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

good thursday morning. welcome to "squawk alley." i'm jon fortt with morga brennan, david faber, here at post 9 at the new york stock exchange carl is on assignment. and we're going to begin with today's rally. stocks surging all of the major indices up more than 1%. our dom chu is back at headquarters with a look at what is driving the gains today dom? >> so, jon, we are right near highs of the session right now the dow is up about 458 points, 452 at this stage. and as you can see here, almost 1.5 to 2% gains at this stage for the major indices. the s&p 500 really the laggard there. a lot of tlechnology and communication stocks powering that nasdaq composite to a 1.5% gain overall with regard to what's driving the action, take a look at the sectors that areat most at wor and at play.

financials, industrials, technology, meanwhile, consumer staples, real estate, and utilities really lagging behind. the key level that we wanted to watch earlier on was 2945. that had been an area of resistance or slowdown in the market for the s&p over the last month. and we now remain just about 1.5% away from record highs. turning now to the dow, there are four stocks in particular that have been a big focus over the last couple of days because they've been driving a lot of the action there take a look at these because boeing right now, up almost 2%. goldman sachs, 3% gains. 3m, almost 4% at this point, and caterpillar, 4% gains, as well these four stocks have been some of the biggest point contributors and detractors as of late right now in this 450-point rally, jon, these four stocks account forabout 470 of those points just on their own so trade-related stocks, financials are a huge focus, that's what's driving the action, jon. i'll send things back over to you. >> thanks, dom

that's the good news, but now let's turn to slack. it is down big this morning after forecasting larger-than-expected loss for the first quarter. stewart butterfield joined "squawk box" earlier on today's drop take a listen. >> investors are going to make decisions over the long run. this is a very strong quarter. whether it's up or down yesterday, up 8% and the rell mark, down after, it's not going to make a whole bunch of difference to the long-term holders or to thebusiness. this was a strong quarter. $145 million revenue versus $92 million the year priority and we're happy with that. >> they're happy with that henry blodgett, business insider joins us now along with former twitter coo alan ragani. he's in san francisco. guys, good morning to both of you. henry, if you look at the numbers, there is actually a lot to be happy about in slack's results. >> absolutely. this is just volatility around the market getting used to

expectations versus reality. the company seems robustly healthy. the only possible concern is more competition with microsoft. but, you know, there are likely to be two of these going forward. and it's just hard to overstate how much companies are now being built around slack as a communications tool. it has taken over our company completely we still use email, didn't replace it, but it's changed how email is used. everybody is on slack. our bill for slack is going to go up for years. >> calibrate this for us you were at pixar, which is a challenger, certainly in the animation business, at twitter, which is a challenger in social media. slack here is trying to challenge the enterprise establishment in productivity. do you sort of give them a mulligan on this quarter first time out of the gate how do you read this >> i think the market is recalibrating on growth expectations for the future. i think henry's right. this is a fundamental company, an important company, but it not

only faces competition from the top, from microsoft, but it also faces competition from the bottom, from numerous open source alternatives to slack, that are coming up through i.t. organizations, that are offering products that are cheaper, more flexible, and more secure. and if you read gartner, gartner will talk about a bunch of alternatives, open source alternatives to the slack product. so i think it's a very big space. slack is very well positioned. but i think it's likely that there are not just going to be two winners wi, it's likely goi to be more than two moving forward. and i think the market is seeing that and some of their projections on growth are reflective of the competitive environment that they live in >> henry, how do you think about that using the business insider example, how sticky would the company be to slack if more competition and better prices came in? >> look, open source can be cheaper, but then you have to talk about the number of engineers that you need to do that you have to think about, can

