other hand newsletter. doing this one tomorrow on "squawk box. this week's debate, does the fitch rating cut signal a market top, morgan? couple different -- and it's not just -- there's some other things going on that could make one concerned. >> and we saw the jump in the vix today, the major averages all fall lower, s&p down 1.4%. that's going to do it for us here at "overtime." >> "fast money" starts now right now on "fast," fitch downgrades the u.s., but many investors including america's most influential ceo jamie dimon called the move ridiculous we saw the markets react rates spiked tech got hit hard today. we'll go inside the slide straight ahead. plus, apple and amazon reporting tomorrow both stocks tumbling today not exactly sizzling this summer. and later, we'll have the afterhours action, a host of earnings movers from qualcomm to robinhood to zillow and much more i'm melissa lee, this is "fast money," we're live at the nasdaq

market site. we start off with the straw that might have finally broken the rally's back fitch's downgrade of the united states long-term credit rating sent the yield on the ten-year treasury to its highest level since last november and that took the wind out of the sails in the equity rally. the dow going negative for the week the s&p down 1.4% for its lowest close in more than two weeks the nasdaq shedding more than 2% take a look at the stocks that were particularly hard-hit data dog, crowd strike, all dropping more than 6%. semiconductors taking a leg lower. amd, which was up about 6% after its earnings report last night ends the day down more than 7% investors turning instead to the safety of more defensive sectors, consumer staples, health care, the only groups in the green today. so, did fitch show how tenuous this rally has been? and we've seen this before, karen. 4% seems like the magic number whatever the reason for getting above 4% is, this time, it's

fitch. stocks fell off. >> right well, it's a confluence of things the run in the equity markets has been huge. so, maybe that was just out of gas. and so the fitch thing certainly just throwing gasoline on it and then i think some of the treasury issuance, particularly longer-dated, that's going to be a lot of supply, a lot more than was expected, and so, that was sort of just another thing to throw on the fire. i don't think this is a one-day fire i think it's going to -- >> take awhile to sort itself? >> yeah, i do. because if we step back, the market hasn't moved that much. donald donald bonds are having a big move. >> 408 right now, grasso >> yeah, karen hit it. the market has been looking for a reason to sell off this was as good as any other reason but if i asked you, does powell hike further, what is your answer it should be no, right you would think it's no. i don't think anyone can say that and be -- be serious about

it, but can you be certain i don't think you can be certain. >> no. >> does it matter, say he hikes 25 >> yeah, i think it does if everything is rising around him and he does it again, those long and variable lags become even more important. they become even more detrimental. they said they would do something until something broke. the regionals broke. they said they would stop when we see something in the unemployment market, we haven't seen that yet. that's the last shoe to drop >> yeah. julie, what's your take? >> yeah, i mean, i think -- i appreciate everyone's commentary that, you know this is ridiculous and this is just like 2011, and, you know, we all agree that the u.s. economy is, you know, bar none, one of the most strong and table. you can be the hottest girl at the party and still make very bad decisions. and i think we know that's true of our government, right so, you know, when i look at what's happening with secretary yellen, you know, coming and saying, this is an arbitrary decision, but she's got

testimony saying that, you know, if we get to 3% interest cost versus gdp, that that's a dangerous level, and we're getting there. we're getting really close to that it's sort of like -- you know, i do think there are concerns and i think they're valid and we should take them seriously >> tim, do you think this is a one-day reaction, or do you think this might take a little bit longer to figure out >> well, 2011, i don't think anybody is implying this, either, but 2011 was one of the worst times to be trading through markets in my career and it was -- the volatility there was something that we had not seen and it was combined with ecb dynamics and i think we're in a different place here. i think the reality is that, yeah, the equities, everyone said the equity markets needed an excuse, i'll buy that 35% in the nasdaq off of that svb low, 38% in semis, 20% plus in the s&p, and yet, seems like all the bears capitulated last week so, this all kind of makes sense. we're up 80 bips on the ten-year before this fitch announcement

