he's the most fun because of that >> classic >> kenny -- >> jetacademycamp.com. >> lakers win it we got to go >> lakers are the favorites. i don't know if they win it. they're the favorite >> that's all we'll say. thanks for letting me sneak that in >> we have a lot of earnings to watch after the bell "closing bell" will cover it all. kelly, melissa, thank you. welcome to "closing bell." i'm sara eisen along with wilfred frost. stocks up at the open. but they're now in the gre green .5%. a record slowdown in gdp raising the stakes for the deadlodead negotiations earnings the other big driver. companies beating lowered expectations ups and qualcomm are surging another day of growth over value. big tech rising ahead of earnings this afternoon. this is going to be an epic one

in terms of an after hours session for us >> it certainly is so many earnings reports coming out. and four giant tech companies among them coming up on this massive show, fresh off earnings this morning, an exclusive interview with david taylor shares hitting a new record high today. the company saw consumers stock up on household goods amid the pandemic and then at the close, we'll get earnings as sara mentioned from names like apple, amazon, facebook, and alphabet those companies represent some 40% of the nasdaq 100's total market cap that is all coming up today on "closing bell. let's start with the markets the dow more than 500 points intraday swings today. now at the moment down by 200 points mike, an intraday recovery inspired by the european close this was soft. once we got that behind us, allowed us to bounce a bit >> it is true. the markets absorbed that

weakness in europe as well as, of course, the ugly economic numbers before the open. also i tested the recent lows in treasury yields which so far has held here's the s&p 500 year to date. by the way, the buyers came in the s&p 500 at a familiar spot just above 3200. there are 12 trading sessions since july 15th. in eight of them, the low was small. for whatever reason, that's the floor until proven otherwise this is a trading range within a bigger trading range that's been going on right now it's comfortably stuck it's resilience on the one hand. on the other hand, it's overreliance on the big cap tech stocks that have not been able to make new highs for a few weeks now. about three weeks actually for the nasdaq 100 i want to take a look at the volatility setup a lot of chatter about the election august begins a period in election years when sometimes the market kind of has a little tough time making further head way. this is the vix futures curve.

this is the prices of volatility futures on a monthly basis going out several months and this is the october contract which is the one you would want to buy if you're betting on some volatility happening around the election sort of election time. certainly not time to the actual date but this is an unusual structure. generally it's good. but to have this big bulge a couple months out is a little bit odd. it is going to keep a little more of a bit in the volatility index itself than you might otherwise see for a market that has been trending very close to all time highs >> mike, thank you so much for that let's get into the market a little more. the chief economic visitor at aliance joins us great to see you as always interesting intraday recovery today. what do you make of it what do you make of the gdp data this morning >> thanks for having me. on the market, more of the same. you just heard mike santoli say once again we bounced off the

bottom once again technology is leading the way. it is more of the same it is striking given how bad the data was it's not just the gdp. that is a record contraction that was expected. the jobless claims confirm what the other high frequency data is indicating which is a leveling off of the economy so we continue to see incredible market robustness despite the deteriorating fundamentals >> i guess we didn't see that today in europe. i mentioned earlier and there was some bad macrodata the dax is one of the recent outperformers and has given up a lot of that outperformance in the last ten days or so. the nasdaq and tech leaders still haven't. is that a warning sign perhaps of some of the recent u.s. outperformers? >> well, it points to a set of

attributes that we have that the rest of the world lacks. and that is companies that combine very strong balance sheet, positive cash flow, and have the world coming to them. because we have the companies in our markets, we tend to continuously outperform. but it's a pretty concentrated outperformance >> you know, the gdp number was a reminder that the markets still remain very detached from the economic fundamentals. fe even if you view this as backward looking and rebounding in a lot of key places like housing. this say deep hole that is going to take a while to get out of, especially with the high frequency data showing we stalled into terms of the rebound. so how much further can the market run ahead of the economy? >> look, it's all about

technicals i've been wrong for the last few weeks. i exited my tactical positions too early. and you have to understand the conditioning of the market results in the very strong technicals that mike and others have spoken about. and that conditioning is a win-win. you win by looking through the dip and just focus on the destination which will be secured by a vaccine and immunity -- community immunity or you win because the fed again yesterday reassured us, sar yashgs i heasara, i heard the fed say they're not thinking about interest rates. three times in the same sentence. >> yes >> on that point, mohammed -- >> we hit that point pretty hard >> just to follow up on that point in ermz it of tterms of t reaction can the dollar keep sliding and

can gold keep rallying or will either of those trends be derailed if we do say see equities fall lower meaningfully and we have more of a prolonged risk off environment >> certainly gold can continue rallying because it's not just people looking for a meaningful hedge because yields, as you mentioned, are so low that people have gone beyond looking at bonds for hedge you get a structural tail wind as for whether the dollar can continuing weakening, i think so we could well continue to see the dollar fall. >> mohammed, 33% decline in gdp

and rising rate of joblessness again, more americans getting laid off, where is the urgency in washington? how badly do we need this stimulus package why do you think the market isn't throwing a bigger fit that they're deadlocked >> we're not throwing a bigger fit because right now liquidity from the fed is more important i think that's a mistake ultimately, impairments are going to matter to this marment. and capital impairments can be reduced via fiscal support so fiscal matters. and it's going to matter just as much as monetary has mattered. in terms of congress, yes, they have to respond quickly. and you heard me say, sarah, it's not just about relief which they're looking at and also about living better with covid-19. so we can have healthy reopenings it's also about countering long term economic household insecurity which means lower demand over the long term and

lower productivity which means lower supply so they've got to move and they've got to move in a he is sequential fashion and do it quickly. >> nothing is moving right now thank you. the dow is down 252 points up next on the show, one of the biggest consumer goods comes in the world, proctor & gamble. an interview with david taylor on how consumers are spending. in a few minutes, the ceo of impossible foods, pat brown joins us he announces a new partnership with walmart

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i sat down with david taylor of procter & gamble and asked him what is driving consumer behavior during the pandemic

when they're seeing strength in the laundry and dish soap business v a listen. >> yeah, three categories that were double digit. you mentioned our home care which is air care, disk care and surface care so many people are in home and they're reaching for trusted brands so those brands did very well. our tissue and towel brands which are bath tissue and paper towels have done well as well. and our personal health care business is doing very well. but it's true across almost the whole company. you see very strong results, fabric care with 7%. beauty care did well across the company. very balanced. >> not grooming though grooming is not growing. are people not shaving >> there is an impact as well with people at home. grooming was growing nicely up until covid-19 and then certainly with people at home, there is a lower incidents of shaving but even with all that, grooming still grew this year again, i feel very strong that

the grooming strategy and the people are doing a good job. there will be a period right now where people at home and there are lower frequent ti of dry shave. but we're also seeing increase of wet shave braun is doing very, very well for companies that recovered faster, we moved double digit on grooming there is a lot of signs that the strategy is working. >> what you have seen from the consumer over the course of this pandemic as it has changed we saw early stockups on things like toilet paper and paper towels what happened since? >> yeah. many of cat the goreies, those for sure and other cleaning items, they stocked up generally they kept higher home inventories. st there is that uncertainty ahead. the biggest thing that has implication for the near term is i think health cleaning and hygiene cat gore qu hygiene categories are getting more focused

we're also reaching for trusted brands so consumption in many categories spiked due to pantry loading. you see consumption kin to be very strong. i think it reflects the fact that people are in home and they need to take care of their families. >> you were doing well before the crisis as you noted. but, david, do you see the continued reopening of this country and the potential game changing vaccine as a head wind given that some of the pandemic trends kept people at home has helped your business >> no. because actually it's a balance. we also have some categories like grooming. there is a lot of puts and calls. i believe even post pandemic you'll see this increase in many of the hygiene, health and cleaning areas so we hope just like everybody there is a vaccine as fast as

