Good morning and welcome to World Wide Exchange. Im wilfred frost. Very good morning to you from me as well. Its throw back thursday. Were throwing it back to some summertime classic. Business morning ahead. This is old school. This is old school indeed. We have a busy morning. Lets start with the buzz out of cleveland. Ted cruz steel lg the show. He failed to endorse donald trump. The live report from cleveland in just a minute. All i will say is given he was a candidate, sounds a little bit like a sore loser. Different if it came from mr. Ryan or many continental. He had been a candidate. He certainly overshadowed. Be positive. He certainly overshadowed governor pence who is the running mate. After another record close for the dow and s p 500. U. S. Futures little change to slightly lower. So could change over the next hour or so. Well keep you apprised. Dow futures for the moment down 24. S p down less than 3 points and nasdaqless than three as well. Check out the japanese yen. On the move and rising. The dollar is weaker and the japanese yen is stronger. That is a result of media reports just in the last 20 mints or so quoting the bank of japan ruling out helicopter money. This is an idea that gained steam over the last couple of weeks. The bank of japan is not out of bullets. Its as easing overload and it was getting certainly investors excited. They were selling the japanese yen. The yen earlier in the season hit a sticks week low. Thats helped the market rebound more than 10 from the june lows so throwing a little cold water on that this morning. Exactly and Central Banks will be in focus today. Its an ecb meeting today. Certainly thats a change in direction from the recent move where the dollar index hit a new fourmonth high yesterday. Lets have a look at european equities right now. They are in the red. Not too significantly less than half a of declines across the european embassies, but decedent gains yesterday. The ftse 100 is up for the week. Unsignificantly for the month. 3. 5. The dax is up for the week and up 5 for the month. Little bit of profit taking today ahead of that ecb meeting is nothing to get too worried about. If we look at asia, knnikkei wa higher. Japanese manufacturers Holding Steady in july, but its expected to worsen over the next few months as britains vote to exit the eu could weigh on japanese exports. The real reason sara touched on the yen was weaker. Its now moving in the opposite direction. Theres also hopes for a fiscal passage which could be in the works and give the economy a much needed jolt. As for the Broader Market here. Oil hovering around the 46 barrel level. 45. 81 up slightly. Brent crude 47. 21. Here in the u. S. As for the 10year treasury note yield, yields inching up slightly. Less demand for safe haven. The twoyear bond as well is above the brexit lechl so we did see. So Economic Data comes in better. Exactly. So we saw a lot of buying stagt after brexit pushing the yield down and were now back to where we were on brexit levels which is quite a significant reversal. Absolutely. The question now is do the fed rate hikes ramp up and spook the market as weve seen in previous markets or is the Economic Data just that much better and earnings better so theres confidence that we can handle it. I think overall im bearish and i cant believe were hitting new highs. What weve seen in the last week is encouraging. Encouraging signs when you see yields go up. Dollar stronger. We see gold lower and equities higher. Thats a fundamental rally. The question is how long can it last. And can the multiples keep up. Who said i just dont see stocks at these valuations, but if the earnings do come in better and start to look better and start to show higher multiples, they could justify the stock prices and with earnings overall looking better, at least on beats. Well continue to see next week is another heavy week of earnings with Consumer Staples and technology. Well see if that hold true. Well show you the trade. Everything is reversing a bit here this morning. Its a fractional move. Now earnings have of course generally been better. One name in particular was disappointing. Intel however had slower Revenue Growth at its Data Center Business weighing on the firms bottom line. Chief Financial Officer giving a spostive outlook for the second half of the year. We have insight into what we think some of the big cloud customers are going to buy. We have new products come sboog the data center that we think will give them capabilities to buy a richer mix of products for us. So momentum in the data center and particularly in the cloud as we go into the back half of the year give us more than seasonal growth in q 3 and q4. Plenty of other stocks to watch today. Earnings related. American express posting earnings that exceeded. Revenue growth a big focus for the Company Coming in slightly below wall street forecast. Ebay hiking outlook for the year. That came in better than analyst estimates. The firm also launching a 2. 5 billion repurchase program. The stock up higher. Qualcomm beating on both the top and bottom lines. 6 higher. That Company Offering an upbeat forecast as well. Citing Strong Demand for mobile chips in china. Strong demand for barbie doll. Mattel posting smaller than expected loss. The better than expected results after toy maker add add diverse selection to its collection. F 5 posting revenue. Thats up 2. 