And we also want to welcome our guests for this hour joining us this morning from londons Nyu Stern School of business professor Scott Galloway and from one markets, cofounder Kate Mitchell were watching shares of amazon. 14 hours into prime day. 14 hours into prime day. The company is saying the echo is the best per foming bestselling item for the day. Marked down by 50 its not just amazon were seeing deals across ebay and best buy mark things like ipads, lap tops, smart watches down by 47 . Lost the script. There kate, when it comes to amazon, is there a point at which the sort of dominance of u. S. Retail sales and disruption of the brickandmortar Retail Business stalls out . Well, its hard to see in a day like today i mean, these guys continue to impress me and theyre using prime day which is the day that they for prime users only have what are like black friday deals available on all kind of products and greatly expanded the number of products this year. And on top of it, you can only get them if youre prime ghaes . Were all getting everyone is getting signed up. The app is trending high on the app store. It always peaks a few days before a day like today. And again people all signed up ready to go in advance of back to school and christmas sales. It is hard to be a brickandmortar retail in the face of that kind of customer acquisition. At the same time, kate, i cant help but looking over at best buy and at walmart. Theyre not calling it prime day. Theyre calling it summer deal day or various it ragss of that but they got good deals when it comes to tvs, best buy is cutting prices on certain apple items which amazon tends not to directly carry. Might this somewhat get away africa amazon thing and become a new National Shopping holiday . Well, its very well could be i think the edge that amazon gets is not only do you sign up for your 99 and the people that tend to do that buy twice as much as others so they become repeat customers, number one number two, you noted the sales of echo. They extend this opportunity if youre an alexa user so i will be prompted post the time the sale is over for even most online prime customers, today myself to turn on and see if i can start to buy from my alexa which is getting me trained and ready for that christmas sale i think its smart for best buy and other retails to play in the game but theyre celebrating on amazons birthday. Yeah. Scott galloway now is with us. Nyu. You have been a good analyzer of amazon you get credit for predicting the whole foods deal, scott. We keep hearing that its not just about getting the 99 per year subscription when it come to prime day fwz the ecosystem. How do you interpret that . What does that mean to you first off, good to be with you guys yeah this is really youre entering into a relationship amazon decided retail is difficult business the Better Business is software where we have reoccurring revenue. And now more households have a reoccurring revenue relationship with amazon in the form of prime than voted the 16 election or have a land line phone so theyre basically throwing a bunch of freebie wlz, you know, you shop at best buy which by the way is an incredibly well managed company. But dont get the season two of transparent when you shop at best buy so theyre creating all sorts of ecosystem and hooks to lock people into this reoccurring revenue relationship and theyre also fighting unfair they have cheaper capital. They can just throw more resources at these types of shopping days and any other organization that being said, scott, did you mention retail is hard i wonlder if Bigger Picture for if were looking out a year, a couple years as they get into in a bigger way grocery the things that are left for amazon to disrupt are the bigger and harder things versus what theyve done already is that the case well i dont know i think theres a lot of low lying fruit and a lot of prey. Amazon is using the Retail Business sort of as a trojan horse to establish a very strong relationship with the 58 million wealthiest households in america and arguably in the americas such that they can sell them a variety of other things whether its film and service to other people who want in the households, whether its media amazon is about to become not only fastest on line growing retailer but the fastest off line retailer in grocery and may be the Largest Consumer segment in the world clocking in at 7 au 7 50 billion a year. We have never seen a company in my view this strategically dominant with this kind of momentum lets move on to snap shares are getting smoked again this morning falling below the ipo price of 17 Morgan Stanley did downgrade the stock from overweight to equal weight and the disclosure note Nbc Universal does own a stake in snap but when it comes to 27 ipos, theyre the far from the worst from the group that distinction goes to blue apron. Actually blue apron the fifth worst performer down 23 from the ipo price of 10 a share other names down as much as 55 any ipo futures in the pipeline . Absolutely. I think when you talk about blue apron and snap, you have very similar kinds of stories to look at there very difficult for blue apron to have gone public in the face of amazon having just bought a whole foods. The question there is do they have a entry that somebody bigger and smarter like amazon cant copy same issue with snap the user growth has stalled. The daily active users has stalled out. Why . Instagram and facebook is able to, you know, replicate what snap has done. And use more resources like amazon can with blue apron to replicate what snap has dovenlt i think users are pausing. Where are the new products what are they going to do . Once you go public, you know, you have to perform and show can you consistently deliver growth and do so in a way that distances yourself from your competitors and i think both blue