And the temperatures are rising a major heat wave set to hit the majority of the United States over the next few days here we are. Were keeping you calm, cool, collected and informed its friday, july 19th Worldwide Exchange begins right now. Good morning welcome. Im Contessa Brewer in for Brian Sullivan stock futures right now are in the green. Implying an open of up 92 points the s p 500 is up about 6 points the nasdaq futures are up 41 it looks like the nasdaq, the dow, the s p, all on pace to break twoweek win streaks a decent day today could change those fortunes the major averages are less than a percent below theyre alltime record highs the bond market now, lets look at u. S. Treasuries, the twoyear yield at 1. 7 the fiveyear up at 1. 7. The tenyear up above 2 now lets go worldwide in asia, looking at overseas markets. The nikkei is up more than 2 . This is on talk about the fed rate cut and what anticipation lies in store. The hang seng up a percent shanghai up a percent as well. In europe were also seeing stocks in the green in germany, in france, the cac 40 up a half percent. The ftse up more than half of a percent. Only the italian markets now down and in the red. The new york fed took the unusual step of clarifying comments by its president , John Williams yesterday he stoked expectations that the fed may be more aggressive cutting rates he said central bankers need to cut rates quickly as growth slows. A fedex pert said williams spooe speech was academic and not necessarily a signal that may happen at the fomc meeting joining me now is seema shah how would you characterize this walkback, fairly rare on the heels of williams comments it is very rare it tells us the fed is trying to reassure markets maybe that things are not as bad as a 50 basis point cut in july would suggest. Maybe 25 basis point cut is more likely from here, you know, the market is focusing on what the fed will do in july but also what it indicates it will do in the future i think from here at this point in time, its the earnings season that the fed will be watching closest and does this change at all what you expect the prospect is for a rate cut from the European Central bank with europe, they are in a different situation. In the u. S. We have a clear indication maybe that i think Economic Indicators could be turning and that by the end of the year we will see a turnaround in the u. S. Economy for europe, their outlook is weaker they have been suffering from below target inflation for a long period. If anything happens, it seems most likely that the ecb will be doing some type of action in september. We expect next week at the ecb meeting they will take the time to prepare markets for any kind of moves they will make in september. Lay out for me, if you will, how you see this second half of this year playing out. Where the rate cuts come in to play and where earnings come in to play and how that shakes out the next six months. Right so the way i consider it, risk assets are at the cross roads. What weve seen this year with the drastic move up in equities has been driven by multiples, not earnings i feel multiples need to be validated by stronger earnings thats why this earning season is very important at this stage. On top of that we have the fed to consider. The fed, if you look at the s p moves over the last six, seven months, most of the big moves have been on days where the fed has spoken the fed has been driving the multiples. If we see the fed meeting market expectations, we should expect risk assets to rally strongly for the remainder of the year. If you have got weak earnings you only have a 25 basis point cut by the fed, well see a much weaker move ahead for the second half of the year were at a crucial time right now which will guide us where assets are going for the rest of the year we were showing some Big Companies to report earnings next week. Well see a heavy focus with companies on International Exposure whirlpool, amazon, alphabet. Talk about how the perspective resolution on trade tensions plays into this or whether well see a continuation of this standoff with china. Its interesting you say this with those larger companies, the focus will be on guidance. One of the reasons is for economists its difficult to measure what the impact of this trade war has been and will be so theres a continued second round effect on sentiment which will Impact Business and investment thats why there will be focus on those larger companies, which do trade internationally for my perspective, maybe the market seems to have forgotten a bit about the risk to do with the u. S. china trade war it seems unlikely there will be a full resolution any time soon. We could see repeated escalation a couple of tweaks here and there that will upset markets. That will continue to weigh on multinational earnings and guidance as we continue to talk about what is in store from the fed coming up and Central Banks around the world, what do you expect to see in terms of invests taking on risk weve seen so many people didnt get in on the rallies since the beginning of the year and theyre desperate to put their money to work. As long as you dont see a serious economic slowdown, we do not see an economic recession in the foreseeable future it means people are still willing to put their money to work if you get a dip, qulour moyou likely to see investors rushing back into the market and buy the dip. Thats why any correction we may see over the next few months, if triggered by earnings or a more hawkish fed that will be shortlived. Investors are really desperate to put their money to work seema shah, thank you very much for joining us. Thank you were sure to get more on all of this when boston fed president , Eric Rosengren joins us later on closing bell. Lets get to some Corporate News boeing is announcing a huge charge in relation to its grounded 737 max jet fleet Frank Holland joins us with more good morning. Boeing will take a 4 4. 