Transcripts For FBC After The Bell 20240714

Lows. Almost 2 3 of the indices loss is boeing. S p 500, nasdaq ening in the red yesterday after hitting record highs. Connell a little bit of a pullback. We look at big names we brought you after the bell are closing out today. Tesla plummeting following big quarterly loss. The stock is down more than 13 1 2 . Lauren look at ford down 8 . Disappointing earnings results. Facebook erasing earlier gains despite a earnings beat. We told you yesterday a rise in daily active users. Connell at the white house the president holding an event celebrating the Administration Commitment to help American Workers. Well bring you headlines at this hour as well. Lauren were waiting with bait the brett with latest earnings from amazon and parent alphabet. Todays panel, adam lashinsky, Fortune Magazine editor. Youre alphabet spouse. Which means your wife works at google. That is exactly right. Lauren hitha herzog, chief research officer. Thanks for joining us, as we await on the results start with you. Connell jump in for one second. Amazon you can see falling like that. Eps, earnings per share for amazon in the most recent quarter coming in 5. 22. So comparable to estimates. That would be below the estimate of 5. 57. So that maybe one of the reasons were looking for the other headlines right now that amazons stock is immediately selling off. Alphabet, on the other hand, googles Parent Company is up almost 4 . Well take time, talk it through the panel on amazon a little bit. Lets go to Deirdre Bolton in the newsroom to throw more details together on this figure. What do we see, deirdre . You highlighted what is really pushing the stock down postmarket. You can see it falling as you alluded to. They missed on earnings. That is why there is all this pressure. Wall street was looking for earnings of 5. 57 per share. They posted 5. 22. That is a clear mess. Highlight on revenue, they exceeded expectations. The Company Posted 63. 4 billion. That is better than an estimate of 62. 48 billion. That is a rise of 18 quarter on quarter. But the miss is big. We were be remiss if we didnt mention it. One of the things i will start looking at is the year on year. There were a lot of people saying that their costs would be going higher. This would or could eventually eat into these profits margins. So im guessing that is part of the problem. I will comb through the numbers, connell. When i find more. That is the headline. A miss on earnings. Connell miss on earnings. Stock is down 1 on amazon. Well go back and forth. These are both huge companies. I mentioned googles stock was up. Well get back to it, alphabet. They beat on earnings. Again well come back to that. Adam lashinsky, let me go to you. Well talk through amazon for a minute. Well obviously have time, take our time, get to the alphabet figures. I want to point out they were better than expected. Any, any take on the miss at least on the bottom line here, adam . Interesting thing the miss on the bottom line, were talking about amazons bottom line. Wasnt long ago there was no bottom line. They are starting to well in large part to the Amazon Web Services business which is not only growing quickly, but makes a lot of money. Investors expect a lot more when all they expected before was toward revenue growth. A miss will hurt. Down 2 for a company like amazon is not biggest thing in the world. Connell no it is not. Lauren they were concerned that revenue were slow from previous growth. Came in better than expected at 63. 4 billion in the quarter. They also started that one day prime free shipping. That obviously is a cost. 800 million was the cost. Do you think that could be one of the reasons their bottom line was missed . Right. The cfo alluded to this in the last earnings call. I think it raised a lot of eyebrows when he alluded to it. This is exactly what were seeing there. The actual investment was 4. 2 billion so prime could go to oneday shipping. While they are trying to focus on topline growth, clearly having these kind of costs impact the bottom line. You will see that come in the eps as we saw being reported just now. Connell lenore, quick take on amazon . Adam said not the end. World but the tock is selling off on a miss on eps. What is your take . It is the first eps miss in the past seven quarters. Yeah it is not great but it is not that bad. I really want to see what the mix is though. If he look at the First Quarter of 2019 you had where music, video and aws was only about 1 5 of total revenue. But it accounted for 50 of the gross because amazon has been trying to focus on those areas that have higher margins. Im betting part of this is going to come from increased costs in shipping as they moved to the oneday. If you look at the past trailing 12 months, their shipping costs were 30 billion, more than all of aws revenue. They have taken a hit on that. Connell over all margin of 4. 9 for margin. North American Business relative to expectations did better than international expectations. Relative on north america, a little below on international. What about alphabet. This is much different picture. If you look at the postmarket trade, Alphabet Google moving much higher. Beat on top and bottom line. Wall street was looking for 11. 