i think what happened is the growth stops outside of faangs.ook at things like commodity plays, look at industrial that was very much exposed to growth markets. they're the ones showing the retrospective numbers you should expect. i try and stay away from faangs, they are such a big factor on mark, that's clear, but the underlying outside of those five is quite good and longer term i'm probably more bullish than i was three months ago. i think 2019 might be better than it was expected to be. ramy: so some folks have been started to say this could be a term for the defenses but you're thinking this is a buying opportunity. >> i do. i let markets define -- picking the top is always fun to do but if you look at where the bearish goals have been made over the years, they've been wrong every time. i don't allow that to happen. i think this jut look statement has been slightly more positive than has been forecast. a lot of people have been alluding to whether or not you -- whether or not you hear talk about the tariffs. only around 10 to 15% of compa

of the faang stocks in focus, next. if you would like to check us out on the radio, listen to us in the u.s. on sirius xm. this is bloomberg. ♪ out withphabet earnings and just to recap, this was a home run quarter for google. investors had been looking for alphabet to jumpstart momentum in faang stocks. remember, s&p tech heavyweights facebook, amazon, and twitter all post as well and netflix, which had a conservative forecast for the rest of the year, disappointing the market. with us to discuss the broader outlook for faang stocks, we have our guest and in our office in new york, we have our market reporter -- on markets reporter romaine bostick still here with us. get any credit for driving the broader tech momentum, in spite of netflix's with last week? >> thanks that, emily. i think people are looking at alphabet as a bellwether, and rightfully so. the fact that the company delivered 26% organic revenue growth -- were company of the size, i think says a lot about google, but also probably something about the broad

its holdings in the faang index. adams said that facebook and netflix were sort of the -- gina martin adams said that facebook and netflix were sort of the keys. -- the investment community really messed in terms of advertising growth and they thought that maybe it would be infinite but that is only half of the story, that the rest of it has not played out yet. there has been a lot of concern with facebook about data privacy and fake news and what that means. alix: a great set up. thank you taylor riggs. still with us is kevin holt of invesco. intel is in their top 10 holdings. if tech doesgh have that value for you. kevin: the faang stocks are traditionally into value territory. one of the things we are seeing whether it is considered growth over value, we're looking at everything and tech is so interrelated when you are looking at intel, it is related from a derivative standpoint to these social media names but when you look at these social media names, there is a question in terms of how are they monetizing this p

okay, the markets is mostly the faang names this year if the faang names move down, the s&p is moving problem with that narrative because it comport with the actual facts. there's plenty of ways to make money and it's wrong to say that faang is everything and nothing else matters we'll show you with the s&p 500 for the year up 4.6% year to date. it's not an amazing number but it's a majority. the breadth is positive overall. and market cap matters you can make money a lot of ways 80% of technology stocks are positive for the year. almost 70% of health care is positive this year this is the advancing. the energy stocks 61% of the stocks of energy are up this year 56% are up in consumer discretionary names. if you want to own these separate sectors, you would have done fine. so technology, you would have owned that faang are important technology look at oil and gas. look at aerospace and look at health care. you didn't have to have faang stocks to make money this year you own these other etfs you would have done fine it's not all about faang even if the market cap is heavily weighted at

so-called faang expanded. this has been one of the big out performers if you look at many of the components of this index, even the amazon and facebook and netflix back comprises it as well as tesla. many of them have been big out performers this year. if you look at the past sessions, that has changed in a big way and we have seen an 8.5% drop. even just take facebook and twitter, which are part of this index over the past week. the selling is continuing. this raises questions if there is a perception change of the companies or if it is a temporary setback based on the latest earnings reports. very far from technology, let's pigs because that is responsible for tyson foods disappointment in part from pork tariffs on china and mexico weighing on prices at the same time input costs are going up. and that is something the company talked about today and is having a ripple effect on the other poultry and meat producers. vonnie: thank you. week ofy for a crowded monetary decisions. the bank of japan announces its d

it's not just that the whole market was all about faang and now it became everything but faang.qual weighted technology index is up 12.5%. it's only 4% off its highs, so i do think technology in general is held together even if it's not necessarily the absolutely dog anymore. >> number two is health care financials, number three that's a operated cyclical bend to this rally we've seen dow up almost 5% on the month. >> right, the economy is very good there's nothing wrong with earning name cyclicals tied to the economy. so we think owning smaller names benefit from the u.s. economy, more cyclical names, even some industrials, some auto related names are exactly what you want to own here. you don't want to earn these 35 pe stocks. >> guys, hang on for a second because we've got some fresh trade headlines. kayla? >> we're getting some headlines from reuters that the new incoming president from mexico says he feels confident the u.s. and mexico can reach negotiations on nafta in the coming days. it's unclear what exactly he's referring to, whether this is an agreement on the entiret

