good friday afternoon, everybody. welcome to "power lunch. alongside kelly evans, i'm tyler mathisen coming up, a just right dobbs number even though it came in short of the estimate, markets are saying it is enough to keep the economy out of recession and the fed may be on the sidelines. the other bit of news boosting stocks today, strong earnings from amazon, especially in the

cloud business we'll dig in to those results. >> thanks. checking the markets right now the dow is up 136. the s&p up 14. these are about a third of a percent. about half the gains we saw earlier on, while the nasdaq is hanging on to its rise, and it's been leading the pack all day. as tyler mentioned, check out amazon up 10%, nearly $150 billion in market cap added after its earnings report last night it's also boosting other cloud stocks like data dog and snowflake, which are among them. apple falling after posting sales decline for the third straight quarter there you can see there is snowflake and data dog apple down 3.5%. but let's get right to bob pisani with the question we posed off the top. is this the perfect goldilocks jobs report? >> the important thing is nobody is that worried about apple down 3% it's the jobs report bottom line is job growth is slowing down but not too much that's what kelly means with

goldilocks it was afine needle to thread, but they really did it on this jobs report. 187,000 versus 200,000 expected. i want to show you the ten-year yield. that's what everybody has been watching when it goes over 4%, the market flutters it's happened several times this year it happened again this week. it's still over 4%, but the trend is moving down that's a good sign and markets are much more stable on that leadership this week, well, it's been all over the place. yes, amazon is the number one leader because of the big move up today on earnings but we had nice moves up in some of the industrial names caterpillar, parker hanson, all in the industrial groups, they had a good week. clorox had a great earnings report that had a nice move up. if you had one great move up in a sector, it had to be energy this week. oil at $83, we're near the highest levels for oil since november the exploration of oil companies like apa have been on fire for the last month there's your big leadership

group. not so great in some subsectors of technology. cybersecurity is not having a great day. they had rather poor outlook there, they said deals were being delayed until macro economic uncertainties, that's dragging down palo alto, crowdstrike, and other names in that space speaking of earnings, we're almost done. 85% or so through the earnings season 84% reporting, 79% beating, a little higher than expected, than usual the average beat is almost 8%. that's a little higher than expected but prices are high so it's hard to move the companies forward, the prices, even on relatively good earnings news what you want to look for, nobody is worried about the second quarter third and fourth quarter, what's the trend? are earnings estimates going up or down? here, earnings estimates are going up remember, guys, this is the bottom of the second quarter

it's supposed to be the bottom for earnings they're supposed to go up from here we want to see the trend moving up and you see here, analysts revise their numbers every week, all the time 63% in the last few weeks have been revising their estimates upward, 37% down the trend is up, and that is extremely supportive of the market that along with goldilocks and the soft landing, why the stock market continues to hold up so well >> bob, thank you very much. >> we have breaking news from jpmorgan and steve liesman has the story. >> yeah, just got jpmorgan's weekly economic report they are calling off their recession forecast for this year they are crediting the quicker than expected resolution of the debt ceiling, as well as less impact from bank credit tightening as a result of the fed's program put in place they're saying recession risk is still elevated for next year, but what's happened is, we reported on this monday, they had to boost their gdp forecast for the third quarter.

they went up from a half a point to 2.5% along with others. they said fed overtightening is the major risk to the economy. i want to show you what we reported on monday, just to remind you we came out with our cnbc rapid update showing a host of other folks had boosted that third quarter growth forecast from what was really an anemic forecast to one that's just around tend, just the way the quarter has begun, especially now you had the vehicle sales out, mark zandi is at 4% so there you go, guys. it's hard to have a recession when you have three quarters of the economy that is three separate quarteroffs the economy running around trend maybe next year, but jpmorgan, you remember earlier this week, bank of america also called off their recession call >> they have taken it off the table for this year but they say the risk is up for next year is there any color as to why >> i think it's the effect of rising interest rates, and they also signal out the idea of the fed overtightening relative to

