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good friday morning. welcome to "squawk alley." i am morgan brennan. with me at post 9 is sara eisen, david faber. carl and jon are off this morning. markets are rallying with the dow and s&p set to break what would be three week losing streaks, despite yesterday's selloff, as volatility continues. what can investors expect in the weeks ahead? joining us, chief investment strategist at charles schwab, and global portfolio manager at blackrock. we have concerns about rising rates, perhaps too aggressive fed, china trade concerns which seem to come and go and effect our market here and there. what are you focused on and what do you think is going to bring the next few weeks >> on the rate front it's all well told about the backup and long end of the u.s., i think what's less discussed is the tightening liquidity pattern first couple years after they

raised rates, we saw loosening conditions, they're now tightening we have less liquidity in an environment where global growth is slowing on the trade piece, one of the things unsettling for markets in the last couple of weeks is that actual companies are coming out and talking about the impact this is going to have, whether it is on profit margins, pricing, how they're going to react, pairing back. i think it contributes to volatility i think the earnings season will be very much about listening to companies talk about what is to come as opposed to focusing on earnings that already happened >> russ, when it comes to earnings it has been an interesting season so far, many industrials have not had particularly good numbers, at least raised concerns about the trade picture. at the same time, some consumer names. today, procter & gamble, may be independent to it, seems to have

gotten its act together, but nonetheless very strong numbers. where do you come down on earnings and the forecast as well >> i think generally we are seeing some incident medications regarding in terms of tariffs, concerns around cost i think the problem is really three fold one, it does come down to the unknown of tariffs which i do think has more potential to bite 2019 keep in mind good earnings have already been discounted. and the problem is not earnings growth, it is multiple contraction, less willingness to pay for a dollar of earnings and finally, i think the point of tightening financial conditions is very important the real economy looks to be in

decent shape, certainly tax cuts have helped. the problem for financial markets is we have a lot of asset classes that are stretched, there's some fragility in the system. it is about a stronger dollar wider spread, that will inflict some pain on certain asset classes, even if the underlying economy is doing okay. >> you wrote a note a week ago where you pointed out the best stock returns come from economic data is weaker, not stronger, and stocks have an uncanny ability to figure out when data is near or at peak and beginning to roll over do you think that's happening now? >> i think there are some second derivative adjustments happening now that are under the radar, in fact, let's talk about leading indicators that came out this week from the conference board one of the ways that they put out that data and what headlines

pick up on, not just change in the lei which is strong but contribution of the components this week's headline was 8 out of 10 sub components contributed positively to the lei. what that doesn't pick up, though, is that measures level you can have an indicator like building permits or ism new orders that rolled over and the trend is negative, but because it comes from a high level, is contributing positively to the index which is why i say when it comes to the relationship between economic fundamentals and stock market, better or worse matters more than good or bad. i think the stock market's ability to sniff out the inflection points i think is something we are going to be forced to digest more now than in the recent past >> ross, in terms of strategy of which sectors to bet on, if you look at what's done well, consumer staples, real estate and utilities. put the p&g earnings aside, they're high dividend paying you talk about a world of rising

rates, those shouldn't be the outperforming sectors. do you want to be in high dividend stocks or not >> it is a great question. certainly, the outperformance of sectors leading to the volatility was a puddle, it happened in the context of rising rates what the market is telling you is that equity investors are skeptical to go too much further. my guess is that's probably right. i think we're seeing enough evidence, whether you look at housing, auto, to suggest that while the economy is in decent shape, it probably peaked sometime in late '17, early '18. we saw some names get beat up the past couple of years, bottom fishing in staples and some lower beta parts of the market likely to be more resilient is the place to add to positions now. >> where do you think investors want to be positioned? >> i think investors need a

value mindset and look for strength in terms of growth statistics, profit margins for a very important reason, we don't make a growth or value recommendation, though we make a large or small recommendation. there are times you can find value within industries, companies that happen to be housed in the growth in techsde, there's times they don't offer value like a couple years ago when we saw a low on 10 year treasury yield and investors were in the hunt for anything with a yield, bid up the stocks and they were not value stocks, even though they were still in the indexes. to have a value mindset doesn't mean put on blinders and buy russell value indexes, you need to look for the fundamental of value but you need that profit margin, reasonable growth story to go with it. >> can you give us an example? i don't know if you're allowed to name. talking about like a facebook? >> i don't cover individual

companies. we adjusted sector recommendations. we had three outperformed ratedings, health care, technology, financials we moved utilities in the underperformed category back up to neutral that reflects in the case of health care a sector where you can find value but still get a growth story as well >> liz ann, russ, thanks to you both >> thanks. coming up, it has been a good morning for fang stocks tech is the worst performer for the week is now the time to invest? a deeper dive into fang, especially facebook and other tech names that's coming after the break. dow up 166 stay with us at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

