chili's and then sky west airlines, if you feel like owning an airline. >> that is my point. we could do something more productive with this money i wonder what happened to this winner in 2016 or winners. >> i have two dollars in a dream. >> how many tikckets have you bought. >> i plead the fifth. >> thanks for watching "power lunch", everybody. >> "closing bell" starts now. >> and stocks are at session highs on the final trading day of july as the s&p paces for the best month since 2020. up 9% in july. apple and amazon, adding a combined $230 billion in market cap today. basically a pepsi co the most important hour of trading starts now welcome to "closing bell," i'm sara eisen markets up 1.4%. healthy week, up 4.25% for the s&p and the nasdaq also joining

party today, leading it up it is up 1.8%. thank you amazon and apple we are tracking for the best month of the year. best month since 2020. small caps up .6% and we have almost every sector higher energy is leading the market right now thanks to record profits from exxon and chevron staples and health care are the two sectors that are actually in the red. consumer discretionary right there behind energy. look at why. you've got amazon, tesla, those are fuelling that sector check out the top performing dow stock this is month. apple, boeing and chevron and while tesla and netflix and chevron helped with the nasdaq 100. coming up, consumer sentiment coming in above sentiment but walmart and best buy painting a different picture with the earnings this week we'll ask the ceo of columbia sportswear what is happening with the consumer. from the chips act to its manchin deal, we'll talk to libby cantrell about the big

washington events that could impact your investments. we're closing out a strong month for the averages, the nasdaq up double-digit on track for the best month since 020 amazon and apple are driving today's pop after reporting positive results so does the tech trade have more legs time to get back into growth let's bring in morgan blat and tim resco. first to you on the results. because you have a hold on amazon and apple and aren't quite as enthusiastic as some of the other analysts on the street today. what -- what is wrong with the amazon report which is being universally embraced up 12% and seems like a real standout >> well, i certainly thing there is relief in amazon. i think there was concern going into the report. but if you look closely at what was happening, there is some things that you could look at as maybe not what you would ideally

want to see in a stock that is up 12% today. >> like what. >> one is the core value driver, web services, growth slows, margins declined the other is that their legacy retail, while growing, it is not really the growth story that it was. i would back into about a 12% growth rate in north america for everything combined in retail and inflation is 9% and units up globally 1%. so it is really inflation, it is not an outperformance secular story. and margins, they're spending, they were supposed to get some inflection as they grew out of the over spending into the pandemic but their suckle up a lot of that with staffing and computers for aws and content like thursday night football which i think is a head-scratcher fox couldn't make money and they're paying twice as much money without the affiliate revenue stream underneath it so i'm not sure how the roi works on that. so i think there are concerns

about amazon. >> your price target and your neutral rating i'll take the aws part, because while it was a slower rate of growth, it was better than expected and it is still 33% which is even higher than some of its cloud competitors which a lot of folks think that suggest that their still taking share. >> i don't think it is higher than microsoft which was up i by 46%. google reports their comparable cloud business is buried within their disclosure and if you back into it was faster and maybe 40% is faster than amazon, so i don't think there is -- i think they're a share leader but this is a sector that has a great secular tail wind and i think people want to ascribe huge multiple to it. i think it is getting very big and good story but i think that is pretty well-known at this point in the stock >> so, tim, as the fund manager,

a long timer and shareholder of both amazon and apple, do you want to take the other side? >> well it is not taking the other side as a long-term holder of these companies, they're very important to the overall market, right. two of the largest companies in the world. they're owned by investors in almost every style of index fund that is out there. so seeing movement in these stocks is constructive and perhaps the street had been too bearish going into earnings across the board with 60% of companies are beating earnings, lower than the 77% that is the three-year average of earnings beat but it is just constructive as a whole and we don't spend a whole lot of time getting worried about quarter to quarter revenue and earnings changing. you have two great companies that created significant modes for themselves. >> the question now, tim, is whether you want to add exposure to either of these companies or any growth companies because a few things are working you have treasury yields basically moving south you have the market thinking

