Transcripts For CNBC Closing Bell 20240712

Fears. And companies from roku to Western Digital have been tempering expectations thats hurt sentiment a bit. Gold is at a record high nasdaq set for another record close, comfortably now up a full 1 . Continuing that breathtaking rally, coming up on todays show, the bet on pets. The ceo of the company that makes medicine for pets and l e livestock. And more earnings rolling in today after the bell, including uber, dropbox and t mobile also a first on cnbc interview with mike seifeieve seavert eamon javers has the latest on the stimulus stand offin washington, and phil lebeau is watching the airlines. Start us off with the broader market, mike. Today is a good example of how we are now in a market moment where the threshold for rallies on news is much lower than the threshold for a sell out. Nertsd, the market takes most good news and kind of shrugs off the less good news we got the better than expected but still kind of ugly jobless claims number. That palmback went away. We were flat and then we got the afternoon rally sparked along with the lifting of the restrictions on foreign travel apple going north on its own kind of momentum, facebook as well this is year to date we have closed a bunch of these gaps left on the chart from when the market really started to fall apart after that initial shock. So were almost there, within 2 of the recent high it is now, you can quibble with a lot of things. The average stock is lagging, its a pretty narrow move, volume is not great, but a quiet relevineless grind higher. You dont want to dismiss the action just because there are things that dont look like theyre showing a whole lot of excitement or buying urgency take a look at the split here between the economy and the he market for stuff versus services stuff is working better. Industrials, appliances, car, hom homes, all that stuff. You see the clear outperformance this proxy for services and reopening. Its entertainment and leer yurt, as well as media, and that has persisted right now. You see a very, very big performance gap. Its not as if theyre necessarily making new lows, but it shows a big split so well see if this gap gets bridged, if it has to get bridged or not, but i think its a reminder its not just the big tech companyies. One big test will come tomorrow, mike we got the jobless claims, better than expected they were still awful and theres still millions of americans filing new claims and on continuing claims the expectation tomorrow is all over the map some economists are looking for a decline. Whats the market going to do with it . Theres no way to necessarily know what the market is pricing in, because you have a massive span of those estimates. Month to month, almost impossible to make sense of the massive flow in and out of the labor force. That being said. Im interested to say how this market is rallies into this number, and normally it trying to stay neutral. The dollar has stretch treasury yields very compressed. It will seem as if were springloaded to get . Kind of reaction if theres a big upside surprise on jobs, or maybe the market is pricing in correctly, and were not going to get a big comeback. It seems interesting that we are perched at these extreme levels just as were getting what could be a decisive data point. Gold 12re67d, silver up 7 today, or 54 since the star of this quarter more to discuss with mike later in the show. Grinding on in washington today is two key players weighed in on the negotiations eamon javers has the latest. Hi, eamon. Reporter yeah, wilfred, grinding on is a good way to put it were going to have one of those at 5 00 p. M. Today thats when well see leaders meeting up on capitol hill with representatives from the white house and the administration to try to hammer out a deal here ahead of the selfimposed deadline of tomorrow not at all clear theyll get a de deal two top leaders were on cnbc both on cnbc, laying out the philosophical disagreement. Economists tell us, spend the money, investment the money for those who need it the most they will spend it it will be a stimulus, or at least a stabilization, and thats a good thing. The argument over how much is appropriate at this particular juncture, as we struggle to get the economy back on its feet and get the country in a place where it can sustain it of until we get a vaccine. Reporter almost everybody in this debate agrees there needs to be a new bill with some new spending the question is how much and what type. The president is facing a tough reelection in november he would like to have some sort of resolution, he has said today as hes traveling the country, he might move forward with an executive order or series of executive order as soon as tomorrow, but legally and practically its not entirely clear exactly what his team can do in terms of writing that executive order. It will survive a legal challenge. Well see if the president can pull a rabbit out of his hat here, and well monitor that meeting at 5 00 today. Its so interesting a lot of questions about what an executive order could achieve, but while theres this finger pointing between the two sides, which i certainly came across earlier today, on whether the threat of an executive order imminent threat could shake both sides into action. Perhaps thats what it might achieve. I think thats what the white house is betting on, right this sort of speak softly and carry a big stick, and this is the big stick here i dont think that democrats on the hill take it as seriously as the white house wants them to. I think theyre looking at it and realize theres some significant legal problems on that, and the president might not think he has the authority, so maybe both sides are simply talking past em other the airlines are moving higher after the u. S. Lifted an International Travel advisory. Fe phil lebeau has the details. Back in march the state department put out these levels from 1 is fine, to 4 you shouldnt be making this trip. Its been at a 4 since march 19th for around the world. They are now lifting that. Theyll have individual ratings in specific countries. It still may be theyre going to say, look, thats a level 4, but other areas could be a level 1 this is the beginning of perhaps easing International Travel restrictions that are out there, easing the market to get backs into the fact that we will eventually see people flying internationally again. What is moving the stocks is the latest on this jobs relief bill or the talk of it going into whatever stimulus package is passed this would help out the airlines for another six months so let me explain exactly what youre going to see. This is expected increasingly by people in the industry to go tluf that would be 25 brill on, not 25 million that would mean no layoffs through march. Remember, theyre already geren tees no layoffs through the end of october the argument for another package is, one it would prevent costly retraining a number of pilots arent working, they wont be able to keep up with their certification. It will ensure service to all the smaller cities, and fen if the Airlines Sees an nick in demand, theyre really to ramp up its just a matter of getting the planes ready to go the problem is demand. It still remains very weak, down anywhere between 72 and 75 compare that with where we were precovid19, which was up around 2. 3, 2. 