it is 5:00 a.m a long way to go president trump throwing cold water on any near-term deal on trade with china. stocks pulling back a bit from record highs. will results from netflix, bank of america or microsoft be game changers nothing is quiet on the western front. technology under fire from all sides. facebook heading back to capitol hill for another round of grilling. amazon also feeling the heat european regulators reportedly launching a new probe focused on the company's use of merchant data. and why the fed may want to look at the happiest place on

earth if they're looking for inflation. it's wednesday, july 17th. "worldwide exchange" begins right now. ♪ good morning, good afternoon, good evening and welcome from wherever in the world you may be watching. i'm brian sullivan that's shot of the beautiful u.s. capitol in washington, d.c. that's where facebook will get ready for a second day of testimony over its contested libra digital currency we'll go there live in a moment. first your markets and the global money stock futures are slightly higher now dow futures are in the green, up about 30 points now. the dow, s&p and nasdaq failing to close at record highs yesterday. the blue chips turning in their first down day in the last four. bond yields remained steady. the ten-year yield is trading at about 2.10%.

exactly on the ten-year. around the world, you look at asia, a theme the last few days. not a lot of big market swings japan reopened down 0.3% you could see slight moves here. a similar story in europe. not a lot of numbers on the move in any of the markets, if they move, we'll show them to you >> here's a look at commodities and currencies oil fell yesterday on the idea that maybe the u.s. and iran would get a deal around sanctions. secretary of state pompeo making comments like that if that occurred that would put aryan n i iranian barrels back on the market gold, which has been red hot, at 1,403. the u.s./china trade tussle remains front and center president trump saying the world's two biggest economies have a long way to go to get any deal done on trade, even suggesting the u.s. could impose a new round of tariffs

>> we have a long way to go as far as tariffs we have another 3$325 billions that we can put a tariff on if we want. we're talking with china about the deal i wish they didn't break the deal they had. we had a deal where china opened up, intellectual property theft would be taken care of >> joining us is jeff kilburn. we saw markets not react much to that news. is that a positive >> i think it is we talk about negotiations there's a lot to going on here with these trade tariff negotiations i think this is part of the negotiations, they may be brash, but this is the way president trump negotiations it's a tactic getting us closer to a resolution. lastly remember the last time we saw president trump move those tariffs from 10% up to 25%, the stock market went up 6% in those

two months >> at some point it becomes the new reality. how old are these tariffs now? it's been over a year. there are no signs of a res lug resolution in five years from now will we still talk about tariffs on china? the market has to adjust >> the market has become de-sensitized to this rhetoric right now president trump is in a good position. he's focused on 2020, the re-election and the stock market, the federal reserve. he has time to breathe i think it happens this year in 2019 >> where are the opportunities around the world if you're looking to get away from the trade fight you talked about india >> yes >> the world has come back into focus. >> by in large the federal reserve, we talk about what's happened with the u.s. dollar. right now this morning it's above 97

it's been range bound. as long as we see a stagnant dollar, a debased dollar, there's opportunity in japan >> japan's stock market, that's been a slow slog >> i have three etfs i like dbjp, that's hedged equity exposure. eem, that's emerging market. >> that's primarily china. >> it is we see upside once these resolutions come in. and indy, that is the india 50 yes, they are dragging the s&p 500, but that international play with the u.s. dollar coming lower in q3, that's where you want exposure. >> is this going to be a weaker dollar trade >> despite what larry kudlow says about king dollar, we will see a weaker dollar. >> trump basically says -- he hasn't said he wants one, but he

complained about the euro being too strong >> you bring up a good point think about next week, we will see the ecb talk about more stimulus here we are, the federal reserve, the markets are not wanting a rate cut they don't need a rate cut, they're demanding a rate cut we'll see an insurance cut by jay powell, then we'll wait and see. this is all a one-two punch. that dollar debasing, it's happening. you have to be overseas to get that exposure. >> is it wrong this market is demanding a rate cut >> completely. >> now it's like the kid with candy. if i don't get it, i'll lay down on the floor and have a tantrum. what happens if don't get a rate cut? that's not taper tantrum, it's powell pouting, whatever you want to call it. >> i like that >> i just made that up what does that look like >> that would be quite the 'tis

