good morning, it is 11:00 a.m. here in the financial capital of the world in downtown manhattan. it's 8:00 a.m. out west and "squawk alley" is live. ♪ ♪ ♪ start spreading the news ♪ i'm leaving today ♪ i want to be a part of it ♪ new york, new york >> welcome to "squawk alley" for a friday. joining us on set today, re/code's kara swisher is here

at the new york stock exchange, good to have you. jon fortt is here today, kayla is off. we'll start with apple, preorders of the new iphone 6 s and 6 s plus begin tonight. arguably the tech story of the week. a new iphone, a larger ipad. improved apple tv and of course the apple pencil. despite all the is that correct we got all week long, kara, you say they remain the world's most influential tech company. >> well actually walt said that walt wrote an essay for the verge, which is our partner. and he was talking about the idea that even though there's some things that haven't been working, the apple watch i think is questionable still. apple music is somewhat of a mess. think jon has talked about that a lot. they still manage to turn in a combination of software and hardware that's still the most attractive in the industry and i think walt is 100% right about that. they still have issues around mail and other software that i think probably need upgrades, do need upgrades in general they continue to come out with

innovation after innovation, which is hard. >> today and monday are big days, we haven't talked about this yet i don't think. normally on the monday after preorders start, we get an aggregate numbers of how preorders went. last year it was 4 million in the first 24 hours, that's the benchmark. what's going to be interesting this year. is there's a two-week preorder period before actual sales start. it feels to me like apple is leaving some room to build up inventory to get the pipeline filled with product. it's also different this year, because china and new zealand, but really china is what we're focused on, are going to be added to the first countries that are going to be allowed to have a preorder and get product. so finally we're going to have some data on how iphone demand really looks despite all the fears there are been about can apple really grow from here. we're going to have some data. >> it's still not a major upgrade, there's cool new nifty features on it it's still the

interim one, like the interim presidential election. i'm not upgrading. i don't see a reason. >> i did call up the mid-terms the other day. >> i think what's more interesting is the ipad pro. i think that will be interesting to see the sales of that. tablet as walt has written about a lot. tablets are trouble, it's still a troubled area for apple and others, where people get excitement out of it. so this is sort of a, like a surface. this is the surface, the apple's version of the surface. i was like wow, that's the surface. so i think it will be interesting to see if people and the impact on laptop sales. >> i don't know if i would use this over a laptop. i think the style us is interesting, because steve jobs used to hate the stylus. so that's fantastic in a weird way. it will interesting to see how that does. they're moving with ibm and others into the enterprise space, can they provide the kind of tools that people in the workplace want to use. >> what phone do you have right now? >> iphone 6 plus. >> but if you had a 5 you would be upgrading? >> i wouldn't have a 5.

>> i'm the only one who thinks this is a huge update. especially because of 3-d touch. if this works the way it's supposed to. it's going to allow you to do so many things a lot faster. and the s update usually has the bigger camera update. that's something everybody uses all the time. if the camera quality delivers, people are going to be talking about that. so we'll see. >> we'll see. >> i think but it is more of a mid-term thing. i think what they could do in terms of the new look and feel of it could be interesting eventually. it's just they've got to keep improving these things, even at least around the edges in order to keep sales going. in order to keep people satisfied with the device. >> meantime we had uber on late night last night. ceo travis kalanick joined stephen colbert and was asked about driverless cars, take a listen. >> google is doing the driverless thing. tesla is doing the driverless thing. apple is doing the driverless thing. this is going to be the world. the question to a tech company do you want to be part of the

future or do you want to resist the future? and we feel that in many ways we want to not be like the taxi industry before us. and so, that's, that's how we think about it. >> interesting appearance that was reportedly interrupted by some audience members demanding questions on pay, which colbert apparently did pose to kalanick. although it didn't make air. what did you think? >> he said that, he said it first at our conference two years ago, this idea, he got in a lot of trouble saying someday we're going to replace everybody with driverless cars, he stepped it back saying it's 40 years hence. that kind of thing. but the thing about the future, it feels like i'm in a "star trek" movie. but in essence, eventually this will happen and therefore, he's just saying it out loud and travis likes it say things out loud that are a little controversial, but he's not lying about this idea that what happens in a driverless car environment. his company has to respond to that. because they're a ride sharing,

