Good friday morning. Welcome to squawk alley with Morgan Brennan and jon fortt at post 9 of the New York Stock Exchange obviously watching these markets here dow is down 331 after yesterday, deep in the red. The dow, the s p, and the nasdaq are all on pace for their worst week of 2019 tech names getting hit pretty hard, apple, alphabet, facebook, intel all down around 2 , guys this is a period in which trade concerns might result in selling thats a little more indiscriminate than weve seen in recent months and among the tech names, a look at cisco thats down closer to 4 . Some other cloud names not doing so well. You see, dell is down more than that you know, Network Appliance well, that one has its own issues but certainly, hp down 5. 5 a lot of these trade issues rippling through not just the names that have higher valuations or have high flyers, but some of these core enterprise tech names, vm is another onedown almost 8 in this trade if you look at all the major averages, were now lower not only for the week, for the quarter, but also over the last three months utilities and real estate are the two names within the s p sector universe that are holding up gold rowan is continuing to rally. Thats broken above the 1450 market, at 1457 right now. Heres the thing about the u. S. china trade situation and i say this as somebody who covers National Security and covers defense the u. S. Is also today officially pulling out of that inf treaty with russia the implications there, its not just about russia, its also about the fact that weve had this bilateral trade deal or bilateral Nuclear Arms Control deal that china has not been subject to so that is in focus there. We have got troops that are poised to be getting pulled out of afghanistan right now, as well the reason is because we have this defense budget, we have this Defense Strategy that is focusing on peertopeer threats and strategic competitor threats. And china is a key part of that. Were raising defense spending that just passed through the senate yesterday as well, to focus on that. So we can talk about trade and we can talk about tariffs. But i think you have to see the Bigger Picture here, and that is that the Trump Administration has been hunkering down for a much longer haul conflict, i know thats kind of a strong word to use, faceoff with china overall, and i think tariffs are just a piece of that and its something investors need to take note of but, how . Because the doctrines not clear, right instability we were just talking about powell kind of being inconsistent the Trump Administration has been amazing in its inconsistent in the way it surprised the market yesterday with this latest tariff announcement so if that is what investors should be factoring in, it would be nice if someone would explain, big picture, exactly what the trajectory is yeah, but we also just got that fed cut earlier in the week you also had these democratic president ial debates that quite frankly, if youre the president , youre probably stepping back and going, uh, you know, whos really going to run against me and what is this going to look like some of those people on stage were almost as hawkish if not more hawkish than the president on china and i think the way this administration is looking at it is its a winwin. Either you get this trade deal that changes things structurally or you have tariffs in place that continue to push Business Investment and jobs outside of china over the longterm big questions, obviously, with the vix now above 20 and the dow down 315 part of the tech pressure this morning is coming out of washington in the New York Times oped, peter thiel again questioning googles work in and for china, while the journal says that facebooks acquisitions are being investigated by the ftc. All of this as amazons Cloud Business faces some new scrutiny from the department of defense what does this mean for the stocks joining us today, rbcs mark mahaney and mizuhos james lee mark, thats a lot it sort of flies in the face of the quarter so far, which has been about reacceleration and revenue, right yeah. Well, you just threw a lot by me so let me start off here, i think peter thiel is absolutely right with his comments, but theyre more political in nature about google i think the ftc and facebook, i dont know whats going to be looked at there. I find it extremely unlikely that facebook will be required to unwind an acquisition that it did seven years ago. That would be instagram or whatsapp five years ago. I think that would be extremely unlikely, almost entirely unprecedented. And then, what i find really interesting for both the stock and also for the politics is whats happening with the dod and amazon here. I think its very hard to see why amazon and also probably microsoft wouldnt win the dod contract if youre going to outsource cloud commuting by the pentagon to one company, if youre only going to do it to one company, i cant imagine you can do it to anybody other than amazon. Theyre the clear leader in cloud commuting, and maybe you bring in microsoft as a backup, a second