>> $15 billion >> when you show those numbers there's some really scary dates in history the financial crisis >> all right, thank you. thank you for watching "power lunch. >> "closing bell" starts right now. afternoon and welcome to "the closing bell. so much on the uh-agenda today a market initially barred by positive trade reaction and then of course falling off the back of those facebook numbers. >> down 1% with the dow remaining positive, 0.5% doesn't have any of those faang names in there in case anyone was wondering why

my walk is always better than his. >> because of practice the dow is now up 127 points or 0.5% but is nasdaq the tech sector certainly weighing the cost of facebook >> facebook crashing and really has not recovered throughout the day. if facebook closes on these levels it will be the largest one day market cap loss for the stock in u.s. history. so is it a buying opportunity with facebook shares here? let's bring in rich greenfield from btig who says definitely it is >> yes, absolutely great company, sara, invest. i think the mark of great companies is that they know when to invest and really look at the long-term versus the short-term. most of the companies i cover, had legacy media companies are really focused on near term earnings maximization and never willing to sacrifice the

short-term for the long tfrm facebook is telling people we need to get people from the feed into stories you move from the instagram feed, to instagram stories you spend more time. there's less advertising right now on stories but more advertising per person they're purposingly driving you from heavier ad based platforms to less ad platforms >> even when the numbers hit and we fell 8% you were already thinking this is great buying opportunity. >> look, what is happening here is people are trying to figure out what's actually going on you know, facebook -- the reason why the stock sold off is that the growth -- the slow down in

q3 pretty much expected. q3 may even come in a bit better than what they were forecasting. i think it's q4 and projecting that forward where people are nervous. and it's really this change over people are trying to understand what's driving it. it's not like facebook changes they're making to give you greater privacy controls as cheryl said last night, the vast majority of people are opting into facebook ads and giving them a targeted experience this is really about facebook proactively trying to push you to stories away from the news feed and it's that change that's obviously causing the slow down in revenue growth in the near term i understand you don't agree and that's fine. >> it's our job to play devil's advocate i think with a stock down 20% you've got a lot of explaining to do. >> we love admitting faults when

we screw up. the key here, though, the north star that viewers watching your show right now should be focusing on is this is not an roi problem. this is not a demand user growth is in intact and -- >> you've got to explain that. >> user growth in europe is not intact >> user growth is already regrowing. they mentioned that last night the user growth has already picked up in europe. there's a one time blip that's already rebounded. and you're going to see growth in every market except the u.s. and canada remember the u.s. and canada has been slowing, basically been flat the last year advertisers want to spend on facebook this is not a demand problem this is supply problem they are cutting back the supply of advertising as they shift people to stories like they've done on instagram. as that happens on facebook, this is really a supply problem not a demand problem >> why do you say growth is

happening everywhere if it's not going to grow in the u.s., canada and now china >> no one has china in their numbers for facebook that's not coming in and out of those numbers. >> how do you grow >> the u.s. has been flat for a year, so that's not a change the stock has gone up dramatically over the last 12 months even without growth in the u.s. europe is going to rebound. you're going to see nice growth in europe pick up into q3 and q4 80% of facebook users are outleticide the u.s. how do you get to growth? if thir growing well over double digits even with a flat u.s. you're going to see many double digit growth to come >> anthony has an outperform rating on the stock as well but did lower his price target for facebook from $200

>> what rich was saying is correct in a sense you're betting on stories i think the reason the stock is persistently down all day is because there is inherent uncertainty in the monetization of stories it is true stories are engage. it increases the amount of time spent. but we just don't know yet i think the company sees or doesn't see the certainty in the monetization of stories. i would say those have been good buying opportunities for stock when you think about when the company was pivoting from text based ads to mobile or to photo to video based posts so these pivots have been tumultuous but they have been historically good times. you do have to take some good faith in management and a bit of

a bet here that's why we're sticking with the outperform the other thing that's happening here is they're spending so much on security and safety of the platform investors are saying, you know, know what, that increase are not really getting a revenue return on a lot of that but i would say that does make the platform more durable. it does sort of inoculate facebook from russian interference, from fake news and foreign actors for that competitive note they're spending that other people can't afford to spend we should over time pay a high multiple for that durability of the platform so, yes, i think expectations have been reset. yes i think now is a more realistic opportunity to potentially hopefully achieve or beat expectations. but i think that part of what's happening in the market is reaction to that uncertainty >> what about user growth, anthony? rich just was here predicting that user growth is already

accelerating do you agree with that how do we know that? >> so, look, rich was going through i think user growth for facebook core. what i would say the company gave this new number last night which was unduplicated users of the facebook family of apps which is 2.5 billion users we think it's growing. the numbers you're getting in the press release is facebook only so that flat number in north america doesn't include growth in users from instagram, from facebook messenger or whatsapp it's growing faster than 11% and certainly i think the case not only are facebook added core pressure still growing but probably time spent on the facebook family of apps is growing much more quickly than core facebook. >> all right, so not as bullish

as rich, but still a bull. anthony, thank you facebook ad sales growth also took a hit in the second quarter. will the social media giant be able to make a come back on that front? we're going to dive into that angle. strategist and ceo with us and matt galloway joins us as well >> facebook is just getting started in their ability to monetize users they don't even know what a tv network is right now people are tuning into youtube right now. facebook is n position with 2 trillion posts from users. so many individual spaces facebook can go into to actually grow i think a little too much is being made on the growth of their actual user base right now. >> what's your take in terms of

where things are heading in ad sales overall for them and the balance they may have in the future between ads and subscriptions, particularly when you consider whatsapp. >> i think we're all in agreement here the platform has this ins tunova business i was at the final in moskow arguably some of the malsestersf the universe or influential people of the world. and i looked around and i said what brand or product or service is most present here it wasn't coca-cola, it was instagram. literally every person under theagy of 40 had their instagram app. when you think about their targeting ability, the decline of thea advertising, and it's a

super business nova model and i don't see it slowing down. by the way, i'm not a fan of facebook i think this is punishment for half measures and weak leadership and the market had some pent-up fury that they unleashed last night on facebook >> scott, do you put yourself in the world cup final of the masters of the universe or a real soccer fan? >> soccer fan. a 10-year-old who plays goalie in del ray ac, i was there on one of those lifetime trips. >> back to the punishment you mentioned from investors, was it also a punishment from consumer snz particularly wh and cou and could you extrapolate that? because of the likes of gdp up >> so the company had the greatest loss in market capitalization in history because it was the fourth most valuable company and can lose that kind of value in sales and