from early may, 120 on the two-year so, yields are moving higher i'd make an argument yields have been moving higher on the two-year, if you take out covid, since 2011, when we were downgraded but pointing out some of the technical elements of issuance, technical elements of bank of japan, maybe, no longer yield curve targeting, and boj also in terms of central banks globally buying less in the way of treasuries, higher yields here are something that i think equity markets have not contended with so, i think we're all -- have been scratching our heads over the last couple weeks, for sure, as they've been crescendoing the fitch announcement, we're going to talk more about this, i think there's comedy on both sides. the fact that we're referencing january 6th. as a u.s. citizen, i didn't like january 6th, that was january 6th, you know, that was 2020 the fact that this is coming up now, the government's dynamic, the qualitative elements of this, relative to at least o other -- other central banks or treasuries in the world, i

think, is not even close the white house's response is also kind of laughable so, it does, you know, put a bright light on the political folly here equities were overbought, and yields are going higher and it's not good for equities. >> you know, to tim's point, this timing could have been any other time before this, the timing is suspect. but fast forward if -- >> like they did it on purpose, they waited for the treasury to announce what their issuance, they waited for -- >> all the reasons that they stacked up to tim's point, stacking up january 6th, you have a long time to think about this, wright so, i think they just had a bolster there. maybe their case, so to speak. but if you look at it this way, if amazon and apple report better, the market rallies, this could be, where we started the show, when you said it to karen, is it a one-day event? if apple and amazon are greeted favorably within the market, it's going to be a one-day

event. >> well, i think the question, too, does this change the thinking of all those people who finally came object the other side of the boat, who finally now say, there is no recession, that there is a soft landing or no landing at this point, that investors in large part were underinvested in the stock market and there's some aspect of catchup because of positioning going into this rally, because people hated the rally going up and resisted and finally are jumping onboard, all that still exists. that doesn't change with fitch and we knew that it was going to be higher for longer >> right >> so, does 4.08%, in a fitch downgrade, change this overarching thesis >> i'm not sure that it does but i think to your point, the market just looks for something. what's the excuse that we're going to have that oh, my god, this rally has been, you know, too much, too fast, all of that. and i'm just -- it does sort of feel like it needs to cool off a little bit i'm long a day like today, for sure going to lose money, but i added to what hedges that i have, i'm still very -- i'm always long. i'm always long.

but i just feel like the qs really expensive, the igv, really expensive, and bonds, shorts and bonds p so, i think -- i'm in for more pain i'm going to stay long, though >> uh-huh. tim, is this a pull-back that is temporary within a longer, bigger uptrend that is still in tact in your view, or is this the reason this rally cracked? >> i don't like equity valuations here. i don't love positioning i'll reference jpmorgan survey i read today, and a lot of these surveys can be noisy, but 43% of their institutional investors think equities are going to make new highs this year, get to 5,000, et cetera, and while at the same time, 76% say that the markets have priced in too much credit complacency so, these types of diver jenses are what we have i agree, this is bad and i think equities can go higher as i often give kind of road maps and my dashboard continues to be things like,

semiconductors failed to make new highs, 160 on the smh, relative new highs to the s&p, and that's something that we need to watch. the reversals in amd, you cited at the top of the show valuations are really tough here what we've seen out of this earnings season, though, is that margins have been very resilient. and that's something that i think for the most part is part of why equities, we are actually seeing multiple rerating i believe equity markets have to be challenged after -- we had one of the greatest equity rallies in market history. and while i think there are credit dynamics out there, that's not what i'm worried about in the short run i'm worried about multiples that are going to be tough to live up to so, is today the crowning moment of the last 30% on the s&p no but i don't like eck by tips today as much as i did yesterday. >> all right. one of the analysts behind fitch's downgrade joined "squawk on the street" to explain what it would take for the u.s. to

regain its aaa rating. >> i think there's a couple of things we would want to see. one would be some kind of solution, long-term solution, tackling the entitlements programs, for example. willingness to somehow look at the revenue side of the picture and/or the spending side of the picture. and bring down the deficit to a least stabilize the debt to gdp ratio. >> for more on what the downgrade could mean for the markets, let's bring in ben eamons ben, welcome back to the show. as we have been sort of pointing out during our discussion, there are a lot of factors here surrounding this one fitch downgrade, whether it would be what the bank of japan is doing, the treasury is doing. what is the bottom line impact, do you think >> yeah, on the one hand, the treasury issues really played out the treasury market, because that was not priced in when the treasury made the statement on monday, traders started to really guess, this is

