nonetheless, shares of csx are down almost 12% right now.oads that are publicly traded kansas city southern, norfolk southern, union pacific, also the canadian names are trading lower in sympathy as well. >> at one point every component was down today >> yes. >> this takes you back to february on csx. incredible story thanks, morgan we'll see you in a little bit. >>> a purchase of grassroots for $875 million the deal makes it the largest cannabis company in the world. joining to us discuss this is the executive chairman welcome back congratulations. >> good to be here >> why this one? >> this fulfills out our national footprint we had a dominant position on the east coast with the transaction two months ago we built out our footprint on the west coast this gives us the midwest -- illinois, michigan, oklahoma, arkansas, maryland and other states this basically fills out the footprint for us to sell our products across all major markets. >> is it a comment on where you think statewide legalization is headed now, the center of the country? >> i

csx shares derailed. investors suffering their worst day in more than a decade. a lot to unpack here let's get to frank who has been following the story since last night. >> you were just talking about economic indicators. the economy is strong. retail sales strong. unemployment at record lows. inflation not a worry. but their new fears of a freight recession. now csx, lowering guidance from 1% to 2% growth to a 1% to 2% decline, largely due to weaker demand for domestic and export coal and the ever-present trade tensions first half volumes fell 4% ceo james foote saying the present economic backdrop is one of the most puzzling i've experienced in my career many of our industrial customers' volumes continuing to show weakness with no concrete signs of these trends changing foote also telling cnbc today, this is one of the most unpredictable freight skrir environments he's seen expecting to see 1% of volume negatively impacted by the closing of a refinery in philly last month due to a fire jb hunt said its container transport business fell more than 7% in the firs

csx is a railroad that moves products when they suffer, it tells the fed to slash interest rates like freddy kruger. we see this struggle in the economy play out every day it's a bizarre situation the bull is focused on negative data because they want to rate cut and the bears focus on the positive data because they want the fed to do nothing. i think the bulls will ultimately win why? because jay powell keeps obsessing about that rate hike too far. that one in december as well as president trump's fickle stance on the trade war i got to tell you, if the chinese don't start buying soybeans soon, i'll scream but not as loud if the white house rolls out another round of tariffs and could be destructive for the economy. mostly, this economy is just plain weird. i can't think of another time in my years in the business where the consumer was in such fantastic shape or industrials were in so much trouble. normally, the one boosts the other or vice versa. it doesn't seem to be happening right now. if you want to know how crazy things are and they are nutty, you got to listen to jim foot lev

>> so i'll be looking at csx irn i earnings and also watch from union pacific.that it will be a matter of outlook we actually had a reaffirm guidance from management after the last quarterly earnings. but traffic down about 2.9%. so they were originally guiding for low single digit increases so if they don't get delivery in the front or they don't expect that to recover, i think that they will have to lower guide answer pricing in about $2.60 move in either direction, so interesting to see if they lower guidance. >> does the fact that lot of freight data that we've been getting as really rolled over and gotten much waeeaker, does that bother you? >> that is why i think that they have to lower guidance right on the down side, 76 looks like it is a pretty key price level. so i'll be interested to see if they do have to come out lower guidance if the stock is and i believe on-to-hold the 76. so i think guidance is key one thing investors might be willing to give a pass on is if they can deliver on the brief six schedule railroading metric that lot of investors are

everything you need to no before the market closes. 9 per of s&p have recorded earnings, csx is dragging the transports lower, and the beige book says the fed sees the economy as generally positive. josh, great to see you. >> glad to be here >> a tight trading range for the major averages this week. >> yeah. how would you sum it up so far. >> i think what's interesting is there seems to be this rotating cast of stocks that are working against the averaging, so today is transport i think three out of the worst stocks are railroads, some of the big ones being hit hard. they're not very important in terms of waiting, but very important in terms of people paying attention, either because they're technically inclined and because they think that's a important technical indicator, or they're people that think it's an economic story that needs to be understood, and there's some skinned of bowling pin effect but i think the bigger story is that some very important stocks to the market cap weighting of the s&p, netflix being a reasonable story as well they've gotten smacked down where they could h