source. You certainly wouldnt bring in some of the other companies that have been mentioned, like ibm and oracle i find that very unusual and frankly a little bit disturbing. Thats all ive got to say on that mark, thats a key point. And you have to look at the companies that have to handle these top security rankings, that the pentagon is even looking for. That being said, if you look at how, i guess, cloud economics have played out, for example, in the business community, we have seen more Companies Shifting more of their, you know, cloud to a variety of providers, and also doing things like hybrid cloud. Should the government be thinking about those policies . Oh, absolutely. Look, theres a lot of evolution thats going on in cloud now and actually, one of the most interesting from a Product Technology perspective is the aspect of Machine Learning and artificial intelligence. Its part of the offering, whats making awss offering and azures offering much more robust its just hard to see a player beyond those three and frankly, theres a clear 800pound gorilla and a 600pound gorilla in the space with the best capabilities and tractions in the market, thats aws and azure and it still looks to us that google cloud is a pretty distant number three player i assume all of this has been evaluated by the pentagon, so its a little odd theyre going back to reevaluate the situation. What are the internet aspects you see with this increasingly tense situation between the u. S. And china . Absolutely. If you look at peter thiels commentary, it really underscores the relationship between the u. S. And china its more about trade tensions, more about the Technology Battle of the two countries but i think china failed to realize that u. S. Actually controls the vast majority of the technology here. And especially in the Semiconductor Technology i also cover chinese engine and names. I talked to a lot of engine executives what theyre concerned is, what happened to huawei what happened to Chinese Internet Companies and it would have a detrimental effect for example, i talked to an executive recently they said, if bewe were targeted by u. S. , our operation would screech to a halt, meaning we cant even get excel files or microsoft word because we cannot get the licensing from microsoft specifically i think china has to tread very carefully as a result. But certainly, i think whats underscored here is really battle of the technology ip between u. S. And china james, do you think given the fact that trade tensions are ratcheting up the way they are, that its safe to say that huawei stays on this entity list here in the u. S. And that maybe some of the exception contracts that have been discussed go away thats a very good question and that question is a little bit above my pay grade certainly, i think the u. S. Government is reevaluating our huawei relationship, where this National Security threat, certainly, there will be some tlamgs limitation have a lot of in the u. S. And dont necessarily do a lot of business with u. S. Specifically same thing for the u. S. Internet company. They dont hav in china. And since theyre selling product into china specifically, so therefore, i think the sensitivity impact of the u. S. Internet names and China Internet names are fairly small at this point. Mark, does are we back to drawing firm lines between software and hardware, meaning trying to avoid those pockets that are heavily leveraged to china. I dont know. For the next couple of weeks or until we get further long, i think these sectors are getting buffeted by whats happening in these china talks. So you see nothing different . No, not really. No were up, were down, were up, were down, it depends on the state of the trade negotiations. I want to get back to something that carl said earlier, which i thought was really interesting if we pull back and think about what happened last night to pinterest. You put it together with all the other internet Advertising Companies that have reported, every single major internal advertising platform company, google, facebook, snap, twitter, pinterest, amazon even for its advertising business, all accelerated in the june quarter. I think were at a really interesting Inflection Point here why would there have been that kind of acceleration i think youre seeing much greater video usage and deployment of video advertisement. Pinterest talked about that. Much greater deployment of Machine Learning facebook talked about that and i think youre starting to see a real inflection down in terms of linear tv watchers, paid tv subscribers, meeting up against these really rising cpms across tv for tv ad budgets i think were starting to really see a tipping over of tv ad budgets online i think thats what the june Quarter Results just told us between the cordcutting figures out of the Telecom Cable companies and some of these revenue accelerations, its thats been one of the big stories of the quarter so far. Mark james, thanks for the help. Well see you soon thanks, carl. Great meantime, pinterest, we just mentioned, going the other way