faang plus fell into correction. 10% below the june 20 high apple reports tonight after the bell here to discuss the moves, guys, good to see you both we checked in on some names last week 9% for faang in three days 300 billion in market cap gone is it forcing you to reevaluate some longer term thesis on thes names? >> i don't think so. two of the faang names that had questionable fundamental quarters were facebook and netflix. those are the 20% correction stocks amazon and google are with very solid prints are 4 or 5% off all-time highs the market at least is acting rationally in terms of which ones it wants to punish more than others. the most interesting setup across this group is facebook. we are going out on a limb at 170 bucks, you look at this stock at 18 times earnings which is a multiple over many years. i don't think fundamentals changed to the extent of 20% i think they still have new mondayitization opportunities with facebook messenger and what's app the stories transition is way overblown. this is proba

also new intraday highs for some of the other faang names does that stand out? does that help the overall market >> well, certainly doesn't hurt it so we need faang to remain strong this has actually been a broad-based rebounding rally we've been experiencing. when you look at the new york stock e change decline -- now if you take a look at not only the nasdaq but broadly across the dow, broadly across the s&p, the russell is back to approaching its all-time intraday high and with the setback of january 26, this is the movement of a lot of names underneath it it is true we need the faang stocks to remain strong. tech is supposed to be one of the best performers in this quarter's earnings season. but i think investors need to bear in mind that there's a lot of money pouring into u.s. equities >> mark, your take on the powell testimony. it helped the market, didn't it? >> well, i think he has an un unenviable job yeah, i think he's right, that people that are hurt at the margin are in a recession. so if he drives us off a cliff into the a recession it's not going

we'll look at pure faang. institutional ownership side of things is interesting. facebook three quarters of its shares traded by institutions owned by them. amazon, less than that 59%. we'll watch for those earnings after the bell netanyahu flicks has 78% alphabet 80% a lot of these names are owned by pension funds, etfs, investment managers, institutional names that own a lot of these stocks. we'll see if that hurts them down the line. >> the analysts community missed facebook's flop. most shaked it off today they are trying to save face ubs downgrading the stock saying the mixed stock brings the debate front and center. barclays saying facebook is shifting to very shaky ground. so what is next for the social media giant? a bull bear debate our bull is evan kessler he's downgrading the stock to outperform from a strong buy he's lowered his price target by dallas 30 a share to 210 but remains bullish. our bear has had a sell on facebook for a full year and has a price target of 140. about $40 below where it is

gene, is the party over for one of the world's most crowded trades, faang?as a collective group i think it's over. i think it is not over for certain stocks within that i think we're going to see in the next 6 to 12 months did i v -- did i ver generals of the faang. they don't have the addressable markets to sustain that group. it is a different league with apple, google, amazon. the collective trade will probably be very different i still think obviously facebook and netflix will be successful companies, performance in that group will come really from apple, driven by apple, to a less extent google and amazon. >> want to get back to faang in a moment, kevin. let's talk about twitter it is a feature this morning, down 18% >> companies talking about health, their health work. i love these terms that they come up with to make the platform a healthier place but that involves potentially actually maus going down, declining, and that's what the market seems not happy about what's your take >> twitter has shown the third straight quarter they can post profits. the

. >> a brutal one for faang and so many people who own those stocks in the meantime big story of the day, gdp coming in at 4.1% our steve liesman joins us now to break down all the details. >> yeah, 4.1 was the number forecast by the cnbc rapid update so a good win there, and the first quarter also revised up to 2.2% so you didn't really get too much of a bump in the first quarter. the 4.1 is the second quarter number and president trump very quickly announced took a victory lap on the south lawn >> these numbers are very, very sustainable. this isn't a one time shot i happy to think we're going to do extraordinarily well in our next report next quarter i think it's going to be outstanding. >> let's break down the current numbers and see what we can tell at all of the future we did get a big bump in exports. some people think that was the result of purchases by foreigners trying to get out ahead of u.s. tariffs. business investment was strong and consumer was strong as well. and a strong number in defense spending housing the real laggard in the economy. reading across from left to r

stocks i think the real -- kind of the bear case on faang is a couple are expensive like amazon andetflix, but i would be bullish on the faang stocks, facebook, amazon, they are still inexpensive and pretty cheap on the earnings multiple. but the stocks have outperformed industrials. they are not really -- when i talk to investors, they are not worried about, with the exception of e-commerce and e-bay, they are not worried about china and u.s. in regards to the trade war in regards to the fundamentals on the faang stocks. >> what's the right way to think about apple's services business? is it a counter weight to concerns about the lengthening replacement cycle in iphones or is it kind of a lagging indicator of the iphone ecosystem overall? >> i mean, yeah, so i think services is becoming a bigger part of the narrative for good reason i mean, it really is important i think for two seasons. one is, if you look at just the overall smartphone market, growth has slowed. it's kind of slowed down to kind of no growth but services recurring are actually growing i think the model now for app