still be up on the air but the user growth is slowing in canada and the u.s. on the core platform because everybody's on it. and you're going to start to see growth or they're going to report growth off of whatsapp, instagram and instagram story. globally they added i think 23 million users. oh, no, they only added the population of texas in the last three weeks. the user growth is still staggering it may not have met expectations, but when i first saw the print here, i first saw the press release, i wasn't sure the market was going to take the stock up they beat on the bottom line they missed slightly on the top line and revenue growth. >> it was the conference call, that was the most disappointing. matt, final word >> i think the biggest misconception about facebook is it's just a destination. when in reality the future of facebook is almost a data layer. they have so much data that in ten years from now when ford

advertises it's going to be advertise towards people who have a lease expiring on their suv, and that is piece of the pie they've yet to get i think the street doesn't understand the business model of facebook this is not yahoo, this is not a company that's aggregating eyeballs to send advertising too. they have more data -- >> more than google? >> because consumers are putting information into facebook every single day facebook is instagram, whats apapp, messenger just like how the stock price dropped to 18 when they shifted from display to mobile, and you had people here on tv say oh, it's going down and down -- >> it's 91% mobile >> there you go. i think this is that

re-incarnated that again >> nice to see you >> i didn't even hear what you said >> sorry, matt we're not going to repeat it let's get to our closing bell exchange today cnbc market analyst steve grasso and rick santelli joins us as always. steve, are you impressed with how the rest of the market held up despite that facebook flop? >> so if we would have all sat here yesterday and said that facebook was going to have that flop and what would the market do the following day we would have thought it was going to crater we would have thought the other sectors would not be able to compensate we would have thought a ton of things were going to happen. none of that happened. i think the fact today they're weeding out facebook even from the value side of faang is very healthy. >> chris, when we consider the

big risks that remain out there, has trade gone away or been much diminished >> it's gone away for a few hours but certainly not gaone away at all. i think the one thing that will take it away in general is if we get a bad growth precipitate we're going to see this go back and forth in your opinion over the next six weeks through the mid-terms and possibly into next year this latest situation could actually create a little bit more consternation with the u.s. and china relationship if there is some sort of a dare we call it, coalition to get together against china. >> steve, when we look at the sector performance today, the trade tensions easing was a significant offset to the facebook decline >> definitely. when you watch boeing or a cat or a john deere start to actually perform when these have been under a tremendous barrage

from the marketplace or from the indices i think that's impressive also the overall market looking towards gdp, as we said before if that's a good precipitate that takes us over the goal line once again and it really does confuse a lot of the issues actually in a good way because you don't know where chair powell is going to be. the marketplace wants to be dovish, we want to be dovish on tariffs. the president wants to be dovish he may not listen to him, but he hears him. >> we've neglected to talk about some key pieces of economic data that we got ahead of that gdp report >> no, there were definitely some important data points i particularly like the proxy for business spending, nondefense aircraft and the positive revisional along with shipments. those are positive data points, by the way, for durables so they could change radically the inventory numbers retail and wholesale all combined actually

took away a bit from the final estimate from second quarter for land and gdp now but gdp tomorrow is really critical sara, i always call the way i see it this isn't the first time we're going to get something in the 4s or maybe in the 5s because anyone that harkens back, q 6 was up the fed started taking away of some stimulus, but they didn't the point is the numbers lately have been a little less variant. it's been a steady system and a lot of prif areeral economic indicators than they were in 2014 but i can't dismiss how important tomorrow's gdp numbers is >> rick, what number are you going for? >> 4.7%. >> steve >> 4.6%.

>> favorite number, 4.4% >> there we go, our favorite number >> now batting lefty >> pick it on the roulette table. if you're right, it's a lucky number are we going to take a pick as well >> it's random i'll do 4% on the dot. >> rick was what at the top? still ahead on "the closing bell" he joans us live to talk about this morning's earnings plus how america's trade policies are impacting the paper business and speaking of trade treasury secretary steven mnuchin speaking out this morning on squawk box about negotiations with the eu >> we've had a long negotiating session yesterday, we've concluded the outline of an agreement and now we'll turn this into a real agreement >> things seemingly are t no

going as smooth with china are you taking the tissue test? yep, and my teeth are yellow. time for whitestrips. crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life. but prevagen helps your brain with an ingredient originally discovered... in jellyfish.

in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

i want all of it. great to have epix? open this. you'd laugh. you'd cry. don't you think i had dreams and hopes. what about my life? what about me? maybe even laugh while crying. so you know, even if you're a psychopath, it touches your heart. sounds pretty great, right?" we're on to something. come on. and the best part is it's easy to upgrade. just say, "add epix." epix has a whole lot more. whoa!

treasury secretary steven mnuchin joining cnbc's squawk box this morning one day after president trump touted the big eu trades concession following his meeting with john claude yunker >> the treasury secretary there saying this was more like the out lines of a deal and now the negotiating is going to begin after the announcement between the president of the united states and the president of the european commission. they're going to put some meat on the bones in terms of what it details are of that agreement. he says he was going to make it into a real agreement in the coming days and weeks. he also defended the administration's actions regarding american farmers as retaliation comes in from foreign countries from the tariff heez put on earlier this year here's what mnuchin had to say this morning >> to it the extent others attack our farmers specifically in an unfair way, an unfair retaliation we will defend our

farmers. and i think you saw yesterday a major part of the eu agreement was agriculture. we'll immediately focus on soybeans, but we want to focus on other issue we want to make sure our farmers have fair opportunity to compete throughout the world >> and speaking of farmers president trump what out in iowa today talking to those who were largely composed of farmers. he had a make america great hat with him today i heardia guys just before the break doing that debate of what that gdp number is going to look like the president said there's very bullish predictions for a number tomorrow he said it could begin with a 5. that is 5% or higher gdp number, the president said but said he'd also be happy with anything with a 4 as well. >> you're generous to call that a debate at the end of the last segment.

it was rather guesses. >> informed and educated guesses. international paper today down >> very good afternoon to you, mark thanks for joining us. >> good afternoon, wilfred happy to be here >> looking through a number of the earnings notes, the analyst notes, pretty comfort wbl table the numbers. share price down what's that to, the broader number and the guidance you gave >> i don't think so. we did turn in a positive second quarter, the best one in a decade there was some industry specific news this morning around future news and packaging i think that may have given some investors pause about what the future looks like in a couple of years. but we have a tremendous outlook

for especially fiber based packaging. and i don't get overly excited about a single day reaction. >> there's discussion about what the trade tensions with china might look like and how they might harm your business fiber, is that something that's been targeted by china potentially as a retaliatory action against the united states how could that effect you in something you sell to china? >> that's a great question so far we haven't had any direct impacts in any retaliatory way but i think the biggest oegs for a company like us are the secondary impacts. for example, we package a lot of food if our customers are hurt or caught up in trade war or tariffs of course they'd need less packaging and we'd ends up getting hit. the thing about fiber is they need fiber to make their products depending on what type of