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or paying your bill is easier than ever with x1. x1 help. another reason to love x1. say "teach me more" into your voice remote to get started. fang stocks get a boost from this morning's rally, all up 1% after significant declines amid market volatility. facebook is down more than 10% since start of the year. joining us a take, victor anthony, and brian wheezer gentlemen, thanks for joining us >> thank you. >> victor, i'll start with you you still like facebook. we've seen more headlines that aren't positive for the name why do you like it >> i think risk reward is compelling at these levels

5 to 10% down side versus 30 to 40% up side for the stock. listen, i think investors have been somewhat disenchanted by guidance for 2019 and margin pressure, public headlines about data breaches, regulatory pressures, i think all of that weakened investor confidence rightly so facebook comes out of this in better fundamental shape investors are willing to stick around with zuckerberg and cheryl sandberg. i think they get rewarded. i think risk reward is compelling instagram is working well, under monetized assets, and core facebook platform which hasn't been as positive as in the past. i am getting more positive feedback from advertisers than facebook i think they still have 2 billion users. i don't think users are going anywhere they'll come out of this in

better fundamental shape, need to fix the platform, get more users build trust in the platform and i think it will work. >> i want to dig into the comment on twitter a little more brian, when it comes to facebook, do you agree with that thesis >> not at all. some of the investment community is knowing the negative enough there's too much optimism on potential market opportunity i don't think the investment staunlds that the global advertising -- understands that the global advertising industry is growing at a modest rate. digital advertising can only take so much share so you have deceleration on the top line cost pressures, i don't think the company is necessarily aggressive enough in what it is communicating based on what it needs to do. it is plainly not doing enough

to do what it has to do. the fact is the company is underinvesting in basic things, making sure ad products comply with laws. making sure that they're partnering with data partners that aren't going to violate terms. there's so many areas where they underinvested. on top of that, just the basic content moderation i don't think investors understand how many people it will take to make sure that they're not causing more chaos in more countries around the world. it should be positive, if he can influence at the top and invest heavily enough, but these costs are not contemplated in what most investors are thinking about right now. >> to that point now, victor, i think you mentioned that advertisers seem to be more positive about twitter than facebook do you think it is concerns playing into that? >> first of all, i definitely

want to say they gave guidance for significant cost acceleration for 2019. i think that addresses what brian says he makes valid points. twitter, we conduct checks everyone does it the checks have been positive for twitter. roi has been better, execution has been better. they could do more with ad loads outside the u.s. domestic time line there's reasons to be optimistic about futures, twitter's ability to generate advertising growth >> brian, i have a question on the faang complex overall. they're so well owned. whose the marginal buyer over time? i talked to hedge funds that suddenly are getting scared, a lot of names are featured in portfolios, they're underperforming again, they may be sellers i'm curious what you think about when you think about flows in general to what's been one of the key performing parts of the overall market >> sure. i only cover facebook and

alphabet of those names. i think it is safe to say that there's been a lot of momentum trading driving stocks up, and i think that they're going to react to momentum going the other way as well, it is a bit of a risk. less concerned about alphabet specifically, they seem to be better run for lack of better characterization and they're already offering at pretty depressed margins, they have more flexibility if you will to the extent that momentum has negative impact, it would hurt facebook a little more i think >> and victor, before we wrap up, same question to you >> i think amazon is probably the best longer term value for tech i think that stock could double in the next two, three years, by double, could reach $2 trillion market cap. >> i think you said that before. >> i said 1 trillion now i am back with the 2 >> you are doubling down

