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good friday morning. welcome to "squawk alley." i'm david faber with courtney r reagan and mike santoli. >> we will kick things off with amazon shares higher after earnings, just slightly. about a half percent profit doubled to a record high while announcing plans to introduce one-day delivery to prime members. our guests join us now thank you for joining us aaron, there's slowing growth at amazon kind of glossed over by the fact we'll move to one-day or at least that's the goal going forward. spending 8$800 million to do it in the second quarter. ultimately the question is is that worth it? it's an awful lot of money, and are they doing that because they need to increase the loyalty of current prime members not to lose them or are they trying to get customers back

>> helps continue to differentiate amazon versus the market roughly 90% of the retail market is still offline 10% online amazon has a third of that market they're making the bet over the foreseeable future, moving to one-day shipping, you can gain more market from the offline market we don't have the data they have suggesting that, but clearly they're making the bet they can gain significant market share from online and offline by moving to one-day shipping >> there's always a lot to unpack when we are look at the amazon report. they're involved in so many business when you look at this and see shares up a half percent what's your sort of bottom line of the entire amazon business? are we giving too much credence to this one-day announcement and glossing over aws and the growth

there? >> i'm not surprised at all by the way the stock is reacting. primarily because there's a fear out there that there's another investment cycle coming down the pike for amazon. remember what happened between 2014 and 2017. the stock did okay it didn't do great in 2018 it effectively doubled if you look at the margins, that tells you they were able to generate from all that inve investment that they went through, it paid back nicely in 2018 so if you look at our numbers, we lowered our eps from 47 to 42 for next year. we lowered our margins in large part because of this new announcement of the 800 million for q2 all that said, i agree with aaron, this is something that overtime will only differentiate the amazon value proposition it will only make amazon stronger and frankly not great news for e-tailers or retailers.

for all the other stuff, aws continues to grow well we almost take that for granted. the other businesses, the marketing business, that's growing mid 30s. we started to take that for granted. this investment cycle is kind of on the margin of what is scaring some investors >> aaron, maybe not surprising after the move the stock has had that it doesn't move much. it's interesting you have a 9$90 billion market cap company, they get a 50% upside earnings beat and it's as if the market had it figured out all the time or the eps doesn't matter much what are the ingredients that upside earnings beat, whether it's increased services sales or more service party sales, they're saying you can't extrapolate that, it's not strategic, it's an accident. how do we think about earnings per share? >> a lot of the beat we saw in the quarter is from lower

fulfillment center build out we saw that in 2018 and q1 amazon had said on the conference call, we should expected that spend to increase. that in combination with the increased costs of revenues from the increased shipping the 800 million we talked about. that will depress earnings over the next few quarters. i think good margins on the quarter but expect higher spending throughout 2019 it's a tale of two tapes >> in your note you're pointing out sales at physical stores amazon reported that's growth of 1% you make some adjustments and say that's more than 6%. still amazon doesn't have the physical fleet some of these other retailers do, like a target or walmart. target today in response to the one-day shipping says guests have numerous ways to shop they receive purchases within hours, they give us the buy online, pick up in store, or drive up

acknowledging that they need both, online and physical stores can amazon do this without that physical store fleet is it concerning at all that the physical store growth is quite meager >> i think whole foods is the first step in a multi-step process. they've doing the next version of amazon grocery, they have about 20 stores in the u.s. right now. the chances are they're going to dramatically expand that over the next several years yeah make no mistake about it the vast majority of shopping still is happening offline i agree that having a dual online/offline strategy is the right one. i don't think amazon is losing that battle. i think that process is progressing relatively slowly. and amazon has the wherewithal, the smarts, the data to kind of

have a big seat at that table. >> aaron, if we can end on international. international retail increased 16% year over year amazon made a big change to the way they're going to do business in china china is such a valuable market to so many it seems like they're giving up, ceding that territory to alibaba. what do you make of that >> not a big surprise. amazon had low single market share in china alibaba is the leading player there. jd is also big there we think it was the right decision for amazon. china is a losing game for them. we would rather them double down in india they have a nice market share in there. amazon focused on india, europe, rather than a losing position in china. we think that was the right choice for them.