company. i think it's an evolution, not a revolution. >> a couple of things i noticed in the interview. travis played it very straight. not a lot of smiles out of him in this interview. not that he's yucking it up all the time. colbert is filling the jon stewart niche a little bit. now that he's moved off of the daily show. having these more serious guests and pursuing a more journalistic tone. what did you think of the way they approached some things, travis brought up google, tesla all working on driverless cars. so we don't want to be left behind. brought up the way they handled surge pricing. >> i think he's going to like be 400 years old and he's going to be defending surge pricing. they're like, we don't do it in emergencies, we made a mistake here. we did -- you know this is never going to be perfect. how he rolls this out and he's going to get dinged river time. fairly or unfairly. i think the difficulty is when

everybody wants to use uber it's a product people really like, you see that 1.9 or four times, last night it was pouring rain and it was 1.9 and i'm not going to do that. i got soaked. >> i have this -- i have a fight with my wife every time. if they weren't getting that fare, they would not be asking for that fare. >> but then there weren't any taxis. >> this is how it worked at high school in lunch-time. if you wanted a ride to mcdonald's, you had to buy the driver a value meal. >> you did the definitive profile of travis for "vanity fair." >> yes. >> the "journal" comes out today and says the tech ipo market, only 11% of ipos this year are tech. that's the lowest since 2008 and the market is getting increasingly shut. >> a lot of private companies are staying private. twitter might not go out next year. >> you mean ub centre. >> excuse me, uber. twitter might go back in. >> it turns out i was right last week. >> you do see the door shutting? >> you know i don't know if it's

shutting, it's just why should they? uber has plenty of money. they've all got plenty of money. why rush to something that's difficult. travis is going to have to navigate a public market. i think that will be an interesting thing to watch. why should he when he's got all that money? why should a lot of these companies? >> what about the ones that have to. we just saw good get snapped up by blackberry, partly perhaps because -- >> there were a lot of growth issues. >> it was hard to find the money to spend. are we going do see acquisitions or companies going public in not the best environment? >> i think acquisitions is what you're going to see a lot more. there's a lot of opportunity, there's a lot of very good companies. the question is, you're not going to see an alibaba this year. that's the big giant ipo. i have a feeling, that's going to be the big ipo. uber ipo, probably airbnb. the question is, they all want to hold it off from talking to them. there's no reason. they have the money, they're like public, but they're not.

we had a good interview with mark andreessen where we talked about that a lot. the idea, like why do it now when they have the ability to do what they want in a relatively private way. >> what a strange turn that is. >> finally kara, you wrote about ellen powell this week, she wrote a piece for wee re/code, about dropping her appeal against kleiner perkins. she wrote i have a request for all companies, please don't try to silence employee who is raise discrimination and harassment concerns. instead, allow balanced and complete perspectives to come out publicly so we can all learn and improve. >> walk us through the die nam ices, why it's not going forward. >> it's costly. moving on with your life. i talked to her sensibly yesterday. she's gotten attacked online. and you know people who attack her think it's okay to call her names. but ultimately it has a toll on her family and herself. she had gone through the reddit thing. very similar topic. miss ogny was around her

departure. not just misogynistic, but racist. all things on that service were problematic. there's a point where you have to move on. i think she's thinks she's made her point. kleiner perkins, she wasn't going to win, anyway. maybe, maybe not. i don't know. but she had hoped to win in the trial and did not. and i think that at some point you have to say i've made my point. i'm not going to win this. >> she's out at reddit. kleiner perkins, they got beat up, but they seem to be fine. how much is really changed? >> i think it definitely brought discussion happening. i think that's always the first step in any kind of struggle. it's clearly a problem. it's nobody could ignore the problem now that these numbers that come out of all of these companies are so skewed. in way that has you know, no racial diversity, no gender diversity. and so i think people are definitely thinking about it. i think it's one of these, it feels sometimes like a third