this be adopted outside the organization one of the things slack wants to do going forward is start bridging between companies where you get your customers on slack in your channels going straight to your folks that's much harder to do with open source. because you need somebody to coordinate it. and i would say, engaging with any company, buying something or building it, you want to be able to call up somebody and yell at them, if it's not working. you want to be able to hold somebody responsible if something goes wrong that's much harder to do with open source, unless you're building it yourself but you have to get everybody else on it, too, if you want the collaboration. i think there's a lot of value for a platform like this that is ultimately going to cross a lot of companies a lot of companies will say, look, we want to have a central party to hold responsible. >> these network effects that butterfield was talking about on the call, where you can get people outside your organization, on a slack channel, it seems like that has huge potential let's move on, though, to wework, our own david faber reporting this morning that the company is targeting a lower

valuation than expected, ahead of its ipo and this has just been savaged, this company, after its s1 came out, which had all kinds of flowery language about what kind of company they were, but also sop concerns, just about how the business model, to the extent that you can call it that, is going to work. >> if david put it, the companies may have a lower valuation, that's incredibly polite this is the market just flat-out rejecting what it was brought, you know, the s1 that was brought. so they will come out with a totally new valuation. they already changed some of the things that had yellow flags or red flags like this $6 million purchase of the word "we" from the ceo. that's now gone. so -- >> they even added a woman -- >> exactly we're going to try again and bring it back. and to me, this is actually a good sign. like, investors are showing a lot of discipline. six months ago, it was basically an ipo, place the order.

now it is, uh-huh, we're going to look at it closely. we're going to really think about the valuation and if we don't like it, we're going to say "no" >> we should bring people up to date on what it is that we're actually reporting remember, the last round for this company was done at $47 billion. of course, softbank is its largest single investor by far at roughly $10 billion certainly far higher than what i'm hearing is a level at which there's still not a great deal of demand, which is $25 billion. so there is a question as to whether you're going to get down perhaps as low as $20 billion. would that be possible and then you do have to wonder what softbank's view of it is? is that something they can even stomach? and with uber and paper losses, or can you find some sort of significant investor to come in at a level to sort of help give confidence to the marketplace? that's certainly something else that we should keep in mind as a possibility here, as the underwriters and the companies sort of search for what the right place is for a company

that is growing revenue very quickly, but growing losses almost equally to what the revenue number is. >> and i think what you're seeing with uber, we learned from that, lyft, too, these private investors are buying preferred stock. they have downside protection. no matter what happens to the valuation, the worst they can do unless the company really goes bust is get what they put in back it's not that way in the public market, where you're buying common stock you can immediately lose half your investment overnight if things go south. so here the market is saying that we're not going to pay the same valuation you paid with your downside protection. >> ali, to that point, you could call this the ultrabear case for wework as it gets ready to go public but when someone like sam zell, one of the pioneers of reits comes on cnbc and says he's seen this type of business model before, for decades now, and that there's never been a case where a company like this has actually not gone bankrupt, you think, what? is therea sustainable long-ter business model here, especially in a recession >> yeah, you know, it's funny.

when you mentioned sam zell, there's an open question as to whether wework should be considered a technology company at all certainly, they do some interesting things in terms of using technology to enhance their environment and workplace environment and product offering but fundamentally, it's a real estate company and i do think we've seen models like this before so, you know, i think, you know, sam may have a point but i wanted to underscore one thing henry said, which is, public market investors are valuing businesses, you know, i think this is good news, because the public market is valuing businesses based on fundamentals and the private market sometimes get ahead of themselves in terms of real fundamental analysis of the business and if fundamental analysis of this business indicates that it's worth less, than the last private market investor paid, so be it. i think that's good news and that kind of discipline is actually a positive, not a negative >> henry, is there something going on here with valuations around names that have recently gone public? can't help but think about uber, trading way below its ipo price.

