everything but faang to do well because faang it means we're in a hopelessly narrow market what can say the faang there is positive now. >> yep. >> they are. >> yeah. netflix is still up 103% for the year. >> everyone feels that every deal is done in defense of net flix. >> against netflix. >> what do you think about >> i think that's true. >> this is going to be empire call in a large sample how many people on netflix this weekend? >> umm, two out of three. >> yeah. >> it was so beautiful out. >> yeah. my daughter was watching "stranger things." >> there you go. >> we were watching. i wanted to put on the world cup and she said watch it on your espn plus, plus, plus. >> watching "the handmade's tale." >> i'm down enough i don't need to be more down. >> that's going to be get you opening a swiss bank account quick. >> i don't want to stick my head in the oven. >>> let's get to bob on the floor. the dow is down 220. good morning, bob. >> reporter: good morning. three to one declining to advancing stocks we're not really rallying at all. it's even worse in europe. take a look at the e

i use this as a faang proxy.ically people talking about with this group, 26% year to date returns, and, obviously, it still is the pace setter but strength elsewhere, especially software platfms a the like. >> thanks, mike santoli. >>> let's goet to contessa brewer >> chub, aig, allstate, travelers all dipped on news news coming out from the information that amazon is considering getting into the home insurance business. they'd do so in connection with their ai products like robots that could check for fire or broken windows or things like that and then offer some sort of package deal to customers. again, once we saw that coming out from the information, we saw these other home insurance companies taking a bit of a dip. but everybody but travelers has rebounded somewhat on that carl >> amazon strikes again. contessa, thank you. >>> coming up -- financial institutions have faced a growing number of cyberthreats, and the s.e.c. is ramping up efforts to tighten security. we'll be joined by s.e.c. chairman jay clayto

names, faang plus really that we're looking at. the top ten tech names that have moved up the furthest this year and have done the heavy lifting because they're such large cap names moving this market forward apple is negative for the month of june, trading at its 50-day average. seeing technical damage. the interesting thing is that the biggest name trading to the downside today is a company that doesn't have exposure to china within that group. netflix. it is off -- was off as much as 6% this morning. it is trading already atwell above its average daily volume over the last 30 days or so. and it's the worst we've seen percentage terms for netflix since april, which has a lot of people talking about the whole faang plus there is an index for that, for futures. it's gone up three times as fast and folks are wondering whether it's time to take a big pause here back to you. >> bertha, thank you for that look at what's going on with the nasdaq now let's get to seema mody at headquarters with the european close. seema? >> jon fortt, eu

. >> we'll watch faang today. >> yeah. >> faang comes back later in the day. >> really? >> when you get trade wars you get a slowing of world trade facebook, amazon, netflix. >> adobe is a story you had. down 3%. >> yeah. i mean, look people feel like there was degradation. in the end, a tremendous number of firms raised price targets. this is an e commerce tech monopoly it makes me feel like if microsoft will come down, you have to buy microsoft. that's how strong they're coming on a lot of retailers don't want to work with amazon anymore they feel like they're aiding and abetting the enemy. i think it matters tremendously. and i think that the read through with adobe and it shouldn't be down this much but it will because there was some bad talk about it. but microsoft. it wasn't the prototypical revenue didn't blow out. >> and jpmorgan guy is a smart guy. people are freaking out. citi said something that was hearsay. that splunk, another e commerce, is plateauing and that was hearsay. >> he used the word plateau. i'm going to google plateau as the guys are becoming bea

we have to ask jim cramer whether we're allowed to put microsoft in the faang he's the father of faangk he would say no >>> speaking of, course, the key story we've been following markets are selling off. chinese investments in the u.s technology exports to china also now under imminent threat. the administration may announce some additional barriers targeting china's technology growth by the end of this week while breaking down the conti e continued escalation, we're joined by mark zandy from moody's analytics. mark, we've had a parade of strategists and other economists who follow the market and say right now given at least where we are in tariffs, even where we may be in the not too distance future, it's still quite small when is it no longer small and when does it start to make a feel difference? do you know? >> it's already making a difference if all of the tariffs get implemented, and that's about $100 billion worth of imports to the u.s., that will save about 0.1% off gdp in the coming year. but if all of the tariffs that had been threatened by trump are actually implemented, an