that the federal reserve is closer to the end than the beginning on hiking interest rates. and now you have some pretty sturdy fundamentals here lining up for companies in a tough economic environment so would you be adding >> well, i think what you're looking at is those investors with cash, buying when the market is down and two large participations is down, it is a generally good place to be as long as it fits within people's risk tolerance, adding money to the market when it is down you still have a s&p down mid double-digits so it is not an awful time to be looking at buying stocks. and if you're going to get long the market, you're going to own these two stocks generally >> burton, what about apple. which is trading higher today. more than 3% it is had a great month as well. people were encouraged to see the iphone growth. were you are expecting a decline like other analysts? >> i was happy to see the iphone growth the question is apple is what is

going to come. they have a great product cycle that they're very excited about, but the question is copying against what was likely some element of pandemic pull forward for all computing and smartphone, there was like a big cycle of people buying 5g phones and i think john steinke expects the 5g cycle to calm down versus last year. and then you have macro concerns which didn't hit the iphone which is as relief, but they are hitting services and they are hitting wearables and that is in this environment where everyone is still employed. if we go deeper into a recession for a high multiple stock, i think there are some things to be cautious about here >> so where is your target now on apple and what do you do with it after the numbers? >> so my target is 160 i'm not chasing it

there would be scenarios where i would be interested but not right here with the uncertainty as we go into the big test can they persist the 5g comp and the pull forward. >> it feels like, tim, what we learned about microsoft, alpha best, apple and amazon, and the exception is that they are in good shape if we are entering or in a recession but i don't want to use the word recession-proof but there was a lot of hammering about the macro kmiks environment and how that would impact iphone demand and retail spending. amazon talked about a step up in consumer spending which is happening at the same time as we got the warning from walmart so it is a confusing environment, tim and i wonder if the lesson of the week is that the companies are in good shape to weather it? >> right i would share your concern that we're using recession-proof on anything but what you found out that is the core recurring businesses have remained very strong and they continue to move towards

cloud based services whether it be large corporations moving systems to the cloud or individuals using apple's cloud based services it is nearly become a consumer staple to have your technology in your pocket so those businesses remain very strong where we saw the weakness was in ad revenue and these are companies that at this point are less in ad revenue for social media. >> like a meta. >> the first thing that goes in the market is marketing spend. >> are there safer places within technology to be if we're in a recession? >> well i think there is certainly less expensive equities with also great kind of modes and great stories. the one that i'm recommending is alphabet and yes, there is ad exposure. but the other side of that is that people will anticipate. so that is where i'm putting my money into big cap interplays right now. >> got it.

almost up 8% appreciate. it good discussion tonight don't miss the tech trade, hosted by our deirdre bosa featuring cathie wood and dan niles and more he was pretty negative on the names on monday shorting a bunch of them. didn't work out too well for him. look forward to hear from him later tonight at 6:00 p.m. on cnbc. it is a strong week for tough but harder for retail after walmart and best buy, we'll discuss the landscape with the columbia sportswear. we have nearly every sector positive energy and consumer discretionary and industrials lead staples and health care are the two ones that are lower. we'll be right back on "closing bell" here on cnbc

thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab.

schwab! look forward to planning with schwab.

in order for small businesses to thrive, they need to be smart. efficient. agile. and that's never been more important than it is right now. so for a limited time, comcast business is introducing small business savings. call now to get powerful internet for just 39 dollars a month. with no contract. and a money back guarantee. all on the largest, fastest reliable network. from the company that powers more businesses than anyone else. call and start saving today. comcast business. powering possibilities.

check out today's stealth mover. ww granger we talk about that enough. one of the top performers in the s&p 500. the product suppliers from selling everything from safety helmets to power tools to janitor equipment, beating earnings estimate and raising full year guidance because higher prices were able to offset the significant impact from a depreciating japanese yen. amazon predicting sales could

soar 17% this quarter and then today consumer sentiment ticks higher from the initial reading but a different story from brick and mortar names remember walmart, best buy, both cutting profit forecast and in part because of an inventory glut that follows target's big warning back in june so for more on what is happening with the consumer and retail, let's bring in columbia sportswear ceo tim boyle nice to see you. >> thanks, sara. great to be here. >> going through your results, you did see sales growth but it was a little bit worse than expected and you did lower the profit outlook so what is happening from your consumer >> well it is always good to remember that second quarter for columbia is the smallest quarter of our year. so, you know, certain numbers can skew the thing differently occasionally but what is happening is, for us, china is an important market for us we have concerns about whether or not we'll be able to have our business open there all year

