good morning.it it's 8:00 a.m. at door dash headquarters in san francisco, it's 11:00 a.m. on wall street and "squawk alley" is live ♪ 33 ♪

good friday morning. welcome to "squawk alley" with morgan brennan and jon fortt at post 9 of the new york stock exchange obviously watching these markets here dow is down 331 after yesterday, deep in the red. the dow, the s&p, and the nasdaq are all on pace for their worst week of 2019 tech names getting hit pretty hard, apple, alphabet, facebook, intel all down around 2%, guys this is a period in which trade concerns might result in selling that's a little more indiscriminate than we've seen in recent months >> and among the tech names, a look at cisco that's down closer to 4%. some other cloud names not doing so well. you see, dell is down more than that you know, network appliance -- well, that one has its own issues but certainly, hp down 5.5 a lot of these trade issues rippling through not just the

names that have higher valuations or have high flyers, but some of these core enterprise tech names, vm is another onedown almost 8% in this trade >> if you look at all the major averages, we're now lower not only for the week, for the quarter, but also over the last three months utilities and real estate are the two names within the s&p sector universe that are holding up gold rowan is continuing to rally. that's broken above the 1450 market, at 1457 right now. here's the thing about the u.s./china trade situation and i say this as somebody who covers national security and covers defense the u.s. is also today officially pulling out of that inf treaty with russia the implications there, it's not just about russia, it's also about the fact that we've had this bilateral trade deal or bilateral nuclear arms control deal that china has not been subject to so that is in focus there. we have got troops that are poised to be getting pulled out of afghanistan right now, as well the reason is because we have this defense budget, we have

this defense strategy that is focusing on peer-to-peer threats and strategic competitor threats. and china is a key part of that. we're raising defense spending that just passed through the senate yesterday as well, to focus on that. so we can talk about trade and we can talk about tariffs. but i think you have to see the bigger picture here, and that is that the trump administration has been hunkering down for a much longer haul conflict, i know that's kind of a strong word to use, face-off with china overall, and i think tariffs are just a piece of that and it's something investors need to take note of >> but, how? because the doctrine's not clear, right instability -- we were just talking about powell kind of being inconsistent the trump administration has been amazing in its inconsistent in the way it surprised the market yesterday with this latest tariff announcement so if that is what investors should be factoring in, it would be nice if someone would explain, big picture, exactly what the trajectory is >> yeah, but we also just got

that fed cut earlier in the week you also had these democratic presidential debates that quite frankly, if you're the president, you're probably stepping back and going, uh, you know, who's really going to run against me and what is this going to look like some of those people on stage were almost as hawkish if not more hawkish than the president on china and i think the way this administration is looking at it is it's a win-win. either you get this trade deal that changes things structurally or you have tariffs in place that continue to push business investment and jobs outside of china over the long-term >> big questions, obviously, with the vix now above 20 and the dow down 315 part of the tech pressure this morning is coming out of washington in "the new york times" op-ed, peter thiel again questioning google's work in and for china, while the journal says that facebook's acquisitions are being investigated by the ftc. all of this as amazon's cloud business faces some new scrutiny from the department of defense what does this mean for the stocks joining us today, rbc's mark mahaney and mizuho's james lee

mark, that's a lot it sort of flies in the face of the quarter so far, which has been about reacceleration and revenue, right >> yeah. well, you just threw a lot by me so let me start off here, i think peter thiel is absolutely right with his comments, but they're more political in nature about google i think the ftc and facebook, i don't know what's going to be looked at there. i find it extremely unlikely that facebook will be required to unwind an acquisition that it did seven years ago. that would be instagram or whatsapp five years ago. i think that would be extremely unlikely, almost entirely unprecedented. and then, what i find really interesting for both the stock and also for the politics is what's happening with the dod and amazon here. i think it's very hard to see why amazon and also probably microsoft wouldn't win the dod contract if you're going to outsource cloud commuting by the pentagon to one company, if you're only going to do it to one company, i can't imagine you can do it to anybody other than amazon.

