Transcripts For CNBC Closing Bell 20160720

In fact during our show, whether things heat up outside. More of the fireworks have been inside. Speeches, whether ted cruz will personally endorse donald trump to knit. It has been much less about what is happening outside of these walls so far. Things have settled down. They arent settling down here. Dow in record territory. You have big names coming up there, dont you . Yes. Guests coming up for you right here from cleveland including top trump Energy Adviser harold hamm. Andrew puzder. And ted cruz supporter graham hunt. Itll be interesting to see how he thinks this is playing out. And dow down 49 points since brexit lows, market is on its best run, get this, since 2013. We are still moving higher here. Tidal wave of earnings right after the bell rings as well. Intel, qualcomm, ebay and American Express and of course to go with that we have complete Team Coverage of all those reports coming up here in a little while, kelly. Lets start with Morgan Stanley that rounded out a generally upbeat earning season for the big banks. Kate kelly joins us with that part of the story. Kate . Hey, bill. Its been a pretty descent week with Morgan Stanley finishing up that period today. They beat analyst expectations on both the top and the bottom line even though the actual results were down from the same quarter a year ago. One big surprise, a 2 uptick in fixed income trading. Morgan officials ascribe that performance to broadbased success and fixed income all with a leaner head count. Among other things, client volumes around the brexit referendum late in june were a big help. Thats a theme with a number of other banks too. Success helped by brexit trading along with costcutting measures to increase margins as overall profitability. Morgan Ceo James Gorman with the most declarative take ive heard yet at least among the bank ceos about plans to adapt to a new eu in future years. This is going to unfold over at least a fiveyear and if i listen to some of the folks on the ground, over ten years. This is a very uncertain what ultimately it will mean. Clearly, we and other banks will have to have european style headquarters in one of the major markets, whether frankfurt or one of the other cities there. We will have to move some people to support that. But the uk will remain, and london will remain, part of our global footprint. Nonetheless, despite a pretty good day, they lagged the market dramatically this year. Without a hawkish fed, tough it see that changing any time in the very near future. Kate, thank you. Lets get to our Closing Bell Exchange for this wednesday joining us, cnbc analyst steve grasso who is sitting here with me. Michael robinson. And Rick Santelli checks in from that other city by the lake, chicago, illinois. Steve, what is it they say about bull markets . The best thing they can do is keep going up, and they are. True. If youre here everyday looking at the volume, it is anemic. Second lowest day since before easter friday, yesterday. If you think about that, no one is participating in it. Longs arent getting any longer. Shorts arent forced to cover bp so the market lifted up. Which means it can go higher. But for me im nervous here. You said it coming into the show. Too far, too fast. And i think its time for a breather but having said that, i thought it was time for a breather the last hundred handles. So for me im looking to be cautious here but i do understand that the market can still lift. Michael robinson, one of those lifts might be the rotation under way here. I see some of the worst performers here today, staples, utilities, telecom, tech discretionaries taking the lead. Is that sustainable . It is sustainable. But you know, i agree with rick on volume. I think this is a stock pickers market. You have to dig in an find stocks that will outperform the market, outgrow the economy. Thats critical. Here is a perfect example. Ibm, 17 straight quarters in a row. Of sales decline. Look at what happened it microsoft today. Stock is on fire with blowout sales of azure cloud services, more than double from a year ago. You are looking for stocks like microsoft that are really in a solid uptrend on cloud growth. You want to avoid stocks like ibm which, you know, nice dividend but a dog the way it is now. The way its structured now. I saw the dollar is now back against the yen where it was before the brexit vote. You know, we all believe that market got it wrong on brexit. But is it possible that there was a certain part of the market that really saw through all of that and that brexit wasnt really going to mean all that much at least in the near term here . Well, you know, im not so sure i can outline that part of it. What i think one thing is very much for sure, the post brexit markets are fascinating. If you look at which ones have overtaken the levels that were established once we knew brexit occurred on the 23rd slash 24th. The dax is close to testing that level. Our markets have blown through it. You meng the yen. If you meng had pound, nowhere near it. But some of the odd ones. Boone yields have movered closer. Even jgbs. I think in the final analysis. What i find about the post brexit world is the following. Uk isnt sinking into the financial quagmire as you heard. You hear the notion that there are still banks and business that stay in the uk. But it adds a degree of uncertainty to the mainland that we dont talk about much. There is a big Political Landscape not only in europe but in the u. S. And i think our stock mark set going to benefit from all those things and just consider we still cant get above 160 close considering everything going on. I think that speaks volumes and i think there is fed surprises before this year is over. I also noticed trade in oil. Cash drawing attention to it. Steve, i just wanted to ask you, how important the direction of oil prices, which we havent talked about in a couple of months here, still for the direction of this market. I think were still on oversupply status. You still have a lot of issues coming back on. You have libya basically coming back on. Nigeria coming back on. A lot of issues that were supposed to offset the market and they are getting back to normalcy. 45 to 50 is that trading range. But breaking down, kelly, is really going to be negative for the ultimate markets. No one is really focused on it but it is the canary in the coal mine when you talk about Global Growth. And Global Growth has been anemic, i dont care which way you look at it. One more question for with you steve, the volatility index, fear indicator is atity lowest level in a year. That often signals a top of the market, doesnt it . It does. But if you really look, thats what people are having a hard time interpreting. What does it all mean . Is it complacency . Are they just positioned to the point where they dont have to do anything at this moment . Because it feels like everyone is sitting on their hands. Thats the only way i can describe it. Yeah, michael, you dont sound as negative on the economy. Explain why you see strength here. All over, actually. You mentioned consumers, retail is doing i mean, retail sales overall when you include ecommerce doing well. Consumers spending. You look at jobs number in june. We have hiring on the increase. I would like to see more Economic Growth than 1 but the 1 gdp has been upgraded twice from half a percent earlier. And then we have good solid home sales. Home sales at like eight or nineyear high. With low Interest Rates, i think were going to continue to see good car sales, good home sales, hiring on the upswing. So again, back to the market and quickly back to something rick said earlier, i like the fact that market isnt moving side ways and it slowed done a little bit. That healthy for the market in general. Coming off of that bottom off of brexit, it was amazing. Slow down we have seen over the last few sessions, i think thats healthy for the rest of this year for the market and we will continue to gradually increase through the end of the year. Very quickly before we good. Levels, steve . I always talk s p cash. So last sale, the next resistance is 2185 soer with almost there. But it is 2200. But to talk about levels when we just erupted. We are in uncharted territory here. But to the other guests point, housing looks good, retail sales look good. Where is the cover for the fed . The fed has to raise now or whatever credibility they had, and i dont think they have any, is out the window. Dont you agree with that. That is what mr. Santelli seems to be hinting at as well. Thank you for joining us today. About 15 minutes still to go in the session today with stocks moving higher as we mentioned. Some of the best performers are old tech. That microsoft earnings that we mentioned and we get intel after the bell today. First an allstar lineup heading your way from cleveland. Harold hamm speaks at the convention tonight. Telling us why he thinks Donald Trumps Energy Policy beats hillary. The positive impact trumps policies will have on jobs. Plus former chairman of ted cruzs Washington State campaign will be here to discuss divisions within the party. And yes, brace yourself for a storm of after the bell earnings. Intel one of the outperformers in the dow today will post its results. So will qualcomm. American express also leading the charge tonight. We will break down the results right when they hit the tape. Stay with us, youre watching cnbc, first in business worldwide. Announcer theyll test you. Try to break your will. But however loud the loudness gets. However many cheese puffs may fly. Youre the driver. The one in control. Stand firm. Just wait. [click] and move only when you hear the click that says theyre buckled in for the drive. Never give up till they buckle up. Welcome back. Pretty good rally. Putting the dow and s p back in record territory. They make up the industrial average. Good portion of them are positive. Not all of them, though. Microsoft leading the way while disney is the big decliner. That microsoft gain today, as it leaves dow gainers, leaving late yesterday on closing bell. Tech giant revenues, and azure, corporate Cloud Platform doubled in the quarter. That got everybodys attention in the stock up 5. 