>> not all faangs are created equal. look at a facebook or google and they're actually trading at very reasonable levels. in fact, below their expected growth rate, somewhere around 10 or 12 times, even 20 to 25 times. netflix or amazon are growing, obviously, a little faster but they're trading at substantially higher multiples that said, you know, i think generally we believe that valuations are still reasonable. we believe that over time, as you look at these businesses over the next 12 to 18 months, two years -- not necessarily the next three or six months -- there's still a large upside that's what you're seeing reflected. >> i think a lot of investors know exactly what you mean youssef, brent, have a good weekend. thank you, guys. >> thank you. >> president trump tweeting about a possibility of a tariff on cars imported from europe, jolting stock this is morning. phil lebeau is in chicago this morning. phil >> this tweet from the president is a straight shot, couple of days after the executives from german automake

equities, think about the faangs the faang stocks are an expensive u.s.market, they are really expensive on a relative basis and the best i think you can say about the valuation is that they're not quite to internet level bubbles so i think the reality is the symmetry of the risks you're facing right now are asymmetrical, very relatively modest upside with potentially major downside fz you get a major hit to earnings due to a recession so i think your portfolio should reflect those risks. >> go ahead, doug, and jump in >> i mean, first of all, faang, these companies have earned where they've been i was a tech fund manager in the year 2000 so i know what the bubble was and i can tell you the ten stocks i was touting were all a hundred times-plus earnings a lot of those companies have free cash flow yields of 3%, 4%, they're growing much faster, so i take issue with the fact -- and the reason they are at a premium is they are the few companies that can grow, regardless of the economic cycle. doesn't mean they won't be hit hard if we go into a recession, as

tech and faang stocks look ed t be flipping the market, but banks failed tol rallyough they moved up towards the close. investors with roried about the threat of a trade war between the.s. and china and went through the list china has rolled out in retaliation. chipmakers, soybean farmers, they're among the victims of this. semiconductor names lintel, broad com and lamb research all came under prsure. intel got ungraded by a firm. and if you sti t thinkde uncertainty issm no big deal, l caps tell a different story. russell 2000 is up about ha11%. erre twice what the s&p 500 is up this qua small caps have left exposure to international trade war than big caps. finally, one other factor could be seasonality. the dow has been down roughly 1% in the june option expirationsc day was on friday. that's one of the big volume day of the year. i'm bob pisani at the new york stock exchange. >> the commerce department today announced an investeation into dumping of steel propane cylinder frs china, taiwannd thailand. just the latest in escalating trade tensions that has many wondering what comes

we have a track around the ny faang plus index. this shows the daily performance. you have quite a streak here of 11 in the past 12 sessions that this index has been higher, and it also has been hitting record close after record close. optionslly told us some , you can now buy futures and options on this index. that could be something that is affecting the flow of trading as well. to smalle-cap tech cap, we have the russell 2000 higher today. it has not recouped its losses from yesterday, but some of its components doing quite well. the company is raising the cut it takes from each sale, lower than it was a month prior. analysts are happy about this move. key bank saida -- this would be a good step for the company. also, this company is reporting -- it's experimental nasal spray is an alternative to epipen showed promise as an alternative to that. we are seeing those shares up 15%. finally, transcontinental realty is trading higher, in a joint anture with an unnamed party, major financial institutions that includes 41 existing properties and 12 properties with righ

need to expand their search for growth instead of looking at what has worked in the past, say the faangmight want to expand your search for growth and maybe adjust your expectations for a longer economic cycle as opposed to just thinking that it's going to end just as a matter of time or just simply because we saw a slight slowdown in the pmi numbers. just this morning, we saw the pmi numbers out of europe keeping people off guard >> ron's dying to get in here. >> the pmi numbers in europe are actually rolling over and as far as individual exposure to equities, net davis research put out a chart this week, individual ownership is at the highest level we've seen since 2007 and 1968. >> highest level of ownership, in other words, there's so many people in the market that's often a contrarian cycle >> that could be etfs. >> could be 401(k)s. >> does it matter? >> of course not >> what's interesting about this losing streak here is that it really started with jerome powell and the fed meeting and this whole notion that, well, first of all, we know how many rate hikes are coming or we think

