Transcripts For CNBC Closing Bell 20240622

Numbers, plus his thoughts on the minimum wage. Well see how those new oreo donuts are selling. Fbi cracking down on chinese corporate espionage. The economic bellwethers, caterpillar, 3m moving lower on the back of earnings. Caterpillar ceo was on squawk box earlier and spoke to the global head winds holding back not only the economy but his own business. For us to drive sales and drive employment we need 2. 5 to 3 . Having said that we are doing an awful lot of things internally to make sure we are strong strengthening our company for the future. Its all those things. Weve got oil price cut in half. Commodities are at their lowest for quite a few years. Global growth is slow. All those things combine for a lot of winds buffeting around right now in front of us. Joining us for reaction and how it impacts company our team. Doug isnt the only one warning about the Global Economy and actually showing the results from weakness in china, in brazil, russia and in india. Clearly, this is shaping up to be one of the bigger themes on earnings. I think that theme thank you for having me on. I think that theme will continue. Right now the world is 100 trillion in debt. What the gentleman from caterpillar said was it is the debt that is strangling growth. The countries around the world cant afford to use their products because they are mired in debt. My concern is the canary in the salt mine of china, puerto rico argentina, greece. Its this debt that is everywhere. Eventually the piper has to be paid. My concern is that we may be in the beginning parts of the market rolling over. Is that your reading of whats going on here . No. I think the market is repricing the slowdown in china. We had a little bit of a head fake when the chinese reported a 7 gdp number. Aside from that the numbers continue to see out of those people who have market share, apple is your single beth example. The stock got crushed because of the slowdown and unanticipated slowdown on the apple sales inside of china. The Global Market is repricing. Specifically commodities. A slowdown in china where we were expecting 7 . We were told not realistic. Im hearing 4. 5 to 5 read. That has to be repriced. Today we are seeing pressure across all sectors. We continue to hear rumors of stories of for sales in commodities and equities. That will give you a buying opportunity away from the global stocks meaning the russell 2000 or s p. Dow session lows down 125. Rick santelli like weak for Economic Data but plenty when it comes to the economy from these big multicap earnings and whats happening in commodities. Absolutely. Anybody who wants to know what happens usually when commodities have big down turns, go look at what happened in 2007 and 2008 with the crb index. What we are carrying along is all the debt. It will make a difference ultimately. I like the way the big story going full surge, in my opinion, giving us a fairly honest glimpse, some say walking it back, but here is the way i look at it. Thats where you are going to hear the squawking first or big institutions. They are not altruistic, they are in the game to make money. Theyve seen the central planning. They know it cant last forever. Squawking is also a very good indicator as to the dynamics. Stay exactly where you are. Lets pick up that point. One of the last bulls on china. Dalio telling clients there are no safe places to invest. Kate kelly has that story. That is melodramatic. There was a lot of caution and context. Nonetheless, surprise news that emerging from the worlds Biggest Hedge Fund talking about the connecticutbased Bridgewater Associates which manages 169 billion in assets. Ray dalio has been supportive of the china story even in the face of real issues. Calling its issues with debt and the economic slowdown a tail wind. In a letter cnbc obtained he made something of a mea culpa. That it should be more meticulous, bridgewater, in the future in anticipating some of these moves. Bridgewaters take on china is many full. Recent stock losses have been substantial with significant losses for households partly because some of them bought at the peak price points. Chinese policy of late has been shortterm supportive to prices but longer term slightly negative for the markets and for the development of the chinese equity markets. Some of those measures will not materially affect the economy. The next weeks and months will be really key as we get economic and credit data that will tell us something about the impact of the stock market route. More monetary and fiscal stimulus are going to be required. Up shot a painful economic slowdown is likely. A lot of bearish sentiment there really. Even though they still position themselves as longterm constructive on china. Dont go away. We want to discuss this with our panel. Ken, you were talking about the global doom from the debt hangover. What as an investor do you do when the second biggest economy in the world, which is so many u. S. Companies are clearly exposed to is going through Something Like this . In our firm we believe in the philosophy of buy, hold and sell. We believe you should have a point where you get out of the stock market. We told clients to get out in november 2007 and stay out for all of 2008 into june of 2009. The u. S. Stock market you are talking about . Yes. But the s p, if you look at the s p and you look at the trends on the s p, and use that as your judge, is a very good predictor of what the rest of the world will do. If you use the trends on the s p as your guide of bad things are coming its very likely bad things are going to come with the rest of the world. The u. S. Is not quite where it used to be. If we sneeze the rest of the world got a cold. They still get sick if we sneeze. Still by far the largest economy in the world with the highest, arguably the highest visa. Let me pick up what would be the Silver Lining in your analysis of china and commodity route, which is that oil like sweed crude is at 48. 72. At some point if all those analysts are right, that should light a fire under Economic Growth in this country goes the argument shouldnt it . Yes. The fear has to come out of the marketplace. Weve been frightened into a situation of doing nothing, so to speak, where money, the money the American Consumer in particular has been saving from the oil side of the equation i think, is not being spent in its traditional fashion. You expect people buying the coach books or kors bags. Talk to your neighbor and find out how much they are paying for their health insurance. Thats why the Health Sector is performing. Everybody in the Health Business is getting paid. American consumers, again this year, are going to be called on to pay more than the year before. That is your inflationary pressure. From the oil savings, if you will. It will be slightly greater than that and will continue. The commodities markets are starting to naturalize. The same way the u. S. Interest rates will have to naturalize and go higher. The fact of the matter is you had money chasing the commodities market that had no business income that marketplace, anticipating what china was going to do. Weve seen that is not a good bet. I think there is a deep connection between china and the commodities market. There is no accident you are seeing a slow down in china. The stock market route at the same time as we are seeing new lows or recent lows in Commodity Prices. China was stock piling oil earlier this year which may have given the market an overall lift. China crucially important in terms of buying base metals. That appears to have slacked off. Copper at a fiveyear low. If they are slowing down that could have a continued depressing effect on Commodity Prices as a complex. Rick join us if you could from chicago, the big question is where we are going on Interest Rates if they are moving forward. How does a day like today change the conversation at the federal reserve, do you think . I dont understand the conversation they are having. I will tell you if i look at a 2. 