6 , kelly. Bill, thank you. Our next guest plans to put energy front and Center Tonight at the rnc, harold hamm. First major convention speech. This is a big deal. What is it that you are going to say . Yes, kelly. We will talk about why energy is front and center and in a platform and everybodys mind this year. I think there is a huge conflict between the two candidates. One which would eliminate all fossil fuels and the other one which embraces, knows, sees the need for crude Oil Development and oil gas in america. And you know, it is pretty easy. This thing is easy. When you look at it, with all the terrorism going on in the world, now where is this coming from . Nations over there that we have been funding. For the last 50 years. A lot of people buying crude oil. They might be surprised to know how much we will still importing into this country. You think weve had this massive boom in production but we are are still importing quite a bit. When does that change . It is changing. We cant tell them not to bring their oil to their refineries that they own here now while everyone was asleep over the past 30 years they bought 30 of u. S. Refineries. Probably shouldnt have happened. These are very strategic facilities in america that Foreign Countries bought 30 of our u. S. Refineries. Now we cant export and we are, you know, exporting over 4 milli Million Barrels of day of refined product and we can move crude oil to other countries since we lifted the 40year ban. You were pushing to lift the ban, is that right . Yeah. It was a nobrainer decision but took two years to get that done with this administration. Now that we see such a renaissance in u. S. Production what is the Energy Policy we should expect from a President Trump, say for example . What would be the first thing he would do with that industry . One thing back off some of the punitive regulations. While weve been doing this the last seven, eight years, weve had an onslaught of a sue tsunami, if you will, of regulations putting us out of business. Practically put coal out of our business. We call it death by thousand cuts. They had some other real terms that you dont want to hear that they put on us. My goodness, this would be the dumbest thing we could ever do. Certainly the cost has come down considerably. A doubleedge sword. We were just talking about the oil prices have been hurting the market lately. Coming back early this year and where do you expect the price of oil to go from here . That does seem to be the biggest, you know, seems to have the most impact daytoday on how much production we see. We Pay Attention to two fundamentals. Thats supply and demand. Have a good strong demand. 1. 3 million new barrels this year in the world. That will offset much of the oversupply that has been there. In fact, all of it, we believe has ended the Second Quarter. So we are seeing prices go the right direction. We believe there will be 60 by year end. And i think that a little conservative on the number. We have seen 50 by june and it backed off a little bit. There are refining issues. It is also true that in some way, increasing its share of the worlds oil supply because they just keep pumping. What changes that . So you know, there seems to be this kind of fight between market share and sticking on price. Well a lot of that was done by president obama. When they raised, you know, the sanctions on iran and put all of their oil on the market and saudis said were not giving up any market shares. So theyve been competing head to head, which put more oil on the market than really was demand for it. So some of that was caused from that. Sure. Is President Trump or would you recommend or are people tonight looking for, i almost want to say a more protection, or a United States consuming the oil we produce, simply because thats in our geo strategic interest no matter what the price may be, even if it is higher . Well, this is the biggest geopolitical weapon that we have is crude oil in the world. And certainly we do not need to be funding the nations funding terrorism. And thats what were doing, you know, unless we produced more here and certainly thats what we need to be doing. What do you think happens to the oil and gas industry if Hillary Clinton wins in november . We could expect a lot more of the same. The very same, you know, we have talked to her director of energy. And you can expect more of the same. Could be worse. Youve got a couple more hours to go get ready for your speech just behind us here in the convention. Thanks for joining us in advance of that. Appreciate your time. Harold hamm. Back to you, bill. All right. 40 minutes left in the trading session here back at the New York Stock Exchange. With the dow up 42 point. S p up 9 also in record territory. Nasdaq having a good day, up 1 right now. When we come back, roger ailes negotiates his leaving fox news. And fastfood ceo andy puzder talks about why he thinks donald trump would be better for the economy and for jobs. When we come back. Before taking his team to state for the first time. Gilman go get it, marcus. Go get it. Coach gilman used his cash rewards credit card from bank of america to earn 1 cash back everywhere, every time. At places like the batting cages. [ crowd cheers ] 2 back at Grocery Stores and now at wholesale clubs. And 3 back on gas. Which helped him give his players something extra. The cash rewards credit card from bank of america. More cash back for the things you buy most. Here at Stock Exchange, the rally continues. Dow up 38 points. Still in record territory. As i mentioned earlier, from the brexit lows. This is the best in three years, believe it or opinion. S p also in recordtory at 2172. Meanwhile, nintendo shares tumbled evernight in japan on reports that the japanese release of pokemon go scheduled for today has been delayed until tomorrow. Developers were concerned that heavy demand would overload server capacity so theyve been bulking up the last 24 hours. Pokemon go surpassed 30 million down loads since its u. S. Debut 2 weeks ago. Unbelievable. Any sightings there at the arena . No. Snap chat has quite a presence here. Looking on everyones phones, seeing what they are up to. Just a little interesting pickup there. 21st century fox shares lower. Likely to result in the he departure of fox news chief ailes. Julia has more on what ailes built. Chairman of fox news, which he launched in 2007 within also chairman of the 28 fox tv stations. 76yearold oversees about 20 of 21st century foxs revenue as well as 20 of earnings before interest, tax, depreciation and utilization. Was the impact of fox on his departure. There was a note reiterating his outperform on the stock saying while ailes is widely viewed as architect of Fox News Channel and losing ailes injects some view of risk they fail to show any material from implications of his departure. Now Pivotal Research analyst brian weezer also with a buy rating talks about the potential upside of Management Change saying corporate control has been sub optimal and audiences are unlikely to leave the network so long as sufficient degree of the current character remains in place. We are now watching to see how the negotiations of ailes detar pure package goes. We will see how much he is paid as part of that golden parachute. Back over to you. Still more to come. Julia, thank you for now. Now to sue when reara and time for the news update. Sue . Health officials in florida are investigating what could be the first zika infection from a mosquito bite in the continental United States. It involves a miami area resident who has no apparent links to recent travel outside the country. Lab tests have confirms the zika virus. A residential tower in dubai caught fire today. It appears to have begun in the upper floors of the skyscraper quickly spreading along the sides of the building. There were no immediate reports of injuries. More than 372,000 pounds of hot dogs and corn dogs sold nationwide are being recalled because they could be contaminated with list listeria. Bar s food is recalling chicken and pork product made between july 10 and july 14. Art works from david bowies personal collection will be auctioned. Previewed in los angeles, new york and hong kong. And thats the news update at this hour. Ill send it back to you, bill. Sue, thanks very much. See you later. Were head together close last half hour of trade here where we are beth at the New York Stock Exchange and cleveland convention. When we km back, bank of america, head of equity strategy, gives us her take on the potential Market Impact after donald Trump Victory in november. And we will get you up to