this morning, surging on strong results. Julia boorstin is in los angeles with more on that. Julia . Well, morgan, for quarters now, weve been talking about concerns that pinterest, twitter, and snap were all hitting a wall when it came to their user growth. But now all three of those companies have reported that theyre revving up both growth of users and of revenue as tweaks theyre making to their platforms are showing positive results. Now, pinterest up over 20 today after beating expectations across the board, showing a 13 user growth, even in the more saturated u. S. Market, as well as raising its guidance. The company says its investment and making it easier to shop and enabeling brands to allow how their brands driving purchases are paying off along with pinterest, snap, and twitter have also been talking about how improvements to their platforms are yielding results and boosting their stocks. Snap with its new augmented reality tools, games, and expanded content offerings twitter cleaning up spam off the platform and making it easier to follow conversations and pinterest and snap in particular may be benefiting from facebooks regulatory challenges pinterest ceo Ben Silverman on the call last night, saying he takes privacy seriously and hes lael focus on giving consumers control about how they share, while snap Ceo Evan Spiegel in their call stressed his focus on the safety and the security of the snap community d. A. Davidson analyst tom forte saying, quote, we believe increasing global regulatory scrutiny on facebook and google gives pinterest an opportunity to take market share and potentially chip away at the Digital Marketing duopoly that facebook and google represent. Its worth noting that while facebook and google have been dealing with so much regulatory scrutiny over the past couple of quarters, both pinterest and snap have been able to add more advertisers as well as get their existing advertisers to spend more back over to you thank you, julia. And when we return, door dash buying caviar from square door dash ceo tony xu joinuss in pan exclusive on the other side of this break side of this break stay with usl in one place. Because when its decision time. You need decision tech. Only from fidelity. Well, door dash acquiring Food Delivery Service caviar from square for 410 million this as the food delivery space continues to be more and more crowded or, i guess, a little less now joining us in a cnbc exclusive, live from San Francisco is doordash ceo, tony xu. Tony, good morning good morning, jon how are you . Im doing well. I hope you are too so the knock on the food Delivery Business these days, one of them, is that its so heavily subsidized by vc money that profitability is far out in the future amazon got out, postmates, according to some rumblings, considering a sale square is selling to you why is this smart consolidation and not the smart money getting out . Well, weve been long admirers of caviar for a long time if you can build the business for merchants well, you can build a great business for customers and a profitable one to us, the caviar acquisition compliments us in three ways first, it adds to our industryleading selection we have 300,000 restaurants on the doordash platform today. And caviars highly curated group of premium restaurants really adds to every occasion that customers will want to shop second, its a great compliment to the cities that were in. Doordash is live in 4,000 cities across the u. S. And canada while it doesnt add any new markets, caviars presence in the urban cores is phenomenal, especially as it serves brands like emily in new york or honey butter Fried Chicken in chicago. And finally, ive been a huge fan of the caviar team ever since their founding so im thrilled that well get to add some great new teammates very soon. So do you keep caviar alive as a premium brand within doordash or do you fold it in and why on either end . Well, were still going to were waiting to figure that out. Right now, were anticipating that the close of the deal will happen some time in 2019 after that, well figure it out with the caviar team to make sure that the best of both worlds will be brought to all the customers, merchants with and drivers on the familiplatfom tony, we keep hearing about all of this heavy spending across the industry, because there is so much competition on things like free delivery and promotions is doordash profitable doordash has always been increasing its profitability, ever since its founding. Profitability has improved every single quarter while doordash is the Fastest Growing service in the country today, we acquire most of our customers organically. And that strong robust growth with industryleading retention is what has allowed us to keep improving profitability over time so we had you on, tony, in february, and i told you that i wasnt comfortable with this whole tipping system that you guys have, that as somebody who was paying, that i didnt like the idea that the full amount of my actual tip wasnt going to the dlooirivers you heard that from a lot more people