9730year bond it will be the third lowest close since july. Both these are breaking out. This came after the lowest jobless claims number since 1973. That to me would have been an issue that would have given the fed ground cover to tighten, they need to raise rates but the typing is horrible. Datadependent. It hasnt been the best six months stretch of data over the last several years. Interest rates are devining this global slowdown is a big issue and the fixed income markets are always focused in a nonpolitical way as to the big picture on the fundamentals of the economy. True. Thank you for bringing up those good jobless claims. It was getting doomy and gloomy. The lowest since 73 . Is it really good news . Lowest population versus labor force. Less quality jobs. Probably less layoffs. Many ways to look at that number. Forgive me to be negative again, one other key point on china is is there a contagion effect to unwind here that the stock market route triggered. This is something dalio touched on and jpmorgan touched on last week. Will it set off a fear trigger that causes a stock market route here and in other parts of the world . It has. That is the pressure. Weve got to leave it there. Falling more than the overall market, i want to call your attention with diageo. Its down about 4 on heavier than average volume. It was down around 5 at its lows. This because of dow jones headlines saying that the Securities Exchange commission s. E. C. Is investigating whether diageo has shipped excess inventories to distributors. Something known as channel stuffing. Allegedly, the company may have been pushing product on to distributors to book sales earlier than it otherwise would have normally done so. According to this dow jones report diageo has confirmed to them that they are at least in contact with the s. E. C. Again, we placed a call to diageo to confirm this story. For those who are wondering why diageo shares are lower, thats the reason why. Well bring you more details. Back to you. Thank you, dom chew. Here we go with about 45 minutes to go before the closing bell. Earlier the dow was up as much as 92 points now down 144. 3m caterpillar weighing on the dow. S p 500 down almost 0. 75 . Nasdaq bowen 0. 6 . Microsoft chairman John Thompson will talk windows 10 to be released next week. Up next packaged coffees and instore kcups put a drag on sales. The stock is falling. Ceo nigel travis gives us the story. It took Tim Morehouse years to master the perfect lunge. But only one attempt to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. A new season brings a new look. A chance to try something different. This summer, challenge your preconceptions and experience a cadillac for yourself. The 2015 cadillac srx. Lease this from around 339 per month, or purchase with 0 apr financing. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. 43 minutes to trade. This is the dow heat map. Dow down 141. All sectors of the market are negative. Shares of dunkin fall inging. In store kcup sales lagged. Joining us in a first on cnbc interview is ceo michael travis. Good afternoon. Nice to have you onboard. Obviously, the market hasnt reacted terribly well to what you came through with today. What are the central concerns youve been dealing with with analysts and what have you been telling them . Well basically weve been telling everyone what a great quarter we had. We had what we consider to be good comps in our u. S. Business dunkin and baskin. We had Excellent Development in the quarter. We beat most consensus expectations. Its interesting our stock is up about 30 this year and outperformed the dow and nasdaq. Weve been telling them we feel our guidance for the year we are right on. We are very excited. You mentioned kcups. We are excited about our packaged Coffee Business we started earlier this year with a unique sharing relationship with franchisees. The stock being down is a mystery. We had a great quarter. One of the prices was on this kcup issue. Lets set the record straight. You actually got a boost from the kcup partnership you have with smucker that puts that into bigger retailers and grocery stores, but that hurt your kcups you sell in your own stores and packaged coffee is that correct . Thats been a trend in our business for around a year. In q3 well be starting that trend. We had greater distribution of kcups that sales will go down. Thats why we did the sharing arrangement with our franchisees. We watched how mcdonalds turns itself around one of your biggest competitors. What happens if they go to an allday Breakfast Menu . What effect would that have on you . I dont think we needed to respond. Mcdonalds are a great company. I competed with them in the past. They will be an aggressive and professional competitor. We have the best breakfast out there. We come off a quarter where coffee was up the highest level since 2011. Our donut sales on the back of things like this chip ahoy donut are up 19 quarters in a row. Our breakfast sandwiches hit record levels. Weve been advertising the fact we have allday breakfast already. Unlike mcdonalds, we are not going to have the operational complexity allday breakfast causes. Clearly, they are going to have that challenge. We think that is an opportunity for us. Youve been doing some experimenting when it comes to your menu. The oreo donuts the bacon guacamole flatbread. It sounds like you are doing nicely with this little addition. We are trying to do both. The great new product right now is our fresh fruit smoothie which is good. It started nicely in the Third Quarter. Its not totally in the system yet. Its rolling out throughout this quarter. We are trying to give consumers choice. Thats the way we approach it. Right from the start. We give lowcalorie options. A great option in terms of this category is you can get a light cool latte about 70 calories and is really good. What about the minimum wage . Where are you on that and current discussion about overtime legislation, as well . Have you maintained Staffing Levels . Firstly, individual franchisees have to make their own decision. The franchisees will be under pressure. Other chains will be under more pressure than us. We are concerned what happened in new york where they targeted the fast food industry. They effectively targeted franchise e sfran franchisees. The point people make is as follows. This industry educates americas work force. We give people their first job. There was a lot of discussion on cnbc about that today. Secondly youth unemployment in new york state is over 20 for 16 to 19yearolds. Thats not going to do anything for that issue. We think its going to put a lot of other businesses into trouble. The 71 increase the wage brought in new yorkers opposed over a threeyear period is an outrageous number. Well see if it gets past the commission good. To see you. Thank you for your time. Nigel travis ceo of dunkin brands. Stock is off but near a record high up 33 for the year. Starbucks will report earnings at the top of the next hour. Well have the results soon as they cross on closing bell. Tune into mad money tonight 6 00 p. M. Jim cramer will speak to starbucks president and coo Kevin Johnson right after the coffee giants Earnings Call. Less than 40 minutes before the closing bell. Looking at losses across the board. Dow now in negative territory for the year. We lost all the gains. Those that already reported today, today marks the busiest day of the earnings season. Amazon starbucks and visa amongst those reporting within an hour. Well preview the numbers and watch them deliver those results here on cnbc. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Here at Td Ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. The shakeup at bank of america, cfo Bruce Thompson leaving the company being replaced by the ceo of youth management units. Stock getting hit on the news. Is this a reason to bail on the stock . Marty, you are the bear here. A lot of people are concerned this is systematic of a power structure. Increasing hold on the power position but underlying of concern of what the direction of the bank is or should be. We believe moynihan has outlined his vision and direction. You look at these movements. I was cfo at a bank before. After four years, especially in this environment with so much compliance and regulatory headaches, you want to do something positive. Bruce is looking for other opportunities to get out and Start Building business and not just putting out fires. I wouldnt read too much in this announcement we got last night. They are coming off a pretty good quarter. They actually saw some signs of loan growth and some signs that the legal issues and all of the headaches from the financial crisis are finally behind them. As a shareholder, are you pleased with management and do you have concerns about the shakeup . Yeah. Thank you. Bank of america is a marathon story, not a sprint. Remember, there is a disproportionately large amount of money that is interested in stocks based on what they are going to do the next three to six months. I was on the closing bell when stress tests were announced. They dropped on those stress tests. Today its down but still above 18 a share. The stock is up about 16 since it fell off right after the stress test. The person involved like your other guest says was very involved in the delivery of the information to the federal reserve. It hasnt been maximal. For us we are interested in what the bank of America Corporation is going to make three or four years from now. If that number is 2. 50, their dividend will be dramatically higher and stock will be dramatically higher. Even if its not higher three to six months from now. Right. Marty, the journal in its analysis draws attention to the fact that the last five stress tests, three were slightly impaired and draws that to thompsons door. Why are you a bear on this stock . We have 85 of our banks under coverage here with a buy or strong buy rating. We are bullish on the banks. What we are looking at with bank of america is valuation. We think they are in a trading range of 17 to 19. We think the Interest Rate sensitivity investors are buying into is going to be less than what is advertised after we start to see the rate increases start to happen later this year. Surely you dont agree with that. We did see core growth and Revenue Growth even at those high rates . At the top of the hour you did a story how tough the macro environment is around the world. Listening to doug the guy that bought the second largest Mining Equipment company in the United States in 2011 at the dead flat top moan about how bad the National Economy is guess what . Brian moynihan has ruby red slippers on. So do the banks my friend are talking about. They are clicking their heels if they are domesticallyoriented going, theres no place like home. Good point. Bank of america is one of most purely domestic plays in that arena. Thats why we like it so much. People that go to small caps to get at domestic the problem is small cap stocks are the most expensive to large cap stocks in my 35year career. You dont want to go to expensive stocks to get at good themes. Thanks, guys. Good debate to have. Interesting way to put it. Lets get a cnbc news update with sharon epperson. Here is whats happening. Donald trump arriving in texas on his way to the texas americian border. His first visit since making controversial remarks with illegal immigration. He will tour the border without Border Patrol agents after their union decided to pull out of the visit this morning. Universal pictures announcing Jurassic World will get a sequel slated june 22 2018. Taking in more than 1. 5 billion globally just so far. The third highest grossing film in history. Comcast is the parent of universal and this network. Starbucks is teaming up with lift to let drivers and passengers earn starbucks awards points every time they take a ride. Pearson plc is selling the group to ekinc. It includes a joint venture with a russian business newspaper. Nikkei is the largest independent media group in asia. Back to you. That is an interesting deal if you were looking back at other newspaper sales like the Washington Post in recent years, fraction of that price of 1. 3 billion. Though it has a billing global reach. They could have had more money if they hadnt insisted on editorial independence. Your point about the global reach is probably the biggest reason there when you are looking at the breadth of what they cover and who they reach. I think that is a big reason for the money there. To push the nikkei around the world. Thank you. 27 minutes to trade and the dow is down 138 points. Off the lows there. Still lower across the board. Up next the most important half hour of your trading day. A top trader tells us what he is watching as we head into the close. Microsoft chairman John Thompson will speak with us exclusively. Well discuss the windows 10 release and his new project in the cloud. Now get the unmistakable thrill. And the incredible rush of the mercedesbenz youve always wanted. But you better get here fast. Yay, daddys here here you go, honey. Thank you. Because a good thing like this wont last forever. See your authorized dealer for an incredible offer on the exhilarating c300 sport sedan. But hurry, offers end soon. Share your summer moments in your mercedesbenz with us. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. The most important final half hour of trading in the session. Im here on the floor with art cashin. Are earnings spooking investors today . Earnings have not been a pleasant story. As we move toward the close, there is a mild flight to safety. Perhaps a derisking. There are concerns about what is going to happen in china now that dal go and others have blown the whistle on them. Markets start to melt down again. Little bit of an anxiety left building here. How is the volume in this selloff . The volume had been heavier earlier. Its peeling back now. Originally looked like we would do about 850 million shares here on the floor. Now it looks like well probably be comparable to yesterday, maybe less than that. Weve got amazon. Weve got starbucks. The global companies. Then youve got good stories in earnings like under armour and General Motors on the domestic economy today. Which one are you going to be watching into tomorrow . Im going to be watching amazon and further clues that a strong dollar hurt earnings. Art cashin good to talk to you heading into the close. Oil settling below 49 today. Jackie deangelis has the latest on that from the nymex. Good afternoon. We saw pressure in the pits today. Wti was down another 1. 5 . The Closing Price 48. 48. We havent seen that level since march 31st. A couple of things to think about here. The dollar took a pause today and crude went lower. That gives you a sense of the kind of sentiment right now to the down side. Also traders telling me they are still very concerned about demand coming from china specifically. Also the euro zone. Some of those fears may have eased in the marketplace. A few bulls out there right now wanting to buy to the up side here. When we broke that critical level of 50, it was significant. Settling under 49 today sets us up for that next leg lower. Back to you. Keeping an eye on Commodity Prices moving lower. Microsoft shares are moving higher today. We are certainly hurt earlier this week after reporting disappointing Quarterly Results. The company citing a global slowdown of pc sales and unwinding of the nokia deal. Joining us is microsofts chairman John Thompson. We want to talk about your new investment in a moment. You led the search. Do you get frustrated that the process of change is as slow as it is . Frankly, i think the process of change at microsoft is moving along quite well. I think sasha has outlined a very clear vision for what he wants to accomplish with the company. He has the team aligned behind him. That is an important aspect of any transformation. A company of this size requires time to transform itself. To assume we could make monumental changes in 18 months is a bit unrealistic. If you look at the underlying performance of Cloud Strategy things we are doing around the consumer are all important issues for us and will yield good results. On the new windows 10 rolling out next week nadela said it would return to growth. I would rather return to satya to talk about the forecast than me talk about the forecast. Lets talk about your investment in rubric. Good. Given your position and previous positions you had within tech. You must have hundreds of opportunities every six months. Why this one, why go personal . I have a view about technology that Early Stage Companies are as much about the leaders and