The tech rally still has room to run. Thank you. See how that works. Intels chief Financial Officer bob wan is back with us, talk about the chip anchors better than the expected earnings and concerns at rival amd could be taking a bite out of its business. They had to defend themselves on the intel Conference Call. Some of the analysts asking about that tremendous competition from amd these days. Yeah. Well ask him about that so lets begin with amazon still weighing on the tech sector. Bertha coombs has more. Reporter following that earnings misamazon seeing its worst day since early june selling off on pretty strong volume and thats providing the biggest point drag on the nasdaq 100 but amazon is coming off an alltime high just yesterday and shares are still up fractionally for the week and in fact up 6 with one more trading day left here in the month of july. The impact on bigcap tech is somewhat muted the major tech indices are down fractionally and treating volume actually isnt reflecting any real selling concern today for the month, the nasdaq 100 is actually up. Its providing nearly a quarter of nasdaq 100 gains for july also, bucking the trend today, weve got baidu up on an upgrade. All right thank you. Its the time to get in or out of the tech sector let bring in tom forte who still likes it and ruin who is a little more bearish. Tom, make the case here for the incredible run in tech for the last couple of days aside, continuing in the back half of the year and beyond. Sure. Theres a lot of reasons to still be bullish in the technology sector. The primary one is disruption, so if you look at the legacy retail space, amazon is letting disruption there and with advancements in Machine Learning and Artificial Intelligence the gap between legacy retailers and technologyenabled ones will broaden. Look what they are doing with alexa which is driving adoption for the Consumer Internet of things today its the connected home, and in the future it will be connected cars, a lot more, and then lastly if you look at apple and the possibility for greater augmented reality in the iphone 8, that could change how consumers shop for example, could you go to a physical Furniture Store and see a wide spectrum of inventory leveraging, augmented reality, so i think disruption is the primary reason to remain bullish on tech stocks right now. Ryan, youre our bear, and im going to guess it has something to do with valuations, yes . Valuations are definitely part of it the nasdaq is hundred trades at 24 times future earnings versus foreign stocks, emerging markets 12 times future earnings which i think is a better deal in general, but they get more of a bubble being formed because now you have billions of dollars going into etfs which are capitalization weighted and a lot of them going to growth etfs, amazons, microsoft, alphabets, all getting more overweighted and the Money Managers who underperform rather are being forced to buy those stocks as well you know, further pushing those stocks up and concentrating portfolios and only a couple. Okay. So what kind of damage could that do . What do you expect to happen when this bubble that you see building bursts . Well, like anything else. Too many eggs in one basket and thats the riff here when that goes out of favor, you know, when, not if, youre going to be left holding had the bag because you dont have enough diversification in your portfolio, so thats my biggest concern owning growth bigtech stocks right now. Tom, whats your response to that my response is theres a reason why valuation is the way it is. You have a lot of openended growth stories, amazon, facebook and even netflix recently, and to the extent that they are showing multiple legs to pull future growth. If you look at amazon, its increasing their Grocery Sales with the addition of whole foods, and then increasing their sales in the apparel sector and then for facebook they are doing a tremendous job leveraging and driving further revenue in mobile advertising across multiple platt formz so its an openended growth story with multiple Technology Companies that are showcasing that which means strong valuations and more future upside for a lot of these stocks. You dont hear a little voice at some point whispering to you the case brian is making about valuations here. I mean, you cant go up forever. If you want to play devils advocate on valuation i covered the internet space in the late 90s and 2,000s and a number of stocks get well ahead of themselves, but if you look at the case of amazon per se, you can see how they would get to, you know, perceived future growth and ultimate margin expansion. The largest growth vehicle right now is the Cloud Computing efforts, and thats also the highest margin unit, so i think, yes, can you point to valuation, but an argument could be made that in case of amazon they could be having continued Strong Revenue growth and potential margin expansion, especially from the Cloud Computing effort. Brian, by the way, its not as if technology is doing all that poorly today. I mean, the nasdaq is fractionally lower, a lot of these are holding their strides so it doesnt look like the momentum there is really turning yet, does it yeah, and i dont think it is, but if im an investor, the last five years were so hot in tech, will they repeat that the next five years . Odds are probably not. Theres just so much other great value in the market right now, that you know, i just think that tech is not going to be the best place to be when youre looking back retrospectively five years from now. Do you like anything in technology i mean, youre throwing the whole thing how the . You know, i think can you have a component of that have in your portfolio, but, again, if im a betting man and im looking back, you know, at my portfolio a couple years from now, thats just not where the value, is and youre further along in innings in technology versus, again, Global Markets and other sectors that have a lot more value here and are just starting to move thats where i would want to be putting my money for the longerterm growth. All right guys, thank you very much. To close out the week tom forte and ryan payne. With the dow up 20 point, oil has been strong today, the dollar lower, technology lower, lets get and the transports have come back a little bit today. In our Closing Bell Exchange jeremy hill from old black heath companies is at post nine and so is steve grasso and Rick Santelli checks in from the cme, and, steve, i mean, oil has has one of its i think its its best week of the year with the gains here and were just that close to 50 a barrel for wti. And its not kraumping the style of the stock market overall. True, and the only problem with 50 a barrel oil is so much production comes online at 50, bill thats what usually stops oil from moving higher is that 50 mark, but i think that conversation you had prior to us cramping on really dovetails nicely with the overall market you need to see money coming out of tech and into energy in order to see the rotation the back half of the year the market can stay right here or the market can bust through old highs, but you sort of need energy to start lifting a little bit of the weight that the market has been carrying all with those, you know, four or five names in tech you need to see other leadership weve had health care and also the financials if energy kicks in and starts doing some lifting, you can see above 2,500 easily in the s p. Jeremy, where do you guys think that theres the most opportunity right now . Well, actually we very much like Investment Grade bonds and, you know, high quality credit assets in this environment i think are going to perform quite well, but if youre just a stock investor, i mean, its hard not to chase Growth Opportunities right now. Especially, jeremy, when your favorite opportunity seems to be yielding not very much, you know the yields have fallen so low, whats the attraction for Investment GradeCorporate Bonds . Well, Investment GradeCorporate Bonds, remember, dont have the same type of correlation and spread compression and this type of an environment, and and i would i would characterize where we are in economics as being weird. I mean, the tailor rule doesnt apply, nehru is out there hand what are we doing in productivity and when were looking at assets that promise a steady return, Something Like a high quality Investment Grade bond, its something, you know, that we think you have to consider, but thats that has to be only part of your portfolio, and, again, to chase assets that are growthy, thats not, you know, in our opinion something that you shouldnt also do. That should definitely be part of your portfolio, but i think you have to want to pear that down right now. I wonder what they teach in b school with all the acronyms going out the window. High yield. Rick, the dollar continues lower. Were at year low for the dy and setting lows for the yen and euro as you well know. Looking ahead, do you see that continuing, or are we searching for a bottom yet you know, i think its going to continue it, and i still like to frame it looking at the euro as the main character in this play, and the euro, of course, 117 handle getting close to 118 handle, trading at levels we havent really closed at since early 2015 it really looks to me, bill, you know, if you take a macro view of the fx market and how all the crosstrades are euro friendly, certainly a 120 euro versus dollar is highly possible which means theres probably a bit more pain in the dollar index, and over the next several weeks its going to be very interesting to see how jobs reports numbers, wednesday adp, of course, private sector hiring friday well get the big july report from uncle sam im sure that those will play into this conversation, and as far as jeremy, you know, jeremy is a smart guy listen, corporate securities, especially the Investment Grade. If things get dicy, the other spectrum is going to go with the dicy stock market. Youll see the high yield and junk spreads widen, by i always say corporate Investment Grade, you have to be happy with the yield because if things turn and spreads widen, you always want to make sure that you can live with the cash flow if you dont care to liquidate based on Price Fluctuations and, steve, what would you add to that, especially, you know, weve had a lot happening with the Health Care Bill not coming together. Were starting to think about what is may look for and do for the u. S. Economy and the gdp number this morning was okay but still not great. Right. So how are you looking at landscape . Everything you just said and the market is down four handles in the s p so the bears have gotten tremendously frustrated you cant knock this market off around alltime highs. That passive investing that we always talk about, it goes into those top names, and it just keeps feeding in, and thats a big reason why the market continues to make new highs so dont discount that. I think the market is still sideways to higher. Jeremy, you going to look for any yield in the stock market . I think thats a little bit harder actually i certainly think theres some of biotech names that have pretty good yields you know, some of the Larger Companies definitely have some that well lock at as well, some of the industrials, but, i mean, if youre going to allocate new money to the u. S. Stock market, its hard not to make a case for chasing growth in this environment, even though that is by far the riskiest proposition. All right thanks, everybody. Have a great weekend, too. Jeremy hill, steve grasso and Rick Santelli. We have about 45 minutes to go with this dow hanging on to a 22point gain today, and the dow has been outperforming of late the nasdaq coming off some weakness, still lower by a. 21 . The russell the weakest again with a fivepoint decline. Up next intel cfo bob swan is going to break down the chipmakers latest earnings on a first on cnbc interview and tell us how his company is trying to fight back against amd. President trumps chief strategist steve bannon reportedly wants to regulate google and facebook as utilities. Coming up, well talk to the journalist who broke that story and find out whether theres a chance that mr. Ban nons vision could become reality. We want to hear from you. Reach out to the show and share your thoughts with us via twitter, facebook or email. Youre watching cnbc, first in business worldwide these days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Mixed day on wall street with the dow up 21 points in record territories, but the s p, the nasdaq and the russell in the negative as we head to the close for the end of this week meanwhile, aircraft partsmaker Rockwell Collins is one. Best performers in the s p 500 today after the company beat wall streets earnings and revenue estimates for the Third Quarter thanks to higher Profit Margins and its acquisition of be aerospace up almost 4 in todays trade. Shares of intel reporting better than expected revenue yesterday and despite having a huge market cap the ceo found himself defending the company against a much smaller rival during the Conference Call with analysts josh lipton has the details. Josh thats right. He was asked about an old foe, amd, company on the move introducing products that take direct shots at intels business its a fight we know thats began on for a very long time. In this corner intel with a market cap of 1666 billion amd 13 billion in the last fiscal year intel did 59 billion in sales and amd 4 billion and intel dominates the market that its in. For the market for pc prosors, 91 share according to idc and amd 9 but amd is getting a lot of attention recently introducing new chips for pcs and servers on the call, he didnt seem too worried. Amd has raised up a bit with more recent products and you can see us responding. This is a traditional performance battle were very accustomed to it, and youre comfortable in reacting and competing very aggressively. But maybe he should be a bit more concerned Patrick Morehead is former vp at amd. He says for certain workloads that use a lot of processors simultaneously, for example, if the company were to run Something Like a complex drug simulation, its amd that has Price Performance advantages with its new chip meaning the corporate customers will get more bang for the processing buck intel disputes that saying it has the advantage with chips that are faster and more powerful, but investors clearly taking notice. Intel basically flat and amd has surged more than 100 . Guys, back to you. Thank you, joshua moving higher after that beat. Joining us to talk more about this, you know, first on cnbc interview as we mentioned, were joined by intels chief executive officer bob swan good to see you again. Welcome back. Wonderful to see you. Great to be here. Lets start with this amd rivalry. What do you guys say and especially when you consider the Stock Performance the last year between the two companies. First, i would just start with the opportunity that we see and what youve charactered as one of the most exciting corporate transformations in history here at intel. As you know, historically weve been a Pc Centric Company and over the last several years weve been migrating to what we call a data Centric Company at a time when the demand for High Performance compute is as high as its ever been, and thats what were focused on. Thats what weve been executing against and after a record 2016 we delivered a dynamic Second Quarter and launched the products going into the second half of the year so were really excited about the outlook and really excited about our performance and we welcome competition. It makes us stronger bok you guys have reinvented yourselves and if its the case that amd and nvidia have advantage in Processing Power for some of the new applications, couldnt you throw money at it and catch up and would investors rather hear that than hear you say were not worried . Well, i would look about it this way we look at it as being a 200 billion market, and within that market, we have roughly had a 40 share and we see all sorts of opportunities to invest and grow and do it in a very disciplined manner, so we are investing across multiple dimensions of the business, and were very excited about our execution against a Competitive Dynamics that were that were operating against. I hate to keep harping on the stock price, but lets face it thats the report card, and i know know ceo or cfo is going to come on here and wring your hands publicly about the price we mentioned how flat the stock has been your stock has been flat for the last three years youre essentially right where you were back in july of 2014. What is wall street missing . I mean, you have to be frustrated youre obviously excited about the new initiatives of the company. What is wall street missing about that, bob . Again, we have very exciting strategies and a straig