Google, amazon, intel, and many others after the bell. Coming up in just a few moments, well talk about todays pullback much more with Hayman Capital Management founder kyle bass will be good to get his thoughts especially on china. Joining us for the hour, cnbc contributor stephanie link is back from nubene are you taking a chance from this pullback to do anything today . Its an earnings bonanza. Im still way behind in the Conference Calls that started last night but yeah, during earnings season, you always get exaggerated moves. So i actually am looking at the fundamentals and trying to identify where there is opportunity. Zille yix this morning was indicated down 6 last night and only opened up down three, but i still think that is an opportunity because they derisked the numbers bristolmyers opened flat, but actually that quarter was really good, bought a little bit of that so im lacking for opportunities slowly, because the macro, obviously, weve got a lot of questions still. So, does today mean that the market is interpreting earnings season overall as a big negative because we were at record highs just recently. No, yeah. I mean, i think that theres winners and losers all the time, but the moves are so exaggerated. The machines see the details, the numbers, and theyre not doing the fundamental analysis, but i think today is also a bit about the ecb and them maybe not being as dovish as what people wanted but if you really listen, theyre pretty darn dovish, so somethings coming down the pike. Listen in the first hour. Listen to that. Thats right. Lets dive in on the big stories were watching phil lebeau with tesla and the airlines, Julia Boorstin with facebook, seema mody with details on 3m, and bob pisani has all of the other key movers at the exchange, but phil, lets kick it off with tesla. Youre looking at a stock right now seeing its worst day this year. If it slides much further, it will be its worst day since september of last year all of this coming despite the fact that the company had betterthanexpected deliveries in the second quarter, but its the automotive Gross Margins thats whats weighing on shares of tesla in fact, yesterday thecompany said its auto Gross Margins in q2, 18. 9 most were expecting them to top at least 20 they were squeezed as they ramped up deliveries of the model 3. On the Conference Call yesterday, elon musk once again said he sees profitability in the future for tesla we believe tesla has is now at the point of being selffunding, and we expect the cash flow, the Free Cash Flow positive in future quarters with a possible temporary exceptions around the launch or ramp of a new product. Guys, tesla shares down more than 13 so far today. Phil, we also wanted to ask you about the airlines big news out of southwest, american, both out with earnings what were the big takeaways . Yeah. Well, thats why were down here in the dallasft. Worth area both airlines reporting earnings today and both of them beat on the bottom line, although they did take a hit in terms of revenue because they dont have the full complement of 737 maxes. Just a reminder american and united both have already said that they dont plan on flying the max. Its not in their schedule until after the beginning of november. Well, today southwest said, look, were not expecting it to come back until january. Heres doug parker, ceo of american airlines, talking about how theyre really trying to get the best guess here, but theyre really not sure when the max will fly again we remain in limbo, as everybody else does, as we wait to hear from the faa as to when theyve come to the conclusion that the aircraft is ready to go back in service again. And again, they will adjust that schedule if they do not get an indication that it will fly before november 3rd or if it wont be flying november 3rd, theyll push it back, like other airlines have. Shares of boeing once again under pressure remember, they said yesterday they may halt production of the 737 max if it cannot meet their projections in terms of being back in service by the Fourth Quarter. Phil, thanks very much. Busy day for you stephanie, boeing down 4 today, 8. 5 for the week as a whole youre a shareholder are you disappointed with sort of drip feed of bad news its very frustrating but remember, last thursday it was up 4 on the news of the charge, remember so i mean, netnet, youre down 4 why didnt they have it all at once . I dont thaink they know. The sense from the airlines is theyre expecting a worse outcome than boeing has guided to so theres a gap there surely you want to get the wobst case out there did you hear the ceo on squawk i knew boeing would be down when i heard that. 75 million of headwinds and they still beat the quarter, you know thats still impressive on southwests side but on boeing, look, i have said this consist qulaevenlt, this is not an easy fix, this is not an easy story in the near term. Its probably going to tread water and on headlines, and thats what its doing but once you get this thing in the air, it will resume higher, i think. And i do believe the cash flow story is just a delayed mechanism, not that its cut and youll never see it again. Turning now to facebook, also falling on the back of yesterdays Earnings Report. Julia boorstin with the latest julia . Well, weve counted at least ten analysts actually raising their price targets on facebooks betterthanexpected revenues yesterday but the stock is lower on concerns of whats ahead. Cfo david a winner warning that facebooks revenue will see more pronounced deceleration going into 2020 partially due to adtargetingrelated headwinds and uncertainty. While the fccs fine is accounted for, there are many unresolved issues. The fccs antitrust investigation, the dojs probe, plus, of course, scrutiny from capitol hill wilf and sara . Julia, thank you. Steph, is this one of the names where the results were good, the share price reaction to the down side overdone, and you want to be picking it up here . Well, its up 52 year to date, so its hard its only down 3 . So its not as compelling to me, but i mean, my goodness, those growth numbers, the ad Revenue Growth numbers Free Cash Flow growth was 92 better than consensus expected, 2. 