they're the clear leader in cloud commuting, and maybe you bring in microsoft as a backup, a second source. you certainly wouldn't bring in some of the other companies that have been mentioned, like ibm and oracle i find that very unusual and frankly a little bit disturbing. that's all i've got to say on that >> mark, that's a key point. and you have to look at the companies that have to handle these top security rankings, that the pentagon is even looking for. that being said, if you look at how, i guess, cloud economics have played out, for example, in the business community, we have seen more companies shifting more of their, you know, cloud to a variety of providers, and also doing things like hybrid cloud. should the government be thinking about those policies? >> oh, absolutely. look, there's a lot of evolution that's going on in cloud now and actually, one of the most interesting from a product technology perspective is the aspect of machine learning and artificial intelligence.

it's part of the offering, what's making aws's offering and azure's offering much more robust it's just hard to see a player beyond those three and frankly, there's a clear 800-pound gorilla and a 600-pound gorilla in the space with the best capabilities and tractions in the market, that's aws and azure and it still looks to us that google cloud is a pretty distant number three player i assume all of this has been evaluated by the pentagon, so it's a little odd they're going back to re-evaluate the situation. >> what are the internet aspects you see with this increasingly tense situation between the u.s. and china? >> absolutely. if you look at peter thiel's commentary, it really underscores the relationship between the u.s. and china it's more about trade tensions, more about the technology battle of the two countries but i think china failed to realize that u.s. actually controls the vast majority of the technology here. and especially in the semiconductor technology

i also cover chinese engine and names. i talked to a lot of engine executives what they're concerned is, what happened to huawei what happened to chinese internet companies and it would have a detrimental effect for example, i talked to an executive recently they said, if bewe were targeted by u.s., our operation would screech to a halt, meaning we can't even get excel files or microsoft word because we cannot get the licensing from microsoft specifically i think china has to tread very carefully as a result. but certainly, i think what's underscored here is really battle of the technology ip between u.s. and china >> james, do you think given the fact that trade tensions are ratcheting up the way they are, that it's safe to say that huawei stays on this entity list here in the u.s. and that maybe some of the exception contracts that have been discussed go away >> that's a very good question and that question is a little bit above my pay grade certainly, i think the u.s.

government is re-evaluating our huawei relationship, where this national security threat, certainly, there will be some tlamgs limitation have a lot of in the u.s. and don't necessarily do a lot of business with u.s. specifically same thing for the u.s. internet company. they don't hav in china. and since they're selling product into china specifically, so therefore, i think the sensitivity impact of the u.s. internet names and china internet names are fairly small at this point. >> mark, does -- are we back to drawing firm lines between software and hardware, meaning trying to avoid those pockets that are heavily leveraged to china. >> i don't know. for the next couple of weeks or until we get further long, i think these sectors are getting buffeted by what's happening in

these china talks. >> so you see nothing different? >> no, not really. no we're up, we're down, we're up, we're down, it depends on the state of the trade negotiations. i want to get back to something that carl said earlier, which i thought was really interesting if we pull back and think about what happened last night to pinterest. you put it together with all the other internet advertising companies that have reported, every single major internal advertising platform company, google, facebook, snap, twitter, pinterest, amazon even for its advertising business, all accelerated in the june quarter. i think we're at a really interesting inflection point here why would there have been that kind of acceleration i think you're seeing much greater video usage and deployment of video advertisement. pinterest talked about that. much greater deployment of machine learning facebook talked about that and i think you're starting to see a real inflection down in terms of linear tv watchers, paid tv subscribers, meeting up against these really rising cpms across tv -- for tv ad budgets i think we're starting to really

see a tipping over of tv ad budgets online i think that's what the june quarter results just told us >> between the cord-cutting figures out of the telecom cable companies and some of these revenue accelerations, it's -- that's been one of the big stories of the quarter so far. mark james, thanks for the help. we'll see you soon >> thanks, carl. >> great meantime, pinterest, we just mentioned, going the other way this morning, surging on strong results. julia boorstin is in los angeles with more on that. julia? >> well, morgan, for quarters now, we've been talking about concerns that pinterest, twitter, and snap were all hitting a wall when it came to their user growth. but now all three of those companies have reported that they're revving up both growth of users and of revenue as tweaks they're making to their platforms are showing positive results. now, pinterest up over 20% today after beating expectations across the board, showing a 13% user growth, even in the more saturated u.s. market, as well as raising its guidance.

