on "squawk box" tomorrow, big lineup from jackson hole we'll hear from st. louis fed president james bowler i like all those names make sure you join us tomorrow right now it is time for "squawk on the street. ♪ good morning and welcome to "squawk on the street. i'm david faber with jim cramer, leave from the new york stock exchange carl quintanilla has the day off. a look at futures as we open for trading in a half-hour from now, you can see -- what do you think that is? >> mixed >> how about european markets, you ask? were they mixed, as well we'll find out, won't we

and the answer is -- yeah, they were mixed. the ftse the biggest loser at this point you can see -- actually, excuse me, italy, the biggest loser ftse and france up 10-year note yield around 2.8% i'm guessing that's where we are right now. not much changing this week. as for crude, it is down after what has been a recent rally -- >> we're trying to figure out if saudi arabia's on or off they bring the deal public, then they have to pump like mad to make the quarter reuters does the story, "new york times" picks it up, says the deal is off. now we hear that the deal is on. >> i did a story yesterday -- >> you were on about 24 hours yesterday. >> they said they were still committed to it. but the focus is on doing that chemical deal, selling a stake of it to iranco, the fourth largest petrol chemical company in the world that's their focus

but after yesterday's flurry of reporting they are still committed to it. >> former dow ceo is involved in there -- not there right now >> he is very involved with the kingdom. to our road map this morning aside from talking about oil, that tit for tat trade war the bull market rolls on, the u.s. and china hitting one another with a new round of tariffs that had been scheduled to go into effect and they did but meanwhile they are still talking in washington. plus, president trump's market warning saying if he is impeached, stocks would fall and, quote, everybody would be very poor. that includes you, cramer. alibaba shares climb premarket. the chinese tech giant reporting surging sales. also had big gains in mobile we'll focus on the quarter markets are trying to shrug off concerns about trade as new

tariffs kick in, the u.s. officially imposing another $16 billion tariffs on chinese goods. they retaliate with 25% tariff on american goods of the same amount, this all despite ongoing low-level trade talks between officials in both countries that began yesterday trying to move us into the better territory we'll see if we can get there. our conversation is going to be very similar to the one we've been having. these tariffs were planned, they've gone into effect the chinese are run out eventually given the $30 billion that they import from us, where we're as $500 billion-some exporting. >> we're a consumer country. not an export country. people keep confusing that i think it is one of the reasons why people don't understand why the market goes higher because two-thirds of the economy is strong and only one-third may be in question the two-thirds are going to

trump it >> that's true though all of this being done because of jobs, i thought there was an interesting juxtaposition on our air yesterday where we had jackie diangeles where commerce secretary ross was at an aluminum swelter applauding the fact that they are adding jobs at the same time kate rodgers was at a kcompany that makes be kegs that was cutting employees because they are getting undercut by the chinese because the cost of metal has gone up. >> i thought the whole narrative was very confused. i think steel very strongly is an industry that still has the possibility of returning to some degree of glory. >> why is nucor down >> they've been down endlessly credit suisse this morning questioning about the whole complex. >> if you had given me any name that i might have said, there is a simple straight-ahead beneficiary of tariffs on

imported steel >> last quarter was excellent without the benefit of the tariffs. it is counterintuitive i don't have an explanation for it i don't think the ceo of nucor has an explanation for it because numbers are going higher other than they believe world trade is going to stall. we dropped out -- we've lost 90% of our jobs in aluminum during this period so bringing that back would have been equivalent of bringing back, say, furniture. these are things that we don't make anymore i believe that these industries -- like my father's industry, gift wrap. they were targeted and destroyed. we used to be -- furniture was going to be -- was an american industry look at ethan allen. now they make it here. but david, last year, laura alpert, the ceo of williams-sonoma identified up to $200 billion in tariffs, 15.15%

of cost of goods sold would be impacted they have worldwide supply dh chain. they're switching. if you're china, and you saw -- take the keg issue you saw a lot of companies switching sources out of china, it would be -- it would be something that president xi should worry about since they have $500 billion to us and we have one-fifth to them >> your point being that the impact on the consumer may not be as great, if all the tariffs go into place, including the threatened additional -- >> i'm not saying "may not." i'm saying "will not" be we're not idiots they're sourcing worldwide >> i still come back to the question of jobs, whether or not it is -- where it is going to be harley-davidson is another example. be great to be able to keep track. >> i don't think it is about jobs >> what's it about >> i think that's a kennard.

i think it is about intellectual property, joint ventures and 2025 which peter navarro taught me >> but that's in some ways a different conversation than the numbers versus the -- they're stealing from us and -- because i'm talking about -- sorry -- that they have -- they're taking money from us in the sense of just looking at numbers. >> we stupidly talk about trade balance because it is very easy, not a complicated story, very easy just go from one mill to another, one place in the country where slacks cost more that's not the story the story is about economic longevity, about who is going to be the most powerful country over the next four years -- >> and who is going to undermine the future by stealing intellectual property. >> it is about intel in china. it is about micron in china. it is not about luggage. but we make the story wrong. why do we make the story wrong because we try to make it, as good journalists, you troo i y o

make it, what does it have to do with the consumers the president's advisors are far more thinking about the notion of where china is in the world and how they're getting there by stealing things from us. and you know what? it's perfectly true. it is both a left thing and a right thing. elizabeth warren will tell that you. >> there is no shortage of people who will tell you that we're doing what should have been done some time ago and we are finally at least trying to -- >> on the left and on the right. >> yes now, whether or not this ends up in a place that's beneficial for the u.s. is still unclear. or what the win really looks like or whether there is a deal to even be made i think is still unclear. >> but elizabeth warren said something interesting to me. that you canning about the interests selling out america. large corporate interests selling out america. that's exactly what navarro is talking about, that the large interests sacrificed our workers on the altar of prep on the altar of gillette and i think when i hear the left

and the right agree on something, i tend to take it seriously. >> speaking of china, it is worth talking about alibaba. the stock, by the way, has been used to a certain extent for a proxy for how bad or better tensions are between china and the u.s. the stock is rising in the premarket because the chinese e-commerce giant posted better-than-expected revenue for its june quarter it was up 61% from a year ago. mobile also increased monthly active users, as well, came in at $634 million. that's up another $17 million from the march quarter core ebitda was better this is the toughest comp of the year because i think they were up 65% in that year ago quarter. so there had been some concern going in 12.7% ebitda growth, you added users. overall, very strong report. >> i think there had been a sense that tencent was the

