Musk and ford, a rough road ahead for the automaker. Those shares head for a lower open today well tell you why all this earnings news plus an ecb meeting. The European Central bank expected to lay out the ground work for policy easing down the road and this could put more pressure on fed chair Jerome Powell to do the same. Its thursday, july 25th Worldwide Exchange on cnbc begins right now good morning welcome to Worldwide Exchange. Im dominic chu in for Brian Sullivan the dow looks to be hovering around flat at the open. We would open up around 24 points for the dow if these futures gains hold into the start of regular cash trading. The nasdaq and the s p 500 coming off alltime intraday record highs and closes. The dow is less than a percentage point away from joining that alltime high club as well. On the bond market side of things, were watching yields as we do every morning here a tick lower tenyear note yields moving to 2. 3 thats a sharp move to the down side the twoyear note yield, 1. 81 lets go worldwide a sense of positivity throughout the globe. In asia trading was generally in the green. The nikkei up by a quarter percent the hang seng up by a quarter of a percent a half percent gain for the shanghai composite on the european side of things, that green carries over to that trade. If you look at the major bourses there, the cac in france up a half percent the german dax flat. The ftse 100 in the uk as Boris Johnson takes on his role as prime minister, theyre up bay tenth of a percent lets get to the top corporate story this morning and one of the main stocks well be watching all day today facebook out with impressive numbers after the close yesterday, but warning of slowing growth possibly ahead. Frank holland joins us now with more on that facebook story. Good morning. That warning and mounting regulatory issues are not making invests flinch you can see now facebook up more than a percent and a half this morning. The company reporting better than expected profit and revenue in the second quarter. User growth in line with estimates. Average revenue per user topped forecasts by a wide margin the results did include a onetime 2 billion charge address part of the 5 billion settlement with the federal trade Commission Even as facebook resolves one probe, its disclosing another and said the ftc began an antitrust review in june and also announced a probe launched by the department of justice this week. On the Earnings CallMark Zuckerberg repeated his call about regulation and said facebook is trying to do its part this is a big shift for us, were trying to build trust with the billions of people people care about privacy is always important to the services we provide and now its more central for our future vision of social networking. Its critical we get this right and well build it into all our systems. Facebook said new procedures will raise costs and slow Revenue Growth significantly into the next year dom, back over to you. Were watching shares of tesla. The automaker posting a wider than expected loss on disappointing sales numbers. Deliveries were strong but margins were not that was the primary driver for the huge bottom line loss. Elon musk says he will continue to aim for positive earnings but the main focus will be on volumes. We believe tesla has is now at the point of being selffunding, we expect to be cash flow positive in future quarters with the possible temporary exceptions around the launch of new product. As you can see here, tesla shares are off by 11 in extended hours trading the shares right now 236. 50 well keep a close eye on those tesla shares heading into the opening bell. The parade, the barrage of results marches on today it is the busiest day of earnings season today. We have an estimated 52 companies within the s p 500 reporting results including the likes of 3m, comcast, amazon, alphabet, starbucks, a lot of them joining me now is gina sanchez, a cnbc contributor gina, the earnings trends so far have followed a similar pattern from previous quarters in that expectations were lower going into the season. Is seems as though were having a better earnings season than we thought. Is it too early to say well have Earnings Growth this time around dom, youre right thats a standard playbook, which is to go in with lower expectations and set up for a whole bunch of beats if you look at the degree to which theyre beating and missing, its about the same historically so you could argue that, you know, expectations were reasonable however the actual numbers are slowing. We knew that would happen. We are getting more cautious reads. If those cautious reads are taken into q3 earnings and q4 earnings, well have to actually see a decline in estimates there. Which means that the second half wont be as will be worse than expected. So as we talk about this is still the early part of it. Were not yet at the Halfway Point for earnings season. Are there particular points of positivity that youre seeing now . If so, is it specific to any one or two Industry Groups in particular were looking at a 25 basis point cut priced into the market and largely