in the past couple of weeks and changed the policy but you said Something Interesting back in february, you said that you had tested this beforehand, the drivers liked the system that you had better, that the service was better under that system, and that things were working well. So why did you change it if it was so good . Well, you know, this problem of how we figure out, you know, how to make the system work for all audiences, consumers, merchants, and dashers is a very difficult one for the entire industry and while it is true that, you know, all of our models at doordash have always worked for dashers, we have to make sure we strike the right balance for everyone so this is a constant evolution. Weve been working on the pay model every single quarter we will continue to work on it were talking about the livelihoods of dashers, were talking about millions of consumers, and were talking about hundreds of thousands of merchants who really care about the quality at which their products get delivered so we have to take the time and we will continue to get it right. All right tony xu, looking forward to seeing exactly how that model works out. We all want to make sure that the drivers feel the love. Tony xu, thank you thanks. After the break, our jane wells is in anchorage, alaska, with an update on closing the gap in the worlds Pilot Shortage jane, whats coming up next . Reporter guys, the world needs pilots were the women. Im at one of the top flight schools in the country, run by a woman in that plane, taking off right now. Were outside the plane, were inside the plane, and when we come back, what american, united and delta are doing to hire pilots generally and women in particular when we come back. Welcome back to squawk alley. Lets head out to anchorage, alaska, with more on how airlines are closing the gap in the sky. Jane hey, morgan boeing estimates were going to need 800,000 pilots in the next 20 years, a quarter of them here in the u. S. , and some of them are trained by a woman at one of the top flight schools in the country. Jamie patterson simms of sky trek, alaska, flight training. Jamie, if you can hear me, hows it flying up there today the flying is awesome, jane im really enjoying it i love it up here, flying up in action, and its a gorgeous day and just enjoying the beautiful sunshine up here reporter well, im jealous folks, getting your pilots license can cost about ten grand. She has a wait list of eight to ten months and she told me that 70 of her students are men. The male students who come here really want to fly with me. And so they know its like the brain surgeon, do you want to be the do you want to be the person who is their first patient or do you want them to be the brain surgery that has done 500 brain surgeries i didnt think anything of it my family is filled with strong women and ive raised by strong women and that made sense to me. Reporter jessie hopes to become a Successful Pilot and take advantage of the shortage only about 6 of their pilot force is female and that surprises beverly bass, the first woman to become a captain at american, made famous for landing a plane in canada on 9 11 theyre not any better or worse than men, but they can be different. I have heard that women have a tendency to process an abnormal situation differently, its just our makeup and i think one of the things that we are known to be very good at is multitasking. I mean, i know that i can cook dinner, feed a baby, and talk on the telephone all at the same tim time bassco founded the International Society of Women Airline Pilots which hands out scholarships united american, delta all tell us they have special recruiting and Financial Aid programs to get women in the cockpit jamie, you say training in alaska can really help a resume. How come well, training in alaska, because we have to always think on the fly, were always the weather is extremely challenging flying up here in alaska and so were always trying to make these decisions, these quick decisions about the weather and about conditions and its always just very challenging landing on these remote strips, landing on gravel, on dirt. And its always challenging to make sure that were safe at all times to make sure that were we can control the airplanes at all times, especially making those quick decisions. The weather is always crazy. There she is, right overhead. Jamie, thank you much. Guys, she is a gold seal certified Flight Instructor by the faa and well be back later with more. Back to you. Talk about multitasking, jane just a quick question for you. Certainly, this has been an issue and a focus on the commercial side. Also on the military side, in terms of getting more female pilots in the cockpit. But how are companies, i guess, incentivizing and targeting women to get more of them flying all three of the big Airlines Tell Us they have special scholarships to help them get through the flight training. They have recruiting i mean, they have like girls days, aviation girls days where they get them exposed to these sorts of things, all to try to get at