csx was up 28% so it is down. i would encourage reviewers to go listen to the csx earnings call.s going on in the economy now. that is a great point. how conservative are you going to be on the cuts? walter todd will be sticking with us. cryptocurrency enters day two. we will stick with a republican congressman from north carolina. ♪ alix: this is "bloomberg daybreak." i am alix steel. nothing happening at all. your standard playbook. equities go nowhere during european car sales fell off a cliff. you have bonds going nowhere. the yield curve going nowhere. the cable rate holding at two-year lows. -- we are getting eco-and housing starts as well and looking at what is happening with big banks. housing starts down .9%, worse than expected but building permanent style whopping 6%, well below expectations. david: it is fascinating. mortgage rates are going down. homebuilding rates at its second-longest winning streak. a little bit light on the starts and the permits. alix: indeed. you have to wonder how much will be seasonal and how much is not and how much does it matter? we just h

despite this, csx is up 20% on the full-year.nion pacific and kansas southern also reporting this week >> that philly refinery fire, they got most of their crude oil to north dakota from philadelphia on csx. >>> tech's triple threat from de c. d.c. to brussels, why the industry seems to be coming under fire. >>> and the stock you need to watch that is setting up for some big losses at the open. it's your mystery chart. >>> and later, the tribute you do not want to miss. incredible pictures from our nasna nation's capital commemorating the "apollo 11" mission. uch mor. let's not just develop apps, uch mor. let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. ♪ ♪ . >>> good morning welcome back 5:11 here. big technology some of america's biggest companies coming under fire here and abroad facebook executives will

. >> we have seen that also in some of the earnings whether it be csx, which is down a lot today, we heard it from fastenal, able to pass through some price increases and also cost inflation and they were limited in terms of how much more they can pass on. what's your take from this and how do you translate into what we're seeing in earnings season so far >> i think it's clear that this had report sort of supports what the market has been saying for quite some time now, which is growth is slowing, and inflation is undershooting, persistently, and the risks are to the down side we have seen this uncertainty impact capital spending, a slow down in trade-related activity you reference csx and some of the other indicators, earnings and macro indicators we have seen that's already priced into the market, melissa. so i think expectations for earnings are already very reasonably low so as these reports come out, we see some misses and some minor market adjustments as a result but i don't think anyone is expecting anything heroic from earnings this season. >> steve, you want to jump in here

csx another different railroad reported an awful quarter yesterday.ay union pacific told us they're still doing well and could do even better if the president decides to be less combative on trade look at this the stock pulled nearly 6% how about honeywell, hom the company reported a set of numbers that seem to reflect serious weakness, particularly division that involved automation of warehouses huge swing from up to down and safety and productivity solutions business that is the best automater because amazon uses them the stock had already pulled back hard yesterday in part because of a bogus redistricting tech drive aerospace had a better quarter what an incredible buying opportunity. the ceo was explaining how honeywell's aerospace business is stronger than expected. three times larger than safety and productivity segment, bingo. that's how you get a fabulous snap back and the stock closes up 3%. what can i say if you try to trade stocks on the headlines, the market will make a fool out of you it's humans writing stupid headlines. sometimes it's p

. >>> focus wls on the transportation sector after csx issued weak guidance, which you might remembertold you about last night. the stock fell 1, its bigge one-day drop since 2008, and the has some wondering if conomyst sector of the warning of a freight recession. frank holland has that part of the story. >> with unemployment near record lows, inflation a nonfactor and retail sales rising, all signs are pointing to a strong u.s. economy. the transportation sretary sector may be pointing to something el. railroads and oth logistical companies are the life blood of the company, moving goods across the country. the more ty move, the stronger the economy. is happeningt wha at one of the biggest railroad operators. the ceo of csx warning business won't be as strong as expected for the rest of the year, leading to concerns of a potential freight recession, an economy as a u.s whole is slowing down. >> the present economic backdrop is one of the most puzzling i have experienced in my career. any of our industrial customers' volumes continuing to show weakness with no concrete signs of these

csx now the lowest -- the worst csx now the lowest -- the worst y, sulsain7 arda ihod y 1yes. fightsr, repairs shattered bones, relieves depression, restores heart helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. >>> two decades and google's brief 600-word privacy policy from 1999 is now roughly 4,000 words as data protection is more complex, the subject of our next guest's article telling the story as privacy concerns continue to ramp up. it's good to have you back good morning >> thanks for having me. >> you've been all over the google story from a number of lenses what do you make of the evolution of the policy? >> google has put its entire iteration of 20 years of its policy on line for anyone to see with all of the different changes so can you watch as, you know, each year this thing evolves. it tells the story of the internet it's very folksy, eas

