it is 5:00 a.m. in washington here's the five most important things you need to know. breaking trade news. the white house reportedly considering upping the tariff on chinese imports to 25% china vowing to retaliate. apple getting closer to being a $1 trillion company as investors love its results ceo tim cook sounding off about the quarter, china and president trump. we're on fed watch how high are interest rates going to go? we may find out later today. oil under pressure again this morning after handing in its biggest monthly drop in two years. france did something in the classroom that every parent out there is either going to love or

hate what it is this wednesday, august 1, 2018 ♪ we do whatever it takes including just getting up early. welcome to the show. also welcome to august from wherever in the world you may be watching thanks for being with us i'm brian sullivan your market theme today will be a tug of war between two big stories. on one hand you have apple's big quarter and strong guidance. that stock is up very nicely this morning you can see over 3.5% to $197 per share. we'll get you more on the apple story in a minute. because this is the breaking news that may dampen any apple enthusiasm in the overall market the trump administration is now reportedly planning to propose a new 25% tariff on 200 billion worth of imported chinese goods. that would be a jump from the currently proposed 10% level

the goods would include food products, chemicals, steel, aluminum and consumer products china saying it will retaliate if america ups the stakes in the trade war. keep this in mind, china imports less than 1$150 billion in tota goods and products from the united states. that may explain why the market reaction is fairly muted futures are mixed. nasdaq slightly higher dow and s&p are slightly down. again, a very slight reaction there as well. the fallout from that may be the market story, the harder hit from a jump would be china and the shanghai composite dropping nearly 2%. that index the biggest decliner in the world japan able to squeak out some gains. european markets are mixed but all little changed we'll get you more on this story as it develops throughout the morning. let's get back to apple.

shares of the company are popping after a big earnings beat apple sales were led by its iphone x that pushed quarterly results way beyond wall street targets. subscriptions for the app store and icloud also boosting music tim cook telling cnbc that all the iphones grew nicely and saying that revenue growth in china continues to hold strong despite trade fears. telling cnbc that he's had conversations with president trump and while they don't agree on everything, the president does listen to his ideas apple shares up 3.5% let's bring in dan ives. dan, apple before our eyes, is transforming from a maker of this into a higher margin, leaner services and cloud business is it not? >> services is the way for growth going forward

the services beat, but also asp. now you're seeing a slow and steady hardware business on the iphone, but software services, that's where the high octane fuel in the engine >> let's put that into perspective. apple's main business is obviously the iphone business, doing about 30 billion a quarter. 120 billion, 13$120 billion, 1 a in revenue apple's number two business, services, is on pace to be what would be a top 50 s&p 500 company by itself. >> yeah. we think if it was value by itself, it's probably 400 billion in terms of the services piece. when you go back to trillion dollars -- >> that would be a top 20 s&p company. >> when you talk about the sum of the parts, sort of how we get to the trillion dollar plus and i think we'll get there soon now, it's that software services piece with now an iphone product

cycle on the horizon really now for apple everything is sort of working even though china has been over in terms of the tariffs, that 9% growth is key. that's going to be key as you go into the coming year in terms oe >> if you buy apps, they work on your phone, on your apple tv, you have video, family photographs, they play across the apple spectrum once we're there, is anyone leaving? >> it's the halo effect. you will buy another iphone. we have 350 million iphones in the window of an upgrade opportunity. street is about 220 million. you look at it, this was a good tea leaves going to demand picture for fiscal '19 the tech tape that's been angina for facebook and netflix, this was the good news the street was looking for. >> all technology companies are

great until they're not. blackberry had 100% market share for smartphones. remember motorola? the star tac i'm not comparing apple directly, but you get my point there are risks. we just don't see them yet when you do your analysis bhashgs are t what are the likely risks to apple's dominance? >> just lower price competition on smartphone. a product cycle that if you look at it consumers call it every 2 1/2 months, we're upgrading now that continues to stretch out. if that doesn't happen, samsung competition increases, they need that growth going forward. so whether it's content, software, services, the biggest risk to apple on the hardware side, and i think cook recognizes that which is why they need to tap into the ecosystem, which is so key for apple. what is that next act for apple

