all right, everybody let's take a final check on the markets. nasdaq under a lot of pressure because of facebook down 110 points mcdonald's among others beating estimates today and that is certainly helping the dow. that does it for us today. >> we're done. join us tomorrow "squawk on the street" begins right now. ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla cramer has the morning off futures relatively steady when you consider the hit the nasdaq's going to take from facebook's expected 20% decline in the open. useu trade talks are in focus, along with nxpi qualcomm, and the single busiest day of

earnings season. germany best day in more than a week as automakers over there rally. ecb says rates will remain changed until next summer. facebook's earnings flop tech stocks set to fall at the open with the company on track for maybe the single biggest one-day market cap drop ever when will the trade wars start to hit business and transactions last night qualcomm terminates its bid for nxp after the chinese government fails to give approval shares of amd are propping premarket. quarterly earnings boosted by a rise in demand for personal commuters. lisa su joins us here in post 9 in just a few. could be a historic day for facebook let's talk about what happened at the beginning of last night's earnings call. >> thanks, deborah, and thanks everyone for joining us today. we had another solid quarter >> actually, investors don't seem to agree with that. mark zuckerberg said that at the

beginning. call later took a shift in tone. before the start of the call stock was down 9%. by the end shares were down 24%. facebook is hurtling toward what might be the single biggest market cap drop in one day leadership at the company says the numbers are not likely to improve any time soon. let's bring in julia boorstin and set the table for the discussion that we'll have all morning long >> good morning to you, carl facebook reported its slowest ever user growth and revenue growth slowed more than expected it was this warning from facebook's cfo during the earnings call that sent the stock plummeting take a listen. >> our total revenue growth rate decelerated approximately 7 percentage points in q2 compared to q1. total revenue growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high single-digit percentages from prior quarters

sequentially in both q3 and q4 >> the reason for that decline, the company cited foreign exchange rates, news stories hazards aren't as profitable as news feeds ads and giving users more choices for privacy this followed the krcambridge analytica scandal. mark zuckerberg explained how protecting users will impact margins. >> we will continue to invest heavily in security and privacy because we have a responsibility to keep people safe. but as i have said on past calls, we're investing so much in security that it will significantly impact our profitability. we're starting to see that this quarter. >> zuckerberg announced 2 1/2 billion people use at least one of facebook's apps every month

but that didn't assuage concerns about user engagement. in europe daily active users declined for the first time ever dropping by 3 million from the first quarter to the second quarter. back over to you >> julia, a lot to talk about. julia boorstin joining us on the phone this morning, citi's internet analyst mark may cuts his price target on the company post earnings along with a bunch of other analysts today mark, good morning to you. >> hey, carl, good morning thanks for having me >> it's been pointed out that facebook famously is conservative in guidance, whether it is about spending in 2015, the ad load in 2016, and now this is it different this time or not? >> i think there's a little bit conservatism there i think a lot of it is the communication. a lot of the deceleration that they're guiding to in the second half of the year is just simply related to currency. by our estimate, the high single digits decel in q3 is almost

entirely made up of the movement in the currencies in the last few months and the organic growth is actually not being guided to slow down in q3. in q4 that is the case i think what we are seeing here is the law of large numbers. facebook is doing close to 15 billion in revenue per quarter and growth inevitably is going to slow. but i think you're right, there is a bit of conservatism it seems like this is a continuation of what started back in q3 of last year where they're trying to just communicate a more conservative outlook and talk about all the investments they're making in safety and security to protect their users and the durability of the franchise longer term >> i don't know, mark. i've spoken to a couple of large holders this morning who are freaked out. i mean you're talking about a company that's guiding from mid 50s margins to maybe mid 30s talking about a forward guide of 20% ad growth rate in q4 from what had been far higher rates as you well know, no visibility

on revenue trajectory gets people very concerned. does it feel to you like something occurred during the quarter that changed their view of their overall business for years to come? because this is a company that bought back $3.2 billion worth of stock you would think if they knew something was coming they might have pulled back on that >> yeah. i mean, let's put it in perspective. this is definitely a challenging time for the company right? europe is putting in to place new data privacy rules facebook itself is putting in place new data and privacy rules. yet they still grew sequentially, year over year 40% on top line. even with the decelerated guidance, the implied fx neutral ad revenue growth in q4 we think is about 30% growth. so these are still pretty healthy growth rates when you put it -- especially when you put it into perspective of how large the company is and given all of these data and privacy related things that are happening right now.

don't lose sight of the longer term opportunities here with what's app, massive audience not being monetized. virtual reality. things they're doing in bitcoin. i think there's still a lot of opportunity here >> all the things they talked about investing in right? ai, ar, vr, building next generation of computing. but again, i come back to the basic business are they having a harder time monetizing stories on instagram, for gram, than they would the facebook feed? have the changes in terms of privacy and the changes seemingly in how they are approaching their community, so to speak, hurting their ability to monetize? >> my personal view are they having a hard time monetizing stories? sure, because it is a new ad product. but i think facebook has a great track record of, if they can get users to engage with stories, which they certainly are on snap and instagram and these other platforms. the advertisers will be there.

so i feel good about that. but they are taking possibly some near-term hits on that. is the data issues impacting some of their monetization short term surely will they be able to work through that i believe they will. so this is a challenging time for them but you still put it in perspective. growing at the top line 30% organically. there could be some pressure on margins but this company has a great track record of showing returns from those over time >> there is this narrative out there the company is engineering its own slowdown in a way. snoerdz, i in other words, it is choosing to do it, showing it is very serious about some of these privacy concerns is that in a way better than another company that is facing a slowdown it can't control? >> well, this is my 19th year covering internet on the cell side the companies that invest for the long term, companies like

amazon, tend to do much better than the companies that aren't investing heavily in their businesses so i like investing, especially with a company like this that's got the track record of delivering on that and i do think that you're right. i think a lot of this is trying to control the pr a bit by showing how much they're doing to keep regulators off their back so far at least in the u.s. and most other markets, that's been successful the regulators have been more willing to let self-regulation reign, i think because facebook's been so quick with solutions and taking this so seriously. >> that's a good point we'll see if that has any impact on trade today historically and so far this quarter, companies that gap down like this end up narrowing some of those losses during the session. we'll find out at the close.