apron and snap are challenged in that way versus amazon and facebook. That said, i think there is still an opportunity there but i think the pricing is a heck of a lot better with snap than it was at the peak. Scott, it appears to extend even beyond those two. Im looking at nutanics. It is down to 19 a share. It was up around 37 Cooper Software is down 29 where et started and yet just below the ipo price. Is this just in vestors shying away from a certain brand of Newer Company beyond all of the great points that kate just made i thought kates analysis was the right one. To a certain extent, its better to be private right now. Youre not subject to the scrutiny of the Public Markets i would argue cnbc stake in snap is about to be just crashed. To kates point, you have two of most agile well resourced companies in the world who have set their sights amazon doesnt directly going after blue apron but the first thing Mark Zuckerberg thinks is he must wipe snapchat from the face of the planet the last thing he thinks when he falls to sleep, must wipe snapchat from the face of the planet i said publicly, invest in snapchat is like driving drunk s is something no responsible person should do youre handing your money over to a 27yearold with no rights in the stock, three classes of stock, a company that did 400 until revenue and lost 500 million. And by the way, has the most Agile Company in the world spreading snapchat like peach as cross every property what can go wrong . This is this company is in my view the most overvalued company in the world right now i would point out its not cnbc that has the take it is Nbc Universal. A lot of things you just said would have applied to facebook when google was breathing down their neck after they went ipo not all of them. Ill grant you that. Hold on you got to give me facebooks metrics, they never had a company putting it out of business facebook immediately brought in cheryl sanldberg and adult management and adult supervision. The metrics were always off the charts it was hugely profitable and growing much faster than snapchat all right lets broaden it out to blue apron just a bit we did talk to the ceo when the company went public on the strategy take a listen on that day. We wanted to build the kind of company that could be a Public Company the kind of Caliber Company that is going after a big enough opportunity with a long enough orientation and ambitious enough business plan. And so thats really been the strategy since the very earliest days what went wrong here, kate . You know, its its tough to know. When you think about the breadth of the market and again we just talked about some real big ones here i think its hard to see yet where that strategy is that makes it that large of a market. Theyre competing against, you know, if you think about what we need to put on our tables every night, so many alternatives take out home delivery, you know, all those things they find that the droppage of rate meaning i sign on but i turn pretty quickly. I try ut a while and i stop using it consistently. It is relatively high with blue apron. The sustainable size of that market i think has yet to be proven i think its interesting when you look at this market, what you do see by the way, we talk a lot about the companies with a lot of competition, perhaps minimal size markets i think one of the other big differentiators is cash burn and again, i think scott did a great job of pointing out the contrast with facebook which was doing so well preipo when you look at the companies that have performed well this year, Companies Like mealsoft. 70 year over year growth avs last year and converging on cash flow break even, i think youre in the stage of there is a real have and have nots on the size of the market, barriers to entry and cash burn. It makes investors nervous. We have to leave it there thank you for joining us to talk about the hot topics today scott gallo way aa way and scot mitchell. Phil lebeau is in chicago with a story this is a expansion in the Service Component at tesla this is important given the fact this company is essentially going to double the number of tesla vehicles on the road worldwide if it hits the Production Target for 2018 so heres what tesla is doing. It is announcing that it is going to be expanding the number of Service Centers that it has around the world it has 150 right now theyre adding another 100 and another 350 mobile service vonz. Those are are for rural areas and locations where they may sflotno have a high density of vehicles. Keep in mind, a lot of this is important as the company prepares to rollout the model three. First deliveries starting at the end of this month. And then theyre going to quickly ramp up production through the end of this year and then all through 2018. That 2018 Production Target for tesla, a half million vehicles put that in perspective. Right now if you take all the tesla vehicles that have been built since the Company First started, youre looking at roughly 230,000 vehicles so theyre looking to more than double that as you take a look at shares of tes l. A. La it has been a rough month. It up is 3 today after a very rough last three or four weeks for this stock guys, back to you. All right thank you, phil. I guess those services changes are going to be important to make sure the Customers Service and satisfaction numbers stay up absolutely. Its not uncommon in the Auto Industry for all automakers regardless who they are, you always hear the executives say we want a clean launch it doesnt always happen even the most established automakers have a rough launch if you have a rough launch, you want the service senters in place to deal with the potential problems as quickly as possible. All right thank you, phil. Now lets send it over to meg for a quick market flash meg . Were checking out shares of amicus that is