why did i sell pepsico i forget j & j and pepsico. god, this was fun.e to go you know what i have to do. >> buy a brioni suit. >> maybe walmart has one i'm a 42 regular. >> he's going to keep looking. goldman sachs chief strategist david kostin will join us. the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. ♪ >>> live at the stock exchange i'm sara eisen with david faber. carl quintanilla is off. down more than a tenth of a percent. financials are getting hit health care is doing well. nasdaq going positive. we'll see if that outperformance holds. we saw that in yesterday's session as well. crude oil helping

among today's top stories, pepsico beat on the top and bottom line.ar guidance the stock is up about half a percent this morning don't miss pepsico cfo hugh johnston on "squawk on the street" at 9:00 a.m. eastern time >>> it's prime-time for amazon the e-commerce giant's day of deals or prime day is under way. analysts say today could be the biggest sales day of the year for amazon the stock is flat in the premarket. >>> the mfib out with the monthly read on small business confidence on main street declined last month, falling to 103.6 from 104.5 in may. the biggest drag on the index was a drop in expectations for economic improvement >> mm-hmm. >>> senate republicans are hopeful that by week's end they'll have a new draft for their legislation to replace obamacare. joining us now is mississippi senator roger wicker good to have you here, sir >> hello good to be with you. >> you guys going to get this done >> well, i sure hope so. and the plan is, yes, to get a tweaked version out by midweek, and then to pass the motion to proceed. actually get on the

she will go before the senate banking committee thursday also thursday, june retail sales, cpi and pepsicoesults tomorrow results from big banks starting friday jpmorgan, citigroup, wells fargo. >> bring it on >> good thing you're back. >>> after waiting more than a year, customers put down a grand for tesla model 3 get a preview of what that car looks like. those pictures and morstige raht ahead. you're watching "worldwide exchange" on cnbc. the future isn't silver suits and houses on mars, it's right now. think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute. and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. >>> good morning, a look at the market action. saw slight gains by end of the week, decent bounce friday, delivered flat performance for the s&p 500 and nasdaq, edged up a third percent, slightly higher nasdaq leading the charge. best per

a day like today you see long-term effects on a piece of news like this don't really matter when pepsico beats numbers, when people still have to brush their teeth and fill their hair and turn air conditioning on there's still consumer staples and so on and longer term more and more stocks will be done by stock-picking computers. >> we could spend a whole hour on that. >> i'm not saying it's a good thing. it's probably an opportunity for those who can get in the weeds with companies and pick apart balance sheets and pick good managements and find the uncommon value, but i'm just saying more and more that trend is continuing. >> all right hey, rick. play with that all day, i'm sure, but, you know, while we saw this selloff in equities, we didn't really see a rush to any of the safe havens per se. you did see yields coming down but that was mainly i guess the strong three-year note action and the dollar index is hovering at year lows right now. >> the dollar index is kind of the and having a hard time holding ton to a 96. if you want to see a real currency chart, look at the euro/yen or eu

support for the paris climate agreement including corporate powerhouses like walmart, goldman sachs, pepsico, and google. if american companies were to mobilize in congress just like they did for the paris agreement, that would be a game changer. but not withstanding all that corporate support, the big-business trade associations and lobbying groups have lined up against action on climate change. the u.s. chamber of commerce, so-called, probably more accurately described as the u.s. chamber of carbon, is one of climate action's most implacable enemies despite the good climate policies of so many of its member companies. how is it representing its members? it's incredible. the american petroleum institute represents shell, b.p., total and exxon, companies that claim to support the paris agreement and the climate leadership council's carbon fee proposal. but a.p.i. opposes anything getting done. we all know here that corporate america commands extraordinary attention in our political system. if american corporations aligned their political engagement on climate change with their actual positio

pepsico it's a crazy market.incredibly satisfied with it. it is the best and fastest and well managed company in the industry and that, ladies and gentlemen, is the conclusion of the "lightning round"! hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. >>> i've got to tell you, i'm all over the g20 meeting i feel like europe is doing better right now than we are the european economy has been picking up for a year. i think it will take a sharper turn for the better. it's about the changes in the banking sector that make things work at the end of the day, the health of the economy depends on the bank's ability

clashes broke out between police and former employers of a former pepsico plant in our -- in argentinan sunday. the laid off workers had been occupying the plant since it was closed on june 20. more than 500 people lost their jobs. logisticscided that were shutting down the plant. finally, a 15 euros british boy has charmed the internet after taking over a twitter account this week. his name is eddie. he may be the best thing to have happened to the pr of the company in a while. he tweeted that he was manning southern rails twitter account while on work experience at the company. he was ready to answer questions. twitter users took the bait. they asked him abstract questions like whether he would be eating for dinner. it is quite a change from the regular tweets they get. here is eddie. on what he learned. >> definitely improve my communication skills. i can bring with me wherever. my ability to talk to the public about something serious is also improved. that will definitely come in handy in the future. i can see that. >> i can see that he is a bright future. >> miranda: to manyny out

