good thursday morning. welcome to "squawk alley." i am carl quintanilla with morgan brennan, jon fortt at post 9 of the new york stock exchange we keep our eyes on the kavanaugh hearing, trade, rosenstein, the white house. we begin with facebook a good place for startups on shaky ground what brian acton's criticism of mark zuckerberg is he called it a whole new

standard of low class. for more on the continued turmoil, we are joined by contributor walter isaacson and sus susan lyons. if the departure for the executives wasn't enough, back and forth between marcus and acton says a lot about culture at the company, who has responsibility for the position we find ourselves in as a country and planet, regarding social media what are your thoughts >> it says a lot about the culture. it says a lot about the business model, you have to monetize people that use the service to sell access. you are going to end up doing everything you can get away

with i think the most important thing that brian acton said and it wasn't a low class statement, he is one of the what's app founders criticizing facebook, he said we were trying to find out revenue models, including charging somebody a tenth of a penny for a message. that may seem not -- it isn't thinking out of the box, saying can't we have another revenue stream that doesn't require us to sort of violate the lives of our users. >> something about this seems off to me. overall with all of the turmoil in silicon valley, they have a stable executive team, the fact that founders stayed as long as they did is remarkable the fact that mark zuckerberg and facebook side left what's

app alone as long as they did is remarkable, all the details i read sound like normal back and forth between the create tore and founders and then -- >> you look at the number of acquisitions that go sour quickly, particularly when temperatures integrate whatever it is they bought into their core product, they didn't do that they left instagram alone to grow, it has become an incredible force as a result and the same is true for what's app. they did facebook messenger. they did not integrate what's app into facebook. and i think both those things showed real restraint and showed real understanding of how tech companies and particularly founders do their best work. but you're right at a certain point i'm sure they got to a place they thought

okay, we need this new revenue stream to continue the growth story we've been telling wall street for a long time that's the challenge you have as a public health -- it is never a simple thing, you can do what's right for the consumer, you have to figure out how you make the quarterly earnings. >> susan, to that point, we are talking about what's app specifically, $22 billion acquisition. here's one of the key questions. can you or facebook make money on that product and still maintain some sort of form of privacy or encryption? >> yes, i think they can because they can be selling a demographic without knowing what's inside those messages i think that's very feasible i do think the idea acton had is a pretty great idea, it would have been an interesting way to go, at least to try it it doesn't demand a sales force.

you can build this and that charging people to the penny, whatever it turns out to be, after they hit a certain limit of messages could have been a secondary revenue stream for facebook that maybe would have worked on multiple different platforms. and it is an interesting way to go i'm sort of surprised they haven't at least played with it. >> we had patrick on the show yesterday, talked about what he is doing in media at the l.a. times and beyond his view is that subscription models are the future that they have to be, and i wonder if you're seeing examples of what the new proxy for a media or social media business model will look like, is it sub based >> yeah. i think what susan said is very

important. it is important to explore new revenue models so you're not wholly dependent on advertisers that want more and more than just regular demographics. they want more and more specific things here's the important point too if you invent or create some social media platform that will verify where the user was paying, you could end spam, you could end the spreading of lies and bullying you could provide a real service that a lot of people might want. it may not be as easy to scale i trust zuckerberg he says it is hard to scale that but it is worth trying saying we're creating a social media environment where the people use it are paying for it, we're not just selling for the advertisers, and secondly because they're paying for it, they're authenticated, they're

authorized, and the discourse can be more civil. then you can really protect their privacy with strong encryption >> walter, interesting we have david marcus speaking out against the what's app co-founder in that marcus himself is an entrepreneur by background, former ceo of paypal there's a certain heft that comes to his statement in defense of zuckerberg, even though he says he is not speaking for the company would you interpret this as facebook's way of saying something without saying something? >> i don't want to impute motive to marcus, whether he is serving as spokesperson or being urged to do this by facebook i do agree with susan and your original point, carl, that facebook in general has given people they work with or companies they require a lot of leeway i think this just goes much deeper into the questions of whether or not you're going to have to use the same old

business model to continually try to grow revenues for wall street by doing this to advertisers. i think marcus' statement in my mind went a little too far these type of things brian acton is saying are very interesting, very thought provoking shouldn't be labeled lowest of the low life that doesn't help the discourse. >> we have two sets of co-founders turned back into the wild from facebook what do you expect from them will we see rival companies built by any of these entrepreneurs? >> well, i think what they'll do next will be really interesting. already, the what's app founders or at least acton has put a significant amount of money into an alternative messaging platform that's highly secure. and they are doing it on sort of