30 on share. A beat, slight beat, 38. 1 a was wall street was looking for. Alphabet posting 38. 9 billion in revenue that explains the green on the screen. I want to highlight something for your conversation on amazon, if i may, i noticed that the Web Services Revenue is a little bit light. It is 8. 38 billion. Versus 8. 37. Wonder if that was not part of profit issue. I continue to go through the numbers. Want to discuss that with the panel. Youre going through all the numbers. Connell lets do that now, before we get back to alphabet. I think that is interesting, the growth there is tremendous growth on relative basis but the growth in web services has been slowing. I think the average growth was 47 for years. Fourth quarter of 2017 to Fourth Quarter of 2018 or over that year. Now it has been coming down into the mid to high 30s. As deirdre says, a little lower than what people thought. A big deal what do you make of it . It is. It is a big deal first of all. I think they had alluded to this in the past quarter. Wed seen this drop happen. To your point it has been happening for the last couple quarters. With that said, i think increased competition. Amazon is the not only web services on the market now. I think that because we saw that, since, again, since last quarter, were seeing this sort of trend lower. So i think this is just sort of we knew this would happen anyway. Lauren alphabet the stock is jumping 6. 25 now. Lenore, looking at overall ad revenue, ad revenue in the quarter is 32. 6 billion, who you are you reading that number . I am worried about them Going Forward, that such an enormous portion of their revenue is coming from the click advertising. As content is getting to the end consumer in different ways, seeing that with netflix, were seeing that the consumer more savvy how they want advertising to get to them. I see that click revenue is roughly like 80 some percent of revenue. That i think they will have to focus on, getting a little more sophisticated. Connell what do you think of that adam . Im sure you have that. I have a different take completely. What we see from facebook yesterday and google today, these two companies more or less completely dominate the Digital Advertising market, they continue to dominate the Digital Advertising market, rest of us, newspaper, magazine companies, just dont have it anymore. So google is addressing their mix. That is through their Cloud Services which gets to our conversation about more competition for amazon. But for the timebeing they and facebook own this incredibly lucrative market. Lauren this is also, lenore, where regulators and investigators come in because theyre looking at dominance for google and ad business. Tulsi gabbard was the most searched candidate after the debate. She is suing google because she says google ads suspended her account. That affected her fundraising, et cetera. This puts the company in hot water because of their dominance. She complained that her emails actually went to spam at higher rate than the other candidates emails. We, google still really does have to face this kind of potential evil empire image that it has got. It does control so much of how we get information. Connell you havent had a chance, to talk, adam as much of that part. We talked on the show yesterday, with regard to facebook, comes up with all the companies, Regulatory Risk Going Forward from alphabets point of view. I think this conversation will completely mirror the trade dispute conversation and Interest Rate conversation that we have whereas this is a very serious, longterm concern and almost completely meaningless to nearterm earnings. Youve seen this now today with google and yesterday with facebook. Connell did see it with facebook. Lauren lets bring in hitha amazon is not immune to the vests. The question is, how much patience, even if they go nowhere, even when you say noise, what is the end goal of the investigations and what is the patience of shareholders . Were talking about shareholders versus the actual customer too. When you say to the end game, again, this is multibilliondollar company, so of course regulators have going to investigate it. Even if there was a negative outcome, im sure investors would probably recoil for a little bit. But at the end of the day the Amazon Customer is so loyal. They do not want to they dont want to stray from the fact this is a very easy way of shopping for things. Lauren yeah. From that topline growth, that will not have an impact on the stock f youre looking at it from the bottomline growth, when we Start Talking about potential fines that the company could incur if regulators do find they are this violation of a bunch of laws of a bunch of laws and regulations that could have a major impact. Lauren amazon said they had more prime members on on july 15th than any other day. The customer is certainly shopping on alphabet. Connell amazon authorizing a stock buyback, 25 billion, classc stock. That is looking from the news release. Amazon down by 2 . Alphabet, sometimes the Options Markets get it right, they were pricing a move up or down of 6 . Stock up 6. 