>> i learned that now parents are hiring tudors at $10 to $20 an hour to teach their kids how to get better at fortnite so they can play like ninja who is apparently da bomb. >> he makes apparently like half a million dollars a month. >> my check please, 20 years for michelle at cnbc. >> thanks for watching "power lunch. >> "closing bell" starts right now. the fed leaves rates on hold for now. we will discuss what it means for equity markets. i'm phil lebeau in chicago. tesla reports earnings in about an hour. wall street will be closely watching every word from elon musk. a full preview of what to expect

coming up. i'm julia boorstin, facebook facing more challenges as it detects more attempts to interfere in elections. i'm sarahizen. what analysts are saying about the quarter straight ahead. "the closing bell" starts right now. ♪ >> good afternoon. welcome to "closing bell." congratulations on 20 years to michelle from us. first of all, a check in on the markets. dow 210 points over today's session at the moment down 50 points. the nasdaq does still lead the way higher, continuing its bounce back from yesterday. apple's stock a big factor on that. >> we begin with cnbc's senior

economics reporter, steve liesman. latest comments from the federal reserve on interest rates and the economy. >> the fed kept interest rates unchanged. it's an upgrade of the economic outlook from solid to strong. the fed said further gradual increases in the target range will be consistent with sustained expansion of economic activity. that is a mouthful of fed speak for more hikes on the way. here are the probabilities. indeed, the market is pricing it that way. september near 90%. then you have to go to june 19 for the next mark above 50%. this is interesting. greg mcbride of bankrate.com. all signs point to september rate hike. continue paying down variable rate debt such as credit cards

and home equity lines and refinance adjustable rate debt because there will be more. the fed added that the labor market has continued to strengthen. household and business spending -- target also interesting what was not said, no mention of whether the fed thinks strong growth can continue or the possible economic effects of tariffs or any response to the president's criticism of its policies. i'm thinking maybe we get some of those or part of all those three in jackson hole when the fed chairman will give his first speech there. >> i have a feeling you will be there, as well. >> that's a great feeling you have. >> it is. and as always there is a strong kind of country jacket look, as well. i look forward to it. >> he goes for the fishing and stays for the central bank speak. >> thank you. we are going to continue the

discussion now. joining us julia coronado and james camp. julia, i will start with you. >> virtually no surprises. minor upgrade to strong which just sdroibz tdescribes the ecoe are in. >> do you think it is purposefully no surprises in order to avoid the spot light of the presidential tweet or complaint? >> they would have done this anyway, but they are definitely going to take the laying low road for sure. i don't know that they will address those kinds of attacks in jackson. i would say the fed is going to do what the fed is going to do. >> james, clearly nothing spooked the markets today. how many more hikes can the fed do this year without spoofing the market >> i think that your guest just mentioned the fed does what the fed is supposed to do.

for the first time in the post crisis we are seeing real data dependency. the data is strong, inflation is on the uptick. you will get two more rate hikes. the long end of the yield curve is not buying the inflation story. until global central banks move in concert or inflation does violate the two percent level the yield curve will continue to flatten. that will be the quandary the fed finds itself into early 2019. >> you just have to listen to conference calls from earnings and you will hear that prices are rising for consumer products, everything from pampers diapers to anything like autos with steel and aluminum. so is there a risk that the fed is under playing here of an overheating economy? >> i don't believe the feds is under playing. i think the rate heightening cycle may go too far too quickly.

you do mention prices at the end level, but if you look at the wages, growth is really concentrated in a narrow part of the industry space and the stock market is expanding in a narrow part of the space. until wage growth is material, sustainable and growing above the 3.5% and 4% level i don't see inflation getting away from the fed. >> are we at risk of too high inflation or too low >> i think you picking up on something that the fed wants to see which is we are seeing more cyclical inflation pressures, some signs of rising consumer goods prices is being offset with slower rent. there has been a multi family construction boom that is finally catching up with rental demand. overall inflation is barely getting to where they want it to go. i think they have room to be patient here. >> i guess another one of the offsets earlier in the year was slightly slower international growth particularly in europe.

this morning do we see that slightly pick up again or are we still going to stop the picture? >> we have a solid and more moderate picture. we see china's restimulated a little bit. it's seeing a much more pronounced slow down in the first half of the year. we don't really need that to be much stronger. we had an incredibly strong global back drop last year. it should have moderated. it's expected. the u.s. economy, on the other hand, has the offset from this big fiscal impulse. we had a trillion dollars coming into the economy. that's why the u.s. is outperforming and you are seeing some dollar strengthening. >> what is the fed going to have to do about trade, if anything so far what you have heard they don't want to get political, they stay in their lane and see how it shakes out on the economy -- >> we are starting to see an impact. >> we can see an impact on prices and inflation. we can see an impact on cap x.

that is where they are really kind of worrying about does the trade uncertainty crowd out some incentives for investment that are built into the tax cut that is the key question. so far the answer is not really. watch and wait. be careful and cautious. that's kind of the strategy right now. >> we'll leave it there. thank you. congrats on your new firm. james camp. joining our closing bell exchange eric ristabeen, timothy anderson and rick santelli at the cme group in chicago. tim, in terms of market impact, it didn't see much as far as the fed is concerned. are there questions about how many rate hikes this year into next >> there are questions. no action today was no surprise. it was very well expected. people are going to look through their statement very carefully.

i think the biggest challenge that investors are going to have in august -- i think the conviction might be tested in august, is where they are going to find market leadership. >> is it going to be technology still? >> you know, certainly the f.a.n.g. related stocks showed clear signs of exhaustion last week. and the big question will be whether or not that comes around as another wave of selling sometime this month. there is pretty good selling in the retailers today. a lot of those stocks have had 40% to 50% gains after being nearly written off for dead. and people are not yet convinced that the financials can outperform. there is still the cloud of a flattening yield curve hanging over what might cap their performance. >> rick, we hit three percent on the ten year today. the latest move higher we have seen, has that been down to domestic data? what is happening in the rest of

the world in foreign bond markets? >> i think a little bit of everything. i would rate it most likely in the global lane with respect to where most of the activity that is resulting in the slight rises in yields and drop in prices, whether it is bank of japan and how investors are trying to challenge new boundaries the bank has drawn, granted the absolute revel of rates in japan is really low. the real issue is how long they can keep rates contained and equity prices up and continue to see the economy. you look at china, the stock market isn't doing very well. they try to take their pedal off the gas and hit the brake. that has changed as they weaken the currency. then they have to worry about capital leaving the country. i think all of these issues are dominant in influencing the firmness of the rates than much of the data. now you have a five percent handle. granted that likely will come