then we think it's content. they've had a toe in the water there in the content arms race you've seen oprah and others that they brought on i think a subscription service on the content side is coming up next on the video, over the coming year or two. that is something that will go into the software services piece, and also from a multiple perspective it will be something that the street will like. >> yeah. big quarter. we are getting really close to that $1 trillion market cap we'll hit it soon, won't we? >> it continues to be out there. whether apple hits it first or amazon it's that hardware/software. the one-two punch that gets it over the line. >> dan ives, appreciate your insights thanks for coming in sticking with apple, china's huawei shipped 52 million handsets last quarter compared to pple's 43 million handsets.

samsung commands about 21% of the global smartphone market. news out of asia china tower reportedly raising 6.9 billion in its ipo this would be the largest ipo in the world in over two years. china tower is the biggest telecom operator one high profile activist investor may be seeking changes to an american iconic company. >> dan loeb's their point reportedly built a stake of 3$30 million in campbells soup, that's 2.5%. sources say that third point filed for antitrust clearance, which is necessary if it wants to increase that stake and get involved in business decisions the 30-day waiting period ended earlier this week.

it's unclear what loeb's plans are for the stake but he spoke with the interim ceo about a possible course of action. campbell soup is at a cross road in its 150-year history as canned souch can ed soups and other processed foods have stepped out of favor. the company said it will review its product lineup which could involve selling or spinning off brands management said all options are on the table stoking speculation of a full sale to a rival such as kraft heinz campbell soup is expected to discuss the result of the review later this month around the time it reports earnings. shares are higher in premarket trading. they have slumped about 20% in the past year. david einhorn's green life capital taking a big hit last quarter. the fund lost nearly 5.5% in the second quarter in a letter to clients obtained by cnbc

einhorn says green line's performance has been far worse than we could have imagined. the fund is down 18% year-to-date >> ouch. that is a big loss for david einhorn. i'm sure his investors are less than pleased we'll see you in a few minutes your other big stock stories have to do with mining, food and music. rio tinto's profit rose 12% in the first half of the year that did miss forecasts. the company adding $1 billion t its stock buyback plan and raising its dividend by 15%. that stock down 4% right now cheesecake factory disappointing investors. the second quarter earnings missing forecasts, but not because people didn't like the food its higher health insurance and legal costs offset a jump in same-store sales pandora shares are actually on the rise today. music streaming service posting

a smaller second quarter loss than many expected it added more paid subscribers revenue jumped 65% the stock is up 12.6%. all right. up next, a giant oil slick, if you will crude just did something it has not done in two years. we'll tell you what that is ahead. and it's mystery chart time. this is the single best performing stock in any major index this year. shares of this stock are up 237 % in 12 months you're on the treadmill, we know, put your head to work. who is that? tweet us your guesses. just another day on the farm. or is it? this farmer's morning starts in outer space. where satellites feed infrared images of his land

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so the tariff story is growing and maybe weighing on the market there's your fight today in the bond market, treasury bonds also not moving a whole lot. the ten-year yield at 2.98%. that's where it was a couple days ago welcome to august. amazing. time is flying let's look quickly back at stocks closing out july. despite all the trump talk, trade talk, trade fears, trade wars, look at that the dow posted a 4.8% gain in july that's its second best monthly performance this year. the s&pjumping 3.5%, also its best performance since january and the fourth positive month in a row. the nasdaq, even with all the hoopla about tech, still gaining. it made 2% in the month. it was a rough month for the energy market. oil seeing its biggest monthly drop last month in july. a lot of surprise inventory

