So were watching that closely. Take a look at the tenyear note yield, which this morning is down to 249, below 250. Well talk about that as well today. As for europe, heres how the picture is setting up. Mostly red on the board for the most part except for spain is in the green, one of the few bright spots over there. Our road map starts this morning with amazon shares, down sharply premarket after posting a wider than expected loss, while continuing to spend on new products and technology. Starbucks beating the street. A live and exclusive interview with Ceo Howard Schultz coming up. In another exclusive interview with cnbc, president obama weighing in on Companies Looking to cut their tax bills with overseas deals. And visa falling premarket. Were going to explain why. How about amazon . Reporting a much wider than expected Second Quarter loss of 27 cents a share. This as the Company Continues to spend on new services, technology and products. Amazon predicting further losses in the current quarter. Meantime, revenues rose 23 in line with consensus. Jim, there was talk going into this report that investors were growing frustrated, that they were losing patience with mr. Bezos to grow profitability at amazon. Now they report a wider than expected loss. What is your take . This was a horrendous Conference Call. People are fed up. I mean, even the bulls who were trying to get good things out of the company couldnt get what they wanted, growth margins were actually better. This is the company saying, you know what, with we dont even care what you think, were going to do whatever we want. And ive got to tell you, think people are getting tired and want to start instilling some discipline on the company. I mean, at one point, i was almost surprised they didnt say, you know what, we did really badly and so what . This was an in your face, we dont play by the rules, we do whatever we want. My friend one of the best notes was from wolf research, from Aaron Rubinson who said they used the word invest 33 times but not a single reason why we think the investments will pay off. At one point, they say, growth margins are good, they say, it doesnt matter, i had a lemonade stand, 1401 cromwell road, and my mom thought the growth margins were important. Is this a case, jim, where you want to scream out, you know, jeff bezos, are you listening . Why isnt he paying more attention, why doesnt he care more . Because it is pinkie on the brain. The guy wants world domination. It doesnt matter. He doesnt care. Invest, invest, invest. It just look, they have at a certain point they will have to either take over the world or just give up. And theyre going for take over the world, scott, and they dont care whether the analysts like it. I dont blame them. You know what, in the end, buyers, the big momentum buyers, theyll come right back. Why . Because, you know, they still had 21. 6 Revenue Growth, it decelerated from 22. 8 in the previous quarter. They did a better growth margin. But as far as im concerned, this is just you own this stock because you like the company. I cant come up with any valuation reasons. They raised the price for prime. Even more people subscribed. It is a love service. And this is one of those where i love the service, i own the stock, and that is that linkage is not going to be broken. Do they raise prime enough to offset the shipping costs, which are hurting badly, right . It is costing them more than they would have thought, i think, to ship these goods to you or me or whoever else, in the two days they promise under amazon prime. Right, well, theyre lowering the cost of the amazon web service, but and theyre not making up in volume. You know, the big joe, we make it up in volume, theyre not making it up in volume. And it just i dont know. Im very frustrated with it because ive got to tell you that it was inexplicable, an inexplicable quarter. How could they decide that it just in the end, this is what i wrote this morning, in the end, this is a company that doesnt deserve to sell at these prices because it is such an imperfect security, it deserves a discount to where it is, because it doesnt play by the rules. And thats fine. You dont have to own it. But dont ask us to own it and, you know what, theyre not. This is basically this is a why do you own us . Let us go do our thing. I guess as an investor you have to make the decision as to whether you believe that all of this investment that bezos is doing is going to pay off down the road. Yes. Thats the only way to decide whether you want to buy the shares here or not. Down the road means now it is india, theyre talking about spending. Theyre spending in china. Theyre spending everywhere. And they dont really care about what they make. And they have got tons of money and it is just just it is irrelevant whether you like them. It is almost as if they are a private company and theyre just saying, you know what, we dont care what you think. Were just going to do what we want and were not even going to explain it. There was a moment, the only real substance i got out of the whole call is that japan raised taxes during the quarter and that caused japan the retail sales tax, that caused japan to be weaker and that may have been why there was a rapid desell ration. They dont want to tell you could you tell us what you do . No, we dont do that. How is electronics doing . No, we dont break that out. How is it in europe . No. They dont break out anything. You cant understand it. I suggest that you just watch david fabers documentary. I know david is not here, but that at least tells you what they do. They dominate. The fire phone goes on sale today. They dont mention it. It is going to cost us some money. The analysts are just besides themselves, i think, because they cant take it anymore. So bezos doesnt give a damn what the analysts think. Not at all. However, if investors start fleeing en masse, does that give them a smack across the face and wake them up . No, no, i dont think so. I think hes just it just doesnt matter. I dont think he cares. Honestly. I know they do these stock appreciation, people are paying stuff, but i think this is look, this is kind of necessary. It is necessary for us to do this. And dont get in our way. And you know what, hes over time, revenues are amazing. 