product it is, they will need to secure it from somewhere, and we are the u.s., a great source of fiber for china. but we keep our eyes on a very, very closely >> mark, maybe we should have asked you for your gdp prediction because so many of your businesses are so cyclical industrial packaging, printing papers yet the stock prese has underperformed for the entire year are you as optimistic as some are on the second quarter gdp number >> i do think it's sustainable i think we're feel we're an economy based just on our packaging data in a good 4 plus economy. i think that's what the number is going to be 4.25 or something in that neighborhood

we're in just about every segment you can imagine in the type of packaging we make. so we are monitoring very closely. so we're enthusiastic about the current situation and the rest of the year. >> mark sutton, thanks for joining us on the results and overall environment, the ceo of nrlt national paper. up next shares of underarmor getting a boost today. comments to me about the quarter and the company's long-term plans after the break. plus the co-president and cfo of world wrestling entertainment, wwe, joins us here at post nine in a cnbc exclusive to talk about the stock's matsive out performance in the past ar ayend what's working in the wres llg business stick around l or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals.

flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. hello. let's go for a ride on a peloton. let's go grab a couple thousand friends and chase each other up a hill. let's go make a personal best, then beat it with your personal better than best. let's go bring the world's best instructors right to you. better

yet, let's go bring the entire new york studio - live. let's go anytime, anywhere, with anyone who's willing. and let's go do it all right here. ready to go? peloton.

welcome back to "the closing bell." the dow is up about 0.5% nasdaq way down. facebook is down stock tuesday watch would be under armour uaa they're in the middle of a transformation year it's been doing for the last two years they did have some nice sales growth, though, overall globally in the u.s. slight u.s., that's

been of one of the markets they're trying to right size they saw growth across apparel and footwear i did have a chance to talk to the ceo. he said this a multiyear transformation there's nobody spiking the ball today. our eyes are open and we're stone-cold sober the key to that is a great product. patrick and i are working great together, patrick is bringing operational experience and understanding brands emphasize the growth and three key pillars, international in footwear, in womens. said when it comes to growing international they're very optimistic about markets like india. but up like their strategy in the u.s. where it was just, bam, 20% revenue growth in the quart, they're going to take it slow and steady and prove to market this is mature company in the long haul. they're looking forward to investor day in december where they're really going to lay out

the long-term plan for growth once they get through these restructuring is cost saving programs >> that's expanding and something they're trying to do and they're investing behind that and that's where some of the margin pressures are coming from also there were concerns about inventories going into this, and they reported 11%, which is actually much lower. they told analysts they would get below 20%, so that's a sign of progress. they're up 50% for the year, but they got absolutely slammed in the last year. >> time now for a cnbc news update hey, sue >> hello, wilf hi, sara here's what's happening at this hour everyone the house approving a $716 billion defense bill the bill was negotiated by house

and senate lawmakers after competing versions were approved in each chamber. the bill was approved 59-54. it now goes onto the senate. a judge ruled the statement given to investigators should now be publicly released media outlets sought that release while cruz's lawyers wanted it all suppressed the california supreme court says starbucks and other employers in that state must pay workers for minutes they routinely spend off the clock on tasks such as locking up or setting the store alarm. the unanimous ruling is a big victory for hourly workers and take a look at this, the english golfer mark james teeing off in the seener british open when his ball hit a big white bird well, the ball went out of bounds he had to tee off again. james took a triple bogey on the par for 17th hole, and we hope the bird is okay we have no word about the bird,

but we'll keep you posted. >> sue, thank you very much. ouch sorry, shouldn't laugh >> poor bird >> i know. what can i tell you? >> sue, thank you very much. >> see you next hour we have got 26 minutes left of trade we're about 0.5% dow, a full% on the nasdaq we'll ask the company's copresident about what's driving their success. plus guess what? here we go again we are waiting on an an slot of earnings after the bell. big question for invests, can az turn around faang find out ahead on "the closing bell." [phone ringing]

need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done.

welcome back to "the closing bell." we have got just over 20 minutes left of trade. the sector performance utilities top of the list follow bide energy, technology unsurprisingly at the bottom given facebook's decline down 1.6% and the nasdaq of the indices down a full percent.

>> emmanuel macron making a statement to traders in spain. macron says he does not favor a vast trade agreement with the united states because the context isn't right for it and is against discussing agriculture in those trade talks. macron adding the u.s. must make clear gestures over what he calls aluminum and steel taxes one day after president trump and the mission head agreed to hold trade and tariff talks. this was the risk that yunker while he spoke for the european commission and eu, there's actually 28 members elected by the eu >> exactly why i said that yesterday, surprise to hear the soybean factor included because the common agriculture policy for the eu has been a massive

partner. i would say these comments are surprising we also didn't come away yesterday saying oh, what they promised is that -- i don't think these comments were that surprising but it definitely is correct to have thought about all of this yesterday in the sense of more positive rhetoric as opposed to a big trade deal coming shares of facebook flopping over concerns of slowing growth. the stock is down 19% right now. >> but could you actually own the stock and not even know about it just how much exposure investors have to facebook without actually directly owning it. >> that's right. because oftentimes institutional investors. that could be an investment

advisor, a pension fund or etf, many of them own these instruments estrn if you do not know they do so. obviously savvy investors are always kind of keenly aware of the components facebook's nonvoting stock, that's the stuff people can trade more liquidly over a nondaily basis is 74% owned by institutional investors. vanguard, for instance, is a top holder it holds 70% of the stock. fidelity investments they do some income products but they're also stock there black rock, very much the etf play here, 4.5% there. that's the institutional side of things if you take a look at some of these other etfs that might own

them as well we also talk about the qqq. that particular index is made up of facebook shares and that stock is taking a big hitbuse of it. you take a look at another one, that particular xlk has around 8% waiting in facebook shares and one, the vanguard communications services etf, that particular etf you can see here has around 1% waiting as well as we talk about some of the major change fund, many of them hold facebook, it might pay to go take a look and see whether those holdings include some of those big names of facebook especially in light of amazon earnings after today's close >> thank you very much for that. only goes to show how resilient the border markets have been shares, though, of wwe are up more than 280% in the last 12 months

we'll talk to the company's copresident what's driving that coming up next and after the bell we've got a big earnings day coming for you. all reporting at the top of the hour we'll bring you the results, instant analysis, reaction and more coming up on "the closing bell" with amazon shares down 3% with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia.

hello. let's go for a ride on a peloton. let's go grab a couple thousand friends and chase each other up a hill. let's go make a personal best, then beat it with your personal better than best. let's go bring the world's best instructors right to you. better yet, let's go bring the entire new york studio - live. let's go anytime, anywhere, with anyone who's willing. and let's go do it all right here. ready to go? peloton.