down but some data points wiare little on the light side. >> in terms of the market leadership question there is a debate. technology is back on top of the s&p right now. some are looking at financials and health care to step in and lead. do you see any kind of rotation underway >> we have been looking outside the u.s. at other markets. we think the u.s. market is locked in this kind of death match between very good earnings and very high valuations and the tariff talk seems to be the tie breaker. every time tariffs are mentioned the market has eakness. we think the tariff issue is a real one but we are not expecting it to escalate to the level that may have been priced in to non-u.s. stocks. we think that conversation is also coming to a head. we saw it in europe and the u.s. achieving some agreement. we think this issue is coming to a head and we think at that

point with the dollar behaving itself and maybe some trade removing i think we have opportunity in the emerging markets and the rest of the non-u.s. developed world that is better than the u.s. because their monetary policy is still very easy as opposed to tightening. >> are you looking overseas at the moment >> certainly some of the emerging markets, those etfs have never really rebounded from the lows of the spring like the u.s. averages did. so if you are a little bit of a contraryen and there will be issues there, there are probably risk/reward trade that is an interesting place to look. >> what do you think, rick the whole global synchronized growth story kind of fell apart. as far as relative bet, u.s. bonds, u.s. dollar appears to be

where the action is, right >> the foreign exchange market is holding up very nice. both of our guests are correct. if you are a multinational business what you hope for the most is stability and low volatility in foreign exchange. that is what we have had since the second week of may with the dollar index, euro currency. in terms of fixed income markets they have been superstable. we haven't seen a big drop in rates in developed and big economies. i think that will continue. i expect rates to keep moving higher at least test the high yield close for tens. i don't exsect unless something exogenous occurs that we see it with vinegar or aggressive tendency. >> thanks very much. we have got just under 50 minutes left of trade. we are down 60 points on the dow. apple closing on a major milestone. we will look at how wall street

is reacting and what it will take to get a trillion dollar market cap. plus the ceo of amc entertainment joining us to talk about the company's quarter, his box office outlook for the rest of the year. you can reach out to the show on twitter, facebook or send us an e-mail. your digestive system has billions of bacteria,

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and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. welcome back to "the closing bell." s&p is just below flat. nasdaq up 0.4%. shares of caesars entertainment sinking. the stock was halted three times during its conference call due to volatility. shares were previously down as much as 24% and now are done some 12.3%. we hear from wynn resorts after the bell. turning now to apple, the story of the day marching dloclr

to $1 trillion. josh lipton with a look at what wall street is saying about the quarter and what it will take to get to the $2 trillion level. >> many might have been concerned about demand for an iphone priced at $1,000, but apple's latest results seem to be proving them wrong. apple is hitting new all-time highs. wall street is reacting a. clean beat on the path to $1 trillion morgan stanley said. hit snooze for 90 days. rbc chimed in. others a big more measured with positives and negatives we view that valuation as fair and maintain our hold. deutsche bank telling its clients -- still apple is charging higher today. thanks to the demand for higher priced iphones. tim cook telling me if you look at iphones that most recently launch including x, 8 and 8

plus. we took inventory down by 3.5 million units. the underlying demand is stronger. also better than expected is services revenue which tim cook talked about on the conference call. >> we had a stellar quarter in services which generate labor department time record revenue of 9.5 billion fuelled in part by double digit growth in our overall active installed base. >> strong growth in greater china. revenue jumping 19% in that region. >> thanks for that. josh lipton back in san francisco. tesla out with earnings after the bell today. at least 24 hours of earnings are a tale of two ceos. elon musk is hailed as a visionary despite financial and production challenges while tim

cook is often not known for not being as innovative as steve jobs. >> which ceo is the best bet for now and the future we are joined by david garity. who do you choose? in terms of creating shareholder value i would think that tim cook is your guy, but visionary founder, it doesn't get more eccentric and perhaps brilliant than elon musk. >> tim cook is probably definitely the guy. you will not have as much excitement and hype as you get with elon musk. you will get steady growth year after year. >> david, which company would see a bigger share price drop if the ceo unexpectedly left? >> i think in the case of looking at the company you would have to say that elon musk certainly plays a larger role within investors perceptions at

certainly tesla and on the private side with regards to space x. cook has been a very strong inheriter of the position created by steve jobs and for a company getting towards a trillion dollars at market cap it is 20 times the size of what tesla is now at about $50 billion. certainly elon has the passion and vision of a founder but i would say for my money i would put money for stable long term returns behind cook first f. i wi -- if i was a venture capitalist i would be looking at what musk has to say. >> is that relevant for investors right now when they continue to get these kinds of quarters >> the funny thing is tim cook's vision is simply build great products and protect user privacy which isn't the sexiest vision ever.

he stuck to it and it has worked out really well. i think if they continue to innovate in terms of iterative updates to the stuff they have out now they will do well for quite a while. >> would you say there is a similarity between elon musk and steve jobs >> you have to look at the volatility in terms of the personality. steve certainly was somebody who took strong points of view, wasn't necessarily concerned about popularity. we know that elon musk with the earnings coming out has some people who are severely strong critics among the investment community. musk has a long term vision. >> it raises the question about founders in general as stuards of public companies and just what kind of track record they have had and whether wall street wants to see that in general. >> certainly. i think if we look in the technology sector you have to

look at microsoft. bill gates played a huge role. steve ballmer wasn't really necessary a -- certainly with respect at looking at musk right now he is struggling to get a car, the model 3, up over 260,000 units a year. if you look at an average auto plant they are building over 300,000 vehicles. the case with cook at $38 billion annual run rate the service business is quite significant, larger than most s&p 500 companies and certainly with nice margins driving profitability and cash flow for some time to come. >> how important is today's

earnings call for elon musk and for tesla? if he failed to answer questions again and went on another rant would there be calls for him to move on from shareholders? >> i seriously doubt anybody would want him to resign. he is too important to the company as the founder. the whole ethos of tesla is built around his cult of personality. i can't speak off to whether he pops off on the earnings call if it will effect the stock price. he spent the day tweeting about wanting to put atari games inside the tesla as an easter egg. >> it feels like the tide has d changed lately and investors are complaining about it where it used to be the great hype machine of elon musk that has kept so many frantic fans around

tesla the stock and the product, as well. >> absolutely. he has built a real cult of personality. he has a huge fan base who will go out and buy a flame thrower from him. the question is are they only interested in him because of his big ideas and are they able to convert that into buying cars and can he make enough of them to buy i can tell you ideas are great and get people excited but don't put money in your bank account. >> thank you very much. with just about 35 minutes to go before the closing bell here let's take a look at the major averages. technology staying strong within the s&p. apple is leading the dow. most of the averages are lower. dow is down about 67 points. up next we will speak with amc entertainment ceo adam aron about his hollywood outlook and how the new movie subscription

plan is going so far. and we are counting down to some big names after the bell. we said tesla, wynn, square, u.s. steel and many more. we will bring you instant analysis as soon as they hit. 35 minutes left of the current session.