the company says its investment and making it easier to shop and enabeling brands to allow how their brands driving purchases are paying off along with pinterest, snap, and twitter have also been talking about how improvements to their platforms are yielding results and boosting their stocks. snap with its new augmented reality tools, games, and expanded content offerings twitter cleaning up spam off the platform and making it easier to follow conversations and pinterest and snap in particular may be benefiting from facebook's regulatory challenges pinterest ceo ben silverman on the call last night, saying he takes privacy seriously and he's lael focus on giving consumers control about how they share, while snap ceo evan spiegel in their call stressed his focus on the safety and the security of the snap community d.a. davidson analyst tom forte saying, quote, we believe increasing global regulatory scrutiny on facebook and google gives pinterest an opportunity to take market share and potentially chip away at the digital marketing duopoly that

facebook and google represent. it's worth noting that while facebook and google have been dealing with so much regulatory scrutiny over the past couple of quarters, both pinterest and snap have been able to add more advertisers as well as get their existing advertisers to spend more back over to you >> thank you, julia. and when we return, door dash buying caviar from square door dash ceo tony xu joinuss in pan exclusive on the other side of this break side of this break stay with usl in one place. because when it's decision time... you need decision tech. only from fidelity.

well, door dash acquiring food delivery service caviar from square for $410 million this as the food delivery space continues to be more and more crowded or, i guess, a little less now joining us in a cnbc exclusive, live from san francisco is doordash ceo, tony xu. tony, good morning >> good morning, jon how are you? >> i'm doing well. i hope you are too so the knock on the food delivery business these days, one of them, is that it's so heavily subsidized by vc money that profitability is far out in the future amazon got out, postmates, according to some rumblings, considering a sale square is selling to you why is this smart consolidation and not the smart money getting out? >> well, we've been long

admirers of caviar for a long time if you can build the business for merchants well, you can build a great business for customers and a profitable one to us, the caviar acquisition compliments us in three ways first, it adds to our industry-leading selection we have 300,000 restaurants on the doordash platform today. and caviar's highly curated group of premium restaurants really adds to every occasion that customers will want to shop second, it's a great compliment to the cities that we're in. doordash is live in 4,000 cities across the u.s. and canada while it doesn't add any new markets, caviar's presence in the urban cores is phenomenal, especially as it serves brands like emily in new york or honey butter fried chicken in chicago. and finally, i've been a huge fan of the caviar team ever since their founding so i'm thrilled that we'll get to add some great new teammates very soon. >> so do you keep caviar alive as a premium brand within

doordash or do you fold it in and why on either end? >> well, we're still going to -- we're waiting to figure that out. right now, we're anticipating that the close of the deal will happen some time in 2019 after that, we'll figure it out with the caviar team to make sure that the best of both worlds will be brought to all the customers, merchants with and drivers on the familiplatfom >> tony, we keep hearing about all of this heavy spending across the industry, because there is so much competition on things like free delivery and promotions is doordash profitable >> doordash has always been increasing its profitability, ever since its founding. profitability has improved every single quarter while doordash is the fastest growing service in the country today, we acquire most of our customers organically. and that strong robust growth with industry-leading retention is what has allowed us to keep improving profitability over