speed on what the street is expecting from tonights big Earnings Reports. We have, count them, intel, qualcomm, American Express and one more front and center ebay coming your way. And intel cfo will speak with us on an interview rate after the chip giant results are released. Stay for that, much more. Kelly and i are coming back after this. Turns romantic turns romantic why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Welcome back. You saw the nasdaq with the best percentage wise. Here is the reason why. Biotechs on the rise today as well. Ibb, as in yack biotech index is up 2 1 3 percent right now. And alexion and regeneron also up. As you know, donald trump is the official republican nominee. What would that mean for the party . And what would it mean for Hillary Clinton . And bank of america and merrill lynch, joining us to talk about that, and you say it doesnt matter who wins buzz you believe there will be a fiscal stimulus coming from either a trump or Clinton Administration that could help the economy. Why . Well, i think both have been fairly vocal about maintaining that they would spend a little money to help the u. S. Economy. How they spend it seems to be in different ways but it seems like that might be on the offing and could be the next way to solve an ailing economic backdrop. So i think that the hope is that fiscal stimulus might actually reinvigorate the economy and get us it a better place. And on that point, savita, is that already priced in . Seems to be the one area that people agree that whom would win, and look at the rally we have seen in stocks . Yeah, weve seen a violent rally in stocks. Im a little bit skeptical about the move in the market. Our yearend target is 2,000. I see more risks than rewards as rehead into the end of theier. You know, fiscal stimulus would likely be a 2017 event but between then and now we have to get through the election. The one systematic trend weve noticed ahead of election says increased volatility in the equity market in the five months heading into an election year. So heading into november, im a little bit worried about down side risk to stocks just based on that historical trend. Weve also seen Companies Cut back on cap ex ahead of elections. So two quarters ahead of president ial elections, companies tend it lighten up whats already pretty anemic cap ex spending. So thats another area we are watching for some softness. On top of that i think there are other reasons to worry about the health of the equity market at this point. Can i give you the laundry list but it is pretty long. Let me bring you back to the topic we started with. Thats the impact of the election and your thoughts of fiscal spending by either of them. Presumably they would spend in different areas. If it is trump, what areas do you think would benefit the most for example . Well i mean, you know, if you think about the wall it would benefit Building Products and kind of Machinery Companies which havent really seen a big lift in the last couple of years. So thats one area where we could see a little bit of a pick up. At this point it is hard to say because it is fairly unclear what either candidates fiscal package will look like. So it is tricky to talk specifics here. But i think the hope is that we see something that is prominent and that is enough to reinvigorate the economy. We are kind of at the end of monetary policies. So whats next . What can we bank on and hope for in the future . I think what we are hearing is fiscal stimulus might be the next leg up. You bring up a great point which is if the fiscal stimulus comes on the one hand is monetary stimulus pulling back. It has already obviously. But how much more might we see in terms of tightening and would that offset and kind of macro level the boost you are talking about in fiscal spending. The fed has sort of embarked on a very slow tightening cycle. And i think here youve got what looks like an environment where if anything the next move the feds make is a move higher on the short end. Which generally is a crimp on growth. What im worried about even more than the fed is that youve got a few other sources of capital slowly being choked off to corporations. So if you look at, you know, one thing we follow very slowsly is the senior loan officer survey and we have seen tige tightenin banks lending to corporations. You are actually seeing capital availability shrinking to the corporate sector. Now the thing to notice here is that weve never seen three quarters of tightening without a bear market. So thats what im worried about. A lot of indicators we are looking at are at levels that we havent seen without a bear market. Interesting. We are looking for a little down side on the market from here. Banks circling the wagons. Thank you. Appreciate it. Good to see you, too. Weve got about 25 minutes to go until the bell and a day where markets are moving higher and the dow could set a record again. Intel, qualcomm an American Express. But first we catch up with restaurant ceo andy puzder here at rnc who believes trumps proposal will jumpstart. Reporter rnc. Give us a table. We will be there. How many people are here . 20, maybe . We will all be lining up. We will check it out. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Everyone talks about what happens when you turn sixtyfive. But, really, its what you do before that counts. See, medicare doesnt cover everything. Only about eighty percent of part b medical costs. 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Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade welcome back. Dow is up 46 points, kelly. Record territory. Same thing with nasdaq. Check out the volatility index as well. Mentioned that earlier. Down to 11 and change. Lowest level in nearly a year. Peeking out around 26 for the vix after the brexit vote. And tumbling ever sense. Tesla moving higher an ceomusk promised to post more about his web su website. Recently changing to teslamotors. Com and he has to say how he plans to transition the auto maker into a broader Energy Company. We will find out tonight, kelly. Looking forward to that. Our next guest says Donald Trumps plans are best for the job growth. He is owner of cek restaurants. Wall street journal carried the op ed but you have talked about the country having a job growth policy. What do you think donald trump will do for that . We need growth to find jobs and drive salaries up. If employees are competing for jobs, salaries go down. If employers are competing for employees, wages go up. He has a plan it invest capital. Encouraging companies to bring capital back to the United States. Hillary clinton has a tax plan that doesnt purport to be a growth man. On energy, we would be Energy Independent by 2020. Her plan is Climate Change plan, not addressing growth. Right now, if we could stop sending money to the middle east it might help stop the problem of terrorism. This guy built buildings in new york. He knows about regulation. Knows how to deal with red tape. Yes. He knows we need to reduce it, reduce it now. It is restraining growth. He will get rid of the executives orders. He has taken the bureaucratic Fourth Branch of government and use it to implement policy avoiding congress. Donald trump will stop that. As you may this, you were a mitt romney guy. I was. I love mitt. Wish he was president now. Harold hamm who we had on also was. But you guys are here but a lot of that 2012 vuintage is not. Mitt romney himself is one of the most antidonald speakers we have heard of in this country. How can you support him and why dont they support each other . Mitt and i talked about this. I feels donald trump could not take the country in the right direction. He doesnt object to his policies. I think he is okay with most of his policies. Not all, but most. I think his problems are more who donald trump is. But he recognizes it. For me, first of all, i like donald trump. Im not concerned about who he is. I think a guy with kids like that, how bad could a guy be who raised those kids. Wonderful kids who love him and love family. But the Supreme Court is up this time. Presidency is up. Senate is up. House is up. Rudy giuliani said, we dont have another election. This is the election. We cant elect Hillary Clinton. Her economic policies are wrong. She failed at foreign policy. Anybody that listened to fbi director comey go through the list of things she said were true that werent true, how can you vote for her . That is what will be interesting tonight. We will have ted cruz, marco rubio here. Lying ted and little marco. Are these the people who will get on stage and make the case to america for donald trump . Or will we hear people say, it is the lesser of two evils and not Hillary Clinton . If i knew the answer i would go out and bet right now. I have no idea. I hope they come out and support our nominee. I think it would be important for their futures and future of the party. I dont think the message should be all antiHillary Clinton. I started off why i thought his economic policies were better than hers. I think we can run and win the election by policy. For people having a hard time trying to decide who to vote for, point out Hillary Clintons negatives and there is a lot to point out. But we need to win on positives. Thats the drama of the next couple of days. We will speak it a supporter of ted cruz, former supporter, anyway. Are people going to be reassured enough by