the economy and the inflation. >> we shall see in the wake of today's jobs report, what that might mean for overtightening or undertightening or whatever they might do at the fed. let's bring in karen kimbro, also with us is ron insana, also a cnbc contributor karen, why don't we pick up with where steve left off are you concerned about the fed overtightening particularly given what looks like a very sort of sweet employment report and cluster of economic conditions >> you know, there's no doubt that this was a good report overall. of course, to answer your question, absolutely, there's been 500 plus base points of tightening that's a lot to digest for the economy, so like many economists, we're expecting that soft patch to hit much later this year or earlier next year i think the risks are still

there for the fed. as to whether or not they have done too much, but in the meantime, the labor market is very resilient, very strong from the way we look at it. we're seeing, you know, even a glimmer of hope in some sectors. >> ron, where do you come down on this idea of a possible recession or maybe that a recession doesn't occur until next year if at all? and what are the implications then for stocks? >> remember exactly a month ago on the last unemployment report, we talked about goldilocks, the fact the economy was still growing, jobs were being added at a reasonable pace, and wage inflation was coming down. the wageflation is growing most at the bottom 10 percentile. right where you want it. it's growing faster than prices are. that's also something you want this seems like a reasonable environment. there are risks, next year i should say, $1.4 trillion in commercial real estate debt will come due that could be problematic for some banks

i think that's where the risks may come in. the fed overdoing it, as i expect it was steve kelly making that reference, pushing off to next year. that seems like a reasonable bet at this point, unless the fed were to do something more than a quarter point and shock the system we're kind of moving along nicely >> karen, can you give us some granularity on the strongest and weakest parts of the labor market what are some indicators you look at? >> absolutely. we spend a lot of time thinking about the rebalancing of the labor market that's an important question the more it's out of whack, the more likely you get wage pressure the amount of jobs coming down in the sense of there are not as many open jobs available, that's come down by over 20% in the last year. at the same time, we're seeing job seekers much more active they're applying to more jobs when they show up. a 30% increase in the intensity of job seeking that's creating a competitive

labor market, which means we'll probably get downward pressure on wages which is a good thing for the fed. at the same time, we're looking at general labor market tightness and hiring trends. they're telling us overall, hiring is still coming down. people are still hiring at a slower pace than before. but there are pockets of hope. believe it or not, the real estate sector, the construction sector, health care and hospitals, all these sectors are actually doing a little bit better than they were a few months ago so there's some stabilization and maybe even hope of improvement, you know, further down the line. >> ron, equities have been moving up, chugging along all year, and certainly in the past three months, certainly in the month of july. that's not to say there aren't concerning signs out there inflation is still a little higher than people would like. oil has gone up. there was a debt downgrade china is still an unknown. and certainly, there is a political season coming that is going to be, i would say,

destabilized >> certainly emotionally >> it's going to be a wild year. a wild year and two months what does that say about the market and its fragility >> i'm not sure the market is as fragile, certainly in august and september, you worry about market dips. we have been up a lot this year. as in any other move to the upside, a 10% correction is a possibility. with respect to inflation, when you look at readings, august is going to be a bad print because energy went up so much in the month of july. but i brought this up and i can't stand and institutions do it, but the new york fed has the pce measure. it's under 3%. it's 2.94% as of two days ago. so the trend of inflation, of underlying inflation is receding i think faster than the fed would admit, which is why equity markets are doing better, why

interest rates were contained until the debt downgrade, and china is exporting less inflationary pressures around the world than they would have otherwise. i think that accrues to that benefit of equities. you're not going to duplicate what we saw in the first half of the year, and again, 10% correction given the concentration that we have seen, ten stocks account for 31% of the s&p. >> a possibility or a probability >> a possibility given how much the equity markets have surprised us this year, you don't want to put too high a probability >> karen, quick final question to you what youd be watching? we talked about the general jobs report what you guys watching for signs there might be a sharper cooling in the labor market versus just kind of a persistent moderation? >> yeah, the main thing that we have been looking at really is looking to see whether we can start to see a little hope, a little glimmer of recovery in some of the sectors hardest hit.