time >> so we had you on, tony, in february, and i told you that i wasn't comfortable with this whole tipping system that you guys have, that as somebody who was paying, that i didn't like the idea that the full amount of my actual tip wasn't going to the dlooirivers you heard that from a lot more people in the past couple of weeks and changed the policy but you said something interesting back in february, you said that you had tested this beforehand, the drivers liked the system that you had better, that the service was better under that system, and that things were working well. so why did you change it if it was so good? >> well, you know, this problem of how we figure out, you know, how to make the system work for all audiences, consumers, merchants, and dashers is a very difficult one for the entire industry and while it is true that, you know, all of our models at doordash have always worked for dashers, we have to make sure we strike the right balance for everyone so this is a constant evolution. we've been working on the pay

model every single quarter we will continue to work on it we're talking about the livelihoods of dashers, we're talking about millions of consumers, and we're talking about hundreds of thousands of merchants who really care about the quality at which their products get delivered so we have to take the time and we will continue to get it right. >> all right tony xu, looking forward to seeing exactly how that model works out. we all want to make sure that the drivers feel the love. tony xu, thank you >> thanks. after the break, our jane wells is in anchorage, alaska, with an update on closing the gap in the world's pilot shortage jane, what's coming up next? >> reporter: guys, the world needs pilots we're the women. i'm at one of the top flight schools in the country, run by a woman in that plane, taking off right now. we're outside the plane, we're inside the plane, and when we come back, what american, united and delta are doing to hire

pilots generally and women in particular when we come back.

welcome back to "squawk alley. let's head out to anchorage, alaska, with more on how airlines are closing the gap in the sky. jane >> hey, morgan boeing estimates we're going to need 800,000 pilots in the next 20 years, a quarter of them here in the u.s., and some of them are trained by a woman at one of the top flight schools in the country. jamie patterson simms of sky trek, alaska, flight training. jamie, if you can hear me, how's it flying up there today >> the flying is awesome, jane i'm really enjoying it i love it up here, flying up in action, and it's a gorgeous day and just enjoying the beautiful sunshine up here >> reporter: well, i'm jealous folks, getting your pilot's license can cost about ten

grand. she has a wait list of eight to ten months and she told me that 70% of her students are men. >> the male students who come here really want to fly with me. and so they know it's like the brain surgeon, do you want to be the -- do you want to be the person who is their first patient or do you want them to be the brain surgery that has done 500 brain surgeries >> i didn't think anything of it my family is filled with strong women and i've raised by strong women and that made sense to me. >> reporter: jessie hopes to become a successful pilot and take advantage of the shortage only about 6% of their pilot force is female and that surprises beverly bass, the first woman to become a captain at american, made famous for landing a plane in canada on

9/11 they're not any better or worse than men, but they can be different. >> i have heard that women have a tendency to process an abnormal situation differently, it's just our makeup and i think one of the things that we are known to be very good at is multitasking. i mean, i know that i can cook dinner, feed a baby, and talk on the telephone all at the same tim time >> bassco founded the international society of women airline pilots which hands out scholarships united american, delta all tell us they have special recruiting and financial aid programs to get women in the cockpit jamie, you say training in alaska can really help a resume. how come >> well, training in alaska, because we have to always think on the fly, we're always -- the weather is extremely challenging flying up here in alaska and so we're always trying to make these decisions, these

quick decisions about the weather and about conditions and it's always just very challenging landing on these remote strips, landing on gravel, on dirt. and it's always challenging to make sure that we're safe at all times to make sure that we're -- we can control the airplanes at all times, especially making those quick decisions. the weather is always crazy. >> there she is, right overhead. jamie, thank you much. guys, she is a gold seal certified flight instructor by the faa and we'll be back later with more. back to you. >> talk about multi-tasking, jane just a quick question for you. certainly, this has been an issue and a focus on the commercial side. also on the military side, in terms of getting more female pilots in the cockpit. but how are companies, i guess, incentivizing and targeting women to get more of them

