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tv   Squawk Box  CNBC  July 20, 2016 6:00am-9:01am EDT

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hitters unleash blistering attacks on hillary clinton. the latest from cleveland is straight ahead. it's wednesday, july 20, 2016. and "squawk box" begins right now. good morning. the dow continuing to march higher coming off of eight straight positive sessions. it's the longest streak since march of 2013 and we heard it here first right here on the broadcast. it was called the trump rally. going along with -- >> who you listen to. >> i love when harold hams comes on our show as well. we'll have to think about it. >> you've been around long
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enough to hear what people attribute stock markets moves to. >> everybody atrilktds it. >> the crazy stuff. the cause and effect. that's no crazier. he's not a trump fan, really, but his point is that since brexit t mark brexit, the market has been straight up. it's also koicoincided with tru getting the nomination. that's his point. >> although he talks about the social and situational risks of admitting that you were voting for trump. >> holeman has been, at the end he says trump still has to convince conservatives that it's okay to put their faith in him and talking. >> the fact a lot of business leaders are voting for him, but don't want to say they're voting for him. >> exactly. >> we might want to have holman
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come back. >> we don't need to debate it. people can have opinions. >> everybody can have an opinion. you don't need to try to undercut his opinion. >> unle.s. equities trying to undercut the futures this morning. dow open 7 points higher. s&p 500 up 9 points higher. the nasdaq up about 28.5 points higher. >> where are we supposed to be in your world because of brexit? you write a column that predicted. >> no, i suggested there could be problems for the rest of europe, not for the uk. >> you can attribute -- >> i know. >> how about some of the analysts i've been needling for the past couple of. >> year. >> right, but more recently about staying at 2100. we got a guy coming on at 2500.
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this dude. all right. we'll see. >> yes. >> are you going to needle. >> no, i'm not going to needle him. >> sounds like someone trying to retire at the end of the year. >> 12 month target. prone to a setback. >> let's also show you it's been a bit of a mixed picture overnight in the asia. the hang sang closed higher by 1%. the nikkei fell slightly. then we have european equities to look at. you have things looking up across the board with the dax showing real strength. the cac up swem. about 1.2%. so good news there. finally let's take a quick look at crude see what's going on there. it's come down a little bit marginally about 44.57. >> earnings will take center stage today. before the bell we are going to
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hear from abbott labs, haliburton, morgan stanley. then look for qualcomm, american express. don't miss an interview with james gorman at 10:45 eastern time. pimco is stepping up ranks. named manny roman as new ceo. roman is a former banker at goldman sachs working in fixed income vice president babanking he has served in one of the world's largest hedge funds. >> and donald trump officially becoming the republican parties presidential nominee at the gop convention yesterday. joining us now with more. i don't think i've seen in american history the son of the
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candidate be the deciding delegate to put someone over the top. regardless of where you are or which side of the aisle what you think about either can at tdida that was kind of special. i thought it was a good moment. >> yes, absolutely a big moment last night for the donald trump family. as you say, they were all on the floor to put trump over the top. this is now officially donald trump's republican party here in cleveland. he clenched the nomination although there were lolts of votes for people not named donald trump. here is the moment you're talking about. as the trump children came out and did the roll call of the state, new york state passed a couple of times in order to let other states go ahead so new york could the state to put him over the top and here's the way they did it last night. >> it is my honor to be able to throw donald trump over the top in the delegate count tonight
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with 89 delegates. and another six for john kasich. congratulations dad, we love you. >> you heard john kasich's name mentioned there. obviously the ohio governor not coming to the convention hall this week. that's proved a point of c consternation here. we saw paul ryan come out and try to unify the party. bring them together for a run straight into november, straight at hillary clinton. here's what the speaker of the house said. >> what do you say we unify this party? what do you say that we unify this party at this usually moment when unity is everything? >> interesting through because of course paul ryan was a guy who was reluctant to endorse donald trump. he held back and has been critical of trump on the campaign trail. some of the racially comments
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trump has made over the course of the campaign worry paul ryan. another guy out there not so critical of donald trump on the campaign trail was chris christie hoping to be donald trump's vice presidential pick. he got the snub last week and nonetheless he was here in the hall making a forceful case for donald trump as well. here's what he said. >> tonight as a former federal prosecutor, i welcome the opportunity to hold hillary clinton accountable for her performance and her character. >> so the crowd there if you can't quite here, they're chanting, lock her up, lock her up. last night the theme was thosed to be economy jobs, putting america back to work again, but the single unifying factor of the republicans in this hall is
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an anti-hillary clinton that drove a lot of the speeches lags night. that's going to power the party into the november, but on the issues, they are somewhat fragmented from trade to foreign policy. this convention is about that pivot point. see if you can get this party passed. a very divisive primary season. we'll see mike pence speaking today. we'll also see some of the other candidates who ran against donald trump speaking today, including marco rubio expected to speak. ted cruz expected to speak. we'll see if we can get that unifying turn they need to go into the general. >> okay. amon, thank you. >> you bet. >> to some earnings news now, microsoft reporting better than expected quarterly results. the beat powered by the key cloud product. that unit saw revenue grow more than 100%. here to break down the results is jay fleece, our managing director at griffin research.
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great to have you. >> morning. >> this looks like a win across the board. you're take aways on microsoft's quarter. >> it was impressive in several respects. they beat in all segments. their windows business did better than we thought. you pointed out the growth in cloud which doubled. we hadn't expected that. it had been doubling through the march quarter. we figured it would slow some. nonetheless, it more than doubled. the other impressive thing they did last night was to be quite assertive in anticipating margin expansion in the cloud business. this has been an important investor issue that the cloud business is less profitable than the traditional software business, but to be so assertive about margin expansion is important. >> it was the company's fiscal fourth quarter and ceo said the past year was pivotal. what do you think it was about the past year that really caused microsoft to make a turn.
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>> several things. it was the ongoing growth of the cloud business. it was the demonstration certainly in the fourth quarter that the windows business outperformed. we saw last week that the pc market continued to shrink. although there were signs as we pointed out. the windows business in total increased which again is something we had not anticipated would be the case. they've been reducing their dependence on the nokia acquisition, which has basically been terrible. so they're reducing their exposure there. that would be less of a drag on the business and the technology strategy they've been working on the last four years, which we've spoken about on this program before, is beginning to affect their business in a positive way. >> we know pc sells are going down. you said you were expecting the cloud to slow on the growth side. the stock is up 13% in the last
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year. and now they have this massive acquisition to digest. time to sell here? >> no. we've been recommending the stock for four years. we continue to recommend the stock. we expect we're going to start seeing revenue growth resume in total. we didn't see in the year just ended. cloud will be a part of that. totals growth of course. margins we expect will expand. maybe not in the current year, but ultimately the main things investors solid look at would be cash flow. this is going to accelerate. they still had a fairly good cash flow number. we expect it to grow even more. >> why do you think that's such an important metric for microsoft. >> it's important for all software companies. >> it's important for all companies. >> true. >> but nots something we traditionally focus on. >> they are by nature high
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margin companies given the low cost of capital in their business. certainly in their case we do see dependence si on phone business will help and as they move more and more to subscription. that becomes a bigger piece of the total. it will drive cash flow. >> what about ibm on the heels and amazon off in the distance on cloud. where does microsoft sit. >> the distinctiveness that microsoft has is the underlying functional value that they have. in other words, they have office, they have server technology, they have more than just capacity for customers to do computing. they have things that you and i and businesses in particular, it's a commercial oriented business, find value in beyond just mere capacity or computing
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capacity. so this is a distinctive thing they have. they call it a hybrid cloud. that's where we think they have the value to compete. >> we appreciate your insights this morning. >> thank you. >> j fleece from griffin securities. streak of winning sessions remains. maybe again today. it's up for eight straight days and volatility is down. the vix is at lowest level in almost a year. joining us now is todd gordon. if you're in the same room, your ears don't really burn. you heard what i said about you. >> and i almost left the building. >> you're afraid. >> no. i feel -- i'm confident. >> i've been giving people grief about 2100. and pointing out we're at 2170. >> i'm confident in my market call, i'm afraid of you. >> normally it's a slow build
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with joe. >> when i called the call on crude and made the mistake of letting joe know. >> 42. i said we should go to 26 and i mentioned it. >> we're not going to check whether this is true. let's go to this. my problem is people that are at 2170. they're stimbu they're still bullish. they have to go to a committee and talk to people. >> i'm independent research. >> you're 2500. >> within 12 months, but you got your out is that we're set up for near term pull back. >> so you've got everything covered. >> no, again, i'm a trader. we have to trade. >> we won't check where you are in a year. you can say hey i predicted a pullback either way. >> what happens if i need another six months. >> that's fine. you just write about the direction, i'll give you credit.
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>> i feel confident in the direction of market. the market right now is being led by energy, materials, industrials, right. we have these sectors driving us forward. my cause for concern in the near future is technology. we watch an indicator that looks at volume accumulation. we're starting to see the decline. >> very similar. >> don't talk down. >> that was a grand bell, but go ahead. >> how would are you? >> you ask me every time on on. >> you remember. >> anyway. >> dow theory.