a wikipedia model where it's a foundation, and it will always be supported by the people who use it so that's interesting. i don't think it gives what's app a run for its money, but i think it is great that they're doing it, it does give people alternative that could be very powerful over time i think kevin cyst trin is very, very smart founder, he is going to do something creative, very interesting next >> amazing what a month it has been the hearing we'll see what happens susan, walter, thank you guys. appreciate it very much. >> thank you amazon opening a new store in new york city this morning where everything for sale is righted four stars or above on its website.

courtney reagan joins us with more courtney >> reporter: welcome to soho in new york city. amazon's brand new store this is called amazon four star. just opened an hour ago. let's come inside. this is a permanent store. has about 1800 items all items here are rated four stars or higher, trending, top sellers, or new. the first table you come upon in the store the most wished for. these are products most added to wish lists while it is a very physical store, you can see there are digital price tags for some products, it is one price for everyone but for other products, there are different prices if you're a prime member or nonprime member. the tags change, so does the information. >> price tags update in real time withthe website as amazon prices change, prices in store change. also customer reviews change and ratings change, they update in

store as well. >> check out the books that's how amazon started. that's how amazon wants you to continue to associate with it at its core, its book selection even though they have 17 bookstores, you're going to find books in the more general merchandise four star store. then you've got today's deals. these are deals only available in store this blanket, for instance, is 49.99. you won't find that price online the last thing i want to show you is some of the in store demonstration ability. that's what cameron james said is important about having a physical store, so people can actually test out these products, these alexa enabled products it is a bit loud in here but if you speak into the echo and say echo, lock the door. >> locking, hang on. >> it says locking, hang on. it is quite loud but it may be able to unlock

this door for us the whole point is to showcase that and get help if you need it from someone experienced with the devices. brand new concept, they haven't shared the forward looking plans for how many more of these there might be so far it is busy for the first hour of business back over to you >> i'll bet, courtney, thanks. guys, strikes me, that is a huge store for soho that's expensive real estate there. the effort from amazon, it doesn't look like it is about saving money or about driving people to the website, this is a different kind of premium retail push they're doing reminds me of what we're hearing out of china and what alibaba has been working on. >> i am a successker for this if i buy something in the store, they go in, find something, buy it, like it, they're not going

to the website and buy it again. >> amazon did hit 2,000. takes their target to 2525, a street high. let's update from washington and public testimony of brett kavanaugh and dr. christine blasey ford who accused him of sexual assault saying it is not a case of mistaken identity. >> that's right. the questioning of dr. ford, she has taken a prosecutorial line of questioning, ask ford to go through the sequence of events that day, asking her whether she was drinking or taking drugs before the event occurred. she said she had not democrats, however, are doing their own questioning of christine ford and her testimony so far has been very emotional, almost tearful at times, clearly

conflicted about her role now on the world stage. >> i believed he was going to rape me. i tried to yell for help when i did, brett put his hand over my mouth to keep me from yelling. this is what terrified me most and had the most lasting impact on my life it was hard for me to breathe, i thought he was accidentally going to kill me brett's assault, i was too afraid and ashamed to tell anyone these details i did not want to tell my parents that i at age 15 was in a house without any parents present drinking beer with boys. i convinced myself that because brett did not rape me, i should just move on and just pretend it didn't happen. i have been accused of acting out of partisan, political

motives. those that say that do not know me i am an independent person and i am no one's pawn >> later on she said she has suffered claustrophobia, panic attacks, and ptsd like symptoms because of this alleged attack she also goes on to say that again this is not a case of mistaken identity. categorically saying this was brett kavanaugh who attacks her. brett kavanaugh has categorically denied those accusations. >> thank you we'll continue to monitor the headlines. in a few minutes, my exclusive interview with secretary of the u.s. navy first, let's check where we stand with the markets the dow is up triple digits, up pl vizints ape,eron leading gains more "squawk alley" after the break. this isn't just any moving day.