possible and anti-viral as fast as possible. that's what we all hope for. i think with or without that happening in the near term, the company is well positioned to grow >> economic damage has been deep we got a read on gdp for the second quarter shocking more than 30% decline how long is it going to take from your point of view to get out of that hole >> yeah. my guess is it's going to take a meaningful period of time. i don't pretend to be an economist and predict this better than anybody else what i do believe is there is a dislocation in spending. and it's focused more on the home right now and during that period of time, i think brands that serve people for personal care or home care will benefit in terms of the economy, i have tremendous confidence both in the u.s. consumer more broadly people doing what they need to do once there's an opportunity with the vaccine to get back out that we'll see the green shoots pop-up quickly how quick that will be, i have

no idea. whether it's a u, a long u, it's anybody's guess. what we're trying to do is be ready for whatever comes at us to serve consumers and also help our communities. >> from your vantage point though, and you see the consumer pretty up close, how badly do we need another stimulus package which is currently at a stand still in congress right now? >> certainly i believe many consumers right now are very stressed and concerned what will happen to date in our categories, we haven't seen the big drop. i think you see it in the many categories that are more discretionary. our portfolio is focused on daily use items. performance drives brand choice. but i think to your point, i think absent that, people will naturally try to save more and be ready for a difficult period and certainly our business planning, we're planning for a potential covid-19 period to be most of our next fiscal year

which is 12 months i think that's the smart way to be ready and hope for better but be ready for this thing to last for a while >> so how do you prepare for that the last recession you saw sales get hit as consumers traded down, went to generic products that were more value priced. i know you haven't seen that yet. you said in the conference call. but how are you insulating the portfolio or thinking about pricing to avoid that? >> it's a good question. certainly we learned a lot from the last recession one of the things we need to do is make sure we had a broader price ladder so people needed the lower cash outlay or a different price tier and we have products available an example is laundry with simply tide or tide simply, you want to be available in various price tiers. the same is true in grooming and many other categories. versus last recession, we have a broader portfolio. the range of price tiers and we strengthened significantly the superiority of our brands. people are making choices on generally our categories low

cash outoutlay items they're going to reach for trusted brands that perform. the more we can increase the superiority and be available whatever price tier and cashout lay they want, i think we're better positioned to weather the storm this time. >> there have been warnings out. it could get bad again in the fall along with flu season. how are you preparing the manufacturing plans and the supply chain to make sure that if we do have another period where we need to lock down or stay at home like we saw earlier this year, we don't run out of key basic supplies like toilet paper or paper towel >> that's a great question sbent way spent a good amount of time looking at our supply chain. from the time this hit, we worked on business continuity plans that says what happens if a certain supplier were to go down, do you have an alternative? we've done the same with our contract manufacturers as well as our own manufacturing operations so at least as best we can, we're prepared we want to make sure that we got

multiple sources of key raw materials h we generally increased inventories where we're able to do so and able to meet the demand to be ready for what i think could be a more volatile period. >> you mentioned that china was back to growth is it back to prepandemic levels what have you stleen as theen t what about places in europe that crushed the virus curves >> certainly it's changed significantly month by month march and april, very, very difficult. may and june we have seen a very strong rebound actually april, may, and june in china. so china, mainland china is increasing very nicely for the fiscal year we ended up 8% and growing very strong through the fourth quarter europe, just in the last may and june you have seen them pick up. we've seen the pickup.

so we're encouraged as you're aware. europe had a longer lockdown period than the u.s. did u.s. was pretty short period where we had had restricted movement and then opened up quicker >> finally, you're the biggest advertiser in the world. the how are you thinking about how much advertising to do during this tough economic period and what's that going to look like over next year? >> our view on advertise is the same on product performance. this is not the time to step back it's the time to step forward. so we've been out fully communicating the benefits of our brands what we have done in our categories is adjusted and to be appropriate to the environment we're in to make sure we're communicating the health, cleaning hygiene benefits and in many cases depending on the environment making sure we communicate the value that our brands offer but we're not stepping back at all. we're stepping forward st. >> all right our thanks to david taylor, chairman and ceo of proctor and

gam tlbl wi gamble there with a message on advertising. they're not cutting advertising like we're seeing from coke coal yachlt i pushed him hard on facebook because as the biggest advertiser, everyone wants to know if it they're joining -- they didn't join the movement, but if they're taking a pause as well he would not say he doesn't want a headline saying that p & g is taking back he said we took a number of actions. he did not name names to make sure that they're not advertising alongside hate speech or anything like that and they're working behind the scenes not publicly on making those kind of changes. the other big take away and i thought you would be interested in this the international business the china categories are back to the same growth prepandemic which is not something we heard from starbucks or mcdonald's and europe is also tracking pretty strongly >> yeah. i guess the starbucks and mcdonald's has that foot fall necessary. i think the other standout, the

backward looking half of the year to be strong. but a similar theme coming out today from them as we heard from doug van de put. now whether that is rather a depressing outlook on how long the virus is going to be with us or whether people's tastes are changing a bit and being reminded of the value they can get from stay at home products like this either way, the guidance is strongly encouraging. hence, the stock is so good and staples more broadly are strong. >> yeah. p & g has not been shy about saying they expect a lot of the trends, the hygiene trends, for instance, to be with us. on a more permanent basis. so not just during the course of the virus but that, you know, we may change the way we think about cleaning our house or staying at home more certainly that has been a theme also with some of the bullishness around clorox, for instance it's not just a virus phenomenon these habits are really going to change forever >> great interview thank you for. that p & g up 2%.

>> hopefully shaving comes back for everybody's sake >> i still have -- in this job, whether you're at home or work, you still have to shave. so there we go walmart just announced 2000 stores in the u.s. will selling impossible burgers starting to day. the a huge expansion pat brown will join us after the break.

impossible's retail locations to more than 8,000 though beyond meat can be found in some 25,000 locations joining us now for more, impossible foods founder, pat brown. thank you for joining us >> thank you very happy to be on your show. >> no doubt. even happier to have this news to bring us on the show that you're in in 2000 or so walmarts how significant a step is this

for you? >> it's a big -- very significant step for us. as you probably know, walmart is the biggest food retailer in the world. it is -- it has a huge presence. it's 90% of the u.s. population lives within a mile of a wall smart store. it's exactly the kind of partner we want. they're in line with our mission. there is emphasis across the business on sustainability and i think it's really good >> we mentioned your rival beyond, obviously. already in a lot of walmart stores are there any rules of engagement in terms of exactly where yours will be placed in stores will they be branded together? or has alternative meat products or separate? are there terms and conditions on that front? >> we don't set any terms or

conditions on where our customers put our products as it happens, walmart is going to be selling them in the fresh meat department. we know from a lot of dwrat from other stores that's where they sell best. that more than 90% of our customers are current meat consumers and majority of their purchases come at the expense they would otherwise have been buying meat from an animal so we want to be where they're looking for meat and that's where walmart is placing it as far as beyond meat, we don't see them as a rival. we wish them success in what they do. they're on the same mission that we're on the only rival we care about is the animal based meat industry >> so, pat, we've seen all sorts of grocery categories explode during the pandemic as people are eating at home what have you seen from the consumer for your product? are they new buyers? are they repeat buyers

what sort of trends are happening as a result of this huge consumer shift we're going through? >> we're seeing a significant population of first time impossible buyers. both in retail and food service. it's because dwoent hawe don't control data i don't know how much is driven by covid-19. more than 70% of consumers who buy our products for the first time become repeat customers and 90% of them are omnivors they're meat consumers i think we'll see more and more with the disruption of the meat industry, more first time buyers that are looking elsewhere for their meat and as i said, it's very sticky. a majority of them become repeat customers.