rail thing. nobody wants to touch it. but at least it got discussed in and in a very vibrant way. people started -- i'm a hopeful person. i think that's the way things begin to change. you do get a sense that it's gamed in silicon valley. it really is. for a certain group of people. so and i think you know those are issues all around our country in a much more serious way. in around what's happening. >> and i think any kind of discussion, it doesn't solve the problem, but you know, even the discussions over confederate flags, it just begins to start to have people not pretending. >> it sounds like she doesn't want to stlrks because she doesn't want to be silenced going forward. she still wants to be able to talk about this. >> there is no settlement. she's just dropping the appeal. that would be the next step for her. it would mean another trial for her. i think at one point she did make and i think kleiner perkins did agree, she's outgn unned. they've got lawyers, pr people, witnesses. in that trial they had a better

lawyer, they had a great lawyer. lynn hermley. they have more money. so ultimately she's not going to win and her case, it's complex. that's the problem with these issues, they're complex and people you know they watch television, they see a black and a white. we did an interview with ellen at "code" a lot of people are like i kind of like her. and i'm like why does that have to exclusive? the disagreements in the workplace can be very complicated and there's not always an easy answer and i think that's the issue, the ability to tog about them begins to bring them to the forefront. we've got such a difficult political situation where everyone is on one side or the other so it's going to be for years to come, an issue, i think. >> one thing that seems to me to have changed is ten years ago at silicon valley. the culture was, if you're a woman and you want to get ahead. you don't speak out about these things publicly. you mentdor, you coach, but you don't get out on twitter and call out companies. >> no, you do. it's an interesting thing.

and the question is will it work? will it continue? i mean can you look at all kinds of social justice movements and it's worked for gay marriage, it's worked for all kinds of things. it may not work. i had dinner with someone very prominent last night. and he xi was talking about being a difficult woman, does that work. and i said i'm difficult all the time and it seems to work okay. we did a podcast with lena dunham and even she talked about here's a very strong woman, a very talented woman, about the toll it takes for her to be outspoken. she said she feels sometimes, a lot of the online attacks on her, feels like a cancer and she doesn't even look at twitter. i don't, you don't have to feel sorry for lena dunham. but ultimately someone like that is cowed a little bit? it's interesting. at the same time, she's speaking out and i don't think she'll stop speaking out. >> could you come in every friday. >> i would be happy to i love the dudes here, one guy when i was here said re/code in the house this wall street dude, it was fantastic. i love it. >> kara, thank you.

>> thanks a lot. >> don't miss kara's podcast, re/cod re/cod re/code/decode. kroger beat expectations, raised guidance for the year. energy the worst performing sector, murphy williams, transocean and hess all among the biggest laggards on the s&p. when we come back, don't underestimate china's economy, where one vc sees opportunity. plus is apple making the right moves in fashion? yahoo's fashion editor in chief will join us to break it down. nchtsd and under armour the tech company, the tech company's digital on wearables and more when we continue. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate?

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welcome back, worries over china's slowdown pushing the shanghai composite index down more than 35% in the past three months. what impact will the market volatility have on chinese start-ups? our next guest says not to worry. joining us, glen solomon, managing partner with chinese focus ggb compaapital and an ea investor in xiaomi. >> i keep seeing the headlines about chinese start-ups inflating the amount of money

they've actually raised versus, versus what they put out there. let's see, i think there was one that said it had raised $200 million in a round and maybe it only raised $65 million. aren't there some things to be worried about in this market? >> sure. you know when looking at china, jon, you have to recognize that there's a new economy and an old economy in the market there. and old economy companies are the state-owned enterprises, the companies that are largely inefficient and not agile, unable to compete with new economy companies, tech companies, tech-enabled businesses, many of whom are venture-backed. where there is a lot of capital, and those companies are getting capital and tending to do well in the market. and really outcompeting the old economy companies. the indexes in china that have not performed well, are largely old-economy companies and the new economy businesses, many of whom trade in the u.s. as adrs,