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♪ welcome back to "the closing bell." what is working and what is not in today's session

technology is a leader. pay pal coming back strong. real estate telecom financials and health care all green. energy is the biggest loser. industrials also falling behind. shares of amc entertainment trading lower despite a beat on both the top and bottom line. some analysts -- and caution about the third quarter box office. >> joining us now with more is amc entertainment ceo adam aron. nice to see you. >> good afternoon, everybody. >> what do you think of the market reaction to what you said on the call? are you cautious about the next quarter? >> it's just the opposite. amc entertainment announced record earnings for the second

quarter, biggest june quarter in our history. our e.p.b.i.t.a. was up 80%. we actually predicted that 2018 would be the biggest year in movie history. we went out on record for the first time saying that 2019 would also be a spectacular year. a lot of great movies are coming out. we are doing fine. you have to remember that yesterday we had a big let up on the stock before the earnings. plus i'm not really concerned about where our shares trade every second, every minute. the real question is where we are trading three months from now, six months from now, a year from now, two years from now. we are as confident about amc as we possibly could be. >> and that comes across from what you are saying. in terms of the box office, is it fair to say thatfor 2018 th

best movies have already come out? >> no. but it is true to say that so far in 2018 there have been great movies. the industry box office in the second quarter april to june was up 22.7%. at amc our attendance per screen was up 21.1% in the quarter. these are great, great numbers. but there are big movies out now and big movies coming. "mission impossible" which just opened as the most successful "mission impossible" movie. disney is coming out with "christopher robins". i know warner is raging about "a star is born." i have seen clips from the new movie "first man" coming out in

the fall about the story of neil armstrong. it's extraordinary. remember, they made lalaland so wonderful. at the end of the year disney is doing "mary poppins returns", the first time in 50 years that we see a mary poppins movie. >> it is a good list. i'm looking forward to the missi"mission impossible." how do you see the subscription service standing up to other rival options and how many people have taken it up? >> we call it amc stubs a-list. it is a v.i.p. tier. we started taking enrollments five weeks ago. we are just stunned of the consumer response. we announced yesterday morning after only five weeks 175,000 people have already incontrenro we are going to cross 185,000

people probably within the next hour or so. they are signing up in big numbers. it's because the value for consumericize s is so good. they can see up to three movies a week. they can book tickets online in advance. they can see any movie in all formats. you can see it opening night. you can see it as many times as ave a great program for consumer just eouers. really enrolling in >> for all of its problems with profitability and the financials at movie pass it is cheaper at $9tte their problems that they are faci do you worry that at the cheap price point which is not a sustainable business model they much less to see so many more movies >> whewe designed a list we

wanted to have a progrt uld be , profitable for our studio partners. as important as anything loaded with value for our guests but with a sustainable price point so that they know our program will be around and rules won't be changed. they can see movies on opening night and i max. we went out at double the price of the price being charged be three competitors and look at the enrollments, 175,000 people in five weeks, 10,000 more people just the next day. clearly people are saying they are voting with their wallets that if we offer a great program loaded with value, easy to use and letting them see the whole slate of movies in the best way they can be seen, they are signing up for this service. >> great stuff. thank you very much for joining us today. always good to have you with us. adam aron.

we didn't get to ask about the recent small acquisition they did with acorn tv. >> what is your favorite british drama? >> downtownn abbey? >> i bet sue herera loved it. >> i adored it. i did adore downton abbey. i can't wait for the movie which is coming out. here is what is happening at this hour. senators on capitol hill reacting to president trump's tweet this morning calling for attorney general jeff sessions to send special counsel robert mueller's russia probe. >> i think that is out of jeff sessions hands. he has recused himself from the russian investigation because he participated in the campaign as we all know. and i think that was appropriate for him to do so. so he really doesn't have any

power to stop the manafort prosecution. it's in court. the jury has been selected and it is going forward. former president barack obama is making good on his promise to use his political clout. he is endorsing 81 democrats in 13 states with an emphasis on younger and diverse candidates. and new york city's mayor bill de blasio reporting for jury duty. in case you didn't know the last time a sitting new york city mayor served on a jury was rudy giuliani in 1991. that's the news update. you are up to date. i will send it back to you, my favorite character was maggie smith. priceless. >> she is a legend. she is fabulous. i think she is just the favorite actress and not just character. >> i think that is absolutely true. the dialogue that they crafted for her was just flawless. >> i was out when they killed

matthew. >> the only reason to watch later series was for her, in my opinion. sue, thank you very much. >> see you next hour. still ahead prices on everything from coca-cola to caterpillar machines likely to go up and the blame is partly placed on tariffs. we'll tell you which products are costing you more. after fireworks wall street will be laser focussed on elon musk's every wd.or we will get a preview of what to expect for you coming up. what do advisors look for in an etf?

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♪ welcome back to "the closing bell." wells fargo anonsed to have to pay a $28 billion fine for misrepresenting loan quality. this was a settlement that dates back to before the financial crisis. wells is the last to make the settlement. while i don't have the full set of numbers here that is probably the lowest of all of them. it was expected to be the lowest. the fact that it has come out 2.1 billion provisioned for is why the stock has rallies. it was utand the fine less or in

line with expectations allowing the stock to rise. the trade war between the u.s. and china continues to escalate. >> it has been close to five months since the u.s. imposed its first round of tariffs and consumers are starting to feel the impact from automobiles to cans of beer, cost govern of gs rising. fred, we haven't seen the threatened tariffs on the $200 billion worth of chinese imports which include more consumer goods like furniture and food and baseball gloves. is this going to get a lot worse? >> it could get a lot worse if president trump goes ahead with this proposal. we will start to see noticeable increases in u.s. inflation as a whole that will push up interest rates. both of those things will dampen

the economy. if he really carries through it will cost a couple million u.s. jobs, dampen the economy's growth, could throw us into a recession. >> but, fred, you are saying it is going to get worse. is it hard to criticize the tactics of the president the moment when the gdp print is so strong and when there has been progress with the eu >> it all depends on whether you think he will get the chinese to agree to a package to reduce duties. it's encouraging that he got an agreement with the european union last week to start reducing duties and nontariff barriers with them. that would be a holy constructed outcome. i hope china will seek to join that party, come in and make a similar offer and try to get things back on a constructive tariff reducing tact in order to head off the tariff increase. the fact that the economy is not strong does not comfort me very