z tizzy. they have done a nice job of being transparent. laying the foundation for this rate cut i don't necessarily agree with it, but it's happening july 30th. we anticipate that they vice president ability to wait and pause until october to re-evaluate. they need to figure out what's going on in europe >> the pause that refreshes. there you go jeff, good stuff >> thank you shares of rail giant csx are under pressure in the premarket. transports are considered a leading indicator for the economy. frank holland has more >> good morning. csx down 6% this morning after a miss on earnings and on revenue. the railroad operator cutting revenue guidance for the year, expecting a decline of 1% versus an increase of nearly 2% csx citing economic uncertainty as this industry is dealing with the fallout from trade tensions.

on the call the ceo pointing to a weakness in domestic and export coal volume, the shutdown of a refinery in philadelphia could affect crude oil shipments. food and auto products grew by 2% the company says it has been directly impacted bay shay a sh decline if trucking rates over the past year. despite this, csx is up 20% on the full-year. union pacific and kansas southern also reporting this week >> that philly refinery fire, they got most of their crude oil to north dakota from philadelphia on csx. tech's triple threat from de c. d.c. to brussels, why the industry seems to be coming under fire. and the stock you need to watch that is setting up for some big losses at the open.

it's your mystery chart. and later, the tribute you do not want to miss. incredible pictures from our nasna nation's capital commemorating the "apollo 11" mission. uch mor. let's not just develop apps, uch mor. let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. ♪ ♪

. good morning welcome back 5:11 here. big technology some of america's biggest

companies coming under fire here and abroad facebook executives will head back to capitol hill for a second day of testimony over their highly contested libra digital currency the european union set to launch a formal investigation into amazon and how it uses data from third party merchants. more fines could be ahead. if that was not enough, you also need to watch any fallout from president trump's comments that he will take a look at google's dealings with china prompted by cams from peter thiel. today g7 ministers are meeting in france and they have technology regulation in their sites. steve sedgwick joins us now. you have four big stories in a way, steve, to follow up on. it's a big one >> it's almost too much for the g7 to really contend with at the moment the g7 is one of those organizations that came out of the bretton woods agreement, which 1944, out of new

hampshire, the global architecture that we now have with the imf, the world bank, basically 75 years old this week it's creaking. so it the g7 the way forward for the likes of the u.s. and france to thrash over these issues? despite those concerns about regulation state side for those big digital companies for the tech companies, for the mobile products such as libra, there are concerns from the u.s. that the french are going ahead with taxation issues and they don't like it. mr. mnuchin and bruno lemaire having a hard chat about it here in france. also i've had a quick word off the record with jerome powell. he didn't give us many comments, but he was talking last night in paris about the effects that interest rates and an interesting conversation you ha effects of the u.s. rates. it's not just affecting the u.s. but the rest of the world.

the global nature of the financial crisis and the channels through which it spread highlight the interconnectedness of our economic, financial and policy environments. u.s. economic developments affect the rest of the world and the reverse is also true we have seen how monetary policy in one country can influence economic and financial conditions in others through financial markets, trade and confidence channels. pursuing our domestic mandates in this new world requires that we understand the anticipated affects of these interconnections and incorporate them into policymaking chlg. >> so does u.s. lowering help the u.s. and the rests of the world? because the amount of money in debt, loans, bonds out there is enormous new figures this week show $3 trillion worth bonds need refinancing by the end of next yea year >> steve, any dpis kuiscussion,y

concern, any debate over crypto or facebook's libra? >> masses. masses you know, they will say it's about regulation they'll say it's about the stability of the global monetary infrastructure tell say it's about money laundering i have a question for viewers. is it also about keeping control? are they terrified these actions from the central banks, whether it's the ecb, the bank of england, the federal reserve, are they wondering if they will lose power if you have an alternative currency out there that they don't have control over kuroda says the g7 is having a wide ranging debate on libra can you believe that all the issues in the world and they're talking about a facebook product? it's extraordinary they're asking the question is it a stable coin they'll say we're worried about the volatility of the asset class, but i think there are a whole host of issues talking about global policy coordination that might be brus in.