the other faang names feeling the nasdaq twitter keeps flying higher.in, this stock is soaring today, now up almost 20% in the last week alone, another 5.7% gain for twitter, melissa. >> all right, sara, the trump administration preparing to slap new tariffs on china as soon as tomorrow kayla tausche joins us from washington with the very latest. >> reporter: hey, melissa. the bhous white house is plannio roll out those tariffs tomorrow. it will be a truncated list of chinese exports. the list is expected to include between 800 to 900 products, compared to the oshriginal listo 1,300 products publish bid the u.s. trade representative. the final dollar figure is unclear. the president will be meeting this afternoon with his top trade advisers, and he does reserve the final decision on how to move forward. that being said, one senior administration official called it a fait accompli, noting that talking points had been circulating among ten government agencies and that the list of products had already been uploaded to a government database for upcoming imp

us on the last day of the first half for alook ahead to 2025 why he says he'll still be holding the faangyears from now as we close out the month and quarter, look at some of the nasdaq leaders for the start of this year, for the first half. netflix and amazon in the top five along with both classes of twenty-first century fox and align technology we'll have much more "squawk on the street" after this break at the marine mammal center, the environment is everything. we want to do our very best for each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most sustainable organization we can be. any time you help a customer, it's a really good feeling. it's especially so when it's a customer that's doing such good and important work for the environment. together, we're building a better california. >>> welcome back to "squawk on the street." i'm sara eisen with carl qui

it was faang. >> not today. >> we're coming into earnings season in a few weeks. we spent the last few weeks asking ceos of large multinationals about their views on where this trade dispute may lead take a listen. >> in terms of trade otherwise, in terms of tariffs and things like that, we're not hugely exposed to largely our goods are in country. certain items like coffee beans, happy meal toys, we have to trade those around the world so we're keeping an eye on what it means but at the moment, we don't feel significant. >> we're now over 3200 stores in china. we're opening a new store on average every 15 hours in china. and with the middle class population growing to over 600 million. we think we have a phenomenal opportunity to reach more and more customers in china. all of mainland china is a company operated much we're focussed on the long-term growth potential it presents for starbucks. >> our fear, of course, is that a trade war, depending on how it develops, could dampen economic growth that might be in the united states it might be globally you never know

i think it should be infrastructure i feel like there is you've got to watch adobe it should be faang has been amazing. >> it's funny to think it's not. given the run. >> it's up there in terms of people who have reinvented a company and done it in a way that is just no one's talking about. it has become the commerce cloud. and when you look at the stuff they do, they've got a lot of artificial intelligence built in it's an exciting company i mean, you can, like, show, i mean, i was once in a room with adobe where on a wall. i was like this. and on a wall they put my face it just read my face read my face >> if you can only own one adobe, nvidia, or sales force. >> oh, my god! buying sales force it was so good there was somebody last week who criticized jenson wang, the ceo of nvidia by saying he's not bringing out a new chip. he just brought out a new chip what world do you have to obsolete your own ch the next day if you ship it fabulous, and amazing cfo would say give me a break. we didn't make enough of this overage project with ibm and jenson jenson is incredible i have to be his

energy,als, transports, those that have not kept up with the marketplace or the faang stock run in the last few years. technology and biotech is an area that has not kept up sufficiently but in tech, you have a lot of growth. it is a dual story about keeping trade issues in mind and guarding against some of those issues, but also just to bet on better corporate profits, higher profit margins and a stronger u.s. economy. vonnie: we have to ask you about the vs -- cvs and -- cbs and viacom. what the you anticipate will be the outcome of all of this -- what do you anticipate will be the outcome of all of this? michael: we got out of viacom recently. and ie tired of the story think the risk-reward was just not there anymore. we do maintain a position -- maintain our position in cbs. we one of the best outcome for both companies because we had ownership in both. at this point, beating out of viacom, if that deal goes through, i would like to see it allows cbs to run the business the way they want to run it. that remains to be seen, given the ownership issues there. i believe that either via