25 after the earnings release. Intel reporting its Second Quarter results. That is another big one to get too. Jackie deangelis joins us with those numbers. What do we see, jackie . Reporter connell, intel soaring because we have a beat top and bottom line. Revenue 16. 5 billion, surpassing the 15. 7 expectation. Earnings per share 1. 06. That was well above the 89cent estimate. Where intel tripped up last quarter was on the guidance. It gave weaker guidance, even though beat on top and bottom line. That was a problem. This quarter raising the fullyear revenue outlook, up 500 million from april. So investors are looking at that in a positive light too. Before the earnings came out we saw headlines regarding apple acquisition of intels smartphone modem business. That is in fact happening. That will happen for a billion dollars. Apple is getting a majority stake in it. After intel announced it would be exiting the 5g mobile chip business. The transaction is expected to close in the Fourth Quarter of 2019. I will note that intel paid 1. 4 billion eight years ago. So unloading this asset. This is apples second largest acquisition. So it also really makes a statement. Final point, intel paid good dividend this quarter, 1. 4 billion. It used 3 billion to buy back stock, guys. Connell jackie, thanks. Adam, what about a quick point on big picture chip demand, semiconductor demand . We had some stories, so many discussions about the trade war with china would kill these companies, maybe less of an issue for intel than some of the other Chip Companies so reliant on Business Companies like huawei and other companies in china. Now you have strong numbers coming out of u. S. Semiconductor companies. What do you make of that . There is a lot here. Intel is in a special situation. I interviewed the ceo of intel bob swan in colorado. They had a rough time doing manufacturing over the last five years. They were late on the most recent chips. They have those problems worked out. That is one reason their business is ticking up. They have their house in order. They have done a good job rolling expenses. This thing with apple, they shut down, announced they would shut down the business before selling it. They were getting cost structure in line. They were losing billions. A lot of good news in the numbers, for expectations. Connell fair enough. Company specific issues your point adam, for intel . That and there not communications chips where they like to be. Where people sell into huawei and other chinese companies. Connell do you worry more about companies that are reliant. Absolutely. That is not settled by any means. Connell that is a good number intel. Lenore you want to weigh in on this. I want to look at more details. Intel beat, what weve seeing a lot, across the board with this earnings season. So many downward revisions. For example, in the past three months, their earnings estimates have been downwardly revised 26 times. None upward. Their eps was down, estimates revised 15 times with only one up move. So, i mean the bar had been kind of lowered. Im happy to see they beat. It wasnt a particularly high bar. Connell make a point on a different story. May not match what is on the screen right now, maybe we look at tmobile for a second. There is another interesting story breaking afterhours. In the middle of all of this, if you were watching liz claman last hour you saw, there is tmobile down 2 , you saw Charlie Gasparino, whether or not the t mobile sprint deal may finally happen. Charlie thinks it would happen tomorrow. We hear it. Mobile having a Conference Call about earnings tomorrow afterhours today it canceled the call. It reported results. The stock bouncing around. It beat analyst estimates for Second Quarter. New phone subscribers. That was, it added 700,000 plus phone subscribers. 710,000 in the quarter. Compared with about 680 some odd thousand a year earlier. Analysts are expecting right around 640,000. The point they did better than expected on that. Theyre adding, but whether this deal gets done, supposedly, adam, i dont know how close you are following this. Theyre talking to some state officials, the state ags to figure out if they get this thing finally approved and get it through . One of two things is happening. Theyre having regulatory problems at the last second they didnt expect to or a deal point suddenly become a problem which seems less likely to me but it it certainly possible. They honestly dont want to be on the record saying anything right now other than the black and white results. Lauren adam, many on the fcc and National Security Officials Say theyre okay with the deal if you set up dish network. They become the fourth wireless competitor, provider out there, but what we still dont have an answer. You know, where do we go with all of this in the Competitive Landscape . I mean the regulators are not necessarily going to behave on a quarterly schedule according to tmobiles Earnings Announcement but again, Charlie Gasparino