let's take a look at faang partiallyht now suffering from exhaustion.and-- a quarter percent. alphabet down 1.4%. investors definitely showing signs with some stocks. take a look as cbs down. this is a big decline for cbs and this comes as the board meets right now to discuss les moonves' future. we will bring you anything that emerges. this is bloomberg. ♪ his is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. caroline: this is "bloomberg markets." it is time for futures in focus. climbing as concerns over supply disruptions continue. let's talk about this oil move because we have brent and wti on the rise. >> what is interesting is the they are starting to narrow that spread. the demand has been strong for crude oil recently. inventories have dropped up quite a bit despite rising production out of the u.s. and saudi arabia. are rising,they prices are rising and demand is picking up. i expect crude oil prices to move up to about $73, with even more receptions on inventory and a possible conflict escalates with iran. tengion seven building re

we talk about the problems with faang. a look at netflix and facebook they're down 20% from the recent highs. amazon and alphabet and apple not down nearly as much. i've been saying it for days many tech stocks are down 20% or more from the 52-week highs. a lot hit highs in june. look at the internet content like s.n.a.p. and twitter, yelp, and ebay these guys have been tough this year they've had a hard time of it. some of the big data, the software names and enterprise names and splunks they're down noticeably and the enterprise names are also weak. i want to the point out if you include the tariff and the higher costs, industrials haven't had a good year at all, either that's 23% we've seen for american airlines. cummings and illinois tool works, caterpillar talked about higher costs these are the guys hit one way or another by the tariff costs or by higher costs in the case of american airlines elsewhere guys talked about proctor and gamble i'll make it simple. this is what low growth looks like low organic growth they

yes, he coined faang he knows a thing or two. welcome back, jim. it was great, you know, pinckney days you want. that was well done last week. >> yeah. >> it was the 90th anniversary of a bucket list thing three-day fishing trip and listen, big mouth, we won in the trout category first place in the white trout category we caught it off 99 baker which is a decommissioned oil rig. i threw that back, it's too small. i brought in el monstero a 7-foot black tip shark i let him go but i had to fight him for about an hour. i want to thank the captain and january and dr. carl and, of course, bob. who helped me bring in el monstero. >> of course bob. >> it was not necessarily the best timing. >> no, it wasn't. >> david, in five years, i will not be able to -- i will not -- >> good for you. by the way, you never looked better wow! look at you. you look totally cool there. >> a double header red snapper >>> now we have to talk business that's enough about fishing. let's talk about cbs andm moonves. >> that's an el onstero situation. >> it is what we know at t

. >> down 1% with the dow remaining positive, 0.5% doesn't have any of those faang names in there in case anyone was wondering why my walk is always better than his. >> because of practice the dow is now up 127 points or 0.5% but is nasdaq the tech sector certainly weighing the cost of facebook >> facebook crashing and really has not recovered throughout the day. if facebook closes on these levels it will be the largest one day market cap loss for the stock in u.s. history. so is it a buying opportunity with facebook shares here? let's bring in rich greenfield from btig who says definitely it is >> yes, absolutely great company, sara, invest. i think the mark of great companies is that they know when to invest and really look at the long-term versus the short-term. most of the companies i cover, had legacy media companies are really focused on near term earnings maximization and never willing to sacrifice the short-term for the long tfrm facebook is telling people we need to get people from the feed into stories you move from the instagram feed, to instagram stories you spend more ti

that is one reason to continue on the faang's. su: it has created a caution, anxiety.google. a couple things to focus on. number one is the search at. this is the largest profit center. there will be questions on the impact of the adverse e.u. ruling with google search and google chrome, how it is impacting the company and is number three public cloud platform. their cloud is gaining shares. how much is the question. amazon, the shipping giant has been the focus of the retail world, its partnerships, the new grocery wars, those are the questions that if you look at year tot, it is up 55% date, $2.50 a share. last week's shares ended at a high above $1800. facebook is set to reveal its results midweek. census forecast for apa forecast in -- $13.38 million in revenue. lots of things by the chart. it has fared well and is bouncing back from that. be an issue but a lot of stuff on the conference call for sure. we are also looking into reporting global financials, oil as well. what are we looking at? su: it has gotten ugly in the oil market. we have directionless oil we wer

that have been overshadowed and as a result are undervalued because so much money has been put into faang> the perception she said, melissa, the market is overvalued because this small number of stocks have had such a large gain. >> right. >> but the reality is, when you look at everything else that's been left behind, should they really be down in the kind of environment they're in >> when you take a look at the technology as a whole, faang, great performers we have microsoft at an all-time high effectively so we do have broad participation in the market to michelle's point, this uncovers these value opportunities for other investors who may have overlooked other parts of the market for instance, we had one panelist today pitch huntsman. >> i'm not suggesting -- the valuation was the reason the market went down in '08-'09. >> but you guys have a great show, i know you will. i'll look forward to your panels later. we'll be there take it away. >> scott, thank you. and scott mentioned we have a huge lineup in the next two hours here o

nejra: it's time to short faang stocks bank of america says.s the signammering of a peaking market and investors would be wise to prepare for might -- for monetary tightening. the head of investment strategy at barclays is still with us. i hesitate to put the faangs into one basket. very different business models. does anything unite them aside from the fact they are over and -- over owned? >> what you could argue is that grouping relative to the rest of tech has a little bit more positioning evaluation and regulatory risk than the rest. this is really a question of to what extent do you want to diversify into broader tech. our opinion is that tech is still effectively like many businesses, the macroeconomic factors, this is an investment cycle still picking up which is going to continue to lean towards tech. that still to just there are legs to run. focusing all your eggs in the faang basket is not the best thing right now. >> is it about putting social media stocks to one side? facebook and twitter plunged after the results. >> these are busi

