alix: u.s. equities closing lower today. joe: the question is, "what'd you miss?" qualcomm preparing for big changes, including possible breakup's that could make out with earnings any moment. alix: the world's biggest minor makes plans to cut production. globalread on the economy. three charts from around the world that you cannot miss. alix: of course, we begin with markets. the s&p is closing around those 2110.g lows of to see what kind of momentum that you can see in stocks, all in all the dow is looking at its worst two-day drop since june. at one point it was falling triple digits. joe: i think that the cell was pretty unimpressive. we were here and the market is down 1%.

we heard from apple, microsoft, and yahoo!. and then we get a .4% decline on the s&p? any minor. alix: to be fair, jpmorgan is backing that up, saying today that they see the s&p leaving its month-long range behind, saying -- look, capital returns are good, corporate america is not so bad. all in all, things are not terrible. joe: there was important economic data that we got this morning too. existing home sales highest since the financial crisis. a lot of good housing data lately. hard to be negative on the economy with housing data like this. read ont's get a technology. qualcomm earnings are just out. julie, what do you have? emily: -- julie: qualcomm is coming up with earnings and a strategic realignment plan. i'm trying to figure out what that involves. sounds like they are not raking

up at this point, but are examining the possibility of doing so. they are also saying that they have an agreement with a firm that have been agitating for a breakup, saying that a couple of his associates will be joining the board of directors. a third director will be selected by the company and consented to and added to promptly. that is the latest on the central breakup that was ordered in "the wall street journal," earlier in the week. third quarter earnings-per-share coming in at $.99, the estimate was for $.95. should mention for qualcomm that some of the expectations going into this report were relatively low. given that we have not gotten strong indications thus far for some of the other chick acres, in the past we have seen earnings estimates cut by one penny on average. the company is also saying that they will be cutting jobs here

as part of the spending cut plan. guess that is i also some part of its strategic realignment. the third quarter pretty much in line with estimates. $5.83 billion. islly an issue for qualcomm that we have seen some smart phone weakness in terms of adoption. we have seen it particularly amongst samsung. that means not necessarily selling is high-margin ships to some of its clients. just to give you a little bit more detail on the headlines we are seeing here, looks like the company is cutting its forecast for full-year earnings and it now sees for that 450 to 470. the range have been 406 the the five dollars. i mentioned that it would be cutting jobs, specifically 15% of jobs, planning to return cash to holders in addition to a

buyback, so obviously there is a lot going on here as we look at all, numbers. as i look at my bloomberg terminal it looks like first flush they are up by 1.2%. just as we do we are seeing more of again in the after-hours, but the bottom line is you have a ,ot of headlines to go through whether you are us or investors or figuring out how to trade the stock. revenue missing estimates to some degree. the company is now examining the possibility of what it will do strategically. including the possibility of a breakup. digging much be deeper into qualcomm earnings, as well as others. in the meantime i want to take a deep dive into my bloomberg terminal. take a look at the hp. you want to look at the world's

biggest miner. this tells the whole story. these orange bars right here look at the liability of the oil unit. reaching about eight in dollars as of last year. this blue bar tells the story of capital expenditures when it comes to oil. down by 6.5 billion. it is not making the money that it needs to make. more liability, you can see, with cap x following, you are continuing see them hold act, cutting investment in onshore unit. this could get interesting. everywhere you look people are cutting back. capital retrenching a little bit. alix: will this be enough? with a change market dynamics? joe: looking at the terminal and this chart, we talked a lot about gold.

let's talk about the metal that everyone really cares about, zinc. zinc is caught up in the commodities selloff and it really was crushed in the last few months. truth he told, not many people talk about zinc or care about zinc. the point is that commodities overall are getting smashed and everywhere that you look, zinc, tin, everything getting slammed. just another example of the overall selloff. goldman sachs is positive on sink because of its exposure to infrastructure, china, but some minds are being cut. joe: you never know. alix: joining us today from jp morgan, we want to check on the health of the global economy. david, first we would like to start at home. we are kind of in the heat of the earnings season. what is your read on it? asid: it is very much expected, despite these headlines. we find some good things in the

earnings are ports when they go, bad things when they go down, but the reality is that through last night we had one third of the market cap with 69% beating so,income, owned by 45% or revenue beats being clearly hard to come by. earnings beats were right in line with what we normally see. we were down here and we were going to say that way to the season, but not as bad as the last two quarters. overall i think this earnings season is fine. it is not a fast-growing economy but i think that the earnings picture is gradually brightening. joe: shifting from the u.s. to europe, one of the things we have talked about this year is growth in europe being not that bad, beating the u.s. in some ways. but overall things are really mediocre and jvp has not even reached its own highs. from your perspective, how much further does the eurozone growth story have to run?

showing that real gdp is not even back to where it was in 2008, does it look to you like the european expansion could go on longer? david: actually, yes. that is the point. the first or second inning here of the european recovery, the unemployment rate is still 11% for the overall eurozone. is 5.3ted states percent. in japan its 3.3%. europe is miles from full employment. i think that it will gradually celebrate but the nice thing for europe is that it could go for five years with the unemployment at that for five years and it would still not hit full employment. a lot of room to run, but as an investor that's a good thing. alix: really over -- sorry, joe, you have a follow-up? joe: no. alix: china has been the topic do sure. -- fddu-jour.

that had a huge bump from 2008 to 2014, but debt is increasing. what role does this that play in the government need to prop up it is all a? david: bit mysterious. the problem is that we look at the gdp numbers in china, they look like they are too strong based on what we are seeing in housing and exports. looks like gdp growth is overstated, but that is nothing like the debt growth, the total growth in debt in china is running way above what you would expect given the economy. even when growing this fast. a lot of those numbers do not to im concerned about their clear interest in propping up the stock market. -- i am concerned about their clear interest in propping up the stock market. but you have to judge china with a different yardstick and you would other countries. they have a very controlled financial system. normally we talk about debt bubbles as though they will in some cataclysmic

explosion, and i think in china it will be more like it debt balloon, with the air gradually coming out. i think that that would be possible in a chinese economy. way -- not exploding the in the way of a financial crisis around the world. joe: we have been taking this economic tour around the world. what is the big story that keeps you up at night? what are we missing? david: how fast the potential growth of the united its economy has fallen. for 50 years, between the mid-19 2000 or, the economy grew at an average rate of 3.4% year. in the last decade we went at half that. we had a chronic labor supply problem, productivity growth is low. once we hit full employment, get down to 4% unemployment, there is very little room for this economy to grow. this economy will grow more slowly in 2017, 2019, 1 way or

the other. investors need to start thinking about the implications of that investing more abroad, more in anddangers of industry supply, but it is a lack of supply in the u.s. economy that people are missing. alix: thanks -- joe: thanks to david kelly. that was great. alix: golda sliding for the 10th day since 1996. -- gold is sliding for its 10th day. we will get more after the break. ♪

♪ alix: i'm alix steel. joe: i'm joe weisenthal. uber:" -- i'm joe weisenthal. "what'd you miss?:"

alix: check out this chart. precious metals declining 50% since 2011, and if they go below that we're looking at 1000. big tension. will it break the line and collapse more or bounce out? alix: we do have breaking news for you about uber:. it seems that: the deblasio administration has blinked, backing away from the fight over according -- their blocking --ber, agreeing to drop the potential inck for a cap on vehicles new york city. this is been a very contentious fight. people logging income messages that said what the wait time would be, a propaganda campaign, but it would the if this cap was

put in place. someone told me that she was taking robo calls. agreement, the city plans to conduct a four-month study on the effect and other for higher vehicle operators on the effective city traffic. it was supposed to come to a vote as early as thursday. they had called for a caps on growth while the study was being conducted, but now it seems as though any vote be pushed to after the study is complete. this looks to be a pretty big victory for uber, which had been inundating the airwaves with a campaign against this cap. four governor cuomo as well. joe: celebrities were tweeting about it as well. kate upton tweeted the governor about it.

that was obviously the straw that broke the camels back. alix: here is something that you may have missed. one dollar natural gas. you have been hearing about the oil slide? take a look at northeastern national gas -- natural gas. i am looking at this in my terminal. this is the leading hub for natural gas. they have seen a big decline ever since november of 2014. feetction at 16.5 ilion are day, even though the account has dropped by almost half since january of 2012. that is an unbelievable difference. correlatednnected or our natural gas prices to oil prices? are they connected? alix: when you wind up cutting oil rigs, you cut natural gas rigs. the end of the day there still is too much supply going around. there is too much stuff there

over five dollars with everyone wanting to get in. issues affecting northeastern natural gas as well, it's a territorial issue. we see the same thing increasing with oil. the price will continue to fall. there are some areas of the northeast without algonquin city across-the-board but there are pockets where we are seeing very low prices. joe: the story everywhere is glut. milk, oil, natural gas apparently? talk the one we never about. take a look of the companies. the most exposure is in range resources and cabin oil and gas, which is running on friday that net income is supposed to be down 85% year on year. there is a huge ramification for these guys. joe: i want to talk about something that is energy interest occasion related. it's something that most evil miss. total vehicle miles traveled in

the u.s. has hit a new record high. this is a number where, you know, remember back in 2007 people talked about how everything would totally change? people not into homeownership anymore? there are all of these new narratives that came about. these are all being debunked now. there are a lot of factors to this. more people have jobs, more people need to drive. lower energy prices obviously help. when costs are high, people will not drive as much or only drive for bare necessities. this is one of those big long-term trends that really has topped out and it is nicely back happensise. alix: what now? why are the gas prices not lower? joe: i live in new york, i don't really pay attention to them. that i know. alix: all right. a regulation named after paul

the girl looks to reduce trading risks after the financial crisis . we show you how major banks have been prepping for this for years, next. ♪

as i mentioned, the volker rule went into effect today, aiming to reduce risk by cutting prop trading. joe: you can see banks preparing to their trading assets and the median ratio of those assets of the six major banks and the decline over the last six years. assets -- alix: assets have been cut the most since the first quarter of 2009.

american express, qualcomm, texas instruments, las vegas sands, they have their results. julie and mike join us now, taking a deeper dive into the numbers. i feel like we should start with qualcomm. it was such a dramatic report. the: our earnings not headline, but more that they are bowing to activist shareholder pressure? sounds like husky split up the company. dealing making -- dealmaking in chip companies has been at 800% this year. clearly that dealmaking is not over. the idea is that if they do decide to break up, and this is something they are just examining at this point, cutting costs, 15% of jobs, but if they do break up into those two segments, it should segment into a patent segment. mike'sthose, up to

point, deal activity with a smaller piece being attractive. i was intrigued by the dual headlines -- massive job cuts and more money to shareholders. is this the story of capitalism since the crisis? pretty much. think of hillary clinton cringing. joe: or the opposite, that it could rally. mike: there is really a growing chorus of people whining about these buybacks. this is the type of thing that critics of buybacks love to hold up and say -- why are you laying people off and buying your own stock? it's not good for the economy. at the same time collect critics have been pointing out that it is in place of growth. looking at the sales forecast,

that's where there's weakness. if you say not to look at these over here, look at the earning over here? alix: at the end of the day you are looking at the fall of the smart phone shipment. that is the story for qualcomm. smart phone sales are coming off growth year on year, that's the story. prices are down, shipments are down, their hands are tied someday the. american express, it was supposed to be a noisy quarter. 10% on revenue. anything for that, julie? look at those numbers, and i have not had as much chance to look at those in detail, the earnings-per-share beating estimates, the revenue missing estimates, again you have a little bit similar of the story in that you have expenses being cut at the company at the same time that you have revenue

falling. also, amex has been making big investments in technology and other things. amex is a good company to step back and look at the macro view. u.s. revenue up 6%. people charging more for the credit card, but dollar is really taking a big hit. international revenue was down 10%. they said that fx is up 5% with swinging revenue therefrom the strong dollar. yanks, guys, we will get all the numbers. joe: we will be right back. ♪

alix: i'm alix steel.

joe: i'm joe weisenthal. "what'd you miss?" las vegas sands, solid or right in line? seems like their margins were better. mostly in macau over 60%. the reason they were a big deal was analysts were wondering how proposal they had to be and it seemed like if their margins were better -- joe: they would not have to spend such as much -- as much. alix: don't miss this, the number one thing used care about, european sales. europe is showing some kind of improvement. that could be a roadmap in the u.s. and it makes up 72% of sales. on earnings, this could be a key metric for sales in the company. joe: another thing that you should not miss, tonight, another greek boat. coming back to parliament, and a will vote on the bailout, it is not expected to be dramatic or

anything. , you will want to watch these different marks to see how they do. alix: totally. we love the greek. joe: absolutely. alix:

emily: apple shares tumble, dropping $30 billion in market value. why some art concerned about the company's pace of innovation and what tim cook can it do about it. ♪ i am emily chang, this is a special "bloomberg west" from you newark. -- from new york. qualcomm is cutting jobs since its worst jobs market since 2009. e-commerce entrepreneur mark