knows more about this than i will ever know. Sounds like theyre moving in the right direction but they havent crossed the finish line. Connell that is ther to on tmobile. The stock is down a little bit. I wanted to mention it. It was interesting they canceled the call. Wanted to point out they did report earnings. Lenore, if you want to put it all together, we had numbers in technology broadly speaking with one exception, were actually pretty good here, the one surprise, amazon missing on eps. Even if you dig in there they are pretty good. What is your 30,000foot view where things stand in the industry techwise . The results have not been nearly as bad as some were fearing but keep in mind, like i said, those estimates have been clicking down bit by bit. One of the things im also going to want to look at with amazon, what has been going on with their volume because what weve been seeing out of cast freight, cast freight looks intermodal, basically trucks moving around in the country, they have been having month after month after month things are really dropping there. The things we buy moving them around has been really falling. That tells me the consumer is not feeling pretty fantastic. Interesting to see that. Lauren let as bring in hitha back in on that point. If you look at their legacy, the customer, the prime subscriber, you feel the prime membership is tapped out. We found out they added this huge number of subscribers, prime members on prime day this is year. Right. I dont think this is sort of an indication how the consumer is necessarily feeling. We also have to look at Third Party Revenue with amazon which has been decreasing. Its a little bit after dichotomy when we look at amazon. Yes, the prime subscribers have been increasing, we also have to think about this too, i said this before, the average prime subscriber has income of 150,000 a year. That is a pretty highend consumer there. When you see the regular consumer on amazon, when the Third Party Revenue start dropping you have to look at. Connell Third Party Seller this revenue this past quarter for amazon was even 12 billion, a tick above expectations. That is a pretty good figure. Adam, lenore, hitha, thank all three of you. Good stuff. Pledge to American Workers. President trump wrapping up a event with workers and ceos, at the white house, working to expand training for Skilled Labor across the country. Were live at the white house to bring you the latest on that. Lauren falling short after bombshell, President Trump and gop leaders declaring victory after bob muellers testimony on russia probe. Some Democratic Leaders are pushing for impeachment. Why some say that could backfire coming up. Connell house vote happening this hour on critical debt ceiling, budget deal, to vie to divert a default of course. What is at risk if they cant get it done. Were live on capitol hill, bring you the latest. Well be right back. All Money Managers might seem the same, but some give their clients cookie cutter portfolios. Fisher investments tailors portfolios to your goals and needs. Some only call when they have something to sell. Fisher calls regularly so you stay informed. And while some advisors are happy to earn commissions whether you do well or not. Fisher investments fees are structured so we do better when you do better. Maybe thats why most of our clients come from other Money Managers. Fisher investments. Clearly better money management. carrying up to 50 times its tbody weight. Essly marches on. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. 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The National Association of manufacturers today, for example, pledging nearly 1. 2 million opportunities. The white house says that brings the total to 12 million pledges over the next five years as a whole. Here was President Trump earlier today. Companies stepped up to the plate and so Many Companies have done thousands and thousands of jobs and the training for these jobs. It is not like the old days where you go in, you do something much simpler. Today with new technologies, computers, Different Things you have to know. This is not something you can easily step into. Reporter meantime the white house is throwing its support behind the Prescription Drug pricing reduction act which advanced out of the Senate Finance committee, a bipartisan piece of legislation led, at least led by chuck grassley, ron wyden a democrat. That calls for outofpocket maximum for medicare to be capped and the white house says, that they are going to work with the senate connell, to move this legislation forward. The white house is not saying at this point whether or not the president plans to have any executive orders attached to this, or along this issue at some point here in the near future. Connell fair enough, blake. Jay timmons will be our guest later this hour. Jay the National Association of manufacturers president. He was at the event blake referenced at the white house to help workers in the industry. That is later in the hour. Lauren lets bring in ronna mcdanielle, Republican National committee chairwoman. Thanks for having