prelude to be worried about this that was a mandated shortfall by the chinese government that did not allow them to make money on certain games they could have made money on. it was not a good analog to alibaba. i do believe people think at some point the chinese consumer has to slow down and that's the worry for president xi everyone thinks president xi's invincible, not unlike chairman mao. you know chairman mao was not invincible. remember the capitalist rotors came in right after. >> communism hasn't really worked out worldwide >> he killed a lot of people >> he is a mass murderer >> oh, yeah. >> he was a mass murderer. >> him and stalin. >> stalin was a mass murderer. obviously hitler was a mass murderer mass murder and communism, we have to be against those things. we don't want to be complicit. sorry. it's not a democracy

it wants to steal our jobs it is not a trading partner. now you can say that the president is a little bit too the left of me on this i would tell you, he's been since 2000 >> asfor digital media and entertainment revenue of alibaba, it was up 46%, i'll have you know. they were also talking about sports programming, interesti interestingly, on the call as well i don't know if we have it, but they talked about the importance of sports rights and sports entertainment online in terms of their focus on that. i thought that was somewhat interesting. >> that's possibly negative for disney >> if we see increase in demand in sports content and providing comprehensive digital media offering >> will they find disney's competitive? >> maybe they'll go after the nfl rights who knows? >> wouldn't that be something?

at one point they talked to google about getting the full nfl rights why not? yahoo! got the sunday morning web league game. i'm going to it. >> yes gets you back to like cbs and the nfl which is come being up in a few years everybody's like, what is that going to cost? >> did you see that -- >> something like 70 of the top 100 viewed actual programs last year were nfl games? >> is that true? i did not know that. >> yeah. according to nielsen data. fewer people are actually watching overall tv. >> live tv i still believe espn insider went to espn plus. you know i am a huge believer in the espn plus. >> i know you are. i noticed you added disney to the charitable trust >> i did because i think that disney and comcast, i believe very strongly the narrative will change very radically now that there are fewer cord cutters and than espn -- all those new games that

they have. i want to see the games. >> fewer cord cutters? i know it's slow >> cord cutting, you're going to this >> these -- your kids, they're not ever going to have a subscription to cable. >> i'm still paying the cable bill and they pulled out the cord >> that's really silly >> i think that's an ill-advised stand. >> i agree >> but they're millennials you think they listen to the parents? first of all, they didn't pick up when i complained -- i texted -- i texted and they sent me emojis. emojis for basically like stop bothering me, dad. coming back to alibaba we tend to sort of weave in and out here talking about the tensions between our two countries, reminding people business is focused on capturing the chinese domestic consumption opportunity, less reliant on chinese exports. they believe the chinese

government policy will continue to support imports, rising demand of chinese consumers. and -- >> it's political, david >> trying to make it clear that 90% -- coming up, a story involving tech giants apple and facebook we'll fill you in. also ahead, capitalizing on content. sports talk. hey, we've been talking sports here we'll have mike francesa, he's launching a new app. he's ringing the opening bell here here at the nyse. we'll talk about the nfl and those rights another look at futures, 15 minutes to go before we get started with trading a lot more "squawk on the street" live from post nine. ♪ ♪ build and run apps anywhere you like, while keeping your competitors at bay. the ibm cloud.

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he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. busy morning for retailers williams-sonoma, children's place issuing upbeat guidance along with stronger than expected quarterly results and comparable store sales nordstrom moving higher after late yesterday it authorized a $1.5 billion share buyback program. l brands though is down. the home of victoria's secret issuing current quarter guidance below forecasts overshadowing better than expected quarterly

results. it's been a tough story, l brands i mean the story of the week has been the strength of the consumer overall we've talked about it so many times, whether tjx, then kohl's, yesterday target or even lowe's but l brands i guess -- i mean ventures into territory i'm not that familiar with because i don't shop for bras. apparently there was a good margin on them and they don't sell as many of them anymore at a high price >> in an interview a few years ago, 99% of the customers are women. it is just valentine's day, christmas it gets some men i'm very troubled. they lowered the four-year guidance for the second time this year. pink, which been on fire, now negative, senior management switching people from are bath and body which has been the good part to other ends victoria's secret decline in bras was partially offset by

panties and sleepwear. merchant margin decline bad. david, to say that they're in trouble is to be a little bit -- >> run by one of the greatest merchants of all time. >> absolutely. >> 80 years old. but here is the problem. the problem is that you have to keep up with the times you have to spend a fortune like laura alpert, a fortune like lowe's is doing. like costco which is doing on its own. it is difficult to compete against amazon a lot of what these other companies do are algorithmic they figure out what people want and they give it to them leslie wexler has famously said it is the eye of the merchant, if you can intuit what they want i think the lesson of amazon is, you can't and machines are smarter than people. it is no slight to people -- the machines are looking at

what's -- what your preferences are be with then pushing more to you. that is actually logical so i think leslie is behind the times and it is a big issue and they don't have a great balance sheet. bath and body works -- >> les is going to be doing more with victoria's secret i revere les i remember when the old days limited made people fortunes but david, if you do not keep up with the times, if you could the no spe -- do not spend, then you get jcpenney jcpenney is a really sad story we did not get to williams-sonoma. >> they really killed it >> we will -- you like doing children's place sometimes in mad dash >> it is heavily shorted i think the shorts are weighing on it. i wouldn't bet against alpert.

we'll count down to the opening bell with nine minutes to go. look at futures for the last time before the open right here at the nyse. we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

♪ six and a half minutes to go before we get started with trading. time for a "mad dash." we were just mentioning children's place >> okay, david williams-sonoma, 24% shorted next to that, children's place

20% short interest if i were a short seller in this, i would be upset why? because they did a 13.2% quarterly comp, one of the best jane alpers is a great mer charnt look at what she's done. they were under assault from hedge fund at one point. they've made some changes. think jane's brilliant admittedly, my wife knows her and my board is on the board of bucknell jane's very giving to bucknell but here's the mr. em. the shorts somehow are saying this is not a great quarter even as she said that this month that the momentum has continued in to august with a great back-to-school number. i think, look within maybe some people are saying it is not sustainable. i saw a note by kimberly greenberger saying that kohl's is not sustainable but she's got a price target that's about half the price of kohl's.