but a big rollover today csx the rail operator powering that move and almost every member of that index the dow jones transportation in the red with the exception of united airlines holding. and then if you're looking for a stock of the day, earnings from yesterday, the best performer in the s&p 500 by a good amount, cintas, they provide workplace solutions. its earnings are better an expected what a huge move cintas the best-performing stock in the s&p and a very steady performer since the lows since christmas eve of last year >> the first of the fangs is set to report after the bell today with netflix hitting the tank. that stock has been on a tear this year. it's up 36%. but with company continuing to spend billions on content and news, the two of its most popular shows are going to be taken off the netflix platform should investors expect those gains to continue? joining us right now to break down what we're watching is sarah fisher she's media reporter at axios. so, of course, our very own julia boorstin and welcome to both of you julia, why don't we kick things off with you it's b

intermodal was so horrible from csx.it's because of some things they're doing with precision railroad. union pacific was just good. they do line by line, and it was good it was industrial that was the star so that was a good quarter, union pacific. this is just whipsaw i think his head is like reagan's head. jay powell's head is like reagan's head. he's on a swivel >> let's get the opening bell here the s&p 500 at the big board celebrating its ipo today is phreesia, a health care company. at the nasdaq, i heart media doing the honors >> this fits the profile go to market, land and expand, payroll processing health care if you had to do the buzz words for what is -- you want systems meets workday. david, i want you to green light this project i come into david, and i want to merge with payroll process with the vertical for health care will you green light this project? >> i will. i will green light it. i'm moving ahead how are we going to cast it, is the question >> well, we're going to get -- i don't know >> charlie chap

these csx numbers are not that great. >> i have to push back on you. you have canadian, pacific, norfolk southern, they're stocks are 48%. >> and the dow is down after the close. >> but they're up 36% for the year. >> but they're down, the reality -- the reality is that the earnings are not great that are coming out now so whoever bought the last 38% was wrong. >> well, for 33% they were right, but anyway it is the same argument but i do think you have this monolith of transports and to have that be, you know, a proxy for the market doesn't make sense. i mean the airlines, which i have some airlines, they seem to be great although every time i hang on too long. >> which are you long? >> delta, america, unite fltd. but the transport to me is a bigger story actually, the rail part of it. as brian said, csx is coming out with -- this is what i'm afraid of with the trade situation, that the uncertainty -- they're looking -- you know, their second half is going to be down and, you know, we're seeing uncertainty. so for a while the market has been trading on

railroad giant csx, however, sounding the alarm on the u.s.conomy along with several other transports so could this be the tale of the two economies? the consumers versus the industrials in which, kate, is a better telltalle, not of where the economy is but of where it may be going. >> we are just about to led into big restaurant earnings next week which i'm very pumped for ceos felt really good about the consumer and even earlier than that when the government was shut down, they were still saying that they weren't concerned and that they weren't seeing any shakiness in the consumer show up in their earnings or their bottom lines it'll be interesting to see what they say next week starbucks up 40% mcdonald's up 20 chipotle up 75%. i mean, it looks like consumers are doing pretty well. >> exactly so we just had a big week of earnings for transports. one of the things that a lot kind of went under the radar is the nation's largest trucker actually lowered their guidance for the rest of the year also warehouse space is at 5%. that's really low. s

vonnie: csx terrified the market yesterday, wiping $7 billion off of your market capitalization alone0 billion off of rails in general. -- yourpetitor basing competitor basically saying they have no visibility. did you have any visibility? lance: i think we have adequate visibility for what we are trying to accomplish. we are in the process of transforming our railroad by what we call unified plan 2020. that changes our transportation model and makes a more consistent, reliable service product for our customers, and one that is more. efficient. we think that positions -- that is more efficient. we think that positions union pacific quite well. as we look to the second half of the year, we are confident we can still keep key pieces of like an operating ratio for full year that is sub 61. there are key pieces of guidance we are retaining that show the confidence we have, even as the marketplace isn't quite the one we would hope for. vonnie: you know, it is quite well known that you adopted precision scheduled railroading, and you will be finishing out year in thatl this quarter. do you