9 billion aftertax charge related to the grounding of the 737 max the company is bracing for potential payments over several years to airlines for delayed deliveries and disruptions to schedules. Those carriers have canceled thousands of flights since the max was grounded in march following two deadly crashes boeing says the charge will cut its pretax profit and revenue by 5 5. 6 billion this huge hit will produce the biggest quarterly loss in boeings history when it reports results next week. The charge only focuses on the impact of the grounding and does not include estimates of boeings financial liability from the crashes boeing acknowledging mounting costs will make the 737 max less profitable the estimated cost to produce the plane will be 1 1. 7 billion fwhs th in this quarter. Boeing expects the max to return to service sometime in the Fourth Quarter boeing shares are up 1. 4 . Frank, thank you for that. When we come back, why microsoft shares are aiming for a strong open this morning plus the best sports car for your dollar is about to get a little meaner under the hood gm is lifting the curtain on its 2020 corvette redesign well take a look. And earning his title of activist, carl icahn launches a new front in his fight with Occidental Petroleum a busy hour still ahead when Worldwide Exchange retnsur fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. We carry flowers that signifyn why we want to end the disease. And we walk so that one day, there will be a white flower for alzheimers first survivor. Join the fight at alz. Org walk. Theres a live shot of the big apple, new york city, where its about to get steamy and hot. Heat watches and warnings in effect, not just for the city but across much of the nation. Well get into that later. Welcome back good morning heres how your money and investments are setting up today. The stock market is ready to end the week on a high dow futures up on a significant gain 90 points. Looking towards an indicated open lets check on some of the big stocks on the move today shares of microsoft trading at a record high. The companys Fourth Quarter results beating forecasts, driven here by continued froth from its Cloud Business. Microsoft also projecting cloud sales of up to 10 10. 5 billion o this quarter thats above analyst estimates skechers surging today as second Quarter Results topped forecasts. The company saw big sales gains in india, china, mexico, the middle east, and Strong Demand for its womens, mens, sports and street wear lines. Carl icahn filed a proxy statement seeking to replace four Board Members at Occidental Petroleum. Icahn aleleges the board mismanaged its deal to buy anadarko Occidental Petroleum unchanged now in the early premarket. Still on deck, a key design feature that is bringing gms corvette redesign to new heights. And this weekend will mark the 50th anniversary of the apollo 11 moon landing we will look at the new space race and whats next for nasa. Stay tuned this is Worldwide Exchange. Tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Did you know you can save money by using dish soap to clean grease on more than dishes . Using multiple cleaners on grease can be expensive, and sometimes ineffective. For better value, tackle grease with dawn ultra. Dawn is for more than just dishes. It provides 3x more grease cleaning power per drop, which cuts through tough kitchen messes, pretreats laundry stains, and even tackles grease buildup on car rims. Tackle tough greasy messes around your home, and save money with dawn ultra. Brand power. Helping you better. Live shot of the windy city, chicago, illinois. Its 4 16 in the morning by 10 00 a. M. , chicago will be under an excessive heat warning that will last until tomorrow evening. Hot and steamy throughout much of the country after years of being dubbed the best sports car for your dollar, the corvette is getting a huge makeover. The changes are expected to appeal to a new breed of buyers. Phil lebeau got an early look. This is what chevy corvette fans have been waiting for the first mid engine corvette built by general motors. The company taking the wraps off of it at an event in orange conte, california. Why is this important . This is the first corvette where the engine is behind the driver and passenger. That will allow the vehicle to have greater power and performance. The most important thing people will take away is the starting price point. It is going to start at under 60,000. General motor also start taking reservations and deposits, and they expect the first deliveries of the new corvette to begin sometime later this year phil lebeau, cnbc business news, california so still ahead, in the hot seat, an nbc news investigation into the dangers thousands of delivery drivers face as temperatures head well past steamy and later, with Box Office Sales slipping, can two new movie trailers that just dropped last night bring the excitement and the dollars back to the Silver Screen . 