teams they assemble as the idea they are pursuing. Oftentimes, my first step is to look at the Leadership Team and look at what their Team Development strategy is and then evaluate the idea that they have. In the case of rubrik they clearly have an idea around transforming the way back up archiving and data Storage Model works. Having been at symantec many years, many of the platforms have been around 20 30 years. Rubrik has been around the right place and right time. An awesome team. It does cloud storage. It seems that is a crowded area. There are a lot of companies doing that. What does rubrik do differently . Rubrik has an appliance as well as cloudbased offering. The combination makes this a powerful offering for enterprise users. They are focused on the enterprise, not necessarily the consumer where box and drop bach and others might be playing. The real issue here is the unique Technology Platform that they are develop inging and how they are trying to smooth out the integration across various functions so important in backup recovery. No one quite approached the challenge the way rubrik has. You must be aware there is an active discussion whether or not there is a bubble in tech particularly the private companies that have yet to come to the public markets, valuations on uber and the like. What do you say to people when you hear that conversation under way, which i understand is common in Silicon Valley itself. I think if you look at what has happened the consumerization of i. T. Is real. More and more Consumers Use Technology today than ever before. While we can point to the bubble of 2000 and the collapse shortly thereafter, that bubble was driven by enterprise buyers not so much consumer buyers. With the consumer being as strong as they are today, i dont think this is necessarily bubble that burst or collapsed, quite like we saw in 2000 or 2001. That being said valuations of some of these companies are quite high. The question becomes is this a safe place to park money in light of low Interest Rates . And given low Interest Rates in the markets around the world, people are looking for leverage and leverage does come in the form of early stage investments. In answer to your own question do you think its a safe place . Well ive got about 20 or so private investments of my own in very, very Early Stage Companies. Obviously, i have a sense it is somewhat safe. No early stage investment is guaranteed. If you are unwilling to take the risk, you should not be in this market. Good to see you, sir. Come back any time. Oh my pleasure. John thompson the chairman of microsoft and latest investment, rubrik. Not talking about windows 10. Lets send it to dom chu. Shares of Strategic Hotels resorts up 3 after bloomberg headlined saying they are hiring bankers to potentially seek a buyer. They say they contacted strategics advisors contacted potential suitors. The reason its so important, this is the reit behind Marquee Properties in the u. S. A lot of these Luxury Properties all up in this basket in this company. Back to you. For many years the discussion has been whether the reits would break up or merge. Hot topic. Now down 129 points on the dow. Pulling back slightly with 15 minutes left to trade. Up next the fbi sounding the alarm on chinese corporate espionage attacks that it says are becoming more brazen. A special report from washington. Equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. vo rush hour around here starts at 6 30 a. M. On the nose. But for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Dow down 128. Check out the dow transports falling harder than the broader index. Transportation stocks having their worst day since january. Art cashin telling us 500 million sell orders into the close, putting more downward pressure on stocks as we head into the closing bell. Fbi is warning Corporate America of the rising dangers of chinese corporate espionage. Eamon javers has a special report. Reporter officials here at fbi headquarters alerting executives to the dangers of chinese corporate espionage. Theyve given us this Surveillance Video taken during a sting involving two chinese executives who thought they were going to bribe an american official to give them the secrets to a glass manufacturing process. Instead, they were arrested by the fbi. Fbi putting that video today to make the point that this is very real. They are also launching this new video. Its a training video dramatizing some of the events that happened in that case. Take a look at the training video they are putting out today. I was hoping to discuss the position. If you manufacture in china. I wanted to see if you were happy with your work. Executives i talked to at the fbi say they are concerned about the level of chinese espionage they are seeing. Theyve seen a 53 spike in chinese espionage since last year. Hundreds of cases. They are worried the United States is losing this battle. Scary stuff. Interesting look at that video. Eamon javers in washington thank you. Ten minutes to go before the bell. Dow, s p and nasdaq all lower. All the major indices groups lower. Amazon starbucks and visa posting results shortly. It took Serena Williams years to master the two handed backhand. But only one shot to master the chase mobile app. Technology designed for you. So you can easily master the way you bank. Six minutes and counting. Brace yourselves for a tsunami of earnings after the bell. Full team coverage. Josh lipton what are you looking for out of amazon . If there is one number to watch when amazon reports, it is that top line number. Cantor analyst is expecting sales of 22. 5 billion. Up nearly 17 year over year. He expects north american sales to stay strong while europe will be relatively weak. What is impressive is that the general ecommerce market is drawing at about 12 . Amazon despite its size is taking share from rivals. That number will include Amazon Web Services. The Cloud Computing division. Amazon broke out performance for that division the first time last quarter saying it did 1. 6 billion in revenue. Thank you, josh. Now to dom chu for a preview of starbucks. Here what is to expect. Earnings per share 41 cents, sales 49 billion. Beyond those headline numbers, traders will keep tabs on sales growth as well as costs. Starbucks has a big presence in china. Any economic commentary on that front could be big, as well. Options markets are currently pricing in what could be a plus or minus 4 move in the stock on the heels of earnings. Shares are already up 39 this year. They are down marginally in todays session. Still its up big. Well see if the numbers are good enough. Extraordinary move. Last but not least Mary Thompson will tell us what to expect within the dow on visa earnings. Earnings rising to 59 cents a share on revenue at 3. 4 billion. Increase coming as they say this will market a low point of Revenue Growth. Lower gasoline prices hurting its u. S. Payments and could hurt cross border volume. Expenses seen rising this quarter. On the call, investors will look for updates on Digital Initiatives like visa checkout and signs it is closing in on buying visa europe. Amex sees weakness. Well see you after the earn coming right back with the closing countdown. The big earnings parade after the bell. Stay with us. By the time Police Arrive on a crime scene they could have little to go on. A vague description. A single piece of evidence. A partial plate number. With an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. Ibm analytics helps one hundred thousand officers work smarter every day. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. We knew earnings would be important. This is the dow about to close out on its lows for the session. 3m caterpillar, amex big bellwethers disappointing what they are telling the street. You want to look at the big four. A lot of money hiding out in a small group of stocks including the big four tech names google amazon facebook apple. All down today. These are the big market leaders if this starts going on a few days in a row, the technical people will start screaming like crazy. Other groups people hanging out in banks. A lot of money there. Most sitting near 52week high. Etf important banks sitting at the lows of the day. Another group is biotech. Ibb. Big earnings to come on cnbc with myself and sara eisen. Welcome to closing bell. Im sara eisen. Simon hobbs will join us in a moment. Dow closing off the lose. Still down triple digits. 