selection of pence. Seeing the likes of you guys on stage saying here are is the reasons why we think you can trust guy. Or will that remain an open question . His trust worthiness just as much as Hillary Clintons. When you sit down with him it is much different than what you see on stage. You are just talking from joerj individual from mitt romney dayes who said i sat done with him and it was just amazing. Or tony perkins who said, i had dinner and ivanka set next to me and afterwards i said i have to reevaluate this guy. He is much different than what is perceived. You have to cut through the hyperbole. This guy is authentic. You will hear whatever he is thinking. You dont have to worry about whether he is telling the truth or making things up. Sometimes it is good, sometimes not good. But he is very authentic. Someone to trust and get our economy back on track. We will see if we hear from him tonight. Thank you, owner of cek restaurants andy puzder. When we come back, we will preview earnings after the bell. Intel, qualcomm and American Express among those reporting. Youre watching cnbc first in business worldwide. Using 60,000 points from my chase ink card i bought all the fruit. Veggies. And herbs needed to create a popup pickyourown juice bar in the middle of the city, so now everyone knows. We have some of the freshest juice in town. See what the power of points can do for your business. Learn more at chase. Com ink see what the power of points can your business needss. Better technology to drive better performance. So you need it to be reliable and fast. Really fast. Introducing the comcast business Summer Savings event. Fast Internet Speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. Get some of our most advanced products at a great price with over 500 in savings. Call today and ask how to get these savings plus a 250 prepaid card. Comcast business. Built for business. Welcome back. News outside the convention hall. Eamon javers, whats happening . We are just outside the Republican National convention, on the street. A lot of people are here. A whole lot of protesters. What we see now is a group of antigay protesters with bull horns. Over past me behind this line of Cleveland Police department officers, theres a rumor that people were going to show up here with an American Flag and burn that American Flag. Obviously that is sort of taunting to this group of protesters over here. So weve got the American Flag guys showing up immediately surrounded by Police Officers and Cleveland Fire Department officers as well. It is not clear if they are actually doing anything but a group did show up surrounded by American Flags. You can see this line of Cleveland Police officers and that line of bicycle cops maneuvered to separate the two groups. You have two groups at odds with each other but theres a pretty good distance between them, kelly, right now. Little bit after tense situation. Emotions running high. But no violence. All is calm. Everyone is getting a chance to exercise their First Amendment free speech rights. They brought the flag and even yesterday there were questions about whether the flag burning was going to happen. Is that still the plan, as far as you are aware . That was the plan according to some intelligence that we got. Now we see some movement over here. A couple of groups moving. Little bit of pushing and shoving behind this group of protesters with signs. But yeah, intelligence was that someone would show up and try to burn a flag. Obviously a very fluid, very chaotic situation. Cleveland Fire Department, as soon as they showed up with the flags, moved right in on them. And there were people with fire extinguishers right on those guys. If they try to burn a flag, itll be a very, very short fire. I can tell that you much. Thank you, eamon. All right, back here at New York Stock Exchange with the dow up 46 of points. 10 minutes to go. Let me just mention, art just stopped by to tell us the market on close order show imbalance to the sell side. Not much. Hasnt been much on either side lately. 200 million to sell on the close. Lets talk about earnings coming out at the top of the hour. Full Team Coverage coming your way on Companies Set to report. Josh lipton in San Francisco on intel. John fort back at headquarters with qualcomm and kay la here with at the Stock Exchange here on American Express. Bill, kick us off. Intel has enjoyed a nice recent pop. Can the ceo keep the bulls happy . The street will look for eps up 53 cents on revenue of 13. 5 billion. That means a drop of 3 on the bottom line and pop of 3 on the top. Intel still does generate roughly 60 of its revenue from the sale of pc chips. Microsofts cfo just told us the pc market was a bit better than expected. So what does that mean for intels business . Sales in its client Computing Group, including chips for pcs and mobile devices expected to come in at 7. 2 billion. Also sales for chips for servers, that big segment accounts for 30 of the Company Sales and close to half of intels profits. Guys, back to you. Josh, thank you. So john fort, what are you expecting from qualcomm tonight . The question is whether qualcomm gets things turned around when it comes to the year over year comps. The street is looking for revenue of 5. 58 billion. Not gap earnings of share around 97 cents. Thats a little lower consequenceus than what qualcomm delivered a year ago. So they could be just about in line with last year. That would psychologically be a good thing. Especially since the smart phone market has been under such pressure lately. Also look for the guide on device sales overall. As we start to head into the smart phone buying season. And qtl. That their licensing business. Over all how well does it do . Profits are tied up there, bill. Jon, thank you. So kayla, are we expecting to see signs of turn around yet on American Express . They certainly have a turn around under way, bill. Second quarter for American Express is supposed to post 8. 4 billion in revenue and from that 1. 95 per share. That per share number would be at 37 increase from a year ago. But it does include an approximately 1 billion gain from the sale of the costco portfolio as well as cost cuts that company put in place several months ago. Costco is the big event that transpired in the Second Quarter. Remember that portfolio moved from American Express after 16 years it a new partnership with visa and citigroup. So the question is, how many of the costco card holders was amex able to sign up for new amex cards. The ability of the company to do that is what will fuel future earnings growth. Then will they be able to reiterate guidance for the year . The streets expecting earnings between 5. 40 to 5. 70 is what the company expect and expenses and how much are they able to do in cost cutting . What does the second half of the year look like and will they incur even greater cost as te look to replace costco customers. Bill . Thank you all. See the three of you at the top of the are hour when earnings come out after the bell. They love you apparently. Apparently. Randy from schwab. What do you do here . We have been telling our clieent to maintain allocation. If you are in the market, this is not a time to sell out. But mainly stay where youre at. While we have seen a good rebound since the brexit, honestly the market will find themselves limited. We know earning ratios are getting hot. We know that we have, you know, fed meeting coming up next week. Nothing will probably happen. But we have the election and fed meetings that could be issueed. Markets will probably continue to drift higher but upside is getting limited. Everyone loves the dividend play. Not the cyclical play necessarily. Where do you stand on that . Well, again, as long as Interest Rates stay relatively low, and even if we are aabout youve in september or december you will have a more attractive yield from dividend stocks. While you might see a little dip if that happens, it will probably be temporary and ultimately they may perform until we get Interest Rates it a more normalized level, which may not happen until sometime next year. Thank you. Randy frederick from charles schwab. Kelly, closing coming soon. Yes, and from the bell in cleveland, promising to purge the federal government of all appointees made by president obama. Every one of them. Can he actually do that . We will have a discussion with sarah fagan and our own john harwood. Stay tuned. Youre watching cnbc, first in business worldwide. Look at you. Youre at the top of your game. At work or at play, youre unstoppable. Nothing can throw you off track. Oh hey, shes cute. Nice going man. Things are going great for you. Youve earned a night out. Good drinks, good friends. Yeah, we can go ahead and call this a good night. Wait, is that your car . Uh oh. Not smart. Yeah, i saw that coming. Say goodbye to her. Ouch that will hurt your bank account. Youre looking at around ten grand in fines, legal fees, and increased insurance rates. I hope you like eating frozen dinners. Alone. Lets try this again. Smart move. Because buzzed driving is drunk driving. The gain here with the industrial average showing 3. 