4 Million People flying every day that demand has not changed. Nonetheless, you take the airlines stocks, they have all moved up this week, because at least theres a floor. With this package they could have the guarantee of the jobs being paid for through march the belief is this 25 billion will go through. A lot of other industries would like that money. And they are talking about that, sara what that it should go to not just them . Well, yeah. Other industries are say, why should the airlines get this why should shouldnt there be one for a specific industry . Yeah, retail. Yeah, thats definitely happening in washington. Phil lebeau, thank you. Up next, betting the farm. Shares have held up as people continue to invest in the health of their animals friends thats right after this break. Youre watching closing bell on cnbc. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Wevwelcome to campding a way tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Shares of zoetis hitting highs today. The Livestock Sales did decline on food supply change disruptions. That was offset by a strong showing in pet revenue the stock is up 1 mounta. 5 . Kristin, great to have you here. Weve heard and seen that people at home, taking care of their pets, adopting new pets, was that the story here behind your quarter . Thanks for having me. Good to see you again. As you know, zoetis is the world leader in animal health. Were hoping for and guiding to. Our business is about equally split between Companion Animal and livestock as well as the u. S. And xu. S the story of the day was indeed the growth of our pet care business, so really Strong Performance that certainly beat expectation. You know, people are home with their pets, theyre adopting more pets, and theyre investing in more. Theyre noticing more about their pets we sea very strong growth overall in pet care. Is that a onetime phenomenon or something you see sustainable as we change or habits and lifestyles beyond states opening. The growth in pet care has been going on for a while. There was similar growth in the mid single digits, call it 5 to 6 , but at zoetis weve been growing faster than that for a while. Theres pretty strong fundamental Growth Drivers you know, as people spend more time with their pets, theyre investing more in them we were quite excited to launch a number of Innovative Products over the last few years, certainly in the quarter, the big news was a trio, which combines three products into one, and we saw growth in that product, as well as the entire franchise, which grew for 28 in the quarter, but the other big driver for us in pet care is the dermatology portfolio. The itchy dogs i used to have, we have two products, which also grew in the quarter. We do see this as a continued strength, the humanization of pets and growth of our portfolio. Kristin, on the flip side, you saw some declines in the livestock part of the business what drove that . If you look at the livestock side, about 60 is outside of the United States. That actually grew 4 operationally. We have seen challenges in livestock overall, especially in the United States. There are two key drivers to that in the quarter. The first is the movement from, you know, dining out, travel, to dining in. People changed their consumption pattern. The supply chain had trouble, as you probably reported on, adjusting to that. The second factor was also just t the capacity issues, and change in crosscapacity has a Significant Impact on many of our customers and producers, as those supply chains were pretty efficient. We do see probably continued challenges in u. S. Livestock, as you look into the end of this year, particularly on the cattle side, where it takes them longer to rye act poultry can react a little further, but the key message for us is the diversification of our portfolio, both u. S. , xu. S. , across species, and even challenges, the ability of our pet care to drive our topline growth yeah. I was looking at the international results. Theres quite a divergence there. Strong growth in places like cha china, but weak in latin america. Is it tracking the virus china has been an incredibly strong performer part of that is really driven by african swine fever last year, which really decimated the swine population in china. So what youre seeing is the rebuilding of that herd. As they do that, to ensure biosecurity, these are large interesting grated producers, you know, that really need our products and our expertise we saw Significant Growth there, but as well our companion portfolio. There was growth between livestock and pet care in china was about equal, but there continue to be challenges certainly in europe with covid in latin america youre seeing in the last few months a resurgence there in brazil, markets like that. But it comes back to the diversification of our portfolio, while there may be challenges, china continued to perform quite well, and saul a Strong Performance so, you know having multiple species, helps us absorb some of that. Do you ever worry about longterm threats and pressure in changes of regulation or Consumer Awareness and tastes toward some of the antibacterial and products you have . Were focused on making sure we provide the products and services that our consumers really want. Thats where weve been investing. I think people want to know more about where their food comes from, and much more engaged. At zoetis were focused on the continuum of care, first preventing disease, predicting health statuses, detecting and treating if you look at the key areas where were investing for growth is to make sure we address the needs of consumers and much of our customers, producers and veterinarians. So thats really investing in monoclonal antibodies for preventi prevention, as well as immunotherapies for cattle, which is very important to our customers, and diagnostics, which is bringing individual animal care, making sure you can tag an mall, know its health status, predict an mall if they get sick quickly speaking of monoclonal antibodies and vaccines, were all focused on covid19. Have you seen symptoms in pets like dogs and cats have you seen people thinking their pets have covid19 and treating them for it there have been a few isolated cases in the u. S. , as some people have talked about, some cats and dogs with he do have reference labs that can diagnose and test for that there have been a few isolated incidents in homes with people who are quite sick of a few individual cats or dogs getting infected it has not been a key trend overall, but as the world leader in vaccines and diagnosis tickets, were vessinvested in making sure wove the diagnostics, but our sense is its not been a big issue. I think pet owners are cognizant, but we dont see that right now as a big issue that the world is focused on. Kristin peck, thank you for joining us. Thanks for having me. By the way, just 37 minutes after the session were at session highs, up 170 points on the dow. The Company Behind announced bia g influx of cash those details after a short break. The covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Were committed to makingy college more affordable. , thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. Video games have seen returns as more people stay at home fortnite just received new funding. Hi, josh. Epic games did just raise a ton of monies, announcing a 1. 8 billion funding deal, valuing this company now at 17. 