alix: alix steel. joe: and i'm joe weisenthal. ♪ alix: u.s. equities closing low after apple's disappointing forecast. joe: the question is, "what did you miss?" qualcomm could -- prepares for big changes. alix: as commodity prices tumble, the world biggest miner makes plans to cut its production of oil copper and cold.

joe: three tries from around a while you can't miss. alix: we begin with markets. you're looking at the s&p closing around those opening lows at 2110 that many traders are watching and to see what kind of momentum easy 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. a lot of that is apple. joe: i think this selloff is 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? pretty 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. alix: let's get a read on technology. qualcomm earnings are just out. that's got to julie hyman at the breaking news desk. julie, what do you have? 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 -- breaking up at this but are point, 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.

we 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. makers, 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. it sounds like i guess that is also some part of its strategic realignment. the third quarter pretty much in line with estimates. $5.83 billion. the estimate was for $5.84 billion. really an issue for qualcomm is that we have seen some smart phone weakness in terms of adoption. we have seen it particularly amongst samsung. some of the higher end smartphones may be not selling

as well. that means not necessarily selling is high-margin ships to -- chips 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. o fivet ge was 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 they are up by 1.2%. seeing a little more of a gain. but bottom line, you have a lot of headlines to go through whether you are us or investors figuring out how to trade stock. it looks overall the forecast cut will be the big headline. revenue missing estimates to

some degree. fourth-quarter revenue also be below estimates. the company is now examining the possibility of what it will do strategically. potentially including the possibility of a breakup. alix: we will be digging much 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. -- bhp. the world's biggest miner. they say they will cut oil by 7% over the next year. this tells the whole story. these orange bars right here look at the liability of the oil unit. it is reaching about $8 billion 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,

-- pull back cutting investment , in onshore unit. this could get interesting. joe: everywhere you look people are cutting back. we just heard from qualcomm cutting 15,000. capital retrenching a little bit. alix: will this be enough? with a change market dynamics? joe: i also want to talk about commodities. i looking at the terminal and am this chart, we talked a lot about gold. we talked about oil and copper. but now 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 be 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. alix: goldman sachs is positive on sink because of its exposure it does havecause

exposure to infrastructure in china and some mines 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? david: it is very much as expected, despite these headlines. when the market goes up, we find that things the earnings reports. 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% of companies meeting net income, only about 45% beating on revenue. so, revenue beats being clearly hard to come by. but earnings beats are right in line with what we normally see. we were down here and we are going to the for 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 -- a jvp has not reached old 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. the united states is 5.3%. in japan its 3.3%. japan is at full employment. europe is miles from full employment. i think that it will gradually accelerate.

but the nice thing for europe is that it could go for five years with the unemployment at that -- falling 5% every year and it still would not hit full unemployment. 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 du-jour. that had a huge bump from 2008 to 2014, but debt is increasing. 225% of gdp. what role does this that play in the government need to prop up stock market? david: it is all a 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 quite add up. i am a little bit concerned about the chinese government's clear interest in propping up the stock market. but you have to judge china with a different yardstick and you would other countries. -- venue with would the united states or europe or japan. they have a very controlled financial system. normally we talk about debt bubbles as though they will burst 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. i think china will grow more slowly but i don't think it will ask load and cause 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

50's and the economy grew at an 2004, 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 the dangers of industry and supply, but it is a lack of supply in the u.s. economy that people are missing. joe: thanks to david kelly. that was great. alix: gold is sliding for its 10th day. that is the longest losing streak since 1990 six. according to one chart, matters could get worse.

we will explain after the break. ♪

♪ alix: i'm alix steel. joe: i'm joe weisenthal. "what'd you miss?" alix: check out this chart. this comes from bob of amherst securities saying the decline we have seen is a preface metals 50% retracement since 2011, and if it goes below that we are looking at joe: big tension. 1000. will it break the line and collapse more or bounce out? alix: we do have breaking news for you about uber. julie: it seems that the deblasio administration has blinked, backing away from the

the fight. that is according to the new york times. it has agreed to drop, at least for now, it's plan to cap the number of vehicles operated by uber in 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. sort of against city hall. but under this new agreement, according to people familiar citythe agreement, the plans to conduct a four-month study on the effect of uber and other for hire 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. alix: for governor cuomo as well. thank you so much. joe: celebrities were tweeting about it as well. kate upton tweeted the governor about it. telling him to not cap uber. 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 natural gas. just above one dollar per million thermal units. i am looking at this in my terminal. this is the leading hub for natural gas. it has seen a big decline ever since november 2014. you are looking at production about 16.5 billion cubic feet a day, even though the rig count