$2 trillion. quick valuation on that? >> i value some of the parts i think the retail business valued around 600 billion today, i think it could go to a trillion aws business could go to another 400 billion. that i see doubling to roughly 800 billion. revenues going 50%, margins expanded for aws, and advertising business, could do 10 billion in revenue next year. that's a high margin business for amazon put that together for three years, stock doubles from here >> big calls from you both thanks for joining us. when we return, uber, lyft weighing ipos early next year. what to expect from the potential market debuts next

weighing ipo next year this in a week that saw competitors uber and lyft push for debuts, and others rumored to be on deck, slack and airbnb. here is bob pisani. >> sounds like great news but are you watching what's going on with the ipo market? it is in terrible shape. plenty of talk that aging unicorns may go public, it is all wonderful. good luck on this. this market volatility is really hurting investor confidence in ipos the renaissance capital eft has gone public, has taken a tumble, down 10% versus 4% decline in the s&p 500. that's what market volatility does to the ipo business this week, 8 ipos were scheduled

to go public, two postponed, five are below range a few days ago, solar winds set the price of ipo, 42 million shares, 17 to 19 they priced 25 million at $15. half the amount they expected. 55 ipos in the last three months, half are now below issue prices, including names you know internet browser opera is down, sonos is down. cushman and wake field is down recent chinese ipos have been a problem as well, viomi down 6% this is big implications for tech unicorns that may want to go public. recent volatility in china caused ten cent -- venture

capital firms have huge amounts in unicorns, many had money tied up more than a decade, they're looking to get out that's an issue. what if the volatility continues. these tech unicorns that want to go public next year have three choices. number one, take a lower price number two, float a smaller number of shares, or number three, have to postpone the offer further out into 2019 or 2020 what they choose to do depends on demands of private equity investors and needs of the companies. i know that a lot depends on their own individual needs all i'm saying is this is not a good market for ipos right now i know there's a lot of happy talk about these guys finally getting out. >> but these are the biggest growth names we have had a lot of growth has taken place while they were private companies. uber, air bnb going public, if

the market is choppy, it makes it difficult but these are special ipos. >> all i am saying is look at the prices suppose they want to go public at $30 if it goes public at $25, is that disaster? no you have people that get a better deal. all i am saying is these people want higher prices in a volatile market, it is more difficult to get higher prices not like anybody loses money, i am saying pay attention to what's going on. when you see prices dive, 50% of ipos are underwater from the last three months, not a good sign with the market up overall. >> this was a stat 2019 could be record breaking for ipos in terms of dollars raised, could top 2,000. when i see a stat like that, makes me think market top. >> these specs that we have all the time, special purpose

acquisition companies, to me that's worry some. this is basically trust me, i'm really famous. i'm a famous guy, going to go out, raise money in a year or two, i will buy something but it will be good because i am famous, have i told you that that's what's going on with those. when you have that kind of activity going on, it is a sign of a somewhat frothy market. i am still optimistic, i don't want anyone to think the world is ending. i'm saying when you get this kind of volatility, it really hurts pricing on the ipo market and that's something these people have to consider. pressure is on, with interest rates going up and venture guys locked in for ten years on this deal, you know this, david, you covered the business, models don't allow them to sit there ten years on an investment >> it is a very long period of time when it comes to early investors in uber or airbnb --

>> but some of the things are in double letters, we are in series ee invent new series to describe. >> numbers they talked on uber, 120 billion versus softbank in at 60. >> i wonder if there's a tight labor market component to this as well. i'm sure you have a lot of employees at the companies that have stakes in these companies, probably want to be able to cash out and see some of the money realized, too. >> that's the main pressure a lot of the companies face, and they're right. they want to move on with their lives. i'm not suggesting, the demand for them to go is there, i'm just saying watch out. >> you know what the biggest criticism is, bob, so much of their growth period took place while they were private, and broader -- >> completely. depresses me to watch us all watch a bunch of private equity guys make all the money.

it depresses me endlessly. i wish we could go back to the late '90s. at least they had a chance to go broke together with the dot com bust then they said too many went public too early >> in the '90s it was pretty bad. >> bob, thank you. as we head to break, shares of alibaba are up 1.5% as we approach the singles day alibaba saying this year's will be the largest ever in what has been a multi billion dollar day of sales in years past. checking the dow now, we are rallying, up about 125 points. more "squawk alley." back in a moment

good morning, everyone i am sue herera. here's your cnbc news update at this hour. general scott miller, top nato commander in afghanistan says he doesn't believe he was the target of an insider attack that killed a senior afghan official but left miller uninjured. >> i want to offer first and foremost my condolences to the afghan people for the losses experienced in kandahar, but what happened there was an