we also have a solid business in russia, which is now outside of our revenue estimates. and the u.s. dollar is strong and, you know, most of our businesses outside of the u.s. are all dollar denominated so they'll be some pressure there and then, you know, we were all talking about what consumer is likely to do in the future and so we just wanted to make sure that we were reflecting that conservatism. >> you did see 9% sales growth in the u.s., which was healthier than a lot of parts of the world. are you seeing a slowdown, a trade down, any big changes? >> well we have solid growth planned for the balance of the year and our expectations are to continue to grow through '23 but our numbers had been so significant over the last several years that we just wanted to make sure that investors knew how we were thinking about the business and that we had a focus on making sure that we were profitable in

addition to growing. >> what about the promotional environment? are you anticipating that that picks up at all? i ask because it's been all inflation all of the time. >> yeah, we had almost no promotional activity either went our dtc business or our retailers business as well over the last really 18 months. and so we're -- our expectations is that there will be more of that so, you know, we're making sure that investors know what our thoughts are in terms of how we approach that. >> but you are anticipating more promotions >> yes >> what about the sorrel brand, sorrel, they're very fashionable. i have a few pairs of those boots. growing double-digits. why do you see a distinction in that group and what does it tell you about what consumers want right now. >> well it is interesting, if we follow the sorrel brand from its -- our purchase of it and it

was a number one winter boot brand for men in canada and if we follow the acquisition of that brand, since we've had in 2000 it is really been converted into a women's fashion footwear brand where it is about 70% of our product is women's fashion footwear and it is all functional but it is also great-looking and you know what we found is that frankly women buy more footwear than men and they buy it more year round. >> i could have told you that. >> well we're slow learners here in oregon. so, but it is been a great business for us. very high growth and the opportunities in that business in a year round basis are enormous >> and then what about the supply chain, tim. you have been dealing with issues and bottlenecks before, how has it been looking lately and what do you expect >> well, the supply chain issues

consistently extend into this year, into '22 and likely have some impact in '23 although we expect it to moderate. prices on containers are still high there is the issue of collusion in that area where all of the suppliers, the steam ship companies are making sure that they're all together in terms of pricing which has been challenging. but we expect that the supply chain issues are still going to persist throughout the rest of this year. >> you have raised that? is anyone looking into that? >> i think -- yes, i think the administration is spending time on it. we believe that it is frankly not been high enough priority. but we understand that the forward maritime commission is looking into these issues. >> well tim, thanks for joining us with the color and the commentary it is good to hear from you. >> great to talk to you.

thank you. columbia sportswear. i'll show you where we are in the markets. just at about the highs of the day. with 40 minutes left of trading. 1% gains all around for the dow, the s&p 500 up 1.5 and the nasdaq up 1.9% we're capping off a very strong week and month of july which is the best month for a lot of the major averages since going back to 2020. we're looking at gains for the week of more than 4.5% for the s&p. up next, the disaster of day is roku losing a quarter of the value. those shares after earnings and guidance came in light we'll talk to an analyst who just slashed her target by nearly 50% and check out some of today's top tickers on cnbc.com. amazon gets the top spot, unseating the ten-year what an 11.4% will move on amazon off earnings. the ten-year is number two buying today more pressure on yields, 2.66 is the tenure and that is helped with stocks rebound this month

apple is up almost 3.5% off earnings and the two losers which are intel and roku we'll be right back.

take a look at shares of roku the stock is plunging now down more than 23%. it was a miss on the top and bottom line. roku blames macro economic issues and they took a hit from the joining ad spent sweata just downgraded roku cutting the price target to $140 a lot of the analysts stuck with their bullish views on the company and on the stock, after the conference call when anthony wood said this is temporary, this is what you would expect to see in a difficult macro economic environment which is businesses cutting back onnard spending. why did you see it as a game-changer. >> thanks for having me. because of a few reasons

one is that roku is facing almost like a double-whammy the not only slowing top line growth but at the same time their continuing to invest, although now at a slower pace, which is giving them a huge head wind to profitability. in this type of an environment where demand trends are slowing, and profitability is nowhere even near the levels that we thought they would be, it is hard to be behind a business like that. at least in the near term. just at a high level, we think that roku probably will continue to face challenges at least for the next three to four quarters. our price target is a one-year outlook. so if we're not going to see any meaningful catalyst in the near term, that could be tail winds for this business and then we see opportunities elsewhere like a google that is more resilient with higher quality advertising platform at a good valuation than roku. doesn't mean that we won't change our outlook when the

