this this mean amazon can that are compete? shira: i think that is amazon's bet, as brad said.ave to look at the labor market conditions in the united states, which are tight. if amazon can do this, get good pr heading into the holiday jobon and steel some good applicants from places like target and walmart, then that is certainly good for amazon's bottom line. thatould point out that if $1 billion to $2 billion figure is correct, amazon's annual operating cost is something like $60 billion plus a year. so one or $2 billion is not a huge dent. emily: we were looking at a chart comparing the median amazon -- you have entirely white-collar corporate workers working at google and facebook and amazon. how does it balance its identities going forward? brad: it's just the reality of being in any commerce. it's a company that tries to bill itself as a technology and engineering company, but the reality is that the majority of employees there are working in the warehouses. emily: do you think there is anything political going on here? this in the midst of president trump directly attac

another thing, amazon uses oracle, not amazon.zon's transprocessing data that base is called aurora. aurora is an open source database. they just picked up and they close sourced on amazon, they didn't write it. they didn't write any of it. they made it available on their cloud. well, so who owns aurora? who drops aurora? that would be oracle. it's called my sequel. that's our small open source database that they claim is their big transaction processing tata base that's going to -- database that's going to replace oracle. it's just preposterous. you know? amazon didn't even develop the amazon database. it's just a chunk of open source that we are responsible for called my sequel. my sequel does not compare with the oracle database. there's a reason amazon uses oracle. you know who else uses oracle? is another company that hates us, sap uses oracle everywhere. sap ten years ago said i hate oracle, i'm getting off of oracle, i can't stand these guys, especially this guy that goes on tv and makes fun of us. [laughter] because we hav

and you talk to amazon, amazon, they said our country needs to be defended so they will work with the and the government. scott: my opinion on that is i think they should continue to talk to the government about the contract. we are talking about a $10 billion opportunity which would have been tremendous for google in the cloud business. that would really have been a game changer and i am not really clear about what exactly the opposition was in terms of moving forward with the contract . you point out good rationales that other companies have articulated. i think that was a mistake to walk away from that contract. particularly at this stage. also hasb, google business being done in europe. they are facing the $5 billion -- forr antitrust issues the android issues i should say. how that willt play out. how must you think that will hurt them? bob: there are very few alternatives and google could make more money. the phone makers will have to pay google for services they gave away because they have to be offered as an alternative. in a weird way, it helps them. long-term, the financial

working on amazon's behalf.: thank you, brad stone and bobby figueroa. thank you all for stopping by. still ahead, it looks like snapchat is on the decline. it reported the number of daily users fell for a second consecutive quarter. we break it all down ahead. meantime, alphabet's call just wrapped, the cfo talked about the state of global business. take a listen. >> we actually feel pretty good about the strength globally, which i noted in opening comments, across the board, 20% growth in the u.s. on a $15 billion base. and we noted what is going on with aipac, 30% year on year growth, over $5 billion revenue business, and we have sustained quarter after quarter growth at this 30%-ish area, so i feel good about that. ♪ emily: twitter surged the most in a months, sales blew past forecasts, but despite the strong financial numbers, monthly average users decreased by 9 million from the second quarter. meaning the social network averages 326 million users. this coming as a twitter continues to purge fake accounts.

spencer: amazon give it and amazon taketh away. this is a savvy move for amazon. it jumped from being this poster boy for wealth and equity to being a leader of the $15 and our, living wage movement-- an hour, living wage movement. eliminatingtion is benefits. one is stock options and -- and theonuses other is incentive bonuses. some things are being taken away. the bottom line is that the $15 an hour announcement is good for new workers at amazon. those are the ones that will see the starting wage go up the most. people that have been there a few years will not see as big of a bump. they will still see a bump but not as big. emily: what do you think the political implications are of amazon setting the minimum wage as opposed to the federal government? i think cooper set the minimum wage before amazon did. we are all competing for talent -- uber set the minimum wage before amazon did. . we are all competing for talent. some of this was conceding ground to bernie sanders and everyone else and some was the reality of a booming labor market. amazon did this in part b

andcer: so amazon giveth amazon taketh away. this is a savvy move for amazon. it basically jumped from being for wealth and equity to being a leader of the $15 per hour living wage movement. that isfootnote on there were compensation programs they are eliminating. one is stock options that warehouse workers will see phased out over the next couple of years, and the other are incentive the onus is based on how much time off you have taken and some production bonuses as well. those will be eliminated. some things are being taken away. the bottom line is that the $15 an hour announcement is good for new workers at amazon. those are the ones that will see the starting wage go up the most. people that have been there a few years will not see as big of a bump. they will still see a bump but not as big. some of them are a little frustrated by all the publicity around it. emily: what do you think the political implications are of amazon setting the minimum wage as opposed to the federal government? glenn: i think uber set the minimum wage before amazon did. part of the

