Tradewinds. You have to give it to the market, amid concerns about antitrust, we are still at record highs. Romaine lets dig deeper with our markets reporters. I am thinking about those record highs. Nasdaq, s p 500 tack index and stocks at common highs. The Common Thread is technology. 6 ,s leading the way, up today up 3. 1 . The stock putting in its first alltime high since april. Texas instruments helping out. We have Market Reports after the bell. Facebook and tesla, amazon and apple. Thats take a look at the longerterm chart of the nasdaq 100. Much of the fears around the possibility that big tech could be regulated, but last year put volatility, there is another record high. One reason to think strength could continue. We see a series of bullish higher loads telling you that the momentum may just remain bullish for a while, but watch consolidation down to the moving average. Tech and stocks are bullish. Another stock reaching a record is chipotle, the food giant. Highest since 2006. This is after its previous record high on july 18. Earnings were better than expected. Sales increase the most in two years and a 10 gain in comparable sales growth also helped out by the biggest yearoveryear increase since the First Quarter of 2017. Digital delivery, innovation and stronger marketing fueled the sales jump. News, bestreaking buy is elevating what they call a veteran, a 30 year veteran into the role of cfo. That is none other than matt, who was pleased to be chosen. Scarlet. Scarlet still with us is sarah ponczek. We are waiting for facebook results. I want to get the idea of small caps. How do they compare to the big caps . We are seeing more growth as the general economy is still incredibly strong, that you can divide it into two groups. One International Exposure and the other domestic. You want to stay with domestic. That is why we see enterprise tech outperforming. Everybody domestically and internationally, because you dont have the trade war aspects, is upgrading the technology that runs their companies. There is a long road ahead for that kind of upgrade. Romaine we are only 25 through the earnings season, but with regard to trade, have we heard much in regards to impact . We know boeing has talked about impact, but have we really seen any widespread impact. Is a surprise one way or another, it would actually be that companies are actually handling the fallout pretty well. At this point, it has been narrated, unless we see further tariffs implemented, they know what they have had to do in order to absorb the changes, whether that is raise prices, pass costs onto consumers, but largely, we have not seen a huge impact from trade and tariffs. We have seen companies dealing with it well. Caroline what is the one number . The daily back to the daily active users or revenue . Bottomline line eps. Average revenue per user. Question is, with instagram doing so well, how much more can they stock the channel. With monthly and daily active users at 8 yearoveryear, the question is, with that small amount of growth, you have to push that in order to get the top line growth that you want. Reportingfacebook Second Quarter activities, 1. 59 billion dollars. Shy billion dollars, just of overall expectations. Overall, we are seeing mobile ad 91 . Ue, . 91 down versus the previous year. They are seeing a beat when it comes to Second Quarter revenue. That included a Legal Expense on the ftc settlement. The Second Quarter is lumpy, because there are extra numbers. It includes 1. 1 billion on all terra. Line, it handily beats the consensus estimate of 16. 49 billion dollars and is better than the highest estimate compiled by analysts. Romaine why do people continue to bet against this company . Abigail mentioned this being the anniversary when they had that quarter where they surprised everyone, stock fell, the biggest decline on value basis, but the interesting thing is they still have the eyeballs, people are not leaving the platform, they continue to post Revenue Growth and profit, even when you factor in the fines and some other hits to profit, they continue to be the juggernaut. When it comes to facebook and some other names, people look at the immense growth we have seen and you look at the rise we have seen in share prices over the past decade and people say this cant possibly go on for much longer. You hear it from people coming out and talking about bubbles, then they flag privacy concerns. You just think this cant go on forever. Scarlet i know this is something that facebook gives overall, but should they break it down into facebook proper versus instagram . Thatthink they would show it is accelerating for instagram faster than for the basic newsfeed. Scarlet what about messenger . We are just getting to the point where they are starting to generate revenue from messenger. I think the libra thing longterm is more interesting than whatever they are doing today. That is the play, but it is a longshot play, monetizing the platform. Caroline the regulations have got to be a key concern. Wee a headline saying know that the department of justice is looking from an antitrust perspective. The ftc, perhaps why we are seeing the after hours move up more than 3 on the revenue. Came with theeat announcement yesterday department of justice and now the ftc. It has been front and center, but i thought Bloomberg Intelligence had a great headline, the impact and outcome of the fallout of these investigations is years away. You have no idea if they are illegal find something or something to carry it to tear these companies down. While you are dealing with the headline effects, we saw it hit these big companies, but throughout the day, we saw each of them climb higher and we are not going to get the outcome of this in the near term. One year ago, we kind of had that moment in time where this question came up and it was interesting to watch investors and their expectations for the bottom line of facebook relative to expectations on regulation. For a moment, they were like, this could get squishy, then they said it was not going to happen. You saw what happened to the multiple. Its going to be interesting to watch google this quarter with what they are doing with youtube and the changes to the algorithm. Recognizedbviously that there are issues socially with what is being promoted and how much that will cut in. Last quarter, it did cut in and investors got squishy about that. They are dealing with the same thing on different windows. Scarlet here are facebooks results. Revenue beating the highest analyst estimate. 