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>> i think the fed is being cautious and we forget that. higher rate hike cycles squeezed 190 basis points per year, that's been the speed limit they prior clocked. now we're going at such a gradual pace they have room to grow in the future. >> you look at the effect on treasury, whether people continue to look at equity as a place they need to be, given how hot the economy is on one hand and how much better the tenure is looking now than it did a year ago, what do you think? >> we have come up a fair whack from a year ago, 60 plus basis points i hadn't realized until i looked at a chart yesterday how much we backed up into the treasury yields so far not that disruptive from an equity standpoint, from risk appetite standpoint. you look globally where disruptions show up, probably the most important point is in

the emerging market space and even there, it is idiosyncratic. i think as far as u.s. equities -- >> we are seeing two stories >> i think that's critical we're seeing divergent strong optimism from equities and caution from bonds they both have a place we miss that internationally with rates low, we're not going to get u.s. rates rising significantly. the yield curve shape, flattening, it is important to keep our eye on. >> people are watching not just allen but corporate debt, big stories on servicing government debt, the degree to which interest payments exceed military spending or medicare spending mortgage rates, we know what home builder stocks are doing. when does it matter, if ever >> it is interesting to see

chairman powell mention, i am less worried i think generally if you look at the aggregate corporate balance sheets, they're in pretty good shape. i think the fiscal side of things is problematic. when we're at peak of cycle, we're talking general government deficit, on the order of 6% gdp. that's terrible. and it doesn't bode well that's deeply problematic on a five year time horizon. >> q4 heading into the holiday season, given that the economy is doing well on one hand, on the other with global trade tension, tariffs, it is unclear how much things will cost. >> yeah. 2018 is looking fantastic. all of us, i am not even five years out, i am thinking to next year we see the consumer still really

optimistic about based on job growth and all these other, the wealth effect, but because wages are so stagnant, i worry any tremor at all in the stock market could have an out sized impact on consumption. we have seen that strong asset market reinforce a lot of consumption. fourth quarter is great. it is beginning of next year, you see fed tightening take root, i watch the consumer closely. still what's driving our economy. >> we are coming into earnings season, looks like some forecasts for companies come down as well peak earnings as they already happen, are we having more of this conversation? >> we have the buy back story that's helping equities for now. i think that's what we -- when i look ahead, and corporate balance sheets look good, all this cash on the balance sheet, it is whether or not we keep growth going organically or the buy back story. >> allen, last word, effect on corporate earnings and all of

this >> still looking good. anything that's looking like double digit underlying, year end numbers tail off as effects fall off the underlying picture is solid. just to the point you mention earlier, bond volatility is low. equity volatility is low >> we can't wait to see the earnings numbers as always thanks for joining us. >> thank you. we told you about amazon a few moments ago, want to bring news about jeff bezos' other company, blue origin the startup won a target to provide engines to the boeing martin lockheed. blue origin is competing with aero jet rocket dine for the next gen rocket under development. blue origin hasn't responded to

request for comment. cnbc can confirm the source familiar with the negotiations that an announcement is expected today, along these lines as for the engine itself, as the ceo told me earlier this year, be 4 took 7 years to develop, capable of 100 starts. it could be fired up, reflown into space up to 100 times for rocket launches. >> this is actually something we developed on our own dollars, we're excited about the commercial opportunities that's going to give us when we fly it. and when we hopefully are selected by united launch alliance for its vehicle, vulcan >> that's the or bi tbital rockt they're making a prospective deal with ula today or near term would mark a big milestone for the company jeff bezos created, establishing the first significant revenue

stream for a startup now 18 years old, guys. >> that's quite an interesting potential coup for them to beat out a sta-- >> one more win for bezos as he looks to bring his amazon effect to space, what you could call the beginnings of a blue origin effect. >> space prime when we come back, google turns 20 with the ceo on the hill tomorrow and controversy surrounding service in china ar discuss what's next for the sech giant dow up 120 a quarter of that apple. back in a minute

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today marks the 20th anniversary of google as it inches closer to joining apple and amazon in the trillion dollar valuation club, josh lipton is in san francisco with what's next for the search

giant. >> jon, as it celebrates a 20th anniversary, google unveiling a doodle, the company referred to as the search giant, for good reason 80% of all online searches on both desktop and mobile are run through google, according to com score. today, google faces new challenges, the search engine is now in the political cross hairs with republicans saying google biases search against the right, a claim google rejects, but the president himself clearly has google and others in his sights. >> google has really taken advantage of a lot of people and i think that's a very serious thing, it is a very serious charge >> beyond political pressure, other challenges, increasing competition, specifically from amazon check out data from mary meeker, showing how most product searches she points out actually start at amazon.com, not google. and more broadly, how we search for information is fundamentally