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Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. Good morning, hong kong. Good to see you out there. Hong kong, as you can see, cloudy and overcast. Looks like asian markets had a great day today. Closing in the green hang seng up a percent or so the shanghai up a percent. Look at the futures here in the United States. It looks like the Dow Jones Industrial average ready to end the week on a high note. Futures indicated up 92 points nasdaq up 42 points. Anheuser bush inbev is selling its australian operations to asahi in an 11 billion deal the worlds biggest brewer is working on paying down debt after failing to list its Asia Business the brewer said they have not given up pepsico is expanding into africa they will buy the outstanding shares of Pioneer Food Group for 1. 7 billion. And gannett is working out a deal to combine with gatehouse media. Gatehouse media is owned by private equity and is known for aggressively cutting expenses at the titles that it buys. Gannett here up 11. 3 in the premarket. Lets get a check on the mornings other headlines. Phillip mena is in new york with the latest getting ready for a heat waive we sure are tensions are rising between the u. S. And iran this morning after a u. S. Warship destroyed an iranian drone in the strait of hormuz the warship fired on the drone after getting too close and threatening the safety of the ship and its crew. This comes one month after iran shot down a u. S. Drone in the same area. President trump says he plans to nominate Eugene Scalia as his next labor secretary. The nomination comes after secretary Alexander Acosta was forced to resign following fallout from the Jeffrey Epstein sex scandal. And firefighters had to resz cue several people from a roller coaster it got stuck at Six Flags America maryland it came to a stop at the top of the lift hill. All guests were safely escorted off the ride the ride will remain closed while being inspected by certified ride technicians scary sight there in maryland. If theyre going to get on that roller coaster they were hoping for thrills they wanted to be scared yeah. That would do it. Youre right. Maybe they got more than they bargained for. Look at those loops, they could have gotten stuck upside down that would have been scarier maybe because i see these stories it makes me think im good on the ground im all right with that. Have a great weekend you, too. When we come back, the big business of pets one of the hottest ipos this year gives new investors and their furry children something to cheer about this morning. Well just dig in. Plus the walk back heard around the world what comments from fed president John Williams could mean for invests. Futures pointing to strong gains at the open. Worldwide exchange is back after this theres brushing and theres oralb power brushing. Oralb just cleans better. Its the one inspired by dentists. With the round brush head. Oralbs gentle rounded brush head removes more plaque along the gumline. For cleaner teeth and healthier gums. Oralb. Brush like a pro. Fueled by the fed. Futures popping this morning on hopes of more aggressive easing from the central bank. Tech toughness f. A. N. G. Stocks front and center ahead of three big earnings reports next week. Well give you the inside line. Plus the heat is on. Forecasters warning this weekend will be a scorcher with more than 100 heat records expected to be shattered. Its friday, july 19, 2019 this is Worldwide Exchange on cnbc here we are. The height of summer welcome back thanks for being with us im Contessa Brewer. Heres how your money and investments are shaping up halfway through the 5 00 a. M. Hour in new york and it looks like the dow jones is set to pop up about 79, the indicated futures here the nasdaq futures up 36 points on the day bonds now, the twoyear rising 1. 7 is the yield. The tenyear yield is also rising at 2. 04 . Well have much more on the markets in a moment. First this weekend marks 50 years since the apollo 11 moon landing when american astronaut Neil Armstrong took one small step for man, one giant leap for mankind. Jay gray is live at the national air and space museum in washington, d. C. What an exciting time to be there, jay contessa, yeah. An amazing weekend as you talk about. The giant leap still making an impression a half century later. It is amazing to see this museum that honors apollo every day this week is different its special just like the men who made that historic journey two of those, Michael Collins and buzz aldrin expected to be here today as part of the celebration. Neil armstrong, the first man to walk on the moon passed away in 2012 his family will be well represented here its been going on all week. It 14should continue through th weekend and be fun and interesting. I got a chance to talk with Michael Collins yesterday. He said the legacy and lesson he takes from his flight is that weve got to continue Space Exploration but also take better care of what he calls this fragile planet jay, thank you very much. Well have more on