flying >> all three of the big airlines tell us they have special scholarships to help them get through the flight training. they have recruiting i mean, they have like girl's days, aviation girl's days where they get them exposed to these sorts of things, all to try to get at the high school, junior high school level, girls even thinking about being a pilot, because they are hiring. there are so many opportunities and there is no gender pay gap it doesn't matter what you are it depends on what you're flying and how many hours you fly a month. that mandates what you get paid. >> jane, you know how to make live television. that was really cool and a really important story for the industry >> reporter: oh, it takes a team thank you. >> absolutely, jane wells, jane, thanks it is a rough day abroad in europe, as you probably can guess. stocks are down sharply in today's trade following the president's tweet on china tariffs. german dax on pace for the worst

week of the year on one point, it was on track for the worst single day decline since the day after brexit, while a handful of financials didn't help rbs, all down sharply in today's trade europe's broad market, stock's down more than 2% today. and as for us, guys, we bounced right off the 50-day, we're back to 2924. >> and for now, let's get to sue herrera with a news update sue? >> indeed, i do. thank you, john. here's what's happening at this hour, everyone nato chief llenas stoltenberg says there will be a measured and responsible response from nato following a decision by the u.s. and russia to end a 32-year-old intermediate range nuclear forces treaty. >> the honor treaty ceases to exist, because russia has deployed the ssc-8 missile system they can reach european cities with only minutes of warning time >> the swedish prosecutor calling for a six to ten-month

jail term for rapper asap rocky and two of his entourage for throwing a 19-year-old man to the ground and kicking and punching him after an argument in stockholm and the grandfather of robert kennedy has died. the kennedy family confirming that death after reports that a person had been found unresponsunspon unresponsiunrespons unresponsive on thursday at the kennedy compound over a possible drug overdose. saorise kennedy hill was 22 years old. >> sue, thank you very much. when we come back, it is jobs friday, which means ed lazear is going to join rick for a special santelli exchange. a special sa♪telli exchange. lower carbs. lower calories. ♪ higher expectations. the light beer you've been waiting for has arrived.

a big day with trade and the jobs number. and that means it's time for a special edition of the santelli exchange >> and that special edition always means a special guest it's ed lazear, former chairman of the president's council of economic advisers, of course under george w. bush ed, always a pleasure on employment friday. let's start right out at the top. epop, one of your favorites, workweek really shrinking. why don't you give me your summary of all of the highlights of the report today. >> well, this morning, rick, you said that you gave the jobs report a "c" or a c-minus and i

agree with you completely. you've got things working in both directions. the great news is the wage growth is solid, quite high. if you look at the wage numbers, we're talking close to 3.5% on a year over year basis, given the currently growth that we saw this month so that's good news. the other good news is that the employment-to-population ratio, which i always look at, you know, that's the number i like the best, that ticked up half -- sorry, one-half of a percentage point. so that's good, as well. on the down side, the big negative is there is the hours of work. and that's really important. we're down to 34.3. that's a tick again of 1/10 of an hour. doesn't sound like a big deal, but amounts to about 400,000 jobs and when we're at the top of the economy, we should be at about 34.5, so 34.3, not so great

the other thing i would message is the three-month job average, which is the number i always use, the three-month job average is at 140. that's down from about 225,000 last year. so, significant. not terrible, again, still growing at a rate above population growth, so that doesn't say that we're stagna stagnating, it doesn't say that the job market is falling apart. it just says that it's not moving as rapidly as it was in the past >> you know, the most commonly used two words of late, capital spending and the gdp report, of course, showcased a couple of different dynamics, really strong consumption numbers. some of the best in a while. it did have a 2 handle, but it was hurt by lack of capital investment and you can dig into that, can't you? >> well, absolutely. if you look at the investment numbers, which obviously were not so great this time,

actually, negative -- contributed negative 1 percentage point to growth, most of that was inventories. but you don't want to discount inventories. people always say, well, it was just inventories, it will come back actually, that's not true. there are a couple of reasons why inventories can decline. one is that they overshor is th anticipating weak demand in the future and they're just not building their inventories. so, you don't want to just discount that completely i actually do worry about that a bit. in terms of the climate, the capital expenditure climate, everybody talking about the tariffs. it's not so much the tariffs, per se i hate to be trite, but i think it is about the uncertainty right now. people are trying to figure out what's going to happen before they make long-term capital investment decisions and i think that's weighing on the economy a bit. and in fact, you know, chairman powell, that was the one thing that he did feature when he was