attack on the security forces, but i'll tell you, still remain with the security forces chinese officials say their economic growth sank to lowest levels since the global financial crisis in the latest quarter, amid a trade war with the united states. chinese leaders say they're confident the economy can survive the trade conflict. as you know, the mega millions jackpot stands at $970 million. thursday, the illinois lottery handed out 900 free lottery tickets at a small grocery store to celebrate one of the largest jackpots in u.s. history the drawing takes place tonight. get your tickets that's the news update this hour back downtown to "squawk alley." david, i'm sending it back to you. >> okay. i'll take it thank you, sue. markets in europe are closing with italian budget concerns top of mind let's get to seema mody for the european close. >> david, it was this time yesterday where u.s. markets fell lower after the european

close. look how stocks there are finishing for the week we're mixed on the day italy benchmark finishing barely above the flat line after steep losses in the previous session having the fourth straight weekly decline the real action in the bond market volatile session for the italian bond market, closing lower, reversing earlier gains after the european union warned of breaches in italy's draft budget, the ten year at a four year high. the eu is asking the italian government to make changes to the draft budget plan on monday. italian banks suffering notable losses falling by as much as 5% not a strong start to earnings season in europe germany automaker daimler cutting guidance for the year, citing regulatory and diesel emissions issues saying earnings will be significantly below last year's.

those concerns are weighing on a number of other automakers like bmw and volkswagon which are also trading in negative territory. but it is not just automakers, key suppliers are posting the worst drop in 8 years after cutting the forecast the french tire maker citing weaker demand in western europe and china. it is interesting that the rival in italy is saying it is seeing strong demands in china. we have to see how things shape out in the coming months auto is one of the main sectors with high exposure to china. a step back, looking at the performance of european stocks this week, yesterday's selloff, still higher, in positive territory for the week key market driver monday will be likely italy as we see how the government decides to respond to brussels morgan, back to you. >> thank you seema mody. some news from the treasury department >> morgan, the treasury

department is out with new rules for investors that want to take advantage of a big new tax break for financing development in core neighborhoods they're called opportunity zones. treasury secretary steven mnuchin says they could draw $100 billion in private capital. investors can defer taxes on capital gains that are reinvested in the funds up to 8 years and also discount gains up to 15%, and if investors hold the stakes for ten years, additional gains are completely tax free treasury said only capital gains are eligible for the special treatment. as for who can invest, it is open to individuals, corporations, estates. there has been a lot of early interest in funds. one investor says he has begun soft circling $50 billion. guys, this is a completely new program. a lot of investors have been waiting for these rules as a green light from treasury.

he expects those reds to be finalized in spring. >> isn't this a hud program? isn't that something that ben carson talked about as well? >> no, this is something completely new it was created under the new republican tax law as a way to try to draw investment into some of the underserved areas there are obviously many different programs across the government for trying to achieve that same goal but this is a program that gives big tax breaks to investors in exchange for trying to finance the developments. >> do you know how they identify a low income area? what are the metrics to identify it and the borders of it >> this is up to the state to decide they can nominate different census tracks within their borders and submit it to treasury department in order to get certified and in order for those areas to receive this type of financing there's a lot of debate over some of the neighborhoods and whether or not they really deserve that type of

designation, whether some of the money may not have been flowing into the areas already, but what the treasury department says is that these are high poverty areas that have poverty rates well above the national average, and includes basically all of puerto rico. >> before i let you go, i want to shift gears a moment. there's another story you were reporting on, i want to get your thoughts on it, senator harris and other democrats are proposing to repeal president trump's tax cuts and replace them with cash payouts for the poor and working class sounds like the introduction of universal basic income can you tell us about this >> you're right, morgan. this is a program that would create essentially a new tax credit, some cases called working family tax credit that would allow low and middle income households to receive between $3,000 to $6,000 a year. they can even access that money each month that's a very big change from the way the current tax system works. what makes it different from universal basic income is the

democrats say they want to tie it to work in order to ensure it isn't a government handout, but this is just a sign of how bold and aggressive democrats are getting with their platform as they look not just to midterm elections but also forward to the presidential race in 2020. for corporations, what i would say is they have to watch this previously what we heard from democrats is proposals that would nudge up the corporate rate, corporate tax rate to 23 or 25% now you hear democrats talk about a wholesale repeal of the republican tax law, replacing that, using that money to give it to low and middle income households shares of p&g are surging after reporting a big earnings beat what the ceo told men othe other side of the break. "squawk alley" will be back. in . she thought it was a fire. it was worse.