6 up another 39 points today to recordclosing high. Very quickly earnings coming up tonight including American Express, intel and qualcomm. And think of all the Companies Reporting today, habits go to work. Microsoft all beat by a larger amount than anticipated. Thats a big thing today. People ask me about the vix closing and more than 12month low. And unfortunately, we cant make a lot of claims about what will happen in the near term. Historically it is that the mark set lower but that hasnt been the case in the last if you years. So hard to make a determination of what that is. Thanks, bob. Records for the dow and s p as we head to the close. Enthusiastically ringing the bell at the big board. We have Td Ameritrade. Stay tuned now for the closing bell. Welcome to the closing bell, everybody. Im kelly evans. First, we are finishing up the session on wall street. Looks like another recordbreaking one. Dow higher. Should be good enough to do it at closing at 18,600. S p 500 actually much bet are performer than the dow at up. 4 or 9 points at 2173. Nasdaq up 51, closing at 5,089. The highs that it set last year. Setting up for a wave of big earnings. Jon fortt equalling qualcomm and kayla is waying for amex. Cnbc commentator, mike santoli. And joining us from the nasdaq, mike, what do you make from this market . We rested enough to get more upside. One thing that strikes me at s p 500 close of 2173 is exactly 20 higher from the intraday low in february. Basically, i dont think everybody saw that coming this fast. Now i think the question is do we have to consolidate more . We have readings that have been eased a little bit but i think thats the big question. Earnings good enough to keep us up here but whats the next . You are the baseball owe nish nado. We keep hitting singles. Nobody is hitting a home increm. Another record high. This remind me of last spring when we were making new highs. But we did it in a very measured fashion. Obviously now stretching upper end of the trading range at minimum with this push. But it is hard to say that really people perceive an immediate catalyst and immediate rush. Im more focused on what could disturb thats been a bullish setup. Whether liquidity, fed, all of these things going on. A lot of that is tested in the text couple of weeks. Gains werent huge but there may be something insignificant going on here. Staples, utilities, tell cons, underperforming. You have Consumer Discretionary and tech and earnings are mattering. Yes. Listen, as long as earnings keep going markets are higher. Not a lot to quibble with right now. To your point, low and steady wins the race. What will derail the market . I have looked for things for the last couple years trying to figure out what is the catalyst to send this thing back down and i thought i have noted a couple times and market discounts and looks right past it. I dont think a lot of other people can foresee. I think this goes higher. There is nobody stopping it. Earnings are in line. Good enough. Yields are low which i think is a a harbor for bad things. Whether i think it should be here or not. Let me break in guys. Getting first of earnings. Josh lipton, looks like a bead on the bottom line, huh . Bill, just getting the number pi. On the top line 13. 5 billion. Looking for 13. 54 billion. Just looking through the business segments, Computing Group, chips for pcs, mobile devices, revenue, up 7. 3 billion. Thats better than expected. Data center group, chips for servers, 4 billion. Thats lighter than what the street was looking for. Increasingly critical part of the business. Gross margin, 58. 9 . Estimates asaw were calling for 60. 9 . Finally turning to the forecast, look ahead here, looks like intel is guiding for a q3 revenue guide of 14. 9 billion. Thats better than what the street was looking for. Guys, back to you. Now cfo of intel stacy smith joining us later. Stock is down. Not enough across the board but also the stock has gone vertical the last couple of weeks. About 10 as the group is in favor. I wonder if it is just people backing off because it wasnt such a blowout. Taking a little profit there. Guy, what would you do here . Lets see how the dust settles. My first question is what is the deal with margins, stacy. All about margins with intel. Next big thing i look at is margins and from what i can tell thats disappointed. What do you do . Not an expensive stock. If he gives you the right answer, if this shifts back done to 31 or so, i think you buy it and look for the move back to 37. I can tell you bill, starspangled banner is over behind me. They are getting ready for tonight. Let me tell you, we might hear from the band soon. We are usually down there at exchange and you can barely hear what is going on. Same true in the floor here in cleveland, too. I have the crowd behind me and i can barely hear you as a result of that as well. You know, mike, weve had this migration in chip business from pcs to for example internet of things. I look at revenue contribution for intel. Not great now, but i assume thats a growth area for them. The question is, do investors stick with it along the way as you have that transition. Doesnt go like clockwork quarter by quarter. I think a similar transition to subscription model, not exactly what intel is doing, but adobe, a wonderful stock, but oracle is another example, where you have the model changing in some respect. Not the same exact thing as cloud but i think thats what you have to be in for. Intel got caught up in the old tech dividend. Thats not gotten any juicier since the stock has appreciated to a new high. Down 3 now so getting juicier here. Where are we going . About the pc cycle too. With microsoft and couple others, a sense of you know what, maybe the decline in personal computing isnt so bad. Are you seeing that in intels numbers . Im trying to parts through them now. I think that i think intel pivoted as well. Not nearly as well as microsoft. But it manifest itself in terms of valuation. Microsoft is trading closer to 19, probably deservedly so. Given the way they transitioned. Im not comparing companies only in so much as i think one did it better and faster than the other. But i dont think this is a disastrous quarter for intel. Especially if they can answer the questions about margins. All right. So again, we will wait for stacy smith, cfo of intel to join us here. Let me just ask you, guy, with the vix at oneyear low would you buy volatility yet . Are you ready there . Terrifying, right . If you are looking for one booing oo man in this whole thing is the fact that the vix is dead around the 12 1 2, 13 level. If you look off the last couple years is levels that the market has sold off from. In other words the vix bottoms out around the levels. Market sales off and you see it move to the upside in the vix. Im shocked at level of complacency people have in the level of refinement we find ourselves in. But the market continues it ride higher. I think every dip is an opportunity without doubt but thats emboldened people to the point where they no longer think they need insurance in the form of the vix. To be honest, i think they might be making a huge mistake. First of all, we are below 12 on the vix. Two days in a row closing below 12. It mostly reflects how its been. And people are buying notes linked to vix futures. So i feel they can stay down here for a while but not a big enough cushion. Lets step in once again. Now qualcomms earnings. How do they look jon fortt . Pretty good, bill. I said we are looking for that term of year over year and that is what happened. Revenue at 6. 0 billion and better than 5. 8 a year ago. Coming in at 1. 16, better than 97 cents the street expected. Better than 99 cents a year ago. Also results are better than a year ago and perhaps bet are the guidance appears to be positive too. Qualcomm guiding Current Quarter to revenue range of 5. 4 to 6. 2 billion. 5. 8 billion at midpoint and eps range of 84 to 94 cents which is 89 cents at midpoint. All better than what some people might have expected and it appears smart phones, not doing as poorly perhaps as they had been in earlier part of the year, bill . And that stock up almost 6 mike. And this is going to show me. A lot of people thought it has to improve quarter by quarter. And yet another one thats old tech yield. This is one of the undermined, meaning not mined enough, for dividend old tech as posed to food stocks. Back to josh lipton with more on intel. What do you have . Bill, i want to correct, intels nongap close margin clocking in at 61. 