not just issuing t-bills just to get that account filled up this is about, we're borrowing a lot of money, because we have fiscal spending that's expansion their. we didn't really change it through the debt ceiling so, you have to borrow to fund it and that means longer maturity bonds have to be borrowed. and i think that's what got priced in today. on the other hand, the downgrade itself, awkward timing, as i heard the discussion it's interesting they referenced january 6th, and really a statement, this is brinksmanship that is going to last. and that's going to become an issue in the future. part of the reaction of the stock market is about someone who comes in the white house in the future, in a future administration, going to have to deal with the deficit and that's a negative scenario. so that may be some what of a reaction in the stock market today. >> you know, whether or not you agree with the downgrade or what, the fact of the matter is that higher yields are really challenging the market, whatever the cause is of the higher

ten-year yield where do you see yields going here, in the next six months or so >> yeah, you can look at it tactically, you are going to go towards the upper end of this range, which is around 4.25, 4.3. a lot of data going to come out that's going to show surprise strength we have the ten-year action next week that's going to test the market but longer term, if this is an economy that's really growing, but with inflation start to continue to moderate, then i think you don't really get the high yields. the deficits are not playing a role there >> when you we saw today's action, the large cap tech stocks sell off, in my mind, it would make them more attractive, at least their debt on that side of the eequation where do you think people would rather be, apple or the u.s. government >> well, those are focused on -- you would start to look at

apple, right aaa-rated debt as well as amazon and others, you know, that's not a large, deep of a market, the treasury market is, but i think life insurers, pension funds, mutual funds, if they are driven by ratings, they're going to look at that debt that is that high rated, and the choice for aaas is really small now you have to look at sweden, switzerland, you know, other kind of tiny sovereign markets that, you know, it's not as attractive to invest in. so, yeah, apple could be interesting. >> hey, ben. how about, though, the dynamic with where the fed is and the presumption is that the fed could push things too far or break something and we've used that terminology tonight and so, a fed hike seemingly should be something that pushes rates lower. if the assumption is that the fed is actually pushing too hard can you speak to that? because that seems to be weighing on the complete other side of this dynamic, and meanwhile, we're in a world

where people are now discussing, i've read three reports in the last week, about how china may be going through decades of a japan ja deflation in these places that had a credit bubble. >> sure, tim, that is a good point. like, thefurther from here would mean they are winning more credibility in the bond market, and that should cap yields over time and that's been the story in the treasury market over the last sort of six months or so, but i think the latest move in treasury yields is not just hikes, really. i mean, today, if you look at the probability scores for september and october, they didn't really change, even though yields went up. it's more story about the strength of the economy that came together with this surprise story, so -- but you know, if the fed starts to push further from here, i think the break-evens in themarket are telling you this okay, you will get this inflation under control, just bring this rate higher that's a positive story. >> do you think that that

auction will be really important, that ten-year one or not so much >> well, think of the timing, karen. so, next week, it's -- the day before the cpi report at auction, it's the largest size auction, i believe it's 5 billion more than what it was the last time. we seen the foreign investors start to move away from treasuries that's a trend that's developing so, i think it's an interesting moment you get cpi, so, we're expecting a softer number again. and then, on that day, we have the 30-year auction, too, which is going to be larger, so -- this is the test case of what we experienced today. did the market sell off too much, we'll see. but you know, this is, i think, a good segue for, you know, a good moment to get into the market, perhaps. good time. >> ben, thank you. >> thank you >> julie biel, as we go to four and a quarter on the ten-year yield, what happens? >> you know, i mean, i think some of that is actually