4 billion in the quarter. Really good stuff. Caution around the second half. And expenses, for sure, but i think clearly numbers are going higher, in spite of that so this stock is actually very reasonable valued. I just think today is a little f. A. N. G. Fatigue, or a little deregulation fatigue, so people just took some money off the sidelines. This is the only one i own of the f. A. N. G. All sectors are low, though, today. Of course, f. A. N. G. Is a lot, but its not like its an isolated setting switching to dow component 3m, which was a winner today before becoming a loss, seema mody explains why. They beat on profits driven by cost cuts, plus sales for the quarter improved in divisions like health care, where it continues to put more money to work, recently acquiring a bandage maker. Still, concerns could and in in china. It was referenced on the Conference Call and that as when shares which were up 5 in early trade reversed course and are now down 1 on the day the company also said its going to slow down its rate of stock repurchases. Sara, back to you. All right, seema, thanks. Lets broaden out to the rest of the market bob pisani has more on what is behind todays pretty broadbased pullback. Durable goods better than expected that may have been a factor. Draghi may have disappointed people by not cutting rates. A lot of reasons why we could be down caterpillar recovering on disappointing guidance, yesterdays drop utx is high after good numbers on tuesday visa is at historic high and though down, had terrific numbers on tuesday if you look at some of the sectors, semis weak. Theres an earnings story. Xilinx, a little disappointment there, but many of these are at new highs. The semis etf just had another high metals and mining, theyve rallied the last two weeks and are selling off today as well. Cyclical groups look like theyre running out of steam here after a pretty nice rally in the last two weeks. Smo of the more defensive names, your Johnson Johnsons, your proctor and gambles, your merck, all are a bit higher today guys, back to you. Bob, thanks very much for that stephanie, in terms of the Broader Market, you mentioned some of the individual names are there any sectors that stand out to you, given the rotation thats been going on it is interesting because bob makes an interesting point in terms of the rotation today. Its actually been a reverse of what weve seen over the last couple weeks, so it will be very interesting to see if the cyclicals can kind of resume and i think a lot of that is going to depend on what we get next week with the fed and the boj, by the way, as well so i think that the macro is going to take over a little bit in terms of which sectors lead, but i think we have to wait for the fed. I mean, the numbers today werent as well received, bottom line, than they have been, and im wondering what the sort of thematic takeaways are from that is it weather . Is it softer Global Growth, maybe huawei issues . Well, i think every sector its kind of stockspecific. So, like paypal, the stock was up huge in the last year, a favorite of so many, myself included expectations were just too high. And yes, they did lower guidance, product transition issues, that sort of thing, but of course youre going to see a selloff on that xilinx, it was huawei, 3m my goodness, you dont want to be anywhere near china auto and thats a big part of their business, so they have problems, but on the flip side, others are doing pretty well. Bristolmyers, we looked at coke, right . How good was that . And visa so i think you have to pick your spots. Weve got markets down what, 0. 6 on the dow with 50 minutes left of trade. Were not far from the session lows as we stand coming up, a massive afternoon of earnings ahead with reports from alphabet, amazon, intel, starbucks and many more well break down what to expect from those results, coming up. Plus, weve got an exclusive interview with hayman capital founder kyle bass. Well get his take on everything from china trade to the feds upcoming decision next week. And as we head to break, a check on our data tracker for today. June durable goods orders climbing 2 , easily topping estimates. It follows two months of declines initial jobless claims fell by 10,000 last week, their third klein in the past four weeks two sets of positive data. Two sets of positive data. Well be right back. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need telps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. When a plan stops being a plan and gets set into motion. Todays merrill can help you get there with the people, tools, and personalized advice to help turn your ambitions into action. What would you like the power to do . Lets cowboy up exhilarating speed. Woo precision control. Woo maximum reliability. Access denied. [ repeats ] access denied. If its not xfinity xfi, its not good enough. For wifi with super powers, get xfinity xfi. And go see, fast furious presents, hobbs shaw. August 2. Weve got 47 minutes left of trade. Heres where we stand in the markets. Lower across the board dow pulling back here about 171 points nasdaq down 1 the russell 2000 index lifts small caps lower as well mixed bags of Earnings Report and less than enthusiastic reaction to mario draghi promising more stimulus this morning. Mike santoli has todays market dashboards what have you got for us today, mike all right, here is what is on the sleet. First, should we fear the cheer . Its going to be our thursday sentiment check right here then, i think im going to need a ruling on this im sayi ining lol at vol could lol be pronounced like that, like an acronym . Ill say yes for these