117, erasing any gains for the year. Negative for 2015. S p closing down 0. 5 . Nasdaq closing down 0. 5 . Earnings is all the talk today. Weve got an onslaught of earnings. Josh lipton watching amazon. Dom chu covering starbucks and Mary Thompson all over visa. Well bring them all as soon as they are released. We have michael santoli, a very own Morgan Brennan on transports. And we are joined by christine short to talk us through the earnings. Michael santoli, the narrative on earnings changed the last few days. This heightened focus and worry on the global weakness. Exactly, yes. Especially industrial names. Emerging markets weakness is bleeding through. Thats why industrials have been underperforming. Christine, 3m caterpillar, those were two of the biggest losers on the dow today. Offsetting good stories out of General Motors under armour sandisk. You never want to see industrials underperform like that. They are a proxy of Global Growth at a time when we need good news about the Global Economy. That was a bit of a disappointment. Theres been other high points. Right now s p 500 year over year growth is at negative 0. 9 . We started the season expecting growth negative 3. 5 . We have improved a bit. Its not as negative. That is very important. What you are saying is earnings are beating general expectations. Which is always a little bit higher than the street. They are beating a bit higher expectation. Revenues we are still seeing weakness on the top line. Revenues are expecting to be down 3 . Only 43 of companies have beat on the top line. Morgan you are watching the transports. Worst day since january. We heard from some of the rails. The dow transports is down 10 for the year. Weve seen huge pain all year long. This has been a story of stronger dollar and weaker commodities. Its those more industrialfacing transport names. Union pacific was down 4 5 today on weaker than expected numbers. Sorry to interrupt you. Here we go. More earnings hitting the tape. Lets catch up on at t with dom chu. What you are seeing right now are shares up about 1. 5 176 176,000 shares traded. Analysts were looking for 63 cents per share. Revenues coming in in line. On 33. 02 billion. We are going to go through this report and check out some of the numbers on wireless net, additions, churn rates. Maybe comments about the uverse product. Profits beat sales in line to a very slight miss. As a result shares up by about a percent in trading. Back to you. Thanks dom chew. As we look at some of these numbers, its not important the top and bottom line but how the market is reacting to some of these numbers. Im surprised to see the market is going down a bit here. We are seeing a pop in the after hour. Which makes sense. Came in at 69 cents, we were expecting 63 cents. We would like to see how uverse is doing next wire line products. We want to hear more about directv merger. Brian kelly joins us. What are you going to pick up on here . In at t you are seeing this pop. This earnings season like the last one, you have to wait for the Conference Call. Guidance can change the direction of these stocks. In terms of at t you are down about a little over 10 since the beginning of july. Any type of a rally 1 is probably expected. Sentiment has been weak going into this. Even if that revenue number is a miss, i wouldnt be surprised to see a rally like this just because sentiment was so bad. Weve got pandora Quarterly Results out. Dom chu has the numbers on what looks like a beat. It does. Shares up 5. 5 77,000 shares traded so far. Pandora, weve got a nickel in terms of profits per share. 5 cents adjusted. Revenues coming in slightly better 286 million. Analysts were looking at 283 million. Also comments coming in about the active listener hours maybe below. 79. 4 active million listeners. Hours coming in slightly below. 5. 3 billion versus 5. 6 will. What theyve seen since apple music launched. Absolutely. I would say you are talking about a stock that may be set up for a bounce here. Yeartodate down 22 . Over the last year lost half its value. We are talking about a bounce but maybe set up for one shortterm begin the price move going into this report. May be why that stock is up. Up almost 8 . Listener hours and other secondary metrics move stocks like pandora. They came in less than expected and still going higher. The pattern has been the setup going into earnings usually dictates the reaction. With the exception of netflix and google which did run into their earnings everybody else has been a reversal move. Apple is the obvious one. Huge runup. Apple went up today after yesterdays sharp selloff. With regard to pandora, its not clear one quarter will change peoples minds. There may not be enough listen hours to go around. Its still a 3 billion stock. Per user which is this crazy metric, people say its not expensive. They are only making 11 or 12 per user per year. I agree with morgan. Its not about the fundamentals here. It comes out to how many active listeners. How many hours per user her month. That was a number we are waiting for to test what User Engagement has been. So many of these services is there enough to go around . Typically see the stock drop. A very young industry. Brian kelly, what is your take . Pandora is a stock i liked for a bit and its hurt me a bit. But its also been left for dead right . Old monty python not dead yet, is what pandora is saying to me. Very key it held that and rallied from here. Up 8 . I dont know if i would buy it. I would wait for the Conference Call. As long as apple is not eating its lunch, which it doesnt seem like they are, pandora could be set for a big run. Well see what happens with that. More earnings. Visa is out. Mary thompson has those results for us. Strong bottom line beat. Earnings 74 cents a share above analyst expectations at 59 cents a share. 74 cents a share excludes an adjustment the company took for the reevaluation of its visa put option. Revenue ahead of expectations at 3. 5 billion. Analysts looking for 3. 3 billion. On total volume up 11 . That was ahead of expectations. Charlie sharp saying its Data Processing as well as International Trans yacks business. A beat from visa a beat from at t. How about starbucks . Up 3. 5 . What we have for starbucks is earnings beat. 42 cents a share. Analysts looking for 41 cents. Revenues a slight beat. 4. 88 billion. Analysts looking for 4. 86 billion. Total comps up 7 . That is better than average analyst estimates of 6. 1 . They started a or are going to start a new 50million Share Repurchase program. The company in conjunction with pepsico says they will have a partnership to distribute bottled starbucks products in latin america. Thats coming in a separate release. Starbucks shares up 3. 5 321,000 shares traded. Be sure to tune into mad money tonight. Jim cramer will speak to starbucks president and ceo Kevin Johnson after the Earnings Call. The ceo says Third Quarter stands as among the strongest and most remarkable quarters in our over 23 years as a public company. Michael santoli, this stock was down into earnings. Now popping 3 . Amazing enthusiasm out of howard schultz. Christine, expectations here . Part of it is the Buyback Program . Sure. We were expecting 42 cents. She came in line. Beat top line by slightly. Would love to hear more about mobile pay. Thats become a huge part of their business. About 20 of transactions through their store. More about the rollout people using the mobile app to pay before they get there. Amazon reporting 19 cents on 23. 13 billion. Street was looking for a loss of 14 cents on 23. 39 billion. Just looking through the release, total operating expenses, 22. 7 billion. Operating margin clocks in at 2 of worldwide sales. Amazon web Services Net Sales 1. 8 billion and spinning ahead q3 guidance 23. 3 billion to 25. 5 billion. Street was around 24 billion. Amazon reporting a 19 cent gain on 23. 