8 . That does edge past what analysts predicted. Quickly, pointing out the Computing Group that came in bet are than expected. Data Center Little bit lighter. And smaller part of the Business Revenue there 572 million and analysts looking for 663 million. Bill, back to you. Let me jump in here for a second, guys. Bring you back to cleveland. Protesters are burning the American Flag outside the rnc. Eamon javers has more. Eamon . Yeah, kelly, we just talked about the group that would burn the American Flag. They are holding up a big communist sign. They are beginning to burn the flag. We saw the smoke. Police are trying to stop it now. We have a bit of a rugby scrum. Also a big media speck cal and a lot of different reporters out here. Police are trying to clear area. Were on prospect street just outside of the secure zone. Just outside of the Republican National convention. We are told to move back up on the sidewalk. So im going to do that. If you could take a step back. You see the chaos. Police are trying to push everybody back. They moved in quickly when the communist party group decided to burn the flag. Protesters cleared a group physically with their arms like a rugby scrum and then lit the flag on fire. The police moved in. All protesters yelling and hollering, thats sort of the scene weve got out here, guys. Fascinating to watch police in action. We saw bike Police Moving in as lines, using boiks as fences, holding bikes up and blocking protesters to accessing the area. They are making a human wall with the bike police. They are able to keep this area clear. So far everybody is safe. A lot of pushing and shoving but everybody is safe. Looks like the police secured the area. If can you get a shot in there and see what is going on. You can see the horse police moved in. Police locked arms surrounding where the protesters are. We see one shirtless man. Police wrestling with a guy on the ground. Trying to secure him. Looks like we will have one or two arrests here, guys. As we look at the center of prospect and east Fourth Street in downtown cleveland just outside the secure zone of the Republican National convention. Police seem to have it well in hand. I will toss it back unless you have a question. So eamon, one and done or what . Good question, kelly. We are getting bits of fragments about what will happen. Some is rumors and some is real. Looks like this group came to do what they were going to do. Police secured the area. The Fire Department was right there. We saw the Fire Department with fire extinguishers and buckets. They were prepared it doubt the flag as soon as it lit on fire. It may be that thats what happened. Cant see what is going on in that scrum but it is quite a scene. We have guys on their knees do you np looks like some have been detained. Three people have been detained here. The police are able to pretty much clear this square. This was open access point for media and other attendees at the Republican National convention. As you can see, it is not an open access point right now. People are still trying to come and good, do normal business at the convention, but not a normal day in cleveland, guys. Take it easy out there, eamon. We saw a couple people subdued, as you mentioned. Eamon javers outside the quicken loans center where tomorrow we will have the marquee events of the day. A third of the big ones we have been waiting for. Kayla, how did american skbrexp do . Revenue a miss at street looking for 8. 4 billion. Expenses were way done. Operating expenses down 3 13es versus prior year. But much of that included the roughly 1 billion sale of the costco portfolio and the company says if you were to exclude the gain they got on that portfolio sale and other restructuring cost that operating expenses would be roughly flat. Importantly the company did say that not only do they reaffirm their guidance for 2016 but they now say they expect 2016 results to be at the high end of the range than it share had earlier despite the fact they say the company will continue spending at elevated levels through the rest of the year and 2017 guidance remains unchanged as well. Delivering on cost cuts and delivering on bottom line even if revenues slightly shy of estimates is why you see the stock up nearly 2 after hours. Kayla, thank you. Mike, another showme stock here. Yes. And a response in the market. If they say 2016 is above the consensus which is smack in the middle of American Expresss previous range. So they are saying no adverse moves since last time we talked to you. Stocks 12 times earnings or thereabouts. Clearly for a great franchise still a lot of people will say this is worth a try here. Guy, which one do you like to talk about . Qualcomm, American Express . Who do you like here . All three. I think intel, interesting. Nongap margins. All about nongap and the kass em between nongap and gap continues to widen. Strange thing. Leave intel to talk about margins. Qualcomm, really good quarter. Great balance sheet. I think that stock continues to rally. Kudos to dan nathan who talked about getting ahead of earnings. American express, i think it is good enough. Why . Because they have clarity out to 17. Mike just talked about valuation. You slap a 13 multiple on next years earnings and you talk about a stock that could be trading 70 bucks. Costco thing we can talk about it until we are blue in the face. Thats a long time ago. They are past it as this quarter indicates. So on valuation alone, given the clarity they have and think American Express is still interesting despite it is higher in the after market. Hows that . I love it. I love it, i tell you. And we will see you next hour. Of course you will. Appreciate that. Thank you. See guy and the rest of the fast money crew at 5 00 p. M. Eastern time. Tony dwyer says this rally has come too far too fast. What . Is he changing his mind about the market . He will be on with the fast money crew at r5 okay eastern time. Look forward to that coming up. Meantime, much more on todays big after hours earnings, including ebays results. Plus cfo stacy smith breaks down the quarter for us and what chip makers say about the health of the pc industry. And more from cleveland. Vice president ial candidate mike pence and gop president ial contender ted cruz. We will highlight another big night and speakers at rnc. We will have a preview coming up p. Dont miss special coverage at rnc tonight here on cnbc. Gets under way at 10 00 p. M. Eastern time. As a supervisor at pg e, its my job to protect public safety, keeping the power lines clear, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Just for good measure we have one more Earnings Report to tell you about. That would be ebay. Josh lipton doing double duty for us. The Company Delivering eps of 43 cents. Street looking for 42 cents. On revenue 2. 23 billion. Analyst looking for 2. 17 billion. Looks like it comes in at 20. 9 billion, better than expect the, up 4 . Up 6 currency adjusted. Active buyers 164 million. Board also approving an additional 2. 5 billion stock repurchase authorization and raising full year 2016 revenue as well as eps guidance. Bill, back to you. Josh, thank you very much. That stock up almost 7 here, mike. Yeah. The value name in ecommerce right here. Seems like gross merchandise volume was a big deal. Interesting to hear what they have to say about brexit effects. They have big business in uk and germany. Two big markets always big for ebay. All right, kelly, a day in the books. We will hear from stacy smith in a while. Back to you in cleveland. Thank you. Today is day three of the Republican National convention. In case you missed speeches last night, the attacks on democratic rival Hillary Clinton were front and center. Hillary clinton putting Big Government spending, financed by the chinese, ahead of good paying jobs for middle class americans. Is she guilty or not guilty . Are we willing to elect someone as president who has as their role model somebody who acknowledges lucifer . Think about that. The other party tells us they believe in the american dream. Saying we should worry about economic inequality. You know what . Theyre right. But they dont tell you that it was their policies that caused the problem. And it was their policies that have no accountability. For more on that and what we can expect tonight as band warms up behind us, lets bring in our own john harwood and sarah fagan. Sarah, we mentioned this earlier. This question of what kind of tone marco rubio and ted cruz will strike, will they come out really and endorse donald trump tonight . Well all eyes on ted cruz since they are speaking and you want them to endorse donald trump. The trump team want that. Im not sure if he is going to do that. Its been telegraphed that he is. And telegraphed that he isnt. There is certainly some building around this speech because of that. He needs to, ted cruz, and mike pence, both need to start to make the case for the conservative cause as the right path for the middle class, for those in poverty and lifting them out. We need to pivot to more hopeful message about how the party can help people in need. At the same time, reading a reuters report about whether president obama might try to switch over appointees and Civil Servant so donald trump couldnt do a purge if he came into office. Is this politics as usual . No. And i look, if donald trump is elected, it is his right as the head of the executive branch it replace any political appointee he wants. He cant go and violate Civil Service laws to change that. And i expect no white house to try to do that. Let me talk to sara about what you said moment ago. When texas colleague on about an hour and a half ago, he said it wasnt important. I think politics is always about perception and how well you manage a message. I dont think it matters if he zpt endorse him as long as you and your colleagues all around this arena arent expecting him to. I would hope the Trump Campaign would know the answer and telegraph it to journalist. I know it is premature to talk about november and what could happen during handover. And you probably remember better, that clinton had taken the ws off the keyboard in the white house. I was there. It happens. I showed up for work on the first day and there were no ws on the keyboards and in the white house of the executive office. Yes. There are high jinx when this change over happens. Some more serious than others, i guess. The worst high jinx were the pardons of people like mark rich that created tremendous controversy and problem for president clinton. But yeah you could have the juvenile