talking about his worries about the future >> you know, earlier on, we had bill simon, former president and ceo of walmart on, ed. and just so succinct, but his finish really shocked me after going over all the influence of tariff and where production comes and products come with regard to the inventory of walmart, he said that the impact of tariffs would actually be quite small. he didn't think it was that big of a deal. what do you say to somebody with so much knowledge, with supply chains and china in particular, to make a statement like that. so is it just all about uncertainty? >> i think it is, mostly, about uncertainty. because as you said, the impact of tariffs, per se, is not all that great if you think about the tariffs, particularly on exports, and you ask, what does that do to our ability to export to china, you know, exports to china, it's

important, but it's not a major part of our gdp. even if that fell apart completely, it wouldn't be a big deal but for walmart to say it is a little more interesting, because they're not talking about the export side, they're talking about the import side. and essentially, what i think they are saying that they believe that when tariffs go up, prices that they are paying for their imports will fall corresponding to the tariffs, because the suppliers will basically eat most of it and that tends to be true in the short run. so i think that's probably why he's not so concerned, in the short run. in the long run, it's a bigger problem. but in the short run, i think that's right >> ed, always a pleasure talking to you you know, you are one of the few economists where i think pretty much we can all understand and we thank you for that. morgan, back to you! >> thank you >> rick santelli, thank you! now to a story we've been following here on "squawk alley. the government's jedi cloud contract, the pentagon and newly installed defense secretary mark

esper re-examining the process of rewarding and the guidelines of the controversial up to $10 billion winner-takes-all cloud contract that following concerns from the president over mazon' bid. this is leaving a major military priority now in loimbo, a contract that was expected to be awarded in the coming weeks after oracle lost its protests the dod saying, quote, secretary esper is committed to ensuring our war fighters have the best capabilities, including artificial intelligence, to remain the most lethal force in the world, while safeguarding taxpayer dollars also adding that no decision will be made on the program until he has completed his examination. simo amazon, microsoft, the two companies that have been chosen toed by in this and oracle have not responded to cnbc's request for comments, bun it really does get back to the heart of how important technology and the adoption of these new technologies like cloud and the ability to do ai computing on the cloud are to our national security of the future

>> it also gets to, unfortunately, the president's opened himself up to appearances -- he's trying to hurt amazon for political purposes it is the biggest cloud company in the space microsoft is the second biggest, a couple of weeks ago, four republicans on the armed services committee in the house, which has oversight over this contract, said, please, don't delay it now you get, you know, a new leader over there and you get a delay. so that's what mark mahaney was talking about. >> yeah. >> we'll see >> we'll see when we return, survey monkey surging after strong earnings and an upgrade over at ubs. ceo lurie joins us exclusively, next. don't go anywhere.

these folks, they don't have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps.com print discounted postage for any letter any package any time right from your computer all the amazing services of the post office only cheaper get our special tv offer a 4-week trial plus postage and a digital scale

go to stamps.com/tv and never go to the post office again! major averages did bounce around the 50-day moving average, still, though in the red. s&p, 29.21, as we continue to look at probably the worst week of the year for all the major indices. courtney reagan is back here at post 9, covering both retail and the stock markets. >> it's been a busy day, hasn't it it looks like we're bouncing off the lows here a little bit, but not too far off. i think the sentiment is really very negative right now. there's momentum to the downside there's not a lot of reasons to be buyers right now with all of the uncertainty that we have here so some of the growth stocks that have really been outperforming value by about 5% this year could be the names in the sectors that are going to be in trouble going forward with the tariffs. we're talking about tech and consumer discretionary, so we can watch this leadership reversal start to pick up some steam.