retail is good children's place is excellent. they've been doing well. >> with that kind of a move over the course of one year, 142% you can understand why some people say the 13.2% comp -- >> right not sustainable. i'd look at it, sales were a little bit punk right here it's re-accelerated. why is williams-sonoma like that it is 52% online and they use brick and mortar as just a showcase the big move here was just gymboree failure lot of companies benefited i understand the shorts are going to be happy about the idea it is not sustainable but the longs have to feel emboldened. a 13% comp is now maybe the best that i've followed best comp of this year

>> to put it in perspective versus target which was over 6%. hadn't seen that in a long time. let's get an opening bell here in a few minutes and get right back to following stocks on "squawk on the street." ♪

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you're watching cnbc, "squawk on the street. the opening bell one minute away time now to ask you what the key to this market is, as in what's the focus and what should it be today in terms of how things will move along in trading >> okay. this is an important story honeywell's breaking up. >> yes, to a certain extent. >> what i want to just explain, they put out what's called form 10s today which is what the new companies will look like and when they broke them up, they raised numbers on the break-up i think this is impactful also for the dow.

[ opening bell ] >> when you think -- i mentioned disney i was not being facetious. will the chinese decide they don't like that deal chinese -- china very big -- >> i have no insight to share on disney's need for approval there be with which they do of course to complete the fox transaction other than they were confident they would accede said approval. there's the realtime exchange at hg here at the big board, we'll talk to mike francesa. >> facebook's up again, david. look at that

facebook just got nailed for another thing that they were doing. >> apple pulled a -- security app. >> mark zuckerberg, no compunction. you can be competitive and magnanimous. >> why do you say that >> this is how facebook squashes competition from start-ups i just -- this is about the apple tip. i just find that he's not among the council of people out in the valley when you get off the desk -- and i go out to california quite a bit. >> yes, you do one of these days i'm going to join you >> you say, listen, who do you not like it's always zuckerberg how about sheryl sandberg? no zuckerberg doesn't play by the rules. doesn't play by the rules. i think that's one of the

rules -- >> the unwritten rules >> unwritten rules >> not the written rules >> unwritten rules that we're automatic here to do well, to do good, to make money. he's not xacharitable does not mean if you met him on a given day he would be engaging but a lot of people made their money doing things that are unethical. you know i am talking about major ceos, david. i'm not going to mention any names. but everybody who watches knows who they are and they are adamant -- any are adamant that they wish that he had played the game differently they're immune the board of directors never said a thing >> he does control the company >> he got away with -- we talk about musk every day he didn't get away -- when the pulitzer prize reporter goes to see zuckerberg and zuckerberg cries on stewart's shoulder, then i will praise facebook. >> that's not going to happen.

>> no? >> no. >> can he cry? does he know how to cry? >> i don't know. it is an interesting question. judging from his performance in the congressional testimony -- >> you use the word performance. isn't that interesting >> didn't you hear that they had set up an entire -- >> war room? >> the only thing i hear is he actual within the company itself is so focused on facebook and sort of views almost instagram there as a cultural divide still even though it is part of the same company, they're competing. he sees it as a competitor >> wouldn't you love to know what he really feels >> what do you make of some of the departures i was talking about facebook this morning with one large fund manager who mentioned that departure of daniel rose he's not leaving any time soon

julia boorstin reported on it yesterday. i think not the end of the year or next year, going to hawaii, basically changing his life. but there have been some departures >> i think instagram is incredible the advertisers have not gone away from instagram. fo facebook's good. billions of people can get online i just don't know whether that culture, david, is the culture you know that they have younger -- they have dorms you can get right to -- the computer scientists -- i had john kerry on last night just really brainstorm. let's freely associate and brainstorm he wrote the best business book. >> i read it months ago already when it first showed up. >> he talks about the stanford culture. mark zuckerberg shares my alma mater, didn't look that good in the movie, frankly

i just think that the stanford call today, they love to recruit from stanford computer science that's not necessarily a bad place. a lot of good people went there but i think there is an insular culture. i think they were out of touch i think they said, listen, if you're going to go post things, we're going to do things with you. why not? we're going to sell you out. has apple ever sold you? say you signed up for an app and had something to do with baseball and mlb said give me that person's name, i'll pay you 10 cents you think tim cook would ever do that i think he would rather die than do that. >> judging on his public comments on those kinds of things, no, i don't think he would. >> who would give you up baseball baseball, david. baseball >> you are developing a decidedly negative thesis here in some way.

it doesn't necessarily seem related to the performance of stocks >> i'm waiting for some altruistic aspect to facebook. just because i think the stock's going higher, sometimes it is okay to have a conscience. i am not just a dollar sign represented by a man though people have been saying that since i was 24. when i was at goldman i confessed i was just a dollar sign represented by a man. i am not the dalai lama. that last book, killer what's so funny? >> i've sat across from you for a long time. you still surprise me. >> dalai lama, he says happiness is more important. you get happiness first, you can do a lot of good things. okay, chief? >> am i chief again? you chiefed me

>> i didn't sparky you i didn't sonny you you're still on my good side. >> sellout facebook is selling everybody out. >> they think that's the business chef's chosen >> godfather reference i got it >> i haven't had one in weeks. >> without even carl here telling me alibaba's up, a little less than 3% more or less where we thought it might be there's alibaba. >> the consumer value -- campbell's soup. strategic good deal. i read some pieces that say on a

takeout it is worth $50 but if you buy it on an earnings basis, forget it, you will get hurt >> if they don't actually put this company up for sale then you make an argument the stock will weaken. i don't know what the outcome of the strategy ic review is goingt be it is going to be released next week, a week from today? >> yes >> we'll see all i've been told is it will be interesting but i don't know dan lobe is in there, aligned with one family member but you have the strange scenario under which if they don't do what those guys would like them to do which is put the company up for sale is really what it is about, you conceivably could have a fight for the board of directors which would be fascinating because the whole board is up. there's no staggered board yet even if you were to boot the entire board, let's say have this all-out proxy fight where you won, it doesn't mean that the family still won't prevent a deal because they'll still have

a significant steak, 38% not counting the guys against them as this point as part of the family so could be very interesting but it won't start for a week. >> did you read the uvsps today? >> i did not >> they said that $50 option value -- this was interesting. starts off by saying john dorentz, their soup tureen museum in camden my god the tureen museum? in h there is a history. ki >> the family enjoys their place in society certainly lobe might argue that. they are not particularly good stewards of the company in terms of its future. >> no.