gains. talk of oversupply in the market sending crude oil down look, that's all in the past let's talk about the future and what it means for you and where we're likely to go let's bring in dan rue are you shocked? every day you read the paper or the internet, trade war. trade war. dow up 4% in july. how come >> because earnings and profits drive stock prices and, you know, it's not enough to put a damper on the overall market there are companies that are going to hurt, be hurt more than others it's why small cap stocks have done better, they're more domestically focused versus having a lot of exposure to the trade issues we're getting pretty much through the earnings season now. i'm seeing profits exceeding and revenues exceeding we're so early in this cycle of

revenue growth a lot of it is stimulus from changes in tax policy and less regulation that takes a while to cycle through the whole sector >> earnings up over 20%, one of the best quarters in decades >> and this would not be without precedent after having such a big year last year in stock performance. >> let's talk about how to make money. i'm going to oversimplify it it's tv. for the last five years or so, you could buy four or five stocks the f.a.n.g.s, apple, whatever just let it ride you didn't have to think buy those stocks, walk away, count your returns >> yeah. >> it's not going to be like that anymore >> it's not going to be like that now you have to look at winners and losers again, it's all about valuation. and that's why i think apple, for example, which is an inexpensive stock and a pretty amazing company, you talked a lot about it -- >> you own it. >> we do own it.

it's what we call a compounder over return. they have not allocat acquisiti. there's another lever to pull here they have such an extraordinary base to start from >> let me ask you, last night on "fast money," we talked with kevin o'leary, and he was annoyed they were not giving a higher dividend. he wanted more cash, despite them buying back more stock. you're an owner of apple are you happy with how they're using their cash >> my colleague and i talk about all the time >> you need better things to talk about >> yes, you're right we prefer companies that deploy it into other productive assets. taking a dollar, turning it into 1.25 and taking that 1.25 and compounding it from there. returning capital in the form of dividends is a component of the overall return of the stock, but we would like to see them

allocate them to other productive assets. the company can walk and chew gum at the same time with the extraordinary cash flow generating activity. >> active stock management is coming back, isn't it? >> it's been happening all year. we've had an easier time beating the benchmarks i see that trend continuing. it won't be so easy as throwing the lever. >> give us some ideas going forward. what are some things, themes, companies, sectors you like right now. >> you want to be pro cyclical buy financials and industrials i think we're early. you look at a company like jpmorgan, it's unbelievable how cheap it is. i was in london, right before that i added to our position in jpmorgan that was at 105, 106, that was after they reported earnings the stock went nowhere, now it's 115. >> yeah. >> to me, it's still inexpensive and there's another wheel to go.

i think that you've got this whole cycle from tax policy of bonus depreciation, companies will take bigger capital investments, that's got to drive performance in a lot of industrials. that's another area to look at >> the great rotation has gone jpmorgan chase a great place for your money, so says this guy dan, pleasure. appreciate it. still ahead, a smartphone smackdown. france just banned all phones from all schools what do you think about that we want to hear from you. and as we head out, a look at the top performing dow stocks in july. year, i am sorry about that. [music playing]

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that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. . there it is. washington, d.c. a lot of things going on there 5:23 in the morning. good morning let's stay with washington news. the president, you may have heard about him, trump, is back at the white house this morning. this after holding a rally in florida last night the big focus today is on the president's former campaign manager. tracie potts is live in d.c. with the latest. the president did not mention him at the rally last night. you probably won't hear the president mentioned during this trial, but it is significant because the outcome of the trial

could affect the russia investigation. 12 jurors will decide the fate of former trump campaign chair paul manafort. he's accused of making millions working for the russian-backed ukrainian government hiding money overseas to avoid taxes, and lying to get loans to support his lavish lifestyle manafort blames it all on the prosecution's star witness, his former business partner, rick gates. the defense will argue gates controlled the money and embezzled it >> if manafort is convicted, it becomes more likely that he might agree to cooperate >> reporter: telling what he knows from three months in charge of the trump campaign president trump did not mention the trial or the russia investigation at a rally in tampa last night the white house is keeping its distance >> remember, it has nothing to do with the campaign >> reporter: the trial could impact robert mueller's investigation. >> a win here will signify that he is here for serious,

