earnings driven rally, the s&p 500 hits a record, so does nasdaq, companies like caterpillar and mcdonald's power the game. the senate health care bill passes its first big hurdle. get ready for new challenges ahead. a new employee perk, a micro chip implant. we're not kidding. one wisconsin company is doing it. is it a step toward the future or an invasion of privacy? >> those stories and more tonight for tuesday, july 25th. >> good evening, everyone, and welcome, it was another earnings driven day on wall street. the s&p 500 powering to a fresh

record along with the nasdaq. the dow is closing in on one. and a number of very big companies reported upbeat results. something investors were hoping for given the high overall evaluations for stocks. investors got what they wanted. the dow jones industrial average rose 100 points to 21,613. the nasdaq added one, but that was enough for a new high. >> caterpillar, united technologies and 3m, help define today's market they have a few things in common. they're all dow components, a key part of the economy. and they all sounded up beat. reaction was much different with caterpillar. united tech fell, and 3m the worst among the dows. morgan brennen explains why. >> a busy day for the industrial giants, making everything from excavators to jet engines to post-it notes.

caterpillar bulldozed expectations, thanks to strong demand from gas industry equipment in north america. the maker of earth moving machines is also forecastings sales growth after four years of declines. all positives that sent the stocks soaring today, even as analysts question whether it will last. >> history would say that caterpillar delivers great incrementals for a couple quarters when they get volume back. we shouldn't forget they spent 3 $1/2 billion on restructuring, and 16% fewer workforce versus at the peek of the cycle. they can probably deliver another couple quarters like th >> a different story for two other dow components, united technology's tumbled despite its better than expected results, because elevators and hvac will see earnings slip this year.

a 3 m sales maker missed estimates, sending those shares flying despite a better forecast. for industrials, the results need to be teflon strong to warrant the sky high valuations, and until global economic growth picks up, that's not likely. >> the story in industrials is one of moderate growth, one of a weakening dollar, year to date, which has helped boost results a little bit. i don't think we've seen too much in the way of excitement in the industrial sector, it's more of a earnings growth and economic growth story that isn't terribly exciting, but also isn't bad either seasonal earnings have grown 5%. ge continues to come under pressure for its cashflow. i'm morgan brennen.

shares of mcdonalds rose. the recipe for success, premium hamburgers and cheap soda. mcdonald's turnaround strategy, which included overhauling its menu is taking hold. shares of the fast food chain rose 4 1/2% to a record. so far this year, the stock has gained about 30%. trippe miller joins us now to talk about that. welcome, nice to have you here. >> the success of this report is being laid at the feet of mr. easter brook and his turnaround plan and it is being very successful, would you agree with that? >> i would agree with it, steve's done a marvelous job turning around, mcdonald's in an 18 month period. we believe the strategy he was implementing in europe prior to taking over the entire company is serving investors well, we

think it's a great start, and hopefully an early sign for more good things to come for the company and shareholders. >> what are they changing about the food specifically? >> specifically, they're going to higher quality. one of the things you see out there is a demand for fresher, higher quality food across the price spectrum. whether it be in a happy meal for my children or a higher end burger, they're delivering that. i think it is in high demand today, and they're listening to the consumer out there, and trying to fulfill that need. >> there was question as to whether the remodelling of some of their stores was a necessary part of that makeover from mcdonald's. that's part of the overall experience. and the consumers, especially millennials, want more of a food experience, would you agree? >> i would. i think millennials want a different experience when they eat and dine. a fresher more technologically

friendly mcdonald's will attract a younger audience, for the last five years, tended to move away and go to other offerings that were out there, i think one of the biggest things you see is with the smaller floor plans you see. it allows it to be lower cap x for the franchisee, which is an attractive move for them to accept these changes. >> let's talk about two things i never thought i would see at mcdonald's. table service, how is that going to change the economic model. and number two, delivery. how important is delivery going to be in five years. >> number one on the table service side. they're serving 2500 stores right now. you'll see it increase over the next year, for us, a little too early to tell how big of a piece of their 36,000 plus stores globally that will be. they're testing it, and in the areas they're finding success, you'll see that increase.