>> costs and pricing, interesting enough, acquisition of whole foods was a nice boone for amazon amazon at a 2% margin or negative now $2.5 billion in profits because of that. as they diversify business, requires other businesses with higher margins like media, that might be a way in. >> i think you'll see individual categories hit by tariffs that people rely on amazon for that they never thought of. power supplies who doesn't buy a battery. that price will rise with a tariff on it >> whom are they raising costs when it comes to competitors seems like a lot of amazon's low wage workers are more warehouse workers than main core worker. so is this really pressuring walmart to raise above 11 and $12 an hour where the base wage is now is it pressuring ups or fedex? who is it pressuring who has the equivalent worker? >> anybody trying to operate a massive distribution platform. walmart is the first that comes to mind, if you look at them saying bernie, you want $15 an hour minimum wage, let's get it. walmart now looks worse because they're not pushing for it. >> unless they change the law or

caroline: when we see some of the falls off in amazon and i'll, amazon climbed to 7%. it is not eroding all of today's upside. we have to take that into the significance. scarlet: speaking of the volatility, luke, this is features right now and i have it on my bloomberg screen. just a sense of what this miss means for futures overall, you see a drop, a leg lower in futures. that made the case the weakness will carry over into tomorrow. 100, ifr the nasdaq amazon beat, we would move around the 200 day moving average. this says it will take some time to get us there. thestep numbers continues theme of cash flow matters and results matter. people do not care as much about twitter, they cared about the fact that the company is making money. leads to laterus cycle concerned about profitability. aboutou are about to say they -- within the fangs. what is that mean to you? leigh: you get the feeling that social is on the outs here. there is a cleaving going on. if you look at the way facebook is acting. caroline: i look at how facebook is performing, falling in tandem. leigh:

amazon guiding 66 1/2 to maybe $72 billion. that is the story with amazon.he second best megacap tech performer on the year. you're still up over 50% if you bought in. let's pivot on and start with media. media fighting with big technology silicon valley giants. amazon looking into content with facebook. netflix down of a hours. dragged lower, disappointing with what we saw in amazon and alphabet. but traditional media sectors, traditional media players, comcast, disney, they're trying to spend to keep ahead of the technology giants that want to get bigger in the space. that means buying more content with likes of comcast and at&t and verizon. they have had to buy, issue a lot of debt. let's look at 100 billion-dollar debt club. this has caught the attention of a lot of investors in light of the comcast earnings we got this morning. comcast beat on top and bottom line. they confirmed we're still shedding a lot of cord-cutters, right? they lost 100,000 in the quarter. they lost 342,000 on the year so far. at&t reporting yesterday also confirming they lost 300

amazon is down about 9%.u can see alphabet is down a little bit we have not talked about intel it is fascinating because they talk about explosive pc growth of 16, data center of 22 >> i don't know if it is that or now kind of you know prove it is going to last kind of moment you know all these semiconductors they got traded as a group but they have different drivers. microsoft's numbers are out performed on the traditional pcs. seems like you have a little bit of a speed up and verses expectations in the area >> they do expect modest growth from pc, a total adjustable market this year at intel. we did not talk a lot about microsoft moving up. it is up over 6% yesterday >> yes, it was given back to some of the amount of it. >> only 2% of it >> yeah. moving onto a couple of other areas, guys. this is the name that we talk about often. gulliad. this is $150 billion market cap company not that long ago. remember on the drug drugs -- something happens when you actually have a drug that cures the disease which is