3 billion. This round includes a previous announced investment from sony, additional Investment Partners including bailly gifford, funds and accounts managed by blackrock, fidelity, funds and accounts advised by t. Rowe price and david tepper the company is will known for the house party app. Guys, back to you. Quite the phenomenon. Josh, thanks while david tepper gets into video games, jeff bezos is getting into pop music amazon saying it signed a deal with lizzo remember, back in february, jeff bezos actually tweeted a photo with lizzo writing, i just took a dna test, it turns out im 100 lizzos biggest fan still ahead, were counting down to earnings or he was already negotiating the deal and preempting the promotion. That would be a long period of negotiations, though, but yes, either way, proving himself a for aen. We are counting you down a lot more, well have the numbers and reaction from mike seavert, and a quick check on bonds. Treasury yields mostly lower we have a weak dollar and strong stocks thats been it is theme, 0. 53 off the lows which were around 0. 5 you still get the picture. Its liquidity, the weak economic backdro backdrop of bug stocks and bonds well be right back. When the world gets complicated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. 30 minutes left to check in on the market action, as we stand up 0. 6 or padded a bit, about ten minutes ago nasdaq said for a record close lets look at some individual market movers. We mentioned have i i dont games earlier. Shares of nintendo reporting a fivefold increase in quarterly profit, driven by demand for animal crossing new hidesens shares are up 5 also shares of fastly, after the ceo disclosed that tiktok was its biggest customer, leaving investors concerned about the exposure to the appear that the Trump Administration is considering banning. Lets get a cnbc news update hello, everyone. Michigan teachers holding a rally in that States Capital to protest inperson classes which schools reopen this fall, also calling for more funding for families dealing with job losses and the threat of eviction new Research Suggests asymptomatic covid19 patients shed just as much of the virus as those with the symptoms the experts say more research is need needed. In turkey, if you think your morning commute was rough . Tack a like at that. Thats a very lucky man, narrowly getting run over by a bus. He jumps into traffic and then get back out of the root police have not said if the it doesnt like the safest of bus stops in the first place. Very true maybe its not a bus stop. Or maybe thats just the way it is. After the break, wee ask the chair of the fdic is different during the recession versus the financial crisis and shares of godaddy, and hell discuss the results. First up is this exquisite bowl of french onion dip. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Welcome back 24 minutes left of trade as the u. S. Approaches 5 million total coronavirus cases, lets look at some rising numbers to watch kansas, idaho and rhode island rapidly adding cases overall, though, these states still have dramatically lowercase counts and death rates than hot spots like texas and florida, which are moving in the right direction. Morgan stanley highlighting astrazeneca, moderna and pfizer, the firm saying while unlikely the final readout for the vaccine may even be released before the general election. Barclays also positive on moderna, out with a note saying its vaccine as, quote, so a lot of the results of correlated theres hope that if it turns out to be effective, we are going to need that kind of supply Goldman Sachs now interesting. Its kind of a binary factor, but there would be significant up side. Strong, by the way at the moment set for another record close still ahead were just minutes away from ubers results plus well tell you how facebook is keeping it reels were back in a couple minutes what happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Lets get a check in on the Banking Sector joining us is the fdic chair good afternoon thank you for having me we have all seen the provisions set aside by banks soar to unprecedented levels i was wondering what your expectations for loan losses is i will say the banks have been very prudent to manage their Balance Sheet in a way they have over the past cup 8 quarters frankly the loan loss provision has been quite high, and i think thats a good think overall. Hopefully when we get the economy back to fully functioning were going to see a recovery to deal with those appropriately. So im encouraged they have been conservative on the side of provisioning, perhaps in some cases even more so than necessary, but i think it will pan out in the long run. How much does it rely on the Government Stimulus Program being extended some of the maul businesses in particular have been hit hard they are relying on government help some of it will depend on how quickly can we go back to whatever the new normal may look like, whenever that happens when we get to the point of being able to safely return to our officeses and a functioning society. Some of the hardest hit have been the Community Banks in terms of their own financial, i think the question is what kind of shape are their customers in all sorts of businesses, especially in the Services Sector around this country and whether we have yet to see the actual damage, because the stimulus has sort of helped keep thing afloat i would say the stimulus has worked, in sort of bridging the shock to the economy we have heard annex dotally that customers have been able to rely on the government payments throughout the nation. I would say that in the long run, you know, all these things have costs associated with them. And to the individuals and businesses is going to be decided by our elected representatives. The Community Banks that serve in Rural Communities particularly, that were hit by the last crisis and not fully recovered, those Funding Sources have been a life source for those communities. I would say if we can have a bit more help, that would be good for the economy, but at some pointi going to be enter tiff we get people back to work. We have seen is that a big threat to the smaller Community Banks whose spending on tech has massively lagged, for obvious reason, what the big banks and fin Tech Companies have spent on tech the past couple years thats a great question and will decide the future for Community Banks. In a speech last year . St. Louis, i said if the small banks do not adopt new delivery channels that their customers have come to expect but the trust is a lot of the small banks have been very agile the costs in some cases are prohibitive high, but weve done a number of things to make sure what the obstacles are for small banks. Frankly the survivability of banks in the understanding will be dependent on whether they can adapt, adapt quickly, and whether or not they can match as much as possible the delivery channels and services that the bigger brethren has. The fdic stands ready to help them in that transition. To make sure we can provide a path to Digital Adoption by the banks. If there was ever a silver lines in a crisis, i would say we didnt think we cant again even from the Agency Perspective to fullon side examination, and we certainly didnt now hoe small banks would react. So far everything has gone very seamlessly. On the topic of tech, as i glance at my stock screen, the big winner has paypal this year. Its up 90 or so. Is it starting