this in a little bit appreciate the sneak peek there. As we mentioned, futures are pointing to another day of green arrows on wall street. Fed officials hinted at some more aggressive policy easing. Stocks were trading lower yesterday until we heard comments from new york fed president John Williams. He said the fed needed to act quickly when the economy was slowing and rates were low in a speech he also said its better to take preventive measures than wait for disaster to unfold. Stocks jumped on that news as investors started to bet on a bigger rate cut at the fomc meeting. Notably the new york fed is now trying to cool that speculation. A spokesman said williams was drawing from Academic Research and not hinting at potential policy actions joining me now is the founder of end pra n entrepreneur shares. This pullback was notable from the new york fed saying dont read into it then we saw comments from clarida on fox basically echoing what we heard from williams. How do you read into this . Is citi right to already say were changing our fed call. We think it would be 50 basis points for a while we were looking at 25 to 50 basis points 50 basis points is on the horizon and there was a hint that a couple members of the fed were discussing doing more we have to remember this is the strongest june and july weve had since 1955 for the s p the strongest we had for the dow since 1938 weve benefited quite a bit for the markets this summer. All right chad, when looking at what the expectation is here, after clarida spoke, we saw that fed funds rate jump to 69 expectation for a 50 basis point cut. How do you read this where are you putting your money in terms of this fed cut were believers that theyll go 25 basis points based on the fact that you have virtually full employment, inflation trends look to be improving modestly in the short run. And then Global Growth and Global Financial stress doesnt look all that high so those comments yesterday did not change your expectations in. I would look past those comments i would pet that potentially by the end of the year they go another quarter point. Its all based off of trade related issues as well as globa growth issues outside of the United States at this point. When we talk about trade and global outlook,next week were getting some earnings reports from some of the biggest names with International Exposure. Looking for boeing, caterpillar, amazon, especially these f. A. N. G. Names, the fa in f. A. N. G. How are you assessing the impact of this continued standoff and tensions with china . So traditionally the f. A. N. G. Stocks are very Entrepreneurial Companies. These Entrepreneurial Companies adapt quickly to changes in the marketplace. We saw a hiccup yesterday with netflix. Clearly the International Growth is part of the grop thdrop they. When we think about these companies, theyre spending lots of money, spending 20 , 30 , 40 increases in r d they are able to pivot quickly they also have concentrated ownership. The leaders of the companies can move it. I think well see some mixed results. Certainly with boeing and a few others we anticipate some negativity and i think what i do, when i look at the large cap stocks, i break them down into the traditional sort of more bureaucratic companies that move slowly versus the Younger Companies which tend to be the f. A. N. G. S that pivot quickly i think this will be an interesting summer we saw yesterday microsoft went up, netflix went down. Chad . From our perspective, you now have the market overall when it comes to earnings bifurcated you have large cap tech names that have been moving the revenue line for the s p 500 estimates quite high at roughly a 10 . Like microsoft then you Vice President tice pre the industrials, and those should be more muted lets talk more about oil oil is moving higher on news that the u. S. Navy downed an iranian drone. We got news yesterday that iran captured a smuggler ship, an oil tanker that it said was smuggling oil. How much are you looking at the Geopolitical Impact of what happens with an iran deal and the potential that european leaders wont be able to work out a deal back in the 1970s this type of news would have been catastrophic for oil prices. We would have seen them jump 10 , 20 , 30 on fears of war in the middle east. With fracking now positioning the u. S. As the largest producer weve benefited quite a bit from this news. This is why despite some rumblings in the middle east over the last month or two, oil has been dropping in price and energy is the one sector that is not yet recovered year to date i see continued movement in this direction. Maybe there will be some modest rises, but the fracking is insulating the u. S shortterm and longterm. In the shortterm, yes, you will get headline risk that will make the oil market fluctuate in a violent manner in the long run we are believers that you will see deceleration of Global Growth at china em, that will adjust the demand curve lower, that will have a major impact on oil prices and Commodity Prices over the next three to five years. Thank you both for joining me so early the fed and the markets coming up. Catch a cnbc exclusive with boston fed president Eric Rosengren on closing bell at 40k 30 check out shares of cloud strike the Cybersecurity Company posting better than expected revenues