much because if he goes ahead with the tariff increases and triggers a trade war then the future outlook for the economy will be sharply negative. >> but mow reversible is that? there is an optimistic view that maybe some short term pain but there will be long term gain and once they take off the tariffs that there are negotiations and deals made as the president has promised then they can just reverse it all. >> some of this is reversible and some not. once you lose jobs, output, production, technology it is pretty hard to get it back. so as our firms lose production and jobs because fuel prices are up, if auto prices go way up they may not be able to get those back so easily. that was the lesson with automobiles and the japanese. that's what we could see again. so the best outcome is to threaten the tariffs as the

president has, but then come to a negotiated solution to head it off before the diluge hits. >> the art of the deal you can call it if that plays out. one quick final question. is there any risk, do you think, out there from what you have seen. the company's ceos will use the label of the president's war on trade as a cover to raise prices and push it on to consumers? >> they can do two things. they can raise prices. they can also hold off on investments. one thing that the threat of the trade wars generates is uncertainty. it does raise real questions like we are talking about whether any of this happens, if so how serious. it could be very serious if it does happen. that does lead to some hesitation or investment that will slow down innovation and research and development and slow down the future growth of the economy. so i think the second quarter

number we just hit was a spike, a temporary spike in the upward direction. the economy will drop back closer to two percent growth in the second half of the year and beyond this year. that could go down substantially more if companies hold off investing and if prices go up, if the federal reserve raises interest rates faster as a result of the trade conflicts. >> and to be fair costs have been rising not necessarily related to tariffs like poll prices. we'll leave it there. thank you for joining us. founding director of the peterson institute for international economics. the dow is off 46 points off the session lows but it is essentially in the middle of its range today. . s&p is flat. the nasdaq is up half of one percent. >> there is a new delivery service coming to town.

wl lkbo kger's new plan and what it could mean for rivals like amazon and wal-mart. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

welcome back to "the closing

bell." the dow down 47 points. let's check in on individual market movers. shares of pandora soaring today on the heels of earnings. it is up about 15% or so as we approach the close. the subscription numbers are up 65% well above what was expected. advertising revenue did fall a little bit down 2.6. a sign that investors want to value the paid subscribers over the advertising numbers. i still find it amazing that a company like this is not a new business, it makes such a big loss. it's not like it is a brand new startup. it's kind of been around for a while now. there is a lot of competition. if you have this lel of subscribers -- >> michael santoli made the point that spotify went public

pandora has done pretty well. >> we don't know how muce music makes. the fact that both spotify and pandora make a loss is kind of worrying. >> my stock to watch today is kroger. the grocer launching a new delivery service called kroger ship. customers can shop online and receive free door step delivery. you pay if it is less than that. stock is about a percent lower. i did have a chance to speak to kroger's chief digital officer. he said that this is a four part strategy of kroger when it comes to digital and online delivery. it took the big stake in the british automated wearhouarehoue supplier and it is ramping up efforts to compete. kroger has the foot print. it has way more stores, thousands of stores compared to

whole foods only at 450. it sees that as an asset in the competitive edge in a market that nobody is winning because of the entire grocery market only two percent of that is done online. in the next five years it is projected to be 10% to 20%. >> i would say that the amazing thing about this is any of the u.s. supermarkets -- >> we are way behind you. >> all the big supermarkets have their own home delivery services. they have been through this reshuffle. i feel the u.s. is miles behind. >> it is one of the few instances where the u.k. is leading the charge and the trend. >> we made good chips for a while. sgr i thought you meant potato

chips. >> we do. let's switch focus. a quick look at apple's market cap. this is the real time market cap in millions of dollars just shy of a trillion dollars at the moment up 5.7% today. will it be the first company to do it? it is certainly winning the race. maybe it will plateau and let crofan, rs have a chance miost d amazon. >> we will get you the full tesla earnings preview after this. us. it's what this country is made of. but right now, our bond is fraying. how do we get back to "us"?

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a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. after the bell today we will get earnings results from tesla. phil lebeau joining us now with a preview. what are we watching for >> three things to look for. let's start off with cash burn and liquidity level. that will tell us a lot about what commentary does elon musk make about the need to raise capital. what is his commentary going to be with analysts on the call

remember what happened on the last analyst call after the first quarter. that is what we are looking for when the numbers come out in the next 15, 20 minutes and then on the call starting at 5:30. >> phil lebeau having all the numbers. i wonder if an analyst will purposefully deliver -- >> test his patience. after the break we are back with the closing count down. four minutes left of the trade. with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done!

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welcome barks juck. just a minute left of trade. a big pullback on monday and recovered. still down today but up again today and the tech sector is leading. let's have a look at the sectors across the s&p. tech up nicely. energy, industrials, utilities down. net/net it has been a soft day but nasdaq has helped things pick up. the dow down about 0.3%. the nasdaq up half a percent. bob pisani joins me. >> as my old friend once told me today, apple has become an asset class by itself. bank stocks were stabilized. with fidelity now 0% fees for several mutual funds today did

you see what happened to big names? look at blackbalk. a lot of competition for money right now. >> very competitive market. the dow just setting off. the s&p just negative. the nasdaq still higher. stock yards are ringing the bell at the nasdaq and geopark at the big board. that does it for the first hour. sarah, back to you. welcome to "the closing bell". let's look at how we are finishing up the day on wall street. it started out higher, lost most of the games. dow closing down. the big jump in apple closing up almost six percent adding 72 points to the dow not enough to offset declines from industrial names like caterpillar, 3 m and

bower. s&p 500 down. nasdaq composite closing up. russell 2000 index down a 10th of a percent. it will be a busy hour for earnings. phil lebeau will bring us results from tesla. contessa brewer is covering wynn. jackie deangeles will have joous steel. seema mody covering trip adviser. joining us on the panel we have michael santoli, nancy with us and chief investment strategist. biggest winner on the dow was apple by far. caterpillar was the biggest loser. apple is of course the biggest winner, as well.