16. 9 billion. Analysts were looking for just under 16. 5 billion. As a percentage of total ad revenue, up from 91 . The number was messy, because there are a couple of onetime items. If you back out from the expenses, including 2 billion for the ftc settlement, it was 1. 99. Facebook is being investigated by the ftc over antitrust after it settled the investigation to its privacy issues. The investigations continue either way. We want to thank our panel of guests. He is going to stick around to give us analysis on companies reporting, but sarah, giving us context on the earnings that we did get. That does it for the closing bell. Taylor is stepping in, where we will have much more on facebook currently trading higher, including looking ahead to tesla. This is bloomberg. Caroline live from new york, i am caroline hyde. Taylor i am taylor riggs. Romaine i am romaine bostick. Caroline record highs in the nasdaq in the s p 500. Romaine the question is, whatd you miss . Caroline Growth Drivers boost facebook, but results coming as scrutiny on big tech grows. As the state of the u. S. Manufacturing world has its ability to make money, that is under the spotlight. Plus, valuable assets. The ceo of an Investment Management tells the firm how she is putting 200 million to work. The facebook numbers are unfolding. Not only are they beating revenue, they are taking hits in terms of more money set aside for 5 billion that they had to settle with the fcc. A new investigation when it comes to antitrust. David patrick, author of the book the facebook effect. Also, founder and ceo of a platform that crowd sources earnings estimates. I have to say, you cant bet against companies when it comes to continued advertiser lower. The worry about another antitrust investigation coming from a different arm, apparently informing the company back in june, yet more scrutiny cant be good. Right. Are the finances are explored. They have a unique facility for advertising that advertisers want to use globally. That is a superb blessing. Investors dont think have ever been faced with a Comparable Company in terms of trying to factor in what is going on long term. Shortterm they will keep raking in the dope. If you look at the list of investigations they disclose in all the countries, singapore, eu, u. S. , congress, justice department, it is a huge list and ultimately, i believe the answer to all this is going to result in lower profits, because remediating the problems they have caused will require a change in the business. Romaine we are getting results from forward, adjusted eps coming at . 28 per share. The estimate was . 30, so they are missing for the quarter, the fullyear adjusted eps also missing consensus. Shares down about 1 . We will dig deeper into the numbers and bring you more later. Getting back to the conversation lotacebook, we talked a about the potential surprises. We got 17 billion in quarterly revenue, 5 billion that is a third or less than a third of quarterly revenue. These are numbers that are high but manageable. That is why we are not seeing a negative reaction. I dont think investors care unless it is systemic to the Business Model. If you want to make the case that this is microsoft in the late 90s, where you get antitrust issues and that puts a crimp on the multiple for the next 10 to 20 years, i would buy that. But i dontible, buy the thesis that this will have an impact on the bottom line. That is why you see facebook toward new highs, where a year ago, you saw investors saying what will that bottom line look like . That seems like it is outoftheway and these fines will not impact the Way Investors feel about pushing the top line to the bottom line. Taylor as we talk about facebook shares, brushing off antitrust concerns, we dig down into a company, even though facebook itself might see user growth growing, whatsapp, instagram, the other components that make up facebook are what investors are hoping on. Which one of those is key . What is driving the growth . Certainly, whatsapp is not driving financial growth at the moment. Instagram is an extraordinary performance story, but it is relatively small. It is an incredible ace in the hole for them. It was a brilliant move, if you look back, they made a great move. However, is a big enough to make a difference . It doesnt matter in the long run if the fundamental way its brand makes money is the same as facebook. This is where i disagree with lee. I do think the bottom line could be affected. Im not saying tomorrow or in a year, but i will say, society is not satisfied with the prophets this company is making by commanding our attention and the consequences that that has on all of our lives. I predict that that will be remediated and it will affect profits. Caroline at the moment, the growth of this business is coming from asia. When youre looking out additional users, they now have more than one billion active users coming from asia. Has not been monetized in the same way and i dont feel that asia is worrying about privacy and antitrust in the same way. Is there an area that they could be focused on . The geography thing does come into play, although we are seeing internet becoming more organized as we go. What is going on in russia now, in china, asia at large is a huge area of growth, which i think they will continue to be able to monetize. I completely agree longterm with what you are saying and not only for facebook, i think we will