since its ipo they added more than 500 new customers in the quarter and those customers are buying multiple products on the platform. And wework will host an analyst day for wall street banks on july 31st, ahead of its upcoming ipo this comes as the wall street journal reports weworks cofounder and ceo, adam newman cashed out of more than 7 700 million in the company while he remains the biggest shareholder, the move is unusual since founders typically wait to sell holdings until after an ipo. Another name is chewy, the online arm of pet retail giant pet smart reporting its first numbers as a publicly traded Company Generating more than 1 billion in sales on a net loss of just a little less than 30 million. We heard from the companys ceo on closing bell yesterday about the still Untapped Potential in the pet ecommerce space. Two things. If you look at in 2017 the pet market jwas 7 70 billion. Its an average household spend of 900 to 1,000. If you look at ecommerce penetration in the United States, its still low we are still early in the growth joining us is web bushs seth basham do you agree that this is still early in penetrating the online delivery space when it comes to pet products yes i sincerely do i think penetration now is around 15 , 16 of the category on our estimate of a 50 billio market and we could probably see that double over the course of the next five, ten years chewy has to compete with not only amazon, but walmart, target, other specialty retailers. How does it differentiate itself and still maintain margin . Its platform is one that offers extremely good customer service. Almost like youre going into a pet store. You can get Information Online or get information from specialists that you call on the phone. In addition they have a wide assortment of products ones that you cant find in all Stores Delivery isfast and efficient. You can get product when you need it within one or two days and have it delivered monthly. The company eventually increased its first auto ship order discount to 60 from 30 now that discount declines as you keep moving forward. Do you have concerns about its Profit Margins if it has to continue to offer those kinds of discounts to compete with amazon yes, i do 60 , i think, is extreme they put on a 60 discount for first auto ship orders in response to amazons prime day offer, which was 60 off for subscribe and save orders. Theyve taken that discount down, back to 30 , which has been the norm for the first part of this year so if we see them have to compete with amazon which is running 50 off, it will eventually impact their margins or their ability to grow customers. When you compare chewy to other retailers attempting to break into this ecommerce environment, bed bath beyond, you cover restoration hardware, lowes and home depot, do you see that as an ongoing struggle that in order to attract new customers, in order to somehow compete on delivery fees, that you will see shrinking margins or tight margins right across the hard line space weve seen a lot of margin compression, particularly in Home Furnishing iin ining drive wayfairs entry into the space we do believe margins have come under pressure i want to ask about lowes and home depot the new housing numbers does it change how you see the second half of the year for the home supply Companies Home depots and lowes are struggling a bit more. Itsdriven by the macro factors. There is a down draft in demand for Home Improvement retail sales. If we see refinance costs lowered because of a lower fed rate, does that change people, who will refinance and go in and do Home Improvement . Lower Interest Rates help drive housing, refinancing theres usually a 6 to 9month lag between the time in changes in rates and the improvement in Home Improvement sales seth, thank you very much. Thank you. Coming up, this weekend is bringing the heat. Sky high temperatures that you can expect what precautions you can take and how companies are trying to manage their costs that are associated with heat and then its the 50th anniversary of that iconic giant leap for mankind well talk about what it will take to get us back to the moon. Its a real moonshot thats when Worldwide Exchange returns. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Olay ultra moisture body wash gives skin the nourishment it needs and keeps it there longer with lockin moisture technology. Skin is petal smooth. Because your best skin starts with olay. Prpharmacist recommendedne memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. The sun is up in new york city it looks hazy and kind of like a soup out there it will be hot in fact, well get into what the business of heat means but we want to talk about some stories youre probably talking about today in our top trending stories. Frank holland joins me we want to start with weather. Twothirds of the country is just melting in a heat wave. Complete scorcher we have all these heat warnings coming up bill karins oh, janessa is with us from new york with the forecast we will continue to see the heat building across the plains, the northeast and the midatlantic warnings have increased across the east we have not talked about overnight lows theyre going to be enhanced throughout the weekend were seeing lows now, theyre currently in the mid 80s its hard to sleep these warnings have