starting to get priced in, and i think, you know, that's a pretty positive thing there's no reason why we can't get to those levels. i think there's so many factors that are driving it right now. but what's critical, i think, more important than even whether we go to 4.3, 4.25, is what is happening in the u.s. economy, and how much benefit have we had over the last, you know, six months, let's say, from factors that aren't going to be re recu recurring, like lower oil prices and i think that's going to be the much digger determine determinant. >> you are already short tlt, karen, that was your final trade yesterday. >> yeah. i mean, it wasn't a one-day -- i'm not a one-day trader i do think that that auction will be important. and i think that, i mean, we think of this as such a crazy, wow, you know, 4.0 8, oh, my gold it's been 4.08, we go back to,

what did our parents pay for our mortgages? >> 12%, whatever it was. >> so, i feel like we just have to get -- i'm not as alarmed by it, that's why i think it could go higher. coming up, we'll find out what america's banker, jamie dimon, had to say about the fitch downgrade. all the headlines from our interview. and amlepple and amazon rept tomorrow we're breaking down the options action we'll be right back.

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welcome back to "fast money. an earnings alert on qualcomm. a revenue miss, cited continues macro headwinds. kristina partsinevelos has the details here on-set. >> well, the pc market may have had a drop, but the smartphone market is still looking for a bottom qua qualcomm blaming the 25% drop in smartphone weaker industry revenue and slower than expected recovery in china. keep in mind, it makes processors in the higher end android phones the weaker environment, as well as weaker china, leading to elevated customer inventories, and why management says drawdowns will, quote, be a factor through the end of the

calendar year. on the call right now, the ceo warning of, quote, additional cost action to deliver maximum value in an uncertain environment. the cfe o adding the cuts will come in 2024 we don't know if that means job cuts but to your pitch to me, your toss to me, talking about the guide, the midpoint of their guide was $8.5 billion, lower than what the street was anticipating some of it has to do with the u.s. export ban. management just said on the call right now that the september and december quarters wouldn't have revenues from huawei since they can't get a license to ship 5g ships. the company guiding for that and we have to bring it up a.i it was just asked on the call. how is your model going to change with a.i. they said, it will be an inflection point, because they're working withmeta, right, to provide the language

model in 2025. but you can't monetize it just yet. >> nay will provide the chip in 2025 >> the chip will be available in 2024 for phones, so, who knows, like, how long we would get it in the actual phone, but pretty incredible you would have a large language model capabilities on your phone for all of the app uses. >> i would think that would already be -- not in the guidance, but something tangible they could actually model. >> he used the word inflection point. it reminds me of yesterday with amd and the number of engagements, right >> yeah. well -- kristina, thank you. kristina partsinevelos tim seymour, what do you think of the quarter >> well, the quarter was not as good as people wanted. after a 30% move in the stock, despite trading 14 times, so, not expensive and -- i think relatively interesting, that's what you get we haven't had this smartphone recovery that was the whisper coming into the numbers. they've reaffirmed at least a high single digit drawdown in

handsets you add that to still an inventory clear, which has been headwind to margins, so -- the numbers aren't terrible. the move of the stock going into this was 30% off the recent run. tops out at $135 twice now that's major resistance. >> yeah. grasso >> and the -- i believe the 200-day moving average is right around 120, between $119.25, somewhere around there when you look at qualcomm, if phones are weak, the stock's going to be weak it's -- there's very few names in this industry that you have this equals that, qualcomm -- phones weak, this is weak. >> and apple -- >> exactly >> apple >> is everybody else losing but apple is okay? or -- >> or is apple not okay? >> right or is apple not okay >> it trades like it's a-okay. >> maybe we're in an environment where really good isn't good enough >> you could make the case that overall smart phones are

decreasing, but apple is -- apple is selling more of a share. but i think everyone's going into this apple print knowing that smartphones have been on the decline. and we have the upgrade cycle in september, so -- there's a lot of things that could make this number a little vague with apple, but i think there's room for apple still to thread the needle, even with smart phone sales coming down. >> and we've been setting record high after record high, julie, and so, you know, this -- the super cycle, or upgrade cycle, whatever you want to call it, the services revenue, it's the same bull case every single time, no matter what the environment to why apple should trade at this premium. why apple should trade at these prices you buy into that this time around >> i think it's hard, right? if you think going into this quarter, i agree it's going to be pretty squishy in terms of figuring out what the upgrade cycle for the 15 is going to look like, if it's going to be worth it, and part of it is un understanding how the mix is start, evolve over time.