mark, thanks a lot mark may over at citi. >> wow all right. the trade war also front and center this morning. the u.s. and european union agree to resolve tariff disputes although it is unclear exactly how far progress has been made but tension between the u.s. and china certainly seems to be get being only worse now it has had a toll on the merger and acquisition front qualcomm announces after 21 months of waiting, that it is abandoning that deal to acquire nxp semiconductor for $127.50 a share in cash. remember, this is a deal that started at $110! then they had to go up because people said nxp was worth more they went to $127.50 they got voting agreements then they sat and waited and waited for the chinese to give antitrust approval after they had received eight of the other approvals around the world for this almost $40 billion deal they set the deadline of 11:59 last night

and the chinese didn't show. here's treasury secretary stephen mnuchin moments ago who was active in trying to get the chinese to say yes here's what he had to say. >> i'm very disappointed that they didn't get regulatory approval i specifically had conversations. unfortunately, i think this is another example of where it was approved in every single other territory. we're just looking for u.s. companies to be treated fairly and i'm sure qualcomm will continue on a great packth it is a great american company but i think it's unfortunate that didn't get approved after what was a long two-year process. >> yeah, incredible process. steve mollenkopf is going to join me at 10:30 a.m that's an exclusive interview. we'll be speaking to him about the future of this company he's a man who's had no shortage of challenges coming at him from all sorts of different places in the time that he has been in that ceo job but this one, guys, is certainly curious to a certain extent. the chinese, as we've said, you could look at it and say, well,

this is clearly a ratcheting up of tensions. mnuchin was involved wilbur ross was involved, trying to get them to say yes zte is back in business and yet they wouldn't do it. the chinese, for their part, would say we didn't disapprove it we simply weren't ready to approve it qualcomm said it was time to move on, 21 months we can't keep extending this and going on qualcomm had a pretty good quarter. they put in the $30 billion buyback. that's for cash on hand they were anticipating to be used for the nxp deal they will pay nxp $1.5 billion after tax which puts them -- i think it is a $5 billion buyback, as well, and will remain a public company apparently this is just off the nxp call. they were working last night right to the very end, nxp says, working diligently to close this deal until midnight last night but it didn't happen one has to wonder what is next.

look at this tweet from marco rubio weighing in this morning on this failure by the anti- trust authorities. we did them a favor, he says, by reversing that ban on zte, buying chips from qualcomm how did they return the favor? by block being the deal with nxp. besides begging and pleading from treasury, we should impose the zte ban. i think this goes to the fears this will only ratchet up tensions what about waway they already can't sell into the u.s. a lot of questions here. it undermines the integrity of the antitrust process in china, you would have argue, without a doubt, at this point so a lot of different areas -- >> it is yet another tool in this trade war headline overnight is there is some sort of truce between the eu and the u.s. on the trade front and things got worse with china -- though the yuan did

strengthen last night. we know that the treasury is going to be watching that very carefully. >> goldman has the exact opposite view which we'll talk about later on this morning. when we come back, so many earnings to get through. amd, qualcomm, duncan. there's news on comcast, mcdonald's, southwest, twitter we'll talk to a few ceos today, as well. the pre-market as we came off that late stage rally on those trade talks with the eu. more "squawk on the street" is back from post 9 ia men mont ♪ experience the versatility of utility at the lexus golden opportunity sales event. lease the 2018 rx 350 and rx 350 awd for these terms. experience amazing at your lexus dealer.

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shares of amd up sharply in the premarket. the chipmakers beats on earnings after reporting its best quarterly earnings in seven years. shares are up more than 16% so far this year. joining us here at post 9 for an exclusive interview is lisa su, amd's ceo. jon fortt is going to kick things off >> lisa, thanks for being with us so $1.76 billion, up 53% year to year and now we are talking about rise in mobile this chip is doing really well for you guys i wonder how did the desktop success, the launch of that, set up for the notebook chip should we expect the same trajectory or is there a little

extra juice behind it? >> so, jon, first, it is great to be here thanks for having me this morning. i would say it's been a good start to 2018. our focus has all been about new products and how we bring new products to market the verizon product line has actually done really, really well we started with desk tops and did really well with the desktop products now with rise in notebooks we had over 25 new notebooks launched here in the second quarter. it's right ahead of the big season for notebooks in back-to-school and holiday so i'm very optimistic about what we can do in the notebook business overall, pcs are actually a little bit stronger than people expected so that's also some good momentum in the markets. we're pretty pleased with how verizon is doing >> tell me how you are thinking about demand and the possibility both on the consumer side with back-to-school and holiday coming up, what kind of marketing muscle is going to be put behind the amd notebooks, what kind of shelf space

then the commercial side what's driving that? is it this enterprise shift towards windows tablet >> so we really believe that consumers want good value and good technology. we're providing really good sort of technology for the notebook form factor. as we see it, we have really good relationships with our poem partners given the number of platforms that are out there but we also are building awareness with the consumer. in that sense with back to school and holiday, you're going to see a lot more marketing going after that commercial is actually doing very well as well when you think about the refresh of windows and commercial buyers tend to take a little bit more time to make their decisions, but we believe this is a multi-quarter growth story for us in the space. >> want to ask about china you've got this joint venture

with server processors that observers are saying are pretty much the same as what you get from amd are these trade tensions now with china making it more difficult to maintain a relationship like that or are they making that pre-existing reasonship more valuable for amd >> we looked that the very strategically. when we think how important processing technology is globally, we wanted to build a strong relationship in china, as in the rest of the world, and this is one of those cases where it is a win-win. we are absolutely looking at it as a way to grow our market. clearly we have to watch some of the current developments that are going on between the u.s. and china, but we view it very much as part of how do we balance both market share growth in china which is important, and also protecting our ip which is also incredibly important for where we are >> let's talk about the revenue

guide which was light from what some analysts were expecting how much of that was because some revenue came in earlier than expected. you had a strong quarter how much of it was because of this block chain stuff that business has slowed down a bit as bitcoin's rise has been a little bit soft, but it is coming back. >> so, look. when i take a step back and look at our growth story at amd, our annual guidance is for mid 20s percentage revenue growth. if you look at the first half of 2018, we grew revenue over $1 billion so we had a very strong first half there is some timing related things relative to when revenue comes in and, sure, blockchain was a bit lower here in the second quarter and we project it to be lower in the second half of the year. but the strength of the amd story is all around our new