we were just talking about livongo, which is down 22% this morning in its first report after going public slack, we were just talking about. shaving some losses, but down about 7% do there need to be recalibrations in how investors are thinking about younger companies. >> uber came along and others and we think, no, actually, it really matters what price you buy it at. and that's what we're seeing and that's what we're seeing with wework by the way, i don't mean to say it, if they come public at $20 billion, that is still an enormous valuation, with enormous downside if things go wrong. so it's not like -- so if we find a market at $20 billion, they're still doing great. and the same for uber. >> beyond meat is still worth more than $10 billion, though. so let's not -- let's turn to twitter. disabling its text-to-tweet

feature after several high-profile hacks this week, including arguably the highest profile of all, its founder and ceo, cofounder, jack dorsey. the stock is still up more than 2% today ali, you used to work there. is this sort of a nightmarish scenario for -- i mean, investors don't seem to be taking it too hard, but jack dorsey's account getting hacked and them more accounts after that, that's not good. >> yeah. look, i think account security is very, very important. and this is, i think, more embarrassing for twitter than indicates some sort of breakdown in their business or, you know, a reason to short the stock. i was there when we bought a company called cloud hopper which enabled people to tweet directly from sms. that's legacy behavior it's not what people by and large do anymore perhaps in certain pockets of the third world, it's still relevant but sort of as has been proven, it's a hacking vector through this sort of sim swapping

practice so it's ironically not really twitter's fault that jack's account got hacked it was ant breakdown on their part but sort of closing or disabling the tweet by sms function should cure it. and we'll see if they re-enable that or if it's closed down forever. but it's more embarrassing, i think, than really damaging to the company's long-term prospects. >> ali, it definitely raise ascii question i mean, we do so many things on our smartphones now. everybody and everything is shifting to mobile and i think many folks out there, many consumers, and probably many companies don't even realize that wireless carriers have a role to play in all of this security, as well. what do you think that -- i guess, what do you think those safeguards look like as, you know, applications through our smartphones continue to evolve >> oh, i think it's a real issue. i mean, i think that if there are humans involved in the chain to guarantee security and those humans are all fallible and any

single person is, you know -- can create a problem through a bribe or through some other form of coercion, i think there's vulnerabilities. so i think companies can try to design their systems in such a way that they have as little reliance on external parties as possible, but it's not always possible so in this case, it sounds like from the reporting, that it was somewhere in the mobile operator chain that this kind of vulnerability was exposed and jack's account was hacked. and as i said, it's not really twitter's fault, except that they have this tweet by sms function that enabled the tweets to be sent so i think it's always going to be a constant battle between hackers and security people. it's never really going to go away it's part of the digital world that we live in. and so this issue is here to stay >> yeah, leaving the back door unlocked, kind of your fault, though i don't know if i would let them off the hook ali, henry, thank you. >> great to be here.

>> bye after the break, the corporate bonds bonanza. apple leading a host of other companies and issuing bonds at record low yields this week. what it means for the stock and you. next, stocks are surging, largely in the green since the new has its biggest gain since ju dow is up 454 points back in two. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. car vending machines and buying a car 100% online.vented now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car.

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welcome back to "squawk alley. apple shares are getting a boost

this morning joining john deere and walt disney issuing new bonds this week, taking advantage of record low yields, selling $7 billion of debt in its first offering since 2017. jeffrey kvaal joins us now at post 9 jeff, great to have you here >> thanks, morgan. >> what do you think smart move by apple to sell $7 billion in debt despite having a $200 billion cash pile >> yeah, they have some debt already on their balance sheet, so i think it makes sense for them to swap out a little of the debt i think they had it at 4.25 before and now they're getting it close to 3. so that makes a lot of sense i wouldn't extend that to draw too many implications for the stock, though, morgan. apple's given its buyback targets and dividend targets based on a net cash target, right? and so this doesn't change the equation for net cash. >> all right shares are trading around $212 today. they're up almost 2% in this broader market rally you've got $185 price target why? >> yes, well, first, i think apple is benefiting today from

the china news they've traded more -- with more volatility on the china news i think that's what's going on today. i think, secondly, i'm a little less optimistic than most, i think, on what multiple we should be paying for apple here. apple's five-year trading range tends to be in the 13 or 14 times. in some ways, it's a better company than it's been, because the services mix is richer but in other ways, it's not as good as a company as it's been because its iphone user base is not growing as rapidly so i'm not as willing to extend the multiple that we assign apple to too much beyond its five-year range. >> jeff, what about this argument, though that all of the doom and gloom around apple should be priced in at this point. we know now that apple can survive ho-hum replacement cycles we know that this next iphone