6 . Meanwhile new mont. Mining. Thafl looking pretty as gold prices have gained. So elon musk has unveiled the new master plan hes been teasing for teslas future. He teased on twitter. In a blog post last night, musk outlined a vision to expand the company to commercial vehicles, car sharing and slor energy system. The new lineup includes a heavy truck, a public transport bus, a new kind of pickup and a exact suv which will be unveiled next year. Musk also restated his argument for tesla to combine and make the auto pilot feature much safer. Thats come under scrutiny. The plan doesnt offer details how the plan to pay for these details. At a time the company is burning through cash. This company and this man is not short on ideas. Many investors have been buying the stock over the last few years on his grand ideas, his disruptive ideas. The question is can he deliver it. Where they have struggled until the mast is on those production targets. Theyve had to continue to lower forecast, even this year. Last year came in very short and the cash burn happening at the same time. Absolutely right. The title of this was master plan part two. Overall interesting ideas. He talked about a future exact suv. A pickup self driving buses. Lots of ideas like that. Theyre quite vag and ambitious. Its really what the stock price now is. Can he hit production targets. Do you believe the hype or do are you going to be realistic about production targets. Right, economic reports on the agenda. June existing home sales are released at 10 00 a. M. Expected to slip half a percent. Following a 2 increase in may. The ecb comes at 7 45 eastern. General motors travelers and Union Pacific are among some of the names reporting results. After the bell well here from starbucks, chipotle. Twitter question of the day gets to discussion on the skperngs markets. We asked you with earnings coming in a little better, i would put microsoft at the top of that list, do they justify the record stock prices . Clearly valuations are running up into the 20 times Early Morning frearnings for the broar s p. My answer is no. Very loud and clear. Get your answers in. Well bring that and discuss it further. It looks like twitter agrees with you so far. Back to politics because it was a drama filled evening at the rnc in cleveland as ted cruz was booed by the crowd. Amon is on the flor of the convention. He joins us with more. What was that like . Its an astonishing thing going on here. They are trying, sara, to bring unity to this party thats had such a divisive primary fight all through the year. That effort to bring unity failed last night. Lets start with mike pence the governor of indiana. This was supposed to be his big night at the Vice President ial selection last night. This was his chance to address the crowd, to pivot towards november, toward the general election. He did formally september the Vice President ial candidate last night. I am deeply humbled by your confidence and on behalf of my family, here and gone, i accept your nomination to run and serve as Vice President of the United States of america. Will despite that uplifting moment though there was the ted cruz nonendorsement. So much anticipation going into this. Whether or not ted cruz would endorse donald trump formally after that bitter fight. The expectation was high going into the speech and over the course of the speech, the audience here at the cue in cleveland began to realize there was no formal endorsement coming from ted cruz and they began to guest very restless, in fact booing him at the end of the speech. Heres how it all went down. In you love our country, if you love your children as much as i know that you do, stand and speak and vote your conscious. Vote for candidates up and down the ticket who you trust though defend our freedom and to be faithful to the constitution. That provoked a reaction. That vote your kashs is the phrase the Trump Campaign has been using in the hall. They want to be able to voes their conscious as delegates in the hall. That was loaded language to show he wasnt going to endorse. He congratulated donald trump on winning the nomination, but he didnt endorse him and clearly the speculation is setting himself up again for president ial run in 2020 guys. So a lot of politics here in the hall last night. Sort of sound like sour grapes to me given he was a candidate and a losing candidate. Not like paul ryan or mitch mcconnell. Either way the fact he was booed and jeered, is that not positive for donald trump. It is pottisitive. Theres a broader Republican Party out there and a broader american electorate out there. You have to reach a number of audiences. You have to reach the group in the hall. The broader party. The entire voting public of the United States. These are bigger groups than this group here in cleveland this week or very much for donald trump, but when you look at ted cruz, hes saying simply im not going to compromise on principal. Very tough to do when you lose in the way he did which is with donald trump calling him lying ted. Suggesting his father was involved in the kennedy assassination. These were things he took to heart and was not going to turn around last night. What are you hearing about Donald Trumps own headline speech tonight . Is he going to talk about policy, Hillary Clinton . What do you know. We dont know much. The Trump Campaign has been keeping everything close to the vest. On the stump, donald trump doesnt like to speak from a prepared text. His aides have been trying to get him to use the teleprompter more. He mocks others for using the teleprompter. They want him to do that. Youll assume we will see that tonight. A much more scripted donald trump tonight. Thats why this convention has been so unconventional. A throw back to the 1960s or 1920s. Nothing like what weve seen over the past several decades. This one has been very political, very wild, very out there and very much reflective of the campaign year. The unconventional convention. Thank you very much. Tweeting ted cruz said dont