products frankly, the data center is a great, great market for us and we see it as just the beginning of actually a multi-year growth path for us. >> i think about amd andthe competition with intel sometimes you guys have strong products right at a time when intel's stumbling. it happened in the past. seems to be happening again. how much advantage have you been able to get out of the specter meltdown issues at the beginning of this year were commercial customers saying, well, maybe we don't want to have so many eggs in the intel basket and how much of that might swing back the other way if the sleeping giant starts to wake up >> well, i think the most important thing in technology is really to have a long term road map over multiple generations. for us, we have been about high-performance computing and really we've set out multiple generation road map with our zen 1 processors that are currently in market. then our next generation zen 2 processors that are in coming to

market in 2019 so we really believe that we made some great technology decisions and those are going to play out over the next couple of years. so we absolutely consider the competition to be tough. but we also believe that our road map is really strong and so i am looking forward to that competition. >> counting on intel recovering in their process technology issues >> we always believe that we have to count on the competitor being good and us being better so >> all right, lisa thanks >> thank you, jon fortt and thanks, lisa a look at the pre-market as we go to break, obvious nasdaq weakness on facebook but the rest of the market holding in there. dow looks jtoump by 60 points at the open. we'll be right back. who would have thought,

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u.s. bank - the power of possible. you're watching cnbc's "squawk on the street. live from the financial capital of the world the opening bell set to ring in just about a minute's time big day as we watch trade fallout from these talks between the united states and the european union yesterday facebook obviously on pace to set a record for single-day market cap loss. althou althou although it was pointed out only once since september of 2014 has a f.a.n.g. name dropped down more than 15%. it was netflix i would say about as often as they don't, close of day,

recover some of that >> it will affect all the other f.a.n.g. names as well it was a 38% drop in after hours yesterday. i think you have to -- [ closing bell [ opening bell ] >> an online marketplace connecting buyers and sellers of new and used cars over the nasdaq fast growing new chinese e-commerce platform. one thing to keep in mind is facebook and its degree of concentration among hedge fund holdings goldman put out a list of stocks that are important to hedge funds as a percentage of top holdings, a percent that happened in the top ten. facebook does lead that list we'll see how they play in today's action going to be interesting. >> also twitter's getting hit hard this is a company that reports

earnings amazon is reporting after the bell twitter tomorrow so far, google is the winner of the f.a.n.g. names in terms of its reports off of very high expectations there are a lot of questions, guys, on facebook. everything from are the controversies finally starting to hurt facebook where it hurts, does facebook have a communications problem, have we ever seen any kind of guidance like this. i think gene munster called is unprecedented revenue guidance the question is, is this a buying opportunity on a very steep sell-off >> a couple of holders admit guidance was puzzling. to forecast it that far out, some are questioning it. you heard mark may talking about all the positives. there is no doubt this is still

a very rapidly growing company but when i look back at the last quarter where they were growing 60% operating growth, and -- i'm sorry, 39% operating growth in the first quarter, even though they were hiring more people everybody was saying, don't worry about all the things they're dealing with and the people that they're hiring to go through content and everything else apparently it is not going to hurt them. something seemed to have happened this quarter that potentially changed. clearly mau growth and everything else. but it's more this guidance. it wasn't a great quarter that they reported. but it's way more about what you heard from that cfo on that call in terms of the future when you have no visibility on the trajectory of revenues, and the business seems to be changing a bit in terms of how they monetize things, you get a lot of investors running away. that said, there are those who still believe a company can do $10 a share in 2020.

so you back into a multiple on that facebook's never traded at a particularly high multiple given its incredible growth rate i'm hearing maybe look at it at $170 as an opportunity to sort of pick some up. >> barclays says we haven't seen this disastrous of a print since 2013 they argue wait until the dust settles. susquehanna today says management's been historically conservative and says we are still in the middle of a multi-year ad share gain look at what's happening regarding digital media across the board. >> i don't know if we should listen to analysts because nobody saw this coming and they were all in love with this stock but a lot are sticking with it

i think they were a little caught offsides but there is stilla buy you have this debate about the law of large numbers don't even know if i'm using it correctly. but at 2.2 billion users around the world, it is not going to grow forever that's always been a risk. but when you start to see a slowdown in active users especially in u.s. and europe, you wonder if we're hitting that point or coming close or that's going to be a factor >> agreed. i think the thing that really is concerning people is that reduction in margins that they're pointing to and the fact that they seem to think it is going to take place for some period of time we talk so often about the profit machine that is facebook because of those operating margins it's had because you think about the number of employees. even though they are way up in employees, they're still 30,000. >> it was an increase of almost 50% last year. >> ibm has 360,000 employees

it's always been incredible how few employees facebook has had to generate the kind of profitability that company's had. >> because the market share -- market cap loss last night was equivalent to about an ibm at 143. >> and a lot of other big companies. >> some concern. i think the window for employee sales does open on monday. some are wondering whether that will bring some further selling pressure on the stock. i would mention, we've got amazon coming still in terms of earnings we talk about advertising. you mentioned it, carl, digital. there is this belief that the amazon platform is becoming a formidable competitor when it comes to ads you can imagine you've got intent when you go on there to buy something. we'll keep an eye on amazon in terms of whether they're taking some share there as well >> we'll see the echo of facebook today look at twitter today. the president comes out with a tweet this morning before the

market says, twitter shadow banning prominent republicans, not good we will look into this discriminatory and illegal practice at once many complaints. this sort of shows you the difficulty these social platforms have in working with algorithms, controlling content, controlling what you see in particular twitter's down almost 2% it was actually down more in the premarket. we'll see how that plays out >> did want to hit our parent company, comcast talking about its underlying business for the first time in a while. not its pursuit whether of fox, which is over, or sky, which continues. on the call, they vehad very little to say with regard to their continued pursuit of sky but they did report a quarter that has been well received at this point of video losses i think were 140,000 but that was a big less than anticipated. they added 260,000 broadband customers. they say the second highest

quarter result in ten years. overall i think people encouraged by actually what they call the word they use is moderating on the loss of video subs overall in the metrics themselves, free cash flow, $4.3 billion. earnings per share up 32.7%. encouraged by the buyback, as well so at least for now a positive response to our parent company's results this morning again, they are sort of shifting this narrative away from video subs to broadband subs that's where they want you to focus. clearly for obvious reasons. 180,000 customer relation subs added. and brian roberts did speak a bit about the fox deal kind of echoing comments that i -- or thoughts that i had shared a bit in my reporting,