>> brought in >> a lot going on there. joining us from london is elizabeth schulze. how is facebook responding to concerns from lawmakers about the privacy around libra >> yesterday we heard david marcus, the head of this libra project at facebook trying to say we want to work with all of you regulators and law americas on ma lawmakers on making sure this is secure there are questions of privacy and david marcus said in his testimony that the swiss data privacy regulator will be overseeing the privacy issues related to libra we talked to that wreregulator, they say they have not been in contact with facebook. so there may be a bit of questioning around how seriously they're taking this and

ultimately questions about trust on the platform, given that facebook has the 2.4 billion users and they would like to tap into those payments. >> amazon day ended yesterday, the eu, does it look like it will be more aggressive antitrust potential action against amazon from europe >> we know that this amazon probe was coming cnbc spoke with the competition commissioner a couple months agoment they said they were talking to serl sellers and they are investigating how much amazon uses the date to it sells on its platform to its own advantage. so they act as a host and their own merchant they are trying to say are they abusing dominance there? there's been some questions in europe on how to approach amazon given that it's not dominant in the e-commerce market, in the overall retail market, but when it comes to data and how it can track user data on the platform,

that's a place where it looks like the eu will take things seriously. this announcement could come in the coming days here from brussels >> elizabeth thank you very much. appreciate it. still on deck on "worldwide exchange," really a tale of two stocks one company warning of new regulation in china, slashing its outlook. the stock is down. on the other side, the business of biotech is booming. investors are cheering we'll reveal those names to watch when we return

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welcome back the sun about ready to rise over new york city. united airlines second quarter profit did beat forecasts on strong domestic demand the company expects to boost capacity by 4% as it rearranges schedules due to the grounded 737 max. united has agreed to buy 19 used boeing 737 700s which are set to arrive in december by the way, oscar munoz, a big interview on "squawk box" around 8:00 a.m. shares of seattle genetics are popping. the biotech reporting a wider second quarter loss but revenue jumped nearly 30% beating forecasts led by the sales of its drug forhodkins.

and nuskin is cutting second quarter guidance citing china's campaign to review its campaign on selling such products. the ipo rush rolls on. the largest live streaming platform looks to make its public debut in the united states. we chehave elon musk lookint make science fiction a reality, linking a human brain to a computer by the end of this year details next hajj kin hodgkin's

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china's largest live streaming platform will debut on the nasdaq today douyu pricing its ipo last night at the bottom of the expected range. they said they sold 775 million in stock douyu has streaming rights to dozens of e-sports tournaments in china. let's check the other top stories including a bizarre one about how a man tried to hide drugs in his hair or maybe not his hair phillip mena has more on that and other stories. >> yeah. it's a good one. good morning first retired supreme court

justice john paul stevens has died he was the third longest serving judge in the history of the court before retiring in 2010 after nearly 35 years on the bench. he came on as a conservative but was considered a liberal by the time of his retirement the white house offered their condolences saying stevens was known for his humility and affection for his beloved cubs justice stevens was 99 years old. a rare rebuke of president trump spirals into a bitter partisan brawl on capitol hill the house voted to condemn president trump for telling four members of congress to go back to their home countries. democrats decried the attack as basis. only four republicans broke to join the democrats. here it is, a bad hair day for one colombian guy in spain police at barcelona's airport discovered more than a pound of cocaine up there underneath his

toupee it had street value of over $33,000. authorities say the wig drew the attention due to its disproportionate size and that the guy was acting nervously can you blame him? how can you possibly have thought that would work? >> there are people right now that are listening to "worldwide exchange" on siriux xm, they are denied seeing that small pet on top of his head. why he thought he would walk through the airport with that hair or whatever it was. she have said it was a service dog laying on top of his scalp >> not bad or gone with the beehive >> thank you very much coming up, issanta claus coming to wall street this summer we'll look at some ways to make money in the market that you may have never heard of before (client's voice) remember that degree you got in taxation?