changing as voice space search goes mainstream with phones and smart speakers, open question for investors, will google in the next 20 years dominate voice search in the same way as desktop, mobile search, and will the company be able to monetize voice as much as tech space search right now, analysts remain bullish on the name. 91% of them rate alphabet a buy. back to you. >> josh, thank you for that. josh lipton. if you bought a share in 2004, it was 85 bucks a share. it is now about 1200 not too bad. let's get to seema mody for the european close. >> stocks mostly higher across the board. the key laggard is italy reports that the government may postpone the 2018 budget meeting over internal disagreements. you can see the ftse down about 1%, big banks down 1 to 2% on the data front, consumer

sentiment dropping to the lowest level in more than a year. notable weak nness in france it ticked down as data came out. 1.16 against the dollar. turkey dropping to the lowest level in almost a decade those numbers not weighing on the lira, and switch to individual stocks in europe on the move european travel site on track to meet earnings forecast, despite unusually hot european summer which was expected to dampen tourism to europe. and let's talk about industrial. germ german giant, surging 10%, after they plan to split into two firms. one entity will include automotive supply business, the other a joint venture. merging with india's steel

stock up 10% on the retail side, h and m posting strong online sales results in many core markets, quite the turnaround after years of falling profits due to heightened competition from low price rivals back to you. >> thank you very much. let's get a news update from sue herera at hq good morning, sue. >> good morning, carl and good morning, everyone. white house counselor kellyanne conway telling reporters on the white house driveway this morning that the president is not considering a replacement for brett kavanaugh. >> the president has said nothing of the sort. he told all of you in the 81 minute press conference that he stands behind judge kavanaugh. they'll receive their testimony today under oath. >> thousands of protesters rally in washington against the nomination of brett kavanaugh. this as christine blasey ford

testifies before the senate judiciary committe -- committee. rising flood waters from hurricane florence in south carolina, thousands of homes are inundated forcing many residents to flee. horry county officials urging those who stayed to change their minds and evacuate you're up to date. back downtown to you guys. jon? >> thank you, sue. as we head to break, look at shares of apple. jpmorgan initiating coverage with overweight rating, a good thing when you're a stock. 272 price target citing growth in apple service business. and next, interview with the l cretary of the navy. don't go anywhere. "squawk alley" continues in a few minutes. alerts -- wouldn't you like one from the market

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senate judiciary in the middle of a short break. let's get to washington for the latest >> democrats are repeating the request that the committee subpoena mark judge in this hearing. he of course is the second person that christine ford says was in the room when the alleged attack by brett kavanaugh occurred ford also said for the second time during the hearing that she

is positive it is brett kavanaugh who was her attacker. >> with what degree of certainty do you believe brett kavanaugh assaulted you? >> 100%. >> 100%. >> ford also went through the time line for her decision to come forward, at what seems like the 11th hour. she said she was conflicted up until the very end >> once he was selected and it seemed like he was popular and it was an assured vote, i was calculating daily the risk benefit for me of coming forward and wondering whether i would just be jumping in front of a train that was headed to where it was headed anyway and that i would just be personally annihilated. >> republican questioning has been handled by rachel mitchell who is a sex crimes attorney from out in arizona. she has focused more on the specifics of the case, the sequence of events there was a powerful moment when

democratic senator patrick leahy asked christine ford what her most enduring memory of the alleged attack was she said it was the laughter of the boys at her expense. back over to you >> ylan, thank you we'll continue to monitor this. long time wall street executive and former cfo of north korea stock exchange parent company, richard spencer became the secretary of the navy a year ago when they passed a defense budget, tensions with china and iran heightened, i sat down with secretary spencer in a cnbc exclusive. we began with the state of the u.s. china defense relationship. take a listen. >> the relationship, morgan, is evolving shall we say. we are switching from strategies here we rolled out the national defense strategy last year, secretary mattis did it's definitely a maritime

strategy facing to the pacific as majority of the weighting of strategy we have gone from fighting violent extremists to the power competition, we see china and russia back in the mix, and it is changing the way we put our forward forces, deploy forward forces it also changes the way we fight if we have to. we look at china, it's a very complex situation to say the least because they're also a great trading power. when we had the cold war going on, we didn't trade much with russia now we have a major trading power as a competitor. you'll see it play out on a continually basis how we maneuver and face off with china as they become more of a global power and we have to protect lanes of commerce at all costs. >> we talk about tit for tat tariffs and trade deficits, the other piece is the militarization of the south china sea. how is the u.s. navy taking steps, if you are taking steps, to counter that, given those are