can we get more involved with services what are the opportunities for them there we know that the headset is not it it's not going to be it for this business in the very near term so, if phones are going to be softer, which they probably are, where else can we see a kind of inflection in terms of revenue and i think what it really comes down to, what can you sell that's as profitable as the iphone there are just not that many things that are like that. i think it could be a challenging quarter, particularly when you see how much the multiple has expanded for this name, but again, because people have been so reticent into this rally, i do feel like they cling to certain elements of quality, and apple certainly has that, too. >> all right, coming up, wall street's biggest banker went on the record we'll dive into why he's so bullish on america. but first, the afterhours action continues we'll gove a slew of results to get you. we'll bring you the numbers and the trades next. there's a lot more "fast money" to come.

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welcome back to "fast money. we have more earnings for you robinhood and paypal tumbling in the afterhours kate rooney has the numbers. >> paypal eked out a revenue beat we'll start with paypal. we have two here, but eked out a revenue beat in the second quarter. earnings were in line with expectations, but pressure on operating margins is really overshadowing the strong consumer spending paypal saw margins were below what paypal had guided to. this is from the credit portfolio on the small business lending side for paypal. they increased loss provisions there. ceo dan schulman telling me that we have losses under control, as he said.

we've taken those provisions and those will play out, you'll start to see acceleration in our operating margins as we exit the year expects 100 basis points of improvement. schulman also saying on the call that e-commerce is recovering, as consumers spend more on retail, versus travel and entertainment. paypal's guidance was brighter than expected. also just saying on the call that paypal is in the very last stages of the ceo search so, that's been a bit of an overhang on the stock. uncertainty about who is going to lead the company. onto robinhood, dropping here afterhours, despite reporting a surprise profit for the second quarter. cfo telling me that the profit was because of some of the cost control and maintaining that cost discipline. higher revenue guides driven by higher net interest revenues things like securities lending and then net interest income so, that was partially offset by lower transaction base revenue, payment flow especially in crypto-currency trans actions. those were down 18%.

they added new products. robinhood is announcing 3% matching on retirement accounts. improved outlook on operating margins. average revenue increased. they did lose a million users in the quarter which is weighing on shares, down more than 5%. >> almost a million? how many do they have? >> about 11 million. i have to double check here. down significantly >> that's a lot. >> from the high, you know, around gamestop and when this company went public. but that's a big worry about more competition, less action per user and increasing revenue because they are expanding into retirement accounts, things like credit cards and some of the lending businesses but there's fear about losing out to competitors here. >> and the reversal of the ripple decision, would that -- if that held up, would robinhood have to take off a lot of products they currently offer to trade off the platform >> so, they started delisting certain crypto-currencies. they have been cautious about -- and slower at the height about

which they were adding, and so, that they're in a bit of a different position than coin baste. they offer fewer crypto-currencies in general, but it would most likely hit that side of the business, though as crypto-currency market has slowed down a lot, it's not as big of a slice of revenue for them as it was when they went public we've seen it dry up a little bit. it's factored into the company's profits here >> all right, kate, thank you. kate rooney. julie biel what do you think? >> yeah, i mean, look. the metrics, the core life blood of this business is obviously its users and users are not really flocking, even though tupperware is very much in vogue in terms of being able to trade that the thing that i -- that really struck me is, if you look at their guidance, they talked about bringing down their stock base compensation to $900 million. this is a why that is expected to make $1.8 billion so, they are paying themselves half their revenue in stock-based compensation

i love when people tell me that's a noncash expense no one expect that if it wasn't worth anything i think this is pretty bad so, yeah, not a big fan here >> i agree with that accounting, yeah so paypal was more interesting that take rate, the important factor, that was down, that was a miss i think the ceo thing has been going on a long time and that will be really important, if they get someone great, i think the stock will really react nicely. you think they would be able to, but i'm surprised it's taken this long, it makes me think they were down the road with some candidates and it didn't work out >> yeah. >> all right, coming up, jamie dimon on the road and on the record cnbc caught up with the jpmorgan ceo in montana earlier today why he called the downgrade, quote unquote, ridiculous. and we still have reports from clorox and zillow don't go anywhere. back in two. missed a most of "fast?"