which is it got to a level where it didn't make sense for us to continue to compete on price for fox. despite what he said was what they thought was going to be a positive regulatory review, the desire he said is of obtaining international assets a key reason they were interested in fox and a key reason why they continue the pursuit of sky where they are leading by a good amount but still some question as to whether disney/fox will come back, but that seems unlikely. >> i wonder if they look at a facebook result like this and say, they're not invincible, or a netflix result under armour looks like it is going to be a winner as investors try to find a bottom for the stock. the company did see a wider net loss but overall very solid top line numbers 8% growth for revenues 2% growth in north america it was offset by this restructuring charge remember under armor is in the

middle of a complete retooling and restructuring of its business which should be wrapped up by the end of the year. investors clearly saw through that loss and both underline trends in apparel and footwear they've had a number of hits which has sort of helped the halo effect around the stock and business the hover, for instance, the rock, the curry 4 and 5 which are apparently doing well. they are continuing to invest which is what you are seeing in terms of some of the margin pressure around the direct to consumer business, something all the athletic makers, adidas and nike, are all investing in they are continuing to invest around international and footwear and are starting to see some results right-sizing the u.s. domestic business as the company sort of matures. closing stores and that sort of thing. investi ining and growing in thr international business the stock up 5%, up more than 50% this year. had an awful year last year.

still has a lot of short interest around this stock some of that has to do with the dual-class structure but you get these outsides moved sometimes as a result of that shortage this one looks like an overall solid quarter for the underlying business >> that's one dynamic that worries some about other names where short interest is light where the last buyer decides they've had enough then you run in trouble, no shorts to cover. biogen is an interesting story, down 9%. they had trials of an alzheimer's drug that showed a good reduction in cognitive decline by one-third a lot of analysts saying end points didn't quite match what they were expecting. some problems with interpretation of the data maybe a little sell on the news. had a big spike yesterday. >> anything on alzheimer's would be encouraging your point is the key one which is maybe end points weren't quite hit as far as what people were expecting >> spotify, fairly new public

company that we talked a decent amount about stock looked like it might open down but turned around that may be because of the call. had a chance to catch up very briefly with the cfo this morning before he got off the conference call. perhaps some concern about monthly average user growth. they've got 180 million monthly average users now. they gave us restated numbers. they went up 4% quarter to quarter, 30% year of over year the premium service growing faster than the ad supported service which is somewhat interesting but he believes the ad supported service will reactirbeing a -- reacti-accelerate in the td and fourth quarter he told me we were doing some things in terms of measurement effectiveness, we took some

brands down from the platform due to concerns over data which we've no you put back on overall, as you see, a positive response stock has done extremely well since that unusual direct listing that we saw here at the nyse of spotify. approaching $200 a share and up over 26% since it came public. >> really busy morning we have a lot more movers which we will hit later in the show but we've got to hit facebook here top story of the day plummeting here in the opening action morris mark of mark asset management, long-time media and tech investors joins us on the cnbc news line how disappointed are you, morris, from what you heard on facebook's call, what you saw in the numbers? or are you taking this opportunity to buy >> well, i have to say we're basically keeping our position sometimes luck is better than brains we were concerned yesterday morning about what would be said on the facebook call because david wehmer, the cfo, is sort

of a wild card i did not expect they would say what they said we hedged one-third of our position we had concerns. we covered that right on the opening. so in terms of our -- i i think people are missing one point which i think is really important. as far as we can determine with the growth of stories and instagram, with the probable development of stories in facebook, engagement is growing. it is not the client i mean they lost a small number of users in europe, largely attributable to the initial impact of -- we think in time the natural growth and demand in services will probably result in a restoration of growth. i think if this was netflix,

you'd say, look, the subs are spending a lot more time on the product and that's exactly what they're doing. so i'm not minimizing any of the comments that they made. and i think that they have to expect slowdown in the rate of revenue growth, at least unless and until they really do a better job of monetizing story which we believe they will do. >> morris, morris -- >> i'm sorry, go ahead. >> morris, david sounds like you expect it toe to be dead money. it's hard for me to imagine it gets a lot of momentum behind it given the lack of visibility you are talking about. >> i'm just saying, tactically we were concerned yesterday morning because the stock had had a run and we know a lot of things come out of facebook conference call which a lot of analysts can get what you'd say very uncertain about but i'm not smart enough to answer your question very near term, david. i can say it is a great company. they understand their problems

i think you have a ceo who really does get it, who's very engaged. he's only 34 years old, and he's been doing this for 15 years he's very engaged. so the way we look at it, it is a terrific business. they have some relationship with 1 out of every 3 people in the world who doesn't live in china. they have 2.5 billion users either on facebook and/or instagr instagram and/or messenger and/or what's app. i think they are seeking to develop that relationship and with respect to regulatory and social issues. >> morris, today one of the sell side, jpmorgan, says they believe the company's committed to safety. an expensive undertaking with little or no real return of revenue. is that encouraging to you from a product standpoint or

unnerving to you as a shareholder? >> it is a complicated point i think the way i look at it if i was going to simplify it, concern about safety, concern about security just makes them that much better, that much safer. i think ultimately really strengthens the franchise. and concern about the quality of the service is ultimately what wins i think they're very concerned about that i think the development of stories on a large scale, the buzz that people really ought to consider >> we'll see what happens today, morris the stock is down 18.25% here in the opening trades thanks for joining us, morris marks sticking with facebook let's get to the bond pits today. dow's up 1.45. s&p down 7 >> hello, carl the yield curve remains very firm relative to each maturity and how it's traded over the

last several weeks, upper end of the range. but we're still flattening a bit. short end virtually unchanged. the long end 30-year bonds down a couple then you're down one basis point for the intermediate part of the curve, 5s and 10s. a one week of 10s, what's interesting is after we jumped the broom, you can see it is pretty sideways. sideways been a main feature for treasury rates, especially the long end but as you can see, it's not moving out of the range and it is pretty tight. if you look at a year to date, way want to draw your attention to is how little time we spent above 3% a little portion of april, a chunk of may, eight closes that are 3% or higher obviously traders are keeping a very close eye on that psychological level. 24-hour chart of the bund, fascinating. it gave up ground as mario draghi started speaking. but a 2-day chart gives you perspective. we were rising leading into it, down going out of it so basically it is pretty much a

wash same could be said for 2-day chart of euro versus dollar. basically a wash another area there are big ranges, the dollar index and the reverse image of that which is our june 1st start to the euro versus the dollar. it is not only in a very tight range, it is narrow as well. some expect in the near future we might get some extra volatility should it break out to one side or the other >> also later on this morning, an exclusive with the ceo of qualcomm and the incoming and outgoing ceos of dunkin' donuts. the dow up 150 at&t provides edge-to-edge intelligence, covering virtually every part of your business. so this won't happen. because you've made sure this sensor and this machine are integrated. atta, boy.

