Josh, great to see you. Glad to be here a tight trading range for the major averages this week. Yeah. How would you sum it up so far. I think whats interesting is there seems to be this rotating cast of stocks that are working against the averaging, so today is transport i think three out of the worst stocks are railroads, some of the big ones being hit hard. Theyre not very important in terms of waiting, but very important in terms of people paying attention, either because theyre technically inclined and because they think thats a important technical indicator, or theyre people that think its an economic story that needs to be understood, and theres some skinned of bowling pin effect but i think the bigger story is that some very important stocks to the market cap weighting of the s p, netflix being a reasonable story as well theyve gotten smacked down where they could have broken out. And netflix having a tough week. And thats got an impact on psychology and on the construction of the big tech etfs, et cetera. Theres a lot of flowthrough with that story. How important is it to our i think it will always be important psychologically, where its the faang names considered to be tech or at the end of the day theyre very big caps. People look at it for sentiment, what the biggest, most wellrun 25 of the it s p, and its the reason we are where we are, the big value stocks have not done much a lot of people if the momentum will continue, you need the leadership i dont think thats controversial. You know, your story is one of the important stories, which is csx down 10 . A wild move trying to understand whats going on you talked to the ceo earlier, but not a lot of answers really. Yeah. I think what they had said is what we have been seeing, a softening in the industrial part of the economy manufacturing have been softer, some of the commodities, the intermodal side of the big, more consumer facing is already really sort of falling off the cliff. Thats been industrywise. For csx, some of that is tied to the but overall, i think the real, and this is based on my conversation can jimfoot, is its hard to get your arms around it, and i think those types of comments and whats thats meant is part of the reason youre seeing such wall streetness right now there are these question marks. Its a huge split between the companies that people who have been around for a long time traditionally looked at railroads, and they have taken their economic cues from whatsing happen, but the consumer economic is on fire dimon said it yesterday, can you look at discretionary giants, university of michigan surveys until the cows come home you wont find ago indicate art that the consumer is anywhere near spending and enjoying frankly from the boom in the stock market those two third are highly correlated and it seems like that story has at least temporarily shrink in importance to investors they dont care as much about those stocks as they might have in prior generations. Certainly csx has said regard lets drill down on the base stories were watching. Leslie picker has details on bank of american, bob pisani has the retail banks leslie, lets star with you. Bank of america shares get a boost today. The bank delivered record firsthalf profitss. And it may by dented by the yield curve, and if the fed funds rate is cut later this year, he cut lower guidance from 3 to 2 can you see when he made those comments, the stock ticked down slightly, but has since recovered, guys. We have a slew of regional banks out with earnings this week bob pisani has more on that group. I love regional banks, because you get a read on loan growth i like what im seeing u. S. Bang comp, we were talking 2 , 2. 5 a couple years. Comerica, pnc also in the 3 rage u. S. Bank corps, credit cards, josh was talking about the consumer, up limb 8 these are terrific numbers overall. Lets look at the prices of the stocks here, all doing all right. Theres no tolerance on missing earnings and no tolerance for poor guidance. Bob, thank you. For more on all of this, lets bring in scott rand. Scott, what is your take on the banks . This Earnings Reporting season is all about nim, about lone growth, about expense cutting, those types of things, so really the regionals thats going to kick in next week, but what we have heard so far is, you know, some of these larger bank these guys are we going to have two . Three . I think in the bigger banks, thats just one of many, many moving parts, but certainly its important. I think youre coming back to the bank sures, certainly what the fed does will have a big impact on the financials and loan growth, as well as just economic activity. As we come down the pipe here. The banks are the other big indicator of where were at right now, right its hard to say that and then not consider how many lending activity is happening in shadow markets not captured by regional banks then you look at they deposit institutions that dont have a lot of things that Consumers Want i think Construction Loans are absolutely important, thats a different generation, so i think you said to think about Financial Services in its totality a lot of big banks are dipping down into more consumer bit. How would you rank things so far . You know, david, if you look at the consensus, consensus was down 2 , 3 , Something Like that who think it will bless closer to flat. So really the way we are looking at it is the market is looking well beyond this lets face it, whether earnings are down 2 or up 2 , its not a good earnings season i think theyre trying for trade positives. Theyre pricing in the fed having the markets back oy think ear stewarting to see some chasing here. Valuations are not stretched if we can keeped economy growing at a modest rate, you know, you could see surprises to the up side, but the 800pound