the high school, Junior High School level, girls even thinking about being a pilot, because they are hiring. There are so many opportunities and there is no gender pay gap it doesnt matter what you are it depends on what youre flying and how many hours you fly a month. That mandates what you get paid. Jane, you know how to make live television. That was really cool and a really important story for the industry reporter oh, it takes a team thank you. Absolutely, jane wells, jane, thanks it is a rough day abroad in europe, as you probably can guess. Stocks are down sharply in todays trade following the president s tweet on china tariffs. German dax on pace for the worst week of the year on one point, it was on track for the worst single day decline since the day after brexit, while a handful of financials didnt help rbs, all down sharply in todays trade europes broad market, stocks down more than 2 today. And as for us, guys, we bounced right off the 50day, were back to 2924. And for now, lets get to sue herrera with a news update sue . Indeed, i do. Thank you, john. Heres whats happening at this hour, everyone nato chief llenas stoltenberg says there will be a measured and responsible response from nato following a decision by the u. S. And russia to end a 32yearold intermediate range Nuclear Forces treaty. The honor treaty ceases to exist, because russia has deployed the ssc8 Missile System they can reach european cities with only minutes of warning time the swedish prosecutor calling for a six to tenmonth jail term for rapper asap rocky and two of his entourage for throwing a 19yearold man to the ground and kicking and punching him after an argument in stockholm and the grandfather of Robert Kennedy has died. The Kennedy Family confirming that death after reports that a person had been found unresponsunspon unresponsiunrespons unresponsive on thursday at the Kennedy Compound over a possible drug overdose. Saorise kennedy hill was 22 years old. Sue, thank you very much. When we come back, it is jobs friday, which means ed lazear is going to join rick for a special Santelli Exchange. A special sa telli exchange. Lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. A big day with trade and the jobs number. And that means its time for a special edition of the Santelli Exchange and that special edition always means a special guest its ed lazear, former chairman of the president s council of economic advisers, of course under george w. Bush ed, always a pleasure on employment friday. Lets start right out at the top. Epop, one of your favorites, workweek really shrinking. Why dont you give me your summary of all of the highlights of the report today. Well, this morning, rick, you said that you gave the jobs report a c or a cminus and i agree with you completely. Youve got things working in both directions. The great news is the wage growth is solid, quite high. If you look at the wage numbers, were talking close to 3. 5 on a year over year basis, given the currently growth that we saw this month so thats good news. The other good news is that the employmenttopopulation ratio, which i always look at, you know, thats the number i like the best, that ticked up half sorry, onehalf of a percentage point. So thats good, as well. On the down side, the big negative is there is the hours of work. And thats really important. Were down to 34. 3. Thats a tick again of 1 10 of an hour. Doesnt sound like a big deal, but amounts to about 400,000 jobs and when were at the top of the economy, we should be at about 34. 5, so 34. 3, not so great the other thing i would message is the threemonth job average, which is the number i always use, the threemonth job average is at 140. Thats down from about 225,000 last year. So, significant. Not terrible, again, still growing at a rate above population growth, so that doesnt say that were stagna stagnating, it doesnt say that the job market is falling apart. It just says that its not moving as rapidly as it was in the past you know, the most commonly used two words of late, Capital Spending and the gdp report, of course, showcased a couple of different dynamics, really strong consumption numbers. Some of the best in a while. It did have a 2 handle, but it was hurt by lack of Capital Investment and you can dig into that, cant you . Well, absolutely. If you look at the investment numbers, which obviously were not so great this time, actually, negative contributed negative 1 percentage point to growth, most of that was inventories. But you dont want to discount inventories. People always say, well, it was just inventories, it will come back actually, thats not true. There are a couple of reasons why inventories can decline. One is that they overshor is th anticipating weak demand in the future and theyre just not building their inventories. So, you dont want to just discount that completely i actually do worry about that a bit. In terms of the climate, the Capital Expenditure climate, everybody talking about the tariffs. Its not so much the tariffs, per se i hate to be trite, but i think it is about the