expected and powell has not done anything to change that expectation i would say thats probably going to happen. I think the biggest beneficiary is the financials. We are seeing some momentum in terms of financials and thats steepening the yield curve even though earnings are slowing, theyre not that bad. Were not going into a recession in the second half so the fact that the fed is cutting rates seems counter intuitive. You see the long end of the curve as pricing in potential inflation. And were actually hearing stories thats true c. A. T. Talked about rising labor space. The consumer is talking about rising prices. Thats keeping the long end up and the fed is cutting the short end, that is great for banks that steep yield curve, we have not seen that in a while banks will benefit from that is it fair to say at this point, with markets now at record highs, because we can see that about the s p, we can say that about the nasdaq composite, is it fair to say that stocks are priced almost for perfection at this point given the trade outlook, given the earnings outlook, Given Central Bank intervention and more down the line or whats anticipated, are stocks now maybe a hold or are they still a buy i think stocks are a hold broadly thats correct when you dig into the markets, some sectors have maybe a little more negative pessimism priced in because of the trade war, which is the one thing that held down valuations. So we saw a big pop yesterday in the semis because you saw a few earnings beats, everybody said great. This is fantastic for the semis that was Texas Instruments a but i think the valuations in the stock market across the board are too high for what we are going to see in terms of just normal cyclical slowdown. Were not even talking recession. Thats not even priced in yet that tells me this will have to moderate i would not be buying stocks right now. All right gina sanchez, thanks for those thoughts. When we come back on the show, the ecb setting the stage for a major policy shift that could put more pressure on the fed to do something similar. Were live in frankfurt coming up next. And built ford tough but not Strong Enough to withstand wall streets wrath as shares of ford plummet premarket. Those details coming up. Later on, what samsung has in store for its problemprone foldable smartphone. Remember that thing . It could be a fix. Pot. Is at some in find out when Worldwide Exchange returns after this fifty years ago, humanity went to a place it had never been. 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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. The European Central bank meeting today with a policy decision is due out at 7 45 a. M. Eastern time its about 2 1 2 hours away. Theres huge implications for europe and the Central Banks around the world cnbcs Annette Weissbach joins us from europe what can we expect from europe and mario draghi m theres no rate cut predicted for this time around theres a 30 view that mario draghi will act as soon as today. But others think it will be september because they will have more evidence of the cooling down of the economy and what it does for inflation expectations. Mario draghi was so outspoken at the annual gathering comparable to joel, this happens in sintra, portugal, the likelihood for him to preempt a fed move is not zero we can expect at least some fireworks today from the ecb the minimum we should get is a very strong signaling towards the big package in september, but there is the outside chance of a rate cut as soon as today in order to really convince the markets that the ecb is a credible institution and that they have enough fire power to actually combat the very slow inflation environment currently in the eurozone. Annette, the policy is one thing. The policy is driven by people as well. So what can we expect from possibly Christine Lagarde after she takes over as European CentralBank President different than what mario draghi is putting on the table right now the message that Christine Lagarde will be the next president was taken on very well by the markets she stands for more continuation of easing, something mario draghi has done in the past successfully the head of the bundesbank would have been a different signal to the market but also the Banking Industry is cheering shes known as being someone well connected to the banks, and probably someone who would put a tiering system forward, which would alleviate the pain for the banks. So i guess Christine Lagarde being a politician would stand for more easing to come here in the eurozone back to you. Annette is a weissbach, thank you very much for that. Still on deck, another china u. S. Trade war casualty. The stars not aligning for one stock set to open down more than 20 today. We will reveal that name coming up next. And dont forget to rate the trip how uber is dealing with the fallout after losing two keyboard members in one day. Worldwide exchange is back after this here you go little guy. A cockroach can survive submerged underwater for 30 minutes. Wow. Yeah, wow. Not getting in today. Not on my watch. Pests never stop trying to get in. We never stop working to keep them out. Terminix. Defenders of home. Welcome back to the show some stocks to watch this morning, ford earnings missing forecasts. Results were hit by charges to restructure divisions in europe and south america. Nearly all of the countries profit came from north america where pickup trucks drove margins there. Ford issuing weaker than expected Earnings Guidance for the year shares of paypal are dropping as well results did beat forecast but the company is lurior luring it revenue outlook for the full year shares are off 3. 