maria: pepsico shares on move this morning stronger than expected seconded quarter earnings not all goodew york stock exchange looking at markets. >> good morning. we are watching pepsico did beat on top and bottom line earnings and revenue beat the street we are hearing from the conference call, at this time, as well. and trying to give some optimism with that they said they can take pricing will take pricing one area helped pepisco through this latest quarter in fact beverage volume dropped frito-lay quaker was flat but the pricing that helped them through the quarter, ultimately, and so we are seeing it right now, slightly to the downside, this morning. the other factor is people are not going through center aisle spending more time in produce aisle meat not center aisle you have seen the it back-and-forth up a quarter of 1% snap the big deal morgan stanley cut down to equal weight from overweight slashed target down to $16.28 worry about snap that not improving still has instagram against it, advertising struggles don't forget snap had ipo more than 20-billion-dollar company big deal

i ended up working for some big companies, procter & gamble in cincinnati and division of pepsico pizza in wichita kansas for a few years and finally moved to the d.c. area to join a startup in 1983. that didn't work. it was a big failure but to the people i met and i started america online in 1985 but it really took a decade before anybody knew what we're doing. it was a struggle for will were the first in the internet company to go public. we had less than 200,000 customers after a decade. it is just an example sometimes revolutions happen in more evolutionary way. >> you just have to have perseverance. that was two in the first way. was also true in the second way. facebook and snapchat really were overnight successes. started in a dorm room a couple years later, they are big companies. then the third wave, some of the dynamics are so fundamental around healthcare and partnerships become more important and policy will become more important if you will need more perseverance. those three p's or not so important in the second way but are going to become very important again in the thir

pepsico is in the game as well.rporations go from their main products to putting on event in places like this? what is the corporate strategy? >> if you're talking about a market in which gdp per capita is under $6,000 per year, you reach a stratum. a lot of the kids that are attending them studied in in the u.s. or the u.k. and that is where they picked up the taste for this music. twice it is brilliant for the brands. gdp is a big contributor to and pakistan. this is a percent of gdp and the global average is under 60. the economy is growing at over 5% per year. this is a big market. at the same time you have security issues, -- through being off incognito. the event ond social media is before they take place. -- guests have been that it vetted by promoters. oliver: it is a very western type of thing. security a lot of concerns, there are terrorist incidents regularly. it doesn't strike you as a place that people will party and have a good time. what does it look like inside? i'm curious, i can't conjure up a good

pepsico shares outperforming, takeover target, margins. but will it last?tock higher is speculation that pepsi might be a ta keover target speculation that pepsi might be a takeover target for the likes of kraft heinz. investors have also rewarded the company for boosting revenue, despite a decline in volume. the owner has been very successful at raising prices to offset a drop in sales. but some on wall street question how sustainable it is. back in april, the company warned margins would be under pressure from higher commodity prices. analysts are looking for revenue that pops $15 billion. joining us now is the chief market a nalyst, joining us now is the chief market analyst, thank you for coming in. this is a point when you get to blow your own trumpet a bit because we had you on the programme talking about snap when they floated, they we re about snap when they floated, they were floating $17. you said...” were floating $17. you said...|j said were floating $17. you said...” said we would probably see an initial pop but i was sceptical about the long—t

tomorrow pepsico out with second quarter results. wednesday we have fastenal and industrial heavyweight, and heavyweights, jpmorgan chase, citigroup, and wells fargo. chris bertelsmann, i know you have so long. you have gained, and feigned. you have now $2.3 billion in assets under management. isn't it a tricky thing to buy stocks ahead of earnings? >> yes, it is always a little bit of a troublesome situation because you don't know whether they will surprise this earnings period, next earnings period. that is the case with three individual stocks i have for this period. melissa: go for he -- liz: go for it. people might want to know what will be a good buy now and they come in with good earnings and the stock floats higher. >> three ideas for earnings surprises. seagate i think they have a kitchen sink quarter last time and they cleared the decks. certainly is. dd and if you look at all of the data storage area it is really high growth area. they're cheap. they have a 6% yield i like them. second one, las vegas sands. certainly macao

