Sentiment in about an hour our road map begins with amazons rough quarter, reporting its first yearonyear profit decline in more than two years. Shares down 6 ahead of the bell is now the time for investors to get in plus, turnaround for the chip makers intel delivers a big earnings beat demand far outpacing production. And the case for wealth taxes. What lloyd flablankfein says he be willing to pay higher taxes for. Lets start with amazon, though. Earnings miss, disappointing Holiday Quarter guidance weighing on the stock as the company ramps up spending on oneday shipping amazons earnings release, jeff bezos said, quote, customers love the transition of prime from two days to one day theyve already ordered billions of items with free oneday delivery this year its a big investment, and its the right longterm decision for customers. Weve been down this road before and their track record, jim, historically is pretty good on this yes, i think that theres a perception that they were down beat i think that perception is wrong. I think that they are quite confident that they have what people want. I think they think its going to be a great christmas if that was somehow lost in translation, thats a mistake. Now, there are people who are selling it my experience is when you see this stock selling down like this, usually the brokers have got some order saying sell down to 1650. So they nail that. Then at the end of the day, they bring it back here and go to the customers and say, hey, listen, i did better than the average price. This stock is a buy, i believe, by next week, midweek, when we realize what theyre doing is what Everybody Needs to do, which is one one day one day is all we want the customer is always right theyre going to give you what you want theyre backing it up with the spending dont you love that 100,000 people hired in the quarter. Because theyre a juggernaut. 100,000 people. Thats a lot of people. A lot of people they have a lot of business you know what, this has become a very anecdotal story theres questions of people saying, hey, i see a lot of your trucks on the road is that costing a lot . What is this, fifth grade . Its costing what it needs to cost yes, you see amazon trucks all the time thats because theyre taking product to where it has to go. So i think this is ridiculous. I think they put out these numbers and people think theyre down beat and theyre wrong. Theres a couple silos of worry here one is revenue guide the others, aws deceleration 35 is the lowest since theyve been giving us that data if you asked me what the negative is, when you look at azure, are they doing better but azure, amy hood said, listen, were have a little slowdown too, but its a slowdown versus incredibly large numbers. Take a look at intel and what theyre saying in the data center and you know data center is on fire we havent heard what googles saying were going to find out this week i think thats going to be the most important one because if google really started taking share, youll suddenly have an explanation for this right now i say its all systems go the people are worried about amazon are the same people who turn out amazon time and time again. Days like today where they take it seriously and say, wow, av amazons in trouble. Amazon is not in trouble amazon is doing what the customer wants, then it tries to figure out how to do it more cheaply. Its brilliant i think there are some that would expect it because theyve had a deceleration in this quarter in the past. Theres also a holiday in india some people are citing that has perhaps depressed some business. Interesting when you think about the longterm prospects for this company. Ten years ago, even five years ago, were not really talking a great deal about Amazon Web Services or about advertising, which are now the key parts of the profitability of the business so glad you mentioned advertising. Very good, by the way, in the quarter. Up 45 37 growth rate last quarter. But its the gloom thee tsis trying to bust theyre not gloomy theyre not worried. They are just matter of fact doing their job, getting their assignment right they are belichick they are the patriots. If you think theyve lost it, if you think brady is retiring, if youre upset the fact someone stole bradys jersey, forget about it its fine. Theyre going all the way. They have Home Field Advantage theyre going to be in the super bowl go out and buy amazon. Super bowl 100 days away from today, believe it or not its amazing to have it already be green bay versus the but i just like amazon. Dont buy it now the people who are selling it, theyre going to sell it all day. Bespoke today says theyve had 72 earnings reports since october of i think 2001. The past 72 reports, its gapped down six plus, about a third of the time so this is not unusual boy, thats good information. What it says is i always feel like the people look at their projections and decide amazons worried or not and what Amazon Amazon is just, theyre not as bad as netflix on protections, but amazon is very excited they know they have a winner with one day then they have to do one day then they figure out how to make one day cheap. Suddenly you buy it and the Gross Margins fly up and advertising margins are good a good job on web services you say, hey, i got a chance to get in thats what i think. Doesnt mean walmart cant be making end roads walmart is definitely doing well but theres so much business walmart is doing well. Goldman downgraded target today. But it was really just saying, listen, weve been right on it i think the american consumer, and if you judge by what visa said, really big numbers on consumption f you go back to