to watch amazon. let's move over to stock on the screen and that's alphabet, parent company of google, the stock is down almost 5% on premarket, david, to google, first to you, the worry about regulations in the company are overhang for analysts and investors alike, is that going to happen in the u.s. or europe and they did address it last night? >> they are going to have to and for google this is clearly a company with target on its back and this is one of the most dangerous company on the planet, they touch everything in our lives, google mail, even the draft e-mail that you didn't -- that you didn't send out, chrome tracks you on the internet and android devices track you everywhere you go, so speaks to larger issue in technology and i'm not sure where the loyalties lie, they're certainly not here in the united states, they even violated the own mandate by pulling out of china several years ago, now they are back in and they censorship seem today bother them at some point but now they seem unconcer

amazon has a lot more employees than apple.ause they have such market leadership positions, because their productivity exceeds a lot ofhey command activity and they have such leadership because they make a lot of profit on that. it is not that they are raking consumers and gouging them, but the cost is low, the output is high, so there's room for raising wages without killing the business model. , they have become an increasingly important service sector employer. have the last i read, they 400,000 people who just work in warehouses. robots bring up shelves, laser pointers point to the objects, they stick it in a box, put a label on it, and off it goes. this is demanding work. it is not fun. it is also not highly skilled. most people can do that work if they are in good health and sound mind and body. it is possible for amazon to pay lower wages for that, but there is room for them to raise wages, and i think it would be good because there's so much growth , it would bethat great to see higher living standards in that work. som

i think -- jerry said amazon moved first.almart has been moving in that direction for a while trying to move wages up and driven not by -- as much by the external pressure, the political pressure, though somewhat, the market now is allowing them to be able to do this you know, the strong economy >> bill, quickly, refresh or memory when walmart did go, laddered into $9, $10, $11 back in 2015, what happened in the couple years following that >> margins have been pressured is for a lot of reasons for several years. a lot of it is the investment and ecommerce and a lot has been investment in wages, but you've seen, a corresponding response in growth in same-store sales for walmart. i think while they're operating in and it's taken a serious hit, the stock prices responded really well. i think they've weathered it well i think what you'll see as jerry described, short-term pain as companies sort of rejigger their financials and try to figure out how to absorb some of this stuff, but they'll figure it out. the good ones will the st

amazon if a customer comes in and rent a computer from amazon in the same computer is amazon code.er if they are smart can hack the amazon code, take control of the computer and go out to other computers in the amazon cloud and steal data. that is impossible to do with the architecture we have, where user computers, customer computers only have customer code and our control or security or cloud control computers has only our code in it. there is no way a customer can get at our cloud control packet and take control. maria: this confirms what you have been talking about, staying with one integrated company with the open public cloud. >> our cloud is available on the internet. you come in on the internet, the database, of that. it is not a garden. all customers can get at the cloud, very easy to do. looks the same. the difference is if you look very closely you will see we give customers a set of computers they can rent like amazon does. we have the control code, a completely separate set of computers, we would never let our control code be in the same computer as our customer code b

amazon has announced wage increases.is demonstrating it is going to continue to aggressively invest in its employee base and that will cause costs to go up. they and others are looking to use robotics and other technology tools to try to manage costs in other areas. that clearly is a risk. if we look at google and the issues in europe, is something they will have to contend with, if we were to step back and think about what is ultimately key to driving their success is the need to differentiate and innovate with their products. , authorok at gmail different services, those continue to be very popular. regulatorynk the scrutiny and politicians on both sides of the atlantic will continue to hone in on them, i think if they innovate and continue our build on the dialogue that will help them navigate this landscape. we heard from tim cook in a high profile critic of the data retention and collection, and privacy policies of some of his tech cohorts in silicon valley, i guess that position will be the dominant one going forwa

the stage for the next amazon or microsoft? we will discuss. plus, boeing's skyhigh ambitions. we will hear from the ceo on their plans for hypersonic planes, self flying cars, and beating elon musk to mars. i sit down with him in an exclusive interview. and microsoft has its head in the clouds. how the giant is tapping into its longtime partnership to take on amazon in the race on cloud computing. first, to the top story. we are live at the annual geekwire summit here in seattle where more than 900 on entrepreneurs and executives and investors have come together to talk about the innovation of the economy. this is a city that has given rise to giants like amazon and microsoft. but with amazon putting the second headquarters elsewhere, question remains, can seattle support the next big tech giant? one of the executives that