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morning. it's wednesday, july 17th. you are watching "worldwide exchange" on cnbc. ♪ >> we'll show you what this app does they did it to me. now i just want to cry welcome back thank you for being with us. i'm brian sullivan let's check your money that's why you watch cnbc to figure out what will happen with the markets. we're up 38 points now on the dow futures. volumes have been dismal some of the lightest volumes we've seen in years. maybe the market is waiting on july 30th. why? that's the fed meeting that may be the day we get that widely expected rate cut the bond market is also reacting you heard rick santelli tell you that yesterday the downward march in yields likely reflection of an expected rate cut already priced into the

market in japan, closed yesterday trading again today. but nothing around the world is happening at all asia and europe all down very, very fractionally. with stocks hovering near record highs, what is the best move for you and your money joining us now is sylvia jablonski. you guys are known for these levered etfs, three times up, three times down as well you have one called want you also are known for your interesting tickers. sic -- >> cure. >> okay. so we said christmas in july if our viewers are very optimistic about consumer spending and consumer stocks doing well, what does this etf do for them? >> so what this etf does, it gives them three times exposure to the underlying index, the consumer discretionary select sector index that index has a huge holding of amazon it's been a leader

in july it was up 8% our etf is up three times that it's a short-term opportunistic trade. the reason we say christmas in july is because amazon had prime day basically for the last 2 1/2 days or so we expect that some of the numbers out of that will be positive there's basically three parts that drive the economy investments, exports and the consumer we saw retail sales are strong, and we think consumer discretion may continue to rally. >> you said heavily weighted amazon i looked in, it was 24% of that is amazon. >> right multiply that times three. >> so about 40% is three stocks, mostly amazon. so this is a play, just so viewers know, this is really a play on amazon >> it is it is. when you take the three products, you multiply the holding of amazon by three so you get a significant

exposure to that stock which in the short-term has done quite well >> that is want. what is need >> need is consumer staples. >> toothpaste? >> exactly >> paper towels. >> that defensive play like cycle performer play. it's the consumer is going up sort of holding back but they'll keep buying toilet paper and toothpaste so you have the full staples a good balance sheets, good net income and dividends they don't pop as much lower beta to the market >> we have netflix earnings out today. netflix is a name everybody knows. a lot of people out there may have invested in it. what products do you have that would highlight a name like a netflix? if you're going big -- these stocks can move big. rolling the dice in a big way, is there a way to play netflix >> 3x communications is tak, you

get exposure to netflix and other communications names everybody looks for the subscriber number there. but now you have disney and comcast making big plays in the sector i think if you're bullish on communications in general, tak is a great short-term trade to look at. >> is there any macro trade for the trade war? is there a way to play europe or china or currency devaluation? >> so china has been a huge one. i would say much of our flow over the last few months has been to the relative different china etfs that we have. one is a three beta play on msci china. it's called yin, and we have china "a" shares >> you have yin, is there a yang >> if you're a bear, you're a

yang if you're bearish on chinese domestic stocks, because chinese stocks are hard to buy here. if i wanted to buy a stock in china, almost impossible >> you pretty much can't do it >> i have to have a local agent, they buy it for me >> with this you are buying on the u.s. stock exchange. yin and yang if you're the international market, the "a" shares >> that's the hong kong market >> yes >> you asked how do you play the trade shares if we get a trade he agreement and these things simmer down -- >> if you believe hong kong listed stocks will struggle, you buy the yang >> you buy the chang on the chad the chad is an inverse fund, the yang is a 3x fund. if you believe it's sort of undervalued, low valuations, those stocks have done great prior to this month when the uncertainty came out