thinking about tech, retail which has been a bit sluggish in terms of hiring. looking for some of these sectors to kind of come back, that's one thing the second is looking to see how broad based is that return of stock seekers to the market. are they coming back it's starting to broaden out >> all right, karen, thank you very much. ron, great to see you. let's go out to rick santelli in chicago. rick, this morning we hit 4.2%, and man, what a different picture it is now. >> yes, remember, last several days i have been highlighting areas to pay attention to, and tens and 30s we'll get to that in a minute. what i would like to talk about is today's nonfarm payroll that's the lowest level of job creation since 2020. let's think about what been in between there. we started out this year in january with 472,000 last february, we had 904,000.

job growth is slowing. what was the effect? looking at a two-year intradate, it's dropped by a rock it's been dropping like a rock or holding steady all week let's look at a one-week chart we're at 4.80. we're down eight on the day and eight on the week. on a week where the long dated treasuries, look at the next chart, looks a bit different the last one was red this one is green. because we're still up on the week but we cut that in half. right now, at 4.06, we're down a dozen on the day, up about a dozen on the week, but we're up double that earlier. the markets have definitely moved lower. is it because the report was that cold? it really wasn't that cold look at wages, what's going on with labor force participation rate however, fear, many thought that after adp was stronger, they would see a stronger report than they did but here's the key this chart goes back to september. on october 24th, both 10s and

30s had their high yield close it was 4.25 for 10, 4.38 for 30. you remember what happened when we didn't close above 5.07 in 2s when we had a chance they hit the stuffing out of the market this is a technical failure thus far, not the close above those levels if we close below 3.85 before we close above 4.25 in ten10s, it l be game, set, match in my opinion. >> rick, have a great weekend. thank you. coming up, wall street had big worries about apple and amazon, but the reports are keeping the bears at bay we'll break it down in today's tech check plus, work from home in the office google offering an on-campus hotel special to lure workers back to the office those details when "power lunch" tus. let innovation refunds help with your erc tax refund so you can improve your business however you see fit. rosie used part of her refund to build an outdoor patio.

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welcome back to "power lunch," everybody. the nasdaq gaining a full percent, despite a drop in apple following its result reported yesterday. reporting a drop in sales now for the third consecutive quarter. let's bring in steve kovac for a look at what's happening at apple. steve. >> yeah, tyler, apple shares sagging even lower, after the company guided to another quarter of falling sales even though apple said to expect iphone and services revenue to grow more in the september quarter, it also said a steep drop in mac and ipad sales won't

be enough to bring the company back to top line growth. that would mean a full fiscal year of downsales for apple. now, i asked ceo tim cook yesterday about the demand picture for iphone since we're expecting new model just next month. he told me, quote, if you look at the u.s., the acceleration is good the accelraise we saw. we're glad that accelerated. but the smartphone industry is tough in the u.s. right now. so even though foreign exchange rates are improving and services are growing again, hardware demand remains the biggest headwind for apple, going into the back half of the year. and speaking of services, that's the most promising piece of these results. cook telling me advertising and spending in the app store is starting to return plus, apple has reached a billion subscriptions through the app store, and it gets a cut out of each of those subscriptions. and of course, we got to talk about ai, apple playing a different role there than what we would see out of microsoft and google and all those others. cook telling me the new iphone

software features coming this fall will leverage ai and it helps make new products like the apple vision pro, tyler. >> very interesting. so ai, i mean, i guess i'm not surprised because apple is fundamentally an equipment, a gear company it's not that it's not a software company, but the others that are the big players in that area, like microsoft and google strike me more as a software company. >> yeah, that's right. that's been thething about apple all along, from its founding it's been a hardware company, and you could easily argue its weakness has been on the software and services side but look, everything you do on an apple product is in some way kind of powered or informed by ai i'll give you like a very good example of this, they're going to have this new feature in the iphone software coming up where you can record snippets of your voice and then it can talk back in your full voice this is an accessibility feature but it is powered by a lot of the same or similar ai technology that we have been