purposes. Applaud, its broad, that would be the market being relatively broad coming into today. And from cheap to steep, thats one part of this tape that seems like its going to get a little bit expensive. So, fear the cheer lets look at a couple different readings of Investor Sentiment first of all, professionals or Investment Advisory services this is the Investors Intelligence poll, it comes out every week and on top its just the s p 500. At bottom is the spread between bulls and bears. So, when this goes up, it means that a lot more bulls than bears, and it maybe is a little bit of a contrarian signal this is from jeff degraff. So, were pretty much in the 90th percentile. Its getting a little bit elevated but keep in mind, a lot of false positives. We were here above 90 we were here so, there is actually not a high hit rate in terms of getting very negative on the market when you get to this level, but on average, a lot of big declines are preceded by this so, its probably a little bit of a headwind but not something that stops a rally heres a different version, aaii really cautious, even though the markets at a high bullishness is in a down trend there, that from early last year, but not really responding. Bearishness is about the same as bullish, 30 above the typical level of bearishness, which says people are still a little defensive, a mixed picture, so you defer to whats been the story in the market, relatively positive. On the small chart, do we see a small pullback on average, you do get a little bit of a slowing down of a rally, a flattening out, a little bit of a pullback we actually have been more or less slowing down and taking a breather here with the s p 500, but its not really a sharp, very timely shortterm signal. Its just kind of part of the general context of whats happening in the markets. All right, mike, see you in just a bit stephanie, really quickly, the sentiment numbers. Its not euphoric. No, its not euphoric. What does it tell you and it youve record levels of outflows from individual investors, too so, look, i think theres definitely a defensive tone in the market, and thats what weve been talking about up until the last couple of weeks so lets i think that can unwind if people get in a little more confidence in where were going on the macro. Up next, we will look at which retailers could benefit from an antitrust attack on big tech, specifically amazon. A leading analyst gives us his call in our word on the street. Plus, for the Third Straight month, analysts have a buy rating on amazon it reports after the bell, along with alphabet and many more. Dont miss that coming up here on the closing bell. Your daily dashboard from fidelity. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. Welcome back time for word on the street. Bank of america putting out a couple goals on gaming stocks, downgrading Electronic Arts to neutral and upgrading Activision Blizzard to buy. The group seeing growth concerns on the mobile and fifa games meanwhile, it says the Competitive Outlook for activision is improving and that its on the verge of an inflection point. Etig upgraiding etsy to buy, 79 price target there, citing increased Intrinsic Value based on the Online Retailers Free Shipping initiative and acquisition of Instrument Company reverb and positive trends among other reasons bernstein out with a note does an antitrust attack on big tech help retailers . Lets bring in the analyst behind that note in a word on the street cameo with Brandon Fletcher of bernstein. Brandon, do you actually think that antitrust scrutiny of a company like amazon will improve share Price Performance for retailers . Yeah, i think it takes a while for you to get the changes were looking for, but once a Large Company gets in the crosshairs of regulators, and frankly, just competitors deciding that there are no holds barred and they need to come after their competitor in any way, it gets very difficult. I spent the bulk of my career at walmart, and we used to have 10,000 lawsuits a year, and it makes it hard to operate when you face incredible scrutiny and i think that phase is coming for amazon soon. Do you think there are serious grounds to hit amazon in the retail space do you expect it to go ahead and to really punish them, make them sell off certain parts of their business yeah. So, i think that whats normally difficult about antitrust is we tend to think of it in terms of mergers because in the clayton act violation, which was designed to handle mergers, thats where most of the action is, but the very first antitrust act, the sherman act, talked about behaviors. And i think thats where amazon may face more scrutiny there are some, i think, reasonable arguments for illegal restraint on trade that you could make against amazon. There are some things that theyre doing with the way they deal with their vendors that you could argue were difficult restraints on trade. Their subtleties about how the oneday shipping program works, which will cause some vendors who used to be able to ship on their own to really have to go through fulfilled by amazon, which is extremely profitable for amazon and there were even practices which they very recently stopped, like forcing vendors to not have lower prices on other websites, which they only stopped because the senator was sniffing around for antitrust concerns so we think its inevitable that there will be a shoe that will drop again, its not a breakup call by any means, but pressure on amazon creates room for others to operate like who, brandon throw out some names of who benefits the most. Absolutely, yeah. So, walmarts powerful enough to probably hang in there on their own, but you need some help in order for a kroger and a target and a best buy to get some extra room let me give you a tactical example how those pricing rules become difficult we think of amazon as the price leader in every category, but they actually dont sell the most vo