>> india is not without hurdles with the changes going on there. thank you for joining us today. a big show ahead uber kicking off its ipo road show, slack sees a huge valuation ahead of its debut. and later bob swan, the ceo of intel, joins us on the company's earnings ♪ ♪ creating the perfect night... just takes a little creativity. the light beer you've been waiting for has arrived. lower carbs. lower calories. higher expectations. corona premier.

uber is kicking off its ipo road show setting off a price range between 80 and $90 billio valuation, and slack gets a $70 bill evaluation. leslie picker and deerd deeidrsa have both of those covered for us this morning. >> uber is making visits to all of their lead underwriters today. first at goldman sachs this morning and then morgan stanley, where there was plenty of signage welcoming them here, then they will meet with b of a to explain to them how to pitch this deal to investors it's the largest u.s. listed tech deal in five years since alibaba went public in 2014.

they're expected to sell about $10 billion worth of stock in the ipo. they released a price range setting it at 44 to $50 a share. that implies a valuation of a diluted basis of 90$90.5 billio at the high end of that range. now as part of their marketing process, uber is trying to differentiate themselves from lyft which went public several weeks ago and down about 21% from its ipo price the differentiation for uber is touting its size and scale as well as global reach and really honing in on this idea that they have a much more diversified business model in freight and eats and other new areas. some key problems still remain especially as you look at the q1 financials also disclosed this morning. these are projected financials but still they give you a picture of what they're looking at from that standpoint. they showed operating losses of

about $1 billion for the first three months of the year and top line growth has slowed some key questions for investors will remain as they continue their road show over the course of next week and the week after. >> uber trying to distinguish itself from lyft, maybe that lyft experience coloring the anticipated valuation here let's turn to slack. deid deidre >> busy days for the ipo market. slack confirming they will do a direct listing on the new york stock exchange slack is a cloud-based messaging software company like zoom it gained viral adoption thanks to simplicity. that let it compete against the big guys like microsoft, facebook and cisco the key question for investors can they convert free customers

into paying one. 88,000 customers they have are paying customers just 575 are paying more than $100,000 annually. the pace of conversion is important. these numbers look good. slack pay customers grew by nearly 50% last year and it nearly doubled the biggest paying customers it is spending more money to do so revenue grew more than 80% last year, the pace has been decelerating net losses have been steady. the company will become public with a dual class structure but not be founder led stewart butterfield raised 1$1.2 billion in capital over the years which allows him to do this direct listing, but he has had to give up a lot of ownership. vc firms own the biggest stakes, 24% and 13%. softbank got in in 2017 and has

a 7% stake the company was last valued at 7$7.1 billion in the private market as reported yesterday, shares have been trading in the secondary markets at a higher level valuing slack at nearly 7 $17 billion before that direct listing. >> interesting to emphasize the direct listing, as you pointed out. spotify was the one that people can think of as at least analogous. it performed well. but it is a different approach given you're not actually raising capital. >> that's right. and that's why you're seeing this price discovery happen in the month leading up even in the s 1, slack identified where shares had been trading in the secondary markets. as of march they were trading between1 21 and $24. this is all in an effort to get that price discovery before it

lists. with a direct listing, there's no book building there's no underwriting. the front page of the s1 doesn't have those banks listed. this is a different method which requires a different process to get to market. >> speaking of that different method, the ipo for uber at one point it had been reported the bankers looked at an evaluation of 1$120 billion, now perhaps 80 billion to 90 billion. what happened with lyft's listing may color what will happen expectation-wise for uber is that along the right lines of thinking >> i think so. it's certainly no coens deninci that after lyft goes public you see reports about uber tamping down expectations for its own valuation. as investors assess on whether or not to buy into this deal, they will look at comparable

companies, a key one is lyft no matter how much you wanted to differentiate your business, that will go into the model. the lower the lyft valuation, the less people will be willing to pay for uber. >> just in that category of comparing slack with other existing companies, maybe like a dropbox where you have a pretty popular consumer technology application, software based, but only a small percentage of registered users pay for it. so the whole game is how many subscriptions can you sell, how many corporate and premium memberships. >> it has sort of a viral adoption which you saw with dropbox, a consumer facing company and going into the enterprise space slack is mostly used among teens. what's important leer ahere ares and marketing costs. dropbox didn't have to spend a lot of money to get users to pay

up, that's the model we're seeing with slack. you have seen sales and marketing costs increase over the last few years you might also compare it to a zoom, which just went public to a lot of praise. we know how that's been doing on the markets. >> good thoughts to chew on. thank you. when we return, shares of intel getting slammed in today's session after cutting revenue guidance the ceo, bob swan, sits down with us next stay with usride saf k i did an . just ok? what if something bad happens? we just move to the next town. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. plus, buy one of our most popular smartphones and get one free. more for your thing. that's our thing.