basis points following europe's lower end yields there and one of the big earnings stories of the day, csx shares could fall to levels they haven't seen in a few months. a fairly sober assessment of freight markets that could pressure union pacific and some of the other transports as well. major indicese are nowhere in the dax now, down two point tempers -- two point 1%. -- 2.1%. ericsson right now is down more than 10%. it as well giving a sober picture of asia, saying that it may be a little bit too optimistic on profitability 2020.s for back to the main story in the united states, bank of america with record second-quarter earnings on the interest income despite a beat on trading revenues. bank of america following peers lower. here with more is the gentleman owner and finance reporter. stocks are up, clearly not disappointing too much, but a net interest margin. >> the stock is up i think because the trading results are good. fixed income trading revenue is unchanged from a quarter of the year ago and that is surprising because all of the other banks that have reported, the big banks i

look, after the close csx the big railroad reported a disappointing quarter and it's stock got shot to pieces and another airlines had spectacular numbers and the stock is flying because the consumer is flying but business cargoes are getting derailed so even though the consumer is rock solid, it's a reason to step on the gas pedal as long as that's his attitude, we can have more days like today the preannouncement from arrow could have crushed tech but barely blinked because the fed will cut rates we're fighting the fed, the action, i got to tell you, would have been different. it's why alphabet could rally after peter teal accused the company of treason and president trump ran with it. more on that later it's why facebook could hang in there even though the currency was the whole set of banking committee today looking dead in the water. what do we do? you need to approach the market on a case by case basis. look at the banks. j.p. morgan is doing well and the stock was down and nice opportunity. goldman sachs is getting more consistent with more occurring revenue and ready for an app

csx told "the post" its data is priori proprietary. >> celebrations will take place today the 400th anniversary of jamestown. >> also president trump will be there but his recent commentsut abo baltimore, qangmcongressman enj lijah cummings and the four congresswomen could put a damper on the celebration. >>> reverend al sharpton, esident trump called him a con man and troublemaker and saying he hates cops. so the back and forth continuesn as pressure m for president trump to take the 40-mile trip up the roadct and aually visit ssltimore, the city h aend rode infested people want to talk to him there according to people we talked on the reet and leader and former leader in the area. unknown if the president will come y time soon but they are having annual meeting in baltimore in september and the president usually attend. >>> the city of baltimore has come out strongly against the president's attacks. the county and the maryland state leader are pushing back. many say his comments are racist. governor larry hogan says they are, quote, outrageous, but former maryland mayor michael steele wants m

the sector unp fell along with norfolk southern they all fell yesterday, not as much as csx but thisne making a nice rebound today it is up 24% year-to-date on long calls in here happy i held. >> united rental is under pressure after cutting its revenue outlook. weiss, you are in this one boy, it was a doocy when it landed. >> yes, and i think it was over done the weather was a big part of it, but they only lowered the top end of the guidance. the lower end of the guidance still is intact and it is still a very cheap stock i think also when you look at a stock, like you say, well, the economy, that he weighing on and participate of the issue i don't think that's the issue i think the company is continuing to do well and now is a great buying opportunity i'm sort of full in the stock. i may buy a little more for balance, but stocks aren't bouncing like they were a little while ago so i would wait a bit but compellingly cheap. >> we have two for one, two fehr the call of the day. s&p 500 sector check, you can see there communications services worst performing on the index. more "halfti

tomorrow csx, they have earnings after the close. jb hunt also talked about their eastern part of the states operations being somewhat weak that's where csx operates as well that's going to be very key for tomorrow. >> right, the intermodal revenue miss, this is a miss, and that's half their revenue for this quarter, and i think this is a classic relief rally i think it wasn't as disastrous as the industry would suggest is it should have been. i think they're going to rally i wouldn't be surprised to see couple of downgrades tomorrow. >> if you look at the short outstanding interest, it never gets much more than 6% and gets as low as 2. coming into this it's at or near the high of the range. >> 5% right now. >> right >> at this point everything everyone said, power of low expectations but if i wanted to pick my poison in transports would you rather, i'm going to go delta i'm going to go with the airlines go with the performers versus the under performers who has the exposure and who doesn't have the exposure to the max 737 max and de