have performed pretty well. you're seeing plenty of capital go into young, tech-focused companies in china and the venture capital arena. >> where are the smartest investments in china right now? is it the gaming companies? or has the game changed now that you've got some of these more platform focused companies that are having more of an influence on how people buy digital goods and consume digital content? where do you put your investment dollars, your early investment dollars now? >> in china like the u.s. you have to be aware of what the incumbents are doing. but it's even more pronounced in china. the alibabas of the world, the ten cents of the world. the sea trips of the world, in their respective industries, whether it be travel or ecommerce, you need to understand what the big guys are doing when you invest in smaller companies. the big companies have a lot of sway in the market, they're speaking to a lot of capital and we're seeing increasing rates of

investment by those companies in smaller businesses, trying to support them, take pieces from them and ultimately benefit from their growth. >> the bears on china from a macro standpoint argue the economy is 50% investment and that as capital leaves over time, eventually they're going to run into some systemic credit event. do you, you must be frustrated at some level, the degree to which they have failed. at least at this point to transfer their economy to a consumer-led economy. >> yeah. you know carl, you're right. the consumer has to lead chinese growth from here on out. they're only so far that investment exports can take you. and it's still up to the consumer to continue the growth we've seen in china. if you look at the new economy, and the things that are happening in the new economy, there's more and more people employed by that economy who are doing well who are becoming middle class. and who are consuming services and goods from that new economy. so it's really in many ways,

somewhat self-contained and growing rapidly so you're view at ggv is we're going to keep investing in that world and those businesses and we'll see growth from those, which will ultimately overwhelm the slower growth that you're seeing in the old economy. >> and glenn, among the companies you invest in, how much buzz is there around the ios platform, curious, especially given the fact that china is a launch country for the iphone 6 s and 6 s plus coming up on preorder within the next 24 hours. really, do you expect for apple to have a big psych until china based on these companies' plans for developing around that platform? >> absolutely. i think the new economy and its growth, is welcome for companies like apple. not only apple. you'll see companies like uber that have announced they're doing quite well in chine and continue to invest aggressively.

airbnb has announced they're hiring new leadership in china to grow that market. and google is tip-toeing back into the market. it's very enticing for u.s. tech companies looking at china, looking at the new economy to head back into the market. there's a dichotomy of what's going on in silicon valley and wall street. wall street seems to have thrown in the towel on china. whereas the best companies in silicon valley are heading towards china, trying to get access to the new economy market. >> glenn solomon from ggv, thanks so much for joining us. coming up, under armour's head of digital on apple, wearables and the company's apps, plus we have our eyes on the market with europe set to close in a few minutes. "squawk alley" is back in two.

just about four and a half minutes to the european close for the week, let's count you

down across the uk and the continental europe. stocks falling for a second straight day, dragged down by the telecom sector, eu regulatory scrutiny causing a pair of scandinavian telcos to scrap a planned merger. despite the day's recline. europe's stock 600 index did post a gain for the week as the s&p and dow are likely to do. when we come back, the yankees' alex rodriguez and michael j. fox will join us on this anniversary of 9/11.

hello, i'm sue herera with your cnbc news update. baltimore mayor stephanie rolgs blake says she will not run for re-election. russian foreign minister says his country and the u.s. should coordinate their military involvement in syria to avoid what he calls unintended incidents. russia supplies weapons and aid to bashar al assad's government while the u.s. supports the syrian rebels. a heavy explosion rocking a military site in yemen today as saudi-led airstrikes bombarded rebel positions, thick black smoke can be seen rising from the site. and it's official -- the u.s. government says it's moving out of new york's famed waldorf

astoria hotel. which was purchased last year by a chinese firm from hilton international. president obama and his staff will work and stay at the palace hotel instead. and that change is due to concerns about chinese espionage. so you're up to date. jon, back to you, not a surprise given all the hacking that has gone on. in china and russia. >> china suspected in a lot of it, sue, thanks so much. where are all the tech ipos? a piece in the "journal" noting tech's share of the ipo market hitting a seven-year low, this as the number of private companies valued at more than $1 billion this year almost doubled last year's number. is this a further sign of a possible bubble? here with insights is theresa gowen. theresa, great to have you with us, i know you have a bunch of investments, i want to talk about security.

