october that could be at 3200. that does not sound like your forecast. did i get that right but we have to go in five seconds. >> we are going to go 4200 and possibly 4300 led by growth. >> fantastic and thank you, berry bannon. it's also good to have you on, this morning steve. up 75 point and we will see where it stands at the open. that will do it for us today and this week. have a great weekend, everybody. right now it is time for squawk on discrete street. it is friday morning and welcome to squawk on the street. >> let's take a look at the futures this morning. we kind of see a mix bag but of course we are coming off a very

strong days for the nasdaq in particular, up over 5% so far this week. the roadmap starts with something that could take place around town. snap is warning that shares our plunging and revenue growth will meaningfully slow in the months ahead pulling a lot of other ad-supported stocks lower. american express saying record spending driven by the rebound and travel. verizon also down in the market and yesterday getting crushed. the company cutting the full your forecast and subscriber growth nowhere near what people anticipated. >> let's start with social media companies. snapchat shares tumbling after the company reported the weakest orderly sale since going public. twitter, by the way, posting a classical loss of revenue declined as well. that is bolstered by

advertising. obviously you will not see twitter trade on this. it will trade on the likelihood of elon musk completing that delta buy the company. that does not make him happier with the way the business is performing. it's funny i would have these things i called penguins running off the iceberg. i did this over 20 years ago. we had this great music they will not let us use anymore. we have record today a penguins representing and louis with the last minute and they jump off and we work originally looking for landings but could not find him. that is 13 downgrades today. you can see some that you can barely fit on the screen. the whole premise of snap is disappearing things in we have a lot of disappearing market caps throughout the course of the year. rumor had statistics that bear results yesterday wiping out $76 billion just yesterday. that would be mostly on their

own given the decline but now just $27 billion market cap with tremendous loss of value this year after two consecutive quarters of pretty disappointing results. i wanted to ask you about this because you compare these results and the concerns about advertising slowdowns and the macroenvironment. we see that in verizon and at&t. we look at the results and everybody is spending and sales up 32% this year on cars. with everyone spending why isn't the advertising market holding up as well, or is it something the advertising market is the leading indicator that we could see on the economy? >> ads are something companies focus on when they think about a slowdown. what cost could we cut or what could we potentially pull back on the user quarter as one of them. a lot of ways you can choose not to buy now or go to the so

called scatter markets when it comes to the more traditional advertising markets to some extent. snap to their credit did not have a long speech prior to the conference call but just went into the q&a. they gave you the investor letter worth a read. platform policy changes with over a decade of policy standards. that is what they are relying on largely to the changes in apple. economy changes disrupting many industry segments critical to growing demand for advertising solutions. also increased competition for ad dollars and all of it adding up to very poor quarter for the company in terms of revenue growth. from where it was anticipated and we are came in, huge gap for what was a growth the name. i am wondering on the competition side. >> obviously we all know whether amazon or youtube, massive platforms as well on advertising and facebook. all of which is down including meta, alphabet.

let's take a look at the more traditional as well. one of those's discovery and others that rely on advertising as well. that is the question but that is what companies will typically pull back on early when they say let's be safe. >> you have that and the jobs as well. we have heard that from the likes of twitter and snap saying they will dramatically slow the pace of hiring. those are the first levels you pull because that is easier for discretionary spending purposes. twitter reporting and their report spending $33 million on fuel related costs and i think it was $19 million on severance for many executives they let go as a result of all of this. the uncertainty of the deal itself with their business. if you are an advertiser and you have funding, you have to find the pie. if you're looking at twitter

there is a lot of uncertainty surrounding the deal. they are saying it has caused a drop in revenue for them along with the macro challenges to. as we look at twitter result, down 1.8% not purely on fundamentals. the more important read is what is in the report and what it says about the overall sector. >> exactly, adding to the potential weakness for some of these names. obviously we have talked a great deal about twitter over the last few weeks and we will continue to. we don't have a trial date in october for the chancery court but that is where the focus and that of elon musk will be. is there possibility it will have talks about a settlement and if possible perhaps the board would be willing to accept a lower price, perhaps. it seems too early to even consider that but that is what that stock will trade off. it is not anything beyond that. we have to talk about the verizon numbers as well but

let's stick with snap to see how this reverberates through the market. the next guess lowering the target that was at $25 and now at $20. joining us to discuss is brent. you have to by making the stop but i cannot imagine you're happy with the quarter. >> obviously it was an awful quarter. i think it is obviously a sign where we are on the mat with many digital apps showing weakness. not just specific to snap but twitter numbers were negative obviously in the order and obvious the worst into q3. facebook announcing hiring freezes. google will most likely have a difficult quarter as well. i think it is a sign we are entering a more difficult environment. ads are the first thing you shut off in a more difficult environment. it is partly snap pacific but i think it is a broader thing catching the app names

offguard. >> it's always hard to know how long it will persist. when it comes to snap with changes at apple in particular what the impact there is. let me start with that. are a future quarter still going to futures to a certain extent with reduction in overall numbers as a result of the changes? >> apple still has a hangover and we think that will come in. it will take time for the problems to effectively reconfigure the systems to do bigger and better targeting. many of us living on instagram over the summer checking it and if you have been on instagram for a while they can target you just fine based on your profile. we still save that metaphor on instagram and having incredible targeting. many advertisers say they are coming back to the platform given the targeting. the bigger issue for snap was

around the younger audience and many of the advertisers we speak to say we are going where the lows are which is not at snap. the older generation has wallet. there is a shift of thinking google and metas with the advertisers we spoke with. obviously tiktok continues to be the force, taking oxygen out of the room for any ad player. >> tiktok definitely playing a role in the environment that appears to be tighter. looking at the wallet cash flow down 27%, that is negative for snap, $147 million in the hole but announcing plans to repurchase about $500 million of their own stock which is obviously very cheap right now. we can see that logic but do you think right now is the right time to spend money on the buyback? >> i do but i guess i'm shocked at how much it has downgraded

this year. we are at low visibility. but looking at where we are for the industry, i clearly think we are at the bottom of this rather than the top. i think they are signaling that they have value. remember this company not long ago would grow 50% sustainably but now growing zero. looking at the digital app players, twitter numbers were negative and it will be worse in q3. there is a bigger issue going on in dentistry not favorable for anyone. that will come back. ultimately i think it is a great signal. when you look at the number of users around the platform, users are growing across the platform. this is not a user issue but ad- driven issue which is macro, supply chain and concerned about their own business and pulling back on spending. it's not like the ad dollars are going back to the