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home builders, it's been a terrible week for the builders all the steel stocks still down. there's a limit to how far a stock can go on good news. look at visa good backdrop, spending the high but it's an historic high, we're reaching the limit on how far you can push it. a lot of companies, tough reports. not just facebook, look at whirlpool, halliburton had some good guidance overall, but it wasn't good enough to move the stock forward. we still have some highs in the major indexes. the s&p only 2% from new highs, and the nasdaq despite what's going on in fang, still a new high you can track the fang stocks. nyse fang stopped out in june.

finally a couple of quick ipos in the nasdaq. very quick ones. big chinese ipo, also focused financial partners, they do all sorts of independent management, registered independent advisors, they priced below expectations the chinese e commerce platform, $20 billion for the market that didn't exist three years ago 16 to 19 was the chatter pricing at 19 would open it at about 10.45 down at the new york stock exchange the dow up 155 points, but the s&p, you don't see this very often is don't eight points. >> not often you see facebook as the biggest s&p loser. as they come out with that guidance

s&p down 19 for the moment "squawk on the street" continues after a break. are you ready to take your wifi to the next level?

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good thursday morning, welcome back to "squawk on the street." taking a look at the markets today, the dow is being helped by some transports, some media names, up 155 or so. and nasdaq getting hit by the facebook echo. >> the facebook face plant, the stock getting crushed this morning after missing expectations on revenue. monthly and daily user growth. and the busiest earnings growth of the season continues, we'll talk to the ceos of dunkin' this hour. >> and qualcomm ceo steve mollek mollekopf, it will be an exclusive interview just a few minutes from now facebook missed on revenue,

shedding 1$100 billion off the market cap joining us today our financial analyst, good morning, guys. >> good morning. >> mark, i'll begin with you, the title of your note is don't unfriend facebook now despite everything we just said, why >> by the way, there's more negatives than you just mentioned, they lowered their operating guidance, they gave their deceleration guidance in the back half of the year. but i think they're being overly conservative, i don't think fundamentals are going to be as bad as they are implying they are only at the stories feature with both instagram and on facebook. we think that's just as monetizable as the news feed we might have some slowdown in the growth rate. i think that's more temporary than permanent you still have facebook

messeng messenger. you have zero platforms that are zero monetized today so i still think they have revenue drivers. they're absolutely making investments in the security of the platform if they don't get the security of the platform right, it's all over and they had issues about this earlier this year, and they have to get this right. this is an opportunity to buy the stock, when you can buy the x cap. >> brent, are you as constructive and what about the other factors that not in their immediate control, like the for for forefo forex. if you put a new multiple on the street that significantly cut, you're talking 195 $195 to $300

the next two years we just look at the ranges on the multiple and suggest that we're probably two hours below what the fair value is so to get back 18% to 20% on a plus 45% on the 150 floor, you have had a pretty material acceleration on the stock, obviously some of the other tech names have -- this goes back to microsoft many years ago when everyone thought office was saturated. nudella takes over and the stock has tripled. we thi obviously there's going to be question marks around the deceleration >> you guys loved the stock. i'm just wondering, we had a buy rating on this stock, nobody saw

any impact from the privacy concerns, from the scandal with cambridge annalytica i know that's not necessarily related, but all of this eventually was bound to add up and i'm just wondering, how is it such a big surprise the magnitude of the deceleration for analysts. >> we were wrong in the short-term, but long-term we're right, we're not trying to safe face, we're trying to do the right thing long-term for investors. nobody can anticipate what the cfo is going to guide. no one anticipated that the growth rate would go into the 20s in the fourth quarter. i think ultimately that was hard to handicap, but ultimately we have been pretty conservative in the past, and over time, these new numbers seem very achievable, we took numbers down

significantly. i think mark and i were talking, and i think ultimately we have a new base to build off of, and the new numbers, at a 25 to 30 multiple on earnings, which is significantly higher if you can look out a year from now >> mark, brent bring its up in a sense, and i have had conversations with investors who say the same that guidance is puzzling. and i'm curious, they bought back $3.2 billion worth of stock during the quarter, we have seen the idea that they're going to have to spend more in previous quarters cap x is heading up. it hasn't seemed to have mattered in the past did something change in the quarter that they decided they had to inge cchange this guidan such a significant way >> one thing as i look at

facebook and google, one of the takeaways is ai is expensive all the computational requirements, the firepower to run ai on massive data sets, it requires many more data centers that many of these companies realized so you're seeing doubling of data centers in platforms like facebook the other thing, there's one outlier in the entire space, and it's probably facebook and this is a company that was under severe scrutiny earlier this year and saw their stock go to record highs so i think they have an interest in their stock prices and it's moderated and they convince the public for good reasons that they are focused on security and they amp that up as much as they can. if facebook gets hijacked during the midterm elections, they have

to have greater security on that issue. >> i was looking back to when zuckerberg originally said no meaningful inpact onapril 5. that was a few days into the quarter. do you feel misled or can things change that much in 9 d0 days >> what was terrible was the guide in the back half of the year user growth down one to three million, that was the first time we have seen it down sequentially in the whole grade scheme of thing, the quarter wasn't that bad. it really goes back to the guide. >> that was the lowest in three years. >> i'm just saying that the magnitude wasn't deserved of a 20% down and ultimately it was down to the guide. yes, look, we have seen great stories like vm ware, microsoft,

they go through these deceleration periods in it's painful short-term if you look back to mike crowe soft, more than they decelerated to what the stocks went to from that point was a lot higher. vm were doubled from that desell point. and look at what happened. this is facebook inflicted they effectively brought this on themselves and they're reshaping their model on their own no one forced them to do this, we think ultimately it's a great call for them to protect the franchise. but when you talk to advertisers, during the quarter, advertisers told us that pricing went up 30%, 40% they mentioned the roi as one of the best rois that they get across all digital advertising when you separate the data