a rare appearance last night in wisconsin by officials from foxconn. the taiwanese company promised to build a massive factory complex in the state in exchange for billions in subsidies, but the plans keep getting murkier scott cohen is at the construction site to try to clear things up. >> welcome to what's known as

the wiscon valley. this is what is going on some construction but not a beehive of activity. foxconn was going to spend 10billi10 billion and build a plant here the deal was praised by president trump in 2017. since then foxconn has been making its presence known in the state. not just construction and buying up buildings, but events like the one up in milwaukee. foxconn awarding winners in a million dollar technology competition. but that is a far cry from $10 billion. foxconn has already missed its hiring targets for last year it has missed the initial date for construction on the main plant. and it has changed the product mix that is supposed to be built here, all of which had the

governor telling reporters last week that the deal, the contract, is being renegotiated. >> the deal that was struck is no longer in play. so we will be working with individuals at foxconn and of course with wedc to figure out how a new set of parameters should be negotiated >> wedc is the wisconsin economic development corporation. republicans pounced on that claiming that evers is trying to sabotage the deal. he says that is not so he says it was foxconn that first proposed making changes to the deal foxconn says it is still committed to hiring 13,000 people, but its head of u.s. initiatives did not inspire confidence with a tweet the other day. who has the crystal ball to predict if 13,000 jobs will be created? he made that statement at the event again last night if foxconn doesn't hire the

people, to doesn't get the money. but local governments are already spending tens of millions of dollars on infrastructure improvements and they won't get that money back guys >> scott, thank you for trying to untangle a little bit of that story. appreciate it. scott cohn seema mody joins us today with today's european action. >> we'll look at the eurozone currency the euro is at a two-year low against the dollar heading for its fifth weekly decline in the last six confidence among business leaders in germany and manufacturers both fell unexpectedly in april. and we had those weak pmis across the eurozone yesterday. a trio of earnings reports l highlighting the challenges among european banking and the auto sector. deutsche bank reporting a big profit jump last quarter but revenues in investment banks a weak spot, down 13%. rbs also reported stronger than

expected profits but warned that macro economic uncertainty around brexit will make income growth challenging more evidence that the auto sector remains weak in china despite signs of a rebound in other consumer driven sectors, daimler reporting a sharp slowdown in profits. sales at its mercedes-benz division falling 3% in china this after peugeot offered weak guidance that is a sector to watch. the auto sector in china makes up about 4% of china's gdp >> among many other sectors to watch in china thank you. let's get over to tyler mathisen, he has our cnbc update harvey weinstein back in a new york city courthouse for a pretrial hearing on his sexual assault case the judge ruling the media will not be allowed to be present at

an upcoming hearing. kim jong-un leaving russia by train, five hours earlier than planned a russian news agency says kim's delegation requested to cut his visit short. north korean state media saying that kim told putin that peace and security depends entirely on the united states. the after again president inaugurating the new parliament almost six months after elections were held because of claims of vote every fraud, unresolved political disputes and political bickering. the founder of yellow vest sit he zcitizens saying preside emmanuel macron failed to follow up on yellow vest emands let's get back to "squawk alley." coming up, bob swan jos inus after the break. stick with us.

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turning back to amazon, it is putting pressure on competitors. target down almost 6%. walmart down 2% with its push for one-day prime shipping it is just interesting in this battle that we knew that was probably i ef tabnevitable at s point, so a retailer like a

walmart or a target had to expect this would happen at some point. they're doing their best to catch up to two-day. they're aggressively marketing other options. walmart saying within 90% of the u.s. population with stores. they're saying we can get it faster than two day, faster than one-day, order online and pick up in the store. but this opens up questions, how much money should be invested to try to catch up? what does that mean if you're an investor in the stocks walmart said it expected its losses from digital to be higher this year than in years past it's surprising to me to see target down much more than walmart. >> it's a very strong selling reflex on this news. the question is, is all that investment expense really just going to be maintain market share? is it just going to the benefit of the consumer mostly >> sure. it is interesting to hear this from amazon. is this a defensive play, do