the more important piece you touched on is delivery. we believe, and we get this from mcdonald's and competitors, delivery will be over 25% of the sales. for them, that's a really big opportunity. they're an early adopter in this space, seeing great success on the delivery side. >> on that note, trip thank you. >> dupont was the fifth product to report profits today. dupont which is merging with dow chemical expects that deal to be completed next month. >> day one of the federal reserve two-day policy meeting it will not increase rates when it releases its statement tomorrow. many economists and fund

managers have actually pushed out the timetable from september to december. the hike rakes in march and june of this year. >> consumer confidence is closing in on a 16-year high. the conference board says the rise is because of a strong job market, increasing home values and a record stock market. investors follow these surveys, because a boost in optimism can translate into increased consumer spending and that spending makes up 70% of u.s. economic activity. >> senate republicans voted to advance their debate to repeal and replace obama care. mike pence was needed to break the tie breaking vote. senator john mccain appeared on the floor to applause from both parties. his vote was critical for republicans, he called for a

bipartisan remake of the health care bill. john harwood is following the story for us from washington. how did mitch mcconnell win this vote? >>. >> quite impressive sue, he had faced resistance from staunch conservatives and also from the more moderate republicans, he managed to pull enough of them along, he only lost two votes by letting them feel as if the process was going to be fluid once it came to the floor. they weren't introducing any specific bill by doing this, he managed to do what he said about a week ago, he wasn't going to be able to do. >> what did he win, john? >> what he won was the opening of debate. that's distinct from moving any piece of legislation. they could try to pass the house bill, try to pass a revised version of the senate bill they had earlier been considering or they could fall back to the skinny repeal, which just

eliminates the individual mandate and some other regulations. that would get them into a conference with the senate, who knows where that would go. >> i said it was a dramatic moment, and indeed it was. when john mccain walked on to the floor. he got a standing ovation from both sides of the aisle, what role did he play in the ultimate outcome of today's vote. >> since they only got 50 republicans with mike pence breaking the tie, they needed every one of those votes, it provided an emotional boost for the republican leadership to have him back. and john mccain interestingly had previously criticized the process, he voted to continue the process, but then criticized it again in the speech. the question is whether that can happen. he didn't withhold it today. >> thank you so much. the health insurer sentine,

one of the largest companies on the exchange act. profits for the insurer rose nearly 50% in the most recent quarter. they're increasing their presence in the obama care exchanges. they plan to enter kansas, missouri, nevada and expand in six other states where it currently sells individual policies. still ahead, the big questions over gm as sales start to overflow for the whole industry.

the former dow component at & t saw its profit come in better than expected. the number two wireless carrier was able to attract new customers with promotions. revenue did fall from a year ago, though, to nearly 40 billion. but it also topped expectations. investors like the results, sending shares higher initially in after hours trading. julia bore step has more on at&t's results. >> bottom line, the company outperformed expectations with better performance across its phone and video businesses than projected. at&t maintained its full year guidance. the number in guidance was 2.8 million. that's how many wireless subscribers they added far more than expected and the direct tv

skinny bundle is helping out its business. as for the future of at&t, its pending acquisition of time warner, randall stevenson says the deal is on track to close by year end. for nightly business report, i'm jul julia borstyn in los angeles. in an attempt to diversify his product amid falling sales. michael kors says the company will gain greater exposure to foreign markets. shares of michael coors were flat on the day at 34.93. an activist investor is pushing barnes and noble to sell. they could be a buying opportunity for a media company

searching for a retail presence. barnes & noble could attract bids of $12 a share, in a deal that would take the company private. shares surged almost 17% to 8:30. eli lilly posted a rise for the year. much of the quarter's strength came from new medicines. >> new products were a little over a billion in the quarter. that led 8%, too line growth, held expenses flat. and 34% reported growth on the bottom line. >> eli lilly shares were off 3% to 82.19. the data storage company said inconsistent demand for its products caused sales to slip more than expected. it wasn't enough to convince wall street.

shares got crushed, they fell 16 1/2% to 33.20. dominos reported revenue in same store sales that rose, and topped expectations. the pizza chainsaw profits edge higher international store sales, analysts were looking for a 5% chain the hospital operator, hca health care said fewer patients hurt results in the recent quarter. they missed estimates and hca cut its full year earnings guide answer. shares fell more than 4% to 82.18. in the meantime, after the bell, chipotle reported earnings it improved with the company saying it saw a pickup in customer traffic and an increase in the average check size. they missed targets for same store sales and revenue.