going back to tech, two of the faang stocks. better than expected results for amazon in the second quarter well i've booked deliver the biggest dock market plunge in u.s. history. where joint right bloomberg intelligence senior analyst. thank you for joining us. first ofk about amazon this is a company that usually focuses on the top line growth. so, basically the revenue site they missed. the big story, the margins expanded across the board. thing a lot of efficiencies in the ecosystem with the scale developing. aws work its. helpn program continues to the retail business from margin standpoint. the revenue though came up a bit short. we also saw when it came to north america, international ales were slightly below estimates are 23 on the? >> if you actually look by segment, aws was strong. third-party salary growth was strong as well. that is one dynamic that is changing. when amazon revenue, the only book the commissions they connect. -- they collect. it becomes a bigger portion of revenues and it has a muting effect on reven

: i think it has been fairly good, but it's thunder has been stolen the what is happening with the faang stocks, obviously. we speak about the importance of faang stocks to the rally, and 90 have a result of what can happen when those stocks get knocked. a few people were surprised that we did not have a broader impact on the s&p 500 when we saw the netflix. facebook and goldman sachs said to do that one reason a minute have happened is that we saw a lot of the holders of tech stocks that were getting hit, rotated to other stocks, so they propped up way.ally that but when you think about it, the faang stocks have been responsible for the rally this year, there and responsible for the momentum which is based on confidence. so if investors lose confidence in them, it can turn ugly. >> yes, if you look at what we saw this week an, we have seen some investor saying that it be time to start losing a little bit of confidence in the faang stocks. shift inis a boj policy, or hawkish word from mark carney, what do you think at happen? stephanie: one of the things we talk about is, you have the mo

i put the faang index, stock exchange faang stocks in the by screen.markets index. you can see here, this one your spread, how big that spread has gotten. if this comes back to parity or flips, anything close, you are going to make a ton of money. are you brave enough to make this trade because faang stocks have been moving with incredible momentum and emerging-market stocks have been getting crushed obviously this year. guy: matt, annmarie is complaining that's not a chart but she brings max to the balance charts which is never going to fly. i think it's a story everyone was talking about this morning. tomorrow people will be talking about the boj. or, i think wow fact matt miller wins this morning, though i have to make everybody realizes hillary, quinn of charts, is in my ear telling me who is going to win. she will be judging again because i got props to help me out. we'll wait for that moment. today, matt wins, but two great charts. gtv is where you can find all the charts. you will be able to find and pop out all of those start -- charts. th

with growth, and maybe is this part of a new narrative emerging >> we'll see if there's contagion in faangcks. you've had a runup, price earning ratios are getting above 30, and tiny little retreat, but big in terms of dollars. great headline $100 billion in market cap is gone a cynical person, i think henry is being generous, they're investing in the service, perhaps they turned over a new leaf, don't want to break things like our democracy, they want to do the right thing a cynical person which would be me would look at this and say i think, you know, they're shaping their earnings, giving people the idea they're never going to make money again, expenses go through the roof because they're going to protect our democracy finally and they're going to stop hate speech and fix the fake news problem. the truth is i think they're an unstoppable juggernaut as they reach their natural awed yen yens, 100% of people online in markets like europe and the united states, what happens to revenue per year it can't keep going up with stories being a break out hit which they obviously stole 100% from sna

is this a sign that the faang traders rolling over? >> no, i do not think so.ne we facebook, we are unchanged and 2018 on the stock. it is up hundreds and hundreds of percent over the last few years. let's see how responds in the next week or two and see where it goes. but if you look at the numbers, they came out with good numbers. let's see how the markets react. i am pretty still encouraged by all of the faang stocks. i'm your resident optimist. the s&p is closing on a record record andn a once we get that, that target is 3100 on the s&p which is 10% above where we are right now. known the nasdaq, the s&p has failed to do so since february. will allege optimism stand. also at play is when it comes to the u.s. dollar and that feeds into your trade today. why do think we are going to see a recovery in the dollar after a little bit of a weakness? alan: i am looking for a decline in the dollar. we did make a new one year highs just last week and closed lower on a weekly basis. that is a sign of a top, so the dollar stop going up, that will help out so many secto

saying they're t anti-china they have great secular growth the money will return to faang, some of the stock. you take a look atwal greens that was shot in the head by amazon now it's coming back kraft heinz had a second-rate quarter. stocks doing well. kellogg is not doing well. look at those numbers. some analysts that talked down h hersheys because they have sales that are down. you can't stop these stocks. and those are stocks that saver session. i don't believe it the bunds stocks are amazing the costs are up that should matter it doesn't seem to matter. >> you mentioned the faang stocks let's look at facebook yesterday we did this. rich genefield goes 275. highest level on the street. according to "variety" they're in a reality talks with cristiano ronaldo. >> that's a six-pack story meaning -- >> it would be their biggest -- he's got like a 12-pack. >> he does. >> i didn't know that was possible. >> 12-pack of modelo. >> it would be their biggest thing yet. >> this is again the future. can you imagine the amount of worldwide advertising? people like netflix because it's good in