cycle isn't expected to do that much and next year, we expect to have 5g and unless the apple customer base does the unthinkable and abandons apple for samsung just to get a 5g phone, when the 5g networks aren't really completely up and running yet, now's a good time to buy what about that argument >> well, i think the first point i would mention, jon, is that we have to be a little bit careful about that december quarter. a ho-hum refresh, i think, is priced in, but i think there's some risk that's a little bit less than ho-huho-hum apple guided up for the september quarter, part of that is on wearables, part of that is on iphones we expect given our supply work from our colleagues in asia that some of that is inventory fill and that means that the demand really won't be there for the subsequent quarter, the december quarter. so we think that there could be a hole for the december quarter revenue in iphones >> all right jeff kvaal, thanks for joining

us here. and still to come, livongo shares are getting crushed this morning after reporting its first results since going public the company's founder and executive chairman glenn tullman will join us exclusively next. meantime, tech and financials are leading the rally. the dow is surging up triple digits, 432 points again, s&p up 1.3%, we're back after a quick break. - did you know that americans that bought gold in 2005 quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown.

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shares of livongo are down sharply, as you can see right there this morning this after reporting its first-ever results as a public company. livongo's founder and executive chairman is glenn tullman and he joined us on the day of the company's ipo and joins us now exclusively to discuss the company's second quarter results. mr. tullman, nice to have you with us. the stock is down sharply. the reason that it at least seems to be certainly one of the key reasons, i should say, is

what analysts are citing as lower adjusted ebitda guidance as a result, perhaps, of your expense guidance, and the market may perhaps be digesting what is some incremental spending that was not expected is that your understanding or would you like to sort of communicate more to the marketplace now, given you've lost 20% of your value >> well, i think it's always hard to predict what the market is going to do on any given day. there were a lot of expectations and appropriately so we reported a very strong set of earnings today our total contract value was up 200% our revenue was up year over year 156%. and so from that perspective, our customer count is up every metric we had, and we increased our range, so from that perspective, i think the one area you mentioned, we did have ipo expenses. we may have underestimated them slightly and we're continuing to invest because of our dramatic growth

so we see very strong results. we're going to continue to see them, because we're addressing the largest challenge that we have as a country. and that is the chronic condition problem. so from that perspective, we're all go, all forward, and we're going to keep doing what we're doing. >> right all fine, and of course, the company is growing quickly nobody disputes that but it is all about expectations, as you well know is there something that people are not understanding in terms of this expense guidance you mentioned costs related to the ipo? is that what we're talking about here, or was there an additional expense, perhaps, that had not been anticipated by those who follow your company? >> we don't see any material expense difference that, you know, we are in line with the budgeted numbers that we have. it's always tough to assess the exactguidance of the various analysts who follow us but from an expense perspective, we continue to invest.

we have our aiai engine that is driving our marketing, our acquisition numbers, member acquisitions are up. we have more -- we reported more than 192,000 members and that continues to grow so everything that we see on our own internal dashboards are green. i think there were great expectations for the company, as there should be, and we expect to continue to fulfill those expectations we haven't changed any of the longer term guidance that we put out there, and as i mentioned, we actually raised our short-term guidance in terms of quarters so the idea is to meet and beat every quarter and we've done that >> glen, am i seeing correctly that you've cistill got about 4 million in cash on the books >> we do, we do, roughly, that's about the right number >> okay. maybe a little bit more than that tell me, how has the sales cadence been, in an environment where some people are talking

about caution for business investment are you still seeing customers sign up or get into the pipeline at the same rate that you were before >> we are. in fact, as i mentioned, our tcv is up 200% we're seeing customers across each of our segments across our commercial segments, our payer and provider segments are up, our government sector is up so across the board, we're seeing great results and, you know, we had reported the signing of a very large customer we expect to have later this quarter, we'll give more visibility on that we're waiting for some final approvals, but from a business perspective, we continue to see everything moving forward in a very aggressive fashion. and we continue to be very pleased with it. >> glen, given the fact that the company is growing as much as it is, your path to profitability