i can come up with absolutely nothing. advanced microcontinues to go up stock's up ten points. it is time it is time >> you have been an unabashed supporter of amd >> the only company that has hotter chips than they do is the gpus made by jensen wong andrew wright from left -- >> andrew left >> he came on "fast money" and he did say he covered most of his position a lot of it is this new product that's faster, better, uses less power. less heat. jensen wong is a visionary he couldn't be bothered with that last conference call. he's too busy thinking >> he would never sell anybody out. >> he would never sell out anyone he's no johnny o >> here's another guy who will sell anybody out, pisani, he's

on the floor with more of what's moving this morning. >> good morning, guys. mixed market overseas. europe generally down slightly asia generally up slightly weak open here let's do the china tariff dance. we've all seen this before we got china tariffs we got the dollar moving to the up side. you get mining stocks that move down you get energy stocks move down. you get emerging markets move down this is all very familiar story to all of us who follow this you get more movement in defensive names so health care was up early on. it is flat here. utilities, real estate tends to move on the up side, all very familiar let's talk about the new highs because this isusual market gyrations and discussion about where we go next good news is we talk to our friends at kensho about what happens when the s&p, mid cap and small cap all hit highs on the same day that happened the other day. this has happened 12 times since 2005 generally the news down the road is pretty good three months later the s&p is up 9 out of 12 times.

it is up 2% mean s&p's up 3.9%. that's the mean return generally these are good signs short term for the market. of course now predictably a lot of strategists, technicians are calling for a pause. there is a number of people expecting garden variety corrections down the road of 10% or so. very typical j jpmorgan jason hunter this morning had a comment out, regardless of whether it develops as the result of an adverse geopolitical headline over the near term other after a more substantial rally to the targets listed above we expect an eventual correction within the maturing rally structure that means they expect a small decline of 10% or so bulls are hanging the rally on very simple rotation this has worked all year why not stick with the rotation theme. there is some rotation going on. we keep talking about this value versus growth story. generally it is still true in the last month value stocks have slightly outperformed growth stocks. this is a very tricky

proposition. just even defining value versus growth stocks. but in general, if you take a look, what we would call value stocks have somewhat outperformed in the last month, two months depends on what time frame you are looking at value stocks are typically things like pharmaceutical stocks overall that are doing well you'll also see individual names in certain groups that are doing well we talked about merck hitting new highs. lilly hitting new highs. retailers often are there. consumer staple stocks like kroger and clorox have been doing a little bit better. so traditional value stocks have been outperforming the bulls do have a little bit something to hang their hat on that value is still an active proposition when technology weakens. we haven't resolved anything it is just so far the value proposition is working finally just a quick note on alibaba. the guys were talking about it these startling statistics here. we throw around a lot of numbers here revenues for alibaba up 60% in a year this is a company with a $450

billion market cap imagine that 60% is startling number. even more startling, i saw that active customers they increased it by 110 million to 576 million active ustomers 110 million is one-third the population of the entire united states they've added as customers in one year i find that a startling number, as well. david, alibaba's just about flat on the year but sometimes it is worth pausing to look at these numbers and say, wow, that is really something david, back to you >> you are right, bob. those growth numbers are incredible as you say, the maus, 634 million. that's a pretty big number bob, thank you coming up, veteran sports talk show host mike francesa, he's launching a new app but not a new etf. >> no? >> we'll talk to him about that. usually when you show up here you got an etf he's got an app. he'll join us as post nine to discuss. the media content, nfl, and much

more a look at treasuries this morning.

♪ here's a treat people who love sports and they love business are rare to find and we have one. we have talk show host mike francesa rang the opening bell here today at the new york stock exchange he's launching something that's going to change your morning and my morning an app called mike's on. it is available tomorrow he joins us at post nine, the legend, mike francesa. mike, i just have to download your app because i hear that the 9:00 to 12:00 before the game, you're back. >> that's right. >> but only on the app >> starting on the 9th, regular

9:00 to 12:00 every week first let me say hello to you. we've never met before i watch you every morning. you do a great job cramer, i don't want to hear about the eagles but no first, app be out tomorrow mike'son.com, itunes or google play the sunday morning show will be there. we're doing a college football show the video of regular 3:00 to 6:30 f.a.n. show will only be seen on the app, the video also the immediacy of this -- every big event, whether a world series game, playoff game, football game, i will be on before the game and after the game live. live on the app. >> ro said you're happier when you're working so go back to work i was off for 4 1/2 months

she said go back to work so i did i intend on working a lot on the app. i'm looking forward to it. i like the immediacy i like to be on, something breaks, i can go on 7:00 in the morning, 9:00, i can go on 2:00 in the morning and i will i can0 in the morning and i have an alert that says mike's on. >> why i love to listen to you, i should tell the truth. and there isn't anyone you spare 679d wi will you be even more prone to tell the truth >> earniverything i say on the i will say on the air. we're going to partner with some companies which i can't name yet, but we're going to do some stuff, new york hasn't even gotten on board yet and that is going to be enormous

it's going to take a couple of years. in 5, 10 years, it will have changed the landscape of sports dramatically in this country there's no question about it it's going to be really amazing game changers, what's going to go on with that. >> no it just the gaming companies, but also the media companies because even obscure games will gather bigger audiences and people potentially offering analysis like yourself will do so >> the companies like boyd gaming and mgm are going to do well because states aren't going to vet people, they're just going to give licenses the smart ones are going to get in there and make a big stand in the big states, and that's going to be, i think, a very big part of their business. >> when you have a brand like your own, the world is going to allow you to do what you want to

do, rather than having to deal with the distribution of your product. >> i talked to a lot of podcast companies and they all wanted to split revenues and do these different deals and i said i would rather do something myself i met up with mike levine with caa and i really liked what they had to say and i needed someone to lean on for the technological stuff. these guys right here, these young ladies and guys have done a wonderful job. i don't know anything about that they have made a beautiful app it really looks wonderful. they have got to teach me how to turn it on and off but the technological stuff is very important, what companies need to merge and what companies need to be involved. i'm not well versed in that. sports is my business and they have done a good job >> it's hard to figure out which of the 52 quarterbacks of the jets are going to start. mike, listen to me, this is the

fearful disintermediation that all these companies are worried about. those with a brand name, can take your brand name and exact profit you're a brand name. didn't you say, listen, i'm tired of being someone who works for others, i can make the money i deserve? >> it wasn't so much the money agreement. it was the idea of having my own vehicle, that i can call all the shots on the content i'm in charge of all content and the immediacy, if you're at home, and you go press a button at home at 1:00 in the morning, and you can go on in that minute i can go on at 2:00 in the morning. >> that's a good business model. >> that's why i found a very

good partner in caa and i got the right kids working on it and we have created a very good looking interesting vehicle that will start tomorrow. >> we have to stop, i love it. good to see you. >> good to be here, thank you. >> "squawk on the street" will be right back. ♪ and i don't care what we do ♪ just take me with you there are roadside attractions. and then there's our world-famous on-road attraction. the 2018 glc. lease the glc300 for just $459 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