csx, for example, which are exposed to the vagaries of the global economy, they missed expectations last week because of concerns over the trade with china. you know, need to be cautious about those names. maria: so you think the consumer's getting stronger right here? >> yeah, i do. because i think that there's still more people coming into the work force coming off the bench who actually weren't looking for a job. inflation's staying low, so they're not facing higher prices, gas prices are stay thing low, so i think that's a positive. maria: great to have you on the program. david dietz joining us. don't go anywhere, my interview with sam zell is next. more "wall street" coming up. ♪ ♪ >> the economy keeps chugging along, but is the inevitable slowdown around the corner? the real estate titan sam zell doesn't seem to think so. >> all i know is i keep looking for problems and having trouble finding them. >> he lays it out when "wall street" returns. ♪ ♪yea, you can be the greatest ♪you can be the best ♪you can be the king kong ♪bangin on your chest ♪you can beat the world you can beat t

i want to see fewer csxs and more union pacifics. going up for steel, a very interesting sign. rates for steel. >> yes >> rates for steel going down. >> well, anyway, that was out of sync with what i'm hearing >> the opening bell, the s&p 500, at the cnbc real time exchange consumer experience, celebrating its ipo today. we'll talk to the ceo when the stock opens. at the nasdaq, a medical education group in brazil also celebrating its ipo. >> brazil is a really -- people don't understand, their medical community, i've had the privilege, extraordinary people underestimate brazil is an amazing -- my grandfather -- i've been trying to get him for years now but that is an interesting ipo >> we mentioned kansas city southern earlier but 164 beats by three cents revenue ahead as the transports could use more good news after this week. >> they need to keep -- they need the new nafta they are the main trunk line to bring in most of the autos being made and the factories that are being built in mexico for autos, particularly for the germans,

for vre in april a may, over half hit their target csx told "the post" its daar is propriet.spokesperson did not believe there had been a year over year increase involume. >> mr. bell is here with more on this hot and humid weather. i'm used t it. >> but we are almost there. tomorrow is the last day of l that means two-thirds of the summer will be over just like that! bam! >> i want summer last a few more months. >> it will last another month and a day. two if you count today. now is seem like summer all over the place. >>>o cl skies for some and clear sky for others in d.c. 34 days and 90 degrees or higher thiyear and today will be the 35th for sure. our july has been both warmer than average but nowhere near as rainy as last july. last july was the beginning of what was ancredible stretch of rainy weather around here. 3 inches more than we have now and this is double average for july. 78 degrees. southerly wind this morning with fair weather cloud over washington. 72 now in rockville. 74 in gaithersburg. manassas 68. 81 by the bay. planner for today plenty of sunshine the f

union pacific just out with earnings, a totally different story from csx.s dragged down with its peer, but they beat taken quarter estimates at $2.22 a share. their carloads were a little bit light, but they did wind up beating on the bottom line and operating revenue. that's not getting a nice pop in premarket. we will speak with the ceo of union pacific later this morning. that's at 11:00 a.m., lance fritz. coming up, the rest of the transports having a really rough go. we will break that all down with david kostin, next. this is bloomberg. ♪ taylor: --viviana: this is "bloomberg daybreak." union pacific posting second-quarter earnings that beat estimates. total carloads were down 4%. shares of united rentals are lower in premarket trading. construction and industrial equip into rental company trimming the upper end of its andnue -- the construction industrial equipment rental company trimming the upper end of its revenue. volvo's second quarter earnings were better than expected. truck sales rose, driven by a 30 brought percent jump in the usa and canada

transit agencies tell the washington post, the big contributor to this dop in on time performance is csx freight train congestion. the post says this month just 65% of the camden line trains were on time. vre in april and may, just over half hit their target. cx told the post its data is proprietary, they didn't believe there had been a year over year increase over volume. >>> fewer athletes have been able to say they have their own cereal. now, one of the caps can count this as another win. alexandre ovechkin can say he has his own cereal. the russian machine never breaks, the cereal is a weeted toasted oat cereal with honey and toasted almond flavor. start your day with some ovi o's. >>> when we come back, we're going to hear about a new lawsuit against the nfl over last season's controversial playo game. seeff yo yu know when you're at ross and you sce the perfect outfit? ooooohhhh! game on! now, that's yes for less. thing beats getting the latest trends at 20 to 60 percent off specialty store prices. at ross. yes for less. and realize you can get youeverything you need...oss oh, yeah