when do you expect livongo to be turning a profit >> well, i think we've said we'd be ebitda positive in 2021 we haven't changed that at all and you know, anytime you're building a sas-based recurring revenue basis as we are, you're making investments up front. we have an incredible competitive advantage in our data science our aiai engine. and as you look at the great companies that have been out there that have built businesses based on a consumer-first data-driven business, you do have investments up front. but we bake those into the numbers. we don't expect those to change. and we continue to be high confident about our 2021 ebitda positive predictions that we've put out to the market. >> well, mr. tillman, we appreciate it. we'll be, obviously, watching. stock is off the lows of the morning. glen tillman is the ceo of livongo. >> thank you

>> also, by the way, you can catch glen and other ceos -- you're welcome -- including drew houston of dropbox, bernard tyson of kaiser permanente all at the cnbc works summit on november 19th in san francisco -- >> november 4th. >> oh, sorry >> november 4th. jon fortt will be there and he's very excited >> i can see that. he's throwing his pen around >> i'm trying to signal, not the 19th, the 4th. >> very rowdy on this desk here right now. >> plus, i've got butter fingers. >> all right well, european markets are just closing and seema mody joins us now with a breakdown of today's action overseas. >> big move here and big move in europe markets rallying following gains in asia and renewed hopes of progress between the united states and china on the trade front. it is those trade-sensitive sectors, even in europe, tech and autos, that are the two standouts in today's trade even industrial names like this issen kropp aremoving higher despite moves that german manufacturing orders fell more than expected in july. there are also two strong

earnings reports to take note of first, it's france's defense giant, dassault aviation it maintained its full-year target rising demand for business debts in the u.s. really helping its bottom line growth while melrose industries, another stock to take note of, the british industrial turnaround specialists says they were fighting off the broader downturn through cost-cutting measures and that stock is up 8% a quick check on the british pound, adding to yesterday's gains against the u.s. dollar following back-to-back defeats for uk prime minister boris johnson last night, british lawmakers passing a bill to avert a no-deal brexit and rejecting a motion to hold early elections. the pound is holdinging on to $1.23 against the dollar >> seema, thank you. now let's get to sue herrera for a news update. >> good morning, jon good morning, everyone here's what's happening at this hour a taliban suicide bomber in kabul killed a u.s. service member, a romanian soldier, and at least ten afghan civilians in

a busy diplomatic area in kabul. this is underscoring the afghan goth's warnings that a peace deal on ending the war is moving too quickly and it marks the fourth u.s. service member killed in the past two weeks russian president putin says russia and ukraine are moving in the direction of a prisoner exchange this after speaking to a ukrainian lawmaker on the sidelines of the eastern economic forum in salvladivokst. dozens camped out overnight in baynes arreuenos aires. the demonstrators say they are being suffocated by government austerity. back here at home, former white house press secretary sarah huckabee sanders has a book deal about her time in the trump administration st. martin's press announcing her mem whoir will come out in e fall of 2020, fueling speculation that she may be planning a run for governor in arkansas you are up to date, that's the news update this hour. back downtown to "squawk alley."

morgan, back to you. >> something to watch right there. sue herrera, thank you cup, vox partnering with draft kings just hours ahead of nfl kickoff. we'll ask vox media chairman and ceo jim bankoff about that next. and of course, still a lot more ahead on botoday's market rally take a look at that. the dow is up 434 points the s&p is also up 1.3%. the nasdaq is up 1.6%. we'll be back after isre th bak servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

welcome back to "squawk alley. stocks continue to rally with the dow up over 450 points right now. biggest gains since june 4th the dow is now within 2% of its all-time high. the s&p, less than 1.5% away from its july record high. joining us now to discuss all of this is senior markets commentator mike santoli and chief investment strategist brian belski mike, i'll start with you. >> yeah? >> taking a look at this market right now, your thoughts >> it's a round-trip back to july 31st. i think what august did is a couple of things that the market is feeding off of right now. one is, it really front lo lodeloaded a lot of these recession fears. the whole inverted yield curve obsession. you really did have a lot of people clenching up in advance of economic weakness that wasn't yet in the numbers and that turned investor sentiment, i think, very defensive and skeptical. so when you got a, well, things don't look so bad outcome from the, from the domestic data, still expecting a quarter-point