key global trade routes. >> one of the fundamental tenets is the freedom of operation. we apply open spaces, internationally agreed on open spaces with our war ships at all times to make sure our commerce and lanes of communication, maritime lanes of communication are open that's something we will always do if china comes and joins the world and recognizes international rules and international law and order, we're going to have a great relationship if they take this position they're going to use their laws and their understanding of how they're going to trade in commerce and protect their spaces, we're going to have to have some discussion about this going forward. >> another key trade route, strait of hormuz, we have sanctions coming in the coming weeks. there's been talk out of iran that they control that key waterway what's your message to investors, to americans, to consumers that could potentially be effected if you see increased activity there >> the fact is they don't

control it internationally under law of order and we will make sure those again, lanes of communication and lanes of trade remain open. >> can we get to a 350 plus fleet, do we have the capability when you look at the supply chain in the u.s., it has been eroded over the past couple of decades, we have a finite number of ship yards that have been taxed. can we actually get there? >> you've done your homework. >> i try. >> bravo to you. yes, we can, but it is much like portfolio management there are three services that have three distinct strategies how we deliver the fight basically. what we are doing in navy with the nuclear triad, the columbia class submarine, virginia class sur marine, these are large capital assets long lead times. past couple of years, ten years, has challenged the supply chain. if i can tell you one thing now which is fascinating, the one

thing that has done more harm to department of defense and national strategy is the budget control act. budget caps. >> why >> the budget capping process and and the not to get budgets forward on continuing resolutions has cost the navy alone in our computations $4 billion, not soft dollars, this is putting money in a dumpster and pouring gasoline on it the fact that we have a clear path to two year budget, congress has gotten behind it, heard us, said national defense is our way forward and need to fund it appropriately. we will grow to 355 ships. do i want to grow to 355 ships overnight. no i want to do it on a stabilized manner. >> the other piece is steel and aluminum, you need a lot of that to build ships. >> we do. >> how are you thinking of tariffs. we saw them put in place as a matter of national security on one hand, on the other hand it helps push up prices of those materials. >> what's fascinating now, and my information is probably two weeks old, but while we are

letting contracts for new battle ships and tanks and planes et cetera, we are not seeing immediate up tick in prices, but we are seeing suppliers hedging themselves, which they should, saying in the future we believe it will be increasing by x so they're building it into contracts. we're saying fine, if it plays out that way, we'll pay it we're not paying for your hedge now. presently we are finding good supply at good pricing >> secretary spencer also noted that the budget, defense budget that lawmakers just passed this week, looks like it will be signed into law actually on time this year, if that happens, that will be the first time according to him in 20 years we have seen a defense budget delivered on time in terms of building the naval fleet and talking about his vision for the future, sees it as a slow and steady process. a lot more technology coming into the picture, cited ai and other ways to envision modernizing that fleet also talked about the economy, his take on economic growth that

new upwardly advised gdp number this morning and how that factors into the way this administration is building up this military now as well. it was a wide ranging interview. you can see the whole thing if you go to cnbc.com that's just a little taste there. interesting to hear from him, especially since the u.s. navy really is essentially on the frontlines when it comes to our defenses in asia, alongside our allies with everything going on with china >> the question will be priorities navy, air force wants money for space, we talked a moment ago about payment, interest on the national debt. entitlements if kudlow is right, they're looking at that next year. who is first in line is the question >> that's going to be the question >> theme this year, money for everybody. >> i see got that covered. when we come back later this hour, why amazon is not giving up on brick and mortar store with the new store in soho

first, rick santelli, what are you watching >> i'm watching all the people i know computer trade is big, but look at this pit the fed insighted a lot of trading. back spreading, lots of puts in the back buns. they removed accommodation, maybe that's not a big deal. i can tell you the notion of rates moving in the future, even if not aggressive today, it is alive and well in chicago. we're going to talk about where ten year nesreoi aer e eak. a gngft

you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade.