seeing from the other big tech peers. >> steve, thank you very much. steve kovac. the other big earnings out last night, of course, amazon. that stock absolutely jumping today. deirdre bosa has more in tech check. i loved reading the trader notes on this because they were like, cloud has bottomed and margins, wow, there was just -- and then they said, hey, this is now as tradeable as meta and some of the other former faang components >> you know, kelly, that hits the nail on the head this is amazon's time to shine i want to show you where we're coming from. take a look at the last one year of the mega caps you will see that amazon has been a serial underperformer go back even further than that five years and amazon is that white line, it has underperformed because it has put so much money into doubling its network capacity, its logistics footprint. that has really hurt profitability over the last years but this quarter, everything came together efficiency is now delivering

faster than ever and to boot, aws growth rate has stabilized, which is what interesters really wanted to hear the core e-commerce more efficient, the profit machine, aws, stabilizing so kind of a perfect storm it's why you're seeing share gain so much, and it's not surprising that maybe you're seeing wall street analysts ask, is this going to be the outperformer over the next few months because it has a lot of ground over the last year, and five years. so kelly, a lot to pick through there, too advertising, $10 billion, that continues to be a much smaller but another high margin, high growth business for the company on top of aws. >> to me, i don't want to say flipside, but i was looking at open door. a tough day for the stock which is only a couple dollar stock at this point what's going on there? >> so open door was a huge pandemic winner, as most of our audience knows, the stock once traded at nearly $40 a share even with more than 200% gabe

this year, it's well off those highs. it's under $4. at the heart of that longer term decline are questions about the i-buy model. in a seller's market like the one we're in right now where inventory is low, homeowners could be leaving money on the table if they go with that model. in her first broadcast interview, carrie wheeler told me they only need a slight seller >> this is a $2 trillion market. 99% off line that's our competitive stat. we need a slightly bigger slice of what is an enormous pie today our tam is $650 billion. again, we don't need all sellers. we would love to get them one day. we don't need all sellers. we need some of them to take our offer. i think there's no shortage to

seller demand in what we see >> that tam she cited, $650 billion, maybe investors saw a closer horizon to get there two years ago. it does feel like it's going to take longer, especially in the market we're seeing right now, a seller's market. but housing is it last big sector that is yet to be disrupted by the internet. that's the case when you look across >> thank you very much, deirdre bosa a judge making a ruling in the government's case against google let's go to eamon javers to explain what's happening >> hey, there. a big win for google here just coming in in court this is the 60-page memorandum opinion that just crossed the wire here. what it is is an opinion in the ongoing department of justice case against google. and the ruling here is that some of the claims that the government was making are going to have to be thrown out that's going to limit some of the exposure here that google faces when this case goes to trial. and ultimately, got off the

phone with folks over at google. they believe that ultimately what's going to happen here is that the scale of what the government can do, if there's an adverse ruling against them, will be a lot smaller here as a result of this opinion in court today. we'll wait and see what all the other players in the case have to say about it. very complicated ruling, as you can imagine. 60 pages of anti-trust legal jargon here for us to sort through. but being viewed right now as a win for google and limiting the exposure they might face at trial. >> not to put you on the wrong foot, but is it any one particular thing that was thrown out that stands out to you as a biggy? >> yeah, one of the issues here was whether or not google's positioning of search results had an adverse market impact on people in the marketplace. and if you can't prove that, you can't say google is doing anything wrong here ultimately or that it has any real antitrust impact to the consumer in the world

the folks at google feel like that was the key win here for them that the court ultimately sided with their view of the world, which is that any ranking or prioritization that they're doing in those search results doesn't have a real world market dollars and cents impact on consumers so therefore, any ruling that the government makes or that the court makes at the end of this won't really go to that search prioritization issue. they won't have to change the way they do search at the end of the case, even if the case goes against them that's my understanding and it's relatively limited i'm going to leave it there. >> thanks. up next, reaching a boiling point. the u.n. chief saying we have entered the era of global boiling. the extreme heat placing a new focus on water stocks. what the global water etf hitting new highs in recent weeks. we'll break down the moves for you next next to no interest, the fees sfx: [typing]