for amazon specifically. wager pressure is going to be a -- wage pressure is going to be a big thing for amazon after they announced the increase in their minimum wage. part of the story with the entire market is this notion of this very robust earnings group this year, kind of fading and -- a bit next year. amazon is kind of a poster child for that. it is expected to increase by 480% this year. that goes down to 36% next year. for off the bat, growth is expected to drop from 52% to 11%. investors will really be looking for any sign that those outlooks have gone down too much. selina: bloombergs michael regan, thanks for joining us. coming up, uber wants to go public, but it is missing a key dealmaker. who fills those shoes coming next. if you like bloomberg news, check us out on the radio and the bloomberg app. this is bloomberg. ♪ selina: uber is set for an ipo next year, but it looks like it will do so without a key executive. the head of corporate development has resigned after allegations of sexual misco

hey steve let's start with what amazon did here they raise the hourly wages in the u.s. but what other actions did they take to address the workers well first of all it's a big public relations boon for amazon obviously they've been the target of so much controversy when you please bernie sanders senator from vermont and larry kudlow economic advisor in the trump administration they both praise your move you're doing something right i guess they also assure themselves that they're going to be able to lift workers from other companies and certainly stock their seasonal needs but. a lot of workers at amazon suddenly notice ok this minimum wage is going up to fifteen from somewhere around to between ten and fourteen but you're doing away with our bonus program you're doing away with our stock incentive program for senior workers and they're not happy about that also warehouse workers who are now making fifteen dollars an hour already they're just getting a slight little bump not the a bump that the you know the other workers are getting where it's most fifty percent in some

getting slammed amazon down 10%.rent company of google, off about 7% time to find out what's coming up on "squawk box. i have to imagine we're talking market selloff >> we will be. it's interesting yesterday, one thing we were talking about as we constantly question whether we're near a bottom or if we've done enough work on the downside, if we go back up, whether it's by the end of this year or in 2019, does technology go back to where it was or was that overheated >> that's a great point. the communications services, all these stocks were high flyer the. >> take those five stocks. we had -- they were all threatening to be trillion dollar companies like apple, or close. that was a lot of the leadership and big gains we saw was that overdone? we see amazon and google from yesterday, not horrible reports. amazon, did you see how much they beat on the bottom line you can find something is the revenue disappointment, is that real is it worth what we're seeing as far as the selloff was there -- were we looking for a reas

remember amazon has so much initiatives. we think this is a great move >> senator bernie sanders has been a vocal krig critic of amazon pointing the to the disparity between the employees and jeff o basohs saying it doesn't payou employees . >> we sat back and listened to critics and thought long and ha about what we wanted to do. we evaluated our approach to compensation and decided that we wanted to le we wanted to come out. we wanted to do this now. >> the senator now giving basesas ohs and amazon credit for the pay increase. >> bezos and amazon are now leading the way the. but there is absutely now no reason by other profitable corporations like wal-mart, like the fastfood industry, like retail in general, and other employer -- other employees -- no reason now a why theyo should not be paying their employees at least $15 an hour. >> bezos responding in a tweet, thank you at senator sanders we are excited about this and hope others join in. >> amazon is cheering this move. otr retailers are crying right now over this. >>

they had been doing that amazon wouldn't be doing amazon today they are doing a better job >> amazons so far ahead of them that while walmart.com growing may be a 30 or 40% may take a couple hundred growth points it is still an 800 point gorilla. it will grow around 20% at their level doing close to $400 billion in revenues on the top line they dramatically outperform by 30% that's not something that any of the traditional retailers can ever do in my book >> yeah. i mean a lot of folks are pointing to how much fell to the bottom line. investors can get used to the idea i think the question though is management running the company with that in mind as well. will they try to maximize the quarterly profit >> yeah. you have to continue the growth machine or you can't justify it. you have to get it going really fast ultimately retailing -- you know, i know you can speak to that strongly, there's a convergence taking place as you do that you can see all retailers are going to be very good in stores a lot of retailers have big advantage in stores versus amazon the future is not going to loo