fed rate cut and bond yields are so much lower, so therefore debt is cheap and the credit markets are okay i think the stock market is just reversing a lot of the safety trade that people rushed into, in august. doesn't mean it continues up and away from here to huge new highs, but it does suggest that maybe in the short-term, people got a little bit overnervous >> brian, how sustainable is this especially when you see this rally based so much just on the fact that we got confirmation of renewed trade talks between the u.s. and china nothing fundamentally has actually changed based on the talks we've seen previously this year, we don't really know that they're going to be successful they haven't been in the past, right? >> again, we would caution, you should never base your investments on a tweet or rhetoric or whatever this has been a one-way train to negativity in the month of august and for all intents and purposes, you've got to think about this, investors have been mostly negative all year long. we've rallied to new highs in the market but anytime there was any kind

of bad news, and michael talked about this, everyone became super defensive. and if you just simply look at fundamentals of areas like consumer staples, which no longer stable, and earnings growth has dropped off dramatically utilities in the united states are the most expensive asset in the world in terms of valuation and dividend growths going away. and reits have been a place where people have been hiding. reits we favored over the two defensive areas. but one-way train investing and making binary decisions causes days like this and months like august so we see a great opportunity to add to money center banks, because they will not be impacted on a fundamental basis like the regionals in terms of net interest margins and just in terms of earnings stability, and overall growth, in communication services and technology remain our two favorite sectors in terms of stability of growth. >> mike, no deal brexit looks more unlikely. the situation in hong kong at

least seems to be moving somewhere. not toward violence, at least at the moment how much of an impact is that having >> i think it's -- i think the psychology is important related to those things. when you have those things combined with the fact that it's not going to be a further escalation, it seems, in the short-term of the trade war. those were things that kind of got thrown on top of market that was already nervous. and it caused people to think that what was really a shake out or a bit of a pull back in risk assets was really foretelling something bigger, where there was going to be these big kind of destabilizing events geopolitically and i do think this we can step back from that a little bit and just sort of reassess and say, okay, fine, if we assume those things are not going to completely break loose in a systemic way, we're back to sort of valuing stocks against bonds and slow growth, but not no growth in the u.s. economy >> brian, when you look at markets at these levels, when you take into account the commentary we've gotten from fed officials this week, which continues to be a mixed bag of data, some of that data not as

bad as anticipated, what do you think it does in terms of push the fed policy later this month and beyond, and is the market ready for it >> well, you know, for all intents and purposes, the more likely outcome is the fed is going to cut by 25 basis points. but again, morgan, you've got to take a step back and think about corporate america in the industrial base, really never added to any capex they took the tax cut and they bought back stock. the influence with respect to what's been happening in terms of the industries industrial base has not changed in the last four or five years ceos remain excessively conservative in terms of spending money almost 70% of the economy in the united states is the consumer side and consumer still looks very, very good. that's why the non-manufacturing ism looks well and remember two on the ism, just because they drop below 50, and oh, by the way, we already knew that. so the strength of the economy is going to be the consumer, and

remember, too, if the fed cuts by 25 basis points, that actually helps the consumer, really, the strength of the economy. so again, we think the u.s. is actually exquisitely positioned with respect to every other place in the world, especially europe and the uk. so, for instance, on the uk, this brexit stuff, over the last ten years, the uk's percentage of world gdp has been cut in half from 3%to 1.5%. and european union's gdp has dropped 700 basis points, while america's percentage of world gdp has remained stable. we still think the u.s. is the place to be. >> all right we'll leave it there gentlemen, thanks for joining us to break down this market rally today, mike and brian. when we return, vox media ceo jim bankoff right here at post 9 we're back in 2. it was sophie's big day.