legitimate reasons, not a witch hunt and also give him an edge going into the rest of this your's proceedings. >> reporter: the trial is expected to last three weeks manafort could get up to ten years in prison if convicted >> that is going to be a big story. manafort news dominating the business headlines as well tracie potts, thank you very much. let's check on the other headlines outside of the world of money and business including an amazing story about a plane crash in mexico that has a happy ending frances? >> hi, brian this story out of mexico where that plane crashed in durango and everyone on board survived the jetliner with 103 people on board went down shortly after takeoff. flight 2431 was on its way from durango to mexico city when it was reportedly hit with a gust of wind. 98 people were taken to the hospital the u.s. embassy said there were

me americans on board but they did not provide other details. a new fire is exploding in size in northern california. dozens of homes north of san francisco have been ordered to evacuate and met fans, sorry. maybe turn away from this one. the nationals handed their division rivals their worst loss ever the nats obliterated the mets winning 25-4 the embarrassing loss did allow one player to fulfill a life long dream with the team down 19-1, jose reyes was called to the mound and he didn't do so hot giving up six runs, including two homers just forget that ever happened if you're a mets fan unsee it, if you can >> normally, frances, you know how it is in the "new york post," the sports are on the back page. you have the yankees the front page of the post is about the mets "as bad as it

mets." not so amazing >> yeah. if you're a mets fan, you did not want to hear this. even worse you put the headline in front of them >> i will push this right up here for our friends, tim seymour, other mets fans the best "new york post" headline in the last couple of years, it had the baseball headed thing with a frown that said meet the mess that's appropriate >> with politics these days, there's been many to one-up that one, i think all right, brian >> i try to avoid politics and the mets thank you. on deck, today's big money headline is brought to you by the letter "a. apple's spectacular quarter. but as good as it has been, it's ythe best stock of the year you will be surprised. ll of thie stuff that matters?

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trade alert, what the white house is set to propose that could rattle your money. how soon until apple becomes the first $1 trillion company? all you parents out there listen up. france is doing something in the classroom that you will want to hear about and you'll either love it or hate it but you will have an opinion we'll tell you what that is as the second half of the show kicks off right now. ♪

getting some groove on this morning. welcome. it's 5:30. happy wednesday. thank you for being with us on cnbc i'm brian sullivan there's always a lot to get to let's kick things off on the back half of the show by making sure what you know are the big headlines now. bertha coombs has those. >> here's what's leading on cnbc.com the trump administration reportedly planning to propose a 25% tariff on 2$200 billion of chinese imported goods that's up from a 10% tariff. china firing back saying it will retaliate if the u.s. ups the stakes in the trade war. huawei just pulled ahead of apple to become the number two smartphone seller. they shipped about 52 million handsets last quarter, up roughly 41% from a year ago. apple shipped about 41.3 mill ron units last quarter huawei and apple still trail samsung which commands 21 of the

global smartphone market. and dan loeb's third point reportedly built a stake of $300 million in campbells soup, that's 2.5%. sources say that third point filed for antitrust clearance, which is necessary if it wants to increase that stake and get involved in business decisions the 30-day waiting period ended earlier this week. it's unclear what loeb's plans are for the stake but he spoke with the interim ceo about a possible course of action. the most important part of that story, the goldfish. >> campbells owns the goldfish >> mm-hmm. >> that is breaking news had a handful last night here's how your money and investments look now stock futures are maybe down slightly here. you have this big tug of war in the markets. on one hand you have the headlines, this possible 25% tariff on 200 billion in goods, up from 10%. maybe renewed -- every day trade fears away, trade fears renewed.