post g20, the latest tweet that turned them around in the short-term, the inverse fund over the last two days has done well. >> sylvia jablonski, always interesting. thank you. >> thank you facebook heading back to capitol hill for a second day of testimony over their libra digital currency ylan mui was busy yesterday covering multiple technology hearings we won't let you sleep keep it going. >> i'll always wake up for you, brian. >> at least somebody does. thank you very much. so what will happen today? >> facebook will be before the house financial services committee and democrats there have already given this new cryptocurrency a thumbs down maxine waters is circulating a new proposal called keep big tech out of finance. i expect her to talk about it at the hearing today. it would prevent platforms with more than $25 billion in annual global revenue from developing a

digital currency the goal is to create a firewall between commerce and banking the teni lpenalty he for violats $1 million a day yesterday facebook appeared before the senate banking committee. john ke republican senator john kennedy accused facebook of trying to control the money supply and sherrod brown compared the company to a toddler playing with matches facebook tried to be contrite. >> we agree with the legitimate concerns raised by chairman powell, secretary mnuchin and n many others. this is why we released our white paper so much ahead of any public launch. we wanted to ensure that we take the time to get this right and getting this right means addressing these concerns in full ensuring there's proper

regulatory oversight for this project. >> we'll see if facebook fairs better before the house. back to you. >> appreciate you being there for us thank you very much. it is not just facebook feeling the heat reports this morning that the european union may be launching a formal investigation into amazon's data practices. you also had president trump saying his administration would look into google's dealings with china. joining us to talk about all of it is jimmy pethokoukis a cnbc contributor and cyrus mawala is this all light and no heat, jimmy? what is going to happen? just more side shows congress yells at people, they grandstand and nothing changes or will they enact meaningful policy changes here? >> i think we're past the point where we can just sort of dismiss all of this as daily

kind of one-day hit headline risks. these companies certainly think that there's big political risk here they're ramping up lobbying operations they're reorganizing their lobbying and public policy operations they think there's a risk here i think they're right. i think the antitrust risk is real it's not as real for amazon, even though they were the focus of the antitrust hearing yesterday. whether it's antitrust there will be some regulation over the next two to three years. i'm not sure if it will look like europe's regulations, but there will be regulations on issues like late data portabilid you have this weird treason issu issue. >> that's from peter thiel, well known guy, but a facebook board member, founder of palantir, so

he may have a reason to criticize google did you find his comments out of line in any way? >> i think america has a big problem when it comes to china the hawks in american politics are getting more hawkish about china. china is vying with the u.s. to become the world's sole superpower the key to being a superpower, you need to be militarily strong and economically strong. ai can be used for the military and for civilian purposes. that's why in some areas of what google is working on you may classify it as a defense contractor in the same way that lockheed martin shouldn't share designs for the f-35 with chinese researchers, there's an argument to say why is google sharing some of its ai technology with chinese researchers when it can be used for military purposes. >> listen, peter has a reason to say this stuff president trump saying he will

look into this, what do you think looking into it means? do you think the u.s. government or trump has the political desire or the political will or the political ability or maybe congress for that matter to really take a deep dive into google or anyone else? >> i think the president does. perhaps the cia or fbi's peter thiel recommended it the president attacked google in the past he accused them of rigging search results the reservoir of goodwill is very, very low listen, yesterday i was on twitter. i was tweeting with the chief of staff of senator josh hawley of missouri a republican critic of google. he mentioned the bias issue. that's a longstanding criticism. he mentioned privacy he mentioned china this has become sort of a full front problem for these tech companies. and there seems to be new issues popping up every day >> but what do people expect