5 . Alliant Technology Falling 24 just today in the extended session. They reported better than expected results, but shipments fell short of estimates due to shorter growth in north america and uncertainty in china align slashing its Third Quarter guidance those shares off by 21. 5 . Uber losing two more board members. The company says Arianna Huffington and nat kohler have resigned arianna said she needed to concentrate more on her own businesses those shares just about flat still to come, new developments in the iranian tanker crisis as investors remain on edge over a possible escalation of tensions in that region we will speak with former saudi aramco executive Vice President sadad e Al E Husseini who say irans leaders need a wakeup call thats coming up 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. Welcome back in. Good morning heres how you and your money and investments are shaping up today. Stock futures pointing to a slightly, slightly higher open for the dow, up by 14 points the s p would be up by just under 1 point. The nasdaq down just fractionally there all of this after the s p 500 and nasdaq hit record levels on an intraday and closing basis yesterday. Treasury bond yields there moving to the down side. The tenyear note yield at 2. 03 . The twoyear at 1. 83 . When we come back, why mixed results from facebook has invest scratching their heads this morning weighing slowing growth with a top and bottom line beat. We break it all down coming up next and why the executive exodus and brain drain at tesla may finally be impacting its bottom line and hope for profitability and antitrust risks loom large ahead of amazons big report the numbers you should be watching and much more when Worldwide Exchange returns right after this take prilosec otc and take control of heartburn. So you dont have to stash antacids here. Here. Or, here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. They have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again cake in the Conference Room showing em youre ready. To be your own boss. Thats the beauty of your smile. Crests three dimensional whitening. Removes stains,. Whitens inbetween teeth. And protects from future stains. Crest. Healthy, beautiful smiles for life. F. A. N. G. In focus facebook shares trading higher on better than expected sales. Up next, amazon ready to report Quarterly Results after the close. Geopolitical hot spots Oil Prices Rise amid concerns in the middle east. Plus prescription for lower prices the white house reportedly preparing an executive order to cut medicare drug costs. It is thursday july 25th you are watching Worldwide Exchange on cnbc. Welcome back to the show im dominic chu in for Brian Sullivan lets check the other top headlines. Frances rivera has the latest. Good morning there are growing tensions with north korea after the country fired a pair of short range mess amissiles into the s. This comes ahead of a joint military exercise next month between the United States and south korea. Right now National Security adviser john bolton is in south korea trying to revive stalled Nuclear Talks with the kim jongun regime. After 12 night s of protest in puerto rico, the puerto rican governor finally stepped down. His last day in office will be august 2nd jeffy epstein is on suicide watch, two sources told nbc news he was mysteriously injured in his new york jail cell wnbc reported he was found on the floor in the fetal position semicon shus with marks on his neck reports indicate he may have tried to hang himself while other claims the injuries are not serious and he may have staged a Suicide Attempt as a ploy to get a transfer a fourth source says an inmate may have carried out the attack the investigation is under way to determine what exactly happened his lawyers have not returned any requests for comment hes currently being hailed in new york citys Metropolitan Correctional Center in manhattan as he awaits trial for conspiracy and sex trafficking he has pled not guilty and was denied bail last week. Those are your headlines thank you very much stock futures now pointing to a very stable open if these losses and gains carry over to the opening bell, the s p would be flat, the dow jones up by 16 points the nasdaq bearing the brunt of the negativity, off by 4 points. Results last night from Tech Companies weighing on results. The tenyear note yield, 2. 03 we have complete Team Coverage deirdre bosa joins us from Silicon Valley dom, Facebook Trading slightly higher in extended hours after the company beat on th