, can they set the stage for the next amazon? our coverage from the annuals the choir summit -- geekwire summit. the biggest attack known ever against tech companies. china infiltrated the servers of almost 30 data companies, including amazon and apple. a bloomberg investigation conducted extensive interviews with intelligence and corporate sources. both apple and amazon disputed the summaries of recording, and so has super micro. we were joined by one of the authors of this exclusive story and from santa clara california, the chief technology officer of mcafee. >> we site 17 a different sources these are senior-level officials across the government and also senior-level individuals inside of the affected companies, aws and apple. this is a constellation of sources that is robust and broad and it is a pretty comprehensive look at what happened in this attack. what happened here is that the chinese government installed malicious microchips on supermicro assembled motherboards. what a malicious microchips is, think about this as an

them from amazon inventory or directly from nike to have them fulfilled by amazon. if you spend 100 bucks, buy them as amazon, it gets recorded as 100-dollar sale. if you buy nike it is recorded as $29. the it hits bottom line for amazon and making the same profit. the concentration of third party sales grew by 300 basis points. went from 50% of the mix to 53% year-over-year in third quarter. that caused a downdraft in revenue and giant up swing in profits, it masks how profitable they are on those types of sales. i think the street doesn't get it. it took me two hours to get that out of amazon the last five years. i talk to them every quarter, it really, suddenly hit me like a brick in the head. i finally got it two years ago. charles: eureka moment. were you in the shower when it happened? >> no, i was on the phone with amazon. the point is the economy is super healthy. people are buying stuff. amazon is seeing transaction volume at record levels every quarter. if you want to pick on one thing wrong in their earnings report, aws growth grew 46%. wow, azure grew 74

another thing, amazon uses oracle, not amazon.mazon's transprocessing data that base is called aurora. aurora is an open source database. they just picked up and they close sourced on amazon, they didn't write it. they didn't write any of it. they made it available on their cloud. well, so who owns aurora? who drops aurora? that would be oracle. it's called my sequel. that's our small open source database that they claim is their big transaction processing tata base that's going to -- database that's going to replace oracle. it's just preposterous. you know? amazon didn't even develop the amazon database. it's just a chunk of open source that we are responsible for called my sequel. my sequel does not compare with the oracle database. there's a reason amazon uses oracle. you know who else uses oracle? is another company that hates us, sap uses oracle everywhere. sap ten years ago said i hate oracle, i'm getting off of oracle, i can't stand these guys, especially this guy that goes on tv and makes fun of us. [laughter] because we h

emily: we talked a bit about amazon, ironic because amazon also reported today.mazon is certainly encroaching on google and facebook when it comes to digital advertising. but at some point, amazon could become a real threat. we talked about that and she digital adhe new business is really increasing opportunity. we also talked about china and still planningis to try to reenter china and bring its search engine back to china. here is what she had to say -- we continue to help support chinese users from developing android apps like google translate. as the ceo has said repeatedly, we are not launching a product in china, we are focused on the dishware we are doing the right thing for the long-term. set down for a chat with the twitter cfo as well, what did he say? emily: as i mentioned, the results are interesting for twitter, users decline, but stocks soared today. what we are continuing to see is the company work through these efforts.e health i asked what would happen with monthly average users going forward if you are continuing to work on cleaning up the platf

the way to fix that in a large organization and this is what we do it amazon amazon. we acknowledge that there are two types of decisions. there are decisions that we call two way doors. there are decisions where you make a decision, you walk through the door and it turns out you made the wrong decision. you turn around and come back. and the consequence is that step is a small. that the type two decision and a two way door decision. there is a type one decision where it's really hard to reverse. when you walk through that door you have walked through that door and it's going to be expensive or impossible and time-consuming to reverse that decision so you have to get that right. that the high consequence decision. those decisions should be made deliberately and carefully and slowly and at amazon i find myself i am the chief slowdown officer. i've slowed those decisions down . i want to see it one more way. i've already seen it 18 ways but i thought of the 19th way and i want to see it. that is correct for a high consequence irreversible decision. you owe it to your te

i see the same thing at amazon. amazon, because of our scale, we can do things that we just couldn't ever have done as a garage start-up. there are some things only big organizations can do. i love garage start-ups. i was a garage start-up. you can't build a boeing 787 in your garage. you need a big organization like boeing to do that. we want scale. we love scale. you would never trade the scale of the u.s. air force for anything. the question becomes, how do i keep the advantages of scale but still have the advantages of the nimble start-up? how do i get the nimbleness too? i want to absorb a punch because of my scale and i want to be able to dodge a punch because of my nimbleness. well the way you stay nimble is by making decisions fast. in a 20-person start-up company the decision making speed is so quick and that's why they're so nimble. then in a big company or a big organization like the air force, that decision making has a tendency to speed. you get high-quality decisions. i think sometimes people think the