if we look at the terminal on the faang stocks, these are the year to date moves.n pace for a fifth down day in a row, netflix the drag there. sincengest losing streak the middle of late january. the faang is on a patch of weakness here. let's look at some of the chip stocks moving lower. ingging on the nasdaq particular. .he nasdaq is off its lows morgan stanley is warning a trade war could hurt these stocks. stocks could go into a bear market. kleins for the major averages. the 10 year yield, it is popping higher, up five basis points. haven bonds are pulling back. this may suggest we see a reversal to the upside for the stock market. mark: the earnings season faces headwind from trade tensions. ronan. us now, how much attention are you paying to these trump tweets? whether it is china manipulating their currency or him parading -- the rating the -- berating the iranian president? about the trade tension. it is on the forefront every day . this is something that is a weight on the equity market. this is the main focus now. tradext step on the tension well-being t

>> i mentioned faang at the top of the show. pete correctly identified it is more than faang.names is salesforce, trading at 139 all-time high of 142 very easily and quietly. >> it's headed there right now. >> good call. >> bold. >> what is that, half a percent away >> it's identifying something. >> miracle on ice. >> good to be back with you and all of you as well "power lunch" starts right now. >> i'm melissa lee the trade war is now real. first wave of chinese tariffs on u.s. goods go into effect tomorrow what's coming, how we got here and which american companies will be impacted the most. >>> plus big call on the stheet saying this historical run isn't about to end any time soon the details and why you should keep buying on the dips, straight ahead. >>> and these are the most dangerous jobs in the world. new cnbc series you have to see. today a hair-raising job that comes with unrivals views from the big apple. "power lunch

lucky me and let's give you a quick market check the love affair with faang over. coming to an end, pausing at least right now. the pain continues after last week's earnings. the nasdaq composite down 0.25%. the dow down 0.3%. you've got groups that are higher today, which is offsetting some of the declines like energy, financials and materials. >> yeah, i mean faang is by far the biggest story of the day in terms, well in overall technology it's not just twitter down yet again after that very not well received earnings report friday. down another 8% this morning not this morning, i'm going to do that a lot, by the way. this afternoon, excuse me. this being "closing bell," we only have one hour to go, right, until "the closing bell" but it's been a particularly poor day net flick down almost 5% you've got the rotation now. >> how much of it is crowding out very crowded positions, end of month kind of stuff, and how much of this is reassessing the growth after disappointments >> twitter did not help. it's a much smaller market cap the loss of market cap now at faceb

the faang names other than netflix and i think bank of america up around mid, low single digits loanh. >> the share price up over 4% the bank of america. and the dow the high of the day as we close. it's up 43 points or so, slightly higher for the s&p and nasdaq sara, back to you. >>> welcome to "the closing bell." wilfred frost will be rejoining us in just a moment. let's take a look how we're finishing up the day on wall street the dow managing to close higher thanks to part for jp morgan and goldman sachs. they closed up almost 2%, but most of the broad index was lower. in the dex closed down 0.10% russell 2000 down 0.5% first of the faang names reporting earnings after the bell today in just a few moments netflix will be releasing quarterly results. we'll bring you instant analysis, and stock move which is always a stunner. we've got paul hickey, co-founder of the investment group and our own john fort is here to talk netflix and faang and amazon biggest winner of the dow today was jp morgan and chase. biggest loser was caterpillar. over at the s&p it was arconic and alliance the

the first of the fang stocks -- faang stocks plunged. they were definitely looking for direction. >> we really did not see it find direction. today'syst said it was higher. let's go to the board. it was a mixed close. definitely not a session where by stocks were moved higher any of the positives including bank earnings and the fact that you had a stronger than expected retail sales data in a provision that caused the dollar to move lower. let's look at it. the tech heavy index. hitratio between the stocks by the china trade war affairs in the nasdaq, near the lowest since august 2017. analysts say it has been drastically underperforming tech. check out oil down below 70. let's go to the price chart and see what's going on. in theged 4% or more latest session. go back two weeks. high, downa 40 month 10% since then, and it's concerns are twofold, that you have a decrease possibly in demand because of all these trade concerns and an increase perhaps in output. saudi arabia is said to offer more oil. let's take a look at the big movers in t

out of that reports after the bell today, the second faang company to report.e, we will have bloomberg opinion columnist. let's talk about alphabet. to bembers are going interesting to pick through, particularly the recommendations. you think it will ease admits concerns about netflix? >> i think so. the market is expecting an expansion of the margin. there will be attention paid to the acquisition costs. there is awith gdpr good chance they've got more traction, they've gained market share. it is the cost at which that is coming. for the that the bill behavior and that is something they are going to foot this quarter. vonnie: what do we anticipate hearing about capex? i have a chart here which shows the rising level of capex to sales? it will be interesting to see how and where they are spending that. , chipsre investing more are the most expensive part of r&d. to ensure google is the browser of choice, they pay apple, we think a few billion a use safari, the default search engine is google. those may be increasing as they are unable to lean heavily on android