hanes was the biggest loser. a jump in japanese yields overnight which tends to correlate. michael santoli, let's see how you characterize the market today, slow to panic but hard to excite. >> you took the bait. i knew you would. would you say that applies to me, as well? that is the reason i seeded your question. that is the way it has been. i think today was a mild stowback from a pretty strong july, not really serious selling pressure. it is difficult to gather momentum when the market continues to hold the uptrend. it had the jobs kmb coming out. i think there is a little caution ahead of that. and also there is just the sense of not too many catalysts. >> mark, if we didn't have apple today would we be getting a lot more nervous in terms of whether

the market can get positive momentum behind it >> i don't know if i would characterize it as nervous but it would be a little bit disconcerting. we are coming off a very strong july. some profit taking was probably in order. we are seeing a resurrection of trade threats which had gone quiet and i think helped us stop suffocating the equity market. so some giveback today which to the tune of about 150 points x the contribution from apple makes sense. it would be worrisome if it was feeding off of investors concerns that because the employment cost index numbers and in anticipation of the payroll report that could be pretty good and the fed release of their notes regarding the meeting that perhaps worries are that the fed might be behind the curve and might have to step up the interest rate campaign. >> we had two big headlines of

the day in terms of fundamental news. the federal reserve telling us the economy looks pretty strong. they were more optimistic and upbeat in their kwar characterization. we also walked into a report that the administration is looking at 25% tariffs on the chinese imports instead of the ten percent. how do you balance all of that news as far as what it means for the markets? >> that's a question of the day. look, i think the feds' comments were modestly stronger and more hawkish. so they went from moderate to solid growth to strong. we heard that the policy still is accommodated. so we expect like everyone else does to see a hike in september, maybe in december. our head of fixed income has said no. i don't see it this year. he thinks they are borrowing from next year if they raise in

december. as an investor we just published a piece called climbing the wailing wall of worry because every day it is some new hand wringing angst over a tweet or an earnings report. i was very encouraged by apple because they saw double digit growth in china for the fourth quarter in a row. they reported growth in all their top 15 markets except for japan. and the overall tone was organic growth to the core and growing fast. so i think that's bullish for the value sector in tech. >> we got our first earnings report, wynn resorts is out. >> we have a big miss on the top and bottom lines here. the estimates on earnings per share come in at 153 adjusted versus estimate of 1.96. and on wet revenues wynn resorts

has missed. i want to highlight. the operating revenues from mccau is decrease over the same period last year operating revenues up 56.6 increase. we had seen and had anticipated some pressure from las vegas numbers about them putting pressure on their competitors with v.i.p. business. the conference call is scheduled in a half an hour. wynn had a tough day today. the whole gaming sector did following caesar's plummet. >> thank you very much. caesar's dragged the whole sector down. this is an additional eight percent decline. >> caesars was more about vegas. this really is strictly on the gaming side.

i'm looking at below the line. in other words, it wasn't bookings for lodging and non-gaming revenue. i don't know if that is a larger china consumer story or what it is. clearly that seems to be the pain point for this report. >> how are these stocks in general looking? >> they trade a little bit like china plus u.s. consumer plays. they are very streaky and people get infatuated with the story. i think we are in backup mode here. we have another earnings report, this one on trip advi r adviser. >> i would like to point your attention to shares on trip advisers. trade earnings beat 41 cents. revenue missed wall street expectations $433 million. one key metric to watch is its nonhotel revenue coming in at $120 million. that was an increase of $22 million or 22% year over year

despite a difficult year over year growth comparison. experiences and restaurants has been a bright spot for trip adviser. clearly not enough growth there in terms of what we are seeing in price action. the stock is down about 11.5%. analysts have been citing fierce competition with booking and expedia, the two bigger competitors plus currency head winds has also been a big factor when looking at the online travel space. i should point out the stock has run up really strong in 2018. expectations were very high coming in to today's report. that is why you are seeing the stock down about ten percent on the revenue miss. back to you. >> thank you very much for that despite expedia beating last week. tesla numbers just hit. phil lebeau has them for us. >> it is a loss of 3.$3.06 her

share. the estimates were all over the place. they were moving around quite a bit. in terms of revenue it came in right at $4 billion, just a smidge better than expectations. why might shares be moving just a little bit higher as people digest the numbers $2.2 billion in cash is what they ended the quarter with. 5,000 model threes per week is the rate of production they hit several times in the month of july. i know that is squishy for some people, but that is what tesla is saying andexpects to exceed production rate. tesla shares as you are looking at these will move around a little bit. they did beat the -- they had earnings, a loss of a little greater than expected at $3.06 a share. that was the loss on revenue of $4 billion. we will dive back into the numbers and get to more regarding cash flow. >> and the stock is no longer

up. it is down 1.6%. get back to us, if you would. somewhat your impression of this this is a high bar for a company where the sentiment has really changed. >> i think they have lost the benefit of the doubt a little bit in the last couple of quarters. they will get the production numbers. i think cosmetically what phil hit there all makes sense. revenues pretty much on target talking about 6,000 a week. they do also caution that they need to get several production lines up in order to meet their goals of 10,000 model threes per week. i do think the $2.2 billion in cash at the end of the quarter shows you that the worst fears -- so this call is going to tell you where the stock settles out. >> in the debate of whether elon musk is within his rights to say what he wants on the call versus not, clearly he is an early

stage entrepreneur versus a seasoned corporate ceo. he is a lot more experienced than the likes of mark zuckerburg in their first calls. he is much older than them. does it make them less forgivable >> i think it does. i think the fact that this is a $50 billion company. it's not a cute little startup that is trying to take on the world and this isn't the silicon valley show on hbo where it is kind of cool and rushing to get the product out the door. it is a capitalization with debt on top of it. they are supposed to be figuring out the manufacturing side. i think that for a while it was great. he was a maverick. he was saying all of those aggressive things audaciously. i think right now maybe investors want to see a little more hands on we will prove that we can figure out the manufacturing piece. >> maybe a little less burning of cash. what stands out to you i want to bring in the production of 50 to 55,000 model 3 vehicles in q 3 is what the company is expecting.