the amazon call starts at the bottom of the hour here. waiting to hear more from that call. >> what did you makeof the alphabet quarter >> so far it's been a juicy earnings call. the company is talking about the future evolution of search this is not only search but discovery using ai to better predict what you look for. that could produce new ad units. the big negative on the call was the paid clicks were down 20% year over year they were will go at down 21%. but they are thinking of new ways to make powerful ads to improve that cost per click. and separately just kwhiel i cut away to talked to you they were starting to talk about china the company seems to be changing its view how to approach china in the last several months look for analysts to talk a lot about that tomorrow process. >> all right, going to we check in with you later. for more instant analysis let's go straight to the chart master. looking at the charts in relation to all the volatility we have seen but the after hours action carter >> before we get to it, the principle

take amazon, you just brought up. amazon started off as a bookstore.cloud computing to consumer goods to small business lending, and now it is also building advanced robots. it is doing also some amazing things. amazon is set to eaten tire industries. same thing is happening with google. apple just announced a watch that is a medical device. who would have expected a computer company would be selling medical devices? this is what is happening now that technologies is advancing and people don't understand what the platforms are. criticize tesla. easy to do that, when you consider, look at tesla a old-fashioned car company. it isn't. it's a platform for all sorts of new technologies, everything from energy technologies to transportation to things we haven't even conceived yet. this is what is going on, when you look at the big picture, you realize these companies will be worth a trillion dollars before you know it. we will have many trillion dollars tech companies in the tech industry. we never had anything like this before. stuart: you're building a pow

, can they set the stage for the next amazon?ur coverage from the annual geekwire summit. a bloomberg businessweek investigation conducted interviews with corporate sources, both apple and amazon disputed bloomberg businessweek's reporting. the -- joined by one of from santa clara, california, the chief technology officer of the cyber security firm. these are senior-level officials across the government. this is a robust and broad. they installed microchips on supermicro motherboards. what a microchip is, think about it as an infection that is hardcoded into your computer. you cannot get rid of it without throwing the machine away. very few countries would have this capability. china's control over the manufacturer of computer hardware, makes this something that is possible. >> you have had a lot of oversight over the chain. what you make of this? >> one of the things that we recognize is an implant would be one of the most part always for a nation to spy on a data center infrastructure. required is ay is chain of trust. applicat

amazon's big move paying workers more, but will it cost you the next time you go shopping? >>> interest rates are going up, and that matters if you're thinking about a big purchase like a car what you can do about it >>> the new app that lets you pick up some extra cash when you're behind the wheel from a company that wants to disrupt delivery services. >>> and the 800-pound gorilla in the room that people may not like to talk about an unusual invention that has one business with a backlog of profits. >> matt is disgusting. >> "on the money" starts right now. >> announcer: this is "on the money. your money your life. your future. now, becky quick >>> we begin with the battle for workers and wages. next month, amazon will begin sending 350,000 employees something extra in their paycheck, a higher wage. amazon's new minimum will be $15 an hour, but will more money for workers cost you more money when you shop that's this week's cover story >> a $15 an hour -- >> amazon is increasing its u.s. minimum wage to $15 an hour from the current average of $11 at the white house, presi

there were some bright spots in the amazon report. earnings per share came in above expectations $5.75 versus $3.14 we have to note aws, the cloud division, continues to boom. we saw sales growth of 46% year over year in that business not enough to stop shares from sinking after hours. turning to google. couple of big misses there ad sales growth slowed that's where google's main revenue stream is. operating margins were lower than expected because of big investments the company is making one bright spot was the bottom line earnings per share were $13.06, compared to estimates of 10.42. we'll have to see if this weakness continues in trading today. >> you talked about the amazon cloud business booming what struck me was the growth in digital advertising. it seems like a whole new area that i don't associate personally with amazon >> that is one reason for the weakness in google, the competition that amazon is taking that's particularly in the search function. more people are going to amazon to search and that's where they're making re

since amazon launched, it is continuing to disrupt injury i'm eyeing the amazon effect and then it is company that works with some of the largest technologies and digital media cos. could it be worth owning plus the fed played a key role in our comeback, actions also cause sectors like the home builders to take a beating i am digging in to tell you why this matters right now stay with cramer at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react... introducing e*trade personalized investments professionally managed portfolios customized to