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welcome back to "squawk on the street," no time for stop trading, giving me spent time with mike. what you got tonight for mad >> i think differently than what people are saying about lng. we will not be stocked in lng in the united states. let's ask francesca about the quarterbacks coming up, mark mahaney of nbc, he'll be talking to us about alibaba. at at&t innovations, we give you more for your thing. here we're adding tv and movies from our unlimited plan to the powerful new samsung galaxy note9. the perfect device for entertainment & productivity.

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good morning and welcome back to "squawk on the street," live from post 9 of the new york stock exchange let's take a look at the markets

this morning, down negative 14 points barely, s&p 500 the nasdaq is a winner again after it continued it's winning streak yesterday this would make six days of gain nasdaq is up .33%. a road map for the hour, china is escalating the trade war. plus alibaba is rising, it's up 61% from a year ago, is this just the beginning of a growth story? apple versus facebook security app the boo . new home sales out after disappointment on existing yesterday. how do they look >> 627,000, that's what came in for july, and that is below expectations, it's down 1% month to month the good news is that june's numbers were revised higher from

631 to 638 and that is a seasonally adjusted annualized rate of newly built homes. interesting, we're up to a 5.9% in the existing home market. we have very, very low supply. which continues to move the prices higher. new builds came in at $750,000 that is up 2% year over year, that's the problem in selling new homes, only the high end in the market, where buyers have that ability to not be so bothered by higher mortgage rates. on the lower end of the market, not so much because buyers are hitting that affordability interesting to note, in the fed notes yesterday, there was concern about the slowing housing market and weakening

affordability, talking about the builders not building enough low end homes. again, a disappointment, 637 for july, looking for those numbers to go higher, but until the builders put out more lower priced inventory, we're not going to see an improvements the problem again continues to be affordability remember the new home sale market is a very small part of the overall market, it does contribute to gdp because of construction, the existing market is weakening considerably and people are projecting that next year will be even weaker than this year because of that low supply >> overall markets, major averages, little change this morning, nasdaq is higher by .33%.

the u.s. slapping a 25% tariff on $16 billion worth of china's goods. this was planned, china doing the same thing on u.s. goods, despite ongoing negotiations this week. and the president delivering a warning for stocks and investors, should he be removed from office? listen >> you can impeach somebody who's done a great job i tell you what, if i ever got impeached, i think the market would crash, i think everybody would be very poor because without this thinking, you would see numbers that you wouldn't believe in reverse. >> joining us now is keith marker, chief strategist and managing director at pimco, keith, would the market crash if the president were impeached >> i think we have two examples of nixon and clinton both

impeached and the market did price in i think some risk premium, but i think the underlying forces in the economy have shown that pretty decent acceleration such that i think those forces are more important and the president has done some good with a pretty large fiscal stimulus plan, nearly 2% of gdp and that's working its way through the economy, very supportive of the market >> it does make you wonder what would happen to the markets. a lot of people draw comparisons to 1974, but it was completely different, especially with oil prices and the dollar, what do you think would happen with the markets? >> yes, it was completely different in '74, that was a stackflation period. as larry kudlow said, it's the economy, stupid.

anded a long and as long as the economy is strong, it's not that important. >> we have the fed kicking off their meeting at jackson hole. there's one thing that's been longer than this longest bull market and that's the era of accommodative central bank policy that fueled it. what do you think the next rate move is? is it considering what the president has been saying in terms of not moving so aggressively on interest rate hikes, especially in light of all the trade uncertainty, or is it moving forward and moving forward more quickly >> i think the fed remains very much independent and very much data dependent, i think what we have seen from the data is a rate hike in september, and we'll see in december, but again, the economy made strong, the key for us is that longer rates have settled down, we have seen longer risk premiums with the fed rate hike, and the point for equity markets is a 10-year

that's settling around 3%. i think that's a pretty supportive environment with nominal growth is running around 6% currently >> can you explain, we have an escalation of the trade war between the u.s. and china today. we have got all of these noise around impeachment, we have another disappointing housing report there's no fear in this market can you explain that >> yeah, i think again, i go back to what i said earlier, i think it's the economy, stupid, i think the economy is weakening a little, but it's still very strong, it has peaked and we're slowing a bit, but we're still above trend, unemployment is low. the rest of the world is not doing as well, because the fed is -- so the global credit cycle is going in reverse, and this is actually pushing money into the

u.s., because the u.s. looks like a safe haven. this is supporting yields treasuries and it also increases the demand for u.s. stocks which are still benefiting from the tax cuts it's easy to explain why the market is shaking off the volatility that we're seeing on the political side and also the global volatility. >> you know, the fed may be shrinking its balance sheet, but something that's not shrinking is the overall deficit is there any point where we focus on that or care about it, given how many treasuries we have got to sell each other. given the appetite we're expecting from the rest of the world? >> first of all, i think the treasury market has largely priced in a lot of the supply that will be coming. we have been knowing about this for quite a long time. and don't forget there's a lot of demand for safe assets from other countries, from investors

in emerging markets, where things are not that good from europe, from japan, where the central banks are still doing q.e. and that's why the higher budget deficit has not really translated into significant riding yields. so i think in that environment, yields can move broadly sideways, maybe move a little bit higher but i don't think the deficit is a problem any time soon. this may change if the fed keeps hiking interest rates, if rates go above neutral and if the balance sheet keeps shrinking, for now we're in some kind of equilibrium in the bond market >> ythe worries over trade, strong dollar, slowing economic growth outside of the u.s., is this still the place for investors to be putting their money? >> i think the u.s. remains a

strong point in hearing that over the last couple of weeks and months, growth is solid and i think small caps in particular have benefitted, particularly amidst the worries around the dollar i think large caps also offer attractive profile given tech expoee exposur exposure, et cetera, i think the small caps rising to new highs is a good sign for the rest of the year >> we'll leave it there, thank you. the dow is down 11 points. >> when we come back, the trade war does deepen, the trade war slapping new tariffs on products and movers in technology, alibaba and facebook and apple "squawk on the street" will be back after this. this wi-fi is fast.