it's kind of like the more we sell, mort we sell >> where are we, pat, with the new pork product >> interesting question. we have an awesome -- what do we call it, fake pork it is pork made from plants. but it's -- we haven't announced a commercial launch for it the product is great we have done some tests with chefs and other markets. but we haven't announced date to launch it commercially yet >> pat, what is going on with burger king? because we heard initially sales were really strong when you rolled that out. but then they apparently slipped precovid-19. what can you tell us about what is happening there >> well, the sales are very sensitive to, you know, burger king does a lot of promotions and various things like that i would say our sales at burger king have been very solid

through the whole covid-19 experience it's been very, very successful for burger king. very, very successful for us and, you know, we have a great partnership with them. >> pat brown hope to you have back soon thank you for joining us >> thank you time now to get a cnbc update with sue herrera. the. >> hello, everybody. here's what's happening at this hour multiple police officers were shot in chicago today after police attempted to arrest a carjacking suspect at least three officers and the alleged offender were wounded. the conditions of the officers and the suspect are not known at this time. former president barack obama in his eulogy today for representative john lewis renewed his call for all of america to pick up where the civil rights icon left off in the fight for equality and

democracy. >> that's where real courage comes from not from turning on each other but by turning towards one another. what a gift john lewis was we are all so lucky to have had him walk with us >> and the world health organization is warning young people to not let down your guard on the coronavirus adding that evidence suggests that recent spikes in new cases in some countries are being driven by that generation. you're up to date. that is the news update this hour back to you. >> sue, thank you very much. up next, apple, amazon, alphabet and facebook earnings coming after the close we talked about the incredible run in semiconductor stocks. take like at how intel has diverged from the group. we'll break down some of the winners and losers within that subsector as we head to break. here's a check on bonds.

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johnson & johnson announcing positive results from nonhuman trials we have that story >> these are very, very early data they were from a monkey study of johnson & johnson's vaccine. this is the typical preclinical

work they do before they start human trials j & j publishing the data in the journal "nature. they're perceived positively before the open, the stock was up 2% on the news. now it's just about flat i've been running the data by experts in the field at colombia telling me they do look promising. they do look like the vaccine works at least as well as moderna's if not better. she said it is hard to extrapolate results from a few monkeys to billions of humans globally i also talked with a doctor that said i await phase three human trials mice lie and monkeys exaggerate. a little drug development humor there about how animal data doesn't necessarily translate into human results so, guys, j & j did start human trials earlier this week in the u.s. and the week before in belgium. it's on track if this goes well to start phase three that large study in september. of course, we know other companies have already started

those phase threes in the u.s. already. moderna and pfizer this week but there is another question about if these vaccines work and they get through the approval process and there is enough oit, there will americans take them and cnbc has been polling on this exclusive new data this week shows how americans are looking at this. about 39% in the most recent data say they would definitely get a covid-19 vaccine but 19% say definitely not guys, those opinions are holding pretty firm officer the last two months so experts say we need 70% to reach so-called herd immunity. >> at least it wasn't mice mice lie and monkeys exaggerate. that was a good line meg, thank you >> monkeys are better than mice. thank you. humans, that will be good. 2 minutes left of trade. the here is where we stand before the closing bell. nasdaq is up .5% everybody else is down

certainly off the worstselves l of the session exxon, dow, materials, chevron are the biggest losers qualcomm are hitting highs and it could be a volatile after mours session. apple, amazon, facebook, phetllomg tethe market closes.

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let's bring in our own jon fortt for what is happening. themes that are driving these kind of big gains off the back of earnings? >> sara, it's interesting. there is no one theme that is driving all these big gains. the in qualcomm's case, the big surprise is that they have this settlement of a license dispute wi with huawei. they are performing better than they expected. qualcomm said developed markets were down. units in developed markets were down 20% they expected more like 30%. for the september quarter, they were modelling more like 15% so that is overall good news but really the stock popped after hours when the people understood that huawei was going to give them this $1.8 billion to make up payments for license and continue to pay license going forward. in amd's case, they were benefiting from intel's stumbles

on the chip manufacturing:so kind of benefiting from an extended period of process technology leadership over intel. plus, hey, the products continue to churn out and they continue to put out new products that are seeing good success in the market >> jon, just to dwell briefly on your point about what this might mean for the likes of apple and heard your discussion earlier on "squawk alley. so slightly better than expected but we're still talking about guidance was down 15% to 20% year over year apple's stock almost doubled over 12 months >> it has. the question is, what investors choose to focus on apple has a stable customer base it's continuing to pay a dividend there is no doubt about that qualcomm saying that in developed markets, not only are those stable and coming back even though they do continue to struggle with covid-19, also

premarketous smart funds are holding up just fine it's not like consumers are trying to go down market to cheaper phones during tough time all those things should bode pretty well. we're watching the service businesses with people staying home and playing games and downloading stuff from the app store. that is probably doing okay. and then we know kind of the stay the at home back to school trade. there is probably some people buying macs and ipads to make sure the kids are well outfitted. there could be some positives in apple's results based on the trends. >> jon fortt, we look forward to those numbers in just under an hour from now. up next, we'll bring you uninterrupted coverage of the final minutes of trade rush of earnings, of course, straightft theel aer bl, too we're in "the market zone" next.

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investment strategist stephanie link with us as well stocks started lower after record drop in gdp more than 1 million additional americans filing for jobless claims but now we are off the worst levels of the session. s&p 500 is down less than .5%. nasdaq up is .5% and the dow, stephanie link is down 250 points. you are surprised to see the resilience after economic data >> it was not a great day with the bulls with the gdp numbers but that's backward looking. the decline is huge. and the consumption expenditures being down 35% also is worrisome. it's really startling the numbers that we're seeing. we're now up two weeks in a rove initial claims i look at the four week moving average. if we go up for four straight weeks, we have to revise the recovery assumptions but we're still going to see a recovery it's an uneven economy

it's a terrible way of a market. but there are pockets in the economy that are doing well. housing, auto, retail sales, e- commerce look at paypal look at ups. business to consumer they sold -- they delivered 21 million packages each day in the quarter. it's really crazy. there are pockets that are doll well and pockets that are not doing well this is why we'll get the fiscal package from congress, days, weeks, but it's coming >> mike, we're waiting for this slew of big tech earnings after the close. i guess the setup is not quite as hard as it was for microsoft ten days or so ago but increasing the pressure on themselves in today's session. >> a little bit. i mean, as a group, they really done nothing for three weeks they're all down whatever 4% to 7% off the recent highs. there has been a generally and not just in tech a general sell the news instinct in terms of

individual companies reporting hard to say that all four are going to have unified response there is a market wide vert on whether they've gone too far in general, they've done better when they are more abstractions. just claims on long term cash flows and they were beneficiaries of the and they show the work every three months i don't think there is an edge in here. i think the big thing is that it's scary it sort of did this morning. the market goes back to these names and that's why they lifted the overall indices from the morning lows >> let's talk about banks. tough day for the bank sector. simple reason. they're off the back of weak economic data. with it, bond yields falling which hurts the banks as we know the interest rate sensitive names in the group like wells fargo suffering more than the investment banks like goldman

sachs. the kbw banks index is down 2.5% certainly, therefore, a bad day for the banks. that said this past month or so has been range bound really for the sector it's true they continually fail to break out to the upside, they're not really breaking down either whereas moves this weekend in the european banks are more stark to the down side barclay's, deutsche bank, all reporting the laugh couple days. they're down closer to 10% in just the last three or four trading days compared to the u.s. banks which today are really just giving up gains earlier this week. the u.s. investment banks by the way the clear winners when it comes to q-2 trading revenues. most of the european banks coming in at plus 40 or 50% year over year compared to some of the u.s. investment banks that are up over 100% year over year. steph, we're getting another reminder of how many hurdles the banks have to get over

it gets undone quickly they're holding in better and massively outperforming. the money center banks thet did have great quarters, right? and the stocks are still cheap they don't have as high dividends. i think that you're going to see more dividend growth from a morgue an stanley. maybe not goldman sachs. i wouldn't touch the european banks. the capital levels are not nearly what the u.s. banks r i think there is market share had. i think that's what's been happening. this issy own special situation stories. wells fargo with the turn around morgan stanley with e-trade. all these things are

down-and-out i think into a recovery into next year they should do better. >> some chief price to book multiples though, steph. if you do want to venture on that side of the pond. mike, on the yield point, clearly we could close at some record lows of yields today. even if if the stock market recovered intraday, the bond market certainly haend >> it hasn't the bond market is barely holding in there the record low close for the ten year yield .54 that's where we're sitting at the moment it's really fed much p more into the types of stocks that are working and not working today as opposed to the overall market selloff. and that dollar, it did look tentatively as if it was going to stand and the down side momentum eased and slid slower again. pt in theory, that is also helping the same types of w liquidity. >> the pound is back to 131. wow. that is saying something >> i know.