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july, officially now the hottest month on record, and as temperatures worldwide soar, more focus is placed on water scarcity, and pippa stevens joins us with more water is the ultimate commodity. >> that's true, and record temperatures and drought often go hand in hand. with worldwide water demand

growing, scarcity concerns are on the rise. that's leading to more interest in companies that update water infrastructure and make it more efficient. pfo, fiw, and cgw hitting new highs in the last week here in the u.s., there's a water main break every two minutes leading to 6 billion gallons of treated water loss each day that's enough to fill more than 9,000 swimming pools overall in pipeline systems is a massive undertaking, and the gap between what's needed and what's been spent is forecast to reach more than $400 billion by the end of this decade on a stock specific level, there are lots of different types of companies involved in this space. you have the utilities like american water works and california water service companies like xylem and franklin electric who make pumps and water systems. and badger meter specializes inmetering this is a consumer and

technology story because all industry also requires water >> is there much appetite in municipalities, states, to do the kind of infrastructure repair, or is it the money to do the infrastructure repair you mentioned, $400 billion? >> many places, there is not that money they are raising rates, but a lot of the time it's where we most need to have more spending is in disadvantaged communities. so that can be a challenge and of course, there are a lot of these industries are highly regulated so you can't just raise rates overnight to a big degree these systems, some were built decades ago. and they weren't made for the changing climate conditions. so they're subskrekt to things like flooding. that's why there's so much focus on efficiency, identifying where is the leak happening, how can we conserve more, preserve more, and recycle more so we aren't tapping into the resources as much >> many people did not anticipate the population growth that has happened in, for

example, the southwest, southern california, fed by the colorado river, which has been dramatically affected by drought. >> exactly, and we have all those new chip factories opening up in places like arizona. there's a lot of moves down south and those are the areas most at risk of water shortages. let's turn to the markets now. we saw them peak around 1:00 p.m. eastern time, but those gains which have slowly evaporated dow down 38 points take a look at apple this one a bit of a tell for the whole market we don't want to blame apple, but the shares are down 4% now to $183 after nearing $200 in the last week or so prior to last night's earnings report let's get to contessa brewer for the cnbc news update >> thank you chris christie made a surprise visit to ukraine today, had makes him the second republican presidential candidate to travel there during the russian invasion the former new jersey governor met with president volodymyr zelenskyy in kyiv.

christie said he wanted a first-hand look at the war and reiterated his support for the country. in june, mike pence also visited ukraine. >> niger's ousted president said he's a hostage and he's calling on the united states to rescue his country after his government was taking over after a coup last week. the military group that seized control isn't backing down it's seeing demands from a bloc of western leaders and 115,000 people are descending on chicago this weekend, lollapalooza music festival the city is permitting an additional 15,000 people to attend in exchange for keeping the festival in the city for another decade according to reporting from the chicago tribune. i was just looking, you have billie eilish, kendrick lamar, red hot chili peppers and a long wait list. >> if you didn't get your

ticket - >> i'm not a music festival person it's hard to navigate, it's loud i feel like such a grouch. there's plenty of other people who would take my seat happily contessa, thanks still ahead, help wanted for now. the next era of automation is about to arrive, but first, companies need workers to build the robots who will eventually replace them details when "power lunch" returns. we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're