looking for big companies, procter & gamble in cincinnati and division of pepsico out of wichita cancer a few years and finally moved to the d.c. area to join a startup in 1983. that didn't work. it was a big failure by two of the people i met started america online, aol in 1985. it really took a decade before anybody knew what we were doing. it was a struggle. we were the first internet company to go public. it was 1992. we had been at it for almost a decade. we had less than 200,000 customers after a decade. so it's just an example, sometimes revolutions happen more evolutionary ways. you have to have perseverance. that was true of the first wave, now suturing the second wave. services like facebook and snapchat were really overnight successes. i think in the third wave because some of the dynamics are so fundamental about healthcare and some of the sectors of partnerships become more informed and policy will become more important, you also need more perseverance. find the first wave, partnership, policy and perseverance were not so important segue but will become very important again

vonnie: we saw the pepsico earnings. >> the consumer is really interesting.inly, a very strong jobs market. it's a generally strong level of income growth. it's enough to support spending. been trending lower. interest costs arising. gas prices are helpful. i think it's an area to look out for. in general, the consumer sector should be some of the weaker segments. earnings rise upward and they fall off a cliff. us somethinglls different. tim: it has been very different. we were talking about the best of all possible worlds. that's what it has been for stoxx 600 earnings. we had a broad expansion and pmi's are up. this is really uncharted territory. we had the currency went the back area we had policy as we discussed. that has kept estimates robust. it's very notable going into the second half of the year, some of these risks we have raised, i think guidance from corporate is thinking about the changing dynamics. 600ve got 25% of the stoxx in the u.k. drag ifrency wind is a you want to translate that into euros and -- euros. it's an interesting dynamic. mark:

even people like pepsico who have been shifting the portfolio are seeing the benefits of ta come through and they're healthier products are delivering bigger than expected growth. i think the leaders and the successful players here of these business, they should be shifting portfolios, using m&a actively to prosecute those growth >> thank you >> investors looking for those opportunities. >> thank you have to let you go they're all in place we'll leave you with footage from moments ago as chancellor angela merkel welcomed president trump and other leaders to the g 0 in hamburg your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. or a little internet machine? [ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and

pepsico is in the game too.o from their main products to then thinking about putting on events in places like this? as you point out in the story, it has also taken on elsewhere. what is the corporate strategy? how did it evolve? cristina: i think if you are talking about a market in which gdp per capita is under $600 a year, you are trying to reach a stratum of the population and this is a very focused way of doing it. a ticket to one of these events costs about $24. a lot of the kids that are attending them study university in the u.s. and u.k. and that is where they pick up the taste for this music. so it is really focused marketing in that way. carol: it is kind of brilliant for the brands because household consumption is a big contributor to gdp in pakistan, above global average. cristina: it is 80% of gdp and the global average is under 60. the economy is growing at more than 5% a year. this is a big, hot market. at the same time, you have security issues. carol: how do they pull these off? cristina: it is

whether it's netflix or amazon or pepsico they can figure out the future to some degree you have a tremendousata mining going for you >> in ten years we'll think bow business as not just a real estate business but a significant data business. and i think that data is going to help our customers. it's going to help our own decision-making and who know physician we're successful at this it could be a separate business that could be valued privately by the market. it's way too early to get that far hide but i'm excited about those opportunities and when you talk about scale, i mean yes prologis owns and operates 700 million square feet of space but if you look at our individual market positions like, for example, los angeles, the most dynamic market in this country, 1% supply or vacancy today in los angeles, we own 72 million square feet of space if you add up our next five competitors that are public, they amount to about 20% of that amount in aggregate. so the differential advantage we have not only in terms of information but customer relationships, ability to drive down costs and operate the

earnings at the end of the week tuesday, we get the first set of earnings from a major company and it's pepsicohis has long been my favorite in the consumer energy industry. these days we read how food companies are struggling they are doing just fine why? because it snells snacks and that's the strongest part of the supermarket and it's the best managed company in the space and ceo ingenuity predicted how the market would play out years ago. if they get hit after reports, you should be ready to -- >> buy buy buy >> tuesday is amazon prime day i haven't bought anything with the sustains coming up it's going to be a remarkable show of amazon i bet the numbers show a 20% increase over last year, which will cause the retail analysts to come out of the woodwork and downgrade any retailer that is still standing that they haven't downgraded yet maybe then will some of these invoice rated names find a buy i would not buy costco until after amazon prime day because someone will downgrade costco. another way this game works. i don't know how the movie ends though, because it ain't a movie. and janet yel