csx was ahead with their operating ratio. now, they look at the growth forecast and get worried.ly when it comes to trade. these railroads have to take things do until you get hurt by the global up. we see diminishment in shipping. alix: and housing. snp futures are up four points. to highlight euro dollar down by 4/10 of 1%. the dollar rallying after yesterday's fallout. you have potential elections in italy. david is laughing because of course, italy. this week there must be an election in italy. alix: use the the bond coming out of the bond market in desperate over 1%. david: we owned -- we are under 15% of the way through earnings reports with a full week ahead. welcome to sarah hunt. one thing we want to take a look at is sector by sector. we going to tech next week. the projections will put up a chart and this combines actual so far. it is at the bottom of the list of what we expect. sarah: last year, you had good sales in tech. there was concern on inventory corrections and you had weakness in the first quarter. people expect that to expanded the second quarter. some of th

lower demand for coal and sand csx had a similar problem. earlier today, saying he wasn't concerned about a slowdown in the freight business but did say passing usmca was key. west coast ports where chinese goods are brought in and u.s. goods are shipped out. again union pacific up 8%. >> jack, what do you make of this we didn't hear great things from csx, talking about a puzzling environment, ceo today, union pacific, pretty good. >> one of the beauties of the rails, you get updates on a weekly basis so the volume shortfalls we're talking about are not necessarily a surprise per se we talk about the weather in the midwest, the flooding, that agriculture has been late starting not news because we're hearing it so long how well are you controlling your costs not just the rails but the market overall costs in terms of what they can work their way through i think the rails wind up being interesting leverage to the idea of a trade deal when we talk so much about kicking the can, in terms of working to negotiate further, one of the provisos has a

looko the same extent, but at that, 5% down for union pacific compared to a 10% loss there for csx. the other sectors, we want to board, and switch of the we've been looking at bank earnings out today. retail units seems to be powering gains for bank of america. that is something we've not been seeing for some of the banks that have reported so far. rico units doing better as we see concerns in the trading unit. rising andley america down 3%. mixed in the banking sector as a whole. oil is trading below $60 a barrel. we erase today's gains on data out from the u.s. showing there was a big drop in fuel demand last week. therefore we are seeing oil falling off, trading at $57 a barrel. david: still ahead, u.s. lawmakers are not the only ones raising the alarm about facebook's cryptocurrency. why are libra fears unifying g7. plus the secretary-general of the oecd in just a few moments from now. this is bloomberg. ♪ david: this is "balance of power" on bloomberg television. i'm david westin. we turned out to mark crumpton. mark: notorious drug kingpin el chapo says he did not get a fair

these are csx tracks. you can see the military combat vehicles waiting to be brought into the district. the twoanks nearest the camera are both m-1s, in between the tanish vehicle is a support vehicle, and then the two vehicles furthest away from the camera are also combat vehicles. now, the president has said over the last few days he wants at least two tanks on the national mall for this year's fourth of july celebration, however, as we've been discussing throughout this week, there's complicationo tryinget vehicles this large through d.c. streets and into the national mall. that's the discussion right now, how is the president, is dod going to get these vehicles on the national mall, whether they're brought by train, to a truck, or if they have to drive through d.c. streets. that remains to be answered. we know at least for now, the combat vehicles are here, they're on the tracks and the president plans to bring them to the national mall this week for the celebration. drew wilder, news 4.nk >> tha you,

transit agency is telling "the washington post" the big contributor to a drop in on-time performance is csx freight train congestion. "the post"h says just month 65% of mark/camdenli ane vre ha their targets. date sax proprietary, but a erson didn't believe there had been a year-over-year increase in volume. >> well, siri spobz when you need something on your iphone or sometimes she's responded seriouy noorh someebody couldst actually li to what you're saying and potentially even private conversations? nbc's liz mclaughlin has more on the new privacy concerns. >> because at apple we believe privacy a fundamental human right. >> reporter: apple has long touted its commitment to protecting customer data. ♪ >> but according to a new report from "the guardian" humans are listening on conversations with apple's voice assistance siri. >> a lot of companies often havn folksoring content just to see how the voice services are working. >> reporer: according to anonymous whistleblower apple contractors regularly hear recordings with medical information, drug deals, even intimate moments. >> i think i

csx shares are under pressure.he railroad operator cutting revenue guidance for the year, expecting a decline of 1% versus an increase of nearly 2% csx citing economic uncertainty as this industry is dealing with the fallout from trade tensions. that stock is off 7.5%. >>> shares of seattle genetics are trading higher the biotech reporting a wider second quarter loss but revenue jumped nearly 30% beating forecasts led by the sales of its drug for classical hodkins. as well as t-cell lymphoma i will take a quick look at the market cap here. see what kind of company we're talking about. 10 billion >>> and nu skin shares are falling sharply. this is a marketing company that sells personal care products and dietary supplements. they are cutting second quarter guidance citing china's campaign to review health products being sold there >>> let's show you what's going on with monster beverages. this follows a report out of london that the british health secretary plans to ban the sale of energy drinks to all kids under th