back and forth on the other hand, you have this story, which is apple. shares of that company are popping after a big earnings beat apple sales led by the pricey iphone x quarterly results well beyond most wall street targets subscriptions broo s boosting te services business. apple a dow component. so trade bad, apple good there's your tug of war. let's bring in arjun kharpal to talk more about apple's big quarter. arjun, it is -- forever it was just the iphone. apple was a phone company that had a few other things you cannot ignore as an investor this amazing boom in the services side of the apple story. >> that's right. that's increasingly important because what we saw is even though iphone revenues were up 20% this quarter, the actual unit sales were up 1%.

that shows there's a slowdown in the smartphone market globally apple needs to continue to gain recurring revenues from its users. this is the way it will do it. the services revenue is up 31% this quarter that's the second straight quarter of growth. it's chugging along. it's become important. if you look at apple from an investor perspective i'm interested to see if there's a re-rating of the stock it trades at 14time times pe if you look at alphabet, which is 27 times pe, does the market rerate apple more towards the software kind of business rather than a hardware. the iphone still accounts for around two-thirds of apple's revenue. so it still is a really important factor in the company. >> the iphone still is massive to your point, you have services now at 9$9.5 billion in revenue

last quarter nearly a $40 billion a year business as the secondary business the other thing that was surprising from those results was the 37% year over year jump in what they consider other items. the apple watch, the tv, home pod, air pod things. so apple seems to be growing in a lot of different markets >> yeah. what was interesting about that is i remember when the apple watch first came out everyone was really excited that this would be apple's next killer product that never really materialized what you are seeing is a clear growth in this area. the likes of the apple watch, air pods and the rest of apple's devices. that's crucial, it still relies on the iphone to some extent they all link to the iphone. so the continued growth of the itself phone what we're seeing happening is helping these other

accessories boom if you try to buy some sort of apple product, someone is always trying to sell you the add-on. that's where you see the growth. a lot of parts of this business are firing you have the services, accessories, revival in china taking place that's a crucial market. so at the moment the apple business looks very strong they continue to impress on many different perspectives >> you are their target market you are the upwardly mobile millennial are you apple or android >> i'm both. i'm both, brian. i have two phones. one for work one personal i won't tell which you is which. i'm a tech reporter. i need to assess the entire market >> look at that. he hedged -- literally hedging your tech bets arjun kharpal, thank you very much we'll give out both those numbers later on in the show kidding. remember you also have the federal reserve meeting today

and interest rate decision, that two-day meeting wraps up this afternoon. a rate hike is not expected today, but with this new fed anything could happen. let's bring in paul braine from newton investment management what is your expectation from the federal reserve today? >> i think, as you pointed out it should be a fairly quiet meeting. not expecting a lot from the fed. there's a statement that comes with it, but no press conference not expecting a significant change this may be one of the quietest fed meetings almost overshadow the bied bank of japan meeting that occurred yesterday and the bank of england meeting tomorrow >> three big central bank meetings this week three of the big four taking out the ecb. what do you want to hear from the federal reserve? >> i guess no real changes they have been very good at just

talking us through a gradually rising interest rate path, which i think they justified in doing. economy is good. employment is strong there's no reason why they should change course so i think just more of the same if they change the wording too much, i think the market might get a bit too excited for a few days essentially i don't think we'll get much i don't think they should do much to upset the market at the moment >> yeah. it's funny i think a lot of people in the u.s. market would have expected our ten-year bond to be at 3.25, 3.5% seems like we can't get to that 3% mark. what do you expect from the u.s. treasury market this year? will we end the year higher than 3% >> i think the underlying trends of growth, fiscal stimulus, and more supply. getting more treasury supply

that's been ramped up. so those factors with the fed raising the base every two or three months, i think that will lead to higher rates we will see rates 3, 3.25, even possibly 3.4 by the end of the year at some point that fed tightening, that will have an effect it will have an effect on the economy. that's what i think will flatten the curve off more and maybe even push it into an inverse curve by the time we get to the end of year >> paul joining us live from london with that fed condition d -- fed decision coming at 2:00 p.m. time for the wednesday top trending stories bertha coombs has those. >> a federal judge temporarily barring a company from publishing online blueprints to make untraceable 3-d printed