market and the macro environment is a little bit more friendly to the business >> so it is just that they're more vulnerable. because i was going to ask, if it is just all about the macro environment and the ad spending, then how do you take this roku report next to the meta report and snap which was also a disaster it feels almost company specific in terms of who is getting hit on the ad spend pullback >> it is and the one thing that i would want to highlight, it doesn't seem like this is a structural issue within the business. that roku is facing. it is a macro issue. but roku is having the bigger brunt of it and having an outside impact because, one, they have -- they face supply chain issue, two, they have a greater skew to scatter market which a large majority of the ad dollars are derived from scatter market which is very soft. three, they don't have a strong exposure to perhaps travel for example and auto and cpg are still weak

not from fogoogle they have travel exposure. and there is impact of the costs as well so there is a whole host of issues impacting the top and bottom line that roku is seeing an impact from these right now. >> so they're going to reduce operating expenses, head count, right and growth, content spending how does a company like this, that is going through that, do that without hurting future growth prospects >> well that is a great question i mean, they are slowing down their operating expenses but if we keep it in context, it is still very elevated they're spending -- we are estimating them to spend almost $2 billion in operating expense. that is very high for a company this size when the revenues are around $3 billion. and so, yes, it is a slower than expected growth in operating expenses but by no measure or by no means i would think these are

reasonable operating expenses. these are investigate level operating expenses they were expecting ebidta of about $150 million for this year and they are now estimates, they withdrew the guidance, but based on commentary, it is for $90 million in ebidta losses so the base of operating expense reduction is key in a market where investors are increasingly looking for free cash flow and ebidta and profitability >> well, but you describe why the stock is down 23 plus percent today. thank you for joining me. >> thanks for having me. >> up next, pimco head of public policy libby cantrell explains how wall street and your investments could be impacted if the new reconciliation bill this week creates a corporate minimum tax, closing the carried interest loophole and if tt ha does become law, what that means for your portfolio, next

the thing that's different about a vrbo vacation home. you always have the whole place to yourself. just you and your people. ♪ ♪ your record label is taking off. but so is your sound engineer. 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 ♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme. want more from your vitamins? get more with nature's bounty. from the first-ever triple action sleep supplement. to daily digestive support. to more wellness solutions every day. get more with nature's bounty.

take a look at the tech heavy nasdaq it is now surging 2% here into the close. highs of the day just adding to what has been strong gains all week long. up almost 5% for the nasdaq. and the month, it is up almost 12.5% for the month of july. keep in mind, the context here, it is still down 20% or so year-to-date and about 24% off the highs. but making up a lot of lost ground today, the week, the month, overall and today you could really thank the strong earnings from apple and amazon sitting right at the top of the nasdaq. but it is lifting a lot of the cloud names, data dog, which has been hammered, it is up 6% tesla is up 5% so a lot of winners today. what is lagging in the nasdaq, it is intel off earnings and comcast with follow through off

of yesterday's earnings report, zoom video not playing a role. but other wise, it is a big rally for big tech today washington has been a key focus for wall street this week. the latest gdp print showing a second straight quarter of contraction. the same time senator manchin and schumer reaching a deal on the newly named inflation reduction act. and we saw a win for the semi industry after the chips act passed congress. joining us now is pimco head of public policy libby cantrell it is great week to talk to you. first of all, the name, the inflation reduction act. this is the old build back better plan. do you guys at pimco think that it is going to reduce inflation? it is almost like a gimmick after senator manchin was so worried about inflation and the calling it this. >> that is right good afternoon, sara not only is senator manchin worried about inflation but every democrat and member of congress, every senator running for re-election in november is worried about inflation.