. >> look at a what csx said, msc industrial earnings said the architectural billings index broke belower, the labor market is holding us up anything global trade related or china related is in a downturn >> the consumer is strong and the consumer is 70% to 75% of the economy. do i necessarily care what they have to say? >> since world war ii, two-thirds of the recessions we experienced, spending has been positive you don't need to have a decline in consumer spending to have an overall economic downturn. let's just say the manufacturing weakness continues that begins to affect the services side, which it has if you look at system of the surveys. if it starts to slow down the services side, do companies start to call a time out on hiring we have to see how this plays out. >> we talk about this a lot on cnbc i want to go out amongst the people i want to do the morning rbi and have you respond the morning rbi is you all of you out there are our reporters because we put out a twitter poll to try to get insight into what may be the single biggest question in america right now, how much the e

csx saying it was seeing the trade war affect its bottom line. it was not seeing an economic environment like this in a long time. that pressure will creep back in for the present. for the time being, both sides seem to think they can wait this out. david: shawn donnan, great to be with you in washington. let's go up to capitol hill and kevin cirilli. we heard there might be a deal on the debt ceiling in the budget. where are we on the deal? kevin: not so fast. steven mnuchin saying he has agreed to a two-year deal with nancy pelosi over the debt ceiling. we are hearing on capitol hill that details are still being ironed out. potentially, what they are signaling is there is a homestretch and even amongst republicans, a lot of the staffers are scratching their heads, especially the ultraconservatives in the house freedom caucus. they raise the concern to the white house about potential do with the democrats on this. then you throw in the effects of how many numbers and the numbers they would need. that is where this gets interesting with heightene

the national transportation safety board today pointed the theer at csx, saying company did not haveroper safety measures. in portugal, firefighters have brought a huge wildfire under control. the blaze burned for four days and injured dozens of people. about 1000 firefighters are still on the scene, watching over the smoldering hotspots because of the gusty wind and temperatures that have topped 100 degrees. lawyers for jeffrey epstein are still trying to get him released on bail. his attorneys are appealing a judge's ruling that the financier is a danger to the community into flight risk. they are asking he be allowed to stay in his $77 million new york city mansion while he awaits trial. prosecutors say that he poses a danger to passive victims and potential future ones. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. >> from bloomberg world headquarters, i'm shery ahn. amber: and live from toronto, i'm amber kammer, in for amanda lang. welcome to "bloomb

the rails are trying to have growth it worked for union pacific but didn't work for csx and i don't feel about norfolk southern that got slammed. i would love for them to come on the show watch this process when the cyclicals can pull it off, it's like a transformation from an ugly cater pi er pilcaa caterpillar to a beautiful butterfly. stick with cramer. >>> well, so many were focused on the mueller hearing today, the biggest news out of washington this week aside from the justice department's decision to crack down on america's biggest and best tech companies was the debt ceiling deal nobody talked about it congress agreed to lift the limit through 2021 and got rid of the budget cap. what does that mean? it means the companies that feed at the federal trough are safe for the next two years and nobody is more relying on government spending than defense contractors. which should you buy i got a brand-new play in the defense space and it's the best. it's called l 3 harris technologies created by harris corporation which you know we like and l 3 technologies, an old friend of the show whi

yesterday industrials underperformed, underscored by the railroad operator csx.art shows the dow transportation average lacking the broader industrial average. bulls shis make stock udder? eddie: i think it should. i read that piece earlier this morning. it is a worrying sign. it is another sign that there's a disconnect between the real economy and what some of the data on consumer spending and so on, or sentiment data is showing us, particularly on consumers. this is another factor that we have seen, the drop in u.s. stockpiles of oil. not only of oil particularly, but of gasoline. that has been slower than expected. it is all kind of feeding into this narrative, that people just aren't spending the money. netflix is another one. it feels like people are getting a little nervous, that they are cutting back, even though job growth is fine. i think we are at a tipping point, and whether it turns out dal wass right or -- was right or whether bank of america was right, i don't know. we will have to wait and see. manus: i think everybody has to sell something. that

