Getting reports on home sales. Andrew, good morning. All the way down at the stock exchange. Facebook shares getting a boost hitting record highs. The social times beating the street. The company says it saw an increase for both advertiseres and users during the Second Quarter. Well have more from analyst dean munser. Second Quarter Results fell a bit short. Cheaper Service Plans offered to customers without subsidized cell phone cut into margins. Were going to talk to an at t analyst in the next half an hour about that. There could be a bit of good news in there, too. Qualcomm Beat Estimates on the top and bottom line. The Current Quarter profit forecast came in below estimates. In unrelated news on the company, a Chinese State run newspaper reports china appss antitrust regulators report qualcomm has a monopoly. Also, gilliad, take a look at this, posting betterthanexpected earnings in revenue after the close. The company says its new hepatitis c drug has sales of 3. 5 billion in the quarter. That Beat Estimates. The 1,000 treatment has caused controversy with some questioning whether the high cost will place a huge burden on governmentrun health plans and private insurers. Two more stocks to go through here. Shares the customer reviews websites achys list hit hard in extended hours trading. Earnings missed the mark. The company spent more a sign of customers and its revenue forecast fell below estimates. And the final stock to watch this morning, trip adviser, its a company i use all the time, the Online TravelResearch Company reported a lower than expected quarterly profit as selling and marketing costs rose. Those shares as youre seeing right there up following on that news. Joe. I just dont know. China, if they accused me or a company wouldnt you immediately take that as sort of a grain of salt . Youd say that proudly. Thats a term you might not want to use today as much but with a big salt lick. And then gene munster was one of those top guys when we had spitzer on and he was talking about the ranking of analysts, not based on ii, but hes i think on the board and they look at whether these guys can pick stocks or not and how they do medium to longterm. That might be a better thing. Yeah, yeah. So we were able to get him. Yep. You are down there. I am. We were not really saying why, but youve got ive decided if im ever youre going to be on jury duty. Jury duty later today at 9 00 a. M. So you get to be here. And the courthouse is just a tenminute walk. But i was driving in thinking about it. No rest for the weary, by the way. I was just thinking theres no way theyre going to excuse you. Because if the defense attorney starts talking to you, hes going to see you couldnt convince anyone of nil anything unless it was a lawsuit against a corporate ceo or a corporation. Then the prosecutors are going to want you on the jury. So either way, tier going to want you pup wouldnt convince any of the bad guys, but you will definitely go after can you come down to the courthouse this afternoon and just tell the judge about all my various issues because i feel like that might help me get out of this. A character witness. It depends on the case, on whos picking and which way it goes. Andrew, are you going to criminal court or a grand jury potentially . First of all, if its a grand jury, i dont think im allowed to tell you if it was a grand jury. Am i . I dont know. I dont think its a grand jury. I think you are. You cant tell me if youre on one. Yop. If its a criminal case, i know youre going to go back to the Early Childhood and see if theres anything that would excuse the person for whatever theyre doing now. But then again, if its a whistleblower against a corporation, i feel bad for you know what i mean . In washington news, senior white house Officials Say president obama is going to support antiinversion legislation proposed separately by congressman sandy levin in the house and senator carl levin in the senate. The legislation would mandate the Companies Must be more than 50 owned by a foreign entity. The president supports making this retroactive in may. The topic of tax inversions could be a major part of Steve Liesmans exclusive conversation with president obama today and the two will sit down for a conversation. You can see that exclusively at 5 00 p. M. On cnbc eastern. I saw long strings of this last night. But the best that this will do the best it can do is maintain the status quo because no one else can leave. But all the corporations that are doing business over there with their facilities and all the loopholes that are already in effect, it doesnt solve any of those things. So its not like actual reform. It will keep anyone else from doing it and people will say, well, thats the best we can hope for now. Well, youre not going to get this. They say we cant do big reform because we cant do that. Your point is you might as well go for the big reform. But in this cynical age that were in right now, i can just tell you with an election coming up in november, if you are the party on the side of raising the minimum wage and on Holding Corporations to paying taxes, someone in the white house could definitely say this is an issue. Well come down on this side. And its cynical. It might help in the election, but it doesnt help us. It doesnt help the country and it doesnt help us get beyond this 2 growth that were stuck in. And no one wants to cry for corporations right now. All youre doing here, andrew, its almost like someone who commits a crime, youre going to say im going to put them in jail so they dont commit the crime any more. But you cant educate them and but someone who cries out for help and tries to commit suicide, you can go and make sure you take away all the sharp objects and take away all the drugs, dont let them on the third floor of any buildings. But if you went in and your point is its not dealing with the problem. But youre going to see it and they know exactly what youre doing because its another way to try and id like to point out if you cant get it done and youre acknowledging that, you might as well go fosht overall tax form. I think it would be a positive thing where capital wants to come here. Joe, theres one sense of cynicism, and maybe im misreading it here, i dont think the president or anybody i know doesnt want some form of wholesale reform, broadly. The question is, you have the basht and you can put on a bandaid or let the patient die. Youre thinking youre going to get the house to go along with the bandaid. Youre not. Its not going to pass. Andrew, its just another how many of the this is not new. Ive seen six years of this where you know its not going to happen, but it allows you to talk in this grandios way that you would like to do if those other people werent stopping you. The first thing i said last night is fine, lets attach this bill to the next Obamacare Repeal bill. Theyve done that 50 times, knows it wouldnt pass, put these two together. And maybe that will you know its not going to pass. You know its not. Maybe it wont pass. Not maybe. Its dead on arrival. Well, then weve decided that everything in washington is and basically nothing can get done. Basically, that is true. If thats the case, maybe we are in trouble. You know what . Were arguing and were just talking at each other again. Its going going to be decided with an election. One side or the other, the leadership is going to have to change. The people are the only people that can do it. We had that conversation two or three years ago and the last election we said well have an election and then therefore the next four years nothing changed. Nothing change. Nothing changed. Nothing changed. It got more republican in the house and this time around it may even get remember in the senate. Well see. Is and once that happens, you may need another two years. But at this point, the two sides are not going to come together on anything, on any of these issues, anyway. I dont disagree with you. So what i would do is hope for leadership on both sides so you could say, ive suggested 25 28. Lets do this quickly. If were going to stop them, lets tie it to something that makes us within three months youve got to come up with something that addresses the you know, that were not territorial, that this global think of the money that could come back in. If youre happy with 2 growth, thats one thing. But like a lot of thats the other thing. People dont tie the slow growth to corporations not doing well. They say corporations are flush, look at the stock market, but then the job market should be better. We should expect more than twothirds of new jobs being parttime. Its not a plush market. But it wont create jobs. The last time they allowed a temporary corporation holiday for these things, it was called the jobs act and their point was it actually ended up going we didnt lower Corporate Taxes, though. It was ta temporary holiday. Were way above everybody else and thats youve got to theres no time like the present. I can only hope the leadership we will see what the president has to say later today. Unfortunately, he doesnt after all this, me and you and we have no influence on any of these things. Liesman, either. Hes on his own. I think we have a little more influence than you think. The president is coming on our network hopefully for a reason. Lets tell but other news now, joe. The faa has listed its ban on u. S. Flights to israel. The faa made that decision yesterday. The faa ban was criticized by the israeli government. Martin fletcher joins us now from tel aviv. Martin. Hi, andrew. Yeah, so the faa overthrew the ban. Not all the airlines have resumed their flights yet. Of course, the europeans who follow the faa in banning the flights, about 30 airlines altogether, International Airlines stopped flying into and out of fell avetel aviv. Now theyre waiting to see what the european advisers instruct them to do. There were more rockets fired from gaza which came towards tel aviv. Again, they fell harmlessly into the ground. Some were interrupted, intercepted by the iron dome. But it does pose a continuing slight threat to the airport. Now, the former mayor of new york, michael bloomberg, is here. And hes taking some of the credit and, actually, some of the israeli analysts are giving him some of the credit saying that he was a very loud voice in israels favor, telling the faa to overthrow the ban, toying on the American Government saying its unfair and unnecessary. Hes saying if there was a threats to nfj mroom bloomberg is get can credit for focusing the attention on that issue. All of this is taking place in the back drop of focus on the talks of john kerry. Hes a very important part of aimed at reaching some kind of ceasefire agreement. As we were reporting yesterday, it does seem to be firming up the idea of a fiveday humanitarian ceasefire, during which a longer ceasefire would be worked on. But the two sides, hamas and israel, are still far, far apart, the fighting is intensifying. 30 more palestinians killed overnight and israel saying it needs time to take out that rocket the panel infrastructure which is so threatening to israel. So pressure put towards a ceasefire, but intensified in fighting, andrew. Martin fletcher. Becky. Andrew, lets focus on the markets though morning. We did see a mixed session. S p futures are up after 2 and a half. Dow transports were at a record high. You did see a drop for the dow yesterday mostly because of boeing. In the oil markets, its down by about 42 cents. 102. 70 is where wti stands. And the tenyear note, yesterday the yield was down to the third day in a row to 2. 46 . This morning, a little higher, 2. 482 . Yesterday the euro was down for the fourth straight session to below 1. 35. Continues there today. The euro is trading at 1. 3475. The dollar is up against the pound, too. Finally, take a look at whats happening with gold prices. 1,390 an ounce. Back to the big tech story of the morning, facebooks shares hitting record highs. Joining us now is gene munster. And i wasnt here yesterday, gene, but joe was just talking about one of the best records weve seen out there. I appreciate it very much. What was happening, where you call the stock. Kind of a low barging, but congratulations. Thank you. Ill take it. Gene, you looked at facebook. These were monster earnings. You had to be impressed by what you saw, too. Absolutely. Theres two things going on and working for facebook. Their core business is phenomenal. Pricing is up over 50 user on year. And the second piece thats going to drive this stock in the future is they have a number of shots on goal of products theyre not monetizing today. So you have a good, strong core business and you have opportunities in the future. And i counted seven Different Things that they have that arent baked into the street number thats theyre going to get into in the next few years. So investors are always about the future and thats the unique set up about owning facebook, even up 6 this morning. Yeah. In fact, right now, its up 7 . It keeps pushing higher. I know that you have an overweight rating on this, but as a result youre raising your price target . Thats right. And right now, we assume a 27 multiple on next years earnings. I think that that multiple, the longterm earning eggs growth rate is probably going to be 20 or 30 . So i could see that multiple increasing. I think given the number of things that they have in the hopper, you know, whether its video or instagram, theyre getting into commerce with a buy button. They have whatsapp, i think thats going to continue to power that Earnings Growth rate which will keep that for the foreseeable future. What is your growth rate . Were at 90. What was is before . 77. So its already sitting at the price target. Thats why youre decreeing numbers. Was there anything in the report that concerns you or does this look like its firing on all cylinders at this point . Theres nothing thats concerning. We surveyed 12,000 teams twice a year and their engagement has been fading with facebook, increasing with instagram, increasing with whatsapp. So thats still kind of this was going on in the younger demographic. I think the reality is they grew users 14 year over year and they have a lot of room to increase, engagement and monetization with those users. I saw yesterday, it was a comment that zuckerberg made in the Conference Call where he said there are over a trillion posts now to try and get your head around how many that is. I was trying to figure people in a stadium, how big that stadium would have to be. Does that matter or is that not even a metric that you look at . No, that matters. I dont have anything to put it into context but it does matter and that plays to engagement which all gets back to with that big engagement, they can find different way toes make mopney. They have strong leverage pricing which gives them room to slowly move into these other products. When you say slowly, theyre not going to corrupt the experience. So i think theyre in a unique place to continue to grow the business based on that. Gene, last week we heard from janet yellen who made comments about some of the areas in the stock market that could be overpriced. One of the ones she mentioned were some of the technology areas. Of course, people start thinking of social media. Other stocks in this arena. Did any of that resinate with you . Do you agree with any of the sentiment . I think just some of the vertical moves in some of these tech names is always concerning. I think at the end of the day, as we look back at the ones that have had big moves, the real core businesses, the ones that will be around for a long time like google and apple and facebook and amazon, those moves higher dont concern us. Its some of the Smaller Companies that dont have the Management Team and the moves that are more concerning. You mean some of the ipos that have recently come out . It could be some of the ipos and some of the ones that havent done so well. I think i would just say this, stick to the core strength names and i think you cant go wrong, even if theyre up at alltime highs. So all four of the ones that you just mentioned, you like amazon, apple, google . Yes. We like them all. Gene, i want to thank you very much for talking to us today. Great talking to you. Thank you. Coming up, were going to till what twitter is doing. Theyre releasing their diversity figures. A new study ranking the happiest and unhappiest cities in the nation. New york where em right now, taking one of those titles. Well tell you which one when squawk box returns. Es, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Breaking news, we are getting reports of a missing plane that was flying from a west african country to algerie. Contact has been lost with the flight. It has 110 passengers and six crew members aboard. Company officials are trying to find out what happened to that flight. We will have more details as soon as theyre available. Right now, its time for the executive edge. Twitter releasing its diversity figures. Nearly 90 of twitters workers in the u. S. Are white or asian. Men make up 70 of all the staff and 90 of technology staff. Twitter is taking steps to diversify its staff. This follows what weve heard from yahoo and google who first came out with some of these numbers. Yeah. I dont how does a does it surprise you that an Engineering Company and a Technology Company i guess theyre saying you have to be proactive. Because the company organically grew into what it is for whatever reason. Now its in a position where it needs probably to foster diversity and actually take proactive steps. You dont just end up with the perfect diverse workf