newspapers or somewhere else. in my opinion i think it is pretty washed out. for long-term holders i think it's great opportunity down here. >> that is why you're keeping the buy rating and obviously you have not got it right so far, or at least not for a while. >> no, i have not. >> keep the buy but give me the compelling numbers keeping you at the buy. i agree when you look at 13 downgrades this morning, it sort of seems silly in some ways. give me the numbers. >> when you think about in the short term, at two or three revenue multiple. nobody really has visibility. the companies have ripped away their visibility. i think ultimately we see this as a technology issue. not even internet or social media issue but check at a low on multiples. in software we keep it 19 times revenue and now below six for the industry. when we start to look at what

terminal multiples are, bravo and private equity vendors playing seven to 10 times. look at the twitter take out at elon musk get what he wanted to buy twitter app. it is two times what it is streaming at right now. is it really that bad of an asset if there's one quarter where investors pull back when it's obvious where heading back into the macro storm. many economists said recession in 2023. i think it depends on your duration. this again i think is a company that has a user base growing and advertisers are getting in line. they are concerned about the macro, the canary in the coal mine for the broader macroenvironment. effectively all of us to been wrong and there has been a lot of downgrades and i certainly believe there is opportunity across the tech right now. many clients see the sidelines in energy, financial and other sectors and they don't want to get into this group until the

numbers are massively cut and into the fall. >> that is the story of the market. real quick with tiktok, are we understating how big a threat it is to many of these other platforms because we don't have visibility the way we otherwise would? >> they are a massive force taking oxygen from the other vendors right now, no question. i think what is clear is there are multiple advertisers and they will not just marry one and say we are committed to 20 years and that's not what's happening. in the number of younger demographics, tiktok and snap doing phenomenally well. i think this is a collection of assets that advertisers will look at and not just marry one. tiktok the biggest share gain or against all of them but unfortunately we don't get all the numbers and where they are at. they are deemed a massive share. >>.it. brent, thank you for joining us. coming up, verizon shares

under pressure in reaction to company results and guidance. we will go through those numbers. let's take another look at the futures. about 16 minutes before we get started with the last day of trading of the week. a mixed picture with the helmet looking higher. ♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪ to be... unstoppable. that's why the world's largest companies and over 30 million people rely on prudential's retirement and workplace benefits. who's your rock?

let's talk about verizon. stop looks like it will open down. after we heard from at&t

investors reacted to the shortfall and free cash flow estimates from that company. the verizon focus is not so much on the working capital issues that at&t seemed to have and what affected the free cash flow. this is eight subscribers store in came in well below what was anticipated. in the consumer fun especially representing 75% of the revenue. consumer postpaid phone they lost 215,000. they added 230,000 internet subs but that is a big loss. to put that in perspective at&t added more than 800,000 subs but on the free tax flow side they were spending more on device payments. not collecting as quickly from certain consumers as well. they came in below test look guidance. here it is a big cut in the

eps. that is 5.45 and wireless growth lowering from number nine to 10 now. the ceo said we are determined to improve our operation in the performance for the second half of the year. we are being deliver in our decisions improve our profitable growth opportunities today and into the future's. not as many downgrades as snap.but certainly a bit of a surprise. particularly when it comes to that many. they were expected to add 125,000 but instead lost. >> it explains why the freight cash flow was a problem, the main rival, and why they saw fewer subs than they expected in the quarter. they work competing with discounts from the rivals.

they kind of held steady so maybe profitability was a little bit better but when you look at the subscriber numbers not strong. >> that is a great point. competition is only expected to intensify. if in fact we have more pressure on the consumer we will see with that means as well. the call is going on right now so we will share more details as we get them. keep an eye on shares for verizon. at&t already down sharply yesterday and poised it seems to add to the losses a bit today on this number. we have not heard from t-mobile yet. >> exactly. of course at&t aspect about consumers late paying the bills. that is an indication or one of the few indications on the economy so far in earnings that consumers are feeling the pinch of inflation. that is resulting in the behavior as it pertains to their ability to pay for things that are nondiscretionary like the phone bill. >> the phone is one of the most

important things are if not the most single important bill you pay every month, you are right. it is a mixed picture. american express numbers are quite strong. i have not seen where the stock is anticipated to open but there seems to be a division between the lower end being under more pressure and the mid to high, quite strong in terms of consumer and consumer spend right now. the ability to office to keep up with all of the bills. amazon associated with those that want to spend more on luxury travel, dining and restaurants. those were big things during the quarter but demographically they saw baby boomers boosting their spending in the quarter and even those more hesitant over the last year or so going out as well as millennials and genx of 48% during the quarter. people are spending if they have the means to do so.

it is those spending on things like gasoline and phone bills that could be starting to struggle a bit more. >> amex cardmember spending up 30% from a year ago, adjusting for fx. they say it is travel and entertainment and people want to travel back cashing in on their points to increase spending about 32% so you take the good with the bad. >> you got it right. if you have not traveled in two years and spending money on other things you have a lot of points to use. our programming note, cnbc special all about politics and we include our report on inflation. the way of the men terms and how could that impact your portfolio. we have are economic advisors and various this is leaders. he sure detained and be sure to tune in tonight. we have more squawk on the

street when we return. as a main street bank, pnc has helped over 7 million kids develop their passion for learning through our grow up great initiative.

and now, we're providing billions of dollars for affordable home lending programs... as part of 88 billion to support underserved communities... including loans for small businesses in low and moderate income areas. so everyone has a chance to move forward financially. pnc bank: see how we can make a difference for you.

we can take a look at the life of snap and it is not pretty. it is not pretty unless you are a seller quite some time ago. obviously great beneficiary during the pandemic as so many other companies were, but suffering lately from a significant sldo iowwnn advertising. that is probably why it is collapsing today. we have more on the opening bell. stay with us.

