so that would have made her ecstatic. ♪ good morning happy friday welcome to "street signs." i'm julianna tatelbaum >> and i'm arabile gumede. these are your headlines amazon shares pop nearly 9% in extended trade as cost cutting efforts help the giant on the on top and bottom line. that as apple shares sink lower. equity markets in europe shrug off the u.s. credit rating downgrade as they look to close on the upbeat note

and investors are looking to the fitch fallout. and a second quarter earnings and buyback plan is dam dampening the rise in profits. the ceo speaks out about the performance. >> the past year is a 1.1 billion euro and you have to stretch low to find similar results. it is more than a decade ago the non-farm payroll reports lose and the u.s. economy forecast adding 200,000 rin jul. welcome to "street signs." apple has posted a mixed bag for

the third quarter beating soft wall street expectations on revenue and earnings per share, but reported the third straight quarter of declining sales nearing the longest streak in 20 years. apple fell more than 2% in extended trade putting the $3 trillion valuation at risk if declines continue after the open this after the cfo said investors could expect similar performance in the fourth quarter suggesting the company's numbers could miss analyst estimates on revenue the upcoming iphone 15 release could turn the fortunes around amazon shares soared in extended trade after second quarter earnings of 65 cents a share. almost double analyst estimates and beating forecast on more than $134 billion of sales the giant gave positive guidance for the quarter putting the top

end of the forecast around $5 billion which is above analyst estimates. the web services division posted the sixth slowest quarter of sales growth, but andy jassy remains bullish on the division and the growth figure is still at double digits a lot of earnings to unpack with arjun joining us at the desk arjun, i'll start off with the go with apple. were we really expecting too much here? june is periodically seen as a period that is very slow for apple because of the run-up to the new phone or new device. should we have seen this coming? it wasn't going to be blockbuster earnings >> it wasn't high expectations for the quarter for apple, but they needed to show stability. that is where it got murky

the revenue was down they needed to meet expectation. they found that difficult. mac and ipad specifically. and the company doesn't issue forward guidance, but they expect revenue to fall again in september. the outlook wasn't quite rosy. we have been talking about recovery for certain sectors in the second half. it seems like consumer electronics with a set of uncertainty with smartphones or pcs and that is feeding through to apple we see that feed through from the chipmakers we heard from qualcomm and amd that was, i think, why you have seen the drop off throughout for apple with the low expectations and they could not hit those in certain areas. >> arjun, you talked how china is a key market for apparent

yest - for apple yesterday on "squawk box. >> i said it was to be resilient. up 8% as well as the broader smartphone market is hammered there. the reason for that is the fact that you are seeing the high end of the market in china continue to grow. average selling price of smartphones in china has been on the rise for the past few quarters that is really feeding in to apple's strategy in the high end of the market. iphones are not cheap. we know that in china, it is a product that people want to buy if they can afford it as well. that's where in china, they managed to find success and stay resilient. >> what about amazon we had amazon come through and see blockbuster reaction to the results post-market yesterday. it is not often you see 10%. >> a lot of bearishness for amazon

the expectations were lower and like apple and other mega cap tech giants we've spoken about this quarter just gone, the job was around stability and guiding forward to say the business now is in decent shape and we are ready for another leg of growth. that was the story with amazon the fact that revenue returned back to double digit growth. the key, as it is for the accounting of 70% of profits, aws. revenue of $21.2 billion in q2 12% growth that was slower growth from the prior quarter, but better than the market feared. operating income jumped versus the prior quarter as well. that sequential quarter on quarter growth we see continue and amazon's guidance for q3 was critical guiding for 9% to 13% revenue growth ahead of expectations

amazon's business after the cost cuts and reorganization and focused discipline on costs is managing to get in position to get that growth number back up. >> cutting costs ex-p exp expense. we have josh here with us on "street signs. thank you for joining us as arjun ran through the apple earnings, it doesn't feel there was a surprise there with the numbers. the market was prepared for the result did we learn anything new? >> thank you for having me on the show i appreciate it. the stock was priced for perfection apple benefitted from flight to quality for the year apple stock reached new all-time highs. given the fact that was the case, people expected perfect