to get to the space where some fin Tech Companies, particularly the most successful, bigger ones, have an unfair advantage, because theyre not regulated to the same degree . Are there any companies out there you would like to see fall under your regulatory purview . Because they essential are now banks. Well, you know, should never ask a regulator if they want more power the answer is always yes, right . But heres the bottom line, these companies frankly are able to provide the delivery channels that banks in many cases because of the way theyre regulated, are unable to do so. I think theres a fine line here instead of it being one versus it is other, i think we can have a cohesive system where theres a level of codependency that would allow banks to team up with Technology Companies and provide Technological Solutions that could be prohibitively expensive for basics to develop. From a regulatory perspective, its fair to say we need to get or Knowledge Base up so we can adequately supervise this coexisting relationships and our ability to understand how Technology Companies are dos these services and whether or not theyre appropriate for the banks to adopt i dont think its an i win you lose situation, i think it can be sim b symbiotic thank you, chairman, for joining us. Thank you for having me. We have 13 minutes late. Commercialfree coverage heading into the close mine santoli to break down these crucial moments, and we have testify any link with us as well good afternoon, stephanie. We spent the morning near the flat line and now the nasdaq is on track for a record close. The s p is less than 1 away from a record close. Mike santoli, what was the trigger midday or so that all allowed us to climb. Im not sure if it was a catalyst or mcguffin there was some action around that point when the state department lifted restrictions on foreign travel or the advisory on u. S. Citizen i think that mostly got the airlines moving, and the market in gen lately has force d as if people were very sensitive to try to get in. Now we have, you know 1. 5 away, you can tag the old high and maybe declare visibility torrie. I think people are coming into the pool of big numbers, so you see apple going vertical, for no real incremental reasons, so all of this stuff in the mix means the market has a bullish tone to it, and it is probably in the process of getting people a bit too complacent and looking for too much up side, but i dont know that were there yet. If you look at the list, stephanie, of the new highs today, theres a lot of usual suspects i mean, these are stocks that hit new highs almost every day is that what youre doing . Are you adding to winners . No, im trimming. Im sorry i sold facebook, but i still think it was the right thing to do. The problem is some of these companies that are going vertical, especially the faangs plus microsoft, they are huge percentages in my benchmark, so you have to own a lot of it if you think theyre still going to go up, you dont want to get caught and i certainly dont want to short them the economy data in the u. S. And in eurozone has been pretty good weve had expansion numbers in psis the isms, a leading indicator, is the highest level since 2018. In the eurozone, spain and italy up double digits the fiscal and monetary stimulus around the world is kicking in, its encouraging, but that said you cant have 1. 2 million weekly initial jobless claims, even though it was a better number. So i think you just have to hold on the liquidity is here to say, its not going away, and thats whats fueling the markets higher. A lot of people think the european numbers are more sustainable, because the virus is more in control leslie hey, sara, rocket companies, parent of quicken loans got off to a bit of a rocky start, but shares have been in the green for most of the day. It raised 1. 8 million underneath the range the ipo amount is about 40 below the low end of the ranges. Sources toll me the main reasons was for surrounding and it still a captures market share, thanks to historically low rates, but the state of consumer is uncertain, especially with no deal on the covid relief front guys a big relatively mature company, so i do think they had to be price sensitive, and it ju just, trying to peg for the business there isnt a really good direct comparable Public Company out there its not really a bank, so i think there was a bit of conservatism i think the in the months and quarters ahead i think the argument is over the stock right now, but one where the business might start to hit some headwinds, too. A look at the bank stocks and what they do when Interest Rates move in any direction. Leslie picker, thanks for that shares of Facebook Julia boorstin is watching it for us now up nearly 30 this year to a new alltime high today, gaining on enthusiasm for instagrams reels tool, which the company unveiled yesterday it has an agomented reality filters now rolling out. Instagram has an estimated 116 million monthly active users here in the u. S. , aiming to compete with tiktok investors are likely see reels as a key way for facebook to hold on to that lead. Mike, really interesting in terms of the product launch. It takes a while for tiktok to be acquired, if at all, facebook would benefit from that, but we mentioned it toward the top, it just shows that it can derail these stocks. It hasnt yet i wouldnt say it cant, but i think people are topping off the tank with some of the obvious names and so thats why its sort of selfreinforcing at a certain level. Im not surprised, especially for facebook, where theres a bit of a cover story, where things might be good on the product side of things or maybe theres a relative advantage if the tiktok deal doesnt happen, or Something Like that yeah, i dont know that theres a lot going on, except for grabbing the stuff thats worked well lately. Shares of car vana, theyre all jumping today. Phil has the story. Wow, sara, what a move by car vana today were going to show you a oneweek chart you may say didnt they post a wider than expected loss yes, they did. The expectations are high. Tight supply, strong demand. Thats a great combination for not only carvana, but all much the used car dealers and finally profit is expected to rise. Le not only carvana, but really all of the auto dealer stocks, the guys that focus on used, whether strictly online or carmax, lithia, theyre all moving higher. This is a hot market for used autos, and these guys are benefiti benefiting. Dee has a preview of uber. This is the First Quarter from uber where we will see the full crushing effect on ridesharing and likely the boost to food delivery the question is how much did uber eats benefits a few weeks we got preliminary results. Each booking is while rides likely declined where did that about a quarter of its workforce over the last few months guys . Thanks so much for that, stephanie, when it comes to u r uber, we all know theres clearly a temporary effect because of the coronavirus on ride sharing if and when it does come back, will it be profitable . Significantly profitable which is already a massive question for them to answer. Yeah, i think they can become profitable, but i thinkit will be eats that helps them. The online grocery, essentials, they have a lot of end marks in the eats business. If we get a rideshare turn, thats just more gravy, right . We definitely need an update about the exit rate. They told us