soaring this morning on the news that fda said the company can file for approval of the rare disease drug based on existing data. This reverses an earlier request from the fda to run an additional late stage clinical study. So amicus up 28 on this news. If there is any evidence that dr. Scott gottlieb is taking president trumps directive to the fda to speed drugs through the approval process while perhaps this it is, guys amicus up 28 on this. Expects to file in the fourth quarter. J. P. Morgan says this could shave two years after that process. Back over you to, john. Thats quite a pop. When we come back, the countdown to the stop state for business continues with our scott cone live from a mystery location in the u. S. We all have our guesses. Much more on amazons prime time push what it means for the stock. And later, the nfls advertising fumble losing two key advertisers ahead of the Upcoming Season well discuss that when squawk alley returns markets are mixed around the flat line this morning you see the dow narrowly lower s p 500 flat nasdaq outperforming slightly. Investors look ahead and big bank earning thats begin later this week. For more, will hes bring in the chief Investment Officer at bemo bank gentlemen, thank you for being here interesting that fed chair yellens testimony comes tomorrow at a time when investors are trying to absorb this rise in bond yields around the world. A lot of questions about whether Central Banks are looking to get a little bit more aggressive even in the absence of inflation stre trending higher. What do you think we might here out of january he will yellen tomorrow that is use to investors and figuring out where it goes if here . Central bankers around the world delivered the more hawkish tone you can see this in the market the forward curve has priced in almost an additional rate hike over the next two years than it did just a few weeks ago theyre outpricing at 2 1 2 more hikes. Fwhaut is still a far cry from what the fed is sen tilling in through the dots which is seven more hikes over the next two plus years so it wouldnt surprise me if the fed chair continues its more hawkish tone because its ironic that the fed is hiked three meetings in a row now since december of march, and june and financial conditions have actually eased instead of tightened. Normally that is not what happens. And certainly thats not what happened over the previous few years. So i think the fed is testing the waters for a hawkish path forward. Other than real rates going up 20, 30 basis points in the last month or, so the market seems to be okay with that. And, jack, you know, financial conditions easing in the form of stock market an all time highs low levels of financial stress, credit markets remaining strong. Is that something that you think that yellen is going to look at and say, look, thats our reason for getting more aggressive, not necessarily to fight inflation just explicitly to kind of put the markets back in check a little bit yeah. I think thats it. I mean its remarkable the fed has tightened three times over the last year and a half or so and yet, financial conditions are easier now than they were 18 months ago 18 months ago the fed funds rate and the inflation rate were identical. Now the fed funds rate is 1. 25 and the inflation is 2. 25 somewhere in there so i think that what the fed wants to do is its projecting a still growth environment, tighter labor market with eventually some wage growth. And what it wants to be able to do is tighten on a trajectory that is shallower than the acceleration of the economy itself in fact, leave the market in a financially easier position in the future if they get the financial conditions they expect and as an investor right here, is it enough forlets sa u. S. Equity markets that Global Growth picture looks okay and that yields remain low weve been kind of feeding off that for a while we look into 2018, are we going to need Something Else whether policy or Something Else to keep markets supported at these levels well, right now Earnings Growth is pretty robust. Q1 was up 14 from a year ago q2 obviously is about to get reported here. The earnings season is right upon us. So fate estimate is about plus 7 and there is upward drift during earnings season. And for calendar year 2017, its plus 11 or 12. That is coming off easy comps. But its a pretty robust earnings environment if that continues, then that allows the market to be slightly overvalued were running at about 21 trailing to 21 times trailing earnings, 18 times forward earnings which is higher than normal but without an earnings catalyst, i that i could be maintained so my eyes are on really two things seshlgs things it is china, can they keep the credit party going and b, the fed, how much are they going to keep pushing the markets into a morrow bust hiking pattern well watch both of those thank you very much. We have news out of washington yeah, lets get to our john harwood on pretty revealing emails from Donald Trump Jr these are the email thats he exchanged with an acquaintance of his with ties to russia, the Miss Universe pageant, donald trump mentioned this over the weekend setting up the meeting with the russian attorney who provided information or attempted to provide some information Donald Trump Jr. Released all of the emails. They do not appear beneficial to his case, however. In the email his friend Rob Goldstone says this information that the woman is going to provide is part of russia and the russian governments support for donald trump also the russian attorney was identified in these emails as the russian government attorney. Now one of the things that people tell those on the wrong side of a scandal situation is put everything out perhaps Donald Trump Jr. Is putting this out to try to get ahead of criticism or other news stories. But on its face this is