is that good enough? >> for me the lack of profitability is what stands out. it was promised in the second half of this year. now he has two quarters to deliver on that. should he come up shy we start to see the acceleration of the burn rate of the cash that exits on the books and/or misses the 6,000 production run. this is beginning to accumulate where it is turning from a face stock to a show me situation. i'm not sure given the valueuation that you can apply. i wonder if perhaps that story will lose a little steam pretty soon and investors are going to turn the other way which will be problematic for the company in a hurry. >> what is your take on tesla? >> we had sold it at the end of last year just because we got to the point where many investors are now which is the show me. the personality quirks were sort of adorable in the beginning and now they are kind of frightening

and irritating y. will s. the burn was expected to be much greater and we thought that would end the quarter with about a billion and a half in cash. the 2.2 is pretty good. and i think it does show progress, but the question remains if it can scale. a lot of estimates are for them needing to raise 10, $15 billion in the coming months and years as they want to build additional plants, i don't know where they will get it. certainly not from the bond market. >> they are facing some legal challenges. i wonder if they will get questions from analysts on the call about the lawsuit filed by a former manufacturing engineer calling out tesla for defamation. i think it is a counter suit on that part. also criticizing some practices including flogged batteries that are made putting into the model 3 and the accounting problems,

as well? >> raising questions about product quality and manufacturing practices and accounting. it's a pretty inflammatory -- i imagine they might get questions along the fronts as well as frankly on the demand side. they have taken more orders from mostly higher priced model 3 configurations. is that really a stealth financing method. a lot of things have been floating around for a lot of time, tremendous battle ground stock. >> short sellers are all over the lawsuits and filings. we have an earnings report on t mobile. >> we have a beat on the bottom line and a miss on the top line. despite that the ceo calls this the best q 2 in company history. you can see shares are trading higher in after hours based on 1.2 million customer net additions. we'll get you the numbers on

e.p.s. they reported 92 cents per share compared with 87 cents per share that the street estimated on the top line. they reported $10.57 billion in revenue compared to $10.66 billion in estimates. so interesting. we will be listening to the call to see what the comments are with regard to the sprint merger which was announced in april. we'll let you know what we earn. >> thank you very much for that. clearly it can outperform in the short term. the big focus remains -- >> the proposed merger will rise and fall with the perceived prospect. i think there is genuine disagreement as to whether it will be allowed right now. the net positive of it -- t mobile does seem to have raised guidance in terms of net customer additions and cash flow and things like that. for now things seem to be going fine in terms of the operating

business. >> it is amazing what a disrupter t mobile has been to the wireless industry which nobody thought could grow anymore in terms of customers with everybody having a cell phone and how they managed to add more than a million customers. >> that success gets into whether they should have this merger. in theory it is great for customers if you have this disrupter trying to keep competition very heated. so that is one of the big questions is will it also remain its power to disrupt and be a competitor if it were three large ones merging with sprint along with verizon and at&t. >> do you think the merger will go ahead >> i don't know. you're asking me to predict what the government is going to do. listen, i agree, it is all about the merger. that was a good quarter. this is an example of a ceo who can lead with an individual flare and not cross the lines. so i like the numbers.

i thought sprint had a decent quarter. i have no idea what the decision is going to be from this administration. >> do you play the sector with so many deals and so much deal uncertainty whether it is the telecom sector or media in general which seems like they are all kind of merging? >> it's a great question. yes, we do. but the issue is what are these companies becoming because they are no longer your grandmother's dividend paying stocks that have st steady predictable business. at&t and verizon are content media companies. the questions labor around can they sustain the cash flow to warrant the dividend structure they have had in terms of their ability to sustain it? will it achieve dynamics as the companies move to the new communications sector within the s&p 500 from the telecom sector?

and along with that, what increased volatility might accompany the stocks that they didn't have historically it is a space in which we have ownership of in the at&ts and verizons as a current income story line. that could very well change as we go forward. >> nancy, just to sum things up, how do you see earnings season shaped up so far is it justifying the kind of levels we have seen close? >> it has been a great earnings season. for the second quarter we had 83% beat on the top and 60 something on the bottom. we aren't seeing the follow through in the stocks. we saw it today with apple. we saw some with google certainly but amgen had a fantastic quarter and it didn't do much. until we get through the mid terms we are going to just see this up and down movement, the lack of catalysts as we talked about earlier in the segment. we are real pleased with where we are in terms of deliverables

and we are starting to hear pushback from management, delays. the numbers about manufacturing have me a little concerned. we are cautiously optimistic but we expect a lot more chop between now and the mid terms. we have another earnings. >> the numbers are in. square's revenues are coming in at 385 million up 60%. it beat expectations of 367.6 million. e.p.s. 13 cents versus expectations of 11 cents. q 3 guidance on revenue is coming in between 407 and 412 million beating expectations of 384.5 million. the company did miss on q 3 guidance on earnings coming in a few cents lower than analyst

expectations of 13 cents. full year guidance coming in above. and e.p.s. also a slight miss there. gross payment volume another metric was a beat at 21.4 billion versus expectations of 21.2 billion. we should mention that caviar is growing very rapidly doubling the second quarter revenue year over year. shares are flat right now. >> the meal delivery service -- it is so expensive, caviar, but they get the good restaurants. >> people -- holders of twitter must be hoping that jack dorsey split the -- >> a double disaster. >> i think former shareholders of e bay if they didn't hold on to square, it has been amazing. i consider square a part of the

junior varsity to f.a.n.g. it is the same dynamics in terms of growth and the stock performance. expectations are pretty high going into it. >> it is pulled back but i think the remarkable thing about the last 12 months is it has continued to perform. even now the big u.s. banks are really fighting back. >> adore the space because it is a growing pie and they are getting a bigger piece of it along the way. >> we'll leave it there. thank you for joining us. michael santoli stays with us on set throughout. tesla shares as we reported are out. the earnings are moving all over the place. they were down a builtit. we will dive into the numbers. we'll have the previews of the earnings call, as well. we have a bull and a bear on the stock. >> it is always a debate on tesla. >> and often very haeated. >> jim grant will be here to

discuss the fed's latest intere interest rate decision. and we want to hear from you. you can reach out to the show on twitter, facebook or send us an e-mail. the osg llacafr clinbe bk tea break.

shares of tesla have been a little all over the place after reporting earnings now jumping to the highs of the after market session. joining us to react to the numbers, he is bullish on the company. gabe hoffman is not. is the big take away for investors and the bulls here the updates to model 3 production and the outlook they are giving for the third quarter? >> that is certainly one part of it. if you look at the cash burn leaving the quarter with 2.2 billion much better than people expected. i think a lot of people are expecting a bigger loss and expecting exiting in the $1.5 billion range. it doesn't seem like it will need to take place. so numbers are a lot better than feared from that front.