so, you will hear them point to the democrats point to this a lot in terms of hoping that this will reduce inflation. i think that bottom line is that this is not likely to be all that impactful in terms of either reduction of inflation. particularly in 2022, particularly in terms of the run-up to the midterms so i think the bottom line is, while you're right this could be a gimmick, and it could actually be -- have more of an impact on inflation down the road, it is not likely to move the needle in terms of reducing inflation in the near term. >> is it likely to pass? does the chips act passing make it more likely that this could get a shot >> yeah. it is interesting. i think the consensus in washington was that even though chips had kind of gone through its own trials an trib you'll

al -- tribulations that will pass and it will be signed into law shortly, i do believe this will pass we've been sort of out of consensus here thinking that there would likely be something done on the reconciliation bill. i think there is just way too much momentum right now. everything is looking at senator sinema from arizona. she's been quiet on whether she's support it but i think the bottom line is that this is very likely to pass and it may be changed and tweaked at the very margins, maybe around carried interest, but the bottom line in terms of the climate, the renewable tax incentives, the pharmaceutical drug provisions, all of that is very likely to pass with relatively high odds >> so then we get into winners and losers clearly the solar stocks, we've covered a lot. we talked to sin ova, who thinks it will pass what else is pimco saying about who could be beneficiaries and losers of it

>> yeah. so, i mean, this is really kind of an all above energy bill. so of course renewables are very much in focus as you mentioned, solar, wind, hydrogen, nuclear, geothermal, there are some things that are punitive for the fossil fuel industry related to methane fees and what have you but there are also some pretty nice provisions here some pretty positive provisions for the fossil fuel industry, whether it is the permitting, whether it relates to allowing more drilling in federal lands, and so i think in some ways there is a lot to like in every sector of energy in terms of this bill. sand in terms of the losers. the clear liosers are the pharmaceutical companies as it related for allowing medicare to negotiate drug prices. this is priced in but it is expected that if anything passed

it would be that provision so again not very much to do as it relates to that industry. but they are going to be losers going forward in this -- if and when this bill passes. >> and private equity and hedge funds, if carried interest and they get rid of it. >> yeah, so just to be -- there is some more nuance here the carried interest loophole is not completely eliminated. it is just the time period to receive that more favorable tax treatment as extended from three years to five years for pe firms and henl funds it is not completely disclosed despite the rhetoric coming out of the democratic offices but it is extended and it is more punitive for that industry for sure >> libby cantrell, thank you for joining us. >> thank you. >> here is where we stand now in the markets. stim holding on to gains with the do you up 363 points and the s&p up 1.6 and there is the north asdaq up 2%. final day on the month of july

ending a bang here and it is thanks to energy which is having a good earnings day with exxon and chevron thanks to the big tech like amazon which is now up 12%. up next, the ceo of spirits maker diageo we'll be right back. ing app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market.

in today's big picture, more signs the luxury consumer is well, booming. hermes, home of the 10,000 plus burken bag reporting a record 42% operating margin in the first half of the year u.s. and europe were the bright spots. it is watching, accessories,

shoes and turns out alcohol too. diageo, which makes guinness and smirnoff and johnny walker and fins to expect growth. what is behind it. the ceo told me it is spending on premium brands, the good stuff. >> the premium end of our portfolio is growing faster. the top one-third of our business is the fastest growing part of the portfolio as people are drinking better everywhere in the world >> and he also told me he expects the trade-up to premium products will continue >> continue to see positive trends on premium brands growing faster, so in the u.s. tequila brands are really strong, johnny walker has had a great year, strong double-digit growth, bullet bourbon doing well and whiskey and ketel one vodka. >> and he sees resilience across

the board even if the u.s. does enter a downturn or a recession. >> there is more resiliency here in part because it is an affordable luxury. the average american household spends for at home consumption about $330 a year. a dollar aday on spirits you're buying ketel one vodka, a few times a year, a bottle of it. >> only a dollar a day bottom line, we're hearing more evidence that the low income consumer is holding back but for the luxury companies, it is still boom times. watch u.s. luxury plays ralph lauren, tapestry and capri, they're allreporting results i the coming weeks up next, paul hicky discusses whether a jong july for stocks will be able to carry over into august he always has good stats that story plus intel plunging and a pair of oil giants rallying when we take you in the

market zone with the dow up 350. . next to no interest, the fees it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. break up with bad banking. get 1.50% interest, pay no account fees, and get your paycheck up to two days early. download the sofi app and earn up to $300 when you set up direct deposit. sofi get your money right.

as a business owner, when you set up direct deposit. your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.

♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools

power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity with the nasdaq surging more than 2%, we're now in the closing bell market zone paul hicky is here to break down the crucial moments. plus wed bush on intel and pippa is here on chevron but first up, final trading day of the month of july major averages in the green. it is a good month for the bulls. nasdaq is up more than 12.5% and the s&p 500 up more than 9% and the dow up por than 7%, when

raises the question, the bears will say it is a bear market rally. those could be some of the most powerful bulls will say, we've put in a bottom which is it? >> i think you have to look at this week and be really impressed. we had the four mega cap stocks, amazon, apple, alphabet and microsoft all report they've never reported in the same week going back to 2015 and all had positive reactions normally, they hit down when they all report in the same week and the market runs into trouble but this week we saw the complete opposite and i think it was a function of sentiment being so low in the market that you tend to see, you know, when things get washed out like that, there is only one direction things could go. we've seen that with earnings overall throughout this earnings season coming in, the tech and consumer discretionary sectors had the highest pace of negative revisions coming in for this earnings season and now we're

closing out the month and those are the two best performing sectors in the market this month. so we've seen prettiy encouragin results which makes you think this could be a -- you know, that the lows may be in. you tend to see, you know, we see guidance numbers equally split between raised and lowered guidance, no one was thinking we would see companies raising guidance becausethe outlook wa so uncertain and there was no incentive to step out on the lurch, to step out and stick your neck out. but what we've seen is companies that have had confidence to raise guidance in a lot of situations and stock prices are reacting positively. >> so you see this as more than just sentiment and positioning >> yeah, i mean, i think -- >> you say it is justified >> i think we've tended to see the results that are --

sentiment was so low, expectations were so low and companies are reporting decent numbers. so i think in the next couple of weeks, who knows what goes ong but long-term, the things that we look at are pointing to the historicals and the seasonals are pointing to better markets ahead. >> well let's hit apple and amazon because both are big winners, especially amazon apple beating on the top and bottom line. they weathered supply chain constraints and weathered the shut down in china and a softening consumer, iphone sales proved resilient and grew. and amazon up sharply adding over $120 million in market cap just in today's move alone revenue growth came in faster than estimates partly thanks to continued strength in the cloud. but i think the retail business paul on amazon was particularly surprising because amazon expected a step up, which it just is amazing at the same week that walmart is warning on profits and a changing consumer.

how do you square that >> we said that, at risk of sounding like a broken record, if there is anyone that is going to weather all of this macro environment and get through it just as strong if not stronger, it is amazon and they have the amazon cloud services, which acts as a big cushion. it is growing at over 30%. and it is $20 billion quarter revenue run rate and i mean, look at walmart this week after that enormous decline, it is gained it all back. so, again, that kind of situation where you're seeing investors looking beyond that bad news and buying the weakness and just going back to earnings again. we've seen companies down initially in reaction to earnings in aggregate and then rally from the open to close and finish higher on the day and so walmart is just a very extreme example of that. >> let's hit intel as well because they're under serious pressure today missing estimates across the

board. re revenue missed consensus by roughly 14%. that is the biggest since 1999 pat gel secretsinger was on tecy and here is what he said about the last quarter. >> we missed yesterday we own that. and a lot of that was the economic, but a lot of that was us and our execution. we're being accountable for that to our shareholders, yes i need to do better. we need to do better and we will do better. >> joining us now, wed bush securities matt bryson who has an underperform rating on stock. lowering from 35 to 44 and you called it a results and outlook equally terrible what is the problem here >> i think they just said it, it is partly they didn't execute it, it is a very difficult back drop where you have the consumer stepping away from purchases and

you have enterprises where spending hasn't necessarily slowed, but suppliers into enterprises are concerned spending slow and so they're cutting back inventory which is hurting intel. >> and investors have wanted to look for a bottom in this stock for a while in periods when value was underpriced stocks do better you're clearly not willing to go there yet. why? what do you see in front of intel? >> so, on the execution side, you just heard gelsinger saying we didn't execute. that is not on him that is on his predecessors. it takes a long time to turn manufacturing around and intel has laid out a path to resuming competitiveness, they don't get there until 2024, 2025 and so the struggle on my side is how do you get more

optimistic around a name where things will get better potentially, but we are still a long ways out in a difficult macro environment. >> it is sort of an interesting juxtaposition because pat was so out front on the chips act and so bullish on building in america. they have a plan in ohio they're going to spend $20 billion. he got what he wanted and i feel like they've been -- they've been all over it and that is been part of the story, matt so how does that factor in with the weakness that they're seeing now? >> yeah, i think it is two different things in the sense that what he's trying to build or rebuild is in tell's manufacturing prowess and to do that, intel has to spend. and so part of the struggle is they're increase in spending is making up for the deficits that were created under the past few administrations. and with the u.s. willing to