>> i would just say it's not just liquidity plays it's the stay at home plays working. my old handy pepsi versus coke that shows what you is working etsy is up 3%. >> the rules are clear, sara we're waiting for environments that the case surge and the sunbelt is definitively on the way down there was even an uptick in the real time credit card data in the last week or so. but that's the way that the allocation goes. that's the way the rotation works when we're under that kind of regime.

>> i want to hit big tech. apple, amazon, alphabet and facebook all reporting results today after the bell just one day after the ceos of all the companies testified in front of congress about anti-competitive practices there is a lot on the line this afternoon. there is the potential to move broader markets. let's drill down on facebook now. we have a preview on what to expect >> well, sara one key question for facebook is how much ad revenue is impacted by the broader ad contraction driven by covid-19 as well as the ad boycott in the second and third quarter. now investors are looking for any guidance on advertising pressure and facebook needs to increase spending to block interference as well as to block hate speech. it was expected to grow to 52%

revenues anticipated to grow 3% to $17.4 billion we're also watching user engagement in light of tik-tok's growth we'll have to see what zuckerberg says about yesterday's hearing. >> stephanie, interesting. this is one of the only big for you four you don't own >> i sold it on the boycott news i think that's going to be -- i think it will cap the multiple i think the quarter is going to be just fine daily average users is up 13%. that's an acceleration from 8% from a week ago. i think the business -- i think the business is just fine for this past quarter. i'm worried about what they're going to talk about on the boycott. i also have a lot of smb exposure so to the extent that we don't get this aggressive fiscal package, maybe those businesses

continue to suffer so i have plenty of other exposure in faang. faang plus microsoft is 20% of the s&p 500. so i'm pretty much there but i just feel like there is the other ones that are so clean. google really is the one that is intriguing to me it lagged the whole group, right? it's only up 42% from the march lows but these other names rare up 50%, 60% t the expectations for going rl a lot less but that's the one i'm inclined to buy. >> which of the three you own are you the most nervous about >> amazon. just because the expectations are so high. right? you know, the stock is up 79% since march. crazy. and we all know e-commerce is going to be 30%, 35% growth up from 25% growth. we all know aws is going to be low 30% growth is it enough that's my question we know it's a beneficiary of stay at home i get it i still own a small piece.

net-net, i was trimming it too given that i had such a nice run. >> on facebook in particular, this was the quarter that a lot of the biggest businesses and the country decided to take a pause on social media spending is that not going to be flekted here in the results just because rely so much on small and bemedm businesses >> it is interesting we first got into this economic shock back in the spring people were saying oh, no. facebook has too much small business exposure. service industry exposure. and then the concern turned to these large advertisers that were going have a boycott. i don't know how much it's going to show up in the numbers. it's working against this sort of long term increase in just digital advertising and facebook market share going up and people staying at home and having more intensive, you know, usage of these platforms. i don't know if it's going to really shake out i've been saying for such a long time that facebook as a company, they don't have a great

incentive to really maximize what the quarterly numbers look like they don't want to seem like this world dominating entity that can't be dislodged for political reasons. but that hasn't stopped them >> you can say that about all of them and by the way, it's also kind of a value name, crazy as that is to say in faang it is only at 31 times forward earnings >> yeah. cheap, cheap we have just over two minutes left of trade. mike, what you are seeing in the market internals here as we march into the close >> a little skewed to the down side there you see a three to one down side to upside on the new york stock exchange. the nasdaq is closer to 50/50. so that is the split right here in terms of styles that are working. and then look at mega cap growth the mgk is a pretty good fix on the mega cap growth sector so it shows you, it has been a

growth tilt all week and today it's how the market is kind of held in. there but value is not necessarily falling apart. more or less flat on week today basis. they did see an uptick again today. it has been really kind of stuck in this area in the mid 20s right now. bulls are waiting to give way as it did several months during the march 2009 low this is the time you should give up ground. unclear if it is able to do that because of the seasonal effect and the election coming up >> just under one minute left. equities well off the low of the session. the dow is down 227. but that is still down 0.9%. the low of the day coming about an hour into trade european markets closing helped

u.s. impetus to the up side. but that negativity in europe certainly hurt the open here but at the close weeshgs still down 0.4%. nasdaq composite bounced most significantly today. ending up 0.4% h tech, the best foremaning sector on the s&p 500. a tough setup for those mega cap tech names that report any minute now >> yes, here we go into that hour "closing bell. if jur just joiniyou're just jo sara eisen take a look at how we finished up the day on wall street. a lot better than when we started. the dow was down 223 points. second down day in the last

three. it is still up 1% on the week heading into a friday. how about the nasdaq that was the winner. closed up .4%. recovered from an earlier loss technology led again communication services will all the growth names, stay at home names. and the winners. the we're actually tracking for a higher week for the nasdaq breaking a two week losing streak here. russell 2000, index of small caps closed down second down day in the last three. they're also tracking for a higher week. down 10% year to date. just to put that in contrast to the s&p 500, it's up now .4% for the year get ready for a wild ride. st apple, amazon, alphabet, facebook, all of those earning due out in a few minutes wait, that's not all we're also ready for more numbers. ford, expedia, electronic arts, mgm, gilead and shake shack. we'll have instant analysis of all the numbers coming up for

you:th you. this is a crazy hour joining us to talk about all that, stephanie link with us "new york times" is ed lee joins the conversations on tech. first though to you mike on how we are set up broadly for these leaders of the market to come out with results >> market has been, i would say, resilient but not exuberant going into this period the s&p 500 closed at 3232 7 1/2 weeks ago. it stayed here because the growth stocks while they have flattened out have not given way. the big market cap leaders have managed to hold up right now even as we're moderating our expectations for the economic recovery it's just because of the performance that's already in the books for all these stocks year to date but by any stretch, the firmest bid in the market is in the

names. >> they're up 64% year to date i know how you can value it. if you look at aws, it's at 24 times. if you look at adobe and microsoft, they're trading around 30 to 40 times. it is reasonable it's just that it had such a nice run 91% of the analysts really like this they made buys on it i think it's going to be a good quarter. i just think that a lot of people -- it's very, very crowded. as i mentioned before, maybe google is less crowded maybe facebook is less crowded we'll see on the results though. >> ed lee, which one are you most interested in learning about? >> amazon. i think they're still the entity really that more than the other guys, they both benefit and

expose to a bunch of different types of businesses. jws, cloud, advertising business which is relative new for them commerce they tend to benefit more than not. as stephanie pointed out, i'm curious to see how they might help us understand the current quarter in terms of how things are headed and, yes, they are trading really high. they've been trading at a high multiple i think amazon is still the thing that i'm most curious about in terms of how i understand the rest of how the internet sector is working out >> mike, once we watch for the big tech names, back to the broader markets, what have we been looking at the vix recent days and the put-call ratio? >> it's a mixed message. the put-call is showing a lot of bullishness. that's been a little bit of a head wind for a while now. just because the expectations are high and it seems like it's