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money. sea of red on wall street today as the fitch downgrade ignited a selloff. the dow down 350 points. the nasdaq dropping more than 2%, registering its worst day since february earnings movers we wanted to flag for you etsy with a beat on the top and bottom line. but q-3 revenue coming in light, sending shares lower to the tune of 5.5%. door dash reporting a mixed quarter. posted a larger than expected loss, a beat on revenues door dash set new records for orders in the second quarter as it grocery and convenience deliveries accelerated that stock is up 4.4%. jamie dimon sitting down for an exclusive interview on "power lunch" with leslie picker. he took the opportunity to trumpet the strength of america, as he takes his annual bus tour of the nation. leslie is with us now from bozeman, montana seems like jamie could have been holding pom poms, holding a flag, baking a pie >> a huckleberry, pie in monta.

he told our audience to leave new york, leave california, get out here to montana and idaho and, you know, we met up with him here in bozeman, montana it was a stop on his annual bus tour where he meets with clients and visits bank branches in our interview, i asked him about his take on the fitch downgrade in the u.s >> it doesn't really matter that much you know, the markets decide it's not the rate names that make these big decisions number two, they point out issues which we all knew about but number three, most importantly, american public, this is the most prosperous nation in the planet it's still the most prosperous nation in the planet the most secure nation in the planet i would point out that there countries rated higher than us, aaa, but they live under the american enterprise military system to have them be aaa and not america is kind of ridiculous. >> he said the big picture in

america right now is resiliency given the strength of the consumer and their balance sheets the level of innovation, as well at the same time, though, he pointed out the central bank is taking liquidity out of the system, and we haven't seen the full effect of the tightening and fiscal spending kind of running concurrent with each other. i asked him if he thinks the fed has done a good job here >> i think they did a good job early on i think it's quite obvious it was too much it wasn't just their job, you know, fiscal spending and monetary spending. i think they took too long they kind of said that they caught up by going to 5%. it made sense to, you know, pause for awhile we're going to see they may have to go higher i don't know, but they've caught up i have e norp mouse respect for jay powell >> i asked him if he could see a po policymaker jamie in the future. there are lots of people out there who have been pushing him to make a run for president, for example, but he gave me an

emphatic no, melissa >> that's interesting. he's been known to make weather analogies recently i wonder if he thinks it's blue skies ahead for the u.s. economy, if recession is completely off the table >> yeah, it's funny you ask that it just started raining here as this interview started but i did ask him about his downgrading assessment, because it was just a year ago when he said there was going to be -- there could be a hurricane, whether it's ar hurricane, he didn't know. and then he kind of downgraded that assessment to storm i asked him about that, and he said, you know, basically, his assessment kind of remains the same he thinks gdp growth is good he thinks the state of the consumer is solid. he thinks regulation is getting in the way of additional economic growth. but he pointed out two risks on the horizon, kind of the storm clouds number one is qt, which we talked about, and number two is

the geopolitical situation, specifically what he's seeing in ukraine. >> and my last question, i know it's raining, i don't want you to get caught there, does he actually ride the bus the whole time or does he take the bus to t the -- to the limousine stop and jump in another vehicle and get on the bus later on? >> he took the bus when i was with him i'm not quite sure his travel plans when i'm not there, but it was a very ambitious itinerary, we'll put it that way. 1 idaho, montana, washington state, it was honestly the nicest bus i've ever seen. i've seen a lot of greyhounds. i don't know if that's a fair comparison >> all right, leslie, thank you. leslie picker in bozeman, montana, for us. karen, we know you love jamie. >> i do. >> what did you think of his thoughts >> of the bus? >> your thoughts. >> the bus seemed nice not surprising he really seems to be invigorated out on the road,

