Before the open this morning along with twitter overnight in asia, you will see what was happening there the nikkei ended down by almost half a percentage point. Hang seng was down by 0. 7 shanghai in china, you did see stocks higher. Up by a quarter percentage point. In europe, the three major averages had all been in the green. The dax up by 0. 3 the cac up by 0. 4 the ftse up by more than that. Italy and spain stocks there weaker spain down by 0. 7 in the treasury market, again with the gdp number coming up later this morning at 8 30 the tenyear yielding 2. 069 everything that happened with the ecb yesterday what that means for the fed, well talk about all that coming up in a bit. On the squawk planner, we have first look at gdp in the Second Quarter thats on tap. Forecasters expecting an increase of 1. 8 after a surge of 3. 1 in the First Quarter on the calendar we will hear from twitter, mcdonalds before the opening bell next week it gets crazy. It is the busiest week of earnings season. Well hear from more than 150 s p 500 companies. Apple, pfizer, verizon, qualcomm and chevron also set to report others, toyota at the end of the week qualcomm, people will be focussed on that some other stocks to watch, we have volatile trading taking place in amazon shares that companys earnings missed estimates, though revenue jumped 20 . That was the good news from the same period a year ago and beat forecasts on that side of the ledger margins were squeezed by bigger investment in nextday delivery. Aws reported 37 growth, which was a beth shy of it shy of whas expected the cfo saying we expect well work through that, meaning the cost of that for the next couple of quarters the prime delivery, you mean . Yes but when the dust settles we will regain cost efficiency when you Say Something will take a couple quarters to figure things out having said that, amazon gets way more leeway from the street than anybody else. If you imagine walmart coming out and saying Something Like that the stock would be off 1. 5 thats like a blip i was looking at it, you know, i dont follow it that closely, i think just over 2,000 is the alltime high right when theres some troubles when theres troubles, that thing back at 1,700. Its mid 1,900s now. There is the chart why the dip in june was that weve had the if you look at it there, it wasnt that big. The dip we saw was december. Thats the entire market. Yeah. It was like at 1,500 or so all the f. A. N. G. S went down. There were no trillion dollar market cap stocks. Now theyre all pushing that number the interesting thing out of this is what it competitors what it means for walmart and microsoft. I think if you look at that if you look at the competitors, their story probably says more amazon never really cared about profits, after four straight quarters of record profits, maybe we got spoiled. What you care about with amazon is sales i saw 20 , im like 20 over last year . Thats what i would care about then i realize that doesnt include prime day. That came after the quarter closed theyre spending money getting it there immediately thats a huge cost. But 20 growth in revenue but the point is once you do it to push walmart to do that, if walmart ends up having to do this, the pain could be so real walmart came out with their own announcement saying you will get free twoday delivery and you dont have to have a membership fee and you can go to the store, pick it up theyre all trying but they keep pushing the boundary they continue to get leeway from investors. They said this is what the plan would be thats the bigger question when do amazon investor says no more we wont allow you to keep investing like this. I dont think thats happening any time soon. I expect the negative people on amazon we dont need to mention names, but the negative ones shorting it will say see, i was right. I was right. 1970 i called this at 1,000 sharing of alphabet are up sharply. Quarterly revenues jumped 19 driven by strong search and youtube ad sales on the Earnings Call ruth porat says youtubes revenue was the second largest contributor last quarter they blamed youtube on decelerating growth the second derivative. Glad i took calculus the board also approved a Share Buyback of up to 25 billion. Sounds like a big number its a huge market cap, so it really isnt google looking good today. 93. Thats a move. Shares of starbucks are trading higher, too. The chain posting betterthanexpected Quarterly Results and raising fullyear guidance samestore sales rose by 6 . Results were driven by Strong Demand for its new beverages in the u. S. And in china. All of those stories that you heard about the china blowback, not the case for sbtarbucks big news this morning this i think is a bigger impacted than whats happening in Silicon Valley. Softbank launching a new 1 108 billion fund they will invest in Companies DevelopingArtificial Intelligence technologies. The list includes apple, in the first fund, microsoft, foxconn proceeds from the first vision fund will go into that in terms shakeup in the way sill son vicon valley has worke would argue that softbank has had a bigger impact in terms of valuations thats what i wanted to ask about. The idea they would get people investing in this, given the performance of some of Companies Like uber uber, its all like that. Theres a number of investments where they have had huge return. The idea that they would come up with another 1 100 billion, i thought saudi. Most of the first fund was saudi money. 