expanded into the northeast i do expect them to go into the midatlantic we have over 40 states, 168 Million People throughout the weekend. Now, this is going to be a prolonged weekend event before a cold front starts to slice through by monday. Lets look at todays highs here when you factor in the dew points along with the air temperature, in cleveland, 107 degrees. That really starts to enhance this high pressure, that shifts into weekend we will see records even for d. C. And into new york city. Hydration is key make sure you have ac running. The interesting thing is you had the new york city mayor getting up in a News Conference this week and telling people, look, we want you to set your thermostats at 78 degrees. It raised the question for me about whether companies would do the same theyre consuming a lot of energy in the middle of the day. But it turns out that a lot of these Utility Companies send out a device that monitors and can help people control their air conditioners from away so its like a plug you plug your air conditioner in. You can turn on the air conditioner before you get there. Here in new york city, theyre focusing on people with the wall units, the ones you put in the window. You cant really control them wifi, so they give you a device so you can control them that way. So instead of leaving them all day, you can do it an hour before, cool the house, ease up on the grid and they give out rewards. A lot of these Utility Companies also then have access to your air conditioner. Thats the tradeoff what do you think . They say in the cases where we have an overload on the system, we could go in and either set your therm stalt hos higher, or we can take a few minutes per hour out of the compression, the creation of cold air and just leave the fan running. It is a constant thing of us trading off a benefit for some of our privacy something to think about especially on a hot day like this today it is really hot even in dangerous heat like this, routine work, it has to continue that includes the vital jobs of delivering packages. Most drivers, those trucks are not equipped with ac temperatures in the cargo area can reach 140 degrees if your delivery is delayed, maybe cut the driver slack theyre working long hours because they have a lot of amazon packages to deliver another bad quarter for the box office q2 ticket sales were down 4 from this time last year the First Quarter was down 16 year over year disneys lion king remake crossed the 1 100 million mark. That blockbuster opens in the states this weekend. Great cast james earl jones, beyonce. Fantastic. Remaking a lot of these movies more reasons for optimism for the box office down the road trailers for cats and top gun maverick dropped yesterday. I think they luck out with extremely high temperatures. People will be looking for indoor things to do when you have a feellike factor of 109 degrees. You want to be in air conditioning so this might be good for the movies this weekend that it coincides with a heat wave whats cooler than the theater . You know what is space. We have some more amazing spacex video this time it shows parachute capsule recovery systems. The giant parachutes will allow manned space capsules to return to earth safely. Spacex hopes to send astronauts to space and back with this technology by the end of this year space travel has come a long way since Americans First landed on the moon 50 years ago. Now were looking to head back reporter 50 years ago the first humans stepped foot on the moon the apollo 11 mission cinched americas dominance in space, a lead that continues but waned after the cold wars close now that is changing liftoff. Reporter Companies Like spacex pioneer reusable rockets that cut the price to go to orbit ushering in a new era of billionaire backed Space Exploration that gives americans more options nasas new Lunar Program is artemis. It would send americans back in five years a feat that can only be achieved with the help of the private Sector Companies are focusing on everything from rockets to moon mining to habitats astrobotic has almost 1 100 million in contracts including recent awards from nasa. We offer nasa a much more affordable opportunity to regularly fly pay loads to the surface of the moon that will open the doors wide open to scientists and explores and Technology Developers all over our country and all over the world. Reporter Jeff Bezos Blue Origin developed blue moon the lunar gateway. A space station that would orbit the moon which several contractors are competing to build. The purpose is for nasa to launch Exploration Missions from there and support exploration of the moon and other locations. Reporter but it will all take more money. Up to 30 billion over five years according to nasa. For lindsay, a former Space Shuttle commander, its not a matter of whether space goes mainstream but when. I want to some day walk into a school and say im steve, im an astronaut all the kids look at me and say big deal reporter for cnbc business news, im Morgan Brennan that might already be the case the fact we can talk about and we consider going to space a possibility means our culture and expectations have changed. I was reading it took 400,000 people to make the apollo landing happen the first time. Now we have private companies, a lot less people, more Technology One day me and you may be up there. Me, way, way after you. Thanks, frank. Will tech stocks take the record market run to the next level or will invests be bitten by the f. A. N. G. Names . The debate next. And later on squawk box, dont miss marc lasry. Stay tuned, this is cnbc boeing will take a 4 4. 