on the 6th of jut, that they preannounced the numbers, and theyre off the charts but theyre hovl, down 75 in rides did you they see any improvement in rides thats the most important. But i think she did a very good job talking about outlining how theyll get to profitable. I felt better about the story after i heard him on the show. Taking the gains 25 over the last three months ahead of that report after thebell mike, weve got about two minutes left in the trading day. What are you seeing . Actually a bit lagging in terms of the internal reaction you see more volume in declining stocks than advancing stocks. Breadth has largely big marquee names. Take a look here at the qqq, the nasdaq 100 etf compared to the equalweighted its just sort of lifted off from the average stock so it doesnt mean, you know, this is a fatal flaw but it does show you its a bit of an unbalanced move actually going below 23 this is the slow and gradual release of fear and anxiety in the market event in the jobs number i would imagine that that does not call a big selloff, the investment x will probably give away further. Just under one minute left. Gold is up 1 mountain 25 . Silver up 7. 5 so the dollar flat today, but not rebounding s p 500 is up 0 po the 6 . The high was 191 so right near the session highs. Set for another record close a 4 the russell missing out today, just neff tiff quiter discretionary is out there as well. At the close, we have another record high. That will make it 32 record high closes for the nasdaq. Take a look at how we finished up the day a wall street, a strong session again this is a pretty strong week to for stocks overjaw on pace for our best week since june 5th s p 500 also got a gain of 0. 6 of is thanks in part to facebook, a big rise there for that company as far as where else the strength was, a number of sectors closing positive technology, consumer discretionary, utilities, kind of a mix staples and industrials also closed green nasdaq composite up for the seventh day in a row the russell 2000 index and small caps, though, it lagged all day, first down day in the last four. For the week, though, small caps up, still tracking for their best week since june as well we have a full afternoon, with the earnings coming tonight. Were going to talk to the t mobile ceo fresh off the earnings in just a few minutes, and talk about the demand hes seeing coming in from american consumers, the combination hes put in place First Quarter, well peek into that. Joins us, stephanie link is still with us. Well turn to you first, mike santoli as far as what drove us higher again today it was tech and a bit of defensive names as well. I still think the main context is all assets going up in those terms it seems ago if thats been the trade, the feedback loop, yes, better than expected jobless claims absolutely caused a bit of a dip buy in the morning right before the open, and then this other move. It all seems like excuses for a market to stretch the trend a bit further. So, if thats the dynamics that are operating, i think right now, again, it is getting a bit stretched. It was a bit of an unsteady kind of action in terms of benchly today. Apple going up 3. 5 on precisely no news on heavy volume, shows you it was a bit of a grab for the momentum names we are awaiting ubers earnings t mobile numbers are out revenue beat, the street was at 17. 6, earnings beat as well, nine cents a share versus seven cents. The 1. 11 million, a lot higher than the Company Guided when they preannounced. As far as the mix, which was a bit of a mystery here. The churn rate was 0. 8 according to t mobile, this past quarter they overtook at t in total branded customers to become americans number two wireless it was verizon, at t, and then t mobile theyre claiming now they are number two, overtaking at t, total post paid Customer Account increasing to 65. 1 million theyre saying additions will be expected between 1. 7 and 1. 9 million. Overall a pretty Strong Quarter showing, stephanie, in an industry thats not shown growth, because these stores cant be opened. Its hard to capture market share to offer new phones. They were able to add more than 200,000 phone additions and grow it looks like theyre starting to take sprint customers and transfer them over to the t mobile network, which was part of the plan. It was so good. They have done a lot of good things so far, combining two entities they have a whole rebranding strategy theyll offer sometime in august. Thats a catalyst for sure they have synergies that are probably conservative. Thats a catalyst, so i feel like theyre leading across the board. The only problem is the to be is so well love, but it will still go up if numbers go up thats the important part every the story. Uber, deidra bossa has the numbers. In one quarter they transformed to basically a Delivery Company rides revenue declined 67 year over year. That comes out to a loss per share of 1. 02 total revenue 2. 24 billion, shrinking by nearly 30 from a year ago, but beating the streets estimate. In the release kreismt fo reiterating confidence they will have profitability by the end of 2021, and guys this speaks to a theme we have seen from other companies this quarter thats the ability to pivot amid the pandemic ibe better, as i said, has transformed from a transportation, a rides company to a delivery one. But we are expecting a ruling on the ab5 california ruling, and a preliminary injunction that could force uber to treat its drivers as employees you stock is down by about 3 . Remember, guys, they may have made that shift, but ubereats delivery a long way from profitability. Tom white is able to join us tom, do you feel like the jump in revenues for eats officially offset the fall . First off, thanks for having me look, i think as far as the numbers tonight, you know, the top line trends were pretty well digested by the street i think its the ebitda line that people are focused on, and whether losses are on track to kind of narrow here over the course of the next few quarters. You know, the other issue that i think will be important is how a trend has been thus far in the third quarter. We know in ridesharing it was down around 75 in gross bookings for the quarter, but actually in the quarter, their core rideshares business was down less than 50. They talked about a letup or, you know, incremental pressure kind of mid july on kind of the recovery trend that they were seeing uber is not exactly a travel company, but more a transportation company, well be curious to hear whether the u. S. Trends may step back a bit the stock is down 2. 6 after hours. It does have a nice runup into earnings what do you think wall street cares more about at this point for so long it was were going to be profitable, but now is it more about the eats business i would say its more about the eats business. I mean, look, i think generally investors want to see a balanced approach to growth, and profitability, and, you know, theres a lot of noise impacting the Second Quarter numbers you guys gave a ton of disclosures. Its possible that depending on what metric you are focused on, you are happy or disappointed, i dont know if i would spend too much time thats make more open where the entire category is just enjoying this, but also in the rides business, we think the fact they have been able to maintain or consumers and drivers, thats going to make it easier for the ridesharing business to kind of grow s in early parts so, you know, we think theyre also competitively in a big and thereforewe think that can preserve cash, even presuming the business is down 75 for, you know, a year or so, which we dont think is particularly likely. Lets run through zillow numbers. A pretty impressive beat here. The forecast is for a lo lo lot of 650 million they are inspiring people to rethink that i homes and consider moving. He says were in a position to meet both of those trends. A 7 move higher in the afterhour trade weve talked about it a lot. Interesting that robert frank earlier today was talking about new york sales were disappointing, but zillow showing that you can beat expectations the stock is still rocketing higher 8. 