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sknloo let's go to kate rooney for a market flash on shares of carl icahn's, cahn enterprise. >> down more than 20% after slashing its quarterly dividend in half to a dollar. also reported a surprise quarterly lauz and revenue that missed estimates in a statement, billionaire chairman and founder carl icahn said it parley reflected the short selling of companies which i attribute to the misleading and self serving hindenburg report concerning our company. it also related to the size of our hedge book hinder brg first sounded the

alarm back in may saying they used ponzi like structures to pay dividends and accounting techniques to inflate the values of their assets. icahn firmly denies that his bet that the market would collapse this year has been a losing one back to you. >> thank you very much kate are rooney. >> meantime, the return to office fight is raging on. companies are trying everything to get workers back in person. some are using force others are using flattery. google is trying something totally new. bringing home to the office with a hotel offer. cnbc.com tech reporter is here to discuss jen, what are the details of this >> that's right. google is hoping to bring employees back to the office, and one way is through its on-campus hotel, which it first opened last year so what they're hoping with this is offering a summer special for employees to stay in a room for

$99 a night in mountain view near their headquarters, and they're just hoping this kind of helps employees transition to hybrid work, and they're doing it because they have been trying to be more strict in asking employees to come to the office, but as you know, sometimes these companies have to walk the tightrope and try to flatter employees, try to remain flexible, but also are trying to get employees back into the office, especially during this time where there's an incredible ai arms race >> i don't understand what the hotel is doing to attract people to work. is it people who literally live in a different state and in order to come to the office, need a cheap place to crash? i don't understand what the perk is >> right, google, a lot of google employees moved out of the area during the pandemic, and part of that is increasingly high housing costs especially in mountain view where the housing supply shortage is even greater so you know, it's been a work in

progress with the company trying to get employees to move back and cracking down, even asking approved remote workers to come back and consider reversing that so for employees they say this offers them a room to stay, a little cheaper than what another room they could get at some other hotel in mountain view, but so far, some employees osdon't seem very convinced it's a good deal. >> do we know what the uptake has been, and i assume google is the owner of the hotel >> yes, google is the owner. it's smack dab on their campus, specifically for partners and full-time employees. but they haven't shared with us what the take has been or what the occupancy rate is. >> all right, i guess if you're charging basely $100 a night, if you stayed there 20 nights a month, $2,000, the probably beats rent in some of the more expensive areas. appreciate it. coming up, help wanted as ai and automation continue to rise, will robots take our jobs

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mornings welcome back, everyone with ai and automation on the rise, an age old question is back on the table. with robots take our jobs? or create new ones maybe a bit of both, of course kate rogers is here to explain >> hey, tyler. we're here at zipline in south san francisco. the company uses robots to change the way deliveries are made to make them faster and more environmentally friendly. here at their manufacturing facility, workers are working on parts for their autonomous delivery drones which have been used to deliver vaccines to hospitals and also e-commerce deliveries big companies like walmart zipline is looking for 100 workers in robotic roles from data logging to customer application. the technology enables a better paying safer job for the future. >> before, we were using a human to do one delivery at a time, driving a car one at a time to go and make deliveries now, we're training that human

to maintain and manage a fleet of robots that a human can now do 50 deliveries in an hour rather than five that enables us to pay that human a lot more these are jobs that people actually want. >> now, automation advocates say robots and automation can help remove more menial tasks from jobs to make humans more productive jobs are available in engineering roles, programming, helping to integrate ai into these robots, even maintaining them once they're being used at companies all over the world back over to you >> how do these ziplines work, the drones >> i'll do my best to explain it, tyler. yes, this is the basket where the package would be housed. these are the original zips, delivery is being made in one of these. the company says every 90 seconds all around the world, this would be launched from one of their launch pads the package would live in here it would drop via parachute.