there's this buzzy concept about being able to watch user behavior within a network instead of just checking the credential, do you belong here or not. everybody claims to be doing that. how do you separate the hype around security from where the value is going to be? what's going to be the next big thing? >> i think the next big thing is when people can actually see the behaviors and they can know what's going on. out of the sea of noise, the problem is almost that people have spent so much money on cybersecurity because they're aware that they're under attack and the problem is seeing what's really happening. instead of all what we call the noise makers. so one of the companies i'm invested in does exactly that. so it can tell, that really is jon, that's great. but is jon doing odd things? logging into systems he doesn't normally see? well that's when they would know someone has probably takele jon's credentials. >> palo alto, which does this

already, huge valuation, how can you tell that a company like xtb isn't going to be crushed by a company like palo alto. to trumpet that message. >> actually, x beam would partner with palo alto. palleta has taken the next generation firewall and unified threat management which is about figuring how ho to let in and who to let in where. they need additional things to do the true user behavior analysis, not just looking at the network connections, but who is actually doing what. you need to take a completely new look at it and things that can help you look at things from a different angle can help you sort through the noise. >> a question of a bubble in silicon valley. everyone has weighed in. you have a point of view, too. >> you know, i think that there's no question that we're in a private market valuation bubble. some of the stats that jon put up there before about the ipos and the lack of ipos, but there's 117 privately-valued

billion dollar plus companies. think what's going to happen is there's no question, those companies are worth less than their public market counterparts, where we've had several companies from box to new relic go public at valuations that were half of what their last private valuations were. sthoink there's no question that the price of the, of the private companies, is you know, two, three x sometimes of what their public multiples are. i think the difference is, you're not going to see the same kind of massive one-time, one-day correction like we is he remember seeing in the spring of 2000, because the companies aren't going public. what is going to be happen something you're going to see the companies that are private can't raise more money and if they are already fully funded. they've raised $5 billion in the case of uber, they'll do just fine and they'll just stay private until they can weather the storm, a lot of those guys are going to get caught short with not enough money to see their way through. >> what kind of impact have you seen from the public market volatility over the past month?

any conservatism from investors in certain areas maybe as we've seen their ability to spend money perhaps? dry up a little bit? >> the one place where we started to see it is in the late-stage valuations, a lot of the late-stage money was coming from public market investors. mutual funds and others. >> looking for you. >> looking for growth and looking for, looking for growth yield for sure. and so i think as you know, the vast majority of their portfolios are highly volatile and perhaps under water. they've been taking a pause on leading these late-stage private companies and that's what's been driving the price up. >> and so what's the impact then on those companies? they're trying to raise a round, they don't want to be a down round. i've heard buzz about companies like drop box trying to raise money. what happens to a company when they're in a situation like that, trying to raise money and a major source of a lot of that capital starts to get hesitant? >> i think your choices are to raise a down round or raise less capital. the best choice if you can is

really try to avoid raising capital until the investor market is more favorable to you. that's why it's you know, think a lot of those same companies have raised further follow-on capital this year while still private. because they know the public valuations would be down. they're trying to hoard their cash. >> what kind of start-ups would it surprise you to not be around a year from now? are we going to wash out a third of them, a fifth of them? >> i'm not very good with market timing for sure. i've been saying we're at a peak for a while. >> so i don't know if it's a year or whenever, but when the cycle turns, we know the cycle will turn if you look back at 99-2000. where it was well over half of the companies didn't exist any more, even some of the ones that were public. think what we're going to see is something that will be, the slope of the line is going to be less. so maybe it will be a third, maybe it will be less. i think it will be less severe,