2 billion. Back to you. Profit growth at amazon. Wow. 13 higher in afterhour trades. Michael santoli, i saw you looking surprised there. Surprised by the number. Almost a billion dollar revenue beat is significant. This is another stock that will go against that reversal trend. This was strong going into the report. Are we clear why theyve gone into this surprise profit here . No. Same argument we can ratchet up the arguments. I dont know if this means they are going to start harvesting profits that. Topline beat came in stronger than expected. Sales up 20 in the second quarter. They beat our 22. 4 billion expectation on revenue. They dont have a sales problem, they have a profit problem. To see them come in 19 cents, we were expecting negative 8 cents. Thats incredible. What is your take . I think what you were hinting at is whether or not there was something in these numbers that got them to that profit. Or is it simply that they did a little bit of cost cutting a la the way google did. Well have to see. I would be reluctant to buy it up 15 . Everything is kosher. Phenomenal numbers out of amazon. To beat almost 1 billion is phenomenal. Do we have earnings season intact . I think we do. At least on the revenue side. Even with apple which missed. Still there were some extraordinary numbers. You have apple, google and amazon putting in decent revenue numbers. The bigger question for the market is looking forward over the next six months what the guidance is and what people think the Global Economy will do. Do you agree . I agree it ratified the markets verdict these large growth names are the ones that should perform. Theyve been carrying the market for a while. Those top three, visa amazon starbucks, those are core growth names everyones been crowding in. These confirm it made sense. We want to see what the guidance is around prime day which they had after the quarter which was a record day. Better than any black friday. Guidance for prime day. Keep in mind amazon is very tightlipped. They dont give a lot of information or data. If we do get limited information from amazon on their Earnings Call in their numbers, im not surprised this stock is jumping on this. If you look at names that reported this morning, they were industrial names. Names focused on the Manufacturing Industrial part of the economy. Names that are beating are names focused on the consumer. It is a tale of two economies here. Im looking at guidance from amazon. Expected to be 23. 3 billion and 25. 5 billion. That was in line. Thats what weve seen them Revenue Growth about 20 over the last several quarters. That sounds very bullish. Actually they tend to downgrade guidance anyway. Im sure analysts will come in with something higher. For sure well have more. The Conference Call kicks off in 45 minutes. What do you do with the stock . Im a profit taker, up 14 , 15 . Love to see what the Conference Call says how they got to that profit. Up 15 . You would be crazy not to take some off the table. Investors always dreamed about the profit at amazon. Now they have it. Well find out how they got there thanks everybody. Stick around and catch brian kelly in fast money at 5 00 p. M. Theyll have all the trading action and comments from the Conference Call. That will start 5 00 p. M. Eastern. We are just Getting Started with this massive afterhours earning wave results from trip advisor, capital one and sty works to come. First, well speak to one bull who says investors need to buy this stock. Ery Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Female announcer get three years interestfree financing on brand name mattress sets. Plus, get free delivery, and sleep trains 100day low price guarantee. Sleep trains interest free for 3 event ends sunday. Your ticket to a better nights sleep amazon out with earnings. Surprisingly, the stock posted a profit. A big beat on the top line. Shares up as much as almost 15 . Big move. John fortt is also with us in san francisco. Lets kick off with you, david. What is your initial take . The problem we are having is we dont get much detail here from amazon. It simply isnt there in the release. We have to wait for the Conference Call in 40 minutes time. No. No doubt. This is a blowout number across the board. They had a tremendous amount of strength. I heard sara ask the question earlier, was anyone close to this revenue number . We were at 22. 7 billion. This exceeded our expectations. Weve done a lot of work at cowan, survey work. We upgraded on monday. Had a 585 target on the stock. This could be a 600 stock in a relatively short period of time. The move today, do you rush to buy it on this move . I dont know you rush to buy it. All the signs are pointing to this stock going higher. You are seeing all the right things. They spent money and we are seeing it pay off. Margins are higher. John fortt, i want to highlight this Amazon Web Services. 1. 5 billion was expected and already that was Something Like 50 growth. Its 80 growth instead of 50 growth. Right. If you look at the operating income line they were at 391 million. That is 21 margin on the operating line up from around 7 a year ago. That is significant. Amazon has been staying ahead. When you hear about that and you consider this is supposed to be a commoditized area yet amazon managed to open up that operating Income Growth over the space of a year its significant. That on top of the top line growth which is what you want to see from a company like amazon thats been investing as heavily as it has, logistics, international, showing this profit becomes significant. Can you make a profit if you want to . Apparently yes, they can. What about the price action we are witnessing here . We added 33 billion to the market cap of amazon. That takes us back to the types of moves and big tech reaction we were getting to google when they came out with their results which proved hugely attractive for tech in general for a lot of people. What would you say now as we look at amazon spiking this way . Weve been longterm supporters of this stock. We think investors are finally getting, just to reiterate what everybody else is saying the profit they have been looking for. Operating income on a gaap basis came in ten times what the street was expecting. On a forward quarter guidance we were looking for flattish guidance q3 relative to q2. The street was looking down. Its onwards and upwards. As we await the Conference Call and details, what do you think has gone on behind closed doors they should turn a profit this way . Certainly, Amazon Web Services is a contributor. A lot of of the talking points are getting lost in the conversation. Third party sellers, big increases in fulfillment by amazon. Mix shift to digital. Those talking points has been talking about for a long time now, starting to be realized in the numbers. Breaking this down further, mike santoli. On International Revenue beat for all the talk about the strong dollar weighing on multinationals beings revenue 7. 57 versus 7. 3 as expected. There was beat in electronics and other general revenue. Which is their main bucket of revenue. It seems like the revenue came in ahead of expectations. I think what well be interested to hear was this managed toward this profit or was it just this bonanza of revenue that fell to the bottom line . Going ahead, are they going to extrapolate from this profit performance that this is what they are going for right now . They have a new cfo. Yeah they do. The stock has been on a tremendous run. This is crowded long. To seat move after hours like we are seeing is reenforcement this stock probably does have more up side. The buying interest has been supporting this for the right reasons. I think they are saying the right things here. The spend they made from 2010 to now is starting to pay off in a way that is meaningful. Our producers are so anxious to show the move after hours, what you are asking for is yeartodate chart which is above 50 . Presumably we are up 70 almost on the year so far. Amazon and starbucks, two of the best performers in consumer discretionary. What are you going to listen to on this call . Its important to hear how they are thinking about costs. One big thing for google was ruth porat saying we are looking to digest some investments we made over the past several quarters. Is it a matter of emamazon deciding to digest . Did it happen some revenue came in more than expected so this is a onetime thing . In the way they guided they certainly guided aggressively in a way that would suggest a profit is possible. Revenue guide is healthy. Range on operating profit leaves the possibility of up side there as we head toward the Holiday Season. You want to hear what they say about prime day and whether those Record Number of people who tried prime are sticking around. That will bode well for backtoschool and the holidays. Thank you, all of you, to discuss this. The earnings keep coming. Here is another big mover. We are talking about shares of Juniper Networks war up 10 or nearly half a million shares worth of volume. Coming out with earnings of 53 cents a share. That handily beats average analyst estimate of 40 cents per share. Revenue coming in better 1. 