subsidize chip manufacturers that is helping them in that task but at the same time, it just takes time they've fallen behind. they need to catch up. again, that is a two to three year process i don't think there is much that -- you just can't fix that regardless of how much money you have overnight >> got it. matt bryson, thank you for your quick take on intel from web bush and want to hit energy oil giants helping out here. there they are chevron and exxon. chevron is a top performer in the dow, easily beating earnings and increasing the stock buy back program by $5 million exxon reporting stronger than expected bottom line and missing revenue estimates. on "squawk box," darren woods discussed the outlook for demand amid the rising recession fears. >> there is some elasticity in demand so we did see some impact in moderation and demand but continue to believe in seeing a

growth overall in prords as economies continue to recover. >> pippa stevens joins us. not sure the record profits and higher buybacks will buy them political good will. the white house has accused them of prioritizing profits above all else what did we learn here >> during this record quarter for both exxon and chevron, both companies were quick to note that they are in creasing output and they are trying to alleviate some of the burden on consumers of these sky high energy prices. mike worth at chevron said that permian production is up 15% compared to last year. darren woods at exxon said they're bringing in additional 250,000 barrels per day of refining capacity online by the first quarter of 2023. which would be the largest addition in the u.s. in more than a decade. and look, these companies know that they are under fire for these record profits and typically when companies do report a record quarter, it is

the first thing you see. but at the top of both of the earnings statements they did not note these were record earnings so they are well aware they are under attack by the administration and while exxon $17.9 billion in earnings this past quarter, it is a record you have to remember that in 2020, can't last more than $20 billion. so wild they are in creasing output to a certain extent, you know, they remember what it was like two years ago and so nobody is rushing to open the spigots in the way that you would have previously seen when oil was at $100. >> the perspective pippa, thank you paul, what do you do with the energy names, do you buy or on the tight supply or are you more weary because of the recession concerns and what that will do to demand. >> the energy sector has had an enormous run the stocks have pulled in and come back a little bit here. but as pippa was talking about, they've been very disciplined in

the spending as long as they remain disciplined. chevron is spending 25% less than it was in 2019. so they're being very disciplined. they've pulled back a little bit. if oil will remain at these levels, the energy, you want to have exposure to the sector. maybe not after today after chevron had the best earnings reaction day in 20 years but as the stocks are in there and have exposure. >> two minutes to go in the trading day. it looks like we'll end here on a high note. to what has been a high month. and paul we've talked a lot about technology this hour, but it the not just technology, it was broad based and the transports having a great day. up 6% for the week up nicely for the month. caltrans port up 3%. so the question is beyond do you want to get back into growth and teg but cyclical at a time when there are worries about the

economy. >> yeah. and that is a great question you look at headlines today and you think why is the market rallying after, you know, second straight quarter of negative gdp. but what you have to remember as an investor is what is going on in the headlines today was happening in the market six months ago so the market is already priced all of this in and then what you have to look forward to now is how is these fed rate hikes going to impact the economy. if we see better inflation numbers, the fed may take a wait and see approach and that is great for the sickals. and when you have seen two straight quarters of negative gdp, eight out of nine times since 1950, the s&p was higher six months and 12 months later, 12 months median gain was actually 30% so i think -- having exposure and the sector rallying isn't hurting. >> all right we'll end with that great set. thank you very much. surging in the close up 323.

chevron is the biggest contributor. s&p up 1.4% ant the session. and energy is the leader along with consumer discretionary and that is an amazon and tesla story. technology and the nasdaq doing quite well up almost 2% on the day. apple also a huge earnings winner and that has been the story of the month where we are going out with our best po of the year for july best month since back of in 2020er not srp an the nasdaq that is it for me. we'll send it into "overtime" with jon. >> i'm jon fortt in for scott wapner and we're just getting started and we begin with our talk of the tape the big july jolt. a monster month with the s&p rallying more than 9%. that is the biggest gain since november of 2020 so as we head into august, it is on even bigger breakout building or was july just a bear bounce let's ask greg branch, founder of financial group and