when i look within faang, i think facebook has a great valuation, but i think they have some issues.me with netflix at this point. google is a name i own and i think their fundamental business again you are talking about $4 billion, $5 billion businesses three of which are very undervalued. >> bguy, tim, thanks >>> and coming up on "fast money," gene munster will be there for instant reaction >>> and let's take a look at how markets finished today on wall street the dow was a little bit lower, but in general performed better closing down 13 points had been down as much as 70. the s&p up 0.2%, nasdaq up a a little >>> and earnings movers to check on here. alphabet, big winner in the after hours session up more than 4% right now td ameritrade also higher to the tune of 1% let's get to some of the other big stories happening today in our rapid recap. >>> president trump blasting iran warning that country to, quote, never ever threaten america. >> iranians are frustrated about the u.s. efforts to tighten the demand for iranian oil around the world. >> president trump taking aim at amazon

plantse had some face and a couple faang stocks over the couple of days previously for that reason ande cautious on the technology. only seen one company with regulatory problems, spend money, that has hurt margins. arecompanies -- faangs almost like little monopolies and regular try pressure -- willing -- regulatory pressure hurting margins going forward? we have to be careful but we still like the market. the market is not as good as it gets, i think it gets better and we are halfway through the cycle and not at the initiative the cycle. the reasons market goes up as earnings and interest rates, earnings are going up and i think interest rates, even though a little higher will be contained. vonnie: what value for these days, public sectors or stocks? patrick: yes, in the past, hello, good morning, we have talked about the value stocks and we are still very much on the ticket. we talked about the energy stocks which have been doing quite well of late. we think the geopolitical problems out of the permian basin and u.s. and the summer driving season will underpin that. earnings has bee

this is google versus the faang s. reallyetflix earnings did disappoint last week, investors have really been looking for alphabet to give a push.up of stocks in purple here -- we have netflix and red, amazon, facebook, google, and apple have really lagged netflix and amazon. amazon the next stock expected to deliver a big push. , thank you so much. su keenan with a wrap up of wall street overnight. >> president says the u.s. no longer accepts of bad trade deals because "the era of economic surrender is over." house,g at the white uses the u.s. has been taking advantage of for too long. this is two days before a senior eu delegation arrives for trade talks. the president has led to with allies and opponents across the world. theresa may says that top diplomats are preparing for a new deal on brexit. talks have stalled. heartland toe silver plan for keeping close ties with the single market. meanwhile, jeremy hunt said that britain will step back. >> there is no a very real risk .f a brexit no deal by accident and this

overshadowed, at least temporarily, by a bump in tech stocks, specifically with the fangs -- the faangspaul: interesting perhaps one of here, and itwords was the back kind of interesting in asia yesterday, and it's going to be a weird kind of interesting in australia later. let's look at how u.s. stocks ended. ramy: let's show everyone how we ended the day here. at session highs, guys. look at that -- the s&p 500 up .3%. it had been down as low as .7%, but again, clawing back all this in large part because of what was happening with technology shares, but you know one other thing here is the currencies because that also shows some of the tensions that we are seeing. bloomberg dollar up by about .5% here. the knock on effect, of course, with the other currencies as we've been talking about the past few weeks, has been one of negativity for others. looking at the euro right now, 1.16 is where that is. the mexican peso, after what happened with the leftist candidate actually winning, we're looking at that nearing the 20 mark. 19.9 two the u.s. dollar. it had been as high as 20.2 intraday,

and the faang stocks are rallying as well.t the faang index over the past few days, up 1.4%. it is also worth noticing yesterday on the pullback, the faang stocks were higher. today we have the likes of amazon, and alphabet rallying in a big way, but there is one stock that is not rallying, one of the consumer discretionary pieces of the faang trade. and that is netflix. shares of netflix are down on the day, down 1.4%, as you can see. this comes as you bf is cutting the shares to a neutral from a buy, mainly on valuation. but eric shared and the analyst they're saying there is risk from competition, free cash flow burn, dependent on the capital market to build out all the content they are doing. he does not he a lot of upside to the second quarter that they will be reporting next monday, but the biggest piece of the puzzle, valuation. he has a fair point. let's look at valuation, because you could make the case that perhaps it is off the charts absurd. function in the bloomberg. there is a lot happening, but what i would like

facebook reporting wednesday, and amazon rounding out the faang results on thursday.ek turns out is the busiest week of the earnings season we'll have prel view of those big cap neck names and what to be watching straight ahead mike santolli and jim key. biggest winner of the dow this week was jp morgan while caterpillar was the biggest loser. united continental was the biggest winner and on the com, the biggest loser. interesting jpm the biggest winner of the week >> overall indexes couldn't be more flat for the week with the s&p kind of holding these levels which i think was a net win. it kind of provided the up trend, but isn't this a story of last earning season, too kind of netting out to not very much and yes, financials kind of bouncing where they had to over the course of the week >> do you see this as the bulls winning out or the bears winning out? because there's been some negative presidential trade headlines but there's also been fantastic trade earnings should we be lower or higher >> i don't know if you should have been high, but i think the fact you pro