numbers. i think bulls got what they viae growth the fact that the mac and iphone revenue was weak and going forward means we have to face it apple's products are penetrated and it is not a growth story with the hardware. you have the slowdown in the overall consumption of electronics. you have comps and high penetration for apple in general with the stock which is priced for growth that is more of a reflection from the quality of the name and fact that people felt safe running there in the year than the numbers were putting up. i wasn't surprised with the stock reaction if it was something other than apple, it would have been down more you know, you see 2% down in the aftermarket and may be down more today. that is appropriate for what

they set up. >> when is apple going to return to top line growth >> i think we will see the new iphone release and i think that is something that is indicative of is it a penetration issue for apple or they can't grow iphones more because so many people have them around the world, simply put, or is it an issue with more market share i think it is something tbd. i think apple needs to come up with a little bit more innovation or new products to penetrate the market from the iphone perspective, people already have them i think that is just something that people need to come to terms with with regard with the growth trajectory going forward. this is why they are focused on the services elements of the bull case. >> it is arjun here. this is something we have been thinking a lot about here.

there are the short-term issues in the smartphone market and structure issues people holding on to their phones longer and refurbished. what would you like to see from apple? is it something else in the handset front? >> i think on the handset front, i think apple has done a good job with it and should continue to do a good job with that content creation think of the engagement for apple. the apps like instagram and people recording content and apple has a good camera feature. that is something apple should continue to innovate going forward. the more they can on the phones and create content ahead of the competition, they will penetrate that with the generations and getting incremental market share from anybody else that is out

there. i don't know that a foldable is something that is a big impact if you think about it, people like apple products or they don't. it seems like the biggest driver with the two is what you can do with the phone and content creation is most important to the generation these days. >> just in terms of apple's future as you think about the longer term picture, there is a lot of excitement made about president company's push into india, but it is a tiny portion of the overall market at the moment for the company what is the long-term potential for this in india or is it overblown? >> i think the long-term potential is huge. a lot of tech companies have had success in india you see companies growing in india. india is a market with billions of people with smartphones and apple has not penetrated recently i think apple going to india gives back that penetration story they had when they went

into china i think it is an important element to drive growth going forward. for that growth multiple on the stock to hold up, it needs to be viewed as a growth company penetration is the easy way to get that >> josh, arabile here. i want to switch paths to amazon the growth forecast numbers with the stability. that story has con tinued to grow amazon had a better quarter than apple, one would say would you own amazon over apple in this case over a five-year period if you had to pick one? >> 100% and we do. from the amazon perspective, the stock is really in a great spot. if you look at one of the only names which hasn't gone back to all-time highs like the other large caps have. it has a large trajectory in

front of it. i covered amazon for 15 years. that was the best quarter i have seen from them in the sense of 26% ahead of the street on forward ebit guidance. this is back ebit. no accounting trickery going on there. it is really showing the business is firing on all cylinders and accelerating growth trajectory. you have them managing costs well and on the bottom line. it is the large cap stock trading below the relative multiple the stock is cheap relative to where it has been before unlike apple, if you look at the stock, it has high multiple with the historically low growth rate super high price earnings to growth ratio amazon is the opposite historically low multiple, but feeding numbers faster than before and growing operating income faster than before.

we would choose that over any other large stock at this point. >> josh, thank you we have talk about the advertising dollars which have gone to amazon josh, i appreciate the time with you. the founder of musketeer partners for more how andy andy jassy kust -- cost cutting efforts is going, go to cnbc.com. we have fitch saying the falling eurozone inflation puts the ecb european central bank rate peak within sight near the peak of the interest rates for the ecb. fitch rating is saying it expects inflation in the eurozone will fall to around 4% by the end of the year 4% is a figure for the end of

the year ecb will probably not need to raise its near-term inflation forecast further in the month of september. quick reminder of what the ecb had said in the previous meeting was it would see inflation fall from the current 5.4% this year to 3% in 2024 and 2.2% in 2025 fitch then saying the ecb will probably not need to raise its near-term inflation forecast further when it has the next meeting in september those are the latest data points coming out from fitch. >> fascinatifascinating. coming up on the program, fallout from the fitch u.s. downgrade continues. we have the latest on the investors and how they are trading treasuries after this break. ah, these bills are crazy. she

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welcome back to "street signs. the bank of england has hiked rates by 25 basis points delivering the 14th straight

increase and raising borrowing costs. the committee was split three ways with six members voting for the move one voting to hold rates steady. two members backing a 50-point hike joumanna sat down with governor andrew bailey and asked how long rates were remaining elevated. >> our job is to get inflation down to the 2% target. i am encouraged by the fact we have seen the move in inflation and i expect more to come this year the question for us now, of course, is what the path from here remains we remain evidence driven and look at the evidence the next time we meet i emphasize the data point that there weremany paths from here to there to the 2% target. i don't want to suggest we have one in mind. one is to follow the market curve which comes up and goes back down again.