9 billion charge in the Second Quarter due to the global grounding of its 737 max planes. The charge is set to wipe out profits. The jet vs have been ground sine midmarch after two fatal crashes. President trump says a u. S. Navy ship destroyed an iranian drone in the strait of hormuz yesterday in what he calls a defensive action the drone apparently got too close to the uss boxer and ignored calls to stand down. The u. S. Military has an increased presence in the area amid escalating tensions 20 of the worlds oil passes through the strait of hormuz wti and brent up more than a percent. Jcpenney reportedly hired debt restructuring advisers. The retailer is looking at options that would buy it more time on working on a turnaround. Jcpenney carries 4 billion in debt that comes due in the next few years. F. A. N. G. Stocks front and center for investors facebook, amazon and alphabet or the fa in f. A. N. G. Will report quarterly results. Joining us now with a preview of what investors need to know is gene munster set the scene for me we heard from netflix with some disappointing subscriber numbers. What do you expect out of facebook, amazon and alphabet . Contessa, from a high level, this is a transition quarter, which is different than the wakeup quarter that netflix had. A transition quarter means there will be headwinds. But i think that the themes are on the broader f. A. N. G. Will be intact at most risk next week is going to be google in part because last quarter they had a dip in their revenue. They had four years of consistent 20 revenue growth. That dipped last quarter thats not the reason why theres a head winwind they have to be more skillful at navigating questions on what potential regulation could come. Google has been largely spared of these regulations and tweaks from regulatory bodies but i think ultimately thats something that investors will weigh more heavily on. And facebook is still in that camp they have regulatory questions i would put those in the headwinds camp apple is a unique case theyre the only one of the f. A. N. G. Companies that have exposure to china. Thats about 10 of their business and that china exposure has been well known i took apple and put them in the camp has probably has more upside than down side. Separately, if you look at the f. A. N. G. Stocks over the next year, i think apple has meaningful upside and could double over the next couple of years, where the other f. A. N. G. S will be leaders more broadly do you feel you got additional insight this week as to whats ahead for facebook and google given the hearings we saw on capitol hill where especially democratic law maesmakers were grilling facebook over libra they were talking about privacy issues that continue to plague facebook we did get some insight, the insight was the temperature of these regulators, intensity they have at doing something. So we think that the messaging, the rhetoric will continue maintain at this level, which will have an impact on amazon and googles multiples if you think what will happen longer term, i think this regulation will be unlikely to yield a breakup. There can be modest regulatory impacts. Both facebook and google have Free Products. Consumers tend to want Free Products if there was greater regulation, these Companies May have to charge for these products and consumers and voter s dont want that we were showing the amazon stock right there. The prime day units you mentioned were up 75 year over year a lot to of new subscribers here now were watching for amazon to deliver on that. Gene munster, stay cool in the heat to come this weekend. Thank you that does it for Worldwide Exchange. Hope you have a fantastic weekend. Squawk box begins right now. I do that, too wait a couple of seconds keep every second for yourself good morning dovish, fed signals raising hopes of half point Interest Rate cut i saw something from bullard saying maybe the situation does not warrant that well see. The new york fed is also walking back those comments. The details are straight ahead. Microsoft shares are soaring to new highs on strength from its Cloud Business well bring you reaction from wall street. Earnings from blackrock hit the tape this hour well bring you an extended interview with larry fink on where the company is putting more than 6 trillion to work. Its friday, july 19th, 2019 we have double digit temperatures today headed higher tomorrow and sunday. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box here on cnbc we are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen andrew is off today. Lets look at the u. S. Equity futures. As joe was mentioning, theres all these hopes out there that maybe youll see a bigger move from the fed, a bigger cut than anticipated based on those comments from new York Federal Reserve president John Williams yesterday. You see the futures picking up this morning after ending in positive territory yesterday right now the dow futures up by 58 points. S p up b
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