the money coming out of the faang stocks, where's it going to go?of the growth market turning into a value market >> i think there's something to that but these markets remain so competitive. and what we're seeing right now is sort of chiselled activity based on when we see these news items. those stocks are disappointing that are just getting hammered and those that are providing solace are getting a lot of attention now. on a percentage basis really unremarkable here. >> bill, why don't you take a look right now, look at the financials they've rallied early, then they got beat on and now on the radar ever since they reported they popped quite significantly they've had their buy backs reinstituted or they've escalated their buy backs. so that could be an area that you see money start to go into out of tech. but i do believe ultimately if you want growth, you go for growth, you still want the tech names. >> thank you both. appreciate it. >> two chiselled men right there. big news on ge the stock near session highs we've got details coming right up a

the faang stocks are up. facebook tapping all the others in year-over-year revenue.google up as well. . the faanglet's get stocks now. su: search and trends continue to be the largest rough it, questions on the impact, the adverse e.u. ruling, likely to be on the conference call and the cloud platform, deepening share to what extent, we will find out. amazon, is partnerships will be in focus, it was three more. let's go into the chart because it is up 55% year to date. $250 a share, revenue $230 billion, amazon stock above $1800. facebook revealing results, midweek consensus. $1.32. shares have bounced back from the big scandal over privacy. there will be a lot of questions about that. not just that. we are watching big global financial names, oil, energy. what are we watching? ugly --has gotten cut has gotten ugly. let's go look at exxon and the other big players. one analyst saying oil companies cashto report $80 billion poured. let's see what they say about that. there are challenges ask on will tell us about. deutsche bank is a stock that toged on a preannounceme

and the stock price is not at the index level for the faang is not quite as overextended as it was backinly up there. i think, you know, regardless of what you might think about the individual companies, it seems like right now the earnings season for the other guys coming later next week, it really the stars have to line up. a lot of caution will be needed here. but again, longer-term i would expect that any dip in amazon, in facebook, in google, will be pretty aggressively bought. emily: and there is still a question of whether netflix's subscriber is a blip or a speed bump or part of a longer trend. >> and the interesting thing was it was not just the weakness in the second quarter subscriber number. netflix was also forecasting a decline in third quarter subscriber numbers. and look maybe the company is , being conservative with its forecast seeing what happened with its second-quarter falling shy of his own guidance, but it's interesting that we were talking about sort of two soft quarters in a row for netflix. that makes it a little bit harder to argue the blip scenario. emily: no

and facebook on deck to report this week also among the faang names.s been a bit of a laggard coming back here chips now are not outperforming and leading this tech sort of rally that we've been seeing texas instruments of course having preannounced its results a week ago after its ceo resigned due to conduct issues we're looking for some guidance there from the chairman and now ceo again reck templeten we'll be hearing from intel later this week, but the chips are among the laggards here, and we expect to here from a lot of them this week back to you. >> bertha, thank you very much for that >>> up next we'll be back here with the closing count down. we've got 5 1/2 minutes of the trade. >> the stock went up today, and whether bit coin furutes are actually bringing in young investors. coming up later on "the closing bell." it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can

you go through the faang names apple's off more maybe, but facebook and some of these names. technology just continues to perform whether people want to admit it or not. >> yesterday you had facebook, 275. blue capital, 210. >> i get your point. but jimmy, i had another e-mail from the same person who sent me a note a few weeks ago talk about goldilocks that's what we've got again. this jobs report said anytime the last hour you have this feeling of goldilocks jobs report is good. economy's humming. >> i'm a little concerned. the goldilocks comment and the idea that second quarter earnings are going to carry us there are based on a backyard looking view those results are going to be great, but do cfos say something looking forward about these trade disputes we've seen light signs of it dime le dame lehr saying they've seen drop off are there going to be other movements that otherwise would not have happened? like the harley davidson move. some looks at early earnings result rs fabulous, but again, it's the second quarter which is in the rear-view mirror. i'm worried about wha

after what's happened to the faang stocks the last couple of days. liz: certainly netflix and facebook. hold the thought on the services issue, but you talked about the iphone sales, will they finally announce they are vaporizing the iphone x because that broke in late january that they were going discontinue the iphone x after one generation. >> so i watched that announcement, that was september 12, and everyone thought that would be the biggest iphone announcement since the 6. didn't turn out to be that way, but given the high expectations and kind of the disappointment in how it initially did, actually for this quarter there's a very good chance that a quarter, 25% of the sales of all iphones come from that model, which in effect raises the average selling price of an iphone. so it helps. >> because it was 1,000 bucks. >> 999, right? they're going to phase it out and bring new phones in september, we're looking at three new models which transitions us into q4. liz: will we hear some of that today? >> starting to leak out. details about the phone i