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welcome back i'm brian sullivan

here's what's coming up at the top of the hour. trade headlines, they are sparking this huge rally, but should you trust it? better than expected results, a raised outlook and a ton of upgrades today the stock is on fire it is juniyour call of the day and a very special guest u.s. open champ andy roddick is here he's on a mission to get young people to invest and will serve up some of his best investment ideas at noon on the "halftime report." jon, back to you >> now, vox media sv nation teaming up with draft kings' sports betting operation this morning, announcing the launch of draft kings nation, a multi-year editorial and technology partnership designed to offer exclusive daily fantasy and sports betting content to its users. vox media chairman and ceo jim bankoff joins us now right here at post 9. welcome. >> great to be here. >> so explain how this works it doesn't seem to be

advertising driven in a way that most of vox is what's the business here for you? >> well, happy to announce first day of the nfl regular season today, that we're grating a great service for sports fans. i don't have to tell you and your audience that sports betting and interest in it and interest in daily fantasy is at an all-time high, expected to grow even more as it becomes legal in more states draft kings is a leader in providing the actual game plan, whether it's dfs or increasingly more in the sports betting space. and we're the leader when it comes to creating content about things that sports fans are passionate about so the simple idea is, let's come together and create great content. not only for people who bet and play, but even if you don't. like, you're curious, you want to know who the lines are, what the favorites are, what the prop bets are so we'll create original content based on the ethos and the tone of sb nation, which hits about 65 million people every month. a leader in the sports community space. lend our expertise, vox media's

technology, and draft kings' leadership in their space. the business model is going to be -- actually, we are going to have advertising with draft kings and what we're seeing is that not only do people love to play these games, but marketers love to get in front of people who play these games and so, i think together, we can kind of help solve a problem for them, which is to leverage our scale and expertise and our technology and together, create a great service for sports fans. >> but it's not mostly advertising-based, i take it they're paying you, right, to produce the content that helps draw eyeballs? >> we're going to sell advertising to marketers, and of course, they're in the game business and so they're going to get new customers, as well >> all right so i'm going to borrow a question that was a headline from a recode article on fox back in february how long before big media companies become big sports gambling companies i ask you that question with this news today? >> yeah, you know, we're not going to get in the sports gambling business. that's a regulated business, that's what draft kings is really good at our partner over there, ezra,

came to me with this idea. but you're absolutely right. like, i saw an announcement with fox, we see espn, we see other players, media companies getting into this space. so i think absolutely, the marriage of media and sports gaming together is a powerful one. and i think it's best done when companies like ours stick to what we do well, which is create great content, create big communities, draw big audiences, have advertising solutions, and companies like draft kings do what they're a leader in >> there's a plethora of content already out there for the average sports fan online, so what will distinguish your content in terms of why and how it services this particular segment, which you're talking about as sort of somebody who's more likely to bet on a game >> well, sb nation has always been unique. we call ourselves more fan focused. what it means from a business perspective is not only are we always among the top five along with say, espn and yahoo! in

terms of reach, but we're the only ones that are not affiliated with a sports league. you know, we're not, we don't have rights deals where we have to cover things in a certain way. we can be true to the fan philosophy and what the fans really care about. so, you know, we're not part of a big media conglomerate, we're not a sports league ourselves. so what that enables from an editorial perspective is to speak honestly, to cover things in the way that fans really want to talk about. to dive deep into communities. our network is different than others we're not just one brand, we're actually, we have the leading sports community for every team. so if you're here in new york and you're a new york giants fan, you might know us as big blue view. if you're out in california and you're a san francisco/49ers fan, you know us as niners nation both of those are leading communities. that's another distinction it's not just talking to all sports fans with one voice, it's talking to you and your passion.