points, the fundamentals for amortizers is still very, very good >> as we continue to watch the price action, brent, mark, thank you for joining us on a very busy news day. >> sarah, we're watching young china shares, they're surging on a report that hill house capital group may be in talks to acquire that company that's according to a report from the information citing sources familiar you can see those sources up 1.6% a possible hypothetical takeover by hill house, one of china's most prominent -- young china up 40%, since spinning off from young brands in 2016 we have seen a couple of trading volatility halts, we'll see if things change as the morning

progresses >> tom, thanks is that real >> that's on nspi data, that's really strange >> it's odd, also the technology side of it i know nothing, but that's a big move on the story from the information. i don't know if they had price in there or not. >> better make some calls, david. >> all right >> when we return -- >> more calls? >> so easy the world's largest are still playing down the global tariff wars and of course we are on tape of this facebook story all morning long, the stock is down 18%, pretty ugly action, the level of facebook back to may levels of this year. we'll be right back. what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee?

where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

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and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. shares of diagio moving at the moment the recent reports were overall good and announcing a new buyback program. i spoke to the ceo this morning, asked about concerns about trade tensions and new tariffs from the u.s., here's what he said. >> we're working very closely with the industry to ensure we keep a free trade environment for spirits worldwide. so we're all aligned on really working with the government to

ensure this downtownesn't escal but we see minimal impact across the country. >> the price increases due to tariffs, do you expect to pass that price increase along to the consumer >> we operate in 180 countries, we have very different trading regimes all around the world we will work our way through this, clearly our interest is to keep free trade in an open trade environment around the world but should situations and conditions change in particular countries, we can adjust i mean johnny walker has been around nearly 200 years and has seen a lot of these ups and downs over a couple of centurie and we will be able to adjust. >> on that front were you encouraged from what you heard between president trump and european commission president yunker yesterday >> i think it was a positive

step in the right direction. i was encouraged >> diagio's ceo this. 46% of global u.s. spirits and 65% of global u.s. whisky exports are either currently facing or at risk of facing retaliatory tariffs. so this is a big issue for the industry though diagio is a big global impact on the blond. but clearly the smaller distillers are going to feel it. and na's wthat's why they're meg in kentucky this morning >> it's going to get distilled where it's distilled >> and that's a process, and it takes a lot of time. i would say that overall the biggest and most profit markets is in the u.s. especially tequila, not so much beer, but tequila is hot right

now. scotch also. >> i like tequila. >> i like beer >> not so much beer. nig nigel travis will join us anglo with david hoffman in an exclusive interview in just a moment dow is up 131 take prilosec otc and take control of heartburn. so you don't have to stash antacids here... here... or, here. kick your antacid habit with prilosec otc.

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looking at the tech sector today with amazon. what's going on, dom >> facebook shares certainly driving down the s&p 500 technologies sector. they're off 1.5% right now we want to turn our attention to what's happening with facebook facebook is working its way through a lot of the markets and amazon, traders are watching what could happen with amazon.com shares because it is going to report its quarterly results after today's closing bell amazon's stock already hit a record high yesterday, it's now trading in a similar trading set up to what we talked about with facebook, a lot of that up side

momentum which puts a lot of that stock up to where it's relative to it's medium and long-term prices when we take a look at some of the etfs and it's exposure there, we wanted to take a look at a lot of the exchange traded funds, a lot of the related etfs already track this kind of exposure the power qqq tracks the s&p 500 large cap index. amazon.com could be a big mover it if amazon is volatile. fsds has about a 20% weighting in amazon shares so if could move a lot if amazon does, the $810 million services has a 20% weighting there. and we're going to add one of the bigger sector weightings out there. it's got near one quarter of

that fund in amazon.com so when we talk about facebook and it's effects on etfs, amazon shares if they do get volatile could have a huge effect on these exchange traded funds. >> dom, thank. dunkin' brands report affects both it's top and bottom lines the ceo of dunkin' and the executive chairman, take it away >> we are joined right now by dunkin' brands executive chairman nigel travis and david hoffman. the transition has been well telegra telegraphed, well received by the street what's your plan for this new role for dave? >> as you say, we had this planned for two years, as jim

cramer pointed out, are now 68, so when we planned this two years ago, it's a perfect time to transition, but we wanted someone who could really take our restaurants to the next level. david is perfect, because he has a restaurant background, he has a global background, and in the last two years that we worked together, dave has just gradu gradually stepped up more and more and he was the perfect choice to be ceo he's going to do great and his top priority is about taking our next generation of stores in regard. >> and we're in one of those next gen stores. part of that is a big push outside of the northeast, that's the dunkin' stronghold, that's home base for you guys how do you know that customers outside of this area will warm to the idea of dunkin' >> we think when you walk into this restaurant right here, it's

all about our brand of great coffee so everything speaks to that proposition. so as we push out west, we made a commitment that 1,000 new openings over the next three years, 90 percent of those outside the corps and we think what we have developed here is really going to resonate we're going to open about 50 of those this year, and the consumer and franchisees are responding well to this concept. >> it's been a great year so far for dunkin'. but anybody who's watching this space, i'm curious how values impact your bottom line. in terms of things like menu simplification >> simplification was a big lock for us in q1, that was all about creating room for growth and that would create the national values q2.

and we also had our highest beverage sales in q2 as well. for us again, it's about continuing to modernize and keep our brand relevant for years to come and the blue print for growth is all about that >> and nigel, we all know you're very proud of the cull chture t you have fostered here at dunkin' brands you were at papa john's for a while. any comments on your time there, what the culture was like and also any advice for the new ceo steve ritchie has he tries to get things back on track >> coach is very important and something i'm really interested in, and one thing i have worked really hard on is our culture. from the first week i was here, i laid out how i wanted to see it i did exactly the same at papa john's, it was a good culture,

it was a fun culture, it was supporting or franchisees, making it a very friendly environment. here at dunkin', i think our culture has evolved. we have tried to modernize it as we go on i'm sorry to see what's happened at papa john's but i'm still going to be around du dunkin'. and one thing, dave, he and i are actually very similar. he's going to continue the great culture. this he's already made a few tweets, he's made it a bit more youthful so culture is absolutely critical, particularly in an environment where you have to retain people. so dave's going to do a great job maintaining it >> and just finally to wrap it up, i asked you both about delivery, you asked about card free, taking more control over the mobile app what does that mean for catering and delivery and how will you push into that

space. >> acquiring the ip from them, they have been a long standing great partner for us, developing the mobile app and so for us going forward, we made a great play, i we think that's going to be a great overlap, not only ca all about unparalleled convenience, super convenience and the customers want to use us in many different ways so that card fee is going to be an uncredible u incredible unlock for us in the years to come. >> great stuff, important day for restaurant stocks, that's for sure when we come back, qualcomm's steve mollekopf is going to be here not very often you get a triple dwigt ral digit rally on the s&p, but