csx expanded losses after can youing their revenue.ou have winners and losers in all the segments. semiconductors are having a pretty good day, riding the tail of the. >>> for puerto rico, mounting calls for the governor to resign. high tax rates of new jersey, new york, connecticut, they're suing to challenge the administration's salt policy. are more people about to flee for florida? senator rick scott is here with his take on all these headlines and more. that's next. ♪ as a doctor, i agree with cdc guidance. i recommend topical pain relievers first... like salonpas patch large. it's powerful, fda-approved to relieve moderate pain, yet non-addictive and gentle on the body. salonpas. it's good medicine. hisamitsu. today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to he

csx, that stock is going off the rails and taking the other names with it. its shares are on track for their biggest one-day drop in nearly 17 years. down 10% right now after the railway giant posted lower than expected quarterly profit, chopped its full year revenue forecasts. why? it says it's experiencing weaker than expected shipping volumes for its industrial customers related to the trade problems. yes, this is stuff that moves from cargo ships coming in from china to the railroads. there are worries a freight recession is under way in the transportation industry. that's viewed as an economic bellwether, of course. norfolk southern down 6.5%. union pacific down 6.25%. kansas city southern down 4.5%. all those names slamming on the brakes as well. investors seem to have digested their profits after blue apron tacked on in just the last 48 hours a significant percentage, right now it's down 8%, but over the past two days, they have been up 27%. not bad. yesterday, what got this stock juiced to the upside? the meal kit company surged 35% yesterday. why? w

we have this we have csx which was a horrible loser in today's session. >> absolutely. >> what does thatosaic paint in terms of the industrial picture in. >> it paints a slowing economy i will add in more european car sales were not that great today, so we have ford and gm coming next week. it paints what karen has been concerned about and talking about, is you have this stagnation in the economy because people are uncertain they don't know what to do. >> what is it unlikely to result in powell cutting basis rates 50 instead of 25. >> and that solves everything. >> some of it is priced into the market, don't you think. >> some of it. 25 maybe, but you don't know it changes i think the market right now is not worried about granularity in stock specific names it is worried about the macro. we have earnings, we'll worry about that as we enter the later in july, we will worry about powell. >> getting to ebay, let's get to aditi roy in san francisco with the details. >> hi, melissa we have been monitoring the calls as well. at one point the stocks were up 7% in after hours trading. we're goin

, one is one too many, but last year we only had one and that was in casey, north carolina, between csx and amtrak. >> we're definitely going to be keeping the record open. if there's anything else that fra wants to suggest during this time period we'll look at implementation from the ntsb on this accident. >> if i can, i would certainly afford your staff more information. i have more to share. >> thank you. >> i believe it's senator du duckworth next. go ahead. >> i'll take it. first i want to applaud the diligent efforts of passenger, commuter and freight rail operators. as we've discussed on several occasions railroads that are still working to implement ptc have so far sufficiently demonstrated continued progress toward the december 2020 deadline. you will continue to keep us apprised of any changes in that progress, is that correct? >> yes. >> thank you. as your testimony suggests, metro made the tough choice to make early investments in ptc. i saw that when i came out to visit the yard. even after ptc is fully implemented metro faces an additional $15-20 million in additional annu

that they recovered very quickly after that december drop so norfolk southern, kansas city southern, csx, union pacific, they're all up more than 20%, the share well off of their lows put it together and since transports hit their september high, they are down about 10%. that's the white line there, the dow jones industrials up nearly 3% back to you, melissa >> thank you bob pisani on the new york stock exchange guy, i know you fancy yourself a dow enthusiast >> i was around when they -- >> came up with it >> what does it tell you when the transport index is so divided in performance when it comes on this subsectors >> i'm not trying to be glib, i think 50 years ago i told you more i don't think nearly today the -- the overall market is as reliant on the transports as they once were with that said, i don't think you can have ahealthy rally without both the transports and the russell, and right now you have neither it's just -- that's one more arrow in my bearish quiver >> if you're measuring -- bob did a great job of kind of breaking it down if you're measuring the transports purely as r