me. Lauren were talking about the Manufacturing Sector. A brand new fox news poll, it shows 51 of the americans are feeling good about the condition of the economy that is the most since before 9 11 back in 2001. Democrats are trying to counter that. The strategy seems to be, there is income ensee quality out there. What is your response, what is the 2020 Campaign Response to that . Well, the economy humming under President Trump, 6 million jobs have been created since he was elected. Gdp is up. Wages are up. We have more jobs than people to fill them. Economic indicator, after Economic Indicator showing we have a strong economy. Unemployment at record lows, for hispanic africanamerican communities. The democrats oppose everything the president has done. They opposed deregulation, they oppose the tax cuts. Theyre coming to the table, were for student debt for life. Medicare for all. Which means Quality Health care go away for everybody. That what theyre for will burden american people, slow down the economy. They really dont have a message how they count geared things happening with President Trump. Lauren the message might fall flat. They are trying to build it. Elizabeth warren saying the Manufacturing Sector is declining. That recession is very near. That we need to change policies in order to change that outcome. Tom steyer funding democrats in those key swing, manufacturing states. Do you think this goes anywhere . Well first of all manufacturing jobs have come back under President Trump. What you saw today, he is looking at skilled trades, how we retrain the workforce so we can have more of these jobs open to americans. Lets not forget. Democrats are not putting usmca on the table. Why wont they put usmca that will bring even more manufacturing jobs back to this country up for a vote . So the president s leading on this. Democrats are full of empty rhetoric. The president has a record to run on. Lauren ronna, all they want to do is talk about investigating, impeaching, not legislating. That has come to bite them in the end. So you know, we have this meeting tomorrow between nancy pelosi and congresswoman ocasiocortez. Do you think that is a sign of there is no socalled civil war in the Democratic Party . Or do you think it is Something Real there . Because polls show if trump in 2020 goes up against one of these far left democrats he wins . People dont want a socialist nation. That is what the Democrat Party is proposing. They want a total government takeover of everything in our lives. They want to make the decisions for you who your doctor is, what medical procedures you can have, what school you can go to. That is not what america is about. The aoc and three they have become defacto speakers for the house. Nancy pelosi is trying to rein that in. That is not where her party is anymore. President trump is saying we want the american dream. We want to limit taxes. We want to limit government. We want america as it is. It is doing pretty well for everybody. Weve seen that with the numbers, lets keep it going. Lauren you might be right. Joe biden said there is a need to impeach to get more information. So even moderates might be going further left where you say the Democratic Party is. So good to talk you. Thanks for having me. Connell get back to breaking news on corporations we have for you this hour. Amazon is down 2 in the trade afterhours. It missed on its bottom line. Amazon spending a lot of money. Making a lot of money to be fair, Deirdre Bolton. Cutting into profit. Good numbers for alphabet. Lets talk more about amazon. Two trouble spots you alluded to, part of the companys earnings miss is higher costs as you just said, connell. The company is spending more money on faster delivery prime members. We are. Amazon paying more to get our packages in 24 hours. I want to highlight Amazon Web Services. People talk a lot about the cloud. It still had 37 sales growth, absolutely nothing to sneeze at. But that was lower than consensus. In that particular division, they posted 3. 8 billion in sales. Wall street looking for 8. 47 billion. The numbers are nittygritty. Amazon is no longer alone in the space. Microsoft, your product coming up, you can hear the football. That particular product had 64 sales growth. Microsoft says last quarter. Theyre coming more and more into amazons space. I want to highlight google. You guys covered Share Repurchase program. 25 of classc shares. Great for google. Other thing interesting to note about googles stock, why up postmarket, probably will rally, it is least loved of all the fang stocks. Only up about 8 yeartodate, versus s p 500, 20 yeartodate. You put facebook in there. Up 55 yeartodate. Google is very unloved this year. Strong earnings, strong revenue. Probably will have pretty solid day tomorrow. Connell really good point. It was worst performing of big tech stocks. Other one to watch is intel. It would add 20 points to the dow as of now. Lauren im looking forward to the al get bet Conference Call. Ceo Sundar Pichai is quiet. There might be a need to Say Something especially with the china story and investigations. The house is voting on a budget deal struck by congressional leaders and the white house. Does it have votes to pass . Were on capitol hill with the latest reaction. Connell look at this. New video showing a third water bucket attack on uniformed nypd officers. This time happened in the bronx. The incident comes just days after two similar incidents reported in brooklyn and harlem. President trump calling on mayor of new york city and president ial candidate bill de blasio to act immediately. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. 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Both earnings and revenue, better than expected, for starbucks, citing a rise in samestore sales and total net revenue up 8 at restaurants open for at least 13 months, which is essentially what samestore sales means, in the Third Quarter that was above analyst estimates. Not only did it do well in the United States on that front, but starbucks also did well in china on its samestore sales. The stock is up. Amazon is down as we mentioned. Spending a lot of money, cut into profit. Web Services Issue as deirdre mentioned. Alphabet, blowout figure, Parent Company of google, wont tomorrow, we dont think so, up by 8 . Lauren breaking news. The house is right now voting on a debt limit and spending caps package. Hillary vaughn is on capitol hill for the very latest. What the is early read, hillary . Reporter voting is underway for a few minutes. Theyre deliberating or voting on white house budget deal that would raise spending caps or suspend the debt ceiling for the next two years. The president earlier today, trying to rally the house gop behind this bill, telling them today, quote, im totally with you, not everyone in the Republican Party is convinced that they want to vote in favor of this trillion dollar deal. Theyre also not convinced that is the best they can negotiate. House minority leader Kevin Mccarthy admitting earlier today that this deal has its flaws. I need half the conference to support this. Look our conference our fundamental principle to make sure we have a fiscal house in order. We understand we live in a house that has to find compromise. This is not the bill that we would write. Were not in the majority. Reporter not just the house that is having their doubts there is bipartisan concern here on the senate side about this budget deal as well. Im very concerned about the fiscal irresponsibility in this proposal. Of course it is tempting. Everybody likes to spend money. Nobody around this place ever stands up says, i have a lousy idea and i need a billion dollars for it. Im going to vote against it. Reporter a senate gop leadership source says there is enough consensus here, they think will pass through the senate and house. The president has sign what Congress Sends to his desk. Lauren Hillary Vaughn thank you. Connell joined by republican congressman rob woodall from the state of georgia. On the House Finance committee. A number of republicans came out against this bill. You heard some of the language being used, irresponsible, reckless, if you like, im told after the interview you will head into the chamber to vote in favor, is that right and why . That is right. The question isnt who is excited about who is excited about this deal. The question is nobody is excited about the deal. The question is the next deal any better . The answer is no. The house has the president over a barrel when debt and budget issues. My freshman class extracted 2 trillion worth of concessions out of president obama. Youre seeing nancy pelosi try the very same thing. Connell if this were to drag on, not to pass, the debt ceiling becomes an issue that hurts you politically, hurts the economy and markets . Yes. Im not worried about the politics. Im worried about the policy. Youre exactly right. I dont have a consensus in this country on budget cutting. I campaigned on cutting budgets. President trump didnt. Nancy pelosi didnt. Mitch mcconnell didnt. If this drags on, folks get nervous, spending goes up, by that same token, spending as it continues to go up, at some point everyone says the same thing, at some point it must be dealt with. How do you kind of square that circle from where you sit, look, all right, i will vote for this, i will not get a better deal. It is reality of how the house is constructed . I get that but how do you know when were at the point where we must deal with it . What do you look at . Remember were only talking about the small portion of the budget that is Discretionary Spending today. That Discretionary Spending budget has not gone up one dollar in the 10 years ive been in congress. Weve kept that spending completely flat. I can control this end of the spending. What i need to do is go after those mandatory spending programs that need so much reform. Preserving medicare. Connell no one is doing that, congressman. Nobody is doing thats correct in your party, nobody of either party. That is the question, when is that going to happen . What has to happen . Some kind of a black swan event . Market has to tell you, what happens for the market to tell you do that . I hope it