share of wwe up again today, almost 3% after reporting a miss on earnings. but a major revenue beat before the bell the stock has been on an absolute tear lately up 280% in the last year joining me frau for a cnbc exclusive interview is the copresident of wwe that's quite a moon shot stock performance you got. st. all on the deals you signed with fox and our parent company? >> we've been on the tears for a while, growing the global business we saw it in the results in q2, but certainly the deals we signed with fox and usa that we announced about a month ago are transformational for us. >> so those are transformational in what's driven the stock price

in the last few months today's move, though, what is that down to or did you surprise people with the more digital side of things >> our profit target was up 80%, 43 million network subscribers were up 40%. the time on digital platforms was up 70% in essence on every number that we've got, we just grow significant performance. and we raise our guidance for a year >> that social media following is a pretty exceptional number youtube channel over all 1 billion social media followers i think in total when you compare yourself to other sports, your total balance of revenues coming from those new media platforms, are you well ahead of the rest what are you doing right that perhaps nfl and the like september? >> the revenue said, they're

private companies, right, so you don't see that what we do know is the scale, the billion you mentioned, the fact we're five times the nba on youtube in terms of consumption. they're number two sports. we're number one sports. we're number two overall in the world. we've been at it for ten years some people early on said i'm not sure about the social digital. it may cannibalize it. those are good thoughts. we had those thoughts, too but we decided to err ongoing all in, and at the end of the day we set the strategy, put the roursz in place and worked like crazy. >> but you also made the shift from paper view to subscription business >> the other element you're right, we took a business we thought had been -- well, we knew it had been great, had probably become a bit an crunistic, we took that and now bundled that together and now

it's the second largest business, our director to consumer network. >> so i guess the fans, is it volatile, are your view on figures based when you have a real star at the time and how much does that change things like ronda rousey coming through, or when you don't have someone like john seena thatcen attracting attention >> your point's a good one i'd actually say depending on where the stars are from, is your champion from india, china, latin america, you'll see different amounts of consumption around the world what we're lucky is we have a constellation of stars whether it's john or rhonda, we'll always be able to drive

engagement >> can you give us an update on the tv deals and what the advertising has been looking like. >> sure, as we announced the deals in total are about 3.6 times what they were before. if we kept all of our international deals flat we'd go from -- that's what people have said there's significant operating cash flow that'll come from that and obviously that's now reflected in the stock price. >> up almost another 3% today. george barrios copresident of wwe. still got a rally for the dow. not as much for s&p and really not much for the nasdaq. coming up on mand don't miss my exclusive interview with

jamie dimon. esentrp,ntesras pridt um iert te and much more. "the closing bell" back after this short break ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

♪ experience the versatility of utility at the lexus golden opportunity sales event. get up to $2500 customer cash on select 2018 nx 300 models. experience amazing at your lexus dealer. you might or joints.hing for your heart... but do you take something for 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.

welcome back to "the closing bell." as the trade war between the u.s. and china intensifies

congress plans to strengthen the betting process for foreign investment in the u.s. >> black stone's jonathan gray says he hopes lawmakers can strike the right balance here between a focus on national security and the potential for job creation let's listen >> what our hope is that obviously they're focused on national security, which is really important and they've got to get right but we also want to make sure that capital that creates jobs gets into this country so if a chinese company wanted to build a hotel here in new york, hire a bunch of people on the construction side, hire people to work in the hotel, that's a positive. we want that to happen so we're hopeful that policy makers can thread that needle. >> you can now watch the full interview with gray on our website, delivering alpha,.com up next with the closing count down six and a half minutes left of trade. and after the bell a parade

of earnings coming your way. keeping it here. you're watching cnbc, first in business worldwide nge of scener? the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. when mit rocked our world.ailed we called usaa. and they greeted me as they always do. sergeant baker, how are you? they took care of everything a to z. having insurance is something everyone needs, but having usaa- now that's a privilege.

your neighbors. you like them. they always remember everyone's names. your kids love swimming in their pool. you like them. if you forget your trunks, they'll loan you some. they have a section in their stock portfolio just for pool stuff. everyone likes them. you like them. but you'd like them better if you made more money than they do. don't get mad at your well-liked neighbors. get e*trade. welcome back to "the closing bell." about three and a half minutes left of trade. let's start with facebook. looking at a chart over the last two days which tells the story initially it dropped about 8%

when the revenue slightly disappointed the revenue growth in particular. and then the earnings call proliferated the rate decline. as we approached the close a day after we're down about 19%, so that stock extraordinary move. and that of course has weighed on the sector purchase today if we look at the sectors tech, of course that the bottom down about 1.6% the lacquered for the day consumer discretion also down but nowhere near as much, about 0.5% energies up and industrials. industrials wraev got that positive trade enrhetoric on trade particularly with the eu again, around this time yesterday. so industrials have rallied, the likes of boeing and cap, that's up s&p down overall slightly the nasdaq because of the tech names

down a full percent. some odd moves today the aussie dollar was down >> we have seen local currency mentioned many times dozens of companies have been talking about that that's one of the ongoing issues that we've seen. another one i think not as widely discussed is the threats to the social media names from more of an increased regulatory environment. we have now protection rules from europe that have come into place. we had not only facebook but spotify come out and also say they're being impacted by new data protection rules. twitter is going to come out, i anticipate they may say something about them and we've many social media companies. this may be somewhat neglected

but additional issue for them overall. i think today the big story is the markets held up remarkably well given the weakness in value particularly in facebook s&p 5001.5% historic climbing. dow still lagging a bit. >> let's have a quick look at some of the earnings we've got coming out any minute now. amazon, of course, the pig one that is down 3% as we approach the close given facebook's decline. we've also got starbucks coming and intel. both of them about 0.5% or so. amazon moving down with fa facebook, but google is up why is samazon down? >> because they're anticipating some disappointment. i think they're wrong. i don't see any retail

deterioration from amazon. i'd be surprised if anything like a facebook happened here with amazon. >> the s&p slightly lower. the nasdaq down a full percent given that decline rengi re re renging the bell and all eyes on earnings particularly on amazon. you don't want to miss that. back to you, sara. welcome to "the closing bell." i'm sara eisen in for kelly evans. wilfred frost rejoining me in just a moment. let's take a look how we are finishing up the day on wall street dow manages to close higher by 0.5% down 1% off the back of that dismal performance from facebook in terms of the stock price

russell 2000 ending up 0.6%. technology and consumer discretionary biggest losers thanks in part to facebook and spill over effects on stocks like amazon and netflix. get ready for another slew of earnings after the bell today. here we go kate rogers will bring us the results from chipotle and starbucks. berthy calmes is covering expedia. you'll be happy wilfred, i'm not in a box today and therefore neither are you. joining the panel today mike san tolly as always, stephanie director of research, a tiaa company. bigger winner on the dow today was travelers while mcdonald's was the biggest loser. over on s&p 500 advance microwas the biggest winner, and nielsen was the biggest loser.