i think that is where investors were focussed for this quarter. >> tesla is your fund's biggest short position. it is up six percent. are you hurting right now? >> absolutely not. i plan to add more. the cash balance isn't all it appears when you dig into the numbers a little more deeply. the 2.2 billion in reported cash, 940 million of that is customer deposits. that is it doesn't belong to tesla. so the real cash that tesla has which it owns is $1.3 billion. that is less, substantially less than the current bills due on its desk which soared 400 million to $3 billion in accounts payable this june 30. and finally, i might add that tesla burned all of this cash despite the long term debt increasing a whopping $750 million in the quarter to 9.5 billion. i do believe tesla faces an

imminent liquidity crisis. >> what would be your top question if you are on the earnings call? >> my top question would be can you tell us how you plan to meet your promise of being cash flow and gap earnings positive in q 3, q 4 or is it just another broken elon musk promise specifically talking about margins and what they include and not include in the figure. for example, do they assume that suppliers will continue to extend them credit as they have done an additional 400 million do they assume a lot of zero emission credits those are important questions. >> brad, how do you respond to this idea that essentially from a financial perspective the business model has not proven itself out and maybe they will need to be raising capital and get a bridge to whatever

production needs to happen down the road >> you can make arguments like this. clearly it is not a profitable company. it is almost looking like amazon where you just spending for growth. to me it is not that important to actually hit the absolutely numbers in terms of targets for musk. i think if you are close that is just as good because you are moving in the right direction. they are executing a lot better than everybody thought. nobody thought they would hit 5,000 model threes. numbers are moving in the right direction. is that 900 million extra a part of it. those customers aren't going away and those are buying level threes. 420,000 people looking to buy the car. those are going to be realized. this is all positive for the company. absolutely they need to get profitabili profitability. will it happen by the back half of the year? if they are close enough investors will give them the little room. >> both sides of the debate,

thank you very much for outlining it for us. of course, the call still to come. we have another earnings result. >> a big beat for u.s. steel at $3.61 billion in revenue. on the bottom line a monster beat, $1.46 adjusted e.p.s. that is a 33 cent beat. joous ste u.s. steel will hold the conference call. when it comes to the steel companies, the 25% tariff on imported steel is supposed to help domestic companies so it levels the playing field and they can do more business here at home. when we sat down that is what the company told us they expected to happen. that was a restart facility there. it appears if you look at these numbers that things are certainly better. the one piece of information from the release that we got today, the company is benefitting from higher selling

prices and also increasing its epita guidance. analysts like that, as well. >> quick comment. this is finally a beneficiary. >> definitely a ben fieficiary this quick step price function. i will say u.s. steel shares are still ten dollars below the march high. >> we have some breaking news on the topic of tariffs. we have those breaking details. >> we have confirmation that the president has asked the u.s. trade representative ambassador to study a tariff level on imports currently slated to be on deck for potential tariffs at the end of this month. in a briefing call with reporters two senior administration officials declined to say exactly what the

catalyst was for the president's desire to ratchet up that level. they wouldn't comment on whether it had anything to do with china's recent devaluation but they did say they are continuing to evaluate the tools that they have in the trade fight against china and signaling they needed stronger tools to get china to change the actions. the officials said there were no current talks planned with china and the president remains open to speaking with his counter part and that they are discussing whether there is any opportunity for future engagement and whether such engagement is appropriate. because they have raised this level and because there is a comment period open where companies and stakeholders will be reaching out to u.s. and telling them what the impact of the tariffs would be, the officials said they are going to be extending the deadline for evaluating the tariffs from august 30th was the previous deadline for final comments, the earliest possible date that the tariffs could go into effect.

that will be extended to acce september 5 as the president asks the u.s. trade representative to consider possibly raising that tariff to 25% from 10%. >> we need a tariff calendar to keep it all straight. the fact that they are doing these public comments and they did this with the auto tariffs, as well, does that matter? as i understand it of the 2,800 or so people or companies that weighed in on the auto tariffs, most of them were against it. it doesn't seem to necessarily matter when the president seems to make the decisions on a whim or based on how the negotiations are going. >> in that instance that is sort of a blanket tariff on an industry where the industry will say this is going to hurt us. this is essentially a selection process where the u.s.t.r. is going through item by item

figuring out what items should be on the list to get to a total aggregate number of $34 billion in exports or $16 billion in exports or $200 billion in exports. they are actually removing some products from the lists based on the comments that they are getting. but the question remains once you get to a level as high a 200 billion it is almost like it is everything but the kitchen sink at that point. so certainly a lot of companies that are lobbying the administration to be left off this list might not get that wish granted this time around. >> in terms of the market reaction, yesterday we got a bit of a rally on hopes that things were going to ease interms of positive developments between u.s. and china. this kind of puts that to bed. >> this morning there were indications that perhaps we would be applying a higher tariff rate to the 200 billion. i think it has been a noisy environment when it comes to

trade. investors don't want to see this idea of just kind of more offense behind offense in terms of the tariff values without a process being in place for negotiation. i think right now the money is not really pricing in anything specific. it remains the kind of background potential risk more than it is something to react to in real time. >> let's bring back in founding director of the peterson institute for international economics. thanks for coming back on. we talked to you about this prospect of raising the tariff rate on $200 billion worth of chinese goods. if the administration is trying to put the pressure on china to come to the negotiating table or start to make concessions is this going to work >> it should work. the chinese should realize that actual implementation of the tariffs would be a very good cost for them, a very bad deal

for the world. the problem is it would also be bad for us. the chinese would retaliate. our economy would be hurt and not helped and there would be no gain for anybody. hopefully the chinese will respond to the second part of what president trump said today, his willingness to talk about the issue. the precedent here is europe. when the president threatened europeans with auto tariffs, the europeans came to the table when they were here in washington last week. they agreed to negotiate trade liberalization, zero tariffs, all that is underway and will move trade in a positive direction rather than negative. i hope the chinese will join the party. if the chinese do the right thing they will now say they are willing to put their serious trade barriers on the table, talk about reducing them, head off the risk of putting in new barriers, otherwise the chinese will retaliate against us.

the united states will not gain. a trade war would tank the u.s. economy, raise unemployment by a million people or more, cut economic growth by a significant amount and really be bad on all counts. >> would it tank the chinese economy by more than that? i mean, at 6.7% growth perhaps they can stomach or would it be much worse for them? >> they would be hurt more than we would in absolute terms, but as you say, they come from a much higher base and could afford it. in addition, they are much more flexible in engineering offsetting measures. the chinese government has power. they can expand their stimulus measures, more fiscal spending, more bank lending from the central bank and others. they can offset any adverse effect as they are already doing. so they can compensate much

better than we can. they come from a much higher base and in the event it is silly to talk about who gains or loses more from trade wars. everybody loses. as i said, the u.s. would lose substantially. we do it at a time when our economy is going to be slowing down. the growth we just reported for the second quarter of this year is a high water mark. it is a spike. u.s. growth is going to be dipping in the second half and dipping more in 2019 and subsequent years. if we add to this with a trade war it will hurt our economy substantially more and push it down at a faster pace. >> where is thefirst place you will look in the markets tomorrow to see whether companies are starting to price us in? >> right or wrong it has been the caterpillar boeing trade and to some degree the auto stocks. there is a lot more going on with those. that is where you would look for evidence of this anxiety

building. again, i think the market doesn't want this to become something where the president sees it as a political winner just to seem like you always on offense and putting more pressure on the chinese whether it leads to an agreement or not. >> the other place to look is intrasensitive stocks. a trade wr would mean substantial price increases, higher inflation and higher pressure on the federal reserve to raise interest rates. interest sensitive stocks like housing would also be effected. >> perhaps why the dollar has has been higher on trade war headlines. thank you. our thanks to kala for bringing us the headlines. facebook launching a new tool in to curb your time using its apps. details on that and the latest attempts on voters on the social giant coming up. a little bit of, it really- it rocked our world.