. >> pepsico gave you that >> yes and it doesn't really matter probably to the market about ibm and ge, which will likely be awful. the reality is that around them it will be so much more and people expect it to be bad >> this may be why the dow does not perform as well as the s&p and swm and nasdaq. >> does anyone really think of what will happen if ge shows positive cash flow >> sorry, jim. that one we'll disagree on >> if anything, jim, based on ge and the changes happening, this could be the kitchen sink type of thing, right? >> a lot of peopleare talking about that we're going to discuss nelson peltz. it's kind of a wells fargo board feel, if you know what i mean. >> uh-huh. >> the places that you want to be this week, so microsoft gets called out positively. morgan stanley raises the price target. >> apple >> brings it all back to big tech we started with microsoft and now apple and some others. >> yes and technology has been strong it continues to be strong. and anybody who has any part of the cloud -- >> it is cloud cloud is adoption and it used to be thin and now it's retail.

pepsico with earnings earlier this morning, posting better than expected results.er falling five points yesterday, the nasdaq rising 23 to 6176. warren buffett is giving away $3.2 billion in berkshire hathaway stock to five charities including the bill and melinda gates foundation. the 86-year-old, number two on the forbes list of richest people has pledged to donate 85% of his berkshire stock to charity. including this year he has donated $27.5 billion. >>> forget amazon's prime day, how about free food? 7-eleven is giving away a free small slurpee from 11:00 to 7:00 p.m. to mark the company's 90th birthday. if you buy seven slurpees through the mobile app you'll get coupons for 11 more for free. >> goodness. my kids will be all over that. >> our coworkers will love that. they'll start rounding up slurpees. >> a lot of cupholders. >>> photographer in north carolina capturing stunning images off the coast of north carolina. that's actually a waterspout that formed in kill devil hills yesterday morning. no doubt that scared a lot of people as the photographer was at

fact it's why i think the ezu makes so much sense to own you can see it in russia where already from pepsico which reported last week, things have stabilized india is a capital hot bed as of late china, the gpd growth verifies that and stipulate two years ago we were worried about a chinese implosion. instead we should have been kicking ourselves that we didn't buy that market. and international allowed netflix to rally to an all time high the action in the commodities and commodity related stocks, look at bhp, and valet, the two stocks most related to commodity strength the revamped website designed to entice retail investors to their side valet natural resources company with a dominant share of copper and aluminum started to roll up after a yearlong downturn. by the way, rio tin toe has gone up these are important moves. and don't forget the commodities. the index for cooper known as the jjc is finally at 30 i think that can break out note the action in the stocks of caterpill caterpillar, honeywell, 3 m. they've been on a steady run and they get a ton of business from overseas i can't str

look at pepsico in terms of pepsico coming right back. you don't have the big currency hit anymore.rocter & gamble could have a good number. >> we're going to start finding out a lot more tomorrow. by the way, speaking of turnarounds, retail, target's up the company announced the second quarter earnings will come in at the higher end of its prior guidance and that comps will be positive brian cornell says, quote, we've seen additional broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment. the range was 95-115 the street's 106 but they see traffic improving >> this was an empire strikes back call, basically they waited until after the data lives in brick and mortar, amazon prime, and cornell came out and expectations finally got too low. now, i will tell people who want to buy -- jump tonight retail bandwagon, you need one other company. you've got to have macy's come out. you've got to have a kohl's come out. somebody, somebody has to come out besides just cornell, so we know it isn't just one

and look for wholesale trade numbers at 10:00 eastern pepsico reports earnings before the open and we'llwith cfo hugh johnston in a first on cnbc interview at 9:10 eastern on "squawk on the street. what are we looking for on pepsi numbers? >> with pepsi, the neilsen data, which tracks sort of the consumer products data over the quarter or so, points to a softening in the beverage business look for frito-lay north america, the snacks business, which really has been driving the growth at this company, to keep doing so and do the heavy lifting in this quarter. pepsi has outperformed some of the other packaged food giants, just in terms of a sluggish period over the last few years it's had better organic revenue growth, but like so many of the others, it's also dealing with foreign exchange headwinds and with this so-called change in the way we shop around groceries, going around the perimeter of the store to fresher foods. pepsi's been doing a good job at offering healthier snacks and enticing consumers they need to continue to do so it's been a key goal of indra newy, and she continues to

were also watching pepsico. analysts are expecting earnings of a dollar 40 per share.of pepsico our up over 10% so far this year. another major fire in london. cheryl has the details there. good morning. dozens of firefighters battling a blaze today. it's a very popular tourist destination. authorities say no injuries have been reported thus far. the fire comes less than a month after a blaze. that fire killed at least 80 people. it is searching for a way to get the cool back. the luxury jeweler reaching back in february. they built up a nearly 5% stake in the company and they wanted to get together and have a little chat. they came from jewelry categories with an average price of $530 or less analysts say that is the problem. that could hurt the company's image. it's affordable for the rest of us. the stocks are actually performing a different story. it was rumored to be the add-on that would boost sales of the iphone eight but it when it debuted. the future it may may not be there. instead he said it's going to be sold separately. we thought maybe we would have a wir