here's what's coming up. can amazon shares continue to surge? new price target on the stock you have to see to believe hear from the analyst that raised his target to the highest on the street. and callout on wayfair whether it is on the money or missing the mark we'll explain unusual activity, all of that at noon. jon, little more than ten minutes away let's see rick santelli in chicago for the santelli exchange rick >> thanks, jon i tell you, it has been exciting on the floor for the past 24 hours. more exciting than usual you saw the dollar options pit that i did the tease in. lots of action as the term structure is trying to adjust to what's going on with jay powell and company, and let's be frank

here, basically been ten years, to remove accommodation, yeah, it was something big but come on. how long does it take? i think jay powell and company and janet yellen and ben bernanke, hasn't been as bad as it could have in many ways the longer something takes, the more issues you have with outside issues, exogenous forces, different economies, emerging markets, trade issues that can slowly start to take bites out. normalization should have begun awhile ago, we can't go back in time removing accommodation is like putting the patient in the recovery room, but you can't keep them there forever. we need to remove it does it have hidden meaning? i don't think so let's go to the boards all of the price structure, that's an obvious meaning and it tells you things this chart back to 2007. the point is quite clear

we had so many key tops before we did the violation of 3% 318, 320, 318. some bottoms, 317. we take out 311, we will at some point is m they're going to make a lot of train stops along the way. the double bottom in 2012 and 2016 is very compelling. the other thing i think we should take note of. after we made our may 311 high close of the year. the yoeest yield close we had was 278. they have to be bullish until you go under 278 this chart goes back to 1988 i love this chart. the reason is the whole point of this double tops and double bottoms this market has loved them forever. double top, big move double top big move. double top big move.

double top double top double top double top double top. this is the one we have in the last picture the reason it's so important is because either we're going to have a spike at 311, we almost got there the second time. we got through today or it's going to come down or you're going to take it out the point is is that we don't know at this point but if we should take out 311 before we go under 278, i would make it 295-ish, it could be a compelling upside. it might not be one where we cover a lot of ground quickly. morgan >> i'm loving that chart, too. rick santelli, thank you up next, it's the woodstock for porsche owners, phil lebeau is there with what comes next for the luxury car company and don't miss a big interview on "closing bell," the european commissioner for competition, is going to join the program at 4:00 p.m. eastern, a lot of focus on amazon and antitrust regulation. the dow is up 134. [ upbeat music ]

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6 for porsche. people spend four days on the monterey peninsula showing their porsches, racing them. here's the reason why porsche puts this event together we had chance to see a wide variety of porsches yesterday. this is the second largest market in the world for porsche, china being number one in terms of the 9/11, the signature model for porsche, the u.s. is the number one market. speaking of sales and strong demand, that's what porsche is seeing this year, record sales for all of 2018 so far they expect that to continue for the remainder of the otherwhen you talk with porsche executives, they like where the company is positioned right now. >> we see a very strong demand i mean we have very, very large portfolio of models, the 9/11 is on fire. it's just not about the new 9/11 i mean we look at all the classic cars in the market when you look at the values of our cars in the market, we see a very strong demand for our brand.

the brand is alive more than ever before. >> so right now, guys, we're waiting for the fog to lift. once that happens then we will hear and see a lot of porsches out here at laguna seca, back to you. >> it will be an exciting 2019 for the auto business as a whole, phil. can't wait for the fog to lift our phil lebeau out in california dow is up close to session highs, up 141. hi, i'm joan lunden with a place for mom, the nation's largest senior-living referral service. for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-living communities are better than ever. these days, there are amazing amenities,

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as we head toward noon, apple up a little better than 2% on the overweight rating and amazon up nearly 2%. >> speaking of amazon, there's other news around amazon web services today, as well. announcing a collaboration with iridium, a satellite operator for what they're calling the first and only satellite cloud-based offering this will be for the internet of things application and the stock is up 4% on this news satellite. bezos has rockets and this stars, rockets, store in new york

it's a different look for amazon premium move, premium space, it's a huge store. i can't imagine how much they're paying >> amazon hasn't seen 2000 since the 13th of september. got there today. we're going to continue to monitor the kavanaugh hearing. if you want to see it streaming, it's on cnbc.com let's get to the judge i'm scott wopner, amazon shares about to surge to even greater heights, the stock's on its longest winning streak in weeks and now a new price target you have to see to believe it's 12:00 p.m. noon and this is the halftime report. >> announcer: a big call on amazon can the stock jump 30% in the next year? the analyst behind the call. plus internet shopping stock that may be set for a big run. and, the sudden surge of options activity in a one-time wall street darling. the halftime report. starts right now