what jamie dimon said, the American Consumers are spending their head off, and a lot of it is going to amazon but theres enough to go all around there really is. Costco, by the way, having a very good quarter. You dont begrudge the target call, do you its having its best year since the 90s i love an analyst that says, look, this is going to perform the best, then it does perform the best the analyst says, okay, i had a conviction buy on it now ill just make it a buy. I still like it, but im declaring victory. That was a fabulous call they made on target fabulous i really still like target target is good its had a very good run given that last earnings report. That was a great you know, Brian Cornell has put it together these companies are pulling away from the pack. I want to see what what its interesting. Nordstrom had a pop for about 38 hours, right kohls had a pop for about 15 minutes. Its these companies you buy every time theyre down. Im glad we put it up some people may hear it and not know what youre talk about. Thats what were talking about. Were not putting up macys or vf corp. Today. Lets talk about vf corp. On the call, theres a sense that the negativity is being busted, the negativity has to do with granularity the beginning of the quarter was not as good, and it got better i think theyyoure going to se people rally toward vf a very big slow down in vans apparently theyre saying things very reassuring on vans. So i dont think you should throw that stock out its been a winner they got rid of jeans. I think were going to come out when the smoke clears. This has happened all week the Conference Call is going on while were yapping about it it turns out theyre saying Better Things than people realize. So dont throw away vf so fast because of vans. A div hike out of vf and visa the problem with the visa call is your eyes glaze over they talk about challenger banks. They talk about wallets. They talk about all these different partnerships the thing they should talk about is the 12 increase. Thats what matters. 12 increase in commerce al kelly so its a little boring no, im talking about this is like its the jets playing the skins. Oh, look at this its so boring i dont know al kelly has succeeded anyone whos having sleep problems, theres lunesta. Theres cbd, david then theres the visa Conference Call i will keep that in mind because i have been having a little trouble you read this call. You will not get past page i get to page three and ill be back out. If you can get to page eight of this visa Conference Call, im telling you, thats because you have pins in your eyes memo to al kelly, please, just give us a Little Something thats more interesting, please. Id rather read that than watch the jets well, i mean. Meantime, theres intel better than expected quarterly results, as david said earlier company saying its data business turned its best performance ever, boosting the fullyear guide. Well talk to bob swan later this morning youre going to have fun. I think its already been taped, but yeah. I had a little to do with bob because he came on, didnt want to take the job, then he took the job. In retrospect, it was a great job to take. Any time you have more business than you can handle and you start making the right product by the way, please do not sell amd on this what hes saying is business is fabulous theres tremendous demand. And by the way, data center is really good. So the read through to nvidia on the high end does make sense data center is the key here, which goes back to our discussions about azure or aws and even googles cloud offering theyre talking about excuse me thats what they call the guy who runs it. Apparently the guy is really killing it theres so much more business. There was a pause in data center everybody admits it. No more pause. The spending is back there had been a saturation. Now the spending is back look, intel has every single product line they spent a lot of time talking about their mobile chip business is automotive the outlier here theyre saying dont worry about automotive industrial is pretty good. Texas instruments is in opposite world. It really is the data center side by the way, that was a punchy Conference Call. I kind of liked it, if were talking about Conference Calls that can keep you awake. The intel Conference Call was a good one it was orchestrated much better. Swan did a good job. I think youre going to have a great time with him. Its on tape, but were going to enjoy watching it oh, tape . Yes, its already been taken care of. Live to tape. Sometimes we do that when time is at hand. Ive never seen you do it i try not to. I always love it when david is uptown. You know whats really important. First of all, no tie second, makeup kind of shady no makeup at all. I always say you look sallow. Maybe something happened maybe you ate something bad. Do i look sallow . Yeah, you look sallow theres no makeup on me well, you break in with sallow comments. The story speaks for itself typically when i come on later in the day anyway, i just think that intel has a very good quarter. We havent talked about wework yet. Why would we . Theres always news there the journal piece is crazy town jeffries does cut softbank to hold today and bloomberg is reporting about a vision fund. Listen, there are any number of questions in terms of softbank you have to raise them given the 13, 14 billion thats equity, really, not to mention the debt part of it they put into wework for whats going to be an 80 economics of company that had new Money Valuation of 8 billion now thats not going the right way for them well see what theyre capable of doing whether they remain in place and whether or not