high jinx too. It happens. In a couple of hours, we will hear the theme of tonight is make America First again, i think. But yesterday was supposed to be about the economy. Wasnt about that first and foremost. Make America First is about policy. You would expect pence to talk about americas role in the world and as someone serving on Armed Services committee, he is well equipped to do that and leave that part of the campaign for team trump. I would also expect ted cruz who has done a very good job in his indictment of the obama Clinton Administration, Obama Administration with Hillary Clinton as secretary of state of course, he has done a good job. I would be surprised if he didnt again. Why we may have a repeat of hillary bashing is that that is the theme for republicans. Just like on trade or immigration. Donald trump differs from other republicans. Accusing sarahs old bosch george w. Bush of lying before the iraq war so the iraq war was a mistake. A lot of disagreement on those things and Hillary Clinton is a much yez ear thing for them to rally around. I think that is a an important point. But trump strategists need to understand that these independent that dont like Hillary Clinton and dont trust her and are not comfortable with donald trump as commanderinchief. They have to give them a reason and its got to be about something forward looking not just something backward. I think we need to go down on the floor and dance. And start swinging around. The party is getting started. Thank you so much for now. Coming up, checking in on shares of intel. Lower after missing wall streets revenue estimates. Stacy smith joins us. Chip makers bottom line. And now the first major retailer is walking away from amazon for a surge in goods. Will more retailers follow their lead . Thats later. At the closing bell. Yeehaw sfrs of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. Intel just reporting Second Quarter earnings. Stock is trading lower after hours. With us for more on the Company Results is company cfo, stacy smith. Good to see you again. There are a couple Different Things on peoples mind after better than expected tech earnings so far. How is the cycle for personal commuting and demand for data center . Yeah. So actually just we came in slightly better than we had guided and i think we are set up with growing momentum in the back half. Specific to the pc market came in a little better tan expectations that we had. Data center was kind of right in line. Hair better than we thought. But pretty much right in line with expectations we had when we started the quarter. Stacy, Bill Griffith here. I keep hearing so much about the internet of things. Deal that softbank bought in part to get into the area, ge is in it. All these companies. I see the contribution that it makes to your revenue stream here. Miniscule for that area. For us it is a 2 plus billion business on the way it 3 plus billion dollar business relative to 6 billion business it is relatively small but in the industry it is quite large. Our play is for compute intensive applications and you may have seen this last carter in an announcement with bmw where we are creating a platform for automated driving vehicles. Those kinds of things, acute required in an application like that is enormous. We see a huge opportunity there. It is a place where it plays to our strengths and we are quite excited about it. Stacy, mike santoli here. Youve been active, closing the altera deal, in general seems to be in cannot sonsolidation deal is intels reaction right now. Looking for growth more importantly that can give us an advantage. We closed the altera acquisition. Doing good so far this year. Growing nicely. Generating cash flow. But more importantly by having that programmable block that we can integrate in with some of our other products, we can do product that no one else in the world can do. We good to customers and say we can give you a zeon processer with imbeddable programmable logic, that something no one else can do. As soon as your profits came out, it looked like a beat, can you address that . Whats the outlook for you guys . Yeah. So we were about a point higher than expectations that we had set, excludeing amortization. We are at 62 . Thats kind of in the high end of the range of where we typically operate. That point better than expectation was a result of our costs being bet are than i expected at the beginning of quarter p. What we said for the rest of the year is i guided q 3 q3 to be 62 . So nice healthy growth margins. What are you expecting to hear from analysts when you get under way with your Conference Call in a little bit . I think it comes back to the momentum we see into the second half of this year. We have insight into what we think some of the big cloud customers will buy. We have new product coming into the data center that we think will give them some capabilities that they will buy a richer mix of product for us. So that momentum in the data center and particularly in the cloud as we go into the back half of the year we think give us more than seasonal growth in q3 and q4. All right. Always enjoy talking to you. Thank you, stacy smith, cfo. That stock down 6. 2 . Bill, here is what is happening this hour. Federal Appeals Court ruling texas strict voter id law violate the voting act and demands changes before election. Supporters say that pro vents fraud. Opponents say it discriminates by requiring forms of identification that are more difficult for low income, africanamericans and latino voters to obtain. Southwest airlines investigating technical issues impacting all of its online plat forms. Customers reporting that cannot check into flights. Its website says we are working hard to get you where you want to be. Thank you for your patience. For the first time in his olympic career, Michael Phelps is named captain for the u. S. Swim team. He will compete in rio olympics next month in his recordtying fifth olympics. Phelps is 18time gold medal winner. And we end on a sad note here. Congressman mark takai representing hawaii has died of pancreatic cancer. He served in state legislature for 20 years before being elected to Congress Last year. He was 49 years old. Thats the news update this hour. I will send it back to you, bill. Sue, thank you, very much. Qualcomm, their shares spiking after reporting better than expected earnings. Jon fortt just spoke to company ceo and jon will join us with the highlights of that conversation. And musks plan for tesla, we will get a preview on that coming up p. If thats also true of a good car company. People have always bought cars. But we saw an opportunity in sharing cars. Bell. We will have full coverage with a live special with the event on the floor and the band is already getting started. Lets look at how we finished the day on wall street. A record breaking one. Dow and s p 500 closing in new highs up 9 and 36 points there for the dow. Nasdaq, 56, 1 , about 150 point away from its alltime high. After hours, movers on earnings. Intel, we just spoke with the cfo. Still lower by about 2 . Qualcomm and ebay up 6 . Nearly that much respectively. Bill . Back to the quiet of the New York Stock Exchange. You saw qualcomm. Big gainer there. Conference call starts in minutes. In the meantime, jon fortt just spoke with the company ceo. Jon, what did you talk about . He was very upbeat. Clarified things, saying smart phone demand not stronger than they expected in the last quarter. Big part of this quarters upside was a pop, onetime pop, in licensing revenue that had been expected to come in but chinese licensies had not turned over. They would have reported above, just above, the high end of the range without that pop. If they got that pop. Thats why they came in at 1. 16 versus 97 cents expected. They said to expect more of that in the next quarter. They are not sure how much. But unlike usual, in the past, they hadnt budgeted the licensing revenue coming in an they included it in guidance. They included it in the budge because they are convinced they will get a steady flow from here. China continues to be strong for them. High end of the smart phone market continues to have trouble. They are on schedule with cost cuts. Still expecting to have 1. 