doesnt take many of those crises. Two years ago we reformed the medicaid program, for the first time. A trillion dollar in mandatory spending reductions through the medicaid program. We lost that vote ultimately in the senate when senator mccain decided to vote no. We passed that bill in the house. That is the largest reform of mandatory spending in my adult lifetime. I have men and women on both sides of the aisle, connell who would gladly trade away their seat to save this republic for their children and grandchildren. I just need leadership to want to work in that direction too. Were trying to encourage the president on that. I know democrats are trying to encourage nancy pelosi on that as well. Connell well keep talking about it, if nothing else try to add attention to it. I know you have to go vote. Well let you do that congressman. Thanks for coming on. Thanks, connell. Connell okay. Lauren that was nice of you. Connell you know what, the job i guess. Lauren boying to pressure. Puerto ricos embattled governor rossello resigning after a Corruption Scandal after more than two weeks of mass protests. Were live on the ground in san juan with the latest. The plus the death toll rising in costa rica. At least 20 people confirmed dead from Drinking Alcohol tainted with methanol. That according to the Costa Rican Health ministry. More than 30,000 bottles of alcohol suspected of being tainted have been confiscated by government officials. Well be right back. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. With sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right. So you can save big. Get a nofee personal loan up to 100k. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Connell breaking news weve been covering. Were looking at the share price of amazon falling nearly 3 . A rare miss on earnings there. Alphabet, googles Parent Company, continues to have a huge afterhours session up by 8 1 2 . Intel is up afterhours narrowing the secondquarter losses. Benefiting from sales of barbie dolls and release of toyer to movie. Mattel. Four percent gain for that stock in afterhours trading. Pretty good numbers from mattel. A lot of numbers. Sequels are hot right now. Speaking of hot. 108. 6 degrees in paris. A new threat to notre dame. The heat wave going on across europe. The chief architect warning these extreme temps could cause the Vaulted Ceilings of the fireravaged cathedral to collapse a fire back in april, destroyed the roof of the building, toppled the spire. French president Emmanuel Macron promised notre dame will be rebuilt in five years. Connell that is crazy. In puerto rico, thousands celebrating on the streets today. Governor Ricardo Rossello announcing he will finally step down. Jeff paul with the latest from there. Jeff . Reporter connell, after nearly two weeks of protesting outside the entrance to the governors mansion, a lot of that anger shifting in celebration. A lot of singing and Ricardo Rossello keeps it dramatic up to the last moment where he released a video hours and hours after promising announcement. That minute the video was released on facebook, these streets got incredibly quiet. People huddled around whoever was streaming it. After several minutes they finally got the news many people wanted to hear. Take a lessen. There is a lot of stuff to do. We got the first guy out. But there is a lot of corrupt people we want to get out of here. Reporter are you happy . What is your feeling right now . Were excited. I mean, most of all im relieved. It has been the toughest two weeks weve had. Reporter now the movement is historic partly it is first time in the modern era of puerto rico where a governor has resigned. It is also unique, because many of the people involved in this movement were youth, were the young people. The government here reportedly beginning, it was beginning to put in process the impeachment process but today after receiving the official letter of resignation, it looks like lawmakers here are not moving forward. Here is how this could all play out. Next in line, in order of the succession here in puerto rico, would normally be secretary of state. But that official already resigned days and days ago because of this issue. The next person in line is Wanda Vasquez who is the secretary of justice but a lot of protesters out here at some points been wanda rennuncia. What they were chanting about the governor. They believe she is extension what is wrong with puerto rico. Well see what happens. The governor officially resigning august 2nd. If she becomes the official governor here in puerto rico, she is only the second in history of puerto rico. Connell thank you, jeff paul. Lauren investing in our nations future the President Trump joining workers and manufacturers. Well speak to jay timmons the National Association of manufacturing president about his contribution coming up. Plus, beyond meat is stepping up the meatless craze, trend, fad, what do you call it . This time theyre going after one of carnivores most beloved food. I know what it is. Im really into this car, but how do i know if im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Your daily dashboard from fidelity. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. Connell breaking news from washington. Moments ago, congressional leaders did pass this budget deal that we were talking about on the spending caps and the debt ceiling being raised. That has just passed in the house of representatives, on its way to the senate. Lauren . Lauren well see if the president signs it. More breaking news. Amazon reporting earnings after the bell, weighing in now on the impact of President Trumps tariffs on the ecommerce giant. This was said during the media call just moments ago. Quote, we do have some impact in tariffs in our capital purchase but we would say its not material at this point. Down 2. 5 . These are the greatest companies anywhere in the world. We make the best jets and fighters and missiles and we make the best everything. We make the best product but we are the hottest economy in the world, were the hottest place in the world and youre doing a fantastic job. Connell that was about an hour ago, the president , more than 300 companies and organizations pledging training opportunities for more than 12 million workers at that white house event on American Workers. Thats ten times the number reported just this morning, as the u. S. Faces a Skilled Labor shortage. More than half a million people, half a million unfilled manufacturing jobs in this country right now, according to president of the National Association of manufacturers who just left the white house meeting and is kind enough to join us now from the north lawn of the white house. Jay, good to have you on. Good to be here. Connell tell us what came out of that meeting. Whats the most important thing you guys can do with this pledge to get those jobs filled . So this is the oneyear anniversary of the pledge for the american worker, and its an initiative that has been led by ivanka trump and the president kicked it off about a year ago, so today, on behalf of manufacturers in america, i was very pleased to be able to commit to 1. 186 million American Workers being trained, retrained and upskilled in the economy over the next five years. We are really excited about that. As you point out, there with 500,000 open jobs today in manufacturing. We got to fill those if we are really going to be able to continue to compete and succeed in the world economy. Connell we talk all the time here about jobs going to china, obviously its in the news all the time, but whats the bigger threat to companies in your industry . Job going away for automation or jobs going overseas . So remind a few years and think about the threats that we faced here in america. We faced almost, well, we did face the highest Corporate Tax rate in the world. We faced regulatory morass that was stifling innovation in the United States. We created those inequities for American Manufacturing and what you are seeing today is a very high level record of confidence for manufacturers in america. Its one of the reasons we have been able to create so many jobs here in this country, and its why frankly, its kind of the other side that we have those 500,000 open jobs. We want to fill those jobs and make sure the people that are already in manufacturing are upskilled to be able to futureproof their careers. Connell we will leave it there as we get close to the top of the hour. Come back again soon. We will keep this discussion going. Absolutely. Connell one day youre not at the white house. Good to see you, jay timmons. Lauren on another note, can meatless bacon keep up with the demand of regular bacon . What do you think . Connell what . Lauren beyond meat plans to launch fake bacon and fake steak in addition to other meat alternatives. The company is targeting those who eat meat but dont like to eat too much of it. You like a juicy thick steak . Connell i dont know anything about this. I was reading a little bit about like the business side of it earlier because i dont have a personal interest which is fine and people do, its their personal preference but theres a lot of room for growth. This is a Huge Industry now. If you think about the market for regular meat, thats fairly mature. Lauren another high today. Connell dunkin getting involved with this beyond meat. Crazy. Lauren it ipoed at 25. Connell watch alphabet and amazon tomorrow. Those will be the big movers along with intel. Thank you for joining us. Bulls bears starts right now. David we got a tale of two tech giants here. Look at shares of amazon and googles parent alphabet, moving in very Different Directions after hours. Amazon down more than 2 with alphabet soaring. Right now its up over 8 . We will bring you the details of why the numbers are where they are and what you need to know ahead of tomorrows open. Thats coming up. But first, in a very busy hour of bulls bears we have more breaking news. The house just passing a sweeping budget and debt limit deal, months in the making and backed by the president and leadership of both parties in the house and the senate. Lets go straight to Hillary Vaughn on capitol hill with the details. Hillary . Reporter david,ep