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good morning, everyone, i'm sue herrera. here's your cnbc news update this hour. cricket politician has declared victory in pakistan's general election, promptsing a new pakistan his jubilant supporters dancing in the street. it's not clear if he'll have to form a coalition government. the leaders of brazil, china, russia and south africa holding a family photo on the second day of their annual brics summit it's members are home to 3 billion people, or roughly 40% of the world's population. a suicide bomber in afghanistan killing four and injuring several more in an attack targeting the national security forces in kabul. the taliban claiming responsibility for that blast.

an explosive device was detonated outside a u.s. embassy in beijing the blast was caused by a middle aged man who hurt only himself you are up to date, that's the news update at this hour, david, i'll send it back to you. >> qualcomm announcing it has formally terminated it's $4 billion to an next qualcomm's semiconductor. instead, qualcomm has authorized a $30 billion stock buy back and it says it is focused on driving down costs qualcomm's ceo joins us at post nine and we appreciate your being here >> happy to be here. >> no shortage of drama, it just keeps going for qualcomm

we have talked many times what you saw as the benefits of the deal, gets you deeper into automotive, deeper into chip sets for iot no longer going to happen. why should qualcomm's shareholders feel okay given the strategic inperinper -- imperat than the rest of the company enter we're at $5 billion, of nonmobile revenue. our iot business is over a billion dollars today. our auto business has already got a backlog, that was by the beginning of this calendar year. so we already have a big growth

in those markets today, roughly two years after we signed that deal now we're on the doorstep of 5g, largely due to qualcomm's efforts during that entire activity so we' feel like we're in a good spot so we're going to time that change with a pretty good buy back i think the risk is pretty minimal due to our ability to deliver in this regard but the company is in a very strong place >> do you ever look back and say i wish i had done something different here there was no way you would have seen that you would get involved in a much larger dispute with china. is there something you can do to improve this outcome >> i don't think so. we got caught up in the larger pay grade of the two companies involved and we thought it was important to bring certainty to the process and move on and really focus on the things we said were going to drive forward now we know which path we're on.

>> china is in charge or your business it's not as though you're a stranger to that company, you do business there all the time. does this impact your ability to do business there? does it draw a line somehow in what seemingly is a good relationship in their key companies there, has been hurt, it would seem to me at least, by their unwillingness to approve this deal. >> in fact if you look at the rhetoric around the discussions or even if you participate in the discussions like we did, very friendly, very constructive i think there are just bigger issuings at play that being the case, i will also point to the case that our business in china remains quite strong, we reported yesterday a very strong quarter as you know, a lot of that on the strength of china. so we don't see this as any sort of risk to the overall business, it's just a very difficult environment to do large m and a, at least today >> you know. we do wonder about that,

speaking in terms of the larger perspective. can a technology deal get done these days regardless of the barriers to approval in china? >> in our case, that's probably not a huge question. we have capital allocation decision, where we think it's a good time to buy back our shares and we're going to be doing that and any time we would re-enter the m and a, these issues would be behind us, hopefully on the world stage. >> and mnuchin made an effort, zte gets put back into business. did you think this was going to come are you prized that at the end of the day they did not acquiesce in china >> i tell you, there was no lack of effort by anybody involved and we got great support really from both sides of the pacific, actually and we had great support from our friends in europe, the dutch as well as the germans

there are just bigger issues, there are a lot of issues that are larger than qualcomm that are trying to be worked on the global stage so it wasn't a lack of effort or a lack of support from anyone. >> you mentioned m and a, of course you had also been the subject for a long time of somebody else's desire and as i have said, although you have been deemed a national champion in a way by the u.s. government, it would seem. does that preclude your ability to both get bought and potentially buy anything else at this point >> i don't think so. i think that whole national champion moniker is really just a statement about how significant the industries we work on, multiple industries, and we think with 5g, it's even more the case, but it's not a thing that constrains the possibilities for the company. >> you have mentioned a $30 billion buy back,next up, the litigation where that bullet

would seem moves into a more important phase. something we have discussed a lot, if your viewers want a reference point on that, we can make those interviews available on cnbc.com. but where are we on the litigation >> we are a little bit further on the strategy. things look no different to us than the last time we talked about it we're just one quarter closer and we have talks and we would love to see it resolved, but if it doesn't get resolved, we're happy to go to the courts and get it revolved as well. >> you mentioned those talks, can we assume that a settlement is still a possibility >> there's always a possibility. big companies have worked through these issues, we are marching on on that strategy and we haven't seen anything different than what we expected and we're working hard on it. >> when do you expect that you would have an answer >> we talked be it the legal

timeline, there are significant milestones at the end of this year and the beginning of next year, and as i have always said, no milestones create the environment for that to happen so we feel we're very much on track to keep going. >> let me ask you a bit about -- you know what, i have talked to a number of your investors over time since you have been ceo, there have been so many challenges throne at you, most of them not of your own making but some people say, it doesn't matter the nxp deal didn't happen the apple litigation initial troubles with china which have all been resolved somebody in management has got f to be held accountable and potentially even has to go how do you view that when you hear that from investors, somebody's got to be held responsible for all of these things, even if it wasn't of your own making? >> there's been a lot of distractions in the company. the bringing in of 5g, when you

look at the most recent quarter, it's probably been our best execution year from product delivery and bringing in the 5g. >> give us an example? >> snap dragon 845 remember the quarter was 31 cents above the midpoint of d d guidance, in part resolving one of the license disputes that we are talking about. we are clicking things off the list much more quickly than theyerthey they're coming on the list and that's because we have really tried to stay focused on execution here and not the distractions. >> i remember of course the 635 objective for earnings of fiscal year 2019. that is of course pending getting it resolved with apple, but you still feel confident if