uncertainty right now. People are trying to figure out whats going to happen before they make longterm Capital Investment decisions and i think thats weighing on the economy a bit. And in fact, you know, chairman powell, that was the one thing that he did feature when he was talking about his worries about the future you know, earlier on, we had bill simon, former president and ceo of walmart on, ed. And just so succinct, but his finish really shocked me after going over all the influence of tariff and where production comes and products come with regard to the inventory of walmart, he said that the impact of tariffs would actually be quite small. He didnt think it was that big of a deal. What do you say to somebody with so much knowledge, with supply chains and china in particular, to make a Statement Like that. So is it just all about uncertainty . I think it is, mostly, about uncertainty. Because as you said, the impact of tariffs, per se, is not all that great if you think about the tariffs, particularly on exports, and you ask, what does that do to our ability to export to china, you know, exports to china, its important, but its not a major part of our gdp. Even if that fell apart completely, it wouldnt be a big deal but for walmart to say it is a little more interesting, because theyre not talking about the export side, theyre talking about the import side. And essentially, what i think they are saying that they believe that when tariffs go up, prices that they are paying for their imports will fall corresponding to the tariffs, because the suppliers will basically eat most of it and that tends to be true in the short run. So i think thats probably why hes not so concerned, in the short run. In the long run, its a bigger problem. But in the short run, i think thats right ed, always a pleasure talking to you you know, you are one of the few economists where i think pretty much we can all understand and we thank you for that. Morgan, back to you thank you rick santelli, thank you now to a story weve been following here on squawk alley. The governments jedi cloud contract, the pentagon and newly installed defense secretary mark esper reexamining the process of rewarding and the guidelines of the controversial up to 10 billion winnertakesall cloud contract that following concerns from the president over mazon bid. This is leaving a Major Military priority now in loimbo, a contract that was expected to be awarded in the coming weeks after oracle lost its protests the dod saying, quote, secretary esper is committed to ensuring our war fighters have the best capabilities, including artificial intelligence, to remain the most lethal force in the world, while safeguarding taxpayer dollars also adding that no decision will be made on the program until he has completed his examination. Simo amazon, microsoft, the two companies that have been chosen toed by in this and oracle have not responded to cnbcs request for comments, bun it really does get back to the heart of how Important Technology and the adoption of these new technologies like cloud and the ability to do ai computing on the cloud are to our National Security of the future it also gets to, unfortunately, the president s opened himself up to appearances hes trying to hurt amazon for political purposes it is the biggest Cloud Company in the space microsoft is the second biggest, a couple of weeks ago, four republicans on the Armed Services committee in the house, which has oversight over this contract, said, please, dont delay it now you get, you know, a new leader over there and you get a delay. So thats what mark mahaney was talking about. Yeah. Well see well see when we return, survey monkey surging after strong earnings and an upgrade over at ubs. Ceo lurie joins us exclusively, next. Dont go anywhere. These folks, they dont have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again major averages did bounce around the 50day moving average, still, though in the red. S p, 29. 21, as we continue to look at probably the worst week of the year for all the major indices. Courtney reagan is back here at post 9, covering both retail and the stock markets. Its been a busy day, hasnt it it looks like were bouncing off the lows here a little bit, but not too far off. I think the sentiment is really very negative right now. Theres momentum to the downside theres not a lot of reasons to be buyers right now with all of the uncertainty that we have here so some of the Growth Stocks that have really been outperforming value by about 5 this year could be the names in the sectors that are going to be in trouble Going Forward with the tariffs. Were talking about tech and consumer discretionary, so we can watch this leadership reversal start to pick up some steam. Tech already on track for the worst week of the year dow, s p, nasdaq, also on track for the worst week of the year, as you point out and we had the fed meeting this week, too. So there could be some worries that the fed is not going to be there to backstop us, like they have been in the past. Now weve got these