overheated i think the retail investor survey showed a tremendous kind of excess of bears over bulls. so i don't think everyone is overcommitted to stocks right here there are the pockets of overheating that really say when there is a shakeout, it needs to kind of skim some of that froth away but i don't think right now it's really all that lopsided on a market wide basis. >> stephanie, we talk about economic data. it is worth underscoring the numbers we got they're down 9.5% in terms of the economy. jobless claims ticking up. so first time -- americans filing for first time claims actually going in the wrong direction. i mean what does this tell us about where we are in the recovery and the direction of the stock market

they have a v-shape recovery in may and june to the economic rebound. then you reopen states and then you have to partially close states and we're wondering is this going to impact the numbers? by the way, it's impacting the numbers. as i said earlier, gdp is backward looking we knew it was going to happen how much do we bounce? that's what i'm trying to get my hands around if initial claims do expand for four consecutive weeks, that average, i actually would have to revise my recovery for three and four q of this year. i don't think that would have to change my 2021 numbers by the way, let's talk about earnings for half a second a beat is a beat they're not manipulating on the margin side. they are cost cutting. the but we're getting a little better revenue

so there are winners and losers. you know that. i think you are going to see next year better economic data and better earnings numbers. and that's what i think the market is trying to see right now. it's a little merky right now. we'll see better results >> we got our first earnings report of the afternoon. facebook moving nicely higher after hours. julia has why. >> facebook beating on the top and bottom lines very significantly we have revenue of $18.69 billion beating expectations of $17.4 billion. so that is an 11% growth in revenue. they're coming in at a dollar and 80 cents that is well above the $1.39 consensus. the highest estimate that's we had had for facebook look the asome of the other metrics, daily active users. increase of 12% year over year also better than expected. monthly active users, $2.7 billion and increase of 12% year over

year also better than anticipated and family daily active people this is the number of people that use one of the apps every day, $2.47 billion on average. they reflect increased engagement as more people are using apps to connect. they're seeing signs of normalization and user growth and engagement as the stay at home measures lifted and they expect the number of facebook users to be flat or slightly down in most regions. the third quarter of 2020 compared to the second quarter they do tell us revenue in the first three weeks of july saying in that period year over year add revenue growth is in line with the second quarter year over year ad revenue growth of 10%. so they expect the third quarter growth to be similar

am back to you >> julia, thank you. the stock is up 4.5%, mike double digit numbers on daily active users, monthly active users, revenues. all in all, looked like a very strong quarter people stay at home. >> yeah. >> yeah. the user intensity just carried everything and, you know, of course, facebook in the last couple years has, you know, intentionally taken a hit on margins. they've done more spending and hiring that seems to be working its way through. they narrowed their expense guidance bringing the high end slightly down. so that projection is 10% growth through the third quarter. certainly a positive saying last year's run rate. so all in all, you would have to say very good reporting even if they wanted to kind of restrain the strength of it >> we're going to go into these in more details. $89 billion. just under that $88.9.

and the segment sales, north american revenue is forecast to come in at $50.4 billion that is coming in at $55 billion. i'm going dig into this a bit more it is just crossing as can you see. the headline numbers of sales overall and sales in america are strong beat, 4% higher in after hours. >> yeah. and seeing a big boost there obviously, the net sales increase up 40%. it's particularly stunning here. i heard a wow. get something other numbers operating cash flow increase, 42%. just dying numbers we'll dig through and look at aws. some are worried about that. >> bottom line as well just not the top line. bottom line, operating income $5.8 billion second quarter last year, $3 billion. the forecast is for $1.2 billion the top line is beaten

comfortably. so, stephanie, sara is suggesting this is high expectations >> they crushed it they absolutely crushed it i think we were expecting them to crush it especially in north america, right so let's see what aws is i don't think i could poke a hole in this just yet. i mean, this looks great across the board for now. so let's see what the numbers come out looking for $11 billion on aws. >> you have $10.8 billion, stephanie, on aws sales. as you said, the forecast was $11.02 fractionally behind the expectation there in terms of the other lines where the beat comes through on revenues. the net sales in america, forecast $55 came in at $55 billion forecast is $50 billion. international revenue came in at $22.7 billion. and the forecast was for $19.7 billion. so those two lines where the beats come through on the revenue, aws, 100 million or so

behind expectations at $10.8 billion. >> sort of interesting, wilf go ahead i'm sorry. >> go ahead, stephanie >> no. the go ahead >> i was just going to say microsoft a little disappointment in cloud. disappointing in cloud and now aws disappointing in cloud. i wonder what google is going to do i'm looking for 50% in cloud revenue for them they're much smaller though. so perhaps maybe they're taking share. we'll see. we'll hit the points a little bit later. and maybe some of the political heat amazon is facing. we want to get to gilead numbers which are also out meg has the numbers there. >> sarah, it was a miss for gilead in the second quarter on both earnings and revenue. earnings coming in at $1.11 per

share. that missed the $1.45 estimate revenue of $5.14 billion is also short of the $5.31 billion that street was looking for really missing on their hepatitis c franchise. essentially saying fewer patient visits to their doctors to start new therapy. the hiv franchise, the drugs did hold up meeting estimate of $4 billion. they do expect a gradual recovery in the second half of the year gilead down 1.2% one of the things, of course, we're listening for closely on the call is updates on how remdesivir distribution is going. that drug authorized for treatment of covid-19. so we'll bring you any of the headlines as the call begins at 4:30 >> thank you very much gilead trading down a little bit in after hours trade back to amazon finish going through what we need to pick out the guidance for q-3 also pretty strong

revenue guide had been expected to come in around 86 had, $87 billion. they guided $87 to $93 billion so a beat on the guide an impressive guide. operating income guide roughly in line with expectations. $2 billion to $5 billion so strong guide for q-3. we're digging through the numbers. what stands out? >> just on those covid-19 costs. the last quarter said that mostly all of the operating costs would go towards covid-19. over $4 billion. that was expected. next quarter, q-3, assuming more than $2 billion in covid-19 costs. i want to break out aws, the cloud computing unit net sales up $10.8 billion that is a little bit shy of the $11 billion expected the annual growth race, 29% year over year. much perhaps you could have seen this coming. the cloud unit sales decelerated a little bit as well

that is not hitting the stock which is still up about 4% that may be because it looks like on pretty much every other cylinder, amazon is firing the i also want to pull out third party seller services. they're coming in at $18 billion. that represents growth of 53%. up from 31% annual growth last quarter. this is important. it relates to some of the complaints that amazon unfairly competes with its third party seller that is likely a positive point. that grew 31% over the annual growth last quarter. we'll continue to dig into this. again, a little bit missing the expectations on aws. but elsewhere looks good >> thank you we have ford earnings out. phil lebeau with those numbers

it is a smaller than expected loss from ford the estimate is for a loss of $1.17 a share. estimates are all over the board. automotive revenue coming in better than expected street expecting automotive revenue of just over $15.9 billion. a couple of notes within the earnings report for ford, end of the second quarter with $39 billion in cash. enough to get them through the second half of the year. even if there is another covid-19 resurgence and they have to shut down production again, they still have enough cash on hand to withstand that they repaid $7.7 b7.7 billio 7. credit line. they have expended $4.8 billion on a three year revolve credit line and for the third quarter, they're expecting to turn a profit of a half billion to $1.5 billion then swing to a loss in the fourth quarter when they have a number of vehicle launches but again, ford reporting a

smaller than expected loss for the second quarter >> nice pop for ford this was a little bit of a tough setup as well in the last few months at least. ford rocketed higher along with auto sales still down sharply over the last year but it looks like this was able to top expectations as well. >> yeah. certainly was super depressed, obviously. it has come back quite a ways from there definitely on the balance sheet side, that's probably the news a lot of companies are doing this it is raising the public markets, paying down the bank loan revolverers they had drawn on back in march so pretty solid in terms of a very, very long term kind of side ways move for ford right now. >> alphabet is out up 1%. st we're going through the numbers. we'll have them in a second. ed lee, pivot back to amazon we're focusing on the top line which is a healthy beat.