the spill over effect from facebook not just on that stock, on the faang stocks, on technology, on hedge funds, on etfs was enormous. >> it was enormous and yet on a market wide basis less than what you would have expected. you did have a bit of a setback in amazon. but i think it was almost a test of this premise that a lot of people have that the market is dangerously dependent on a very small handful of glamour tech stocks and we've had netflix disappointed, facebook disappointed there's something to be said for that also the action of facebook itself is fascinating. it went down to just a 20% loss on the day and sat there, and it was bid and bid all day right there, closed just above that level. it was an orderly repricing. >> so it closes at 17626,

negative $120 billion change in market cap from yesterday's close. you own this stock >> i do. and i'm going to wait a couple of days to let things settle and then i will be buying. >> but wait until the end of the month because you think there's going to be more weakness. >> yes, and then we start a whole new month and that's kind of a clearing of the deck and it should start better next week. >> what do you think is the fundamental point where the market has sold offon but you're not too concerned about >> i'm not happy about it, for sure >> hey, guys, amazon is out. let's go to courtney >> giganic beat for earnings for sure, $5.07. wall street was expecting $2.50 estimate and that estimate was up more than five folds. the revenues, however, a little light coming in at $52.89 billion, and also we're

looking for $53.4 billion. it looks like the north american revenues were slightly below expectations at $32.7 billion, international revenue wheres so slightly lower than expected at 14.6 but ews revenue -- it looks like we also have a third quarter revenue guidance which is little light as well. you can see those shares of amazon right now up. we'll come back with all the other details. >> okay, thank you very much for that mike, on the surface the eps sounds massive this is still a company that focuses on the revenue growth because relative to the revenue eps is very small. >> exactly and often in the past they had a big earnings beat but it's almost accidental. it's not by intention that they made more fault through there

bottom line. i think there's going to be a bit of relief. >> we should say, of course, it closed down 3% today and the aws revenue $6.9 billion, that is still up the best part of 50% year on year and that is one of the key drivers of the stock >> and i'm looking at operating income coming in 3 billion i see dlr a and expectations were $2 billion. but in line with their guidance. but you also want to see margins. this company has such flexibility on the margin side and i think as aws you see those margins increase, people will reward that stock. i have to tell you something, if this company missed today faang will be over for a long time the fact they actually delivered a good number, we'll hear what

they have to say on the conference call. >> people are joking today that faang should be released now >> yeah, you can't have it not produce earnings or not produce the results we were expecting. i'm not going to say they're not producing earnings because they're all producing very good numbers. >> kevin, good afternoon to you. thank you very much for joining us what was your take on these amazon numbers i guess a nice little beat compared to facebook yesterday >> i've never worried about amazon's revenue i mean the machine work wheres, the model works. what i'm waiting for from one of those quarters and i haven't seen it yet, and i'm glad i didn't see it this quarter for a lot of reasons is margins and cloud services it's heating up to who provides cloud services to small and

midcap companies amazon is not only our choice anymore, and i haven't seen that compression. and so even though the competition's heating up it's not evident everywhere, microsoft and google yet but that's the one i worry about more than revenue growth because that's such a high profit business and at some point it's going to raise its ugly head and all of a sudden we're going to be questioning this is commodity, and how compressed can the ma e margins get on cloud services? not yet, but it's coming to a theater near you and was hoping it wouldn't be this quarter. intel reporting e ps here of a $10.04 turning to the guide for q3 intel $1.15 plus or minus 5 cents. it was at $1.08.

analysts have been looking for $17.6 billion. they raised their full year guidance 415 on the bottom line, plus or minus 5%, and $69.5 billion. turning to the business unit quickly ccg $7.8 billion >> mike, eps is a slight beat, revenues a slight beat we're sliding, and the guidance actually increase that for the year >> much like that was the line that didn't measure up >> we were just talking about that >> that's the growth driver of the company and you want to see it growing it's a little disappointing. the reason we were expecting good numbers is because enterprise spending has been so strong so that's disappointing for sure >> overall for a traditional media company they've grown that

part of the business much more than some of the others. it's a sort of shame for this quarter, but they've done a decent job there. >> and i think that's why the stock has done fairly well now we have a company that we don't know who the ceo, whatever that will be, what the new strategy will be people aren't going to pay for the pc business stabilizing. they will pay that multiple at this company, but not if it's not living up to expectations. >> kevin, what's your take on this one >> the whole key to this is not just a quarter to quarter. it's can the company move away from just servicing pcs, and becoming part of cloud services and beyond and wireless and everything else. intel's legacy and the management for decades focusing on too finely verticals and not catching the wave as things moved off, you know, fiscal platforms like pcs there seems to still be a little

bit of that sitting there. it's kind of -- i think it's still worth waiting for them to figure this out because they've got such a huge footprint, but they're behind the eight ball on that >> can we just go back to amazon for a second the fact that headline is a sort of take your breath away in terms of expectations, $5.07, 248. where are the analyst on some of these companies? >> amazon is a throw dart. in terms of what falls to the bottom -- look, amazon is growing so fast that you're one third of the way through it second quarter and they have like a $3.5 billion spread in their revenue guidance for the current quarter. they just don't know where it's coming through and what the mix is going to be >> so my question is, it's appealing to trade toorz see th that kind of profit beat so do you trade them on had

revenue miss or on the massive profit beat? >> you trade them on what's the total addressable market they have to grow, and that they have revenues, a lot of opportunity on a lot of different end markets. and if they're actually more profitable that's even better. aws, between microsoft and amazon those two are such the clear leaders in cloud that google is such a distant third that i don't expect you're going to see price competition you have been seeing a lilt bit on the margin, but these two companies are such powerhouses >> we're still talking about 39% revenue growth, 40% for facebook >> look, these companies also don't buy well they just give you some pieces that's why analysts are over the board. >> it's now only up 2% it was down 3 earlier. >> amazon's high, it's really

pretty close to its high and up tremendously this year >> we have another set of earnings it's on starbucks. kate rogers has the numbers for us >> eps coming in at 62 cents adjusted that is a one penny beat revenues coming in at $6.31 billion. it street had been looking for $6.25 billion. i'll take you through the global comps. up 1%, and also they lowered their guidance on that last month. americas 1% increase, also in line europe, middle east and africa was flat china, asia pacific, that was a 1% decrease. the street was looking for that to increase by 0.5%. and china down specifically 2% starbucks rewards members up 14% year over year their guidance for the rest of the year in line guide also 511 net new stores in q3