the other is the constant rate profile which keeps it where it is today both of those lead us back to target around the same timeframe interestingly. >> it looks like the european bond is trading at 4.5% for the gilt the 10-year bund is higher this morning at 2.6%. italian btb is 4.28% turning to the treasury markets. a mixed board there. yields moving lower toward the long end of the curve. 10-year is down to 4.18% we moved higher in recent days 30-year bond at 4.3% the front end of the curve is higher at 4.9%. warren buffett is downplaying the risk fitch situation for the u.s. telling cnbc berkshire has been buying treasuries an the short end of

the curve for consecutive weeks and will continue to do so the oracle of omaha says he has bought $10 billion of treasuries the past two mondays and the next question is to buy in three-month or six-month lows. let's discuss with the head of the short-term interest rate trading at citi. i appreciate the time. i wonder with the 10-year treasuries seesaw to the worrisome levels of 2022 would you be panicked? >> no, i think it is natural for us to see the curve steepening as we see global disinflation from australia to europe and uk and u.s. we see the global disinflation which means the front end of the curve is moving in less with the

reinflation and curve steepening >> you see the likes of bill ackman who is shorting the treasuries and sawing this is a hedge against the high end are you in the same school of thought in. >> i think this is clear in the front end of the curve where the fed is trying to decide and a lot of the central banks are trying to decide where terminal is what wie are seeing here is we are close to the peak rates. the peak is going to come in the next couple of months. by the end of q3 or by the end of september, we will see the peak in rates it is a question of tweaking of will they deliver another 25 in september. the u.s. or ecb or bank of

england, the september meeting will be the last hike for all of them if they do it. >> it is interesting because when andrew bailey was speaking to joumanna yesterday, he said the boe is in the same place as the fed. you think we are close to peak rates in europe and in the uk as well >> yes when you look at the bank of england and the forecast yesterday, they said if they take rates up to 6.1%, that market implied path gets back to 2% inflation by mid 2025 if they hold rates constant at 5.25%, they get back to target in mid-2025. what is the point of hiking? it is baffling if they hike rates. they will shoot the economy without with getting the mandate. >> why go the extra mile if it doesn't have impact? >> absolutely. >> are you confident with one

more hike in september they will bring down wage inflation? that is the most concerning part of the inflation picture here in the uk at 7%. >> that is the question and that's why they mentioned some of their downside or risk to their forecast has crystalized in yesterday's report. there is so much left to be seen in the rate hike in the economy and they really want to start waiting. they have been mentioning the rate hikes will take some time to come through and they have been saying it for a year. now, all of a sudden, they come through and they start pivoting and hiking more? it seems strangse to me. >> what do you think of pricing in gilts right now in comparison to the other bonds >> i think the gilt market is interesting. it depends on the rate path that happens afterwards similar to what bailey was talking about in terms of how long rates stay at

that level that's the question for the gilt market i think the way the market is pricing it is we are going to see cuts into next year and i think that ends up being less likely, especially if they end up getting to peak rates sooner and they won't need to cut as aggressively >> i want to go back to inflation a little bit what i mean is are we likely to see inflation drop down to the 2% levels? the bank of england had the estimates happening in two or three years time we have seen inflation remain persistently high for some time. it remains at the 3% levels and that is a clear path to the 3% levels how difficult will the messaging have to be for the central banks in order to, you know, comfort investors? >> that's an interesting question i think inflation does seem very

sticky right now and in the previous ten years, inflation was more sticky on the soft side at 1.5%. they did a lot of work to get it back up to 2%. i think in the same vain going from 3% to 2% is going to be difficult. i think, really, right now we are saying it is not 10% it is a much better story than that. >> especially in the uk, right that's the big issue how close to -- we keep asking this question. we need to ask it especially with one more hike in place. how close to recession are we? the bank of england has not suggested one. the fed says they will pretty much escape one, too does this mean we will avoid it completely things are softening and we have seen a possible softening with the jobs numbers later today >> a recession is in a lot of

people's base forecasts. i'm not an economist i'll not say what the forecast for the economy will look like the market is getting comfortable with the fact that it is unlikely to be a deep recession. you might have a couple of quarters of slightly negative growth, especially with inflation at these levels. i don't think that will cause a lot of panic for anyone. >> okay. >> thank you for being with us always great to have you on. commerzbank shares slide we will have an interview with the cfo bettina orlopp after this break