gorilla in the room is they trade negotiations fall apart, everybody walks, you know, the market is not going to go up on that the risk is to the down side certainly would seem to be. Thanks, guys. Lets go over to mike santoli to the dashboard he likes this time of day. Were going to keep it real day. Not Much Movement. Wait until later this about patterns and how stocks are traded, more skewing later in the day, and then hard to get excited, and some emonth, so were waiting for netflix well comb through it in about at hour, here as the big picture, though. This is movie tickets sold since 2002, and number the film releases both heading down, both down more than 20 . We focus more on paid tv subscribers, and of course thats down more than 10 in the last lets call it six or seven years. Not claiming its all coming from the box office losses, but its very start exactly how this has gone right now, this is a summer where there is a lot of panic out there. This is real depressing, what is up with your theme . I did a personal growth selfhelp theme one time and that seemed fake youre saying millennial ruined hollywood is that the big yes, no offense to davids presence here. Yeah, i think ill just take not Much Movement for 500. I caught that reference from hemingway. Hes a literary guy. There you go. Were counting it down were going to bring you those numbers, and expert analysis. And speaking of tech, the battle in the beltway is raging on after the break were going to ask Silicon Valley congressman rho khanna Housing Starts fell in june, and Building Permits plunged 6. 1 so far below estimates of a 0. 3 drop is. Big hearing in washington this week, and any antitrust investigation of its own into amazon aditi roy has the details. Reporter hi, david european regulators will examine whether amazon is breaking in the antitrust rules about the way it uses daughter it says the investigation will look at dual role as both a retailer and a marketplace the regulator began questions merchants about practices last year in a statement amazon says we will cooperate fully with the european commission. If the investigation finds amazon broke competition rules, it is company could be fined up to 10 of Global Annual revenues aditi, thank you. Facebook facing another hears today, this time before the house financial committee. Ylan mui has more. Reporter lawmakers wanted the company to commit to a moratorium on libra, or at least start with a Pilot Program facebook said no, so congressman brad sherman says hes taking it to the top. Zuckerberg cant print money, yet. And problem number two, zuckerberg is under attack, because he invades the privacy of ordinary americans and sells it to the highest bidders. We need zuckerberg here. Reporter guys, chairwoman of the Committee Maxine Waters said today was just the first step. For more on the growing calls to regulate big tech lets bring in representative rho khanna amazon not in your direct, but im curious to get your thoughts on the eu taking seemingly a more aggressive stance on much of our Large Technology companies than we as yes have, and specific to amazon and the latest that may be having to deal with in the eu. Theres no doubt we need stronger antitrust enforcement we shouldnt allow amazon to privilege its own product on its plate form we should maybe issue its not using sellers data, but the eu is not a model for america to copy its been a disaster when it comes to Tech Innovation they dont have the biggest success has been spotify or s. A. P. S enkts thats a good point. Look at the wireless industry, too. Thats a separate conversation, but they overregulated that and you cant make any money at all. With our own department of justice, and ftc, sort of splitting up amazon, going the, facebook, apple, do you have expectations those investigations are going to lead anywhere i think it needs to be done in a thoughtful and nuanced way. I think we need to be far more scrutiny placed on future mergers. We should not have companies be allowed to make horizontal mergers. Second, we should make sure companies arent privileging their own platforms but what i oppose is just a reflexive call to break up companies, or a call to Fine Companies without going through the Due Diligence of a process, and looking at our law, which is about consumer welfare. Europes law is about protecting competitors, our is all about consumers. Congressman, we have seen some legislate introduced in congress to regulate big tech. Are any of the proposed bills ones you would support what is the right way to basically govern this sector, this industry . We definitely need Privacy ProtectionSpeaker Pelosi asked me theres ten provisions i wont go through all ten, but two of the main ones, we should have companies required to get the consent of individuals before collecting their data, and we should have as individuals the right to know whats happening to our data and whether its being transferred i think thats something that should get bipartisan consensus, even they companies have said we need better wellregulated calls on privacy and more regulation congressman, i want to shift gears for a moment youre on the Armed Services committee. The house passed its version of the fiscal 2020 defense bill in terms of tech huawei has been swept up in the trade talk between the u. S. And china, but from a legislative standpoint, is it going away as a National Security threat i dont think its going away i challenge for us is, as you know, huawei produces most of the 5g technology, and so i do believe we need to do more in the United States to make sure that we are prepared to have 5g in this country, and we need to make sure were doing more in developing Artificial Intelligence and developing v official intelligence that can be used from our military. In china, they