but also the bottom line they've really smashed the estimate there it's not like it gives them now a low pe multiple. big progress >> that was actually the surprising bid the top line beat was, i mean, you expected a beat if anything on the top line. i mean we in our household spent much more on amazon in the last few months as has a lot of other households bottom line beat kept the costs in line. they managed in such a way that didn't affect them too much despite what they have to spend on covid-19. we had the big three dominating and then i think they're stealing share away from each other a little bit and/or they're finding other ways businesses are finding other ways into cloud. that is something i want to get more color on. and, you know, the advertising is also chugging along which is

nice for amazon. again, a newer business for them >> i mean, it really tells you something, stephanie this stock was beloved and had a tremendous runup already is popping 4.5% after hours on such lofty expectations i guess magnitude of the surprise on the revenues and the profits. i mean, wall street is looking for operating income in north america to be down both of those numbers were positive $2 billion for north america >> and the operating leverage was very surprising. i also think what is surprising is third party two billion higher than expected and faster than first party. that does help margins, right? so that might have helped them i'd like to see if they actually invested that entire $4 billion that they were actually talking about last quarter i didn't hear if they did that or not i want to see what that impact is >> the fact that the stocks are

uppen with 1% and 7%, that implies that's not massively different than what they were priced at meaning the market got correct in terms of the companies are poised to beat as kro the board. >> let's bring in michael levine michael, what stands out in the amazon numbers for you >> i mean, they're pretty shocking i mean i'm hearing folks maybe highlighting around the aws numbers. but, look, the thing i would highlight about it and the conversations with the company is they've got exposure to everything they have exposure to some of the stay at home companies like zoom, netflix that are using aws. but they've also got travel companies that are down profoundly do i really care about the difference of $200 million people braced out of the viewer slowdown i don't think that is likely but the operating income i would also highlight besides across

the board being very strong, i mean they annihilated the operating income on aws. which is basically been something that is generating pressure over the last few quarters so that is 31% number. >> that's a big standout to me >> michael, hang on if you would. we know you cover this next name that is up we'll get you to on that alphabet is out. let's go to jon fortt with the numbers. >> alphabet is out it looks like a beat on the top and bottom with revenue coming in at $38.3 billion versus $37.3 billion expected also on a highlight cloud. cloud cracked three billion for the quarter. it was at $2.1 billion a year ago. so that's -- on that similar 50% trajectory where we also saw them last quarter. and on a call right now with

alphabet's cfo they're cautiously optimistic. i was trying to get color specifically on travel and dining they don't break things down or talk about things that way she did talk about users substituting one behavior for another. google's search is broadly horizontal they touched so much of the global economy that they continue to see benefit even as one particular area weakens. i'll bring you more as i get it, guys >> yeah. that stock moving about 1% higher after hours jon fortt, thank you very much michael levine, your first impression here of alphabet which is also looking like a beat >> look, facebook, i think whispers were up around, you know, somewhere between 3% and 5% for the quarter and also getting some color about how things are looking as you're looking on them so 10% pretty darn strong number

and they're indicating that is what their view is in the release in terms of q-3. alphabet, you have to see a bit more what they have to say on the call they help people's hands they were a lot more helpful than they've always necessarily been dpb play mid to bottom of the funnel so i think it will be interesting to hear the color. you know, the down nine, i think probably just about where the street was where by comparison, you know, the facebook and the amazon numbers are pretty shocking. >> look at that right hand side of the screen. all of those reporting companies moving comfortably and we still have another one to come a massive one in apple seven minutes away for that one. ed lee, what you are looking out for the apple numbers?

>> of course, we want to get whatever kind of guidance they want to give us. i think they're unlikely to do that i do think, you know, that plus again the services this is something i always look at it is a more important part of their business it's been the most consistent. again, under lockdown, under covid-19 and stay at home, curious to see how much better that might have done for them. and then, yeah, and then the supply chain holding up for the new iphone to come out if there is any color there that's going to be a key to understanding, you know, again, the biggest and most important business >> michael, thank you so much for joining us stick around rngse counting down to apple's stant analysis of the results. we're back after this quick break. just fine remotely. yeah, everything is running smoothly with the now platform.

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expedia numbers are out. expedia falling after hours trade after they reported a wider than expected loss on the bottom line. revenue came if lighter than expected as well

$566 million versus $675 million as bookings, gross bookings fell 90% in the second quarter compared to the same period last year using internal channel checks, wall street has been more positive about expedia's growth in vbro. travel preferences shift to vacation rentals over hotels and the company does reference that revenue per room night benefited from an increase in the percentage of room nights contributed by vbro. we'll look to the earnings call at 4:30 p.m. for more clarity as to how it's doing in the vacation rental market competition with air b & b and booking holdings peter kern, the ceo says we saw consistent improvement in gross bookings through may and june with cancellations moderating. it will be a bumpy and inconsistent recovery with virus numbers being volatile the ceo will be sitting down with me exclusively on "squawk on the street" at 10:15 a.m. eastern. for now though, we're looking at

the stock moving lower in after hours trade. sara >> all right one of the exceptions, thank you. we're seeing some of the other big cap tech names higher right now. facebook up 8% amazon was up as much as 6%. google's alphabet was higher we're awaiting earnings from apple, the biggest of the big. standing fw standing by to break down the numbers we have our guests we also have our own mike santoli. this is a stock up 31% so far this year. best performer in the dow. what will you watch? >> well, you want to watch their -- whatever they're going to tell us about the outlook for iphone units they're not doing unit volumes anymore. that are not a direct beneficiary of the stay at home and social media usage we saw really driving facebook and google so have to see if in fact they come in a little closer to what

the street is looking for right here >> stephanie, how high are expectations this matters a lot, not just apple shareholders >> it's up 64% from march. i do want to hear about 5-g and the pushout likely i think they're a stay at home push everybody expects services to be good low double diblgigit growth. >> josh lipton has the numbers. >> apple reporting before we get to the results, let's get to this news apple's board approved a four for one stock split. and request now? apple saying it's to make this stock more accessible to a broader base of investors. as for the results, they're better than expected q-3 earnings per share, $2.58. street was at $2.04.

revenue up 11% to $59.7 billion. that is verse expectations of $52.3 billion. so better on the top and bottom gross margins come in at 38% as for the segments, iphone revenue in the quarter, $26.4 billion. versus expectations of $22.4 billion. services up 15% to $13.2 billion. wearables home an accessories, $6.5 billion mac and ipad, better than the excrete street is looking for. and greater china sales which you mentioned actually grew. grew 10% and apple not providing q-4 guidance at this time. back to you. >> yeah. nice 5% move higher for apple after hours. four for one stock split stephanie, i'm sorry to cut you off before will let's give you the first word here. it's 18% earnings growth to new

june quarter records i was looking for a 12.5% growth they got 15% growth. and that has to be because the app store, the -- it's really accelerated throughout the quarter. we thought that would be up 30, 32%. that is higher i think this is a fabulous report across the board. trades at 30 times earnings. it's up 64% since march. the expectations were high fabulous numbers now we just wait for the 5-g >> josh lipton, do you have any more color >> on the iphone, we talked about the iphone cook telling me the iphone 11 was his top seller during the quarter. it's been that way since the iphone actually launched

we did talk about chia, they grew 2% in real dollars. on a currency basis, 6%. we definitely saw china come back into a big increase china has about 40 apple stores. they opened some stores here and had to close them because of the covid-19 spikes. they did not have to do that in china. i asked cook whether that made a difference he said that did make a difference in the quarter. st. >> jaosh, thank you it looks like on the surface they smashed it. what do you make of it >> this is a complete blowout. even best case this is beyond in terms of the iphone number the china growth which is key to the stock moving forward remember, 60 to 70 million iphones and an upgrade for china. then look at the margin profile, you put this all together, i

think next step is $425, $450 in the next three to six months into an iphone 12 product cycle. just this is a test line like number and now phase two comes for apple in terms of iphone 12. >> how about the four for one stock split? sort of old school. >> a little old school remember, apple did a 7 for 1 several years ago. i do think one bit of context is interesting about apple's decision to do this at a time when amazon and alphabet are happy to have four digit share prices apple is in the dow. dow is a price weighted index. april sl about $100 more expensive than next highest price stock. i don't know if that has anything to do with why they would want to necessarily knock it out of whack with the other 29 stocks in the dow

>> all right ed lee, just want to -- jon fortt, sorry we're going to jon fortt he has more color into the apple numbers which do appear pretty strong what stands out to you >> they're extraordinarily strong, sara i would say for this reason. first of all, iphone grew. not a lot of people saw that coming i did kind of think that might happen but particularly on mac and ipad, guys this is like a holiday season number. this is a q-4 number it is interesting what tim cook has to say about that and how much of that is a pull forward of demand based on people

needing devices at home to work from home to school to home. versus how much of that is just a rethinking of how many devices people need in the home. josh and i were talking about this earlier in the past, schools had been on a model of fractional usage. computer labs or ipad carts where each device is getting used by multiple kids. will you'll have fewer kids in school the kids need a device either sent to them from the school to use on their own or they're going to go out and get their own. and so that's a potential lift not just a potential lift. >> big move after hours because of all that ed lee, what is your take clearly the court is strong. a lot of uncertainty going forward. >> a lot of uncertainty going forward. the other context i want to add in terms of the numbers, i mean this is just coming a day off their big hearing, the marathon long hearing at the house judiciary committee.

it's a healthy marketplace and this he have the blowout quarters they beat expectations across every single sort of aspect of their business and that's a hard thing to sort of argue against now the four for one stock split at apple where they characterize it a more accessible stock for one thing. if you look at amazon's earnings release, they have page after page after page of what they're doing for their employees. and facebook is talking about the small, medium businesses how they benefited on facebook these are all true things. but i do think there is definitely sort of trying to characterize their great quarter in a way that is like hey, look, we're trying to do good for the world as well as make money as well as grow that is the bigger context here. as they talk about what expectations and forecast in as much as they want go this there, they're going to temper it for sure that doesn't necessarily mean

that, you know, it's going to -- it will more likely exceed whatever those -- what everyone is at for the current quarters >> dan, if they can beat iphone estimates $26 billion to forecasted $22 billion in this quarter of all quarters, how excited does that make you about when the 5-g super cycle gets going? >> i think it's a paradigm changer. that type of growth number in china, and then you put the numbers together $350 million of 960 million i phones worldwide have not upgraded in 3 1/2 years. you go into a super cycle, combined with services which is really the rock. that is why i believe this is, i look out nine months, main $2 trillion mark cap. >> so you think it will be the first to get there of all of these heavy weights? >> yeah. i think when you look at all the boxes they check going into the super cycle and what they just

showed, any bears right now go back into hibernation mode i think this is really what's going to be another leg to the apple story moving forward into terms of these numbers and what they proved. >> so i mean, i would just say that this is quite a session after hours. huge moves on already massive trillion dollar stocks that just show -- they show why the ceos appear before congress yesterday to explain why big is not bad. and that they're faring very well during this pandemic. showing remarkable growth. amazon is 40% revenue growth amazing profitability. i do wonder, mike santoli, the four for one stock split, i mean, why wouldn't google -- google is at what, $1500, amazon is $3,000. why wouldn't all tech companies want to make the stock more accessible >> it is arguable whether it is more accessible. you had to buy 100 shares or paid a higher commission right now.

it is zero commissions right now. it became like a status simpymb to not split your stock. the most famous of them both, obviously, did he create another share of lower priced stock for him when he heard that there was going to be basically a kind of unit trust created just to own the stock. sow figured he would do it himself. i don't know if there is a reason not to do it. it would seem to me that you have ceos like jeff bezos that don't want to care about the short term stock effects and let the thing rise. >> the point on the dow is interesting, mike.

>> it is silly you have the 10 x difference between the lowest priced stocks and the highest priced once. you know, arbitrary. >> and then just pivoting back to the move that we're seeing in the share price. without guidance, how confident can you be that this is still a buy, stig a hold going forward smash the quarter and all the positive things we talked about? but is there enough uncertainty out there that would make you want to take profits athe this point? >> there is always uncertainty i mean, when we don't worry about things is when i worry, right? i think this is a company that has a totable addressable market by 2023, you'll have a $50 billion total addressable market for apple. they're going to take a ton of share. and they already are taking a ton of share i think the theme today for

these companies that reported, we were wondering if they could actually deliver revenue growth upside it doesn't look like amazon is going to spend as much i think the revenue growth is the important thing. that's what people want pay for at this point in time. they more than delivered they all overdelivered which is really encouraging thank you for joining us look at the share prices reminder, of course, not all of them are up. google essentially -- alphabet flat after hours trading that is the first ever revenue decline in company history the earnings are not too bad but alphabet stock lower

the others as can you see, all significant after hours gains. we have much more on that wave of earnings still to come. we'll get reaction to the profit beat and active user growth from an alynast that is bullish on the stock. we're back in a couple minutes (music)

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welcome back to the earnings hour electronic arts numbers are also out. kate rooney with the numbers kate >> hey, sara electronic arts benefitting from more gaming during shelter in place. total net booksings came in at $1.39 billion. that shot up 87% from last year. ea also racing the full year forecast for adjusted revenue. that now looking to come in at

$5.95 billion. eps came in at $1.25 it's unclear if both of the numbers are comparable to wall street estimates ea citing strong player acquisition for games like fifa and madden nfl those player acquisition numbers jumped triple digits ea's ceo said it's an extraordinary quarter. stay at home during the pandemic was a strong till in the stock getting a boost after hours and shares of ea are up about 30% this year. back to you. >> shake shack is also out kate rogers? >> yeah. this is coming in with a miss on the top and bottom line for shake shack h loss per share, greater than expected at 45 cents adjusted revenue lower than expected at $92 million for the quarter. same shack sales down 49%. we knew that already from a business update that shake shack had come out with earlier in the quarter. the company also saying that urban shacks are struggling a bit more than the suburban

locations. digital sales also account forging for 75% of sales in q-2. total sales and average weekly sales have shown continued improvement throughout the second quarter and the third quarter through july 22nd. km the company created the shack pickup mod which will is incorporated into the new designs and retrofitted in shake shack restaurants. and they pivot towards this carry out and to go model. no guidance from the company this stock around 7% year to date and was lower than 5% after market guys, back to you. >> thank you so much for that. kate down 4.9% in after hours trade don't miss tomorrow shake shack's ceo 8:15 a.m. on "squawk box. mgm earnings also out. contessa brewer? >> hi there. mgm misses on revenue coming in $100 million shy of consensus. revenue plummeted 91% from the same quarter last year earnings a loss of $1.52 per share.