has dropped by almost since half january of 2012. that is an unbelievable difference. joe: how connected or correlated our natural gas prices to oil prices? are they totally separate? alix: there is a reason why. when you wind up cutting oil rigs, you cut natural gas rigs. if you cut oil production you are cutting at the end of the natural gas production. day there still is too much supply going around. there is too much stuff there over five dollars with everyone wanting to get in. the same issues affecting northeastern natural gas as well, it's a territorial issue. a transportation issue. it is stuck. you can't get it out. we see the same thing increasing with oil. if you cannot get it places the , price will continue to fall. there are some areas of the northeast without algonquin city gate, it's not 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? alix: the one we never talk about.

take a look of the companies. bloomberg intelligence says the most exposed our range resources 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. -- and transportation related. probably something most people 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. one by one, all of these are being debunked. people are hitting the road again. there are a lot of factors to this. one is just employment. market about jobs, more people need to drive. lower energy prices obviously help.

when energy costs are really high, people are not going to drive as much or only drive for bare necessities. whereas energy gets cheaper, people drive more. this is one of those big long-term trends that really has topped out and it is nicely back on the rise. alix: what happens 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. after much fanfare, the vocal rules went into effect. a regulation named after paul -- four former fed chairman looks to reduce trading risks after the financial crisis. we show you how major banks have been prepping for this for years, next. ♪

♪ alix: i'm alix steel.

joe: and i'm joe weisenthal. "what did you miss?" alix: regulation aimed 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. alix: bank of america and citigroup have cut trading assets the most since the first quarter of 2009. turning back to the earnings today american express, , qualcomm, texas instruments, las vegas sands, they have their results. julie hyman and mike regan join us now taking a deeper dive into , the numbers. i feel like we should start with qualcomm. it was such a dramatic report. in terms of all that came out. mike: our earnings not the headline, but more that they are bowing to activist shareholder pressure? sounds like they will possibly split up the company. dealmaking in chip companies has this year, up

something like 800%. 96 billion in company deals. clearly that dealmaking is not over. if you read this. julie: the idea is that if they do decide to break up, and this is something they are just examining at this point, cutting 1.4 billion dollars in costs, 15% of jobs. but if they do break up into those two segments, it should segment into a patent segment. one of those might get snapped up by an acquirer. up to mike's point, deal activity with a smaller piece being attractive. more than qualcomm overall because it is huge. joe: i was intrigued by the dual headlines -- massive job cuts and more money to shareholders. is this the story of capitalism since the crisis? or perhaps even longer? mike: pretty much. think of hillary clinton cringing. at this news. 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. alix: at the same time collect buybackscriticizing say it is in place of growth. if you look at the sales numbers, that is where there is 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. it makes chips that go into phones. if smartphone sales are coming off growth year over year, that's the story at the end of the day. mike: prices are down, shipments are down, their hands are tied someday the. -- to some degree. but there could be backlash. alix: american express.

it was supposed to be a noisy quarter. 10% on revenue. anything for that, julie? julie: if you 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. to try to boost business. mike: 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, i guess that is good. the dollar really taking a big hit. international revenue was down 10%. they said that fx is up 5% with 15% swinging revenue therefrom the strong dollar.

alix: ok. guys, we will get all the numbers. thank you so much. joe: we will be right back. ♪

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

other earnings that came out, las vegas sands. solid. looks like right in line. alix: seems like overall their margins were better. most of its business in macau over 60%. , the reason they were a big deal was analysts were wondering .ow promotional they had to be it seems like if margins are better, not as bad. joe: they would not have to spend such 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. recovery. you are -- europe and the u.s. make up 72% of sales. 1.6% on earnings, this could be a key metric for sales in the company. joe: another thing that you should not miss, tonight, another greek vote. alexis tsipras is coming back to parliament, an actual vote on the bailout. it is not expected to be dramatic or anything.

he will have a lot of defectors in his own party while opposition parties about in favor of the bailout. but still, you want to watch these red marks. alix: totally. we love the greek. joe: absolutely. alix: have a great afternoon. ♪

♪ announcer: from our studios in new york city, this is charlie rose. charley: one of america's most senior and respected diplomats. 2011 two of state from 2014. he was also u.s. ambassador to russia and jordan. in 2013, he led talks with iran that set the stage for the comprehensive agreement made last week here at he retired from government last week and is now president of the carnegie endowment. i'm pleased to have him at the table. welcome. how do you like thiw