they can actually forge a way towards profitability. Profitability profitability profitability profitability . Marcello was personally engaged in negotiating that exit, which has gotten a ton of controversy, as we know. I believe that to be the case youre going to have thousands of employees out on the street who are going to receive severance, who are going to Start Talking even more, raising perhaps a cacophony of some kind the work force needs them were short employees. Well, they can go work for amazon apparently. Theyre hiring what kind of jobs do they get . Remember davids famous 13th amendment piece that you did, violation of slavery, remember that piece yes still unbelievable. What town was that in pennsylvania, i believe. People were working 26 hours a day. That was grim. But amazon has gone a long way. Responding to the likes of Bernie Sanders and his criticism. Im glad you said that. Of course, there are many extremely highpaying jobs, the likes of which would have found a home here. They should do hearings in washington about companies that are gems amazon creates a lot of jobs and david, one day thats remarkable the hiring pace is enormous, which is why of course it costs so much. But theres just a lot of good news. Were going to see. Amazons a huge piece of triple qs when you see futures, youll understand why well get cramers mad dash and count down to the opening bell well talk about the other names we have on the list today, including tesla and facebook, pg e theres a ton. Dont go away. Alexa, tell me about neptunes sorrow by olivia watson. Alexa its a masterstroke of heartache, brutality and redemption. The mist crept into the pivot hole beside her. Youre late. David what did you think of the book . Its a. Masterstroke of. Heartache. Brutality. And redemption. You didnt read it, did you . I didnt. But i will. The lexus nx, modern utility for modern obstacles. Lease the 2020 nx 300 for 349 month for 36 months. Experience amazing at your lexus dealer. Sneb always a nice moment in the week when we get to the final mad dash an it has been quite a week. So much so that we didnt get to nokia yesterday, which was down sharply after cutting its dividend jpmorgan david, be careful. They paused the dividend thank you for correcting me what this really does is something youve said many times. To go up against huawei is almost an impossibility. Theyve not had Free Cash Flow in three years but theyre trying to supply the world equipment for 5g they are number two, up against huawei its not in the u. S. , where we dont accept huawei. Barclays downgrades it to equal weight they say the delivery is delayed, cut to 2020 guidance. The margins are being crushed here theyre basically saying, listen, were going to get our house in order were going after huawei and david, i know nokia is named after a river in finland do we have a 20year on nokia, just out of curiosity back to the hand set dominance days oh, my. Yes, there it is. There we are. So far thats not you know, this is base camp one, base camp four this is where we lost mallory. Thats not longterm value. No, no. This is value destruction. But they have decided, listen, were going to compete with huawei if you compete with huawei, we have to be able to compete with the Chinese Government, which by the way theres a lot of nice spats back and forth between the Chinese Government and pence huawei says its a private company, nothing to do with the Chinese Government i dont know. I think to go against huawei is to do that to your shareholders. Sales in the u. S. Still up. David, one of the great things about stocks, they stop at zero. They do only another 15. 5 to go you cant go here, david. It doesnt even work look at that very positive. Oh, there it is i made it. I got it well, 84 , david. Ill cover it up. It feels very dolphin like. Dont go anywhere as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Ptech students around the world. Tell him were flexible. Dont worry. My dutch is ok. Just ok . Tell him we need this merger. Its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. As we wrap up this first big week of nonbank earnings, s p half a point from its record close, shooting for a third week up fighting the amazon tide today, though nus. Ousen ll in abt ve mite pacifica ted goin oneighbor yes. Takin it off road Station Wagon . You know its an suv i know for fact your suv does not suck. Why is that . It aint got that vacuum in the back we got to go. Vacuum in the back, hallelujah youre watching cnbc squawk on the street live from the Financial Capital of the world the opening bell in four minutes. Happy friday, everybody. Its been a busy morning so far already. Billionaire investor ron baron says he expects the dow to hit 6 650k in 50 years listen to what he told becky quick this morning if we invested in this turmoil in 1969, you would have made 25 times your money i think the 6. 5 annual growth is going to continue on average for the next 50 years, at least. Then what that means is that dow jones, which is now 26,000 or 27,000, up 25 times, thats 650,000 on the dow all right he loves big numbers with long time horizons. Talked about test will bag talked about tesla being 20 times your money yeah, look, i like a lot of things in the stock market, but if you told me the 30year treasury would have been the best investment and risk free, it tells me while ron is internationally positive, theres a lot of ways to make money. I dont want people to feel too complacent here. Theres a lot of good stocks, a lot of bad stocks. If you want to do the s p, you really havent done anything of late, its fine. But dont expect that. I think thats a way too great