meeting people, going into branches, he really gets, you know, he seems to be excited about that i don't know, he seemed optimistic i think he would be an outstanding president, actually. but i don't think that's going to happen. you know, i'm long jpmorgan. it's going -- it's going to bounce around in a bad mark, but i love the first republic acquisition for them and some of the businesses that weren't working will work. he said he didn't care about whether m&a was up over time >> tim >> i think the banking sector oversaul, the regulation is going to be a lot less significant than people think, at least for the money center banks that have the fantastic balance sheets i think, you know, a lot of this is business as usual citi bank and bank of america need to get back to pre-svb dynamics i look at the credit dynamics out there right now, and these banks are not reflecting that

environment. higher rates ultimately should be normalization, and i think this is something that you stay higher, you follow the banks into these higher rates. >> all right, coming up, from home buying to house cleaning, we've got lots of earnings action in housing. we'll have the results from zillow and clorox next. plus, the countdown is on to one of the biggest -- to the biggest of the big tech earnings tell you how traders are setting up ahead of apple and amazon more "fast money" right after this

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welcome back to "fast money. a pair of earnings alert starting with zillow a top and bottom line beat adjusted earnings actually came in more than double what analysts expected. diana olick is here with the numbers. >> that's likely due to lower guidance and i'll get to that in a second still, as you said, zillow had a strong q-2 beat. rich barton said zillow outperformed the industry for a second quarter, noting progress on improving touring, financing, and renting, and rentals are the headline strong traffic and growth in multifamily properties, so, not surprising that while

residential and mortgage revenue decreased, rental revenue increased. there was talk about the super app, which is designed for a seamless experience from search through closing. revenue guidance is a little low for q-3. $458 million to $486 million versus estimates of $488 they pointed to high mortgage rates causing sellers to stay put, resulting in record low inventory. as you know, that is the mantra of the summer. they said, we continue to expect it will take time to normalize to higher sales levels melissa? >> all right, diana, thank you karen, you're in this one. >> yeah, i am in this one. the past quarter, i didn't love the guidance i do feel like maybe they're sandbagging, we'll see i think the call is going on now, i'll listen to it later, but i love the business, i love their spot in it you know, at the asset light imagine if there were existing homes that came on the market? >> right >> imagine that world. and what that would do for zillow, so, i'm hanging onto it. had a very good year

after last year, a bad year, when it was one of my letters -- >> oh, was it? >> yeah. >> what was your -- >> zombie. >> that's right. >> the chart on this one, if you look at year to date, it's up 68%. then you go back a couple years, the stock was over $200. so, if you -- it depends on what prism you look through don't focus on year to date performance. let's move onto clorox shares popping issues stronger than expected guidance broad-base consumption and higher pricing help ed >> the stock up 7%, melissa. higher prices helping clorox deliver double-difrjt organic net sales growth in all business categories health and wellness business was driven by an uptick in cleaning sales, easing supply chain pressures. clorox also saw household product sales go 14% in the quarter, driven by cat litter and barbecue grilling.

its international business beating expectations while their full-year outlook came in better than expected, the ceo on the call says 2024 outlook is a bit more cautious she expects it to get, quote, tougher for consumers, and price elasticity to normalize. clorox is up in afterhours and it is outperforming kimberley clark so far this year mel? >> all right, sima, thank you. so, price elasticity to normalize, means they can't get the price hikes they need to keep up. you know, we've heard this from a lot of the consumer staples so far, tim, driven by higher pricing. but volume seem to be declining or feeling the pressure here, because consumers are finally saying, i'm not going to pay that much nofor a bottle of pine sol anymore. >> yeah, and i don't really know what health and wellness business means for clorox, but that's another topic altogether.

i think this was a significant beat so, this was, you know, doesn't surprise me to see this kind of move here. at around 28 1/2 times now, you know -- there's nothing that i think is that extraordinary. i believe pricing power is a thing of the past for at least some of these staples, that have passed down a lot. so, i think it's been largely very range bound this stock traded like a tech stock back, you know, march of 2020 to august of 2020, and has been all over the place. it's, you know, right around here on a pre-covid level, and a trajectory both with its -- its multiple and where it is on the chart. i don't think there's a lot more to do here and i wouldn't chase it >> yeah, i mean, karen and i were looking at the valuation, you mentioned it, almost 28 at this point on a forward basis. more expensive than alphabet and meta and i understand you are buying clorox for a very different reason than you are buying these two other tech stocks, julie, but it understand scores the notion that there is such a premium to these companies still, even in this environment.