they want to increase the loyalty of prime members or are they worried they're losing some shoppers >> sure. >> shares of intel are also lower, dragging down the dow, this after cuttingfo foreca forecasts. ceo bob swan said the company is taking a more cautious view of the year on the quarterly conference call. he joins us now on the phone mr. swan, nice to have you thank you for joining us >> good morning, david nice to be with you. >> i'd love to start on china, since it did seem to play an important role in your lowered guidance for the year. can you give us specifics in terms of what you're seeing there? i know you highlighted as a growth headwind, not only cloud but enterprise and communications service providers. is it your sense this weakness in china will continue for some time >> david, the china market is a

significant market for us and has been a big source of growth forev for us over time if you look at last year, the demand for china was significant. the cloud service providers through the first nine months of the year last year were up almost 100%. the question comes into the fourth quarter and the first quarter this year, what kind of g digestion would we see from that massive growth last year what we see going forward is that congresumption will take a little bit longer. and that will be across all three segments within the data center business, the cloud, enterprise and government and com service providers. >> i know as part of your outlook for the client computing group in particular, revenue remains unchanged. it does seem to be pointing to your expectation that the second

half of the year is going to see a significant improvement. what confidence can you offer that that will become the case given things have not started off particularly well? >> the client business in the quarter had a good quarter we're up 5% revenue. unit volume was down in the first half of the year the demand signals remained relatively strong. we don't expect different demand signals from the second half what we do expect is we're going to improve the supply, supply constraints we've had in the first half of the year we believe by the second half we'll have more capacity in place and meeting the demand profile we're seeing throughout the course of the year it's less about a change in demand profile on the client side it's more about getting more capacity in play to meet the demand profile we've seen over the last couple of years >> bob, with the stock now down

about 10%, obviously it seems investors are wondering how much we have to -- they have to reset expectations for the longer term trend for the industry-wide cloud investment cycle what can you say about your guidance and how it bears on the longer term capacity for that market to keep driving growth? >> you know, the trend that we've seen, the demands per data and the need to store, process, analyze that data, those end demand signals are as strong as they've been whether it's in the enterprise or whether it's in activities of consumers, demand profiles are extremely strong for the industry it's really more lumpy buying patterns that we see particularly in cloud where they buy, then they consume they buy, then they consume. with the demand profile at the end remaining relatively strong,

we think medium and long-term it will be beneficial for our business we're dealing with the lumpiness right now. >> bob, goldman sachs this morning comes out in the lead of their review of numbers, cpu demand appears to be weakening across multiple end markets. more than offsetting your efforts to reduce operating expenses i assume then you don't agree with that thesis >> i think, david, the distinction i would make is the end market the demand for data, the creation of data, the compute, the analytics, the storage required are very strong they have not really changed how chips get bought is lumpier than the end market. end market stays relatively strong last year was a huge year for our pcg business with 21% growth now we're just going to the

digestion period the end markets are relatively strong >> you decided to, as you say, focus in the 5g business or change your focus to some extent or sharpen it, i think that was the word why are you no longer in the business of selling 5g chips into wireless smartphones? >> the 5g market for us is extremely important. it has been and it always will be and our expectations are we'll lead in 5g when we talk about leading in g 5g, it's primarily at the network. we believe 5g will bring about the convergence of communications and commute at the network, at the com service providers and at the telcos. that's where we'll play. we have a strong position. we see high-growth

characterestics, technology inflection and we can makeinves. we're also looking at opportunities for modems at the edge, the proliferation of devices that will benefit from lore latency in a 5g world for smartphones in particular, we just concluded that we don't see an opportunity to make money. so we decided in the last couple weeks we'll continued to focus on 5g at the network we'll continued to evaluate opportunities in the 5g modem at the end, but in the smartphone arena, we concluded we don't see a path to profitability, therefore don't want to divert resources where we don't see opportunities to get attractive

returns for investors. >> is there no profitability in that smartphone market because of the apple and qualcomm settlement does that play a part in this? >> obviously we have a large customer in the smartphone arena that we're serving today in the 4g or lte world. we'll continue to serve them as we look going to 5g, we look at all the dynamics, characteristics going on we always try to conclude we have a real technology differentiation where we can make money and in light of the dynamics in the market we made the conclusion we do not and we made the decision to exit 5g smartphone market. you're a constant and large capex spender, but also in the first quarter you bought back stock at a rate of $10 billion annual rate around there, 2.5 billion in the quarter any changes in thinking around