5 , so even better than what was expected. For sure better than expected it looked like it would have been a tough setup, but a very tight housing market, where you now have this extra bit of urgency about it you know zillow almost being a default way of people keep track of things. It is working right now. Investors are not really concerned that this is just a phase apparently. It also happens to have the flashing digital numbers there dropbox earnings are out deidra has those shares are down about 5 . Eps up 22 cents, thats a five cents beat and this is the Second Straight Quarter of gap profitability revenue slidely above expectations annual recurring revenue, thats 17 , also year over year to 1. 93 billion, paying user 15 million. This is why the stop may be down coming in lighter than expected. Rpu is average revenue per user. The Company Announcing that the cfo is leaves. He had been there for a very long time, chief accounting officer is taking over tim regan, who has been at dropbox for almost four year he is going back to venture invests where his early career was. Thank you so much so many afterhours mover. Sele on up, dropbox down. Dropbox is up 30 year to date theres in debate. The microsoft competition, small Medium Business exposure, and on the Positive Side work from home. Total Addressable Market amongst 20 different players, but thats a pretty nice thing people think this is a takeover story. It would be interesting to hear the management transition. Pretty much everything was in line the arpu was pretty much in line so i think its the management shakeup, and well see what they say stephanie link, thank you very much. Always good to have you on board. Thank you. Lets focus in on t mobile shares are higher here after hours, up more than 2 as the Companies Reported earnings moments ago. Joining us to talk about them is t mobiles ceo welcome back nice to have you. Hi, sara. Thanks for having me you managed to surpass expectations, especially on the postpaid up users up. Well, todays a bit of a celebration as t mobile, as you said something historic happened. We surpassed at t to become the number two survivor, cementing or place as the undisputed Growth Company it wasnt just the merger. We delivered, to your point. 1. 2 million new customers this quarter, more than three times what at t and vising did combined so what were doing is resonating with customers. They love the idea they dont have to choose anymore between the best network and the best value. Thats what were offering, and theyre responding ive never seen so many mentions of Competitor Companies in an earnings release, yes you surpassed at t and theres other metrics in there as well how competitive is it out there for the industry with the capable providers also swooping in and adding to growth . Thats what the weve been about riding wrongs and taking on the entrenched competition. Thats why its so historic to have achieved this milestone this is a competitive industry, and were the ones that bring the competitive. We have always done that as the uncarrier whats different now with the new t mobile we have the resources and assets to do that sustainably in the future. We have more mid band spectrum than at t and verizon combined of course wee a little competitive. Mike, whether when will 5g play out and when will it make a meaningful difference . Well, its meant a lot to have carriers for the last couple years to your point consumers have been watching with one eyebrow raised i think 5g will become a topic that all consumers are looking for. That depends on handsets and networks rolling out our network has now reached 250 Million People with 5g thats incredible. Most people dont even have a handset, but were building in advance of the demand. Verizon pulled ahead of the pack and dictated Network Competition by being first with 4glte thats our advantage and were proving that with our numbers. Now were getting a look at how fast this combination is coming together with t mobile and sprint mike, give us a sense of how its going, whether you transferred over to the sprint 5g network what is happening with sprint customers . And how quickly are you realizing some of these synergies . A lot faster than most people expected one of the things i saidlast quarter, having a look under the cover of this new combined company, which we really couldnt do during the pendency of the deal, i was more confident than ever. Now you have seen us post the first results. We were way ahead that what people expected. Network integration is running a pace were now in six or seven major cities, and well be in thousands of cities as we exit in year with mid band spectrum from this merger that will deliver 3 hundred m a megabits per second. To take advantage of all that capacity just as far as the economic environment is concerned, you know, high numbers of unemployment, a lot of people are wondering what the sprint Customer Base actually looks like right now, mike and what youre expecting in terms of bad debt one of the things that makes us difficult is that dealing with people who have variable income, who have tighter budgets, tougher circumstances, thats a core competency of ours when covid came along and the economy turned more negative as a result, a lot of people across the country were stressed out. The difference is this is something that t mobile has always known how to deal with and handle we performed very well through this period. We took care of our customers. They appreciate that about us. I really believe that as this economy unfolds, and it could be a tougher time for many, t mobile will be here making a difference well be here for a value alternative. Thats a potential strength for us going forward. Would you consider diversi diversifying the model i would never rule out anything, but i tell you this, i like the pure play strategy. Its awfully hard for investors to figure out whats going on at verizon and at t, gauze theyre conglomerates. For us we have this el a gant pureplay with a superior service that translating into superior results i love that. That allows you to focus and execute. So many people wondered if we would be distracted about i this merger in fact our competitors said we would be, and here we are posting the blockbuster results. Mike, thanks for joining us moving about 5 higher up next, uber with bradley tusk, were back in 9 on seconds. Weve got breaking news out of washington. Eamon javers has the story the president says hes going to reimpose in tariffs on canadian aluminum speaking at a whirlpool factory in ohio, saying the canadians have not lived up well see if that sets off another flurry of tit for tats the u. S. State Department Taking