less than half. but it will be significant. it will happen slowly over time. more of the air being let out of the bubble, rather than a giant pop. >> historically the times when things start to turn down and investors get scared of investing in early-stage companies tharks one of the best times to build an early-stage company, right? >> yes. >> what signs are you looking for that we're in that sort of environment, when you get hungry to find that entrepreneur in the valley or elsewhere who is still looking for the next big thing. >> i'm still bullish on the early stage. it's the later stage that i'm worried about. at the early stage, valuation bubble is price over some revenue or market opportunity metric, right? the scale of opportunity with mobile internet addressable devices is well over 10 x what it was even five or ten years ago. and the rate of technology change is growing, so that's still good. i look for the same thing. is this an entrepreneur who is a domain expert and really knows

what they're doing in this market? if it's cybersecurity like in x beam, four scout and perva, it's not the first, but it's the second or third security company they've built. they know what they're doing and they're taking advantage of the fact that there's all the mobile devices and taking a different view on data. still bullish on that. i would become more cautious on i am telling those companies let's make sure we don't have a super capital intensive model or if we do, let's try to raise the capital sooner rather than later while we can still do it. >> for a while we talked a lot about health, we talked about green models, water conservation models and obviously consumer delivery. do you think we're overall tapped out on those, on the evolution of those models? >> on the consumer delivery piece in particular, i'm cautious. i think some of those companies, they're great for us, we use them all the time. >> we use cosmo.com, too. >> exactly my point it takes a

tremendous amount of capital to built one ever those out there are are a few who have raised 100, $200 million, they're probably past scale. they'll be able to weather the storm. if you haven't raised your nugget and you need to raise another $100 million or $200 million or a billion dollar, the markets are starting to turn. it will be harder. there's little windows where you can get it but that's the biggest sworery, as a start-up, you're always worried about running out of cash. when we come back, apple making another bet on luxury. with that $1500 smart watch with french fashion company, hermes. we talk to the editor in chief of apple style.

coming up on the halftime show, morgan stanley's adam parker is with us on why he thinks stocks can rally more than 10% in the next year. plus the big crude call, goldman thinks oil could hit $20 a barrel. so la would that mean for your money? and herd alert, multiple wall street firms getting more bullish on home builders, does that mean it's time to follow the crowd? carl we'll attempt to answer that question in about 20. we have seen a little bit of a eversal here of course, the dow is in a relatively modest

range down about 80 some-odd points, we crossed almost to the flat line here, down about five points as oil has managed to cut losses. typically a dynamic we've been seeing in recent days. in the meantime, under armour often called a technology company by some, including our own jim cramer, we caught up with its chief digital officer at the ctia conference in las vegas where he had a lot to say about the apple watch. >> we're excited about the watch and sort of the disconnection from the phone to you know, real full apps on the watch, we think that's a great use case, whether it's running or it's cycling or whatever it might beth outdoor or even in the jim. we're excited about what they're doing with the watch specifically. the other thing is that all of the innovations they're making for our core applications, whether it's my fit itness pal or my fitness record, is that not only is it allowing us to have better battery life. it's making it easier for the user to interact with all of those applications, all of these

new developments continue to expand the space. as we always say, our goal is to try to get you active, right? and keep, essentially help you move forward, and get more activity, get better sleep. those things, getting more activity is 100% correlated with potentially how much product someone buys, we want to help you get more active. we know that's going to transform and help the business. >> we asked him about some of the next big things at under armour when it comes to wearable tech. >> what's happen something it's more likely that at any one time in the future you might have three or four or five sensors on your body. so then the tricky part is really starting to dish yat about which sensor is the most accurate. what's giving you the best reading. we believe our differentiation point is potentially one of those sensors issous in a product or service that we're developing. the reality is you might have on