that equation in terms of how you would allocate capital and because of potential policy changes or valuation of the stock or other reasons >> our biggest capital allocation decisions are around putting in the capacity required to serve our customers, and we're a significant r & d investor that's leading technology and inflections. those are the biggest components in 2018 and in 2019 our capex is as high as it's been in the company's history. that's a function of investments we're making to grow the business in terms of distribution to shareholders, a key component of our capital allocation has always been organic investments first, strategic acquisitions second, and third paying an attractive dividend and taking advantage of a disconnect in what we believe the intrinsic

value of the firm is and using our strong balance sheet and cash flows to reduce outstanding flow when we think it makes sense. in the first quarter you've seen that you've seen that over the course of the last couple of years. where we think it's opportunistic we're using our strong balance sheet to take advantage of a disconnect in what we believe the intrinsic value is >> bob, on the call you said you were honored with the best job in the world when you got it more than -- a little less than three months ago today with the stock down 10%, is it still the best job >> absolutely. it's about the company, the technologies we build, the impact we have on the world is significant. i'm as honored today as i was 90 days ago looking forward to talking to you 90 days from now >> we appreciate your willingness to come on rain or shine, as we say it's important thank you. >> thank you >> bob swan, intel ceo.

a look at disney's potential billion dollar box office weekend. that's next. first rick santelli, what are you watching >> i'm watching how the markets are trading after what looked like a strong gdp number we'll answer the age-old question after the break, is the economy off to the races or just a bunch of one-offs? we'll find out and discuss it. come back.

let's get over to the cme and rick santelli and the santelli exchange. >> this gdp number this morning, it was stronger than anybody had anticipated. i know i was and many of my sources and pals on the trading floor were in the 2.5 or smidge higher camp. but you had to be brave to put forth a 3 handle on the pree. p prediction that gets me to the point. a lot of analysts are trying to point to a lot of different facts and say this number overestimated that the headline number of 3.2 is just not sustainable. i understand that. there are what my guests this morning called a lot of one-offs but before we get to the one-offs, let's go to what we actually can quantify quite clearly, for all those out there that like to monitor the relationship between low

unemployment of course and higher inflation, known as the phillips curve you may want to put on a helmet for this my opinion is the phillips curve is dead and swirling out of control. we had growth. the price index today of 0.9 was the smallest since the first quarter of 2016 when it was minus 0.2. the personal consumption expenditure core at 1.3. the lowest since q1 of 2015 when it was 0.7 consumption, this is a double-edged sword on so many fronts if you're building widgets, one issue today was regard to inventories. inventories probably built this number up by two-thirds of a percent. so it was closer on the high side of 2.5% because it was 1.2.

that comp is going back to q1 of 2018, basically one year when it was 0.5. but remember, first quarter is supposed to have all these anomalies. as you notice they kind of do. just like they do now which means most likely we'll see higher inflation rates, but it's all about the growth the distortions came in mostly due to trade and what i was talking about. the inventories are making all these cross-border flows so confusing. in q4 all the distortions and one-offs is because imports were coming in. people wanted to beat tariffs. the surprise in the first quarter was exports were good but do memestic demand was low. all these issues of trade are great to fight over because we're fighting over a 3.2 headline people thought trade would hurt the headline, what happens when all this gets worked out think about that there's a one-off that will keep on giving.

courtney, back to you. >> thank you very much, rick santelli rick santelli for us in chicago. the latest tech unicorn is joining us next, and so it an ipo for this company >> and is a billion dollar weekend opening ahead for "avengers: endgame." "squawk alley" still ahead stick with us. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. like.. pnc easy lock, so you can easily lock your credit card when its maximum limit differs from its vertical limit.

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a new unicorn has entered

the transport and logistics world. keep trucking is valued at over $1 billion it counts uber fragteight amongt competit competitors. it's business. great to see you and thanks a lot for joining us today congratulations on the fund-raising round if you could just start by describing what your product is, what the technology is, and really what key kind of problems within the trucking business you're targeting to try to solve. >> thanks for having me. keeptruckin builds the hardware and software that allows trucking companies to operate more safely and efficiently. we started with electronic logs but include safety, asset management, driver work flow and now today, with more than 250,000 trucks and 55,000 trucking companies using

keeptruckin we've built the network and unlocked the data that now allows us to change the way freight is moved we recently announced our smart load board which is essentially an open marketplace that connects those who need capacity, brokers and large asset based carriers, with those who need loads, the independent owner-operators and small carriers and we believe that the fleet management platform and the connectivity we've built with such a significant base of supply in this market gives us a chance to really build the freight marketplace of the future >> so how would this compare or compete with what uber freight is doing i mean, i assume, first of all, that there's some legacy, you know, trucking industry vendors that have been doing something like this or attempting to and now you have uber freight in there as well. >> yeah, so, what uber freight is essentially building is a private freight network.