if i said to you 20 years ago, cyrus, i will give you a device, i will put it in your pocket it will track everywhere you go without you knowing. it will show you where you stop, how long you stay there, what you think about, you would have said you're crazy. what are you, north korea? that's the phone we do it willingly nobody is forced to be on twitter, facebook or use google maps does anyone have a case against these companies when this is all self-directed? >> i think the biggest issue for tech companies is they don't have one regulator coming after them on antitrust issues like ibm and intel did, they have ten regulators coming after them on national security issues, data privacy, obstruction of justice, all types of things. so they need to be worried in terms of the google issue on national security, the outcome must be that the u.s. imposes very clear guidelines on how to

share potential military secrets in the world of ai how to share that with people. the u.s. has an open source view to academia when it comes to technologies like 5g, ai, augmented reality. and there needs to be clear barriers otherwise military grade ai technology could leak out of the usa because researchers in u.s. universities are working with chinese universities in a way they would never leak out of china. >> there is a simple way to solve this if facebook offered a platform and said for whatever dollars a year you pay us annually, we'll show you no ads, you know why they don't do that numerous reports have posted that number for them to break even on what they make from us would be $400 a year to use facebook they will never do that. the business of us is too big. any product that does not charge a fee clearly is using us as the

product. how can anybody complain >> us as the product, yet it's in the interest of these companies to make sure their consumers are happy, that they're improving their product, they're providing accurate search results we are not a passive product we are a key element of their business >> we are their business >> beyond the 202 area code -- >> twitter, instagram, facebook, they're empty stores we put the product in you. guys like you, cyrus, myself, if we weren't on twitter there would be no twitter. >> if we're not treated well by these companies, thee will lose us and those advertisers this relationship with our data being shuffled around distorteds the two-way nature of this

relationship >> it feels more one way >> don't charge me for google search >> they're not because they're making too much money on the back end good discussion. kind of went off track, whatever one giant leap, it has been a halfcentury since mankind se foot on the moon out of this world tribute to that major milestone, that's coming up next. and later, earnings on deck. the big banks continue to report excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad.

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dow futures up 43. a bit of an acceleration in the market is one thing you might be talking about today. let's find out what else will be trending in your world frank holland has some trending stories. >> i have a good one

>> that photo app? >> yeah. >> i don't like it >> we'll get to futuristic science first. mind reading technology may cross from the realm of sigh he ye science fiction. they could connect a smartphone over bluetooth. they plan to have the first human patient with this tech by the end of next year this would help the lives of those suffering from severe brain injuries elon musk said it could help people who are paralyzed allowing them to control their body parts with robots >> that's amazing. >> longer-term, he says it could help the simbiosis of artificial intelligence >> so you could become a chess

grand master within a day. >> have psych ek pic powers. everybody i know is trying to slow down the aging process the top trending app in itunes will speed it up it's called face app you can upload a selfie and apply filters that will make you look older or younger. the app is free for a three-day trial but it costs 19.99 per year after that. we got some demonstrations on how this works >> do we have it our team asked us to take selfies. they made us age did they do the younger or age >> let's look. >> you look good >> this works for me i look terrible. it's ruined my day literally i can't go on. the rest of the day -- i have to host the noon show >> i don't think this was a good selfie to start with

it's not good lighting you're backlit >> i've never been more sad than i am right now >> you look great now. >> the future -- >> because i'm wearing makeup and have good lighting that app -- >> i'm aging like fine wine. >> you look good >> i look pretty good. >> let's go on to something more important. otherwisely start crying >> this is pretty amazing. in honor of the 50th anniversary of the "apollo 11" anding, a life-sized hologram of the saturn 5 rocket was project the on to the washington monument. if you missed it, don't worry. the projection will return to the national mall tonight and tomorrow >> you forget how big it was and powerful it was. we would lose two, three astronauts a year back then from explosions what they did is incredible. by the way, they did almost all of that pre computer

there were some rudimentary computers out there. my father worked for trw in the '70s with the voyager program, it was mostly guys writing on chalkboards. >> that's where the famous quote comes from >> or the app. that's a giant leap in age thank you. on deck, banking on earnings bank of america ready to roll out results this morning what the financials may be telling you about the markets and the economy. stick around w?w?uhi?só'ñó moving is hard.