this would then return back to its nest i aunt to show you something else this is the p2, the next generation deliverydroid which will be out next year. they say it can cover a ten-mile delivery in ten minutes or less, and they say the cost is about equal to what you're paying for a salad to be delivered today. >> that's what was going to be my question. there's a lot of technology and engineering in these devices, they clearly look like they're not exactly cheap. how is it likely to raise the cost of an item i buy if at all? >> well, the company is private so they're not releasing all that cost data right now, but again, for the next generation droid that's going to be used next year, the cost for a salad delivery would be comparable to what you're paying for delivery today. >> real quickly, i see one person working behind you. how many people are actually involved in building these things >> kelly, great question i'm not sure how many people go

into creating one of these products but they're hiring again for 100 roles. there are quite a few people here, but just one behind me on the floor right now. again, a lot of manpower goes into operating them and the logistics and design all in house here, so there's a lot of opportunity just outside of the fabrication part >> it's ironic to be manufacturing your own demise, but it shows how the modern factory has become so labor efficient. we appreciate it coming up, traveling, gambling, paying shares of booking holdings, draftkings, and block are all moving on the results as the market turns lower. dow down 100 points. three-stock lunch is next on the other def e easi othbrk. m talk'! (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly.

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welcome back everybody. it's time flea-stock lunch we're going to look at three big movers today, with our trades we learn to malcolm etheridge, wealth executive vice president, malcolm, welcome we're start with draftkings, about about 2.5% the stock was a beat and raised on results how do you feel about being an owner of this one? >> yeah, i consider that when i'm buying i don't own the personally maybe just yet, but coming off a

strong earnings report where they not only beat expectations but also raised guidance for the remainder of the year. plus, they're head nothing to football season which i know is prime time for their business model and it's when they tend to see higher bets with margins. if they can finally make this the last year of losing money and turn a profit heading into 2024, draftkings might have something here >> stock up nearly 3% right now. up next, booking holdings, the stock making big gains after a robust second quarter results. the ceo telling cnbc the company sees no signs of travel demand slowing, so malcolm, what do you think? >> i consider this one a hold. i saw glenn fogle on the network this morning touting the blowout earnings quarter they had, and in fact, on the call, they said it was a record-breaking quarter, but my concern is the mixed picture we've been getting from the airlines as far as international versus domestic travel plus, i think the excitement is going to fizzle out in the back half of the year as the consumer runs out of firepower.

and a willingness to spend at all costs like they have been. so, we've already started to see some of that happen in retail and dining numbers coming out of q2 earnings. i expect travel to also be on that same list >> okay. let's turn to block, then, where we see -- talk about pressure. they're down more than 12%, even after they reported strong quarterly results. what do you think is going on? would you be a buyer here? >> i'm with the crowd. i consider this one a sell, despite the strong q2 earnings it just posted i think it's easy to just look at the selloff that happened and say, you know, paypal reported and so they're just a victim by association, but i think the guidance they gave for the rest of the year doesn't sound as good as the first half, and that shouldn't bode well for block shares going forward either. they still have to address their shrinking margins, which won't be easy to do since their customer acquisition costs, they still haven't been able to get those under control. i know they had good numbers and increase in subscribers for cash papa

app, but at what cost? this is one that i just -- it would be at the bottom of my list if i was going to buy into that sector. >> would that extend to square, then, as you mentioned, you're kind of concerned about the whole area >> i'm concerned about paypal. i'm concerned about square/block or whatever, you know, whatever we'll call them later. and i think the ecosystem in general, the acquisition cost for that next customer who doesn't already know about these services is just way too high to be constructive on the space and decide that now is the time to put new capital to work in that sector >> we're looking at the dow turning negative by 75 points now. what is your overall view of the market today in light of a week where we've seen u.s. debt downgraded and on the other hand a very sort of goldilocks-ish jobs report? >> yeah, i think coming out of apple's earnings yesterday, we got about what we expected to get. they didn't have the best guidance they didn't have the best revenue numbers, and the market is responding in line with what

apple's share price is doing, simply because they reflect so much of the market and say a lot about what they expect consumer strength to be >> yeah. all right, malcolm, thanks very much we'll leave it there for now we really appreciate it. this quick programming note. don't miss our cnbc special, "taking stock," mike santoli and josh brown will break down all the day's big stories in a way only they can that's at 6:00 p.m. eastern tonight. don't miss it. we'll be right back. power e*trade's award-winning trading 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. e*trade from morgan stanley. 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.