is screwed longterm with that. I think amazon has issues around that. Once the consumer is able to take control of the information that it leaks onto the web and how companies advertise to individuals, and basically the consumer being able to grab a piece of that, that will put a dent in all of the Business Models of these online advertisers. I just dont think its going to be tomorrow. The question is, at what interval do you start to knock the multiple because of that . I think you need to start to see some platform and company get that model right and even a small scale would give the market a roadmap to how that can become big. Romaine we will have to leave it there. We want to thank lee, he is staying with us and david kirkpatrick. Before we go to break, want to update you on ford, shares moving lower after the Company Forecast annual profits that trailed most estimates. It also missed on quarterly results. It is blaming a lot of the slump on a decline in business in china. We kind of knew that was coming. The company has said it will be cutting jobs and shifting its Business Model toward bigger cars. We will have more coming up later. This is bloomberg. Romaine quite a few earnings coming. We can start with facebook coming in above expectations. Gettingumping up by 2 , closer to the alltime high. Paypal beating its quarterly estimates, but it appears they are lowering guidance for fullyear net revenue, shares down 5 . Ford seeing lower estimates because of the slump in china, then you see the maker of invisible line also guiding lower down about 19 . Taylor we are dealing with earnings, joining us now is bloombergs detroit. Chief. And founder and ceo of estimize. You had a few minutes to look over these numbers. We knew china was going to be the downside to means china was a little worse than we thought. It was. Also, north america was not so great. Overall, shares in aftermarket trading right now, not only missed the quarter but the outlook for the year is less than analysts were expecting. Lot, but it is a surprise. They are having trouble in china, but they are losing money. Not just that the market is not doing well, ford is not competing well. Well in termsoing of market share. They dont have the right vehicles and it is a tough place to business. Ford its not very good there. They got there late and they are having trouble there now. Caroline we have got tim stone saying we have seen good results in the first half, but there is a lot of work to do. Otherwise, it wouldnt be fun. Whether axing thousands of people is fun, we dont understand. Give us an idea of whether that is reflective of the concerns. The question is, what do you expect him to say . That giving the same thing investors feel, which is, that is out of our control. Of theo at the whim macro factors affecting these markets that it is hard to blame him and it is hard to blame investors for slinging this stock all over the place and for other investors to say i dont want anything to do with this because i dont have any ability to control the outcome of my trade here, given that i am right about these factors when i could be wrong about other factors off the board. Romaine when you look at the results today and look back at the announcement ford made a couple months ago about cutting jobs, what is the structure or the future not only of forward, but gm into big automakers . Are they just going to have to be leaner operators . Is there structural change in the marketplace that will not revert back to what these companies are used to . The u. S. Car market is softer. Even though china is important, they make a lot less money there. When the u. S. Is softening, it just makes the attraction in other parts of the globe. In fords case, you have job cutting they have to do. They have new suvs coming out this year that they have not got to the market yet. In terms of bringing the business back, with that backdrop, with a softer u. S. Market, not a terrible one, but one that requires more incentives for profitability and softer sales, youve got money being poured into things like effect electric vehicles and self driving cars, none of which is going to make a profit for several years at the least. You have investment and engineering costs, something that will not bring you much revenue, then your core operations, the biggest markets in u. S. And china being challenging. That doesnt mean they cant make money, but they are going to have to get leaner. Taylor speaking of that, we will be looking at tesla next. Thank you both. Coming up, the ceo of Investment Management tells us where she sees markets and the fed coming next. This is bloomberg. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Mark i am Mark Crumpton with first word news. Former special Counsel Robert Mueller has finished testifying before congress. He appeared before the house judiciary and Intelligence Committee today for more than six hours on his forged 48 page report, on russian interference in the 2016 u. S. Election, mueller says interference was not a hoax and not an isolated episode. Your investigation, did you think this was a single attempt by the russians to get involved, or did you find evidence to suggest they will try to do it again . It was not a single attempt. Sit heredoing it as we and they expect to do it during the next campaign. Warned there should be a more robust effort to protect against future interference. Adam schiff says investigations will continue. Your report for those who have taken the time to study it is methodical and devastating. It tells the story of a foreign adversary sweeping and systematic intervention in a close president ial election. That should be enough to deserve the attention of every american, as you well point out. Mark former Intelligence Committee chairman devin nunes called the hearing a hail mary attempt to convince the American People that collusion is real and concealed in the report. Among congressional democrats, the Russian Investigation was never abo