22 billion. Analysts looking for 1. 11 billion. They offered stronger than expected q3 earnings per share and revenue guidance. All of that together you see a stock moving up by 10 so far after hours. Back to you. Some big moves after hours. You made an important point. It was on the verge of overtaking walmart in market value. If this pop carries through tomorrow, they will vault walmart in market value. Up 80 this year. Up next more after Hours Earnings action including results from skyworks, e trade and trip advisor. And starbucks has been piping hot for investors this year. Will todays results support that rally . Probably. Stay with us. Earnings coming fast and furious. Isnt that fun . It is fun. Dom chu rounds up some of the names we havent hit yet. We have to be serious market geeks to find this fun. Trip advisor. Shares down nearly 5 . 314,000 shares worth of trading volume. Earnings 54 cents a share. That misses the average analyst estimate 55 cents a share. Revenues 405 million. That misses the 413 million estimate. Shares down nearly 5 . Capital one financial shares also now moving to the down side. You can see down by 4. 5 . 53,000 shares traded so far. Reporting also its numbers coming out here. 1. 78 per share. Analysts looking for 1. 97. 5. 76 billion in sales. Missed there. Shares lower. Well finish our threecard poker game with skyworks solutions. Shares up 2. 5 . Coming in with a beat. 1. 34 a share. Average analyst estimate 1. 29. Sales 810 million. 802 million is average analyst estimate. Q4 earnings per share around 1. 51. Estimate was 1. 42. Revenues slightly better than average analyst estimates. Trip advisor has disappointed many times in the past. Visibility compared to other Online Travel agency is is arguably less there. There was a view. The stock was up 24 coming into todays earnings. They might look past that because of the deal with marriott which secured a base of Hotel Bookings there. Marriott one of the Biggest Companies in Hotel Operators out there the idea you can have direct booking ability between trip advisor and marriott plays into that story. If the stock has run up 25 going into this number maybe a lot of that was baked in. The results maybe not nearly as bad. Misses were not that bad. For a stock up so much going to that number already on good news, perhaps that factors into trading happening right now. Trip down 4 . More on visas Earnings Report which look to be good on the surface. Mary thompson has been digging deeper. Visa in talks with visa europe about a possible Business Combination or acquisition. The Company Hopes to resolve this by october. This is something investors have been watching for. The dow component providing some updated guidance for 2015 operates on a fiscal year that ends in september, i believe. Its annual net Revenue Growth will be impacted by a currency impact of 2. 5 slightly higher than before. More importantly, the company is forecasting Earnings Growth for the fiscal year to be in the mid teens. Earlier said it would be in the low mid teens. Putting it up after that strong beat. The company is also expecting a slightly lower tax rate than earlier forecast. Slightly lower client incentives for the year. Slightly larger impact from the dollar. Currency impact 2. 5 earlier. Currency impact would be 2 . Good news out of visa today. A number of people will be interested if there are more details. Time for a cnbc news update with sharon epperson. Here is what is happening at this hour. House is passing legislation that would prevent states from requiring package labels to indicate the presence of genetically modified food which is backed by the food industry. A planet that orbits its star about the same distance the earth orbits the sun and the star looks to be similar to our sun. The planet is 1,400 light years away. One of the most popular sneakers in American Culture the chuck taylor got an upgrade for consumers. Converse unveiling a new version of the 98yearold shoe with the same classic exterior but new modern and cushion foot bed. Tom cruise making the rounds in vienna before his latest Mission Impossible picture premieres there tonight. Cruise and one of his costars spoke with fans. Vienna was one of the locations for the film. Cant wait to see that film. Same here. Thank you. Amazon news of the afternoon here shocking the street with a profit. Well dig deeper into that report. Stock moving sharply higher up 17 . Jack bezos getting richer by the moment. Net worth rising over 7 billion on this gain. Starbucks shares are also higher after reporting earnings. 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Female announcer sleep trains interest free for 3 event ends sunday. Its your last chance to get three years interestfree financing on beautyrest black, Stearns Foster Serta Icomfort even tempurpedic. Plus, get free delivery, and sleep trains 100day low price guarantee. But hurry sleep trains interest free for 3 event ends sunday. Guaranteed sleep train your ticket to a better nights sleep the big breaking news is amazon shares are soaring after it posts not just a profit but 20 gain in sales on its Quarterly Results. Josh lipton has more back on the west coast. Just whats impressive about this as we think about this move when you look at that ecommerce market, that is a market growing roughly 12 . Here comes amazon a company this big, of this size still growing at this rate taking share from rivals. A top line that jumps 20 . Just looking through the segments here. North america 13. 8 billion. That was better than expected. Also Amazon Web Services. I noted you pointed out revenue was better than expected. So was operating income at 391 million. Still spending. Revenue clocked in at 23. 2 billion. Bezos spent 22. 7 billion. Operating margins at 2 worldwide sales was much better than analysts had been looking for. That call starting in 20 minutes. You want more color how they did it it. Ill bring you headlines as they come in. Amazon web services huge growth driver. For more reaction reare re we are rejoined by john fortt. Sales would have been 27 without the hit by the strong dollar. I cannot get over the aws numbers. 147 year over year growth. Thats the business you want. It is global. It is serving countless number of websites. When aws goes down its like the internet goes down. Thats probably the most important story. When you look at the highlights its informationfree. Prime day isnt part of this quarter. Thats like the first thing they put in. You have to dig in here to see why is amazon growing the way it is . Is it possible to say the beat is entirely due to web services . The operating profit is up over 300 million. They doubled the sales. Its the biggest number here. I kept poring over these numbers. This is the one that is exploding. Thats got to worry companies that are competing with amazon in this space. If that becomes the story for amazon Amazon Web Services as it gets more scale becomes this amazingly profitable piece of the business it might change how we view amazon. They dont necessarily have to throw constant new piles of money at it. Quoting bezos from the press release, he did call out Amazon Web Services saying we launched 350 significant aws services and features this year ahead of last years pace. And goes on to say they are continuing to add clients. Enormous amounts . Have you got me . Yeah. They are going to have to keep throwing enormous amounts of money at this. Microsoft will throw enormous amounts of money