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welcome to "street signs." i'm arabile gumede >> i'm julianna tatelbaum. these are your headlines amazon shares pop nearly 9% in extended trade as cost cutting efforts help the giant beat on the top and bottom line, but the shine comes off apple as

falling iphone revenue sends shares lower equity markets in europe try to finally shrug off the impact of the u.s. credit rating downgrade as they look to close out on a more upbeat note, but on the week, investors are nursing the fitch fallout. credit agricultures top after the second quarter beat. commerzbank's cfo tells cnbc every area is contributing to the bank's performance >> it is a 1.1 billion euro. you have to search low to find similar results. it was more than a decade ago that we have shown something like that. the non-farm payroll report looms with the u.s. economy adding 200,000 jobs in july.

it certainly has been a downbeat day across european markets nursing that fitch downgrade for the u.s. which impacted the markets across the week here. finally here seeing green across a lot of the markets in the european area. only the smi going down .20% investors digesting the bank of england's decision to hike interest rates by 25 basis points seeing inflation ease up, but not to the levels they like and worried about price shocks if those come to the floor. wage growth is playing havoc in the market a general sense of positivity and earnings coming into the picture as well. we will unpack some of those which have happened. the secretor split across the territory today. let's look at the european

markets for the week as i said, downbeat sentiment is where we see things and it really has been a big fall of 2% across most of the indices 2.5% for the ftse mib and cac 40 ftse mib with the best level since 2008 very early on this week and it fell away and the dax is at 3% this is what has moved on a lot today. we have seen travel and leisure lead the gains of 1.3% air france and lufthansa gained 2.5% that is pushing up the travel sector credit and agriculture is moving higher today so, too, commerzbank falling with the real estate being down as well as media chemicals following suit here are the news stories coming out today. credit agricole with net income

jumping 25% in the second quarter to just over 2 billion euro now the results were driven by the strong performance in the insurance and consumer finance unit nearly 6% higher is agricole commerzbank with a net profit for the second quarter that is a better than expected rise on the annual basis revenue increased 9% to 2.6 billion euro commerzbank said higher interest rates offset the previously flat hit of 342 million euro in the quarter following an unfavorable court ruling on polish mortgages. 3.5% down is the stock >> let's welcome sylvia to the desk and she has been speaking to the company sylvia, who insight can you give us as to were we see a notable

downward share pricereaction today? >> they did not give us a size on the share buyback program commerzbank had said in the past they were planning to come up with a share buyback announcement in the second quarter results. they did, but they did not provide daetails on that of the t -- on that. all in all, when you look at the results, they are solid. i would highlight that year on year that net profit jumped by 20%. revenues came in higher than expectations when you put all of this together, the commerzbank has increased net interest income to at least 7.8 billion euro this year they have better expectations for their performance in 2023. when i had a chance to speak to the cfo, bettina orlopp, i asked about the bank's performiance

this year. >> the first and second quarter forecast for the year and it is a record half year if you take the 1.1 billion euro of net income and then you have to search low to find similar results. it is more than a decade ago we have shown something like that it combines with the results which are strong with the capital ratio of 24% it is a decent number and pe every driver contributed to the revenues which are strong. the risk/reward was decent >> one with of the reasons why commerzbank performed well is the high interest environment in europe i asked the cfo about the expectations for further monetary policy decisions in the

eurozone she said she is expecting a pause. she said we are currently at 3.75% in the main deposit rate and she doesn't expect any changes this year or the next. >> wow okay a pause. a little aside from consensus. the question that a lot of investors have is how long the tailwind from the interest rates will last if the ecb doesn't do anything more meaningful on the rate front it is from that perspective which is encouraging with the guidance and they are not expecting more from the ecb with the forecast the bank will have a strategy update in november what are the questions for investors with the stock >> i would say when it comes to 2024, they are saying they will stick to the financial targets what wcomes after that is what w are waiting to hear from commerzbank. we had reports that they are expecting above 10%