>> how tough is the digital advertising market right now i mean, there were a couple of years ago efforts to build on facebook you know, the verge was working on some things along those lines. there was this move toward, you know, video and advertising, which seemed work well for a while, but now seems to be getting kind of contradicted how tough is the business? >> well, you've noted that there's always change, and i think every single industry is being impacted by technology you have to be on your toes. you have to be ready for change. media more so than any others. having said that, for companies like ours that, you know, we're now well over com score around 1 million in size for companies like ours we're seeing the combination of scale and quality matters. i to think it's tougher for smaller companies that might be subscale, and you know, you see that happening with local news, unfortunately, providing a vital service, but really struggling with the business model.

so you see change everywhere i think it's having impact on the sub scale players. >> is that a consolidation call? >> i think it is we see it happen here, we have acquired two smaller companies ourselves this year, and i think we'll continue to be on the lookout for organic investment, partnership and m&a activity >> that call is still out there. jim ban kokok, thanks for being with us. >> thank you >> the dow having its best day since early june, up 437 points. we have a lot more on today's upswing, just ahead. stay with us woman: my reputation was trashed online.

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the low's get to the cme rick santelli has the santelli exchange >> reporter: obviously it's a big day in stocks and many eyeballs rightly so are aimed in that direction but there's another hot marketplace today and it is the long maturities, all maturities, interest rates are moving up. i like to concentrate on the long end, why? think about a whip, okay what part of the whip moves more, the part closest to my hand or the part at the end? of course the part on the end. remember we used to ice skate when we were kids, grab a rope and swing around person who had the most fun was the person on the fartherst end of the rope, that's where all the gam and action is. to that end, calling a reversal in rates after the august we had is really a long shot and long

is the word of the day let's go to the white board, okay now i included some other maturities, but just to give you an idea, yesterday's close in the two-year was 143 get what the cycle low is? 143. where is it now? 155, a big jump. ten-year note yields 147 closed yesterday 146, cycle on the third. where are they now, 158. these are big moves. but nowlet's look at the 30-year, the long end. right now it's at 207, its low is 195, and 207 is almost up to 209, we'll get to that in a minute and the 30-year boom which really got me on this topic, has had a huge day. as a matter of fact, right now it's slightly positive it hasn't been positive in a month, and today's the first day it sort of rocketed there, and rocket's the word. yesterday it closed at minus 15 basis points this is a big move for 30-year

boons and low was minus 27 not that long ago the 15, mid-august let's go to the board. the longest maturities are key in my opinion and we've done this many times. ten-year note yields in 2012 and 2016 in july basically had a double bottom right around 137 it is literally a game of chicken between tens and thirds, because if tens violate this before thirds get back up and above their significant july 16 bottom at 209, then i think we continue to go down, but we haven't done that. as a matter of fact, the opposite seems to be occurring should we close above this 209 before that occurs i don't care if it's a long shot or not and it might not be the bottom and big augusts have big reversals coming back the other way, but this is a significant date john, back to you. >> rick, with the whip as a prop, what a santelli exchange

>> bravi >> there you go. stocks surging, another triple-digit rally for the dow this morning, looking for its fifth positive session in six. take a look at names leading the index on today's session, and we're back in less than three. d. (crowd cheering) stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent, but it doesn't equally distribute opportunity, and paths are not always the same. - i'm so proud of you dad. - [man] i will tell you this, southern new hampshire university can change the whole trajectory of your life. (uplifting music)

will august jobs picture reflect a global slowdown? how might tariffs take a future toll

the numbers and instant reaction, tomorrow 8:30 eastern on "squawk box." >> we continue to watch markets here amid this rally, with the dow up 427 points, all but two components are in the green right now. current levels for the dow and s&p would be highest close since july 31st. >> let's get to brian sullivan with "the half." >> john and morgan thank you very much. welcome to "the halftime report" i'm scott sullivan in for scott wapn wapner what a day to be here. forget the boys, the bulls are back in town trade talks fueling stocks higher, but should you trust this rally or is this just the computers gone wild? it is 12:00 noon, this is "the halftime report. >> the u.s. and china getting back to the table to defuse the trade war. the next move for your money despite fears about slowing growth, the american economy still adding jobs in a big way we'll game out the