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>> okay. go ahead. >> we're starting to see this volume being concentrated on down shares which is technology. technology has not been performing on the upside. i think with the microsoft we're starting to see that come together. i'm personally long. i'm long in emerging markets. we're seeing base maeltds, copper, sink. acl alumin aluminum. the transport is coming back. railroads. we might now have technology joining the party here. >> the volume hasn't been in other just in general has not been -- it doesn't matter. >> it's we've been in a big consolidation. volume has dropped off. we're very much on pins and needles heading into earnings season. i think this is a consolidation period. i remain net long in health care, emerging markets, i'm long
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in silver relative to gold. >> silver can move more. >> there's a long standing historical korlation of silver to gold ratio. i have that, but i just put the bonds on. i feel like the bond market is still in a well established uptrend. that is a nice hedge to a potential short term overbought nature. >> overbought nature. >> see. >> just in the -- >> set up for some near term. >> we're not going to go in a straight line. >> do you want to attribute any of this to donald trump. >> you're not a fundamental guy. >> no. >> it's half and half. >> trump has a special place in my heart. this is any five-year anniversary and this is a fun story. trump was actually at my wedding reception. we got married at trump national in jersey. he was a gentleman. >> did you invite him or was he
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just there. >> we got -- it's kind of a long story, but we got our marriage reception there and he was there. i actually saw him on the golf course, played a couple of holes with him. five ye-year anniversary was th weekend so i'm calling this the trump rally. >> you voting for him? >> i figure i should ask. >> that's why they have a curtain. >> and i'm on this side of the table. >> are you voting for him. >> excuse me? >> are you voting for him? >> i try to be an independent journalist. >> i'm safe on this side of the table. what about kayla. >> i'm independent. >> don't even pay attention to kayla. >> it was gorgeous. i didn't know you were so sensitive. i'm going to take that into account now. >> that's what my wife says. >> remember all these things from the past that i had no idea
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that you focus -- when people continental on. >> it keeps me up at night. >> people are worried about ability to get new clients. you worry about that and how it looks. i'm just trying to get -- >> my clients say todd, don't worry, we'll support you behind you. if kernen gets into you again, we still love you. >> both of them said that. >> that's really good. i'm glad that both of them are going to stick with you. mom and dad love their little boy. thank you todd. >> thanks mr. kernen. >> enough with me. the entertainment world is mourning a loss. what were his most famous. >> "pretty woman.woman.." >> someone just recently -- did karl. >> he interviewed for binge. >> and i think he talked about jumping the shark episode and said it wasn't a very good episode and. >> so it didn't offend him. >> didn't offend him.
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which is now something we talk about -- i mean, that is in the oxford english dictionary. garry marshall passed away yesterday dying from complications from pneumonia after having a stroke. >> a month ago maybe. >> included the odd couple, "happy days," "pretty woman." run away bride and the princess diaries. he recently did speak. here we have a little sound bite on cnbc show, binge. >> do you binge watch any show. >> i have tried. i like a break once in a while. we love timothy on mother's day. we love justified, but i believe in that. it's okay. it's just who has time? i'm playing ball. >>le people make the time. that's for sure. >> no, it's a whole new way of creating, but also a whole new way of watching. it's interesting.
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the kids are so quick and they're watching on their phone. >> and henry wingler to starred as fonzie called marshal a marger than life, funnier than most, wise and the definition of a friend and garry marshall was 81 when he passed away and another of his finds was recently back in a prominent position. scott baio. who was on "happy days." he was a great talent and he will be missed: when we come back, reports out this morning that roger ailes is negotiating his exit as chairman of fox news. details are next. rock crawlingmale #1)
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and voice mobility so your calls find you wherever you are. get some of our most advanced products at a great price with over $500 in savings. call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business. welcome back to "squawk box." big media story this morning. it's on the newspaper. what the fox, and, you know, where this is going. it looks like roger ailes tenure at fox news is coming to an end. sources telling us the decision is near on the nuch of the chairman and ceo of rogers ailes and what decision -- what this decision will ultimately mean to his departure. couple of things to put on the table before we get to what it all means. right now the tense negotiations. >> the promper said he's in.
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>> they are in tense negotiations. unclear what the outcome is going to be. we are getting to the end. rupert murdoch in is europe. he will be back over the weekend. the hope is he will try to intervene in the rebecca broox style way. she ran the newspaper that was involved in the phone hacking scandal and was ultimately saved and became the president again of that company in 2015. nonetheless, james and lockland murdoch are said to be on the other side of this. and the question is how much money will you pay him and what the implications of those payments could be if they actually do pay him out. does it open the company up to additional liability. these are some of the things coming up in these conversations. >> the political ramificatioram >> the political ramification and the other story out there about whether bill o'reilly and
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some big name anchors can ultimately leave as a result of a provision in their contract. could they start another network. rumors and gossip about that. >> can i ask you a quick question about this. rebecca brooks is 48 years old. so putting someone on the shr e sideline for a few years. she has decades left. >> that's what susan es ridge was eluding to yesterday. that being gone is different than doing something. >> you could still have an advisory capacity, but rogers ailes is 76. >> it's not clear he's -- look: it's not clear he was going to stay that much longer anyway. there have not been by the way oddly enough -- i said this earlier, not been any board meetings about this. this is a meaningful component on of the business.
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if we thought this was happening, you would think they would have to consult the board. they would have a board meeting. >> would there be a board meeting before there would be something for them to sign off on. >> that's the question. a lot of front running. obviously drudge came out with a piece of that separation agreement that shows exactly what the payment would be. >> people are writing stories about people checking drudge for -- it's unbelievable how drudge is out in front again. people writing about checking drudge at the convention. all the fox employees all day long checking drudge. james murdoch is probably going to vote for hillary even though rupert is for trump. >> the familiy dynamics are completely different. >> people who would take roberts place, this would not be fox. john moody or david roads, roger is an important part of what
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makes fox, fox. i don't know how it plays out. i'm saddened by it. i've never been asked about roger. i don't work there anymore. i'm not a woman. i can't speak to that. i haven't seen the investigation, but certainly seems out of character to me and a person right at the end of their contract and a guy that has had a target on his back for the entire time he's been there with the liberal media. they've been trying to get this guy. >> but again that's the job of paul wise the law firm to make that call. >> it was shocking that you know i wondered why megyn kelly hadn't spoken up and that would lend some credence. >> let's talk about the future of fox and the impact that ailes departure would have that is 21 centu century. research analyst there. people talk about roger ailes, they kparp him to steve jobs as the equivalent if do you will
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within the news world. he did build something as an economic jugger not and influential jugger not. the question is whether that continues without him. >> just to start with the numbers. it remember-- represents a about a billion. >> the network is uniquely influential and it's been around for 20 years. while ailes was instrumental in building it, much of the programming, much of the brand loyalty that so many viewers have towards fox, has moved beyond just ailes and eventually the essentially what he's brought to the network has other people there who have learned. bill shine has been the lead programmer there for 11 years, 12 years. hopefully he know what is the magic is that makes fox work.
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>> but do they let radiolooger't hand guy stay. >> fox has always been a big proponent of promoting from within. when you hear news reports of others coming in to run fox, limit skeptical. >> moody, was he an anchor. >> inningsrrespective of what t investigation is going to ultimately bring, there was a view, just based on the conservation i had yesterday with people. a view that within the next 18 to 24 months there was likely going to be some form of transition. >> 76. >> just suggesting to you that there was going to be some move here and there has been planning around this irrespective of this particular issue. >> you hope in a company of
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fox's size there would be a couple potential successors for all of the major executive positions. they have that sort of planning in place. especially when the key exec sieve is 76. >> you mentioned the fact a lot of the programming, a lot of the operations has at this point been institutionized. points out at least three of fox news anchors bill o'reilly have key man clauses in their contracts. would any potential resignations not a roger ailes' departure. >> i think there certainly could be departures. first off, where would someone like bill o'reilly go? right? >> he's talked about retiring. >> fair enough. he's talked about retiring. i do think he probably likes his position and there is, you know, while he's a big star tlrks is a benefit to been on fox.
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his brand essentially lines up very well with fox news. >> who does cnn at 8:00? i don't even know. think their smart enough to bring over bill o'reilly. >> bill o'reilly is a star, but i do think there's a certain amount of customer captivity that comes with a brand like fox news where so many of their viewers are just switching to fox news. >> corey lewandowski. >> let me ask you a different question. do you think under a lockland james murdoch leadership that fox news ultimately changes in terms of its politics? in terms of influence? there's been chatter that for example james lockland would seem to be on a politically in a different place let's say than they're father, have you even talked about how the network may hurt them or publicly hurts them in places like los angeles or
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hollywood where they do business? do kri think there's more to this than we're giving in credence. >> we're seeing press reports on that. bringing up lockland's exit in 2006. some speculation that had to do with the fight he had with roger ailes. that being said, i think they're very pragmatic business when and they know what they have in fox news is incredibly unique. it is a network that dominates conservative news and there's not a lot of competitors out there. they're pragmatic enough to say well, maybe they soften the tone or change it a little by, but i don't think they change the strategy. >> you could say it dominates nonliberal news. >> fair enough. >> do you call cnn liberal news? >> sure. >> if you do, fine. >> i would definitely agree. >> mainstream journalism, we
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know what it is and fox news is the counter- weight. there are a lot of competing businesses. >> for investors out there, is there any move here to be made in terms of a different way to think about the stock. >> i don't think so. i don't think you're going to see a mass exodus or fox viewers if one or two major stars leave. there's still 3 million people incredibly emotionally. they go to fox news because they like the bent of the news channel generally and they're used to turning to the channel. huge amount of customer captivity. >> the number may be smaller than the three networks for all of cable. to go from a standing stop to doubling, i mean, i think the combined numbers did it within ten years. that was unbelievable: the combined numbers. >> one that's operational execution and they did find a
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niche that didn't exist. it was a quote, new product that a lot of people were looking for. >> the whole idea was a whole new concept to mainstream media. there you have it. trying to be fair and balanced myself. thanks so much. >> thanks for having me. >> that's a good start. >> excellent. >> it's not a start. >> trying. coming up, nintendo's rally taking a pause on potential problems with the roll out of the hit pokemon go game. details straight ahead. plus getting a littlttle easier get verified y eied twitter. here's a look at s&p 500 winners and losers. seconds can an the difncear
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betweefe and death. r partners ialth, time is life. we he 18,000 people theld. the microst oud helps r en staff stay connted anwork i toelp those that n. the awhate do tetherwork. changes how we live. the awhate do tetherwork.
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welcome back to "squawk box." soon it will be years to score a blue check mark. that coveted check mark on twitter. the process of becoming verified is changing, the requirements for verification are staying the same. a lot of people will praising this as a way for the company to give credit to those who are using the real names and those who are being themselves on the platform, especially as celebrities are getting harassed and deciding to leave. >> there really is -- the
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anonymous, try to get rid of the horrible stuff. you can't find out who they are. >> when you do your twitter account, do you look only at the mentions of verified people? you can do that. >> i try not to look at the mentions. it's just a rabbit hole of negativity. >> it's a cesspool. i love it. i love blocking people. it's one of my favorite things every day. >> i told you, mute. you can mute people. >> why would i do that. >> it's less confrontational. >> exactly. >> right. >> exactly. >> they can still follow you and they can still see what you're tweeting if you block someone they can't see what you're posting. >> i like blocking. >> you like the confrontation. >> it's a coveted thing to get a checkmark. >> it's becoming less coveted. now they're just trying to
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reward people. >> what are they going to do for celebrities and influencers. get a badge to feel better about themselves. >> little gold star. >> right. >> see comes the inequality of twitter is what. >> surprised you're still on it. >> the high low. let's take another piece of digital news this morning. we've had this gentleman as a guest several times. gawker nick denton facing personal bankruptcy. we asked him how he was going to face all this personally and he kind of dodged and weaved a little bit on that particular question, but maybe this is why. the judge refusing to extend protection against liabilities. hogan won $140 million for invasion of privacy after releasing the prowresters sex tape. of course this whole thing continues on appeal so we will see where it all lands.
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i know. >> haven't been doing your drills. >> hulk hogan. coming up, former congre congressman going to be joining us. at the republican national convention deserving as a delegate. peter hoekstra. a quick check at what's happening in the european markets right now. onof mlions of oers on ssible by thsas rs ofuppliers and emploes buwith cybhreats the rise, mary's dcoulbe underattack. th the help of at&t, and security tt sees
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welcome back to "squawk box" for the latest from the republican convention let's bring in pete hoekstra on the squawk news line. hoekstra is a former congressman from michigan who served as the chairman of the house intelligence committee. he is attending the convention as a delegate and congressman, it's great to have you on. we hear a lot of things about
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either a unity at that people feel there or they're really still is not a unity, depending on what you're watching, kasich is not there, no former president or presidential candidates from the republican side are there. what does it feel like to you actually being in the hall? >> well, i think when you're sitting on the floor, you're in an illness lansulated world. you're not seeing a lot of media. you're basically getting on a bus in the middle of the morning and you're for many of us locked in the convention arena for about 10 or 12 hours. i think inside the unity, your part of the production. the production says unity. it feels like there's a unifying movement come accident that the party is coming together and you're well positioned for what is going to happen over the next 13, 14 weeks as we move towards november. when you get back to your hotel
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and you watch a little news and you read some of the print media and those types of things, you recognize that, yes, there's still some lower extremielemento come together. we need some of the party leadership and those things to happen to come out of here fully united. >> you don't have a pause or a fast forward or -- you hear every speech while you're there, don't you, every word or every speech. you can't escape. who has been the best that you've seen or who do you think played the best to the crowd. >> i think giuliani did a great job last night talking among the delegates. there's great anticipation for when the trump family members come to the podium. everybody wants to have some kind of a feel and a better look for who this trump family is and so far i think the people that i've talked to have been very, very impressed with the members
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of the trump family. the trump family is not that well known. so the delegates and the people there, they're excited to see the family and they've been impressed. >> that grounds him and makes him -- it's hard to -- when someone is a father and you have kids like that, it's hard to make him a caricature, which is the whole point. giuliani was two nights ago. you like giuliani. who was the wwf guy? i watched it. he did get animated. he did. >> mean gene oak rland. that's who he reminded me of. i love rudy. >> he wanted to make a point. >> how about chris christie congre congressman. >> he did a nice job last night. run up of speakers coming to chris christie and prior to
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christy, there were although of empty seats on the floor of the convention, but as we moved through the night the arena filled up again and chris christie came out and did a nice job in prosecuting the case against hillary clinton. of course he was having a good time and the people on the floor, they were engaged. >> but it had nothing to do with economics. it was a very powerful speech, but the theme was supposed to be make america work again. it was surprising to see how little any speeches said about the economy. >> i think that's exactly right. on monday night there was a crisp message of keeping america safe and all the speeches were on message and you said, wow, this is very well orchestrated. your observation is exactly accurate. last night was supposed to be about jobs, the economy, and those types of things and there was not that crisp message. it bounced over the place.
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kind of all over the place. sometimes we were talking about national security, again, going back to that message. focusing on hillary and not that crisp message we saw on monday night. that's exactly top this, we hav heard political pundits on both side say that each candidate is their path to the white house is in talking about their competitors. people say donald trump has to talk about hillary clinton. and during the democratic national convention i think you're going to hear the "t" word quite a bit. i'm not sure there's going to be a lot of policy discusses there either. because that's just the nature of the business. go ahead. >> i just want to ask him about the shifting winds of economic policy within the party which is to say both on trade how you feel about it and one of the other things that's emerged even in the last 48 hours is this debate over glass-steagall and the banks. the idea the gop is going to be
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supporting ultimately a move to bring back glass-steagall. something that most republicans for the last three or four years have fought and oddly enough hillary clinton's on the other side of that issue now. >> yeah. no, it's -- there's been some strange movements on some of the economic issues. trade's going to be a big issue. i come from michigan and i can tell you that right now as i talk to people, grassroots folks, you know, the blue collar reagan democrats, the mccomb county democrats, they -- you know, they like trump and they like trump because they really do believe that they'd not got a good deal when the trade agreement was signed. they look to someone like trump to bring the jobs back. i'm not sure that's totally realistic. but no, the republican position on trade has moved and moved significantly. >> so your prediction about michigan, trump wins michigan or
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hillary clinton wins michigan? >> i'll tell you for the last three presidential elections i said michigan's in play. it hasn't been. i think this year it really may be in play and we can win michigan. >> all right. congressman hoekstra, thank you. >> thank you. >> thanks for calling in. talk to you later. coming up, if you've been waiting for tiger woods' return to the golf course, you may have to wait a little longer. the major winner sitting out next week's pga championship. that story coming up next.
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got some news. morgan stanley just out with earnings this morning. that bank earning 75 cents per share. that's a beat over estimates of 59 cents. helped by better than expected results in fixed income and investment banking. little bit of a different picture. i don't know if i want to say a different picture. we're going to be talking more about the morgan stanley earnings. >> goldman will be on too. coming up, someone what's going to be on this show, rick perry. he is in cleveland for the gop convention and he'll join us next. (rock crawling
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it's official. >> congratulations, dad. we love you! >> the reaction from cleveland. the fiery attacks on hillary clinton. and a look ahead to tonight's theme. making america first. we will set the table for day three with former texas governor and presidential candidate rick perry. drama at fox news. roger nels is in talks. what impact could a departure have on the fox news profit machine? and how would it shake up the cable news landscape? we're going to debate it straight ahead. and you've got to catch them all. just not in japan. the birthplace of pokemon may have to wait for the uber-popular pokemon go. nintendo stock taking a hit on the news.
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the second hour of "squawk box" begins right now. live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with andrew ross sorkin and kayla tausche. up almost 70 points. i think eight straight up days for the dow. the s&p is indicating with an implied open of up eight points. kind of closing in on 2200 at this point. nasdaq called up 25. microsoft indicated higher a a positive report. kayla's going to mention that now. but also morgan stanley this morning which was pretty good which we will revisit. >> that's what i'm looking through right now. let's tell you about other
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headlines this morning. microsoft shares are reporting profit of 69 cents per share for the latest quarter. that's 11 cents better than estimates. encouraged by growth in microsoft's cloud business. revenue growth more than 100% there. we do have the weekly report on mortgage applications just out from the mortgage banking association. fell 1.3% last week. that follows the prior week in surge financing driven by ever lower mortgage rates. and morgan stanley just out with earnings. 75 cents per share for the second quarter. that beats estimates of 59 cents particularly strong performances in investment banking and, of course, fixed income like many other banks across wall street helping morgan stanley's bottom line. stock is up close to 3% in the pre-market trading and revenue also beating expectations there. certainly interesting to see ceo
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james gorman talking about an improved but still fragile operating environment for the bank. >> i'm just trying to see one of the things we're looking at yesterday on goldman sachs was the pipeline. which is always the big issue for those trying to figure out where the investment banking business from an ipo perspective is going to be and also from an m&a perspective. we will try to bring you some of those numbers in a minute. meantime, let's talk a little politics this morning. republicans making it official nominating donald trump as their nominee for the president of the united states. donald trump jr. making the announcement from the floor of the convention. >> it is my honor to be able to throw donald trump over the top in the delegate count tonight with 89 delegates. and another 6 for john kasich. congratulations, dad, we love you! >> eamon javers joins us this morning from cleveland with
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more. >> reporter: good morning. as you saw there the trump campaign has really been a family affair with the trump children being involved in the selection of his running mate and advising donald trump sr. so often through the course of the campaign. it's fitting last night was a real moment about family. we saw donald trump sr. having the opportunity to address the convention by video on that topic. here's what he had to say. >> today has been a very, very special day. watching my children put me over the top earlier, the party seal. i mean, what we did getting the party's nomination, i'll never forget it. it's something i will never, ever forget. >> reporter: speaker of the house paul ryan also in the convention hall here at the q last night. paul ryan is a political figure who was reluctant to endorse donald trump. criticized some of donald trump's statements on the campaign trail particularly the racially tinged remarks of the campaign. but ryan ultimately endorsing
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trump speaking last night in an effort to unify the republican party. here's the speaker last night. >> here we are at a time when men and women in both parties so clearly, so undeniably want a big change in direction for america. a clean break from a failed system. and what does the democratic party establishment offer? what is their idea of a clean break? they are offering a third obama term brought to you by another clinton. >> reporter: and hillary clinton a big theme of the night here. she's not very popular among republicans here in cleveland, guys. we saw chris christie, the governor of new jersey, he was a possible vice presidential selection for departmeonald tru. in the end donald trump going with mike pence. but christie coming out electrifying the crowd with some anti-clinton rhetoric. >> we know what four years of hillary clinton will bring. all the failures of the obama
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years but with less charm and more vise. >> reporter: you saw them positioning 2016 as a changed year in american politics. it tells you that the three last elections have been changed campaigns of one side or the other going back to barack obama's original campaign in 2008 when presidential candidates from both parties are campaigning on change after year after year it gives you a sense of why the vote rers so frustrated in this country. we saw some of that expressing itself here on the floor and dissension among republican delegates in the hall. we also saw dissension out on the streets yesterday with vehement protests against donald trump in cleveland. we're going to monitor that throughout the day. we're going to see mike pence addressing the crowd here later today. we're going to see what the vice presidential candidate has to say about this as well. >> not just the presidential elections either. think about the midterms. earth moving, earth shaking
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change. >> reporter: yeah. there's a lot at stake. >> in the midterms. state legislatures, the house, the senate. i mean, there's been many changes within the eight years of the obama administration, there's been huge earth wrenching changes. >> reporter: absolutely. you saw paul ryan here in the q in cleveland. we also are going to see mitch mcconnell here. you know, the senate leader of the republicans. they're trying to defend their majority in the senate. it's a fascinating year. a lot at stake. there are a lot of republicans worried looking at the top of the ticket saying what is the trump effect going to be as you mentioned on all the other races. >> that's what they were saying three or four months ago. you've seen the senate seats up for grabs. the republicans are widening the lead in those with trump as the candidate. >> in the national polls which just use as a bellwether, those are tightening in trump's favor. hillary clinton, her lead has been shrinking in some
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battleground states. that's something republicans can get excited about. >> she'll get the big bounce, too, when -- >> reporter: we'll see. >> when george clooney shows up and all the people we want to listen to about which way the country should go. you know, babs. >> reporter: right. duelling celebrities. scott baio here. >> it'll be pointed out that the republicans didn't get any good celebrity. they had to settle for scott baio. they didn't get any "a" listers. i want someone who memorizes scripts, i want them to be an "a" lister if they talk for me. >> reporter: that's right. >> joining us now, speaking of "a" listers, former texas governor rick perry. he spoke monday night at the convention. it's always great to see you. you're in cleveland. >> yes, sir. >> a lot of times sitting right here. and we both get a little rash and manhattan. i do. i'm itching right now a little bit. but i have to be here. you were able somehow to finally
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accept the binary nature of this election. i'm just wondering whether you -- i guess i understand the bushes in terms of not being able to come to grips with this and staying away. i'm not sure. have you figured out john kasich yet? >> i haven't. listen, i'm a competitors. but i also understand what team means. and we all have to pull together and be a part of the team. you know, that's what made this really pretty easy for me. there were a number of reasons. number one, i spent some time with trump. we talked about building the military back up. that's an important thing for this country as we go forward. having an economy that will get america back on track and making our country secure again. obviously the work on securing the border. those three things in addition to the supreme court appointee. if you want to keep it simple, joe, hillary clinton, donald
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trump, supreme court appointment. that's the next years. the simplicity of this for me, i'm a republican. and it's either going to be donald trump or hillary clinton. and come on, folks. let's get on the team and pull this wagon. >> well, even "the wall street journal" and the editorial board guys like holman jenkins, it's been tough for those guys to come anywhere near a trump endorsement. but even they at this point hoel men jenkins is saying if you're going to try to do something in this country, would you rather -- maybe the market goes up when you cut taxes on business to try to create nor jobs. instead of just expanding the entitlements state and size of government those are you two choices. and even the journal seems to be finally coming around to the binary nature of this election. >> listen. if you want to let personalities get in your way of reality, you
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may. but i don't think that's wise. this is about the future of america. i'm an american. i'm a republican and i'm on the team. i'm never going to find the perfect candidate. the fact of the matter he vanquished other capable individuals. and he's our nominee. so it ought to be a simple thought process. >> governor, just put this in perspective. in 2015 you said donald trump's candidacy is a cancer on conservatism and it must be clearly diagnosed, excised, and discarded. given those comments, doesn't it make it hard to be on that team? and about not believing politicians and their words.
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how do you square that? >> if anybody has paid any attention to the political world that we live in, there's some pretty harsh rhetoric that goes on out there. >> but does that mean we're not supposed to believe anybody when they say it? >> no what that means is we compete hard and hit hard. but we're on a team though. listen, if you go back and dissect everything that everyone's said over the course of the last decade, then it's going to be hard to find anyone who has been on that razor's edge and hadn't gone off one way or the other. >> we've got some choice -- i haven't taken the time to build any full screens with sanders' comments about hillary clinton, but i think all of us really do know deep down that call's fair in love and war. if you look at what's been said by trump about you, trump about scott walker, little marco.
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i mean -- >> or you about one of your friends in the heat of the moment. >> right. we could spend all day with little full screens about what the candidates said about each other and got ya moments. you said this. are you a liar, governor? >> i'm just suggesting that -- >> no, i know what you're suggesting. you're trying to deflect off the importance of the moment. and the importance of the moment is this. we have very important issues that face us as a country. that's like this flub up, if you will, that we're seeing from the standpoint of whether melania's speech took words over here. anything that you can deflect from the moment of looking at what's important to this country, that's what the political world would like to do from time to time. i'm concerned about my country. i'm concerned about where america is at this particular point in time from a military stand front, from a security
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standpoint. and my choice is hillary clinton or donald trump. it's pretty simple. >> where do you think ted cruz is going to land tonight? >> i think ted cruz is going to be for the team. i mean, i don't think he has an option. this is a young, bright, capable individual who's got a pretty bright future. and i think that at the end of the day, he's going to be on the team pulling for donald trump. i don't think he has a choice, frankly. >> but do you think that that's going to be met with the same hesitancy as we heard from speaker ryan last night who seemed to be saying we need to unify the party even against our will. >> those are your words. i didn't hear those words come out of paul's mouth last night. >> he's in a fight of his own. i don't know how that comes out in wisconsin. but he's walking a fine line. he's got -- you know, we'll see how that plays out. you know? he wants to maintain his down -- you know, the downstream
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election sort of credibility. but this is putting himself in kind of a precarious position with some of his constituents. how about pence? you like that pick? >> i think it was a brilliant choice. what donald trump needed as a vice president was an individual who not only brought calmness and intellect to the team, if you will, but also an individual who has a very deep understanding about how to pass a legislative package. and that's not lost on me from the stand point of having a vice president. donald trump knows what he doesn't know. i think that's an important characteristic. he does not have that deep understanding. so bring in a vice president that has the 12 years of working in congress plus mike's strong
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evangelical christian views, if you will. bringing stability from the christian community out there. couldn't have been a better choice than mike pence. >> all right, governor perry. once again, thank you. >> thank you, joe. so long. >> all right. see you later. >> thank you. coming up when we return, the dow keeping its win streak alive. it's the eighth straight positive session since 2013. we'll find out if the dogs will keep the bulls fighting through the dog days of summer. and later conflicting reports about roger ailes departure from fox. we'll see if it happens. we'll be discussing the future of what it could mean to the network during this politically hot season. "squawk" returns in a moment. ec. just 30 billion? a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called...
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right now, they've beaten kpngss. but that said, they're still expected to be down from what will be probably the fourth quarter in a row. so earnings are not what's driving the market. it's been this push lower on yields. >> what about valuations? because earnings have been positive, but it's been largely a defensive sector led rally. and that surprised some people who want to say that risk is on. that want to say there's a lot of momentum behind the market. but the sector story wouldn't necessarily tell you that. >> i think broadly valuations are stretched. yields are at record lows. this has been probably the most hated bull market we've seen over the course of a number of years. >> we heard that two years ago when we were in a bull market two years ago. >> it's true. we try to advise our clients to focus on the fundamentals. if you think back to january and february or after brexit, if you sold at the bottom in the case of brexit you missed a 9% rally.
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so you do need to take advantage of these selloffs from a tactical standpoint while remaining focused. >> do you look at a moment like this and say we've had eight straight days and take profit and not get too greedy? >> we're cautious at this stage. we need to see better earnings to drive this market and not just a yield driven multiple expansion. and for that, we're looking really to the fiscal side of things. if you think about the monetary stimulus that's occurred over the last number of years, that's what's driven this economy to keep it where it is. >> the question is would you let it go this morning? >> we would take profits. we would stay close to our long-term strategic allocation. >> what's the right percentage of cash to be holding here? >> well, i think with the volatility that we've seen in markets, it's better -- all of
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our portfolio markets hold more cash than they've held in years past to take advantage of the opportunities where you have a big selloff. the level of cash is going to determine -- be determined by your level of risk tolerance. >> so 27%? 30%? >> i think you want to be fully invested from a long-term standpoint but keep a level of cash to take advantage of these tactics. so individuals whether that's 5% or 10% institutions tend to be fully invested. >> joe, we appreciate it. coming up, a rough year for morgan stanley. stock down nearly 28%. and underperforming most of its peers. the latest quarterly results. it is trading higher in free market up about 3%. and we'll see whether that holds on. and it looks like the birthplace of pokemon will have to wait just a little bit longer to play pokemon go. details after the break. "squawk box" will be right back. r bank's app.
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the production in japan. the game's developer had planned a launch there for today. but canceled out of fear the hype for the app would overload its servers. that alone has taken 12.5% off of nintendo shares which are up 80% in just the last month. taking the elevator up and the elevator down for that stock today. >> i like that. >> normally it's elevator one way, stairs down. >> what's an escalator? >> up and down on the elevator. no stairs involved. >> okay. coming up, reaction to donald trump jr.'s speech last night at the convention. the coo of quicken loans in cleveland going to join us to discuss the race in business. take a look at equities this hour. we are in the green. back in a moment. can a toothpaste do everything well?
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welcome back to "squawk box." among the stories at this hour, federal regulators pushing for more controls over self-driving cars. they have no authority to block technology before introduced. all this surrounding the tesla autopilot system. morgan stanley shares gaining this morning. beat estimates on the top and bottom lines. did particularly well in investment banking and fixed income. and i don't know if we have an image of this, new york's tappan zee bridge is open once again after the crane -- i don't know if you saw pictures. there was a crane collapse yesterday. fell directly across all the vehicle lanes of the bridge. the new bridge is being constructed alongside the old one. it's one of the nation's largest infrastructure projects. it resulted in only a few minor injuries. >> have you been out there? >> on the tappan zee? absolutely. >> it is one of the largest.
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we usually don't go to see a dam being built. it's mind boggling how big everything is and where they put the cranes on top and how it all works. and the scaffolds coming down with no railings and guys are walking up and down in hard hats. if it was me and you that had to construct the world, we'd have huts. we'd be in grass -- huh? there's no roads. >> every time i cross a bridge, thank goodness i didn't have to build this. >> they're not journalism majors, the guys who know how to not sag in the middle there. they're different men than us. maybe i shouldn't throw you in there, but knowing myself -- >> i'm with you there. >> they're brave. >> this would we agree on. >> we'd be ferrying people across the hudson. another story this morning, nick denton is now facing personal bankruptcy. this just after a judge refussed to extend protections shielding
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him from the hulk hogan lawsuit. he won $130 million after gawker released the wrestler's sex tape. >> that whole thing continues on appeal. it may turn out to be -- well, we'll see. mean tuyl, the big story of the morning. conflicting stories surrounding roger ailes' departure from fox. ken is here. good morning. >> good morning. >> what do you make of all this? >> he's out. his lawyers acknowledged that they're negotiating. so the question is on what terms does he leave? financially and do they -- i'm sure he will push to have them suppress any report that might contain negative information. >> my understanding is there's a debate going on about whether to pay him, whether it should be for cause.
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james and loughlin sounds like they're supporting. and the camp is hoping that maybe if they can wait that long that he will intervene on his behalf. if there's actually payments made to end this, that it could expose them to additional liabilities potentially women who've made allegations. >> there's going to be real pressure for them to release that report or at least a summary of that report. and that's going to be a real test. i think there are two real tests. one is what are the terms of his departure? and secondly who replaces him? this is a business that produces billion dollars of profit. 20% of the profits at 21st century fox. you put a news person in and yet fox news generates those profits
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not because of the quality of its journalism but because it has a brand and identity with conservative republicans. and you risk losing that audience if you take away the edge. >> ailes came from the republican party before his career. so what does succession of something around that brand look like? >> it's not clear. he does not have a clear successor in sight. it doesn't appear he is. but maybe he is. >> his depth colonel. >> he's new to that job. he's been there awhile but he's new to that particular job. >> do you buy and there's been some speculation this morning that bill o'reilly and other big personalities, sean hannity could ultimately invoke a provision in their contract that says if roger isn't there, we don't have to be there either.
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and go to other networks or start their own. >> i think starting your own is tough at this point. roger ailes was a genius at starting fox network. >> who plays it straight? i take a little issue with that. if they had to go do journalism and play it straight. who plays it straight? does cnn play it straight? >> i think it plays it straighter than fox does. >> all right. straighter. what about ms? >> ms is doing a better job of playing it straight than it did. >> you watch fred baer at 6:00? >> he's pretty good. >> he plays it straight. does good journalism. it's not a blanket. >> oh, no. not at all. >> in terms of just looking out -- you know, people talk about roger ailes as the steve jobs, if you will, of news. cable news. do you think that fox news ultimately changes its stripes in some way post-roger ailes? we talked about earlier in the last hour james and loughlin are
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different from their father. >> they're going to be torn. i mean, between their personal views and their business views. their business views is keep the ship -- >> where does megyn kelly land? >> well -- >> and what do you think her -- there's been lots of reports that she's had a role in this. and she's also in the midst of a contract renegotiation. >> and she's been quiet and supposedly she testified with gabe sherman who's done a good-bye goode job -- she's testified that -- >> and she is a lawyer. so one would think she knows where the line is. >> another aspect to this is the women involved. the woman who brought the charges kept quiet for a long time. why do you keep quiet? >> until the day her contract wasn't renewed. ken, do you -- you know, there's a hostile environment and quid
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pro quo. in the -- we don't know what's in that review. >> we don't and are we going to find out? >> it's a hostile environment where, i don't know, steve deucier doesn't give gretchen carlson enough time. is that a hostile environment? is that on the same level as if you want to get on the air you need to -- >> no, no. they are different. >> i wonder db it's just hard for me to believe there's a real quid pro quo here. >> the accusation she's making is it was a quid pro quo. >> to say we should have -- have you heard the expression we should have gotten this out of the way a long time ago. you can almost -- i mean, it's irreverent. but i don't know if you're really saying, you know, if you want to stay on the air you need to sleep with me. >> her accusation was, no, that you need to sleep with me. >> really? >> and the implication was otherwise you're not going to be on the air. is she telling the truth?
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that's one of the questions. >> plenty of these situations are he said/she said. it's nearly impossible without having been in one of those rooms to make a comment on it. >> what we do know is he's negotiating to leave the network. he wouldn't be negotiating to leave the network unless there was evidence that that report -- >> but it also sounds like an investigation is not done. it also sounds like he's leaving before the investigation. >> i'm thinking about when paul weiss put the deflategate investigation together. that took months, close to a year. >> but if megyn kelly has testified that he made a pass at her and others have testified similarly, that's pretty quick evidence if it's true. >> do you ever think -- i mean, i like at the media matters pons to what's happening here. and it's indicative of he's had a target on his back for 20
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years and somehow manages to avoid this happening. and it's also convenient. i would never discredit women that are saying something like this ever. although, the other side seems to immediately discredit bill clinton's accusers. it's weird the way it works depending which side of the aisle you're on. here he is, we're loading up the u-haul to move back into the white house and yet this is -- >> i think these are not connected. >> clinton was impeached. he was impeached. >> right. but that was for with -- not for what's her name, the one that says -- there's ten other instances that had nothing to do we the impeachment. >> i think that has nothing to do with this story. >> how does it have nothing to do with this story? we're back to mike douglas in 1966 with roger ailes. this is stuff that was happening in the '90s. we're talking about someone running a network. not in the oval office. >> let me bring it back for a moment. we talked about the implications
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for fox. in terms of the implications for 21st century, you think it will have the same earning power going forward irrespectively? >> i don't know the answer to that. i mean, if the person who runs it after roger ailes changes it, the question mark is there. i mean, will that -- will they retail -- >> how much are we putting on roger ailes at this moment in terms of what success has been? >> the man is a genius as what he does. when i profiled him in 2003 for the new yorker and watched how he operated, he created talk radio on talk television. and he had people that sometimes was shouting and other times outrageous. but it galvanized an audience. >> is there snib elanybody else business you see coming up that is even close to that?
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>> no. he said you don't think i'm a journalist do you. i said of course not. you're a great producer but not a yurnlism. >> the greatest. and i wrked with the firm for five years. he was one of the most talented television executives. it was all sad. i'm sad and somewhat surprised. >> well, the character thing is really interesting. i mean, it's mixed. but i remember when joe mcginest started selling his book, nixon was furious about the book. all the people who signed it with him, of course i talked to him mr. president. >> the one and only ken auletta. thank you. >> my pleasure. coming up donald trump is the official nominee of the republican party and we will
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speak to the ceo of quicken loans bill emerson about last night's speeches. as we head to break, some of the highlights from last night. >> we know better than most. we know better than to think that republicans are win only on the failures of democrats. it still comes down to a contest of ideas. which is really good news, ladies and gentlemen, because when it's about ideas the advantage goes to us. >> i'm proud to say that the voice of the people of our nation is being heard in this hall tonight and those voices want donald trump to be the next president of the united states. >> he knows that at the heart of the american dream is the idea that whoever we are, wherever we're from, we can get ahead. where everyone can prosper together. a good car has to maneuver quickly. that's so true of a good car company. people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cies,
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mortgage apps hitting the tape about 30 minutes ago. diana oh lick joins us with more. >> the rush to refinance pulled back last week as interest rates came down. total volume down 1.3%. volume still up nearly 61% from
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the same week a year ago. that's thanks to the refie boom that we just saw. applications to refinance a mortgage fell 1% for the week but that's after rising 24% in the past four weeks since the brexit crush eed interest rate. when mortgage rates were about a full percentage point higher. the average contract interest rate for 30 year fixed mortgages with conforming loan balances increased to 3.65%. that's for 80% loan to value ratio loans. mortgage applications to purchase a home, they fell again down 2% for the week and up 1 prst in the past four weeks as we head into the slower summer months. volume still 16% higher than a year ago as they're plenty of demand for housing. just not a whole lot of supply. back to you guys. >> all right.
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thank you. let's find out where housing falls into the mix at the republican national convention in cleveland. william emerson is the ceo of quicken loans. the quicken loans arena is in cleveland. good to see you. >> how you doing, joe? >> good. let's start with what you heard from diana. the state of the industry right now and important to the overall economy, how are things? >> things are very good. interest rates are low. with the impact of brexit, we saw rates drop to almost record lows. just above where they were in 2012. our business is up about 35% to 40% with people coming in to refinance. also as a result of what's happening in the purchase market. we're setting volumes on the purchase side as well. if you have an opportunity out there to refinance, now is the time to pull the trigger on it. overall when you think about interest rates, that's very positive.
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certainly some things and challenges in the housing market. but overall things are good. >> the best areas and the worst areas, is it what we've -- i mean, it's almost been the same for the last couple of years, right? we know where the good markets are and where the bad markets are? >> yeah, i think you're seeing that of course it's a regional thing. i've been going around the country and talking about what's happening in the real estate market. some markets are incredibly hot with low inventory. you heard diana talk about supply. supply is clearly an issue. building new homes, we're about 430,000 units annually below where we think we need to be from a supply perspective. that clearly has an impact on new entrants coming into the market place. the first-time home buyer is 30% of the market, not 40% of the market which is typical. and so, you know, household formation numbers are shifting and changing. lowest levels since the mid-90s.
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i think it needs to be part of the discussion of what we're talking about here with the candidates. >> wu you give mortgages to democrats and republicans, don't you, bill? >> we do. >> so you made it a point to say our name's on the building but it doesn't go further than that. you're mot sponsoring the rnc. >> this is cleveland, ohio. we're incredibly fortunate to have the event here. it's great for cleveland. things have been going great over the past couple of days. all of the feedback we received about cleveland from eerve here is tremendous. this is really about cleveland, greater cleveland, the ability for people to see what's going on in cleveland. it's a fabulous city and we're glad we get a chance to showcase it. >> right. i agree. and atwood, apple -- what was that, andrew? didn't put any of the equipment
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in or something? >> there are technology companies that decided not to participate this year which is different than in history. >> and bill even, he said the name's already on the building. you could take it off the building. but you're happy to be there. >> absolutely. >> and it's great for ohio. it's great for ohio. it's a little bit odd, don't you think b, that kasich isn't going to show? >> listen. it's politics. i mean, if i had -- if i could comment on all the things going on politically on both side of the aisle, we could be here forever. >> please do. we've got a minute or two from you. you are in the mortgage business. can i ask who he's voting for? >> you can ask me. i'm a registered republican. >> i did earlier. >> what do you think he's going to say? >> i don't know. >> bill, who are you voting for? >> the beautiful thing about the process is i get to go into the
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voting booth and cast my vote. we'll know when i cast my vote. >> all right. you call us afterwards. >> because you might not know yet. there's like five people running, aren't there? i heard there's a green person, right? and a libertarian. >> they said this year may be the year of the snapchat vote to say that people will actually vote their vote. you know, they'll take the camera inside the curtain and show what they're voting on. >> really? people following them -- >> and then the memory of that will disappear in 24 hours. >> that's true too. >> all right. anyway, been so far so good, bill. >> look at that guest. >> yeah. that was interesting. there are some worries about things hopefully it all continues to run smoothly. i think it's -- we were watching last night with the kids. i think it's history to watch things like that and watch everybody get excited and watch the different states and who they picked. >> it's gone very well.
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i mean, as you can see just in and around the convention, what's happening around the city of cleveland. the city of cleveland, it's been peaceful to watch. watching the democratic process in action. when you think about the ability for us to transition power peacefully in this country. it's still an amazing thing. >> great. bill emerson, thanks. thanks for your time this morning. >> thanks, joe. when we come back, a check on morgan stanley and other stocks to watch at this hour. rick lazio will join us next. dow would open up 57. "squawk box" will be right back.
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usaa. we know what it mea. get an insurance quote a see wh92% of our members plan to stay for life. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable.
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just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. take a look at some stocks to watch this morning. shares of valeant are rising in premarket trading. up 4%. company received fda approval for the tablet form of its re s relister drug which treats constipation. an injectable drug has been on the market for eight years. seems like a drastic step to take for constipation, doesn't it? an injectable form. i guess if it's really bad. anyway, s.a.p. saw profits jump 73% from a year ago in its
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second quarter. boosted in the cloud business. intuitive surgical earned $5.62 a share 65 cents above estimates. saw higher sales of the da vinci robotics systems. actually, i think andrew, that with the constipation that can occur following operations depending on what it is and just anesthesia or painkillers in general can be pretty scary. so, you know, to say that you wouldn't think of an injectable form i think is run of the mill. but i think it's a serious condition. i want to see how you respond to that. >> i'm not going to. coming up, we've got much more from the republican national -- >> it's a medical -- be yourself. it's a medical issue. it's a medical issue. >> just be yourself. >> no don't. >> very hard to be myself as well. former congressman rick lazio is going to be with us to talk the
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speeches and donald trump going head-to-head with hillary clinton. he returns with much more in the 8:00 hour in a moment. well, how about this? here's my answer. is this you with a dinosaur body? it's just me with happy hands... it just means i' take it. when you add a second line. get another one free
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[rock music playing] announcer: don't let e. coli mosh with your food. an estimated 3,000mericans die from a foodborne illness each year. so, always separate raw meat from vegetables.
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keep your family safe at summer surge. the dow riding the longest
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winning streak in more than three years. plus bank earnings wrapping up with a big beat from morgan stanley. day two of the gop convention closed with the official nomination of donald trump as the nominee. >> it is my honor to be able to throw donald trump over the top. >> plus attacks on hillary clinton. >> i welcome the opportunity to hold hillary rodham clinton accountable for her performance and her character. >> and the trump kids taking center stage. >> and when we elect him, we'll have done all that. we'll have made america great again. >> the latest from cleveland next. plus the death of an entertainment icon. >> so you know who i am? >> hollywood legend garry marshall dead at 81. the director and producer created some of the most popular shows on television and iconic films. we'll take a look back at his lengthy career. the final hour of "squawk box" begins right now.
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♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with andrew ross sorkin and kayla tausche. check out the futures. the s&p indicated up seven. and the nasdaq up 24. european equities were all positive last we checked. less so at this juncture. although germany up 1.3%. we've got a lot to talk about. morgan stanley beating the street. shares on the news strong performance investment banking coming to help the firm's bottom line. looking at that stock to open up about -- >> that should become -- which is down which is different from other banks. >> we should also tell you james
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gorman will join "squawk on the street." that's going to happen at 10:45 eastern time. also microsoft shares beats the street driven by growth in the cloud business. also s.a.p. posting better than expected quarterly results. strong growth and high margin packaged software licenses. and new this morning, the justice department has filed a lawsuit seeking to seize billions in assets allegedly diverted from a malaysian government investment fund. the fund known as 1-mdb is a sovereign wealth fund set up by the company in 2009. multiple individuals including some malaysian government officials conspired to fraudulently divert billions from the fund. other stocks on the move this morning, abbott labs reporting 55 cents a share. that was 2 cents ashare ahead of expectations. also the revenue beat street
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forecasts by new product launches. and buying dollar shave club in an effort to challenge the gillette brand. terms not disclosed. fortune reporter that unilever would pay $1 billion in cash. >> which is close to double what the company was last valued in markets. >> i don't know what it is. do you? >> it's like a shaving kit that gets mailed to you. >> we've had all kinds of people like this on. >> harry's. >> a few different companies that do this. >> i don't know what this one is. >> dollar shave club. >> it's a -- >> what do you use these days? >> i don't know. i got, like, one of those things. five blades or whatever. >> gillette? fusion? >> yeah. i've got one of the straight edge. no, but the thing about this business. it's a razor blade. >> business. >> this is like the first one. i think this is where the term comes from. and they charge a lot.
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>> for the cartridge. >> yes. and we've had guys say they don't cost a lot of make. we kind of get scammed a little bit. >> we could start one. >> i've thought about it. >> squawk cartridges. >> you have much more on an issue. there are days you look like tricky dick when you come in here and have a pretty good shadow. i can -- you know, it's like peach fuzz. you're teen wolf. tricky dick. did you remember he had -- >> i think i do a good job most mornings. >> some mornings you do. some mornings you don't. right? >> occasionally. >> people know whether or not their president's a crook. i'm not a crook. >> i'm not a crook. >> checkers. uniform -- it's a high political season right now. >> yes, it is. >> and there are people that say that '68 and 2016 have some
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parallels. that point has been made. >> i've read that before. >> we'll hear some pretty smart stuff from me. >> i can tell. a lot of smart stuff coming out this morning. >> uniform rental company cintas -- you know what the cin is from? cincinnati. posted better than expected results. >> they're not sinning. >> c-i-n. >> let's talk politics this morning. it is day three of the republican national convention. our next guest knows a thing or two about what's going on going head-to-head with hillary clinton. he ran against her in 2000 in the race for the u.s. senate seat for new york. joining us now is former congressman rick lazio. >> good morning. i think you look clean shaven today. joe, i have to disagree. >> you look clean shaven, yourself. >> well, i use nair. >> no hair is what that stands for. i did not know that. >> full of gems, joe. >> thanks. >> congressman, given that we're a business show, one of the
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things i wanted to talk about this morning we've talked about it a little bit with other guests. just the approach that donald trump is taking and also the republican party to some of the big economic issues and how that's going to ultimately play against hillary clinton. two issues, of course, the big one being free trade. and that shift that's taking place. but the most recent one the past 48 hours has been around reinstating glass-steagall. here we are in new york, a lot of the big banks. this would have a huge impact. this is part of the republican platform. >> yeah. pretty remarkable change of events. when i was in congress i was one of the chief cosponsor sd on what became graham leech bliley. there was a sense that securities, commercial banking, insurance were integrating. that's still largely the case. i just don't know when you get rid of glass-steagall, when california needs a $3 billion
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bridge loan for something, where are they going to get that from? they're not going to get that from the local community bank. so you need to have some scale in order to address some of these issues. number two, when you look at what caused the crisis in '08, it wasn't a result of the integration of securities and banking. securities firms had as much of a crisis as commercial banks. as a matter of fact, in many cases worse. if you look at lehman and bear stearns. they did not have commercial banking. >> so you're not on board with this part of the platform? >> i don't think it's the right approach. i do understand there needs to be a decoupling in terms of the regulatory approach in terms of smaller community banks. as well as these big money center banks. i think we need balance. if you're really setting proper capital standards, it seems to me that's addressing it. >> new report out this morning, by the way, in politico.
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that donald trump might make steve manuchin the head of the treasu treasury. can you see him pursuing this platform? >> you know, i think in terms of the repeal of glass-steagall, turning your back on global trade agreements, forfeiting america's role and getting access to markets and building jobs over here, it does not seem -- it's certainly not the traditional republican economic model. i think for people that are more sq skewed to toe policy side. you look at it from a popular standpoint in the public, there's a lot of skepticism. not the least of which is -- on jobs. you know, you've got 15 years of very weak, real rage growth.
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you look at the quality of jobs, the quantity of jobs that have come back have been reasonably healthy but the quality of jobs have deteriorated. so you can pick immigration, trade agreements, big banks. and obviously candidates from both parties have done that. that's not going to solve the problem. >> hey, congressman, you've heard of this hillary clinton. >> i have, yeah. met her once, i think. >> so back in -- i mean, it was weird because she ran in new york. she had been first lady. and then she came into sort of the national scene after being first lady in new york. and i kind of felt bad for you. you were put up almost as a sacrificial lamb. but you had more actual experience in congress than she did, but she had -- she was bill clinton's wife, basically. >> right. >> and the people of new york vaulted her into the senate and here we are. the rest is history. is that a fair assessment?
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>> i mean, i get people that come up to me all the time on the street i think they're joking saying i blame you for where we are right now. i got in for late. if you remember then mayor rudy giuliani was the candidate. hillary had been in the race for a year before that. i came in about four and a half months before election day 37 we were about 20 points down when i first got in. we were up in the polls at certain points. >> yeah. the point is she came back here, she started wearing a yankee hat. she's from chicago. >> yeah. >> no real political experience other than being married to the president. that was it. it was people knowing who she was. and that's what started and we're still in that. but now the president says -- >> and -- >> the president says she's the most qualified person in the country to be president right now. or the most qualified person ever, i think, even more than george washington. >> yeah. no. you got to look at records, right? performance. what did you do when you were on the job?
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and i think in this case, you know, you've got to look at the fact that i think the american people get this. 55% of the american people voters blooe that hillary clinton is untrustworthy. i think she's earned that in her various jobs whether it's as secretary of state or in the senate or as a candidate. you know? i think people feel as though she's not a straight shooter in answering questions. being transparent. >> that sentiment was clear we the pitch forks that were riled up by governor christie during his speech in his trip around the globe last night. what went through your mind when he was going country by country and talking about her diplomacy record? >> i think it's important and absolutely fair game to talk about her record since she's going to be touting it herself. to explore that and have we built on new alliances? do we have stronger relationships with our allies. in the opposite position where we're losing ground. american public looks around the world and they see the world on
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fire. they see america's influence receding, not gaining. they see a weaker relationship with our key allies. they don't see us standing up as strongly as we could be to our adversaries. think their russian reset for example. but i think it's important that republicans don't overreaching with that they don't make this all about negativity. as much as it's important and fair to be critical and analyze and lay out the report of hillary clinton, what she has stood for, what she has done and proposes to do will be difficult. but also have this positive agenda. i want to see donald trump talk about small businesses. let's talk about that. let's talk about the regulatory approach. let's talk about the tax infrastructure. and whether or not that's rewarding. from business investment standpoint, this has been a weak
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point in our economy. it's not a mystery why that's the case. there's a lot of uncertainty among businesses. i serve on boards. i know what discussions take place. and, you know, businesses are still capital to ensure they're going to be prepared when the next regulation comes around. they ought to be focused or the markets, talent, and products. >> congressman, i know when you go into the voting booth that you get to close the curtain, but i'll ask you the question nonetheless. are you planning to vote for donald trump? >> i am concerned about donald trump. i have not supported him to this date. i have sort of called him out when i think he's been, let's say, off message or not being as thoughtful as he could be on policy. so i'm still kind of in the wait and watch period here with him. i do think he can win. i do think also that he is making a series of unforced errors that are getting him off
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message where he loses momentum. >> could you see yourself going to the voting booth and press the button for hillary clinton? >> no. there's no chance of that. i think that's a recipe for four years of constant scandal on television. and i'm not interested in that. i want to make sure we've got somebody who understands how this economy works, how to grow this economy, how to help smaller businesses, how to set an example in terms of -- i might write somebody in. >> they're not going to win. it's a binary choice. you just made up your mind. you just made up your mind, congressman. no wonder people blame you. >> you got to be true to yourself, right? there's got to be something that comes from the ashes. >> we appreciate your time this morning, your perspective. hope to see you back in new york soon. >> thank you. coming up, a big beat for
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morgan stanley earnings. more on that up next. rock crawlinis ale #1)
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morgan stanley out with second quarter results beating analyst expectations and joining
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us now on set is david hilder from drexel hamilton. >> good morning. >> morning. the headlines for almost every bank and morgan stanley no different this morning. smaller than expected decline but a decline nonetheless. >> that's right. i think the market has reacted to the fact that the second quarter earnings were much better than first quarter. if you look at all the investment banking and trading revenues in the second quarter on a year over year basis, they were up about 4%. that's good. that's not great. but if you look at what happened in the first quarter all the revenues were down 22% year over year. so i think there's a little sigh of relief that although the market were slow in the quarter, they snapped back in the second quarter. and you saw overall good volumes in terms of investment banking and trading. >> certainly at morgan stanley, capital markets on the equity side and the debt side better than expected. trading was down though.
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why do you think that is? >> well, first of all, in equity trading it was down single digit percentage. but it's $2 billion a quarter. it's the biggest in the world. fixed income trading was about flat at around $1.3 billion year over year. but that's better than what morgan stanley had been doing. there were a couple of quarters in fixed income trading that had been very light. again, i think the fact they're back to the kind of run rate that they've talked about is good news. >> for almost every single bank we've seen aum come down. the assets that are under management and in the investment management positions. net flows down. where are people moving their money now? >> i think thauf skeen a long-term growth rate. things with low management fees. and it's really a struggle for
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some of the active managers to continue to perform to be able to draw in new funds. >> so when with l that change? will that change? >> i think it depends on performance. you know, the markets have been tough certainly there are some market environments where it's easier to outperform. but there is a real attraction of chief beta product. >> we're looking at morgan stanley shares up about 3%. but this stock is down by so far this year. do you sigh the financials getting close to where they were on january 1st. ? >> certainly. i think if you look at the overall yield of the financial stocks in my group it's about 2.5%, that's better than the market yield of 2%. you now today in the wall street journal there's a story suggesting the fed may raise rates by the end of the year again. we've heard that before. it will happen vempblly. and a lot of the financials
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including bank of america, citigroup, jp mortgage. to slightly higher short-term interest rates. the overall market multiple is around 18 times. my stocks are 11 1/2 to 12 times this year's earnings. i think there's a great opportunity for those stocks to get back to where they were at the begin og the e year 37. >> we have james gorman on our air later. what would you ask him? you have a question for him? >> king some of the questions that you asked me would be equally well directed to him. i think one of the questions might be whether he's optimistic about being able to increase capital distributions to shareholder. and i think a good question would be the run rate fixed income. can you sustain the kind of run rate and fixed income and can you return fixed income trading
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to acceptable levels of profitability? >> we'll see what he says. quick programming note, that interview 10:45 a.m. eastern. our thanks to david hilder. coming up, a flood of tickets to the olympic games hitting the market in an effort to boost slow sales. buyers they have missed that deal. we've got that story next.
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in squawk sports news, don't expect to see tiger back on the golf course any time soon. the 14-time major winner -- that is a number, isn't it? 14. has pulled out of next week's pga championship. now, while the decision isn't a surprise, it also means that this will be the first time that woods went an entire year without playing one of the four majors. his agenda says he won't play for the rest of the season as he continues to rehab from back surgery. some people are saying it's his best chance to do it now, let it get totally healed. then try to come back. he's definitely still young enough. >> back injuries are not something to mess around. >> phil's 46 and you saw the display he put on. tiger is 40 or 41. not like he doesn't have some good years left. little bit of olympic news
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for everybody this morning. only 16 days until the start of the summer olympics. if you bought tickets to the games early, well, you might be regretting it right about now. in an effort to boost slow sales, rio has opened up the ticketing website to around the world. tickets are now much cheaper thanks to the -- won't have to pay the service fees that are charged by official ticket resellers. i'm getting ready to go down there. >> when do you leave? >> the second week. carl quintanilla bb there the first week. i think we know some people who can get tickets. i haven't been worried about that pa rrt. >> i hope everything's fine. there are people who are afraid to go. i don't know whether both golfers are using it as an excuse. but it is winter. >> high socks, long sleeves.
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>> the folks i've talked to suggest that nine out of a million tourists would ultimately end up with zika. but 15,000 athletes have now gone through the facilities and played in the last seven months. none --
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welcome back to "squawk box" on cnbc. here's what's making headlines so far this morning. unilever is taking aim at procter & gamble with a new acquisition. buying the privately held dollar shave club for a reported billion dollars in cash. dollar shave club has 3.2 million members and has chipped away at gillette which is owned by p&g. elon musk says the believes the acquisition of solarcity. also controlled by musk which has prompted accusations of a conflict of interest. and mortgage applications
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fell 1.3% last week. that follows a big jump the prior week as mortgage rates fell to multi-year lows. morgan stanley beating the street. kate joining us off the conference call. >> yes. i just hung up with their cfo. it was a one-on-one discussion where he gave me a sense of what he might be talking about in a call just under way right now with analysts. he said overall it was a solid quarter. broad base performance with a better environment this quarter than in the first quarter. but it's still characterized by macrouncertainty and geopolitical risk. earnings per share for morgan stanley this morning, 75 cents per share versus expectations of 59 cents. that's actually down from a year ago period if you factor in an accounting change they recently put in. still greater than expectations on the revenue side a similar trend.
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$8.9 billion. still down from a year ago. but the accounting change has an impact. that was nice for them. he drew my attention to the fixed income results. i'll talk more detail about those in a second. they were up about 2.4% year over year if you factor in that dead valuation adjustment accounting change. that's much better than the street was expecting. may account for the rally this morning that we're seeing shares up nicely on these results. essentially presents it was a nice quarter. he said brexit right before the referendum after in late june. definitely had a positive reaction. they saw attractive results in a number of their different businesses including commodities, credit associated with commodities. that's despite an overall effort to right size that business and also some recent changes to the oil merchanting business. finally he said brexit puts us
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in uncharted territory. he said it is too early to talk about moving offices or anything of that sort. and they're focused on $1 billion in cost cutting measures. >> thanks. moving back to the convention. day three of the gop convention kicking off. today's theme, make america first again. eamon javers joins us once again from cleveland. >> reporter: what's striking to me about covering this 2016 republican national convention is just the difference in the family dynasty that's relevant here in this hall in cleveland opposed to past conventions we've seen where the bush family has been the dynasty in charge of the republican party. today, though, very much this is the trump family's republican party. we saw that unfolding last night as we saw some of the trump children up on stage giving speeches talking about their father. really humanizing the man and the relationship with him.
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tiffany trump spoke a little bit, said she was nervous to be on stage. this was her big debut. here's what she said last night. >> i've given a few speeches in front of classrooms of students. but never in an arena with more than 10 million people watching. but like my father, i never back down from challenges. so here i am a little new to the convention scene but very honored and confident in the good man that america is coming to know. >> reporter: we also saw donald trump jr. speaking introducing his father in a way that really any father would want an introduction from his own son. here's the son talking about the father. >> we're still americans. we're still one country. and we're going to get it all back. we're going to get it back better than ever before. i know we'll get it back because i know my father. i know when people tell him it
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can't be done, that guarantees he gets it done. >> so there will be some non-trump family speakers today. take a look through day three. harold hamm the oil executive. governor scott walker. senator marco rubio. senator ted cruz. a couple of the people who were vanquished by donald trump now speaking at his convention in cleveland. then of course the highlight of the day is going to be mike pence, the governor of indiana. he was the vice presidential selection last week. we'll see how he makes his debut in front of millions of people, big national television audience tonight. a big stage for the republican party, guys. they're maneuvering now pivoting toward the general election and trying to get past some acrimony they've had past this tense primary season. >> all right, eamon. thank you. joining us now, not a trump family member really but someone that worked closely with trump
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for years. bob wright. and i worked closely with this man. seriously, bob, if you endorse someone, you're a good man. longest running network executive. i think you still have a record at nbc. >> probably. >> also the founder of autism speaks and author of "the right stuff: from nbc to autism speaks." you're not an ideologue either. >> no. >> i don't think you're registered as a republican. >> yes, i'm a registered republican. >> but you supported barack obama? >> yes, i did the first time. >> okay. so it's just not a -- i don't think it's a knee jerk reaction. you have worked with trump closely. you've known him for a long time. there are qualities even though it was the media business, it was "the apprentice" or miss universe. but you see there are qualities he has that would be good in a president? >> i go back 30 years with him when he was in the real estate business.
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it's time for change, joe. that's my focus. we really can't continue the way we're doing it with bushes and clnts. 24, 28 years and packages here. it's just we need -- we need change and he's the agent for change who's volunteered to be the agent for change. that is something he's very accustomed to and very able to do it on a business side, personal side. he's the agent. you know, this may be the last republican convention as we know it. there's every reason to believe the republican party should split into groups focused on social issues and other groups on more secular issues and main street. >> hold on, andrew. >> and that -- and i think whether trump is elected or not, it's going to happen. if it happens when he's in office, he may even drive it. if he's going to get elected, he has to get independent votes. he's got to get some democratic
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votes. and he has to get some minority vote. >> okay. but some of the points you make, his personality traits. >> yeah. >> that some people identify as negative traits and recklessness. the way that you characterize it, he is very win oriented and he uses sort of a sickle mindedness and you called it a cunning and ability to get his own way in negotiations that would be important in convincing people to get done what he wants to get done. that's seen as recklessness or as abrasiveness or seen as -- >> well, he's highly -- he becomes highly focused. when he gets a task he thinks needs to get done, he's tireless. he gets very little sleep every night. he doesn't need it. and he can just work, work, work. so when you get a task sitting
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in that white house, you need people that can do that, that can be around all the time and focus on -- but, you know, he's going to have plenty of people to bring issues to him. >> if you want to ask him who he's going to vote for. >> i have a different question. it's going to be complicated given we are cnbc and part of the nbc family. just a year ago nbc severed its ties with donald trump and said the following. at nbc respect and dignity are corner stones of our value. due to the recent derogatory comments by donald trump nbc universal is ending its business relationship with mr. trump. >> i understand why they did it. i didn't think it was inappropriate for them to do that. they have -- nbc has telemundo and connection to the hispanic community. so they felt that would put that
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in jeopardy. so i don't disagree with that position. he said that he came in, remember, into a campaign where there were 16 other people. and he just had to make a statement. he had to get ahead of it and he chose those words and he chose that approach. the reality is all of a sudden people saw someone willing to talk about issues that don't get talked about in campaigns. and there are so many other people out there talking around these issues and he goes right through them. some people don't like the result of that. and other people are motivated by it. but that's what got him to this point. >> in fairness, i think trump initially threatened litigation about the way "the apprentice" was handled as well. that subsequently has gone away.
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>> the two of them, they were both doing business. >> right. and a lot of times it's just business. >> the people can only speak so far. paul ryan last night talking about the fact the party needs to unify but barely speaking donald trump's name. you have kasich saying not showing up is a matter of conscience for him. today we get rubio and cruz. do you think we'll se more dissidedi disdense from them? >> i think they're trying to give a good presence of unification. but those divisions i was referring to that i think are eventually going to have to be dealt with real soon. are not going away to easily. they are going to get on the bandwagon about being a candidate supporting a candidate. you're seeing them pull their
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bunches. >> and everybody's got their own -- like paul ryan has his own issues. cruz has his own issues. they've all got their own. >> and he's not going to endorse. he's going to explain, bring his crowd around. >> and some of the people that you're talking about that aren't fully on board, the independents that might come around to trump are coming around just for the same reason that some of these other establishment republicans aren't supporting him. that's the appeal to -- >> the independents are usually the ones that do want change. so the independents should be a big target for him and they have to be dealt with effectively. and minorities have to be dealt with here too. especially the hispanic community. >> bob, on another topic not politics, the news of the day. i wanted to get your thought on roger ailes. a gentleman you worked and competed against. >> i hired roger ailes into the network television business. he worked for me for three years
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between '93 and '96. and he did a terrific job with cnbc. and he brought all this passion to the table and when we did our arrangement with microsoft, the -- we took america's talk which is a channel he created that with us. turned that into msnbc but it went to the news division. he didn't get it and he was furious about that. he felt he put this together and it was very valuable. he got passed over. so that's what led to fox. and he took an awful lot of the people from america's talking. and they became the base point of his whole network. with fox. you have to be careful. you're also treading on things. and, you know, this gretchen
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carlson, i saw that -- when i saw that litigation i thought this is going to be very difficult. >> future of fox news in a world post-roger? and do you think, by the way, he's going to go off and do this all over again? take some big personalities and start a new network at this point? >> i doubt that. they'll survive. no question. there are a lot of people who will come forward that work there. i wouldn't worry about them. it won't be the same but some of the sameness is what they don't want. >> is that in your book? did jack tell you you're going to rue the day that ailes left? is that in your book? >> i don't remember exactly that line. but the stories i'm telling you were in that book about roger. he's -- you know, he just is an over the top person and it's
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worked to his advantage. >> do you know a better tv producer in term of having an eye? >> he's certainly among the best. everybody's got a different situation. he had an open slate with rupert. as long as it was going to be conservative and it would attract attention. so he didn't have anybody holding him back at any point. and no stockholders. nothing. >> very first people -- >> but, you know, you've got james that are running the business and they are clearly aren't happy with the situation. rupert, i guess is going to come in. but he's clearly been notified. you've never seen the front page of the post without rupert. if anything he spends endless amounts of time with the paper. >> let's get that for people who are not just waking up this morning. here it is. this is "what the fox." kind of funny. >> perhaps the clearest confirmation. >> it says you'll see an
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announcement today if not -- i think james said you'll see an announcement last night a couple days ago. >> i think we're going to see something soon. though i'm told mr. ailes is hoping and waiting for mr. rupert murdoch to come back from europe which is going to happen over the weekend. >> and there had been a board meeting. >> yes. there hasn't been a board meeting about this yet. >> yeah. well, you know, that board -- >> exactly. >> that says it all. >> great to see you, bob. >> great to see you, guys. >> we wish suzanne well. >> it'll be over 50 years together. >> great. >> tragedy. just a tragedy. thank you for having me. >> great to see you, sir. thank you. when we come back, taking the stage at the convention last night with soap star turned business owner kim berks erlin
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brown. >> since we have one life to live, i'm now an avocado grower. we have greated jobs and even more tax dollars. we have worked 80 hour weeks and have gone without paychecks.
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the republican convention in full swing. but a new report says the small business vote may still be up
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for grabs. kate rogers is here to take us through the number. we got comments from a few small business owners last night. >> the small business vote is still very much up for grabs. a new report finds that more than one-third of small busines for in november. a nonpartisan, small business networking platform found 35% of small business owners say they're undecided. meanwhile 37% say they're in favor of donald trump and 28% say they're voting for hillary clinton. the survey found 86% plan to actually vote in this year's election both trump and clinton have yet to lay out formal small business plans, though, on key issues like wages, clinton is in favor of a $12 federal minimum, trump noncommittal on a plan he's been back and forth on. clinton wants to ease regulations and trump has put forth a simplified tax code. on health care reform another major issue for companies clinton supports obama care while trump vows to get rid of it day one. small business advocacy groups
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said while they have said a lot on the campaign trail what is lacking on details is what they would do for small companies. >> how do we characterize it as split, as undecided? up for grabs. if hillary were ahead by nine points it would be hillary well ahead of -- >> we're saying 35% still say they're undecided. >> but it's a nine-point spread for trump, right? >> yeah. absolutely. >> okay. >> a third up for grabs which i think -- >> totally split. no. if it was the other way it would be hillary -- can you believe it? small business owners clamoring for hillary. >> i think that's a big number this close to the election for sure. >> let's see where we land. >> the upshot at "the new york times" did you see this? the model. i know -- >> they're still publishing. >> still publishing not just on-line. >> but said hillary clinton has a 75% chance of winning. that's not nate -- >> but i think nate is in the same camp or similar. i saw the numbers come out
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yesterday. so do "the new york times" think hillary has a 75% -- >> i'm not going to -- i shouldn't have said it. when we return jim cramer will join us live from the new york stock exchange. we'll get his take on today's top stories. stay tuned. you're watching "squawk box" here on cnbc, first in business worldwide. got auarter?
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let's get down to the new york stock exchange. jim cramer joins us now. somehow microsoft knows how to work in the cloud, i think, jim. >> dynamite, 100% growth year over year. terrific uptake versus the previous quarter which i thought was disappointing and they would agree. i think that amy hood, cfo callout, pcs were better than expected, bing better than expected, xbox better than expected. surface better than expectedp remarkable quarter in multiple ways. they are developing the alter alternative to aimz web services and everybody sees it and they will get to their goal of 20 billion cloud by 2020. impressive quarter. >> i was looking at thinks because i love the way microsoft does almost $100 billion in revenues, you know, they churn it out, people think that they -- you know, it's like, then i looked at facebook, just for an example of a company that doesn't do revenues, but the market cap is not microsoft.
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but it's up there. and i said let me look at amazon and then amazon is going to do $25 billion but it's a totally different business model. they do more revenue but not nearly the profits. those thiree are like a study i different ways of approaching things almost. >> you took what i wanted to talk about on "mad money" which is the way there are people who love revenue growth and they are going to pay anything for amazon, people who love what i would say is growth at a reasonable price, which is microsoft and then the rest of these. i do tell you that without a doubt, this was the kind of quarter from microsoft which i just have been looking for for some time and they did not deliver in the previous quarter and it was a nice comeback. a 90 day comeback. it's rather amazing, joe, my hat off to them. they did a good job. facebook by the way does have high growth, but not a reasonable pricep. >> so what type of person jim is buying morgan stanley today? >> morgan stanley is the people again not unlike microsoft the last quarter disappointing and they came back very quickly, i
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think dave hildser was right to question whether they could be repetitive in terms of the fixed income. >> we have to go. >> not a problem. >> get to you on time. "squawk box" will be right back. ♪ upont alyearve wishe and now it finly here. e mercedesz with incredible fe onhez summer event is ba you've always lo f. buhurry, these shooting s fly by fast.
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final check on the markets this morning. eight straight records for the dow, the futures indicating a 50-point upward pressure for the dow which is not what it was earlier in the session, but still, surprisingly goes up every day and has been for a while. s&p up 6, nasdaq now up 22. >> that was a fun three hours. thank you, joseph, and kayla, for sitting in for becky today. join us tomorrow. "squawk on the street" begins right now. good morning and welcome to "squawk on the street." i'm david faber and jim cramer we are live from the new york stock exchange. carl, quintanilla, where is he, live from the republican national convention in cleveland. they're on the floor somewhere. taking a look at futures this morning let's give you a quick look. you can see the markets are set up for what appears to be at least at this point a higher open on the broader averages. european markets where do they


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