>> yeah, i mean, i think it's really interesting, because it seems like a lot of investors are trying to barbell themselves, in terms of the risk curve, where they are taking on more risk for these a.i. companies, but they're trying to back test that to have a butt tres in terms of staples, and so, you see those doing really well, but oh, my gosh, i would much rather own a monopoly in search in google than i would want to own clorox, where we are getting towards the end of, how much more can they really put in terms of pricing it's not a great thing to see volumes declining, so, i mean, for me, this is very easy to pass on. >> coming up, the two tech monsters on deck to report torment. what can we expect from apple and amazon we'll hit the options pits for a look at that that's next. stick around refa meyinwo busine but to advance how the game is played. now's the time to see what america's largest 5g network can do for your business. power e*trade's easy-to-use tools,

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welcome back the countdown to the biggest of big tech earnings is on. apple and amazon reporting after the bell tomorrow. the stocks each up 50% this year but after today's fpull-back, hw should shares react to the numbers? we talked about apple. tim, your thoughts on amazon here >> well, i think amazon is an aws quarter, and i think there's at least some more pressure there, and that's where the stock has been, but amazon has

underperformed the megacap tech space, you know, on some level, remarkably, especially when you consider the strength we've seen across e-commerce, and the recovery there, so -- and with apple, i just would go back to those qualcomm numbers, and what is going on with smartphones, but i'll counter that and say, what we know about apple is that they're international handset market share has gone up from 16% a year ago to a little over 20% in the last year, so, they are outperforming the competition even still in the soft backdrop. >> yeah. steve? >> yeah, it's all about aws for amazon it's always been the aws story, both up and down so, if there's any hint of positivity, growth going forward or they guide higher, the stock will pop if not, you're going to see the stock fall off a cliff >> just the last quarter, maybe it was an interview with andy jassy, the ceo, that companies. >> reporter: were being rational as their spend they have have pixie dust of

a.i., but that enterprise consumers pulling back a little bit, or really examining how they spend on cloud in general and then you have the consumer potentially showing some tradedown -- >> yeah, well, though the a.i. works both ways, right they're spending, they're spending, and i do think that there is spending to be had on aws cloud. i also, i mean, you know, they do -- i think feel like we're a little behind in terms of the sentiment around, you know, who -- who is the leader, but he didn't really seem to care and this is, like, the second inning, at most, and so, they obviously only look at the long-term, and this is a company that really does not care about their stock. >> right, sure the options market, though, is feeling optimistic we're breaking down the action chris? >> hey, yeah, you know, so, for amazon, the about ppetite remaio

the short money calls. we saw a lot of activity in the amazon 140 calls expiring this friday unless it is an outright miss, these can be really supported to the underlying, if dealers huge off their post-event risk. when you look at this, amazon pricing in about 6.8% on the friday straddle, historically, it's been 6.4%, so, you know, the market is hoping for an upside move in this name, and it's kind of expecting just a little more vol. >> all right, chris, thank you for more options action, tune into the full show that's friday, 5:30 p.m. eastern time up next, final trades.

sweat isn't sweet. it's salty. lmnt. more electrolytes. zero sugar. you feel the difference when you get it right. stay salty. time for the final trades. tim seymour? >> today was about rotation into health care and staples and i think unh after the q-2 numbers showed better tailwinds. unh. >> julie biel? >> you know, the ogs of a.i. is simulation software. health care software, really interesting. >> karen finerman? >> yeah, i want to say, amazon

cares about their stock price over time, not ever. i'm short igv an added to that short today. >> steve >> y.o.u added terrible news flow week last week. the stock actually had an earnings beat,