companies so i think you can look at that from that perspective where these faang names are going toore active as potential suitors in a rapidly changing landscape. the big tech -- technology and internet companies are investing aggressively in content. i think that really speaks to how the landscape has continued to evolve, and look to these companies to become a lot more active going forward >> thank you appreciate you >>> there's a really good piece on cnbc.com by alex sherman laying out what it means for every single media company, telecom, from discovery to -- >> we've had so many companies that want to provide content >> yeah. >> and the -- and the companies that produce it, whether it's fox or warner brothers or viacom, they're l out there. >> they need distribution. >> and they istributio >> the question is, are the telecos going to be allowed. >> well the netflixs aren't telcos, of course. >> there's a lot to chew on later with that decision >>> also coming up on "power lunch," let's go shopping. from indoor furniture to outdoor boots, two big retail movers to t toge we'll h

so the faangs are a good investment fast forward five to ten years, it will be interesting to see howill on that level. >> we're not seeing a lot of new money going to new start-ups right now. is this a reflection of the fact that unicorns are staying private for longer >> no. i think there are two different areas, morgan. unicorns are staying private for longer, including regulations we put on ipos and making big bets without having to explain every move they make every quarter there just isn't enough pipeline coming in. there's plenty of money. but the number of start-ups are at a 40-year low as we talked before, morgan, other countries like france in the last four years have gone from 140 high-tech venture backed investments a year to 740 at a time the u.s. is decreasing i think we've got to become a start-up nation again. we are no longer number one in innovation in the world. bloomberg has us at number 11. i think this is a national issue that we must become a start-up nation again and realizing continuing to do the right thing for too long gets you in a lot of trouble. >> john,

brent, why are these particular stocks not just in faang, i would include microsoft as having a nice, apple has done better than many expected with the iphone slowdown is this the case of the strong getting stronger or is there a particular dynamic at work >> thanks for having me. i think the fundamentals remain exceptionally strong you're talking 20 to 30% growth rates across many of the names in internet that we cover. you also look at some of the traditional sectors that have weakened and tech has picked up the slack. lative valuations on facebook and google are at 12 times, a discount to the internet pee group. there's still room between 10% to 20% outside in many of these names, even considering the run so, overall, i think there's a combination of factors that are at work between tech inflows, which was a record last month, $7 billion of inflows, $26 billion flows in most of that wasn there are multiple factors that are at work right now. then you look at m & a you look at microsoft with the github acquisition of $7 billion. these multiples are multiples we haven't seen for man

because when you look at something like -- so look at the fang names faang. the one that's most affected by international trade issues is apple. apple is the biggest weight in the dow. it's the biggest in the dow by extension. if you had a different name in the dow instead of apple, it might not be a divergence at all. and c, it doesn't have google or anything up 0.6% on the week. 0.4% on the week the s&p is down 0.6% it's a wash. so i don't think despite the fact it's eight days of a closing lower than the day before, i don't think the market has changed at all materially from where it was two weeks before i just don't believe it's important beyond today's look. >> mentioning in terms of momentum i think this is indicative of investor sentiment growth at any price it seems like has continued to be most people's strategies. and, you know, everyone is looking for uncertainty in the markets. given the policy and trade and, you know, regulatory questions people have in their minds at this point that means further crowding into these trades that have excellent fu

was the names that people were buying for growth, let's call them the small caps, russell, tech your faang stocks that are going to work whether we have a trade war or not. they were weak. wilbur ross was on the air this morning. he talked about these trade war tactics as being negotiating tactics. they want to make it more painful for our trading partners so they'll change their mind. that's not exactly a great scenario for the global economy. there are quite a few items today that i think if you're a market participant, you have to say, you know what let's be cautious at these stages. >> it's one things for company to say they're feeling the pressure, but when you have a company actually say the exact impact that's when it really starts getting quantifiable. hey, this is really something that's hitting them. >> i looked at it as something very specific to them as some sort of, you know, general kind of catch all that they could use because they in particular are -- i don't know how they would be able to gauge so quickly exactly what the impact would be and then to forecast out when we re

scarlet: they've also trailed their faang peers.ailed netflix, there. >> it's growing almost as quickly as amazon and theing for a third of valuation. it's not a cheap deed value stock. scarlet: what would make you mind onour facebook? >> if i saw advertisers say this troubles us, but we're going elsewhere, that would trouble me because it will affect the earnings. right now, there's nowhere go. that they can julie: chris thank you so much. interesting chat about these underloved names so far. chris thank you so much. well, coming up next, the most was important night yet on 2018's political calendar. we're going to have the latest on the state primaries and what the results say about the midterms. the midterms. >> i have first word news. democrats today took aim at administration's new zero tolerance policy that has accelerated andrations of children their parents at the u.s. border with mexico. >> what this administration doing is inhumane. taking children from their parents, from their families, from their mothers, must stop and