let's take a look at the shares of paramount today. we have downgrade from moffetnathanson. they downgraded to underperform. they were supposed to bounce back last week but it's hard to

keep track. obviously they have done better than some of the competitors in terms of attracting and keeping new subscribers to paramount+. they are concerned and anyone with young children knows after hearing this question over and over again, are we there yet. they believe that the investors are feeling something similar with the timing and chase of a slowdown. it goes back to the same thing we have been talking about this morning in terms of an overall slowdown and what it means for advertising. it's not so much about the threat to consumer as it is about they have networks. >> paramount at least the streaming platform still has ads. they do note the difference though between the stickiness of the streaming ads, linear ads versus of course digital advertising. that is a bit more malleable in terms of turning things on and off to the various economic

conditions. upfront commitments take place with the big broadcast networks that are a little bit harder and much more lagging in terms of ability to respond to various not so economic concerns out there. that will provide some support for this spot perhaps. you can see it is still reacting negative. >> that have the $18 price target. they maintain a market performance rating and other coverage universe but $18 obviously is the new price target. i am trying to look to how they get to that number but i don't have time to look deeper into that for everybody. a lot of what we are talking about going to the broader market. strength this week but questions about the low in consumer and how much it will be creeping up. at&t yesterday front and center for many people. you wonder how the banks are fairing on that front and will they pull back in anyway. consumer card data looks pretty

good. amazon, looks to be the same as visa and mastercard. >> every single bank has supported and touted the strength of the consumer. but they talk about the issues they see on the horizon. that is emblematic of what we are seeing with every single report oming out since then. it looks good if you have the exposure but it is the futures. here we are with the opening bell today. let's see how we end up. international fighting global insecurity. nasdaq video analytics providing technology. we have a few listings. there are so many that have not got their deals done. >> there are still like 600 partners. >> just that many. >> we have a couple.

>> nothing to worry about. that market has obviously dipped pretty dramatically. there was a nice chart yesterday that someone tweeted that showed kind of the full circle of the stock market. we are literally back at 2019 levels when you look at it. it is across the country. >> we will do the animation and why not because i love that sound. we may even give you the indexes well. we both reported on this story. of course the boom time as well. it is interesting. this is i think the third company that went public this week. some are getting to the finish line. that is the only index you say okay, that spat has not yet actually announced the deal. they are sitting there and issued a 10 but hanging in there. everything else is a disaster. after you announce a deal and then we track you after you close the deal. that is where you announce the

deal, and then you post back. >> you have not actually closed it and then you close it at 41% basically if you held on. that is $0.41 for every dollar you put in. >> there have been some stocks going public recently. we have not seen any of those. or the feedback. >> no. >> at least someone is getting it somehow, i guess. >> i guess and it showed up the bank earnings you covered so closely for is under this week. >> down about 85% or 90% during that quarter. there is nothing. >> you still have some big companies waiting. you have the private market as well. we talked about this a few days ago but i guess instacart keeps getting lower valuation. one of the biggest names out there and you can go through these instacart or pick your company. strife with significant value reduction. sometimes it is a

marked and sometimes it is actually them raising money at lower valuation. >> there is a difference between the down round and the 409 appraisals which is what we see with instacart and strife. these two place after that debacle. they want to make sure companies were not issuing options for evaluation. they want to make sure there is a process to get the outside appraisals to determine what the stock prices should be worth which is a combination of comparables and projection for future cash flows. you know most of these private companies have zero capital so the projections are somewhat just by the nature. getting the lower valuation up are not appraisal is not necessarily the worst thing ever because they are still recruiting. here are options we have at lower valuation. we expect to public when the full economy improves at a higher valuation and that will

make you rich. >> that's a good point at least in some ways where you track it down with the inflection point or we are at a low. back to the public market. we talked about snap for the first half-hour but let's take a look at how the stocks are performing with the s&p game over all. of course among them will also talked about a very strong quarter reflective of strong consumers and willingness for people to travel. here is the loser no doubt. having also apply pressure on palmetto down 5% and far larger market caps in both of those names. 5% or more loss at meta platforms is not a significant amount of money. >> $80 million total and loss. the yields of that report, but

we have to question and you brought it up earlier the idea of competition. you have tiktok, and other new players such as netflix kind of getting more into the advertising market. when the high is shrinking in the pie, that issue versus the overall industry slowdown. obviously there is some macroeconomic pressure but how much is that snap specific given where they are among their peers versus industrywide ? we will get a sense next wee . >> what do we get next week? >> amazon. it is the big a's. i am on vacation. >> it is a long vacation. >> i'm focused on long naps in the sun. overall and has been a very good week and in particular for technology names.

we have seen the actual positive response and yesterday tesla shares up dramatically. following through ever so slightly today with a bit of what we would call a half % increase. today is one of the better weeks we've seen for the nasdaq and particularly there seems to be some willingness in the circle. brent earlier seem to disagree that the willingness to come off the sidelines but there appears to be some names we know well. >> when you look at the next week, and prospects for any kind of commentary with regard to higher rates, and what that is done for tech stocks so far. not surprising but clearly the market is so focused on earnings right now and what they're getting from commentary, management, and harry commentary. with the prospect means for them but

that's not what they're trading on. i will show you the report from friday. this is sanderson farms, chicken and stuff like that. this deal announced almost a year ago is closing right now and they will be gone. it will be removed and we will not see it anymore because the deal has closed. the deal is closing because they actually got through the doj. that is one of the more interesting components of the deal but a couple of other things i want to get to as well, including the performance of the stock. look what was but don't overlook the fact they were able to reach a deal with the department of justice over the antitrust potential objections. they were giving successions and stock actually starting to come down. it shows at least to some extent from the people i'm speaking to that there is a willingness on part of the doj to work with some companies to just oppose a deal. it appears

to be early on that is the case. the argument was that actually we will be better for consumers in terms of obviously a very inflationary environment. better on prices together and we would apart. they are getting the deal done. what is interesting about this deal, take a look at the price that 2.03 and announced again almost a full year ago. since then the chicken business has gone crazy. that is in a good way at least if you raise chickens. we all know about food inflation. it sells here as well with chicken prices. i was asking for the chicken video and thank you. we see these guys walking around which is good. they do look a little more free range which is nice to see. chicken pricing has gone crazy and sanderson farms is follow. for the deal they had about two and $45 million cash on the balance sheet.