as you can see the stock is just fractionally higher now. >> kate, thanks. and we should mention the starbucks ceo kevin johnson will be on squawk on the street tomorrow at 9:00 a.m., an exclusive interview you do not want to miss the stock has been punished with this one >> and i don't think it's going to get out here based on those numbers. it's a very wait and see type of thing. they've been kind of steady in saying that business seems to be intact if you're waiting supersome kind of north american turn around and clear sign things have picked up it's not quite here. >> i you have a big management change that cfo leaving i think is a big loss you have to see how that is all going to play out as well. by the way, they preannounced these numbers. what's going to be the surprise is how are they going to get out of this mess, or are they going to lower the bar

a lot of people do think when they have their analyst meeting they're going to actually lower the long-term growth in 3.5% in comps. >> kevin, not just the cfo departure the bigger decision stocks, does that for you raise a red flag he thinks, he's of course left the company in the past and time td very well with the share price as well. >> no, that doesn't bother me. i would like to hear the company define a different strategy for separating the low growth saturated u.s. business from asia this is a story that maybe this new ceo can say, look, we're going to focus on growth in a market that has such potential, and we're going to give you an opportunity as a shareholder to buy it either way. if you want the stability of the market where it's very clear

where the metrics are, that's one stock. but split the company up i like growth. i obviously want to participate in a clear play growth story on making china work with the starbucks brand. i can't do this with this stock. i'm frustrated and i think you'll hear that from u.s. trade holders as well. >> dunkin' also reported, market seemed to like the under lying sales, mcdonald's reported it was the worst performer in the dow today. what's the industry outlook here >> i don't -- i think it's a bit of a matter of the way the field position with some of the different stocks mcdonald's i think is overshot to the pup side. i don't think it's about consumer capacity to spend or a willingness to spend on these concepts i think it's a lot of -- everybody can't have comp sales growth, right? it's all coming outs of the same place. >> it's competition, too

these boutiqueo roasters that are competing against and nipping at these other companies, at starbucks. they don't have a really great strategy at this point to deal with that. that's why i say he should lower the comp guidance of 3.5% to maybe more realistic dij its, and you can make people feel good under promise, over deliver. >> speaking of restaurants chipotle just announcing earnings >> looking like another strong quarter. here this time for chipotle eps coming in at $2.87 adjusted. comps up 3% in the quarter estimates were call for 2.7% they also said they opened up 69 new restaurants and closed or relocated ten as they had guide said on a special investor call.

again this is a second quart from the new ceo, and their full year guidance was slightly better and the stock is up over 5% right now. >>, the same store sales growth estimated at 2.7 coming in at 3.3 n real beat down. >> it's not bad. obviously customers rediscovering chipotle the stock has kind of run ahead of this improvement. it is right up against this high we hit may of last year. you had a couple of false starts remember this was a $700 stock at one point never got cheap. if it's bottomed for good, it was never once remotely cheap. >> when's the last time this company raised anything? they haven't raised a number in years, so this is good sign. brian nichols is great he really is an amazing leader and clearly this is turn around that's certainly a lot of

progress for sure. >> we have another earnings alert on expedia >> we've got expedia right in line on the top line at $2.88 billion in revenues. a big beat on the bottom line, and this appear tuesday be just the calculation that analysts may have omitted when it comes to the tax impact. the company reporting $1.38 adjusted the estimate had been for 89 cents. but when you take a look at the tax rate that they are pay frg the second quarter 2018, it has fallen to 16% from 27% a year ago. so that's where they're getting a big boost particularly when it comes to the -- at $463 million kpaum pair today an estimate of $380 from analyst. among the highlights they saw 12% in gross bookings, north of

12%. domestic gross bookings up 10% international gross bookings up nearly 20% so the strong dollar really not posing a big hurdle here for expedia and a number of these online booking company depend a lot more than their international bookings than they do on their u.s. bookings. and you can see there the stock taking a nice bounce on the upside compared to its peer, trip advisor and expedia has been a laggard >> the expedia ceo tomorrow will join squawk on the street. >> finally these growth stars i'm involved in is doing well. up 12%, and so the whole thing is this company hasn't executed consistently over the last couple of years. and they've put plans in place,

heavily invested, and this was kind of the moment they had to deliver on this quarter. and that is the number of the one metric that had to come in nabit better than expected >> also a fairly new ceo that has new shoes to fill. >> heavily incentivized to get their stock up a lot higher. >> kevin, what do you think about expedia? >> another one i own i'm very pleased with these numbers. i'm beginning to think this company's revenues are good to become a good index. when i see these comps of 10% 20%, it's not just great management it's the underlying economy doing very well and more activity occurring it bodes well for growth on gdp. one of the reasons i own this stock, but i'm pretty happy with these numbers. >> i want to bring you back for a final word on amazon and kevin, in the release jeff bazos' comments, there's a huge

final paragraph on alexa how optimistic are you they can really monetize alexa significantly moving forward >> i'm very optimistic with a whole lot of small private companies, and their interaction with small providers with one or two different products is getting more and more efficient. some of it, alexa is a new platform that obviously is going to help all kinds of companies do things. but again it's part of cloud services and they're not the only talking box. and my grave concern, and i own amazon and i want it to keep winning, but there's a lot of competition coming into cloud services and ai and all kinds of support. and in the same way we got euphoric about facebook, you have to come in with some

caution with the fact they're not the only player in town providing these services and to the extent that microsoft and google and others are successful, analysts are not a good metric for calling a stock anymore. i think it's obvious of what's occurred, on the upside of what happened with amazon and the down side of facebook. so shareholders beware start to get cautious about big drivers where others invest a lot of capital to get big action >> i thought he was going to talk about the pandoras box of privacy concerns around alexa. >> stephanie, final word quickly on amazon. >> good earnings, great operating profits. i'm happy to see margins going in the right direction i think if you stick with this one, i think it continue tuesday win. >> thank you very much for joining us up next we'll have much more reaction toathize amazon number

and whether this hot stock can keep rallying. plus we'll get the earnings trade on the dow component intel. we'll be right back. so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you?

two, down and back up. our phones are more than just phones. they are pocket sized personal trainers... last minute gift finders... siri: destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. plus get $150 when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today.