you also look at the faang names from the time facebook went public, it's also outperformed over 800%o fill but they feel confident he will continue the chains of success >>> meantime, we've got to check in with our man in the sky this morning. robert frank on his trip to the hamptons robert, we don't do this that much how is it going up there >> andrew, it's going great. from delivering pizza to delivering wealthy people. we are about 25 minutes into this flight. we just passed ft. jefferson so if you were in the car right now, to get to where we are is probably about an hour to an hour and a half. we are only 25 minutes into this flight soit really shows you that what you're buying for the $700 seat this costs is that time. and by the time we get to east hampton which will be in about ten minutes, you're buying an extra two hours on the beach so is that $700 extra per hour on the beach for some people with the money, it's worth it. we will check in in about ten minutes when we land and a beautiful morning. >> not a bad day to be in a helicopter headed to the hamptons robert frank, a

at&t is going down faang is working out well. >> time warner is up. >> a little bit. owes delrahim an apology. >> when we come back, an exclusive with uk prime minister theresa may days after the contentious g7 meeting between the u.s. and the european allies >>> we'll talk to alan greenspan. sara eisen has that live in washington, d.c. nasdaq coming off a record high. big morning, as we said earlier. mo sawreq"squawk on the street" minute experience lexus safety system+ standard in the 2018 lexus es and es hybrid. lease the 2018 es 350 r $339 a month for months. experience amazing at your lexus dealer. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. release the latest decision at 2:00 p.m. eastern time followed by chairman powell's news conference. the fed is widely expected to raise rates this time around and the investors will dissect the statement on how fast rates might increase theyconsider what pbdid today. up 3.

look at the faangs >> look what netflix and disney and comcast are trying to do >> exactly i think it'say because of the disruptive aspects. how you capture it, analyze it, how you utilize it, distribu it and i don't think the futurists talk about the markewon. i don't think that's going away any time soon. that and the need for scale in an environment where you have good ceo confidence while they question how long this sort of bull market is going to run. the markets are benign and capital availability you raised $100 billion in broadcom so a lot of factors that i think will permit this to drive. i'm not discounting macro because i think i was watching some of the stuff here today around cfius and around trade. there are realotential impacts but at least at this point we do feel decoupled from short-term fluctuations in markets. >> you mentioned the disruption, but the apples or the googles or amazons of the world, amazon, to be fair, they did the whole foodal they are named all thee of doing the big deal they don't seem to me to be in the crosshairs of the potential huge acquirers >>

alibaba has been great if they have a faang over there. >> alibaba up 21%.y the way, technology generally positive but not facebook, jim you know, they gave deepak excess to data on users and friends. there continues to be focus on what is going on in california. >> yeah. >> the race there. >> just keeps coming for them. >> i come back to what the ultimate feeling was you put your stuff on facebook do not expect any privacy. and this article today acted as if there's -- let's just say a brief there's some privacy and your carrier won't get what you put in i almost say to the "new york times" just because you're not interactive, because you don't post on the "new york ti site, doesn't an that if you post on facebook you actually have an expectations of privacy. it's almost as if when i read the article, obviously, i'm motivated by anything involving the "new york times" itself. >> right. >> you want to tell the writers, guys, are you on facebook or instagram? do not realize everyone in the world can see it the goal is not to have nobody to see it. the goal is

we don't know what to do with it we've seen a market driven by faang or the market driven by inflationriven or the market that does well with the banks. we don't seem to know what to do with the market that is good. >> right. >> but like that february jobs number it was a scare on wages. >> yes. >> is there a possibility that a truly hot cpi does that tomorrow >> i think it will contradict what we saw with, yes, that would change the positive that we're in everything has to go right but the market is saying typicalit'o right. that's unusual the stocks seem to be breaking out all over the yes, is need to hang on to a really negative hot cpi number they need that so badly. >> 2780 on s&p. >> oh, man. >> yeah. right there. we're getting headlines out of the comcast annual meeting julia watching that. >> reporter: good morning, carl. just wrapping up moments ago the comcast proposals and directors elected as expected. of course, this comes ahead of judge leon's ruling at&t/time warner acquisition that ruling expected tomorrow afternoon. now if at&t wins, we can expect comcast to make its o