an aim at Chinese Companies. With untrusted apps. Joining us now, a very good afternoon for you, undersecretary thanks for having me back how exactly do we define untrusted Chinese Companies . Is it a case now of any Chinese Company that has an ownership back no china is now considered dangerous . By the way, thats a really good question. In china their call is called the National Intelligence act. It requires anyChinese Company state owned or otherwise, actually any citizen, to turn over any information of proprietary information, intellect why will property or data to the communist party or the government upon request, or suffer the consequences. In essence, it could be all of of this. Is the focus on tiktok simply because of its success and reach to so many u. S. Consumers, as oopposed to specifically tiktok being exposed to the communest party more than chinese apps and companies . If you look at the clean ned work, the expansion of that net cork, and five new clean initiatives, so thats clean carrier, store, app, clean cable, clean clout. They communications are as its weakest link they initiatives are an outgrowth of the clean path program that was designed around 5g so not just targeting any one company, but taye a holistic approach to secure our citizens priva privacy. Another way of asking the question would be what is the message youre sending to other big countries that we know have ambitions of growing in the u. S. I think thats an important point. What we have seen from all these Different Companies is different areas where they take advantage of getting that information. I think its a big message secretary pompeo mentioned the cloud proifviders how long before theres an outright need to shut down tiktok if this merger with microsoft isnt completed . I dont want to get ahead of the president on this one. What secretary pompeo was doing, he was announcing the expansion of this Clean Network and really i think its putting everybody on notice. Its also an Important Message to get out on that potential deal, though, as a former tech ceo, docusign for a long period of time, how reasonable is it to carve out a geographic portion of a tech business how possible is that that it could be a merger or sale that could as you know i spent 30 years in silicon valley. Its not easy, but its doble. At the end of the day thats the president s decision secretary pompeo made that really clear yesterday should investors be worried about the stage one phase one trade deal we know its coming up for review in a few weeks. You know, i think the big issue is the world has woken up, and if you look at the pandemic, its a result of the concealment of the virus you look at the freedoms in hong kong, theyve been totally eviscerated. The other thing were doing with with the human rights abuses its about time they have taken a stand. They have the great oneway chinese firewall , all data can come in, but cant go out. I think it is long past time, and the United States is taking the lead here. Thats one of the things that i think President Trump has done i think hes woken up the rest of the world that is the reason for the Clean Network its to address they issues, as well as principlebased collaboration. I guess my question specifically was now that we have taken on this confrontation, can we existing trade deal remain . Thats being discussed with ambassador lighthizer, so its hard to predict whats going to happen there got it. Undersecretary, thank you for joining us thank you so much for having me. We have more earnings, bookings, holdings and trip adviser are both out look at tripp divorce. Revenue actually came in higher than expected. Cautiously optimistic, who said consumee trends have been gradually improving it saw gross bookings fall 91 . Thats a bick draw, but is in line with what expedia saw in the Second Quarter as well the ceo joining mess tomorrow to discuss whether we can continue to see a rebound in travel in the fall and winter as travel restrictions ease. Is the worst behind us and whether much of that answer depends on whether a vaccine hits the market. We look forward to that tomorrow after the break, well dive deep into ubers numbers hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Shares of uber moving lower. Recording a wider than expected loss for the quarter and a drop in gross bookings. Bradley tusk is an early investor and partner in uber its a tale of two businesses right now. Gross bookings for rides plunged 75 . For the eats business, bookings more than doubled from last year do you see any light at the end of the tunnel as far as a round . No, not really. It seems to me that the narrative every single time is just coming up with an excuse for why things arent working well for uber. Now its a paenld and a glimmer of hope, but every single quarter is about making up excuses. They now have had a ceo in charges for three years, and at some point shareholders need to hold them accountable. Do you think theyll be profitable at any time i think as long as theyre coexisting with lyft, they will not be as we discussed, i think theres an opportunity if uber were more counterintuitive with how they approach competition, they could run with in a business, and if they didnt have that competent tis ridesharing could become more profitable if they continue to exist in a totally conventional way all the time, they never will be that profitab profitable ebitda, adjusted edid i today next years, they certainly have been cutting jobs. Now hes punting it into the future he can say im trying and cutting costs really sleight adjustment, they mitt it bradley, which way do you think the decision in california will go i think unless uber overturns that law, theyre going to lose that decision, but ubers better off embracing the notion that their drives being employees, and use that to reduce the number of drivers on the platform, and not being in this constant competition. Thank you for being with us. Thank you for having me. A cloudbased provider, has about 1700 employees the transaction will value elli mae at about 11 million you can see shares falling after hours. Backto you. Josh, thanks. Coming up, bulls versus bears, and what some in gauges are telling us theyre all moving higher. Uber down almost 3 after hours. Check out zillow s up 10 . Well be right back. Wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. The volatility. The ambiguity. This moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Welcome back facebook is banning adding from a protrump from lthe repeated third parties appeared to be false. They will not be able to advertise on our platform. Theres no time frame for the ban. If advertisers repeatedly post inaccurate information, share inaccurate news, they will retricked their ability to ties. Coming up, a play on the broader digitization of the economy. Well talk to the ceo of godaddy when we return when the world gets complicated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Time now for a cnbc news update hi, sue. Hello, everybody. In beirut 16 employees at the citys port have been arrested in connection with the explosion that killed more than 135 people protesters blame the political elite and the corruption for the disaster. Here three Police Officers are recovering after being stabbed. It happened when they were investigating a report of a stolen uhaul, the 40yearold refused to let the officer inside their home. A