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i am scott walker, here's what's coming up on the halftime report breaking down the dow's wild week whether there's more reason to stay invested in u.s. stocks. and mike santoli with a special report on whether this is a correction or a deeper draw down. and just as disney hits a 52 week high, one analyst makes a big call on the stock. we stdiscuss in the call of the day, about 20 away see you then >> sounds good

thanks, scott. aditi roy is looking at where to find value in tech outside of the faang names aditi? >> good to see you faang stocks are rebounding as we have been talking about after this week's tech selloff, saw shares decline 2 to 4% some worry and are looking for value beyond big tech names. look at the tech spider eft. it is up year to date. big movers include paypal, up 8%, better than expected earnings report. shares on pace for the best day in two years microsoft is up to date after being initiated as outperformed, getting approval for a purchase. we look to next week for more answers. the company is scheduled to report wednesday shares up more than 28% year to date big focus is the growth in the

azure cloud business thursday set to be another busy day for tech earnings, alphabet, amazon, intel, twitter look for other google revenue, cloud, hardware and android app store. amazon back below a trillion dollar market cap, has seen shares rally more than 50% year to date. investors looking to see if they can maintain momentum on top line growth. look for the aws growth rate and operating margin. looking at tech names in the tech sector, 30 components are up 10% or greater year to date while only 11% are down 5% or less back to you. >> thank you aditi roy in san francisco. when we come back, closer look at auto a downgrade of morgan stanley, and daimler cuts guidance. are autos in tubrole we have that answer right after the break.

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>> over time you see evidence it is getting better and it is working and certainly the fact that the markets are both stable and some of the big ones like the u.s. are picking up a bit is very positive because innovation lands in a growing market, you get much better results. and certainly the u.s. was a very positive part of this quarter's results. we are dealing with what is a very difficult environment in many countries because of the dollar strengthening. >> is that why the guidance stayed the same? is that why the conservative outlook? >> no question with the range of potential outcomes in the commodity and foreign exchange combination, you know, we want to be prudent about anything we would say going forward. i do believe the strategy is working but i also know i can't predict. i would not have predicted three months ago we would have $400 million of additional head winds. i think we're working extremely hard to make sure we maximize

our value creation in that environment, and if fx were to moderate, that would be very good news, and then the positive momentum would show up even more if fx continues to stay as bad as it is now, then we have to see what happens the pricing depends on what happens in the marketplace often if you leave pricing in the early part of pricing, there's impact to consumersand to volumes >> just a snippet of the conversation which i will be playing all day with david taylor talking about results he doesn't jump on the phone that often speaks to how well they did this quarter. you heard a little about strength in the u.s. and the fact that the market that helped with the wage gains and low employment, but he characterizes it as a p&g turnaround story said wished it came sooner, but it is bearing fruit. i said which part of the business is working. beauty was quite strong, home care was good, grooming even

turned around, he said it was broad. nine out of ten categories showed strength. it is a leaner company, something that he has been pushing and trying to convince wall street that this is the right strategy where they cut out a lot of the middle management decision makers and let the units geographically and product wise make faster decisions and he said that's what's actually working. also said we need to see more days like this with the stock up 7%. >> i realize there's a turnaround story for the company more specifically but if you look at consumer staples, you see some of the rivals trading higher kimberly-clark earnings are beginning of next week how do you think it sets up the broader sector for earnings? >> clearly it is lifting p&g spoke of a growing market, not just that they're growing market share which they're doing as well but seeing it across the board. early results from uniother bras

starting to pass on higher prices to consumers. so far so good david taylor said it is early on that front and it will be uncertain as to how consumers absorb the price increases so far the conversations with retailers they say are going well and it is working and that's a big part of the story. let's talk about this. what do you do with a move like 7% if you're a p&g shareholder number one ranked analyst on the street, covering consumer staples. you have been kind of negative on p&g in the past does today change anything for you? >> you're starting to see things we have been arguing about a long time come to fruition what are they doing, they're cutting costs, in investing a lot back into business to get the top line to look better, not losing as much market share and dropping cost savings to the bottom line. seems like they're finally doing it, bolstered by better consumer in the u.s. for sure.