amazon, alphabet dragging the index lower. are tech companies, investors, ceos navigating fear and volatility the chairman emeritus john chambers is with us, runs his own firm welcome back good to have you >> carl, it is a pleasure. jon, morgan, good to see you all as well. >> for a young generation of investors, john, the volatility is something new but it is not new to you you think back to 2001 when you saw real volatility, how did you process it as an executive >> you need to determine how much of the issues are inflicted by the company themselves, in other words, have they made mistakes, and how much of it are market you then have to assume it will last longer than you think but if your strategy is working well, you're in the right market transition, customers are happy with you, you want to stay the course through it. however, you've got to separate the symptoms from the underlying issues i'm very concerned about the fed putting on the brakes so consistently what you do when you keep doing the right thing like was done i

plus we have to keep the competition question those wal-mart stand a chance of being a real rival to amazon lots for us to get to so we pop start today let's roll. we start with the markets after a week of down and dour markets last week as we told you about before save brazil and shanghai last week which were the exception stock markets are trying to regain their footing around the world and they have not done so we have seen a six hundred point swing today in the dow jones industrial average traded there and ending down for the day of course we'll give you those numbers that the breaks of aciphex lee were down four hundred points about five minutes ago and the s. and p. five hundred is also into correction territory the transportation sector one of those s. and p. sectors is mainly down as are key blue chip blue chip stocks like i.b.m. and microsoft and boeing we'll get to more on boeing later and met market concerns continue to be related to the possible slowdown in corporate earnings in addition to fears about global economies of missed increasing trade tensions of the earnings report t

i continue to like amazon. like intel. >> you would rather t-bills? >> yes the upside is limit. >> day after spending a third of its market value to buy red hat, ibm is up. it was only down 4% yesterday in a very negative take. >> jimmy was on the money. i thought she told a great story. red hat sends you to google cloud, amazon, azure at the same time, you have your proprietary cloud, which is very secure it's encrypted that ibm offers it's a good deal it's a good deal. >> ge up 1%. >> larry koch told a good story. s.e.c. didn't matter don't be in full panic mode. >> you're telling the people that you get what you want, embrace it i wanted fang down huge. it opens up every day. then it gets defanged. it ends up with -- you know, you have to go do-to- -- it gets pulled every day i don't know. >> whirlpool has been slowing their, arresting their descent. >> that's because the fed is going to blink the fed is going to blink. if you do root canal every single day on fang, the fed will blink. i've been looking at j

same thing for amazon. i don't think it's a major part of their business, but it is the kind of thing that everybody looks at and goes well, wait a minute, who's making the right choice. liz: well, i will tell you, we do market check right here. we have the dow jones industrials up 485 points. amazon's not yet, i say not yet, a dow component but something tells me that it as a retailer, it's really taking on walmart which is a dow component, might at some point join the dow. what do i know about that. but let me dovetail here because amazon is coming out with earnings, but so is intel. snap is coming out. who has the potential to dazzle after the bell? >> we think that amazon is going to have strong results, could see upside to expectations. we are also expecting strong results from alphabet. i think when we look across the continuum, what we are focused on is trying to understand what is changing or progressing with the fundamental drivers of these companies. you mentioned intel. the company obviously has

amazon shares sharply lower.stimates but revenues fell short of estimates. >>> alphabet shares are lower. the company's earnings beat but revenue fell short google cited the strength of the u.s. dollar as part of the revenue miss >> why is that a surprise to people >> we published exchange rates every day. here's the rest of the f.a.n.g. stocks it's a broad decline but being led by alphabet and amazon >>> time for the squawk planner. we have more earnings rolling in, colgate-palmolive, phillips 66 and good year and we have the first read on third quarter gdp at 8:30 eastern, and consumer sentiment at 10:00 a.m. eastern. the fed is a hot topic for markets as president trump continues to take shot at interest rate hikes. cleveland fed president loretta mester will join us on set in a cnbc exclusive interview at 8:00 a.m. eastern time. >>> our next guest says the recent market volatility has parked a surge in retirement anxiety. let's welcome janet grier. thanks for being here today. >> my pleasure >> when you see v