that has helped support pepsico's nice stock run over that time.ing success with ge as well. great to have you with us on the program. up next, chris harvey of wells fargo security. we will tell you down to the opening bell. started this monday, this is the situation. stocks go nowhere, futures on the dow and s&p 500. as we come into the session at record highs, on the bond market, yields are lower by about a basis point at 6.32 on the u.s. 10 year. you are watching bloomberg. ♪ ♪ jonathan: stocks setting records as a bloomberg national poll reveals americans feel good about the economy, but not so good about progress in the white house. netflix and focus with results after the close, and goldman, bank of america look to get financials back on track after earnings. the market wait for mario draghi to provide direction after weak inflation in the states. from new york city, good morning. this is "bloomberg: daybreak." we are counting you down to the opening bell, with stocks coming into the session at all-time highs. futures going nowhere on the s&p

balance sheet is it time to move out of beverage no, no, and no and i tried to get him to go in a pepsico way he is going to make acquisitions and you're going to see them rather quickly david hopefully when you're in but i do think that. >> what do you mean? >> they took that stake in green mountain. >> monster as well. >> this was not my -- i said is it time to go outside of beverage and he said oh, no it's going to be within the beverage family. want to be more diverse identified but even they're not doing as badly because of this new form i mean the business is going to generate a lot of cash flow. the guy has a lot of chances to do a lot of different things i believe he gave him a great hand should the stock be bought on this it's not a quarter like a mcdonald's it's not a quarter that's like a boeing but people are still -- i like dominos here. but dominos had very weak uk how about mcdonald's having the best in 43 years so it isn't like that. somebody is taking share from somebody. >> we're going to talk to easterbrook in a few moments ford is the other big one at the moment there

i like emerging growth remember pepsico mondelez have been bucking the trend >> we got to hit t bheell which means we got to go we'll be back with the opening bell right after this. >> everyone is making a lot of decisions based on it but what i am far more concerned about is can the bank rally continue. this is nirvana for banks. this rate rise makes it so it's so easy for janet yellen it makes it so jp morgan, you have to go to 100 price target. >> jp morgan has to go to 100. >> i'm sticking my head in the jamie dimon guillotine. >> >> let's get to the opening bell at the bottom of your screen it's bancorp it's national geographic bringing wildlife from six continents live to viewers this sunday let's check out jpm at the open and some of the financials as they respond to rates this week. >> why are people not talking about that why serve talking about tesla? do you think tesla is more important than jp morgan honestly i'm asking you right now is tesla more or less important than jp morgan to the economy and the u.s. in the stock market >> no, jp morgan is most likely more important

shares of pepsico are rising after their shares -- after a top analysts estimates.dollar 50 -- $1.50 a share. goldman sachs says opec needs shock and all for oil prices to gain. a publicing to shrink glut, but without sustained declines in inventory and u.s. drilling activity, oil could fall below $30 a barrel. randaltrump nominated quarles to be a top fed administrator. he is expect it to carry out the president's pledged to ease regulatory pressures. tom: he is well trained, well bred, and well experienced, randal quarles. michael mckee here on the new vice-chairman. stanguy is not the same as fischer. same title, different mandate. came from the dodd-frank law. barack obama never filled this position, though dan tarullo sort of acted in this role. there is opening now that is being filled by randy quarles. have interviewed him before. is this guy politically-based or a see more of an operational guide? michael: he is more of an operational guy, but he worked for both george is -- torch bush bush- torch bush -- george administrations. a longtime player in washingt

committee june cpi thursday, and friday, retail sales, cpi, industrial production on earnings fronts, pepsico reports tomorrow results from big banks friday, jpmorgan >>> shares of orient overseas popping after china cosco shipping announced a takeover deal for the shipping company. this deal makes the company the world's third largest container liner. and wanda selling theme parks, selling tours and projects to developers for $9.3 billion. the sale expected to cut debt pile, strengthen case for listing on the main land after it was de-listed from hong kong last year. >>> apollo getting club corp, months after the golf course operator announced retirement of its ceo, club corp previously said it decided not to pursue a strategic transaction. that sale didn't result in offers for the country president trump's foreign policy is in focus in washington, following that meeting with putin friday we have more on a lot that took place over the weekend >> good morning. secretary of state tillerson and other senior officials stress the focus of the relationship is on moving forward. one way they consid