with $245 million cash on the balance sheet they have another $584 million added to that in excess cash at the end of april. since then we can imagine they have added even more, hundreds of millions. the point is if the deal was opposed by the doj that shareholders would've been happy. the stock would have traded far higher because business is so good. yes they do stick with cyclical business but a huge amount of cash that now will be continental grain and potentially dividends to shareholders. that could've been some $40 per share and the stock on the base of work ebita was expected to

be. it's a very rare case that a deal is closing at a price far below where the stock would have traded otherwise. >> exactly. usually it is opposite and buyers remorse. people would be chicken and try to get out of the deal but this one i want the chickens to state in the deal. >> one would imagine the high profitability of the business gave a lot of flexibility in terms with the doj in terms of making concessions as well. >> the doj did not oppose that combining would be better for consumers. usually it sets the precedent that commodity would raise prices by combining. >> we talk so often about the opposition of the sec and doj a potential transaction but in this case they were able to come to an agreement. >> that is an interesting story. >> the bottom market aiming for the fourth consecutive day of gains but a strong week for the broader indexes. we have are chief investment

strategist and thank you very much for being here. obviously this is nice to kind of close out the week on a relative high note here. is this indicative to you of what is to come or is this simply a bear market rally? >> i think it is definitely a rebound and a sigh of relief. there saying it is almost done. there are signs of weakening and slowing. we can look forward on this an area to see the fed get ready to start heightening or maybe even easing in the beginning of 2023. we see a big rebound with scores of 8% from the lows in june, nasdaq up 12%. interest rates up substantially with treasury up 3.3% and now below 3%. i think the market will flop around hoping for things to move up. i think we are in a trading range. >> jim, do you think there was

some data out this morning showing that market activity has not yet caught up with some of the bearish sentiments from investors and consumers that they are reporting. that the risk is not reflecting that yet. you agree with that or do you think the environment is that the price point at this point? >> i agree with a lot of what margie just said. i think the sentiment is really thoroughly washed out. the bear market has been six months in the making. the nervous nellie's had ample opportunity to get out of the market and sell out but i think much of the selling is done and i think now it's more of a matter of where the buying will show up. i think there are a lot of buying access access on the sidelines that could come back in if people are convinced like margie said that it is the beginning of a new rally. i don't know.

i don't agree with that. i think that prices are washed out and that evaluation's are much improved. sentiment has really soured a lot of people waiting around for the second leg of the bear. i agree with margie that the feds will probably do one more rate hike to 2.5. it puts us in the same zip code with yield market that 3%. i think they will be done at that and i think this could be the last rate hike. if the market continues to pick that up as more people believe that the fed is done, we will leave it with a positive if sloped yield curve. inflationary fears will ease up somewhat and i think we have a decent rally in the second half. >> you mean you think that people believe the fed is done raising interest rates? >> they don't right now. i am saying that i think that to the point of margie, inflation to me is clearly rolling over from commodity to corn inflation rates to wages

inflation. i think inflation environment telling the fed it's time to tighten up the cycle. real growth considerably as you guys event talking about. telling the fed it's time to tighten this yield up. it is telling the fed they are comfortable now with rates and don't need to raise them a lot more. breakeven rate, the one year breakeven rates going from 6.5% at the end of march to 3.5% today. it will be back close to the 2% that target by september. so i can see the fed doing 75 here in the july meeting. but by september i think the case for further tightening will be gone. that is my view. >> margie, you believe the economy is rolling over at this point? if so, what tools does the fed really have to ease from here? there's so much blame going

around with regard to how responsible or not responsible for the situation on the inflation we are in right now. they probably will not be too quick to do any of that anytime soon? >> it is in a box because inflation could stay here. clearly the economy and global economy is rolling over. all over the world the central banks are tapped out. they borrowed so much money to spend for covid they don't really have enough money left now to stimulate the economy. you have inflation and cost of fuel and so forth. so they really don't have a lot of maneuverability. they may well slowdown on the rate hike but i'm not sure that the rate will stall. inflation could continue to be high. i think we will see the market toward more of the zero interest rate market and growth the stocks blowing up in the last year due to the huge draw over the last 3.5 your decade.

investors and companies more steady growth and capital. we have seen on social media, more ordinary customer in his technology i think will do fine. >> perhaps a little bit of a chugging along with regard to economic growth and corporate earnings regardless of what we see with inflation picture. thank you both very much. have a nice weekend. cmi data it just hit the table so let's get over to rick for that. >> these are really weak numbers and preliminary pmi manufacturing. 52.3, the lightest since july 2020. in terms of the services, the larger swath of the united states economy, 47.8. we are looking for numbers consistent with the last month

at 62.7, the weakest since may 2020. finally, the composition of all of the pmi's, 47.5, also the weakest since may 2020. these are not good numbers. they are preliminary but in a couple which they could change. they do give us insight as to gog wnmae terest rate yb indo. tenure down 10 basis point on the day, down 14 basis point on the week. squawk on the street will return after a short break. sg and savings. get 1.50% interest, and earn up to $300 when you set up direct deposit. sofi get your money right.

your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

it is time for the bond report let's give you a quick look at how treasuries are faring this morning. you can see yields down across the board, and that two-year, ten-year still well above in terms of yield we'll be right back. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network.

that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

dad! a dinosaur! it's just a movie. at&t 5g is fast, no dad, a real dinosaur! show doorbell camera. the new xfinity video doorbell works with your xfinity home system for real time alerts no matter

what's at the door. get off the car... it's a lease! jurassic world dominion, available now on xfinity. rule your home security with xfinity home. oil prices are up, remaining volatile the latest, joining us to discuss is citi's ed morris. always good to check in with you, which we've been doing somewhat regularly what should people be aware of obviously the key market being oil around the world >> i think two of the interesting things happening this week, even with the price bumping around as it has been,

is that spreads are coming in, the backwardation of the market, the signal that the market is very tight, you now showing signs of looseness this is something to watch the cracks of the profitable, gasoline and diesel are coming in, another sign we may see some loosening of the market. what that's reflecting is where the summer has been to date when it comes to driving season we're seeing virtually no driving. gasoline demand is way down, a combination of high prices and an economic slowdown. >> so interesting. we've had that demand destruction that we all talked about was a possibility, i guess. what are your expectations from here >> well, we think we'll continue with that, because the economy is showing signs of weakness it's intriguing on the demand,

it's lower than any year going back ten years, except, of course, the 2020 pandemic year year on year, it's down for the last three weeks that's a sign that nobody really was anticipating it's a combination i think of where high prices are. it's also an indication that inflation might be coming down we're seeing signs of that on wheat, soybeans, corn, are all slowly going down. gasoline prices have been down for like a month straight. that's good for the consumer in the longer run, for sure. >> ed, i know you moonlight as a part-time meteorologist, or you have to because of your job. what is the impact of the hot weather or hurricane season, which is quickly approaching. >> you're going into where we have to go while we are seeing a slowdown in demand, we're seeing

horrendous weather conditions. the hottest weather in the northern hemisphere ever -- including china, and in europe look at london, you know, 38 degrees centigrade weather we're seeing a hot, dry weather that's bringing electricity up everywhere we're seeing blackouts every in the world you can look, and these are not going to end any time soon, given the expectations for hot weather, particularly west of the mississippi for the remainder of the summer as you mentioned, there's a hurricane season it's the real wild card on the pricing side we normally don't have a third named storm until august 3rd we had the third named storm in the month of june. we've had the ninth named storm already. so we've been kind of relatively free in the caribbean and the gulf coast of the u.s. and east coast of the u.s. so far, but with the prediction of 24 named