that is the case that you'll hit those numbers? >> we feel nothing has changed on that front. >> we don't know about apple and i guess we won't know. is it now about the future of 5g and how quickly that comes and where are we on the time line >> we're going to see the first products in to 2019, the trialse already in place we have a bigger launch in 2020. but you're going to start seeing it in this calendar year so there's a lot going on and we're involved in all of it. >> is this set up more involved with the chinese should i be viewing their unwillingness to approve this deal, another sign that they're going to be going their way in 5 5g and we're going to be going ours >> they tend to feature a global feature set and more alignment

when you look at today, who are the companies that are driving the 5g, they are qualcomm. it tends to create a point in time where things get resolved and we hope that's the case here as well. >> stepping back if you can for me for a moment here do you believe that the inability to get approval from china worsens the relations between our two countries when it comes to trade? >> i think it's obviously not helpful. but i don't know if the timeline to resolve the trade issues really depends on what qualcomm does or what nxp does. it's larger than any of us what we do is we work on innovation, tends to protect our business in times of larger issue and it is right now. >> finally some people will say, just give it another month, give it another two months, come on, they're going to come around why was today the day that you said it's got to stop?

>> look, we have been clear what our strategy was and what our view was and we were true to that and you reported on that quite well and we did exactly what we said we were going to do and now we're moving on, we're focusing on the issue of 5g and our own organic growth and we're going to return money to the shareholder less and continue on this path. >> and it's the same i would assume for that automotive market >> there's no dynamic change in the market, we have been working together and competing with nxp for years. we wish them luck, they're a great company, we're sorry we didn't get to work together more closely. >> why is there so much drama? >> one is the amount of technologies that we work on is important. our business model is also unique and sometimes the way in which you have to defend it takes longer and opens up people to different types of attacks.

but, look, we get through these things, we think we're in the final innings of all of that and we're moving forward. >> final innings well, we look forward to speaking in the future to maybe, i don't know if it's extra innings or another game. carl, over to you. big interview, part of a bigger debate. steven roach is going to join us here at post nine and talk about the growing trade war for china, and the fallout for companies d seing to do business over as anqualcomm we're back after a break

kind out what q levels you should be watching

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the company got caught up in the trade war with china, not getting approval for it's nxp. this is of course against the backdrop of continued trade tensions with china. and we are joined right now by stephen roach, ceo of morgan stanley asia the fact that they did not approve this deal, it's a reminder that tariffs aren't the only tool we're going to see used in this trade war with china. >> and it's a reminder that trade wars are not that easy to win, and china's got a lot of ammunition up its sleeve

although it doesn't import nearly as much as the u.s. as the u.s. imports from china. there's plenty of optionity to the chinese strategy >> the question is you have been making the point for a while that china has the leverage here, is that really true with chinese markets? >> the fact that we import $5 billion of increasing low cost goods is a windfall from increasingly con trastrained americans. >> we need those imports for economic growth. >> it's a co-dependent relationship, we each need each other, and there's the idea that there's an imbalance in needs that misses the two-way flow that goes on between our two countries. and by the way, they're the largest foreign owner of u.s. treasuries we're going to need foreign buyers to help us do the financing, that the trump administration needs to do

>> nobody thinks they're going to use that card, because that would just hurt them and all their investment >> don't be so sure, never say never. it's not that they're going to sale treasuries, but maybe they'll be a little less reluctant to buy them in the next auction, and maybe they'll buy a little bit less. >> all this talk with yunker in d.c. there's a couple of schools of thought. one of them is that no one likes to feel isolated and that will give them insent ticentive to co the table. and the white house says they're going to use tariffs they likely mean the opposite. you've got a view on that. >> i am programmed never to agree with goldman because of where i worked before. but i do agree with them on that moin point. i think the trump administration is clearly focussed on isolating

china, putting more pressure on china. the president's threatened, you know, who knows what the latest threat is, another $200 billion, another $500 billion he want to do them all it's not clear what the outcome is but it is certainly an area where there's likely to be between now and the midterms, more pressure than less pressure on china with risk to them and risk to us too >> are you a fan of the medicine to offset the side effects of all this namely the farm aid that the president -- i assume will talk about today in his trip to the middle east. >> i have learned never to assume with him. i think the idea of creating a retaliatory action aimed at our farmers and then utilizing, you know, federal expenditure to further enlarge the budget deficit is not a great strategy

given where we're headed on the deficit front. so you go with one arm and then you tie that arm behind your back and you use your foot to kick the ball down the field and that's no it the best way too make progress of this front.

for obama presented the evidence there was an accord signed cyber activity between and allegations of theft between china and the u.s. eased off, and haven't gone away. to the extent it still exists, that remains a problem i think it is much less serious than when you did what i'm certain was great investigative reporting. >> but you don't have a problem with the fact it was a seed round and their ability to grow? provided a platform to start to

do things on their own >> carl, you know, china has got history from compasses, gun powder, very advanced, sophisticated engineering, inventing paper. those were thousands of years ago, but this is an innovative culture. they know how to create new technologies, new things now they're doing it with artificial intelligence, bio pharma, and dna sequencing, and we don't get the fact that they're capable of doing indigenous innovation as they need to do at this space in their development. so are we going to tell countries they can't do indigenous innovation to grow and avoid things like economists

call the middle income trap? china is trying to do what generations of economists told them to do if they break the law, they should be held accountable, but we need to look into that rather than assume that's the case. >> it is like accepting them in the imf and they stop manipulating currency as much. >> they still manipulate the currency, too. >> treasury will look into that. >> never a lack of issues to go after china. this administration has a long list. >> never enough time with you. we'll have you back soon. >> never enough time with you either. over to jon fortt with what's coming up on "squawk alley." >> sarah, facebook is tanking in this morning's trade, down almost 20% does it recover from here? what are the implications. and how bad was the record when it comes to lower margins, when it comes to slower gwtroh.

we dive into all of it coming up on "squawk alley."

thought this morning was bus eye? this afternoon on closing bell

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8:00 a.m. at facebook headquarters 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ good thursday morning. welcome to "squawk alley." i am carl quintanilla, with jon fortt. morgan brennan has the day off facebook is the top story. shares are down on pace for the worst day ever, worst one day market cap loss for a single company, shedding more than $100 million in