at it. They want these big enterprise clients to move to the cloud, ive talked to a couple of them on to somebodys cloud. Amazon needs to get and keep their business. That is an investment they have to continue making. This quarter was not just about Amazon Web Services. It was about their ability to grow their core business. They managed to keep customers, particularly in north america, buying even as they try to go that International Business in areas like italy, spain and india. That north american buyer has been loyal. Thats why prime day is important. You are going to want to hear whether that buyer is going, that growing buyer is going to stick around and spend in the Holiday Season and how confident amazon is of that. You want to hear about shipping costs and how much they are going to take it on the chin there as they try to expand from regular prime into same day. The question of the moment is whether the center of gravity is changing at amazon towards web services. Not only how we think about it as a company, but why you would invest in it as a stock . I think is probably a smarter thing for amazon long term. That is a more dependable business. Unlike consumers who can change quickly and drop prime on a dime. They will stick with it. Two difficult ones are on aws to get off it. They are going to put a lot of money into it going forward. Got to disagree. As exciting as web services is its still only 10 . Amazon could be hugely profitable if they decided to stop investing in pesky things Like International growth and same day delivery. I think the question for investors is how much do they say about the need for continued investment right now in the short and medium term and how do investors decide to react to that after hours and into tomorrow . Right now theres this 17 up 18 , almost 19 up. Amazon can make a profit. Do they want to continue making a profit this year . John hit on a big piece of this. I dont think we talk about enough. Amazon is pouring gobs of money to become a transportation and logistics company. The web might be where you see all the growth but its the same day delivering testing out drones. They are completely disrupting the last mile of delivery and causing major disruptions among other transportation companies. This is something fedex, ups, it took generations to build out their network. Amazon is doing that. He always poured money in regardless of whether or not he had profits and how consumers see the company. They dont know anything about aws. Its still very important. Shipping revenue goes up 57 pfrmts57 . Weve got breaking news. The online car marketplace is worth about 875 million but down 27 on light volume. 50,000 shares traded because the company put out guidance for its Current Quarter here. Right now true car is saying its going to have full Year Revenue Guidance in a range of 252 million to 258 million. Analysts were looking for 283 million. In the accompanying statement they said while they set new records for units revenue, they continue to face challenges meeting their growth expectations and experience execution challenges. A smaller cap company, taking a big hit. Down by about 27 . Relatively light trading, about 50,000 shares. Notable move. Back to you. We talked to the ceo. They fought a number of regulatory battles. Today is the busiest day of earnings season. Well keep following this massive move higher in amazon. Weve got more on starbucks which Beat Estimates and whether its a musthave stock after running up double digits this year. Er. Special olympics has almost five million athletes in 170 countries. The microsoft cloud allows us to immediately be able to access information, wherever we are. Information for an athletes medical care, or information to track their personal best. With microsoft cloud we save millions of man hours, and thats time that we can invest in our athletes and changing the world. Keeping an eye on shares of starbucks moving higher, up 3 . The Company Announced a Share Buy Back program and raised the Earnings Guidance simon . Rob, an analyst at key bank. Robert, are you a buyer here . Yeah thanks for having me. Absolutely. This report from starbucks pretty much shows that the investment thesis is playing out, strong counts ability to raise prices. People love starbucks and have to have it. How far do you think the stock could go . We dont issue price targets but there is definitely some significant upside Still Available in the shares. You know the company has been always calls out its digital efforts. Cramer called it a technology company. It rolled out more mobile Payment Options in more states, signed more partnerships did the new deal with lift. Talk about the Technology Momentum now at starbucks. Yeah that was one of the risks that i thought might affect cost coming in because of those investments, but its something that will be that next leg of same store sales growth. For example, they rolled out the mobile order and pay in half of the u. S. Owned Company Stores and thats where you hop on your phone and order your coffee and show up to the store and pick it up and its paid for and you go. Thats something you plan on rolling out in fiscal 2015. Its not going to be a meaningful contributor but definitely in the next leg of growth for the company. Up 41 year to date its a huge move. Rob, thank you for joining us. Dont miss starbucks president on mad money tonight. Well wrap up a wild day for after hour earnings as we await the important call from amazon, starbucks and visa. vo me . I dont just wait for a moment. I watch for the perfect moment. The one nobody else sees. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. Welcome back to the closing bell. Well wrap things up were short on time. Amazon posed surprise profit. The web service is a standout. There are Profit Margins good shares soaring in the after hours. Moving to starbucks, the shares higher, 42 cent as share that narcotic lowly Beat Estimates and revenues 4. 9 billion. Comparable store sells better and have a new 50 million buy back program and well finish off with visa posting earnings and revenues that were better than analysts estimates. Shares soaring 6. 5 to the upside. Payment volumes up 11 versus estimates up 10 on a Constant Currency basis. Thats the big cap round up. Sarah, simon, back to you. Amazon a bigger cap by the moment surpassing walmart, ge and more. The call for the stocks about to begin. 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Call now to request your free decision guide. O0 wrapping up a very busy hour of earnings. The stand out has to be amazon. Mike, this is a blowout quarter and profits. It is. Its a buying frenzy. Will this pervade the rest of the tech and gross market. But it does challenge the idea that weve gone from very positive results to quite negative over the last two sessions. Yes, in fact all big growth names after hours seem to out perform. Morgan, your final thought . I think amazon is a real turnaround story n. 2014 it was a lagger in large part because of the spending it was doing and the lack of profitability as it reached out the octopus arms and this year it seems to be better than expected margins and posting a profit. Well see if it can hold the gains up 18 in the after hour as we head through the Conference Call and into tomorrows session. That takes us to melissa lee because fast money coming up in a few seconds. This will be exciting with that amazon call melissa. Yeah, we want to see if the big move holds up. The call will get underway in about 25 seconds. Well be on that call. Were looking ahead at biotech next week. Thats all coming up at the top of the hour guys. A negative day, melissa lee over to you. Fast money starts now, live from the nasdaq market, im melissa lee. A huge night for earnings and Live Team Coverage continues throughout the hour. Josh lipton is covering the call. Don ch us over theu is on the call but first, to the biggest mover of the night thanks would be amazon blowing past estimates, take a look at the move. This move can only be called one thing, ridiculous. The stock 17 , massive earnings beef. For the latest lets get to josh lipton in san francisco, josh . Melissa, youre right. As the story in the after hours, amazon posting a 19 cent