tech already on track for the worst week of the year dow, s&p, nasdaq, also on track for the worst week of the year, as you point out and we had the fed meeting this week, too. so there could be some worries that the fed is not going to be there to backstop us, like they have been in the past. now we've got these tariffs. surprised? i don't think the market clearly was thinking that those were coming, not at least by the reaction that we've seen in the last 24 hours or so. >> it does certainly seem like the president is forcing the fed chair's hand in this especially if you do start to see more softening data in the industrial space, in manufacturing, and see that leak out to other areas of the economy. consumer, retail stocks have been hammered on this as well, right? >> yeah, really. retail stocks hit really hard, which makes sense. a lot of consumer products, apparel, shoes, toys, those things had sort of been spared from a lot of the tariffs so far, but not anymore if you're going to put a tariff, 10%, 25%, whatever it is right now it's 10, but on the remaining $300 billion of goods, those are going to be those big categories what is interesting, and we saw this sell-off, as you point out

in retail stocks, is it seems a little baby out with the bottom water to me, because not all of these companies are going to have equal exposure to china so you're seeing some names claw back a little bit today. a name like tapestry that owns coach and kate spade they've been pretty clear about the fact that they have lessened their exposure to china. so maybe cooler heads have prevailed there with some of the investors and now that stock is higher today after selling off about 5% yesterday, when you start to realize, okay, not all of this will be equal payment. >> c.h.i.p. behip berg of levi they've brought their sourcing into the low single digits ubs has this note. who could be best positioned, nike, lulu, vfc? and who could be most challenged gap, kohl's, macy's, right makes sense. >> yes, and if you think about, it's so interesting, too i've also heard a conflicting idea about a retailer like a macy's or a kohl's they're a retailer that sell a bunch of brands.

if they sell under armour or nike, there's two players involved in seeing those higher costs. it's under armour sees the higher costs and they sell it into kohl's. so maybe they split that pain and the player doesn't see it as clearly when you have two players that can absorb that cost they have to look at this on a category-by-category, and product-by-product basis and a lot of these retailers have said, we're not going to raise pricesnsitive, very price elastic and consumers will notice that price change and not buy, maybe that's not the product to me that increase on. >> gopro managed to move production to mexico they're out with a statement saying that u.s.-bound cameras, they expect to be in production in mexico in the second half of 2019, have a lot of retailers, you think, managed to position themselves and actually source outside of china ahead of the holiday season because clearly, this was potentially going to be an issue. >> and to be honest, this has been something that retailers

have been working on for years and years. definitely accelerating, i would say, in the last year, where possible some of these factories we know, also have locations in other countries, and so they're sort of helping retailers almost under the veil shift things over to their other locations so i think everyone's been trying, as quickly as they can they're not going to give us all of the details on that, i think, on purpose you don't want to point out the pain if you don't have and if we're really honest, if you isolate a product like washing machines and the tariffs that we saw there, there was pain initially, and then it subsided you know what, people were still buying them. so maybe this is going to be a little bit more of a reaction than ultimately the consumer feels, let's hope, because we know it could be a definite bleed through to economic growth >> i think that's a key point. all of the uncertainty around trade and tariffs as it continues to prolong, the certainty is, you start to shift more and more your supply chain outside of china and think about

different ways to move goods around the world, retail being one example. courtney reagan, thanks for joining us today ceo of survey monkey will join us as well, next and that stock's surge on earnings, it's up 11.5%. earnings, it's up 11.5%. stay with us that's a win. but it's not the only reason i switched. geico's a company i can trust, with over 75 years of great savings and service. ♪ now that's a win-win. switch to geico. it's a win-win.

we like drip coffee, layovers- switch to geico. -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. here's a look at what's coming up "the halftime report" what this week means for the rest of the summer in stocks our investment committee giving their playbooks for the next

month. shares of square getting smashed today. is anyone on our desk buying that dip we'll set you up for big earnings next week, including disney, shake shack, uber and roku we'll see you in about ten >> sounds good let's look at shares of survey monkey surging in today's trade up almost 12%. joining us now croeo zander lur with an exclusive. good morning. >> good morning, guys. >> so there's something going on here in tech with the experience ecosystem, it seems to me. you've got use that lets customers see what the experience is for people using their apps and services. pager duty is alerting the right people when something goes wrong with a site.