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and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life. facebook deleting accounts possibly tied to an effort to interfere in the u.s. mid term elections. julia boorstin with the details. >> facebook identified a coordinated political influence campaign. facebook shutting down 32 fake pages and accounts focussed on divisive social issues with more than 290,000 follower business tween them. facebook saying whoever set them up went through greater lengths

to obscure identities. here is what facebook's ceo said. the national urban league conference today -- >> security is an arms race. we get better. they get better. we get better. we are up against very well funded adversaries not just for us but for all of the companies. that means we have to do better. yesterday's announcement showed that we are more quickly finding things. we want to continue to improve. >> this is just as facebook rolls out rules for people to manage time spent. to track how much time they are spending to set reminders to get off after certain amounts of times. with facebook under scrutiny for so many issues from fake news to hate speech the company is trying to get ahead of potential negative headlines. >> great stuff.

thank you very much. let's get a check in on tesla. they reported earnings about half an hour ago when shares have been trading nicely higher. that conference call scheduled to start in about an hour's time. fast money will have all the details. up next, we will have the nfghlights from the wynn resorts coerence call as stocks sink down almost seven percent. is the fund built to sell 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.

another earnings report. >> young china operator of kfc and pizza hut in mainland china. young chin yum china missed on the top line. comps down about one percent compared with street estimates that they would be 2.5% higher. kfc flat. e.p.s. at 36 cents a share versus 33 cents a share after slipping about 11% per this year so far. yum china down a little bit in the after hour trading. back over to you.

>> thanks very much for that. shares of cvs down more than eight percent over the past week after reports of sexual misconduct surfaced. cbs reports earnings after the bell tomorrow. we will preview results. you always pay your insurance on time.

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♪ ♪ keep your most valuable insights hidden from your competitors. the ibm cloud. the cloud for smarter business. we have a news alert on apple. josh lipton has the details for us. >> apple has a new share price

bogey to hit the $1 trillion in market cap. the company just revealed an adjusted share count due to big buybacks. the trillion dollar per share price is now 207.05. we are not far from after-hours trading after that earnings report. we are now at 201.70 wilf, back to you. >> thank you for doing the math for us not too far off, mike. >> not too far off, but farther, though it shows you apple is working against this race to a trillion dollars and it keeps soaking up shares. >> maybe that's not one of his biggest goals. >> not a big priority, it seems for tim cook >> shares of cbs have taken a hit over the last week after alleged sexual misconduct by les moonves. moonves is reportedly expected to be on the earnings call >> let's bring in abr and what to expect tomorrow

b. riley fbr what do you think he'll say? >> i think if he'll talk on the call in keeping with what he's typically done, i would expect him to not address anything about the investigation into the allegations in that magazine story. you know, citing an ongoing investigation and to focus on the business there might be some general statements about workplace kind of culture, but i don't expect there to be a deep dive q and a and nor do i think it would be appropriate on an earnings call. >> you don't think there would be questions on this topic given how much the share price has moved based on the expectation that whether he would remain as ceo or not does he intend to fight this tooth and nail and does he want to stay on as ceo? >> well, look, this is a he said/she said debate between

individuals, and none of us, none of the investors and no one on the call really was there i think that they've been assigned an attorney, you know there's nothing that -- that you know, i think, would come out of a q and a with investors it's clearly an important issue and you have to address it i don't think the earnings call is the format to do a deep dive in the allegations with the magazine article and clearly, those are important. >> just quickly. if he comes out and says i intend to fight this no matter what i believe i'm innocent and i will remain long term as the ceo. would the share price jump because it's down 10% or so based on the risk that he leaves >> look, i think that whatever he says about his, you know, defense of these allegations, i think it's less important than what comes out of this investigation. so, you know, the fact that he's still there tells investors and in his statement he tells people that he does not agree with all of the allegations in this

article. so i think it's going to be really important for the investigation. that's going to be the main thing and not what, if anything, he would say on the call >> we'll see how it goes, barton thanks for weighing in barton crocket b. riley fbr. shares are currently lower we'll get some of the highlights next thstk de ocisown 8% in the after hours. the smoother the skin, the more comfortable you are in it. and now there's a new way to smooth.

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from the wynn earnings call. afr urinck, of course, plungg tehos. don't go anywhere.

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and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. shares of wynn are plunging significantly. the earnings call is under way contessa brewer has been listening to it and joins us with the hiels ghlights so far. >> there are misses on the top and the bottom lines wynn gets the majority of the revenue and wynn macao, operating casino revenue, property and ebitda, you know, the earnings were all down 18%

wynn palace in macao as well as las vegas revenues grew, but not enough to offset the losses. as i'm listening to the call here, the ceo is blaming the world cup which took activity and attention away from gambling and also blaming other macao operators. >> our competitors neglected the vip market during the downturn and many of them got back in the game in the last six months with new rooms and new credit creating incremental competition for vip. >> revenues are bouncing back in july, up 20% growth there and he's mirroring what we heard from caesar's ceo saying they're looking at events causing problems in las vegas for july and august, he said revenues there would be roughly flat, guys. >> okay. down 7%. thanks, contessa, more to come on "fast money". >> let's get a quick, final check on tesla because that will be the story of the hour with the conference call, mike, what's going to be the key here?

>> they can get any confidence in these production targets and also explaining the cash burn and the whole deposit situation with a lot of these customers. >> and can he keep his cool? >> i hope there are at least a couple. >> the tone -- >> he's gone after analyst, short sellers and the media. >> there we go we'll see. the highlights will be on "fast money" which starts now. "fast money" starts right now live from the nasdaq marketsite overlooking times square i'm in for melissa lee, pete najarian, karen finerman, not a fireman. >> i've been called worse. that's okay. >> it's been a while since i've been in the seat. >> and guy adami the stock racing toward a trillion dollar market cap and the first u.s. company to reach the landmark and you won't believe how high and some analysts think it could go plus, it's a wynn fall