look, there is no tourism. they're burning through $65 million a month there. limited recovery in las vegas. casinos still closed in new york, michigan there is two closed in las vegas. the silver lining here is that profit margins in the rengional way up in las vegas, 4 550 basis point up the company permanently cut $450 million in expenses. prospect also look very good for the on line platform bet mgm in new jersey up 32% since january. the casino games, the i-gaming, up 66% more than offset detroit kline in sports. and the ceo is now permanent not acting he got that job. wilf sara >> all right, contessa thank you. stock down after hours four of the biggest tech companies, four big beats, apple, amazon, facebook shooting higher google is swinging back and forth. it is now higher by .75% after

hours as well. and reminder, this comes after we have seen already a huge run in some of the stocks. mega cap names in the last few months outperforming the broader market carrying the broader market joining us now to break down facebook in particular is brent till from jeffries he likes the name. you actually raised your price target a few weeks ago looks like a good call after this move after hours. 11% revenue growth is a deceleration for facebook. but still better than expected certainly looks better, brent, next to google's decline in ad revenue. what drove it? >> absolutely. revenue up 11% street was low single digits i think you go back to this is the best roi for small businesses and advertisers right now. revenue is down across the industry highlighted by google and others but facebook continues to show the best roi that we see in our field check. so better than expected top line and bottom line and we think

engagement is obviously very high with all of us working from home and it's a place to meet it's a fabric where everyone can collaborate. and we continue to believe small businesses are stampeding to the platform to get a much stronger roi. so we think the boycott had really limited issue on had limited issue on the overall results and we've been highlighting that through this process, that this boycott would not have material impact, and it did not. >> so you're as optimistic about the rest of this year as this past quarter >>ed to ed tstock is going to , absolutel absolutely ultimately growth will accelerate we expect it will accelerate into the mid- to high teens. the bar was really high for tech tonight, and all three of the big megacaps blew it out i think it shows you directi directionally what's happening

here for tech. >> does it make you uncomfortable in terms of someone who likes the name and likes the stock that they keep having these blowout quarters, after the day we had yesterday, the grilling from congress, the increased scrutiny, especially for facebook, on purchasing instagram, on copying their competitors, how big they're getting? >> no, we don't. we continue to say that we think that regulatory investigation is a sideshow it's a headline risk, not a fundamental risk microsoft had the same thing at $30. it's not an issue in our mind. it's an issue for all of tech. they're all liable and what congress is trying to do is make these companies safer for consumers. the companies are trying to innovate there's a middle ground. as one of congressman said, being big isn't bad.

>> it came to $185 billion in market capital added based on where these share prices are, or at least where they were five minutes ago. it's just extraordinary when you put it like that it's going to be a big impact on broader sentiment tomorrow in a way that, the last couple of trading days, we've been uncertain of the direction >> in terms of percentage moves, i would argue that relatively modest given the magnitude of the beats. the markets seem to have sniffed out that the published numbers were way too low i do agree with that keep in mind, you want to watch whether the overall nasdaq and growth sector takes this as a reason there's sustainable momentum as opposed to some kind of a sell the news, can it possibly get any better than this type of moment. we don't know which way it's going to play, we have conference calls to get look at had y >> brent thill, thanks for

joining us great discussion on facebook jon fortt, what can you tell us? >> ruth porat says cloud, technical, and sales rolls were just biggest factors in growth i asked her about cloud and how much they are investing, are they continuing to be on pace for what the ceo of google cloud told me was a plan to triple the size of the sales force in the pretty near term ruth porat, ceo of alphabet, telling me, we continue to invest at an aggressive pace, that was both head count and capex, and that they are on track to meet the target of trimming the saltri

tripling the sales force she said they are cautiously encouraged by the results thus far. i do continue to track the earnings call for additional commentary, guys >> jon fortt, thank you so much. alphabet essentially flat in after hours trade. apple jumping about 4 or 5%, we'll get the share price in a moment the senior editor of wired joins us what stands out for you in this report which is strong across board? >> it's strong across the board and part of a larger trend we're seeing with tech companies seemingly having great earnings reports, beating expectations, which is an interesting juxtaposition with yesterday's hearing. what stands out is overall revenue being up 11%, when analysts were expecting that

things would be lower than that. iphone was -- there was growth across all product categories for the most part. services were less of a surprise, those have been growing pretty consistently year over year and quarter over quarter. once again, we saw growth in the services category as well. overall this is probably a pretty good earnings report for apple. >> lauren, looking ahead, a lot of focus on the september release. is it going to be 5g what's the pent-up demand going? >> that is the big question, not whether or not it will be a 5g iphone but whether the launch of iphones could be potentially delayed. i don't have insight into what a 5g model looks like exactly, but i will say that even if there is any kind of delay in what would typically be a very early september iphone launch, i don't know exactly how much that's

going to affect apple, just in the sense that over the past few iphone release cycles we've actually seen apple stagger releases a little bit. there isn't just that one iphone that launches in september there have been for the past years another phone that tends to come out later in the cycle, sometime in november, and those phones tend to sell particularly well so i think even if there is a push this year for phones, which we may see from other manufacturers as well , i don't think that's the problem as much as there might be price competition, because we're seeing better phones come in at the mid-range price point. $400 or less, you can get a pretty darn good phone >> the sizable cash balance to apple, with the stock split, you might start to wonder about the adjustments. this could become more significant yield if it wanted to be. >> it could do so, there's nothing stopping them from

instituting a higher payout. they do this once a year, make a big capital allocation decision. that's already happened, i believe, in recent quarters. what is clear, though, the company has this overarching statement that it will get down to zero net cash it's almost impossible to do so, now it's $100 billion in net cash if you count the debt guess gross cash holdings. that's a longer term sense that the company has as an objective, that it's going to be distribute more cash to shareholders if it's going to be good on its word >> lauren, i keep going back to the hearing and thinking about this in the context of that incredible testimony that we saw from all four of them. now knowing what these numbers were, knowing that it was going to be this blowout, and wall street continues to shrug it off. we heard from an analyst who flat out said "no" when i asked if the bigger they get, the more

uncomfortable he is. what is your feeling about the looming threat of regulation or maybe just changing public opinion around these names for now it seems like consumers have no problem, they love them, they're flocking to them and that's what's driving the growth >> right i mean, ultimately what we're learning is that people spending lots of time glued to their screens during the pandemic has certainly not been bad for big tech and i think what we've seen from the earnings reports so far today from amazon, from facebook, from apple, from google, is that that is in direct contrast with the testimonies we heard about how we were one small or fledgling and we're creating lots of jobs. they are creating lots of jobs, but i think what those conversations are about are whether or not the companies are participating in anticompetitive practices. and the conversations are about whether or not we need a new or expanded definition of what antitrust means. i think those conversations are just getting started and as we saw in the testimonies

yesterday, or in the questioning yesterday, it tended to get a little off-topic at times, but i think the conversations are still early enough that the companies don't need to be that worried in the short term. >> lauren, thank you so much for joining us mike and sarah, the other point to quickly bring up, is a remind they're this came on a day when the employment data was worse than expected and the day after fed chair jay powell reminded us that 14.5 million people have lost their jobs since march through no fault of their own and remain unemployed, an extraordinary split in the economy versus the market and parts of the retail space and apple benefiting from people staying at home. mike, in terms of the market impact tomorrow, this will be very helpful indeed, perhaps pivot things back to growth. >> it will be helpful if it continues. i don't think there's any specific reason not to think it will carry over into tomorrow.

it also feels as if the market built most of this in as it goes along. it explains growth working better than value. it explains the u.s. holding up better than the rest of the world. we'll see if it persists after we have a few months when we're not going to hear much new out of these companies >> we are out of time on "closing bell. thanks so much for watching. lots more on "fast money." tonight on "fast," the tech titan earnings bonanza alphabet, amazon, facebook, apple, all on the move we have full coverage standing by jon fortt on alphabet, julia boors boorstin digging