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go to xfinity.com/moving to get started. time for your executive recap. shares of monster beverage are trading down about 1.3%. this follows a report out of

london that the british health secretary plans to ban the sale of energy drinks to all kids under the age of 16. before yesterday's close the stock was up 34% this year a new read on the commercial real estate market is pointing to a slowdown. the architectural billings index dropped into negative territory last month inqueries fell to a new decade low. and shares of qualcomm are on the rise. this comes after the justice department asked a federal appeals court to wait on enforcing a major antitrust ruling against the mobile chip supplier let's get back to the markets and your money stock futures are up about 44 points right now some people out there in the market will be watching earnings, bank earnings specifically bank of america set to post numbers before the bell. joining us now is michael

purves congratulations on beginning your own firm. >> thank you very much >> earnings. do they matter >> they always matter. the question is what is priced in this quarter is distinct in that it should post a negative growth year over year, certainly there's some calls about wow that's an earnings recession that will be portending other things i certainly don't look at that going back 12 months, it was a reco record, certainly in hindsight that was a sugar high to gdp we're simply in my mind both from an earnings point of view and from an economic point of view adjusting back to this lower steadier not very exciting economic cycle that has a few more years in it than we might

otherwise have if you look at a 4% nominal gdp over the next 12, 18, 24 months, will you squeeze out 5%, 6%, 7% earnings growth out of that? probably yes >> the reason i asked if they matter, i hear bob piesani's excellent reporting, the market expects a slowdown earnings today are so well managed by corporations. yes you have to listen to the guidance what are they saying have you heard anything from anybody or any company -- i know it's early, but has anyone said anything that shocked you? >> you touched on an important point about how well managed earnings are if you go back through the average beat across the sectors, across the s&p 500 over the last really i think since 2011, every single quarter there's a pretty handsome beat. both on earnings as well as on

revenues so this idea about if you're a ceo, cfo, you get out in front, you manage carefully there's an incredible focus from the c suite on not only managing the street but also massive cost control. buybacks are back in business once again here. >> that's the reason i asked about earnings and if they matter companies have bought back so much of their own stock they have been able to mitigate by reducing the shares outstanding so massively that i don't know what earnings per share means anymore because shares have shrunk if you're a ceo and paid to generate earnings growth because you want to get your stock price higher, doing it through buybacks, it puts much more control in your hands. >> good stuff.

we have to leave it here the show sending that's what happens. it's so good, it goes like that. >> yes >> michael, thank you very much. congrats on your own firm. no time for the rbi today. that's it for us on "worldwide exchange." i'll see you at noon today "squawk box" begins right now. good morning trade in focus after president trump threw cold water on any near-term trade deal with china and stocks retreated on that news economic data and earnings could be the big catalyst today. big tech is under fire facebook will be back on the hill for another day of grilling amazon faces a new probe from the eu about its handling of data bitcoin falling back below 9500. we'll tell you what is driving the cryptocurrency lower on this wednesday july 17, 2019, "squawk box" begins right now.

♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm beck along with joe kernen and andrew ross sorkin our guest host this morning is kevin o'leary. great to see you >> great to be here. >> lots to talk about today including tech regulation. >> yep >> you had some comments on this yesterday. >> it's a never-ending great thing to bash companies. if you're a politician you can get air time with it it will go nowhere it never will matter when the election cycle is over, nothing will change. that's my take people are getting bored with it the general population they don't care about the privacy issues that's what i've realized as a consumer >> that and also they get a lot out of the tech companies. it's hard to tell a consumer you're doing them good if you end up