100 billion in revenue, but cut price in amazon web services, is that competition that did it . Theyre not going to tell you. They are unhelpful. So in the end, you have to default to i like the product. I like the way they do business, because you simply cannot make evaluation. I cant. Most people they would say, they would agree with you, i love the product, i love going on amazon. I love buying the stuff there and getting it within two days. But thats not an investment decision. Facebook, google, apple. I love all their products. I think theyre amazing. And, by the way, they make fortunes. They make huge amount of money. And they spend a lot innovating just like amazon. Theyre spending a lot too. Amazon doesnt care. It is incredible. I would rather invest in the river. At least i know the direction. How about starbucks reporting fiscal Third Quarter earnings of 67 cents a share, beating wall street estimates. U. S. Comp sales rose 7 . Helped by demand for new breakfast and lunch items and teavana iced tea. For 2015, starbucks expects eps growth of 15 to 20 . Well have a live and exclusive interview with starbucks chairman and Ceo Howard Schultz later on this hour. This is a good quarter. What is that all about . It did run into the print. Second, they did not guide up big. So you have the piece that controls, cautious guidance. Listen, i talked back and forth, small position, at my old hedge fund, which i dont have and dont shore and dont do this and dont do that and dont come on tv and say im going to destroy this company. Who are you referring to . I dont know. I would go 77 bid for a million shares. Just hit me. After they hit me, i say 77 bid for another million. This is what its about. This is a Great American company, it is coming down. Why . Because people say, coffee prices, theyre only 67 . This is the kind of moronic thing going on since the bottom where you see great quarters and people flee. And then this is not amazon, by the way. And then a few weeks later say wait a second, the stock is down for the year, and they have 22 earnings per share growth. Im just going to own the stock. Im just going to own it. May i suggest to people just own this is a stock that, remember, we had the big momentum pullback and all these names that had run a lot, starbucks got caught in the wind of that. Nike was caught in the wind of that, starbucks, and under armo armour. You go over to the under armour quarter you got what people are hoping starbucks would do, we blow the number, we do this. 7 u. S. Comps is blowing the number away. This is not Dunkin Donuts. Technology forward company. 40 of the people in china are part of the rewards program. New soda, teavana, technology, sandwiches, new formats, beer and wine, drive throughs. And no one cares. They care about the price of coffee, which, by the way, is not Howard Schultzs first rodeo. I bet it is not even half a cent per share. They have been able to manage those costs better than most, right . Please. If any company has learned how to manage rising commodity costs, it is schultz, right . Starbucks. This stock goes down, and everyone just says, this is one of those these are funny, wow, something must be wrong. I spend im insane, i spend about four hours on this thing trying to figure out what was wrong. And i conclude that the market has decided that it doesnt like starbuck and thats when you pounce. And this year, when you have these selloffs of really good companies, they tend to come back. And i dont know if starbucks is going to hit 75 first or whatever, but if you want a perfection quarter, give it to you at starbucks. Interesting change of sentiment. This is a stock that everybody loved and now people are being more nitpicky. It is nitpicky. But i went through every piece of research and all the research is kind of the same. The research is, like, listen, were rising our price target and it is terrific, but they didnt give us the guideup we wanted. Maybe was it conservative . Look, sometimes you have to say i like it. I felt this way about when facebook reported the previous quarter, scott, and it went down and i came out here and everyone just said, hold it, facebook is down, it must be bad. I said, no, facebook is a buy. And people then it went down 3 and jim cramer on twitter, i was hung in effigy, they run old tape from 1996 of me doing something, which is fine. I love it. I love it. Hey, hate me, love me, dont ignore me. But i will tell you that this is one of those moments where you say, okay, the market is wrong, let it come in, though, you buy the 77, the market is wrong and talk about it two months from now. The cfo made interesting comments. We can ask schultz about this when he comes on with you in a little bit. Continue challenging economic and consumer head winds in many markets around the world where they do business. I dont know if people are taking that theyre taking that wrong. Europe is coming back. The european numbers were good. 7 u. S. Comps is rather extraordinary. Two new stores in hanoi, joint store in colombia, talking about despite the size, pentup demand for starbucks demand continues. When does he get the credit he deserves . Look at the longterm chart. Look at every single one of these dips over the longterm when howard was involved. There was a ceo in the interim, nice man, i wont knock him, because the guy was really nice guy. But this is the kind of quarter where people at home are saying, wow, there must be something wrong. Cramers in the pocket of howard. Whatever. There is the tenyear chart. I said you got to buy it. Everybody said im washed up, you dont know what youre doing. Then the stock drops to 70. 