they're going to drivers, truck drivers, and saying, put an app on your phone so we can track you and bring you loads, and that concept has value, right? brokerage has existed for quite some time in trucking and they're building a more efficient freight brokerage. to contrast that with us, we started in a very different place. our hardware and software is used by trucking companies to actually manage their drivers to improve safety, to improve efficiency, and through that connectivity we've built, with such a significant base of capacity, we are now building an open freight marketplace where any party that has loads and that needs access to capacity can participate. and so, while they're building a private freight brokerage, we're building an open freight marketplace and that concept is, i think, fundamentally different and it hasn't been possible until the connectivity was

really there in the entire segment of this market >> we've been talking all morning about amazon's attempt now to go to more of a one day shipping model for prime it just is sort of emblematic of the fact that there's so much demand and so much stress maybe being put on the moving of goods around this country. what does it mean for the trucking industry in general and essentially, can the industry serve the ambitions of the e-commerce economy right now >> yeah, consumer expectations are forcing firms to change. the companies that really have internalized and are adapting to that changing consumer expectation are the ones that are thriving amazon is a great example there. they're remaking their supply chain to be able to fulfill on that new expectation, that realtime expectation, and the rest of the logistics industry, the third party logistics business is being forced to adapt as well. and this is actually driving the

adoption of technology among trucking companies the industry recognizes to compete and to deliver a quality service level, they need to be able to deliver visibility you can't -- you want to be able to track goods continuously, and the connectivity that companies like ourselves are generating is making that possible >> yeah. i know you've highlighted some data about just how many trucks drive the roads empty so obviously that's something of an opportunity for you, i suppose shoaib, thou thank you very mucr your time today. we're going to take a quick break but "squawk alley" returns in less than three minutes don't go anywhere. everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3,

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a big performance out of china this opening weekend could push box office revenues for disney's "avengers: endgame" close to $1 billion. julia boorsen is in los angeles with more. a billion dollars for a opening weekend. >> really unprecedented. we're starting to get the early numbers in for "avengers: endgame" and we are seeing record breaking numbers from territories all around the world. these numbers do put the film on track to near as much as

$1 billion in global box office. that would dwarf the prior record of $640 million that was set by the last avengers infinity war disney reporting that thursday night previews in the u.s. brought in some $60 million in ticket sales that's the biggest opening night ever, beating "star wars: the force awakens. this pushes the film above $300 in global ticket sales in just its first two days the film's performance in china bringing in about half its global take so far that shows the film and marvel characters really striking a chord in the world's fastest growing box office, the film benefitting not just from rave reviews and 96% positive rating from rotten tomatoes but also from positive word of mouth. com scores north america audience survey found over 80% of movie goers would recommend the film to their friends and nearly 30% say they'd go see the film again in theaters "end game" is expected to help

turn around the box office which is down over 16% so far year to date and further boost theater stocks which are already up this year disney is expected to dominate the summer movie going season. disney has a murderer's row of films coming out including toy story 4, the lion king and aladdin. disney is releasing half of the summer films with a budget of $100 million or more disney is also going to be featuring marvel in its upcoming streaming service which launches in november, so a huge audience of fans who loved avengers is going to help grow the potential subscription -- subscriber base for that key launch coming up, guys >> and julia, we understand you saw the movie. is there any chance that this is truly the end game after such a financial performance? >> i don't want to give away any spoilers, mike but i think that this is the end of a chapter for the marvel franchise. you know, over a decade of films really culminate in this movie,

but i'm sure they'll find ways to use many of these characters moving forward >> all right, julia, thank you very much. not all the characters are gone, apparently appreciate that. >> some of them never go away. that's going to do it for us on "squawk alley. everybody have a great weekend time to send it over to the half right now. >> i'm melissa lee in for scott wapner today our top trade this hour what is the intel from intel the chip maker on track for its biggest one day decline in nearly a decade. it's 12:00 noon and this is "the halftime report. >> intel is under pressure the ceo speaking moments ago what the chip maker's outlook means for the rest of earnings season plus, the call of the day. one wall street firm is grounding this shipping stock. the traders will debate it and josh brown is making moves in his portfolio he's buying a stock that's up more than 80% this year. why he thinks there's more green ahead. "the halftime report" begins right now.