45 billion of the fund. Where will they get this money from everybody says size is the enemy of returns how is it possible this could ever work . At least at the moment it seems to be working. When i read it, i thought the same thing but youre also right to point out what its done to valuations and the private markets beforehand and it kept stuff private longer its changing the whole dynamic. We will continue to keep our eyes on masa son we have the sprint transaction happening this morning, the sprint tmobile deal which is a masabacked deal he owns sprint all right how does Silicon Valley feel about this they hate this. They think this is crazy all of the smaller funs think you cant compete. Hes saying i will buy everything in one space. And if i buy everything in one space i will one. Venture capital model even if two of them fail its like buying every square on the roulette table. Yes, then you win thats his hope. Whether it works, well see. I can tell you it does not work you tried doing that . On the roulette table the house never loses the house never loses. Right. You see people walk in and play the 4s i have a system that is only ruined by the green thing. You bet on you keep doing it same thing . Sooner or later double zero blows that up thats why the house never loses. I still think you can do that then you think its so easy, you try doing it again you cant repeat. It instant stay red forever, right . No, but then you have to double your bet every time then green comes up and blows you out of the water try that thats why i dont like the feeling of right its set up so the house wins. I do like that they have atm machines so you can get more money. Coming up, intel shares surging after beating expectations well dig into the companys quarter straight ahead and facebook fighting a war on several fronts, privacy and Data Security and antitrust concerns. Well talk to a former facebook chief privacy offer, chris kelly. As wehead to break, a look at the biggest premarket winners and losers in the dow. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. [what about him . Lets do it. [ sniffing ] come on. This summer, add a new member to the family. Hurry into the mercedesbenz summer event today for exceptional offers. Lease the glc 300 suv for just 419 a month at the mercedesbenz summer event. Going on now. 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. Welcome back intel shares are sharply higher after the Company Posted a beat on the top and the bottom lines. Intel announcing also that apple will be acquiring the majority of its smartphone modem business for 1 billion joining us is chris casso, analyst from Raymond James lets talk about this. The stock last time i looked at it was up about 7 how much of this caught you of guard . I think general expectations were for slight lower in the nearterm. A lot of that is because of china and trade issues not knowing how it would impact things that did not really impact them at all. For most of the semis, huawei in particular, they found ways that they have been able to ship to huawei i thought that was a surprise. You know, with respect to business conditions, you know, intel characterized some of the beat in q2 as demand pulled forward from the second half to the first half thats my question. Some of this, it looked like they were shipments were coming in being sent trying to get ahead of potential tariffs if its pulling forward what does that meeoan for the full year the net result was eps went up 5 cents for the full year not a heck of a lot. With that, they still expect that some of the Data Center Business gets better in the second half. Its off a low bar but i think the story here is back in may at the analyst day, intels management was candid about the challenges they were facing over the next three years. A lot of that is intel specific based on the challenges they had in manufacturing at the time the stock reacted to that sharply with all semis now, everything has come all the way back. You know, the afterhours trade, intel is a couple dollars off the alltime high, which is unusual for a company thats facing such structural challenges you think this up 5 today is warranted . Were still negative on intel. I think thats likely to pull back at the least, as i look into the next year, the next two years with the smukemiconductor marke being cyclically depressed, as you get numbers rising in other parts of the market, as you go into next year, intel will have those structural challenges. What about the deal to sell the 5g mobile phone modem business to apple . They said they looked at it and it doesnt make sense for profits where theyre looking at 5g they are keeping others, but this one did not make sense. Remember that apple and qualcomm also signed a deal in may. The reason for that is the intel product wasnt working the performance wasnt there thats was something they were spending money and time on at time we think apple had to make a decision. They need a 5g iphone in 2020, and thats important to them getting the intel business is strategically a good move for apple because it keeps qualcomm honest for the next couple of years as they get that to work and 5g is thats the question i had do you believe that the problem was with intel or with apple and did apple think we actually need to control this whole process because these people dont know what theyre doing if we can get this inhouse we can fix this and if they can fix this, given the length of the qualcomm contract, can they actually replace them in the midst of the contract is that possible are we really talking about a 6g product . My guess on that, go two years from now, for example, you go back a couple years ago, intel and qualcomm shared the 4g socket starting with iphone 7. But the intel modem was never as good as