shares initially rose following the results and they ended the regular session up 2% to 348.62. amgen said stronger growth in its newer products helped the company report profit and revenue. amgen raised earnings outlook. the mid point of the range sits below some analysts expectations, they ended down 180.89. general motors posted its second most profitable quarter ever. questions are hanging over that company as it wrestles with slowing sales for the entire industry. >> business has seldom been better for general motors. thanks to surging sales in

highly profitable utility vehicles. why are shares of general motors still lagging the market overall, auto sales have comed off, and many doubt gm can drive strong profit in a slower market. >> the problem here, you're fighting the cycle, people have been extremely skeptical they can deliver results. >> a big problem for gm is the fact people are buying fewer cars. take the chevy impala, in 2017 sales have been cut almost in half. with fewer buyers looking for sedans, there are reports gm could kill certain models in order to convert assembly lines to provide more cross-overs and suvs. gm is downplaying that possibility. >> we are always going to be very focused on aligning supply and demand. as we've seen the shift from passing cars to cross-overs,

we've taken very proactive action to reduce our production of passenger cars. >> if general motors restructures its u.s. assembly plant so they build more trucks and suvs and fewer cars, it would not be the first automaker to do so. ford is in the midst of shifting some small car production to china. and fiat chrisly will stop building cars in the u.s. all to. coming up, getting under your skin. would you let your employer implant a micro trip in your hand? one company in wisconsin is actually doing i

hundreds of facebook cafeteria workers are unionizing. they are pushing for higher wages and more affordable health benefits. the union says these workers are struggling to afford the rising costs of living in that area. there's a story of one family who lives in a garage. contract workers like janitors, shuttle bus drivers from other silicon valley firms have also moved to unionize. it's something it seems out of a science fiction movie, or for those of you like me who would remember it, the twilight zone. employees of a vending machine company in wisconsin, are being offered micro chip implants that

let them access the building, log into their computers, even pay for things. ron mott reports. >> suppliers of 21st vending machines will literally get a hand up on the competition. >> is this really the future? >> this is the future. opening doors, booting up their computers, even paying for breakroom snacks with the simple wave of a hand todd westby is ceo. >> what i'm going to do is pay for it with my hand. the chip in my hand will be linked to my credit card. >> remember, for gps device to work, it needs to be powered. and your cell phones are powered so, therefore, they can give gps device, this is a passive device, there's no bauer in it.

>> the chips are injected by a needle. something keir simmons experienced two years ago in sweden. that same company is partnering with three square. >> once they showed me the technology, i asked them, what do i have to do to get that implanted in me before i leave here. >> for now, at least, a marketing executive is not sticking her hand out. >> why aren't you getting chipped? >> i like the idea, i haven't seen a lot of research on long term health effects. there's a foreign object going into your body. >> health isn't the only concern, how secure is the data stored on the chip, what are the checks and balances on the keepers of that information. and what happens when an employee leaves, who owns the chip and are they easily removed? >> it's a convenient form of making payments, starting your car, getting access to the building, logging into your computer.

not carrying credit cards. >> so i can get rid of my wallet? >> yeah. >> that was nbc's ron mott reporting, what do you think about being micro chipped by your employer? >> if you micro chip somebody to go into a factory, you could micro chip them if they're at a political meeting. >> i think if it's convenient it's easier for people to keep track of stuff. i say go for it, i don't know the negative effects of it. >> it's a searchable procedure. and why would you want to walk around with something under your skin? i don't think it's a good idea. >> i always used an i.d. card, i don't see what's so hard about that. swipe, you're in. >> i would be opposed to that, you don't know where it ends. >> if they're saying they're not going to use it to track them. and that's in writing, there's a contract that specifies that, i don't see the harm. >> we want to hear from you on

this topic, head to our website, nbr.com, and there's a quick poll you can take there. >> what are the pros and cons of a business your employer may be implanting micro chips into you. >> susan holt is a business professor at the university of notre dame. what are the ethical or bigger broader questions here. about micro chipping an employee. presumably it's voluntary, you don't have to do it? >> presumably it's voluntary. one of the questions this raises for me, can this be one of the united way campaigns where donations are voluntary, and your boss is evaluated based on the level of participation he or she achieves. are these employees being pressured by peers or are they

being pressured by management to go ahead and do it. >> why is it necessary? i mean we have smart phones, there's so many other ways we can achieve payment for something, the ceo of this company says it's in 20 countries already, and it's working well do we really need it, if we have the devices that we have now that seem to be working well? >> i think that's a a tremendously important issue. if the company can achieve the same objectives without implanting an electricion devic, that would be the way to go. this fob enabled me to start the car door and not fumble for a key. if the only way to get a keyless

entry is by putting a chip in my hand i say give me the key. >> we uzan id card that we use to log on to printers or into the cafeteria. there would be a medical liability issue here what if something goes wrong? i wouldn't want the dog gone thing traveling around my body and passing it like a kidney stone. >> those are crucial unanswered questions. >> it's logical to move ahead, when the health egeffects of it are unknown? >> what's being done with the information that's linked to this chip. you're buying things, the information is out

>> right. if i always get twinkies from the snack machine and i start seeing pop-up ads in my computer from twinkies, am i getting a little nervous. what if cnbc implanted chips. >> we have to leave it there. >> the chips are down, and we're down on the chips. that's it for us.

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