fight broke out and luckily the officers are expected to survive. The insure was in the retaye business of given, i fits the most deserve up. They got a gift from warren buffett, along with advice and someone to talk to Doris Buffett was 92 years old thats the news update this hour sara, back to you. All right sue, thank you. Up next, shares of godaddy you are higher after scoring an upgrade from jpmorgan. The covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. But inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Shares of godaddy finishing higher for the day, following strong earnings. The Web Service Provider seeing report demand as more shift their Services Online during the pandemic the company reporting that 400,000 net adds during q2 joining us is the ceo of god godaddy. Thanks for joining us. Thanks for having me. Clear aa spike in new signups as to what extent do you think that is sustainable . Wilfred, as you know, in our customers are the microbusinesses, people that are maybe two employees, you know, five, ten. What one of seen is their create activity and resilience is providing superstable rates, and huge demand. If we look at the months and quarter, april was our strongest month i have and july hands slowed down were just in the fortunate position to be able to provide the tools and technology for these customers to come on line. He. I would think these are very strong businesses that are hurting the most i think theres a bit of a misunderstanding when we think of micro businesses, were really talking about businesses with ten or fewer employees. When most people talk about small or mediumsized businesses, they talk about businesses up to 500 employees, up to 50 million in revenue for godaddy 50,000 is a banner year that is actually at the heart of sort of go daddy and the rates that were continuing to see were four months into covid and the renewal rates have been rock solid. Youve had a strong year. Youre up year to date in a market which doesnt seen all companies in that position that said, when you look at the extraordinary success of shopify and the share price gains weve seen there, are there any elements of that Business Model that you regret not embracing yourself earlier when i look at godaddy, im looking at a leader in the create space where they create their Products Online and the marketing and commerce is a massive opportunity for us we estimate that as a 130 billion plan theres room for everyone. Ill give you one example for our last quarter our arr group 60 year over year clearly customers are knocking on our door and saying help us set up the online store, help us sell digitally it presents a massive opportunity for us as the product does well, its huge incentive for us to continue to invest and grow it thank you for joining us. Appreciate that color on the report thank you. Its been another crazy after Hours Earnings session we are gng toio break down all the highlights and movers when we return. Eah, everything is rug smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Lets go back to mike santoli for a look at sentiment on a day where the nasdaq closed at another record high. I always like to look at sentiment, as you know, because rallies tend to run into trouble when you have people believing too much in them fear and greed index in the greed zone above 70 right now on a scale of about 0100 obviously its been higher back here in late 2019, early 2020, we were higher that was before those peaks there. Early 2018 certainly got up there as well. Its been compatible with rallies in the past that were managing to persist a little bit higher be conscious this is a market based indicator that things are starting to run a little bit hot. This is a weekly survey. Bulls minus bears, again, on the edge of being at bullish extremes its a kind of watch and wait, be careful look at the retail aai survey. Bears are still double bulls this is very much an outlier its almost to the point where this small unscientific survey is seeming like its not really representative of whats going on mtin the market. This same groups surveyed folks on asset allocation. Theyre 62 in stocks and stock funds. Feeling bearish but maybe not really doing that with their money. Exactly mike, thank you mike san totolisantoli. Storm brings the allimportant july jobs report economists are expecting the u. S. To add 1. 7 million jobs in july but theres no consensus here because its a huge guess the estimates are all over the map. Some economists are looking for a decline. Some are looking for strong gains. Remember, we had very strong gains during the month of june some of the survey data has shown that the labor market has stalled in terms of jobs momentum if you put together all the unemployment claims there was an addition in july so who knows we hope the jobs continue to come as the economy continues to reopen but there are some signs with the hot spots theres been stalling out of economic activity. Super strong in may and june. Because we know the fed is so committed no matter what to keeping policy loose, that did give the market impetus to move higher it will be interesting to see what happens tomorrow. The question i have as well in particular is whether if we get stronger than expected it could be finally a catalyst to stop the dollar from falling, mike, which has been precipitous of late, largely, of course, because of the level of what the fed is doing compared to other Central Banks but also concerns that the u. S. Economy will perform worse than the likes of europe over the next 612 months. It is at an extreme at least multiyear lows in the u. S. Dollar index that would seem to be a little bit Spring Loaded for a move if we do get a really convincing, very strong number thats a big if. A lot of people are going to say no matter how good the number is, its not really taking back a tremendous percentage of the jobs lost. Who knows if we can bank on it continuing the other question is what bearing the number might have on the whole fiscal debate and whether the markets have to panic about the lack of a deal if were going to see some progress there or not any time soon. Lack of urgency on capitol hill with all of these new economic numbers including jobless claims still continues to amaze me. I think the dollar point is a good one that weak dollar has really been an anchor for stocks climbing. Its an infusion of liquidity into the system from the fed and other Central Banks. Thats why its highlighted in the weak dollar. Well watch that, of course. I think the feeling is that jay powell has the markets back no matter what fiscal stimulus comes from washington, no matter how good the jobs data looks because hes still worried about the longer term permanent damage because of the pandemic. His goal is full employment were very far from that. Certainly lots of factors to watch number in those numbers. Were out of time. Fast money starts now. Im melissa lee and this is fast money. Guy adami, tim seymour, steve grasso and karen finerman. Uber with weaker than expected results. The companys Conference Call is underway plus, were following latebreaking developments out of capitol hill. Lawmakers are kicking off a high stakes meeting on the next round of coronavirus aid we are live in washington with the latest later, steve grasso is stepping up to the plate to pitch his next best idea why he thinks this housing related stock is a total home