dinah trades is monitoring the performance of apps. how is this changing the way tech works and adapting when things go wrong? >> john, thanks for the question y you're right the category for experience management is massive. companies today are differentiating their products and services by their ability to be customer centric. everybody has access to software, you can buy key words on google and target on facebook but the ability to be sensitive to what your customers care about want is critical usability is a solution we acquired this year they have a customer in klm who was able to improve their app experience to a 2.4 rating it's about can your managers, marketers understand the feedback, listen and take action that's what survey software can do.

>> we know about competition to what extent are you going head to head with the likes of adobe and sales force, even as you seek to coexist and thrive on their platforms >> we don't compete with them at all. frankly, there are hundreds of thousands of sales force customers who need to buy enterprise survey software we exist in the sales force ecosystem and try to help customers get better data from what their customers care about. they're big systems of record, they provide you a lot of operational data where survey monkey competes and thrives is delivering for customers how am i doing, what can we improve upon that's where we're selling a solution into the sales force ecosystem and partner with sales force in a productive way. part of the reason they bought into our i.p.o. last year. >> i know you're focussed on enterprises and businesses would you ever get into for

example gathering data and surveys for politics >> it's a good question. we really took a strategic imperative about two and a half three years ago to step up our enterprise game. this is a company that's thrived going direct to end users and built up a paid customer base of almost 700,000 people over the last three years we elevated our game today it represents 20% f on our business we're now growing 20% year over year we use politics in a fun way to help get a beat on what's going on in the world. like we ask questions about are you interesting in buying an electric car, what do you think of impossible burger we also ask questions of the two and a half to three million people on our platform every day, who might you vote for, what are important issues to you and that gives us a read on where americans are thinking. >> i know msnbc news we appreciate your participation in

that the team's product and enterprise right now, particular area of growth, how much are you going to have to spend on continuing to ramp up that group in order to support teams? there's some concerns about cash flow and how much that investment is going to be. can you lay out the plan for that >> yeah, so we set about on our i.p.o. last year and told investors our plan to make this business more valuable the two key driving factors, first is to elevate our sales motion to sell directly to the enterprise that has been successful we doubled year over year 100% revenue. we now have 5,000 customers, up 60%. we now compete in that ecosystem. consumers love our product and we're selling into the organization with a talented sales team the team's product is the collaborative self-serve product. there's been so much account sharing on survey monkey over

the years and the security environment we're asking people to pay for their own seat and that has driven a healthy paid user growth. so we see continued growth in those two areas. we've accelerated growth 20% year over year but we do it in a disciplined way. we were still able to deliver $13 million, and we're just not a company that's going to grow at all cost we want healthy growth and disciplined cash flow. >> the stock close to all-time highs, up better than 12% so far today. zander lurie, ceo survey monkey thanks for being with us. >> thanks for having me. we'll wait and see how much of the dip will get bought, down 219, 220, back to 2925 back in three minutes.

i know this may come as a shock to many of you, but as of today i will be streaming exclusively on mixer i know i know it's exciting. >> that's ninja, the biggest name in fortnite, one of twitch's most popular persona y personalties and he's leaving that platform to stream excl

exclusively on microsoft's mixer. his debut set for about an hour. to bring it full circle after our jedi conversation. >> over the weekend we'll have berkshire to play with and disney and uber next week. have a good weekend. we'll see you monday let's get to the judge. >> thanks i'm scott wapner front and center this hour the week that rocked investors, the president's stunner on tariffs and the outlook for the economy means for your money it's noon, this is "the halftime report." >> a wild week on wall street, what do investors do from here we're hitting apple and faangs something is happening in th global bond market that's never happened before. what it means for your poe portfolio. another big week