tariffs. Surprised . I dont think the market clearly was thinking that those were coming, not at least by the reaction that weve seen in the last 24 hours or so. It does certainly seem like the president is forcing the fed chairs hand in this especially if you do start to see more softening data in the industrial space, in manufacturing, and see that leak out to other areas of the economy. Consumer, Retail Stocks have been hammered on this as well, right . Yeah, really. Retail stocks hit really hard, which makes sense. A lot of consumer products, apparel, shoes, toys, those things had sort of been spared from a lot of the tariffs so far, but not anymore if youre going to put a tariff, 10 , 25 , whatever it is right now its 10, but on the remaining 300 billion of goods, those are going to be those big categories what is interesting, and we saw this selloff, as you point out in Retail Stocks, is it seems a little baby out with the bottom water to me, because not all of these companies are going to have equal exposure to china so youre seeing some names claw back a little bit today. A name like tapestry that owns coach and kate spade theyve been pretty clear about the fact that they have lessened their exposure to china. So maybe cooler heads have prevailed there with some of the investors and now that stock is higher today after selling off about 5 yesterday, when you start to realize, okay, not all of this will be equal payment. C. H. I. P. Behip berg of levi theyve brought their sourcing into the low Single Digits ubs has this note. Who could be best positioned, nike, lulu, vfc . And who could be most challenged gap, kohls, macys, right makes sense. Yes, and if you think about, its so interesting, too ive also heard a conflicting idea about a retailer like a macys or a kohls theyre a retailer that sell a bunch of brands. If they sell under armour or nike, theres two players involved in seeing those higher costs. Its under armour sees the higher costs and they sell it into kohls. So maybe they split that pain and the player doesnt see it as clearly when you have two players that can absorb that cost they have to look at this on a categorybycategory, and productbyproduct basis and a lot of these retailers have said, were not going to raise pricesnsitive, very price elastic and consumers will notice that price change and not buy, maybe thats not the product to me that increase on. Gopro managed to move production to mexico theyre out with a statement saying that u. S. Bound cameras, they expect to be in production in mexico in the second half of 2019, have a lot of retailers, you think, managed to position themselves and actually source outside of china ahead of the Holiday Season because clearly, this was potentially going to be an issue. And to be honest, this has been something that retailers have been working on for years and years. Definitely accelerating, i would say, in the last year, where possible some of these factories we know, also have locations in other countries, and so theyre sort of helping retailers almost under the veil shift things over to their other locations so i think everyones been trying, as quickly as they can theyre not going to give us all of the details on that, i think, on purpose you dont want to point out the pain if you dont have and if were really honest, if you isolate a product like washing machines and the tariffs that we saw there, there was pain initially, and then it subsided you know what, people were still buying them. So maybe this is going to be a little bit more of a reaction than ultimately the consumer feels, lets hope, because we know it could be a definite bleed through to Economic Growth i think thats a key point. All of the uncertainty around trade and tariffs as it continues to prolong, the certainty is, you start to shift more and more your supply chain outside of china and think about different ways to move goods around the world, retail being one example. Courtney reagan, thanks for joining us today ceo of survey monkey will join us as well, next and that stocks surge on earnings, its up 11. 5 . Earnings, its up 11. 5 . Stay with us thats a win. But its not the only reason i switched. Geicos a company i can trust, with over 75 years of great savings and service. Now thats a winwin. Switch to geico. Its a winwin. We like drip coffee, layovers switch to geico. And waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Heres a look at whats coming up the Halftime Report what this week means for the rest of the summer in stocks our Investment Committee giving their playbooks for the next month. Shares of square getting smashed today. Is anyone on our desk buying that dip well set you up for big earnings next week, including disney, shake shack, uber and roku well see you in about ten sounds good lets look at shares of survey monkey surging in todays trade up almost 12 . Joining us now croeo zander lur with an exclusive. Good morning. Good morning, guys. So theres something going on here in tech with the experience ecosystem, it seems to me. Youve got use that lets customers see what the experience is for people using their apps and services. Pager duty is alerting the right people when something goes wrong with a site. Dinah trades is monitoring the performance of apps. How is this changing the way tech works and adapting when things go wrong . John, thanks for the question y youre right the category for experience management is massive. Companies today are differentiating their products and services by their ability to be customer centric. Everybody has access to software, you can buy key words on google and target on facebook but the ability to be sensitive to what your customers care about want is critical usability is a solution we acquired this year they have a customer in klm who was able to improve their app experience to a 2. 