another earnings alert for you. this one on the electronic arts. julia boorstin with the details. >> electronic arts beating estimates coming in at $709 million for the quarter. earnings per share 95 cents. the stock is down over 6% right now, and that appears to be because of guidance. guidance for both this next quarter as well as for the full fiscal year that ends in march coming in lighter than expected. that net bookings or revenue number ea uses to forecast lower than analysts anticipated. >> we've got another alert on amgen. >> it looks like a beaten race for amgen montana second quarter

versus the average estimate of $3.64. analysts average estimate of 5.73 billion the company says it was helped by higher sales but also the tax rate went down due to u.s. tax reform they also increased their 2018 guidance for both sales and adjusted earnings per share. the new midpoint of the sales guidance is higher than what analysts aric look for however the adjusted eps guidance lower than what the street had been looking for. you are seeing the stock up 1.3% in the after hours the company also saying their new migraine drug is off to a good start that's very early so we don't have numbers on that separately the company also announced the retirement of two higher ranking executives. the head of rnd, shawn parker

is >> and shares of amazon as we reported earlier slightly jumping after reporting earnings moments ago. we should remind people the stock is down 3% in norm trade so net net today it is down. let's get more discussion from those numbers. very good afternoon to you both. tom, i'll start with you i guess as we already discussed the eps was a beat with people focusing on revenue. >> if you look at amazon and what will drive the shares going forward, it's primarily revenue growth and with amazon being as big as it is today for 1pen basis points of incremental growth they need to add $3 bhilimilliof revenue. the only other thing i would add there acquiring pill pack and

pursuing the $2 trillion pharmacy opportunity is great but the company still needs to execute. it's interesting to the see the revenue payment a little light in the quarter and revenue was a little lighter >> where do you think investors should be focused? >> i think i would agree their revenue is going to slow the key to us is how their monetized in different ways. and i think what they said in the release was fascinating because that's ultimately how they're going to expand per household. we have a growth in lowing and we expect it to slow over 20% in the next few years they're really monetizing it in subscription services and everything else. >> you're saying that

essentially expanding the number of devices in which they have a connection with customers, that in itself is going to catalyze more spending i assume that's mostly through prime members >> earlier this year we found 5% of americans have used a vice activated speaker to shop. that looks a lot like what people were doing with their mobile phones 7 years ago. today 85% of americans shop with their phones regularly if they get 50% of households shopping through their devices, that could add over the next few years. >> what do you think ability that and the growth we saw there? >> if you look at what's been driving the shares over the last 12 months it's definitely their aws cloud computing effort because the beauty for amazon is that the fastest growing business from a revenue standpoint is its most

profitable i do think, though, in addition to the fact they had a multiyear lead on amazon and google and others, i think they're still in an enviable position and historically when you think amazon you think of a company with lean margins. if you look at their story in aws they consistently cut prices yes, more competition is concerning but i think when it comes to price leadership and continuing to cut price, i'm not so concerned in their cloud computing effort >> and the stock up 1.6% thanks for joining us. intel also just out with earnings here to break down the number and the trade, fast money traders. so guys, stephanie was disappointed with some of the server business. what say you >> you look at intel 12.5%, 13%

forward earnings where's the real growth? you have oat companies catching up in a big way. it tells you maybe intel is not the only game in town anymore. but the quarterly was okay, wasn't great average selling prices nothing to really write home about margins hung in there. however, you look at the stock and you say maybe there's a better place to be i think that gives you a stock where you're sort of in no-man's-land right here >> i totally agree with that they have to address the fact they've had a lot of management departures over the past several months including obviously the highest level. so that needs to be addressed. but importantly amd, they're going to eat their lunch next year they're absolute legoily going impact their margins i look at intel and say i just don't see any upside i'm just staying away from it at

least in the near term >> guys, great stuff we're going have to leave it there. we're tight on time. thank you as ever. >> it's always a pleasure. >> and tonight fast money, don't forget to tune in. facebook its worst ever, and just how much the social media giant is worth now make sure to tune in at the top of the hour. still to come here, we'll hear from one analyst whether you should chow down on shares of cpoe tehitlafr strong earnin earnings of 6% back in a couple of minutes. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪

verizon provided us a solution using smart sensors on their network that lets us collect near real time data on our power grid. (colton) this technology is helping us integrate rooftop solar, which is a very important element of getting us to our renewable energy goals. ♪ (shelee) if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪

whoooo. you rely on tripadvisor so you don't miss out on the perfect hotel... but did you know you can also use tripadvisor so you don't miss out on the best price? tripadvisor searches over 200 booking sites to find the hotel you want for the lowest price. saving you up to 30%! so you can spend less time missing out... and more time paddling out! tripadvisor.

visit tripadvisor.com or download the app! welcome back to "the closing bell." let's have a look how we finished the day on wall street. the nasdaq of course because of facebook a big lag of 4% the tech sector because of facebook that weighed on all of the markets. >> hammered across the board checking on some names, let's start with amazon. it is higher but off those session highs when we first saw that big profit beats, slight revenue miss also revenue forecast came up with a little bit light. intel is moving lower, chipotle up 6%, and electronic arts down 3% >> let's have a broader news update sue herrera has got it for us.

here's what's happening at this hour, everyone. president trump claiming a trade break through with the european union hailing it as a benefit to iowa farmers it came during a round table discussion at northeast iowa community college where he was joined by governor kim reynolds and representative ron blum. >> basically we've opened up europe, and that's going to be a great thing for europe and really going to be a great thing for us and it's going to be a really great thing for our farmers because you have just got yourself one big market that really essential, wouldn't you say, kim, never existed? >> reporter: and greek authorities say they have serious indications that those terrible wildfires in ath ens that have now killed at least 82 people were set zliberately. satellite images and ground inspection suggests the fires likely resulted from arson here at home, a new jersey dad celebrating his son's release from the hospital with a victory dance has gone viral on saturday kenneth thomas

learned his 15 month old son christian was able to leave after 52 days. he has down syndrome, but he is also battling leukemia we wish him and his dad the very, very best. and on that note, that is the news update. i'll send it back down to you guys >> we certainly do, sue. the sight of that dad celebration dance, but i thought christian's was even better there. >> i thing so, too he's got great rhythm and he's obviously going to be really happy to get home. >> that's the baby >> he's the cutest little guy, and we wish him well >> sue, thank you very much. sue herrera back at hq for us. president trump making comments in illinois and discussing tomorrow's gdp report. >> we were talking about this a bit earlier on your program. the president's down in illinois

and talking about steel tariffs. throughout the day he's also been talking about tomorrow's gdp number that number obviously still a secret the president early in the day through out some predictions he'd heard as high as 5 or 5.3%. in illinois he's just addressed that topic again >> somebody actually predicted today 5.3% i don't think that's going to happen, 5.3% if it has a 4 in front of it, we're happy. if it has like a 3 but it's a 3.8, 3.9, 3.7, we're okay. but these are unthinkable numbers. if i would have used these numbers during the campaign the fake nooz back there would have said he's exaggerating >> the president obviously very

bullish on tomorrow's gdp number not clear yet what that number is going to be, but the president certainly raising expectations with throwing out numbers as high as 5 or 5.3. we'll see footomorrow what that number actually is if the president is throwing out 5.0 or or 5.3 on the range, i'll join the predictions of 5.0. >> it's been a huge after hours session for earnings, and just ahead we're going it get more reaction to the results from hitlon and cpoe. both moving higher right now we'll be right back.