guns the design files will allow anyone with a 3-d printer to produce a gun undetectable by metal detectors and untraceable by law enforcement this is the continuation of a legal battle stretching back to 2012 and could the days of the classic heinz ketchup packet be numbered kraft heinz announcing a pledge to make 100% of its mac capacka recyclable or reusable most of the items are there, but the little ketchup packets are the exception. the company is not sure what kind of packaging could match foil packets and be convenient, and they say if it doesn't exist they'll invent one >> i never understood those

packets. half of it stays in there. you find it on the bottom of your shoe. >> you go through the drive through, you get some french fries, it's easier for someone to hand you packets. >> they have the pumps, just put your mouth under there >> yeah. >> why need a container. why muck it up >> i'm not a huge ketchup fan. i don't know i'm more of a salsa person >> it's almost time to head back to school. this is the story that really has brian riled up this morning. >> love it students in france will have to return sans their smartphones. a new french law bans students from bringing their phones and tablets to school or at least requires them to turn them off officials supporting the new law say it's part of their responsibility to protect students from addictive habits thema makes exceptions for

educational use and students with disabilities. i don't know how people pay attention, and if you're a teacher in class, whether you know someone is using that device, using their computer -- >> you don't you can also cheat you send people disappearing messages i got a lot of friends who are teachers you will get parents, some have written in and said they need it for safety you can use a basic flip flown with texting capability. >> even with the texting, it's not just the kids but their parents. so many parents are addicted on checking in on their kids. >> a lot of parpts will loents e this a lot of parents hate it it will never happen in america. >> do you text your kids during the day? >> i do. i have a 14-year-old girl. i never see her. i don't talk to her. i just text her when she's in

her room are you okay yes. send food and money. >> it will only get worse. >> what's that >> it will only get worse. >> i just ram my head into the wall every day fantastic. we are talking back to school, the retail names that need to be on your radar who has the stuff your kids want to wear, who is terrible first a check on the best performing global markets in july it's all about latin america argentina and brazil, your best global markets in july poland rocking, and the philippines up 6.6%.

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synchrony. what are you working forward to? welcome back 5:45 in the east a mixed trade in the futures a flip of what we had seen we had seen tech weak, dow strong now all these threats about tariffs, the president reportedly set to raise tariffs to 25%, up from the proposed 10%. that has dow futures down 33 points, despite apple's big quarter. it is august 1st, time to think about back to school and retail. what names, what companies, what fashions should be on your back to school radar. stacey widlitz, i love your

tweets you take pictures of ugly shoes and send them out. who is doing it right? who will be red hot this back to school season? >> first, happy back to school, brian. 15 days from now many kids will be headed back to school so we're already there you and i have talked about some of the brands that you see out there that you see on teens that are hot. they still have momentum that would be vans we talked about nike that still looks as good as candy. their product has turned the corner haven't earnings have told it's that you play that into holiday i would also throw in tiffany, which i have not been a fan of in the past. they have really started becoming a lot more modern the tourism flows are perfect falling into exposure, being heavy asia, heavy states, light

europe >> is that a heavy fad for the london posh school kids? >> for some it is. i think you want to start talking about as we head into august the department stores have very tough comparisons. we had the perfect lineup last year over the winter the perfect weather for apparel department stores, and some of them still weren't terrific. so you want to steer away from that with tough compares and start looking at companies like tiffany that finally have momentum and i would argue their product is becoming much younger even your teenage daughter might show interest. >> too late. who is not doing it right? i love the ugly shoe pictures. who is not putting out good product?

>> sadly i spend my weekends photographing ugly shoes you're still seeing victoria secret suffer, if you look at their product. i put out some pictures. it's unspeakable when my daughter grows older, if that product is in the store, she's not going in there i would also say if you look at macy's, again, the perfect lineup last year, they only comped about 1%. if we don't have the perfect setup year and you face those tough compares and they're having a lot of loyalty programs, i would steer away from the department stores >> stay away from the department stores, but embrace tiffany, embrace nike do you know the best stock in america the last 12 months is a retailer >> i'm going to -- i will let you -- i have a couple guesses >> guess it right now on international television

i want to hear your guess. i was going to guess deckers >> it's not deckers. but that is a great guess. coming up -- it's called the deep tease thank you very much. after the break, we will reveal the mystery chart to stacey widlitz and the rest of you. this stock is up 237% over the last 12 months somebody on twet etwitter alrea it good job a look at the wall street rundown. hon sales, the fed decisi weave more to do stick around

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in the early part of the year. it's lost 140 billion in market cap in just a couple of months poof gone that's more than facebook's well publicized market catch wip wip. can the markets move higher if tech continues to tumble let's bring in nick colus who put out an excellent note on this topic nick, for the viewer there's a did not read your research, and they should because it's an always excellent morning note, what were your conclusions can the overall market go up if these four or five well publicized stocks do not >> the short answer is they can, but it needs two of four sectors to work. the four sectors are financials, industrials, healthcare, consumer discretionary so two of those have to pick up the slack for one sector of tech beginning to go down

>> you think that's likely to happen can two of those four sectors carry the water? >> so far it is happening. july was a strange month techunder p underperformed. the s&p ended the month up roughly 3%, even though tech was up 2%. so it's working already. >> are you surprised certain parts of technology have underperformed is that a healthy rotation is it a long-term trend? >> the f.a.n.g. trade, the tech trade generally got extremely crowded this year. so the fact tech can take a breather and the s&p can be up on the year and the month is healthy. august is the big tell august tends to be a volatile month. if tech underperforms, we'll need to see these other groups continue to work higher.

>> you've also done some -- the one thing i love about your research, it's not just numbers and spreadsheets, you look at google search results. what is your research into that telling you about how retail investors feel about facebook as a stock? >> you know, they still are definitely in facebook's corner. we looked at the google search trends for stock related searches last week when the stock was melting down also a number of online broker trades were reported and currently retail is definitely still backing facebook the question is is their support going to be enough to offset the institutional investors who are bailing out of the stock >> what do you think it rarely is we love retail investors, but they're rarely enough of a group to outweigh institutions >> retail makes money when it goes against institutional investors, and then is proven right. so far we have the first part, they're going against the

institutional investor base. the back half of the year will tell us if facebook can recover. >> so we need two of the four to pick up the market weight. nick, great stuff as always. we'll see you soon thank you. as always, let's wrap it up with your morning rbi. this is the stock of the year so far. it's not our opinion, just data. single best performing stock of any of the indexes, it's this name it's made investors 200% more money this year than netflix the stock is the retailer fossil that's right fosl almost nobody talks about it stock is up 237% so far this year to nearly $27 a share check this out the average analyst rating on this stock is just a hold with a

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good morning apple services revenue is booming and just in time the company just overtaken by huawei as the world's number two smartphone seller. what tim cook said to cnbc. and breaking trade news. the white house considering hiking tariffs on chinese goods to 25% and we'll get you ready for the adp report and the fed interest rate decision as we kick off august, wednesday, august 1, 2018 "squawk box" begins right now.

live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin and mike santo santoli. joe is off today looking at the u.s. equity futures. right now a mrixixed board dow down by close to 36 points nasdaq up by 16, s&p off by 2. looking at july, it's been the best month for the dow and the s&p 500 that we've seen since january. we'll continue to watch. first trading day of august. if you check out what happened overnight in asia, the nikkei was up by almost 0.9%. the hang seng was down the shanghai was down by