4 billion worth in this round once thats through. Of course activist pressuring qualcomm did exit their position a quarter ago and qualcomm appears to have turned the corner at least on revenue with those comps looking better than they had and not just because of the licensing revenue but that helped them on the bottom line. Guys . Jon, thank you. It is rowdy inside the arena in cleveland. And apparently rowdy outside. Aim eamon . Yeah, there was the access point under control. The skirmish spread down the street a little bit. We see more fighting on the street. It has become a bit aftof a spectacle here. Some of the mounted Police Officers said they are from ohio state university. They brought out just about every asset they have in terms of security on the street. It is moving down the road this way. We can take you down prospect. Kind after of chaotic scene. We will move down prospect and give you a sense of what we can see here. So far mounted police moved in. Cleveland Fire Department. Riot police. Extensive group of riot police that came in earlier. They have moved out of the way so far. Right now things are calming down again. One of those things where it flairs up, calms down, flairs up. Thats what we can expect throughout the afternoon here, kelly. Yes. Eamon, thank you for now. Michelle carusocabrera is in a different location outside the reaso arena, michelle . Reporter we are about half a block away from eamon. We see a Large Police Presence everywhe everywhere. Aim yn gave a good description of how they deal with protesters. Im not sure if you see in the sun, but this is a group of protesters that has been moving around this area a lot and what the police consistently do is herd them around. With horses or bikes. Partially to exhaust them, to remove them from other areas where maybe tension is rising because there are counter protesters there as well. To be honest, the amount of photographers and news people maybe greater than the number of actual protesters in this case. Theres a lot of very loud individuals. Were not even sure if theyre pro trump or antitrump, they are religious protesters p. Made clear they are very antigay. You can see the sign, america was never great. They have been out here almost all day. For whatever reason, this is a moment where it has gotten much hotter here this afternoon. You can see what the police are doing. Herding them down the street. Im assuming, kelly, you can see the large number of cameras following as well. Not just ours. We have michelle on the ground and eamon just outside the arena where i am, bill. We will keep everybody posted. Reminiscent, although on a much smaller scale, the Democratic Convention in chicago in 1968. But viewer reporters then. Tesla reporters, forward to details on elon musks report tonight. Phil lebeau has more on what is a highly contested announcement p. They changed the website name, too, right . They did. Intere they went from teslamotors. Com to tesla. Com. What we can expect is elons vision for tesla in the future. He did indicate in comments today to the wall street journal that there will be some justifications within the this master plan for the bid to acquire solar city. Basically why he believes tesla as a sustainable Energy Company, not just as auto maker but as sustainable Energy Company. It makes sense for this company to acquire solar city. Master plan was scheduled to be released, according to elon musk, at 8 00 p. M. Eastern time tonight. But within the last 10 minutes he also sent out a tweet saying 2 00 pacific, 5 00 eastern. So sometime in the next several hours we will see what the master plan is about and everyone will analyze whether or not his vision of the future of tesla, if it makes sense for not only the company, but also for investors. This is a sales tool to try and convince shareholders to vote for the solar city deal, right . Absolutely. It is part of it. Part of that along with his comments to wall street journal saying ive already talked with big investors. Theyre on board with why this makes sense. It is all about laying the ground work out there with those mub lick investors saying look, this makes sense. You should endorse what we are trying to do here. Let me pivot you for just a second. What are you hearing about the outage in Southwest Airlines website and reservation system . I just got an update from Southwest Airlines. Those flights that have not left the gate, theres a ground stop in order. And we have heard from a number of people who are on southwest flights at mid way airport in here in chicago. Delays in dallas as well. All of the big hubs, if you will, for southwest. This is one of those computer outages that we have seen with other airlines from time to time where they try to work their way through the system but as of right now we do know that there is a ground stop in effect for many of those southwest flights that have not left the gate. Phil, thanks. On both counts. Phil lebeau there living in a world of technology. One Footwear Company is saying adios to amazon after problems with counterfeit goods. That story when we come back. Is a ground stop in effect for welcome back. Amazon is saying byebye byeby birken stock. Cnbc. Coms ari levy has more for us. Ari. Thats right, birkenstock is the biggest brand weve seen leave amazon. It will no longer supply its shoes and sandals to amazon. Com and stop authorizing thirdparty merchants to sell on the marketplace. This is according to a letter to thousands of retailers and obtained by cnbc. The ceo david kahan says the Amazon Marketplace creates an environment where we experience unacceptable Business Practices which we believe jeopardize our brand. He goes on to say that policing this activity has been proven impossible. The problem, counterfeits are running wild. Brands such as michael kors, canada goose and crocs have experienced this firsthand. There is a ton of fraudulent activity from copy write infringement to manipulating sales and reviews. While amazon has been silent and declined to comment for this story, weve talked to dozens of retailers who are dealing with the loss of business to counterfeiters. Most wont talk on the record because theyre terrified of how jeff bezos would react, clearly in this case, birkenstock has had enough. You wonder if this is a negotiating ploy, right . I know they work slowly in retail, but still. Any company, any brand like birkenstock which is very long standing and very recognizable, if you want a pair of their shoes, you want a pair of their shoes. And obviously any company has to weigh whats the benefit of this added Distribution Platform versus the cost of losing out to some counterfeiters. Also its hard to see if they leave. Thats going to stop the counter fitting from going on in the biggest ecommerce place there is. It would benefit birkenstock to find someplace but if there were other customers buying from amazon, what did you get . If anybody is losing business, it wont happen, right . Its been a busy hour for earnings, as you know. Up next, well get a check on some of the other names making big moves in the afterhours segment. Stay tuned. Foand millions moremericans lwho feel its effects. S, lets walk together to make an even bigger impact and end alzheimers for good. Find your walk near you at alz. Org walk. Lets check on some of the other movers. Stocks making those big moves in the earnings after hours. Dominic chu has those for us. Lets talk about mattel, first of all. They come up in a loss of two cents a share. That beats analysts estimates of five cents a share. Those shares right now up about 3. 5 . Fs Networks Beating the estimate. Revenues coming in 479 million beats the 495 estimate. Those shares up 3 on 97 shares of volume. United rentals to cap it off up by 9 after a 2. 06 earning a share. Revenues slightly better, 1. 42 billion, analysts looking for 1. 4 billion. Those shares up 9 on 129,000 shares. Guys, back over to you. Looks like that bar for earnings got just low enough this season. Were just minutes away from intel, American Express and ebays Conference Calls. Well get you set up for those right after this. Just 30 billion . A bold group of researchers and computer scientists in silicon valley, had a breakthrough they called. The machine. It changed computing forever. And its been part of every new technology for the last 250 years. Everything . Everything this year, Hewlett Packard enterprise will preview the machine and accelerate the future. See star trek beyond. Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at Td Ameritrade. A couple of minutes away from Conference Calls that will get under way for intel, American Express and ebay. Just a quick check on how those stocks have been trading in the after hours. Intel the loan decliner down 1. 25 on a slight revenue miss, but well hear from stacy smith on that Conference Call coming up. American express expenses down, they beat on the bottom line by quite a margin there. And then ebay up 5. 25 . So weve got a lot going on here, kelly evans, and so do you. Youve got much more coming up. I do. Its a huge night here at the convention. Weve got speakers including senator ted cruz, Vice President ial candidate mike pence, a lot of focus on whether ted cruz will personally endorse donald trump or not or whether it will be more focused on why hes preferable to Hillary Clinton. Well have live coverage here on cnbc of that convention and the speeches. 10 00 p. M. Eastern time. Make sure you guys join us. Mike, the night is young here. Give us some parting words of wisdom. I saw a pattern in all those after hours action just mentioned on the stock front. The bar is low enough. I dont know if the market will reprice and expect more out of these companies as they report next week but it seems right now they have hurdled pretty much low expectations. Cant wait to hear marco rubio and ted cruz tonight. We will hear their words but we will watch their body language very carefully, kelly. Oh, yeah. Oh, yeah. Youre picking up behind me on the floor here, weve got many, many hours to go. Well see you tonight. That does it for closing bell. Well see you again tomorrow. Fast money begins right now. This is fast money starting right now on cnbc live from the Nasdaq Market site. Im simon hobbs, good afternoon. Our traders are pete najarian, tim seymour, Karen Fineman and derrick adomi. Republican president ial nominee donald trump rises in the polls. Could it be more than just ra coincidence . We will explain. Plus its an earnings extravaganza. Intel, qualcomm and American Express all reporting. Were over those Conference Calls and will bring you the very