the qualcomm modem they brought intel in basically to keep qualcomm honest and then you know what happened with the legal issues i think once they get that working one day they will get it working it will be used to keep qualcomm honest the question is in the hands of apple, will they be able to catch up to qualcomm maybe its a good deal on both fronts. Maybe a good deal for intel and also apple yes once youre starting behind in tech, that business is already in the hole, will they ever completely catch up to qualcomm . Can you speak to this, not related to intel, but on 5g there was an article last week talking about how these phones you think will be out in 2020. The reporter doing this article about 5g saying they had to ice the phones to make them work they were Walking Around with literally like big jugs of ace to put them in because theyre too hot. Do you think this is happening in 2020 . I do. You know, thats its actually a good example of why apple needed to do what they did. Thats based on first generation 5g modems, they werent ready. If apple had stayed with this intel modem next year, its very possible that might have been the issue with iphone. And the Second Generation qualcomm modem will be much better youre positive i wont have to walk around with a cooler if you have to walk around with a cooler, apple wont release the phone. Apple is keeping the same engineers, the same intel people who are there. What is different about how they manage the project i would say perhaps an area of focus i would say two things priority on it, maybe putting more money into investing in it . The other thing is that apple manufacturers tmsc tmsc now this is an issue that intel faces, they are having manufacturing issues now. So bringing that product out of intel into tshmsc where they ha their act together on leading manufacturing will be a benefit. That will take some time, but thats a benefit chris, thanks for coming in thank you intels ceo will be appear on squawk alley at 11 00 a. M. Eastern time more to come this morning on squawk box. More stock movers to tell you about including a major bank and a well known toymaker. If youre a kid you will care about this one squawk returns after this. Oh, wow. You two are going to have such a great trip. Thanks to you, we will. This is why voya helps reach todays goals. All while helping you to and through retirement. Can you help with these . Were more of the plan, invest and protect kind of help. Voya. Helping you to and through retirement. 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. You need decision tech. Were changing whats possible every single day. , but what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our financial and Tech Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Time for the executive edge. We have some stock movers to tell you about the top one, if you care about toys, we all do. Mattel reporting a smaller than expected loss. The toymaker saw strong growth in barbie and hot wheel brands American Girl not doing as well in that business and we have that movie coming. What movie . The barbie movie. This is a big deal in mattel land they will do an adult an adult movie . Thats creepy. Okay. Not an adult movie like that. I think 2that may have done already. Just suggesting like in a toy story kind of 4 not a cartoon all right live action live action barbie. A live action barbie. Thats coming up so you told us what are you doing . This guy is making crazy signals. Hi. I dont know what hes doing. He may have seen the show me . Me i see you. I see you. Hes saying you babble. He wants to take a picture. Hi. Who is cast as ken, do you know i heard you were possibly going to be ken. Kens dad maybe you dont know . I do not. Chris pratt im making that up im trying to think who would be good. Chris pratt you know who would be good . The guy who played the winklevi. Yes from the movie, the social network. Yeah. He was in that other movie, the one in italy, the beautiful yeah. Good looking guy. Another legal victory for bayer. The company succeeded in getting a third large trial verdict reduced. The California Court ruled the companys weed killer was responsible for a couples cancer and awarded them 2 billion. A judge yesterday reduced that award to 86 86. 7 million. Bayer faces lawsuits from 13,000 mrv plaintiffs from across the u. S. And a new regulatory filing we reveals that Berkshire Hathaway increased shares in bank of america. They have a stake of 10. 4 that caught me off guard i didnt know they could go over 10 in Bank Holdings according to this filing, the nun of shares outstanding they did hold was 10. 4 do you think thats between stock splits and thats what i was trying to think. With bank holding companies, they try to keep the shares below 10 . I dont know what happened here. Caught me off guard. It has not been berkshires policy in the past lets dig into this, i think they would also have to file with other people. I dont know what happened. Filing caught me off guard well check in. When we come back, an update on the debt ceiling bill in congress your top stories at the intersection of business and politics straight ahead. And later a star on the rise actress awkwafina will talk to us about her rise in celebrity as we head to break a look at yesterdays s p 500 winners and losers that was wonderful. Brave vo. That was good could have been better. I didnt like it. Was terrible. It was bad. It was awful. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. Frto collaborating remotely with beyour teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Welcome back youre watching squawk box live from the N