can use all of the companies for their National Security fortunately in our country, we dont have the government appropriate the private sector, but that does put a greater burden on us to develop some of the cuttingedge technology. Finally, congressman, with you you surprised at the skepticism, or cynicism that david marcus was met with in front of the your colleagues today and the senate yesterday i was not, especially in light of the Cambridge Analytica scandal, but i think we need less political slogan deering. And let grandstanding. They are developing lib would overseas, because we dont have regulatory certainty or clarity, and we want to make sure we dont lute out to china, and its not just facebook, theres bit counsel, theres ripple. Instead of just scoring appoints consequence it may challenge the wall street oligopoly, and help reduce financely financial costs. Representative rho khanna, thanks for joining us today. Thank you for having me on. Where to begin with all of that lets focus on facebook. Still printing money in many ways, does any of this end up making a big difference. It could, but it has not yet. That 5 billion fine was one of the most obvious upside catalysts. Isnt that amazing youre saying that right now. I could give you theres nothing wall street likes more than hearing a huge dollar amount fine, because then theres finality first of all, the shareholders pay the fine, nobody running the company does and second of all, its over its over. So lets put that aside. I heard the phrase we dont want to lose out to china in cryptocurrency i dont know how to process that china will not allow that to take root without total control. Im not sure theres a competition for creating cryptocurrencies its more a question of whether they actually be used. He made the comments it eases transactions on what planet who is doing transactions easy it would be easier to have a block of gold and chip off of it hopefully that changes, but the reality is we need rules before theres mad adoption the stuff with amazon and google im a shareholder of both, google with a straight face told congress that it has competent itition in search. They cited binge and duck duck go, okay duck duck go is a major competit competitor. No other comment there. I understand its unsavory, they say, wow, this Company Makes a holder for your cell phone, were going to make our own doesnt this super market do that at merchants know thats a risk they run. Doesnt costco do that . They have a kirkland version of whatever youre about do buy that a supplier has. You think theyre not using Customer Data . I do agree with mr. Khanna about the rhetoric and grandstanding does this affect the stocks . No, not really talk to me when the rubber meets the road that could be years from now i think these Technology Companies are way ahead of congress they have been planning for this bezos already set up shopping. Hes probably thinking three steps ahead. Josh, thank you okay, so we have 35 minutes before the bell. Right now major averaging are trading lower. The dow is down 76 points right now, and the s p is trading below 3,000. After the break, Goldman Sachs out with a note on a number of stocks well get the word on the street on the names they say to avoid. Shares of qualcomm after the Justice Department is weighing Justice Department is weighing in on that important ftcst trac, antitrust ruling against qual y qualcomm antitrust ruling against qual y give me a quality fund that helps me get clients closer to their goals. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back time to get the word on the street Goldman Sachs downgrading to sell this morning. The firm sees risk for power brands with high exposures to Department Stores and to the north american market. The mall as well they expect headwinds to intensify. Expecting homebuilder management to. The china team returning from a visit of local suppliers, based on those chex, they expect it may be able to ramp china production faster than anticipated. That stock is up 1. 5 right now. Josh, what do you think of any of these names i think we sometimes forget how hard retail is they rally sometimes on short cover, but its a relentlessly difficult business for everyone. If you need sellthrough from someone elses story unrequited love affairs we never know, do you love or hail them . Now it seems like he as its not a Good Business i would be bronc if this turns into it says its batteries, logistics. I would love for it to if they downgrade no matter what happens with the stock price, all of the other automakers into the fray, probably ten years earlier, but i dont want to be a shareholder, because its a good cause, and so i always have it in my too hard pile. Im pretty humble. Got it. Speaking of 30 minutes left or so in the trading session, three things are driving the action. And we are, of course, awaiting netflix and ibm, ebay as well. Csx, as we said at the top of the show, and todays beige book says it sees the economy as generally positive time now for a cnbc news update with Contessa Brewer. Congress is examining the troubles with the boeing 737 max plane. The subcommittee heard from a man who lost his wife and children if the conduct continues, another plain will dive to the crown, killing my, all of your members, all the members of your family, it is you who must be the leaders in this final for the ceiling of notre dame is still torn apart, and the site is correspond in burned debris. The number of people dying from drug overdoses that is fell, according to a preliminary report by the cdc. Thats the cnbc news update this hour, back to you. Thank you, contessa over to mike santoli he second dashboor of the afternoon. Talking about not too Much Movement here. You guys were discussing how some of these supposed bellwethe