It is still unclear if the person who died as a strafford is a staffer or contractor. Global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. Im a, and this is bloomberg alisa parenti, and this is bloomberg. Emily coming up, tesla posts smaller than expected losses for the second quarter, but investors are looking ahead of the curve. The big focus on model 3 production, and whether the car of the masses cuts into teslas luxury car. And unleashes its potential after completing its fastest test yet. I spoke to the companys cofounders about what they learned and when passengers will be able to take a ride. And square continues its banner year with a better than expected secondquarter. We will break down the Earnings Report with ceo jack dorsey. First, to our lead. Tesla shares swinging and lay training after reporting secondquarter earnings. Last thaner lost analysts expected. Revenue is also better than expected, at 2. 8 billion. The question now is how much cash elon musks company burned through after unveiling its most affordable car yet. Must spoke heavily of the model ata sedan that starts 37,000. Us in the studio, dana. Ashares now up more than 4. 5 . What are the highlights . Were going tohey spend a lot, but they spent less than investors have feared. Model 3 reservations are through the roof. It sounds like these fears of cannibalization are not as severe as some were concerned about. They have seen an increase in and xations in the s since the 3 was revealed. Emily i am looking on the bloomberg, tesla spending 1. 16 billion in the second quarter. They had signaled heavily that they would bring the model 3 to market. They still have cash on hand that will bring them through the end of the year. Emily lets talk about production. He did say over the weekend when they unveiled the model 3 that he would be going into production hell, that they all would be going into production hell. Take a listen. Frankly, we are all going to be in production hell. Welcome. [laughter] for at least six months, maybe longer. But you guys know that. You have been through this. I look forward to working along side view in the journey through hell. If you are going through hell, keep going. [laughter] emily most of the people in that crowd were employees. But what does a trip through hell mean for investors . A trip through hell is on everyones mind, a production snafu . But there was nothing about that today. I think we will hear questions about that on the call. He is willing to get through model ss through the week. Is that possible . They are going to begin the true beginning of mass production. 500 a week from 30 or 50 is steep. People are wondering if there are any roadblocks, when he says hell, what does that mean . But they are sticking to this aggressive headline of one million cars i 2020. Emily are we seeing any signs of demand for the model ask for model model x or model s softening . Was a quarter to quarter drop, and you see a rise in inventory on the balance sheet. What they said is they want to get more model s and model xs to their stores. They need to have extra cars around to test ride. That is another interesting question for the call, is the rise in inventory something to be worried about . Emily ambitious as ever, what about the model y . Any new details . There is the semi truck and then there is the model y, a crossover. They said they look forward to adding a semitruck to the fleet in late september. Emily what about solar panels, solar roofs, as well as they dig a factory . The giga factory . They have started installing solar roofs for employees to test them out. What is solarcity at this point . Is this brand going away, or are they shifting to roofs . And there was a mention of the project in australia, a Big Energy Storage project. Emily when it comes to the half a million deposits they have for people who want the model 3, what is the likelihood that all those orders are completed . I think it depends on how long you are willing to wait and whether you qualify for the tax credit. The tax credit begins to ratchet down once tesla hits a certain volume. The big question is, where are you in line, how important is the tax credit to your pocketbook as you make this purchasing decision . If you arent going to get the car for another year, can you wait that long . Emily i know you are about to jump on the Earnings Call. We will listen for your headlines. Now to others stocks we are watching, sun power had its worst day in almost a year, tumbling 20 . The supplier lowered its forecast for 2017. Suppliers and mexico are facing delays that may push the projects into next year. And, on another topic, wonder woman delivered big profits for time warner. Secondquarter earnings beat analyst estimates. The studio has seen Box Office Sales rise thanks to the superhero movie. Coming up, the dow hitting 22,000 points thanks to apple reaching a record high. We will examine techs affect on this historical run in stocks. Bloomberg. The dow surpassing 22,000 copy attention of President Trump. He discussed the fourth round number milestone achieved since he was president. Pres. Trump the stocks hit a record high today. We have picked up more than 4 trillion in net worth in terms of our country, our stocks, are companies. That has growth rate been much higher than, as you know, anybody anticipated except maybe us. But that is going to go higher, too. Emily this record close also grabbed the attention of abigail doolittle. He joins us from new york abigail, when you look at the nasdaq, there is actually a lot of volatility today. Did was pretty amazing, because the nasdaq opened up by about half a percent, pretty bullish, and by midday was down about 7 10 of 1 , a huge swing of more than 1 on the straight on the day. The reason this matters is because volatility breeds volatility. It typically moves toward closing volatility, and dont inget with the tech pullback june, this is an indicator that something similar could be ahead. The nasdaq finished flat, but not surprisingly fitting to that volatile action were some big movers on the day, including upside on that very strong june quarter report, lus the outlook much better than expected. Down after wells fargo warned around the generic space, and viacom also lower. Apparently time warner cautioned forecasts that wait on those shares. The nasdaq finishing flat, but a lot happening beneath the surface. Emily apple allowing with a high today. We spoke with tim cook yesterday. He was optimistic. What impact did this have . Much. Bably not so that apple quarter was tremendous, especially in terms of the outlook allaying fears the macbook. The revenue numbers suggested pretty much everything is going just fine. You would think that would maybe give a boost to facebook,. Mazon, alphabet, and netflix instead those stocks finished and some ofat, the money going into apple could have come from those tech names. Interestingly, apple is now better than amazon. If we hop into the bloomberg terminal and take a look, this is the year to date chart. Bottom of the s p 500 up 10 . Up top in yellow and white, facebook and netflix up 45 . In grain, apple overtaking amazon in blue. Apple is now trying to take out netflix and facebook. Time will tell. Emily abigail doolittle, thanks for that update. Whats in store for the Tech Industry as the quarter earnings season winds down . Joining us, an analyst with rbc capital markets. You dont cover apple, but you cover all the rest. What is the big highlight from earnings season . Obviously we saw a Strong Quarter from all these companies. Demand trends remain consistent. I think this was our 30th quarter in a row for yearoveryear Revenue Growth for google, our 17th for facebook, and about 20 yearoveryear growth for almost 10 years now for amazon. We have seen consistent demand trends. The investments were happy and they were heavy last year and a year before that, and probably next year too. These Companies Make they have a lot of new opportunities to go after, whether it is amazon talking about advertising revenue, or netflix sending money to build out its international library. These companies all remain in growth. There is no scenario under which these margins will materially expand. Will not materially expand. Emily is there room for other players at this point . Like snap or twitter . Its unknown. Whether they can get to a couple billion in revenue, probably. We call that the experimental budget zone. Advertisers want diversification from google and facebook, but to get much more than that, 5 billion, there is no one out there really getting that. You have to come up with innovative ad formats. We thanks cap has a better chance of getting we think snap has a better chance of being ther getting there. Emily are you worried about snap . Absolutely. At 24 bucks about two or three months ago, so we clearly do not know the stoxx yet. Emily can you are holding that . Sticking with it the Company Needs certainly agree accelerate the daily average user growth. It is same thing with twitter. Snap needs to get the growth rate. Seller rating. Celebratingte react reaccelerating. It is still growing triple digits. Revenue no triple digit provider out there, and it is snap. Emily do you think they can get it going . I think so, for two main reasons area that they need to fix the revenue problem. Like facebook was what that mobile thing. The android thing is what blindsided snap this time, and snap needs to make sure it is integrated well on android devices. The second thing they need to do growinghe daus again, to keep rolling out better features. I think snap maps is a cool feature that theyve got. If they dont innovate, the stock will flatline at best. Emily amazon forecasting a potential quarterly loss for the first time in a while. Are you concerned . Not really. 20 years of growth, investments, losses, gains, i think they have kind of proven emily and bets. Yes, and successful big bets. Cloud computing was amazons big bet. I think the kindle family has been pretty good. I think these echo devices, they have a home run on their hands. By the way, groceries is a logistics business. Amazon is logistics. A bit of concern, but over time they have built up trust. Seeing success with its own original content, netflix spending billions of dollars on original content. Now you have competitors like hulu, the handmaids tale. Do you think netflixs burn is sustainable . I am not going to size so much on netflix. We have done surveys for two years in a row. Of amazonat customers, 50 are netflix sub its netflix subscribers. I think what is really happening of the big death bundle, and consumers, especially more advanced internet users, are going to netflix. You have this huge tail wind to streaming, and i think netflix is the biggest beneficiary. Got great content, but they are going to add more sense this year than they did last year. In the u. S. , their most mature market, they are adding more subs this year than last year. We are not at the end for netflix. Emily i like the confidence. Thank you. Coming up, the wearables market is still weak, but fitbit shares are soaring. Symantec, to forecasting sales and profits that beat analyst estimates. Cybersecurity projected sales of 1. 29 billion for the current fiscal quarter. However, symantec is also paying the price for a rapid turnover in the sea suite, having gone through four ceos in the last five years. In return, they have spent 27 million on exit packages for the Party Managers and replacement awards for new ones. Fitbit shares surging in late trading after the Company Posted secondquarter results that beat analyst expectations. The company sold 3. 4 million devices in the quarter. Also out with earnings, square. It topped analyst estimates. Joining us from new york, selina wang. I want to start with fitbit. It all comes down to the smart watch market, doesnt it . Selina we saw shares soaring today, but thats not totally good news. Things werent quite as bad as we thought, but there were still losses. They just did not lose quite as much money as expected. Revenue still declined 40 from a year before. This quarter is really just a quarter as they are transitioning and getting ahead to what investors are really watching out for, which is the debut of its smart watch. So much is riding on this, and analysts will be watching it closely to see if it lives up to its competition. Emily a lot of questions in terms of how big the smart watch market is, and whether apple is simply going to run away with it . Choice. Fitbit as no the market has been shrinking and declining. Fitbit went from being first lace for many years in the wearables market took their place, being beat out by apple. Reported that they have been ramping up the technology for this smart watch, but they dont have a choice. Analysts say investors cant wait for the smart watch to get there soon enough. They need a new market. Emily what are the new products in the pipeline . Selina they are upgrades of the existing product. That theeiterated smart watch will be coming before the holiday season, and the timing is important. It was originally planned to roll out in the spring, and that has been pushed back to the fall. Analysts hope it will have all the full feature sets, including heart rates, gps, an app store, connection with music. The price point, we have heard, is under 300. Emily lets talk about square. Shares hit a record high last week. Selina these pairs slightly. They beat extremely high expectations. They beat on the top line, the bottom line. We saw gross payment volume increase as well. I think the story is that square is just not a niche payment processor for the food truck stand or the one person hairdresser. This is for mediumsized businesses as well. Larger sellers continue to contribute to their platform. They added more larger sellers as well, and the larger sellers also have more money to buy into the whole suite of software services, ranging from food delivery, instant deposits, and Employee Management services. Emily where does it look like most of the growth is coming from . Isina most of the growth still coming from new ancillary businesses as well as the core businesses. For n instant deposits and the food delivery are three areas where they saw greatest growth, and that is contributing most to the newer line, because larger businesses see value in having this end to end solution, and i dont have to shift together services from other providers. Emily selina wang, thanks so much for joining us. To join daybreak asia designed to watch my exclusive interview with jack dorsey. That will be running throughout the day. Hyperloop one gets closer to its futuristic transportation reality. We will talk to the cofounders about the historic test. We check our phones 85 times a day. So it only made sense to create a network that keeps up. Introducing Xfinity Mobile. It combines americas largest, most reliable 4g lte with the most wifi hotspots nationwide. Saving you money wherever you check your phone. Yeah, even there. See how much you can save when you choose by the gig or unlimited. Call, or go to xfinitymobile. Com. Xfinity mobile. Its a new kind of network designed to save you money. Mark President Trump today publicly endorsed legislation sponsored by senators tom cotton and david perdue that would reduce illegal immigration to the u. S. Legal immigration to the u. S. Pres. Trump the green card reforms would give American Workers a pay raise by reducing unskilled immigration. This legislation would not only restore our Competitive Edge in the 21st century, but it would resource reduce the sacred bonds restore the sacred bonds between american citizens. The think its bill signed by President Trump is a declaration of an allout trade war against russia. Impotence byal surrendering executive authority to congress. Fighting broke out on the floor of Brazils Congress today during a debate to decide whether to suspend the president on charges of bribery. The president would be suspended 3 of the 5132 members vote against him. More than 7000 Syrian Refugees were driven from lebanon through syria today, part of an agreement through Syrias Al Qaeda branch and lebanons hezbollah group. Has the lockout battens have been fighting alongside syrian president hezbollah combatants have been fighting alongside syrian president Bashar Alassad since 2013. Im mark crumpton, this is bloomberg. It is just after 5 30 p. M. Wednesday in new york, 7 30 a. M. Wednesday morning in sydney. Paul has a look at the markets. Paul the positive lead from the u. S. Is expected to translate to gains in the asiapacific. We are seeing strength on nikkei futures. On the asx, we are seeing futures up by 2 10 of 1 . We will be watching rio tinto shares. They are slumping in london despite profits surging. It was, however, a miss. The market was expecting better. Rio tinto also announcing a 1 billion Share Buyback and 2 billion dividends. We will also watch the Australian Dollar today with trade data from june due out. That is expected to shrink a little to a 1. 8 billion surplus. Sydney. Allen in more from Bloomberg Technology next. Emily this is Bloomberg Technology. Tesla shares gaining in late u. S. Trading. The company burning through cash less than analysts expected. The burn rate was still a quarterly record, and almost double what tesla went through in the first three months of the year. We will bring you all the latest headlines from the conference call. Joining us to break down the results, kevin, who covers tesla for us. All eyes on model 3 and how production difficulty will impact the results. What do you think the highlights are . Kevin i think the cash burn is probably at the top of the list. I am not sure there are a lot of numbers in their. Just from the perspective of being second quarter, havent really gotten to model 3 production ramp. Solar roof contributing revenue just yet. This is a quarter that the smaller than expected loss is a good thing, smaller than expected cash burn is a good thing, but there is a lot of heavy lifting to do until model 3 generates cash flow for the company. Emily talk about the heavy lifting, elon has talked about going through production hell in order to make this happen. What do you think that means for investors . If you think about