stay home in november. He said cruz should have stayed home tonight. Why did he go why did they let him come. He rallies up the base of the Republican Party. A programming note, tune into cnbc tonight 10 00 p. M. Eastern time for complete coverage of the rnc including Donald Trumps prime time speech. Will it be scripted on unscripted. Thats certainly one question. The ecb is holding the first policy meeting today since the brexit vote last month. Followed by mario draghi. In frankfort with a prove, julia. Reporter thank you so much. I expect reassure rens from mario draghi saying we stand ready to provide more stimulus if the market and economy need it, but for now, we have to wait and see what the data says. We just havent had enough real data since that decision by the uk to leave the eu to make any kind of decision on just what the impact will be on growth and on inflation so i think hell sideswipe that one for more i think the more interesting aspect here is the market response. The flight equality weve seen in bonds. Thats raised the challenges the European Central bank faces in buying bonds. 50 of German Government debt is out of bonds. Its not eligible due to the ecbs own criteria so the question is do they decide to tinker with some of that criteria to open up the amount of bonds valk. Im not sure he does today. He said last month we talked about it, were not ready yet. So jump forward one month. I think hes likely to wait until september in the updates of the inflation forecast to make a move. We wait and see. Also expect him to get plenty of questions on the banks. The real dent to share prices since the brexit vote. They havent recovered. Only half of the 20 losses in fact since that vote was made. He is going to face questions. Again, i dont think hes going to answer because weve got stress test results at the back end of next week. He want want to preempt that. Plenty of questions. Long answers, probably not saying very much. Back to you. Thank you very much for that preview. That News Conference 8 30 a. M. Eastern time. The difference of course going in was he didnt want to influence the vote. Maybe hell have something to say on brexit coming up. When we come back a breakdown on intels Second Quarter growth. Overshadowing better than expected profit. Well get more insight of what to do with that stock next. Before taking his team to state for the first time. Gilman go get it, marcus. Go get it. Coach gilman used his cash rewards credit card from bank of america to earn 1 cash back everywhere, every time. At places like the batting cages. [ crowd cheers ] 2 back at Grocery Stores and now at wholesale clubs. And 3 back on gas. Which helped him give his players something extra. The cash rewards credit card from bank of america. More cash back for the things you buy most. The cash rewards credit card from bank of america. You wont see these folks they have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. On is the cnbc news line. Executive director and senior analyst. Good morning. This is a stock that has run up quite liesly into the report of the last three months as the Company Transitions away from the pc world was last night a step back . Not really. Youre right the data center missed expectations for the quarter. We think that weakness was temporary. They generate a lot of rev flen from cloud customers like facebook and amazon. They didnt buy a lot of processors in the Second Quarter. Saw weakness in enterprise. Been a theme for a couple of years now. Theyre introducing a new chip for a lot of their server customers called broad well. We this that resulted in customers waiting to make purchases. If you look into the Third Quarter t growth and the data center is going to accelerate. We think that business is going to grow from up to 5 year on year in the Second Quarter to up, you know, double digits very solidly. Data Center Business was a little weak in the Second Quarter, but it looks like its rebounding pretty strongly. The share prices off 3. 25 . Is this a buying opportunity this pullback in morning . So the way i think about intel, weve got a 35 target and relative to market which has had a tremendous run over the last few months, intel in our opinion stands out as being a defensive name, a stock thats got a good risk reward. Doesnt have a lot of downside risk. We think, look, whats being overshadowed here is a p chad qualls pc business showing strength. Better than expecting in the Second Quarter. Thats a business that could show some upside as you look into the q 3, q4. The name has underperformed tyrell 2i relatively speaking. They have 3 dividend yield. Very quickly here. Are they going to be is intel going to be part of the new iphone 7. I know theres a lot swirling around about that. How much is priced in there and how much of an opportunity that will be for intel if that happens. Yes, theyre in there. They more or less confirmed theyre going to be shipping the base band in the Third Quarter. You know, qualcomm who is losing some share also confirmed you know that point yesterday. I think this is fairly well understood by the market. You know, whats, you know, critical at this point is figuring out what happens next year. We really wont know until november, december, but intel did confirm they are on the iphone which is symbolic because its the first major win for their mobile chip business. Thank you very much for joining us this morning. Still to come, the dow closing higher for a ninth straight session. Its longest winning streak in more than three years. Well talk about the factors likesly to drive todays action. Stay tuned. Youre watching cnbc first in business worldwide. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve th