Bonds as we get q2 gdp this time tomorrow. Earnings, the busiest day of the season. Majors like facebook and ford on the move, dow chemical, inside look of the quarter from andrew. Hey, you get on to my cloud. Oracle buying netsuite for 9. 3 billion citing strats youlike synergies. The final day of the Democratic National convention ringing endorsements for Hillary Clinton from the president and Mike Bloomberg last night. The candidate takes the stage tonight and we will go live to philadelphia. First up, facebook with a massive earnings beat that has the stock set to hit alltime highs this morning. Eps 97 cents, beats by 15 cents, 6. 4 billion in revenue, monthly active users 1. 71 billion an mobile continues to grow, mobile ads 84 of the ads that facebook shows. Mark zuckerberg stressed video again and again on the call. Even turning a question about pokemon into an answer about video. Take a listen. One of the big themes were talking about here is becoming video first. Right. And as people look for richer and richer ways to express themselves, you know, just like people in the past have shared a lot of text and photos on facebook, we think in the future more will be video and more of these augmented reality tools will be an important part of delivering that experience and making that fun to use and expressive as it can be. Just as we watched their turn to mobile those years ago the turn to video has been just as stark. There was so much great stuff including the preamble, ten years ago most of us, what we shared and consumed was text. Now it was photos and soon mostly be video. Zuckerberg, what he made a case that basically said look theres going to be 7 billion people, he will wire the world, they have the solar planes basically, going to wire the world and their natural way to communicate is through video. Saying listen, the virtual is now. Obviously the advertisers love the it branded advertisers. The way they do the call, he gives the big think and Sheryl Sandberg talks how the advertisers will like it and get the numbers. I thought sheryl did a lot of great stuff in the quarter talking about how the Brand Companies love it. Compare that to twitter where basically said we have to go direct response. What these guys are doing, they have 60 million customers bubbling up. When you go to a major go to cocacola and say listen we want to match your product with our video. I mean, cocacola will say i can reach billions of people versus giving an ad to a domestic broadcast company. Live is yeah the times are changing. International brand youre going to give a live video, i mean he made no secret of it. It is going conceivably they see it as the real growth opportunity. Who knows. The early days right now. Very early days. Normally you would laugh. A guy says theres 1 . Only 1 there. I cant laugh. I felt very small when i read the call. I felt very small, like im a small thinker. Only thing i edent fy with him i play pokemon. They really do not think on the same plane as we do. Kind of like they think their food for the world that youre going to have to be on facebook. Im not kidding. Its not just not a conflict i had with the existential conflicts. Im small. Im a small thinker. Hes a big thinker. Ai, by the way, is something that hes thinking a lot about. Oh, yeah. Lets use all the initials, vr, virtual reality, artificial intelligence, something people are focused on and you would expect that facebook would be too. Only mentioned a couple times i think on the call but something i think thats going to be significant in terms of their ability to offer and how they run their business. They could do 8 in 2018. Not an expensive stock. I think whats interesting here is that even just his throw away thoughts, at one point someone says, look, you know, why do you like bot so much. I think i like to be asin crowns you than sin crowns you. I google and go wow. People like to do many things at once. This is a very millennial thing, david. Me i pick up the phone, can i have a reservation for two. Hes saying, i want to do that while im doing five other different things. Thats why im saying im humbled by him. Because he really is thinking about what we want well ahead. Steve jobs did that. Henry ford did that. What do we want. Edison did that. This guy is the real deal. So it sounds like youre saying to put a period on it, the Ownership Structure at facebook that affords him all this freedom is a positive, not a negative . Oh, yeah. I mean i just think its a wondrous company. Anyone who like bad mouths our country listen to that conference call. This is a wondrous company. Its truly just fabulous. Why the board allowed that creation of a separate class of stock to make sure that he would remain in control even as they doll out stock potentially for future acquisitions and to the like and their employees. When he leaves it changes back. Very interesting when you read he must not leave. Sandberg must not leave. The beta about the creation of the stock everyone is humbled by them. You listen to them talk about the stock itself for a minute though. 8 bucks. I would pay 160. 160. 160 bid. 8 bucks on 2018. 2018. Thinking 8 a share in earnings. They did what arguably you could argue they did the Fourth Quarter of the is quarter. I mean theyre so far ahead. We used to see these things in the hayday of the personal computer. You would get a quarter i thought they couldnt do that until the end of the year. The quarter is so far ahead of what i thought they could do. And they are again, youre going to write them if youre cocacola and youre in every single 100 countries how do you reach them . Put every channel in the world. Ramp from a billion in profits to 2 billion in no time. Six months. And by the way, snapchat, fine, one point, fine, theres room for everybody. He said 160, right. For the stock. 160 price target. Yeah. Its not expense. Im giving you 20 times 2018 earnings. No. My question is who is suffering as a result of facebooks asen dance . Where is it coming from . No. Not twitter, maybe. Those clown show. Maybe cap net did you just mention them in the same block . Dont put twitter in the same 68 block only because its not as though people are advertising that much more. Its coming from somewhere. Where . Because that would be an opportunity to short those stocks. Well, i mean arguably people are saying its going to come from tv. My problem with that is that i think its really been its in addition. Some of the now cocacola is taking directly, a lot of Companies Taking directly from other forms of media, from print, still from tv. But when you listen to facebook, what facebook is telling you is, were creating a certain kind of ad and people are just kind of doing it and theyre not thinking well i have to cut out somebody else. Im not look, theres there are ways to be able to say this is so disruptive but theres also ways to say its just additive. I think that this is a different i dont know that theyre adding more add dollars. Thats a static number. The tv numbers are not showing anybody is losing in tv. Not yet. Not yet. In the times about political ads and how they appear to not be moving needles the way they used to. The local guys are saying its still good there, but im just talking about that facebook does not have a lot of advertising yet. Versus what its going to have. Lets quickly before we run out of a block, get some m a. Breaking in the last hour, oracle buying netsuite for 9. 3 billion in cash. Founder and executive chairman Larry Ellison owns a significant stake in netsuite an early Cloud Company he cofounded in 98. Deal expected to close this year. Another chapter in software as a service m a. This was a company ive always felt oracle had the highend enterprise, okay, and then the midsize was netsuite, people were always afraid that oracle was going to come in and beat netsuite even though ellison owns 40 . Personally. Personal investment. The other day we got a couple pieces that said, you know, that look this is going to happen. J and p came out july 20 wow. Just yesterday the stock moved up a lot into this. Im sure the sec will be taking a look. Look, i mean there was literally a piece yesterday from j and p saying this could happen. A limited number of potential aquiers as a bmo piece. What i like about this is that small, mediumsized business are really good at. Oracle has that too. Enterprise resource play. It makes a great deal of sense. What can i say. Oracle always aggressive when it comes to doing a deal if they see it and think its going to work they do it. Dont waste time. Will benioff come in, salesforce come in, look, sales force have other enterprise resource planning. They let other companies do that. Workday trading up on that. I think thats silly. I do not think that theyre a seller. Service now trading up. Give me a break. Thats a great growth company. I mean the extrapolations going on this morning seem silly. Finally its the final day of the dnc. Hillary clinton speaks tonight. A combative optimistic tone from the democrats who spoke last night including the president and Vice President biden. Our chief washington correspondent john harwood is in philadelphia with more. Good morning, john. Good morning, carl. You know, the democrats last night rolled out more Major Players to swing hard at donald trump and try to lift up Hillary Clinton. It started with Vice President joe biden and the man who wants to succeed him as Vice President tim kaine. They tried to peel away workingclass voters from trump from a candidate they called dishonest and mean spirited. No matter where you were raised, how can there be pleasure in saying, youre fired. Hes trying to tell us he cares about the middle class. Give me a break. Thats a bunch of malarkey. Folks, you cannot believe one word that comes out of Donald Trumps mouth. Not one word. Reporter then there was former new york city mayor Mike Bloomberg who spoke to independentminded, College Educated voters. He mocked Donald TrumpsBusiness Record an even questioned his mental stability. As an independent, i am asking you to join with me, not out of party loyalty, but out of love of country, and together, and together lets select a sane, competent person. Reporter and finally there was president obama. He swung at trump too but he also tried to reassure those americans feeling left out by economic changes and cultural trends, he told them that were still perfecting our union and that Hillary Clinton is exactly the kind of person who is able to do that. No matter how much people try to knock her down, she never ever quits. That is the hillary i know. Thats the hillary ive come to admire and thats why i can say with confidence, there has never been a man, or a woman, not me, not bill, nobody, more qualified than Hillary Clinton to serve as president of the United States of america. Reporter and, of course, tonight we will hear from Hillary Clinton herself introduced by her daughter chelsea clinton, one of the questions that were going to be watching for is, to what degree does she express that anger that many voters in the country feel. The majority of people feel the country is headed in the wrong direction. She has to navigate that as the candidate of the incumbent party and somebody who has been in National Politics for a quarter century, guys. Our coverage begins at 10 00 p. M. Eastern time. Well see you then. John harwood in philadelphia. Lot more earnings to get to including big miss for ford and what that number means. Also ahead, andrew dow chemicals ceo on his companys merger with dupont and earnings this morning. Premarket dow has taken a turn down three straight and down four out of five. More squawk on the street from post nine in a minute. Shares of dow chemical are criming this morning, the climbing this morning. The company reporting a quarterly profit of 95 cents a share. Revenue ahead of forecasts. Jim and i spoke with dows chairman and ceo Andrew Liveris a few moments ago and started with the companys Strong Performance in plastics. Heres what he told us. Plastics which is driven by packaging david, so consumers are out there, the u. S. Consumer is out there. See it our Building Construction result as well which appears in Infrastructure Solutions and see it in our dow consumer solution section which has automotive, construction, packaging for food, packaging for goods that people buy, whether they be toys or whatever they may be, its consumer driven demand in the u. S. In china and actually even in europe. So, you know, its a mixed global economy, but our sectors are very indicative of where consumers are and i would tell you right now, this result that you just saw which is 11 quarters in a row of volume growth for dow, we produced a billion more pounds this quarter than we did a year ago, or 2 billion more pounds for the first half. Thats actually showing a strong consumer economy. Yeah. Which is somewhat interesting. And perhaps surprising. I mean as is the fact that frankly and you say this in your press release this morning, despite the varied economic landscape youre seeing favorable conditions and robust demand in core consumer led markets across the world. Construction around the world. Construction. I mean put in perspective for me is this a stronger quarter than perhaps youve seen in terms of demand in some time. Well youve got to say its a record quarter in terms of profit and, you know, were producing more than weve ever produced before and were in a run rate of ebitda for the company at 10 billion. Thats double digit ebitda, first time in our history. Youve got to say, were making the products that people want and the people who are buying, consumers, are spending despite, you know, what you just said as being an uneven global economy. The downside pockets whether they be in latin america, parts of europe, those downside pockets are not bad enough to overcome the consumer led demand which means if you saw i saw the mastercard results, also strong on the consumer side. The consumer is spending, you know, call it whatever psychological impact you want. Maybe people feel so bad they want to spend. Whatever the driver is. Yeah. You can go that way if you wish. Our view of it is, weve got the right products in the right portfolio in the right geographies and that exposure is giving us growth and weve narrowed the companys portfolio, especially with our transactions to the point where we are in secular positive growth trends. 15 quarters in a row of eps growth year on year doesnt happen by accident. Andrew, the one division that was not up to what i know you wanted is ag but youre merging with dupont which had an amazing ag quarter. How do the two dog tail. Soy not that good. Sunflower not that good. Are these divisions going to create the Number One Company or because of your i dont know. The weakness i saw here will you still be number one if you combine . Yeah. So yes. But to answer the question right on. But if you do the comparables our friends at dupont did great, did great. Remember, theyre taking out a lot of costs, a lot. Eds done a phenomenal job over there. Weve taken our costs in the ag sector because of the downturn but weve come off a lower term base. The comparables against everyone else in the space, science did very well and the standout was dupont which is terrific. Put the two together and get more powerful. Yes, very, very high on the compli men tarety of our two companies agriculture positions. I was surprised you didnt call out free port or saudi arabia. I think both of these are one of the reasons you said you all that much more production and low cost. What do these mean versus dow two years ago . Well thank you for saying it. Youre right. Were right now starting up both big units. I came back from saudi arabia on the weekend. Try 135 degrees heat in the desert, guys. I would like you to come and visit at that time. No, thank you. But but the answer to your question, jim, well say david, well have it on the call, i have one slide at the end of the call that talks about profit contributions from those two very large project, youll see our run rate ebitda i talked about at 10 billion as we go through the startups and get to steady state and all the synergies, dow, corning, the dupont deal and those two projects our run rate ebitda will go to 15 billion or north in the next several years as a material science company. Thats a lot driven by those lowcost positions you mentioned. Finally, andrew, i would assume youre going to get questions on the call since were taping this prior to it about where things stand with dupont in terms of the regulatory review and there are some who believe your synergy number was low early given some of the numbers youre talking about, from both you and dupont. There are expectations perhaps those synergy numbers will come up. Is that something you will address on the call . Yeah. We will. You know, ed and i and the teams are working hand in glove. Weve had a lot of these six, seven months getting detail and granularity around the synergy numbers. Were confident in the number we announced. You asked about it, both companies are taking out costs going into the deal. So you got premerger synergies, during merger synergies. Put those two sets of numbers together theres a lot of costs out that will come from creating these three incredible Market Leading Companies that this merger speaks to. So yeah were on track and were very confident of the numbers weve announced. And, you know, there are some who worry about the regulatory front, simply because well for any number of reasons including what seems to be an aggressive doj and ftc right now, are you concerned . Look, concerns probably a word we use on our daily life on anything. We can go around really getting anxious about many things going on out there. You havent even talked geopolitical. Look, regulatory environments are what they are. Weve got exactly what we need to do with this deal in the talk about what we have said to the regulators about the three rating. Its not a three. Its its