i know! i know! i know! i know! when did brian move back in?

brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. e-commerce giant alibaba reported surging sales, their numbers are up year over year, but they're responding to trade wars, saying, if u.s. goods become too expensive due to tariffs, chinese consumers can shift to domestic producers or imports from other parts of the world. the world is a big place mark mahaney along with our own john ford. this name has been used as a pro

proxy for ongoing tensions between china and the u.s. i assume you argue as well, the fundamentals remain very strong. >> you're right, david, i think the chairman went out of his way to address the tariff issue head on if you look at the p & l results, you wouldn't know that there's any debate over tariff , on an organic basis, it's around 50%, that's consistent through a couple of quarters, so far we haven't seen any impact on the core business. they had a nice business from the world cup activity, they actually streamed all of the world cup and that actually -- overall, seems like trends are pretty consistent toalibaba. >> it's interesting you mentioned sports i took note of that because of the questions here in terms of sports rights and other players

such as amazon getting involved, but they are seeing an increase in their media offerings, do you see them spending more money in that area as well? >> i guess i'm -- i haven't found an area where i have been surprised that they have been willing to spend more money, i don't know if i said that right, but this company is clearly investing in a whole host of variables. logistics, southeast asia with the acquisition of companies like lozada, and core entertainment, they clearly want to be much more than an e-commerce in china. they have now got about 600 million active customers, 5 to 6 million active customers and daily customers across all of their assets and they'll continue to add 100 million to 200 million. i expect them to build more directly to build up their

entertainment assets they're a new big buyer. should be good for sports industries. >> john, there are a lot of numbers there, but how about the 61% revenue growth are these china internet names growing faster than u.s. internet names and how do you view that in light of the big selloff in terms of stocks >> in some ways in particular, they are growing faster and some of the ways to look at including alibaba, it's kind of their version of omni channel, doing in store unlike amazon, that's kind of cozying up, buying whole foods and starting new concepts. alibaba is tying in more of their technology they have built, more cloud technology which they have built. pick up in store, but using your mobile phone, and john sy talked about this this summer at the

code conference. it's growing pretty slowly for them, then of course we know about the investments that they and others in china have in messaging and the increasing use of messaging platforms for commerce that's a big, wide open space for them as well. >> and mark, to his point, the big cap tech stocks, fang have really been very strong this year, and we have seen this incredible divergence with chinese bank stocks. >> we continue like alibaba, but in the large cap, like global internet companies, actually 10 cents seems to be reasonably dislocated, but facebook is the one that's most obviously dislocated we have had two pretty -- a contraction in margins, a

reduction in margins i'm skeptical that we're going to see that. i think the core business growth rates for facebook are very much intact advertising demand i don't think is changing, so if that's right, this is the dip you buy to make money on facebook. it's really the only dislocated one. amazon is not dislocated and even netflix, it's come down recently, but it's still that year to date outperformance, 80% on the year, 70% to 80%. so it's really facebook that's the outlier. >> they want to convince folks they're serious. they were in new york, some of the management team were in new york last week and saying, margins really are compressed. >> i don't think there's a reason for facebook's margins to come down, unless they want to get into -- in which case street

revenues are too low then. i know they're spending a lot on technology it's not the rise of snapchat, it's the confidence in facebook as a platform in terms of average users. they absolutely have to spend everything they can to make sure that they're not hijacked in this upcoming midterm election, and that's really why they're interested in spending money and guiding people down on margins but i don't expect a change in business models. if i'm wrong, i'm wrong, but if i'm right, the stock goes higher >> we'll have more on allibaba n the 11:00 hour we have got another story we're watchi ing play out in teh this dispute between apple and facebook, facebook pulling facebook monitoring software

from the apple app store >> apple removed onavo, it created a virtual private network to download apps their statement, we have always been clear when people download onavo about the -- apple tells cnbc, quote, with the latest update to our guidelines, we made it explicitly clear that apps should not collect information about which other a apps are installed in the device that's not facebook's only security headache. facebook also banning an app called mypersonality for failing to agree to an audit because the app shared information with researchers and companies with only limited protection in place.

they say they will notify people that have purchased the app. this comes on the heels of facebook announcing that it's identified more manipulation by russian an iranian tied accounts the question is how much this drip of use about potential manipulation on facebook and data privacy issues, and users and investors. shares are down 18%, since facebook last month reported slowing user growth. >> thank you and facebook shares are higher despite the news today >> honeywell reaches its full year profit forecast for the fourth time this year and so spinoffs of two of its businesses are on track. and you can see right there, shares are up 1%, meeting of the minds, the jackson hole fed simm

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it is a true meeting of the minds, policymakers gathering at the annual jackson hole economic

symposium. and that is where we find our steve leaseman, our economics reporter steve, what are they talking about this year? >> they're talking about monopoly policy, and the other stuff going on, the economic things happening, there are some political things happening, there are tariffs that are out there. and i talked to the kansas city fed president, she puts on the show here, she's the host. and i asked her about the issue of the president commenting on monetary policy. >> expressions of angst about higher interest rates are not unique to this administration, and we know higher interest rates cause adjustments in the economy. i think what's important to remember is congress anticipated this kind of tension when they designed the central bank and they put fire walls in place so that the central bank could be independent and carry forward

with its decision making. >> here's what else esther george said about the economy, she sees 3% this year, but she doesn't think the growth can last she said that she does not feel the need for the fed to go above that and a fed rate cut -- one other we call it mind the gap, and that's the divergence between the main central banks take a look at the economies of the bank of japan and europe inflation is lower in japan. gdp is lower in japan. but the u.re's the u.s. you cane at 2% on the u.s. screen, and japan and europe, all the way over to the left there, u.s. of

course going higher, the bank of japan, the ecb, who knows when it will go higher. so it will be central bankers sitting shoulder to shoulder at this meeting one will have a 200 basis rate and rising and one will have a negative basis rate not going anywhere soon. and as you ponder every day, is how much longer this divergence can persist. >> that's why it's been so crazy in the area of currencies i'm wondering what the central bank chairman would say. the president has complatalked about the u.s. dollar. is this a result of fiscal policies after this massive stimulus we get in the ninth year of recovery >> i know you gave me either or, but the answer is yes to both. i think it's a combination of

fiscal policy is driving u.s. economic growth as well as the differential in the funds rate the question is how long will the market let this persist in terms of the differential here does the u.s. go higher and bring the world with it? or is there a cap on how high the u.s. can go? and this is a question we will have an opportunity to talk to other fed captain captains as -- so we're going to get a global perspective and a strong concentration on the u.s and we'll bring you the highlights of jay powell's speech tomorrow morning. it will be his first speech as fed chairman >> great lineup, we'll see you later. in jackson hole chic outer wear.

steve liesman. it's now time for our etf spotlight. there's a near record spread between u.s. and non-u.s. markets. >> this is serendipity, we'll call it a strategy, but look at how it's all been reflected in the stock market the u.s., obviously by the s&p 500. the efa outside the u.s. and especially once you got into the spring, tremendous split in performance, outward performance, it tracked the increase in the u.s. dollar. and then this perception that the fed was going to be obviously on one track the question is now, can it close in that one little move up in the foreign markets, that's when the dollar peaked so maybe that's what it's going to be based upon

>> the currencies are leading indicators for stocks? >> coincidence if not leading. >> go all the way and give her what she wanted. it's right there, and it very much is part of the same equation driving both for sure >> politics are also at play here the president tweeted about south africa yesterday, in this sort of controversial land legislation they've got going, and guess what the rand went down it was already having a difficult year >> that's going to be an ongoing question, i think. >> mike, thank you sue? >> good morning, david, good morning, everyone. here's what's happening at this hour residents of hawaii bracing for a rare hit from a category 4 storm, hurricane lane could slam into the island today, with winds exceeding

100-mile-per-hour. the fallout continues today for verizon. yesterday, verizon said it made a mistake of slowing the wireless speeds of the california firefighters as they battle the largest plays in california's history when firefighters complained, verizon told them to switch to a more expensive data plan verizon said that was a customer service mistake and had nothing to do with the roll back of net neutrality rules we are learning more about the head to head golf matchup between tiger woods and phil mickelson. the match will air on pay-per-view and the winner will take home a million bucks. no word on how much viewer also have to pay to see that match. cbs comedy "big bang theory" which was at the top of the ratings during the last three

seasons. the decision to end the show was because star jim parsons was ready to walk away >> thank you very much, sue h herre herrera. when we come back, escalating the trade war, the u.s. and china slapping one another with brand-new tariffs today. we'll talking to a former u.s. trade rep and a former nafta advisor to president obama the dow's now higher 19 points

welcome back to "squawk on the street," i'm sarah isen. dow's turned positive 20 points, s&p 500 is moving a little bit higher now, up .2%

te telecom discretionary. dow's up about .4% >> an ongoing trade war could slow the u.s. economy according to a new trade poll of u.s. economists we have china and the u.s. continuing their tit for tat tariffs, while the u.s. looks to reach a nafta agreement between the u.s., mexico and canada. we have former united states trade representative carla hills who negotiated the original nafta agreement. thank you for joining us today we have got reports including from commerce secretary wilbur ross on cnbc just yesterday that were very, very close to an agreement to potentially get nafta done, before a new president comes into mexico. what needs to happen can it happen? >> it could happen, but it's

possible the united states and mexico went off for the last five weeks alone towork out a series of issues that they haven't been able to work out issues that canada has less of a stake in they still haven't finished that and they still haven't come to full agreement but if they do today or tomorrow make an announcement, then they're going to have to bring canada back, and there's a series of issues that the canadians and americans will have to work out >> carla, energy is part of these negotiations right now we have reports that the president elect in mexico, does not want mexico to be part of a nafta agreement. what happens there it seems like a sticking point for the u.s. >> i think that will be an important issue, mexico has liberalized its energy market in 2014 and all three economies would benefit enormously and move toward north american self-sufficien

self-sufficiency, by having rules so that there were reliable rules governing energy among the three of us. >> ambassador hills, i want to ask about china because we saw those new tariffs go into effect how hopeful are you about these negotiations they're sort of lower level, but at least they're talking for the first time in two months, the u.s. and china what's your level of optimism? >> i am pleased that they are talking. we went through june without any talks at all, and that's a very long time when you have so much at stake we are the two largest economies. we have a lot of issues to get resolved, the 16 billion goes into effect,making it $50 billion and that's hurting american workers and hurting our jobs you know, the agricultural industry already has been hurt by $27 billion so rolling out the $12 billion of assistance doesn't take care

of the pain that they're suffering and the uncertainty is affecting our inward investment, which has a cost in terms of jobs and tax roevenues. so we have got to get this resolved. >> many people who come on our air say it's time that we did stand up to the chinese, whether it's intellectual property, and their willingness or desire to steal it or take it through joint ventures and many see that as an unlevel playing field. >> the chinese always move the ball forward on a very broad range of issues. the problem is they moved it forward too slowly as a result they were just not coming into compliance with their trade obligations with the u.s. fast enough the problem was president trump switched to confrontation outside the wto to dispute

resolution and retaliation system rather than going inside the system and that's what opened the door to the chinese retaliating to our retaliations and that's what opened up this trade war. don't forget, there's a lot of downsides to confrontation first of all you hurt the united states while you're hurting china with these tariffs second of all if you hurt china too much, you could cause problems in the chinese economy that could come back to bite the united states. there's a lot of down sides. if we go back to confrontation, we should have done it in the wto system, not outside of it. >> certainly it seems to be the key advisement to president trump that chesapeake baina. >> we don't want any one of the economies to lose, we want a