>> what i kept pressing david on is, is this sustainable. there's so much they can't control. they're on the front lines of a strongdollar, crises china is doing quite well but, again, there are questions about how strongly it is growing >> i think p&g specifically even in the context of a different macro environment can do very well the surprise to me more is how all of this appears have traded up in sympathy they're not losing market share. i would argue p&g can do much better in the hpc world but p&g is doing a good job. >> you haven't been the most positive on this name and have

embraced the name it would be better, if i recall, being broken up potentially. does execution have been reflected in results this quarter change your thinking on that overall thesis? >> so, look, one quarter is good progress our belief remains they can't get all the cost savings out of the business they should consider breaking up we'll have to see. i don't think it's the end of the road by one quarter which is to be fair one strong quarter. >> what kind of increases are we getting in consumer products pampers, diapers and a lot of the paper-based products because of the rising pulp prices. how much is the consumer going to feel this, and at what time period >> i think it will be a big pitch. you're talking in a 3% to 5%

range of an increase that's not in the u.s that's not small that's a really big increase now to be fair the commodities are up 50% and 60% it's a pretty small portion relative to what your commodity price increases. you'll see this by the end of the year if not the start of next year. the question is will the consumer balk. we do expect to see some volume pullback and that will be the thing to watch i think david taylor's hesitancy in terms of guidance >> do you think it's leading to bigger and better? they haven't had a blockbuster hit since the swiffer taylor did use the word innovation in our conversation, one of the first words, and the cfo said that's how they get higher margins. is that working? what type of products?

>> i wouldn't argue you're seeing it any more than before i think what the structure has done in terms of the incentive base, it's made people responsible for their businesses remember what used to happen, something we complained about quite a bit is that people in the organization weren't responsible for things they had control over they weren't responsible for the business they actually operated. now much more delegated control, so your control of your area driving people to take bigger risks and be more successful people have more control of the execution of that innovation that's certainly showing up positively here. >> what's the upshot >> we're still working through the models this increase in the confidence and what they're doing and certainly we're hoping they continue on this path of maintaining market share is really important for them. >> it's up 7% today. thank you. >> thank you taking a look at where we

stand on the broader market, we have seen the dow's gains get cut here a bit it's up 100 points we were up almost 200 about an hour ago s&p 500 up 0.4%. the nasdaq losing steam. your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today.

automobile companies making moves in this volatile market. shares of ford are lower after it's downgraded by morgan stanley. phil lebeau is in chicago. he has it all wrapped up for us. >> reporter: the general feeling on wall street these will be pretty ugly numbers, the numbers coming out wednesday after the end of day trading take a look at shares of ford. morgan stanley cutting the company's rating to equal weight, price target moved down to $10 at the same time jpmorgan cut q3 by 36% a number of issues here when you look at slowing global production, china sales down 40%. it's european sales are softening. the company reports earnings next week. it will be significantly below expectations

the profit warning is due to issues, the second for daimler take a look at the model 3 and the reason we're showing you the model 3 tesla ceo elon musk announcing on twitter they're going to introduce a lower priced version, what they're calling a mid-range version that will start at $45,000. when you look at shares of tesla, how can they increase production and increase deliveries and, oh, by the way, go back to when they introduced this in april of 2016. the stock does not outperform the market overall >> that's interesting. phil, it's funny today the stock started up with some enthusiasm for that $45,000 price point. many questions whether it is $45,000. >> right most people who have been buying a model 3, they're not at the

$35,000 price point touted by the company for a couple of years. i have a friend who just bought one $54,000. at the end of the day as much as they talk tax rebates and incentives, people buy a car primarily on what will be the monthly payment. they don't sit there and say if i get the tax rebate it will be $35,000, factor in not using gas, $30,000 nobody does that very few people do that. and that's why tesla keeps pushing this price point down in that $45,000 range ultimately they're trying to get as close to that as possible >> phil, thank you phil lebeau. coming up later on "the closing bell" an interview with the ceo of panera bread, the trade wars impacting the bottom line his new owners and what they're trying to do to conquer the cafe

world. that's laettner the day. >> you've had an all-star lineup today. >> the consumer is always front and center >> in terms of industrials, you had the honeywell earnings fluctuating between gains and losses again, the impact of rising costs, which seems to be this emerging theme in earnings >> that's going to do it for us on "squawk alley." over to scott wapner david, thanks. i'm scott wapner is the steep sell-off in china and fears of a bigger slowdown in europe even more reason to stay invested in u.s. stocks after a wild week for the dow, when will this volatility end? it is noon and this is "the halftime report. chinese slowdown, euro-fear, will it hurt the u.s. or make domestic stocks bust out of the slump? plus, a host of bi