69. I said, buy it. He just he likes the triple venti cup no. I like the company. I like the numbers. I like the 7 comp. I like what theyre doing in china. I like what theyre doing globally. I like the new hours. I like the stock. I like theanagement. But it is a sell . Huh . Anything else you like . Well, i have to tell you, i do like fizio. I like teavana. Oprah chi. Youre short oprah if youre short howard. Im short oprah. Im short 78 offer for no. Sometimes you just have to say somebody is wrong. Listen, sellers, i know you think youre so brave, youre taking profit. Take it and go buy baidu. Buy it when it is 40. Ill take two up to 250. Ill bid 250 for 2 billion baidu. Sometimes you are to say they give you a chance and theyre giving you a chance. Sorry. All right. No, not sorry. A live and exclusive interview with starbucks chairman and Ceo Howard Schultz is coming up. You dont want to miss that in just a little while. Also, grubhub is up more than 30 from its april ipo price revenues at record highs, the ceo matt maloney on whats working for the online food ordering company. People like that there. There is a stock you want to go longterm. Food delivery company. That was a seamless transition. I like it. Look, grubhub has the momentum. They got momentum. People like momentum. Howard doesnt have momentum. Hes antimomentum. Oh, please. There are the futures. Dow industrials with an implied open down 50 or so points. The s p, another intraday all time high yesterday. 27th of the year. Unbelievable. More squawk on the street live from the New York Stock Exchange when we return. Chines will be sprayed to be made. And making something stronger. Will mean making it lighter. One day, factories will work with the cloud. One day. Is today. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Share your summer moments in your mercedesbenz with us. President obama speaking out about u. S. Companies looking to reduce tax bills by striking deals with overseas firms. Here is what he said last night in an cnbc exclusive interview. This is basically taking advantage of tax provisions that are technically legal, but i think most people would say if youre doing business here, if youre basically still an american company, but youre simply changing your Mailing Address in order to avoid paying taxes, then youre really not doing right by the country and by the american people. Jim, now, he didnt say unpatriotic. But he didnt have to because he said Everything Else that meant the same thing. I felt that my interview with secretary lew, the treasury secretary, i think he basically did say were unpatriotic. Look, everyone knows this is ridiculous. There is great commentary on squawk, everyone knows the republicans hate the democrats so much that this is the nose that gets cut off to spite the face. And we all know that when you go look at these companies, where they really are, and they tend to be on a couple of streets in dublin and switzerland and in swiss towns, you know there is no company there and, but mark cuban said the right thing, look, were here to make money for people. Im not here to say its right or wrong. I know its wrong. We all know it is wrong. The goal is to find the companies that do this. Cuban is so good. If i own stock in your company, and you move off shore for tax reasons, im selling your stock. There are enough Investment Choices here. But the stock goes up. Then your goal is to get rich. But the government should have stopped this. I told jack, knew him from college, i said mr. Secretary that this is one where i think you got to do what has been done in a lot of times, which is the irs starts rulemaking procedures and said if we see it is just a mail drop, you know, the irs is very powerful. The only court in all of america where youre guilty until proven innocent, which is remember it is the opposite in all the other courts. And the irs has much more ability. Theyre hamstringing the irs. The irs could do this. They could say, were analyzing it. If youre just a mail drop, were not going to cap you. And they wont do that. And theyll claim they dont have the right. This is like when tim geithner said, we dont have the ability to stop lehman, it is the u. S. Government. They have the ability to do anything they want and they should stop behihiding behind t. The irs should start rulemaking procedures and say, jim, thats not possible. Ill say, you know what, thats what you always say when you dont want to do something. There is a Biotech Company this morning, jim, that i wonder how theyre viewing the president s comments. Mylin, doing their deal, they get downgraded at citi today because of the uncertainty over the transaction closing. So good luck. Youre dealing with capital. It is so dysfunctional. Does it really matter . You want to bet against capital . Mylin is run by the daughter of senator manchin, right . A lot of people trying to get senator, will you call in . He said these things are wrong. He wants to do these inversions, like a lot of other people, the ceo. Well, you know, i dont know. Look, it is obviously wrong. The president was right. Everyone knows this is wrong. But that doesnt mean a thing in washington. Thats why at least the irs has the ability to do something and stop saying they dont. Im tired of that too. Im tired of the Justice Department running over the banks too. Ill throw that in there even though i know the bankers are bit. Im tired. Im not tired of doing the show. Were just getting started. Amen. You okay . Yeah. All right. Howard schultz in a mad dash are coming up after this short break. At every ford dealership, youll find the works its a complete checkup of the services your vehicle needs. 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