storms, three to six category 3 or higher hurricanes in the forecast, we have to watch out this could bring down u.s. production in the gulf of mexico it could bring down the refining system in the u.s. gulf. it is the wild card that we have to look at >> ed, always good to check in we appreciate it thank you. >> thanks for having me again. when we come back, more reaction to the results from snap of course, it isn't good you can take a look at that right there. jim cramer, well, he'll be back monday morning

good friday morning. welcome to another hour of "squawk on the street. i'm david faber, with leslie picker we're live at post 9 at the new york stock exchange. nasdaq, you know, has been clawing its way back we are now

toward the lows of the session leslie >> it seems to be falling the trajectory of the other index fears. they're are three other big movers, starting with american express, rallying after beating on the top and bottom lines. card members registered record spending, driven by a rebound of travel and entertainment mattel with strong sales of movie-themed toys. however, sales of the american girl brandy threat nearly 20% in the quarter, leading to a stock slip verizon looking similar, falling off earnings fell short of estimates and the company cut its full-year forecast verizon is seeing is the subsciencer growth impacted by higher prices. we'll have more later in this

hour, so stay with us. first, we'll get to companies seeing significant slowdowns in their ad sales. they are snap and twitter. let's get to julia boorstin for more julia? >> yeah, those two companies painting a grim picture of the digital al land landscape. twitter reporting disappointing results, blaming ad, as well as uncertainty related to the pending acquisition by elon musk, citing the musk deal the reason why the company is not giving any guidance or hosting a conference call. the company reporting an eight-cent loss, while risen in the quarter decreased 1% from the year earlier which makes this the biggest

revenue miss that twitter han ever reported. which we believe favors larger scale in direct-response platforms. snap meanwhile, that stock plummeting you eshare you now down 35% after the company also reported disappointing advertising, missing on the top and bottom line, with 13% revenue growth in the second quarter, and the biggest disappointment of all? so far in the third quarter, the company says revenue growth is flat with the year-ago period, a sharp contrast to the 18% growth that analysts were forecasting for q3 ceo evan spiegel blaming the short-day-old fall for policy changes, namely apple, and growing competition for what he sees as a shrinking pool of ad dollars. he says substantially reducing

hiring and reprioritizing goals across the company now the question is how much these are bellwethers for the rest of the ad-supported platforms. alphabet on tuesday, and pinterest on august 1st, all of those are trading lower this morning. leslie >> those are very key questions. thank you. we know you will be all over there on "techcheck" today for now, let's bring in justin patterson, one of over a dozen analysts downgrading that stock this morning, now with a sector weight rating. what changed what did the quarter that told you that made you say, you can't do it here >> really the thesis is broken on this one. it's a share gain story, but attract more budgets from advertisers due to the measurement of -- being very

effective. what's really happened here is that snap has had difficulties around these platform changes. it's frankly been a beta play on just ad budgets increasing, as we've seen ad budgets really start to, you now -- it's losing share in more effective channels so when we look at the growth profile going forward, it's probably 20% at best, it's difficult to justify staying with this one. >> so given all of the factors that evan spiegel blamed, that julia just outlined -- macro economic, privacy changes for apple that cut into the way they're able to collect advertisers, the competition, the shrinking pie among advertising dollars that they're experiencing right now, what is it that snap can actually do to turn this business around, given

those factors, at least from the face of it, seem largely out of their control. >> yeah, it's a great question if you look at just ad agency results, the other day they were fairly reasonable. snap is growing below ad agencies, which you don't expect for a secular growth business like this one was supposed to be it's a function of both r&d and sales and marketing investment, which paints the picture of the challenge that snap faces. it needs to deal with a slower revenue growth, but it could cut too deep so really the company is between a rock and a hard place from our perspective here >> justin, i'm just looking at your three-year rating and price target history you've had this as an overweight as low as $29, as high as $88 or $89. you finally downgraded that today.

why not just stick with it, given you've been high and low on this thing and had the same rating for a long time >> that's a fair question. i'm certainly not alone with that this morning. really the thought here was snap had done a good job on the measurement side, was dealing with competition effectively, and results last night changed that you're seeing snap now specifically call out competition when agencies are devoting more budget to the tiktok at the same time. the collection is in a lot of our minds right now that snap is growing basically zero into the july period. how much work could it get recall this one at the on defend september of covid was still growing in the teens in that april time frame this is a worse result than when the world crawled to a halt back in april 2020. there's a lot of questions on

what this looks like going forward, and it's difficult to justify staying with this. you would have to argue for multiple expansion, and that's something i don't have confidence in. >> you mentioned competition and tiktok obviously we don't have as much visibility there bytedance is a private company what is your sense of the ability to take share, i guess >> that's a good question. if you look at most ad agencies, we've generally heard a lot of agencies talking about shifting budget levels from about 5% of digital spend, sometimes as high as 20% that does take away from the pool of dollars that's available for snap it reinforces the spotlight product, the tiktok competitor, is very late to the market, and it paints a picture that it's

different to gain some of that back the other issue is, past tiktok, left a lot of market with the impression, so ad supply increases, that dampens the price anrer is willing to pay. if you look at china, the byte dance effect was an 18-month to two-year headwind, and now digesting if the same phenomenon is occurring at snap here. >> what do you think of the prospect for consolidation snap has three classes of shares, so it's not something that would be a hostile situation, per se, but given the overall challenges, do you see any possibility of certain tie-ups taking place, or is antitrust something that would prevent that altogether? >> that's a great question,

especially with elliott coming in on pinterest and the ongoing drama with twitter and elon musk to your point, the share structure is a challenge, the bulk of voting control is concentrated in the two founders generally speaking, it's rare of a founder to give up on a business when they are still anchors on last year's prices and investor sponsorship between the ownership structure and antitrust concerns, no large tech company can really buy this asset. i don't think m&a is a possibility or activism. i think you'll see more internet scrutiny, from activists the covid tailwinds have clearly faded out. there's a lot of capital allocation questions, are expense structures appropriately managed. >> yeah, they gave them a pass

for a while when the stock prices were doing well now they're going to be more critical it all makes sense thank you, justin. >> thank you. well, president biden, as many already know, testing positive for covid as the omicron variant continue to say drive a summer surge the president was said to have very mild symptoms kayla tausche has more for us. >> david, the white house covid coordinator, dr. ashish jha said within a week we should know what variant the president has, and whether it's the new variant which represents about 70% of the cases in the u.s the doctor says the president feels fine and he's being closely monitored to make sure any symptoms don't become more severe. >> he has a personal physician