win-win situation. the two largest economies make a difference in jobs, gdp and growth and i agree that we should not have been confrontational. and when you stop to think about it, we used that old statute, the 232 national security statute to put tariffs on our closest allies in terms of steel. we don't take much steel from china because we already have more than 100 dumping actions. our biggest steel supplier is our closest ally, canada and in addition, canada, south korea, japan, it's a national security issue this doesn't make any sense. so what we need to do is sit down, we should have joined hands with our allies and confronted china about it's discrimination, and it's not giving us national treatment because a all of our allies wer suffering similar problems. >> if we're able to strike a deal on nafta, and a bigger

broader agreement with the eu, does that help us take on china? >> absolutely. president trump as divided us with all of our allies and he's made it much, much harder to take on china. we won't have agreements with the europeans as easily, but we could have a close nafta if president trump capitulates on most of his big asks >> what about the stealing of our intellectual property, we're in what some would call a war for the future here. and we can't allow the chinese to leap frog us as far as being ahead when it comes to technology >> i absolutely agree that we have legitimate grievances with chandler but you win more when you sit down to try to negotiate and you particularly win more when the rest of the developed world representing all of the markets that china wants to use are sitting beside you and saying, look, you've got to fix that

the businessmen of every description, northeast, south and west were complainingabout the same problems that we have complained about, percentage caps on investment, nonprotection of intellectual property, subsidies that discriminate against us and are not notified to the world trade organization, these things need to be fixed and i believe that working together we could have made more progress than we have yet made, but i still have my fingers crossed and hope that we can get these problems solved. >> we'll leave it there, thank you both for being with us today as more tit for tat tariffs take effect. intothe ceo of ace hardware is gog join us with the retail landscape and a lot more "squawk on the street" will be right back & he's got wide feet.

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earnings report, one trader says it's just the beginning of a bigger breakout. more "squawk on the street" right after the break.

we have seen big earnings wins this quarter for the retail sector as chain stores work to compete with their counterparts. ace hardware is the largest retail owned cooperative in the world. welcome, john, nice to have you. >> thanks, sarah, good to be with you >> it has been a hot quarter for retail, with sails ales and tra coming in above expectations, are you seeing that trend as well in your business? >> yeah, we had a great quarter. sales were up 6.4%, earnings were up 6.2% so, yeah, you're seeing, i think

the bifurcation of winners and losers >> what's working within the store that's helping fuel those kind of sales within these do it yourself home improvement chains >> we do good with some very impressive with some very large companies. you don't catch me saying anything bad about those folks we find ourselves in a very different position, it's part of that bifurcation story they're more about home renovation, if you're going to pluck down 40 grand on a kitchen remodel and new counter tops, you'll probably end up there, we're more about repair.

our ba so it's been strong, those two guys had a great quarter as well >> john, we talk a lot about the future of retail being e-commerce and how important it is for the brick and mortar to have an e-commerce strategy going forward, making investments there, is that something you find for the future as well >> absolutely. like all retailers we're investing massively in our retail presence. our online business is up 50% year to date but still very much it's a relational people oriented business, even with the digital investments. the way i think about it, the world seems to increasingly be fawning over technical, artificial, faceless interaction. and i tell you at ace, we're betting the farm the other way, on a timeless principle that we think will hunt forever, which is the notion that human relationships and human connection will always have the

potential to stir the soul and that's why 92% of our online orders are picked up for free at the local stores. >> do you need that kind of connection if you're going to buy a light bulb >> the convenience of going to the store to pick it up rather than having it damaged in shipping we also do a lot of delivery, but that in store pickup is a way to get that human connection even in a very digital world >> what percentage of goods in a typical store is imported from china? and are you concerned at all of the prospect of increased tariffs on the things you carry in your stores >> yeah, the local ace store has 100,000 items that we stock that we can get to them the next day, that's $1.8 billion worth of inventory that's available to

u.s. households. we are feeling a bit of the tariffs already, you can imagine the number of things in our stores that have steel and that is impacting the cost of goods i would 15% of business being impacted by that. >> do you absorb it or are you passing it onto the consumer >> we try to swat it away with the supplier, which the buying team does. some cases we have to absorb it, the retail price is competitive and we eat it. other cases, a third to half pass it on to the consumer unfortunately. >> john, thank you for joining us good to talk on retail trends with you the ceo of ace hardware. "squawk on the street" will be back dow up 8 points.

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mgm getting ready to open its doors, the first resort casino to operate in massachusetts. contessa brewer is there, spoke earlier with the ceo >> mgm got one of three gaming lnlss lnl lnlss -- licenses in the state the company spent $960 million on the property here

it transformed what was historic, run-down buildings into a sprawling complex that covers three city blocks, but blends in seamlessly with the arc tu-- architecture. it gives it a main street feel this is a real first for the ceo jim murren. >> this is the most rewarding property i have been involved in, one thing to make a place in vegas, but help a city lift itself up from a 60 year decline and to have people literally crying for joy, being excited about there's something to root for in springfield, thatis, yo get to be as old as i am, that's very inspirational to me >> jim says he spent about $100 million on this historic

preservation, architectural details, antiques. when he goes to the board to explain the investment and return on investment, he calls it intangible, believes it is something that customers will keep coming back to experience, guys >> contessa, what are his thoughts on competition because the area has either a number of casinos open or getting ready to open throughout the region how convinced is he that he can get morefoot traffic to his location versus those? >> he thinks springfield as a cityis a destination in and of itself, the basketball hall of fame down the street, dr. seuss museum is here, miriam webster used to be here. he says yes, there's competition from mohegan sun and boston harbor down the road, but he says they're a world class entertainment company first and foremost

he thinks offering fantastic restaurants and big names, stevie wonder coming to play here, that will be the draw that sets him apart from the others in the region. >> contessa brewer, thank you. from springfield, massachusetts today. coming up later on closing bell, an interview with robert kaplan live with steve liesman, 3:00 p.m. eastern time. first, "squawk alley" is up next don't go away. it's absolute confidence in 30,000 precision parts,

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good morning, 11:00 p.m. att at alley bab a headquarters and 11:00 a.m. here. ♪ ♪

♪ ♪ happy thursday welcome to "squawk alley." i am jon fortt at post 9 with morgan brennan, sara eisen carl has the morning off going to get to a lot. we begin with ali baba earnings, posting a miss on earnings, seeing shares rise after reporting a surge in revenue and average mobile monthly users josh lipton is in san francisco with more. >> the largest player in china reporting surging growth and estimates driven by core business steals climbing 61% to 89 billion. the company earned 8.04 a share. did miss estimates, they took a on