a number of different things in different activities, maybe a swim device while you're swimming or it's another product that we don't make. we believe for the mat form it's our ability to essentially look through all that data, get down to the most accurate piece of data throughout algorithms, through developing the platform and give you the user a completely simple experience that gives you information that you need on your health and fitness. >> interesting company with an interesting-looking stock chart. still looks pretty good year to date. meantime, just call it will programmer hunger games. a major coding competition stretching across the globe. >> our jane wells is live in l.a. with more on that. >> how do you find the best coders in the world? well you set them against each other just like the hunger games. now a cnbc disrupter company hanker rank launches its world cup. hackers compete in challenges,

like this figure ougt which roads in a fictional city are dangerous. and should be destroyed. firms like hr software company zenefits is paying $10,000 to sponsor the cup to get access to winners. >> we're hiring 20 to 30 engineers per month and we need to be able to scale that so when i heard about hacker rank and their ability to help us do that, i was excited. i think the biggest lesson is that pedigrees and resumés aren't as relevant as they might have been at one point especially he had it relates to engineers. >> have you gotten any job offers because of how well you've done? >> yes, several. >> daniel was an undergrad, and after doing well on hacker rank, he got into cornell and got his ph.d. >> people who enter this world only looking toor a good job, usually don't perform well.

you have to enter because you like it. >> hacker rank says creating these coding competitions reveals diamonds in the rough. coders love it and big companies in tech, energy, retail and banking are paying for the list of winners. >> this person whose resumé was literally like a nail file anywhere a salon. so what are the odds of you actually processing his resumé for the interview. you know, he ended up passing a hacker rank coding challenge and now works in one of the top financial firms. >> raffi sanskar hopes he can create a new credentialing system this way. something that a linkedin inn profile there will be. there will be world cup coding parties at san jose state and berkeley this weekend as the games begin. >> nothing like a little healthy competition to further innovation in this country. jane, thank you so much. meantime, fashion week kicking off here in new york

city and a major theme this year is technology. earlier this week. apple announced that collaboration with hermes for the watch and zac posen debuted an l.e.d. dress, can we expect more of these fashion and tech crossovers. jose is the editor in chief of yahoo style and joins us this week. >> let's start with apple. is this a bridge too far for them? or is there still in their wheelhouse? >> i don't think it's a bridge too far at all. it's apple has always created the cult product that everyone wants. they may joke about wanting their apple watch to be in the echelon of what fashion is and the whole collaboration with hermes started before the apple watch was launched. it's taken all this time in the first incarnation for them to get the partnership right and it's a smart thing. because hermes in the world of fashion is sort of the holy grail. it doesn't do partnerships, so for apple to be able to get this done. it is a win-win for everybody.

>> so joe, where are we with tech and fashion? i mean we had google glass that didn't go so well. first time around we've had intel with the bracelet. which is nice to look at. we have got the apple watch where opinion seems to be mixed. maybe some regular people like it. some in fashion have pooh-poohed it. is the apple watch catching on as a fashion item in. >> i think it's a tough thing to say, i think people wanted to make wearables a thing that's taken off and it hasn't. and i think in many ways it hasn't taken off because it doesn't serve the need of practicality. and i think a lot of things in fashion aren't practical. but there's something about technology that hasn't quite hit it yet and i think apple watch is the closest. if you think about it, we've all had an apple watch seven, eight years ago when the iphone was released. that's what we use to tell time with. so how do you market the apple watch as an accessory? i think they're doing excellent with that and hermes is a great partnership to take them to the next level. think we're at a growing pains

stage with wearables, especially in the fashion industry. >> i keep thinking back to the "new york times" fashion kretcr who wrote a piece about how she fell out of love with her watch in part because no matter what face you have installed on it, it still looks the same. no matter who is wearing it, hence the emphasis on the bands. i wonder from a design standpoint if there's a way around that. >> the design way around it is hermes. and doing partnerships like that i think it's a different thing. we wanted the watch to be the accessory. but it wasn't really changing other than the band. is it an accessory? i think that's sort of the thing that you have to sort of understand. i think apple has been so sort of, i don't know, in the forefront of making that happen. i think there's still a bit ways to go. by i think where they're going is making sense, at least in the fashion industry. >> we're still in a world where if you wear it, you're seen as being what, a tool, i could use

some other words. it goes back to the original google glass argument. that it's hard to wear and look like you're not trying to be completely full of yourself. >> do you think that's what the apple wash is doing? i think the google glass is so obviously and crazy. i think there's more of a subtlety with the apple watch in a different way. i don't know necessarily a tool per se. i don't know, i mean i'll give you that one. i think it just, i think it wanted to be a little bit of a bigger statement than it really has. and i think it's sort of on that cusp. will it take off and become that sort of pop culture icon status item that you have to have. or is it just a passing fad? >> i think carl's not wearing his apple watch today. i wonder, as far as what you do every day, how are people consuming fashion content on digital? in paper form, we've got these spreads in digital, it's more

complicated. is it mostly phones? have we moved away from tablets? how is yahoo is doing? >> i think yahoo is doing incredible. people consume the content on our site in a various amount of ways, definitely mobile is huge, we're talking about millennials on the go and they're looking at it, they're watching our videos on their phone. they're commenting on the stories we write on their phone. they're taking our polls on the phone. tablets? laptop is still a huge part of our audience interaction. how they're consuming it is that they are becoming participatory. they're not just reading it and walking away. they're having a voice in it and that's in this age of social media they want to say something back. when they read something, we he can have tens of thousands of comments under it. or they'll engage in a poll right away. i think those things allow them to participate in our story. that's the biggest thing we found out. people, especially millennials really want to be in the story and not just from the sidelines.

>> yup. that's definitely true. joe, our thanks to you, on a week where we know you're incredibly busy, we'll see you next time. >> of course, thank you. >> joe zee joining us from yahoo style. a set of entrepreneurs bringing medical marijuana to new york state. many wrinkle creams come with high hopes, but hope... doesn't work on wrinkles. clinically proven neutrogena® rapid wrinkle repair with the fastest retinol formula available,

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dow has managed to turn a tough day into a modestly good one. the dow is up 17 points, done don's and unh leading the

charge. all of this coming as oil is trying to get its act back together. it was down $1.50. now down 97 cents as goldman says the bear case would take oil to $20 a barrel.

medical marijuana going mainstream across new york state. kate rodgers joins us live in new york with all the details. cate? >> hey john, that's right. if there's any question as to what the momentum is behind legalizing marijuana in this country, just picture this, in a few short months in january there's going to be a marijuana dispenser a few blocks from here in union square. run by a company called columbia care which has operations in washington, d.c. and in arizona. it's one of the five companies that was awarded a license by new york state to set up shop here. they'll each have one manufacturing facility and four dispensaries. columbia care's ceo formerly worked in finance at goldman sachs. he tells us he's hoping to streamline the company's operations. >> we try to draw from our experiences, with other markets and other businesses. in sort of areas that we consider to be related.

from a manufacturing perspective, we really do hope to move as close to a pharmaceutical manufacturing process as we can. >> there are 23 states across the country and washington, d.c. that have legalized marijuana for medicinal purposes only. the first state to do so was california in 1996. new york state law compassionate care act, you cannot smoke the product, but it can be ingested or injected. no one going to be smoking the pot here in new york state. >> kate rodgers in new york city. meantime getting word from kara swisher who was just with us at the top of the hour on the what appears to be a continued shake-up in yahoo's management. according to sources kara is saying that yahoo's media unit about to have a shake-up in executive changes that could include the departure of the top manager, caffey savitt.

-- kathy savitt. >> that would be huge, a key player in that company. dow managing to hang on to the modest gains, as we head into a busy week. let's get back to headquarters, scott wopner and the half. carl, thanks welcome to the halftime show, our starting line uplooks like this, jim lebenthal, stephanie link, josh brown and jon najarian. adam park certificate here, morgan stanley's chief strategist. who thinks stocks are set to rally more than 10% over the next year. our game plan today looks like this. crude reality, why goldman sachs says oil could hit $20 a barrel. what that means to your money. buy the builders? with housing one of the brightest spots in the economy.