checking in on him with regular vital signs, as one would get. his personal physician is also consulting with infectious disease experts around the country. >> reporter: the white house continues to convey the president is healthy and working. this morning his official twitter account posting this photo of sign ago bill into law yesterday that suspension tariffs on baby formula to try to alleviate that continued shortage the white house las -- has not been able to pinpoint where the president got the virus. chief the staff ron klain considered a close contact of the president's, said west wing staffers are testing regularly to try to contain any spread >> so far we're monitoring the close contacts to see if any test positive. we'll see particularly at the white house what the test

results are tomorrow so far we don't have any positive results that are linked to the president's case. >> the president plans to meet virtually with the economic team to discuss inflation and with top advisers to discusses any progress of moving the agenda forward on capitol hill. david? >> thank you, kayla. as we head to a quick break, a road map for what remains of this hour, verizon had a business miss on subscribers we'll get to more of those results. and affordable energy is coming to an end we'll explain. and the ceo of freeport mcmoran. t seeuaead for you on "sqwk onhetrt. don't go anywhere. quadrupled om and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates.

i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com try it for free at ziprecruiter.com

welcome back, ticker iyz, down 20% since the beginning of the year two key holdings under pressure. verizon also moving lower on that company's earnings results out this morning sharing droves on those weaker than expected results, the company cutting the full-year forecast as well as higher

prices weigh on phone subscriber growth cash flow for at&t, neither picture looks that pretty. >> no, yesterday shares were down sharply after over 800,000 additions, but there were worries about the cut and free cash flow guidance they went to $14 billion with an expectation of about $10 billion. they cited a couple different reasons, one more devices going out of the stores. that means more subsidies potential. and then as well people paying their bills a little later that was a working capital question as well fewer than 15,000 subscribers, close what we watch.

and then obviously the cut in the eps outlook for verizon and the revenue outlooks as a result of that. to your point, price hikes might offset subscriber pressure, at least when it came to earnings, but they thought there would be a chance to increase, in fact they lowered guidance, suggesting the pressures are likely to continue. >> both in recent years have disposed of the advertising exposure, right? with a sale from at&t to discover of the media assets verizon sold its media assets to apollo >> yeah. >> so all of the advertising concerns we've heard this morning, not necessarily the case with these two companies. >> no. >> it looks more like a commodity in that sense, in that consumers are having a hard time either paying their bills on time in the case of at&t, or signing up for vising without those discounts. >> i would note shares of t

mobile are up. we'll hear from that company next week. it has sometimes been an outlier when it comes to the big two, and t mobile managing to put up numbers on both subscriber growth and eps than had been better than anticipated. that stock now the lone outperformer of the group. i should say the lone stock of the big three in positive territory for the year, up over 15%. at&t, by the way, is about flat for the year all right. when we come back, we'll have the ceo of mining giant free fort e port-mcmoran they have a eagrt look at the global economy as well we're back in a moment this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep,

so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

- [narrator] it's a mixed up world. and the way we work looks a little different. but whether you embrace the new normal or just want to get back to the routines that feel right, elemax combines gentle body temperature regulation with stress melting massage to increase your comfort working from home or at the office. feel more refreshed in seconds with dual fans that actively deliver a clean air flow or you can wrap your back in the soothing warmth of heat therapy and access four combinations of massage for deep relief from tension. our patented dynamic variable lumbar support

and scifloat infinite recline technology remain unchanged. order an x-chair with elemax today. use code tv and get $50 off plus a free foot rest. hey, change happened and we've made it a good thing with all new elemax from x-chair. now the future feels better than ever before. order x-chair with elemax today. use code tv and get $50 off plus a free foot rest. s. copper prices rebounding a bit. the drop in prices hit shares of

free port mcmoran, saying while it was a sudden and unexpected decline, there's been no impact on physical demand joining us is richard acer son, president and ceo of freeport-mcmoran this is a weird environment that seemed to come through on the call this dramatic, and what how do you do your long-term planning >> first of all, we have to live the short run this is the third decline we've had in the last 15 years. there's been rapid recoveries in each of the prior three, and we managed on you way through it. what is different this time is a huge disconnect between the

physical market and the financial market people are expecting things to get worse. in our business, they haven't yet. our day-to-day business is the same now at today's copper price, when prices were approaching $5 if things get worse, then this price will be justified. if the future is better than as anticipated, watch out, because the market is really tight. >> interesting you want on the call's well, listen, the way this things is priced, it looks like future demand will drop off a cliff no way to know you've come on many times and

talked about the using for co copper give mea user guess that demand whether demand will drop out of. all these years, i've disciplined myself to not make guess it is. we work on scenarios we have a plan on place to deal with the sonar yor of near-term price weakness we have a plan if things are better i just don't guess i don't allow myself to. quite frankly, i don't want our people guessing. we need to know what we're doing, and we do that said, you have slowed capital spending

>> yes, that stress testing we do is to deals with capital spending our projects are flexible. they're not going away the next step is to adjust operations to drive costs down our net costs of copper was $1.41 as we predicted. it was a strong quarter. some of this had to do with analysts not taking into account copper prices as quickly as they should listen, it's a big deal for our company, to have to face a drop in revenues, and the drop in cash flows when the pricegoes from $5. today is $3.30, but it was lower. i remember, and i know you remember going through a period that was a lot more difficult

when it came to your balance sheet. on that front, do you need to raise any capital in this current environment? >> no, no. our net debt, $600 million of that is for the smelter in indo indonesia. we set up a targeted debt with $3 to $4 million now it's $1 billion. that's a major change. there's a lot of history, some of it was unfortunate, but this time we go into this with a real strong financial situation that avoids us from selling equity. we can manage this i'm more confident about the long-term future than when we

talked three months ac >> right it was said copper demand will grow to 50 million tons by 2035. he says that in his opinion that will be sustained at that level, power and automotive applications have to be deployed at scale by 2035 do you still believe that to be the case as well >> dan, i have a lot of great respect for. dan -- that is based on the world moving towards its goals for carbon reduction so is the questions about the movement -- bow, there are a lot more questions than answers, but we're committed to it, and businesses and civil society is committed to it. to get there, you just have to have more copper

it's electrification the supplies just simply aren't there. there's no line of sight as to how supply can meet that demand in that time period. so what that means is there's got to be scrap recoveries, there's got ton conservation there's got to be substitution some mine development or expansion. that takes years to do all of that, if those goals are met and if the world does that fought off an absolute cliff higher copper price is inevitable you cannot define that scenario without saying what dan said, that there's going to be a significant deficit in the ca copper markets