i would never short faang.y'll probably double from here but my opinion, the full measure of the efficacy would be in capital spending in my opinion, there are signs we're seeing that companies that are investing in capex are actually outperforming companies that use their cash flows for other reasons whether it's share repurchases or balance sheet repair i like capex oriented tech >> you're making faces >> yeah, to jason's point, so far in this cycle companies have done everything rather than capex. as a result it is incredibly old in the u.s that's point number one. point number two, we're seeing bottle necks whether it's labor shortages or other issues out there it's causing delays. and you couple that with accelerating growth. i think you've got a real capex story. that could be the last leg of this cycle >> i wanted to ask about the yield curve. we've been on a 2.8% handle for some time. broke out of that yesterday. 2.95% the yield this morning is that a trend in the upturn? >> i think it depends on how yo

meantime let me show you the faang stocks the s&p is going to go up no matter what the rest do. >> let'st in the "the closing bell" exchange today. gentlemen, thanks for being with us peter, let me start with you the markets really seem to want to kind of wall off the potential tariff threat or at least look on what is perhaps going rights that we can kind of touch and feel in front of us in terms of earnings. but where do you think we're setup for more broadly than that >> i'm most trinterested in hearing guidance for the first quarter. what do people and companies have to say about the impact of tariffs? any service business does business with a manufacturer and maybe they get affected too. maybe it's too early to gauge or quantify, but i think that's the important thing as we talk about earnings the next couple of weeks. >> and it seems there's a debate about that guidance is going to look like. the optimists say 20% earnings growth, companies are hiring like they haven't in years although there's the worry about trade. >> at least that is the story, but peter brings up a valid point.

faang trade this could materialize in asia?ry: you have seen that sort of technology company around the world from the selloff that began last week. it's also worth remembering there was only one or two companies that triggered this thing. very high valuation. does not take much for an investor to start to move away from it if they think the earnings growth might not be delivered. it has been big debate as whether there will be rotation in growth. we have seen value outperform certain pockets, but being very short-lived. for us, it is still very good. we see growth coming back over the second half of this year and tilt towards the risk assets with growth stocks to deliver in that environment until you see that steepening in the yield curve. that is something that becomes harder to think about, especially around the banks. kerry craig, jpmorgan asset management global markets strategist, joining us there. you can get around up of the stories you need to know in today's edition of daybreak. just go to dayb on your terminals.

and to your point about faang, it's sort of being valued like faang.rading at a slight discount now. analysts, a lot of them raising their target it looks on the average now is $119 85%. >> yeah. they didn't give earnings for a full year but said q1 revenue will be above consensus. when we come back, former treasury secretary larry summers will react to the president's comments to cnbc, and, of course, his kpeents this morning on currencies. all three major averages hovering near break even for the week shooting for their third weekly gain "squawk on the street" back in a minute is this at&t innovations? yeah, wow..this must be for one of our new unlimited wireless plans. it comes with a ton of entertainment options. great, can you sign for this? yeah. hey, uh.. what's in that one? that's a shark. new and only with at&t, you can get unlimited data, 30+ channels of live tv, and your choice of things like hbo or pandora premium. more for your thing. that's our thing. visit att dot com. at fidelity, our online u.s. equity trades are just $4.95. so no matt

i guess the problem is the implications are not worth owning anything but faang.e wrong way to look at the market you have pharmaceuticals people with the downside today semiconductsers are up and the transports are up because airlines and railroads, by and large, had good numbers and very good earnings. i guess keep in mind there's plenty to buy in the stock market besides the faang carl, back to you. >> thank you very much let's get to rick santelli, as well check in on the bond pits in chicago. >> good morning, carl. it is an exciting day in so many fixed income areas you look at a two day of ten year note yields, hey, we popped over the 290 level as a matter of fact, it doesn't like we're going to get 23 sessions in a row. starting june 21st, when we started settling in the 280s, 22 sessions doesn't look like number 23. in that time, the last couple of days, we've seen some decent steepening 10s to 2s. 24 the low they're now at 30. 30s minus 10, nine is the low and 30s minus 5s they're at 27 maybe more focus should be japan. see the next chart year to date of

lisa: you are seeing the rotation out of faang and into energy.my: into some parts of health care, moving away from consumer staples. lisa: what kind of oil price is that predicated on? amy: i don't know. we were just talking about what the earnings yield looks like on different scenario shots. in terms of what the volatility looks like, it is not pricing much of a move from here. scarlet: we began with vix futures let's come back and and on -- and end on vix. equity markets, are markedly complicit -- remarkably complacent. amy: it's one of the most difficult things in derivatives. no one is expecting a february spike, for example, then when it happens, everyone is like, of course. it's the same problem. there is very high uncertainty, very low volatility. i'm not good at the timing of it. that's why everything i own is -- i don't know. some tangible catalysts. september could be a tangible catalyst. but right now the tangible catalyst i see is something like earnings, where the commentary there could drive an event. actualctual numbers, company f