4 rating its about can your managers, marketers understand the feedback, listen and take action thats what survey software can do. We know about competition to what extent are you going head to head with the likes of adobe and sales force, even as you seek to coexist and thrive on their platforms we dont compete with them at all. Frankly, there are hundreds of thousands of sales force customers who need to buy Enterprise Survey software we exist in the sales force ecosystem and try to help customers get better data from what their customers care about. Theyre big systems of record, they provide you a lot of Operational Data where survey monkey competes and thrives is delivering for customers how am i doing, what can we improve upon thats where were selling a solution into the sales force ecosystem and partner with sales force in a productive way. Part of the reason they bought into our i. P. O. Last year. I know youre focussed on enterprises and businesses would you ever get into for example gathering data and surveys for politics its a good question. We really took a strategic imperative about two and a half three years ago to step up our enterprise game. This is a company thats thrived going direct to end users and built up a paid Customer Base of almost 700,000 people over the last three years we elevated our game today it represents 20 f on our business were now growing 20 year over year we use politics in a fun way to help get a beat on whats going on in the world. Like we ask questions about are you interesting in buying an electric car, what do you think of impossible burger we also ask questions of the two and a half to three Million People on our platform every day, who might you vote for, what are important issues to you and that gives us a read on where americans are thinking. I know msnbc news we appreciate your participation in that the teams product and enterprise right now, particular area of growth, how much are you going to have to spend on continuing to ramp up that group in order to support teams . Theres some concerns about cash flow and how much that investment is going to be. Can you lay out the plan for that yeah, so we set about on our i. P. O. Last year and told investors our plan to make this business more valuable the two key driving factors, first is to elevate our sales motion to sell directly to the enterprise that has been successful we doubled year over year 100 revenue. We now have 5,000 customers, up 60 . We now compete in that ecosystem. Consumers love our product and were selling into the organization with a talented sales team the teams product is the collaborative selfserve product. Theres been so much account sharing on survey monkey over the years and the security environment were asking people to pay for their own seat and that has driven a healthy paid user growth. So we see continued growth in those two areas. Weve accelerated growth 20 year over year but we do it in a disciplined way. We were still able to deliver 13 million, and were just not a company thats going to grow at all cost we want healthy growth and disciplined cash flow. The stock close to alltime highs, up better than 12 so far today. Zander lurie, ceo survey monkey thanks for being with us. Thanks for having me. Well wait and see how much of the dip will get bought, down 219, 220, back to 2925 back in three minutes. I know this may come as a shock to many of you, but as of today i will be streaming exclusively on mixer i know i know its exciting. Thats ninja, the biggest name in fortnite, one of twitchs most popular persona y personalties and hes leaving that platform to stream excl exclusively on microsofts mixer. His debut set for about an hour. To bring it full circle after our jedi conversation. Over the weekend well have berkshire to play with and disney and uber next week. Have a good weekend. Well see you monday lets get to the judge. Thanks im scott wapner front and center this hour the week that rocked investors, the president s stunner on tariffs and the outlook for the economy means for your money its noon, this is the Halftime Report. A wild week on wall street, what do investors do from here were hitting apple and faangs something is happening in th global bond market thats never happened before. What it means for your poe portfolio. Another big week