that's why with all going around us, we're even more firmly committed to the long-term strategy of being the world's foremost copper company. what's happening the last month is even bolstering the long-term future that means less investments. >> understood. richard, last year china accounted for, what, more than half of global retine consumption. what is going on in china. can you figure it out? >> i spend every day talking to people there was an effect and demand on supply chain issues that is offset by supply problems in latin americas i've been ceo since 2003 during all that period, there's always been consistent

predictions of china's demise. while there are obvious issues they face, the country is large, hard-working people, and they're critical to the world's economy. they've made some commitments to recover. there's good signs coming out right now. there's no copper inventories that i can find their built up in china there's no unusual commodity trading going on in china. we're selling all the copper we produce globally i said yesterday our day-to-day world doesn't feel different than when it was $5. that's unusual. >> you too, david. enjoy your vacation. speaking of vacation, a look at the s&p gainers, as we close out e thweek

more "squawk on the street" ahead. don't go anywhere.

good morning welcome back to "squawk on the street." i'm baera coombs with your cnbc news update. lee zeldin was attacked by a man wielding a sharp object at a campaign event near rochester, new york he was not injured no other injuries were reported. the 43-year-old suspect was charged with attempted assault, a felony, before being relees. a gun safety bills amid gun controls among the eight laws signed in is a ten-year ban on gun possession and convenience store chain 7-eleven cutting nearly 900 corporate jobs, coming one year

after it accompanied speedway for $21 billion. the company has recently come under pressure for the performance from the san francisco-based company value act capital. david, back over to you. >> thank you, bertha. let's get over to bob pisani and see what's going on? >> flattish sort of middle of the morning, but great week. you have to watch the growthier sectors of the market, so take a look today cathie wood's ark fun has been doing terrific lately tesla is great the home building stocks are doing well again, they're back, and energy is holding up with a great start. look at the earnings this week hca, excellent numbers, amex had offthe chart great numbers, tesla did, still strong, even dr

horton, that shushed a warning about slower demand, those stocks have been rallying, too, we're about 20% through the earnings season. about 100 companies have reported revenues are up. these are good revenue numbers, almost 11% the earnings still in line with expectations, so a big difference between revenues and earnings that's a bit of margin pressure. here's the important thing the average stock after the earnings have come out is up 0.6% i know you hear about some big misses, of course, out there, but the average stock is trading up after its earnings report one of the reasons is just generally a change in narrative. a monday ago, everyone was dire, the world was going to fall apart. bulls are regaining control. mid june everyone was talking about a severe recession is coming, and there's going to be high inflation now it's a little different.

the word this week is mild recession. this is why we are seeing such good moves on the part of tech stocks that amex report today, my heavens, that will support this whole narrative about a slowdown, the amex numbers were off the chart, record revenues, record card member spend, 30% move in revenues that's a lot we knew this was going to be good, but not this good. amex at a new 52-week low two weeks ago. it's up 20% since then, because people who know this, know we're spending like crazy. so what the story here is, growth is kind of back, and i've been pointing this out all week. they keep nibbles on these growth stocks. cathie wood's ark fund is up 30% since the bottom five weeks ago.

consumer discretionary, tech, these are all growthier parts doing well energy is down a bit, but it's rallied a bit this week. the bulls keep screaming, stop with the earnings apocalypse story, because technologyhad a big downturn they do have a point from peak to trough, from january to mid june, 31% their argument, that's enough to justify, you know, looking at whether or not there's a bottom. s&p only dropped 24% leslie and david, it's not clear whether this is actually the bottom, but a lot of these names actually did had a pretty severe downturn guys, back to you. >> and then of course next week we get meta, alphabet, microsoft, so it will be the next big tell for those tech stocks. let's bring in david bait lynn, and ernesto ramos.

thank you both for being here. david, let's start with you. given the back drop that bob pointed out, things are starting to look up, growth is starting to work again. is this a temporary phenomenon, or just back to 2020, 2021 again? >> it's way too early to say this is back to prior to the pandemic i think we have a lot of noise ahead of us, rates are going to stay high for a little while that's why we like or clients moving into bonds. what we're seeing a meaningful bounce off the bottom. once we know interest rates have peaked, i think it will be possible for us to dive back into growth in a serious way, but i think it's far too early not to take seriously the fact for the next six months we'll see a slowing consumer and growth rates across the world from china to europe to the u.s. actually slow down before we actually know whether or not we're going to have a full-blown

recession, even a mild one i think focusing on earnings right now saying this is what earnings will be inyour right now saying this is what earnings will be inyoes to the fact there would be margin pressure over the next six months. >> ernesto, what do you think? do you think the market is accurately reflecting what is it happening on the ground and what's expected? to david's point, we're looking at largely a 75 basis-point increase next week it seems like it wouldn't bode well for companies that are super profitable >> you're absolutely right the market is not focused on what's going on happen tomorrow or even in the next three months president market already nose that today's earnings are not what the mark is looking at it's looking through the downturn in our own research, we're

estimating there's a decent probability we're at an inflection point, because the market is able to look through the biggest risk is that we have a very strong recession, a pronounced recession, as opposed to a mild recession. if its a mild recession, the market is certainly looking through that and anticipating a recovery we're positions or portfolios away from defensive and value, which worked well for us the last couple years, and nibbling at higher growth, but making sure it's growth at a reasonable -- because we think the market is ready to move in a if you direction, and investments are what's driving our positioning today. >> just to follow up on that, ernesto, do you think a soft landing is off the table. >> well, when you're at levels

of growth like we were last year, we're going to have a meaningful deceleration of growth, whether we enter into a recession or not is for a bunch of people at the national central for research, we're actually in a recession technically. we'll have satisfied two quarters in a row for a technical recession, but it's irrelevant, whether it's technical or actual. the question is how much of on contraction are we going to get? i think the difference is relatively benign, as opposed to a deep recession like in 2020, or even 2008 i don't think we'll get to that level of recession, but it could happen the fed may commit a policy error. that's one of the concerns we have, although there's some focus on the data, we think they may be able to navigate to call

it a softish/mild recession type of scenario. >> david, you said bonds are back why? >> bonds are back, because if we have a slowdown or recession, we could be at or near peak interest rates if you buy a ten-year, you know, corporate bond with a 5% or 5.25% handle, those will look like terrific rates a year from now. i just want to points out now, if we think about what's going to happen, the market has not priced in a 10% to 20% odecline right now. under a recessionary scenario, markets tip dale look about six months out, so i think markets were taking an optimistic view it is absolutely possible we'll have a mild recession or really no recession, just extremely