let's wait for that detail on the ecb front, i would highlight that you have the guest previously talking about september being the final rate hike for the ecb and boe and even for the fed when you look at the eurozone, are we really now at peak? is this peak it will be interesting to monitor what happens there and on the bull market and bank perfor performance. >>sylvia let's continue the conversation maersk topped the second quarter numbers with the forecast in particular with ebita of $2.9 billion. the shipping giant raising g guidance rate and forecasting 9.5 and $11 billion. i got to speak to the ceo and

asked about the challenging facing the danish group. >> after the covid years, we knew the correction would come and it did unfold here in the first part of the year of what has been important for us is caution this through the contracts and relationships we have with customers, but also to increase focus on costs and making sure we are ready for the quarter and that is why we have been able to deliver this robust first half year. coming up on the show, investors are closely watching today's non-farm payroll print we will look at what you can expect after this.

welcome back former president trump pleaded not guilty in the attempts to overturn the 2020 election the forerunner for the nomination stood before a judge in the washington courtroom on thursday not far from the capitol building his supporters stormed on january 6th

ellison barber had this report >> reporter: trump stood for a 20-minute appearance the former president entering his not guilty plea to four felony counts on charges he conspired to defraud the government he once led and sought to overtiurn the election he lost. special counsel jack smith led the investigation and accused the lies that stole the election that culminated in the capitol attack before returning home to new jersey, mr. trump was defiant. >> when you look at what's happening, this is a persecution of a political opponent. this was never supposed to happen in america. >> reporter: the trump legal team forming a free speech defense. >> this is the first time. >> reporter: the indictment spells out that former president trump had a right to speak and to lie about the election

results, but the charges are centered on his alleged actions, including a scheme involving fake electors. outside the courthouse, tempers flaring and opinions clashing. >> i hope truth prevails i hope he will be held accountable for his actions. >> not unfair in america we play fair this is not playing fair he is a frontrunner for the president. >> reporter: a trial date will be forming as the mounting legal troubles are on a collision course with the campaign he is due back in court on august 28th. that is when we could learn more about the three criminal trials the former president will have to contend within th in the comg year in washington, alice starr, nbc news. we have a bounce under way

we have stabilization after the negligenative momentum plagued e markets. the direction is certainly interesting. cac 40 up .40% ftse mib in italy up .20%. ibex up .20% we see another pullback after the disappoints update in the chemical space the smi is down .20% this morning. now week to date here with the picture. the narrative for the week with resilience coming after quite a difficult run for the european market you have the dax down 3% week to date to the cac 40 in france the spanish market down 3.5% broad based losses for the week as investors become jittering on the back of the fitch downgrade of the united states credit rating it could be the fact, also, that

we are seeing bearishness in the market and concern with the economic outlook ftse 100 is down 2.1% week to date the u.s. markets here which are poised to open all three majors are looking at stabil stabilization. green on the board there after the markets continued to sell off yesterday. the pace of selling did moderate s&p and nasdaq turn in three straight days of losses. the size of the pullback yesterday was not what we have seen in previous sessions. the apple and amazon tech results yesterday after the bell certainly coming into focus. those are two big names to watch today. the companies represent 20% of the nasdaq's value it will have a big impact on the trade today the decision to downgrade the u.s. credit rating is the story of the week. take a listen to the comments.

>> it doesn't matter that much the markets decide not the rating decisions number two, we they point out te debt ceiling crisis. this is the most processed nation on the planet the most secure nation on the planet i would point out there are countries rated higher than us at aaa, but they live under the american enterprise military system to have them rated is ridiculous. >> the u.s. got downgraded in 2011 the markets dismissed it and correctly. the rating is a slow-moving signal it doesn't take a genius to understand the fiscal profile of the u.s. is worse than it has been the governance in charge of public debt is worse than it has been it is not comparable to the other aaas

>> the warning shot by fitch is this, i don't think it will take 12 years for moody's to step up to the plate that's all i will say. if they are the run ones watchi, we need to do risk management. we do nothing at all until we get to the cliff every year. markets are eyeing the non-farm payroll report today which is the fight against inflation and whether it may finally pause the hiking cycle the u.s. is expected to create 200,000 new jobs in july in what is the smallest monthly gain since december of 2020 unemployment is holding steady at 3.6% and hourly earnings up 0.3% michael sonne nonfeld is joininu now from tiger investments what is the important issue with

the non-farm payroll report for today. >> obviously, the numbers will indicate the direction of the economy. our members who are running businesses are already aware of the tight labor market normally, that would be infla inflationary inflation seems to be coming down, so you have mixed signals. if you are running a business, that is what you need to look at here. >> i'm familiar with tiger 21 which is a group of investors who have insight of how the economy is doing how would you describe your members characterization of the health of the u.s. economy right now? >> our members are running businesses these are some of the most successful entrepreneurs around the world in the u.s. and europe in the u.s., our members were in a wait-and-see mode.

they have been predicting recession by a majority of members last year. that has somewhat abated the labor shortages in the clean energy sector where you are trying to build new and renewable power plants and so forth means it is tough getting labor. it is an unusual situation on the one hand, the inflation is abating a bit, but the bank of england just raised rates again and maybe will follow one or two times again this year it is a different environment. it is not all green lights and it is certainly not all red lights a lot of the numbers are looking great for american businesses as you see that across the board. >> michael, you see the expectation of recession is abated, but it is still there. it is still a key that recession is still possible here especially with one more rate hike or more anticipated still >> very much so.

you know, sometimes when you get to the top or bottom, you get mixed signals. there are a lot of mixed signals in the economy right now mostly our members, as an example, are looking for an all-weather portfolio to benefit from the upside and has real downside protection. on the one hand, 50% of the investments are in private equity and real estate on the other hands, we are carrying 11% cash to make sure if there is a downturn, you don't have forced liquidations when you force to liquidate, it is always at the wrong time. that is the biggest ding comes from we want to be protected from th downside >> michael, what offers a middle ground with the non-farm payroll numbers which shows the economy

is cooling, but not enough to suggest a rescisscession is definitely in sight? >> if the numbers miss the target by a small amount and came in lower than projections, members would see that as the environment that they are seeing if there was a big drop, numbers would start wondering if there is a change about. i think members who are running businesses with chapters all over the world and in europe for exa example, the numbers for american employment will be weighing against concerns of the ukraine war and could that spiral out of control? our members are not just making stock bets, but looking to start businesses and add capital to businesses they are on a conservative footing generally and as much

today as they have been for some time, people do see some similarities to ten years ago with the great financial crisis when it was coming to an end and still questioning where it is going. they are concerned, but generally long-term bullish while preparing for the downturn >> michael, you mentioned spending plans the most difficult part of the last several months is lack of visibility and uncertainty around the rate outlook and broader macro outlook. how would you describe members with cap x spend and willingness to invest with the uncertain outlook? >> when you have a business that is functioning well, the broader outlook is a little less important. if you take the real estate indus industry, as an example, which is obviously intensely around

debt and interest rates means you have to separate the classes of real estate because office, no matter what the rate structure, is creating so many mixed signals and so much vacancies in the post-pandemic world and we don't know where offices are going, but industrial is the opposite even with a little more difficult rate environment, industrials are typically on fire in the u.s. and some of europe as well because of the shift of consumer behavior to last-mile delivery rather than going to the retail store. as much as the interest rates are critically important, it is less so with each business. >> that is interesting just to tie everything together, it sounds like your community of business leaders has followed a similar narrative to what we have seen from market participants that we were expecting a big recession and

now the concerns have eased. we may, in fact, get a soft landing. still, tiger believe withes this -- believes this is comparable to 2008. is there similar risk? >> i can't speak to the complacency in the market. we manage about $150 billion these are some of the best entrepreneurs around their large cash holdings of 11% is not only for downside protection, but ready to pounce on an opportunity. a lot of our members say we're still open for business. it's just the bar that you have to jump over to catch our capital has to be higher because we want more opportunity on the upside to free up cash reserves. they are there and ready to pounce >> michael, thank you so much

for that i appreciate your thoughts this morning. we will be looking out for those numbers. michael sonnenfeldt. founder of tiger 21. for the breakdown on what to expect on the jobs data, head online to cnbc.com we can unpack the futures numbers. 200,000 non-farm payrolls expected to be added for july. uptick now in the fair value in the u.s. markets. >> that is it for the show i'm julianna tatelbaum >> i'm arabile gumede. "worldwide exchange" is up next.

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it is 5:00 a.m. at cnbc global headquarters. here is your top "five@5." apple iphone sales slump as the company gets set to do something for the first time in 20 years it is not a good thing stock is falling in the pre-market. a different picture from amazon that stock is surging after a blowout second quarter that tops every estimate on wall street. we have the highlights coming up. then, investors also bracing for the july jobs report and what a middle of the road number could mean for the fed's