hello. let's go for a ride on a peloton. let's go grab a couple thousand friends and chase each other up a hill. let's go make a personal best, then beat it with your personal better than best. let's go bring the world's best instructors right to you. better yet, let's go bring the entire new york studio - live. let's go anytime, anywhere, with anyone who's willing. and let's go do it all right here. ready to go? peloton.

welcome back to "the closing bell." chipotle just out with earnings reporting a beat on the top and bottom line. steve i guess the investors also focussing on that same store sales growth which was higher than people expected, above 3% >> yes, 3.3% the consensus was about 2.5% and certainly we're going over am the effect we'll start to see

next quarter, too of the virus outbreak we saw in third quarter of last year important to note that imagine also upgraded their guidance for same store sales from low single digits and i think that's part of the reason why the stock is up after hours >> and what's happening here, steven, that's leading to this kind of turn and outlook in business they do have a new ceo, which you can give him credit. but for so long it was about the food safety scandal and then for so long it was bringing people back in and get them interested. >> they're starting to do that right now with some new marketing with the bureau from taco bell. that eshpansion catering toilate afternoon or perhaps late night users, using existing menu items, things like nachos have

been contested without much additional food inventory costs. so that's something we can look forward to in the coming quarters >> who doesn't love a frozen margerita? >> indeed, and it's almost 5:00 p.m so on that note, steven, we'll have to leave it there amazon losing some of its earlier after hour gains the shareholder ins jous next with the key factors he's waiting for on the all important upcoming earnings.

some news to tell you about on bitcoin >> the sec, is disapproving to list the winklevoss bitcoin etf. they say it's not met its burden under the exchange act the sec goes onto say their mission is to prevent fraudulent or precipitative acts or practices and to protect investors. the sec is making it clear here they're concerned about fraud and manipulation of bitcoin. they note this is done in a largely unregulated offshore market they note most recent data would seem to indicate three fourths of the volume in bitcoin trading occurs outside the united states 95% of it trading occurs on non-u.s. exchanges they expressed concerns about

that i would note one other important thing here there is another bitcoin etf that they've filed that it's clear is still under consideration. this is laern ethe most well-known one where do we go from here well, the next step would be an appeal at this point if they happened to the u.s. kpael by the way, they went out of their way to say this does not mean they're making any comment about block chain or bitcoin in general and the fesability about whether or not it's an efficient technolo technology guys, back to you. >> the sec is being very deliberate about this. i don't think many people thought it was a layup, it was actually going to be approved. probably seemed like a little more of a treacherous area to

allow investors to invest in >> let's get back to amazon. high about 2% in the after hours. declining about 3% during normal trade. during us now to discuss those upperings is kevin john fort kevin, if i start with you, you're an owner of this stock. what was your take on the numbers overall? >>. >> it looks like amazon, a company on the roll is still on a roll >> dive into the numbers a little bit more and the revenue was middle of the range that was guided for and likewise the all-important aws number wasn't a significant beat >> well, maybe it wasn't a significant beat, but it's still growing just at a monstrous rate and the clear number one and one of the most attractive markets right now is still early in the game, but hitting its stride so there's not a lot to really

find fault with here you could argue there's maybe not too many huge upside surprises, but come on, we've gotten spoiled now with amazon >> i don't know. john fort can find fault in anything, john so go for it >> you sound like my wife. >> no, i think, aws had a very solid quarter reminiscent of what microsoft showed us with azure, and they also were really strong when you look at the shipment costs they were only at about 31% growth and that's the low end of what you've seen from them over quarters of the past year and it's interesting this operating income beat they came in at 3 billion. i was looking back and where do they guide during their last report they guided to $1.9 billion in operating income at the high end. they beat that by more than a billion. i think a lot of what will need to happen on this call is investors will want to understand why the big miss on

this it's not like it came from somewhere that was completely unexpected and it's not like the cloud completely blew out that delivered this operating income. is this guide that you're giving now from operating income to, let's see, 1.4 to 2.4 billion is that going to be more accurate are they committing to delivering more profit consistently over time or is this just they couldn't find anything to spend money on for a brief period >> mike, the call for facebook was all important. was the amazon call be all-important? what are the key topics? >> i don't think it will be all important in the sense of amazon changing the whole trajectory the way facebook did and expect the margins because of choices we're making because that was what happened with facebook. with amazon, i think it's probably more about to jon's point, what's the pace of the opportunity and how fast are we going to get there and how confident are they, i guess, with the various regions in terms of hitting the top line

numbers. let's remember it's still a retailer and it's the fourth quarter of this year that really is when they have their busiest time, and i think that any color they can give on that will be key. >> even though they had another record singles day >> you mean prime day. >> singles day is alibaba. >> same idea >> guys, we'll have to leave it there. thank you very much, jon fortt and kevin landis for your check on amazon. let's get a check of the earnings movers. intel down 4.5%. oh, no, it's recovered decently, in fact, now -- this is want no extended hours >> there it is. >> starbucks up 0.7% and chipotle up nicely and the same-store sales growth and the expectation up 2.5 and amgen up 1.5% and the key numbers to listen for in the upcoming conference calls will be discussed next what about him? let's do it.

♪ come on. this summer, add a new member to the family. at the mercedes-benz summer event. lease the glc300 for $429 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

up next, we'll get another check on amazon and the other after-hours earnings mover to help you prepare for those conference calls when we come right back your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

welcome back amazon's earnings. >> we just got off a media call with brian signoff and renewal rates are looking good and he also said that the company is seeing better than expected efficiency in warehouses, data centers and marketing. head count's up 2% year to date and that's largely in those growth areas and that's aws video and the device teams he also says that they expect prime benefits at whole foods now that it's nationwide to eventually drive more member sign-ups and retention, but wouldn't give us any more details on exactly how those two metrics have fared so far. back over to you guys. >> courtney, thank you very much

for that amazon up after hours. on monday, make sure to tune in to "the closing bell," an exclusive interview with j.p. morgan ceo jamie dimon on "the closing bell". >> and the banks are doing better. >> doing pretty well and i will be discussing all of that and that does it for "the closing bell." "fast money" starts right now. "fast money starts right now on what is a huge night for earnings everything from amazon, amgen, intel and starbucks to chipotle. we have full team coverage throughout the hour and all of the big names, meg terrell, and kate rogers pulling double duty and julia boorstin on electronic arts plus we're pulling out all of the stops for the big kahuna, amazon falling a bit before jumping to touch an all-time high as wall street digest