meek growth. but i think there is a considerable debate for that to come. >> it steam like a big question mark david, ernesto, thank you both have a nice weekend. >> thank you very much >> thank you. courtney reagan joins us now. some of this has to do with spending on your home. i feel like i'm definitely guilty of that lately. >> you and me both, les, and i'm still waiting for some of the furniture, but apparently i'm willing to do that there's a lot of discussion about whether the housing market itself is cool off, but investing in furnishings and home depour, it's really as hot as ever. the xhb is up more than 13% in july, well outpacing the s&p 500, but retail-related home stocks are even stronger even as morgan stanley forecasts

slowing revenue growth there 2025 sales were among the strongest categories in june from the month of may, up 1.4%, according to the latest report from the government williams sonoma shares are up 27% so far this month. that's the parent of pottery barn, west elm, and others it logged a report quarter, reiterated the forecast for the balance of the year. rh actually slashed its forecast for the year, citing higher interest rates, lower luxury home sales, and continued fed tightening, but shares are up 30% month to day despite that op warning. bank of m. says the website traffic continue to say grow well ahead of competitors, 22% in the first 11 days of july

more volatile players both in the symptom performance are getting a bit of a bullish bid in july. look at waypair, up 30%, still down -- bet bath and beyond shares are up 16%. that's a company that has struggled mightily with its turnaround under its ceo, that is out, by the way, as of the end of june. david? >> courtney, thank you. coming up decades we'll tell you in what sector that is happening. plus instacart, slashing its valuation the second time in four months. we will discus quk t see is back after this

[zoom call] ...pivot... work bye. vacation hi! book with priceline. 'cause when you save more, you can “no way!” more. no wayyyy. no waaayyy! no way! [phone ringing]

hm. no way! no way! priceline. every trip is a big deal. our clients come to us with complicated situations that occur in their lives. for them it's the biggest milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪ i am vince lumia, head of field management at morgan stanley. whether that's retirement, paying for their children's college education, or their son or daughter getting married, our financial advisors need to make sure that they are making objective decisions, every step along the way. every time you hit a milestone, an anniversary, a life event, the emotions will run high. making sure that you have somebody, a team of individuals that have seen it before, have seen every circumstance and seen every challenge, and have your back when you need it most, is one of the most valuable things a financial advisor could provide to a family.

i had no idea it was that easy to diversify my portfolio! ♪♪ go to investor.gov today to learn about diversification and other valuable investment information. before you invest, investor.gov. our pippa stevens has the

story for you. >> hey, david. energy prices are surging across the board, which is a major contributor to the decades-high inflation we're seeing fuel switching is not an option since all are elevated decades of uninterrupted and affordable energy have come to an end this year, worldwide spending on energy consumption set to top $10 trillion for the first time on a record according to the iea. that's equivalent to 10% of gdp. russia's war is the latest catalyst and prices were rising ahead of the invasion thanks to years of underinvestment not enough was spent to meet existing fossil fuel demand or to move the world to renewables. ultimately securing energy supplies is a multi-decade challenge with barclays saying $150 trillion would be required. meantime, clean energy spending set to hit a record this year.

prices remain high and volatile the better the case for renewables looking forward, some say there needs to be an all of the poof approach companies are spending around renewables including clearway energy and aes leslie, back to you. >> pippa, thank you so much. continuing to watch social stocks, the big headline of the morning and snap tumbling and twitter moving lower as results from both surprised the street you can see snap down more than 36%. almost 37% tech check will dig into the ag-supported impact at 11:00 a.m. eastern we'll be right back. don't go anywhere.

the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

>> welcome back. american express dom chu is taking a look at that dom? >> leslie, on a day with markets moving to the upside we're up a hundred points on the dow and it's the notable outperformer the card services provider, bank card issuer topping analyst estimates on both earnings and revenues also raising, by the way, its full-year revenue forecast it was also the latest of the bigger financial players and banks and finance companies to

indicate some resilience in the consumer spending picture despite some of the economic uncertainties that we've been tracking very closely in the last several months. in particular, amex says there was a strong rebound in global travel and entertainment spending which did surpass pre-pandemic levels. the company says millennials and gen-z card members increased spending by more than 50% versus the same time last year. despite the positive signals, executives did note that unemployment and customers being unable to pay their bills could potentially be an issue down the road, but there are not yet any significant signs of that kind of stress. so far this year, amex is a relative outperformer as are the financials and the overall trade goes, down 4% while the broader s&p reached down roughly 15% and 16%. with the amex trade and the dow down roughly 100 points between 50 and 70% of the dow at various points of the day is just

american express on that trade, so i certainly have a positive influence on the dow right now back over to you >> absolutely, dom "squawk on the street" is back "squawk on the street" is back after this heat makes it last. so you'll never sit this one out. new icy hot pro with 2 max-strength pain relievers. (ted) after talking and texting for years, we got married... . for the family plan.

(jane) and then we really expanded our family... for the wireless savings. (ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed. (vo) family plan savings without the family. get visible. single-line wireless with unlimited data for as low as $25 a month. wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. ♪ ♪ wealth is watching your business grow. worth is watching your employees grow with it. ♪ ♪

we talked a lot about twitter this morning and the performance of that company can't be helping elon musk feeling better about being forced to buy it as may be the case we'll see when we go to court in october, but i will say one thing that's probably making mr. musk feel better about it. that take a look at tesla shares over the last month up 18%. the last filing had him when you include his options controlling 265 million shares, leslie, even off of a $700 number he's up 32 billion+ and that's the amount of the equity check for twitter and maybe that must make musk feel better if he is forced to do that deal a huge increase in his net worth last month. >> tesla and twitter just as a result of that, to your point, maybe some of the pressure has been lifted, as well because he's restructured the way that he's financing the deal and no longer has tesla stock as that

collateral with the loan that he was taking out and there's that dynamic, as well >> from morgan stanley, a $33 million check behind him and again, that doesn't hurt even though twitter has not looking good and that will be a subject for "tech check. >> that does it for us on "squawk on the street. let's go over to kelly >> happy friday. welcome to "tech check i'm jon ford and julia boorstin. the stock down 35% as the 14 firms downgrade the stock after earnings, ouch snap down 77% this year. and then twitter, big earnings miss revenue drops they're blaming elon musk, what both of these stocks say or don't say about the digital ad spending in social and later, the nasdaq flirting with that 12k level for the first time since early june and the entire tech sector getting