facebook shares getting slammed and the rest of the f.a.n.g. stocks following that's why the nasdaq is down by 108 points you can see the dow was up by 64