i think it's underowned relative to the other faang stocks.hink the stock's going to continue to go higher. but again, i have to say, i don't like facebook. it's not my deal, but i would buy the stock. >> okay. >> you don't like it as a product. >> okay.to be honest with you. >> you're not necessarily the target >> my kids like it >> i bet they do guys, thank you. dan fitzpatrick, eric gains. >>> here's what's coming up on "power lunch." bullish call on amazon and the analyst who just changed his price target to $2,000 what made him do it? >>> but first, back to sara at 3 world astrid >> we're going to talk to the ceo and advertising giant of group-m, his take on the state of advertising and why they just chose to make new york's financial district their new home that got 14 floors in this new building "power lunch" will be back in two minutes. ♪ in new york welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com ♪ ♪ i'm on top of

of why cook's been a pseudoambassador between this is because apple, as opposed to any of the other faanges, which really have de minimus revenue and what i would say exposure, apple is heavily invested here and needs to make sure there's no issue. >> how much, if they mess with apple, and the supply chain, how much do they end up hurting themselves in their own workers? >> well, that's -- and that's fundamentally our thesis and the man on the street is that there could be talk but they're not going to shoot themselves in the foot, given the foxcon situation, how much that employs within china as well as apple and cook have been the one american company which have had the olive branch out there so i think it would be stepping over the line by many >> is there a sort of drop dead date taking a look at when they want to launch these phones, when the components need to get into the country in order for there to be a ramp in production, is it august is it july >> it's really late july >> it's one month from now, basically. >> so, really, in a month, you'll start to have, through the supply ch

ism services was strong up, up for th100tstraight month thank you for that information tech stocks, faangm, not quite a whole group, not all five of them, but amazon, apple, crosoft, nvidia, netflix all at 52-week highs, in some cases more than that retail stocks have been market outperformers in the last several days and really the last month or so, new at least 52-week highs in macy's kohl's, tjx, raffle lauren, alph lauren. very odd bifurcation, particularly in consumer staple names. and we've got the cruise lines also hitting 52-week lows. morgan stanley did downgrade carnival cruise line due to a slowdown in cruises due tohurrir fuel costs that's certainly a and ifinterested, finally, in what's going on with investors and trading in general, watch tomorrow morning, 10:20, we're going to have an exclusive interview with the chairman of the s.e.c., jay clayton. he'll be appearing at the global ange kvs a'll be talking to him and this will be his first live interview since becoming the head of the s.e.c more than a year ago we'll talk about trading and investor protections and even bitc

the faang stocks got involved. netflix was down on the day.did the action tell you does it spell anything more ominous as the tensions don't seem to be stopping escalating around the world. >> if the tensions keep escalating, you're right there won't be many things that are standing up strong i think the fact that those two areas held up so well said that's where investors were hiding the question is that the right place to hide? my view is in portfolios, you want to have a lot of your earnings coming from the u.s., which takes do you smaller cap and away from a lot of multinationals look, nobody wins in the short run in a trade war no one there may be a relative winner and a relative loser but everybody loses absolutely and we've got the tariffs, we've got threats of more tariffs. will we get export controls? will we get other trade restrictions that's what the market is worried about. if we stop right here, it's small. relativeo the u.s. economy in the global economy but every day or every week there seems to be, i'll use the phrase again mo

the faang stocks contributing to today's gains, led by alphabet amazon hitting a lifetime high as welloday. semiconductor stocks also in the green. the etf, the smh on pace for its fifth straight weekly gain amd, intel, lamb research, they are among your leaders today >>> another big winner in technology today is apple, moving higher, the level to watch is 190.04. that's a railroad close. thank you for sending that out apple's coming off its best monthly gain in nearly five years. one analyst sees another 10% upside from here, raising his price target to $210, which would put the company above $1 trillion in market cap. joining us, the analyst who made the call, steven from ubs. welcome, steven. you put out a survey and that led to the price target raising. tell us what you found >> well, the two are actually a little bit separate. the survey is our ubs evidence lab twice a year survey. it's probably the most comprehensive on the street. 6,700 consumers across 5 countries and it's actually quite mixed for apple. on the negative side, it suggests that buying intentions for the iphone ov