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sofi get your money right. we got about four minutes left in the program and a bunch more stories we'd like to share with you right now, so let's get to it. alphabet paring back large positions, who knew, in multiple publicly traded firms, including 90% of its stake in robinhood, the trading platform this, according to s.e.c. filings. alphabet also trimmed positions in 23andme, duolingo, sold 3.4 million shares of robinhood in the period ending june 30th, but still holds more than 600,000 shares, and robinhood has struggled since its 2021 ipo, but did turn its first ever profit in its latest quarter, but i guess google or alphabet, saying, we don't want to be quite as exposed to other stocks as -- >> i think these moves make a lot of sense in bull markets bull ipo markets, to have sort of this portfolio of holdings,

but they get tough when the markets turn and investors probably want them to steamline. i think uber had a bunch of those that helped their results recently as well i don't know if we'll see this going forward. meantime, huawei is plotting its smartphone revival in china with a new mobile operating system the embattled telecom name still struggling after they were cut off from android operating system if it works in their home market, that's a pretty big market >> it's one of the top three, maybe -- i don't know where it fits in terms of overall sales globally their system, android, and apple, of course, the big ones there. rough day for some of the ev makers nikola -- i hope i'm pronouncing that right, like ricola, like the cough drops -- sales were lower than last year the ceo stepping down. fisker also lower after missing on sales and production targets.

not a good day for nikola, down 16%. fisker also down about 6%. i don't know whether you can say a shakeout is coming in the ev market, but it certainly feels as though the dominant companies are going to be tesla and some of the legacy automakers, whether it's kia, hyundai, audi, vw >> ford. i mean, it's massively capital intensive, and tesla builds during a period of very low interest rates it still almost went bankrupt several times. with the financing being the way it is now, it's going to be tough for companies to overcome that bogey meantime, large swaths of south america are experiencing an unprecedented heat wave much like the u.s. and europe the difference is it's wintertime down there. parts of brazil are expected to top 100 degrees in the coming days argentina, chile, paraguay, experts say it's thanks to global warming and el nino

>> i believe sea temperatures are the warmest they have ever been measured if you average them across everything so, the planet does seem to be getting hotter >> yeah. all right, nfl superstar aaron rodgers embracing his new role with the new york jets. he got a lot of air time last night on that preseason game >> did he? >> oh, yeah. he didn't play, but there he was. >> in the mix. >> he was talking, they interviewed him and so forth mike tirico and chris collinsworth welcome to the garden state, mr. rodgers. according to the new york post, the quarterback recently purchased an eight-bedroom, ten-bath home in montclair, new jersey we $9.5 million >> i know some people there. >> the new build reportedly fits on two acres of land and features more than 4,000 square feet of living space it also has skyline views of new york city, though he'll be playing, of course, his football games on the other side of the river at met life stadium.

the view from his house also includes met life stadium, may i say. just saying. >> all i'm saying is -- >> we welcome him. >> we hope he can pull this off. there is no small amount of pressure on this man >> have a great weekend, everybody. thanks for watching. >> "closing bell" starts right now. and welcome to "closing bell." i'm carl quintanilla in for scott wapner this make or break hour begins with this friday fade. bulls did have the ball midday, but they stumbled late in the session on the back of a 4% drop in shares of apple bond yields do retreat dow was up 200-plus midday, now down 115 s&p got to 4,530 or so now 4,483. leads us to our talk of the tape is this week's pullback the beginning of something bigger as the s&p looks to snap a three-week win streak? let's ask cnbc contributor tom lee, fund strat's head of research on