you read the papers and think let's send the market down 20% someone on said faang could destroy us is supposed to destroy us i see so many companies doing well i'm focussed on the companies. if you're focus order the s&p, i can see how you say it's wrong i have a harder time because i deal with the companies themselves >> can i ask you a macro question i like to talk to you. do you think the economy is at a place we need to orchestrate a slow down? >> no. >> i heard that earlier. >> we have a lot of slack. rates, you know, when you look at rates they have moved up a lot. they're committed to a couple more but at the same time the actual wage growth is incredibly low. i know the tax reforms made the economy grow faster. but the last time i looked, that was good for people. i mean, i care about our country more than i re about switzerland and italy. i do i care about our country more than canada or mexico or argentina. you know, and unless it's the world cup. then i don't care because we didn't make it. >> yeah. they tend to -- i don't think that makes us bad people because a lot of ot

i look at faang and microsoft. power us through trade angst and it becomes secondary or are we at the whim of every possible set back >> i think we're at the whim of the set back you buy the whim because it seems that there's always something that comes out that is good let me tell you where i don't like the narrative this is important. where is it that the status quo is good? where is it right that it's good that our steel companies don't make enough money or that our country accepts any amount of bmw and mercedes where is that somehow good for us and our stock market, joe that's the conventionaom not tr. we would do better if we sold more cars ourselves and the germans sold fewer we would. >> we don't know the counter factual, jim it's another one of those times we don't know. and we have seen status quo through one administration after another on both sides. so you're right. you're right i guess we'll know at some point if it blows up in our face trying. >> it's like where is the status quo in italy was good. 11

mean, this has been a horrible decline and we haven't talked about it because it's been masked by faangple of domestic stocks. everybody thinks they're hunky dory i think maybe some of the international stocks because they have been down so much. >> what do you think of the supreme court and amazon, jim? is that a right decision is it going to affect things >> i don't know. i mean, it's interesting the real estate you get the sovereignty center stock had a huge move yesterday. yet a lot of these companies have been paying amazon was out there telling you they've been paying and i just don't think it's that much of a big deal i would have thought that wayfair, for instance, was going to get hurt more but people love these retail stocks, joe. we saw a couple of neutrals put out. these stocks have been high. to discover them now, to discover lulu now. wait a second, where were you at 80 everyone suddenly decides these are good i don't like this. i think the better values are in the industrials, even though they're about to report negatively we'll see you in a couple of minutes. let's begin

there's some themes outside of faang that are doing really well you have automotive modernization, youmoving the stuff around, you have security all of the things used to be nice to have you have to have them now. you know, if you're going to be working in the cloud, you're going to be managing, you know, artificial intelligence, investing, we continue to see technology companies like intel that are producing the chips they're being installed and a lot of supply, you know, suppliers in that space that are doing well that's where we tend to invest so it's been good. >> you mentioned moats, that's a buffett thing, right, becky? >> an elon thing. >> right is he going to make candy? >> i don't know. he's got images of his candy. >> why wouldn't he make candy if he's making flame throwers i would do with the candy before the flame throwers - >> cheaper price point. >> do we know anything about it? a chocolate based candy? >> no, peanut butter brittle he's trying to do a knockoff of see's candies. it's identical but with his face on it. it's on twitter. >> i think so. so you're loading up on

that tell com is not just competing with tel com anymore it's widened to include many of the faang stocks mentioned it's in his hands. i fully respt he's making the right decision, but i think we have to know that, you know, sprint and t-mobile it's interesting because we've heard recent reports i thought that was going to be hard to get done there seems to be an appreciation in d.c. that just what i mentioned the competitor field is wider than at&t, verizon, sprint, and t-mobile i think they're looking, the lens that is being looking through with this competition has gotten much wider. >> so if there are conditions, what would thatructured like, in your view >> that's a bag of tricks. i think if one of the conditions is selling direct tv, i think that's a non-starter i think the whole conversation who is the buyer of that asset has been clearly challenged recently i think there's behavioral conditions i think the biggest concern is that some of the content would be restricted from the at&t's competitors. you know, i think i've heard randall stephenson say on your show it's almost a nonse